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HomeMy WebLinkAbout1987-06-29 21'3 MINUTES OF THE MEETING OF THE CITY COMMISSION BOZEMAN, MONT ANA June 29, 1987 ************************ The Commission of the City of Bozeman met in regular session in the Commission Room, Municipal Building, June 29,1987, at 2:00 p.m. Present were Mayor Mathre, Commissioner Jor- I dan, Commissioner Stiff, Commissioner Martel, Commissioner 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 Jordan, seconded by Commissioner Stiff, that the minutes of their regular meeting of June 22, 1987, be approved as submitted. 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. Award bid - janitorial services for City Hall, Police/Fire Building, Carnegie Building and Library for Fiscal Years 1987-88 and 1988-89 This was the time and place set to award the bid for janitorial services for City Hall, Po- lice/Fire Building, Carnegie Building and the Library for Fiscal Years 1987-88 and 1988-89. City Manager Wysocki submitted to the Commission a memo from Purchasing Agent Boyd suggesting that the bid be awarded to Davis Maintenance in the bid amount of $17,340.00 per year, it being the lowest and best bid received. He then reminded the Commission that this is the same janitorial service that the City has contracted with for the past two years; and the amount quoted is lower than in the past due to a decrease in the prevailing wage rate. He con- I curred in the staff recommendation for award of the bid. It was moved by Commissioner Stiff, seconded by Commissioner Martel, that the bid for the janitorial services for City Hall, Police/Fire Building, Carnegie Building and the Library for Fiscal Years 1987-88 and 1988-89 be awarded to Davis Maintenance, Bozeman, Montana, in the bid amount of $17,340.00 per year, it being the lowest and best bid received. 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. Award bid - asphalt rejuvenating agent (reinforced) This was the time and place set to award the bid for the asphalt rejuvenating agent (re- inforced) . City Manager Wysocki submitted to the Commission a memo from Purchasing Agent Boyd recommending that the bid be awarded to Dyce Chemical in the bid amount of $11 ,622.00, it be- ing the only bid received; and concurred in that recommendation. It was moved by Commissioner Martel, seconded by Commissioner Vant Hull, that the bid for the asphalt rejuvenating agent be awarded to Dyce Chemical, Billings, Montana, in the bid amount of $11,622.00, it being the lowest and best bid received. The motion carried by the fol- lowing Aye and No vote: those voting Aye being Commissioner Martel, Commissioner Vant Hull, Commissioner Jordan, Commissioner Stiff and Mayor Mathre; those voting No, none. I Report from Chairman Ken Monroe re Cemetery Board functions and activities City Manager Wysocki stated that Chairman Ken Monroe is present to discuss the functions and activities of the Cemetery Board. Chairman Ken Monroe reviewed the five current members of the Board. He noted that when he was first appointed, the meetings were irregular; but they decided to hold quarterly meetings at 2: 00 p. m. on the second Tuesday of February, May, August and November in the Conference Room at City Hall. He noted that additional meetings may be called whenever neces- sary; however they have not had any special meetings. Mr. Monroe stated that Julia Vanfossan 06-29-87 27/1" serves as the secretary; and John McNeil and Tim Murphy provide staff input and recpmmenda- tions concerning operation of the cemetery and their needs. Mr. Ken Monroe stated that the Cemetery Board serves as an advisory body to the Com- mission. He noted they do attempt to resolve problems whenever possible; however, they also do not hesitate to submit items to the Commission for consideration when they are unable to take action on thei r own. He reminded the Commission that some of the cemetery rates were revised not too long ago. He then noted the Board is currently revising the rules and regulations gov- I erning use of the cemetery. Mr. Monroe stated that the Cemetery Board sent letters to the various fraternal and civic organizations seeking donations for repair of the vandalism in the cemetery. He noted a small amount of revenues were generated; and those monies will be used to complete as much repair as possible. He also noted that students from the Honor Society at the high school must complete a certain number of community service hours; and they will be working with the cemetery crew to repai r some of the headstones. Commissioner Vant Hull noted that Three Forks has established a cemetery district and asked Mr. Monroe for his opinion on that possibility. Mr. Monroe responded that he is not fami liar with cemetery districts. Commissioner Stiff asked Mr. Monroe if the cemetery has an adequate water supply, con- sidering the City's restrictions. Mr. Monroe