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Home My WebLink AboutC15. Wastewater Impact Fee CIP Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Anna Rosenberry, Administrative Services Director SUBJECT: Adoption of the Wastewater Impact Fee Fund Capital Improvement Plan (CIP) for FY17-21. AGENDA ITEM TYPE: Consent MEETING DATE: December 14, 2015 RECOMMENDATION: Adopt the Wastewater Impact Fee Fund Capital Improvement Plan (CIP) for FY17-21. BACKGROUND: Each year, the City Manager is required to prepare a 5 Year Capital Improvements Plan and submit it to the Commission by December 15th. The City’s Impact Fee Advisory Committee (IFAC) met on November 17th and December 3rd to review and make recommendations for the planned expenditures of Street Impact Fees. The Committee had no quorum on December 3rd to make a vote; their general recommendations are embodied in this plan. Items of Note: 1. Under this plan, the Wastewater Impact Fee Fund would be providing the Local Share in advance of development for the WWIF11, and WWIF18 - 27 projects (some are unscheduled.) These projects are noted with an “*”. a. We anticipate that some of these payback amounts will come back to the Wastewater Impact Fee Fund as projects develop; but, for purposes of this plan 251 we have not relied on receiving any of that money to fund projects. This is a conservative approach to a difficult-to-estimate cash flow. b. We anticipate a payback for “local share” of these projects would be made at the time a development project is approved. 2. A new Wastewater Impact Fee Study is included in this plan for FY17. 3. Revenues have been updated to reflect the 5-year average for Wastewater Impact Fee collections. As you can see from the attached chart, annual amounts collected have been declining since FY2013. We estimate revenue growth at 5% annually, given the 5-year average changes. Revenue History – Wastewater Impact Fees Amount Change 2011 $ 669,000.00 - 2012 $ 989,000.00 48% 2013 $ 1,405,000.00 42% 2014 $ 1,140,000.00 -19% 2015 $ 1,052,000.00 -8% Average 1,051,000.00 UNRESOLVED ISSUES: None. $- $200,000.00 $400,000.00 $600,000.00 $800,000.00 $1,000,000.00 $1,200,000.00 $1,400,000.00 $1,600,000.00 2011 2012 2013 2014 2015 Average Wastewater Impact Fee Revenues 252 ALTERNATIVES: As suggested by the City Commission. If the Commission is does not wish to adopt this schedule tonight, it can be scheduled for approval on a later agenda. FISCAL EFFECTS: This step in the process has no fiscal effect. Once adopted, the Capital Improvements Plan becomes the basis of the City Manager’s Recommended Budget for FY16. Report compiled on: November 21, 2014 Attached: Draft Wastewater Impact Fee Fund CIP 253 Wastewater Impact Fee Capital Improvement PlanFinancial SummaryCurrent YearFY16FY17FY18 FY19 FY20 FY21UnscheduledProjected Beginning Reserve Balance Dedicated to CIP367,000$ (582,000)$ (783,116)$ (653,389)$ 563,275$ 1,470,772$ ‐$ Plus: Impact Fee Revenues Dedicated to CIP1,051,000$ 1,103,550$ 1,158,728$ 1,216,664$ 1,277,497$ 1,341,372$ ‐$ Plus: Loans for WWIF26, WWIF11 1,413,746$ 2,185,520$ Plus: Developer Contribution From WWIF26631,837$ Less: Scheduled CIP Project Costs(2,000,000)$ (3,350,249)$ (1,029,000)$ (2,185,520)$ (370,000)$ ‐$ (5,091,561)$ Projected Year‐End Cash Dedicated to CIP(582,000)$ (783,116)$ (653,389)$ 563,275$ 1,470,772$ 2,812,144$ Assumptions Made for Revenue Estimates:Current YearFY16FY17FY18FY19FY20FY21Estimated Annual Wastewater Impact Fee Revenues1,051,000$ 1,051,000$ 1,103,550$ 1,158,728$ 1,216,664$ 1,277,497$ Estimated Annual Increase0.0%5%5%5%5%5%Total Estimated Revenues1,051,000$ 1,103,550$ 1,158,728$ 1,216,664$ 1,277,497$ 1,341,372$ Current Revenues Dedicated to CIP %100.0%100.0% 100.0% 100.0% 100.0% 100.0% Plus: Increase Dedicated to Wastewater Capacity Expansion CIP0.0%0.0%0.0%0.0%0.0%0.0% Total % Dedicated to CIP100.0%100.0%100.0% 100.0% 100.0% 100.0%Total Estimated