HomeMy WebLinkAbout05-21-18 City Commission Packet Materials - A6. Resolution 4892, Intent to Create SID 745 - N. Ferguson and W. Oak
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Rick Hixson, City Engineer Craig Woolard, Director of Public Works SUBJECT: Adoption of Resolution No. 4892, a Resolution of Intent of the Bozeman
City Commission to create Special Improvement District (SID) 745.
AGENDA ITEM TYPE: Action MEETING DATE: May 21, 2018 RECOMMENDED MOTION: I hereby move to adopt Resolution No. 4892 declaring it to be the City's intention to create Special Improvement District (SID) No. 745. BACKGROUND:
The City Commission created SID 740 on April 17, 2017 for the purpose of undertaking improvements to West Oak Street and North Ferguson Avenue. The boundaries of SID 740 include the Gallatin County Regional Park property fronting these two streets and is more particularly described in Resolution 4771, the resolution of intent to create SID 740. Shortly
after creation of SID 740, Gallatin County, the sole property owner within the district, sued the
City alleging the City’s creation of the SID was improper. Construction of the improvements proceeded while the litigation took its course. Construction of the improvements is now complete and final costs are now known. The final
costs of construction are significantly lower than the estimated costs when SID 740 was created.
The district’s share of actual costs is $902,424.65, $160,713.85 or more than 15% lower than the estimate of $1,062,138.50 described in Resolution No. 4771. Because of this significant difference in costs, and because the City has not yet levied the special assessment authorized by the creation of SID 740, we recommend dissolving SID 740 and creating a new SID that
accurately reflects the costs to be assessed.
Proposed Resolution No. 4892, a Resolution of Intent to Create SID 745, is the first step in the process of creating an SID pursuant to the City’s authority under the Montana Code Annotated
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(MCA), Chapter 7-12, part 41. The purpose of the Resolution of Intent to Create the SID is to inform the public of the City's intention to create an SID to raise funds from adjacent property owners to pay for a portion of the existing improvements. This resolution does not create the
SID. Should this resolution be approved, notice of passage of the resolution will be published and mailed to the property owner pursuant to state law. The City Commission will then hold a public hearing to pass upon any protest received. The resolution must do the following: 1) designate the number of the district; 2) describe the
boundaries thereof; 3) state the general character of the improvements and the cost; and 4) state the method of assessment to be used. The number of this SID will be 745. The boundaries of the district include the Gallatin County Regional Park Property fronting West Oak Street and North Ferguson Avenue. The legal
description of the property is S03, T02 S, R05 E, C.O.S. 2202B, acres 97.59, Tract 3A-1 remainder. The general character of the existing improvements consists of the construction of North Ferguson Avenue from West Oak Street to Baxter Lane, including: installation of storm drainage
utilities, street lighting, curb and gutter, asphalt, and pedestrian ramps. The existing improvements also include the widening of West Oak Street from Davis Lane to North Ferguson Avenue to the City’s arterial standard, including storm drainage improvements, installation of curbing, street lighting, and pedestrian ramps.
Montana law provides four methods of assessment to allocate the District’s share of the costs of improvement among property owners in the District: the area method which is based on the area of the lot; the frontage method which is based on the lots’ width fronting the street; the assessed valuation method which uses the assessed valuation of the parcel; and the equal shares method. Staff proposes the area method of assessment for this SID.
The proposed schedule for SID 745 is as follows: Resolution of Intent to Create May 21, 2018 Publish Notice of Public Hearing May 27 and June 2, 2018
(15-day protest period begins upon first publication of the notice of passage of the resolution of intent) End of Protest Period June 11, 2018 Public Hearing on protests June 18, 2018 Resolution of Creation June 18, 2018
FISCAL EFFECTS: Current Plans: The City’s adopted Capital Improvement Plan for FY18-22 includes both of these street segments (SIF046 and SIF080), with a portion of the costs to be assessed to the Gallatin
County Regional Park property through a special improvement district. Costs: The total cost of the improvements is $2,152,611.04. The City has committed $902,424.65 from the Street Impact Fee Fund and Flanders Mill Subdivision has committed $347,731.74 for its
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share of the improvements to North Ferguson Avenue. The remaining $902,424.65 is to be funded by the special improvement 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 $903,424.65.
