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HomeMy WebLinkAbout1987-11-30 47S MINUTES OF THE MEETING OF THE CITY COMMISSION BOZEMAN, MONT ANA November 30, 1987 ************************ The Commission of the City of Bozeman met in regular session in the Commission Room, Municipal Building, November 30, 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. Minutes It was moved by Commissioner Jordan, seconded by Commissioner Stiff, that the minutes of the regular meeting of November 23, 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. Ordinance No. t e period uy City Manager presented the Tentative Capital Improvement Program Appropriation Ordi- nance, as reviewed by the City Attorney, entitled: ORDINANCE NO. AN ORDINANCE OF THE CITY OF BOZEMAN, MONTANA, APPROPRIATING CITY FUNDS FOR VARIOUS CAPITAL ITEM EXPENDITURES FOR THE PERIOD JULY 1, 1987 TH ROUGH SEPTEMBER 30, 1988. The City Manager reminded the Commission that this tentative appropriation ordinance is for a fifteen-month period. He then indicated that the ordinance includes rebudgeted items as well as those items listed in Schedule A of the capital improvement program for this fiscal year, I revised to include the scales at the landfill. He recommended that the Commission provisionally adopt the ordinance and set the public hearing for December 21, 1987. It was moved by Commissioner Stiff, seconded by Commissioner Martel, that the Commis- sion provisionally adopt the tentative appropriation ordinance for the Capital Imp~ovement Pro- gram for the period July 1, 1987 through September 30, 1988; and set the public hearing for De- cember 21,1987. 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. City Manager presented the Tentative Energy Conservation Capital Improvement Program Appropriation Ordinance, as reviewed by the City Attorney, entitled: ORDINANCE NO. AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, APPROPRIATING CITY FUNDS FOR VARIOUS ENERGY CONSER- VATION CAPITAL IMPROVEMENT PROJECT ITEM EXPENDITURES FOR THE PERIOD JULY 1,1987 THROUGH SEPTEMBER 30,1988. The City Manager indicated that three rebudgeted items are included in this tentative ap- propriation ordinance. He recommended that the ordinance be provisionally adopted and that the public hearing date be set for December 21, 1987. It was moved by Commissioner Martel, seconded by Commissioner Vant Hull, that the Commis- I sion provisionally adopt the tentative appropriation ordinance for the Energy Conservation Capi- tal Improvement Program for the period July 1, 1987 through September 30, 1988; and set the public hearing date for December 21, 1987. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Martel, Commissioner Vant Hull, Commissioner Jor- dan, Commissioner Stiff and Mayor Mathre; those voting No, none. Fifth Monday discussion City Manager Wysocki stated that, included in the Commissioners' packets, was a copy of 11-30-87 479 a list of items for discussion under this agenda item, as prepared by Commissioner Vant Hull. The Commissioners then discussed various items, as follows. (1 ) I ncentive awards for City employees. Commissioner Vant Hull noted that the Com- mission had implemented an incentive awards program; however, the program was not utilized long enough to determine how beneficial it was. She then suggested that the Commissioners may wish to re-implement the program. I City Manager Wysocki indicated that the City of Grand Junction had an incentive program during his tenure and stated he would be supportive of trying that type of program here. He noted that they had an employee of the month; and an employee of the year was chosen from those twelve. He stated that the process was time-consuming but did seem to help morale. Commissioner Jordan noted that in Great Falls, the employees have a get together in De- cember; and awards are given for those who have worked for five or ten years, who have not missed a day's work in the past year, and similar items. He indicated that approach also seemed to work well. Commissioner Vant Hull suggested that she and Commissioner Stiff review their records from the past program, having some of the materials copied for the City Manager and new Com- missioners to review. (2) Formation of a "band aid" group. Commissioner Vant Hull stated she had dis- tributed about 100 questionnaires during the last band concert, receiving half of them back. She then submitted to the Commissioners a copy of the summary which she had prepared. The Commissioner indicated that the results generally indicated that people enjoy the band concerts; and most of those returning the questionnaires stated they would be willing to give a contri- bution, as long as no set fee was imposed. She also noted that some of the individuals indicated they would be interested in joining a "band aid" group to seek private donations to help support the band concerts. She then indicated that of the 50 who returned the questionnaires, 25 live in the city limits; 21 live outside the city; and 4 are unknown. Mayor Mathre noted that during Shakespeare in the Park, envelopes for donations are dis- I tributed; and those interested may mail those in. She suggested that might also work in this situation if a "band aid" group were willing to be responsible for such activities. City Manager Wysocki asked about funding for the bandshell, noting that replacement of that facility has been included in the capital improvement program. He further reminded the Com- mission that the CI P document also indicates that private donations are to cover a portion of those costs. He then suggested that a portion of the contributions could be utilized for re- placement of the facility. Mayor Mathre suggested that the Commission ask for volunteers to seek contributions for the band activities as well as construction of the bandshell. It was moved by Commissioner Vant Hull, seconded by Commissioner Jordan, that the Com- mission authorize and direct the Clerk of the Commission to advertise for volunteers who would like to form a lIband aid" group to help support the band and possibly the new bandshell. 