Revenues Dedicated to CIP1,051,000$ 1,103,550$ 1,158,728$ 1,216,664$ 1,277,497$ 1,341,372$ ProjectedProjectedCURRENT6,000,0005,000,0004,000,0003,000,0002,000,0001,000,0000Wastewater Impact Fee Projects 254 CIP PROJECT FUPROJ.DEPARTMENTPROJECT NAMEFY17UnscheduledFY21FY18FY19FY20Impact Fees WastewaterWWIF11WW IMPACT FEFRONT STREET INTERCEPTOR*$2,185,520WWIF17WW IMPACT FE#4 DIGESTER$2,000,000WWIF18WW IMPACT FEESVALLEY WEST ‐ ANNIE UPSIZE (FLANDERS TO W OF FERGUSON)*$234,000WWIF19WW IMPACT FENORTON RANCH LIFT STATION*$500,000WWIF20WW IMPACT FEN FRONTAGE RD INTERCEPTOR*$370,000WWIF22WW IMPACT FEESDAVIS‐FOWLER INTERCEPTOR (DURSTON RD TO W OAK ST)*$778,035WWIF23WW IMPACT FEESDAVIS LANE EXTENSION (LIFT STATION TO WRF)*$1,313,526WWIF24WW IMPACT FEDAVIS LANE (LIFT STATION)*$500,000WWIF25WW IMPACT FEESCATTAIL CREEK BASIN EXTENSION (19TH FROM GRAF TO STUCKY AND STUCKY FROM 19TH TO 0.5 MILES WEST OF 19TH)+$1,263,674WWIF26WW IMPACT FEESSOUTH UNIVERSITY DISTRICT/CATTAIL CREEK BASIN EXTENSION (LINCOLNTO GARFIELD FROM 19TH TO FOWLER)*$1,413,746WWIF27WW IMPACT FEESSOUTH UNIVERSITY DISTRICT/CATTAIL CREEK BASIN EXTENSION (S 15TH AVE TO WILLOW WAY TO LINCOLN ST)*$795,000WWIF28WW IMPACT FEESBRIDGER CANYON RD IMPROVEMENT (STORY MILL RD TO W ENTRANCE OF BRIDGER VIEW TRAILER COURT)$322,829WWIF29WW IMPACT FEIMPACT FEE STUDY ‐ WASTEWATER$50,000WWIF30WW IMPACT FEESWASTEWATER RIGHT OF WAY ‐ ACROSS MSU FARM$300,000$3,350,249$1,029,000$2,185,520$370,000$5,091,561Summary for Impact Fees Wastewater (14 items)Totals by year:$3,350,249 $1,029,000$5,091,561FY21FY17FY18UnscheduledFY20$370,000$2,185,520FY19255 CIP Project Fund Impact Fees Wastewater PROJECT NUMBER WWIF11 DEPARTMENT WW IMPACT FEES PROJECT NAME FRONT STREET INTERCEPTOR* FY17 FY18 Unscheduled DESCRIPTION OF PROJECT This project consists of construction of ~8,500 LF 18" 21" 24" sewer pipe from manhole E0304 to C0524. The lower portion of the existing sewer is at capacity. Additional capacity is needed to serve the future Bozeman Deaconess Hospital development and lands to the south. It is estimated that 70% of this project costs will be due to capacity expansion and will be eligible for Wastewater Impact Fees. The remaining 30% of the project costs will need to be provided by a "local share" contribution or other source. At this time, the City’s Wastewater Utility does not have a need to replace the existing facility; as such, no utility dollars are scheduled to be spent. ALTERNATIVES CONSIDERED Limit development to only that capacity of the existing sewer. ADVANTAGES OF APPROVAL This project will significantly increase the service area and capacity of the trunk sewer. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual Operating and Maintenance Costs: Impact fees can not fund operating and maintenance costs. The city’s wastewater utility will pay for these costs, which are estimated to be a small increment of the city’s system as a whole. FUNDING SOURCES 70% Wastewater Impact Fees = $1,529,864 30% Wastewater Impact Fees for Local Share = $655,656, recovered via payback district. New Replacement Equipment Project FY19 $2,185,520 FY20 FY21 256 CIP Project Fund Impact Fees Wastewater PROJECT NUMBER WWIF17 DEPARTMENT WW IMPACT FEES PROJECT NAME #4 DIGESTER FY17 FY18 Unscheduled $2,000,000 DESCRIPTION OF PROJECT Fund the design and construction of a fourth anaerobic digester. ALTERNATIVES CONSIDERED Do nothing. ADVANTAGES OF APPROVAL Additional Capacity for wastewater treatment. