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HomeMy WebLinkAbout02-27-17 City Commission Packet Materials - A1. Resolution 4762, Creation of SID 739 - East Olive ReconstructionCommission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Rick Hixson, City Engineer Kellen Gamradt, Engineer II SUBJECT: Public Hearing on Protests for Special Improvement District (SID) No. 739 and Adoption of Resolution 4762 - a resolution of the Bozeman City Commission to create SID No. 739 for the purpose of undertaking certain local improvements to East Olive Street between South Black and South Church Avenue, and South Church Avenue between East Babcock and East Olive Street and financing the costs thereof. AGENDA ITEM TYPE: Action MEETING DATE: February 27, 2017 RECOMMENDED MOTION: After hearing all protests, and finding them to be insufficient under law to bar further proceedings, I hereby move to adopt Resolution 4762 creating Special Improvement District No. 739 for the purpose of undertaking certain local improvements to East Olive Street between South Black and South Church Avenue, and South Church Avenue between East Babcock and East Olive Street and financing the costs thereof. BACKGROUND: At its January 23, 2017 meeting the City Commission adopted Resolution 4761, declaring it to be the intention of the City Commission to create Special Improvement District (SID) No. 739, for the purpose of undertaking certain local improvements to East Olive Street between South Black and South Church Avenue, and South Church Avenue between East Babcock and East Olive Street and financing the costs thereof. In accordance with Montana Code Annotated (MCA) Title 7-12 Part 41, notice of the passage of this Resolution was made on January 29, 2017 and February 5, 2017. This established the "Protest Period" as January 29, 2017 to February 13, 2017 at 5:00 PM. Pursuant to Section 7-12-4113, MCA, no further proceedings may be taken on creation of a Special Improvement District if the Commission finds protest has been made by the owners of property in the district to be assessed for more than 50% of the cost of the proposed work. Within the Protest Period, protests were filed with the City Clerk by the property owners of two parcels, representing 3.8% percent of the total costs of the improvements to be assessed against properties in the District, as proposed. FISCAL EFFECTS: The total estimated costs of the improvements are $933,000. The City has committed $793,050 from the Street Maintenance District fund to reduce the costs to the SID, 161 leaving $139,950 of the costs to be funded by the district. In addition, the district will be responsible for an estimated $1,000 in incidental costs related to the creation of the district for a total of $140,950. Based on the recommended method of assessment, that is, lot frontage, for a typical residential lot with 65 ft. of frontage, the total estimated assessment would be $3,111.44. These costs would be financed over 20 years. At the current estimated interest rate of 1.5%, a typical residence would be assessed approximately $180.65 annually, equivalent to $15.05/month. The City’s Special Improvement District (SID) Revolving Fund has cash in excess of the statutorily required amount (10% of our outstanding SID debt). This excess will be used to underwrite the SID costs; the Revolving Fund will loan the District the money, rather than have a bond sale. The City used this type of underwriting for the Story Street and Wallace SID, also. This has a number of benefits: 1. Lower interest rate for the District property owners, 2. Avoidance of the costs and time-consuming work of underwriting and bond sale, 3. Revolving Fund will be “paid back” as property owners make their payments over time, with interest. The City’s SID Revolving Fund has total