07-10-17 Work Session Agenda and MaterialsCITY COUNCIL
WORK SESSION AGENDA
Monday, July 10, 2017, at 7:00 p.m.
City Hall Council Chambers, 201 First Avenue East
A. CALL TO ORDER
B. DISCUSSION ITEMS
1. Management of Kalispell City Airport with User Group
2. Stormwater Utility Assessment Discussion
3. Urban Forestry Assessment Discussion
4. National Forest Service, Request for Joint Sale
C. PUBLIC COMMENT
Persons wishing to address the council are asked to do so at this time. Those addressing
the council are requested to give their name and address for the record. Please limit
comments to three minutes.
D. CITY MANAGER, COUNCIL, AND MAYOR REPORTS
E. ADJOURNMENT
UPCOMING SCHEDULE / FOR YOUR INFORMATION
Next Regular Meeting — July 17, 2017, at 7:00 p.m. — Council Chambers
Coffee with the Chief — Tuesday, July 18, 2017, at 5:30 p.m. — Winchester Room at Sykes
Diner, 202 2nd Avenue West
Next Work Session — July 24, 2017, at 7:00 p.m. — Council Chambers
Reasonable accommodations will be made to enable individuals with disabilities to attend this meeting.
Please notify the City Clerk at 758-7756.
Watch regular City Council sessions live on Charter Cable Channel 190 or online at the Meetings on
Demand tab at www.kalispell.com.
Page 1 of 1
CITYw� City of Kalispell
Post Office Box 1997 - Kalispell, Montana 59903
° Telephone: (406) 758-7701 Fax: (406) 758-7758
MONTAP
MEMORANDUM
To: Mayor Johnson and City Council
From: Doug Russell, City Manager*
Re: Management of Kalispell City Airport with User Group
Meeting Date: July 10, 2017
BACKGROUND: During the approval of the South Kalispell Urban Renewal Plan Update, the
Council was approached by users of the Kalispell City Airport requesting consideration of
turning the responsibility of managing and maintaining the facility to a user's association.
Council agreed to consider this option and provided guidance to staff related to working with the
user group on a possible framework for how this could work.
City staff and representatives of the airport users are ready to present a draft lease and respective
considerations that would remove the liability from the city and give management and
maintenance responsibilities to an independent association.
Highlights of the Draft Lease Agreement are as follows:
I- Existing hangar leases with the City would be cancelled, with the User Group
Association developing new leases with hangar owners
2- The current assets in the Airport Enterprise Fund would be provided to the User Group
3- The User Group would make improvements to the facility as outlined in the Master Plan
(as part of the lease agreement) using a combination of User Group funding and Tax
Increment Financing for new infrastructure. These improvements would include:
a. repairs to the taxiway (including widening one taxiway by about 4 feet for safety
purposes)
b. Make available space for additional hangars, T hangars, and business locations on
the airport grounds for potential future revenue
c. Improvements in airplane parking, preparation areas, and traffic flow
4- 20 year term with options for extension
The purpose of the work session is to present the draft agreement, discuss the respective
components of the agreement, and identify next steps. Representatives of the User Group will be
available to answer questions Council may have.
RECOMMENDATION: It is recommended that Council review and discuss the Draft Lease
Agreement.
Attachments:
Draft Lease Agreement with Master Plan
Return to:
City Clerk
P.O. Box 1997
Kalispell, MT 59903
KALISPELL MUNICIPAL AIRPORT
LEASE AND AGREEMENT TO ASSIGN
THIS KALISPELL MUNICIPAL AIRPORT LEASE AND AGREEMENT TO ASSIGN, made
and entered into as of the day of , 2017, hereinafter referred to as the "Airport
Lease", by and between the City of Kalispell, Montana, a Municipal Corporation, hereinafter
referred to as LESSOR and ASSIGNOR, and the Kalispell Airport Association, a Montana
Corporation, hereinafter referred to as LESSEE and ASSIGNEE,
WITNESSETH:
For and in consideration of the mutual covenants and promises and other good and
valuable consideration hereinafter set forth, the parties hereto agree as follows:
PROPERTY: LESSOR hereby leases to LESSEE and LESSEE hereby leases and hires from
LESSOR those certain premises and all appurtenances thereto situated in Kalispell, Flathead
County, Montana, as described in Exhibit "A" attached hereto and incorporated fully herein
by this reference.
TERM: TO HAVE AND TO HOLD the above rented premises during the full term of twenty
(20) years, which term shall begin upon the date above written and shall terminate upon the
expiration of said full twenty-year term, unless extended as hereinafter provided. The lease
may be extended for an additional five years at the conclusion of each five-year period upon
agreement of both parties. However, the first 5-year extension shall be granted provided the
LESSEE has completed, or provides a guarantee of funds for, the improvements to the Runway
as identified in Section 4.b.
2. LESSEE CONSIDERATION/AIRPORT MANAGEMENT: As consideration for this Airport
Lease, LESSEE shall provide all management services for the operations of the airport for the
term of this lease and any extensions made thereto. LESSEE agrees that it will be solely
responsible for the airport management and hereby indemnifies the LESSOR for any lawful
damages (excluding indirect, consequential or exemplary/punitive damages) proven by any
third party, which proximately and directly arise out of such management as determined by a
court of competent jurisdiction or by mutual agreement between the complainant and LESSEE.
The LESSOR shall maintain the obligation of codifying the Operating Standards of the Airport
and shall consider the management prerogative of the LESSEE in any amendments to such
Municipal Airport Lease and Agreement to Assign
existing standards as may be requested.
3. USE OF LEASED PREMISES: LESSEE shall use the leased premises for the sole purpose of
operating a general aviation airport and such other business activities as are commonly
accessory to a general aviation airport. LESSEE agrees to observe all material federal, state
and municipal laws and regulations as apply to a general aviation airport including those
related to human and equal rights as are currently in effect or as may come into effect in the
future. LESSEE shall not be deemed to be in default of or noncompliance with any federal,
state or municipal law and/or regulation, if such noncompliance existed prior to the execution
of this Airport Lease. In the event that LESSOR believes that a breach or default on the part of
LESSEE is or has transpired, LESSOR shall give LESSEE written notice setting forth with
specificity the alleged breach and/or default and LESSEE shall have ninety (90) days to remedy
such breach or default after delivery of said notice.
4. MAINTENANCE AND REPAIR OF PREMISES: LESSEE agrees to maintain the above -
described premises in a condition as near as is practicable to the condition of the property at
the time of the execution of this Airport Lease and to return said property to LESSOR at the
expiration of said lease in said condition, reasonable wear and tear and damage excepted. In
the event LESSEE refuses or neglects to keep the above -mentioned premises in such order and
condition hereinabove mentioned, LESSOR shall have, after first giving ninety (90) days
written notice to repair, the right to declare this lease null and void and of no further force and
effect.
a. Stormwater Regulations: LESSOR is mandated by the federal and state governments to
monitor and enforce the Stormwater MS4 Standards within the city limits of Kalispell.
Because of the extensive acreage of the property, it is essential that the LESSEE closely
cooperate with the LESSOR to assure that the Stormwater MS4 Standards are maintained.
For this reason, the LESSEE shall meet with the LESSOR for a training session on an
annual basis so that compliance may be maintained. The LESSEE shall submit its project
stormwater compliance plans to the LESSOR prior to commencement of any improvement
projects. The LESSEE agrees to remain in full compliance with the MS4 Stormwater
Standards. LESSEE shall not be deemed to be in default of or noncompliance with the said
MS4 Stormwater Standards, if such noncompliance existed prior to the execution of this
Airport Lease, but LESSEE shall, in good faith, cooperate with the LESSOR to gain
compliance for such pre-existing noncompliance.
b. Capital Investment: LESSOR and LESSEE agree to the completion of a Capital
Investment Master Plan as set forth in Exhibit B. Projects will be completed by the
LESSEE with funds reimbursed according to the sources and amounts identified in Exhibit
B. Projects that are intending to be funded in part with tax increment funds must be
completed or under contract prior to the expiration of the respective Tax Increment District.
Future projects may be added to the Master Plan upon mutual agreement of the parties.
Municipal Airport Lease and Agreement to Assign 2
5. LESSOR'S ACCESS TO AIRPORT: For the purpose of maintaining public utilities, the
LESSOR may, from time to time, require access to the Airport. In the event such maintenance
is required, the LESSOR shall provide adequate written notice to LESSEE. The written notice
shall outline the nature, purpose, access dates, and areas affected on the Airport. In the event
that emergency maintenance is required for the purpose of providing city utilities, the LESSOR
shall, upon discovery of need for access/maintenance, provide immediate written and verbal
notice to the LESSEE. Upon notice thereof, LESSEE will grant access for emergency
maintenance as requested.
6. EXISTING GROUND LEASES: LESSOR, as owner and current operator of the airport, is the
Lessor under certain Ground Leases which presently encumber the airport. LESSOR agrees,
as consideration for this Airport Lease, that upon release of the Ground Lease Lessees from
those Ground Lease obligations, this Airport Lease shall be construed as and deemed an
agreement with the LESSEE that allows LESSEE to enter into an airport management/lease
agreement(s) with those Ground Lease Lessees. The airport management/lease agreement(s)
with the Ground Lease Lessees will further allow the LESSEE to collect a fee from the Ground
Lease Lessees that is commensurate with the existing Ground Leases. Simultaneously with
the execution of this Airport Lease, or as near thereafter as is practicable, the LESSOR and
each of the Ground Lease Lessees shall execute an agreement that extinguishes the existing
Ground Leases and all nontax obligations of the parties thereunder, but that permits the
continuing land use of the existing Ground Leases. LESSEE shall have full authority to
negotiate and enter into a fee/lease schedule and related Ground Lease agreements with the
Ground Lease Lessees.
7. RED EAGLE LEASE AND MANAGEMENT AGREEMENTS: LESSOR shall also release
Red Eagle from its current lease and management obligations under an agreement in which
Red Eagle agrees to release LESSOR from any and all obligations contained within those lease
and management agreements. LESSOR shall continue to own the property upon which Red
Eagle operates, but after the release of the said lease between LESSOR and Red Eagle,
LESSEE and Red Eagle shall enter into a lease that permits the continuing land use in
accordance with the terms of the prior lease referenced herein and with a fee schedule that is
commensurate with the terms of the said prior lease.
8. ASSIGNMENT OF HILTON GARDEN INN GROUND LEASE: LESSOR shall assign all of
its rights and obligations to LESSEE of the Ground Lease that exists between the LESSOR
and the Hilton Garden Inn. This assignment shall revert to the LESSOR in the event of the
termination of this agreement.
9. UTILITIES: During the entire term of this Airport Lease, LESSEE shall timely pay for
required utilities serving the leased premises, including, but not limited to, electrical, gas,
telephone, water, sewer and garbage services.
10. COST OF OPERATION: All costs of operation including the cost or providing supplies,
equipment, tools, labor and other such items and the entire cost of maintaining and operating
the general aviation airport and other appurtenances shall be the sole responsibility of LESSEE.
Municipal Airport Lease and Agreement to Assign 3
11. COMMERCIAL, USER AND OTHER FEES: A Schedule of Fees shall be established by
LESSEE on an annual basis and provided by LESSEE to LESSOR prior to the first day of July
of each year of this Lease. This Schedule shall be advisory to the LESSOR only and shall not
require LESSOR's approval. LESSEE, in its sole discretion, may from year to year, during
the term of this Airport Lease, increase or decrease its Schedule of Fees.
