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HomeMy WebLinkAbout1987-07-13 300 MINUTES OF THE MEETING OF THE CITY COMMISSION BOZEMAN, MONTANA July 13, 1987 ************************ The Commission of the City of Bozeman met in regular session in the Commission Room, Municipal Building, July 13,1987, at 2:00 p.m. Present were Mayor Mathre, Commissioner I Jordan, 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. Mayor Mathre asked if any of the Commissioners wished to remove any of the Consent Items for discussion. Commissioner Vant Hull requested that the petition for vacation of the alley in Block 111, Northern Pacific Addition and the claims, be removed for discussion. Com- missioner Jordan requested that the loan agreement for the CDBG grant for Schnee's Boot Works be removed for discussion. t, Minutes It was moved by Commissioner Jordan, seconded by Commissioner Stiff, that the minutes of their regular meeting of July 6, 1987, be approved 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. - seal coat street improvements; hot mix overla ; street radius chan es; and fur- itummous p ant mix materIa This was the time and place set to award the bid for the 1987 street improvements, in- cluding seal coat street improvements, hot mix overlay, street radius changes and furnishing of bituminous plant mix material. City Manager Wysocki presented to the Commission a memorandum from City Engineer Forbes I recommending that all four schedules of the 1987 street improvements be awarded to Pioneer Ready Mix, Bozeman, Montana, in the total bid amount of $84,756.50, it being the lowest and best bid received. The City Manager concurred in that recommendation. It was moved by Commissioner Stiff, seconded by Commissioner Martel, that the bid for all four schedules of the 1987 street improvements be awarded to Pioneer Ready Mix in their bid amount of $84,756.50, it being the best and lowest bid received. The motion carried by the fol- lowing Aye and No vote: those voting Aye being Commissioner Stiff, Commissioner Martel, Com- missioner Vant Hull, Commissioner Jordan and Mayor Mathre; those voting No, none. This was the time and place set for the decision on the Zone Map Change requested by Albert Harting, John D. Goering, Carl H. Gotland, Joseph W. Biggs and Catherine A. Gnehm to change the present zoning of M-1, Commercial--Light Manufacturing, to R-3, Residential-- Medium-Density, on Lots 6 through 20, Block 50, Northern Pacific Addition to the City of Bozeman. The subject properties are more commonly located at 403 North Broadway Avenue, 407 North Broadway Avenue, 411 North Broadway Avenue, 809 East Fridley Street and 414 North Plum Avenue. City Manager Wysocki noted that a memo from Commissioner Vant Hull to the other Com- missioners was included in the packet. Commissioner Jordan stated his main concern at last week's meeting was that the residents I had intimated that the zoning had been rather arbitrarily established. He noted review of the process followed at that time indicated it was not arbitrary. The Commissioner then indicated that he does favor the requested down-zoning of the subject lots. He also stated that he does not feel action on this request will affect the zoning of the surrounding properties. Commissioner Martel stated his only reservation, which he had indicated at last week's 07-13-87 3Ul meeting, is the change in zoning which will occur in the middle of the block. He then stated he will support the requested change, since the property owners are unanimous in their request. Commissioner Vant Hull noted that the planning staff has indicated it encourages the change in zoning lines along alleys, since backyard lot lines create better buffers than streets. The Commissioner then assured Mr. Zakovi, who had submitted testimony in opposition to this requested Zone Map Change, that this application will not affect the zoning of his property. I She also noted that if any zoning changes are requested which would affect his property, he will have opportunities to speak in opposition at two separate public hearings. It was moved by Commissioner Martel, seconded by Commissioner Vant Hull, that the Com- mission approve the Zone Map Change requested by Albert Harting, John D. Goering, Carl H. Gotland, Joseph W. Biggs and Catherine A. Gnehm, to change the present zoning of "M-l, Com- mercial--Light Manufacturing" to "R-3, Residential--Medium-Density" on Lots 6-20, Block 50, Northern Pacific Addition. 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. Authorize City Manaqer to sign - Loan Agreement for CDBG economic development grant - Schnee's Boot Works - $150,000 City Manager Wysocki stated that Commissioner Jordan had requested this item be removed from the Consent Items for discussion. He then asked Mr. Mike Money to submit a brief update on the status of the project. Mr. Mike Money stated that since application for economic development monies under the Community Development Block Grant program was made, and approval was given by the State of Montana Department of Commerce, the City staff has been working with Mr. Schnee and his re- presentatives to develop an agreement which is acceptable to both parties. Mr. Money noted that the agreement before the Commission at this time has been developed, based on the appli- cant's ability to repay the $150,000 loan under the guidelines for the CDBG program, as well as I the City's desire to continue this program. Commissioner