FERGUSON AVENUE – BAXTER LANE TO OAK STREET
Final cost of improvements $946,255.70
City Share (1/3 of improvements) $299,246.98
SID Share (1/3 of improvements) $299,246.98
Flanders Mill Subdivision Share $347,731.74
(1/3 of improvements + 100% of cost of asphalt trail)
WEST OAK STREET – FERGUSON TO NEW HOLLAND
Final cost of improvements $1,206,355.34
City Share (50% of improvements) $603,177.67
SID Share (50% of improvements) $603,177.67
TOTAL cost of improvements (Oak & Ferguson) $2,152,611.04
TOTAL SID share of improvements (Oak & Ferguson)
TOTAL SID amount (including incidental expenses
expenses)
$902,424.65
$903,424.65
Financing: To fund the costs of the District’s Share of the Improvements, a bond or warrant will
be drawn against the District in the amount of $903,424.65, payable from special assessments to
be levied against property in the District semi-annually for three years in an amount to equal the principal of the loan of $903,424.65 plus simple interest at an annual rate as allowed by Montana Code Annotated sect. 7-12-4189.
UNRESOLVED ISSUES:
None identified. ALTERNATIVES: As suggested by the City Commission.
Attachment: Resolution No. 4892
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Page 1 of 8
COMMISSION RESOLUTION NO. 4892
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
RELATING TO SPECIAL IMPROVEMENT DISTRICT NO. 745; DECLARING IT TO
BE THE INTENTION OF THE CITY COMMISSION TO CREATE THE DISTRICT FOR
THE PURPOSE OF PURCHASING CERTAIN LOCAL IMPROVEMENTS AND
FINANCING THE COSTS THEREOF AND INCIDENTAL THERETO, AND ONCE
CREATED TO LEVY THE SPECIAL ASSESSMENTS ON BENEFITTED PROPERTY
IN THE DISTRICT.
BE IT RESOLVED by the City Commission (the “Commission”) of the City of Bozeman,
Montana (the “City”), as follows:
Section 1
Intention to Create District. The City proposes to purchase, on behalf of a special improvement
district to be created, upon such terms as the Commission deems just, certain local improvements
to benefit certain property located in the City. The improvements consist of roadway and related
improvements to West Oak Street between North Ferguson Avenue and Davis Lane and roadway
and related improvements to North Ferguson Avenue between West Oak Street and Baxter Lane,
including: widening of the road, installation of curbing, storm drainage improvements, street
lighting, and pedestrian ramps, as more particularly described in Section 5 (the “Improvements”).
The total costs of the Improvements are $2,152,611.04. Pursuant to Resolution No. 4507, the City
has committed $902,424.65 from the City’s Street Impact Fee Fund and the Flanders Mill
Subdivision has committed $347,731.74 for its share of the improvements to North Ferguson
Avenue, leaving $902,424.65 of the costs of the Improvements to be funded through the District
(hereinafter referred to as the District's Share of the Improvements). It is the intention of this
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Resolution 4892, Resolution of Intent to Create SID 745
Page 2 of 8
Commission to create and establish in the City under Montana Code Annotated, Title 7, Chapter
12, Parts 41 and 42, as amended, a special improvement district (the “District”) for the purpose of
paying the District's Share of the Improvements and paying costs incidental thereto, including costs
associated with the creation and administration of the District (collectively the “Incidental Costs”).
The total estimated cost of the District's Share of the Improvements, including such Incidental
Costs, is $903,424.65.
To fund the costs of the District’s Share of the Improvements, the Commission intends to
use a bond or warrant drawn against the District in the amount of $903,424.65, payable from
special assessments to be levied against property in the District, which property will be specially
benefited by the Improvements in an amount not less than $903,424.65. In doing so, the
Commission intends to assess the District in the manner described in Section 7, below, in an
amount to equal the principal amount of $903,424.65 plus simple interest at an annual rate as
allowed by §7-12-4189, MCA.
