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MINUTES OF THE MEETING OF THE CITY COMMISSION
BOZEMAN, MONT ANA
July 11, 1988
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The Commission of the City of Bozeman met in regular session in the Commission Room,
Municipal Building, July 11, 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 be re-
moved for discussion. Commissioner Martel requested that the claims be removed from the Con-
sent Items for discussion.
Minutes
It was moved by Commissioner Hawks, seconded by Commissioner Vant Hull, that the min-
utes of the regular meeting of July 5, 1988 be approved as submitted. The motion carried by
the following Aye and No vote: those voting Aye being Commissioner Hawks, Commissioner Vant
Hull, Commissioner Martel, Commissioner Goehrung and Mayor Stiff; those voting No, none.
Open bids - seal coat, hot mix overlay, cold milling and hot mix overlay, and bituminous plant
mix
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This was the time and place set for the opening of bids for seal coat, hot mix overlay,
cold milling and hot mix overlay, and bituminous plant mix, to complete street improvement pro~
jects during this summer.
The affidavit of publication for the advertisement for bids was presented.
It was moved by Commissioner Vant Hull, seconded by Commissioner Martel, that the bids
be opened and read. The motion carried by the following Aye and No vote: those voting Aye
I being Commissioner Vant Hull, Commissioner Martel, Commissioner Goehrung, Commissioner Hawks
and Mayor Stiff; those voting No, none.
The following bids were then opened and read:
Schedule I Schedule II Schedu Ie III Schedule IV Total
Big Sky Paving
Bozeman, Montana
License No. 4384A $ 32,006.00 $ 47,313.50 $ 87,403.91 $ 26,311.00 $193,034.41
Pioneer Ready Mix
Bozeman, Montana
License No. 6503A $ 25,404.50 $ 42,250.00 $ 60,307.00 $ 21,600.00 $149,561.50
It was moved by Commissioner Martel, seconded by Commissioner Goehrung, that the bids
be referred to staff for review and a recommendation to be submitted at next week's meeting.
The motion carried by the following Aye and No vote: those voting Aye being Commissioner
Martel, Commissioner Goehrung, Commissioner Hawks, Commissioner Vant Hull and Mayor Stiff;
those voting No, none.
Appointment of sub-committee to review pledged securities as of June 30, 1988
City Manager Wysocki reminded the Commission that the pledged securities must be re-
viewed quarterly in accordance with State Statute.
It was moved by Commissioner Goehrung, seconded by Commissioner Hawks, that Commis-
sioner Martel and Commissioner Goehrung be appointed to review the pledged securities as of
I June 30, 1988. 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.
Claims
City Manager Wysocki reminded the Commission that Commissioner Martel had requested
this item be removed from the Consent Items. He noted that two separate I istings have been
submitted, one for Fiscal Year 1988 monies and one for Fiscal Year 1989 monies.
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Commissioner Martel indicated he had two questions about the claims listings which he had
not had an opportunity to submit to staff. He then asked those questions; and the City Man-
ager responded.
It was moved by Commissioner Hawks, seconded by Commissioner Vant Hull, that the
claims be approved as listed, and that the Director of Finance be authorized and directed to pay
same. The motion carried by the following Aye and No vote: those voting Aye being Commis-
sioner Hawks, Commissioner Vant Hull, Commissioner Martel, Commissioner Goehrung and Mayor I
Stiff; those voting No, none.
Discussion - FY I Items
City Manager Wysocki presented to the Commission the following "For Your Information"
items.
(1 ) Weekly water use report for the week ending July 6, 1988.
(2) A response from D.A. Davidson to letters from City Attorney Becker and former
City Attorney J. Robert Planalp.
Mayor Stiff asked the City Attorney what the letter means.
City Attorney Becker reminded the Commission that they had asked him to obtain a res-
ponse on whether ownership of property can be transferred without assumption of the obligation
for the special assessments. He then reminded the Commission that ownership of the lots was
listed under a corporation; however, Mr. and Mrs. Jahnke filed a personal guarantee with D.A.