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 vot- ing No, none. (3) Possible formation of a cemetery district. Commissioner Vant Hull noted that the cemetery fees currently do not cover the costs of operation at the cemetery; therefore, city residents are currently subsidizing approximately $30,000 annually. She suggested that if a cemetery district were formed, county residents would also be involved in bearing those costs. Mayor Mathre cautioned that if a cemetery district were formed, a three-member board, appointed by the County Commissioners, would be responsible for operation of the cemetery. I She questioned whether the City Commission is ready to give up that responsibility. The Mayor then suggested another possible way to address the situation would be to estab- lish different fees for city residents and county residents. She noted that under that mecha- nism, city residents would be supporting the cemetery both through use fees and property taxes; however, county residents would be paying higher use fees, which would help cover the costs paid through taxes. Commissioner Jordan noted that the City may have a substantial investment in the ceme- tery property and items such as sprinkler systems. He then suggested that a differential in fees may be a better approach to the problem than formation of a. cemetery district. 11-30-87 48U The City Manager noted that the cemetery fees have not been revised for two years and suggested a revision may be in order. (4) Change of Commission meeting time. Commissioner Stiff stated that Commissioner- Elect Bob Hawks has contacted him about possible change in the Commission meeting time. He noted that during original discussions, they had considered the possibility of conducting the business sessions on Wednesday afternoons, retaining the Monday evening public hearing format; however, they later determined it would be better to have all of the meeting on Wednesdays. I Commissioner-Elect James Goehrung stated he works on a quarter-to-quarter contract at Montana State University; and he would like to know within the next few weeks if the Commis- sion meeting schedule is to change. He then questioned how a split meeting schedule would im- pact the staff's workload. City Manager Wysocki stated that two preparation periods would not be desirable. He also noted that some of the Commissioners travel during the week; and to have two separate ses- sions could create problems for them. He then suggested another possibility would be to have two afternoon sessions and two evening sessions per month. Commissioner Vant Hull stated she does not support having fewer Commission meetings, noting that she does not feel they would be as well informed. She then noted that Commission meetings were changed to Mondays because the Commissioners wanted to have the weekend to re- view the packets. Commissioner Goehrung noted that if the Commissioners need to contact people from the downtown, it is difficult to do on weekends. Commissioner Stiff stated agreement, noting the City staff is also not available to respond to questions except on Monday mornings under the present system. Commissioner Martel stated support for two meetings per month, held in the evenings rather than during the daytime. He then indicated that he does have a problem with conducting public hearings on Wednesday evenings, which is traditionally a church night. He suggested that Thursday may be a better day to consider. It was moved by Commissioner Stiff, seconded by Commissioner Vant Hull, that Commis- I sion meetings be changed to meet at 2:00 p.m. every Wednesday, with public hearings to be held and public interest items to be considered at 7:00 p.m. on the first and third Wednesday of each month. The motion carried by the following Aye and No vote: those voting Aye being Commis- sioner Stiff, Commissioner Vant Hull and Mayor Mathre; those voting No being Commissioner Martel. Commissioner Jordan abstained. City Manager Wysocki suggested that this discussion be ended at this time, since the staff needs an opportunity to prepare for this eveningls public hearing. The Commissioners concurred; and the Mayor requested that this discussion be placed on the agenda in December during a light business session for further consideration. Break - 3:27 to 3:37 p.m. Mayor Mathre declared a break from 3:27 p.m. to 3:37 p.m., in accordance with Commis- sion policy established at their regular meeting of March 14, 1983. City Managerls update on status of goals for current fiscal year City Manager Wysocki reviewed those goals upon which activity has occurred, as follows. C. Hiring of personnel administrator. Twyla Stratton's position has been upgraded to include personnel officer duties. She is attending schools whenever possible to gather the ne- cessary information for this new position. F. One director for parks and recreation. The staff is preparing a proposed job des- cription for this position; and the information wi II be forwarded to the consultants for review. I J. Develop and implement impact and hook-up fees for water (and sewer). The City Manager suggested that possibly the annexation policyls requirement for water rights or cash-in- lieu may be a part of this, but not labeled as such. He indicated no further action has been taken on this item. K. Require metering of all water usage. The staff is currently in the process of in- stalling additional water meters. Some of those meter installations require meter pits, which re- sults in additional time and expense of installation. 