Section 2
Number of District. The District, if the same shall be created and established, shall be known and
designated as Special Improvement District No. 745 of the City of Bozeman, Montana.
Section 3
Boundaries of District. The limits and boundaries of the District are depicted on a map attached as
Exhibit A hereto (which is hereby incorporated herein and made a part hereof) and includes all the
properties within the boundaries of the District, the legal description of which is contained in
Exhibit B hereto (which is hereby incorporated herein and made a part hereof), which boundaries
are designated and confirmed as the boundaries of the District.
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Resolution 4892, Resolution of Intent to Create SID 745
Page 3 of 8
Section 4
Benefitted Property. The District and territory included within the limits and boundaries described
in Section 3 and as shown on Exhibit A and Exhibit B (also known as the Gallatin County Regional
Park; hereinafter referred to as the “Park”) is hereby declared to be the special improvement district
and the territory which will be benefitted by the Improvements and will be assessed for the costs
of the District’s Share of Improvements as described in Section 1. The property included within
said limits and boundaries is hereby declared to be the property benefitted by the Improvements.
Section 5
General Character of the Improvements. The Improvements consist of an expanded street section
on West Oak Street and construction of North Ferguson Avenue with gravel base course material,
asphaltic cement surfacing, City standard curbs and gutters, pedestrian ramps, traffic control
signage and pavement striping, storm drains, and all related improvements. The Improvements
also include the engineering design, construction, inspection and engineering certification of
asphalt cement paving, gravel base courses and sub-grade preparation, storm drainage, and all
necessary permits and appurtenances to complete the Improvements.
Section 6
Cost of Improvements. The costs of the existing Improvements is $2,152,611.04, as shown on
Exhibit D, attached hereto (and hereby incorporated herein and made a part hereof). The City paid
$902,424.65 in Street Impact Fee funds to the costs of the Improvements. Flanders Mill
Subdivision paid $347,731.74 for its share of the Improvements to North Ferguson Avenue. The
District's Share of the Improvements is $902,424.65 and the Incidental Costs related to creation of
the District and financing the cost is estimated to be $1,000. The bond or warrant is to be issued in
the principal amount of $903,424.65.
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Resolution 4892, Resolution of Intent to Create SID 745
Page 4 of 8
Section 7
Assessment Methods.
7.1. Property To Be Assessed. All properties in the District will be assessed
for their proportionate share of the costs of the District's Share of the Improvements
from which they derive a benefit as determined and set forth herein. District's Share
of the Improvements shall be assessed against the property in the District
benefitting from these Improvements, based on the method as authorized by §7-12-
4162, MCA, as particularly applied and set forth in Section 7.2 hereof.
7.2. Lot Area. The District's Share of the Improvements will be assessed
using the lot area method of assessment. The Engineer has determined the area of
each lot, tract or parcel, based on current recorded plats and certificates of survey
for each lot, tract or parcel of land, on file at the Gallatin County Clerk and
Recorder’s office. The total area of the District to be assessed, exclusive of streets,
roads, and rights-of-way, is 97.59 acres. The total estimated cost of the District's
Share of the Improvements including Incidental Costs to be funded through the
District is $903,424.65 and shall be assessed against each lot, tract or parcel of land
in the District for that part of the costs of the District's Share of the Improvements
that the area of such lot, tract or parcel bears to the total area of all lots, tracts or
parcels of land in the District, exclusive of streets, roads, and rights-of-way. The
estimated principal assessment for each lot, tract or parcel of land for the District's
Share of the Improvements is shown on Exhibit C hereto.
7.3. Assessment Methodology Equitable and Consistent with Benefit. This
Commission hereby determines that the method of assessment and the assessment
of costs of the District's Share of the Improvements against the properties benefitted
thereby as prescribed in this Section 7 is equitable and in proportion to and not
exceeding the special benefits derived from the Improvements by the lots, tracts
and parcels to be assessed therefore within the District.
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Resolution 4892, Resolution of Intent to Create SID 745
Page 5 of 8
Section 8
Payment of Assessments. The special assessments for the costs of the District's Share of
the Improvements shall be payable over a term not exceeding (3) three years, each in equal semi-
annual installments of principal, plus interest, or equal semi-annual payments of principal and
interest, as this Commission shall prescribe in the resolution creating the District. Property owners
have the right to prepay assessments as provided by law.