12. LESSEE'S FINANCIAL REPORTS: Annually, on or before the 30th day of June, LESSEE
shall present to LESSOR, for review, a copy of LESSEE's annual financial report completed
in accordance with generally accepted accounting principles. The LESSEE's financial records
will be subject to an audit conducted by, and at the option of, the LESSOR (internal staff or
contract auditor). The cost of such audit shall be paid by the LESSOR.
13. LESSEE'S LIABILITY INSURANCE: LESSEE shall obtain and keep in full force and effect
during the term of this lease, full general liability insurance in the amount Seven Hundred Fifty
Thousand Dollars ($750,000.00) per occurrence and One Million Five Hundred Thousand
Dollars ($1,500,000.00) aggregate with a company licensed to do business in the State of
Montana with a minimum of"A.M. Best Rating" of A-, VI; said policy of insurance shall name
LESSOR as additional named insured and be written on a "primary —noncontributory basis."
In the event the Montana legislature increases the limitations on government liability for
damages in tort LESSEE agrees to increase its liability coverage accordingly. LESSOR shall
be furnished with a certificate that such insurance is in force and the same shall provide for
reasonable notification to LESSOR prior to the same being canceled. LESSEE agrees to hold
LESSOR harmless from any and all liability of any nature, whatsoever, arising from or out of
LESSEE's possession, use, maintenance, improvement or occupancy of the property herein
described; LESSEE further agrees to defend, at LESSEE's expense, any action brought against
LESSOR arising out of LESSEE's possession, use, maintenance, improvement or occupancy
of said property. Notwithstanding any provision in this paragraph to the contrary, the
indemnity and defense provisions set forth herein shall not apply to any claims or demands
made by any party after the execution of this Airport Lease, if such claim or demand arises out
of or as a result of any breach, noncompliance, damage or injury that is alleged to have
occurred, existed or arisen prior to the execution of this Airport Lease, even if such claim is
brought after the execution of the same.
14. FIRE INSURANCE: During the full term of this lease, LESSOR shall maintain its own fire
insurance adequate to cover replacement costs on the improvements on said premises. Should
the premises, during the term of this Airport Lease, suffer damages which are covered by said
fire insurance policy, LESSOR agrees to utilize all insurance reimbursements therefore, toward
rebuilding or repairing the damaged premises, or toward providing comparable replacement
facilities. The contents of buildings and fixtures located on the premises shall be insured by
LESSEE and shall be in such amounts as to assure replacement. The parties mutually agree as
to waiver of subrogation rights each with the other.
15. DEFAULT AND BANKRUPTCY: In the event that:
a. LESSEE shall commit a material default in the observance or performance of any term of
LESSEE's covenants, agreements, or obligations hereunder and such material default shall
Municipal Airport Lease and Agreement to Assign
not be corrected within ninety (90) days after written notice thereof, or
b. LESSEE shall be declared bankrupt or insolvent according to law, or, if any assignment
shall be made of LESSEE's property for the benefit of creditors;
LESSOR shall have the right thereafter, when such default continues, to re-enter and take
complete possession of the leased premises, according to law, and to declare the term of this
Airport Lease ended, and to remove LESSEE's effects, without prejudice. In doing so, no
additional rent payments may be collected from LESSEE; however, if LESSEE shall default,
after reasonable notice thereof, in observance or performance of any material conditions or
covenants on LESSEE's part to be observed or performed by virtue of any of the provisions in
any article of this Airport Lease, LESSOR, without being under any obligation to do so and
without thereby waiving such default, may remedy such default for the account and at the
expense of LESSEE. The parties hereby agree that in the event of material default, the
LESSOR is under no obligation to maintain the use of the property as an airport facility, is
released from all legal liability to any airport user, and may convert the property to any other
legal use by proper execution of legal process.
16. NOTICE: No notice from LESSOR to LESSEE relating to the leased premises or the
occupancy thereof, shall be deemed duly served unless personally served upon or mailed to
LESSEE, registered or certified mail, return receipt requested, postage prepaid, and addressed
to LESSEE at its address as follows:
Kalispell Airport Association
Post Office Box
Kalispell, Montana 59903
Any notice from LESSEE to LESSOR relating to the leased premises or the occupancy thereof,
shall be deemed duly served, if personally served upon or if mailed to LESSOR by registered
or certified mail, return receipt requested, postage prepaid, and addressed to LESSOR at the
address as follows:
Manager
City of Kalispell
201 First Avenue East
Kalispell, Montana 59903-1997
17. TIME OF ESSENCE AND BINDING EFFECT: It is mutually agreed by and between the
parties hereto that the time of payment shall be an essential part of this Airport Lease, and that
all of the covenants and agreements herein contained shall extend to and be binding upon the
parties hereto, and their successors and assigns.
18. FORCE MAJEURE. LESSEE's obligations under this Airport Lease shall be suspended and
excused, and the time periods set forth herein shall be extended, while LESSEE is prevented
Municipal Airport Lease and Agreement to Assign
or substantially hindered or restricted, by an Event of Force Majeure, from conducting or
performing its obligations hereunder. The term "Event of Force Majeure" means any of the
following, whether actual or potential: strikes, lock outs or other labor disturbances; delays in
transportation; the inability to secure labor or materials in the open market; acts of God or the
elements; inclement or adverse weather, conditions attributable to acts of war, terrorism or
civil disturbances; acts or failures to act of LESSOR; the effect of any Laws; the failure of a
governmental authority to issue any permit, entitlement, approval or authorization within sixty
(60) days after LESSEE submits an application for the same; or any other matter or condition
beyond the reasonable control of LESSEE.
19. CONSTRUCTION, INTERPRETATION AND MODIFICATION OF AIRPORT LEASE.
This Airport Lease, including any Exhibits attached hereto, contains the entire agreement
between the parties in connection with any matter mentioned herein, and all prior or
contemporaneous agreements, understandings and representations are merged herein and
superseded hereby. Should any provision of this Airport Lease be held to be invalid, void or
unenforceable, the remaining provisions hereof shall remain in full force and effect,
unimpaired by such holding. This Airport Lease shall not be interpreted as creating any
partnership or other relationship between the parties, other than that of landlord and tenant.
Any rule of construction to the effect that ambiguities are to be resolved in favor of either party
shall not be employed in the interpretation of this Airport Lease and is hereby waived. No
waiver by a party of any term or provision hereof shall be deemed a waiver of any other term
or provision, and any waiver of rights hereunder must be in writing to be effective. This
Airport Lease shall be governed by and interpreted in accordance with the laws of the state in
which the subject property is located. The use of the neuter gender includes the masculine and
feminine, and the singular number includes the plural, and vice versa, whenever the context so
requires. The terms "include", "includes" and "including", as used herein, are without
limitation. Captions and headings used herein are for convenience of reference only and do
not affect the scope, meaning or intent hereof. This Airport Lease may be executed with
counterpart signature pages and in duplicate originals, each of which shall be deemed an
original, and all of which shall collectively constitute a single instrument. This Airport Lease
may not be amended or modified unless and except such modifications or amendments are
made in writing and executed by all parties hereto.
20. QUIET ENJOYMENT. During the entire term of this Airport Lease, (a) LESSEE shall have
peaceful and quiet enjoyment of the subject property, without hindrance or interruption by
LESSOR or any other person and (b) LESSOR shall protect and defend the right, title and
interest of LESSEE hereunder from any other rights, interests, title and claims of or by any
person.
Municipal Airport Lease and Agreement to Assign 6
IN WITNESS WHEREOF, the parties have executed this lease as of the date first above
written.
ATTEST:
Aimee Brunckhorst, CMC
City Clerk
ATTEST:
Association Secretary
CITY OF KALISPELL
Doug Russell
City Manager
KALISPELL AIRPORT ASSOCIATION
President
Municipal Airport Lease and Agreement to Assign
STATE OF MONTANA )
) ss.
County of Flathead )
On this day of , 2017, before me, a Notary Public for the State of
Montana, personally appeared Doug Russell and Aimee Brunckhorst, respectively, proved to me
to be the persons whose names are subscribed to the within instrument, and acknowledged to me
that they each executed the same in their respective authorized capacities as City Manager and
City Clerk of the City of Kalispell.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day
and year hereinabove first written.
SEAL
STATE OF MONTANA )
) ss.
County of Flathead )
Printed Name:
NOTARY PUBLIC for the State of Montana
Residing at:
My Commission expires:
On this day of , 2017, before me, a Notary Public for the State of
Montana, personally appeared and and proved to me to
be the persons whose names are subscribed to the within instrument, and acknowledged to me
that they each executed the same in their respective authorized capacities as President and
Secretary of the Kalispell Airport Association, a Montana not for profit corporation.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day
and year hereinabove first written.
SEAL
Printed Name:
NOTARY PUBLIC for the State of Montana
Residing at:
My Commission expires:
Municipal Airport Lease and Agreement to Assign
0
Repair
East Taxiway Pulverize and Repave
44,000 sf x 2.94/sf = $129)360
West Taxiway Pulverize and Repave
44,000 sf x 2.94/sf = $129)360
Runway Overlay
225,000 sf x 1.72/sf = $38T000
VASI $15)000
A IL A �_
New
Hilton Tarmac/Parking Addition Kalispell Air Repair Ramp Addition
70,350 sf x 3.67/sf = $258,185 4,000 sf x 3.67/sf = $14,680
Street Access/ Business access and 2T Hangars Runway 31 Run Up/ Turn Around Area
36,000 sf x 3.67/sf = $132,120 6,000 sf x 3.67/sf = $22, 020
Displaced Threshold Runway 13 (Takeoff use only) Widen Taxiways by 4'
24,000 sf x 3.67/sf = $88, 080 44,000 sf x 3.67/sf = $161,480
Runway 13 Run Up/ Turn Around Area
12,000 sf x 3.67/sf = $44,040
KAA Master plan 2017
Repair Cost:
New Construction Cost:
Utilities:
Engineering:
Total Cost:
$660)000
$721Y000
$225Y000
$65Y000
$1)671)000
CTTYnF City of Kalispell
.. ,.� Y p
Post Office Box 1997 - Kalispell, Montana 59903
LNj_ 1 Telephone: (406) 758-7701 Fax: (406) 758-7758
1VIONT<4NA
MEMORANDUM
To: Mayor Johnson and City Council
From: Doug Russell, City Manager '3�9'
Re: Budget Review of Stormwater and Forestry Assessments
Meeting Date: July 10, 2017
BACKGROUND: As part of the continuing discussion related to Forestry and Stormwater
Assessments, the work session will be to refine further options for consideration regarding the
assessment rates for these respective funds.
Stormwater
For Stormwater, two scenarios are being presented. The first scenario presents the base
information for assessment increases to address service levels that are required by the most
recent permit from the State of Montana. The second scenario incorporates a capital component
that would reduce the amount of impact fees by 50% and recoup the revenue for that portion of
the project from assessments.
Forestry
The Forestry Fund has two scenarios attached based on previous meeting discussion. Both
scenarios are in accordance with increasing the assessments and caps in equal proportion related
to the level of service to address the backlog and removals in the first two years and then
incorporate a routine maintenance schedule for the following years. The first scenario raises the
assessment to 0.004275 which creates a healthy fund through FY22. The second scenario
increases the assessment to 0.0047025 which creates a healthy fund through FY27. In addition
to these scenarios, the presentation from the last work session is also attached.
RECOMMENDATION: It is recommended that Council receive the staff presentation and
provide direction related to the respective assessments.
