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HomeMy WebLinkAbout1986-06-09 231t MINUTES OF THE MEETING OF THE CITY COMMISSION BOZEMAN, MONT ANA June 9, 1986 ************************ The Commission of the City of Bozeman met in regular session in the Commission Room, Municipal Building, June 9, 1986, at 2:00 p.m. Present were Mayor Mathre, Commissioner Jordan, Commissioner Stiff, Commissioner Martel, Commissioner Vant Hull, City Manager Wysocki, Assistant I City Manager Barrick, City Attorney Crumbaker-Smith 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 any of the Consent Items be removed for discussion. Commissioner Vant Hull requested that permission to conduct the MSU Homecoming Parade be removed for discussion; and Commissioner Jordan requested that the request for release of the old American Legion records from the City Hall vault be removed for discussion, Minutes - May 27, and June 2, 1986 It was moved by Commissioner Jordan, seconded by Commissioner Stiff, that the minutes of the regular meeting of May 27, 1986, 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. It was moved by Commissioner Stiff, seconded by Commissioner Martel, that the minutes of the regular meeting of June 2, 1986, be approved as amended. 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. Continued discussion - Request for variance to allow 20-foot curb cut from West Koch Street - Ivan Sebastian, 403 South 9th Avenue City Manager Wysocki reminded the Commission that action on this item was tabled for a period of one week to allow the applicant an opportunity to address the Commission. I Mr. Ivan Sebastian, applicant, stated he has requested the variance to the curb cut to meet the off-street parking requirements for a basement apartment at the subject site. He indicated that he had submitted an application and received approval for digging a basement and adding a garage to the existing house on this lot. He stated at that time he did not realize that he could not have four cars parked on the street beside the house. Mr. Sebastian indicated that 'at that point, Building Official Yde stated he could submit to the Commission a request for varicmc.e to, the. curb cut policy. Commissioner Vant Hull asked if the four parking spaces were shown on the street in the original application. Mr. Sebastian indicated that no parking was shown on the original diagram. City Manager Wysocki asked Mr. Sebastian If he had explained initially that he planned to put an apartment in the basement. Mr. Sebastian indicated that he thought the City staff realized that an apartment would be completed in the basement. Commissioner Jordan asked how many curb cuts there are onto West Koch Street in the subject block besides the alleys, expressing concern about adding curb cuts onto a possible arterial street. City Manager Wysocki recommended that the Commission not grant the requested variance. He noted, however, that if the Commission determines it should grant a variance, the curb cut should not exceed twelve feet in width. He then expressed concern about the safety of cars backing onto an arterial street. Mayor Mathre asked if the applicant could submit an application to the Board of Adjust- ment if this request is denied. Assistant City Manager Barrick indicated that Mr. Sebastian I could not submit this application to the Board of Adjustment; but he could request a variance to allow stacked parking on the apron in front of the double car garage. It was moved by Commissioner Martel, seconded by Commissioner Vant Hull, that the Com- mission approve the request by Ivan Sebastian, 403 South Ninth Avenue, for a variance to allow a 12-foot curb cut from West Koch Street. The motion failed by the following Aye and No vote: those voting Aye being Commissioner Martel and Commissioner Stiff; those voting No being Com- missioner Vant Hull, Commissioner Jordan and Mayor Mathre. 06-09-86 235 Commission Resolution No. 2607 - authorizin 649 - sanitary sewer, water and storm ramage m i mg City Manager Wysocki presented Commission Resolution No. 2607, as reviewed by the City Attorney, entitled: RESOLUTION NO. 2607 RESOLUTION RELATING TO SPECIAL IMPROVEMENT DISTRICT NO. 649; I AUTHORIZING AND PROVIDING FOR THE ISSUANCE AND SALE OF SPECIAL IMPROVEMENT DISTRICT NO. 649 BONDS, IN THE AMOUNT OF $448,000.00 FOR THE PURPOSE OF FINANCING THE ENGINEERING DESIGN, CON- STRUCTION, INSTALLATION, INSPECTION AND ENGINEERING CERTI- FICATION OF SANITARY SEWER MAINS, WATER MAINS AND STORM DRAINAGE AND ALL OTHER NECESSARY APPURTENANCES TO SERVE PARTICULAR PROPERTIES WITHIN ANNIE SUBDIVISION, FIRST FILING. City Manager Wysocki reminded the Commission that action on this Resolution, as well as the following two