stated that the cemetery still looks good; however, if the next few weeks are dry, it could have an effect on its appearance. The Mayor thanked Mr. Monroe for his presentation. Report from Chairman Ray Houghton re Police Commission functions and activities City Manager Wysocki stated that Chairman Ray Houghton is present to discuss the functions and activities of the Police Commission. Chairman Ray Houghton stated that the Police Commission, which is comprised of three members, serves in an advisory capacity to the Chief of Police and the City Manager. He noted I that they meet on as-needed basis, generally to consider disciplinary actions for police officers. Mr. Houghton stated on those instances, the Police Commission sits as the jurists, taking the ev- idence and testimony, with a court reporter present, after which they make a recommendation to the City Manager. He then stated that generally one of the Police Commission members sits on the committee which interviews potential police officers, noting that as a retired Highway Patrol- man he has a functional knowledge of what is involved in being a police officer. Mr. Houghton indicated that all Police Commission meetings are advertised and are open to the public. He then reminded the Commissioners that all actions are advisory to the City Manag- er, who makes the final decision. Commissioner Vant Hull asked Mr. Houghton if he feels a woman could serve well on the Police Commission. Mr. Houghton stated he feels that a woman with a logical open mind could be an asset on the Police Commission. He noted that anyone serving on that board must work with an open mind, particularly when receiving information for various actions. al Code re City Manager presented to the Commission, Ordinance No. 1236, as prepared by the City Attorney, entitled: ORDINANCE NO. 1236 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MON- I TANA, AMENDING SECTIONS 5.06.042 AND 5.06.044 OF THE BOZEMAN MUNICI- PAL CODE REVISING THE FEE STRUCTURE FOR LICENSES ISSUED FOR VIDEO DRAW POKER AND ELECTRONIC KENO MACHINES TO COMPLY WITH STATE LAW. City Manager Wysocki reminded the Commission that this Ordinance was provisionally adopted on June 1; and action on final adoption was tabled at last week's meeting due to some questions about the maximum I icense fee that can be implemented for electronic keno machines. City Attorney Becker stated that his review during the past week has revealed two possi- ble interpretations of the legislation adopted during this year's session. He submitted to the 06-29-87 275 Commissioners copies of a memo, along with sections of the pertinent legislation, which he re- viewed. He noted that one interpretation is that the $100.00 license fee limit applies to both video draw poker machines and electronic keno machines, which is his original interpretation; and the second is that the $100.0{) license fee limitation applies to the video draw poker machines only. The City Attorney then noted that further research revealed that Gallatin County has adopted a $100.00 license fee for each keno machine. He also noted that Representative Norm I Wallin indicated the legislative intent was to limit the license fee for electronic keno machines, as well as video draw poker machines, to $100.00 per machine. City Manager Wysocki recommended that the Commission finally adopt Ordinance No. 1235 as submitted. He indicated he feels it is in the best interests of the community to adopt the $100.00 license fee at this time, possibly increasing the fee for electronic keno machines after the new legislation has been clarified. It was moved by Commissioner Vant Hull, seconded by Commissioner Jordan, that the Commission finally adopt Ordinance No. 1236, amending the Bozeman Municipal Code regarding the license fee structure for video draw poker machines and electronic keno machtnes. The mo- tion 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. Renewal of Gaming Licenses - various establishments -" July 1, 1987 through June 30, 1988 City Manager Wysocki submitted to the Commission a list of 27 establishments which had submitted applications, along with the required fees, for renewal of gaming licenses for card ta- bles, live bingo games, video draw poker machines and electronic keno machines. The City Man- ager then recommended that the Commission approve the renewal of the fOlloWing-listed gaming licenses. American Legion Club 3 poker machines 225 East Main 1 keno/bingo machine $ 400.00 I Bingo World 3 keno/bingo machines 237 East Main 1 live bingo 550.00 Bozeman Senior Social Center 807 North Tracy 1 live bingo 250.00 Cats Paw 5 poker machines 721 North 7th 1 keno/bingo machine 1 card table 1,600.00 Crystal Bar 123 East Main 3 poker machines 300.00 Eagles, Fraternal Order of 3 poker machines Aerie No. 326 1 keno/bingo machine 400.00 316 East Main Elks Club #463 3 poker machines 106 East Babcock 1 