Jordan noted that when the original application for this economic de- velopment loan was discussed, the manufacturing of new footwear and expansion of the mail order function were emphasized. He noted that those items are not specifically noted in this agreement; and he feels they should be listed. Mr. Money indicated that Item 1 on Page 1 of the agreement could be changed to include "inventory and capital equipment important to the mail order and manufacturing' portions of the business. " He noted that the budget will detail the specific items, so those items are not ex- cluded by not being included specifically in thi agreement. Commissioner Jordan indicated that he would prefer those items be included in the agree- ment; and the other Commissioners concurred. It was moved by Commissioner Vant Hull, seconded by Commissioner Jordan, that the Com- mission approve the Loan Agreement, as amended, for the Community Development Block Grant economic development grant between Steven P. and Jean M. Schnee, doing business as Schnee's Boot Works, and the City of Bozeman, in the amount of $150,000; and authorize and direct the City Manager to sign said document. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Vant Hull, Commissioner Jordan, Commissioner Stiff, Com- missioner Martel and Mayor Mathre; those voting No, none. Ordinance No. 1238 - Zone Code Amendment - amending Title 18 of the Bozeman Municipal Code, providrnq the Zonrnq Administrator and the Plannrnq Director authorlfy to enTorce prOVIsions of the zone code; corrections to cross-referencrng in various sections I City Manager Wysocki presented Ordinance No. 1238, as reviewed by the City Attorney, entitled: ORDI NANCE NO. 1238 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, AMENDING TITLE 18 OF THE BOZEMAN MUNICIPAL CODE, PROVIDING THE ZON- ING ADMINISTRATOR AND THE PLANNING DIRECTOR THE AUTHORITY TO EN- FORCE PROVISIONS OF THE BOZEMAN AREA ZONING CODE. SAID AMENDMENTS WILL ALSO PROVIDE CORRECTIONS IN RELATION TO THE CROSS-REFERENCING OF DIFFERENT SECTIONS OF THE BOZEMAN MUNICIPAL CODE. 07-13-87 302 The City Manager reminded the Commissioners that they had conducted the public hearing on, and approved, this Zone Code Amendment on May 18, 1987. He then recommended that the Commission provisionally adopt Ordinance No. 1238 and that it be brought back in two weeks for final adoption. Commissioner Martel raised questions about various sections of the ordinance, to which Planner Elkins responded. The following changes are to be made as a result of those questions: Page 7 - Section 18.46.070.E.2. - change "continual" to "continuous" and Page 29 - Section I 18.56.100.A.1. - change "monthly or quarter-annual payments" to "monthly, quarterly or annual payments. " The Planner indicated that she will review Section 18.62.060 to determine if the "City Commission" was inadvertently omitted. It was moved by Commissioner Jordan, seconded by Commissioner Stiff, that the Com- mission provisionally adopt Ordinance No. 1238, as amended, amending Title 18 of the Bozeman Municipal 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 Jordan, Com- missioner Stiff, Commissioner Martel, Commissioner Vant Hull and Mayor Mathre; those voting No, none. Commission Resolution No. 2662 - ordering public hearing for proposed increase in water rates City Manager Wysocki presented Commission Resolution No. 2662, as prepared by the City Attorney, entitled: COMMISSION RESOLUTION NO. 2662 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, ORDERING A PUBLIC HEARING BE HELD ON A PROPOSED TWELVE PERCENT (12%) INCREASE IN THE WATER RATE CHARGED TO CUSTOMERS OF THE MUNICIPAL WATER SYSTEM. The City Manager recommended that the Commission adopt this Resolution and set the public hearing date for August 10, 1987. He noted that the primary reasons for seeking a 12 percent rate increase include (1) the City did not receive all of the increase requested before I the Public Service Commission last year; (2) the City is not meeting its bond covenants and, therefore, cannot seek refinancing of the bond issue at a more advantageous interest rate; and (3) the City must complete major maintenance of its water distribution system as well as fund specified improvements to the water system, including the presedimentation pond, Lyman Creek and Hyalite Dam. Commissioner Stiff asked if this Resolution limits how the City utilizes the additional reve- nues. The City Manager indicated it does not. He noted the objective of the Resolution is to . set a public hearing on the proposed rate increase, leaving use of those revenues as flexible as possible. He then indicated that the revenues generated through this increase will not be suf- ficient to meet all of the existing needs, as listed above; therefore, the City will need to seek additional rate increases at some time in the future. It was moved by Commissioner Stiff, seconded by Commissioner Martel, that the Commis- sion adopt Commission Resolution No. 2662, ordering a public hearing for the proposed increase in water rates, and set the public hearing date for August 10, 1987. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Stiff, Commissioner Martel, Com- missioner Vant Hull, Commissioner Jordan and Mayor Mathre; those voting No, none. Review of letter to County Commission re funding for the library during Fiscal Year 1987-88, as prepared 15y Commissioner Vant ~ull City Manager Wysocki presented to the Commission a letter to the County Commission re- I garding funding for the library for the upcoming year, as prepared by Commissioner Vant Hull. Following a brief discussion, the first sentence of the final paragraph was slightly re- vised. The Commission then directed the Clerk of the Commission to prepare this letter in final form, with all Commissioners to sign the letter. Discussion - setting of goals for Fiscal Year 1987-88 City Manager Wysocki stated that a summary of the Commissioners' ballots was included in the packets. 07-13-87 -303 Mayor Mathre suggested that the Commission review those goals which received the most points, based on the point system shown along the left side of the summary. She also suggested that the Commissioners consider selecting the top three goals in each category as those upon which to work during Fiscal Year 1987-88. The Mayor noted that under Budgetary--General Fund, one goal has 10 points, another has 8 points, and two goals have 6 points. She then noted the top goal, based on the point I system, suggests that one director be hired for parks and recreation, noting that would cause the City to hire another employee. She then asked if that is the intention of having this as a top goal. Following discussion, the Commissioners concurred that they did not intend to increase personnel through this goal; however, they also indicated that they did not wish to reconsider prioritization of this category. The City Manager suggested that the Commission may wish to leave all of the goals on a list for Fiscal Year 1987-88, with the staff working on as many of them as possible during the year. Break - 3:10 to 3:17 p.m. Mayor Mathre declared a break from 3:10 p.m. to 3:17 p.m., in accordance with Commis- sion pol icy established at their regular meeting of March 14, 1983. Discussion - funding for expansion of Hyalite Dam - Glen McDonald, DN RC City Manager Wysocki stated that Mr. Glen McDonald and Mr. Rick Bondy, Department of Natural Resources and Conservation in Helena, are present to discuss the method of funding for the proposed expansion of Hya'ite Dam, which the Commission had previously endorsed. He then distributed to the Commissioners copies of a letter dated May 11, 1987, along with an attached spread sheet for the life of the loan. Mr. Glen McDonald provided a brief update since his meeting with the Commission on I December 22, 1986. He noted that the Department submitted its final application for this project under the new federal guidelines. He stated that under the new guidelines, the interest rate for the project dropped from the 10 3/4 percent discussed in December to 7 1/2 percent. He also noted that the Bureau of Reclamation reviewed the calculations for the grant requested for recreational purposes and found that it could be increased about 40 percent, to $219,000. Mr. McDonald stated that with these changes, the DN RC has recalculated the cost of water to the City, determining that it will be $31.22 per acre foot per year for all water used and $9.00 per acre foot for each acre foot not used. He then indicated that a $1.00 0 & M charge is included in the figure quoted for the water used. Mr. McDonald stated that under this proposal, the $9.00 for each acre foot of water not used wi II be placed in a Sinking Fund which will be maintained and operated by the City. He noted the $31.22 per acre foot that is paid by the City to the Department will be applied toward the City's annual payment on the loan, with the balance of the payment to be made from the Sink- ing Fund. Mr. McDonald stated that the agricultural users will pay no interest on their portion of the dam expansion and repair costs. He noted that the acre feet used by the City will be sub- ject to the 7 1/2 percent interest: and as long as the unused water remaining in the reservoir is made available to agricultural users, the City will not be required to pay interest on that por- tion. Mr. Glen McDonald stated that, due to the number of variables in this project, it has been difficult to determine the charge for the unused water. He indicated, due to that problem, I the Department has included a provision that the amount paid into the Sinking Fund for those acre feet be reviewed and adjusted as necessary every five years during the life of the forty- year loan. Mr. McDonald noted that, due to the variables involved, the amount of interest "and the total payment due each year must be calculated on an annual basis. He stated that the amounts contained in column 29 of the spread sheet attached to his letter of May 11 reflect the maximum payment that would be due in a particular year. Director of Finance Gamradt asked for what portion of the $3.2 million loan the City will be responsible. 