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Home My WebLink AboutDraft - WIF CIP 16-20Water Impact Fee Capital Improvement Plan Financial Summary Current YearFY15 FY16 FY17 FY18 FY19 FY20UnscheduledProjected Beginning Reserve Balance Dedicated to CIP‐$ ‐$ 362,960$ 1,069,965$ (398,490)$ 354,046$ ‐$ Plus: Impact Fee Revenues Dedicated to CIP 1,113,992$ 1,083,242$ 1,127,005$ 1,149,545$ 1,172,536$ 1,195,987$ ‐$ Plus: Loan for WIF03 ‐ 5.3MG Storage Reservoir 6,600,000$ Less: WTP Debt Service Final Payments (413,992)$ (588,282)$ Less: Scheduled CIP Project Costs (700,000)$ (6,732,000)$ (420,000)$ (2,618,000)$ (420,000)$ (420,000)$ (41,013,600)$ Projected Year‐End Cash Dedicated to CIP‐$ 362,960$ 1,069,965$ (398,490)$ 354,046$ 1,130,033$ Assumptions Made for Revenue Estimates: Current YearFY15 FY16 FY17 FY18 FY19 FY20Estimated Annual Water Impact Fee Revenues 1,113,992$ 1,083,242$ 1,104,907$ 1,127,005$ 1,149,545$ 1,172,536$ Estimated Annual Increase 0.0% 2% 2% 2% 2% 2%Total Estimated Revenues 1,113,992$ 1,104,907$ 1,127,005$ 1,149,545$ 1,172,536$ 1,195,987$ Current Revenues Dedicated to CIP % 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Plus: Increase Dedicated to Water Capacity Expansion CIP 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Total % Dedicated to CIP 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%ProjectedProjectedTotal Estimated Revenues Dedicated to CIP 1,113,992$ 1,104,907$ 1,127,005$ 1,149,545$ 1,172,536$ 1,195,987$ CURRENT45,000,00040,000,00035,000,00030,000,00025,000,00020,000,00015,000,00010,000,0005,000,0000Water Impact Fee Projects PROJ.DEPARTMENTPROJECT NAMEFY16UnscheduledFY20RATINGFY17FY18FY19CIP PROJECT FUND:Impact Fees WaterSorted by Funding Year and RatingWIF08WATER IFWATER TREATMENT PLANT DEBT SERVICE PAYMENT$588,28250WIF03WATER IF5.3MG CONRETE WATER STORAGE RESERVOIR$6,600,00035WIF11WATER IFWATER MAIN EXTENSION ‐ FERGUSON AVE (DURSTON TO OAK STREET)$132,00030WIF14WATER IF5.3MG CONRETE WATER STORAGE RESERVOIR ‐ DEBT PAYMENTS$420,000$6,720,00035$420,000$420,000$420,000WIF07WATER IFGRAF STREET EXTENSION35$198,000W35WATER IFLYMAN TANK25$2,000,000WIF09WATER IFCOTTONWOOD/STUCKY TRUNK MAIN LOOP$5,544,00045WIF13WATER IFWATER RIGHTS CHANGE APPLICATION$132,00025WIF05WATER IFWEST WATER TRANSMISSION MAIN LOOP$28,617,60010Summary for Impact Fees Water (9 items)Totals by year:$420,000$7,320,282 $420,000 $2,618,000$41,013,600FY20FY16FY17FY18UnscheduledFY19$420,000 CIP Project Fund Impact Fees Water PROJECT NUMBER W35 DEPARTMENT WATER IF PROJECT NAME LYMAN TANK FY15 FY17 Unscheduled DESCRIPTION OF PROJECT The current water reservoir is at the end of its useful life and leaking badly and cannot be repaired. Replacement of the existing storage volume will be paid by the Water Fund. However, if the project can allow for added water storage capacity, Impact Fees will pay for that system expansion ALTERNATIVES CONSIDERED Do not add water storage capacity to the Lyman Tank. ADVANTAGES OF APPROVAL Additional water capacity for the water system. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED FUNDING SOURCES The project will be funded primarily by the Water Fund, as it is replacement of existing capacity at an existing plant. Impact Fees would only pay for the costs to ADD capacity beyond what exists today. New Replacement Equipment Project Impact Fee Funds Project and Equipment Scoring TOTAL SCORE:25 FY18 $2,000,000 REQUIRED - CAPITAL or DEBT SERVICE REQUIRED - USEFUL LIFE 10+ YEARS REQUIRED - CAPACITY EXPANDING BENEFITS TO NEW DEVELOPMENT: (Up to 20 pts)10 DIRECT BENEFITS: (Up to 10 pts)5 FUNDING CERTAINTY: (Up to 10 pts)5 COMMISSION WORK PLAN PRIORITY: (Up to 10 pts)5 FY19 FY20 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF03 DEPARTMENT WATER IF PROJECT NAME 5.3MG CONRETE WATER STORAGE RESERVOIR FY15 $6,600,000 FY17 Unscheduled DESCRIPTION OF PROJECT According to the 2007 Water Facility Plan, a new 5.3MG