4. Update and implement Master Plan. The City Manager reminded the Commission 11-30-87 481 that the City-County Planning Board controls this item. He then noted that the Planning staff is currently working on the update. 7. Maintain existing revenues and create new sources of revenues to support basic services. This item is usually addressed through the State Legislature, which will meet in 1989. He noted that the League should develop proposals for that legislative session. BB. Review of ordinances -- sidewalk snow shoveling; trimming of trees and shrubs along rights-of-way; conditional uses. The Commission has reviewed the sidewalk snow removal ordinance and decided to retain it in its current form. The other items have not been addres- sed. MM. Annexation of annexable areas. The City Manager noted that some unannexed areas are completely surrounded areas within the city limits; however, any area that is used for agricultural purposes cannot be annexed unless the property owner agrees. He stated one such tract abuts South Third Avenue, where the City is considering installation of a sidewalk; there- fore, that item may require reconsideration. 3. Plan for future solid waste disposal, including alternatives to burying. Dis- cussions about incineration have begun. The City Manager noted the City has an opportunity to purchase the burning unit only for $180,000; however, at the present time two would be needed to process the garbage; and all of the additional items needed would have to be purchased as well. 1. Equip police and fire departments adequately -- pumper truck; additional equip- ment for haz mat van; replacement of patrol cars on regular schedule; adequate training for po- lice and fire personnel. Purchase of a pumper truck is projected for Fiscal Year 1990; additional equipment for the hazardous materials van is scheduled for Fiscal Year 1989; and regularly sched- uled replacement of patrol cars is included in each yearls budget at the present time. The City Manager then indicated that monies for training of police and fire personnel is contained within the operations budgets for those divisions. H. Pave gravel streets. The City has paved the block of West Villard Street between I North Tracy Avenue and North Willson Avenue, South Wallace Avenue from East Babcock Street to East Curtiss Street, East Olive Street from South Wallace Avenue to South Church Avenue, and East Peach Street from North Wallace Avenue to Broadway Avenue with some of the millings from the interstate during this past summer. The City Manager stated that South Eighth Avenue has also been milled and repaved, noting that was not a gravel street but did need repair. JJ. Capital improvement projects past current budget year--5-year C I P. This item has been completed. 2. Improve water system -- presedimentation pond; improvement of Lyman Creek sup- ply; expansion of Hyalite Reservoir. The City is reviewing three and possibly four sites for construction of a presedimentation pond and has contacted the property owners concerning the possibility of an option to purchase. The expansion of Hyalite Reservoir received no votes dur- ing ranking of the goals; however, the State is moving forward with that process. The City Man- ager noted that a recent court case determination may affect that expansion and any future dam construction in the Bozeman Creek drainage because it states that any water not already claimed belongs to Montana Power Company. He then indicated that the water rates were increased re- cently; and the City should meet the bond covenants this year for the first time. He further indicated that development of the design for improvement of the Lyman Creek supply is under- way. 2. Improve sewer system -- correct deficiencies in percolation beds; establish proce- dure for maintenance of sewer lines; maintain sewer rates at level to cover costs. The City is currently waiting for a determination on whether repair of the percolation beds at the Waste I Water Treatment Plant will be funded through State or Federal monies. He noted that represen- tatives from EPA were in Bozeman to determine whether the beds are being properly operated before making a decision on the Cityls application for funding. The City Manager reminded the Commissioners that two additional persons have been hired in the Sewer Division to begin a me- thodical maintenance program for the sewer lines. He also indicated that the staff is carefully reviewing the sewer rates to be sure that they generate adequate revenues to cover the costs incurred. Commissioner Vant Hull asked if the staff is considering more strict enforcement of traffic regulations, writing additional tickets when deemed appropriate. She then cited the failure to 11-30-87 482 stop for pedestrians on