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HomeMy WebLinkAbout1988-05-31 223 MINUTES OF THE MEETING OF THE CITY COMMISSION BOZEMAN, MONT ANA May 31, 1988 ************************ The Commission of the City of Bozeman met in regular session in the Commission Room, Municipal Building, May 31, 1988, at 2:00 p.m. Present were Mayor Stiff, Commissioner Hawks, I Commissioner Vant Hull, Commissioner Martel, Commissioner Goehrung, 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. Mayor Stiff asked if any of the Commissioners wished any of the Consent Items removed for discussion. Commissioner Hawks requested the request for proposals seeking an engineer for the sidewa Ik district be removed for discussion. Minutes Commissioner Hawks verbally listed several concerns about the manner in which portions of the minutes were worded. Following his I isting of those concerns, the Mayor requested that the Clerk of the Commission submit the proposed amendments in writing, for consideration at next week's meeting. He indicated that action on the minutes will be delayed to allow the Com- missioners an opportunity to review those amendments. Decision - Zone Map Change - A-S to B-2, M-1, R-3, R-4 and R-O - Jerry Perkins - Tracts 2 and 3, COs No. 1215 (65.2572-acre parcel south of Baxter Lane, north of West Oak Street ex- tended and west of North 11th Avenue extended) This was the time and place set for the decision on the Zone Map Change requested by Jerry Perkins for a Zone Map Change from A-s, Agricultural-Suburban, to B-2, Community High- way Business, M-1, Commercial--Light Manufacturing, R-3, Residential--Medium-density, R-4, Residential--Medium-density--Apartments, and R-Q, Residentia I Office, on Tracts 2 and 3, Cert- I ificate of Survey No. 1215, situated in the northwest one-quarter of Section 1, Township 2 South, Range 5 East, Montana Principal Meridian. The 65. 2572~acre parcel is commonly located south of Baxter Lane, north of West Oak Street extended and west of North 11th Avenue extended. City Manager Wysocki reminded the Commission that the public hearing on this appl ication was held on May 16; and the decision was delayed for a period of one week at last week's meeting. He then submitted to the Commission a memo from the Planning Staff listing the criteria that should be reviewed if a IITII designation were attached to the requested M~l zone. He also noted that Mr. Perkins submitted a letter to the Commission just prior to this meeting. Planner Ron Brey reviewed the memo submitted for Commission consideration. He stated that the staff evaluated the proposed M-1 district from three perspectives: (1) existing M-1 regulations; (2) applying a IITII designation to the eastern portion for buffering from the ad- jacent B-2-T district; and (3) applying a liT" to the entire M-1 parcel to address concerns about the entryway to the community. He briefly reviewed the items of concern that were expressed on the eastern portion of the proposed M-1 zone as well as those concerns expressed about the entire parcel. He noted concern has been expressed that development of the area should be done in a manner which provides an aesthetically pleasing entrance to the community without detract- ing substantially from the view of the mountain range or the natural vegetation which is cur- rently visible from the interstate. He suggested that the height limitations could be allowed to remain; however, the placement and orientation of buildings should be addressed to provide for spaces through which the surrounding scenery is visible. He also noted that the structures I should not be sided with highly reflective materials; but they should be architecturally co- ordinated with an appropriate exterior finish. He suggested that the buildings should be placed so that loading docks and storage areas are not visible from the interstate or arterial streets. The Planner then stated that signage should also be addressed under a IITII designation, since lighted or reflective signs can be very distracting. Planner Brey stated that the items above could be addressed through an exhaustive list of very specific items; or they could be addressed through a more general list of items that 05-31-88 224 provide more flexibility in review and development. He suggested that the more general list be followed, since the longer list could become too restrictive. Mayor Stiff noted that at last week's meeting, the possible need for reopening the public hearing was discussed. He then asked if there is any need to do so. City Attorney Becker stated he sees no reason to reopen the public hearing. He noted that the letter from Mr. Perkins does not present any new information; neither does the memo from staff. I Commissioner Hawks stated support for adding a liT" designation to all of the proposed M-1 parcel with the more general guidelines attached, noting it is important to protect the City's entryways. He noted that the more specific guidelines could create a hardship during develop- ment of the parcel. The Commissioner stated concern has been expressed that the property im- mediately to the west was approved for light manufacturing uses with no restrictions; however, he feels that restrictions should be placed on the property to ensure appropriate development. Commissioner Hawks stated he feels it is important to address the orientation and place- ment of bui Idings, particularly where they are in close proximity to the interstate. He also noted that landscaping and signage are important items that should be addressed; and he feels these items can be adequately addressed without creating a hardship on the developer or undue I imitations on the property. Commissioner Vant Hull noted that Mr. Perkins indicates opposition to the liT" designation in his letter to the