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HomeMy WebLinkAboutC5. PSA KLJ1 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Brit Fontenot, Director of Economic Development SUBJECT: Professional Services Agreement with KLJ Engineering for Engineering Services in the Northeast Urban Renewal District for a Term of Three Years MEETING DATE: August 17, 2015 AGENDA ITEM TYPE: Consent RECOMMENDATION: Authorize the City Manager to Sign a Professional Services Agreement with KLJ Engineering for Engineering Services in the Northeast Urban Renewal District for a Term of Three Years BACKGROUND: In the early summer of 2015, after a request for qualifications and selection process, the Northeast Urban Renewal District Board selected KLJ Engineers as the preferred firm to work with and assist the Board in prioritizing, planning and executing on multiple projects within the District. On August 4, 2015 at its regularly scheduled meeting, the Northeast Urban Renewal voted unanimously to recommend to the City Commission to authorize the City Manager to sign a professional services agreement with KLJ Engineering for engineering services in the Northeast Urban Renewal District for a term of three years. (Attachment 1) UNRESOLVED ISSUES: None at this time. ALTERNATIVES As directed by the Commission. FISCAL EFFECTS 95 2 The District presented its FY16 Budget to the Commission June 1, 2015. The budget was approved through the regular budget process. (Attachment 2) ATTACHMENTS: 1) Professional Services Agreement with KLJ Engineering for Engineering Services in the Northeast Urban Renewal District for a Term of Three Years; and 2) Northeast Urban Renewal District FY 16 Budget. Report prepared on August 6, 2015 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 1 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Brit Fontenot, Director of Economic Development SUBJECT: Northeast Urban Renewal Board FY 16 Work Plan and Budget DATE: June 1, 2015 AGENDA ITEM TYPE: Action RECOMMENDATION: Review the attached materials, listen to the Board presentation, ask questions and provide direction on the proposed FY 16 Northeast Urban Renewal Board (NURB) Work Plan and Budget. (EXHIBITS 1 - 4) If approved by the City Commission, the NURB FY 16 Work Plan and Budget Proposal will be adopted as part of the City of Bozeman’s FY16 Budget. BACKGROUND: On May 5, 2015 the Northeast Urban Renewal Board unanimously approved the attached FY16 work plan and budget. The total amount of budgeted money for FY 16 is $501,800 (including carry over from previous years and not including the undesignated reserve). FY 16 Proposed Budget Summary: Priority I $ 95,000 Priority II $ 243,002 Priority III $ 40,000 Staff time $ 10,000 Noticing and Administrative Services $ 33,000 Undesignated Reserve $ 80,798 Budget Total $ 501,800 The NURB proposes a work plan and budget and submits a report on an annual basis per Section 7-15-4237 of the 2009 Montana Code Annotated (MCA): 113 2 (1) An agency authorized to transact business and exercise powers under this part and part 43 shall file with the local governing body, on or before September 30 of each year, a report of its activities for the preceding fiscal year. (2) The report shall include a complete financial statement setting forth its assets, liabilities, income, and operating expenses as of the end of the fiscal year. UNRESOLVED ISSUES: State-wide Reappraisal of Property Values In November the City received preliminary data for the property reappraisal that the State of Montana is conducting and implementing for our FY16 fiscal year (2015 tax year). We will not receive the final Certified Taxable Values until July 2015; this necessitates using the preliminary information for a calculation of property tax levies in our budget. The State has projected a dramatic decrease in assessed values for both commercial (19.25% decrease) and residential (3.52% decrease) property in Bozeman. They attribute this change to the timing of appraisal cycles and the Great Recession. Under existing laws, the City is both allowed and required to increase its number of mills in order to off-set decreased tax dollar collections that come about from decreased assessed property values. The State estimates that the value of one mill, levied city-wide after Tax Increments are excluded, will be $80,331 in FY16. This represents an 8.6% decrease in the city’s mill value in FY15. For levies that are required to be established at certain dollar values (i.e. debt service), we will need to raise our mills to bring in the same number of dollars. For levies that were approved at set mill amounts (i.e. Fire Capital & Equipment levy), we will yield fewer dollars due to reappraisal. FISCAL EFFECTS: Statewide reappraisal will have a negative impact on the value of the District. If approved by the City Commission, the NURB FY 