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HomeMy WebLinkAbout1987-03-09 IOC u MINUTES OF THE MEETING OF THE CITY COMMISSION BOZEMAN, MONT ANA March 9, 1987 ************************ The Commission of the City of Bozeman met in regular session in the Commission Room, Municipal Building, March 9,1987, at 2:00 p.m. Present were Mayor Mathre, Commissioner Jordan, Commissioner Stiff, Commissioner Martel, Commissioner Vant Hull, City Manager Wysocki, I 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 discussion. Minutes It was moved by Commissioner Jordan, seconded by Commissioner Stiff, that the Commission approve the minutes of their regular meeting of March 2, 1987, as amended. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Jordan, Commissioner Stiff, Commissioner Martel, Commissioner Vant Hull and Mayor Mathre; those voting No, none. . Open bids - two (2) police cars This was the time and place set to open the bids for two police cars. The affidavit of publication of the "Call for Bids" was presented. It was moved by Commissioner Stiff, seconded by Commissioner Martel, that the bids for the two police cars be opened at this time. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Stiff, Commissioner Martel, Commissioner Vant Hull, Commissioner Jordan and Mayor Mathre; those voting No, none. The following bids were then opened and read aloud. Model Base Bid Rolfe & Wood, Inc. I Bozeman, Montana - - $23,649.62 Don Norem Chevrolet-Buick, Inc. Bozeman, Montana Celebrity $23,060.00 Bozeman Ford Bozeman, Montana Crown Victoria $23,640.00 J.C. Billion, Inc. Bozeman, Montana Cutlass Ciera $24,468.00 It was moved by Commissioner Martel, seconded by Commissioner Vant Hull, 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 Vant Hull, Commissioner Jordan, Commissioner Stiff and Mayor Mathre; those voting No, none. Decision - Conditional Us.~ Permit - Stephen Forte' - allow two additional signs on structurE, an 8-foot b~ 6-foot internally lighted sign at the corner of South 19th Avenue and W~st Koch _ Stre.t, and a 6- oot by 6-foot sign at the soutbeast corner of the property - .1811 West Koch Street This was the time and place set for the decision on the Conditional Use Permit requested by Stephen Forte' to allow two additional signs on the structure at 1811 West Koch Street, as well as an 8-foot by 6-foot internally lighted sign at the corner of South 19th Avenue and West Koch Street, and a 6-foot by 6-foot sign at the southeast corner of the property. I City Manager Wysocki concurred in the Zoning Commission's recommendation for denial of the request, noting that he feels any lighted sign is inappropriate in a residential neighbor- hood. Mayor Mathre noted that the Planning Staff had submitted a memo dated February 24, 1987, to the Zoning Commission just prior to the meeting suggesting five conditions for approval, if the Zoning Commission chose to approve the request. She suggested that if the Commission decides to approve the request, those recommended conditions should be included. 03-09-87 1U9 Commissioner Martel stated that a business needs to have signs, even if it is located within a residential area. He stated that he feels the proposed conditions would provide adequate control over the signs and lighting thereof. Commissioner Vant Hull expressed concern that allowing installation of a plastic sign constructed to be internally illuminated, even if it is with the condition that the sign not be lighted, could create problems in the future. The Commissioner stated that she could support I ground lighting of the sign, but not internal illumination in the residential area. Commissioner Jordan stated he will accept the existing signs, with no illumination. The Commissioner indicated he feels that if conditional use permits are sought to allow this type of development, with signs appropriate in an R-O district rather than a residential district, it would be more appropriate to seek a zone change. He then reminded the Commission that an attempt to change the zoning of the subject site a few years ago failed. Commissioner Stiff stated he is willing to support the Zoning Commission's recommenda- tion. He then expressed concern that the City has been placed in a position, through this request, of acquiescing to an individual who installed signs not in conformance with the zoning regulations. City Manager Wysocki asked if the applicant would be required to remove the existing signs if this application is denied. Community Development/Zoning Specialist Dave Skelton stated that the two existing signs on the property have been previously approved, although the ground lighting was never approved; and denial of the application would not affect those signs. Mayor Mathre stated she feels the two proposed signs, with no illumination, are accept- able; therefore, she would support the application with a condition that would allow no lighting. It was moved by Commissioner Jordan, seconded by Commissioner Stiff, that the Commission allow the existing sign at the corner of South 19th Avenue and West Koch Street and the existing sign at the southeast corner of the property located at 1811 West Koch Street to remain, with those signs to be unlighted. The motion carried by the fOllowing Aye and No vote: those voting I Aye being Commissioner Jordan, Commissioner Stiff and Commissioner Vant Hull; those voting No being Commissioner Martel and Mayor Mathre. Discussion - draft of revised special