keno/bingo machine 400.00 Filling Station 2005 North Rouse 3 poker machines 300.00 4Bls Black Angus 520 West Mendenhall 2 poker machines 200.00 GranTree Inn 4 poker machines 1325 North 7th 1 card table 1 ,400.00 Haufbrau, Inc. 22 South 8th 3 poker machines 300.00 I J. W. IS Hide-A-Way Lounge 5 poker machines 1631 West Main 1 keno/bingo machine 600.00 Karl Marks Pizza 1003 West College 2 poker machines 200.00 King Gallatin Corporation dba The Robin, 105 West Main 1 poker machine 100.00 Little Johnls Bar 5 poker machines 515 West Aspen 1 keno/bingo machine 600.00 06-29-87 27C Molly Brown 5 poker machines 703 West Babcock 1 keno/bingo machine 600.00 Montana Pizza, Inc., dba Godfather's Pizza 200 South 23rd 1 poker machine 100.00 North End, Inc., (Topper) 1235 North 7th 1 poker machine 100.00 Rocking R Bar I 211 East Main 5 poker machines 500.00 Scoop Ba r 3 poker machines 712 West Main 2. keno/bingo machines 500.00 Scoop Card Room 712 West Main 1 card table 1 ,000.00 Strombolis, Inc. 19 Tai Lane 1 poker machine 100.00 Sundance, 120 North 19th 5 poker machines 500.00 The Livery Stable 5 poker machines Main Mall 2 keno/bingo machines 700.00 Town Pump, 2607 West Main 1 keno/bingo machine 100.00 VFW Club 2 poker machines 321 East Main 1 keno/bingo machine 300.00 Willie's Saloon 3 poker machines 1332 East Main 1 card table 1,300.00 TOTAL $ 13,400.00 It was moved by Commissioner Jordan, seconded by Commissioner Stiff, that the Commis- sion approve the renewal of Gaming Licenses as listed for the period July 1, 1987, through June 30, 1988. The motion carried by the following Aye and No vote: those voting Aye being Com- I missioner Jordan, Commissioner Stiff, Commissioner Martel, Commissioner Vant Hull and Mayor Mathre; those voting No, none. Discussion - revised evaluation form for City Manager Mayor Mathre stated that she has incorporated the revisions which Commissioner Vant Hull had suggested into the evaluation form. She then asked if any other revisions are needed or if the form is ready to use. The Commissioners concurred that they are prepared to use the for- mat as it is. The Mayor then asked the Commissioners to complete their evaluation forms, returning them to the Clerk of the Commission at next week's meeting for tabulation. Fifth Monday discussion City Manager Wysocki reminded the Commissioners that they had requested the number of business items for fifth Monday meetings be kept to a minimum, with most of the time being set aside for Commissioners to discuss topics of their choice. Mayor Mathre noted that the intent of this discussion is to allow the Commissioners an op- portunity to bring up any subject. She suggested that the Commission may wish to take time to discuss the procedure to be used in future fifth Monday discussion sessions, noting that staff is usually unable to respond to any items which may be brought up during these meetings with no forewarning. Commissioner Vant Hull indicated she has completed a list of twelve items for consideration I under this discussion item, distributing copies to the other Commissioners. The Commissioner then reviewed the first item, suggesting that department heads be asked to give presentations to the Commission concerning their budget requests prior to submit- tal of the City Manager's budget documents. City Manager Wysocki noted that the budget documents are almost prepared and will be submitted to the Commission shortly. He suggested if that procedure is to be followed, it should be started earlier in the year. 06-29-87 277 Following discussion, the Commissioners concurred that the departments heads should submit presentations to the Commission shortly after the two new Commissioners are seated in January 1988, rather than during a budgeting process. Report from Chairman Jeffrey Ball re Pedestrian/Traffic Safety Committee functions and activities City Manager Wysocki stated that Chairman Jeffrey Ball is present to discuss the I functions and activities of the Pedestrian/Traffic Safety Committee. Chairman Jeffrey Ball stated that the Pedestrian/Traffic Safety Committee has been formed under an interlocal agreement and includes representatives from the City, the County and the School District. He noted that the Committee serves as an advisory board to each of the three governing bodies, indicating that they address items pertaining to pedestrians and traffic. Mr. Ball stated the Committee was scheduled to meet once each month, but generally did not conduct meetings in the summer. He noted that, due to lack of agenda items, the Committee did not meet for several months and has now decided to change the meeting schedule to an as- needed basis. He then indicated that last week he received a request for Committee consid- eration, so they wi II be meeting some time in July. Commissioner Vant Hull noted that a couple of years ago, the Chairman of the Committee requested funding; and