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HomeMy WebLinkAbout1983-12-23 spec 41U MINUTES OF THE SPECIAL MEETING OF THE CITY COMMISSION BOZEMAN, MONT ANA DECEMBER 23, 1983 *********************** The Commission of the City of Bozeman met in special session in the Commission Room, I Municipal Building, December 23, 1983, at 9:00 a.m. Present were Mayor Stiff, Commissioner Weaver, Commissioner Vant Hull, Commissioner Anderson, Commissioner Mathre, City Manager Evans, Assistant Manager Barrick and Clerk of the Commission Sullivan. The meeting was opened with the Pledge of Allegiance and a prayer by Commissioner Weaver. Signing of the Notice of the Special Meeting The Mayor requested that each of the Commissioners sign the Notice of Special Commission Meeting. Each Commissioner in turn signed the Notice. It was moved by Commissioner Mathre, seconded by Commissioner Anderson, that the Commission waive the Commissioners' salaries for this meeting as established in Ordinance No. 1137. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Mathre, Commissioner Anderson, Commissioner Vant Hull, Commissioner Weaver and Mayor Stiff; those voting No, none. Discussion of the reali nment of Hi hland Boulevard as proposed by the Bozeman Deaconess oundation City Manager Evans stated the Commission had called this special meeting for the pur- pose of discussing the proposal submitted by the Bozeman Deaconess Foundation for realignment of Highland Boulevard. The City Manager recommended that the Commission first discuss the need for realignment of Highland Boulevard and, if that need is determined, the process for I meeting the need should be discussed. He then stated the Commission should review the proposal submitted by the Hospital and then decide to either submit a counter proposal, accept the proposal as submitted, or reject the proposal. Commissioner Vant Hull noted there is no doubt the road is needed. The major question is how much the relocation of the road will cost, and how those costs will be apportioned. Commissioner Mathre stated another alternative would be to use the existing roadway. City Manager Evans stated the staff has unanimously agreed that using the existing roadway to the Hospital property would not be the best choice. He noted the network of streets currently runs through a residential area and is winding. He stated if development occurs on the Hospital .property, the traffic will increase dramatically. The City Manager stated this proposed development could provide for construction of a new arterial street that would be an asset to the community and would relieve some of the existing problems. Commissioner Anderson expressed concern about the formula submitted by the Hospital. She stated the City cannot absorb the costs proposed. She suggested that the existing street system be used until a specified portion of the Hospital has been completed. Mayor Stiff noted if the Hospital is constructed on the property east of the city, emer- gency vehicles must have access to that site. He noted the existing roadway requires a large amount of maintenance, and access is sometimes difficult during the winter. He then stated the City could face increased maintenance costs due to the Hospital relocation. Assistant City Manager Barrick then distributed copies of memos from himself, Director of Public Service (Works) Holmes and Director of Finance Swan. I Mayor Stiff asked when construction of Highland Boulevard is scheduled in the Federal Aid Urban program. Director of Public Service (Works) Holmes stated the Highland Boulevard project is scheduled in the category for 2000 and beyond. The Commission then reviewed the staff reports, beginning with the report submitted by the Director of Public Service. Commissioner Vant Hull asked if the proposed roadway construction would be satis- factory. Special Meeting 12-23-83 if 71 Director of Public Service (Works) Holmes stated the proposal would provide a 28-foot paved roadway with four-foot gravel shoulders, without curbs and gutters. He noted this construction would give vehicles six feet to pull away from the driving lane. He stated careful use of drainage patterns would provide a satisfactory roadway. Commissioner Weaver asked what impact the completion of Kagy Boulevard will have on I the north-south connector between Kagy Boulevard and Main Street. Mr. Holmes stated the impact would probably be greater if a new road were constructed than with the existing road system. Commissioner Vant Hull noted that concern has been previously expressed about the pos- sibility of two busy streets, Switzler Avenue and Haggerty Lane, entering Main Street at close intersections. She asked if the Highway Department will approve the proposal. The Director of Public Service (Works) stated the State of Montana Department of Highways has expressed approval of the proposed connection of Switzler Avenue and Main Street. He stated the Highway Department recognizes there could be problems in the future with the intersections being so close but indicated corrective measures can be considered when the problems arise. Mayor Stiff noted the Hospital proposal includes a stipulation that Thomas, Dean and Hoskins, Inc., be retained for the engineering on Highland Boulevard, but the Director of Public Service (Works) has recommended in his memo that the engineering services be on a bid basis. Commissioner Vant Hull noted the City will be losing two acres of cemetery and park land in the proposed realignment. She asked if the Hospital