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HomeMy WebLinkAbout1986-06-16 243 MINUTES OF THE MEETING OF THE CITY COMMISSION BOZEMAN, MONTANA June 16, 1986 ************************ The Commission of the City of Bozeman met in regular session in the Commission Room, Municipal Building, June 16, 1986, at 2:00 p.m. Present were Mayor Mathre, Commissioner I Jordan, Commissioner Stiff, Commissioner Martel, Commissioner Vant Hull, City Manager Wysocki, Assistant City Manager Barrick 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 Jordan requested that the request for parkland exchange in Graf's Fourth Addition be removed for discussion; Commissioner Martel requested that Change Order No. 2 for Group II B of the Water System Improvements be removed for discussion; and Commissioner Vant Hull requested that the Memorandum of Agreement for Continuing Transportation Planning in the Bozeman Urban Area be removed for discussion. Minutes - June 9, 1986 It was moved by Commissioner Jordan, seconded by Commissioner Stiff, that the minutes of the regular meeting of June 9, 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. Request to address Commission - residents along South Fifth Avenue re fraternities in the area City Manager Wysocki reminded the Commissioners that they had received a letter of complaint signed by several residents in the South Fifth Avenue area near the fraternities. He indicated some of those residents are present to address the Commission, I Mr, Steve Kovatch, 1221 South Fifth Avenue, indicated there are four fraternities located within H blocks of his home, two of them being neighbors. He stated the residents of the fraternities are a general nuisance; but over Memorial Day weekend their conduct was disgusting, !'l> including loud music and yelling. He further noted it is usually difficult to park within a block of his house. Mayor Mathre asked Mr. Kovatch to list any specific criticisms besides the noise and parking problems. Mr. Kovatch noted there are often open containers late at night as well as loud vehicles roaring up and down the street. He then questioned why the neighbors have to call the police and complain before they appear and quiet the party. He indicated that he feels the police should either patrol the neighborhood more, particularly between midnight and 4:00 a.m., or be able to hear the parties because they are so loud. Mr. Kovatch stated he feels the University students should be required to live on campus, which may alleviate the traffic and parking problems now faced as well as eliminate the noise problems in the residential area. Mr. Kovatch then suggested that if the Commission were to write a letter to the national headquarters for the various fraternities involved about the behavior of their members in Bozeman, they may respond by placing certain requirements on the members. He expressed concern that minors enter the fraternity houses whi Ie parties are being held. Steve Kovatch then noted that when the police officers appear to quiet a party, they sometimes park in the alley and use the public address system. He stated he feels it would be more effective if they were to get out of the car and approach the party, addressing the I individuals involved on a one-to-one basis, Mr. Kovatch stated that he has talked with individuals from other cities who utilize a sticker system for parking within one or two blocks of the University campus. He suggested that residents in the area could be issued parking stickers to be placed on their windshields, and possibly one on-street parking space could be set aside for each residence. He also suggested another possibility to alleviate the parking problems would be to implement a public bus system in the community. Also, he noted there is adequate parking space on campus, although it is located quite a distance from the classroom buildings. He suggested it might be 06-16-86 2~ I.t possible for the University to implement a shuttle service between the parking areas and the classroom buildings. Mayor Mathre noted that the police do respond to the complaints, but they do not always have enough officers on the street to patrol selected neighborhoods on a frequent basis. The Mayor then stated the City does not have any authority in getting students to I ive on campus or in a shuttle service on campus. She noted that the ASMSU is currently pursuing the possi- bility of implementing a pilot transit system to determine if there is enough interest to be I successful. She then stated the possibility of raising the drinking age limit from 19 years to 21 years of age will be on the ballot in November; and if the drinking age is raised, it could have an effect on the activities in the various fraternities. Mr. John Thompson, 1213 South Fifth Avenue, stated he feels most of the police officers try to do a good job. He noted, however, that the fraternity students seem to have a total disregard for the rights of those who live in the community, particularly in their behavior and by the parking problems they create for residents in the area. He