Staff recommends that City Council approve the Resolution of Intent to Create SID 1419 Charles Street and set a public hearing date for April 10, 2023.

At the request of the owner of two properties along Charles Street, the City is pursuing a special improvement district (SID) to construct City improvements along a portion of Charles Street. Charles Street is an existing gravel street located east of Daniel Street, between Monad Road and Industrial Avenue. Per the annual gravel street construction program presented in the CIP, SID 1419 Charles Street (the project), will construct curb and gutter, asphalt pavement, drive approaches and driveways, new storm drain infrastructure, and assess the costs of the improvements to the adjacent property owners. There are five (5) properties benefiting from these improvements. As part of the project, the City proposes to replace the existing water main, which requires frequent repairs, and is undersized and outdated. The City also proposes to replace the outdated clay tile sewer main. Street Maintenance District 2 funds, Water funds, and Sewer funds will be used to fund non-assessed improvements.

Five (5) parcels are adjacent to Charles Street within the project limits. Of the five (5) parcels, four (4) are corner lots, but are also commercial properties and are therefore financially responsible for the improvements installed on their non-addressed frontage, per City of Billings Resolution No. 04-18204. Five (5) separate assessments will comprise the District. Proposed street improvements (Assessment #2), curb and gutter with landscaping (Assessment #3), and storm drain improvements (Assessment #4) will be assessed per the frontage option method. New utility services (Assessment #1) will be assessed per the utility service connection option, and concrete flatwork (Assessment #5) will be assessed per the assessable area option. Separating the assessments out into these five (5) options ensures each property is assessed appropriately for their benefits from the improvements.

City staff has met with four (4) of the five (5) affected property owners. City staff attended an informal meeting with two (2) property owners, representing three (3) parcels, on December 8, 2022. Additionally, the City met with School District #2, representing one (1) parcel, on November 28, 2022, to discuss the proposed improvements, estimated costs, and to gain an understanding of SD2 interest in the project. City staff then attended a School District #2 board meeting on December 6, 2022, to explain the SID process, provide estimated costs of the improvements, and to hear from the school board regarding interest in the project. Following these meetings and based on the cost estimates provided at the time, the three (3) property owners, representing four (4) of the five (5) parcels associated with the project, were interested in pursuing the project.  The fifth property owner has a recorded Waiver of Right to Protest a Special Improvement District for right-of-way improvements. The Waiver is included for reference in the attachments. The property owner was provided cost information following the bid opening.

City Council may:

• Approve the Resolution of Intent to Create SID 1419 and set a public hearing for the April 10, 2023, Council Meeting; or,
• Not approve the Resolution of Intent to Create SID 1419. If not approved, this section of Charles Street will remain a gravel street, and gravel maintenance costs will accrue. Additionally, the water main will remain in-place and likely continue to experience breaks and cause service interruption.

The funding sources, estimated cost of improvements, and total project cost for SID 1419 is as follows:

SID 1419 Funding Source	SID 1419 Estimated Cost
SID Assessments	$758,200.00
SMD 2 Funds	$317,938.00
Water Funds	$608,861.00
Sewer Funds	$202,594.01
Total	$1,887,593.01

Funding for SID 1419 was budgeted using SMD 2 Funds, Water Funds, Sewer Funds, and assessments via the gravel streets program, in FY23. Adequate funding is available to create the SID and fund the improvements.