Section 9
Method of Financing; Findings and Determinations. The total approximate costs of the
District’s Share of the Improvements and Incidental Costs will be financed by issuance of a bond
or warrant in an amount of $903,424.65, the repayment of which shall become an obligation of the
District. The principal and interest will be repaid from special assessments levied against the
property in the District.
In determining to authorize such undertakings and agreements, this Commission finds:
(a) Delinquencies. The property in the District has no delinquent taxes.
(b) The Public Benefit of the Improvements and Special Benefit to the
District Property. West Oak Street was classified in the 2007 Greater Bozeman
Area Transportation Plan, a collaborative effort between the City, Gallatin County
and the Montana Department of Transportation, as a 5-lane principal arterial
roadway. It is a critical east-west connection for vehicles, bicycles, and pedestrians
from within and outside the City. Since before the Park was constructed, it has been
within City limits but without City-standard streets, sidewalks, and gutters and
storm drains which are required of all properties within the City. The Park is owned
and operated by Gallatin County for the benefit of all citizens of Gallatin County.
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Resolution 4892, Resolution of Intent to Create SID 745
Page 6 of 8
The Improvements benefit all Gallatin County citizens by improving traffic flow
and safety in the area of the Park.
The Improvements especially benefit the property in the District by providing
for the construction of all street facilities required by the Bozeman Municipal Code.
In addition, the Improvements to West Oak Street and North Ferguson Avenue
adjacent to the Park improve public safety, especially for users of the Park, by the
installation of through lanes, sidewalks, parking lot approaches, pedestrian ramps
and crosswalks, traffic control signage and pavement striping. West Oak Street had
no sidewalk adjacent to the Park, so the installation of a sidewalk there is an
improvement to the Park that will especially benefit its pedestrian users by
improving pedestrian safety and access to the Park by pedestrians. North Ferguson
Avenue adjacent to the Park did not exist, so its construction, along with installation
of sidewalk and other related improvements, benefits the Park and especially
benefits Park users by improving safety and adding to accessibility.
(c) Waiver of Right to Protest. A waiver of right to protest creation of a
special improvement district was executed by the predecessor in interest to the current
property owner in consideration of receiving approval for annexation of the property
into the City on October 19, 2001. In 2001, the property owner specifically waived
for itself, and its successors and assigns, the right to protest the creation of one or
more special improvement districts for street improvements including paving,
curb/gutter, signals, sidewalk, and storm drainage facilities to Baxter Lane, Davis
Lane/Fowler Road, Deadman’s Gulch Road, Ferguson Road and Oak Street; trunk
water main and appurtenances to serve the property; trunk sewer mains and sewage
lift stations to serve the property; or to make any written protest against the size or
area or creation of the district to be assessed in response to a duly passed resolution
of intention to create one or more special improvement districts which would
include the property. The waiver was recorded with the Gallatin County Clerk and
Recorder’s Office on November 14, 2001, Document No. 2053095.
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Resolution 4892, Resolution of Intent to Create SID 745
Page 7 of 8
(d) Arterial and Collector Special District. The property in the District is
not included within the boundaries of the Arterial and Collector Special District
created by Resolution 4640 on August 31, 2015.
Section 10
Public Hearing; Protests. At any time within fifteen (15) days after the date of the first publication
of the notice of the passage and approval of this resolution, any owner as defined in Section 7-12-
4112(4), MCA, of real property within the District liable to be assessed for the cost of District’s
Share of the Improvements may make and file with the City Clerk until 5:00 p.m., MT, on the
expiration date of said 15-day period (Monday, June 11, 2018), written protest against the
Improvements, or against the creation of the District or both. Such protest must be in writing,
identify the property in the District owned by the protestor and be signed by all owners of the
property. The written protest must be delivered to the City Clerk, who shall endorse thereon the
date and hour of its receipt. The Commission will at its next regular meeting after the expiration
of the fifteen (15) days in which such protests in writing can be made and filed, proceed to hear
and pass upon all such protests so made and filed; said regular meeting will be held on Monday,
the June 18, 2018, at 6:00 p.m., in the Commission Meeting Room, Bozeman City Hall, 121 N.