then cited several parking violations by University students, including parking across his driveway, across the sidewalks, in front of fire hydrants and in yellow zones, without receiving tickets. He noted one vehicle was parked on the street from September 1983 to July 1985 and was never moved but was not ticketed. He then noted that he was gone over Christmas and came back to find a ticket on his - car, which was parked on the street, but no tickets on students' cars parked along the street. Mr. Thompson noted that he rented his basement apartment to college students for eighteen years and had no problems like those being encountered now. He then stated the residents in the neighborhood put up with a substantial amount of noise from fraternity parties during the school year; but incidents like those occurring from May 29 through 31 cause the residents to seek a solution to the problems. Commissioner Vant Hull noted that a few years ago, the Commission increased the minimum fine on some of the parking violations from $5.00 to $15.00 and the Police Division implemented regular patrols in that area. She asked if those actions have helped to correct the situation; and Mr. Thompson indicated they have not. I Mrs. Kovatch, 1221 South Fifth Avenue, stated that they purchased their home about fifteen years ago and were gone for five years; and she noted the problems increased sub- . stantially during their absence. City Manager Wysocki noted that he met with Mr. Kovatch and Mr. Thompson and requested that they submit a letter, which they did immediately and which was then forwarded to the Commissioners last week. He then indicated that he has talked to Rolf Groseth, Associate Dean of Student Affairs and Services at MSU, noting Mr. Groseth deals with the fraternities and sororities. The City Manager then indicated that he will meet with Dean Groseth after the budget is completed, probably some time in July, to discuss the possible outlining of procedures prior to the return of students in the fall. Mayor Mathre suggested that letters from residents in the neighborhood to the fraternity headquarters could be more helpful than a letter from the Commission. She then indicated a willingness to send letters to the local alumni associations which oversee the subject fraternities if that is deemed appropriate. Commissioner Stiff suggested that the Commission not take any action until after the City Manager and Dean Groseth have had an opportunity to discuss the matter. Commissioner Martel cited the incident which occurred on West Garfield Street two to three months ago, noting about 200 people were involved. He stated that fraternities and sororities are not the only ones to create noise and have parties, but residences can also be involved in such activities. The Commissioner then stated that the City should make residents aware of the fact that it is responsible for the general public health, safety and welfare and I has ordinances to support that responsibility; and the police officers should then enforce those ordinances. Commissioner Jordan stated that he has noticed an increase in noise since moving closer to the campus and into an area with more students. He then noted that he and the City Manager attended an NLC Congress of Cities meeting in Seattle where topics such as noise ordinances and sticker systems were discussed; and those should possibly be reviewed to determine if they would be helpful. The Commissioner then stated that if residents in the area wish to have the 06-16-86 2LrS police respond to the noise problems, they must call so that the police officers are aware that there is a problem. Mayor Mathre requested that this item be placed on an agenda for further discussion in Ju Iy after the City Manager has met with Dean Groseth. Proposal from Three Rivers Disposal re residential waste disposal - Bob Fagliano, General Manager I City Manager Wysocki presented to the Commission a letter from Mr. Bob Fagliano, General Manager of Waste Management Ltd. of Bozeman, which operates Three Rivers Disposal, Mr. Bob Fagliano indicated that his letter requests that the Commission consider a proposal that Three Rivers Disposal become responsible for all of the residential waste disposal, rather than just a portion. He noted this preliminary request is to determine if the Commission would be interested in considering a written proposal, which would be prepared in approximately ninety days. Mr. Fagliano noted that one of the items the Commission must consider is the purchase of new equipment if the City wishes to remain in the garbage collection business; and this would possibly be a good time to consider contracting for that service rather than pur- chasing equipment. Mayor Mathre asked the Commissioners if they would be interested in considering this type of proposal after the staff has had an opportunity to review it. Commissioner Stiff indicated he would be interested in reviewing a proposal jf the City can wait that long to replace its equipment. Commissioner Vant Hull stated she would be interested in a proposal for