improvement district policy City Manager Wysocki submitted to the Commission a draft of the revised special improve- ment district policy, as prepared by the staff based on Commissioner comments from the February 23rd meeting. He noted that a large portion of the policy is based on the draft policy for the City of Billings; as well as pertinent portions of existing Resolutions. The City Manager then asked Director of Finance Gamradt to review the changes which have been made prior to discussion of the various points. The Director of Finance stated that engineering and legal work have been included as allowable costs in an SI D, which is different from the City of Billings' policy. He further noted that street improvements are specifically listed as being considered for an SI D if the developer installs the water and sewer services through private means. City Manager Wysocki suggested the possibility of requiring a performance bond for the Installation of water and sewer services if the developer is required to install them, to ensure that the work is properly done. Mr. Jerry Gaston, Sanderson/Stewart/Gaston Engineering, Inc., stated that If the City is going to require the developer to install water and sewer service improvements, It is important to require that the developer provide payment and performance bonds. Commissioner Martel noted that the draft policy contains a provision for posting addi- I tional security in the amount of five years' assessments if the developer requests and receives authorization to use the SID process for installation of more than just the paving improvements, Director of Finance Gamradt stated that the City has not yet received a written statement from Dorsey and Whitney; therefore, he does not know if this provision is permissible. City Manager Wysocki noted that this section would allow the posting of a Letter of Credit for five years' assessments, which would be equal to approximately 60 percent of the cost of the SID, He stated that this provision has been contained in the policy to address the problems that can be incurred through diversified ownership. He then cited Graf's Second Subdivision 03-09-87 110 as an example, noting that somft of the property owners have indicated they are not wi lIing to participate in the cost of improvements through the process which has been approved. The Commissioners then asked various questions about the draft policy. One of the issues raised addresses clarification of public interest criteria. Commissioner Martel also raised the issue of establishing a debt-to-equity formula rather than diversification of ownership. Mayor Mathre stated that she feels the Commission should conduct a public hearing on the final draft of the policy, prior to adoption, to allow interested parties an opportunity to I provide input. Commissioner Stiff expressed interest in seeing examples of how this proposed revision in the SID policy would have affected the last three or four special improvement districts which have been created. The City Manager stated that the staff will bring back a revised draft of the policy to next weekls meeting for further consideration. Break - 4:10 to 4:25 p.m. Mayor Mathre declared a break from 4:10 p.m. to 4:25 p.m., in accordance with Commission policy established at their regular meeting of March 14, 1983. Discussion - installation of publjc improvements in Graf's Second Subdivision - Jerry Gaston City Manager Wysocki stated that Mr. Jerry Gaston, Sanderson/Stewart/Gaston Engineering, Inc., has requested an opportunity to address the Commission concerning Special Improvement District No. 652, which was created to provide for installation of water, sewer and paving in Grafls Second Subdivision. Mr. Gaston gave the Commissioners a brief history of what has happened since the Commis- sion created SID No. 652, with the provision that the bonds would not be backed by the City's Revolving Fund. He stated that his firm has pursued the possibility of obtaining financing through private funding or non-City-backed SID bonds, but has found neither of those options are viable for this project. He noted that, because of the multi-ownership involved in the I project, private funding cannot be acquired; and he has received letters from Dain Bosworth and D .A. Davidson, copies of which he submitted to the Commission, indicating that special improvement district bonds not backed by the City'S SID Revolving Fund would not bE marketable. Mr. Gaston stated that his firm then pursued the pOSSibility of obtaining some form of guarantee for half of the improvements, possibly water and sewer, but not all of the people are willing to participate. He then indicated that he has met with the group of homeowners on several occasions; and those who are willing to provide a guarantee have indicated they would pick up whatever additional portion is necessary to get a letter of credit in the amount of 50 percent of the costs to cover those who are not willing to participate. Jerry Gaston then stated that the estimated cost of installing the improvements is $442,000. He asked if the City would be willing to sell City-backed bonds for the entire project as long as they are backed by a Letter of Credit in the amount of 50 percent of the cost. He noted that if the draft policy were implemented, it would require a guarantee for five years' assessments, or approximately 62 percent of the total costs. Mr. Gaston then requested that the Commission consider