Consent 1.B.
Regular City Council Meeting
- Meeting Date:
- 11/09/2015
- TITLE
- Convey Developer Contribution to Montana Department of Transportation for Bench Boulevard
- PRESENTED BY:
- David Mumford
- Department:
- Public Works
Presentation:
PROBLEM/ISSUE STATEMENT
The City requires developers who develop new subdivisions adjacent to major streets to improve those streets or to contribute cash in lieu of constructing them. The City accepts cash in lieu of street construction where the required improvements would be difficult or impossible to construct given the condition of the street in that location. A subdivision improvements agreement (SIA) is created for each subdivision and it defines the infrastructure that the cash is to be used to construct in the future. These SIAs are typically very detailed and in the case of one of them, the cash must be used to construct Bench Boulevard. Because MDT is constructing the Bench Boulevard improvements, the City staff is proposing to transfer the funds from the Kingston Place Subdivision in the amount of $64,788.05 to MDT to be used for the project. Kingston Place is located at Bench and Wicks. The SIA requires that the money be used to construct Bench Boulevard, so the City cannot use the funds In a different location. By conveying the funds to MDT, they will be used for the purpose defined in the SIA.
ALTERNATIVES ANALYZED
City Council may:
- Approve the transfer of funds to MDT for the construction of Bench Boulevard, or;
- Disapprove the transfer of the funds. If the funds are not transferred to MDT, they will either continue to be held in an account until further improvements are made to Bench Boulevard, which could be many years given the scope of MDT's project, or the money could be returned to the developer of the subdivision.
FINANCIAL IMPACT
If the funds are transferred to MDT, they will be used to construct Bench Boulevard. In effect, this will free up MDT funds for other projects. If they are not transferred, they will either be held in an account until further improvements are required on Bench Boulevard, which is likely beyond the twenty year planning horizon for the street, or be returned to the developer. A second quarter budget amendment will be done if this is approved by council.
RECOMMENDATION
Staff recommends that a developer contribution in the amount of $64,788.05 be transferred to MDT for use on the Bench Boulevard project.