the City contributed some monies while the County provided secretarial help. She then asked if that action has helped the Committee. Mr. Ball stated that, since the Committee has had so little input and activity, they have had no need for secretarial assistance. He noted that, although people often write to the news- paper, they do not submit formal requests to the Committee; therefore, they take no action. He then suggested if the City wishes the Committee to consider an item, that they formally forward that request. Commissioner Vant Hull indicated that in some communities the height of vehicles is re- stricted in those spaces near intersections and asked if that could be reviewed. Mr. Jeff Ball indicated that the Committee could review that item if it were formally for- I warded. City Manager Wysocki asked Mr. Ball to address the Committee's recommendation concern- ing designation of West Koch Street as a through street. Mr. Ball reminded the Commission that the Pedestrian/Traffic Safety Committee had re- viewed the possible designation of West Koch Street as a through street. He stated the Commit- tee recommended that sidewalks be installed between South 15th Avenue and South 23rd Avenue before such a designation is made, due to potential conflict between pedestrians and vehicles. He noted that many of those sidewalks have been recently installed, per Commission action. Fifth Monday discussion (continued) Commissioner Vant Hull stated her second suggestion addresses ways to decrease expendi- tures in the enterprise funds, including an increased deposit for water service and making the landlord responsible in case of non-payment, bill-averaging to avoid high water bills during a portion of the year, and elimination of the meter reader position. She noted that any attempts by the City to operate its enterprise funds more efficiently would make any rate increases more acceptable to the residents. Commissioner Mar:tel noted that enterprise funds should be operated as a business. He then stated the water use report for this past week shows an adequate water supply for the re- mainder of the summer and suggested that the restriction on the hours for watering be removed while retaining the odd-even number system for a period of two weeks to determine if it would be feasible. He noted that would generate additional revenue for the fund through the sale of I additional water. The Commissioner then suggested that his proposal be placed on next week's agenda for discussion. Mayor Mathre stated she feels the staff should review the water situation prior to possible consideration of lifting any restrictions. Commissioner Jordan stated the Commission must consider the health, safety and welfare of the community, making sure there is adequate water for fire protection. He further noted if there is an extended period of hot weather, the evaporation rate will have an impact on the amount of water available. The Commissioner then indicated he would consider Commissioner 06-29-87 278 Martel's suggestion if the staff could show, based on very conservative calculations, that the City could lift some of the restrictions and maintain an adequate water supply for the remainder of the summer. City Manager Wysocki reminded the Commission that about 20 percent of the available wa- ter in Hyalite Reservoir is lost as it comes through the creek and pipe to the water plant. He further noted that if the water is released and the plant is unable to capture it wben it reaches that area, the water is bypassed around the plant. I Commissioner Stiff expressed support for Commissioner Martel's suggestion if the staff can show that lifting of restrictions wi II pose no problem to the community. He indicated that he feels the staff should be given adequate time to review this possibility before any Commission action is considered. Continued discussion - staff update re Swim Center repairs City Manager Wysocki reminded the Commission that at last week's meeting, he had sub- mitted information to them concerning possible repairs to the Swim Center. He noted that over the past few years, improvements have been done on a piecemeal basis; and not all of those changes have been compatible. He reminded the Commissioners that cost of the proposed im- provements would total approximately $280,000, with the staff recommending that those monies being borrowed through the I NTERCAP program to take advantage of the low interest rates. He noted the $177,000 currently set aside in the capital improvement program monies would be used for the first three payments, with the source of monies for the final two payments to be de- termined later. The City Manager noted that a few of the repairs should result in a slight re- duction in operating costs. He then recommended that the Commission authorize him to enter in- to an agreement with Bronec and Associates, in an amount not to