3. Update - Meridian Road`�.
City of Kalispell Public Works Department
t Post Office .Box 1997, Kalispell, Montana 59903-1997 - Telephone (406)758-7720, Fax (406)758-7831
MEMORANDUM
4 March 2004
To: Chris A. Kukulski, City Manager
From: James C. Hansz, P.E., Director of Public W
Subject: Meridian Road Project
In January we presented a case to the Montana Transportation Commission. for fully
funding the Meridian Road project by borrowing about 12 years of the Kalispell area allocation
of future Urban Highway funds. This is necessary to Cover 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 of phase two work.
After considering the City's request and our concerns over any phasing that involved a
delay to construct the narrowest portion of the roadway, the Commission. requested that the City
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 project done in one
phase. 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 question to be answered
is simple: Will Kalispell take this approach to get the Meridian Road Project completed?
The Highway Commission meets again in Butte on April 27. An answer must be given
NLT March 31 to get action for this agenda.
memodl 12004.doc