ATTCHMENTS:
Stormwater Scenarios
Forestry Scenarios
Forestry Scenarios from 6/26/17
rmwr Assessmenv•i w
9 all"n,
v
-sum
4i2w"14di- k�- -
7/10/2017
Level of Service Options
55% Total
(20%, 10%,10%, 10% 5%)
Meets Criteria A to E
2
80% Total
(50%, 9%, 7%, 9% 5% )
Meets Criterial A to F
50% Impact Fee
Reduction
Criteria Analysis
A. Maintenance and Operation
■ Resources to maintain & operate utility and meet current permit requirements
B. 1.5 Additional Full Time Employees
■ Engineer Technician
■ Stormwater Operator (Split with Sewer)
■ Resources for M&O system and meet current permit requirements
C. Equipment Replacement
■ Replace equipment per replacement schedule
D. Capital Project Funds
■ Fund projects to improve and maintain the stormwater system
■ Install WQ treatment structures to meet permit compliance
E. Healthy Fund for 10 Years Comparatively
■ Revenues > Expenditures
■ Check - Operating Ending Cash @ 50% of Expenditure
F. Includes Impact Fee Reduction Offsets in Capital Projects (Options 2)
Rates Capital Projects -10Years-Option
proposed
proposed
proposed
proposed
proposed
proposed
proposed
proposed
proposed
proposed
proposed
BUDGET
BUDGET
BUDGET
BUDGET
BUDGET
BUDGET
BUDGET
BUDGET
BUDGET
BUDGET
BUDGET
ID
LOS
Capital Outlay: from rates (10100)
FY17/18
FY18/19
FY19/20
FY20/21
FY21/22
FY22/23
FY23/24
FY24/25
FY25/26
FY26/27
FY27/28
951
B
9 St. E. Strmwtr Impry FYI 5,2Mi.Dr Drain Imp FYI
$250,000
952
B
Storm Drain Correction Funds
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
$100,000
953
B
Willows Prj FY14&15; Shop Complex Pavement Restoration
$38,200
954
B
S. Meadows Phase I-Fy12; Phase2-FY13,Phase3-FYI6
955
B
Sylvan Dr Repair Phase I-FY16 Carryover
$390,000
STX-54
B
STX 54 4th Ave E Stormwater (non -bonded portion)
$30,000
STX-6
B
Liberty Street Storm Drain Improvements
$200,563
STX-41
B
North Main Storm Improvement Project
$166,914
STX-42
B
Ehn's Stormwater Improvement Project
$210,625
SIX-45
B
3rd Ave E and 8th St E Intersection Drainage Improvements
$211,709
SIX-46
B
4th St W and 9th Ave W Intersection Drainage Improvements
$357,143
SIX-49
B
Stormwater Quality Treatment Facility- Wyoming Street Outfall
$125,334
SIX-50
B
Stormwater Quality Treatment Facility-8th ave W and 11 St W Outfall
$297,594
SIX-51
B
Stormwater Quality Treatment Facility- 1st Ave W South of City Shops
$297,594
SIX-52
B
Stormwater Quality Treatment Facility- Meridian Detention Facility Outfall
$273,092
SIX-56
B
West Center Street from 7th Ave W to I Oth Ave W Storm Addition
$379,418
B
Subtotal
$808,200
$266,914
$225,334
$310,625
$397,594
$397,594
$373,092
$311,709
$479,418
$300,563
$457,143
Assessment Review- Option
BEGINNING CASH
10100 CASH: Operating
Cash, Designated for Equipment
10190 Replacement
10193 Cash, Designated Capital Projects
REVENUES
Revenue Total
343370 Storm Assessments -billed (10100)
Assessments -designated for equipment
(10190)
Assessments -designated for capital projects
(10193)
EXPENSES
Expenses Total
EXPENSES FROM RATES (10100)
Capital Equipment -replacement (10190)
Capital projects (10193)
Capital Outlay - Bonded Debt Operations
ENDING CASH
10100 Cash, Operating
10190 Cash, Designated Equipment Replacement
10193 Cash, Designated Capital Projects
heck
Annual Comparison-20%,10%,10%,10%, 5% Increase
Square
Current
5fh Year Adj
DifferenceiDifference
Footage
Year
/Month
$-
Residential
4,000
$22.28
$37.36
$15.08
$1.26
Residential
8,000
$44.55
$74.72
$30.16
$2.51
Residential
10,000
$55.69
$93.40
$37.71
$135.28
$3.
$11.27
Commercial 20,000 $199.80 $335.08
90%
$:
$338.19
$28.18
Commercial 50,000 $499.50 $837.69
90%
$169.10
$14.09
Commercial 20,000 $249.76 $418.86
100%
$422.76
Commercial
,,,,,Q, 50,000 $624.40 $1,047.16
$35.23
FY17/18
FY18/19
FY19/20
I FY20/21
I FY21/22
$1,264,720
$471,111
$409,155
$442,872
$536,987
$171,186
$85,786
$53,286
$40,361
$29,435
$0
$200,000
$233,086
$307,752
$347,127
0.20
0.10
0.10
0.10
0.05
$1,063,654
$1,170,019
$1,287,021
$1,415,724
$1,486,510
$813,654
$795,019
$912,021
$990,724
$1,061,510
$50,000
$75,000
$75,000
$75,000
$75,000
$200,000
$300,000
$300,000
$350,000
$350,000
FY22/23
$676,257
$34,510
$299,533
1
FY23/24 I
FY24/25 I
FY25/26 I
FY26/27 I
FY27/28
$788,952
$874,078
$930,593
$957,403
$953,358
$17,584
$37,659
$67,733
$22,308
$42,383
$251,939
$228,847
$267,138
$137,720
$187,157
$1,486,510
$1,486,510
$1,486,510
$1,486,510
$1,486,510
$1,486,510
$1,061,510
$1,061,510
$1,061,510
$1,061,510
$1,061,510
$1,061,510
$75,000
$75,000
$75,000
$75,000
$75,000
$75,000
$350,000
$350,000
$350,000
$350,000
$350,000
$350,000
$1,742,663
$1,231,390
$1,191,563
$1,293,160
$1,389,758
$1,438,335
$1,404,401
$1,361,629
$1,634,543
$1,421,043
$1,652,685
$1,599,763
$849,476
$870,804
$889,109
$914,739
$941,315
$968,884
$997,495
$1,027,200
$1,058,054
$1,090,117
$135,400
$107,500
$87,925
$85,925
$69,925
$91,925
$54,925
$44,925
$120,425
$54,925
$97,925
$0
$266,914
$225,334
$310,625
$397,594
$397,594
$373,092
$311,709
$479,418
$300,563
$457,143
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,499
$7,500
$7,500
$7,500
$7,500
$471,111
$409,155
$442,872
$536,987
$676,257
$788,952
$874,078
$930,593
$957,403
$953,358
$917,251
$85,786
$53,286
$40,361
$29,435
$34,510
$17,584
$37,659
$67,733
$22,308
$42,383
$19,457
$200,000
$233,086
$307,752
$347,127
$299,533
$251,939
$228,847
$267,138
$137,720
$187,157
$80,014
false
false
true
true
true
true
true
true
true
true
true
,900,000
,700,000
,500,000
,300,000
,100,000
M0,000
j700,000
/1
--w-rcevenue i otai
-I-Expenses Total
FY17/18 FY18/19 FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 FY26/27 FY27/28
2017 Draft Stormwater Impact Fee -Reductions
Impact Fee Per Equivalent Residential Unit[1]
Type of Use #of ERUsImpact Fee
Single -Family 1 $1,121/ERU
Impact Fee Component Existing Future Total
Current Fee
Fee with Future projects Only
Stormwater Facilities
$264
$182
$446
5 ' Administrative Charge
13
9
22
.Subtotal
$277
$191
$468
Fee with COP 124 Extension
Stormwater Facilities
$0
$333
$333
5% Administrative Charge
0
17
17
Subtotal
$0
$350
$350
Fee with COMP 118 Extension
Stormwater Facilities
$C
398
$398
S% Administrative Charge
0
20
20
Subtotal
$0
418
$418
Net Allowable Impact Fee
$277
$959
$1,236
Future +
COP 124 +
Fee with Future + COP 124 & 118 Projects
Existing
COP 189
Total
Stormwater Facilities
$264
$913
51,177
Administrative Charge
13
46
59
Net Allowable Impact Fee
$277
$959
$1,236
Total Impact Fee
(No Adm.)=$1,177/ERU
Reductions $/ERU
25%-$883
50%-$589
75%-$249
Rates Capital Project Addition for Impact Fee Offset
Option 2 through 5
YEAR
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
ERU's/Year at 2% rowthrat
426
434
443
452
461
470
480
489
499
509
519
530
540
$/ERU
2018 to 2028
Total
Total Impact Fee (no adm)
$1 177
$501 402
$510 818
$521 034
$531 456
$542 085
$552 926
$564 960
$575 553
$587 064
$598 806
$610 782
$623 810
$635 580
0% Reduction Applied to $/ERU
$589
$250,701
$255,409
$260,517
IS260,517
$265,728
$271,043
$276,463
$282,480
$287,777
$293,532
$299,403
$305,391
$311,905
$317,790
Option 3 50% Rates Offse
$250,701
$255,409
$265,728
$271,043
$276,463
$282,480
$287,777
$293,532
$299,403
$305,391
$311,905
$317,790
$3,172,028
Option 2 50% Offset Match with Assessment Funds
o Step One: Applied percent reduction to total impact fee (administrative
charge not included). Multiply reduced $/ERU by annual projected
ERU/Year at 2% growth rate.
o Step Two: Annual offset calculated by subtracting reduced annual amount
from total fee
o Step Three: Applied as Capital Project in Rates Projection Table for 2018 to
2028 (next slides)
Assessment Review- Option 3: 50% Impact Fee Reduction Offset
BEGINNING CASH
10100 CASH: Operating
Cash, Designated for Equipment
10190 Replacement
10193 Cash, Designated Capital Projects
REVENUES Total Adj 80%
Revenue Total
343370 Storm Assessments -billed (10100)
Assessments -designated for equipment
(10190)
Assessments -designated for capital projects
(10193)
EXPENSES
Expenses Total
EXPENSES FROM RATES (10100)
Capital Equipment - replacement (10190)
Capital projects (10193)
Capital Outlay - Bonded Debt Operations
ENDING CASH
10100 Cash, Operating
10190 Cash, Designated Equipment Replacement
10193 Cash, Designated Capital Projects
Check
Annual Comparison -Increase
Square
Footage
Current
5fh Year
Adj
Diff/
Year
Difference/
Month
Residential
4,000
$22.28
$44.60
$22.33
$1.86
Residential
8,000
$44.55
$89.20
$44.65
$3.72
Residential
10,000
$55.69
$111.51
$55.82
$4.65
Commercial
20,000
$199.80
$400.05
$200.25
$16.69
90%
Commercial
50,000
$499.50
$1,000.12
$500.62
$41.72
90%
Commercial
20,000
$249.76
$500.08
$250.32
$20.86
100%
Commercial
50,000
$624.40
$1,250.20
$625.80
1 $52.15
100%
FY17/18 I
FY18/19
FY19/20 I
FY20/21 I
FY21/22
FY22/23 I
FY23/24
FY24/25
FY25/26
FY26/27 I
FY27/28
$1,264,720
$476,508
$428,033
$454,361
$546,524
$691,552
$804,707
$884,539
$929,889
$939,545
$911,833
$171,186
$85,786
$53,286
$40,361
$29,435
$34,510
$17,584
$37,659
$67,733
$22,308
$42,383
$0
$460,517
$759,331
$1,105,039
$1,420,878
$1,655,764
$1,895,946
$2,166,386
$2,504,080
$2,680,053
$3,041,395
50%
9%
7%
9%
5%
$1,329,568
$1,449,229
$1,550,675
$1,690,235
$1,774,747
$1,774,747
$1,774,747
$1,774,747
$1,774,747
$1,774,747
$1,774,747
$819,050
$808,501
$904,632
$988,772
$1,067,267
$1,061,971
$1,056,215
$1,050,344
$1,044,356
$1,037,842
$1,031,957
$50,000
$75,000
$75,000
$75,000
$75,000
$75,000
$75,000
$75,000
$75,000
$75,000
$75,000
$460,517
$565,728
$571,043
$626,463
$632,480
$637,777
$643,532
$649,403
$655,391
$661,905
$667,790
$1,742,663
$1,231,390
$1,191,563
$1,293,160
$1,389,758
$1,438,335
$1,404,401
$1,361,629
$1,634,543
$1,421,043
$1,652,685
$1,599,763
$849,476
$870,804
$889,109
$914,739
$941,315
$968,884
$997,495
$1,027,200
$1,058,054
$1,090,117
$135,400
$107,500
$87,925
$85,925
$69,925
$91,925
$54,925
$44,925
$120,425
$54,925
$97,925
$0
$266,914
$225,334
$310,625
$397,594
$397,594
$373,092
$311,709
$479,418
$300,563
$457,143
$7,500
$7,500
$7,500
$7,500
$7,500
$7,500
$7,499
$7,500
$7,500
$7,500
$7,500
$476,508
$428,033
$454,361
$546,524
$691,552
$804,707
$884,539
$929,889
$939,545
$911,833
$846,173
$85,786
$53,286
$40,361
$29,435
$34,510
_ $17,584
$37,659
$67,733
$22,308
$42,383
$19,457
$460,517
$759,331
$1,105,039
$1,420,878
$1,655,764
$1,895,946
$2,166,386
$2,504,080
$2,680,053
$3,041,395
***$3,252,042
false
false
true
true
true
true
true
true
true
true
true
NOTE: * * * $3,172,028
collected for growth projects over 11 years.