Davidson, which they have breached. He stated that D.A. Davidson has responded to that
breach by filing to intervene in the City's lawsuit, which the District Court has allowed.
The City Attorney stated that ownership of property is not to be transferred without the
obligation for the special assessments being transferred also. He then reminded the Commission
that the tax sale process has begun on the delinquencies in Valley Unit Subdivision; and if those
are not brought current within the next year, the City will acquire those parcels.
Commissioner Hawks noted that the City has had an application for change in land use
designation from an individual who has acquired a portion of the property without assuming the I
obligation for special assessments. He then asked if that will weaken the City's position in this
situation.
The City Attorney indicated it will not. He noted that Mr. Delaney is the owner of
record of specific parcels within that subdivision; and that is where the breach of contract has
occurred because he has not assumed responsibility for the liability involved. He also reminded
the Commission that the City was not a party to the transaction which transferred the property.
City Attorney Becker then stated that two processes are taking place concurrently, total-
ly independent from each other. He noted the civil action is taking place in District Court; and
the tax sale process has been started. He indicated that the tax sale process appears to be the
best remedy to the situation at this time.
(3) Agenda and packet for the City-County Planning Board meeting to be held on
Thursday, July 14, 1988.
(4) The City Manager reminded the Commission of the Interagency Breakfast, which is
to be held at 7:00 a.m. on Wednesday, July 13, at the Baxter Hotel.
(5) The City Manager stated he has hired City Engineer Phill Forbes as the new Dir-
ector of Public Service, providing a brief review of his background. He also indicated that a
sl ight restructuring of the Engineering Division will occur as a result of this transfer.
(6) The City Manager stated that wells have been drilled at Kirk Park, Cooper Park
and Centennial Park for irrigation purposes. He noted the Mr. Ed Juvan was the consultant on
the drilling of those wells; and Dr. Stephan Custer and the USGS have been involved in the
drilling and testing of them as well. He indicated that the well at Cooper Park is operative at I
this time; and the other two will be shortly. He noted that the sprinkler system recently ap-
proved for the Senior Center grounds will be tied into the well at Centennial Park.
The City Manager noted that the use of these wells for irrigation wi II remove these parks
from the City's water system, thus expanding those capabilities slightly. He indicated this will
decrease the amount of monies paid to the Water Fund; however, electricity costs will be incur-
red through pumping of the water.
(7) A copy of the Butte/Silver Bow County agreement with the State Department of
Highways was distributed to the Commission, per Commissioner Hawks' request.
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(8) Commissioner Hawks indicated there are two interesting articles in the July issue
of the American City and County, one on impact fees and one on wastewater sedimentation
basins. He stated he will make copies for distribution to the Commission.
(9) Mayor Stiff noted that last week the Commissioners began routing information con-
cerning the UDAG program. He indicated that articles in the Nation's Cities Weekly for two con-
secutive weeks have stated that program is to be eliminated; therefore, he feels it is not nec-
I essary to continue routing of the UDAG information.
(10) Mayor Stiff stated the City has just received the latest edition of the Elected
Officials Handbook, which is published by the ICMA. He noted there are five books in the set
and suggested that each Commissioner take one, routing them to the other Commissioners when
fin ished.
(11 ) City Attorney Becker stated the Supreme Court has upheld the District Court's
decision in Wheeler versus the City concerning water damage to the Health Habit. He noted,
therefore, the City has incurred no liability.
Consent Items
City Manager Wysocki presented to the Commission the following Consent Items.
Request for permission to close Main Street - Wednesday, August 3, 5: 30 to
10:00 p.m. - Taste of Bozeman; waiver of open container ordinance from
7: 00 to 9: 00 p. m. for seated guests
Authorize absence of Mayor Stiff from the re ular meetin of July 25, 1988
in accordance with ection 7-3-4322(2 , MCA
Application for renewal of Gaming License - Willie's Saloon, 1332 East Main
Street - 4 video draw poker machines - through June 30, 1989
Bui Iding I nspection Division report for June 1988
I t was moved by Commissioner Vant Hull, seconded by Commissioner Martel, that the Com-
mission approve the Consent Items as listed, and authorize and direct the appropriate persons to
complete the necessary actions. The motion carried by the following Aye and No vote: those
voting Aye being Commissioner Vant Hull, Commissioner Martel, Commissioner Goehrung, Commis-
I sioner Hawks and Mayor Stiff; those voting No, none.