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Not known at this time. FUNDING SOURCES Wastewater Impact Fee Fund New Replacement Equipment Project FY19 FY20 FY21 257 CIP Project Fund Impact Fees Wastewater PROJECT NUMBER WWIF18 DEPARTMENT WW IMPACT FEES PROJECT NAME VALLEY WEST - ANNIE UPSIZE (FLANDERS TO W OF FERGUSON)* FY17 FY18 $234,000 Unscheduled DESCRIPTION OF PROJECT This project will provide increase capacity for further development in Valley West. It will run along Annie from Flanders to west of Ferguson. ALTERNATIVES CONSIDERED Limit future development in the area. ADVANTAGES OF APPROVAL If upsized capacity will be provided for anticipating the long-term future growth in this area ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual Operating and Maintenance Costs: Impact fees can not fund operating and maintenance costs. The city’s wastewater utility will pay for these costs, which are estimated to be a small increment of the city’s system as a whole. FUNDING SOURCES 100% Wastewater Impact Fees, with recovery of "local share" via payback district. New Replacement Equipment Project FY19 FY20 FY21 258 CIP Project Fund Impact Fees Wastewater PROJECT NUMBER WWIF19 DEPARTMENT WW IMPACT FEES PROJECT NAME NORTON RANCH LIFT STATION* FY17 FY18 Unscheduled $500,000 DESCRIPTION OF PROJECT This project will increase capavity at the Norton Ranch Lift Station to support further development of the Norton Ranch Subdivision. ALTERNATIVES CONSIDERED Limit future development in the area. ADVANTAGES OF APPROVAL If constructed to the line sizes master planned in the City’s Wastewater Facilities plan, capacity will be provided for anticipating the long-term future growth in this area ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual Operating and Maintenance Costs: Impact fees can not fund operating and maintenance costs. The city’s wastewater utility will pay for these costs, which are estimated to be a small increment of the city’s system as a whole. FUNDING SOURCES Wastewater Impact Fees, with portions recovered via payback district. New Replacement Equipment Project FY19 FY20 FY21 259 CIP Project Fund Impact Fees Wastewater PROJECT NUMBER WWIF20 DEPARTMENT WW IMPACT FEES PROJECT NAME N FRONTAGE RD INTERCEPTOR* FY17 FY18 Unscheduled DESCRIPTION OF PROJECT This project will replace or parallel 11,500' of the North Frontage Rd Interceptor between Springhill Rd and Bridger Dr. ALTERNATIVES CONSIDERED Limit future development in the area. ADVANTAGES OF APPROVAL If constructed to the line sizes master planned in the City’s Wastewater Facilities plan, capacity will be provided for anticipating the long-term future growth in this area ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual Operating and Maintenance Costs: Impact fees can not fund operating and maintenance costs. The city’s wastewater utility will pay for these costs, which are estimated to be a small increment of the city’s system as a whole. FUNDING SOURCES Wastewater Impact Fees, with local share recovered via payback district New Replacement Equipment Project FY19 FY20 $370,000 FY21 260 CIP Project Fund Impact Fees Wastewater PROJECT NUMBER WWIF22 DEPARTMENT WW IMPACT FEES PROJECT NAME DAVIS-FOWLER INTERCEPTOR (DURSTON RD TO W OAK ST)* FY17 FY18 Unscheduled $778,035 DESCRIPTION OF PROJECT This project will replace or parallel 2700' of the Davis-Fowler Interceptor between Durston and Oak. ALTERNATIVES CONSIDERED Limit future development in the area. ADVANTAGES OF APPROVAL If constructed to the line sizes master planned in the City’s Wastewater Facilities plan, capacity will be provided for anticipating the long-term future growth in this area ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual Operating and Maintenance Costs: Impact fees can not fund operating and maintenance costs. The city’s wastewater utility will pay for these costs, which are estimated to be a small increment of the city’s system as a whole. FUNDING SOURCES Wastewater Impact Fees, with local share recovered via payback district New Replacement Equipment Project FY19 FY20 FY21 261 CIP Project Fund Impact Fees Wastewater PROJECT NUMBER WWIF23 DEPARTMENT WW IMPACT FEES PROJECT NAME DAVIS LANE EXTENSION (LIFT STATION TO WRF)* FY17 FY18 Unscheduled $1,313,526 DESCRIPTION OF PROJECT This project will provide a force main from the Davis Lane Lift Station to the Water Reclimation Facility