HomeMy WebLinkAbout1987-12-21
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MINUTES OF THE MEETING OF THE CITY COMMISSION
BOZEMAN, MONTANA
December 21, 1987
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The Commission of the City of Bozeman met in regular session in the Commission Room,
Municipal Building, December 21,1987, at 2:00 p.m. Present were Mayor Mathre, Commissioner
I Stiff, Commissioner Martel, Commission Vant Hull, City Manager Wysocki, City Attorney Becker
and Clerk of the Commission Sullivan.
The meeting was opened with the Pledge of Allegiance and a moment of silence.
None of the Commissioners requested that any of the Consent Items be removed for dis-
cussion.
Minutes
It was moved by Commissioner Stiff, seconded by Commissioner Martel, that the minutes
of the regular meeting of December 14, 1987 be approved as amended. The motion carried by
the following Aye and No vote: those voting Aye being Commissioner Stiff, Commissioner Martel,
Commissioner Vant Hull and Mayor Mathre; those voting No, none.
This was the time and place set for the decision on the Zone Map Change requested by
Philip Saccoccia, Jr. to change the zoning designation from AS, Agricultural Suburban, to R-3,
Residential--Medium-density, and M-1, Commercial--Light Manufacturing, on Tract 1 of Certifi-
cate of Survey No. 1215. The subject property is located in the northwest one-quarter of Sec-
tion 2, Township 2 South, Range 5 East, Montana Principal Meridian, more commonly located at
the southeast corner of the intersection of Baxter Lane and North 19th Avenue extended.
I City Manager Wysocki reminded the Commission that the public hearing was conducted on
December 7; and at last week's meeting, the Commission voted to table the decision for a period
of one week until a full Commission is present. He then indicated that following its public hear-
ing on this appl ication, the Zoning Commission recommended that a liT, II Transitional Overlay,
District be added to the M-1 zone request. He noted the staff has since indicated that the four
concerns listed as items to be addressed under the "T" can be addressed through other existing
land use processes, such as the preliminary plat review and issuance of building permits. The
City Manager then recommended that the Commission approve the zone change from AS to R-3
and M-1, as requested by the applicant.
Commissioner Martel noted that he has discussed this item with Zoning Administrator Ron
Brey; and he has indicated the concerns can be adequately addressed without addition of the
liT" zoning designation. He further noted that the Planning Staff is currently in the process of
revising the entire "T" designation.
Commissioner Vant Hull stated she has discussed this zone change with Dr. Saccoccia at
length; and he is aware of, and understands, the Commission's concerns.
It was moved by Commissioner Martel, seconded by Commissioner Vant Hull, that the Com-
mission approve the Zone Map Change requested by Philip Saccoccia, Jr. to change the zoning
designation from AS, Agricultural Suburban, to R-3, Residential--Medium-density, and M-1, Com-
mercial--Light Manufacturing, on Tract 1 of Certificate of Survey No. 1215. The motion carried
by the follow i ng Aye a nd No vote: those voting Aye being Commissioner Martel, Commissioner
Vant Hull, Commissioner Stiff and Mayor Mathre; those voting No, none.
I Applications for renewal of Beer, Wine and Liquor Licenses for Calendar Year 1988 - various es-
tabl ishments
This was the time set for renewal of the Beer, Wine and Liquor Licenses for the Calendar
Year 1988. A total of 45 applications have been received, along with the required fees. City
Manager Wysocki presented to the Commission the following list of establishments which have
made application and paid the required fee:
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APPLICATIONS FOR BEER, WINE AND LIQUOR LICENSES
CALENDAR YEAR 1988
APPLICANT BEER WINE LIQUOR TOTAL
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Alpine Sinclair $ 200.00 $ $ $ 200.00
Baldy Mountain Ski Shop 200.00 200.00 400.00
Bingo World 200.00 200.00 400.00 I
The Bowl 500.00 500.00
Bozeman I nvestors of Duluth
Limited Partnership dba
Holiday Inn 500.00 500.00
Bridger View Conoco 200.00 200.00
The Cannery Lounge 500.00 500.00
Casa Sanchez 200.00 200.00 400.00
Cats Paw 500.00 500.00
The Crystal Bar 500.00 500.00
Empire, Inc., dba Black Angus 500.00 500.00
The Filling Station 200.00 200.00 400.00
GranTree Inn 500.00 500.00
Haufbrau, Inc. 500.00 500.00
Heeb's Food Center, Inc. 200.00 200.00 400.00
Hinky Dinky 200.00 200.00 400.00
I nterstate Chevron 200.00 200.00
JW's Hide-A-Way Lounge 500.00 500.00 I
Joels Parkway 200.00 200.00 400.00
Karl Marks Pizza and
Next Door Saloon 200.00 200.00 400.00
K Ma rt 200.00 200.00 400.00
King Gallatin Corporation dba
Rocky Mountain Pasta Co.,
Bacchus Pub, The Robin Lounge 500.00 500.00
Kwik-Way, Inc. #31 200.00 200.00 400.00
Kwik-Way, Inc. #32 200.00 200.00 400.00
Livery Stable, Inc. 500.00 500.00
Me and Janis Mini Mart 200.00 200.00 400.00
Me and Janis II 200.00 200.00 400.00
Mini-Mart #728 200.00 200.00 400.00
Mini-Mart #729 200.00 200.00 400.00
Molly Brown 500.00 500.00
O'Brien's 500.00 500.00
The Overland Express 500.00 500.00 I
Price Rite Drug 200.00 200.00 400.00
The Rocking R Bar 500.00 500.00
The Store, I nc. 200.00 200.00 400.00
The Sundance 500.00 500.00
Super America 200.00 200.00 400.00
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Town and Country
Warehouse Grocers 200.00 200.00 400.00
Town Pump No. 1 200.00 200.00
Town Pump No. 2 200.00 200.00 400.00
Treasure State Oil, Inc.