Commission. She then asked Planner Brey if the in-house review would pro- vide adequate opportunity to address the concerns expressed about entryways to the community while not being burdensome to the developer. Planner Ron Brey stated that if a lengthy I ist of specific criteria were implemented with the in-house "T" designation, it could become very restrictive and difficult. He noted that if more general standards were developed, the in-house review could be accompl ished with little disruption to the developer. He noted that under the proposed guidelines, the staff would have the needed flexibility and ability to work with the developer to make the project viable. He indicated that if the staff and the developer cannot agree on the manner in which the project is I to be developed, the public hearing process can be utilized. Commissioner Martel questioned the need for criteria concerning placement and orientation of the buildings. He noted that with the landscaping and parking requirements, open space would be provided; and not more than 30 or 40 percent of the lot would be covered by a struc- ture. Planner Srey stated there may not be any side or rear yard setback requirements in an M-1 zone. He noted that it would be possible for long buildings to be constructed along the north end of the lots with all parking and landscaping being located to the south of the struc- tures; and that would create a long line of buildings that would block the view of the mountains and other glimpses of the community. The Planner noted that to add a liT, II which includes re- view of the orientation of the buildings, could avoid this type of situation. City Manager Wysocki reminded the Commission that the current zone code does not ad- dress concerns about the entryways to the community. Commissioner Hawks stated he feels it is important to protect the vistas of the mountain range as well as the natural foliage in the community. The City Manager reminded the Commission that when the property to the west was re- zoned, the staff and the Zoning Commission recommended that a "T" be added to the M-1 zoning request. He noted that subsequent to the appl icant's protest to that recommendation, the Com- mission approved the zone change as requested. He also noted that the Commission had indicat- ed that those particular concerns expressed could be addressed through the existing zoning reg- ulations. I Commissioner Martel stated he does not support the suggested addition of a "T" to the M-1 zoning. He noted that the zoning regulations for residential zones do not prohibit the con- struction of a house that meets specific requirements, nor does it prevent a property owner from cutting his trees down. He then cautioned that the Commission should not overburden a parti- cular parcel with restrictions that no other area of the community is required to fulfill. Commissioner Hawks stated that he does not feel the general guidelines and criteria would be too restrictive. He then indicated that he feels those guidelines could serve to provide quality development, which could set the trend for development of the entire area. He noted 05-31-88 225 that the property owner to the east has expressed concern about compatibility of building exte- riors; and he feels that should be considered. Commissioner Vant Hull stated that she feels if the Commission is really interested in the future of Bozeman, including economic development, it will take whatever steps possible to pro- tect the vista when entering the community. She then indicated concurrence with Commissioner Hawks' position. I Commissioner Martel noted that, although the property owner to the east has expressed concern about the compatibility of exterior finishes, the Holiday Inn is the closest development to the site; and it is quite some distance away. Commissioner Goehrung indicated that concerns about the entryways to the community must be addressed. He noted since those are not addressed in the current zoning regulations, they should be addressed through the addition of the "TlI designation. Commissioner Hawks stated that interpretation of the M-1 zoning regulations is not com- patible with an entryway to the community. He then suggested that a zoning district for entry- ways that provides flexibility would be helpful; and a "T" designation should be utilized until that is put in place. City Manager Wysocki recommended that the Commission approve the Zone Map Change re- quested; and that the "T" designation be added to the B-2 and the M-1 zones, with the follow- ing criteria to be addressed for each: B-2- T - This area is planned as a commercial highway business district. It is located along North 11 th Avenue and Oak Street, and should be considered part of the north entrance to the city. The purpose of reflecting this as a transitional zone is to protect and reduce the visual and other detrimental effects this comm- ercial highway district may have on adjacent residential districts, major roads and the general community. A. I t shall be required that all properties within this district that abut the major roads or any residential district shall provide sufficient landscaping, screening, etc., to buffer the proposed use from property and uses in ad- joining districts and from adjacent major roads; and I B. Because this district is located near and adjacent to major streets, signing of uses within the district can be distracting to passing motorists as well as adjacent residential districts. Therefore, signing within this district shall be appropriate to the use, attractive to the area and designed in such a manner so as not to be distracting to passing motorists or occupants of ad- jacent residential properties. This shall be specifically construed to mean that no sign shall reflect light directly to