ALTERNATIVES CONSIDERED Limit future development in the area. ADVANTAGES OF APPROVAL If constructed to the line sizes master planned in the City’s Wastewater Facilities plan, capacity will be provided for anticipating the long-term future growth in this area ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual Operating and Maintenance Costs: Impact fees can not fund operating and maintenance costs. The city’s wastewater utility will pay for these costs, which are estimated to be a small increment of the city’s system as a whole. FUNDING SOURCES Wastewater Impact Fees, with local share recovered via payback district New Replacement Equipment Project FY19 FY20 FY21 262 CIP Project Fund Impact Fees Wastewater PROJECT NUMBER WWIF24 DEPARTMENT WW IMPACT FEES PROJECT NAME DAVIS LANE (LIFT STATION)* FY17 FY18 Unscheduled $500,000 DESCRIPTION OF PROJECT This project will construct a small initial Davis Lane Lift Station to serve area north of the Cattail Lake Lift Station. ALTERNATIVES CONSIDERED Limit future development in the area. ADVANTAGES OF APPROVAL If constructed to the line sizes master planned in the City’s Wastewater Facilities plan, capacity will be provided for anticipating the long-term future growth in this area ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual Operating and Maintenance Costs: Impact fees can not fund operating and maintenance costs. The city’s wastewater utility will pay for these costs, which are estimated to be a small increment of the city’s system as a whole. FUNDING SOURCES Wastewater Impact Fees, with local share recovered via payback district New Replacement Equipment Project FY19 FY20 FY21 263 CIP Project Fund Impact Fees Wastewater PROJECT NUMBER WWIF25 DEPARTMENT WW IMPACT FEES PROJECT NAME CATTAIL CREEK BASIN EXTENSION (19TH FROM GRAF TO STUCKY AND STUCKY FROM 19T FY17 $1,263,674 FY18 Unscheduled DESCRIPTION OF PROJECT This project consists of increasing capacity to the existing sewer network by installing a sewer extension along 19th (from Graf to Stucky) and Stucky (from 19th to 0.5 miles west of 19th) ALTERNATIVES CONSIDERED Limit future development in the area. ADVANTAGES OF APPROVAL If constructed to the line sizes master planned in the City’s Wastewater Facilities plan, capacity will be provided for anticipating the long-term future growth in this area ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual Operating and Maintenance Costs: Impact fees can not fund operating and maintenance costs. The city’s wastewater utility will pay for these costs, which are estimated to be a small increment of the city’s system as a whole. FUNDING SOURCES Wastewater Impact Fees, with local share recovered via payback district New Replacement Equipment Project FY19 FY20 FY21 264 CIP Project Fund Impact Fees Wastewater PROJECT NUMBER WWIF26 DEPARTMENT WW IMPACT FEES PROJECT NAME SOUTH UNIVERSITY DISTRICT/CATTAIL CREEK BASIN EXTENSION (LINCOLNTO GARFIELD F FY17 $1,413,746 FY18 Unscheduled DESCRIPTION OF PROJECT This project consists of extending the sewer main to service South University District and Catail Creek Basin. ALTERNATIVES CONSIDERED Limit future development in the area. ADVANTAGES OF APPROVAL If constructed to the line sizes master planned in the City’s Wastewater Facilities plan, capacity will be provided for anticipating the long-term future growth in this area ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual Operating and Maintenance Costs: Impact fees can not fund operating and maintenance costs. The city’s wastewater utility will pay for these costs, which are estimated to be a small increment of the city’s system as a whole. FUNDING SOURCES Wastewater Impact Fees, with local share recovered via payback district New Replacement Equipment Project FY19 FY20 FY21 265 CIP Project Fund Impact Fees Wastewater PROJECT NUMBER WWIF27 DEPARTMENT WW IMPACT FEES PROJECT NAME SOUTH UNIVERSITY DISTRICT/CATTAIL CREEK