$2,000,000 -
Revenue Total
$1,800,000 Expenses Total
$1,600,000 - X !"
$1,400,000 X
iK
$1,200,000 X X
$1, 000,000
FY17/18 FY18/19 FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 FY24/25 FY25/26 FY26/27 FY27/28
Assessment Adjustment Comparison
Option I
Final Year
Description Sq FT Rate/Year Rate/Year Rate/Year Rate/Year Rate/Year
Current Rate/Year
Difference/Year
Difference/Month
Stratford Village SF
4,000
$26.73
$29.40
$32.34
$35.58
$37.36
$22.28
$15.08
$1.26
Leisure Heights SFR
8,000
$53.46
$58.81
$64.69
$71.16
$74.72
$44.55
$30.16
$2.51
Glacier Commons SFR
10,000
$66.83
$73.51
$80.86
$88.95
$93.40
$55.69
$37.71
$3.14
Commercial (90%)
20,000
$239.76
$263.74
$290.11
$319.12
$335.08
$199.80
$135.28
$11.27
Commercial 90%
50,000
$599.40
$659.34
$725.27
$797.80
$837.69
$499.50
$338.19
$28.18
Commercial (100%)
20,000
$299.71
$329.68
$362.65
$398.92
$418.86
$249.76
$169.10
$14.09
Commercial 100%
50,000
$749.28
$824.21
$906.63
$997.29
$1,047.16
$624.40
$422.76
$35.23
% Increase
55%
20%
10%
10%
10%
5%
Option 2: 50% Impact Fee Reduction Offset
Final Year
Description Sq FT Rate/Year Rate/Year Rate/Year Rate/Year Rate/Year
Current Rate/Year
Difference/Year
Difference/Month
Stratford Village SFR
4,000
$33.41
$36.42
$38.97
$42.48
$44.60
$22.28
$22.33
$1.86
Leisure Heights SFR
8,000
$66.83
$72.84
$77.94
$84.96
$89.20
$44.55
$44.65
$3.72
Glacier Commons SFR
10,000
$83.54
$91.05
$97.43
$106.20
$111.51
$55.69
$55.82
$4.65
Commercial (90%)
20,000
$299.70
$326.67
$349.54
$381.00
$400.05
$199.80
$200.25
$16.69
Commercial 90%
50,000
$749.25
$816.68
$873.85
$952.50
$1,000.12
$499.50
$500.62
$41.72
Commercial (100%)
20,000
$374.64
$408.36
$436.94
$476.27
$500.08
$249.76
$250.32
$20.86
Commercial 1000/0
50,000
$936.60
$1,020.89
$1,092.36
$1,190.67
$1,250.20
$624.40
$625.80
$52.15
% Increase
1 80%
50%
9%
7%
9%
5%
Option
1-Review
Lot Size Statistics (per square foot)
Category
Average
Max
Minimum
Mode
Residential
9,450
21,780
158
7,100
Commercial 90%
46,742
71,522
702
7,100
Commercial 100%
32,728
977,922
84
7,000
OPTION 1
# of Parcels
S Ft
Vacant Total
894
129,557,41
Residential Total
7,759
73,927,642
FY 18
FY 19
FY20
FY21
FY22
June 15th
Current Rate
20%
10%
10%
10%
5%
Category
# of parcels
sq ft total
Total Dollars
Total Dollars
Total Dollars
Total Dollars
Total Dollars
Total Dollars
1. Vacant
801
12,598,102
$36,283
$43,539
$47,893
$52,682
$57,950
$60,848
Ia. Vacant w/ cap 2 Acres
93
116,959,314
$23,334
$28,001
$30,801
$33,881
$37,269
$39,133
2. Residential
7,605
63,481,878
$353,531
$424,237
$466,660
$513,326
$564,659
$592,892
a. Residential w/ca 0.5 Acres
154
10,445,764
$18,679
$22,415
$24,656
$27,122
$29,834
$31,326
3. Commercial90%
578
28,024,252
$279,962
$335,955
$369,550
$406,505
$447,156
$469,514
4. Commercial100%
470
13,980,674
$174,591
$209,509
$230,460
$253,506
$278,856
$292,795
P. Parkland
1
2,242,246
$
$
$
$
$
$
Tota
247,732,230
$886,378
$1,063,655
$1,170,021
$1,287,023
$1,415,725
$1,486,511
Option 1 Final Year
Description Sq FT Rate/Year Rate/Year Rate/Year Rate/Year Rate/Year Current Rate/Year I Difference/Year I Difference/Month
Stratford Village SFR
4,000
$26.73
$29.40
$32.34
$35.58
$37.36
$22.28
$15.08
$1.26
Leisure Heights SFR
8,000
$53.46
$58.81
$64.69
$71.16
$74.72
$44.55
$30.16
$2.51
Glacier Commons SFR
10,000
$66.83
$73.51
$80.86
$88.95
$93.40
$55.69
$37.71
$3.14
Commercial 90%
20,000
$239.76
$263.74
$290.11
$319.12
$335.08
$199.80
$135.28
$11.27
Commercial 90%
50,000
$599.40
$659.34
$725.27
$797.80
$837.69
$499.50
$338.19
$28.18
Commercial (90%)
718,522
$8,613.64
$9,475.01
$10,422.51
$11,464.76
$12,038.00
$7,178.03
$4,859.96
$405.00
Commercial 100%
20,000
$299.71
$329.68
$362.65
$398.92
$418.86
$249.76
$169.10
$14.09
Commercial (100%)
50,000
$749.28
$824.21
$906.63
$997.29
$1,047.16
$624.40
$422.76'
$35.23
Commercial 100%
977,922
$14,654.75
$16,120.22
$17,732.24
$19,505.47
$20,480.74
$12 212.29
$8,268.45
$689.04
% Increase 1 1 20% 1 10% 1 10% 1 10% 1 5%
Option 2-Review
Lot Size Statistics (per square foot)
Category
Average
Max
Minimum
Mode
Residential
9,450
21,780
158
7,100
Commercial 90%
46,742
71,522
702
7,100
Commercial 100%
32,728
977,922
84
7,000
Option 2: 50% Impact Fee Reduction Offset
Final Year
Description Sq FT Rate/Year Rate/Year Rate/Year Rate/Year Rate/Year
Current Rate/Year
Difference/Year
Difference/Month
Stratford Village SFR
4,000
$33.41
$36.42
$38.97
$42.48
$44.60
$22.28
$22.33
$1.86
Leisure Heights SFR
8,000
$66.83
$72.84
$77.94
$84.96
$89.20
$44.55
$44.65
$3.72
Glacier Commons SFR
10,000
$83.54
$91.05
$97.43
$106.20
$111.51
$55.69
$55.82
$4.65
Commercial (90%)
20,000
$299.70
$326.67
$349.54
$381.00
$400.05
$199.80
$200.25
$16.69
Commercial (90%)
50,000
$749.25
$816.68
$873.85
$952.50
$1,000.12
$499.50
$500.62
$41.72
Commercial (90%)
718,522
$10,767.05
$11,736.09
$12,557.61
$13,687.80
$14,372.19
$7,178.03
$7,194.15
$599.51
Commercial (100%)
20,000
$374.64
$408.36
$436.94
$476.27
$500.08
$249.76
$250.32
$20.86
Commercial (100%)
50,000
$936.60
$1,020.89
$1,092.36
$1,190.67
$1,250.20
$624.40
$625.80
$52.15
Commercial (100%)l
977,922
$18,318.43
$19,967.09
$21,364.79
$23,287.62
$24,452.00
$12,212.29
$12,239.71
$1,019.98
% Increase
1
50%
9%
7%
9%
5%
# of Parcels
S Ft
Vacant Total
894
129,557,416
esidential Total
7,759
73,927,642
FY 18
FY 19
FY20
FY21
FY22
une 15th
Current Rate
50%
9%
7%
9%
5%
Category
# of parcels
sq ft total
Total Dollars
Total Dollars
Total Dollars
Total Dollars
Total Dollars
Total Dollars
1. Vacant
801
12,598,102
$36,283
$54,424
$59,322
$63,474
$69,187
$72,647
la. Vacant w/ cap 2 Acres
93
116,959,314
$23,334
$35,001
$38,151
$40,822
$44,496
$46,721
2. Residential
7,605
63,481,878
$353,531
$530,296
$578,022
$618,484
$674,148
$707,855
a. Residential w/ca 0.5 Acres
154
10,445,764
$18,679
$28,019
$30,54
$32,678
$35,619
$37,40
3. Commercial 90%
578
28,024,252
$279,962
$419,943
$457,738
$489,780
$533,86
$560,553
4. Commercial 100%
470
13,980,67
$174,591
$261,886
$285,45
$305,438
$332,92
$349,573
5. Parkland
2 242 24
$
$
$
$
$
$
Total
247,732,230
$886,378
$1,329,569
$1,449,23
$1,550,676
$1,690,23
$1,774,74
Forestry Assessment
Tonight's presentation will give us two scenarios to consider for fundin
the Urban Forestry Program.