would replace that land so that the City will not jeopardize the future FAU funding. Commissioner Mathre noted the curb and gutter are not to be installed at this time. She asked if those will be installed with FAU funding when the road is widened from two lanes to four lanes. I Mr. Holmes stated his recommendation is that the FAU funds be used. Commissioner Vant Hull noted the City may incur costs which have not been mentioned in the memo, such as relocation of the lift station and the storm drain. She asked if those costs would be included in a Special Improvement District. The Director of Public Service (Works) stated those costs should be covered in the proposed SI D. Commissioner Mathre noted the proposed roadway would be 34 feet wide with curbs and gutters at its intersection with Main Street. She asked why there is a difference in the proposed construction at the intersection. Director of Public Service (Works) Holmes stated the proposed intersection would control traffic better. He noted the final design of the intersection will provide for turn bays. City Manager Evans stated the roadway would also service commercial properties which are located on the east side of the proposed realignment; and the increased width would provide access to those properties. Commissioner Vant Hull asked if a traffic light should be installed at the intersection at this time, rather than waiting until a need is determined. Mr. Holmes stated the Highway Department will not allow a traffic light to be installed until they determine it is necessary. Commissioner Vant Hull asked if the property owners along the southern end of the pro- posed realignment have been contacted. City Manager Evans presented to the Commission a map showing the lots and owners along I the southern end of the proposed roadway. He stated the property owners have not been con- tacted. . The City Manager then stated there are three legal methods for assessing the costs of Special Improvement Districts: (1) based on linear footage; (2) based on square footage of the area involved; or (3) a combination of linear and square footages. He then stated the method of assessment which is selected must be fair and supportable. City Manager Evans then stated he does not support the method proposed by the Hospital and feels it is illegal because the setbacks from the roadway improvement are arbitrary and differ among the various property owners. The City Manager then stated the Director of Public Service (Works) has estimated the Special Meeting 12-23-83 l T') t ..- linear footages; and the staff has prepared an estimated cost to the Hospital, the City and the group of private property owners. The City Manager then presented that information to the Commission. Commissioner Weaver noted the assessment to the City based on linear feet is sub- stantially lower than the assessment based on the Hospital's square footage proposal, and the assessment to the group of private property owners would remain about the same. City Manager Evans then stated the SID is only one method of financing construction of I the proposed roadway. He noted the SID provides a mechanism for financing the project over a period of years, rather than paying all of the costs immediately. He then stated the City does not have the money to cover the costs involved if the construction is not done through an extended payment program. Commissioner Anderson asked if open bidding for the engineering of the roadway could provide a more cost effective roadway. She stated she feels open bidding is necessary. The Director of Public Service (Works) stated that by seeking other proposals, the City may find a more cost effective, and possibly better designed, roadway. Commissioner Vant Hull asked about the Hospital's proposal to waive the escrow account, revolving fund and administration fees for the creation of an SI D. City Manager Evans stated that if the Hospital pays its portion of the 51 D assessment up front, the City would incur no administrative costs for that portion. Also, the City would then become the major property holder and, if administrative fees were imposed, it would be paying itself for those costs. The City Manager then stated if the Hospital does not pay its portion of the assessment up front, all fees should be imposed because the City will incur the costs involved in administering the 51 D. Commissioner Vant Hull asked if the City may be requested to share the cost of water and sewer extensions to the Foundation property. Director of Public Service (Works) Holmes stated the Hospital has indicated they will absorb all costs of the water and sewer extensions. Commissioner Mathre noted the City has received no commitment from the Bozeman Deaconess I Foundation that they will provide the two acres which the City will lose in the proposed re- alignment. She then asked if there is any other source from which the City could obtain the required acreage. The Director of Public Service (Works) stated there is not. He stated the need for a land trade has been discussed, but no action has been taken. Commissioner Anderson asked what provisions have been made for pedestrians and bicyclists along proposed Highland. She stated she feels it is important that a safe area be provided for them. Director of Public Service (Works) Holmes stated no provisions have been provided during the initial phase of construction. He noted pedestrians, joggers and bicyclists use the existing Highland Boulevard; and the proposed roadway would be wider. He then