16 Work Plan and Budget Proposal will be adopted as part of the City of Bozeman Annual Budget Exhibits: 1. NURB FY 16 Proposed Work Plan; 2. NURB FY 16 Proposed Budget; 3. May 5, 2015 NURB Meeting Minutes; and 4. Map of the NURD. Report compiled on: May 21, 2015 114 Northeast Urban Renewal Board Annual Work Plan and Budget FY16 1 59771 NORTHEAST URBAN RENEWAL BOARD BUDGET FY 2016 PROPOSAL TO THE BOZEMAN CITY COMMISSION In 2005, the Bozeman City Commission adopted Ordinance No. 1655 which formally enacted the Northeast Urban Renewal Plan. The stated mission of the plan and general goals are as follows: DISTRICT PLAN MISSION/VISION “This Plan is the City’s response to remedy the conditions of blight found in the August 2005 [Blight] Report. The Plan also addresses other issues important to the District. The Plan’s purpose is to ensure the vitality of the Northeast Urban Renewal District (NURD) the vitality of the NURD for generations to come and to make the NURD an area in which its citizens can take exceptional pride. The Plan envisions a mixed use neighborhood that is user friendly, safe, secure and healthy. While this Plan envisions a District with diversity of housing businesses and amenities, it intends to maintain the unique ambiance and historic character of the District”. Nine principles were developed for the plan. Each of the principles has one or more goals associated with the plan, some of which specifically relate to this work plan while others represent general objectives and directives. The Northeast Urban Renewal Board (NURB) goals are as follows: GENERAL GOALS:  Outdated or insufficient infrastructure should be repaired, replaced, or otherwise improved.  Provide public utilities to the area efficiently in ways that are not visually or physically obtrusive.  Encourage a land use pattern that facilitates all modes of transportation – vehicular, bicycle, pedestrian, mass transit, and commercial – for safe, efficient and convenient access for residential, commercial, and industrial uses.  Harmonize commercial and industrial development with residential quality of life.  New structures should be designed and built keeping in mind the public values of durability, flexibility, and simplicity. Thoughtful consideration of design, materials, and massing in the construction of new private buildings will add strength and character to the built environment. To the degree that the private sector can be influenced by a public partner in development, the community ought to strongly encourage excellence in urban design as a basis of partnership.  Promote sustainable building practices and design within the district  Procure new land for park and open space  Improve landscaping in existing public spaces  Neither the City of Bozeman nor any of its subdivisions shall use eminent domain to take private property for private use in the implementation of an urban renewal project or similar redevelopment plan. 115 Northeast Urban Renewal Board Annual Work Plan and Budget FY16 2  Encourage the City to help ensure the success of the Northeast Urban Renewal Plan by giving a high priority to the Northeast District in its capital improvements plan.  Work with neighborhoods and businesses to ensure actions taken in the district are compatible with adjacent developed areas.  Work with the City to ensure actions taken outside of the District are compatible with projects inside of the District BACKGROUND In 2010, the Northeast Urban Renewal Board began implementing plans and projects reflecting their three funding priorities: 1) Parks, Trails and Greenspace; 2) Infrastructure and 3) Neighborhood Development Plan. 2015 AT-A-GLANCE In FY 2015, the Board continued to work on these priorities. With assistance from Morrison- Maierle, the final special design standards for East Tamarack Street/Front Street/North Ida Avenue within the district have been completed. The next step in the process will be the consulting engineer, City staff and this Board shepherding an ordinance adopting these standards as well as the special design standards for East Peach Street through the review and approval process. The Board continued to demonstrate its commitment to preserving the District’s historic character by monitoring any proposals that might impact historic properties; and it was particularly frustrated by demolition of the Brewery Wall on North Wallace Avenue because of the negative impacts that its demolition may have on the Brewery Historic District. The Board also continued to monitor any potential for preservation and possible re-use of the Depot. The Board is vigilant in monitoring new proposed development within the District, to ensure its compatibility with the historic mixed use character of the area. MOVING FORWARD – FY2016 The Board continues to support opportunities to work with Montana Rail Link and Burlington