Forestry History and Increases
Based on 3.4% Increase in Salaries and 2% Increase in OEW
Increase Annual Assessment with Existing Caps Parks & Recreation
Assessment at .004275
FY 16/17 FY 16/17 FY 17/18 FY 19/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28
Budget Estimated Actual Proposed
Cash $149,O86 $149,086 $113,396 $288,600 $254,539 $203,635 $135,363 $49,183-$55,463-$167,951 _-$268,514-$388,696-$529,115
Additional Revenue $200,000 $200,000
Assessments $210,O $210,000 $532,408 $532,408 $532, $532,408 $532,408 $532,409 $532,408 $532,409 M $532,408 $532,408 32,408
Misc Rev 558,500 $19,310 $24,200 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500
$4,500 $4,500 $4,500
Inception Lease $40,000
TOTAL AVAI L $417,586 $379,396 ' $910,004 $1,025,508 $791,447 $740,543 $672,271 $586,091 $481,445 $368,957 $268,394 $148,212 $7,793
Budget
Salaries $167,929 _ $167,929 $175,888
2 FTE's $71,181
O&M $113,669 $113,669 $119,335
Contracted services hazards $200,000
Cyclic contracted pruning small trees
Cyclic contracted pruning large trees
chipper
TOTAL EXPEND
Ending Cash
$0 $55,000
$281,598 ' $265,000
$135,988 $113,396
7,721 parcels _
930 parcels
15 parcels
1038 parcels
$181,969 $188,052.� $194,445 $201,057 $207,893 $214,961 $222,270 $229,827 $237,641� $245,721
$134,619 $139,196 $143,929 $148,822 $153,882 $159,114 $164,524 $170,118 $175,902 $181,883
$121,722 $125,373 $129,135 $133,009 $136,999 $141,109 $145,3421 $149,702 $154,193 $158,819
$200,000
4-
$28,025 $28,586 $29,157 $29,740 $30,335 $30,942
$93,535 $95,405.70 $97,313.81 $99,260.09 $101,245.29 $103,270.20 $105,335.60 $107,442.31 $109,591.16 $111,782.98
$11,200 $11,200 $11,200 $11,200 $11,200
$621,404 $770,969 $587,812 $605,180 $623,088 $641,554 $649,396 $637,471 $657,099 $677,327 $699,205
$288,600 $254,539 $203,635 $135,363 $49,183-$55,463-$167,951-$268,514-$388,696-$529,115-$690,412
Residential Average Sq. Ft. - 9527 sq ft = $40.72
Vacant land average Sq. Ft. - 22,947 = $99.09
Park land average Sq. Ft. - 57,449 = $245.59
Commercial average Sq. Ft. - 40,024 = $171.10
Residental capped at $375 17
Vacant capped at $375 94
Parkland capped at $375 6
Commerical capped at $750 49
$265,000 is the finance department estimated actual of expenditures for FY 16/17 Exisiting Caps based on. 00171 Residental - 16, Vacant Land - 94, Parkland - 6, Commercial - 49
Additional Funds [General Fund Reserves, Emergency Fund Contracted Cyclic Pruning to expedite backlog FY19 through FY 28
Fund goes into the red at the end of FY 23 FY 18 Arborist included FY 19 Arborist and Groundsmen included
Contracted Hazard Removals Starts FY 18 and continues through FY 19
Forestry History and Increases
Based on 3.4% Increase in Salaries and 2% Increase in OEM
Increase Annual Assessment with Existing Caps
Assessment at .0047025
FY 16/17
FY 16/17
FY 17/18
Budget
Estimated Actual
Proposed
Cash
$149,086 $149,086
$113,396
Additional Revenue
$200,0M
Assessments
$210,000
$210,000
$595,718
Misc Rev
$58,500
$19,310
$24,200
Inception Lease
$40,000
40
Parks & Recreation
FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28
$341,910 $361,159$363,565 $348,603 $315,733 $264,397 $205,219L $157,966
$200,000
$585,718 $585,718. $585,718 $585,718 $585,718 $5,95,718 $585,718. $595,718
$4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500
TOTAL AVAI L I $417,586 $378,396 ' $963,314 $1,132,128 $951,377 $953,783 $938,821 $905,951 $854,615 $795,437 $748,194
Budget
Salaries $167,929 $167,929 $175,888
2 FTE's $71,181
O&M $113,669 $113,669 $119,335
Contracted services hazards $200,000
Cyclic contracted pruning small trees
Cyclic contracted pruning large trees
chipper $0 $55,000
$191,868 $188,052 $194,445 $201,057 $207,893 $214,961 $222,270 $229,827
$134,619 $139,196 $143,929 $148,922 $153,882 $159,114 $164,524 $170,118
$121,722 $125,373 $129,135 $133,009 $136,999 $141,109 $145,342 $149,702
$200,000 1-
$28,025 $28,596 $29,157 $29,740 $30,335 $30,942
$93,535 $95,405.70 $97,313.81 $99,260.09 $101,245.29 $103,270.20 $105,335.60 $107,442.31
$11,200 $11,200 $11,200 $11,200 $11,200
TOTALEXPEND $291,599 $265,000 $621,404 $770,969 $587,812 $605,180 $623,088 $641,554 $649,396 $637,471 $657,089
Ending Cash $135,988
$113,396 $341,910 $361,159 $363,565 $348,603
$315,733 $264,397 $205,219 $157,966
$91,094
7,721 parcels
Residential Average Sq. Ft. - 9527 sq ft = $44.80
esidental capped at $413
Aacant
16
930 parcels
Vacant land average Sq. Ft. - 22,947 = $107.90
capped at $413
94
15 parcels
Park land average Sq. Ft. - 57,449 = $270.15
Parkland capped at $413
6
1038 parcels
Commercial average Sq. Ft. - 40,024 = $188.21
Commerical capped at $825
49
$265,000 is the finance department estimated actual of expenditures for FY 16/17
Additional Funds (General Fund Reserves, Emergency Funds)
Fund goes into the red at the end of FY 28
11
A
$91,094 $3,985
$595,718 $585,718
$4,500 $4,500
$681,312 $594,203
$237,641 $245,721
$175,902 $181,883
$154,193 $158,819
$109,591.16 $111,782.98
$677,327� $698,205
$3,985 'W104,002
Exisiting Caps based on .00171 Residental - 16, Vacant Land - 94, Parkland - 6, Commercial - 49
Contracted Cyclic Pruning to expedite backlog FY19 through FY 28
FY 18 Arborist included FY 19 Arborist and Groundsmen included
Contracted Hazard Removals Starts FY 18 and continues through FY 19
■
;I10F4-1;FRA
TO: Mayor Johnson and City Council
FROM: Doug Russell, City Manager TIC
SUBJECT: Urban Forest Assessment
MEETING DATE: June 26, 2017
City of Kalispell
201 1" Ave E. P.O. Box 1997
Kalispell, Montana 59903-1997
(406) 758-7757 Fax (406) 758-7758
BACKGROUND: At past workshops, council has been reviewing the forestry budget, program,
and proposed assessment increases. At this work session, we will present to Council potential
funding options (assessment increases, cap removals, raising caps, contracted services), review
various levels of service and methods of addressing deferred maintenance.
ATTACHMENTS: PowerPoint Presentation
Forestry Assessment
Based on input from Council at our last Urban Forestry workshop, tonig
we have prepared several new scenarios.
Forestry History and Increases I*
Based on 3.4% Increase in Salaries and 2% Increase in OEtM
Increase Annual Assessment with Existing Caps Parks & Recreation
Assessment at .00295
FY 16/17 FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28
Budget Estimated Actual Proposed
Cash $149,096 $149,086 $113,396 $93,277-$236,707-$585,546-$953,805-$1,342,066-$1,642,035-$1,949,846-$2,245,732-$2,561,236-$2,896,979
Assessments $210,000 $210,000 $337,085 $337,085 $337,085 $337,085 $337,085 $337,085 $337,085 $337,085 $337,085 $337,085 $337,035
Misc Rev $58,500 $19,310 $24,200 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500
Inception Lease $40,000
TOTAL AVAI L $417,586 $378,396 $514,681 $434,862 $104,878-$243,961-$612,220-$1,000,481-$1,300,450-$1,608,261-$1,904,147-$2,219,651-$2,555,394
Budget
Salaries $167,929 $167,929 $175,898 $181,968 $188,052 $194,445 $201,057 $207,893 $214,961 $222,270 $229,827 $237,641 $245,721
2 FTE's $71,181 $134,619 $139,196 $143,929 $148,822 $153,882 $159,114 $164,524 $170,118 $175,902 $181,883
O&M $113,669 $113,669 $119,335 $121,722 $125,373 $129,135 $133,009 $136,999 $141,109 $145,342 $149,702 $154,193 $158,819
Contracted services hazards $100,600 $102,612 $104,664 $106,758
Cyclic contracted pruning small trees $28,025 $28,586 $29,157 $29,740 $30,335 $30,942
Cyclic contracted pruning large trees $93,535 $95,405.70 $97,313.81 $99,260.09 $10,1,245.29 $103,270.20 $105,335.60 $107,442.31 $109,591.16 $111,782.98
chipper $0 $55,000 $11,200 $11,200 $11,200 $11,200 $11,200
TOTAL EXPEND $281,598 $265,000 $421,404 $671,569 $690,424 $709,844 $729,945 $641,554 $649,396 $637,471 $657,089 $677,327 $698,205
Ending Cash $135,999 $113,396 $93,277-$236,707-$585,546-$953,805-$1,342,066-$1,642,035-$1,949,846-$2,245,732-$2,561,236-$2,896,979-$3,253,599
Average Lot Size - 7,575 sq ft = .00295 $22.35 Residental capped at $150 24
Vacant capped at $150 127
Parkland capped at $150 9
$265,00D is the finance department estimated actual of expenditures for FY 16/17 Commerical capped at $300 95
FY 18 Arborist included FY 19 Arborist and Groundsmen included
Exisiting Caps based on .00171 Residental - 16, Vacant Land - 94, Parkland - 6, Commercial - 49
No Contracted Hazard Removals till FY 19 then 4 years
Contracted Cyclic Pruning to expedite backlog FY19 through FY 28
Fund goes into the red at the end of FY 19
Forestry History and Increases I*
Based on 3.4% Increase in Salaries and 2% Increase in OEtM
Increase Annual Assessment with Existing Caps with $200,000 additional Funding parks & Recreation
Assessment at .00295
FY 16/17
FY 16/17
FY 17/18
FY 18/19
FY 19/2D FY 20/21
FY 21/22
FY 22/23
FY 23/24
FY 24/25
FY 25/26
FY 26/27
FY 27/28
Budget
Estimated Actual
Proposed
Cash
$149,DB6
$149,086
$113,396
$293,277
$163,293
-$185,546
-$553,805
-$942,066
-$1,242,D35
-$1,549,846
-$1,845,732
-$2,161,236
-$2,496,979
Additional funds
$200,000
$200,000
_
Assessments
$210,000
$210,000
$337,085
$337,085
$337,DB5
$337,085
$337,085
$337,Q85
$337,DB5
$337,DB5
$337,D85
$337,085
$337,D85
Misc Rev
$58,500
$19,310
$24,200
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500
Inception Lease
$40,000
_
TOTAL AVAI L
$417,586
$378,396 '
$714,691
$934,862
$504,878
$156,039
-$212,220
-$600,481
-$90Q,450
-$1,208,261
-$1,504,147
-$1,819,651
-$2,155,394
Budget
Salaries
$167,929
$167,929
$175,898
$181,868
$188;052
$194,445
$201,057
$207,893
$214,961
