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Consent   1.F.
Regular City Council Meeting
Meeting Date:
03/14/2016
TITLE
PROPERTY PURCHASE FOR NEW 911 CENTER
PRESENTED BY:
Paul Dextras
Department:
Fire
Presentation:

PROBLEM/ISSUE STATEMENT

The City of Billings Fire Department oversees and operates the Joint City/County 9-1-1 Communications Center Public Service Answering Point (PSAP). The current facility has very limited space and is not compliant with a number of basic security and fundamental employee amenities. In 1997, the Joint City/County 9-1-1 Advisory Board recommended establishing a building reserve fund from the telephone 9-1-1 fee that is imposed by the State of Montana and transferred to the PSAP. This reserve fund is specifically dedicated for the construction of a new 9-1-1 facility and the cost of the associated technology.  Space needs have been established through a professional consulting contract.  Staff has secured a contingent purchase agreement from a willing seller for property located at 2315-2325 9th Avenue North.  The Council is being asked to approve purchasing this property that will meet the 9-1-1 Center's space, location and communication needs. 

ALTERNATIVES ANALYZED

The City Council may approve or not approve purchasing the properties at 2315 and 2325 9th Avenue N. as a site for a new 9-1-1 Communication Center.

FINANCIAL IMPACT

The balance in the building reserve fund is $3,130,872.  The agreed upon land price is $335,000.  A purchase agreement has been signed, but it contains the usual contingencies and is subject to approval by the City Council no later than March 15.  The building reserve was funded by  9-1-1 line charges imposed by the State of Montana and transferred to the City.  The $3 million reserve will not be enough to construct the proposed building and equip it, so in the future, staff may ask the City Council to authorize selling revenue bonds that are backed by the per-line fee. 

BACKGROUND

Over the past two years the City has been negotiating with the owner of the property located at 2315 and 2325 9th Avenue North, Billings, Montana.  In accordance with City policy, two (2) independent appraisals were commissioned and a third-party appraiser reviewed the two (2) appraisals to determine which appraisal represented the most accurate value of the properties.  The owner offered to sell the property for $335,000, a value that is supported by the appraisals.

The property is described as the South 1/2 of Lot 3, Block 9 of the Sunnyside Subdivision, 2nd filing and is 21,000 sq. ft. in size.  It is owned by TJ Mini Storage Inc.  There is a two story office building, four material storage buildings and a small house on the property.  All of them would be demolished to make room for the new Center, parking and landscaping.  The property is zoned as Residential 7000, which does not allow constructing a new commercial building by right.  However, State law allows local governments to use property contrary to zoning, following a public hearing with the Board of Adjustment.  If the Council approves the purchase, that hearing will occur in April or May.  The City would take possession of the property no later than June 5, 2016, which allows the present owner time to notify his storage customers that they must vacate the property.   

Staff commissioned an asbestos review of the existing structures on the property, as well as a Phase I and II environmental study to determine the existence and/or the extent of any hazardous material mitigation that may have to be addressed prior to demolishing the existing structures and constructing the new 9-1-1 Center.  The testing showed that asbestos mitigation can be addressed through a future demolition agreement and the State of Montana has issued a finding that no other remediation is necessary.

The property is located in the block that is across 9th Avenue North from the present 9-1-1 Center.  That should reduce moving costs, ease transition to a new building and allows Fire/9-1-1 management to remain near the Center and its employees.  Several years ago, staff consulted with an architectural firm to determine the Center's future space needs.  The subject property will accommodate a building that meets those needs.  The current Center is connected to the City's network via a City-owned fiber optic cable that approaches it from the south.  That cable can easily extend to the new site.  The subject property is located adjacent to another City-owned fiber cable in 9th Avenue North.  A 9-1-1 Center on the subject property can access this 2nd cable and therefore, will have redundant service in the event that the main cable is damaged or destroyed. 

STAKEHOLDERS

Stakeholders that will benefit by the relocation and construction of a new 9-1-1 Center include the citizens of Billings and Yellowstone County, plus all the public safety agencies that rely on the services provided.

SUMMARY

The City/County 9-1-1 Communications Center has been saving money for several years to build a new Center.  A property that is ideally located has been identified and the owner has agreed to sell it to the City.  Staff is requesting that they be allowed to purchase the property as the first step to constructing the new Center.

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