adjacent roads or residential properties. M-1- T - Because this district is located near the interstate and adjacent to Baxter Lane and the Baxter Lane reroute, certain precautions must be taken to assure the attractive appearance of this entryway into Bozeman. This concern shall be ad- dressed through review of proposed architectural and development standards which consider the following items: A. The spacing and orientation of buildings and other structures to preserve views of the Gallatin range when building heights will block a portion of these views from 1-90; B. The provision of adequate landscaping or appropriate screening to assure that storage, service and refuse areas are concealed from 1-90 and any public street; C. Building exteriors which are compatible with the area and existing devel- opment; D. 5ignage which does not reflect light onto adjacent properties or roadways and does not excessively obstruct views of the Gallatin range from 1-90. Commissioner Martel stated he does not support that recommendation because he does not feel the "T" overlay is necessary. He then indicated that he feels the criteria listed are sub- I jective, which could lead to problems during future development. He also expressed concern that the in-house review process can become easily derailed, leading to the full-blown public review process. It was moved by Commissioner Hawks, seconded by Commissioner Vant Hull, that the Commission approve a Zone Map Change for Jerry Perkins from A-S, Agricultural-Suburban, to B-2- T, Community Highway Business with a Transitional Overlay; M-1- T, Commercial--Light Man- ufacturing with a Transitional Overlay; R-3, Residential--Medium-density; R-4, Residential-- Medium-density--Apartments; and R-O, Residential Office, on Tracts 2 and 3, Certificate of 05-31-88 226 Survey No. 1215, situated in the northwest one-quarter of Section 1, Township 2 South, Range 5 East, Montana Principal Meridian, with the Transitional designations to be in-house reviews addressing those criteria listed in the City Manager's recommendation above. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Hawks, Commissioner Vant Hull, Commissioner Goehrung and Mayor Stiff; those voting No being Commissioner Martel. Ordinance No. 1256 - establishing the crime of throwing or shooting an arrow, bolt or other I projectile from a bow or crossbow or other device within the city limits City Manager Wysocki presented Ordinance No. 1256, as prepared by the City Attorney, entitled: ORDINANCE NO. 1256 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, ESTABLISHING THE CRIME OF THROWING, SHOOTING, FIRING OR OTHERWISE DISCHARGING AN ARROW, BOl T, OR OTHER PROJECTILE FROM A BOW OR CROSSBOW, OR OTHER DEVI CE WITH I N THE CITY LIMITS OF BOZEMAN, MONTANA AND PROVIDING FOR THE PENALTY. The City Manager reminded the Commission that this ordinance was provisionally adopted, as revised, at their regular meeting of May 16, 1988. He then recommended that it be finally adopted at this time. It was moved by Commissioner Vant Hull, seconded by Commissioner Martel, that the Com- mission finally adopt Ordinance No. 1256, establ ishing the crime of throwing, shooting, firing or otherwise discharging an arrow, bolt or other projectile from a bow or crossbow or other device within city limits. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Vant Hull, Commissioner Martel, Commissioner Goehrung, Commissioner Hawks and Mayor Stiff; those voting No, none. Ordinance No. 1257 - amending Sections 5.56.100 and 5.56.146 and adding Section 5.56.145 to the Bozeman Municipal Code to revise limitations on gaming devices City Manager Wysocki presented Ordinance No. 1257, as prepared by the City Attorney, I entitled: ORDINANCE NO. 1257 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, AMENDING SECTIONS 5.56.100 AND 5.56.146 AND ADDING SECTION 5.56.145 TO THE BOZEMAN MUNICIPAL CODE TO REVISE THE REGULATIONS FOR LICENSES ISSUED FOR CARD TABLES AND ELECTRONIC KENO MACHINES AND THE OVERALL LIMITATION ON GAMING DEVICES PER ESTABLISHMENT. The City Manager reminded the Commission that they had provisionally adopted this or- dinance, as revised, at their regular meeting of May 16, 1988. He then recommended that it be finally adopted at this time. City Attorney Becker reminded the Commission that this ordinance is silent on the hours of operation for the various gaming devices; therefore, the State Statute prevai Is. He noted that the hours of play for video draw poker machines and electronic keno and bingo machines is from 8:00 a.m. to 2:00 a.m.; and there are no established hours of play for card tables. Mayor Stiff noted the Commission has received a letter from Phi I Schneider concerning this item. Ms. Tamara Hougen, Molly Brown, requested that the establishments be allowed to install the maximum number of machines allowed. Mr. Steve Arnt, partner in Little Big Men, noted his business is currently in transition after operating for twelve years. He encouraged the Commission to allow the maximum number of machines allowed under State statute, rather than the limits contained in the ordinance currently before them. He then noted that the City of Billings will have approximately $1.1 mil/ion from I the machines within their community, while the City of Bozeman is projected to receive approx- imately 15 percent of that amount. He then noted that the State seems to be moving toward tak- ing over all regulation of gaming devices, suggesting that the City may wish to conform with State guidelines now rather than waiting until the change is made. Mr. Phil Schneider, 1402 South Willson Avenue, owner of the Overland Express Restau- rant and manager of the Sundance Saloon, noted he can appreciate the concern about casino-type operations in the community. He then noted that the