HomeMy WebLinkAboutPublic Hearing on Protests for SID 718 and Resolution 4527 for Story Street_15
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Rick Hixson, City Engineer
SUBJECT: Public Hearing on Protests for Special Improvement District (SID) No. 718 and Adoption of Resolution 4527- a resolution of the Bozeman City Commission
to create SID No. 718 for the purpose of undertaking certain local improvements to
Story Street between South Church Avenue and South Tracy Avenue and financing the
costs thereof. AGENDA ITEM TYPE: Action
MEETING DATE: May 5, 2014
RECOMMENDED MOTION: After hearing all protests, I hereby move to pass upon the protests determining them to be insufficient under law and adopt Resolution 4527 creating
Special Improvement District No. 718 for the purpose of financing local improvements to East
Story Street between South Church Avenue and South Tracy Avenue.
BACKGROUND: At its April 7, 2014 meeting the City Commission adopted Resolution 4520, declaring it to be the intention of the City Commission to create Special Improvement District
(SID) No. 718, for the purpose of undertaking certain local improvements to Story Street
between South Church Avenue and South Tracy Avenue and financing the costs thereof. In
accordance with Montana Code Annotated (MCA) Title 7-12 Part 41, notice of the passage of this Resolution was made on April 13, 2014 and April 20, 2014. This established the "Protest Period" as April 13, 2014 to April 28, 2014 at 5:00 PM. Within the Protest Period, protests were
filed with the City Clerk by the property owners of twenty parcels, representing 44.4%
percent of the total costs of the Improvements to be assessed against properties in the District, as
proposed. The Engineering division has verified the authenticity of the owners protests received and in conjunction with the City Attorney have concluded that the protests against the creation of the District or the making of the Improvements filed during the Protest Period are found to
be insufficient pursuant to Section 7-12-4113, MCA.
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FISCAL EFFECTS: The total estimated cost of the improvements are $618,376.00. The City
has committed $309,188.00 from the Street Maintenance District fund to reduce the costs to the
SID, leaving $309,188.00 of the costs to be funded by the district. Based on the recommended
method of assessment, that is, lot frontage, for a typical residential lot with 50 ft. of frontage, the total estimated assessment would be $5,152.04.
These costs would be financed over 20 years. At the current estimated interest rate of 1.5%, a
typical residence would be assessed approximately $298.32 annually, equivalent to
$24.86/month.
The City’s Special Improvement District (SID) Revolving Fund has cash in excess of the
statutorily required amount (5% of our outstanding SID debt). This excess will be used to
underwrite the SID costs; the Revolving Fund will loan the District the money, rather than have a
bond sale. We used this type of underwriting for the South 8th Street SID, also. This has a number of benefits: 1. Lower interest rate for the District property owners, 2. Avoidance of the costs and time-consuming work of underwriting and bond sale, 3. Revolving Fund will be “paid
back” as property owners make their payments over time, with interest.
The City’s SID Revolving Fund has total cash of $2.4 million. State law requires the fund to have a balance of $90,150. Proceeding to underwrite this project, cash will immediately be decreased by $310,188. Beginning in November, annual assessments will be paid back into the
fund. Over the life of the loan, the Revolving Fund will receive approximately $50,000 in
interest earnings. These earnings can be used to underwrite other projects in the future –
growing our ability to complete SID projects. UNRESOLVED ISSUES: None.
ALTERNATIVES: As suggested by the City Commission.
Attachments: Resolution 4527, Creation of SID 718 Protest letters Exhibit C
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COMMISSION RESOLUTION NO. 4527
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, RELATING TO SPECIAL IMPROVEMENT DISTRICT NO. 718;
CREATING THE DISTRICT FOR THE PURPOSE OF UNDERTAKING CERTAIN
LOCAL IMPROVEMENTS IN AND ABOUT STORY STREET BETWEEN
SOUTH CHURCH AVENUE AND SOUTH TRACY AVENUE,
FINANCING THE COSTS THEREOF AND INCIDENTAL THERETO
THROUGH A LOAN TO THE DISTRICT FROM THE CITY'S SPECIAL
IMPROVEMENT REVOLVING FUND.
WHEREAS, on the 7th day of April, 2014, the City Commission (the "Commission") of the
City of Bozeman, Montana (the "City") adopted Commission Resolution No. 4520 (the
"Resolution of Intention"), stating its intent to create Special Improvement District No. 718
(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 April 13th and 20th, 2014, the City Clerk did publish a Notice of Passage of
the Resolution of Intent to Create SID No. 718 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 May 5, 2014 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.
