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HomeMy WebLinkAboutResolution 3519, Creation of Solvent Site Payback District COMMISSION RESOLUTION NO. 3519 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, RELATING TO A WATER MAIN PAYBACK DISTRICT; CREATION OF THE SOLVENT SITE PAYBACK DISTRICT FOR THE PURPOSE OF RECOVERING A PORTION OF THE COST OF DESIGNING AND INSTAlliNG CERTAIN lOCAL WATER MAIN IMPROVEMENTS WHICH THE CITY WAS REQUIRED TO INSTALL. WHEREAS, in 1992, Jewel Food Stores, Inc. (hereinafter Jewel) filed a lawsuit against the City of Bozeman and a number of other defendants in the United States District Court for the District of Montana, Butte Division for damages arising out of and related to the investigation, removal, and remediation of soil and groundwater contamination in Bozeman, Montana now known as the Bozeman Solvent Site (BSS); and WHEREAS, the City and Jewel entered into an settlement agreement in which both parties agreed to seek an order from the Montana Department of Environmental Quality (MDEQ) requiring them to provide domestic water use for residents and business located within the BSS area south of the East Gallatin River; and WHEREAS, the City received said order from MDEQ and agreed to construct an alternate municipal water line for existing business and domestic use only at no additional cost to the property owners within the BSS; and WHEREAS, the settlement agreement contemplates that additional real estate not identified on Exhibits "A" or "B" of the "Fifth Amendment to Interim Water Supply Order" (the Order), will benefit from the construction of the municipal water line and should be required to pay the City a fair pro-rata cost incidental to the extension of the municipal water line plus normal hook-up costs and fees prior to connecting to the water line; and WHEREAS, a resolution must be enacted as the means to establish the area and identify real estate located within the BSS area that will be required to pay a fair pro-rata share upon connection to city water services. BE IT RESOLVED by the City Commission of the City of Bozeman (the "City"), Montana, as follows: Section 1. Improvements; Creation of a Payback District. The City proposes to recover a portion of the cost of designing and installing certain local Water Main improvements (the "Improvements") which the City was required to install and which have the potential to benefit certain real estate. The Improvements consist of water mains, including the engineering design, construction, inspection and engineering certification of a water trunk main comprised of 8 inch, 10 inch and 12 inch pipes, extending from the existing water main in Mandeville Lane, northward across U.S. Highway 10, westward to Springhill Road and then south across Interstate Highway 90 to the existing water main in Valley Center Road. The Improvements are more particularly described in Section 5. The total costs of the Improvements are $1,791,140.00, of which $1,707,640.00 are to be applied to the Payback District. A synopsis of the derivation of these costs is attached as Exhibit B, which is incorporated herein and made a part hereof. Section 2. Name of District. The District shall be known and designated as the Solvent Site Water Main Payback District. Section 3. Boundaries of District. The limits and boundaries of the District are depicted on a map attached as Exhibit A which is incorporated herein and made a part hereof. Section 4. Benefitted Property. The District and real estate included within the limits and boundaries shown on Exhibit 1 are hereby declared to be the payback district and the area which may benefit from the Improvements. It is the intention of the City that the real estate included in the District will be assessed for a portion of the costs of the Improvements at the time they connect to the .----- --, ----- ---.- improvements as described in Section 6. The real estate included within said limits and boundaries is hereby declared to be the property benefitted by the Improvements. Section 5. The Improvements. The District has financed the following water improvements: engineering design, construction, inspection, engineering certification and installation and construction of a water main, including trench excavation, backfill, bedding material, ductile iron water main, valves and valve boxes, pressure reduction vaults, fittings, hydrants, service line stubs and other necessary appurtenances, from the existing water main in Mandeville Lane, northward across U.S. Highway 10, westward to Springhill Road and then south across Interstate Highway 90 to the existing water main in Valley Center Road, adjacent to the City of Bozeman, Montana (the "Improvements"). Section 6. Payment Methods. 