operators of restaurants where alcohol ic 05-31-88 - 227 beverages are sold should have the same opportunity to make business decisions based on square footage as other businessmen. He stated that five or six establishments may install the maximum number of machines allowed if the State law is followed; however, the others will have less. Mr. Schneider then indicated that the restaurant and bar business is approximately 40 percent lower than it was five years ago; and they need as many opportunities to increase business as possi~ ble. He stated that he does not feel anyone will come in and take over the gambling industry in I Bozeman, especially since no beer, wine or liquor licenses are available within the city. Mr. Schneider then asked that the City allow the business owners to make decisions with the frame- work that has been established by the State rather than adopting this more restrictive ordi- nance. Mr. Jim Grubs, partner in Little Big Men, indicated that he lives in Billings. He stated he sees nothing wrong with electronic gambling devices, noting that they provide entertainment for local people as well as tourists. He then stated that twenty machines do not create a casino; and the City realizes revenue under the existing fee structure. Commissioner Martel indicated he could support an increase in the maximum number of machines allowed; however, he does not feel the majority of the Commission would. Commissioner Hawks stated he might be willing to support an increase in the number of machines allowed at some time in the future; however, he does not feel an increase should be made at this time. Commissioner Vant Hull noted the City has always maintained a moderate stand on the number of gaming devices allowed; and she feels it is better to maintain that position than to open it up. It was moved by Commissioner Goehrung, seconded by Commissioner Hawks, that the Com- mission finally adopt Ordinance No. 1257, amending Sections 5.56.100 and 5.56.146 and adding Section 5.56. 145 to the Bozeman Municipal Code to revise the limitations placed on the number of gaming devices allowed per establishment. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Goehrung, Commissioner Hawks, Commissioner Vant Hull I and Mayor Stiff; those voting No being Commissioner Martel. uest for annexation submitted b Cardinal Distributin and Jim Kack - Parcel Tracts A-l and -1 of COS 156-C City Manager Wysocki, submitted to the Commission the staff report for the annexation re- quested by Cardinal Distributing and Jim Kack. The subject request is for annexation of Parcel 2 of Certificate of Survey No. 970, containing 8.371 acres; Tract A-l of Certificate of Survey No. 156-C, containing 10.96 acres; and Tract B-1 of Certificate of Survey No. 156-C, containing 2.11 acres, all located in the northeast one-quarter of Section 1, Township 2 South, Range 5 East, and the northwest one-quarter of Section 6, Township 2 South, Range 6 East, Montana Principal Meridian, Gallatin County, Montana. The subject site contains a total of 21.44 acres. The City Manager indicated that access to the Cardinal Distributing site is from Griffin Drive, along a 60-foot easement from the Burlington Northern for street purposes only. He stated that the subject property is contiguous to the city limits, bordering the east side of the McChesney I ndustria I Pa rk. City Manager Wysocki stated that Mr. Kack has indicated he has no plans for development of his two parcels; however, he has agreed to annexation of those parcels to make the Cardinal Distributing property contiguous to the city limits. He noted that a looped road system will be provided; however, Mr. Kack has asked to have the location of that system delayed until he has determined how the parcels are to be developed. City Manager Wysocki indicated that water service must be installed to the Cardinal Dis- tributing building to provide adequate water for fire protection. I Planning Director Andy Epple reviewed the findings contained in the Staff report. He distributed to the Commission copies of the road easement, noting that the City purchased the road easement from the Burlington Northern in 1981 at a cost of $7,955. He indicated that the easement provides for a road only, not any underground utilities; and that issue must be re- solved prior to annexation. He then indicated that Mr. Brandt, Cardinal Distributing, has talked to representatives of Montana Rail Link, which has picked up the easement through pur- chase of the Burlington Northern Railroad system; and their initial indication is that they would have no problem with amending the easement to allow the underground utilities. 05-31-88 228 Planning Director Epple then stated that the staff report addresses the three parcels listed in the request for annexation. He indicated, however, that a majority of the Cardinal Distributing building is located on the land within Burlington Northern Lease No. 22836; and that has not been included in the staff report. He noted that the primary purpose of seeking this annexation is to provide City services to the Cardinal Distributing facilities; therefore, he suggested that the parcel be added. He indicated that Mr. Brandt does have a letter from the railroad indicating they have no opposition to the annexation of that leased property. He then I noted this will make no changes in the staff report or recommendations. Mayor Stiff asked if the access easement is to remain outside the city limits, suggesting it should possibly be included also. The Planning Director stated that could be a possibility. He noted that the Burlington Northern Railroad has indicated it would have no problem with annexation of the leased property as long as it does not increase their tax liability. He reminded the Commission that the access is