privatization of the garbage collection service. Commissioner Martel stated he would be interested in reviewing a proposal, indicating that he would need an opportunity to review that proposal before determining whether he could support it. Commissioner Jordan indicated that he would be interested in reviewing a proposal; I however, his big concern is becoming involved in a monopolistic situation. City Manager Wysocki noted one item to be submitted to the Commission for discussion in the next week or two is the replacement of existing garbage trucks because they are becoming maintenance problems. He questioned whether the City could wait three months to make that determination. The City Manager then expressed two concerns about the proposal. He noted the rate being charged by Three Rivers Disposal for garbage collection inside the city limits is currently one and one-half times that charged by the City, He further noted that the City has received a lot of compliments about its service, questioning how many compliments the private service receives. Mr. Bob Fagliano stated they service 2700 residences and receive a number of positive comments. He then indicated that the density of homes within the city limits and the close proximity to the landfill make lower fees a possibility. He stated that the City could govern the fees charged by Three Rivers Disposal for residential garbage collection through a mutually agreeable contract, which may alleviate some of the Commissioners' concerns. He then noted that under the State Statutes, the contract could not be for more than five years; but it could possibly contain options for renewal or extension. Mayor Mathre indicated her big concern is the lack of competition, noting that the Public Service Commission has denied other companies who have requested an opportunity to conduct business in this area. Commissioner Jordan then asked if the City would be required to go before the PSC if it were to contract with Three Rivers Disposal and then later decide to reinstate the garbage I collection service. Mr. Fagliano indicated that question was raised in another community in Montana; and it was determined that the City may go back into the garbage collection service but it must give the private company a specific period of time to recapture its investment or purchase the equip- ment from that company. Commissioner Stiff noted that during consideration of the automated garbage collection system, the community once again indicated support for the City's current system. He stated the Garbage Fund is an enterprise fund and should be operated in that manner. 06-16-86 2~G It was moved by Commissioner Stiff, seconded by Commissioner Martel, that the Commission entertain a proposal from Three Rivers Disposal for the collection of solid waste in the community's residential areas. 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. B rea k - 3: 1 0 to 3: 20 p. m . I Mayor Mathre declared a break from 3:10 p.m. to 3:20 p.m., in accordance with Commission policy established at their regular meeting of March 14, 1983. Commission Resolution No. 2607 - authorizin bonds for SID No. 649 - sanitary sewer, water and storm drainage in ubdivision, Irst I mg City Manager Wysocki presented Commission Resolution No. 2607, as reviewed by the City Attorney, entitled: COMMISSION RESOLUTION NO. 2607 RESOLUTION RELATING TO SPECIAL IMPROVEMENT DISTRICT NO. 649; 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 this item has been discussed during the past two meetings; and the staff was instructed to work with the applicant's attorney during the week in an attempt to complete an acceptable agreement for the required escrow account. Mr. Don White, attorney representing the applicant, indicated that he has discussed various proposals with the City Manager during the past week and has prepared a written proposal, which he submitted to the Commission. Mr. White then reviewed the proposal, which I would include placing $127,000.00 cash in an escrow account and deeding, via a warranty deed, 25 acres of land to the City at a discounted price of $243,750.00. He noted that totals $370,750.00, which is sufficient to meet the intent of Commission Resolution No. 2441, as amended by Commission Resolution No. 2484. Mr. White then discussed the terms for release of the escrow. He indicated that either after the November 30, 1987 payment has been made or 41 percent of the square footage is sold, the first $65,000.00 in cash escrow would be released. After 61 percent of the square footage had been sold, the $62,000.00 would also be released. Mr. White then indicated that the real estate would also be released at that time, since 39 percent or less of the property would be held in limited ownership, which meets the intent of the Resolution. Don White stated that the 25 acres proposed for the escrow account would be unen- cumbered land outside Phase I, located at the corner of North 19th Avenue and Durston Road. He noted that, based on the written appraisal previously submitted, the land would be valued at $375,000.00 and