HomeMy WebLinkAbout05-22-18 Minutes - Northeast Urban Renewal Board (NURB)
NURB Meeting – May 22, 2018 1
Northeast Urban Renewal Board (NURB)
Special Meeting
Tuesday, May 22, 2018
The Northeast Urban Renewal Board met in special meeting at 6:30 p.m. on Tuesday, May 22,
2018, in the Conference Room, Professional Building, 20 East Olive Street, Bozeman, Montana.
Present: Absent:
Voting Members:
John Usher, Chair Bobbi Clem
Dan Doehring
Robert Pavlic Jeanne Wesley-Wiese Non-Voting Members:
Ethan Barlow Dalton Brink
Nolan Campbell Commissioner Liaison:
I-Ho Pomeroy
Staff: Shane Strong, KLJ Engineering (via telecon from 7:00 to 7:35 p.m.)
Brit Fontenot, Economic Development Director
Robin Sullivan, Recording Secretary
Guests:
Call to Order – Chair John Usher called the meeting to order at 6:37 p.m.
Changes to the Agenda – No changes were made to the agenda.
Public Comment – No comment was received under this agenda item.
Discussion/Action Items –
Review of bids for East Tamarack Street project; review and possible revision of work plan and budget for Fiscal Year 2018-19. Brit Fontenot stated that bids for the East
Tamarack Street project were opened on Friday, May 11; and a copy of the bid tab was
distributed to the Board prior to this meeting. He noted that the tabulation reflects the low bid,
from Knife River, was significantly higher than the engineer’s estimate and exceeds the amount budgeted for this project. He reminded the Board that it is responsible for the street and storm water portions of the project while the City is responsible for the sewer portion of the project. He
NURB Meeting – May 22, 2018 2
has talked to the City’s Engineering Department about the costs for the sewer portion of the
project and, while they recognize the costs are higher than anticipated, they are considering
acceptance of the bid, particularly in light of the fact that the hospital is waiting for it to be
completed so it can continue with development. Their concerns generally revolve around the single line item for dewatering and are considering options for trying to reduce that cost.
Brit Fontenot asked the Board to concentrate on the street portion of the project and the additive
alternates, which are for the installation of fiber conduit under the sidewalk along the north side of the street. He noted that the bid, which was based on boring for the entire length of the installation plus six vaults to allow future connection to fiber optics, is for a total of $135,945. He
stated that, based on the current bid amounts, the shortfall in budgeting is $66,000.
Brit Fontenot stated that, in an effort to reduce the costs of this portion of the project, he has asked the subcontractor to determine if any portion of the conduit installation can be done
through open trenching and, if so, to provide an alternate cost. As of this meeting, he has not
received that information so the potential for decreasing the costs is unknown. He then asked
the Board to discuss the value of having fiber conduit installed as a portion of this street project and how the additional costs may be covered.
Robin Sullivan distributed a copy of the Fiscal Year 2018-19 budget as approved by the Board
at its May 8 meeting along with notes on the financial status of the fund at this time. She noted
that the current balance in the tax increment financing fund and bond fund combined is $570,855; property tax revenues are projected at $57,000 from the second half taxes; and the
second “half” bond proceeds of $583,000 will be deposited in early July. Anticipated costs
remaining for this year include $100,000 for completion of East Peach Street and approximately
$19,000 in outstanding engineering costs. She then indicated that the total estimated cost of this project, including construction and engineering, is $909,998, which is significantly higher than the $760,000 budgeted.
Brit Fontenot noted that Knife River will be doing the work on North Rouse Avenue; and they would be able to help with the transition between those improvements and the ones on East Tamarack Street.
John Usher stated he feels the additive alternate for the fiber conduit should be accepted so that
fiber can be installed to this area. He voiced an interest in lowering the cost of that installation if possible, noting Brit Fontenot’s assertion that open trenching in the area where the sidewalk will be constructed could help to reduce costs. Additionally, echoing a Brit Fontenot statement from
earlier, he noted that if it is not done at this time, the costs of installing the conduit will only be
higher. Responding to Bob Pavlic, Shane Strong confirmed that the sewer main in this project is a part
of the Front Street interceptor sewer project, which provides an up sized sewer main to
accommodate development around the hospital.