dba Hilltop Chevron 200.00 200.00
I Van's IGA 200.00 200.00 400.00
Williams' Pump & Pak, Inc. 200.00 200.00 400.00
The Wine Merchant 200.00 200.00
Williels Saloon 500.00 500.00
Total - 45 applications $18,500.00
The City Manager recommended that the Commission approve the applications for re-
newal of Beer, Wine and Liquor Licenses as listed. He then noted that not all of the ap-
plications have been submitted to date; so those remaining will be submitted at next week's
meeting for consideration.
It was moved by Commissioner Vant Hull, seconded by Commissioner Stiff, that the
Commission approve the renewal of Beer, Wine and Liquor Licenses for Calendar Year 1988
for the various establishments as listed above. The motion carried by the following Aye
and No vote: those voting Aye being Commissioner Vant Hull, Commissioner Stiff, Commis-
sioner Martel and Mayor Mathre; those voting No, none.
Appointment to Board of Adjustment (1)
City Manager Wysocki noted that the Commissioners had requested this item be placed on
the agenda for consideration at this time, since a full Commission is present. He noted that one
I new applicant has been added to the list for consideration. He further indicated that Com-
missioner Vant Hull has submitted a memo for Commission consideration; and a memo from Plan-
ning Director Andy Epple has just been distributed.
Zoning Administrator Ron Brey stated that at last weekls meeting, he did not know how
many applications would be received prior to the deadline for advertising for the January meet-
ing. He noted that deadline has now passed; and only one continued item is before the Board.
He stated that he foresees no problem in not holding another meeting until February, which
would allow the Commission to complete its appointment process after the first of the year.
Following discussion, the Commissioners indicated they would prefer to defer action until
after the first of the year. They also directed the Clerk of the Commission to readvertise all
position vacancies, with action to be taken after the first of the year.
Appointment to CDBG Loan Review Committee (1)
It was moved by Commissioner Martel, seconded by Commissioner Stiff, that the Commis-
sion appoint Scott Heck to replace Neil Wetsch on the Community Development Block Grant Loan
Review Committee. The motion carried by the following Aye and No vote: those voting Aye be-
ing Commissioner Martel, Commissioner Stiff and Mayor Mathre; those voting No being Commis-
sioner Vant Hull.
Discussion - FY I Items
City Manager Wysocki presented to the Commission the following "For Your Informationll
I items.
( 1 ) Agendas and packets for the Zoning Commission meeting to be held on Tuesday,
December 22.
(2) A letter from Mrs. Mary Gray, 1817 South Willson Avenue, complaining about
people parking in front of her mailbox and driveway. The City Manager indicated a copy of this
letter has been forwarded to the Police Department for review. He then noted that the City
does not have an ordinance to address her concern that mail is not delivered if a car is blocking
the mailbox; that is a postal service policy.
Commissioner Martel noted that Mrs. Gray has written him a letter concerning this issue
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as well. He noted that at several locations along South Willson Avenue, the curb near the mail-
box is painted yellow.
City Manager Wysocki stated that the City does not paint the curbs in mid-block; and pri-
vate citizens are not to be painting the curbs themselves.
Mayor Mathre suggested that if the Commission wishes to discuss this item further, it be
placed on a future agenda.
(3) City Manager Wysocki stated a couple of the Commissioners have received telephone I
calls from Mr. Fagliano about the landfill being closed to Three Rivers Disposal for failure to pay
the bill on time. He then distributed copies of a memo, from Administrative Services Director
Gamradt to him concerning actions which have been taken to date on this item, to the Commis-
sioners.