cash of $2.9 million. State law requires the fund to have a balance of $112,070. Proceeding to underwrite this project, cash will immediately be decreased by $140,950. Beginning in November, annual assessments will be paid back into the fund. Over the life of the loan, the Revolving Fund will receive approximately $22,700 in interest earnings. These earnings can be used to underwrite other projects in the future – growing our ability to complete SID projects. UNRESOLVED ISSUES: None. ALTERNATIVES: As suggested by the City Commission. Attachments: Resolution 4762, Creation of SID 739 Letters of Protest Exhibit C 162 Page 1 of 5 COMMISSION RESOLUTION NO. 4762 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, RELATING TO SPECIAL IMPROVEMENT DISTRICT NO. 739; CREATING THE DISTRICT FOR THE PURPOSE OF UNDERTAKING CERTAIN LOCAL IMPROVEMENTS IN AND ABOUT EAST OLIVE STREET BETWEEN SOUTH BLACK AND SOUTH CHURCH AVENUE AND SOUTH CHURCH AVENUE BETWEEN EAST OLIVE AND EAST BABCOCK STREET, FINANCING THE COSTS THEREOF AND INCIDENTAL THERETO THROUGH A LOAN TO THE DISTRICT FROM THE CITY'S SPECIAL IMPROVEMENT REVOLVING FUND. WHEREAS, on the 23rd day of January, 2017, the City Commission (the "Commission") of the City of Bozeman, Montana (the "City") adopted Commission Resolution No. 4761 (the "Resolution of Intention"), stating its intent to create Special Improvement District No. 739 (the "District") to finance the costs of various improvements within the District as described therein (the "Improvements"); and WHEREAS, as set forth in the Resolution of Intention, the Commission committed other revenue sources from street reconstruction fees to the costs of the project; and WHEREAS, on January 29th and February 5th, 2017, the City Clerk did publish a Notice of Passage of the Resolution of Intent to Create SID No. 739 in accordance with Sect. 7-12-4106, MCA, and mailed said notice to each person, firm, or corporation or the agent of the person, firm or corporation having real property within the proposed District; and 163 Resolution 4762, Creation of SID 739 - 2017 Street Reconstruction of East Olive and Portions of Church Page 2 of 5 WHEREAS, the Bozeman City Commission conducted a public hearing on protests submitted to the creation of the District on February 27, 2017 and did pass on all such protests having found the written protests not sufficient to bar the Commission from proceeding with creation of the District. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, as follows: Section 1 Passage of Resolution of Intention. This Commission, on January 23, 2017, adopted the Resolution of Intention, pursuant to which this Commission declared its intention to create the District, under Montana Code Annotated, Title 7, Chapter 12, Parts 41 and 42, as amended, for the purpose of financing costs of certain local improvements within the District described generally therein (the "Improvements"), and paying costs incidental thereto, including costs associated with the creation and administration of the District, and the funding of a Loan from the City's Special Improvement District Revolving Fund (the "Loan"). Section 2 Notice of Passage of the Resolution of Intent and Public Hearing on Protests. Notice of passage of the Resolution of Intention was duly published and mailed in all respects in accordance with law, and on February 27, 2017, this Commission conducted a public hearing on written protests submitted by property owners against the creation of the District and the making of the Improvements. The public hearing occurred on the date of the first regular meeting of the Commission following the expiration of the period ended 15 days after the first date of publication of the notice of passage of the Resolution of Intention (the ''Protest Period"). Section 3 164 Resolution 