Mendenhall Street and Babcock Street as examples. The City Manager stated that he has discussed the failure to stop for pedestrians with the Chief of Police; however, he has not asked for a report back. Mayor Mathre suggested that the list of goals be recompiled to include only those upon which City Manager Wysocki submitted his report, rather than keeping all of the goals discussed earlier this year. Following discussion, the Commissioners concurred that the list should remain as it is, with the City Manager working on those goals as he has an opportunity. The Mayor then requested that the Commissioners complete their evaluation forms and re- turn them next week. Claims City Manager Wysocki submitted to the Commission a listing of the claims for the past two weeks, and recommended that the Commission authorize payment of these claims. It was moved by Commissioner Jordan, seconded by Commissioner Stiff, that the Commis- sion approve the claims as listed, and authorize and direct the Director of Finance to pay said claims. The motion carried by the following Aye and No vote: those voting Aye being Commis- sioner Jordan, Commissioner 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) A letter from Mary Ellerd dated November 20, 1987, stating support for designation of West Koch Street as a through street from South Willson Avenue to South Eighth Avenue. (2) Two letters from the State Historic Preservation Office listing those properties lying within the city that have been listed in the National Register of Historic Places. (3) The City Manager stated that the Technical Advisory Committee and the Policy Co- ordinating Committee will conduct a joint meeting at 10: 00 a.m. on Wednesday, December 9, in I the Commission Room. He noted that the State will provide an update on the availability of mon- ies and possible alternatives for phasing of projects. (4) Mayor Mathre indicated that an Interagency Breakfast is to be held at 7:00 a.m. on Wednesday, December 9 at the Baxter Hotel. (5) Commissioner Vant Hull stated that she talked to four fifth grade classes about the Cityls financial problems. She then showed the Commissioners a card and basket which the clas- ses had made and sent to her. (6) Commissioner Jordan verbally submitted his resignation from the City Commission, indicating that he will submit a written resignation later, to be effective December 4. He then thanked the people of Bozeman for giving him the privilege and honor of serving on the Commis- sion. He also thanked the prior Commission as well as the new Commission for making the posi- tion interesting and enjoyable at times. He then thanked the City staff for being helpful. Mayor Mathre requested that possible appointment of a replacement for Commissioner Jordan be placed on next week1s agenda, with the Commission determining at that time if they wish to fill the vacancy for the thirty-day period which will exist due to this resignation. Recess - 4:18 p.m. Mayor Mathre recessed the meeting at 4: 18 p. m., to reconvene at 7: 00 p. m. for the pur- pose of conducting the scheduled public hearing. Reconvene - 7:00 p.m. I Mayor Mathre reconvened the meeting at 7: 00 p.m., for the purpose of conducting the scheduled public hearing. - Ordinance No. 1251 - revisin Chapter 5 of the Bozeman Munici al This was the time and place set for the continued public hearing on Ordinance No. 1251, entitled: 11-30-87 483 ORDINANCE NO. 1251 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA AMENDING TITLE 5 OF THE BOZEMAN MUNICIPAL CODE, OF THE CITY OF BOZEMAN, MONTANA. Mayor Mathre opened the continued public hearing. City Manager Wysocki distributed to the Commission a letter of opposition submitted by I John Nehring as well as a letter from Stephen R. Hample, Financial Network I nvestment Corpo- ration, suggesting several items which should be considered during the decision-making process. Mr. Walt Connell, attorney representing Karst Stage and City Transfer and Storage Com- pany, submitted to the Commission a letter outlining his credentials, noting that one of the Commissioners had raised that issue at last weekls meeting. He noted that he is licensed to practice in Montana and Wyoming, as well as before the U. S. Supreme Court. He further noted that he does not have a reputation for being a trouble maker, but rather has one of highest in- tegrity and that of being a problem solver. Mr. Connell stated it appears that the City Attorney's office has begun to review the proposed ordinance, taking into consideration potential litigation and potential liability. He also noted that the City Attorney's memo reiterates what he had expressed last week, that the City has the authority to tax and raise revenue and it has the authority to establish license fees for regulatory purposes; however, it does not have the authority to establish license fees as a reve- nue source. Walt Connell then stated that the adoption of life safety codes does not establish a reg- ulatory process; and there is no regulatory section contained in the current ordinance or the proposed ordinance. He indicated that he is prepared to go to court to protest the adoption of this ordinance if the license fees are more than the reasonable costs of licensing. Mr. Connell stated that the City Attorney has not yet addressed the constitutional issues which he had previously listed. He then noted that the old ordinance written in the early 1930's indicated that if any provision was in conflict