(4) Commissioner Martel stated he has received a couple telephone calls concerning
signage and directions to the new hospital location. He then noted that someone unfamiliar with
the community may have a problem finding the hospital, and suggested that all entrances to the
city should have signs to indicate where it is located.
City Manager Wysocki indicated the staff is currently in the process of addressing the
issue, particularly in the South 11th Avenue and Kagy Boulevard area. He noted they will pur-
sue the other areas of the community as well.
(5) Commissioner Vant Hull distributed copies of a letter she had received from Mr.
Harold Marquis concerning logging in the Sourdough drainage to the Commissioners. She noted
that he has suggested the City may wish to address the use of its streets by logging companies.
The Commissioner suggested that this might be an issue worth raising during the Forest Service
meeting which is to be held on January 21, 1988.
Consent Items
It was moved by Commissioner Stiff, seconded by Commissioner Martel, that the Com- I
mission approve the Consent Items as listed above, and authorize and direct the appropriate per-
sons to complete the necessary actions. The motion carried by the following Aye and No vote:
those voting Aye being Commissioner Stiff, Commissioner Martel, Commissioner Vant Hull and
Mayor Mathre; those voting No, none.
Recess - 2:37 p.m.
Mayor Mathre recessed the meeting at 2:37 p.m., to reconvene at 7:00 p.m. for the pur-
pose of conducting the scheduled public hearings.
Reconvene - 7:00 p.m.
Mayor Mathre reconvened the meeting at 7:00 p.m. for the purpose of conducting the sched-
uled public hearings.
No. 1251, as amended - revisin Chapter 5 of the Bozeman Municipal
This was the time and place set for the public hearing on Ordinance No. 1251, as amend-
ed and as reviewed by the City Attorney, entitled:
ORDINANCE NO. 1251 I
AN ORDI NANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MON-
TANA, AMENDING ORDINANCE 1117 AND 1123 AS CODIFIED IN TITLE 5 OF THE
BOZEMAN MUNICIPAL CODE, OF THE CITY OF BOZEMAN, MONTANA.
Mayor Mathre opened the public hearing.
Administrative Services Director Gamradt briefly reviewed the history of the revision proc-
ess, which began a year ago as the result of three requests for review of specific license fees.
He then followed through the various steps which have been completed during the past year to
this point. He briefly reviewed the changes which were included in the original Ordinance No.
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1251, as well as revisions between that document and the one currently before the Commission.
City Manager Wysocki noted the Commissioners have received letters of opposition from
Jack Greenway, The Greenway Company; Langohrls Flowerland; James Coyne; and Roger Koopman.
He noted the Chamber of Commerce has also submitted a letter indicating support for a flat fee
rather than the proposed fee based on square footage. He then submitted copies of the memo
from City Attorney Becker dated November 24, 1987, concerning statutory authority for estab~
I lishing business license fees as well as the staff's calculation of costs incurred for a half-hour
inspection.
Mr. Tom Simkins, manager of Simkins-Hallin Lumber, stated that under the new proposed
fee structure, based on square footage, his license fee would increase to $400 or $450. He
stated that he reviewed business license fees for his size business in other communities in the
northwest, as well as in Montana, and found that in Bellingham, Washington, the fee would be
$50; in Twin Falls, Idaho, it would be $10; and Eugene, Oregon, has no business license fee but
does have an inspection fee which averages $10 to $20. He then indicated that in Helena, the
license fee would be $10; in Deer Lodge, $30; in Great Falls, $48; and in Missoula, $75. Mr.
Simkins stated that through the business license fee, he is being required to pay for City ser-
vices which exempt businesses and individuals receive at no cost.
Mr. Simkins suggested that the Commission appoint an ad hoc committee to review the en-
tire business license ordinance, with only one revision process being implemented after that
study. He noted that there are different methods for establishing license fees; and a flat fee
seems to be predominant. He also suggested that if the City were to establish an inspection fee,
it could possibly include those businesses and professions which are currently exempted by the
State statute.
Mr. Bob Fagliano, manager of Three Rivers Disposal, noted that his company is not lo-
cated within the city limits; however, their trucks do run within the city limits. He indicated a
nominal business license fee plus a fire inspection fee for all businesses within the jurisdictional
area would be adequate and fair. He then suggested that the Commission allow the existing or-
I dinance to remain in effect unti I the ad hoc committee has an opportunity to review the entire
business license ordinance, rather than adopting the ordinance currently under consideration.
Mr. Duncan MacNab, F-11 Photographic Supply, reminded the Commission that commercial
buildings pay a higher property tax than others. He noted that those property taxes are to
cover the costs of police and fire protection; and he opposes that portion of the business license
fee which is attributed to those services, since they have already paid for those services once.