Northern Santa Fe on preservation and rehabilitation projects for the passenger depot. Additional TIF funding has been contributed to the Pedestrian Bridge project. The Board plans to actively pursue the issuance of bonds to fund construction of the East Peach Street and East Tamarack Street improvements in accordance with the special design standards once they are adopted by the City Commission. During a presentation to the Board, Director of Public Service Craig Woolard identified improvements to North Wallace Avenue as one of the community’s highest priorities, particularly with the impending improvements to North Rouse Avenue and development of the Story Mill Park. The Board has agreed to work with City staff and a consulting engineer on special design standards for those improvements. The Board will commit funds to cover the costs of designing improvements within the district boundaries and, if a special improvement district for the entire project is created, is willing to commit tax increment funds to cover the costs of those assessments for impacted property owners within the district. The Board continues to be interested in improvements to the East Peach Street and East Tamarack Street bridges in a manner that demarcates the entrance ways to this district. The Board has also continued to add monies to the budget for construction of a pedestrian bridge across Bozeman Creek 116 Northeast Urban Renewal Board Annual Work Plan and Budget FY16 3 at a location yet to be determined (but probably about mid-point between East Tamarack Street and East Peach Street); and has set aside additional monies to undertake that project during this fiscal year. Also, a lighting study and plan are to be undertaken this fiscal year. The study is to be two-pronged, and the plan is to include both a short-term option to retrofit existing street lights to include dark skies compliant heads and a long-term option that includes the installation of new street lights unique to this district and that just meet minimum public safety standards without negatively impacting the current character of the district. PRIORITIES I, II & III– IN DETAIL I. PARKS, TRAILS AND GREENSPACE District Trails and Depot Pocket Park Area Maintenance $ 5,000 The original trail, landscaping and bench installation were completed in 2012. Landscaping maintenance, including mowing and weed spraying, is on-going. Water is provided, as needed, from an adjacent property. The Board proposes continuing the operation of the temporary irrigation system, weed control and general maintenance. Weed control and general maintenance may also be needed in other District trail areas. The Board is considering additional irrigation improvements to enhance maintenance possibilities as well as an aggressive program to eliminate knapweed in the East Aspen Street right-of-way. Front Street Trail Extension $ 20,000 The Gallatin Valley Land Trust (GVLT) has presented its plan to construct a trail extension from North Rouse Avenue along the existing Front Street right-of-way to North Wallace Avenue, connecting to the existing depot trail, which is located within this urban renewal district. This trail segment connects the pedestrian way that runs along Oak Street between North 7th Avenue and North Rouse Avenue with both the depot trail and the Story Mill pathway. Because of the benefit this trail extension will provide for this district, this budgeted amount is a donation of up to $20,000 for the final capital allocation needed to complete the project in Fiscal Year 2016. Pedestrian Bridge $ 60,000 Board members previously identified the need for a pedestrian bridge at the terminus of East Aspen Street and the North Church Avenue trail east of North Rouse Avenue. East Aspen Street comes to an end at Bozeman Creek. The use along this section of East Aspen Street is largely residential with a retail store (butcher shop) at the southeast corner of North Rouse Avenue and East Aspen Street. During FY11, the NURB received positive feedback from the Northeast Neighborhood Association (NENA) on the project and Gaston Engineering completed a feasibility study and cost estimates. Construction of the bridge is estimated between $52,470 and $57,715. While the budgeted amount is for construction, the Board has previously determined it might be appropriate to use a small portion of the monies to host a design competition for the bridge as an option to purchasing and installing a prefabricated bridge. The NURB has continued to increase the monies budgeted for this project over the past few years and now has sufficient monies to cover the total costs of bridge installation. In light of the presentation from the 117 Northeast Urban Renewal Board Annual Work Plan and Budget FY16 4 Bozeman Creek Enhancement Committee a couple of years ago, the Board has determined it wishes