with interstate commerce regulations, those regu- I lations would prevail; however, the new ordinance does not contain such a provision. Walt Connell then cautioned the Commission that if they finally adopt this ordinance and he pursues the matter through the court system, it could very easily be stricken ;down. He fur- ther cautioned that as a result of such action, the City may also be required to reimburse those license fees unlawfully collected under the ordinance, which could be a strain on the City's bud- get. Mr. Tom Simkins, manager of Simkins-Hallin Lumber, submitted to the Commissioners a comparison of selected business license fees in various communities around the state. He indi- cated that under the existing ordinance, he pays $150.00 in I icense fees; and under the pro- posed ordinance he would pay $640.00 per year. He then indicated that if he were located in Great Falls, the fee would be $48.00; $75.00 in Missoula; $10 in Helena; $30.00 in Deer Lodge; and $100.00 in Butte. Mr. Simkins stated that since he began working for the lumber company in 1973, these are about the hardest times he has seen. He also stated he feels the proposed license fee is a tax hike; and he is not sure it is good economic policy to raise taxes during a recession. Mr. Bob Abbott, owner of Images by Abbott, stated that all of the information he has seen concerning the proposed revision of business license fees indicates that the purpose is to make the structure more equitable. He then questioned how the increase in license fees makes them more equitable, noting that the minimum license fee will increase 25 percent. Mayor Mathre noted it has been five years since the Commission has implemented an in- crease in business license fees; and costs have increased during that period of time. I Commissioner Vant Hull reminded Mr. Abbott that license fees in Bozeman were extremely low for a very long time. She then noted that the $10.00 per year increase converts to about 3 cents per day. Commissioner Stiff noted that the City has been receiving slightly under $100,000.00 in business license fees under the existing ordinance; and this proposed ordinance would generate an additional $14,500.00, if the proposal for licensing of apartments is not taken into consider- ation. He stated that increase does not meet the cost of living increases which have been incur- red during the past five years. 11-30-87 481t Mr. Ken Beltz, manager of United Building Center, stated that he checked with yards in other cities around the state and found that Bozeman will have the highest business license fee in the state if the proposed ordinance is adopted. He noted that his license fee will increase from $150.00 to $400.00 plus trucks; Butte has a fee of $206.00; both Billings yards have paid $206.00, which will be lowered to $175.00 this year; Helena has paid $90.00, which is lowering to $10.00 this year; and Missoula has a fee of $50.00. Mr. Ed Hoadley, owner of Adventure Rentals, stated that under the proposed business I license ordinance, his license fee will increase from $40.00 to $400.00 per year. He then sug- gested that the Commission back off from finally adopting this ordinance, with representatives from the City meeting with some of the businessmen to develop a proposal that everyone can live with. He then indicated that he does not have a problem with a $10.00 increase; however, he does have a problem with the proposed $360.00 increase. Mr. Hoadley noted that business is 1I1ousyll in Bozeman; and it is not a good time to in- crease the busi ness I icense fees. He further noted that the business community is trying to bui Id Bozeman; and this type of action by the City does not help. Mr. Dan Klusmann, Theatre Operators, Inc., stated that he had checked the license fees for theatres which they operate in ten different communities. He found that Bozeman was the highest in the state at $150.00, with the four-plex in Billings paying $134.00; the tri-plex in Butte paying $135.00; and the remainder ranging from no license fee to $45.00. Mr. Klusmann then questioned why the license fee for theatres increases with every ordinance, having gone from $25.00 to $200.00 under the proposed ordinance in the past five years. Mr. Bob Fagliano, Three Rivers Disposal, suggested it may be time for the City of Bozeman to send a positive message to the business community. He noted that the City of Helena has taken a step in that direction by implementing its $10.00 business license fee; and possibly Bozeman should take similar action. Mr. Mike Basi Ie, 709 West Koch Street, stated he owns eight apartment units and manages about forty others in the community. He noted this is the first year he has experienced signi- ficant vacancy problems; and he has had to lower the rates to keep them rented. He also re- I minded the Commissioners that enrollment at the University has dropped 2,000 since 1983; and at the present time, more people are leaving Bozeman than are moving in. Mr. Basi Ie stated the time for implementing a $10.00 license fee for apartments is totally inappropriate. Mr. Ken Matthiesen, Champion Auto, stated that five years ago, his business license in- creased from $15.00 to $132.00; and K-Mart's license is only slightly higher. He then stated that he feels the license fees need to be equitable; and he feels that if everyone were to pay $10.00, that wou Id be equitable. He noted that the City should take action which would show that Bozeman is a