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Home My WebLink AboutC12. Resolution 4682 Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: David Fine, Economic Development Specialist SUBJECT: Resolution 4682 amending the Fiscal Year 2016 (FY16) Bozeman Midtown (Formerly North Seventh) Tax Increment Finance District Fund Budget to Include Additional Expenditures of $150,000 for increased costs and change orders related to the completion of Phase 2 of the North Seventh Lighting and Sidewalk Project. MEETING DATE: March 21, 2016 AGENDA ITEM TYPE: Consent RECOMMENDATIONS: Staff recommends adoption of Resolution 4682. The Bozeman Midtown Urban Renewal Board (previously known as the North Seventh Urban Renewal Board) unanimously approved a motion to amend the board’s proposed work plan and budget for the urban renewal district to include additional expenditures in support of Phase 2 of this project. SUGGESTED MOTION: Having conducted a public hearing, considered written and spoken public testimony, and based on the findings contained in this and other related staff memoranda, the recommendation of the North Seventh Urban Renewal Board, the content of Resolution No. 4682 and findings articulated by the Commission during discussion, I hereby move to adopt Resolution No. 4682. BACKGROUND: The Lighting and Sidewalk Project is the highest priority project for the Midtown Urban Renewal Board (MURB). The budget approved by this board, presented to the City Commission on June 1, 2015, included the engineering estimate for the project of $551,955 with no allowance made for contingencies. A bid request for the project was in process at the time of the presentation. Staff received a single bid for the project from Montana Lines, Inc. for $584,873.38 (6% over the engineering estimate). The MURB elected to proceed with the project. 157 Additionally, the MURB expected change orders for this project to add lights and sidewalks as right of way easements are acquired from a few additional property owners throughout the summer. The proposed budget amendment reflects the following changes and additions: Bid Amount over originally budgeted amount. $ 32,878.38 MOU with Gallatin Valley Furniture (GVFC1) for sign replacement $ 20,000.00 C.O. Northwestern Energy requested larger electrical conduit $ 7,226.45 C.O. Fix photocells on existing lights and install 2 new meters $ 7,320.00 C.O. Per MOU with GVFC1 fix grade and sidewalk drainage issues $ 68,678.00 Miscellaneous Contingency Budget Authority $13,897.17 TOTAL $150,000 UNRESOLVED ISSUES: As the project is not complete, additional change orders or unknown issues may impact the total project budget. The project engineer believes that the contingency amount requested should cover these unforeseen costs. ALTERNATIVES: As determined by the Commission. FISCAL EFFECTS: The current budget estimates forcasts that the Midtown Urban Renewal District should have $1,118,738 in unused cash reserves in its increment fund. The proposed budget amendment would reduce the projected ending balance to $968,738 at the end of FY 2016. Links: Report prepared on March 3, 2016. 158 - 1 - NOTICE OF PUBLIC HEARING FOR BUDGET AMENDMENT NOTICE IS HEREBY GIVEN that, pursuant to the provisions of Section 7-6-4021, Montana Code Annotated, the City Commission of the City of Bozeman, Montana will conduct a public hearing on amending the municipal budget for Fiscal Year 2015-2016, embodied in Commission Resolution No. 4682, at 6:00 pm on Monday, March 21st, at City Hall, 121 N. Rouse Avenue, Bozeman, Montana. A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, AMENDING FISCAL YEAR 2016 (FY16) BOZEMAN MIDTOWN (FORMERLY NORTH SEVENTH) TAX INCREMENT FINANCE DISTRICT FUND BUDGET TO INCLUDE ADDITIONAL EXPENDITURES OF $150,000 FOR INCREASED COSTS AND CHANGE ORDERS RELATED TO THE COMPLETION OF PHASE 2 OF THE NORTH SEVENTH LIGHTING AND SIDEWALK PROJECT Copies of Commission Resolution No. 4682 are on file in the office of the City Clerk, City Hall, 121 N. Rouse Avenue, and may be examined by all interested citizens. Any and all interested persons are invited to attend the public hearing and to submit testimony in support or in opposition to the proposed budget amendment or to submit written testimony prior to or during the public hearing. Written testimony can be submitted to the Acting City Clerk, agenda@bozeman.net, PO Box 1230, Bozeman, Montana 59771. If you have a disability that requires assistance, please contact the City of Bozeman’s Interim ADA Coordinator, Chuck Winn, cwinn@bozeman.net, at 582-3232 (TDD 582-2301). If