to leave its options for location of the pedestrian bridge open, thus ensuring the best pedestrian crossing can be provided. Streambank Restoration $ 10,000 The Board recognizes the importance of enhancing the natural amenities within the district, including the Bozeman Creek corridor. The Bozeman Creek Enhancement Committee has studied the entire length of the creek as it runs through the city, and has assigned a category to each segment of the creek based on its current state and the level of desired improvements. The Board has set aside monies to use as a match for those property owners wishing to enhance the streambank adjacent to their properties. It recognizes that a portion of these monies may need to be used in conjunction with installation of the pedestrian bridge budgeted above. Priority I Total $ 95,000 Priority I Rationale: The park, trail and greenspace improvements meet Guiding Principle 4 and Goals A & B under Principle 4 of the adopted Northeast Urban Renewal District Plan: • Guiding Principle, “Public open space is essential to a healthy and appealing urban environment” • Goal A, “Procure new land for parks and public open space” • Goal B, “Improve landscaping in existing public spaces.”- to include enhancing boulevards and public rights-of-way by planting and maintaining trees where appropriate and controlling weeds The spending of TIF funds on park and open space improvements is allowed under 7-15-4255, Authority to provide or contract for services related to urban renewal, of the Montana Code Annotated. Specifically, item (1b) states that “Every municipality shall have power to install, construct, and reconstruct streets, utilities, parks, playgrounds, and other public improvements” II. INFRASTRUCTURE Poor pedestrian connectivity within the District is well documented. Lack of street improvements including missing curb, gutter, pavement and sidewalks creates an unwelcoming and potentially unsafe environment for pedestrians and bicyclists. A lack of stormwater drainage facilities leads to the ponding of water in public rights-of-way, encouraging pedestrians to walk in the street and emphasizing the need for street improvements. The District has a historic mix of light manufacturing and residential uses creating a more urban environment on the streets, especially during business hours. Modest improvements to pedestrian facilities to create safer more welcoming routes for pedestrians will reduce conflict between users. The lack of street delineation/improvements and stormwater facilities has caused an unknown number of individuals to use some sections of the District as dumping grounds for unwanted appliances and furniture. Street improvements coupled with improvements to trails and parks and the landscaping of public spaces will improve conditions for pedestrians and bicyclists and reduce, if not eliminate, dumping in the public right-of-way. 118 Northeast Urban Renewal Board Annual Work Plan and Budget FY16 5 Making improvements to sidewalks on unimproved streets comes with some difficulty especially if elevation differences are present across the width of the right-of-way and if a need to improve stormwater drainage is warranted as well. What seems like a rather simple project turns into a large scale street improvement project. Without additional information, moving forward on these improvements is difficult, so survey and design is the first step. Regarding design, the Board recognizes that creative solutions are needed to enhance the public right-of-way for two very different user types in the District. In support of improvements to these streets, the Board has allocated a portion of the budget to the following deficient street sections in the District: East Peach Street – Sidewalks, Storm Water control, Landscaping Construction $ 88,912 Survey and the design for East Peach Street improvements have been completed. The Board approved the design in November 2011. The Pedestrian and Traffic Safety Board and the Bozeman Area Transportation Coordinating Committee have reviewed the proposed design standard. The Commission has approved the design, but it has not yet been adopted by ordinance. The monies remaining in this line item after the design has been completed and adopted will be used for street improvements. East Tamarack Street, Front Street and North Ida Avenue Construction $ 89,090 Morrison-Maierle has completed the survey and design for these special street standards; and this Board approved those designs at its September 2014 meeting. The final design is to be submitted to advisory boards for comment and then to the Commission for its action. After the Commission approves the design standards for these roadways, the next step will be preparation of an ordinance that adopts the special design standards for these roadways and those for East Peach Street. The