pro-business community. Mr. Dave Jarrett stated he owns a sixteen-unit apartment bui Iding on Tai Lane. He then indicated that during the past three years, his property taxes have increased from $3,603.00 to $4,274.00, with the City1s portion of those taxes increasing from $1,009.00 to $1,349.00. He stated that he feels apartment owners are paying their fair share through the additional property taxes and encouraged the Commission not to implement the $10.00 additional fee. Mr. Jarrett also expressed concern about enforcement of this license, noting that probably only the highly visible apartments would be licensed while the remainder went unnoticed. Mr. Tony Wastcoat reminded the Commissioners that he had expressed opposition to the implementation of a busi ness I icense fee on apartments. He noted that with existing tax issues and the local economy, the addition of a business license fee would be inappropriate. Mr. Dennis Cattin, co-owner of Gallatin Valley Furniture, stated he can appreciate that the cost of running the City has increased; however, the costs have increased for retail busi- nesses as well. He then noted that businesses not licensed by the City, as well as residential I areas, require City services; however, they are not being required to pay additional fees for those services. Mr. Cattin then indicated that Bozeman businesses often compete with busi- nesses in other communities; and an increase in the license fee could impair competitiveness. Mr. Tom Rolfe, Rolfe and Wood, suggested that the proposed business license fee is the most anti-consumer measure that the City has considered. He then questioned why the City couldnlt implement a $10.00 license fee like Helena did. Mayor Mathre closed the public hearing. 11-30-87 485 B rea k - 8: 04 to 8: 1 2 p. m . Mayor Mathre declared a break from 8:04 p.m. to 8:12 p.m., in accordance with Commis- sion policy established at their regular meeting of March 14, 1983. - Ordinance No. 1251 - revisin Chapter 5 of the Bozeman I Mayor Mathre suggested that the Commissioners discuss one issue at a time, possibly dis- cussing the implementation of a business license fee for apartments first. She then expressed reservations about the ability of the City to enforce such a fee and whether this is the time to implement the fee. She noted that apartments are businesses and subject to a business license fee in other communities; however, now may not be the time to proceed. Commissioner Vant Hull noted a lot of questions have been raised about apartment license fees and suggested that additional research be completed before those fees are implemented. Commissioner Jordan noted that the Commissioners did not agree on the implementation of an apartment license fee from the beginning and suggested that it be deferred for a period of time. He then suggested that when such a fee is considered again, possibly a scale of 1 to 2, 2 to 10, and 10 or more should be considered, with the smaller complexes paying a proportionately higher fee. He noted that the larger complexes are required to go through the zoning pro- cesses, and they have generally met the various code regulations; however, many of the smaller units are the result of a remodeling job that may not meet all of the codes. Commissioner Martel suggested that a fee for police calls be established for apartment complexes, which would result in additional costs to those who use the service extensively. Commissioner Vant Hull stated that she feels a portion of the police and fire services is regulatory rather than enforcement; and therefore, a business license fee to cover those costs is appropriate. Commissioner Stiff stated the Commission is not ready to implement a license fee for apart- ments, especially considering all of the concerns which have been raised. He indicated that he I would support deleting the business license fee for apartments from the proposed ordinance, and striving to adjust the existing license fees so they are fair and equitable. The Commissioners then concurred that Sections 5.02.140 and 5.06.240, establishing a li- cense fee for apartments, be deleted. City Manager Wysocki stated he feels that apartments and mobile home courts should be treated in the same manner. He then suggested that since the Commissioners have agreed to de- lete the license fees for apartments at this time, they should also consider deleting Section 5.06.170(L). The Commissioners concurred, and directed the staff to delete Section 5.06.170(L) from the ordinance. Commissioner Jordan noted that Mr. Connell has pointed out several problems in the exist- ing business license ordinance. He then questioned whether the Commission should continue with this procedure or whether it should simply drop the issue at this time and direct the staff to complete a cost/benefit analysis, with a new ordinance and fee schedule based on that study to be submitted for Commission consideration. Following a brief discussion, the Commissioners concurred to continue with the existing ordinance. Mayor Mathre suggested that the Commission consider the business license fee for trans- portation firms next. She then expressed concern about basing the license fee on the number of vehicles used. Commissioner Jordan noted that the ordinance does not contain any provisions for regu- lating the business. He also expressed concern that the City would incur a liability by at- I tempting to regulate transportation businesses and indicated support