exceed $20,365, to prepare specifications for the project and prepare for bidding process and further authorize the staff to proceed with the necessary steps to participate in the I NTERCAP program. Commissioner Vant Hull asked if all of the items would be included in one schedule or if different schedules would be utilized. I Mr. Dick Prugh, Mattson, Prugh and Lenon, stated that most of the items would be in- cluded in one schedule; however, alternatives will also be sought with award dependent upon the amount of mon ies avai lable. He then noted that the bid will be set up with one general contrac- tor, since that makes the project easier to administer and helps ensure the project will be done on time. Mr. Prugh then indicated the Swim Center will be closed while the repairs are being completed; and they will get it done as quickly as possible. He noted that the project should be started soon so the facility will be completed for school use. The City Manager reminded the Commissioners that the Swim Center is often closed for two weeks during the summer for repairs. - Commissioner Jordan noted the building has had major problems since construction and asked if the City can be assured that the repairs will last. Mr. Prugh noted that the budget for this project did not include adequate monies for a good building, although the pool is the best in Montana. He stated that to construct the type of building that would address all of the problems would cost substantially more than the City has avai lab Ie . He then indicated that the proposed repairs fOr this building are patterned after those used at the University; and those have worked properly for the two years since the re- pairs were made. . Commissioner Stiff not&d .that several of the items contained in the summary list have not been included in the list of repairs to be done and questioned why. The City Manager stated the primary reason is Jack of money. He noted that the items recommended are those which need to be completed as soon as possible, while the others would I be desirable. He noted that some of the smaller items not included in this project could possibly be completed through the operating budget, while the larger items could probably be accom- modated through the capital improvement program. Commissioner Martel noted that the first four items on the list of recommended repairs to- tal $170,000. He stated he would prefer to complete those items at this time, since there are ade- quate monies appropriated in the capital improvement program funds. He expressed reservation about spending the projected amount of money on a facility that is desirable and popular, t 06-29-87 279 especially when two years of payments are not funded. He noted that with the shortfall in op- erations costs, the City will be funding approximately $90,000 per year for those two years. The City Manager noted that the revenues generated by the Swim Center have increased over the past few years, resulting in less subsidy from the City's General Fund. He then re- minded the Commission that one's assets need maintenance or replacement from time to time. Commissioner Martel asked if the rates charged to the School District will be increased to I reflect these increased costs of operating the facility. The City Manager indicated that these repairs will be taken into consideration when en- tering into the lease agreement with the School District. Commissioner Stiff indicated that, although he is not totally happy with the method needed for financing of this project, he will support it. He noted it is a nice amenity in the community which provides year round swimming. Commissioner Martel stated the suggested improvements are necessary, noting he would be willing to fund the first four items at this time; however, he is not willing to support the proj- ect as proposed. Commissioner Jordan stated he wi II not support the proposed improvements. He noted that the City is still paying general obligation bonds' on this facility, which does not break even on its operating costs. He noted there are other projects as deserving as this one. It was moved by Commissioner Stiff, seconded by Commissioner Martel, that the Commis- sion authorize and direct the City Manager to enter into an agreement with Bronec and Associ- ates, in an amount not to exceed $20,365, for preparation of specifications and bidding docu- ments for approximately $260,000 in repairs to the Swim Center, and further authorize and direct the staff to complete the necessary actions for participation in the I NTERCAP program, in an amount not to exceed $280,000. 