6.1. Property To Be Assessed. All real estate within the District is subject to be assessed for a portion of the costs of the Improvements as specified herein with the exception of those residences and/or businesses presently existing and listed in Exhibit A of "Fifth Amendment to Interim Water Supply Order" (the Order). Residences and/or Businesses identified on Exhibit B of the Order are subject to be assessed as specified herein unless the City is required to connect said property to the improvements under the provisions of Section C (7) of the Order. The costs of the Improvements shall be assessed against real estate in the District benefitting from the Improvements based on a gross area method of assessment, as particularly applied and set forth in this Section 6. 6.2. Assessable Area. All properties in the District will be assessed for their proportionate share of the costs of the Improvements. The total estimated cost of the water improvements is $1,707,640.00. Each lot, tract or parcel of real estate in the District shall be assessed a portion of the costs of the Improvements in the same ratio that the area of such lot, tract or parcel bears to the total area of all lots, tracts or parcels of real estate in the District, subject to the exceptions noted in Section 6.1. The total area of the District to be assessed is 20,848,077 square feet. The costs of the Improvements per square foot of area, exclusive of consumer price index adjustment (CPIA), shall be $0.082. 6.3. Payment Methodoloaies Eauitable and Consistent with Benefit. This Commission hereby determines that the method of assessment and the assessment of costs of the specific Improvements against the real estate benefitted thereby as prescribed in this Section 6 are equitable and in proportion to and not exceeding the special benefits deriv.ed from the respective Improvements by the lots, tracts and parcels of real estate to be assessed therefor within the District. Section 7. Payment of Assessments. 7.1 Pavments. The assessments for the costs of the Improvements, plus CPIA, shall be payable in full to the City of Bozeman at the time any connection to the above described improvements is made for the purpose of providing water to a lot or parcel in the district. The CPIA shall be applied to the payback amount for all property in the district beginning with the adoption of this Resolution and it shall end at the time of connection for the given parcel. The index shall be the U.S. Consumer Price Index for all Urban Consumers for All Items - (Source: U.S. Department of Labor, Bureau of Labor Statistics). 7.2. Distribution of Payments. The City shall remit a portion of the assessment payments received to Jewel Food Stores, Inc., consistent with Paragraph 2.A.(iii) of the Settlement Agreement executed by the City and Jewel Food Stores, Inc. in July, 1999. Section 8. Consistencv of Intent. This resolution is to be construed and interpreted so as to be consistent with the Settlement Agreements between Jewel Food Stores, Inc . and the City of Bozeman, which agreements were executed in July 1999 and the Order. - 2 . PASSED AND ADOPTED by the City Commission of the City of Bozeman, Montana, at a regular meeting thereof held on the 28th day of May 2002. STd:'R~~ ATTEST: ~.d:u~ Clerk of the Commission ------- ---....--.--.- - ------ --- -- -. -- -- ------- - - ---- . -- - -- -- -- - ------ ~'Ui ~~ ... '-= ~'~,., J / T ~ r-,.(~ .~ ~ ~ ~ ~,~. ~~ d3 l~~ ~~. ,~ ~ ~ gl ~;ftq",. ( i""l..~ ~ ~T4 ~O;; ! "\. '''.SWi:!;~.iV\ Q , "'----- ~I .,;('.'~~.i':.j;,!;~' ~~ ~~i~'. ~,"'.~ ~>> !'~ \ / 'Of, $ , Ii'M? '1- If,/} ~ I L ,\' -1)1", . .' ~ '"; '..!C,.,,:'I. ~ ,-- ~ - r' I I : """" ~ , ~ ~'~N' ~1.1. " O " . ~ ..,.--..-- \.] ~ ~:.r-;: ~ I'... '" ;1. .....,. .~rn ~ I '" i'.. \ij DA.i 'R LN" r~ '. ~ !IE ". Me... ~., ." ~ 'J fl. 'r \; I ", \ I .........! \-- :"'00 :\ '" , ", '. .' 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EXHIBIT B FINANCIAL SUMMARY & PAYBACK CALCULATION Expenditures Total Engineering $ 312,435.00 Construction $1.478.705.00 Subtotal $1,791,140.00 Credits West Babcock Water Main $ 37,500.00 Insurance $ 46.000.00 Subtotal $ 83,500.00 Cost Assessed to Payback District $1.707.640.00 DISTRICT AREA Bogart Subdivision #1 7.12 Acres Bogart Subdivision #2 10.009 Acres Walker Subdivision 117.833 Acres Tract A-2 C.O.S. 1827 10.64 Acres State Lands & Mandeville 280.73 Acres Minor Subdivision147 23.064 Acres Saunders Riverside Acres 6.410 Acres Woody 10.015 Acres McNeal 11.385 Acres Burns 1.40 Acres TOTAL 478.606 Acres (20,848,077.36 Square Feet) PAYBACK RATE $1,707,640.00 + 20,848,077 square feet = $0.082/sQuare foot --..------.-...-.----- .-...--..----