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
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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
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Solvent Site Payback District
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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
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