07-13-87 3011 Mr. McDonald stated that the City will be responsible for approximately 65 percent of the loan. City Manager Wysocki asked if the City would be able to subcontract some of its unused water, using those monies to subsidize the City's $9.00 per acre foot annual payment for all un- used water. Mr. Bondy stated the DN RC does not care who subcontracts with the City for water. He cautioned the Commission, however, that if the water is used for agricultural purposes, the loan I is non-interest bearing; and if the water is used for municipal purposes, i.e., another incor- porated entity, the loan is interest bearing on that portion. Director of Finance Gamradt asked if the City will be responsible for a specific portion of the revenue bonds for this project. Mr. McDonald stated that the bonds for this project will be issued to the Department of Natural Resources and Conservation through the Bureau of Reclamation project. He noted that the City will not be directly responsible for any portion of those bonds. Mr. Bondy stated that, based on their projections, in the early years of the loan, the principal payments on the unused water will be less than $9.00. I n the later yeqrs, the pri n- cipal payments will be more than $9.00; however, the unused monies plus the interest earned on those monies should cover the additional costs. Mr. Bondy then noted that the loan has been set up with low principal payments in the early years and substantially higher principal pay- ments in the last few years, making this loan advantageous to the City. City Manager Wysocki asked if it would be to the City's advantage to take the balance re- maining in the Sinking Fund at the end of each year and apply it toward the principal of this loan. Mr. Bondy stated that, although prepayment of the loan would be allowed, the loan is non- interest bearing on that portion of the water not used; therefore, there is no incentive to pay it early. Director of Finance Gamradt asked how much it would cost for repair only of the dam. Mr. McDonald stated that if the dam is not raised, the costs of repair will be only slight- I Iy lower than with the expansion. He noted that if the dam is raised seven to ten feet, the left abutment of the bridge is closer to what is needed; and the dirt removed from one portion can be easily relocated to another. Mr. Bondy stated that the cost per acre foot is less with the expansion of the dam than it would be for repair of the dam. City Manager Wysocki asked about the concerns that have been raised over the grayling in the reservoir. Mr. McDonald stated that the Forest Service has issued a "Finding of No Significant En- vironmental Impact, II noting that the grayling have successfully used the artificial spawning habi- tat developed last year. The Director of Finance asked when the first payment will be due and how often the pay- ments are due. Mr. McDonald stated that the first payment is due in 1991; and they are set on an annual schedule. Commissioner Martel asked how long it will take to fill the reservoir once the dam has been raised. Mr. McDonald stated that at the present time, some of the water is let go in the winter and early spring so that the water does not flow over the spillway. He noted that in this water- shed, the reservoir should completely fill the first year. Commissioner Martel asked if the new water will be available for year round use. Mr. McDonald stated that the new water will be available on a year round basis. I City Manager Wysocki noted the previous discussions included possible requirement for a minimum pool. He then asked what the status is on that item. Mr. Bondy stated that no minimum pool has been required. He noted that the DNRC had indicated to those groups showing interest in that requirement that they would need to purchase that portion of the water. He stated that no one has done so; and now all of the available water has been obligated. He noted that anyone now wishing to establish a minimum pool will need to approach the City about purchasing some of the water. 07-13-87 3 U:5 The City Manager stated that the amount of runoff in the watershed and historical usage of water from the reservoir shows that a substantial amount of water remains in the fall and winter. He then indicated that the City's position should be that it will not entertain any idea of a minimum pool requirement. Mr. Bondy noted that if a group wishes to pursue a minimum pool, they will be required to purchase the necessary water at $31.22 per acre foot. He then stated he has suggested that I if an entity wishes to see that requirement imposed, it may consider purchasing water in a dry year at a cost of maybe $50.00 per acre foot to be assured of a minimum pool. Mr. McDonald stated that the lowest water level in the reservoir was in the 1960's, when water was let out of the dam during a search for a drowning victim. He indicated even that water level was higher than a minimum pool would maintain. Mr. Rick Bondy stated that the Forest Service is asking for wider bridges than the DN RC has proposed, and they are also asking for more deluxe campgrounds than are contained in the application. He then indicated that the Forest Service has indicated a willingness to pay for paving of the road through the project in exchange for upgrading of those two items. He noted that paving of the road has been budgeted; therefore, the costs should be basically offset by the exchange. Mr. Bondy cautioned the Commission that if the Forest Service does manage to have its desires made requirements for this project but does not provide funding for paving the road, it could have an adverse impact on the costs. The City Manager asked what actions will be required of the City. Mr. Bondy stated that when the Department of Natural Resources and Conservation has signed a contract with the Bureau of Reclamation, the City will be required to sign a contract with the DNRC. He noted that the language of that contract can be developed, leaving the costs for purchasing of the water blank until the finalized costs are known, and agreed upon prior to time for signing. Mr. Glen McDonald stated that, due to the length of time involved