Rouse Avenue, in Bozeman, Montana.
Section 11
Notice of Passage of Resolution of Intention. The City Clerk is hereby authorized and directed to
publish or cause to be published a copy of a notice of the passage of this resolution as provided in
Section 7-12-4106, MCA, in the Bozeman Daily Chronicle, a newspaper of general circulation in
the county on May 27, 2018 and June 3, 2018 in the form and manner prescribed by law, and to
mail or cause to be mailed a copy of said notice to every person, firm, corporation, or the agent of
such person, firm, or corporation having real property within the District listed in the owner's name
upon the last completed assessment roll for state, county, and school district taxes, at the owners
last-known address, on or before the same day such notice is first published.
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Resolution 4892, Resolution of Intent to Create SID 745
Page 8 of 8
Section 12
Resolution Levying Special Assessment. Pursuant to 7-12-4176, MCA, this Commission intends
to by resolution levy and assess a tax upon all benefited property in the District. A public hearing
on such resolution will be duly noticed.
PASSED, ADOPTED, AND APPROVED by the City Commission of the City of
Bozeman, Montana, at a regular session thereof held on the 21st day of May, 2018.
___________________________________
CYNTHIA L. ANDRUS Mayor ATTEST:
________________________________________ ROBIN CROUGH City Clerk
APPROVED AS TO FORM: ___________________________________
GREG SULLIVAN City Attorney
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DAVIS LN W OAK ST
BAXTER LN N FERGUSON AVE TSCHACHE LN
BOSAL ST
LOLO WAY
LADUKE ST
MONIDA ST MARIAS LN LOLO WAY
LEMHI TRAIL DR CASPIAN AVE AGATE AVE LEMHI TRAIL DR CABALLO AVE VAQUERO PKWY
W OAK ST DAVIS LN VAQUERO PKWY N. Ferguson Ave. & W. Oak St. S.I.D. Exhibit A
C O U N T YCOUNTYREGIONA LREGIONALPARKPARK
Legend
Ferguson & Oak SID
Parcels
¯
578
EXHIBIT B
Ferguson Avenue & West Oak Street SID
ADDRESS OWNER 1 OWNER 2 OWNER ADDRESS CITY STATE ZIP PARCEL NUMBER LEGAL DESCRIPTION OUTSTANDING SID ASSESSMENTS DLQ PROPERTY TAXES DLQ CITY ASSESSMENTS
4598 E. Baxter Ln., Bozeman MT 59715 Gallatin County 311 W Main Street, Rm 304 Bozeman, MT 59715-4574 RGG67297
S03, T02 S, R05 E, C.O.S. 2202B, ACRES
97.59, TRACT 3A-1 REMAINDER 0 -$ -$
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EXHIBIT C
Ferguson Avenue & West Oak Street SID
ADDRESS OWNER 1 OWNER 2 OWNER ADDRESS CITY STATE ZIP ASSESSABLE LOT AREA Total Assessment
4598 E. Baxter Ln., Bozeman MT 59715 Gallatin County 311 W Main Street, Rm 304 Bozeman, MT 59715-4574 97.59 acres $903,424.65
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EXHIBIT D
FERGUSON AVENUE – BAXTER LANE TO OAK STREET
Final Construction Costs
Costs of Improvements $ 946,255.70
City Share (1/3 of Improvements) $ 299,246.98
SID Share (1/3 of Improvements) $ 299,246.98
Flanders Mill Subdivision Share $ 347,731.74
(1/3 of Improvements + 100% of Asphalt Trail)
WEST OAK STREET – FERGUSON TO NEW HOLLAND
Final Construction Costs
Costs of Improvements $ 1,206,355.34
City Share (50%) $ 603,177.67
SID Share (50%) $ 603,177.67
TOTAL Cost of Improvements (Oak & Ferguson) $ 2,152,611.04
TOTAL SID Share of Improvements (Oak & Ferguson) $ 902,424.65
TOTAL SID Amount (including incidental expenses) $ 903,424.65
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