has been discounted to 65 percent of that value since the City would need to sell that land rather quickly if the developer fails to make a payment. Mr. White then stated that failure to make any of the assessment payments would trigger taking money from the cash escrow to make the payment as well as the process for sale of the land by the City to cover additional payments if necessary. He also indicated that the cash escrow account and the warranty deed must be completed and in place at least ten days prior to the sale of bonds for the three subject SID's. City Manager Wysocki noted under the proposal, the first portion of the cash escrow I account would be released when either the third payment was made in November 1987 or when 41 percent of the property is sold, whichever occurs first. The City Manager then stated the City's policy is tied only to percentage of limited ownership and not any specific time periods. He also suggested that a statement be included in the agreement indicating that if any payment is defaulted, even though the City may take the monies from the escrow account to make the payment, it would still be certified delinquent to the County; and the process for auction of the properties in limited ownership located within the first phase would begin. 06-16-86 247 Commissioner Jordan asked if City Attorney Crumbaker-Smith has reviewed the proposal. City Manager Wysocki indicated that he has talked to her about this proposal; but she has not had an opportunity to review the document. He noted that, because of the time con- straints involved, he felt the Commission should have an opportunity to discuss the proposal; but the City Attorney should review the final agreement prior to signing. Commissioner Vant Hull asked if the City would be restricted on sell ing of the land. I The City Manager indicated that there are statutory requirements on the City selling the land, noting that the sale must be completed through the sealed bid or auction process. He then stated the land is currently zoned agricultural, although the Master Plan designates the area as medium density residential. Commissioner Vant Hull asked about the City going through the necessary processes to zone the land for development prior to sale. City Manager Wysocki stated that he does not feel the City should become involved in land development, but should let the prospective developer go through that process. Commissioner Stiff expressed concern about the proposed release of the escrow, indicating he would feel more comfortable with holding the cash until last and releasing the land earl ier, Mayor Mathre stated concurrence with that concern. The City Manager indicated that he has discussed this matter with Mr. White. He further noted that he had indicated what he felt the Commission would be willing to accept; and the proposal submitted to the Commission for review is Mr, White's proposal, not necessarily a consensus between the City staff and the developer. Mr. White indicated that release of the property first could result in partial release and split of the land. He noted that splitting into parcels of less than twenty acres can trigger additional development reviews and could cause problems for the City as well as the developer, The City Manager also expressed concern about splitting the land placed in escrow, indicating he does not feel it will work properly. Commissioner Jordan noted the City has already annexed the subject property and approved I a Master Plan Amendment; and he feels the City could now request a rezoning to bring the zoning into compliance with those actions. Planning Director Steve Lere reminded the Commission that the Master Plan Amendment designated the subject property as multiple use; however, the zoning regulations for that district have not yet been adopted. Commissioner Stiff suggested that the City hold the property and .the cash until two-thirds of the escrow can be returned under the Resolution; and then return the property only, holding the cash unti I the next percentage break has been reached. B rea k - 3: 55 to 4: lOp. m . Mayor Mathre declared a break from 3: 55 p. m. to 4: lOp. m., in accordance with Commi ssion 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 ubdivlsion, Mr. Don White stated he feels the City's position would be more secure under the proposal which has been submitted. He noted that approximately one-half of the cash escrow would be returned after 41 percent of the property has been sold to individual owners; and the City would hold the remaining monies as well as the 25 acres of land until after 61 percent of the properties have been sold to individual owners. He noted under the City's policy, up to 40 percent of the land may be held in limited ownership without any security being required. I Commissioner Stiff expressed concern that the City is developing a precedent through this process; and the next developer will begin where this process ends. He further noted that cash is the best form of collateral; and he feels that releasing the cash first and holding the property could create problems in the future. Commissioner Martel noted the first two years should create no problems with making payments; but the third year is when the City needs protection. He stated that he feels retaining the land in escrow will provide more security for the City than the cash, which is a lesser amount. 