2. Resolution 5590 - Creating SID #345 - WllowsCharles A. Harball Office of City Attorney
City Attorney 201 First Avenue East
P.O. Box 1997
Kalispell, MT 59903-1997
TO: Doug Russell, City Manage
FROM: Charles Harball, City Attorney
Tel 406.758.7709
Fax 406.758.7771
charball@kalispell.com
SUBJECT: Resolution No. 5590 — A Resolution Creating a Special
Improvement District for the Purposes of Providing Storm
Water Improvements to the Willows Subdivision.
MEETING DATE: October 15, 2012 — Regular Council MeetinM
BACKGROUND: On June 18, 2012, the City Council passed Resolution No. 5565 which
was a resolution of intent to create a special improvement district for the purposes of
provi(!;.ng storm water improvements to the Willows Subdivision and calling for a public
hearing. The duly noticed public hearing on the matter was held during this regular
council meeting for the purpose of hearing from the public. Three property owners out of
the total of 87 filed or gave oral protest.
This subdivision was approved and built in the late 90's. The storm water system
design did not meet city standards at the time so the developer agreed that the
homeowners association would retain ownership and responsibility for that system.
After experiencing inadequate storm water drainage the owners seek to improve the
system through a project financed through the SRF funding of the DNRC and paid for
and secured through a special improvement district. The city would take ownership of
the system once it has been improved to city standards.
The City Council has asked for and received further information regarding the
history of this storm water system as well as other sources of storm water that this
system services. Based upon this information the Council is considering paying for a
portion of the anticipated project from funds outside of any SRF borrowing that will be
paid for by the land owners in the Willows Subdivision.
RECOMMENDATION: That City Council give consideration to and pass Resolution
No. 5590.
FISCAL IMIPACTS: The fiscal impacts are as stated in the resolution.
Respectfully 7subZmie
Charles Harball, City Attorney
BE IT RESOLVED by the City Council (the "Council") of the City of Kalispell (the
"City"), Montana, as follows:
Section 1. Passage of Resolution of Intention. This Council, on June 18, 2012, adopted
Resolution No. 5565 (the "Resolution of Intention"), pursuant to which this Council declared its
intention to create a special improvement district, designated as Special Improvement District
No. 345 of the City (the "District"), under Montana Code Annotated, Title 7, Chapter 12, Parts
41 and 42, as amended, for the purpose of financing the costs of certain local improvements
described generally therein and consisting primarily of a storm water detention facility and outlet
(the "Improvements") and paying costs incidental thereto, including costs associated with the
sale and the security of special improvement district bonds drawn on the District (the "Ponds"),
the creation and administration of the District, and the funding of a deposit to the City's Special
Improvement District Revolving Fund (the "Revolving Fund") and to a District reserve account.
Section 2. Notice and Public Hearing. Notice of passage of the Resolution of Intention
was duly published and mailed in all respects in accordance with law, and on July 16, 2012, this
Council conducted a public hearing to hear and pass upon protests against the proposed
Improvements and the creation of the District. The public hearing was the first meeting of the
Council following the expiration of the period ended 17 days after the first date of publication of
the notice of passage of the Resolution of Intention (the "Protest Period").
Section 3. Protests. Within the Protest Period, three (3) protests were filed with the City
Clerk by the owners of property in the District subject to assessment, representing 3.45% of the
total estimated costs of the Improvements and costs incidental thereto to be assessed against the
properties in the District, in accordance with the method or methods of assessment in the
Resolution of Intention.
Section 4. Creation of the District, Insufficiency of Protests. At the next regular meeting
after the expiration of the Protest Period (i.e., the meeting on July 16, 2012), the Council heard
and passed upon all protests and determined that the protests made by owners in the District to
be assessed for the cost of the proposed Improvements and incidental costs to be financed with
the Bonds is not more than 50% of all of such costs in the District. The Council found and
hereby ratifies and confirms that the protests against the creation of the District or the making of
the Improvements filed during the Protest Period are insufficient. The Council subsequently
analyzed the Improvements in greater detail and determined that additional City contributions
toward the costs of the Improvements may be warranted. The District is hereby created on the
terms and conditions set forth in, and otherwise in accordance with, the Resolution of Intention,
but taking into account any additional contributions by the City toward the costs of the
SID #345 — Willows Subdivision
Improvements, thereby, if made, reducing the special assessments against properties in the
District. The findings and determinations made in the Resolution of Intention, including, without
limitation, those relating to benefits conferred, funding the Revolving Fund and District reserve
account and securing the Bonds thereby, and using the proceeds of the Bonds to pay or
reimburse the City for all or a portion of the costs of the Improvements and costs incidental
thereto are hereby ratified and confirmed.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR
*F THE CITY OF KALISPELL, THIS — DAY OF — 12012.
Tammi Fisher
Mayor
Theresa White
City Clerk
SID #345 — Willows Subdivision 2