$222,270
$229,827
$237,641
$245,721
2 FTE's
$71,181
$134,619
$139,196
$143,929
$148,822
$153,882
$159,114
$164,524
$170,118
$175,902
$181,883
O&M $113,669
$113,669 $119,335 $121,722
$125,373
$129,135
$133,009
$136,999
$141,1D9 $145,342 $149,7D2 $154,193 $158,819
Contracted services hazards
$100,6D0
$102,612
_
$104,664
$106,758
Cyclic contracted pruning small trees
$28,D25
$28,596
_
$29,157
$29,740
$3Q,335
$30,942
Cyclic contracted pruning large trees
$93,535
$95,4D5.70
$97,313.81
$99,260.09
$101,245.29
$103,270.20 $105,335.60 $107,442.31 $109,591.16 $111,782.98
chipper
$0 $55,DDD $11,2DQ
$11,2DQ
$11,2DQ
$11,200
$11,2DQ
TOTAL EXPEND $281,599
$265,DDD $421,4D4 $671,569
$690,424
$709,844
$729,845
$641,554
$649,396 $637,471 $657,D89 $677,327 $699,205
Ending Cash $135,999 $113,396 $293,277 $163,293-$185,546-$553,8D5-$942,066-$1,242,035-$1,549,846-$1,845,732-$2,161,236-$2,496,979-$2,853,599
Average Lot Size - 7,575 sq ft = $22.35 Residental capped at $15D 24
Vacant capped at $150 127
Parkland capped at $150 9
$265,000 is the finance department estimated actual of expenditures for FY 16/17 Commerical capped at $300 95
FY 18 Arborist included FY 19 Arborist and Groundsmen included
Exisiting Caps based on .00171 Residental - 16, Vacant Land - 94, Parkland - 6, Commercial - 49
No Contracted Hazard Removals till FY 19 through FY 22
Additional Funds (general Fund Reserves, Emergency Funds)
Contracted Cyclic Pruning to expedite backlog FY19 through FY 28
Fund goes into the red at the end of FY 20
Forestry History and Increases I*
Based on 3.4% Increase in Salaries and 2% Increase in OEtM
Increase Annual Assessment with Existing Caps
Assessment at .0
06327
Parks � Recreation
FY 16/17 FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28
Budget Estimated Actual Proposed
Cash $149,086 $149,086 $113,396 $192,766 $62,871 $116,133 $152,027 $170,013 $169,533 $161,211 $164,814 $148,798 $112,545
Assessments $210,DDD $210,DDD $636,574 $636,574l $636,574' $636,574 $636,574 $636,574 $636,574 $636,57 $636,574 $636,574 $636,574
Misc Rev $58,500 $19,310 $24,200 $4,500 _ $4,500 _ $4,500 $4,500 $4,500 $4,500 $4,500 _ $4,500 $4,500 $4,500
Inception Lease $40,000
TOTAL AVAI L $417,586 $378,396 $814,170 $833,940 $703,945 $757,2D7 $793,101 $811,087 $810,607 $802,285 $905,888 $789,872 $753,619
Budget
Salaries $167,929 $167,929 $175,888 $131,868 $138,052 _ $194,445 $201,057 $207,893 $214,961 $222,270 $229,827 $237,641 $245,721
2 FTE's $71,181 $134,619 $139,196 $143,929 $148,822 $153,882 $159,114 $164,524 $170,118 $175,902 $181,883
O&M $113,669 $113,669 $119,335 $121,722 $125,373 $129,135 $133,009 $136,999 $141,1D9 $145,342 $149,702 $154,193 $158,819
Contracted services hazards $200,000 $200,ODD
Cyclic contracted pruning small trees $28,025 $28,586 $29,157 $29,740 $30,335 $30,942
Cyclic contracted pruning large trees $93,535 $95,405.70 $97,313.81 $99,260.09 $101,245.29 $103,270.20 $105,335.60 $107,442.31 $109,591.16 $111,782.98
chipper $D $55,000 $11,200 $11,200 $11,2DD $11,200 $11,2DD
TOTAL EXPEND $281,598 $265,DDD $621,404 $770,969 $587,812 $605,180 $623,088 $641,554 $649,396 $637,471 $657,089 $677,327 $698,205
Ending Cash $135,988 $113,396 $192,766 $62,871 $116,133 $152,027 $17D,013 $169,533 $161,211 $164,814 $148,798 $112,545 $55,414
Average Lot Size - 7,575 sq ft = $47.92
$265,DDD is the finance department estimated actual of expenditures for FY 16/17
FY 18 Arborist included FY 19 Arborist and Groundsmen included
Exisiting Caps based on. 00171 Residental - 16, Vacant Land - 94, Parkland - 6, Commercial - 49
Contracted Hazard Removals Starts FY 18 and continues through FY 19
Contracted Cyclic Pruning to expedite backlog FY19 through FY 28
Fund goes into the red at the end of FY 29
Residental capped at $15D 122
Vacant capped at $150 208
Parkland capped at $150 12
Commerical capped at $300 196
Forestry History and Increases
Based on 3.4% Increase in Salaries and 2% Increase in OEtM
Increase Annual Assessment with Existing Caps with $200,000 additional Funding
Assessment at .005814
Cash
Additional Reven
Assessments
Misc Rev
Inception Lease
TOTAL AVAI L
FY 16/17
FY 16/17
FY 17/18
FY 18/19
budget
Estimated Actual
Proposed
$149,086
$149,086
$113,396
$349,690
M
'M r $200,000
$200,000
$210,000
$210,000
$593,498
$593,498
_ $58,500
$19,310
$24,200
$4,500
$40,000
$417,586
$378,396'
$971,094
$1,147,688
Budget
Salaries $167,929 $167,929
2 FTE's
O&M $113,669 $113,669
Contracted services hazards
Cyclic contracted pruning small trees
Cyclic contracted pruning large trees
chipper $0
TOTAL EXPEND $281,598 $265,000
Ending Cash $135,999 $113,396
Parks & Recreation
FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28
$376,719 $386,905 $379,723 $354,633 $311,077 $259,679 $220,206 $161,114 $81,785
$593,498. $593,498 $593,498 $593,498 $593,498 $593,498 $593,498 JL_ $593,498 $593,498
$4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500
$974,717 $984,903 $977,721 $952,631 $909,075 $857,677 $918,204 $759,112 $679,783
$175,888
$181,868
$188,052
$194,445
$201,057
$207,893
$214,961
$222,270
$229,827
$237,641
$245,721
$71,181
$134,619
$139,196
$143,929
$148,822
$153,882
$159,114
$164,524
$170,118
$175,902
$181,883
$119,335
$121,722
$125,373
$129,135
$133,009
$136,999
$141,109
$145,342
$149,702
$154,193
$158,819
$200,000
$200,000
$28,025
$28,586
$29,157
$29,740
$30,335
$30,942
$93,535
$95,405.70
$97,313.81
$99,260.09
$101,245.29
$103,270.20
$105,335.60
$107,442.31L$109,591.16
$111,782.98
$55,000
$11,200
$11,200
$11,200
$11,200
$11,200
$621,404
$770,969
$597,912
$605,180
$623,088
$641,554
$649,396
$637,471
$657,089
$677,327
$698,205
$349,690
$376,719
$386,905
$379,723
$354,633
$311,077
$259,679
$220,206
$161,114
$81,785
-$18,422
Average Lot Size
- 7,575 sq
ft = $44.04
Residental capped
at $150
100
$265,000 is the finance department estimated actual of expenditures for FY 16/17
FY 18 Arhorist included FY 19 Arborist and Groundsmen included
Exisiting Caps based on. OD171 Residental - 16, Vacant Land - 94, Parkland - 6, Commercial - 49
Contracted Hazard Removals Starts FY 18 and continues through FY 19
Contracted Cyclic Pruning to expedite backlog FY19 through FY 28
FY 18/19 2 FTE's arborist and groundsperson
Fund goes into the red at the end of FY 28
Additional Funds (General Fund Reserves, Emergency Funds) '
Vacant capped at $150 202
Parkland capped at $150 11
Commerical capped at $300 181
Cash
Raise Caps
Assessments
Misc Rev
Inception Lease
TOTAL AVAI L
Forestry History and Increases
Based on 3.4% Increase in Salaries and 2% Increase in OEtM
Increase Annual Assessment and Raise Caps
Assessment at .00295
FY 16/17
FY 16/17
FY 17/18
FY 18/19
FY 19/20
FY 20/21
FY 21/22
FY 22/23
Budget
Estimated Actual
Proposed
$149,086
$149,086
$113,396
$185,861
$49,061
$95,418
$124,407
$135,488
$292,584
$292,594
$292,584
$292,584
$292,584
$292,594
$210,000
$210,D00
$337,085
$337,D85
$337,085
$337,085
$337,085
$337,085
$58,500
$19,310
$24,200
$4,500
$4,500
$4,500
$4,500
$4,500
r
$40,000
7'ln%,,,_Parks & Recreation
FY 23/24 FY 24/25 FY 25/26 FY 26/27 FY 27/28
$128,102
$112,875
$1D9,573
$86,652
$43,494
$292,594
$292,594
$292,584
$292,594
$292,584
$337,D85
$337,DB5
$337,085
$337,D85
$337,DB5
$4,500
$4,500
$4,500
$4,500
$4,500
$417,586 $378,396 $807,265 $820,030 $683,23D $729,586 $758,576 $769,657 $762,271 $747,044 $743,742 $720,821 $677,663
Budget
Salaries $167,929 $167,929
$175,888
$181,868
$198,052
$194,445
$201,057
$207,893
$214,961 $222,270
$229,827
$237,641
$245,721
2 FTE's
$71,181
$134,619
$139,196
$143,929
$148,822
$153,882
$159,114 $164,524
$170,118
$175,902
$181,883
O&M $113,669 $113,669
$119,335
$121,722
$125,373
$129,135
$133,009
$136,999
$141,109 $145,342
$149,702
$154,193
$158,819
Contracted services hazards
$200,000
$20D,DDD
Cyclic contracted pruning small trees
$28,D25
$28,586
$29,157
$29,740
$30,335
$3D,942
Cyclic contracted pruning large trees
$93,535
$95,445.7D
$97,313.81
$99,260.09
$101,245.29
$103,27D.20 $105,335.60 $107,442.31
$1D9,591.16
$111,782.98
chipper $0
$55,000
$11,200
$11,20D
$11,200
$11,200
$11,20D
TOTAL EXPEND $281,598 $265,DDD
$621,404
$770,969
$597,812
$6D5,180
$623,088
$641,554
$649,396 $637,471
$657,089
$677,327
$698,205
Ending Cash $135,988 $113,396
$185,861
$49,061
$95,418
$124,407
$135,488
$128,102
$112,875 $109,573
$86,652
$43,494
-$20,543
Average
Lot Size
- 7,575 sq ft
= $22.35
No Residental caps
Vacant capped at $7000
16
Parkland capped at $7000
0
$265,000 is the finance department estimated actual of expenditures for FY
16/17
No Commerical caps
FY 18 Arborist included FY 19 Arborist and Groundsmen included
M
Exisiting Caps based on. OD171 Residental - 16, Vacant Land -
94, Parkland
- 6, Commercial
- 49
Contracted Hazard Removals Starts FY 18 and continues through FY 19
Contracted Cyclic Pruning to expedite backlog FY19 through FY 28
FY 18/19 2 FTIE's arborist and groundsperson
Fund goes into the red at the end of FY 28
Caps raised or removed
Cash
Additional Funds
Raise Caps
Assessments
Misc Rev
Inception Lease
TOTAL AVAI L
Forestry History and Increases
Based on 3.4% Increase in Salaries and 2% Increase in OEtM
Increase Annual Assessment and Raise Caps
Assessment at .00295
FY 16/17 FY 16/17 FY 17/18 FY 19/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 FY 25/26
6u dget Estimated Actual
Proposed
$149,086 $149,086
$113,396
$354,889
$387,117
$402,502
$400,519
$380,629
$200,000
$200,OOO
$261,612
$261,612
$261,612
$261,612
$261,612
$261,612
$210,000 $210,000
$337,095
$337,085