4762, Creation of SID 739 - 2017 Street Reconstruction of East Olive and Portions of Church Page 3 of 5 Protests. Within the Protest Period, protests were filed with the City Clerk by the property owners of two parcels, representing 3.8% percent of the total costs of the Improvements to be assessed against properties in the District, as proposed. Section 4 Creation of the District; Insufficiency of Protests. The Commission determines the District is hereby created on the terms and conditions set forth herein and otherwise in accordance with the Resolution of Intention, as modified hereby. The protests against the creation of the District or the making of the Improvements filed during the Protest Period are hereby found to be insufficient. The findings and determinations made in the Resolution of Intention, including, without limitation, those relating to benefits conferred, costs associated with the borrowing of funds from the City's special improvement district revolving fund, and for the creation and administration of the District, are hereby ratified and confirmed. Section 5 Reimbursement Expenditures. 5.01. Declaration of Intent. The City reasonably expects to reimburse the expenditures made for costs of the Improvements out of the proceeds of the Loan from the City's special improvement district revolving loan fund in an estimated maximum aggregate principal amount of $140,950.00 after the date of payment of all or a portion of the costs of the Improvements. All reimbursed expenditures shall be capital expenditures, a cost of issuance of the Loan, or other expenditures eligible for reimbursement. The Commission intends to assess the District to reimburse the special improvement district revolving loan fund in an amount equal to the principal of the Loan of $140,950.00 to the District plus interest at approximately 1.5% annually. Over the 20- year term of the Loan from the revolving fund to the District, interest earnings of up to $22,722 are estimated to be paid from the District property owners and deposited to 165 Resolution 4762, Creation of SID 739 - 2017 Street Reconstruction of East Olive and Portions of Church Page 4 of 5 the special improvement district revolving fund. In addition to reimbursing the revolving fund on interest the revolving fund would otherwise earn, these interest earnings are intended to satisfy any revolving fund contribution from the district that may be required under 7-12-4222(l)(b), MCA. 5.02. Budgetary Matters. As of the date hereof, there are no City funds reserved, allocated on a long-term basis or otherwise set aside (or reasonably expected to be reserved, allocated on a long-term basis or otherwise set aside) to provide permanent financing for the expenditures related to the Improvements, other than pursuant to the Loan from the City's special improvement district revolving loan fund. The statement of intent contained in this resolution, therefore, is determined to be consistent with the City's budgetary and financial circumstances as they exist or are reasonably foreseeable on the date hereof. 5.03. Reimbursement Allocations. The City's financial officer shall be responsible for making the "reimbursement allocations" described in the Resolution of Intention being generally the transfer of the appropriate amount of proceeds of the Loan to reimburse the source of temporary financing used by the City to make prior payment of the costs of the Improvements. Each allocation shall be evidenced by an entry on the official books and records of the City maintained for the Loan or the Improvements and shall specifically identify the actual original expenditure being reimbursed. PASSED AND ADOPTED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 27th day of February, 2017. _________________________________ CARSON TAYLOR