you have questions about the budget proposal, please contact Administrative Services Director Anna Rosenberry, arosenberry@bozeman.net at 582-2325. Dated this 8TH day of MARCH, 2016 __________________________________ Pearl Michalson, Acting City Clerk Legal Ad Publish: Sunday, Mar 13, 2016 Sunday, Mar 20, 2016 159 - 2 - COMMISSION RESOLUTION NO. 4682 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, AMENDING FISCAL YEAR 2016 (FY16) BOZEMAN MIDTOWN (FORMERLY NORTH 7TH) TAX INCREMENT FINANCE DISTRICT FUND BUDGET TO INCLUDE ADDITIONAL EXPENDITURES OF $150,000 FOR INCREASED COSTS AND CHANGE ORDERS RELATED TO THE COMPLETION OF PHASE 2 OF THE NORTH SEVENTH LIGHTING AND SIDEWALK PROJECT WHEREAS, on June 1, 2015, the North 7th Urban Renewal District (the District ) presented their annual work-plan report and budget request for Fiscal Year 2016 to the City Commission; and WHEREAS, the City Commission exercises its authority to adopt budgets and authorize expenditures for the District in accordance with Montana Code Annotated 7-15-4281; and WHEREAS, the City Commission did, on the 23rd day of June, 2015, after due and proper legal notice conduct a public hearing on and adopt Resolution No. 4602 - A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, APPROPRIATING FUNDS FOR VARIOUS BUDGET UNITS, AND FURTHER ESTIMATING REVENUE NECESSARY TO OPERATE AND MAINTAIN SERVICES OF MUNICIPAL GOVERNMENT FOR THE FISCAL YEAR ENDING JUNE 30, 2016; and WHEREAS, on December 14, 2015, the City Commission did adopt Resolution No. 4644 – amending the Fiscal Year 2016 North 7th Tax Increment Finance District Budget to include Additional Expenditures of $554,000 for Constructing a City-Owned Conduit System to Incentivize the Provision of Next Generation Fiber Optic Telecommunication Facilities by the Private Sector within the Urban Renewal District; and 160 - 3 - WHEREAS, on November 16, 2015, the City Commission changed the name of the North Seventh Urban Renewal District to the Bozeman Midtown Urban Renewal District, pursuant to Ordinance 1925 with an effective date of December 17, 2016; and WHEREAS, on March 1, 2015 the District approved a motion to further amend the work-plan and budget to include $150,000 for increased costs and change orders related to the completion of Phase 2 of the North Seventh Lighting and Sidewalk Project; and WHEREAS, the North 7th Tax Increment Finance District Special Revenue Funds are to be expended on projects included in the North 7th Urban Renewal District’s work-plan, to benefit the District; and WHEREAS, the City Commission did, on the 14 day of March, 2016, after due and proper legal notice, conduct a public hearing on the proposed budget amendments. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, to wit: Section 1 – Appropriation Additions The City Commission of the City of Bozeman, Montana, does hereby authorize additional expenditures within the North 7th Tax Increment District Fund in Fiscal Year 2015 in the following amounts: North 7th Tax Increment District Fund - 143: Cost increases and change orders related to the N. 7th Lighting and Sidewalk Project $ 150,000 GRAND TOTAL – Additional Appropriations $ 150,000 161 - 4 - Section 2 – Use of Fund Reserves The increased appropriations shall be funded from un-used cash reserves in the North 7th Tax Increment District Fund. Amended appropriations include capital carry-over items from FY15, in accordance with Resolution No. 4602, and the amendment contained in Resolution No 4644. Current Beginning and Ending Reserves estimates are as follows: Beginning FY16 Estimated Revenues Amended Appropriations Amended FY16 Ending Balance $2,045,705 $728,013 $1,804,980 $968,738 Section 3 Pursuant to Section 7-6-4030, M.C.A., this resolution, upon its passage, shall be in full force and effect on July 1, 2015. Section 4 That should it be found by any court of competent jurisdiction that any section, clause, portion, sentence, word, or phrase of this resolution is deemed to be contrary to any existing law or regulations, that in this instance, it is the intent of the City Commission of the City of Bozeman, Montana, that all other portions, sections, words, clauses, phrases, or paragraphs of this document shall remain in full force and effect. PASSED AND APPROVED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 21st day of March, 2016. ________________________________________ CARSON TAYLOR Mayor ATTEST: _____________________________________ STACY ULMEN, CMC City Clerk APPROVED AS TO FORM: ________________________________________ GREG SULLIVAN City Attorney 162