Mr. Joe Billion, owner of J.e. Billion, stated that other car dealers in the state pay $150
or less in license fees; and under the proposed ordinance, his would increase from $150 to $450.
He noted that a business license is to be for regulatory purposes, not a revenue generator. He
indicated that in Mr. Simkins I letter to the editor, he suggested that a 25 percent increase would
be reasonable. He noted that he cannot support that statement; however, he cannot support a
400 percent increase in license fees, especially with the current economic situation. He en-
couraged the Commission to not adopt the ordinance currently under consideration.
Mr. Ed Brandt, Cardinal Distributing Company, stated that his business is located outside
city limits; and he is also exempt from the business license ordinance since his business is a
beer wholesaler. He indicated that he is a member of the Gallatin Development Corporation; how-
ever, he noted these comments are his own. He expressed concern about the kind of message
the proposed regulatory fee sends to those businesses interested in relocating in Bozeman. He
stated the GDC has been trying to attract businesses to the Bozeman area, portraying the com-
munity as a friendly one. He encouraged the Commission to take that into consideration, noting
that the area has a lot of naturally imposed hurdles to contend with already, without adding arti-
I ficial ones.
Mr. Dennis Cattin, Gallatin Valley Furniture, asked what the City is regulating and
whether the proposed fees are fair to all concerned. He indicated that he cannot accept that a
license fee based on the square footage of the establishment is equitable. He noted that the
exempt businesses receive the same services as those who must pay a business license fee. Mr.
Cattin then stated that his business is already paying a higher business license fee than similar
businesses in other communities around the state; and under this ordinance, his fee would in-
crease from $150 to $400. He then encouraged the Commission to not' adopt this ordinance, but
to allow an ad hoc committee to review the entire ordinance before taking any action.
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Mrs. Laurie Shadoan, President of the Bozeman Area Chamber of Commerce, stated that
the Board of Directors does not support the proposed license fee structure based on square foot-
age; however, it does support a flat fee in the general business license category. She noted
the Board also supports the formation of an ad hoc committee, with broad representation from
the business community, city staff and others to immediately review Title 5.
Mr. Tom Rolfe, member of the Board of Directors of the Bozeman Property Owners' Associ-
ation, stated that the BPOA is opposed to the proposed business license ordinance and recom- I
mends that a flat fee, similar to the $10 license fee in Helena, be established. He indicated that
the proposed ordinance is anti-consumer because the additional costs will result in reduced ser-
vices or increased costs. He further indicated that to implement a high license fee could result
in some businesses not starting. Mr. Rolfe stated his property taxes increased 83 percent last
year; and under this proposed ordinance, his license fee would increase 200 percent this year.
Mr. Rolfe then stated that he talked to the Mayor of Helena about the $10 license fee.
He stated that Mr. Ritter indicated that no staff member in the City has been able to show him
that the fee does not cover the costs incurred in the licensing process. He noted that the City
will retain the same number of police officers and firemen whether the license fee is raised, re-
duced or remains the same. Mr. Rol fe then encouraged the Commission to adopt a $10 license
fee like Helena has.
Mrs. Patty Westlake, Midwest Industries, questioned why the business community in the
area are the ones asked to absorb additional costs. She indicated that the business license for
her business will increase from $150 to over $400, based on square footage. She stated she
feels that is a tax and she, as well as other business people, have paid their fair share of
taxes. She indicated that the area should encourage business, not only to come into the com-
munity but to stay and grow. Mrs. Westlake then encouraged the Commission to reconsider this
ordinance and to begin the process once again.
Mrs. Laurie Shadoan, owner of the Bacchus Pub and the Rocky Mountain Pasta Company,
stated she feels there are flaws in using a square footage basis. She noted that her restaurants
share a common space area with other Baxter Hotel activities. She indicated that she does not I
believe the common open space should become a part of the licensing fee for a business.
Mr. Joe Billion stated he can support having the business license fee cover the direct
costs involved; however, he does not feel the costs of police and fire activities should be in-
cluded since they are already covered through property taxes. He once again encouraged the
Commission to not adopt this ordinance and to form a committee from the business community to
develop a fair, equitable and reasonable license fee.
Mr. Jerry Perkins, Karst Stage, stated he has a problem with the square footage con-
cept. He indicated that he can understand such a basis for retai I operations. He noted, how-
ever, he has three separate buildings averaging 28,000 to 30,000 square feet, but only 5,000
square feet is used for office area. He noted that two of the buildings are bus barns with
lights only. Mr. Perkins then stated that he feels the Commission should not adopt this ordi-
nance; adopt an interim flat fee; and appoint an ad hoc committee of City staff and business
community representatives to review Title 5 of the Bozeman Municipal Code.