simply a leased easement; therefore, the Railroad still owns the property. Mr. Jim Kack, 6531 Jackson Creek Road, stated that when he purchased the property up- on which Cardinal Distributing is located, he wanted a spur track to the building. He stated that the railroad suggested that he place the building mainly on the leased property so that the existing spur line could be utilized. He then indicated that the Railroad entered into a per- petual lease with the City for a road easement because it cannot sell the property under the Congressional Act through which it became railroad property. Mr. Kack stated that he sub- mitted a check to the City for the lease; and the City in turn paid the Burlington Northern. City Manager Wysocki recommended that the staff bring back a resolution of intent to annex the subject property, including the leased parcel, for consideration at next week's meeting; and the Commission concurred. Report from ad hoc committee to develop a comprehensive sign ordinance - Marjorie Johnson City Manager Wysocki stated that Mrs. Marjorie Johnson has asked for an opportunity to address the Commission concerning the ad hoc committee to develop a comprehensive sign ordi- I nance. Mrs. Marjorie Johnson, Chairman of the committee, indicated that Rita Merkel has been selected as the Vice-Chairman; and Ron Brey is serving as the recording secretary and liaison. She noted that they have set the first and third Wednesdays of each month at 7:00 p.m. at the Library as their meeting time; and they have met three times to date. She noted the committee has a published agenda for each week; and after they have completed the agenda, they establish the agenda for the following meeting. She then invited the Commissioners to attend any of their meetings. Mrs. Johnson stated that the committee has formed a purpose statement or mission state- ment, as directed by the Zoning Commission and the City Commission, dividing the subject into five sections. She indicated that signs are not to interfere with traffic, pedestrian traffic, or visibility. She noted that the committee feels all businesses should be given an equal opportun- ity to have the public find their services. She also indicated that they want to make inviting entrances to the community and to preserve the natural beauty of the area. She then indicated that the committee will review all considerations with these items in mind. Mrs. Johnson stated that the committee is reviewing ordinances which have been tested in other communities; and they plan to base a proposed ordinance on those. She indicated that tomorrow evening they will begin by developing definitions. Mrs. Johnson stated that the Planning Staff has been helpful in providing information and monitoring the committee's actions for language and legality as well as conformance with the Uni- form Building Code and Uniform Sign Code. She stated that Mr. Dean Roberts, Myhre Signs in I Helena, wi II meet with the committee tomorrow. Mayor Stiff asked if minority reports will be included in the final report; and Mrs. Johnson indicated they will be. Break - 3:45 to 3:53 p.m. Mayor Stiff declared a break from 3:45 p.m. to 3:53 p.m., in accordance with Commission policy established at their regular meeting of March 14, 1983. 05-31-88 229 Ordinance No. 1259 - Adopting the National Electrical Code, 1987 Edition City Manager Wysocki presented Ordinance No. 1259, as prepared by the City Attorney, entitled: ORDINANCE NO. 1259 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, AMENDING ORDINANCE 1084, SECTIONS 1 AND 8, AS CODIFIED RESPECTIVELY AS SECTIONS 15.08.010 AND 15.08.100 OF THE BOZEMAN I MUNICIPAL CODE PROVIDING FOR THE ADOPTION OF THE 1987 EDITION OF THE NATIONAL ELECTRICAL CODE AS MODIFIED BY THE STATE OF MONTANA AND SUPPLEMENTAL LOCAL WIRING RULES. The City Manager indicated that the State has adopted the 1987 Edition of the National Electrical Code, with modifications, and recommended that the Commission adopt the same. It was moved by Commissioner Hawks, seconded by Commissioner Vant Hull, that the Commission provisionally adopt Ordinance No. 1259, adopting the 1987 Edition of the National Electrical Code, and that it be brought back in two weeks for final adoption. The motion car- ried by the following Aye and No vote: those voting Aye, being Commissioner Hawks, Commis- sioner Vant Hull, Commissioner Martel, Commissioner Goehrung and Mayor Stiff; those voting No, none. Discussion - Amnest from penalt and interest pa ments for delin uent special assessments for a specified period 0 time City Manager Wysocki stated that Commissioner Martel had requested this item be placed on the agenda. He noted that the Commissioner included a written statement in the packets. Commissioner Martel noted that a few weeks ago, the Commission denied a request from Mike Rodrique for waiver of the penalty and interest on delinquent special assessments. He in- dicated that prompted him to consider the possibility of establishing an amnesty period for all those with delinquent assessments, rather than considering a single exception. The Commis- sioner noted that a previous Commission initiated and adopted the acceleration policy; and he I feels that to decelerate or allow people to bring those assessments current could be beneficial. He then suggested the period of June 1 through 30, 1988 as an amnesty period. City Manager Wysocki submitted to the Commission a letter from Mr. James Gough, 318 South Church A venue, stating opposition to the proposed amnesty period. Administrative Services Director Miral Gamradt stated that in January 1982, the Commis- sion adopted an acceleration policy, providing that when one assessment becomes delinquent, the entire balance becomes due and payable. He noted that the penalty and interest are then