Staff recommends that City Council approve the Resolution of Intent to Create SID 1426 Arvin Lane and set a public hearing date for February 12, 2024.

The City is pursuing a Special Improvement District (SID) to construct infrastructure improvements along Arvin Lane, a short cul-de-sac.  Arvin Lane is an existing gravel street running westerly off Arvin Road, between Rimrock Road to the north and Poly Drive to the south.  Based on the annual gravel street construction program presented in the CIP, SID 1426 Arvin Lane (Project) will construct the remainder of curb and gutter, asphalt pavement, and remove and replace some existing curb and gutter and/or drive approaches to improve drainage.  The Project will install a new 8-inch water main, replacing the existing 2-inch water main currently serving the neighborhood.  The new 8-inch water main will provide fire flow to the end of the cul-de-sac that was not previously available through the 2-inch water line.

Six (6) parcels are adjacent to Arvin Lane within the project limits. Of the six (6) parcels, four (4) are addressed to Arvin Lane and two (2) are residential corner lots addressed to Arvin Road. Two (2) of the four (4) addressed properties are owned by a single owner. The costs associated with the improvements necessary to bring Arvin Lane up to City standards will be assessed to the four addressed properties, per City of Billings Resolution No. 23-11171. Street Maintenance District (SMD) 2 funds will be used to fund non-assessed improvements, and Water funds will be used for the water main replacement.

Four (4) assessments will comprise the District. Proposed street improvements (Assessment #1) will be assessed, per the equal amount option method, to the four (4) addressed properties. Neither of the two (2) non-addressed, residential corner lots requested private property specific improvements and will therefore have no assessments.

On January 24, 2023, City staff sent a letter to the addressed properties on Arvin Lane requesting their participation in a survey seeking SID interest levels. The initial letter and estimate revealed general neighborhood interest. Following City staff design, City staff mailed an updated cost estimate and set up an on-site meeting. Two (2) property owners attended the meeting, representing two (2) of the four (4) properties. The two property owners at the meeting continued to show support for the SID.  One property owner representing the remaining two (2) properties, who did not attend the meeting, expressed their continued support of the Project in a phone call with City staff.

City Council may:

• Approve the Resolution of Intent to Create SID 1426 and set a public hearing for the February 12, 2024, Council Meeting; or,
• Not approve the Resolution of Intent to Create SID 1426. If not approved, Arvin Lane will remain a gravel street, and gravel maintenance costs will continue to occur and the water main will remain undersized to provide adequate fire flow.

The funding sources, estimated costs of the improvements, and total project cost for SID 1426 is as follows:

SID 1426 Funding Source	SID 1426 Estimated Cost
SID Assessments	$42,720.00
SMD 2 Funds	$88,113.82
Water Funds	$154,184.19
Total	$285,018.00

Funding for SID 1426 was budgeted in FY24 using SMD 2 Funds, Water Funds, and assessments through the annual gravel streets program.  Adequate funding is available to create the SID and fund the improvements.