Resolutions, was continued for a period of one week to allow the applicant or his representative to address the Commission. Mr. Don White, attorney representing Roger and Rosalind Smith, indicated that the appli- cants as well as Mr. Gaston, engineer for the project, are present. He then gave the Commission a summary of the various steps for this project, which have transpired over the past three and one-half years. He stated he can understand the Commission's concern about Special Improvement Districts; but he reminded them once again that this project is different from other projects because the land has been in the developer's family for several generations and the only lien against the property is directly related to this project. He further noted that Mr. and Mrs. Smith live close to the subject site and wish to see it developed as a quality subdivision. He stated that the engineering firm has worked closely with the Planning staff in developing plans for the site to make sure it complies with the Master Plan. He also noted that the first phase contains only 40 of the 230 acres, with a substantial portion of that being developed as a mobile home subdivision, which the community needs. Mr. White noted that he has submitted information to the Commission, including a copy of I the Buy/Sell Agreement form being used in the mobile home subdivision, covenants for the mobile home subdivision, a copy of the title insurance showing the only lienholder involved, and a copy of the appraisal done for the School District last year during a relocation of the school land. He indicated the covenants are quite restrictive, being patterned after covenants from Arizona and California. He then stated the mobile home subdivision will be located north of Durston Road, with buffer strips separating it from existing neighborhoods. Mr. White then noted the project is a natural westward extension of the city, with water and sewer lines being located adjacent to the project. He also noted the developer has agreed to provide certain off-site improvements and has signed Waivers of Protest to the Creation of SID's for improvements abutting his property as well as dedicating the right-of-way for various streets. Don White stated that Mr. Smith has entered into Buy/Sell Agreements; and Notices of Purchaser's I nterest have been filed to split the liability according to the City's policy. He also noted a number of investors are involved in the project through limited partnerships. He indicated that payment of the SID assessments will be made in a timely manner; and those payments I are not dependent upon the sale of lots. He stated that the worst case scenario would be that the mobile home subdivision lots would not sell, in which instance Mr. Smith could convert the "" project to a mobile home park and rent the lots, generating more annual income than the annual 5 I D payments. Commissioner Jordan expressed concern that this project has been going for three and one-half years, with the Commission approving those items which have been submitted; and now, I on the final step before construction, the applicant is proposing an alternative to a strict City policy. He questioned whether approval of this alternative method would abrogate the City's policy, which was implemented to protect the City. Mr. White reminded the Commission that this situation is different from most situations because the project is not leveraged and there are no liens against the property. He then indi- cated that he feels the process which they have followed has spread the liability for payment of the assessments, which was the intent behind the City's policy; and thus meets the requirements of the Resolution. 06-09-86 235 City Attorney Crumbaker-Smith stated she has discussed this alternative method with Mr. White on several occasions; and she does not agree that the limited partnerships and the Notices of Purchaser's Interest which are filed in accordance with the limited partnerships meet the requirements of the existing Resolution. Mayor Mathre asked what constitutes ownership of property and who is liable for payment of assessments. The City Attorney stated that the underlying landowner is responsible for payment. She also noted that, in the case of Notices of Purchaser's Interest with a corresponding Contract I for Deed, the Contract may specify who is responsible for payment of assessments. City Attorney Crumbaker-Smith then stated she does not feel that the limited partnerships spread the liability for payment of assessments as contemplated in the Resolution, although the Contracts for Deed for persons planning to buy a lot and live in the subdivision do spread that portion of the liability as