06-16-86 248 City Manager Wysocki suggested that the agreement be changed to read that the first $65,000.00 be released after 41 percent of the square footage has been sold to independent property owners, deleting the possibility of releasing the monies after the November 30, 1987 payment has been made. He also indicated that the specific statement that the City will certify the assessments as delinquent if the escrow account is used to make a payment and begin the County sale process should be included in the agreement. Mr. White stated that his client will concur with those changes. I Following discussion, the Commissioners concurred that the revisions to the proposed agreement seem to meet the intent of the City's policy and should provide adequate security for the three subject special improvement districts. The City Manager recommended that the Commission approve the conceptual agreement as revised, and authorize and direct the appropriate persons to sign the agreement after it has been prepared in final form by the City Attorney and the developer's attorney. He noted that if any major changes are made or any problems incurred, this item will be brought back to the Commission for further consideration. It was moved by Commissioner Martel, seconded by Commissioner Vant Hull, that the Commission approve the conceptual agreement as revised, and authorize and direct the appropriate persons to sign the final agreement. 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. The City Manager then recommended that the Commission adopt Commission Resolution No. 2607, authorizing the sale of bonds for SID No. 649, subject to the provisions of the agreement as discussed. It was moved by Commissioner Vant Hull, seconded by Commissioner Jordan, that the Commission adopt Commission Resolution No. 2607, authorizing the sale of bonds for Special Improvement District No. 649, subject to the provisions of the agreement. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Vant Hull, Commissioner Jordan, Commissioner Stiff, Commissioner Martel and Mayor Mathre; those voting No, none. I authorizin sale of $458,000 in bonds for SID No. 650 - s and storm rain detention im rovements In a ortlOn of City Manager Wysocki presented Commission Resolution No. 2608, as reviewed by the City Attorney, entitled: 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 FILING. City Manager Wysocki noted that the discussion contained under the previous agenda item applies to this Resolution as well. He then recommended that the Commission adopt Commission Resolution No. 2608, authorizing the sale of bonds for SI D No. 650, subject to the provisions of the agreement as discussed. It was moved by Commissioner Jordan, seconded by Commissioner Stiff, that the Commission adopt Commission Resolution No. 2608. authorizing the sale of bonds for Special Improvement district No. 650, subject to the provisions of the agreement. The motion carried by the follow- I ing Aye and No vote: those voting Aye being Commissioner Jordan, Commissioner Stiff, Commissioner Martel, Commissioner Vant Hull and Mayor Mathre; those voting No, none. City Manager Wysocki presented Commission Resolution No. 2609, as reviewed by the City Attorney, entitled: 06-16-86 2lt 9 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 I TO SERVE PARTICULAR PROPERTIES WITHIN ANNIE SUBDIVISION, FIRST FILING. City Manager Wysocki noted that the discussion contained under Commission Resolution No. 2607 applies to this Resolution as well. He then recommended that the Commission adopt Commission Resolution No. 2609, authorizing the sale of bonds for extended SID No. 651, subject to the provisions of the agreement as discussed. It was moved by Commissioner Stiff, seconded by Commissioner Martel, that the Commission adopt Commission Resolution No. 2609, authorizing the sale of bonds for Extended Special Improvement District No. 651, subject to the provisions of the agreement. 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. Commission Resolution No. 2610 - intent to vacate portion of alley in Block C of Tracy's Second Addition (at the Martei Center) City Manager Wysocki presented Commission Resolution No. 2610, as reviewed by the City Attorney, entitled: COMMISSION RESOLUTION NO. 2610 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, DECLARING IT TO BE THE INTENTION OF SAID COMMISSION TO VACATE AND ABANDON A PORTION OF THE ALLEY IN BLOCK C OF THE TRACY'S SECOND ADDITION TO THE CITY OF BOZEMAN, MONT ANA. City Manager Wysocki reminded the Commission that they had acknowledged receipt of I the request to vacate the alley between Lots 1 and 3 on the south and Lots 18 through 20 on the north, in Block C of Tracy's Second Addition on January 27, 1986. He noted the subject alley is located at the Martel Center site. The City Manager then noted the City staff has reviewed the request and recommended that the subject alley be vacated. He recommended that the Commission adopt this Resolution, stating the City's intention to vacate said alley and setting the public hearing date for July 7, 1986. It was moved by Commissioner Vant Hull, seconded by Commissioner Jordan, that the Commission adopt Commission Resolution No. 2610, stating the City's intent to vacate a portion of the alley in Block C of Tracy's Second Addition. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Vant Hull, Commissioner Jordan, Commissioner Stiff and Mayor Mathre; those voting No, none. Commissioner Martel abstained. nated as an Iymplcs City Manager Wysocki presented Commission Resolution No. 2611, as reviewed by the City Attorney, entitled: COMMISSION RESOLUTION NO. 2611 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, EXPRESSING ITS SUPPORT OF ALL EFFORTS TO HAVE THE BOZEMAN AREA DESIGNATED AS AN OFFICIAL UNITED STATES SKI TEAM AND UNITED STATES BIATHLON TEAM TRAINING CENTER. I City Manager Wysocki noted that the Bridger Nordic Ski Club has requested this item and recommended that the Commission adopt the Resolution. It was moved by Commissioner Jordan, seconded by Commissioner Stiff, that the Commission adopt Commission Resolution No. 2611, endorsing efforts to have the Bozeman area designated as an official United States Ski Team and United States Biathlon Team training center for the 1988 Winter Olympics. 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. 06-16-86 250 City Manager Wysocki presented Commission Resolution No. 2612, as reviewed by the City Attorney, entitled: COMMISSION RESOLUTION NO. 2612 Purchase of Road Oil City Manager Wysocki noted that the Commission annually adopts a Resolution authorizing I the City to purchase road oil from the State Department of Highways as needed during the upcoming fiscal year. He then recommended that the Commission adopt Commission Resolution No. 2612, authorizing such purchase during Fiscal Year 1986-87. Commissioner Martel asked why the City needs to adopt this Resolution, particularly before the budget has been adopted. He also questioned whether the City should tie itself to one supplier, particularly when there are private firms who may be able to meet the City's needs at a lower cost. The City Manager noted that the City does not have a storage tank for the road oil, but utilizes the State's supply on an as needed basis. He also noted that the cost should be com- petitive since the State uses its purchasing powers in acquiring the road oil; and it is per- missible for the City to enter into an agreement to take advantage of those purchasing powers. Commissioner Martel suggested it may be beneficial to contact the private entities to determine if the City could acquire the road oil at a lower cost. The City Manager recommended that the Commission adopt this Resolution at this time; and if they wish to change the procedure that it be done during next year's process rather than this year's. It was moved by Commissioner Stiff, seconded by Commissioner Martel, that the Commission adopt Commission Resolution No. 2612, authorizing the City's purchase of road oil from the State Department of Highways during Fiscal year 1986-87. 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 City Manager Wysocki presented to the Commission a request submitted by Rocky Mountain Engineers, representing Bar Land Company, for a one-year extension to the Preliminary Plat for the Amended Subdivision Plat of all or portions of Blocks 110, 111 and 112 of the Northern Pacific Addition. The City Manager reminded the Commission that this Preliminary Plat was originally approved on July 22, 1985, subject to five conditions. He noted that the State Statute allows one one-year extension of a Preliminary Plat and recommended that this request be approved. It was moved by Commissioner Martel, seconded by Commissioner Vant Hull, that the Commission approve the request submitted by Rocky Mountain Engineers, on behalf of Bar Land Company, for a one-year extension of the Preliminary Plat for the Amended Subdivision Plat of all or portions of Blocks 110, 111 and 112 of the Northern Pacific Addition, subject to the five conditions originally placed on that approval. 