stated that when the four-lane roadway is constructed, a pathway can be provided for their safety. Mr. Holmes then stated money is not available at this time to provide a pathway. B rea k - 1 0 : 05 to 1 0 : 1 5 a. m . Mayor Stiff declared a break at 10:05 a.m., to reconvene at 10: 15 a.m., in accordance with Commission policy established at their regular meeting of March 14, 1983. Discussion (continued) of the reali nment of Hi hland Boulevard as the Bozeman eaconess oundation The Commissioners then reviewed the memo submitted by Assistant City Manager Don Barrick. I Commissioner Weaver noted that improvement of Kagy Boulevard from Willson Avenue to Highland Boulevard will be completed during the upcoming summer. He stated that could provide a major impact on Highland Boulevard. The Assistant City Manager stated if the realignment of Highland Boulevard is con- structed, it will provide a portion of the arterial loop that has been considered and discussed for over twenty years. Special Meeting 12-23-83 473 The Commissioners then reviewed the memo submitted by Director of Finance Swan. The Di rector of Finance suggested that the Commissioners consider the Hospital as they would any other developer. She stated the Commissioners must also consider the City's best interests at all times. She then stated her memo is based on the assumption that the Hospital will pay its portion of the SID assessment up front. I Commissioner Weaver stated he concurs that the Hospital should be considered as a developer. He noted, however, that the street under consideration is also a prioritized FAU arterial. The Commissioner then stated if the Hospital was constructed in the year 2000, in the proposed location, with the roadway being considered, the City would probably approach the Hospital to participate in the funding rather than using FAU funds to support the entire project. He noted the Hospital has offered to participate at this time. Commissioner Anderson asked how the Hospital derived the administrative fee for the Industrial Development Revenue bond issue, as submitted in their proposal. Director of Finance Swan stated that the administrative fee would be $85,000.00. She stated, however, that the Hospital used a figure in the proposal which would balance their portion of the proposed SID costs. Mr. Richard McConnen, member of the Technical Advisory Council, stated that T AC has discussed the proposal and submits the following three points for consideration: (1) Highland Boulevard as an arterial between Kagy Boulevard and Main Street has been discussed for a long time, and the Highland!Switzler realignment is included in the Transportation Plan; (2) the priorities established for use of FAU funds for extension of Oak Street and North Nineteenth Avenue should be maintained; and (3) financing of road improvements through use of gas tax monies. Mr. McConnen stated the proposed relocation of Highland Boulevard would be better for the residential neighborhood through which the traffic now travels. He stated the realignment of Highland Boulevard and Switzler Avenue is listed as a project to be completed between 1990 I and 2000, but that TAC has reviewed the proposal and recommends the realignment be completed at this time due to the relocation of the Hospital. Mr. McConnen then stated the Oak Street! North Nineteenth Avenue link has been listed as the No. 1 priority for FAU funds. He stated that T AC feels the Oak! Nineteenth link still remains the first priority; and that designation should not be jeopardized in any way. Mr. McConnen stated the design of roadways listed on the FAU priority list is begun in a cycle several years before the bids for construction are accepted. He stated to change priorities at this time would change the State Highway Department work schedule and could create a bottle- neck of work. He stated the change would also delay the use of FAU funds for road construc- tion in Bozeman. Mr. McConnen then stated the estimated revenues from a l-cent gas tax would be $225,000.00 per year, based on 1979 gas sales. He stated at that time, 73 percent of all gas sold in Gallatin County was sold in Bozeman. Mr. McConnen stated the revenues from such a tax could be used for street improvements and construction. He then stated that T AC does not feel the City can deal responsibly with present and future traffic problems if only FAU funds are used. Commissioner Weaver noted that, until the City uses the gas tax fund monies for enhance- ment of the roadways and the arterial system, it will be difficult to sell an additional gas tax to the voters. Mayor Stiff then suggested that the Commission review the total Hospital proposal. He stated under the proposal, the City would pay $33,000.00 per year for twenty years; and those I monies would either decrease the amount of money available for implementation of the Transporta- tion Plan or increase the taxes to the residents of the community. He noted the Hospital's figures indicate that 81.43 percent of its residents live in Gallatin County; and he estimated 25 to 30 percent are residents of Bozeman. The Mayor then expressed concern about having a small proportion of the people paying for a street that will benefit a large number of nonresidents. He also stated concern that the relocation of the Hospital is a fragmented process, and not a unified effort. Mr. McConnen stated that a review indicates medical communities are decl ining; and Special Meeting 12-23-83 ~47I+ hospitals are becoming regional hospitals rather than community hospitals. He then stated one must consider the economic benefits to the hospital and the community if a regional hospital is established here. Mr. McConnen also stated a split community is common in Montana when medical communities are being considered. Commissioner Weaver noted that when the estimated cost based on linear feet is con- sidered, the City would pay approximately 30 percent of the cost of installing a needed segment I of a prioritized arterial. Mr. McConnen once again stated an additional source of revenue must be found for imple- mentation of the Transportation Plan. He stated FAU monies cannot complete the projects listed in a timely manner. B rea k -. 