partially buried concrete water storage reservoir was to be constructed by 2017. Given the recent slow-down in growth, we anticipate needing the tank some time after 2017. The proposed location of the reservoir is on City property adjacent (to the North) of the proposed new Hyalite/Sourdough water treatment plant. This reservoir is sized to meet the City’s storage needs up to 2025, assuming a 5% annual growth rate. Locating the storage reservoir at the recommended site will raise the hydraulic grade line in the City’s water system, which will increase pressure for the southern part of the City and will allow future development to occur in the south on a gravity system. ALTERNATIVES CONSIDERED The water facility plan reviewed numerous options. This is the preferred alternative of the adopted plan. ADVANTAGES OF APPROVAL Increased water storage to meet the needs of our growth community, and the requirement of MDEQ. Increased system water pressure in the southern part of the City. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Requires minimal operation and maintenance. Checking of valves, level sensors and vents on an annual basis and diver inspection and vacuuming every five years. Estimated at $4,000 annually. FUNDING SOURCES 100% Water Impact Fees New Replacement Equipment Project Impact Fee Funds Project and Equipment Scoring TOTAL SCORE:35 FY18 REQUIRED - CAPITAL or DEBT SERVICE REQUIRED - USEFUL LIFE 10+ YEARS REQUIRED - CAPACITY EXPANDING BENEFITS TO NEW DEVELOPMENT: (Up to 20 pts)20 DIRECT BENEFITS: (Up to 10 pts)5 FUNDING CERTAINTY: (Up to 10 pts)5 COMMISSION WORK PLAN PRIORITY: (Up to 10 pts)5 FY19 FY20 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF05 DEPARTMENT WATER IF PROJECT NAME WEST WATER TRANSMISSION MAIN LOOP FY15 FY17 Unscheduled $28,617,600 DESCRIPTION OF PROJECT The Water Facility Plan identifies this project as the most critical redundancy issue in the City’s water distribution system. 4,525 N/A 12" Install New 12" $ 911,335 2,636 N/A 24" Install New 24" $ 1,101,716 5,154 N/A 36" Install New 36" $ 3,481,785 17,093 N/A 48" Install New 48" $16,187,712 Total Project Cost $21,682,548 The precise location of the required mains is somewhat flexible, but in general will be from Wagonwheel road (extended) in S. 19th to Goldenstein to South 3rd to Nash Road (see exhibit 5.B.3 of the facility plan). Given the priority of the Water Treatment Plant project, the City is not currently planning to complete these projects. ALTERNATIVES CONSIDERED Do not build redundant transmission main. ADVANTAGES OF APPROVAL The city will be assured that water can be supplied even if one transmission main sustains damage and is offline for a number of days. The City receives the majority of its water from the Water Treatment Plant through an existing 30 inch concrete transmission main. If this main is off-line for any reason, the City will need to rely on storage from its three reservoirs. At 2005 water demand levels, storage reserves would be depleted in three days during the average day demand, and in 24 hours during the maximum day demand. Not only will a second transmission main provide the security of redundancy if the existing 30-inch ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual Operating & Maintenance Costs: Impact Fees can not be spent on annual operations and maintenance costs. The Water Utility will see incremental increases in general maintenance costs. Current cost estimate of $12,500 per water-main mile maintained annually. FUNDING SOURCES Impact Fee eligible portions are related to improvement costs beyond an 8” line capacity. At this point in time, it is estimated that the 12” and 24” lines are most likely to be built within the next 5 years; the cost of over-sizing those lines would be eligible for impact fees and is estimated to total $1,874,886. Given the priority of the Water Treatment Plant project, it’s relative