assessed against the entire balance rather than the amount of the single assessment, based on a written procedure prepared by the former City Attorney. He stated that the City has allowed property owners to reinstate the subsequent assessments by paying the delinquent assessment plus penalty and interest based on the entire balance. The Administrative Services Director stated that City Attorney Becker reviewed the written procedures while addressing the Valley Unit matter and expressed concern; therefore, a copy was sent to Dorsey and Whitney for their review in March 1987. He noted that the firm supported all of the procedures listed except one. He stated that once a special improvement district assessment has been accelerated, the entire balance, plus penalty and interest, must be paid. He then indicated that slightly over a year ago, the Commission revised its SID policy; and the acceleration provision was removed. Administrative Services Director Gamradt stated that the City is still allowing those who have had assessment(s) accelerated to pay only the delinquent assessment(s) plus penalty and interest, reinstating the remaining balance. He noted that has provided a consistency in the I manner in which all delinquencies are handled. City Manager Wysocki stated the City has tried to provide a middle ground for people to reinstate delinquent assessments. He then reminded the Commission that in 1982, when the Com- mission adopted the acceleration policy, monies could be invested at 17 to 18 percent interest. He noted that those with monies invested at that rate could make money by leaving their invest- ments since the 2 percent penalty and 10 percent was being charged against the delinquent as- sessment only. The City Manager stated that he feels the acceleration policy was a sound de- 05-31-88 230 cision at that time, since it provided the incentive to pay assessments in a timely manner. He noted, however, that times have changed; and he feels that last year's decision to not accelerate was also a sound one. The City Manager then suggested that if the Commission determines that an amnesty per- iod for reinstatement of delinquent assessments would be appropriate, legislation would be re- quired to allow that process. He noted that under the current State statutes, it is not possible. Commissioner Martel stated he feels the City is not treating all individuals with delinquent I assessments equally, noting that a portion of those delinquencies are accelerated while others are not. I n response to a question from the City Manager, Administrative Services Di rector Gamradt briefly reviewed the tax sale process. Commissioner Martel noted that the City continues to make the bond payments, even though some individuals do not pay their assessments. He suggested that if those individuals were given an incentive to pay their delinquencies, it could improve the City's cash flow. Commissioner Hawks indicated that he could support an amnesty period if the delinquen- cies were greater than the value of the property. He noted, however, that the del inquencies should never be more than three years old; therefore, the delinquency is less than the value of the property. Commissioner Marte' noted that he has never seen a bond opinion that addresses accelera- tion or deceleration of delinquencies. City Attorney Becker stated that bond counsel does not address delinquencies in its bond opinion. He then indicated that the State statute is very specific in how delinquencies are to be handled, stipulating the percentages of penalty and interest that will be charged. The City At- torney then stated that the City has treated all delinquencies consistently, under the policy that existed at that time. City Manager Wysocki recommended that the Commissioners consider the possibility of pur- suing legislation to provide the City latitude on the handling of delinquent assessments. He sug- gested that this might be a topic to submit to the League of Cities and Towns office for consid- I eration. He further suggested that the staff write a letter to Dorsey and Whitney to determine if it would be in local governments' best interests to pursue this through the legislative process. The Commission concurred. Discussion - Refinancing of S.I . D. bonds City Manager Wysocki distributed to the Commission a memo from Administrative Services Director Miral Gamradt. Administrative Services Director Gamradt stated that the staff has pursued the possibility of refinancing the bonds for some of the special improvement districts where the interest rate is substantially higher than the rate currently available. He noted that the bonds for the special improvement districts in the Valley Unit Subdivision reflect a majority of the monies to be refin- anced; and if those bonds cannot be refinanced, it would not be worthwhile to consider the others. He indicated that D. A. Davidson is currently assessing the benefit of refinancing the bonds, noting that issuance and underwriting costs would be incurred in the process. He stated those costs would be paid up front by the City, through use of Revolving Fund monies. The interest rate assessed to the property owners within those districts would then be .5 percent higher than the actual percentage of the bonds. He indicated that over the remaining I jfe of the bonds, the City would then recover all of the initial costs. The Administrative Services Director stated that the remaining I ife of the bonds would not change under this procedure, only the interest rate. He then indicated that if this process is to be implemented, D.A.Davidson has suggested that it be completed prior to July 1 to avoid the I need to make those principal and interest payments due as of that date. Those monies could then be used to help pay the issuance