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 Commissioner Jordan and Commissioner Martel. I Fi fth Monday discuss ion (conti nued ) Commissioner Jordan expressed concern about a recent newspaper article which gave pro- jected revenues from the video draw poker machines and the lottery. He then encouraged the staff to check its first quarter report on video draw poker machines to be sure that the lottery is not taking monies from that source of revenue. B rea k - 4: 1 0 to 4: 25 p. m . Mayor Mathre declared a break from 4:10 p.m. to 4:25 p.m., in accordance with Commis- sion policy established at their regular meeting of March 14, 1983. . Fifth Monday discussion (continued) Commissioner Vant Hull briefly reviewed some of the remaining items on her list. She in- dicated that she will submit her fourth item, concerning parking districts in residential neigh- borhoods near the downtown and the University, to the Pedestrian/Traffic Safety Committee for consideration. She then indicated that a number of the items will need to be addressed by the staff prior to consideration, including: "(1) revision o( the weed ordinance and the ordinance concerning trimming of bushes and trees; (2) annexation of all annexable areas; (3) review of . the parking requirements; (4) streamlining of the hearing process; (5) effective tree trimming program; (6) city-wide street maintenance district; (7) revision of the snow shoveling ordinance; and (8) recycl ing of recyclable garbage. Mayor Mathre requested that these items be scheduled for discussion whenever possible, I noting that they don't need to be fifth Monday discussions. . Discussion - FY I items City Manager Wysocki presented to the Commission the following "For Your Information" items. (1) A memo inviting Commissioners to attend a meeting at Hyalite Dam tomorrow evening at 7:00 p.m. (2) Water use report for the week ending June 23, 1987. 06-29-87 280 (3) A letter indicating the City has received its Certificate of Conformance for Fiscal Year 1986. (4) A letter from Senator Max Baucus to Mayor Mathre indicating support for Bozeman's bid for the U.S. West project. (5) A letter inviting Commissioners to attend the launching of the "Buckle In and Win Project II to be held at 6: 30 tomorrow evening. (6) A letter from FEMA reminding the Commissioners of the public hearing to be held on I Thursday, July 16 at 7: 00 p.m. in the Library Community Room concerning the revised flood in- surance study. (7) A letter of support from the City of Helena for Bozeman's bid for the U. S. West project. (8) A letter of support from the City of Billings for Bozeman's bid for the U. S. West project. (9) The ballot for the goals for Fiscal Year 1987-88, which are to be completed and re- turned to the Clerk of the Commission by Wednesday. (10) The City Manager indicated that on July 23, City representatives are invited to tour the Bozeman Creek drainage with the Forest Service. Consent Items City Manager Wysocki presented to the Commission the following IIConsent Items. II Application for temporary Beer/Wine License - Museum of the Rockies - Wednesday, July 29, 1987 - First Bank Bozeman Claims It was moved by Commissioner Martel, seconded by Commissioner Vant Hull, that the Com- mission approve the Consent Items as listed, and the appropriate persons be authorized and di- rected to complete the necessary actions. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Martel, Commissioner Vant Hull, Commissioner Jordan, Com- missioner Stiff and Mayor Mathre; those voting No, none. I Recess - 4:40 p.m. Mayor Mathre declared a break at 4:40 p.m., to reconvene at 7:00 p.m. for the purpose of conducting the scheduled public hearing. Reconvene - 7:00 p.m. Mayor Mathre reconvened the meeting at 7:00 p.m. for the purpose of conducting the scheduled public hearing. Public hearing - Commission Resolution No. 2658 - re whether or not the City of Bozeman shall approve of the tax benefit program for new or expanding Industries as authorized by Section 15-24-1401, et. seq., M.C.A. This was the time and place set for the public hearing on Commission Resolution No. 2658, as prepared by the City Attorney, entitled: COMMISSION RESOLUTION NO. 2658 A RESOLUTION OF THE BOZEMAN, MONTANA, CITY COMMISSION, CALLING FOR A PUBLIC HEARING ON THE ISSUE OF WHETHER OR NOT THE CITY OF BOZEMAN, MONTANA, SHALL APPROVE OF THE TAX BENEFIT PROGRAM FOR NEW OR EXPANDING INDUSTRIES AS AUTHORIZED BY 15-24-1401 ET SEQ. MONTANA CODE ANNOTATED (MCA) AND TO DEFINE THE IMPROVEMENTS THAT WOULD QUALIFY FOR THE TAX TREATMENT THAT IS TO BE ALLOWED IN THE TAXING JURISDICTION. Mayor Mathre opened the public hearing. I City Manager Wysocki noted that HB709, adopted during the 1987 Legislative Session, au- thorizes local governments to provide a tax benefit program for new or expanding industries. He noted that under the program, a local government may provide a tax incentive under which taxes are based on 50 percent of the taxable value for each of the first five years following is- suance of a building permit, increasing by 10 percent each year thereafter so that after ten years, the new or expanding industry is paying taxes based on 100 percent of the taxable val- ue. . 