size and scope, these improvements have been moved to “unscheduled.” New Replacement Equipment Project Impact Fee Funds Project and Equipment Scoring TOTAL SCORE:10 FY18 REQUIRED - CAPITAL or DEBT SERVICE REQUIRED - USEFUL LIFE 10+ YEARS REQUIRED - CAPACITY EXPANDING BENEFITS TO NEW DEVELOPMENT: (Up to 20 pts)5 DIRECT BENEFITS: (Up to 10 pts)5 FUNDING CERTAINTY: (Up to 10 pts)0 COMMISSION WORK PLAN PRIORITY: (Up to 10 pts)0 FY19 FY20 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF07 DEPARTMENT WATER IF PROJECT NAME GRAF STREET EXTENSION FY15 FY17 Unscheduled DESCRIPTION OF PROJECT This project is to extend Water Mains below Graf Street approximately ¼ mile in order to connect infrastructure east from 19th Avenue. This is an important connection for public safety purposes – allowing fire service to meet their response time requirements in areas where they currently cannot. The Water infrastructure should be installed at the same time the street connection is made. ALTERNATIVES CONSIDERED Do nothing and wait for development to connect the infrastructure. ADVANTAGES OF APPROVAL Improved traffic flow and better emergency response to the local area. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED FUNDING SOURCES 100% Water Impact Fee – to be recovered by developer payback. New Replacement Equipment Project Impact Fee Funds Project and Equipment Scoring TOTAL SCORE:35 FY18 $198,000 REQUIRED - CAPITAL or DEBT SERVICE REQUIRED - USEFUL LIFE 10+ YEARS REQUIRED - CAPACITY EXPANDING BENEFITS TO NEW DEVELOPMENT: (Up to 20 pts)20 DIRECT BENEFITS: (Up to 10 pts)10 FUNDING CERTAINTY: (Up to 10 pts)5 COMMISSION WORK PLAN PRIORITY: (Up to 10 pts)0 FY19 FY20 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF08 DEPARTMENT WATER IF PROJECT NAME WATER TREATMENT PLANT DEBT SERVICE PAYMENT FY15 $588,282 FY17 Unscheduled DESCRIPTION OF PROJECT Total adjusted project price for the Water Treatment Plant (WTP) construction of phase one is estimated at $40.7 Million. Of that amount, $13.3 Million is for capacity expanding costs of construction. The impact fee account will not have enough cash on hand to pay the costs of construction when the facility is built. As such, impact fee revenues will be dedicated to pay the outstanding debt in future years, as fee revenues are collected. At this point, approximately $5 Million of impact fee eligible costs will be paid with a long-term loan (20 years, 4%) through the State’s Revolving Loan Fund. A debt schedule will be updated semi-annually with the amount of impact fee dollars that have been dedicated to debt payments until the full amount owed is paid. ALTERNATIVES CONSIDERED ADVANTAGES OF APPROVAL Major capital expansion of the Bozeman Water Treatment Plant (WTP) will enable the City to meet its ever growing demand for water services. Expansion of the Bozeman WTP is consistent with the City’s long-term need to accommodate growth and economic development in the Gallatin Valley. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED FUNDING SOURCES FY08 Pilot Testing: $200,000. FY09,FY10, FY11 Design and Membrane equipment deposit, construction $7,267,000. FY12 $16,460,000. FY13 $16,460,000. Of this total, approximately 33% is eligible for payment via impact fees. New Replacement Equipment Project Impact Fee Funds Project and Equipment Scoring TOTAL SCORE:50 FY18 REQUIRED - CAPITAL or DEBT SERVICE REQUIRED - USEFUL LIFE 10+ YEARS REQUIRED - CAPACITY EXPANDING BENEFITS TO NEW DEVELOPMENT: (Up to 20 pts)20 DIRECT BENEFITS: (Up to 10 pts)10 FUNDING CERTAINTY: (Up to 10 pts)10 COMMISSION WORK PLAN PRIORITY: (Up to 10 pts)10 FY19 FY20 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF09 DEPARTMENT WATER IF PROJECT NAME COTTONWOOD/STUCKY TRUNK MAIN LOOP FY15 FY17 Unscheduled $5,544,000 DESCRIPTION OF PROJECT Installation of a trunk water main loop from the intersection of Cottonwood and Huffine Lane south to Stucky Road then east to South 19th Avenue. ALTERNATIVES CONSIDERED Postpone installation to some future time. It is unlikely that such an ambitious and expensive project could or would be installed by the concerted effort of private developers. Even if that were to happen, the City would be asked to participate in the oversizing of these mains, all of which exceed the local 8” diameter requirement. ADVANTAGES OF APPROVAL Provides the water main backbone which will support future growth In a large area of the City. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Incremental increase in the cost of operation and maintenance FUNDING SOURCES Impact fees, developer contribution for local equivalent share. New Replacement Equipment Project Impact Fee Funds Project and Equipment Scoring TOTAL SCORE:45 FY18 REQUIRED - CAPITAL or DEBT SERVICE REQUIRED - USEFUL LIFE 10+ YEARS REQUIRED - CAPACITY EXPANDING BENEFITS TO NEW DEVELOPMENT: (Up to 20 pts)20 DIRECT BENEFITS: (Up to 10 pts)10 FUNDING CERTAINTY: (Up to 10 pts)10 COMMISSION WORK PLAN PRIORITY: (Up to 10 pts)5 FY19 FY20 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF11 DEPARTMENT WATER IF PROJECT NAME WATER MAIN EXTENSION - FERGUSON AVE (DURSTON TO OAK STREET) FY15 $132,000 FY17 Unscheduled DESCRIPTION OF PROJECT Installation of a Water Main along Ferguson Avenue, from Durston to Oak Street. ALTERNATIVES CONSIDERED ADVANTAGES OF APPROVAL Expanded water service in this area of town. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Minimal FUNDING SOURCES Water Impact Fees, Developer contribution. New Replacement Equipment Project Impact Fee Funds Project and Equipment Scoring TOTAL SCORE:30 FY18 REQUIRED - CAPITAL or DEBT SERVICE REQUIRED - USEFUL LIFE 10+ YEARS REQUIRED - CAPACITY EXPANDING BENEFITS TO NEW DEVELOPMENT: (Up to 20 pts)20 DIRECT BENEFITS: (Up to 10 pts)5 FUNDING CERTAINTY: (Up to 10 pts)5 COMMISSION WORK PLAN PRIORITY: (Up to 10 pts)0 FY19 FY20 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF13 DEPARTMENT WATER IF PROJECT NAME WATER RIGHTS CHANGE APPLICATION FY15 FY17 Unscheduled $132,000 DESCRIPTION OF PROJECT ALTERNATIVES CONSIDERED ADVANTAGES OF APPROVAL ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED FUNDING SOURCES New Replacement Equipment Project Impact Fee Funds Project and Equipment Scoring TOTAL SCORE:25 FY18 REQUIRED - CAPITAL or DEBT SERVICE REQUIRED - USEFUL LIFE 10+ YEARS REQUIRED - CAPACITY EXPANDING BENEFITS TO NEW DEVELOPMENT: (Up to 20 pts)10 DIRECT BENEFITS: (Up to 10 pts)5 FUNDING CERTAINTY: (Up to 10 pts)5 COMMISSION WORK PLAN PRIORITY: (Up to 10 pts)5 FY19 FY20 CIP Project Fund Impact Fees Water PROJECT NUMBER WIF14 DEPARTMENT WATER IF PROJECT NAME 5.3MG CONRETE WATER STORAGE RESERVOIR - DEBT PAYMENTS FY15 FY17 $420,000 Unscheduled $6,720,000 DESCRIPTION OF PROJECT Repayment of debt used to finance construction of WIF03 - 5.3 Million Gallon Concrete Water Storage Reservoir. ALTERNATIVES CONSIDERED The water facility plan reviewed numerous options. This is the preferred alternative of the adopted plan. ADVANTAGES OF APPROVAL Increased water storage to meet the needs of our growth community, and the requirement of MDEQ. Increased system water pressure in the southern part of the City. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Requires minimal operation and maintenance. Checking of valves, level sensors and vents on an annual basis and diver inspection and vacuuming every five years. Estimated at $4,000 annually. FUNDING SOURCES 100% Water Impact Fees New Replacement Equipment Project Impact Fee Funds Project and Equipment Scoring TOTAL SCORE:35 FY18 $420,000 REQUIRED - CAPITAL or DEBT SERVICE REQUIRED - USEFUL LIFE 10+ YEARS REQUIRED - CAPACITY EXPANDING BENEFITS TO NEW DEVELOPMENT: (Up to 20 pts)20 DIRECT BENEFITS: (Up to 10 pts)5 FUNDING CERTAINTY: (Up to 10 pts)5 COMMISSION WORK PLAN PRIORITY: (Up to 10 pts)5 FY19 $420,000 FY20 $420,000.00