Discussion re billing for water and sewer services
Mr. Max Parkin addressed the Commission concerning the proposed goal to bill landlords
for water and sewer services. He stated that, although his legal address is in Long Beach,
California, he has been a landlord in Bozeman for over thirty years. He then indicated that he
did own residential properties at one point, and he currently owns two pieces of commercial
property.
Commissioner Vant Hull stated that Bozeman has a mobile population; and it seems that
often the rate payers of the community subsidize those who leave without paying their bi lis.
She noted that to hold the landlord responsible for those costs could help to alleviate some of
the bad debts incurred under the present method. She stated the landlord could hold the ten-
ant responsible for paying those costs or could include those additional costs in the rental rate.
Mr. Parkin stated he did not incur any problems with non-payment when he had the resi-
dential property; however, the commercial properties have caused different problems. He stated
that each commercial building has one water meter, even though more than one tenant may oc-
cupy the structure. He noted this can cause problems when trying to split the water and sewer
bill, suggesting that to install one meter per business could reduce those conflicts. Mr. Parkin
stated the City is in the water business and should be willing to accept the collection and bad
debt process inherent in business rather than trying to pass it along to the landlord.
Mr. Max Parkin then addressed the issue of installation of sidewalks. He noted that he
I has property in the area which was required to install sidewalks last summer. He stated he is
in favor of sidewalks; however, he incurred over $5,000 in costs for the project because the
City required a portion of the driveway to be removed because it was slightly off the line. Mr.
Parkin noted that he was an engineer for over thirty years and learned early that, although a
straight line is nice in theory, sometimes practicality must be involved.
Award bid - bond sale for SID No. 653, paving a portion of Graf Street - $211,000
This was the time and place set for award of the bid for the bond sale for Special Im-
provement District No. 653, for paving a portion of Graf Street to collector street standards.
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City Manager Wysocki stated that Administrative Services Director Gamradt has carefully
reviewed the bids which were received.
The Administrative Services Director submitted to the Commission a memo listing the three
bids received. He noted that review of the bids revealed that they were properly figured. He
then stated that close scrutiny of the low bid revealed a few discrepancies; however, the net
effective interest rate bid was basically accurate. He recommended that the bid be awarded to
Dain Bosworth, I nc., Denver, Colorado, at the net effective interest rate of 7.2781 percent, it I
being the lowest and best bid received.
It was moved by Commissioner Martel, seconded by Commissioner Goehrung, that the bond
sale for Special Improvement District No. 653 be awarded to Dain Bosworth, Inc., Denver,
Colorado at the net effective interest rate of 7.2781 percent, it being the lowest and best bid
received. The motion carried by the following Aye and No vote: those voting Aye being Com-
missioner Martel, Commissioner Goehrung, Commissioner Hawks, Commissioner Vant Hull and
Mayor Stiff; those voting No, none.
Award bid - construction bid for SID No. 653, paving a portion of Graf Street
This was the time and place set for award of the construction bid for Special Improvement
District No. 653, for paving a portion of Graf Street to collector street standards.
City Manager Wysocki presented to the Commission a memo from City Engineer Phil!
Forbes, along with a letter from Sanderson/Stewart/Gaston Engineering, recommending that the
bid be awarded to Pioneer Ready Mix, Bozeman, Montana, in the bid amount of $116,909.25, it
being the lowest and best bid received. He then concurred in that recommendation.
I t was moved by Commissioner Goehrung, seconded by Commissioner Hawks, that the bid
for construction of Special Improvement District No. 653 be awarded to Pioneer Ready Mix,
Bozeman, Montana, in the bid amount of $116,909.25, it being the lowest and best bid received.