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of
Bozeman, Montana, as follows:
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Resolution No. 4527, Creating SID 718, Story Street Improvements
Section 1. Passage of Resolution of Intention. This Commission, on April 7, 2014,
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 a Loan from the City's Special Improvement District Revolving Fund (the "Loan").
Section 2. Notice of Passage of the Resolution of Intent 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 April 13 and April 20, 2014, 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 period ended 15 days after the first date of publication of the notice of passage of the
Resolution of Intention (the ''Protest Period").
Section 3. Protests. Within the Protest Period, protests were filed with the City Clerk by the
property owners of twenty parcels, representing 44.4% percent of the total costs of the
Improvements to be assessed against properties in the District, as proposed.
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 borrowing of funds from the City's special improvement
district revolving fund, and for the creation and administration of the District, are hereby
ratified and confirmed.
Section 5. Reimbursement Expenditures.
5.01. Declaration of lntent. The City reasonably expects to reimburse the expenditures made
for costs of the Improvements out of the proceeds of the Loan from the City's special
Resolution No. 4527, Creating SID 718, Story Street Improvements improvement district
revolving loan fund in an estimated maximum aggregate principal amount of $310,188.00
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 Loan, or other
expenditures eligible for reimbursement.
The Commission intends to assess the District to reimburse the special improvement district
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Resolution No. 4527, Creating SID 718, Story Street Improvements
revolving loan fund in an amount equal to the principal of the Loan of $310,188.00 to
the District plus interest at approximately 1.5% annually. Over the 20- year term of the
Loan from the revolving fund to the District, interest earnings of up to$50,004.00 are
estimated to be paid from the District property owners and deposited to the special
improvement district revolving fund. In addition to reimbursing the revolving fund on
interest the revolving fund would otherwise earn, these interest earnings are intended to
satisfy any revolving fund contribution from the district that may be required under 7-12-
4222(l)(b), MCA.
5.02. Budgetary Matters. As of the date hereof, there are no City funds reserved,
allocated on a long-term basis or otherwise set aside (or reasonably expected to be reserved,
allocated on a long-term basis or otherwise set aside) to provide permanent financing for
the expenditures related to the Improvements, other than pursuant to the Loan from the
City's special improvement district revolving loan fund. The statement of intent contained
in this resolution, therefore, is determined to be consistent with the City's budgetary and
financial circumstances as they exist or are reasonably foreseeable on the date
hereof.
5.03. Reimbursement Allocations. The City's financial officer shall be responsible for
making the "reimbursement allocations" described in the Resolution of Intention being
generally the transfer of the appropriate amount of proceeds of the Loan to reimburse the
source of temporary financing used by the City to make prior payment of the costs of the
Improvements. Each allocation shall be evidenced by an entry on the official books and
records of the City maintained for the Loan or the Improvements and shall specifically
identify the actual original expenditure being reimbursed.
PASSED AND APPROVED by the City Commission of the City of Bozeman,
Montana, at a regular session thereof held on the 5th day of May, 2014.
___________________________________
JEFFREY K. KRAUSS
Mayor
ATTEST:
________________________________________
STACY ULMEN, CMC
City Clerk