BASIN EXTENSION (S 15TH AVE TO WILLOW FY17 FY18 $795,000 Unscheduled DESCRIPTION OF PROJECT This project consists of extending the sewer main to service the South University District area with a 10 inch sewer pipe. ALTERNATIVES CONSIDERED Limit future development in the area. ADVANTAGES OF APPROVAL If constructed to the line sizes master planned in the City’s Wastewater Facilities plan, capacity will be provided for anticipating the long-term future growth in this area ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual Operating and Maintenance Costs: Impact fees can not fund operating and maintenance costs. The city’s wastewater utility will pay for these costs, which are estimated to be a small increment of the city’s system as a whole. FUNDING SOURCES Wastewater Impact Fees, with local share recovered via payback district New Replacement Equipment Project FY19 FY20 FY21 266 CIP Project Fund Impact Fees Wastewater PROJECT NUMBER WWIF28 DEPARTMENT WW IMPACT FEES PROJECT NAME BRIDGER CANYON RD IMPROVEMENT (STORY MILL RD TO W ENTRANCE OF BRIDGER VIEW FY17 $322,829 FY18 Unscheduled DESCRIPTION OF PROJECT This project consists of installing a 15” sewer pipe from Story Mill Rd to the W entrance of Bridger View Trailer Court. ALTERNATIVES CONSIDERED Limit future development in the area. ADVANTAGES OF APPROVAL If constructed to the line sizes master planned in the City’s Wastewater Facilities plan, capacity will be provided for anticipating the long-term future growth in this area ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual Operating and Maintenance Costs: Impact fees can not fund operating and maintenance costs. The city’s wastewater utility will pay for these costs, which are estimated to be a small increment of the city’s system as a whole. FUNDING SOURCES Wastewater Impact Fees, with developer contributions New Replacement Equipment Project FY19 FY20 FY21 267 CIP Project Fund Impact Fees Wastewater PROJECT NUMBER WWIF29 DEPARTMENT WW IMPACT FEES PROJECT NAME IMPACT FEE STUDY - WASTEWATER FY17 $50,000 FY18 Unscheduled DESCRIPTION OF PROJECT The city needs to update its calculation and methodology used to establish the price of wastewater impacte fees. ALTERNATIVES CONSIDERED None. Required by State Law. ADVANTAGES OF APPROVAL A compliant impact fee program. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED None. FUNDING SOURCES 100% Wastewater Impact Fees. New Replacement Equipment Project FY19 FY20 FY21 268 CIP Project Fund Impact Fees Wastewater PROJECT NUMBER WWIF30 DEPARTMENT WW IMPACT FEES PROJECT NAME WASTEWATER RIGHT OF WAY - ACROSS MSU FARM FY17 $300,000 FY18 Unscheduled DESCRIPTION OF PROJECT The wastewater main right of way needs to be acquired across the MSU farm, to provide wastewater service connectivity to the south university district.  Customarily, main right of way is provided when development occurs, but the MSU farm is very unlikely to develop beyond its existing agricultural use. MSU has indicated that it may be willing to trade the right-of-way for in- kind services/installation of a water service line to their pavilion and connection to the service line. Either way, our righto of way needs to extend from Garfield Street south to Lincoln St. To be done in conjunction with WWIF26 - South University District/Cattail Creek Basin Extension. ALTERNATIVES CONSIDERED MSU Farm remains on a well and septic system. There are no suitable alternatives for the location of the Sewer Main. Without the project, the south university district will not have adequate sewer service for further development. ADVANTAGES OF APPROVAL Expansion of sewer service to growing parts of the community. Working with the existing land owner to negotiate the sale of right of way. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Minimal - paid for by Wastewater Utility. FUNDING SOURCES Wastewater Impact Fees New Replacement Equipment Project FY19 FY20 FY21 269