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. I
Break - 2:55 to 3:02 p.m.
Mayor Stiff declared a break from 2:55 p.m. to 3:02 p.m., in accordance with Commission
policy established at their regular meeting of March 14, 1983.
Prioritization of goals for enterprise funds for Fiscal Year 1988-89
City Manager Wysocki submitted to the Commissioners a listing of the goals for the enter-
prise funds which they had completed in May. He then suggested that the Commission prioritize
those goals at this time, noting that members of the staff are present to respond to Commissioner
questions as necessary.
Mayor Stiff stated he continues to have concerns about funding of some of the capital
goals listed.
Commissioner Vant Hull asked when the Water Fund will have its loan from the General
Fund paid off.
The City Manager indicated that depends on how much water is used, noting it will pro-
bably be at least a year before the loan is totally paid. He then stated the Commission should
prioritize its goals without taking the financial state of each enterprise fund into consideration,
recognizing that it does have some impact.
Mayor Stiff stated that each of the three enterprise funds has a listed goal concerning
annual review of revenues or rates. He then asked if the Commission wishes to make this a
priority common to all categories. I
City Manager Wysocki stated the staff does review the revenues and rates on an annual
basis; and submittal of a report to the Commission would address that goal. He indicated that
the garbage rates were established, based on the anticipated purchase of automated collection
trucks. He then indicated the landfill must be open basically the same hours it currently is be-
cause of the various entities that use the facility.
Commissioner Vant Hull asked how much the landfill is used on Saturdays.
Mr. Roger Sicz, Street and Sanitation Superintendent, stated the landfill is used quite
extensively on Saturdays, particularly by private individuals who work during the week. He
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then indicated that the dozers are not idle when there are not customers at the landfill, since
they are constantly excavating new areas or hauling dirt to cover the garbage.
The City Manager stated that, although Three Rivers Disposal is currently not hauling to
the landfill, several of their customers have begun to haul their own garbage to the landfill. He
noted that the City has not real ized the decrease in the amount of garbage or traffic initially
anticipated with their termination of use of the site.
I Following a brief discussion, the Commissioners concurred that the annual review of rev-
enues and rates would be anticipated; therefore, there is no need to prioritize it as a goal for
the upcoming year.
The Commissioners then began the process of prioritizing the goals for each of the enter-
prise funds, starting with the Sewer Fund. Following discussion, the following prioritization was
established:
SEWER FUND
1. Maintenance of collection lines
Repair of percolation beds
2. Annual review of hook-up fees in conjunction with impact fees
The Commission concurred that any further prioritization of the maintenance of collection
lines and repair of the percolation beds should be done at staff level.
The Commissioners then prioritized the goals for the Garbage Fund I as follows:
GARBAGE FUND
1. Pursue possibilities for recycling with trash collection
2. Explore expansion of collection routes
3. Study possibilities for waste oil disposal
4. Study alternatives for disposal of solid waste
5. Study possible locations for incineration, preferably outside the Gallatin Valley
Commissioner Vant Hull noted that several years ago, the Commission had discussed the
possibility of requiring that all loads of garbage being hauled to the landfill be covered.
I Mayor Stiff indicated that is not an item for consideration at this time, suggesting it be
placed on a future agenda for further discussion.
Mayor Stiff asked if the Commission wished to continue with prioritization of the goals for
the Water Fund, considering the late hour. Following a brief discussion, the Commission con-
curred it would be best to continue this process at next week's meeting.
Adjournment - 4:20 p.m.
There being no further business to come before the Commission at this time, it was moved
by Commissioner Hawks, seconded by Commissioner Vant Hull, that the meeting be adjourned.
The motion carried by the following Aye and No vote: those voting Aye being Commissioner
Hawks, Commissioner Vant Hull, Commissioner Martel, Commissioner Goehrung and Mayor Stiff;
those voting No, none.
ALFRED M. STIFF, Mayor
ATTEST:
ROBIN L. SULLIVAN
Clerk of the Commission
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