Mayor Jerry Jimison opened the Public Hearing on the CDBG grant application 7:00 pm on
Monday, March 31, 2014.The following Council members were present: Leon Baker, Rhett
Coon, Matt Hull, Betsey Hedrick, Doug Baker, Kevin Pena, and Mike Dryden. Others present
included Administrative Clerk Jessica Ayre, Director of Operations Kevin Dorwart, Amy
Deines, Cassie McNames (via phone), Jason Rittal, and Brian Steffan. Please see attached sheet
for list of community members present. Councilman Gerald Reichert was absent.
The Public Hearing involved the City applying for the CDBG grant on behalf of Makoshika
Estates.
Mayor Jimison asked Jason Rittal, the general contractor for Makoshika Estates, to explain the
progress and application process. Rittal explained that Amy Deines and Brian Steffan came to
him for assistance with the grant if the City sponsors it. Rittal brought a rough draft of the
application along with supporting documents. They have been gathering the background data so
it can be drafted and postmarked by Thursday, April 3, 2014. Due to the significant damage it
would be difficult to fix without a program like the CDBG. It has only one option, to be
sponsored by the city, who would be the applicant on behalf of Makoshika Estates. Rittal added
applying for this grant is a very competitive process but they have to fit in the parameters
meeting certain requirements.
Colby Sampson asked Jason why this process had taken so long. Rittal stated they were
waiting to get the Preliminary Engineering Report (PER) which explained the best solutions and
the cost. The PER was received last week. Rittal explained this meeting will discuss what the
problems and solutions are and what it will cost to fix them. Cindy Scheetz asked when KLJ
Engineering was hired to do the PER. Kevin Dorwart answered at the end of November.
At 7:18 p.m. Mayor Jimison called Cassie McNames the KLJ engineer that put together the PER.
She explained they did a geotechnical evaluation to determine what types of soils are present at
the site. They found a large problem with the highly expansive clay soil. The condition of the
structure has several cracks along the walls and ceiling showing movement in the structure. They
also completed an exterior survey to check the drainage that had mostly positive drainage
moving water away from the building. An interior survey was compared to the one done by
Interstate Engineering in 2012. Those results found 2.64 inches of movement on the first floor
and 3.13 inches on the second floor. KLJ also went through additional documents provided by
the city. McNames stated if the expansive clay soil didn’t get wet it would stabilize and not have
much movement. Due to the drainage issue and high groundwater that is not the case.
Recommendations were for drainage and interceptor drains to help capture any high water and
divert it around the structure. The building itself would also need to be addressed for stabilization
and to fix the existing movement. The original cost was about $2.5 million and the engineers
were looking for a solution that would not exceed the original building costs.
Three solutions were presented at varying costs. The recommended first solution is to
uses chemicals to stabilize the soil. The chemicals interact with the existing clay to prevent it
from soaking in water. Chemical stabilization would be able to salvage the existing building and
have limited impact on the residents currently living there. With this option standard
maintenance would be needed in minimal amounts as the building ages. The second solution
would be micro piles. Drilling small holes about six feet deep and filed with grout. The third
solution is drilled piers two feet by fifty feet into the ground. With this option existing
foundation would need to be replaced.
Mayor Jimison asked if any of the council members had any questions.
Betsey Hedrick asked what the cost of each of the options would be. McNames explained the
chemical stabilization cost would be $2.08 million, drilled piers $4.5 million, and the micro piles
$5.1 million.
Councilman Coon asked what percentage KLJ was sure that the chemical injections would
resolve the issue of expanding clay. McNames stated about 75% and the companies they have
talked to had good results. A 5 year warranty came with this option that if any movement did
occur after the initial they would inject more into the soil to make sure the right chemical
amounts were in the soil. Water would be controlled by chemical stabilization and correcting the
drainage issue would drastically improve the current conditions. The current report shows that
soil moving about 2 inches per year.
Mayor Jimison asked if they had companies in mind to do the stabilization. Two companies were
recommended by Geotechnical Company; Hayward Baker and CSP. CSP was the company that
provided the 5 year warranty.
Mike Dryden asked if the $2.08 million included engineering firm and other fees in addition to
the chemical costs. This amount includes architectural, administrative, along with additional
contingency fees. Not included in this amount are additional studies that might help solidify
these recommendations that could total $.5 million.