Mr. Jim Heisel, Springhill Nursery, stated that last year he questioned what services he
gets for the license fee which he pays. He noted his business is located outside the city limits,
but he does quite a bit of landscape work within the city limits. He indicated that if the cost of
the business license increases, the businessmen will be forced to raise their costs accordingly.
He also questioned whether all of the wholesale nurserymen doing business within the city limits
are required to purchase business licenses.
Mr. Ralph Ferraro, Rocking R Bar and Bingo World, stated that he feels a $10 license fee
for every business would be adequate and fair. I
Mr. Ed Hoadley, Adventure Rentals and Hoadley1s Exxon, stated a number of businessmen
have offered to work with the City to develop a license fee schedule which is acceptable to
everyone. He then questioned why businesses should be required to pay fees for the same ser-
vices that residences received at no additional cost.
Commissioner Vant Hull responded that the public health, safety and welfare must be
taken into consideration in locations which the public frequents. She indicated that those same
considerations are not required for residences.
Mr. Hoadley then stated he feels a $50 flat license fee might be fair. He suggested that
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either that type of fee or the old fee structure remain in effect until the entire ordinance can be
reviewed.
Mr. Bob Fagliano stated that regulation by the Fire Department has been listed as one of
the costs covered by the license fee; and he can accept that. He noted that the Fire Depart-
ment personnel are thorough in their inspection of businesses; and comprehensive insurance in-
spections complement that effort.
I Mr. Dennis Cattin stated that those who are exempt from paying business license fees also
receive fire inspections.
Mr. Tom Simkins noted that the fire inspections provide a training opportunity for the
firemen and allow them to become familiar with various structures. He then suggested that a por-
tion of their operation might be regulatory; however, a portion is appropriately covered by
property taxes because it is training.
Mr. Steve Hample, Financial Network I nvestment Corporation, noted that a number of busi-
nesses have expressed a willingness to pay fair and reasonable fees. He concurred there are
inequities and subsidies to many groups in the current license ordinance; however, he is not
sure the proposed fee schedule is the way to address those inequities. He noted it is important
to concentrate on the business license fees, not the overall revenue those fees will generate.
City Manager Wysocki stated the police and fire budgets total approximately $1.5 million
for this fiscal year, excluding retirement costs and insurances. He expressed concern about the
proposal to establish a flat fee, noting that it could double the license fees paid by the smaller
businesses. He then reminded the Commissioners that the time expended on an inspection is not
limited to time on the site; but preparation time and report time must also be added. The City
Manager also stated that during initial review of a business license application, planning and
zoning reviews must be completed as well to ensure that the proposed use meets all of the land
use requirements.
City Manager Wysocki indicated that he does feel there is a problem with using strictly
square footages to determine business license fees, suggesting that some type of factor could pos-
I sibly be applied to areas such as the storage area at a lumber yard. He stated that he feels the
only way to establish a fee to exactly cover costs would be to establish a fee for services rather
than a I icense fee. He then reminded the Commissioners that some businesses have not been pay-
ing the appropriate license fee under the current ordinance because they were arbitrarily ad-
justed. The City Manager stated the Commission has already indicated an interest in appointing
an ad hoc committee to review the entire business license ordinance and suggested they could
possibly review the definition of lIsquare footagell at that time.
The City Manager then reminded the Commissioners that the City receives only a small
portion of the property taxes. He stated that the City does incur additional costs for those
operations which the public frequents; and it should be able to recover at least a portion, if not
all, of those costs. He noted that if the 1300 businesses licensed in the city paid a flat fee, the
cost would be $75 to $77.
Mr. Duncan MacNab indicated he feels that people would be willing to pay a flat license
fee. He then stated that city services, such as police and fire, should be covered by the prop-
erty tax.
Commissioner Stiff asked the Administrative Services Director why commercial structures
pay higher property taxes than residential structures.
Administrative Services Director Gamradt stated that the difference in the amount of prop-
erty taxes paid by commercial structures and residential structures is strictly the difference in
value. He noted that the same percentage is applied to the market value of both types of struc-
tu res.
I Commissioner Martel noted that some of the businessmen have indicated that they have not
had fire inspections on an annual basis and asked how the City will fund additional manpower to
complete them once a year. He also expressed concern about some businesses having to pay for
the same services that exempt businesses receive.
The City Manager indicated that he does not feel additional manpower would be necessary.
Mr. Bob Fagliano noted that one of the reasons professionals are not charged a business
license is because they are not, and cannot properly be, regulated by the City. He stated the
$100,000 in revenues currently generated by the business license fees should not be a magic num-
ber; but an accurate business license fee based on regulation should be developed.
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Mr. Bi II Roller, Roller Construction, stated several issues have been raised; however, he
feels that continuity and the attitude of the community must be carefully considered. He indi-
cated he would like to simplify the problem, suggesting that a solution might be to determine the
costs of regulating the businesses, divide it by the number of businesses licensed and add 10
percent, thus establishing a flat fee.