monies remaining in this line item after the design has been adopted will be used for street improvements. North Wallace Avenue Engineering/Design $ 25,000 Because of its existing condition and the impending North Rouse Avenue reconstruction project, the Director of Public Service has identified reconstruction of North Wallace Avenue between East Lamme Street and L Street as a high priority. These monies will cover the costs of engineering services to design the improvements for that portion of the roadway lying within the district boundaries; and the Director of Public Service has committed a similar amount of monies to cover the design costs outside this district. Entranceway Enhancements $ 20,000 For years, the Board has felt enhancing the rights-of-way that enter the District, providing visual or aesthetic enhancement, is important. During presentation of the East Tamarack Street special design standards, the potential for implementing some pedestrian enhancements on the bridge was identified, particularly in light of the additional right-of-way width at the bridge. The Board recognizes that, in addition to the East Tamarack Street bridge, the East Peach Street bridge 119 Northeast Urban Renewal Board Annual Work Plan and Budget FY16 6 would lend itself to similar enhancements. The Board stresses, however, that these are only two of several entrances to the District and that all points of entry should be considered. East Aspen Street right-of-way survey between North Rouse Avenue and Bozeman Creek $ 10,000 The Board realizes that the right-of-way for East Aspen Street and the location of the street within that right-of-way need to be identified in light of the potential for future infrastructure improvements. Since this is an older part of town, original corner pins are typically not easily found. A survey will identify the edges of the street right-of-way and make future street improvements easier to design as well as allow property owners to know exactly where their property lines are located. This information may also help with the future improvements to North Rouse Avenue. Street lighting study $ 10,000 The existing street lights within the district are outdated and do not meet the dark skies standards set forth under the guiding principles, goals and implementation actions. A request for proposals will result in the selection of a consultant to assist with both updating the current light fixtures to meet dark skies standards and developing a comprehensive street lighting plan for the district. Priority II Total $ 243,002 Priority II Rationale: The infrastructure improvements meet Guiding Principle 1 and Goals A & B under Principle 1 of the adopted Northeast Urban Renewal District Plan: • Guiding Principle, “Ensure the health, safety, and security of the District” • Goal A, “Outdated or insufficient infrastructure should be repaired, replaced or otherwise improved.” • Goal B, “Encourage a land use pattern that facilitates all modes of transportation – vehicular, bicycle, pedestrian, mass transit, and commercial – for safe, efficient and convenient access for residential, commercial, and industrial uses.” The spending of TIF funds on infrastructure improvements is allowed under Section 7-15-4288, MCA which states, “Costs that may be paid by tax increment financing” allows the municipality to use tax increments to pay the following costs of or incurred in connection with an urban renewal project: (1) land acquisition; (2) demolition and removal of structures; (3) relocation of occupants; (4) the acquisition, construction, and improvement of infrastructure;… and 5) costs incurred in connection with the redevelopment activities allowed under 7-15-4233… III. NEIGHBORHOOD DEVELOPMENT PLANNING Redevelopment Incentives $ 25,000 The NURB has set aside funds to offset the costs of upgrading public infrastructure in conjunction with redevelopment activities which implement the District’s guiding principles emphasized in the District’s Neighborhood Plan. To date, no one has applied for use of these funds, so the Board is trying to find ways to encourage use of the program. 120 Northeast Urban Renewal Board Annual Work Plan and Budget FY16 7 Depot Rehabilitation Project $ 15,000 The Northeast Urban Renewal Board recognizes the importance of the depot within the district. Stabilization of the depot was accomplished this year through the use of private funds and private labor to reroof the building. If permission can be obtained from the railroad, the Board has expressed its strong interest in taking any necessary steps to preserve and rehabilitate the structure. Priority III Total $ 40,000 Priority III Rationale: Neighborhood Development Planning meets Guiding Principle 2 and the Goal under Principle 2 of the adopted Northeast Urban Renewal District Plan: • Guiding Principles, “Balance commerce