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Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Chris Kukulski, City Manager
SUBJECT: Library Purchase
MEETING DATE: May 8, 2006
BACKGROUND: On March 13, 2006 Rob Pertzborn of Intrinsic Design presented
information to the City Commission regarding the future re-use of the current city library
property. We had a follow-up discussion during our May 8, 2006 workshop where the
Commission agreed with the direction that we should NOT sell the library in order to most
efficiently deal with serious deficiencies in work space in a variety of departments. We estimate
renovation costs for the structure to be approx. $30 per square foot vs. $200 per square foot for
new construction. That being said, we have NOT concluded who should occupy the current
library and therefore we have contracted with Intrinsic to analyze the library property as a future
police station or city hall.
During our May 8 discussion the Commission unanimously placed there support behind retaining
ownership of the current library. At its most recent appraisal the library was valued at $2.5
million (late 2005) this is up from just over $2.0 million in 2003. Therefore it is in the best
interest of the City to finalize the purchase of the property sooner rather than latter.
Additionally, the library construction fund would benefit from the sale happening ASAP in order
to avoid addition interest which it is paying for the bridge loan it has from the City.
The City of Bozeman’s Annual Appropriation Resolution states:
Section 5
Pursuant to Sections 7-6-4006 and 7-6-4012, M.C.A., the City Commission hereby
delegates appropriation and budget amendment authority to the City Manager for the
expenditures from the following funds: debt service funds; fee-based budgets; trust funds;
federal, state and private grants accepted and approved by the City Commission; special
assessments; monies borrowed during the year; proceeds from sale of land; and funds for gifts or
donations.
Therefore, no budget amendment is necessary. MCA 7-6-4030 states that legal spending limits
are established at the Annual Appropriation Resolution level; at the fund-type level in Bozeman
(as opposed to the line-item level). In the case of the Solid Waste Fund, the Total Approved
Expenditures of $5.7M were authorized for FY06, $4M being transfer-station construction
related. Since the transfer station isn’t being built, there exists $4M in total budget authority that
won’t be used. A transfer-out of $2.5M to the Library Construction fund will not exceed the
total approved expenditures.
RECOMMENDATION: Authorize the City Manager to sign any and all documents
necessary for the City to retain ownership of the existing library located at 220 East Lamme
Street and to utilize $2.5 million in funds from the solid waste reserve account for the purchase
as soon as possible.
FISCAL EFFECTS: $2.5 million will be transferred from the solid waste fund and into
the library construction account.
ALTERNATIVES: As suggested by the City Commission.
Respectfully submitted,
____________________________
Chris A. Kukulski, City Manager
Report compiled on May 11, 2006