Commissioner Stiff stated the City has good accounting records. He noted that the City's
general fund budget is $4 million; and he feels that the costs of licensing 1300 businesses would I
probably be close to the $100,000 in revenues generated under the current ordinance. The Com-
missioner then stated he does not believe that everyone understands that the proposed licensing
ordinance would actually reduce the amount of revenue to the City by $2,200; and the proposed
schedule would simply redistribute basically the same dollar amount.
Commissioner Stiff also stated that the Commission has heard several people say that they
would be wi lling to pay a flat fee of up to $70 or $80; however, those have not been from small-
or medium-size businesses. He stated the City is striving for fair and equitable license fees;
and he does not believe that doubling the license fees for small businesses is in conformance
with that effort. The Commissioner noted that the staff people have put numerous hours into
the proposed revisions; and the Commission has committed itself to appointing an ad hoc com-
mittee to review the entire ordinance.
Mr. MacNab suggested that the City establish a fee for fire inspections for those pro-
fessionals who are exempt from the business license fee. He noted that way, those professionals
would be paying for the same services that other businesses are through the business license
process.
Mr. Jim Heisel stated he feels there are inequities in the proposed fee schedule. He
suggested that a percentage of gross income might to a more equitable basis for the business li-
cense fee than square footage, noting there is high-dollar square footage and low-dollar square
footage.
City Manager Wysocki indicated that is why he had suggested that a factor might be ap-
plied to specified uses of square footage to make the license fee more equitable. He then stated I
the City is not interested in knowing a businessls gross income; and that method would create
an additional workload for the staff.
Mr. Jerry Perkins stated at the present time, he is paying $395 for his business license;
and under the proposed ordinance his license would be about $300, based on 30,000 square feet.
He then stated he does not agree with basing the license fee on the total square footage if the
entire area is not being used to do business in.
Mr. Joe Billion stated that a flat rate of $80 may not be fair to the small businesses,
since it would represent a 100 percent increase. He then suggested that the Commission not
adopt the proposed ordinance, but leave the license fee schedule as it is. He noted if the ad
hoc committee contains representatives from small, medium and large businesses and receives en-
dorsement from the Chamber on its proposal, the revisions should be more easily accepted.
Mrs. Judy Rolfe, member of the Board of Directors of the Chamber of Commerce, stated
that the Chamber represents a substantial number of small businesses in the community. She
indicated that she had talked to three different small business owners who stated they did not
feel that their comments would be considered by the Commission. Mrs. Rolfe then stated that
she has sat on the Governmental Affairs Committee for the Chamber; and she feels that until
elected representatives from Gallatin County and the rest of the state support the business
community, business will be hurt by legislative actions. She stated that a representative cross
section of the community has appeared to indicate opposition to the proposed fee schedule and
urged the Commission to not accept it.
Mayor Mathre stated the Commission does consider testimony it receives, citing the de- I
letion of a licensing fee for apartments as well as for home occupations as examples.
Mayor Mathre closed the public hearing.
Break - 8:42 to 8:53 p.m.
Mayor Mathre declared a break from 8:42 p.m. to 8:53 p.m., in accordance with Commis-
sion policy established at their regular meeting of March 14, 1983.
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1251, as amended - revisin Chapter 5 of the Boze-
Mayor Mathreasked the Commissioners if they wish to make the decision tonight or to
wait one week; and a majority concurred that they would prefer to make it tonight. The Mayor
then noted that the Commissioners could take no action to finally adopt the ordinance, which
would result in the old ordinance remaining in effect; or they may choose to act on the ordi-
I nance before them at this time.
Commissioner Martel stated that he feels adoption of the ordinance is premature. He
noted that during the National League of Cities Congress of Cities held in Las Vegas last week,
he discussed the issue of business licensing with representatives from other communities in the
country. He then indicated that Oak Park, Michigan, has a nominal license fee for retail es-
tablishments only; Troy, Michigan, has no business license fee; and Tigard, Oregon, has a very
nominal business license tax. He then suggested that a flat rate business license fee may gen-
erate less revenues than in the past; however, the projected revenues under the new video draw
poker machine license apportionment could create additional revenues to help cover this change
in revenue.
Administrative Services Director Gamradt stated that the City may receive slightly more in
video draw poker machine revenues; however, the increase will be very minimal since the City
had been charging the maximum license fee allowed under State statute prior to the change.
Commissioner Martel stated the real costs of regulation have not yet been determined. He
noted no actual accounting of inspections made for business licensing purposes has been done,
with associated costs being attached.
Commissioner Vant Hull stated she feels the cost estimates for a half-hour inspection are
accurate; and to prepare a more comprehensive accounting of costs would be too time consuming
for the staff. She then stated that the City does not have adequate property tax revenues to
subsidize costs incurred in the licensing process.