costs. Mr. Gamradt then reminded the Commission that the City will not receive a direct benefit from the lower interest rate; those savings will be passed along to the property owners. He noted that the decrease in interest payments on the Valley Unit special assessments will benefit the City, since those assessments are delinquent. He then cautioned that the bonds to be is- 05-31-88 231 sued under the refinancing would be serial bonds rather than term bonds, which means that approximately five percent of the bonds must be paid each year in addition to the interest pay- ments. Mayor Stiff asked if the bonds would be refunded through this process or if an escrow account would be utilized. The Administrative Services Director stated that on Iy one SID would require an escrow, I since the issue is not old enough to fully redeem at this time. The remainder would be fully re- funded immediately. In response to a question from Commissioner Hawks, the Administrative Services Director indicated that the mill levy currently assessed for the SID Revolving Fund may increase slightly initially and then should decrease slightly each year thereafter. City Manager Wysocki stated he feels it is important to pay approximately five percent of the principal each year, even if term bonds have been issued. He cited the Bullthistle Subdiv- ision in Belgrade as an example, noting that little principal was paid over the years; and the balance remaining at the end was too high to attract buyers during a tax sale. Administrative Services Director Gamradt indicated that the staff did discuss this refin- ancing with other bond consultants; however, D.A. Davidson is the only firm that has indicated an interest in pursuing the item. The City Manager stated that this item was placed on the agenda for initial discussion. He then indicated that when this item appears on the agenda for action, the Commission will be asked to move quickly, since the interest rates fluctuate so quickly. RFP - Seeking Engineer for Sidewalk District City Manager Wysocki noted that Commissioner Hawks had requested this be removed from the Consent I tems for discussion. He then stated that the process of seeking proposals and se- curing an engineer for the sidewalk program will take thirty to forty-five days. He noted the language in the request for proposals is broad enough to allow the Commission to decide whether I a standard type sidewalk will be required or if topographical features and possibly curvilinear design wi II be allowed. Commissioner Vant Hull asked about timing of the process, including the time for public hearings. City Attorney Becker stated he is in the process of preparing the resolution of intent to create the sidewalk district. He noted, however, that each parcel must be identified; and that is a lengthy process. He indicated the public hearing will be held after adoption of that resol- ution; therefore, it will probably occur in July. City Manager Wysocki noted that one item which must be addressed is whether the Com- mission will require that sidewalks be installed within previously-approved planned unit dev- elopments. He suggested there may be conditions for approval of those PUD's that will require addressing in a specific manner. Commissioner Hawks stated he had requested this item be removed for discussion because he feels the City should have a definite policy in place, and this advertisement is premature. He noted that if a more flexible sidewalk policy is adopted, people must have a longer period of time to prepare for the installation of those sidewalks. He noted that sidewalks will still need to abut properly from one property to the next; however, he feels each neighborhood should be allowed an opportunity to state what type of sidewalks they wish to install. The Commissioner suggested that with that lengthy process, one summer would be spent in the planning stages. He then indicated that he feels the following summer should be provided for those who wish to install their own sidewalks; and the City could then finish installing the sidewalks in that area I the following summer. City Manager Wysocki indicated that flexibility in the policy can be discussed while the staff pursues engagement of an engineer. He noted that engineer would then be available to ad- dress issues raised during development of the upcoming sidewalk district. Commissioner Hawks asked how the engineering services are to be charged to the prop- erty owners, especially if flexibility of design enters into the process, suggesting that a straight percentage of the cost be used. Commissioner Martel stated he feels that engineering costs should be assessed on the amount of services requested. He noted that a straight line sidewalk does not incur the engi- 05-31-88 232 neering services that a curvilinear sidewalk would; therefore, he feels the additional engineering costs should be borne by those property owners incurring the costs. Commissioner Hawks indicated he has received several suggestions concerning development of the sidewalk program. He noted one is that the neighborhoods be allowed to determine how they wish the sidewalks installed. Another suggestion is that the Garden Club or some other volunteer group review all of the sidewalk district, making suggestions on the installation of sidewalks to the consulting engineer. He stated that he is interested in incorporating volun- I teerism into the process and encouraging public participation. City Manager Wysocki reminded the Commissioners that they are representative of the com- munity and must make the decisions. Mayor Stiff noted that the Commission's discussion is revolving around aesthetics. He reminded the Commissioners, however, that the original reason for requiring the installation of sidewalks was public safety. Commissioner