$337,085
$337,085
$337,085
$337,085
$58,500 $19,310
$24,200
$4,500
$4,500
$4,500
$4,500
$4,500
$40,00G
;s & Recreation
FY 26/27 FY 27/28
$342,272
$296,073
$261,798
$207,906
$133,776
$261,612
$261,612
$261,612
$261,612
$261,612
$337,085
$337,085
$337,035
$337,085
$337,085
$4,500
$4,500
54,500
$4,500
$4,500
$417,586 $378,396 ' $976,293 $1,158,086 $990,314 $1,005,699 $1,003,716 $983,826 $945,469 $899,270 $864,995 $811,103 $736,973
Budget
Salaries $167,929 $167,929 $175,888 $181,868 $188,052 $194,445 $201,057 $207,893 $214,961 $222,270 $229,827 $237,641 $245,721
2 FTE's $71,191 $134,619 $139,196 $143,929 $148,822 $153,992 $159,114 $164,524 $170,118 $175,902 $191,883
O&M $113,669
$113,669 $119,335 $121,722
$125,373
$129,135
$133,009
$136,999 $141,109 $145,342 $149,702 $154,193 $158,819
Contracted services hazards
$200,000 $200,000
Cyclic contracted pruning small trees
$28,025
$28,586
$29,157
$29,740
$30,335 $30,942
Cyclic contracted pruning large trees
$93,535
$95,405.70
$97,313.81
$99,260.09
$101,245.29 $103,270.20 $105,335.60 $107,442.31 $109,591.16 $111,782.98
chipper
$0 $55,OOO $11,200
$11,200
$11,200
$11,200
$11,200
TOTAL EXPEND $281,598 $265,000 $621,404 $770,969 $587,812 $605,180 $623,088 $641,554 $649,396 $637,471 $657,089 $677,327 $698,205
Ending Cash $135,988 $113,396 $354,889 $387,117 $402,502 $400,519 $380,629 $342,272 $296,073 $261,798 $207,906 $133,776 $39,767
Average Lot Size - 7,575 sq ft = $22.35 No Residental caps
Vacant capped at $5200 19
Parkland capped at $5200
$265,000 is the finance department estimated actual of expenditures for FY 16/17 No Commerical caps
FY 18 Arborist included FY 19 Arborist and Groundsmen included
Exisiting Caps based on .00171 Residental - 16, Vacant Land - 94, Parkland - 6, Commercial - 49
Contracted Hazard Removals Starts FY 18 and continues through FY 19
Contracted Cyclic Pruning to expedite backlog FY19 through FY 28
FY 18/19 2 FTE's arborist and graundsperson
Fund goes into the red at the end of FY 29
Caps raised or removed
Additional Funds (General Fund Reserves, Emergency Funds)
Forestry History and Increases
Based on 3.4% Increase in Salaries and 2% Increase in OEtM
Increase Annual Assessment and Raise Caps
Assessment at .00295
Assessment at .00513 Parks Recreation
IF
FY 16/17 FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 -FY 21/22 FY 22/23 FY 23/24 FY 24/25� FY 25/26 FY 26/27 FY 27/28
Budget Estimated Actual Proposed
Cash $149,086 $149,096 $113,396 $91,229-$140,203-$386,430-$650,D25-$931,528-$1,231,497-$1,539,308-$1,835,194-$2,150,699-$2,486,441
Assessments $210,000 $210,0002 $535,037 $535,D37 $337,085 $337,085 ' $337,D85 $337,085 $337,085 $337,D85 JL.. $337,085 $337,085 ' $337,085
Misc Rev $58,500 $19,310 $24,200 $4,500 $4,500 $4,500 _ $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500
Inception Lease $40,000
TOTAL AVAI L $417,596 $378,396 $712,633 $630,766 $201,382-$44,845-$308,440-$589,943-$889,912-$1,197,723-$1,493,6D9-$1,809,114-$2,144,856
Budget
Salaries $167,929 $167,929 $175,888 $181,868 $188,052 $194,445 $201,D57 $207,893 $214,961 $222,270 $229,827 $237,641 $245,721
2 FTE's $71,181 $134,619 $139,196 $143,929 $148,822 $153,882 $159,114 $164,524 $170,118 $175,902 $181,883
O&M $113,669 $113,669 $119,335 $121,722 $125,373 $129,135 $133,009 $136,999 $141,109 $145,342 $149,7D2 $154,193 $158,819
Contracted services hazards $200,000 $200,D00 _
Cyclic contracted pruning small trees $28,025 $28,586 $29,157 $29,740 $30,335 $30,942
Cyclic contracted pruning large trees $93,535 $95,4D5.70 $97,313.81 $99,260.09 $1D1,245.29 $103,270.20 $105,335.601 $107,442.31 $109,591.16 $111,782.98
chipper $0 $55,000 $11,200 $11,200 $11,200 $11,200 $11,200
TOTAL EXPEND $291,598 $265,DDD $621,4D4 $770,969 $587,912 $605,180 $623,088 $641,554 $649,396 $637,471 $657,089 $677,327 $698,205
Ending Cash $135,988 $113,396 $91,229-$140,203-$386,430 -$650,025-$931,528-$1,231,497-$1,539,308-$1,835,194-$2,150,699-$2,486,441-$2,843,061
Average Lot Size - 7,575 sq ft = $38.86 for 2 years Residental capped at $150 80
Average Lot Size - 7,575 sq ft = $22.35 Vacant capped at $150 189
Parkland capped at $150 11
Commerical capped at $300 168
$265,00D is the finance department estimated actual of expenditures for FY 16/17
FY 18 Arborist included FY 19 Arborist and Groundsmen included
Exisiting Caps based on .00171 Residental - 16, Vacant Land - 94, Parkland - 6, Commercial - 49
Contracted Hazard Removals Starts FY 18 and continues through FY 19
Contracted Cyclic Pruning to expedite backlog FY19 through FY 28
FY 18/19 2 F FE's arborist and groundsperson
Fund goes into the red at the end of FY 19
Forestry History and Increases
Based on 3.4% Increase in Salaries and 2% Increase in OEtM
Increase Annual Assessment and Raise Caps
Assessment at .00295 parks & Recreation
Assessment at .00513
FY 16/17
FY 16/17
FY 17/18
FY 1B/19
FY 19/20
FY 20/21
FY 21/22
FY 22/23
FY 23/24 FY 24/25
FY 25/26
FY 26/27
FY 27/28
Budget
Estimated Actual
Proposed
Cash
$149,086
$149,086
$113,396
$354,349
$386,037
$402,930
$402,455
$394,072
$347,223 $302o532
$269,766
$217,381
$144,759
Raise Caps
$263,120
$263,120
$263,120
$263,120
$263,120
$263,12a
$263,120 $263,120
$263,12a
$263,120
$263,120
Assessments
$210,000
$210,000
$535,037
$535,037
$337,085
$337,085
$337,085
$337,085
$337,085 $337,085
$337,085
$337,085
$337,085
Misc Rev
$58,500
$19,310
$24,200
$4,500
$4,500
$4,500
$4,500
$4,500
$4,500 $4,500
$4,500
$4,500
$4,500
Inception Lease
$40,000
TOTAL AVAI L
$417,586
$378,396 '
$975,753
$1,157,006
$990,742
$1,007,635
$1,007,160
$988,777
$951,928 $907,237
$874,471
$822,086
$749,464
Budget
Salaries
$167,929
$167,929
$175,888
$181,868
$188,052
$194,445
$201,057
$207,893
$2.14,961 $222,270
$229,827
$237,641
$245,721
2 FTE's
$71,181
$134,619
$139,196
$143,929
$148,822
$153,882
$159,114 $164,524
$170,118
$175,902
$181,883
O&M
$113,669
$113,669
$119,335
$121,722
$125,373
$129,135
$133,009
$136,999
$141,109 $145,342
$149,702
$154,193
$158,819
Contracted services hazards
$200,000
$200,000
Cyclic contracted pruning small trees
$28,025
$28,586
$29,157
$29,740
$30,335
$30,942
Cyclic contracted pruning large
trees
$93,535
$95,405.70
$97,313.81
$99,260.09
$101,245.29
$103,270.20 $105,335.60
$107,442.31
$109,591.16
$111,782.98
chipper
$0
$55,000
$11,200
$11,200
$11,200
$11,200
$11,200
TOTAL EXPEND
$281,598
$265,000
$621,404
$770,969
$587,812
$605,180
$623,088
$641,554
$649,396 $637,471
$657,089
$677,327
$698,205
Ending Cash
$135,988
$113,396
$354,349
$386,037
$402,930
$402,455
$384,072
$347,223
$302,532 $269,766
$217,381
$144,759
$51,259
Average Lot Size - 7,575 sq ft
= $38.86 for
2 years
No Residental caps
Average Lot Size - 7,575 sq ft
= $22.35
Vacant capped at $1850
55
Parkland capped at $1850
1
No Commerical caps
$265,000 is the finance department estimated actual of expenditures for FY 16/17
FY 18 Arborist included FY 19 Arborist and Groundsmen included
Exisiting Caps based on. 00171 Residental - 16, Vacant Land - 94, Parkland - 6, Commercial - 49
Contracted Hazard Removals Starts FY 18 and continues through FY 19
Contracted Cyclic Pruning to expedite backlog FY19 through FY 28
FY 18/19 2 FTE's arborist and groundsperson
Assesment would be higher FY18 & 19 and drop down FY20
Raise Existing Caps
Fund goes into the red at the end of FY 29
crTYOF �� City of Kalispell
Post Office Box 1997 - Kalispell, Montana. 59903
S P. E�L� Telephone: (406) 758-7701 Fax: (406) 758-7758
OONTANA
MEMORANDUM
To: Mayor Johnson and City Council
From: Doug Russell, City Manager
Re: National Forest Service, Request for Joint Sale
Meeting Date: July 10, 2017
BACKGROUND: During the budget meetings in May, we briefly discussed a request by the
Forest Service to consider a joint sale of Forest Service Property that contains a reversionary
clause in the deed. Council had previously considered acquisition of the building, located
adjacent to the airport and Water Treatment Plant, as part of the Forest Service's interest in
disposing of their surplus property. However, differences in deferred maintenance estimates and
the impact on the appraised value led to the city declining the offer to purchase the facility at the
appraised value. The memo from the agenda item related to the deferred maintenance costs is
attached.
The Forest Service, as initially discussed during budget meetings, has requested that we consider
jointly selling the building and land through a cooperative effort to dispose of the building and
property and account for the reversionary clause located on the property deed. Attached to this
memo is a summary of the proposed sale in which the City would receive a proportionate share
of the sale proceeds (presumably commensurate with the value of the land), and would also
participate in the proportionate share of the estimated $26,000 in costs to conduct the sale. A
sample agreement from the Forest Service is also attached to this memo.
RECOMMENDATION: It is recommended that City Council review the request and provide
direction for our response to the Forest Service.
Attachments:
Summary of Proposed Sale
Draft Collection Agreement
Memo from 2-13-17
5 May 2017
Proposed Joint Sale Forest Service and City of Kalispell
The Forest Service would like to work with the City of Kalispell to offer the property and shop
facilities as a competitive sale through a GSA on-line auction. The proposal is to share the new
costs associated with the facility sale and proceeds proportionally between the two parties.
