HomeMy WebLinkAbout10-09-17 City Commission Packet Materials - C5. MOA with MDT for N. 7th Streetscape Projects
Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: David Fine, Economic Development Specialist, Midtown Urban Renewal Board Staff Liaison Brit Fontenot, Economic Development Director
SUBJECT: Authorize the City Manager to Sign the City / State Memorandum of Agreement (MOA) for the N. 7th Avenue Corridor (N-118) Streetscape Projects and Maintenance, Bozeman, Montana MEETING DATE: October 9, 2017 AGENDA ITEM TYPE: Consent RECOMMENDATION: Authorize the City Manager to Sign City / State Memorandum of Agreement for the N. 7th Avenue Corridor (N-118) Streetscape Projects and Maintenance, Bozeman, Montana
BACKGROUND: The City of Bozeman and its tax increment finance district, the Midtown Urban Renewal District, have been working since the District’s inception to improve the streetscape of the N. 7th corridor by installing, setting back, and widening sidewalks, installing decorative streetlights, and generally enhancing the pedestrian experience. In 2013, the City extended a previous MOA with the Montana Department of Transportation (MDT), who controls the N. 7th right of way as a National Highway System (NHS) route, regarding the issuance of encroachment permits for these improvements. At the time, this MOA constituted mostly streetlights and simple sidewalk improvements in the existing right of way. For the next phase of project, the addition of new elements to the design such as pavers, street trees, and street furniture necessitated the revision of the original agreement. This new agreement establishes maintenance responsibilities for the City and MDT. The City, broadly, is accepting all maintenance responsibility for the lighting, streetscape and pedestrian facilities along the corridor. MDT, meanwhile, is
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retaining responsibility for the maintenance of car-oriented facilities. Attachment B delineates the maintenance responsibilities of the City. The responsibilities of MDT are delineated in Attachment C. MDT uses an encroachment permit process for allowing improvements of this kind on right-of-way they control. The permits are discretionary and revocable and MDT can compel the removal of improvements placed pursuant to an encroachment permit at any time, at the cost of the encroachment permit holder. These constraints are true of encroachment permits, regardless of whether the City enters into this MOA. This MOA is a condition that MDT places on granting encroachment permits for this project. To our knowledge, there is no other permitting tool available to MDT, under statute or administrative rule, beyond an encroachment permit, to create a more collaborative arrangement for the placement of improvements by a City government. This constraint is not true for all entities. However, statute provides public utilities, meaning entities regulated by the Public Service Commission, the legal right to occupy MDT right of way with their facilities under an occupancy permit. In addition to the legal right to occupy MDT right of way, occupancy permit holders do not have to pay the costs of moving or removing their facilities as MDT makes changes to their facilities. In contrast, encroachment permit holders must bear such costs. In this way, the City of Bozeman has inferior standing to electrical and telecommunications utilities under statute and regulation. Given the constraints of law and regulation, staff believes this MOA is likely the best negotiable agreement for making the proposed improvements to the N. 7th Avenue corridor. The City Commission, nevertheless, should consider lobbying efforts for beneficial changes to these regulations, which are unfavorable to the City and its ability to serve its constituents. FISCAL EFFECTS: The installation of lighting improvements and streetscape elements, for which the City is now responsible for maintenance, will create a long-term maintenance responsibility for the City. These responsibilities are similar to those the City incurs whenever it takes responsibility for new public infrastructure.
ATTACHMENT: City / State Memorandum of Agreement for the N. 7th Avenue Corridor (N-118) Streetscape Projects and Maintenance, Bozeman, Montana
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