06-29-87 281 The City Manager indicated that if the Commission votes to proceed with the process after conducting its public hearing, the next step will be to adopt a Resolution approving the tax in- centive program. He suggested that the Commission encourage economic development and busi- nesses which are clean and that will maintain and enhance the community's natural environment and other amenities while broadening economic opportunities and stability in the Resolution. City Manager Wysocki reminded the Commission that this public hearing is on a Resolution I which enables the City to provide tax incentives to new or expanding industries only. He noted that if the Commission does implement the program, each business will be required to submit its application, which will then be considered by the Commission on an individual basis. City Attorney Becker stated that prior to this year's legislative changes, the tax incen- tive program was restricted to manufacturing industries. He noted that restriction was lifted, with the program being open to industries in general. The City Attorney stated that this tax ince~tive program would apply to real property other than land, which would include fixtures to the property, appurtenances to the property, and that which is immovable by law. He then in- dicated that if the Commission votes to proceed with this program, it must also establish a defi- nition for qualified improvements and modernized process, which he has drafted for their consid- eration. Mr. Jim Kack, 6531 Jackson Creek Road, noted that during the past few years, the com- munity has assessed its assets and determined that its wonderful environment and quality of life must be protected. He noted that social and economic needs must be addressed, however the quality of life must be considered in so doing. He then noted that the 1987 State Legislature adopted SB64. providing for tax incentives at the state level, and HB709, providing for tax in- centives at the local level. Mr. Kack noted that under H B709, local governments are given the ability to attract business with a mechanism that also provides for local government review and final determination of whether it would be in the community's best interests. Mr. Kack stated support for this program, noting the community could attract a major sit- ing, such as the U. S. West; it may attract a small business with five to ten employees; or it I may attract something in between. Mr. Jim Hughes, Di rector of Government Relations for Mountain Bell I n Montana, stated that if the Commission approves this program, it will be taking a far-reaching and very aggres- sive step which will allow the community to consider proposals from various industries. Mr. Hughes then encouraged the Commission to proceed with this program, noting that it will provide the City an opportunity to consider siting proposals from various industries that could be an as- set to the community. Dr. Keith Chambers, 2610 Spring Creek Drive, Superintendent of Schools, stated sup- port for the tax incentive program. He noted that he has reviewed how that program would af- fect funding for the schools; and he has found that if the tax breaks are approved, the school system wi II sti II receive adequate revenues. Dr. Chambers noted that, even if a large industry is attracted to the area, development will take a few years, so impact on the schools will be gradual. He then encouraged the Commission to adopt a Resolution enabling them to provide tax incentives to new or expanding industries. Mr. Carl Lehrkind, Coca-Cola Bottling, stated the Gallatin Development Corporation has been active in attracting business to the community. He noted that the Corporation supported HB709 in the Legislature and encouraged the Commission to adopt a Resolution enabling them to provide tax incentives. Mr. Norm Wall in, Representative for District 78, stated support for the program and en- couraged the Commission to adopt the program. He noted that doing so will indicate that Bozeman and Montana are interested in encouraging business to move here. I Mr. Tony Wastcoat, 1612 West 01 ive Street, stated support for the tax incentive program. Mrs. Laurie Shadoan, President of the Bozeman Area Chamber of Commerce, noted that economic spillover from additional economic enterprises will not only benefit families but the com- munity as well. She noted that the Gallatin Development Corporation had drafted a Resolution to be considered by the City Commission and the County Commission that would provide tax incen- tives prior to passage of HB709; and the new legislation required revision of that draft. Mrs. Shadoan stated that timing is critical, noting that the Commission must adopt this program as soon as possible. She also noted that adoption of tax incentives will create new jobs and will help create a "can doll attitude in the community. 