Background: The land was sold to the U.S. Forest Service in 1956 for $828.00. The Forest
Service constructed an 8670 sq. ft. warehouse/shop and office. Through facility master
planning the facility is no longer needed.
Forest Service has completed most of the due diligence at their expense including:
• Forest facilities master plan; compliance review with Forest Plan; Civil rights analysis
• Water rights analysis, wildlife review; wetlands and floodplains review
• Land Status report and Land Description Verification
• Appraisal of shop only
• Initial Environmental Site Assessment, Lead Based Paint testing
If the facility were to be sold competitively the following actions/costs would remain:
• Updated Environmental Site Assessment per ASTM regulations by Environmental
Professional - $2,250.00
• Finalize Decision Memo - $250.00
• Minimum bid analysis to Federal appraisal standards $5,000.00
• Contract with GSA to complete Invitation for Bid and on-line competitive auction of the
site — (Requested bid proposal from GSA but have not received by Friday). Similar sites
in the Region have costed the Forest Service approximately $15,000.00.
• Advertising costs - $500.00
Total costs estimated to be $26,000.00
The City could pay its proportionate share of the costs at closing. If the sale was not successful,
the City would have to pay their proportionate share of the costs at the close of bidding through
regular city funds.
If the city was interested in this process FS would develop with the City a Collection Agreement
and Joint Sale Agreement. I have enclosed an example — which we would have to have our
Grants and Agreements section approve so could change, but not substantially. This is for
information purposes.
FS Agreement No.
City Tax ID No.
City Agreement No.
7/3/17
COLLECTION AGREEMENT
and JOINT SALE AGREEMENT
Between
USDA FOREST SERVICE, NORTHERN REGION
And
CITY OF KALISPELL
This COLLECTION AGREEMENT and JOINT SALE AGREEMENT is hereby entered
into by and between the USDA Forest Service, Northern Region, hereinafter referred to
as the Forest Service, and City of Kalispell, hereinafter referred to as the City under the
provisions of the Cooperative Funds Act of June 30, 1914 (16 USC 498, as amended by
P.L. 104-127), and the Forest Service Facility Realignment and Enhancement Act of
2005 (Title V., P.L. 109-54) (FSFREA), as amended_
A. PURPOSE:
The purpose of this Agreement is to document the understanding between the Forest
Service and the City regarding the sale of the Kalispell Shop Site, identified as
INSERT ADDRESS
The land was sold to the U.S. Forest Service in 1956 for $828.00. The Forest Service
converted the property from raw and to an administrative site. The largest
improvement was the construction of an 8670 sq. ft. warehouse/shop and office.
Through facility master planning the Forest Service has determined the facility is no
longer needed and the Forest Service now desires to sell this property under the
FSFREA.
The City is in agreement with the sale of the property with compensation for the
reversionary right. It was agreed that the City would contribute a proportionate share
towards the costs to prepare this property for sale.
A Forest Service minimum bid was completed to establish a ratio for site value to
total property value. The appraisal identifies the City's proportionate share as xx
percent and the Forest Service proportionate share as xx percent.
Once the City executes this Agreement and consents to assume its proportionate share
of the costs to prepare and market the property, the Forest Service will continue
processing the sale of this property. If successful in the sale of the property, the City
agrees to transfer/terminate its reversionary interest in the property and the Forest
Service will, at closing, pay the City their proportionate share of the proceeds, less the
proportionate costs incurred by the City to facilitate the sale.
Collection Agreement — FS/Kalispell
Page 1 of 5
FS Agreement No.
City Tax ID No.
City Agreement No.
B. THE FOREST SERVICE SHALL:
7/3/17
Undertake obtaining the following services and reports:
a. Administrative costs associated with sale preparation, advertising, sale
award, title, conveyance deed, and recording fees, which includes costs
associated with working with GSA;
b. Finalize Decision, and
c. Environmental site assessment.
2. Bill and collect from the City, XX percent (proportionate share) of the costs for
the services and reports identified above. If the sale is successful this billing will
occur at the time of closing. If the sale is not successful this billing will occur
after the bidding process is closed by GSA.
3. REIMBURSABLE BILLING. At closing, bill the City their proportionate share
of costs associated with the preparation and marketing of the property. If the sale
is not successful, bill the City their proportionate share of those same costs after
the bidding has closed. Overhead will not be assessed.
Billings shall be sent to:
City of Kalispell
ADDRESS
Kalispell, MT
4. Deposit all cash funds received under the terms of this Agreement to a Forest
Service Cooperative Work Fund to be used for the purpose for which contributed;
and upon successful sale of the property, disperse XX% of the proceeds to the
City at closing, less the proportionate costs incurred by the City to facilitate the
sale.
5. Forest Service Project Contact identified in D.7 below will be responsible for
notifying the Albuquerque Service Center Reimbursable and Advance Collections
(RACA) Branch when billing will need to be initiated based on outcome of
bidding and sale process
C. THE CITY SHALL:
1. Make payment to reimburse the Forest Service XX% of the costs identified below
for the City's determined proportionate share in performance of
a. a. Administrative costs associated with sale preparation, advertising, sale
award, title, conveyance deed, and recording fees, which includes costs
associated with working with GSA;
b. Finalize Decision, and
Collection Agreement — FS/Kalispell
Page 2 of 5
FS Agreement No.
City Tax ID No.
City Agreement No.
7/3/17
c. Environmental site assessment.
2. Upon successful sale of the described property, deposit into escrow a deed
transferring their revisionary right or a deed terminating the City's
revisionary right.
D. IT IS MUTUALLY AGREED AND UNDERSTOOD BY ALL PARTIES
THAT:
1. TAXPAYER IDENTIFICATION NUMBER. The City shall furnish their tax
identification number upon execution of this Agreement.
2. FREEDOM OF INFORMATION ACT (FOIA). Any information furnished to
the Forest Service under this Agreement is subject to the Freedom of Information
Act (5 USC 552).
MODIFICATION. Modifications within the scope of this Agreement shall be
made by mutual consent of the parties, by the issuance of a written modification,
signed and dated by all parties, prior to any changes being performed. The Forest
Service is not obligated to fund any changes not properly approved in advance.
4. LEGAL AUTHORITY. The City has the legal authority to enter into this
Agreement, and the institutional, managerial, and financial capability (including
funds sufficient to pay non -Federal share of project costs) to ensure proper
planning, management, and completion of the project.
5. PARTICIPATION IN SIMILAR ACTIVITIES. This Agreement in no way
restricts the Forest Service or the City from participating in similar activities with
other public or private agencies, organizations, and individuals.
6. TERMINATION. Any of the parties, in writing, may terminate this Agreement in
whole, or in part, at any time before the date of expiration.
No parties shall incur any new obligations for the terminated portion of this
Agreement after the effective date and shall cancel as many obligations as
possible. Full credit shall be allowed for each Party's expenses and all non -
cancelable obligations properly incurred up to the effective date of termination.
7. PRINCIPAL CONTACTS. The principal contacts for this Agreement are:
Forest Service Project Contact City Project Contact
USDA Forest Service
Collection Agreement — FS/Kalispell
Page 3 of 5
E-Mail:
Forest Service Administrative Contact
Phone:
FAX:
E-Mail:
FS Agreement No.
City Tax ID No.
City Agreement No.
Phone:
FAX:
E-Mail:
City Administrative Contact
Phone:
FAX:
E-Mail:
7/3/17
8. ENDORSEMENT. Any City contributions made under this Agreement do not by
direct reference or implication convey Forest Service endorsement of the City's
product or activities.
9. COMMENCEMENT/EXPIRATION DATE. This Agreement is executed as of the
date of last signature and is effective through December 31, 2011, at which time it
will expire unless extended.
10. AUTHORIZED REPRESENTATIVES. By signature below, the City certifies that
the individuals listed in this document as representatives of the City are authorized to
act in their respective areas for matters related to this Agreement.
11. BINDING AGREEMENT: This Agreement is legally binding on all parties, subject
to the terms and conditions here.
The PARTIES HERETO have executed this Agreement as of the date listed below.
USDA FOREST SERVICE
Northern Region
Joseph G. Alexander DATE
Director Recreation, Minerals
Lands, Heritage and Wilderness
City of Kalispell
MAYORS NAME
Mayor
DATE
Collection Agreement — FS/Kalispell
Page 4 of 5
FS Agreement No.
City Tax ID No.
City Agreement No.
7/3/17
The authority and format of this
Agreement has been reviewed and
approved for signature.
DATE
FS Agreements Coordinator
FOR FOREST SERVICE USE ONLY
Agreement #:
Spending Limit for FY17
Burden (overhead rate):
Job Code:
Billing Frequency (advance lump sum, monthly,
quarterly, semi-annual, annual):
Vendor ID (multiple partners?):
If Federal, Agency Location Code:
Program Manager and Phone #:
Termination Date:
Collection Agreement — FS/Kalispell
Page 5 of 5
City of Kalispell
Post Office Box 1997 - Kalispell, Montana.
59903
Telephone: (406) 758-7701 Fax: (406) 758-7758
MEMORANDUM
To: Mayor Johnson and City Council
From: Doug Russell, City Manager
Re: National Forest Service Building Appraisal
Meeting Date: February 13, 2017
BACKGROUND: During the budget process, Council appropriated funding for the potential
direct sale of Forest Service property to the City of Kalispell. The Forest Service has identified
property that it could dispose of to reduce its facilities' footprint. This site is located adjacent to
the City Airport and Wastewater Treatment Plant. As the Forest Service was investigating this
property, they identified a reversionary clause dictating that if the Forest Service decides that the
site is no longer needed by the United States, it would revert to the City for the initial
consideration paid, which was $828.00. This would apply to the 2.07 acres, but not the buildings
or other improvements.
Council made appropriations based on an appraisal of the building at a value of $219,855. The
appraisal however identified deferred maintenance (as identified in the table below) that reduced
the value of the building to approximately $103,000, which became the proposed purchase price.
Immediate Repairs:
Roof Replacement Cost
10140
X
$7.20
=
$73,008
Roof Sheeting Replacement
2535
X
$1.50
$3,803
Siding Replacement Cost
3800
X
$3.65
=
$13,870
Trim Covering
$2,500
Eves Replacement Linear ft.
436
X
$11.50
=
$5,014
Garage Doors 2 Insulated l0xl0
2
X
$2,310
=
$4,620
Garage Doors 4 Non -insulated
12x11
4
X
$1,580
$6,320
Garage Doors 2 Insulated 12x11
2
X
$35080
=
$6,160
Garage Door Opener
1
X
$560
=
$560
Replace Garage Door Head
1
X
$1,000
=
$1,000
Total Immediate Repairs
$116,855
During the inspection phase of the transaction, we had some questions related to the building's
structural integrity and brought in a third party engineer to provide inspection services and cost
estimates for repairs. The engineer's report (included with these materials) identified $238,750
in costs to make repairs to the structure. Hence the purchase and repair price totaled $121,895
more than originally estimated with the original appraisal numbers. We shared this information
with the Forest Service in that the repair costs were now more than the original appraisal price
for the building and that the appraisal did not account for the structural concerns identified in the
report. Indications from the Forest Service are that the original appraisal remains in effect
through March 31 and that they would like a response by February 28 from the City based on
those appraised numbers.
It is our recommendation to inform the Forest Service that we are still interested in reacquiring
the parcel through the reversionary clause in the deed, but not at the appraised amount as we
don't feel it adequately reflects the deferred maintenance and necessary improvements that
would be required for the building.
RECOMMENDATION: It is recommended that the City Council review the information and
provide direction for our response to the Forest Service.
Attachments: Structural Evaluation