this project carefully, noting that a true diversification of ownership is involved, even though the property is undeveloped. City Manager Wysocki noted that providing a letter of credit for 50 percent of the costs is essentially the same as the installation of water and sewer services through private funding. He then stated that use of the Sf D mechanism would provide funding for installation of the I improvements, with the costs then being assessed against all of the property owners within the district. He noted that there are property owners who hav~ indicated they are not willing to participate in the financial guarantees for the project; and use of the SI D process would avoid those problems. Mayor Mathre stated that the Commission has not yet adopted the new proposed policy; therefore, it is operating under the existing special improvement district policy. She noted that the new policy does not specifically address the situation encountered in Grafls Second Subdivision; however, it cannot be written for specific circumstances, either. 03-09-87 111 Commissioner Jordan noted an item to consider is whether Mr. Gaston's proposal is more stringent that the City's current policy. Commissioner Stiff asked if it would be possible to delay action on this request until after the Commission has adopted its new policy. Mr. Gaston stated that some of the people within the district want to begin construction of homes as soon as possible; and the improvements must be installed first. He also noted the I construction season is beginning; and It would be helpful to get the improvements installed as early in the season as possible. Jerry Gaston then noted that the Commission's proposed policy for additional security is rather stringent. He stated that the guarantee for five years' assessments on raw land repre- sents approximately 62 percent of the total cost. He noted that the people involved in the subject SID have encountered some problems in securing guarantees for 50 percent of the costs; and the proposed policy would, therefore, preclude use of SI D's for any additional improvements. He suggested that the Commission may wish to consider a section on the policy to address raw land developments where the ownership is truly diversified to make the use of SI D's a real option. Mayor Mathre asked how many years' assessments would be covered by a 50 percent guarantee; and the City Manager indicated it would be around four years. The Mayor noted that requirement exceeds the current policy, which requires three years' assessments when a single owner is involved. Commissioner Jordan stated it was his understanding that the Commission had originally voted to allow non-City-backed bonds for this special improvement district because it had been listed as an option, although he didn't believe it was a viable option then or now. Mayor Mathre noted the question before the Commission at this time is whether it wishes to reconsider its previous decision, with the request being to provide City-backed bonds for the project. City Manager Wysocki reminded the Commissioners that the subject property has been I subdivided for many years, but improvements were not required at that time. He then stated that this type of situation was not included in the draft policy because the staff did not feel the pol icy should be written to address a specific situation. He noted that following drafting of the policy, he realized that Electric Heights Subdivision is in the same situation; and some of the areas in the northeast sector of the City seem to be the same, He suggested that it may be appropriate to include a section in the new policy to address those circumstances specifically. Following discussion, the City Manager suggested that the staff review this request and submit a recommendation back to the Commission as soon as possible; and the Commission con- curred. Staff report - current status of various reserve funds City Manager Wysocki reminded the Commission that Commissioner Stiff had requested this item be placed on the agenda. He then presented to the Commission a memo from Director of Finance Gamradt showing balances in the various reserves as of June 30, 1986, those adjustments which have occurred this fiscal year, and the current balances in those reserves. Commissioner Martel asked what is included in the Designated Payroll Reserve. Director of Finance Gamradt stated that the reserve represents the City's liability for employees' accrued vacation and sick leave. He then noted that Bozeman is the only city in the state to have its liability entirely funded. Commissioner Stiff stated he doesn't have any questions about the reserve balances; I however, he does have some concerns. He noted that in municipal accounting, reserves are equivalent to the owner's equity in private accounting. The Commissioner indicated that he is concerned about using Undesignated Reserve monies to cover the City's portion of the special improvement district for Highland Boulevard, stating he feels that better internal financing could have been utilized. He also noted that the $379,548 in loans receivable from the Water Department really shows the importance of implementing a rate increase as soon as possible. Commissioner Stiff then stated that he had hoped the reserves would have adequate balances to allow the City to cover the millage for the Valley Unit special improvement district delinquencies 03-09-87 112 for one year rather than