06-29-87 282 Mr. Don Weaver, 2404 Spring Creek Drive, stated he is basically in favor of anything that will promote industrial activity. He noted that he started the Westridge Meadows Technical Center ten years ago; and it has served as a hot house for I ittle companies since that time. He then indicated that tax incentives will provide an opportunity for those fledgling businesses to expand which has not been available in the past. Mr. Weaver stated he is not sure that Montana will attract any big industry, byt the program can benefit the small companies and allow them to expand easier. I Mr. Darrell Behrent, 208 Lindley Place, noted that any time the City provides tax breaks to a new or expanding industry, it also increases the taxes to the rest of the taxpayers. He noted those businesses will still require the various services, including water, sewer and paved streets; however, if they receive tax breaks, they wi II not be paying their fair share. Mr. Behrent stated it is also important to consider whether Bozeman can support a new industry and whether that industry wants to locate in Bozeman. Mayor Mathre closed the public hearing. It was moved by Commissioner Jordan, seconded by Commissioner Stiff, that the Commis- sion waive the customary one-week waiting interval. 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. City Manager Wysocki presented Commission Resolution No. 2660, as prepared by the City Attorney, entitled: COMMISSION RESOLUTION NO. 2660 A RESOLUTION OF THE BOZEMAN, MONTANA CITY COMMISSION APPROVING THE 15-24-1401 ET SEQ. MCA TAX INCENTIVE PROGRAMS FOR NEW INDUSTRY OR EXPANDING INDUSTRY, AND DEFINING THE IMPROVEMENTS OR MODERNIZED PROCESSES QUALIFIED FOR SAID TAX BENEFITS. Commissioner Stiff noted that Mr. Behrent had raised some good points. He stated the City will probably be providing tax incentives to a small number of industries, which should not have a large impact on the tax revenues. He further noted that adoption of a tax incentive pro- I gram is not to create a void, but to provide an Incentive similar to what is available in neigh- boring states. He reminded the Commissioners that the tax incentives do not apply to the land, but it will continue to be taxed at its full value under this program. The Commissioner noted that the multiplier effect must also be considered, noting that the employees as well as the in- dustry will create additional tax base in the community. He stated that he feels sufficient mon- ies will be generated, even with the tax incentives, to avoid additional burdens on the existing taxpayers. Commissioner Martel stated he feels adoption of this program will create a more inviting atmosphere to prospective industries. Mayor Mathre noted that this Resolution enables the Commission to consider individual ap- plications, which can be reviewed carefully prior to possible approval of any tax incentives. The Mayor then asked what will be required in an application. City Manager Wysocki indicated that the application must contain whatever information is requested by the City. He noted items that should probably be included are a comprehensive statement on any impacts on the environment, a statement on how the disposal of toxic wastes would be handled, a statement on what impact the tax incentives would have, a statement about any effect on current zoning, and a statement on pretreatment of any sewage that may be neces- sary. Commissioner Vant Hull stated support for the proposed Resolution. She reminded the Commissioners that in 1981 the Commission adopted a Resolution supporting clean industry and economic growth; and in 1985 the Commission adopted a Resolution on industrial development rev- I enue bonds which also encouraged clean industry and protection of the natural environment. She noted this Resolution also carries that theme. Commissioner Jordan noted that the idea of economic growth is exciting; however, the Commission must be cautious in considering individual applications. He also noted that criteria for review of applications must be developed as soon as possible. It was moved by Commissioner Stiff, seconded by Commissioner Martel, that the Commis- sion adopt Commission Resolution No. 2660, approving the tax incentive programs and establish- ing the definition of improvements or modernized processes. The motion carried by the following 06-29-87 283 Aye and No vote: those voting Aye being Commissioner Stiff, Commissioner Martel, Commissioner Vant Hull, Commissioner Jordan and Mayor Mathre; those voting No, none. Adjournment - 7:45 p.m. There being no further business to come before the Commission at this time, it was moved by Commissioner Martel, seconded by Commissioner Vant Hull '~, that the meeting be adjourned. I 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. JUDITH A. MATHRE, Mayor ATTEST: (' Clerk of the Commission , I '. I 06-29-87