and livability in the District within the mixed- use framework” AND “Honor the unique character and vitality of the District” • Goal, “Harmonize commercial and industrial development with residential quality of life” • Implementation Action, “Where historic structures are affected by public or private development, seek out the advice and assistance of local, state, or federal historic preservation professionals for opportunities to renovate existing historic structures.” This funding proposal is for Neighborhood Plan implementation activities which are meant to encourage developers to build on parcels within the Northeast Urban Renewal District. It recognizes the complexities of redeveloping parcels which have existing substandard buildings and infrastructure and was created to offset the costs of those complexities with grants for those proposing work which eliminates blight and advances the implementation of the District Plan. Board proposes to award grants to reimburse developers for costs allowable under Section 7-15- 4288, MCA, but limited to public infrastructure. These proposed expenditures are allowable under Section 7-15-4233, subsection (1)(a), MCA, which grants the City the power to formulate and coordinate a workable program as specified in Section 7-15-4209, MCA, which states : (1) A municipality may formulate a workable program for utilizing appropriate private and public resources: (a) to eliminate and prevent the development or spread of blighted areas; (b) to encourage needed urban rehabilitation; (c) to provide for the redevelopment of such areas; or (d) to undertake such of the aforesaid activities or other feasible municipal activities as may be suitably employed to achieve the objectives of such workable program. (2) Such workable program may include, without limitation, provision for: (b) the rehabilitation of blighted areas or portions thereof by re-planning, removing congestion, providing parks, playgrounds, and other public improvements; by encouraging voluntary 121 Northeast Urban Renewal Board Annual Work Plan and Budget FY16 8 rehabilitation; and by compelling the repair and rehabilitation of deteriorated or deteriorating structures; and (c) the clearance and redevelopment of blighted areas or portions thereof. Additionally, Section 7-15-4288, MCA states, “Costs that may be paid by tax increment financing” allows the municipality to use tax increments to pay the following costs of or incurred in connection with an urban renewal project: (1) land acquisition; (2) demolition and removal of structures; (3) relocation of occupants; (4) the acquisition, construction, and improvement of infrastructure;… and 5) costs incurred in connection with the redevelopment activities allowed under 7-15-4233… IV. ADMINISTRATION Part-time staff and other Administrative Services $ 13,000 The Board needs staff to assist with District Plan implementation. $10,000 is to be transferred to the Economic Development Division to offset the cost of staff time used to assist the NURB with District Plan implementation. $3,000 is budgeted to cover administrative services. This money is a permissible use under state statute 7-15-4288, (5), “costs incurred in connection with the redevelopment activities allowed under 7-15-4233 and 7-15-4288 (7) “administrative costs associated with the managements of the urban renewal area…” The Board has requested money for public noticing and mailings in the District. The purpose of the noticing and mailings is to inform property owners about and request feedback on NURB implementation and activities. This money is a permissible use under state statute 7-15-4233, “Powers which may be exercised by urban renewal agency or authorized department…(f) to disseminate blight clearance and urban renewal information;” Bond Counsel services $ 30,000 The Board has determined the most effective way to accomplish the street improvements on East Peach Street and East Tamarack Street/Front Street/North Ida Avenue is through the issuance of bonds. The first step in the sale of bonds is the retention of bond counsel to ensure State statutes are met and to provide ease in the process of selling bonds. The upfront costs of the bond issue must be covered prior to the sale of bonds. This process will not be undertaken until after the reappraisal figures are released, which is anticipated in August. Section 7-15-4290, MCA states “(1)(a) The tax increment derived from an urban renewal area may be pledged for the payment of revenue bonds issued for urban renewal projects or of general obligation bonds, revenue bonds or special assessment bonds issued to pay urban renewal costs described in 7-15-4288 and 7-15-4289.” Undesignated Reserve $ 80,798 Not all of the monies received to date have been budgeted, and the Board has not earmarked all of the monies received to date plus the anticipated