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Resolution No. 4527, Creating SID 718, Story Street Improvements
APPROVED AS TO FORM:
___________________________________
GREG SULLIVAN
City Attorney
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EXHIBIT CE. Story St. SID District ‐Lot Frontage AssessmentAddressOwner 1Owner 2Owner AddressCity State ZipParcel Number Assessable Area Linear FtLot Frontage AssessmentProtested502 S TracyMark Bossenbrook 502 S Tracy Bozeman MT 59715RGH5131167.5517,264.49$ 436 S TracyMarilou Turrentine David Willson 436 S Tracy #1 Bozeman MT 59715RGH279716717,207.82$ 503 S BlackWalter Wagner Joan Wagner 1701 Parkview Pl Bozeman MT 59715RGH219911011,334.49$ 433 S BlackBob Chase Marjorie Chase 433 S Black Bozeman MT 59715RGH614510110,407.13$ 101434 S BlackMartha Hopkins PO Box 1369 Bozeman MT 59771RGH516312612,983.15$ 126428 S BozemanCharles Ervin Graciela Marin 413 S Whitcomb Ft Collins CO 80521RGH2822118.812,241.25$ 17 E StoryBob Chase Marjorie Chase 433 S Black Bozeman MT 59715RGH6146666,800.70$ 6618 E StoryGreggoryWagner Sandra Gerchow 18 E StoryBozeman MT 59715RGH2201575,873.33$ 104 E StoryKalani Cowles104 E StoryBozeman MT59715RGH1992707,212.86$ 70108 E StorySteven BrackenArtisan Woodworks 108 E StoryBozeman MT 59715RGH5015484,945.96$ 112 E StoryJon LemonSharon Lemon112 E StoryBozeman MT 59715RGH4074505,152.04$ 113 E StoryChristine McDermott113 E StoryBozeman MT 59715RGH5584454,636.84$ 116 E StoryTrever McSpaddenMarie McSpadden 116 E StoryBozeman MT 59715RGH3161505,152.04$ 117 E StorySteve & Susan FournierKimberly Magro PO Box 6745 Traverse City MI 49696RGH6185454,636.84$ 120 E StoryRudolf DietrichCarol Dietrich120 E StoryBozeman MT 59715 57.045,877.45$ 57.04121 E StoryRobert HullStephanie Hull121 E StoryBozeman MT 59715RGH189343.54,482.28$ 43.5130 E StoryCraig Edsall Vicki Devantier148 Teakwood Bozeman MT 59718RGH250343.054,435.91$ 43.05132 E StoryJohn Mills Sandra Barry1234 Bear Canyon Rd Bozeman MT 59715RGH512543.054,435.91$ 202 E StoryMark Pence Jill Pence202 E StoryBozeman MT 59715RGH1193606,182.45$ 60208 E StoryLyle Happel4700 Gooch Hill Bozeman MT 59715RGH3223505,152.04$ 50211 E StoryMaurice Jones Life EstateWillene Koskic/CO LRD COPO Box 1073 Bozeman MT 59771RGH3707757,728.06$ 214 E StoryMarvin Cowdry MJC Story LLC32300 E Frontage Rd Bozeman MT 59715RGH214694.939,781.67$ 219 E StoryAmy Aldrich219 E StoryBozeman MT 59715RGH595276.87,913.54$ 223 E StoryJeffrey Yeaton Susan Anderson5411 White Pl Boulder CO 80303RGH1595606,182.45$ 301 E StoryBrit Fontenot Kristina Allison301 E StoryBozeman MT 59715RGH666754.85,646.64$ 305 E StoryAndrew HoganJenna Hogan305 E StoryBozeman MT 59715RGH241654.85,646.64$ 54.8306 E StoryRoss Family TrustPO Box 663 Havre MT 59501RGH526010010,304.09$ 313 E StoryHomes 4 RentRandy & Joy White 25 Rodeo Ct Bozeman MT 59718RGH518292.459,526.13$ 314 E StoryH. P. Hall, JR314 E Story #1Bozeman MT 59715RGH119274.577,683.76$ 74.57315 E StoryCity of BozemanPO Box 1230Bozeman MT 59771303,091.23$ 318 E StoryCity of BozemanPO Box 1230Bozeman MT 59771303,091.23$ 404 E StoryEdward Steinhauer410 E StoryBozeman MT 59715RGH418752.55,409.64$ 52.5405 E StoryMargaret Kinsey405 E StoryBozeman MT 59715RGH385656.55,821.81$ 56.5409 E StoryNellie McCallum Living TrustBruce & Mary McCallum 412 Bogert PlBozeman MT 59715RGH5545545,564.21$ 54410 E StoryEdward Steinhauer410 E StoryBozeman MT 59715RGH5391737,521.98$ 73413 E StoryRobert Burton413 E StoryBozeman MT 59715 RGH1859545,564.21$ 54416 E StoryMary Vant Hull416 E StoryBozeman MT 59715RGH6235747,625.02$ 74417 E StoryRobert Ament417 E StoryBozeman MT 59715RGH2279545,564.21$ 420 E StoryStephen Van Slyke C/O Hillary Robinson 420 E StoryBozeman MT 59715RGH1362747,625.02$ 74421 E StoryHarold McReynolds2270 Axtell Anceny Rd Bozeman MT 59717RGH4056545,564.21$ 425 E StoryNeal Ross425 E StoryBozeman MT 59715RGH5259545,564.21$ 54428 E StoryThomas AsburyWendy Roberts428 E StoryBozeman MT 59715RGH36519910,201.04$ 99429 E Story Family Promise of Gallatin ValleyPO Box 475 Bozeman MT 59771RGH1558505,152.04$ TOTALS3010.34310,188.00$ 1336.96172