for deleting that portion of the ordinance. Commissioner Stiff noted that the Commissioners have been furnished with several compari- sons of license fees from around the state by the staff as well as by some of those who spoke this evening; and some of those figures vary greatly. He then noted that the cost of a business license is a minor expense to businesses; however, it may be that the City is moving too fast in its revision process and should take time for additional review. He further noted that sixty to seventy people are present concerning this item, which could indicate a problem with the pro- posed ordinance. He than asked if the Commissioners wish to continue this item tonight or if they feel it would be better to wait. 11-30-87 48G Commissioner Jordan noted that the Commission has acknowledged that the license ordi- nance had problems and has asked the staff to address those items. He noted that at the pre- sent time, he would vote against the proposed ordinance and ask the staff to define its regu- latory powers and determine associated costs. He then noted that what other cities charge should not enter into the Commission's deliberations; however, the costs incurred by the City of Bozeman should be considered. City Manager Wysocki stated he feels that if all of the associated costs were considered, I the business license fees could~be substantially higher. He then noted that the Commission may wish to consider a slight revision in the square footages considered when the fee is determined, particularly in areas such as lumber yards where a large portion of the site is used for storage. He suggested possibly a modifier could be applied to that kind of space to arrive at a more equi- table fee. Commissioner Martel stated he concurs with some of the concerns raised by Commissioners Jordan and Stiff, noting that there are probably other concerns that have not yet been voiced about the proposed ordinance. He then stated, however, that he feels it is not necessary to conduct a comprehensive cost study, but that a much more simplified approach could be utilized. Commissioner Vant Hull noted that the City is allowed to charge a specified percentage for administration in a special improvement district and asked if an analogy could be made between that and a business license fee, based on the public safety portion of the City's budget. City Attorney Becker indicated he would need to research that item. He then stated the reason for regulating a business is to protect the public. He noted that a part of that is fire inspection and another is police protection. He stated he does not have any figures to show the benefit to the business or the cost to the community for those services. Mayor Mathre asked how difficult it would be to obtain cost figures. City Manager Wysocki stated that several items must be taken into consideration, includ- ing pol ice activity or calls. He then encouraged the Commission to continue review of the pro- posed ordinance and address the problems which have arisen in the past. He noted that addi- tional review of this issue can be completed after this new ordinance has been acted upon, when I additional time is available. Commissioner Vant Hull noted that not everyone is displeased with the proposed ordi- nance; and only those in opposition have been present to express their views. Commissioner Stiff noted that under the proposed ordinance, the license fee for trans- portation firms would decrease substantially; however, the owners of City Transfer and Karst Stage have hired an attorney to oppose it. Mayor Mathre asked about the status of the business license ordinance if this ordinance is not acted upon. City Manager Wysocki reminded the Commissioners that the City does have a business li- cense ordinance; and that ordinance will remain in effect until the Commission takes action to amend or repeal it. Commissioner Vant Hull stated she feels the new ordinance takes steps toward establishing more equitable fees and should be retained. Commissioner Stiff noted that the staff has indicated the revisions would make the busi- ness license fee schedule more equitable; however, the public comment received does not reflect that. He then asked if the City would need to hire a consultant to review the matter or if the staff can address the matter adequately. Commissioner Vant Hull stated she feels the staff can adequately address the matter. Mayor Mathre stated she is not prepared to hire a consultant, noting the staff has done a good job in attempting to address the problems which do exist. She then suggested that the Com- mission proceed with its review of the ordinance as presented. I City Manager Wysocki stated he has reviewed the proposed fee for vehicles with the City Attorney and would suggested that it be eliminated at this time. He noted this deletion would apply to both transportation firms and retail businesses. The City Manager further suggested that the Commission may wish to consider deleting those sections which refer to transportation firms, which would then place those businesses under the general business category. Commissioner Vant Hull expressed uncertainty about deleting the section totally. She noted that the vehicles used in transportation and retail businesses do require regulation; and a fee should be retained for that type of additional activity. 