FY16 revenues. As a result, the balance is 122 Northeast Urban Renewal Board Annual Work Plan and Budget FY16 9 being placed in an Undesignated Reserve, with those monies to be used to cover any shortages in funding for items listed above. Because it is anticipated that the property reappraisal will result in lowered values, the amount of revenues projected for FY16 is approximately 85 percent of the property tax revenues actually received in FY14 and FY15. Any new information received prior to the City Commission hearing will be forwarded to the Commission, if time allows, or provided at the meeting. SUMMARY: FY 16 PROPOSED BUDGET Priority I $ 95,000 Priority II $ 243,002 Priority III $ 40,000 Staff time $ 10,000 Noticing and Administrative Services $ 33,000 Undesignated Reserve $ 80,798 Overall Budget Total $ 501,800 123 Revenues:2015-16 Budget Estimated Beginning Balance $415,000.00 FY2015 Tax Increment $85,000.00 Delinquent increment State shared/entitlement Interest $1,800.00 Total Estimated Revenues $501,800.00 Expenditures Budgeted: Trails Maintenance $5,000.00 Front Street trail $20,000.00 Donation Pedestrian Bridge $60,000.00 Added $20,000 this year Streambank Restoration $10,000.00 East Peach Street $88,912.00 East Tamarack/Front/North Ida $89,090.00 North Wallace Avenue $25,000.00 Design costs split with City Bond costs $30,000.00 Dorsey-Whitney Entranceway Enhancements $20,000.00 East Aspen Street ROW survey $10,000.00 Street lighting study $10,000.00 Redevelopment Incentives $25,000.00 Depot Rehabilitation Project $15,000.00 Planning Staff support $10,000.00 Increased to $10,000 per staff request Administrative Services $3,000.00 Increased to $3,000 per staff request Undesignated Reserve $80,798.00 Total Expenditures $501,800.00 Northeast Urban Renewal District 124 NURB Meeting – May 5, 2015 1 Northeast Urban Renewal Board (NURB) Regular Meeting Tuesday, May 5, 2015 The Northeast Urban Renewal Board met in regular meeting at 6:30 p.m. on Tuesday, May 5, 2015, in the Conference Room, Professional Building, 20 East Olive Street, Bozeman, Montana. Present: Absent: Voting Members: Tom Noble, Chair Daniel Doehring (arrived at 6:40 p.m.) Erik Nelson Robert Pavlic Jeanne Wesley-Wiese Non-Voting Members: John Usher Commissioner Liaison: I-Ho Pomeroy Staff: Brit Fontenot, Economic Development Director Robin Sullivan, Recording Secretary Guests: Kevin Jacobsen, Morrison-Maierle John How, KLJ Dustin Johnson, KLJ Chris Nixon, 719 North Wallace Avenue Call to Order – Chair Tom Noble called the meeting to order at 6:35 p.m. Public Comment – No comment was received under this agenda item. Consent Items – Approve minutes from April 7, 2015 meeting. It was moved by Jeanne Wesley- Wiese, by Erik Nelson, that the minutes of the meeting April 7, 2015, be approved as submitted. The motion carried on a 4-0 vote. Discussion/Action Items – Discussion/set budget for Fiscal Year 2015-2016. Recording Secretary Sullivan distributed copies of the draft budget and work plan for Fiscal Year 2015-2016. 125 NURB Meeting – May 5, 2015 2 Chair Noble expressed interest in funding the balance of the Front Street trail project, but stated he does not support funding for a kiosk. He noted that the shortfall is currently estimated at just under $20,000. Erik Nelson suggested the Gallatin Valley Land Trust (GVLT) may be willing to install a sign with the donation, even if it doesn’t fund a kiosk. He then asked where the budget shortfall lies and when the trail is to be completed. Chair Noble stated he does not have a breakdown of the GVLT’s costs for the trail, so does not know where the shortfall lies. Economic Development Director Brit Fontenot stated the GVLT is currently negotiating with Kenyon-Noble regarding removal of their encroachments into the street right-of-way. He noted that a corner of the building may actually be at or in the edge of the right-of-way. Erik Nelson asked if the Board could stipulate its monies are to close the funding gap for the project. Chair Noble stated he would like to make the trail a priority, stating he feels it would be a benefit to this tax increment financing district. In response to questions from John Usher, it was noted that the budgeted monies would not be expended until the project moves forward. Economic Development Director Fontenot noted that the kiosk would be located inside the district boundary if the Board chooses to fund one. He then stated the Board could budget monies as a donation of the final monies needed to complete the project. Jeanne Wesley-Wiese stated information from the GVLT revealed the bridge across the creek will cost just over $62,000, with $3,000 of that to cover the costs of removing debris from the streambank. In light of that information, she suggested that with the addition of $20,000 for the pedestrian bridge project, there would be sufficient monies in the budget to complete that project during this fiscal year. Responding to Chair Noble, the Economic Development Director stated this project could be included in the term contract for engineering services. Dan Doehring noted that, if any streambank restoration is needed in conjunction with installation of the pedestrian bridge, monies in the budget for that purpose could be used. Erik Nelson noted that the draft work plan and budget are the result of Board work over an extended period of time, and he feels the result is sound and should be forwarded to the Commission. 