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HomeMy WebLinkAbout03-04-19 City Commission Packet Materials - A1. Res. 4984, Creating SID 750 for N. Tracy ReconstructionCommission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Shawn Kohtz, City Engineer Kellen Gamradt, Engineer II SUBJECT: Public Hearing on Protests for Special Improvement District (SID) No. 750 and Adoption of Resolution 4984 - a Resolution of the Bozeman City Commission to create SID No. 750 for the purpose of undertaking certain local improvements to North Tracy Avenue between Peach Street and Villard Street and financing the costs thereof. AGENDA ITEM TYPE: Action MEETING DATE: March 4, 2019 RECOMMENDED MOTION: After hearing all protests, and finding them to be insufficient under law to bar further proceedings, I hereby move to adopt Resolution 4984 creating Special Improvement District No. 750 for the purpose of financing local improvements to North Tracy Avenue between Peach Street and Villard Street. BACKGROUND: At its February 4, 2019 meeting the City Commission adopted Resolution 4983, declaring it to be the intention of the City Commission to create Special Improvement District (SID) No. 750 (the “District”) for the purpose of undertaking certain local improvements to North Tracy Avenue between Peach Street and Villard Street and financing the costs thereof. The packet materials for the February 4th meeting are located here. In accordance with Montana Code Annotated (MCA) Title 7-12 Part 41, notice of the passage of this Resolution was published in the Bozeman Daily Chronicle on February 10, 2019 and February 17, 2019 and mailed to all property owners to be assessed. This established the "Protest Period" as February 10, 2019 to February 27, 2019 at 5:00 PM. The purpose of this hearing is to provide an opportunity for the public to comment on the proposal and for the Commission to hear and decide upon all protests that were received prior to the end of the protest period. Should the Commission determine protests do not met the statutory threshold (see below) the Commission may adopt the resolution creating the SID. 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, two protests were filed with the City Clerk by the property owners of two parcels, representing 5.75% percent of the total costs of the improvements to be assessed against properties in the District, as proposed. 209 FISCAL EFFECTS: Current Budget: The FY19 Approved Budget anticipated the reconstruction of W. Lincoln Avenue (between Grand and Willson) with a total project cost of $224,011; 25% from the Street Reconstruction Funds ($56,003) and 75% SID financed through the SID ($168,008). Homeowners did not accept this project and the project has been moved to the bottom of the list of local street improvement projects. The North Tracy project was moved forward. If SID 750 is created a budget amendment will be needed to increase the total appropriation by $222,989 to $447,000. Project Costs: The total estimated cost of the street and storm drain improvements are $447,000. Because the actual traffic counts on North Tracy Avenue were higher than anticipated, the funding split per Resolution 4507 is 50% from the Street Reconstruction Funds and 50% through the SID. The City can commit, per its policy, $223,500 from the Street Reconstruction fund to reduce the costs to the SID, leaving $223,500 to be funded by the SID. In addition, the SID will be responsible for an estimated $1,000 in incidental costs related to the creation of the SID for a total of $224,500. If the Commission adopts Resolution 4984, based on the method of assessment described in the Resolution of Intention (linear feet lot frontage) the total estimated assessment an average residential lot with 58 ft. of frontage would be $8,019.44. At the current estimated interest rate of 2.5% (2.0% estimated interest on the interfund loan discussed below, plus 0.5% simple interest on assessments in accordance with 7-12-4189, MCA), a typical property would be assessed including interest approximately $511.96 annually over a period of twenty years. Financing. Costs and expenses of construction of the Improvements will be paid for by assessments levied against benefitted properties. Costs of the Improvements would be financed by transferring excess money in the City’s SID Revolving Fund to the General Fund and then loaning these monies to the North Tracy SID by purchasing warrants issued by the District. An interfund loan has a number of benefits, including a lower interest rate for the District property owners, and avoidance of the costs and time-consuming work of underwriting a bond sale. The SID Fund within the General Fund will be paid back as property owners make their payments over time, with interest. Should SID 750 be created, we will present the Commission a proposed resolution approving the transfer of the excess SID Revolving Fund to the General Fund, a resolution approving the interfund loan documents. A proposed budget amendment resolution for the Street Reconstruction Fund is on the Commission’s agenda following this item. UNRESOLVED ISSUES: None. ALTERNATIVES: As suggested