2. Resolution 4868 - Meridian Road Project Fundingulty of Kalispell Public Works Department
Post Office Box 1997, Kalispell, Moutana 5 903m1997 - Tetcphone (406)758-77207 Fax (406)758-7; q 1
REPORT TO: Mayor and City Council
FROM: James C. Hansz, P,E., Director of Public Works
SUBJECT: Meridian Road Project Funding
MEETING DATE: March 15, 2004
BACKGROUND: In January we asked the Montana Transportation Commission to fully fund the
Meridian Road project by allowing the Kalispell Urban Area to borrow about 12 years of future
Kalispell area allocations of Federal Urban Highway funds. This became necessary due to the
greatly increased costs of the project. The alternative to borrowing forward as requested is to
break the project into phases. The first phase would install all the relocated utilities and all of the
roadwork from US 2 north to Three Mile Drive, Phase Two would be the roadwork from Three
Mile north to US 93. The phased approach would still involve future borrowing, approximately 9
years of annual Urban Highway fund allocations. Doing so would then ensure a nine year delay
before beginning work for the second phase.
After considering the City's request and acknowledging the validity of our concerns over
any phasing that involved a delay to construct the narrowest portion of the roadway, the
Commission asked the City to consider the option of using its bonding authority to complete the
task in one phase. The concept involves only a commitment by the City to use its bonding
authority. In concert with this commitment the City, MDT and FHWA would develop a three -
party agreement which would guarantee that annual Urban Highway fund allocations for
Kalispell would be provided by MDT to retire the bonds at no cost to Kalispell taxpayers.
The bonding approach appears to be the only way open to get this important project done
in a timely way in a single phase of work. MDT uses bonds paid with Federal highway funds to
handle its larger projects, but has committed all its current authority toward the large US 93
project. The City should seriously consider this potential solution to the Meridian Road funding
problem and Resolution 4868 addresses this.
March 15, 2004 Meridian Road Bonding doc
RECOMMENDATION: Authorize Resolution 4868 directing staff to pursue with MDT the
potential to use City bonding authority for Meridian Road construction with Federal Urban
Highway funds as the revenue source to retire the bonds.
ACTION REQUESTED: AUTHORIZE RESOLUTION #4868
FISCAL EFFECTS: None anticipated, Federal highway finds would retire any bonds that are
issued.
ALTERNATIVES: As suggested by the City Council
Respectfully submitted,
jawz'C. Hansz, P.E.
Director of Public Works 1
March 15, 2004 Midian Road Bending.doc
Chris A. Kukulski
City Manager
RESOLUTION NO.4868
A RESOLUTION TO DECLARE THE INTENTION OF THE KALISPELL CITY
COUNCIL TO USE THE CITY OF KALISPELL'S BONDING AUTHORITY TO
CONSTRUCT MERIDIAN ROAD IN ONE PHASE BY UTILIZING FEDERAL URBAN
HIGHWAY FUNDS THROUGH THE MONTANA DEPARTMENT OF
TRANSPORTATION.
WHEREAS, the Meridian Road project is the top priority for the Urban Highway System in
Kalispell; and
WHEREAS, the City Council desires to have Meridian Road constructed in a single phase as soon
as possible due to rapid growth in the area and a very high traffic volume; and
WHEREAS, the Montana Transportation Commission has suggested a funding alternative that
involves local bonding using federal Urban Highway Funds to allow the project to be
completed; and
WHEREAS, the City Council desires to work with MDT and Federal agencies to explore the
feasibility of this funding approach in order to implement it as early as possible.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
KALISPELL, AS FOLLOWS:
SECTION I. That the City Council of the City of Kalispell hereby declares its intention to
use the City of Kalispell's bonding authority to construct Meridian Road in
one phase by utilizing Federal Urban Highway Funds through the Montana
Department of Transportation if the event that the MDOT determines this
method of financing to be feasible.
SECTION II. The City Manager is authorized and directed to communicate this resolution
to the Montana Transportation Commission, the Montana Department of
Transportation and the Federal Highway Administration.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE
CITY OF KALISPELL, THIS 15TH DAY OF MARCH, 2004.
Pamela B. Kennedy
Mayor
ATTEST:
Theresa White
City Clerk