Commissioner Martel stated he feels the City should scrap this ordinance and start over,
I doing all of the revisions properly. He noted the ad hoc committee could review the actual costs
incurred in the licensing process, taking those costs into consideration during the revision proc-
ess.
Commissioner Stiff stated he is confident that the costs of properly administering and
servicing the license process are not vastly different from the amount of revenues which the
City has received. He noted if the City does adopt a flat fee, as has been suggested during
the public testimony, the City will be adding $18,000 to the fees paid by 600 small businesses;
and he cannot support that proposal. The Commissioner then indicated that he does not feel it
should be the committeels responsibility to review the cost figures, making a cost determination.
Commissioner Stiff then stated he feels the Commission has a commitment to listen to the
ad hoc committee, noting they can improve on the current business license ordinance. He a I so
noted, however, that the staff has expended a considerable amount of time and effort in pre-
paring the draft. He then indicated that the Commission has heard from eight people a total of
eighteen times during this public hearing; and none of those were small business owners who are
struggling to make a living. He noted those who have spoken have indicated they would support
a flat fee of $50, $75 or even $80; however, that would represent a substantial increase, up to
100 percent, to the small businesses.
Mayor Mathre stated that concern and questions were raised about licensing fees being
applied to storage areas and common open spaces. She then asked if the definition for "square
footage" cou Id be revised to accommodate those concerns.
Administrative Services Director Gamradt stated that the staff feels it would have ade-
I quate latitude for interpretation under the existing definition. He noted the staff is currently
looking at ways to address those concerns in an equitable and consistent manner. He indicated
that the square footages currently listed in the City.s records are the ones upon which the li-
cense fees will be based, noting that the staff will need to get numbers for a few of the busi-
nesses whose I icenses were not based on square footages, such as transportation fi rms.
Mayor Mathre asked the Commissioners if they wish to revise the maximum fee contained
in the proposed fee schedule. Following discussion, the Commissioners concurred that the fee
schedule should remain as proposed, with the maximum license fee being $450 for the largest
businesses.
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10
Commissioner Martel stated he feels the ad hoc committee would complete its work faster if
this ordinance is not adopted.
Commissioner Stiff and Commissioner Vant Hull indicated that they feel it would be more
appropriate to adopt this ordinance. They noted that they anticipate a recommendation from the
committee in time to consider and implement additional changes prior to the 1989 licensing period.
Mayor Mathre noted that the written testimony submitted by Mr. Roger Koopman this even-
ing raised a legal issue concerning the license fee for itinerant vendors. She then asked the I
City Attorney if he has had time to review the matter.
City Attorney Becker stated he has reviewed the State statute but has not had an oppor-
tunity to review the case law. He then reminded the Commission that the severability clause
contained in the ordinance would address the issue if the section is determined invalid.
The Mayor requested that the City Attorney review this item and bring back a correction
if necessary.
Commissioner Martel suggested that the Commission not approve the ordinance before them
at this time; but direct the staff to draft an interim ordinance that would establish a flat $40
business I icense fee for 1988 whi Ie the entire ordinance is being revised. He noted that would
decrease the Cityls revenue substantially for one year; however, it would address the concerns
of those who have testified.
Commissioner Vant Hull stated the Commission would be irresponsible in taking such ac-
tion.
Commissioner Stiff stated opposition to the proposal, noting that such action would result
in the Cityls use of reserves. He also indicated that establishing that type of fee could result
in the business community making inaccurate assumptions about the actual cost of administering
business licenses.
Commissioner Martel stated he cannot support adoption of the ordinance at this time, sug-
gesting that action might be more appropriately deferred until after the new Commissioners have
been seated.
It was moved by Commissioner Stiff, seconded by Commissioner Vant Hull, that the Com- I
mission finally adopt Ordinance No. 1251, as amended, revising Chapter 5 of the Bozeman Munici-
pal Code concerning business licenses, and extend the due date for purchase of licenses to
March 31,1988. The motion carried by the following Aye and No vote: those voting Aye being
Commissioner Stiff, Commissioner Vant Hull and Mayor Mathre; those voting No being Commis-
sioner Martel.
The Commission then requested that establishment of an ad hoc committee to review the
entire business license section of the Bozeman Municipal Code be placed on the agenda for dis-
cussion after the first of the year.
Ordinance for the Capital Improve-
This was the time and place set for the public hearing on the Tentative Capital Improve-
ment Program Appropriation Ordinance, as reviewed by the City Attorney, entitled:
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF BOZEMAN, MONTANA, APPROPRIATING CITY
FUNDS FOR VARIOUS CAPITAL ITEM EXPENDITURES FOR THE PERIOD JULY 1,
1987 TH ROUCH SEPTEMBER 30, 1988.
Mayor Mathre opened the public hearing.