contemplated. Mr. White stated that the developer has avoided selling ten to fifteen lots to one individual, but has chosen to sell only to individuals. He then stated that the City cannot sue an individual for the assessments because those assessments are on the property and not the individual. City Attorney Crumbaker-Smith concurred with Mr. White's statement, indicating that the City policy is based on the premise that unrelated financial interests owning different lots are not as apt to all go delinquent together as are related financial interests. The City Attorney then reviewed the process the City must go through if assessments go delinquent. She noted that first, the assessment is certified to the County; and if those assessments are not paid, the property may then be placed on the County's list for sale at auction. I f someone bids on the property at the sale, the owner may pay the delinquent assessments and reclaim the property during the three-year redemption period which follows the sale. I f nobody bids on the property at the sale and the owner does not reclaim it by paying the delinquent assessments during the redemption period, the County may pick up the deed to the property. The City Attorney stated that the only way the City can acquire the property is to pay the back taxes and assessments I up front to the County. She noted that any sale of the property by the County at the end of the redemption period is based on fair market value; and the only way the City may get any portion of the delinquent assessments is if the fair market value covers the back County taxes with money left over. Commissioner Vant Hull asked if all of the land sold has been on contract. City Attorney Crumbaker-Smith stated that she has reviewed the Notices of Purchaser's Interest and talked to Mr. White and found that 5.3 percent of the forty acres has been sold on contract. She noted that 42 percent of the land is owned by the Smiths; and the remaining 52.7 percent is apparently owned by the Smiths and involved in the limited partnerships, which she feels does not meet the intent of the Resolution because it constitutes a composite financial ar- rangement rather than separate financial interests. Commissioner Stiff expressed concern that the City is being asked to cover the general partner's liability in the limited partnership, rather than their meeting the requirements of the City's Resolution. Commissioner Jordan stated he feels that the proposed compromise does not provide as good a security for the City as the method provided in the City's Resolution. He then asked how much money would be required in the escrow account to meet the requirements of the Resolution. City Attorney Crumbaker-Smith stated that, based on 94.7 percent of the property being held in limited ownership, the escrow account would be $349,905.28 under the existing Resolution. Mr. White noted that translates to about one-third of the total amount of the three SID's, which I is $953,000.00. The City Attorney indicated that the Commission must determine whether it wishes to accept the proposed alternative method, recognizing that it does not comply with the requirements of the Resolution. Commissioner Stiff asked if this proposal was discussed with the City staff before the limited partnership concept was developed. City Attorney Crumbaker-Smith stated it was discussed; 06-09-86 237 but the staff did not agree that it complies with the policy but indicated only that they would submit it to the Commission for consideration. Commissioner Martel noted that the City's underlying concern is that the assessments be paid in a timely manner; and the developer has given his assurances that they will be. Mayor Mathre noted that other cities in Montana have addressed this concern by not allow- ing SID's on undeveloped land. She also reminded the Commission that many states do not allow I the creation of SID's on raw land. Break - 3:17 to 3:33 p.m, Mayor Mathre declared a break from 3:17 p.m. to 3:33 p.m., in accordance with Commission policy established at their regular meeting of March 14, 1983. Commission Resolution No. 2607 (continued) - authorizin sale of $448,000 in bonds 649 - sanitary sewer, water and storm drainage In a portIon 0 Commissioner Jordan indicated that he can understand Mr. Smith's hesitance to place $349,000 in an escrow account, suggesting that the Commission consider an alternative that would provide a secure escrow for the project upon which the City could easily draw rather than requiring strictly cash. Commissioner Vant Hull suggested that the developer place a portion of the unobligated land in an escrow that would become the City's if the assessment goes delinquent. Mr, White stated that