11-30-87 487 Commissioner Jordan stated he supports deleting those sections, noting the City cannot afford to accept the risk that may be involved in leaving them in the ordinance. It was moved by Commissioner Jordan, seconded by Commissioner Stiff, that Sections 5.02.090, 5.02.110, 5.06.150 and 5.06.220, all pertaining to transportation firms and a business license fee for motor vehicles used in a business, be deleted from the ordinance as provisionally adopted. The motion carried by the following Aye and No vote: those voting Aye being Commis- I sioner Jordan, Commissioner Stiff, Commissioner Martel and Mayor Mathre; those voting No being Commissioner Vant Hull. Mayor Mathre noted concern has been expressed about licensing of large square-footage businesses such as lumber yards. She then asked how that issue could be addressed. Director of Finance Gamradt suggested that the definition for "floor area" be changed to "square footage" and that the wording be slightly revised to eliminate reference to areas other than the structure used in the business, which should address that concern. He then suggested that inclusion of the basement could also be revised to apply only if that area is used for retail space. The City Manager also suggested that the definition of "square footage" might also be re- vised to refer to retail or office space. He then encouraged the Commission to allow the staff to work on this definition and submit back a proposal for consideration. City Manager Wysocki then asked the Commission if they concur that the minimum license fee should be increased from $40.00 to $50.00, as contained in the ordinance. Commissioner Martel stated he does not support increasing the minimum fee because no real cost figures have been submitted. Commissioner Jordan stated that when he did his internship on a costlbenefit analysis in Great Falls, he determined that the cost of a fire truck and two firemen was $52.50 per hour. He noted that, considering the fire inspections and other services and police protection pro- vided, the proposed $50.00 fee is not out of line with actual costs incurred. It was moved by Commissioner Martel that the minimum license fee remain at $40.00 rather I than being increased to $50.00 as contained in Section 5.06.010(D) of the ordinance as provi- sionally adopted. The motion died for lack of a second. Mayor Mathre asked if the Commissioners wish to address the concerns raised about the increase in license fees for theatres. It was moved by Commissioner Vant Hull, seconded by Commissioner Jordan, that the I i- cense fee for theatres remain at $150.00 rather than being increased to $200.00 as contained in Section 5.06.170(J) of the ordinance as provisionally adopted. The motion carried by the fol- lowing Aye and No vote: those voting Aye being Commissioner Vant Hull, Commissioner Jordan, Commissioner Stiff, Commissioner Martel and Mayor Mathre; those voting No, none. City Manager Wysocki reminded the Commission that they had received input from D&R Music concerning the increase in license fee for electronic amusement games. Following a brief discussion, the Commissioners concurred that the license fee should remain at $20.00, as con- tained in the ordinance. Commissioner Martel asked if definitions are provided in the original ordinance for Groups I, II, III, and IV under the general business category. Administrative Services Director Gamradt stated that the current ordinance does not con- tain definitions for those categories; however, administrative guidelines have been established based upon usage of specified services. He then indicated that during the five years the or- dinance has been in effect, the staff has received no complaints about the group in which a busi- ness is placed. The Administrative Services Director then indicated that the staff has proposed slight I modifications in the definition for "home occupation" and has also proposed a revision in the section concerning "transfer of location." City Manager Wysocki stated the staff has also proposed that Section 5.06.170(D), con- cerning demonstrations or exhibitions, be deleted; and that reference to horoscopists in Section 5.06.170(E) be deleted. He then suggested that the Commissioners concur in those changes; and they did. It was moved by Commissioner Stiff, seconded by Commissioner Martel, that the following proposed amendments, as contained in the memo from Administrative Services Director Gamradt and Administrative I ntern Minder dated November 19, 1987, be incorporated into the ordinance, 11-30-87 485 as provisionally adopted: (1) that businesses be required to comply with zoning, building and fire codes in order to be issued a business license; (2) the definition of "home occupation" be slightly modified; (3) the definition of "floor area" be replaced with a definition of "square footage;" (4) retain the requirement for transfer of license but delete the fee; and (5) the def- inition of "itinerant vendors" be slightly modified. 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. I Mayor Mathre asked what the effective date of the ordinance would be. City Manager Wysocki indicated that the effective date will be thirty days after final adoption. Commissioner Martel requested that, before the Commission take final action on this or- dinance, a complete, clean copy of the entire ordinance be submitted to the Commission for re- view, rather than just the changes and modifications. Adjournment - 9:40 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. 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 11-30-87