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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