by the City Commission. Attachments: Resolution 4984, Letters of Protest Packet materials for the February 4th Resolution of Intent (hyperlink only) 210 Page 1 of 5 RESOLUTION NO. 4984 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, RELATING TO SPECIAL IMPROVEMENT DISTRICT NO. 750 FOR LOCAL IMPROVEMENTS TO NORTH TRACY AVENUE; CREATING THE DISTRICT FOR THE PURPOSE OF UNDERTAKING CERTAIN LOCAL IMPROVEMENTS AND FINANCING THE COSTS THEREOF AND INCIDENTAL THERETO THROUGH THE ISSUANCE OF MUNICIPAL WARRANTS. WHEREAS, on the 4th day of February, 2019, the City Commission (the "Commission") of the City of Bozeman, Montana (the "City") adopted Commission Resolution No. 4983 (the "Resolution of Intention"), stating its intent to create Special Improvement District No. 750 (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 February 10th and February 17th , 2019, the City Clerk did publish a Notice of Passage of the Resolution of Intent to Create SID No. 750 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 WHEREAS, the Bozeman City Commission conducted a public hearing on protests submitted to the creation of the District on March 4, 2019 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. 211 Resolution 4984, Creating SID 750 for North Tracy Avenue Page 2 of 5 NOW, THEREFORE, BE IT RESOLVED by the City Commission (the “Commission”) of the City of Bozeman, Montana (the “City”), as follows: Section 1 Passage of Resolution of Intention. This Commission, on February 4, 2019, 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 an administrative charge to the General Fund for costs associated with financing of the Improvements (collectively the "Incidental Costs"). Section 2 Notice of Passage of the Resolution of Intention 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 March 4, 2019, 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 ''Protest Period" as defined in the Resolution of Intention and the Notice of Passage. Section 3 Protests. Within the Protest Period, two protests were filed with the City Clerk by the property owners of two parcels, representing 5.75 percent of the total costs of the Improvements to be assessed against properties in the District, as proposed. 212 Resolution 4984, Creating SID 750 for North Tracy Avenue Page 3 of 5 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 issuance of Warrants (as defined in the Resolution of Intention) by the District, 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 Warrants in an estimated maximum aggregate principal amount of $224,500.00 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 Warrants, or other expenditures eligible for reimbursement. The Commission intends to assess property owners in the District to reimburse the General Fund in an amount equal to the principal amount of $224,500.00 plus interest at approximately 2.5% annually. Over the 20-year term of the special assessments, interest earnings of up to $62,154.30 are estimated to be paid from the District property owners and deposited to the General Fund. 213 Resolution 4984, Creating SID 750 for North Tracy Avenue Page 4 of 5 PASSED, ADOPTED, AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 4th day of March, 2019. ___________________________________ CYNTHIA L. ANDRUS Mayor ATTEST: _____________________________________ ROBIN CROUGH City Clerk APPROVED AS TO FORM: ___________________________________ GREG SULLIVAN City Attorney 214 Resolution 4984, Creating SID 750 for North Tracy Avenue Page 5 of 5 CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE I, the undersigned, being the duly qualified and acting recording officer of the City of Bozeman, Montana (the “City”) hereby certify that the attached resolution is a true copy of Resolution No. 4984, entitled: “A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, RELATING TO SPECIAL IMPROVEMENT DISTRICT NO. 750 FOR LOCAL IMPROVEMENTS TO NORTH TRACY AVENUE; CREATING THE DISTRICT FOR THE PURPOSE OF UNDERTAKING CERTAIN LOCAL IMPROVEMENTS AND FINANCING THE COSTS THEREOF AND INCIDENTAL THERETO THROUGH THE ISSUANCE OF MUNICIPAL WARRANTS” (the “Resolution”), on file in the original records of the City in my legal custody; that the Resolution was duly adopted by the City Commission of the City at a meeting on March 4, 2019, and that the meeting was duly held by the City Commission and was attended throughout by a quorum, pursuant to call and notice of such meeting given as required by law; and that the Resolution has not as of the date hereof been amended or repealed. I further certify that, upon vote being taken on the Resolution at said meeting, the following Commissioners voted in favor thereof: ______________________________________ _____________________________________________________________________________; voted against the same: __________________________________________________________; abstained from voting thereon: ____________________________________________________; or were absent: ________________________________________________________________. WITNESS my hand officially this 5th day of March, 2019. _______________________________________ Robin Crough City Clerk 215 216 217