in planning for this project, the Bureau may request another letter from the City indicating it is still interested in I pursuing the project. The Commissioners thanked Mr. McDonald and Mr. Bondy for providing this update. Discussion (continued) - setting of goals for Fiscal Year 1987-88 Mayor Mathre noted that during discussion earlier in the meeting, the City Manager had suggested that all of the goals listed on the ballot be retained, recognizing that some of the goals will be dealt with as opportunities arise. She then asked if the Commissioners are willing to concur in that process. City Manager Wysocki reminded the Commission that the goals listed on the ballot are al- most totally those mentioned during the town meetings held in April. He then suggested that the Commission may wish to review the list of last year's goals to see if any of those should be retained as well. Commissioner Jordan indicated that he feels a review of last year's goals may help bring these goals into perspective. The other Commissioners concurred; and the City Manager indi- cated he will place a copy of last year's goals in next week's packet. Appointment of subcommittee to review Pledged Securities as of June 30, 1987 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 Martel, seconded by Commissioner Vant Hull, that Com- missioner Jordan and Commissioner Stiff be appointed to review the pledged securities as of June I 30, 1987. The motion carried by the following Aye and No vote: those voting Aye being Com- missioner Martel, Commissioner Vant Hull, Commissioner Jordan, Commissioner Stiff and Mayor Mathre; those voting No, none. Acknow~edge receipt of request submitted by Bill Ogle, BAR Land Co., I nc., for vacation of the alley In Block 111, Northern Pacific Addition; refer to staff for review City Manager Wysocki stated that Commissioner Vant Hull had requested this item be re- moved from the Consent Items for discussion. 07-13-87 30e; Commissioner Vant Hull noted she had previously suggested that the Commission consider the possibility of requiring property owners to purchase the vacated right-of-way, rather than simply vacating it. She reminded the Commissioners that the staff was to review the matter and asked if they are still interested in this idea. Commissioner Martel expressed reservations about such a policy, noting that in many in- stances, easements for underground utilities allow only parking in those areas; and vacation of the right-of-way does not substantially benefit the adjacent property owners. He then reminded I the Commissioners that vacation of rights-of-way automatically places those properties on the tax rolls, thus generating additional revenues to the City. Commissioner Jordan suggested that the staff contact the City of Bi IIings to determine how their policy has been established and how well it works. It was moved by Commissioner Vant Hull, seconded by Commissioner Jordan, that the Com- mission acknowledge receipt of the request submitted by Bill Ogle, BAR Land Company, Inc., for vacation of the alley in Block 111, Northern Pacific Addition, and refer the request to staff for review. The motion carried by the following Aye and No vote: those voting Aye being Com- missioner Vant Hull, Commissioner Jordan, Commissioner Stiff, Commissioner Martel and Mayor Mathre; those voting No, none. Claims City Manager Wysocki stated that Commissioner Vant Hull had requested this item be re- moved from the Consent Items for discussion. Commissioner Vant Hull noted that one of the claims listed is in the amount of $391.37 for repair of the lowering device used at the cemetery. The Commissioner noted that the fee for use of this equipment was recently raised from $5.00 to $10.00, suggesting that possibly the fee should be increased even further. It was moved by Commissioner Jordan, seconded by Commissioner Stiff, that the Com- mission approve the claims as listed and authorize and direct payment thereof. The motion car- ried by the following Aye and No vote: those voting Aye being Commissioner Jordan, Com- I missioner Stiff, Commissioner Martel, Commissioner Vant Hull and Mayor Mathre; those voting No, none. Discussion - FY I items City Manager Wysocki presented to the Commission the following "For Your Information" items. (1) Water use report for the week ending July 8, 1987. Commissioner Martel requested that discussion of the water supply, along with possible lifting of the hour restrictions in view of the historical data now available, be placed on next week IS agenda. (2) Commissioner Stiff noted that the Forest Service will be conducting a tour of the Bozeman Creek drainage area on July 23; and he will be unable to attend. He then asked if the other Commissioners would object to someone traveling in his place; and they indicated they wou Id have no objections. (3) The City Manager distributed copies of information just received from the League of Cities and Towns office, including a request for topics of discussion at the League Convention; a registration form for the League Convention; and information on the video draw poker machine license fees. I It was moved by Commissioner Stiff, 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: 07-13-87 3uT those voting Aye being Commissioner Stiff, Commissioner Martel, Commissioner Vant Hull, Com- missioner Jordan and Mayor Mathre; those voting No, none. Adjournment - 4:37 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 07-13-87