126 NURB Meeting – May 5, 2015 3 Chair Noble voiced his agreement, noting that there is nothing in the work plan that has not been discussed several times. It was moved by Erik Nelson, seconded by Jeanne Wesley-Wiese, that the Board adopt the draft work plan and budget as amended to include an additional $10,000 from the undesignated reserve fund for the Front Street trail and eliminate funding for a kiosk in conjunction with that project. The motion carried on a 5-0 vote. Economic Development Director Brit Fontenot announced that this budget presentation will be made to the Commission at its June 1 meeting and asked Board members to attend that meeting if possible. Miscellaneous discussion. John How, KLJ Engineering, announced that the firm has been selected to look at the conservation overlay districts in the community. As part of the public outreach component, the firm is meeting with as many neighborhood groups and tax increment financing boards as possible to determine what should possibly be added or changed. He then expressed an interest in making a presentation at the Board’s June 2 meeting if it chooses not to cancel that meeting. Economic Development Director Brit Fontenot stated the RFQ for engineering services has been released; and he has received several questions and input about the services to be provided under the contract. He then stressed the City has a specific process to be followed for choosing a firm, which includes a selection committee that is involved at all steps in the review and selection process. He asked that two Board members be included, noting they will serve with someone from the Engineering Department, David Fine and himself. He noted Chair Noble has expressed concern that he may not be able to attend all of the selection committee meetings, but that Erik Nelson has indicated a willingness to serve. Responding to the Director, John Usher voiced an interest in participating on the selection committee. Set agenda for June 2, 2015 meeting or cancel meeting. Chair Noble asked that the presentation from KLJ Engineering be placed on the agenda, along with an update on street lights. Jeanne Wesley-Wiese stated she would like to talk about the railroad crossing, expressing concern about pedestrian safety in light of the Story Mill Park improvements and the new trail connection. Responding to Erik Nelson, Director Fontenot stated he can research possible federal funds for improving the crossing. He cautioned, however, that railroads tend to have a different view of crossings. He suggested one option is to invite Matt Jones, public relations with BNSF, to come to a Board meeting to discuss the crossing concerns. 127 NURB Meeting – May 5, 2015 4 Chair Noble noted the first step may be to engineer the street right-of-way at the railroad crossing to determine how much space may be available. Economic Development Director Fontenot indicated he will be prepared to give an update on the RFP process at next month’s meeting. Chair Noble asked for an update on engaging bond counsel. Director Fontenot responded that the City Attorney has given approval for engaging Dorsey Whitney when the Board is ready to do so. Neighborhood News. Dan Doehring stated more wood chips are needed around the boulder in depot park. Jeanne Wesley-Wiese stated the depot trail needs to be mowed; and there is a lot of garbage in the trail. Chris Nixon announced the NENA meeting is to be held at 7:00 p.m. on Tuesday, May 12, in the Commission Room. He then distributed neighborhood newsletters to Board members. Responding to Jeanne Wesley-Wiese, Director Fontenot stated the Commission expressed some concerns about the survey process that Director of Public Service Woolard has been using as the first step in possibly creating a special improvement district. As a result, he is fine tuning the process he is using to receive property owner feedback. Jeanne Wesley-Wiese noted a lot of misinformation is floating around the neighborhood about the potential special improvement district and the street improvements to be made. Adjournment – 7:15 p.m. There being no further business to come before the Board at this time, Chair Noble adjourned the meeting. Tom Noble, Chair Northeast Urban Renewal Board City of Bozeman 128 129