could be possible; but the City would still have to sell the land. Commissioner Stiff reiterated his position, stating that he does not feel the City should be asked to approve this alternative method because of the developer's good business actions. ~ City Manager Wysocki reminded the Commission that he had previously mentioned that they may wish to review their policy, considering alternatives which may be as secure as a cash escrow account. He noted that Mr. White's proposal attempts to spread the liability, but he is not sure that would be accomplished through the proposal. The City Manager then noted that I the proposal does partially address some of the problems incurred in another major project on raw land. He also noted the project does provide a mobile home subdivision in the city limits, which is a public benefit. Commissioner Vant Hull questioned why the use of raw land as collateral was not included in this proposal. Mr. White indicated that the corridor for one-half of North 19th Avenue along Smith1s property, which totals approximately one-half mile, had been discussed. City Attorney Crumbaker-Smith noted that dedication of the other half of North 19th Avenue was discussed, since it would have value as a public benefit. However, that strip of land would not have any value since it could not be sold to cover the costs of the assessments for the 51 D. The Commissioners concurred that the mobile home subdivision would address an existing problem and would be of public benefit. They further concurred that a proposed alternative could be satisfactory and requested that the staff negotiate this matter with the applicant, bringing it back in one week for further consideration. The Commissioners then took straw votes on two major items to be considered. The majority of the Commission concurred that the escrow account must be based on 94.7 percent of the property being held in limited ownerships. The Commissioners then agreed that they would consider an alternative to the three-year cash escrow account if it is a secure mechanism. It was moved by Commissioner Vant Hull, seconded by Commissioner Jordan, that the Commis- sion table action on Commission Resolution Nos. 2607, 2608 and 2609 for a period of one week to allow the staff an opportunity to work with the developer on alternative methods for providing a secure escrow account. The motion carried by the following Aye and No vote: those voting Aye I being Commissioner Vant Hull, Commissioner Jordan, Commissioner Stiff, Commissioner Martel and Mayor Mathre; those voting No, none. sale of $458,000 in bonds for SID No. 650 - pavin , detention improvements in a portion 0 nnle . City Manager Wysocki presented Commission Resolution No. 2608, as reviewed by the City Attorney, entitled: 06-09-86 238 COMMISSION RESOLUTION NO. 2608 RESOLUTION RELATING TO SPECIAL IMPROVEMENT DISTRICT NO. 650; AUTHORIZING AND PROVIDING FOR THE ISSUANCE AND SALE OF SPECIAL IMPROVEMENT DISTRICT NO. 650 BONDS, IN THE AMOUNT OF $458,000.00 FOR THE PURPOSE OF FINANCING THE ENGINEERING DESIGN, CON- STRUCTION, INSTALLATION, INSPECTION AND ENGINEERING CERTIFICATION OF STREETS, CURB AND GUTTER, SIDEWALKS, STORM DRAIN DETENTION BASIN IMPROVEMENTS AND ALL OTHER NECESSARY APPURTENANCES TO SERVE PARTICULAR PROPERTIES WITHIN ANNIE SUBDIVISION, FIRST I FILING. City Manager Wysocki noted that action had been deferred on this Resolution by the motion made on Commission Resolution No. 2607, above. Commission Resolution No. 2609 - authorizing sale of $47,000 in bonds for extended SID No. 651 . Durston Road between North 20th Avenue and North 22nd Avenue and a ravel walkway - pavan along north SIde or a portion 0 nnie ubdivision, irst i ing City Manager Wysocki presented Commission Resolution No. 2609, as reviewed by the City Attorney, entitled: COMMISSION RESOLUTION NO. 2609 RESOLUTION RELATING TO EXTENDED SPECIAL IMPROVEMENT DISTRICT NO. 651; AUTHORIZING AND PROVIDING FOR THE ISSUANCE AND SALE OF EXTENDED SPECIAL IMPROVEMENT DISTRICT NO. 651 BONDS, IN THE AMOUNT OF $47,000.00 FOR THE PURPOSE OF FINANCING THE ENGINEERING DESIGN, CONSTRUCTION, INSTALLATION, INSPECTION AND ENGINEERING CERTIFICATION OF STREET IMPROVEMENTS FOR A PORTION OF DURSTON ROAD, A GRAVEL WALKWAY AND ALL OTHER NECESSARY APPURTENANCES TO SERVE PARTICULAR PROPERTIES WITHIN ANNIE SUBDIVISION, FIRST FILING. City Manager Wysocki noted that action had been deferred on this Resolution by the motion made on Commission Resolution No. 2607, above. Ordinance No. 1213 - Zone Code Amendment - amend Section 18.06.050 of the Bozeman Munici al ode providing or interpretation 0 particular uses by the ity ommission I City Manager Wysocki presented Ordinance No. 1213, as reviewed by the City