Mayor 166 Resolution 4762, Creation of SID 739 - 2017 Street Reconstruction of East Olive and Portions of Church Page 5 of 5 ATTEST: ________________________________________ ROBIN CROUGH City Clerk APPROVED AS TO FORM: _________________________________ GREG SULLIVAN City Attorney 167 168 169 EXHIBIT C East Olive Street SID ‐ Lot Frontage Assessment ADDRESS OWNER 1 OWNER 2 OWNER ADDRESS CITY STATE ZIP ASSESSABLE LOT FRONTAGE ‐ LF Total Assessment Amount PROTEST 120 S. Black Bozeman Apartments I LLC 201 Ocean Ave Unit 1503P Santa Monica, CA 90402‐1453 196.5 9406.11 121 E. Olive Daniel F Gerharter 121 E Olive St Bozeman, MT 59715‐4836 95.5 4571.42 202 S. Black Olive and Black LLC 20 N Tracy Ave Bozeman, MT 59715 160 7658.92 120 E. Olive Olive and Black LLC 20 N Tracy Ave Bozeman, MT 59715‐3555 40 $ 1,914.73 120 E. Olive Charles & Audrey Cromwell 120 E Olive St Bozeman, MT 59715‐4837 90 $ 4,308.14 205 E. Olive/120 S. Bozeman Mary Springer 3207 Augusta Dr Bozeman, MT 59715‐8792 143 $ 6,845.16 213 E. Olive Mark N Roberts Jr 213 E Olive St Bozeman, MT 59715‐4838 60 $ 2,872.10 219 E. Olive Irene Decker 219 E Olive St Bozeman, MT 59715 50 $ 2,393.41 223 E. Olive William Bucossi Sommer Roefaro 11 Winooski St Waterbury, VT 05676‐1813 50 $ 2,393.41 227 E. Olive Allan R Kirk Lisa M Bethell 227 E Olive St Bozeman, MT 59715‐4838 59 $ 2,824.23 202‐206 E. Olive Steven J Kuntz Elizabeth Allen 1627 W Main St #305 Bozeman, MT 59715‐4011 75 $ 3,590.12 210 E. Olive Christopher C & Sumana G Petaja 210 E Olive St Bozeman, MT 59715‐4839 65 $ 3,111.44 218 E. Olive Mark N Roberts Jr 213 E Olive St Bozeman, MT 59715‐4838 80 $ 3,829.46 201 Lindley Pl William H Neubauer Susan Sullivan 201 Lindley Pl Bozeman, MT 59715‐4832 60 $ 2,872.10 303 E. Olive Logan & Jamie Leachman 7210 Lorelei Dr Bozeman, MT 59715‐8925 62.5 $ 2,991.77 307 E. Olive Michael & Kathy Carey 4211 Graf St Bozeman, MT 59715‐0624 46.5 $ 2,225.87 123 S. Rouse David M Sigler Kristin Ann Hopkins 123 S Rouse Ave Bozeman, MT 59715‐4725 50 $ 2,393.41 202 Lindley Pl Jordan James & Alison Gwyn Udall 202 Lindley Pl Bozeman, MT 59715‐4833 211.28 $ 10,113.61 314 E. Olive St Conrad Anker Jennifer Lowe 401 W Curtiss St Bozeman, MT 59715‐4534 76.28 $ 3,651.39 403 E. Olive Deborah C Devoe 2737 Forest Ave Apt 301 Berkeley, CA 94705‐1360 78 $ 3,733.72 409 E. Olive Dana W Gleason 409 E Olive St Bozeman, MT 59715‐4842 60 $ 2,872.10 415 E. Olive Alan S Kesselheim Marypat Zitzer 415 E Olive St Bozeman, MT 59715‐4842 90 $ 4,308.14 406 E. Olive Olive Street LLC 1946 Stadium Dr Ste 3 Bozeman, MT 59715‐0696 115 $ 5,504.85 412 E. Olive Braeside Properties LLC 10 E Olive St Bozeman, MT 59715‐4722 140 $ 6,701.56 203 S. Church Renee Harris PO Box 5222 Bozeman, MT 59717‐5222 150 $ 7,180.24 421 E. Olive (119 S. Church) Dreyer Properties LLC 4750 Jordan Spur Rd Bozeman, MT 59715‐9328 125 $ 5,983.53 115 S. Church Morgan F Owen 115 S Church Ave Bozeman, MT 59715‐4719 50 $ 2,393.41 111 S. Church Deirdre P Quinn 111 S Church Ave Bozeman, MT 59715‐4719 50 $ 2,393.41 107 S. Church Sidney S Sing PO Box 1071 Lebanon, MO 65536‐1071 42.16 $ 2,018.13 101 S. Church/438 E Babcock S A Sorenson LLC Little Red Holdings LLC 506 Teton Ave Bozeman, MT 59718‐6245 77.82 $ 3,725.11 108 S. Church (506 E. Babcock) Matthew W Williams Larry Jent 506 E Babcock St Bozeman, MT 59715‐4714 96 $ 4,595.35 112 S. Church Herman J & Linda H Gonzales 112 S Church Ave Bozeman, MT 59715‐4720 60 $ 2,872.10 116 S. Church Susan Riggs 18 Hill St Bozeman, MT 59715‐6015 28 $ 1,340.31 118 S. Church Acacia LLC 1319 S Church Ave Bozeman, MT 59715‐5803 56 $ 2,680.62 PROTEST 122 S. Church Tembo LLC 1319 S Church Ave Bozeman, MT 59715‐5803 56 $ 2,680.62 PROTEST TOTALS 2944.54 $ 140,950.00 Total Assessment $ 140,950.00 Assessment / foot of frontage $ 47.87 Total Protest $ 5,361.24 Protest Percentage 3.8% 170