City Manager Wysocki reviewed the items listed in the tentative appropriation ordinance
for the Capital Improvement Program. He stated that the first portion includes those items
which are to be rebudgeted from the prior fiscal year, noting that a substantial amount of work I
on these items have been completed between July 1 and now. The City Manager then reminded
the Commission that this is for a fifteen-month appropriation period, extending from July 1, 1987
through September 30, 1988.
City Manager Wysocki submitted to the Commission a memo from Director of Public Service
Holmes concerning the lift station on Wheat Drive, which was initially installed through a special
improvement district. He then requested that the Commission authorize funding of Project No.
88-E305, the sewer lift station on Wheat Drive, within this appropriation ordinance also, noting
that it had originally been scheduled in Fiscal Year 1989. He reminded the Commission that
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11
Kerin and Associates have conducted a study to determine the best alternative for upgrading of
this sewer service to accommodate the development in that area; and the recommended alternative
is to install a gravity flow line between Wheat Drive and the trunk line which runs along High-
way 10. The City Manager stated that the Administrative Services Director has reviewed the bud-
get for the Sewer Fund and indicates that funding would be available to cover the budget during
the upcoming summer season.
I Commissioner Vant Hull stated she feels those individuals involved should be required to
cover at least a portion of the costs. She also expressed concern about including this project in
the capital improvement program because she does not have all of the information and feels addi-
tional review time is necessary.
City Manager Wysocki suggested that the Commission include the new project in the appro-
priation ordinance, noting that he would bring the project back to the Commission for approval
prior to taking any action. He noted that this will provide funding for design and construction
of the project during the upcoming year if the opportunity to upgrade the system arises. Com-
missioner Vant Hull indicated she could support including the project in the capital improvement
program for this fiscal year if Commission approval is required before action can be taken.
Administrative Services Director Miral Gamradt stated that when problems with the sewer
lift station arose, he discussed the issue with Director of Public Service Dick Holmes. He noted
that, as a result of that discussion, it was determined there is no feasible way to assess the
costs of upgrading the facility against those who have already participated in a special improve-
ment district for installation. He noted that a hookup fee could be assessed to those who wish
to tie onto the sewer line between Wheat Drive and Highway 10, which will help to recover some
of the costs.
Mr. Bill Hunt, HKM Associates, stated that he has reviewed the report completed by Rick
Kerin and Associates and concurs with that report. He noted that when the sewer facilities for
that area were designed and installed in the late 1970's, the area was projected to develop as
professional and office spaces; however, hotels, restaurants and a skating rink have been con-
I structed instead. He noted those uses create an overflow situation; and that problem is what
must be addressed.
Mr. Hunt stated that to install a gravity flow line, as recommended in the report, will
result in substantially lower maintenance costs once it is installed; and the initial cost will be
essentially the same. He then encouraged the Commissioners to include this item in the tentative
appropriation ordinance before them at this time.
No one was present to speak in opposition to the Tentative Capital Improvement Program
Appropriation Ordinance.
Mayor Mathre closed the public hearing. Action on the final appropriation ordinance will
be taken in two weeks.
Public - Ordinance
vat Ion mprovement
This was the time and place set for the public hearing on the Tentative Energy Conser-
vation Capital Improvement Program Appropriation Ordinance, as reviewed by the City Attorney,
entitled:
ORDINANCE NO.
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MON-
TANA, APPROPRIATING CITY FUNDS FOR VARIOUS ENERGY CONSERVATION
CAPITAL IMPROVEMENT PROJECT ITEM EXPENDITURES FOR THE PERIOD JULY
1, 1987 THROUGH SEPTEMBER 30, 1988.
I Mayor Mathre opened the public hearing.
City Manager Wysocki reviewed the three rebudgeted projects which are included in this
tentative appropriation ordinance. He noted that no new projects have been funded for the up-
coming fifteen-month appropriation period.
No one was present to speak in support of or in opposition to the Tentative Energy Con-
servation Capital Improvement Program Appropriation Ordinance.
Mayor Mathre closed the public hearing. Action on the final appropriation ordinance will
be taken in two weeks.
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12
Adjournment - 10:05 p.m.
There being no further business to come before the Commission at this time, it was moved
by Commissioner Vant Hull, seconded by Commissioner Stiff, that the meeting be adjourned.
The motion carried by the following Aye and No vote: those voting Aye being Commissioner
Vant Hull, Commissioner Stiff, Commissioner Martel and Mayor Mathre; those voting No, none.
JUDITH A. MATHRE, Mayor I
ATTEST:
ROBIN L. SULLIVAN
Clerk of the Commission
I
I
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