Attorney, entitled: ORDINANCE NO. 1213 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, AMENDING SECTION 18.06.050 OF THE BOZEMAN MUNICIPAL CODE PROVIDING FOR INTERPRETATION OF PARTICULAR USES BY THE CITY COMMISSION. City Manager Wysocki reminded the Commission that they had approved this Zone Code Amendment, which clarifies the language in the subject section of the Bozeman Municipal Code. He then recommended that the Commission provisionally adopt the Ordinance and that it be brought back in two weeks for final adoption. It was moved by Commissioner Jordan, seconded by Commissioner Stiff, that the Commission provisionally adopt Ordinance No. 1213, amending Section 18.06.050 of the Bozeman Municipal Code, and that it be brought back in two weeks for final adoption. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Jordan, Commissioner Stiff, Commissioner Vant Hull and Mayor Mathre; those voting No being Commissioner Martel. ermission to conduct MSU Homecomin Pa rade - Satu rda , October 18, 1986, 10: 00 treet City Manager Wysocki noted that Commissioner Vant Hull had requested that this item be removed from the Consent I terns. I Commissioner Vant Hull noted there were a few problems last year with alcoholic beverages on floats in the parade and asked the staff to communicate concern about that item to the Parade Committee. The Commission concurred. It was moved by Commissioner Stiff. seconded by Commissioner Martel, that the Commission approve the request for permission to conduct the Montana State University Homecoming Parade on Main Street on Saturday, October 18, 1986, at 10: 00 a. m. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Stiff, Commissioner Martel, Commissioner 06-09-86 239 Vant Hull, Commissioner Jordan and Mayor Mathre; those voting No, none. from vault at City City Manager Wysocki noted that Commissioner Jordan had requested that this item be removed from the Consent Items. He stated that the American Legion, Gallatin Post No. 14, I requested and received permission in February 1966 to store their old records in the vault in the new City Hall with the provision that the Commander request release of those records when desired. He noted that request for release is now before the Commission. Commissioner Jordan asked if anyone else's information is stored in the City Hall vault. The Assistant City Manager indicated there is not. It was moved by Commissioner Martel, seconded by Commissioner Vant Hull, that the Com- mission release the records of the old American Legion, Gallatin Post No. 14, which are currently stored in the vault at City Hall. 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. Discussion - FYI items City Manager Wysocki presented to the Commission the following "For Your Information" items. (1) Agenda for the City-County Planning Board meeting to be held on Thursday, June 12, 1986. (2) A letter of complaint to President Tietz and City Manager Wysocki from residents along South Fifth Avenue near the fraternities. He noted the neighbors are concerned about the activities and beer parties in that area as well as citing lack of concern from the Campus Police and the Bozeman Police Department. The City Manager stated he has copies of reports filed by the police officers resulting I from the complaints of residents for the period of time noted in the letter showing that the police responded to all complaints, closing the parties down on the second response when one was necessary. He then stated support for the actions taken by the Police Department, noting that the Campus Police and the County Sheriff's office acted responsively as well. Commissioner Vant Hull stated she has discussed this matter with some of the residents, who indicated they felt the Police should have responded before any calls of complaint were . made. She also indicated the residents do not feel the University is responding as strongly as they should. The City Manager indicated that the University has addressed the initial problem and will discuss it further this summer. Commissioner Vant Hull then stated that the residents have requested permission to address the Commission at next week's meeting. Mayor Mathre requested that the item be placed on next week's agenda. (3) The City Manager stated he will be in Billings on Wednesday afternoon and Thursday for a League I nsurance Board of Trustees meeting, briefly reviewing the topics to be covered in that meeting. (4) City Manager Wysocki requested that the petitions for the two initiatives on limiting liability for the public and private sectors be submitted to him not later than 3: 00 p.m. on Friday afternoon. He reminded the Commissioners that the accompanying affidavits must be properly fi