Coon asked if the chemical stabilization would cause any displacement of residents. They are
anticipating about 4-6 weeks and that was not included in the cost. Brian Steffan stated Action
for Eastern Montana/DCEDC partnership would cover the displacement expenses. He added that
they met with 10 of the 18 residents and discussed options of paying for travel expenses if they
wanted to stay with relatives or motel options as well as storage for belongings.
Mayor Jimison asked if the estimated cost included paving. McNames stated part of Rosser and
Grant will be paved to help direct water away from the building.
Councilman Dryden asked if replacing the existing soil would be a feasible alternative.
McNames explained to get out of the zone of wetting you would have to dig well below that at
least 20 feet deep to replace the soil so it would not be cost effective.
Mayor Jimison asked if any members of the audience would like to speak against the city
applying for the CDBG grant on behalf of Makoshika Estates in the amount of $450.000 to help
with the revitalization project.
Melinda Prescott- 514 S. Taylor-Addressed the council and expressed concern that the project
wouldn’t pay for itself. The third option of starting over again and creating a new building is $6
million. She felt it was a huge expense for a 75% guarantee. It looks good but with constant
problems it is a shame to keep putting money in. She added the article published in the paper had
no local tax dollars but the money used is Montana tax dollars. She would also like to see results
of buildings that have had the chemical stabilization done.
Mayor Jimison responded that the only reason the city is visiting this question is in
concern for the residents that live there and to have a controlled rent environment. McNames
added that the chemical stabilization could solve the problem for as long as the building exists.
In the five years they might need to add more based on the clay structure but once enough is
added it will fix the problem permanently.
Mayor Jimison asked if any members of the audience would like to speak in favor of the city
applying for the CDBG grant on behalf of Makoshika Estates in the amount of $450.000 to help
with the revitalization project.
Max Hickman-620 Grant #105- He is a resident and his apartment is still moving. Max is in
favor of doing anything we can to fix the problem. Due to the current movement it will be
inhabitable in the future and can’t see any reason not to fix it. He also asked if stabilizing the soil
will change the current soil. Rittal explained the multiple steps in drainage along with building
repairs that would go along with the chemical stabilization.
Cindy Westlind- 1223 S. Rosser- Felt that the largest problems needing to be resolved are the
road and drainage. Her house is being affected by the mess and the road needs to be fixed along
with the building. These residents need a home.
Betty Mawbey- 217 W. Bell #72-Is on the Action for Eastern Montana governing board. She
feels that the chemical stabilization would be great from the information discussed. We want to
have low/fixed income housing available for residents.
Brian Steffan- 217 5th Street- As the CEO of Action for Eastern Montana they are grateful for the
City’s interest at this point. He is aware that the cost is a concerning number but one of the
challenges when this was originally built was with different sources of financing. Because of the
grants revised to build it tearing the facility down would not be a feasible option. He explained
the general partners’ involvement and steps to find further funding. This is the safest and
quickest way to help the residents. He added that legal steps could result in over $300,000 in
attorney fees and that money would be better spent repairing the facility than fighting in court.
Dryden asked if their plan to reach the $2 million is feasible. Steffan said with this 2014
CDBG along with the 2013 CDBG and a $750,000 home funding this would be possible. The
partners are working on funding for the remaining $600,000 but want to get the project started in
the meantime.
Jim Skillestad- 503 S. Pearson- Stated his son lives a half a block away and has no damage to his
house. In 2011 we had a great deal of rain and snow. He is concerned about the rent and
residents that live there. Everyone thinks that we are benefiting from this oil boom but the retired
people living on fixed income need this help.
Amy Deines- 907 Meadowlark –This has been a learned experience for both of the partners
involved in the project. Eighteen people now have wonderful place to live and it is needed in
Glendive. When this project started that was the goal a safe and affordable place to live.
Colby Sampson- 123 Maple Ave-His mother lives in Makoshika Estates. He asked McNames if
she would agree that the main problem is the condition of the soil. McNames stated that is
currently the biggest culprit. He asked if that could have been detected if soil samples had been
taken prior to construction but McNames didn’t have that information.
Mayor Jimison asked if any of the City Council members had any additional comments. Coon
asked Steffan where the rent funds go. Steffan stated that the facility was designed to satisfy
traditional bank loans and maintenance fees. It breaks even each year and is why the rent is so
low. No funding comes into the partnership from rent.
With no further comments, the public hearing for CDBG grant application closed at 8:07 pm.
Dated this 31st day of March, 2014.
Approved the 1st day of April, 2014.
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Jerry Jimison, Mayor
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Jessica Ayre, Administrative Clerk