11: 1 0 to 11: 1 5 a. m . Mayor Stiff declared a five-minute break at 11: lOa. m., to reconvene at 11: 15 a. m., in accordance with Commission policy established at their regular meeting of March 14, 1983. Discussion (continued) of the reali nment of Hi hland Boulevard as proposed b the Bozeman eaconess oundatlon Commissioner Weaver asked what up front monies could be used to offset the City's liability in construction of the proposed roadway. He noted the administrative fee for lOR bonds is earmarked for the Capital Improvement Program and suggested those monies might be used to pay a portion of the costs. The Commissioner then stated the realignment of Highland Boulevard would be beneficial to the residents of Bozeman, as well as to the Hospital. He a I so noted this project must be considered as a joint venture, and not as the City giving the Hospital anything. City Manager Evans stated the staff has prepared amortization schedules for an SI D based on the estimated costs for a linear footage assessment. He noted the City's assessment would be approximately $24,000.00 per year, depending upon the interest rate at which the I bonds are sold. He then stated the staff recommends that the realignment of Highland Boulevard be constructed to accommodate traffic from the Hospital and provide a link between Kagy Boule- vard and East Main Street. The City Manager then noted that traffic follows the path of least resistance; and if this proposed construction is not completed, it could create potential traffic problems. Mayor Stiff asked if additional operating costs have been considered in determining the cost to the City. Director of Public Service (Works) Holmes stated the staff does not foresee any appreci- able increase in street maintenance costs because the existing Highland Boulevard will be abandoned. He noted the new street should require less maintenance if designed properly. Mayor Stiff asked if the Police and Fire Divisions will face any problems because of the road realignment. City Manager Evans stated if the area around the new Hospital site is developed, it will increase the need for fire protection in that part of the community, but he does not feel the police activity will be increased. He stated if a new road is constructed, the fire access to the Hospital site and the residential development in that area would be enhanced. The City Manager then stated if the Commission feels the realignment of Highland Boulevard should be constructed, it should prepare a counter-proposal to be presented to the Bozeman Deaconess Foundation. Mayor Stiff stated he is not sure payment for the road improvement should be through a Special Improvement District. He noted the Bozeman Deaconess Foundation has over 400 acres that will be greatly enhanced by the construction of a new roadway. Also, the Commission would I not be considering impacts and implications to the community if the hospital relocation were not being considered. The Mayor then stated the Commission had considered waiving the administration fee for the I DR bond issue when it adopted the Resolution implementing those fees. Commissioner Vant Hull noted the City may face future costs due to development of the Foundation property. She suggested that the Foundation donate not only the two acres to offset the loss of parkland, but should donate fifty acres to cover the potential costs faced by the City. Special Meeting 12-23-83 4lb Commissioner Anderson asked if the land to be donated to the City by the Foundation should be contiguous. Director of Public Service (Works) Holmes stated it should be. He noted any land along the southern edge of the Foundation property that abuts City property could be considered for the donation. I Mayor Stiff asked if the City can choose not to participate in the allocation of costs for the Special Improvement District. He also asked if the private property owners and the Bozeman Deaconess Foundation would then be responsible for all of the costs involved. City Manager Evans stated the City has removed itself from SID's in the past. He then stated the City owns a large portion of the land within this proposed district, and if the City tries to remove itself from the assessment, the private property owners could challenge the Sf D. The Commission requested that this item be placed on the agenda for December 27, 1983 for further discussion. Adjournment - 11:50 a.m. There being no further business to come before the Commission at this time, it was moved by Commissioner Vant Hull, seconded by Commissioner Weaver, that the meeting be adjourned. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Vant Hull, Commissioner Weaver, Commissioner Mathre, Commissioner Anderson and Mayor Stiff; those voting No, none. ALFRED M. ST I FF, Mayor ATTEST: I Clerk of the Commission I Special Meeting 12-23-83