lied out and attached to each petition. (5) The City Manager stated that he has just received notification that the City re- I ceived the GFOA Certificate of Conformance for the second year in a row, Mayor Mathre asked the City Manager to relay the Commission's appreciation and con- gratulations to the Finance Department staff. (6) Mayor Mathre stated that she attended a League Board of Trustees meeting on Friday. She noted that some of the discussion centered around proposed legislation in the special legislative session as well as legislation for the regular session. She noted some of the topics included were motor vehicle reimbursement, alternative vehicle licensing systems, replacement of 06-09-86 240 the State license fee for video draw poker machines with a 20 percent assessment on the profits, and hotel/motel taxes. (7) City Manager Wysocki stated that the staff has been reviewing the five SID's in Valley Unit and payment of interest and bonds for them. City Attorney Crumbaker-Smith stated that the City received the semi-annual assessment from Valley Unit Corporation last November; and it has also received the monies which were held in escrow in District Court. She noted the staff must make an administrative decision on whether to call bonds as of July 1, which will have an impact on how much is levied against the I taxpayers during the next fiscal year. She further noted the staff has also given much consideration to defaulting on the bonds. The City Attorney then noted that the Agreement is still in the District Court and has not yet been signed. Also, the restraining order is still in effect and, therefore, the City cannot certify the Valley Unit assessments delinquent. She indicated the staff is considering having the lawsuit dismissed and the restraining order lifted, thus completing the court case. City Attorney Crumbaker-Smith stated that the discussion under the earlier agenda items outlined the process for handling of delinquent special assessments. She noted the three-year redemption period begins after the assessments have been certified delinquent to the County and the lots have been placed for auction at tax sale. She noted if the lots have not been redeemed or sold, the County then has the option to acquire those lots. The City Attorney then indicated the staff has also considered whether to accelerate the SID's when certifying them delinquent to the County. She noted that when a lot is sold by the County after the three-year redemption period, all certified amounts not reimbursed from the purchase price are forgiven, with the new owner being responsible for taxes and assessments billed from his date of ownership. She stated if the balances are accelerated, all assessments will be forgiven; but if they are not accelerated, the new owner will be responsible for the remaining assessments, which will probably be six to seven years. The City Attorney then stated the staff will probably recommend that the Commission certify the delinquent assessments when the restraining order is lifted, but not accelerate those balances. I City Attorney Crumbaker-Smith stated the City must also determine whether It wishes to acquire any of the lots, noting that upfront costs, including certified delinquent County taxes and City assessments wi II be involved. She also noted that if the City does wish to acquire lots, it should determine whether all of the costs incurred can be recovered. Commissioner Jordan asked if there has been any communication with the other party in this lawsuit. The City Attorney indicated there has been only contact with the local attorney, Commissioner Vant Hull asked if the City could go back to Court with a contempt of court charge. The City Attorney stated the monies assessed would not go to the City and, therefore, would not pay the bonds. The City Manager stated that the City has approximately $656,000 in monies from the initial special payment on back assessments, the semi-annual payment and the escrow account in District Court. He then noted that the outstanding bonds on the five SID's total $3,359,000; and an interest payment of $172,000 is due on July 1. He reminded the Commission that the SID Revolving Fund owes the General Fund slightly over $100,000 for a prior loan; and the Revolving Fund is currently carrying a negative balance of almost $40,000. He noted once those amounts have been subtracted from the $656,000 available, the City will have approximately $344,000 left to either call bonds or hold to make interest payments on January 1 and July 1 next year. The City Manager suggested it may be In the City's best interests to call as many bonds as possible, thus reducing the amount of interest paid semi-annually. City