Martel noted one area where safety is a major concern is Highland Boulevard and Hyalite Subdivision. He indicated, however, that there are no houses along the west side of the street; and the yards along the east side of the street are all landscaped. City Manager Wysocki reminded the Commission that it is already an established statement that the installation of sidewalks would be viewed differently in the future. Commissioner Martel stated that he feels each person should be able to consider what type of sidewalk they wish to install. He indicated that he does not feel a volunteer group should be given the right to make a recommendation on everyone's property within the proposed district, but they could be available for those who wish their input. Commissioner Goehrung indicated that after walking around the community, he feels that 20 percent or less of the people in the community would be interested in installing something other than a straight-line sidewalk. He then suggested that the City proceed with selection of a consulting engineer. He noted that the number of phone calls concerning the program will indi- cate where special sidewalks are desired. He further suggested that one of the Commissioners could be responsible for seeking public participation in this process. I Commissioner Hawks noted the Commission may wish to consider requiring the installation of sidewalks along one side of the street only. He also suggested that some neighborhoods may not need to install sidewalks; however, they could possibly be required to pay a portion of the costs of installing sidewalks along a major street which serves that development. It was moved by Commissioner Vant Hull, seconded by Commissioner Martel, that the Com- mission authorize the staff to advertise a IIrequest for proposals" for an engineer on the sidewalk program. The motion carried by the following Aye and No vote: those voting Aye being Com- missioner Vant Hull, Commissioner Martel, Commissioner Goehrung, Commissioner Hawks and Mayor Stiff; those voting No, none. Discussion - FY I Items City Manager Wysocki presented to the Commission the following IIFor Your Information" items. (1) An invitation to an informal dedication of the East Gallatin State Recreation Area, to be held at 10:00 a.m. on June 4, 1988. (2) A summary of survey results recently conducted by the Montana League of Cities and Towns with leading gubernatorial candidates on key issues. (3) The City Manager briefly addressed the water supply issue. He stated that on May 24, the plant had an influent of 7.3 million gallons and an effluent of 4.3 million gallons. On May 27, it had an influent of 6.5 mill ion gallons and an effluent of 4.4 million gallons, which is the highest amount to date. He indicated that run-off is anticipated until the middle of June, I therefore, Hyalite Reservoir will probably peak around that time. The City Manager then suggested that the staff monitor the demand closely, not imposing any water restrictions at this time. He noted that when the demand begins to run 7 to 7.5 mil- lion gallons per day, it will be time to address water restrictions. (4) Commissioner Hawks noted that the Forest Service plans do include a handicapped access dock at Hyal ite Reservoir. He indicated it is to be a floating dock, so it will be usable now as well as when the dam is raised. 05-31-88 233 (5) Commissioner Vant Hull distributed to the Commission copies of two articles. She indicated the first is from the High Country Independent Press and addresses uncovered loads of garbage. The second article is from Spokane, where $41,000 has been spent on publicity to overcome opposition to the construction of an incinerator. (6) Commissioner Goehrung indicated that he has written a letter to the County Health Board expressing concern about the immunization program, which provides only the oral form of I polio immunization. He stated that one pediatrician has also expressed concerns about the program. (7) Mayor Stiff asked when the Commission will begin work on the budget. He noted that various Commissioners are planning to be out of town at times during the summer and would like to know how to plan those absences. The City Manager indicated that the staff plans to submit the budget to the Commission in late June, with that document to be discussed from mid-July to the end of July. (8) Mr. Jim Durkin, Executive Director of the Gaming I ndustry Association of Montana, asked for a copy of the ordinance revising the number of gaming devices allowed per establish- ment. He then encouraged the Commission to consider the tourist industry when setting the limit on gaming devices, noting it is a good source of entertainment as well as a revenue gen- erator for the community. He indicated that there will probably be changes made in the gaming regulations during the next legislative session. Consent Items City Manager Wysocki presented to the Commission the following Consent Item: Claims It was moved by Commissioner Martel, seconded by Commissioner Goehrung, that the Con- sent Item be approved as listed above, and the appropriate persons be authorized and directed to complete the necessary actions. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Martel, Commissioner Goehrung, Commissioner Hawks, Commis- I sioner Vant Hull and Mayor Stiff; those voting No, none. Adjournment - 5:17 p.m. There being no further business to come before the Commission at this time, it was moved by Commissioner Goehrung, seconded by Commissioner Hawks, that the meeting be adjourned. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Goehrung, Commissioner Hawks, Commissioner Vant Hull, Commissioner Martel and Mayor Stiff; those voting No, none. ALFRED M. STIFF, Mayor ATTEST: ROBIN L. SULLIVAN Clerk of the Commission I 05-31-88