Further responding to questions, Shane Strong stated he has asked Steve Baeth at Knife River
for an estimate that includes trenching for the conduit rather than boring wherever possible. As
of this meeting, he has not had any response and will try to get that information in the morning.
Responding to Dan Doehring, Brit Fontenot stated that the conduit will extend from the east terminus of this project to the Fairgrounds, where it will be connected to the existing fiber
NURB Meeting – May 22, 2018 3
backbone. He stressed that this project is for the installation of the conduit and vaults only; the
fiber will be pulled and connections to the vaults made at a later date. Services can then be
extended to individual businesses and residences.
Responding to questions from Jeanne Wesley-Wiese, discussion among board members led to
the conclusion that fiber optic is becoming the standard in current technology data transmission.
Bob Pavlic observed that, while he supports the project, it seems very costly. Responding to questions from Jeanne Wesley-Wiese, Brit Fontenot stated that installation of the
empty conduit is to facilitate expanding the City’s network and will include seven conduits inside
one larger pipe. He noted that those conduits can be leased to service providers, and noted
there is a lot of interest in expanding fiber services throughout the community.
As initially suggested by Brit Fontenot, John Usher reiterated that if the conduit is installed as a
part of this project, it will then be owned by the City and not any single service provider. The
Board then discussed the breadth of potential projects in the area that will result in demands for this type of service.
Bob Pavlic stated this area of the community is undergoing a change because of development
demands. He noted that the existing single-family district has been lost and is being replaced
by multi-family housing and commercial development rather than additional single-family development.
Through discussion, board members voiced their opinions on whether they feel installation of
fiber conduit as a part of this street project is worth the additional cost. Each board member responded that they feel it is.
Responding to Jeanne Wesley-Wiese, Brit Fontenot stated that the existing single-family
housing will remain as it is. Shane Strong stated he is seeking a better alternative for identifying the costs of dewatering
rather than the unit price that has been bid. He suggested that might include paying a per day
or per hour price. He will be in contact with Knife River to determine if those costs can be
adjusted to more accurately reflect actual costs. John Usher noted that when the centrifuge was installed on East Tamarack Street in
conjunction with the North Wallace Avenue improvements, a lot of water was pumped out of the
hole and, in fact, a temporary water holding tank was installed to the east of his property for the duration of the project to filter the silt.
Responding to Ethan Barlow, Shane Strong stated that after the notice of award, he anticipates
it will take three weeks to get bonds, contract documents executed, and a notice to proceed
issued. The notice to proceed will then trigger the 120-day construction period, which he expects will begin in mid-June. He then reminded the Board that the dewatering costs apply to
the sewer project only and have no impact on the costs to the tax increment financing district.
Ethan Barlow stated that dewatering costs can fluctuate greatly over the life of a four-month project and mentioned that the time of year (late spring/early summer) has an impact on this as well.
NURB Meeting – May 22, 2018 4
Shane Strong recognized that the costs of the sewer portion of this project are higher than the
City Engineering Department had anticipated and will take $700,000 of the $2 million budgeted
for the entire Front Street interceptor sewer.
Brit Fontenot reminded the Board that the spreadsheet showing the projects and budgeted
amounts for Fiscal Year 2018-19 is the document that will be included in the City’s budget. He
stated that the Board has the latitude to expend the monies needed to cover any of the projects
on that list but may not expend any more than the total amount it has available in its funds. Responding to questions about the action to be taken on this item, staff stressed it is important
to tie the sewer and street improvements together. As a result, they proposed that the motion
include a contingency that the City Engineering Department also recommend award of the
sewer portion of the project.
It was moved by John Usher, seconded by Bob Pavlic, that the Board recommend award of the
bid for the street and storm water improvements and the additive bid alternates for the
installation of conduit and vaults totaling $135,945, contingent upon City Engineering accepting the sewer portion of the bid submitted by Knife River. The motion carried on a 5-0 vote.
FYI/Discussion (formerly Neighborhood News). Bobbi Clem announced that the
neighborhood stroll in the Mill District will be held on June 1.
Adjournment – 7:38 p.m. There being no further business to come before the Board at this
time, Chair Usher adjourned the meeting.
John Usher, Chair
Northeast Urban Renewal Board
City of Bozeman