Manager Wysocki indicated another possibility may be refinancing of the bonds, which are currently at 10.25 percent interest. He noted the new bonds would probably run I about 9 percent interest; and they could be a twenty-year issue, which would reduce the amount of interest dUe. The City Manager noted, however, that 5 percent of the bonds must be called each year if refinancing is done because the new bonds would be registered rather than bearer bond s . He stated this refinancing would not affect the assessments to the property owners or extend the length of those assessments but would only affect the amounts paid in principal and interest by the City. 06-09-86 241 City Attorney Crumbaker-Smith reminded the Commission that the current bonds were issued in 1981 for a period of nineteen years. She noted that, although there is no require- ment to call any of the bonds until the nineteen years have expired, she feels that some of the bonds should be called whenever possible to reduce the principal amount needed in the future. The City Manager noted that this item will have an impact on the mill levy for next year, indicating that to generate monies to pay the interest only on these five SID's will require I about 15 mills. Commissioner Stiff asked about the bond counsel's responsibility in this matter. The City Attorney indicated they are looking at the issue. She noted they have a personal guarantee on these bonds, but that paper is only as valuable as the people involved. Commissioner Martel indicated he is in favor of keeping the monies and paying interest only in July and December 1986 and July 1987 rather than paying off some of the bonds and then assessing a mill levy to the taxpayers in the community during FY1986-87. Commissioner Jordan indicated he would like to see some figures on how much the interest payments would be decreased if some of the bonds were redeemed. Break - 5:06 to 5:13 p.m. Mayor Mathre declared a break from 5:06 p.m. to 5:13 p.m., in accordance with Commission policy established at their regular meeting of March 14, 1983. Discussion (continued) - FY I items (7) Commissioner Stiff asked if it might be better for the taxpayers in the long run if the City used the monies available for paying the interest and as many bonds as possible. The City Manager stated the monies are now invested at 7 percent; and the bonds are at 10.25 percent. Mayor Mathre asked if the projected 15 mills would cover any debt retirement or interest only, City Manager Wysocki stated that covers interest only. I Mayor Mathre then noted that, as discussed above, if the bonds are refinanced, the City must retire 5 percent of the bonds annually, which could mean an increase in the tax levy if the assessments remain delinquent. She stated the Commission must determine how much it is willing to levy to meet those costs if necessary. Commissioner Jordan once again indicated that he would like to see data on the principal and interest payments prior to making a decision. City Manager Wysocki indicated the staff will prepare information for consideration at next week's meeting. Consent Items City Manager Wysocki presented to the Commission the following "Consent Items." Proclamation - IIAllan McDonald Day" - June 14, 1986 Appointment of William Rost as Band Director for 1986 season Request for waiver of the open container ordinance - AFROTC - Bogert Park - Saturday, June 14, 1986, 3:30 p.m. to 7:00 p.m. Application for Beer and Wine License - Skaggs Alpha Beta, Inc., dba Buttrey Food-Drug #3834 - Calendar Year 1986 Authorize Call for Bids - Seal Coat Street Improvements and furnishing of bituminous plant mix material Building Inspection Division report for May 1986 It was moved by Commissioner Vant Hull, seconded by Commissioner Jordan, that the Commission approve the Consent Items as listed above, and that the appropriate persons be authorized and directed to complete the necessary actions. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Vant Hull, Commissioner Jordan, Commis- I sioner Stiff, Commissioner Martel and Mayor Mathre; those voting No, none. Discussion - setting of goals for FY1986-87 Mayor Mathre requested that this item be placed on next week's agenda for discussion. Adjournment - 5:30 p.m. There being no further business to come before the Commission at this time, it was moved by Commissioner Jordan, seconded by Commissioner Stiff, that the meeting be adjourned. The 06-09-86 2~2 motion carried by the following Aye and No vote: those voting Aye being Commissioner Jordan, Commissioner Stiff, Commissioner Martel, Commissioner Vant Hull and Mayor Mathre; those voting No, none. JUDITH A. MATHRE, Mayor I ATTEST: Clerk of the Commission I I 06-09-86