increasing the taxes. City Manager Wysocki reminded the Commission that the bonds for SID No. 647, for the paving of Highland Boulevard, were at an interest rate of 9.27 percent; and the City's investments are earning a substantially lower interest. The Director of Finance further reminded them the bonds were sold with the commitment that the City and the hospital would payoff their port1ons of the assessment by January 1, 1987. He noted that the City has paid its portion; however, the hospital did not because it I didn't have sufficient funds. The City Manager distributed to the Commission a bar graph showing the General Fund balances in Fiscal Years 1982 through 1987. He noted that this year's balance includes the non-liquid portion of the reserve that has been loaned to the Water Fund. He also stated that the decrease in the fund balance from last fiscal year is about equal to the amount of revenue sharing monies that the City has received in past years. Commissioner Stiff noted that review of the City's reserves is very important and should be done on an annual basis. He then indicated interest in establishing a policy concerning the City's reserves, possibly during the goal setting process. Commissioner Jordan stated that he feels the current level of reserves is good. He then expressed concern about the suggestion to use any of those monies to cover the Valley Unit delinquent assessments, noting he feels those monies should be used in an emergency situation. It was moved by Commis6ioner Jordan, seconded by Commissioner Stiff, that the Commission acknowledge receipt of the staff report regarding the current status of various reserve funds. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Jordan, Commissioner Stiff, Commissioner Martel, Commissioner Vant Hull and Mayor Mathre; those voting No, none. Discussion - process fo~ setting of goals for upcoming fiscal year Mayor Mathre noted that in her memo to the Commission last week under "FYI Items," she had listed a series of questions for the Commission to answer in their discussion of the I process to be followed in setting goals for the upcoming fiscal year. The Mayor then asked If the Commissioners are interested in conducting town meetings as a part of this year's process. Commissioner Vant Hull stated she feels it is important to involve the community in this process. She then suggested the possibility of seeking input on specific types of items rather than leaving the process totally open as it was last time. She noted that the names of the various departments could be listed on the form under the questions, which may trigger some ideas from the public. Mayor Mathre noted that the Commission feels some items are very important; and an update on those would be a starting point for discussions. The Mayor then stated that the hour is rather late and requested this item be placed on next week's agenda for further discussion, Discussion - FY I items City Manager Wysocki presented to the Commission the following "For Your Information" items. (1) A copy of a letter he had sent to various legislators requesting that HB743 be revived. (2) A copy of the responses to the City's request for copies of the code of ethics for various cities. The City Manager indicated this item will be' placed on the agenda for discussion. (3) The agenda and packet for the combined City-County Planning Board/Zoning I \ , Commission meeting to be held on Thursday, March 12. (4) The City Manager stated that he and Director of Finance Gamradt will be attending a Great Open Space City Managers' Association meeting in Billings on Wednesday afternoon, Thursday and Friday. (5) The City Manager stated that at tonight's meeting, the School Board will discuss the possibility of placing a bond issue on the November ballot, noting that such action could have an effect on the City's elt!'Ction. 03-09-87 113 (6) The City Manager noted that the CDBG application submitted on behalf of Schnee's Boot Works has been approved. (7) The City Manager stated he has a status report on the various bills through March 2, which he wi II place beside the Commissioner mailboxes for review. (8) Mayor Mathre reminded the Commissioners of the Interagency Breakfast, which will be held Wednesday morning at the GtanTree Inn. I (9) Commissioner Vant Hull stated she has a copy of H B863, which would reduce the license fee for video draw poker machines and impose a tax on the income from those machines, with those monies to be appropriated to the University system. The Commissioner stated she will place the copy beside the mailboxes for review and encouraged the Commissioners to transmit comments in opposition to the bill to the local legislators. Consent Items Main Street It was moved by Commissioner Vant Hull, seconded by Commissioner Jordan, that the Commission approve the Consent Items as listed, and that 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 Vant Hull, Commissioner Jordan, Commissioner Stiff, Commissioner Martel and Mayor Mathre; those voting No, none. Adjournment - 6:07 p.m. There being no further business to come before the Commission at this time, it was I moved by Commissioner Jordan, seconded by Commissioner Stiff, that the meeting be adjourned. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Jordan, Commissioner Stiff, Commissioner Martel, Commissioner Vant Hull and Mayor Mathre; those voting No, none. JUDITH A. MATHRE, Mayor ATTEST: Clerk of the Commission I 03-09-87