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. redem tion of bonds for SI D Nos. 621 throu h 625 I City Manager Wysocki presented to the Commission a memo from City Attorney Crumbaker- Smith along with information prepared by Director of Finance Gamradt on the impact that various alternatives will have on the City as well as the taxpayers. He then noted this item was discussed quite extensively at last week's meeting; and some of the Commissioners have indicated they did not fully understand the procedure outlined for sale of lots in the auction process. He then distributed to the Commissioners a sheet indicating the various steps to be 06-16-86 251 followed along with the timeframe involved, noting that information does not enter into this decision-making process. The City Manager then reminded the Commissioners that the decision before them at this time is whether to redeem bonds on July 1 or to pay interest only on July 1, 1986 and January 1 and July 1, 1987. He then noted that the information submitted by the Director of Finance indicates the number of mills for each example cited; and he reminded the Commissioners that these payments are on a semi-annual basis, so the two numbers for each I fiscal year must be added together to obtain the total impact on the mi II levy. The City Manager then stated the four examples submitted are (1) paying $344,000 in bonds as of July 1, 1986 and maintaining the current bond issue; (2) paying interest only in July 1986 and maintaining the current bond issue; (3) paying $344,000 in bonds as of July 1, 1986 and refinancing at an estimated interest rate of 9! percent without extending the life of the bond issue; and (4) paying $344,000 in bonds as of July 1, 1986 and refinancing at an estimated rate of 9 percent, extending the bonds over a twenty-year period. He then indicated the first two options are the ones to be considered at this time, since the possibility of refinancing is questionable. Commissioner Vant Hull asked if refinancing of the bonds is a real possibility. Director of Finance Gamradt indicated that he has spoken with D.A.Davidson, bond counsel for the current bond issue. He noted that the firm has indicated that investors would look at the City's ability and willingness to pay; and given the history of that subdivision, the bonds would probably carry a high interest in today's market if they were sold at all. He stated that D .A. Davidson Indicated the City would probably have a better chance of selling the bonds if it showed a history of levying mills to pay a portion of the principal as well as the interest over a period of one or two years. Commissioner Martel questioned why the City has not taken steps earlier to try to correct the situation which the Commission now faces. The City Manager reminded the Commissioner that the City is still under a restraining order from District Court and has been unable to certify delinquencies to the County. He further noted that Valley Unit Corporation made its first $100,000 payment on back assessments I as well as the semi-annual payment due in November 1985; and the City had to wait unti I a delinquency occurred before taking any action. He indicated that the City should take steps to request that the District Court finalize the case, lifting the restraining order, so that the delinquencies can be certified and action can be taken to auction the lots if necessary to cover the costs of the assessments. Commissioner Martel stated he still feels that the best alternative is to pay the interest only on the next three due dates from the monies currently on hand, thus avoiding a mill levy against the taxpayers during this coming fiscal year. He also noted that the Valley Unit Corporation is currently faced with lawsuits; and those may be resolved within the next year, possibly leaving that entity in a better position to pay its assessments. The Commissioner noted that residents of the community have indicated they feel they should not be required to bail Valley Unit Corporation out of this problem; and he supports that statement. City Manager Wysocki stated that the bank with which Valley Unit Corporation most recently dealt has indicated it has no intentions of making any of the payments which that corporation currently owes. Commissioner Stiff noted that if the interest rates on the SID bonds were closer to the amount of interest the City is earning on its monies, he might agree with Commissioner Martel. He noted, however, that the bonds are at 10* percent, while the City is earning approximately 6t percent on its investments; and that differential is costing the taxpayers a substantial amount of money. The Commissioner then questioned who "them" is in this instance, noting that the Commissioners are responsible for protecting Bozeman, I Commissioner Jordan asked whether the City is looking at a short period, like three or four years, or through the end of the current bond issue in this decision-making process. The City Manager responded that the Commission should consider that the option selected would be utilized through the end of the current bond issue. Commissioner Jordan then stated that if a long-term situation must be considered, he would prefer the first option, in which a portion of the principal is paid. He indicated that he does not feel the bonds can be refinanced; and the principal should be paid over the remainder of the bonds, rather than carrying that entire amount to the end. 06-16-86 - ---------- ------ ------ 252 City Manager Wysocki indicated support for reducing the principal on the bonds, noting that one-quarter of the life has expired; and the principal has not been reduced proportionately. Director of Finance Gamradt stated the overall difference in cost between the first two options is approximately $400,000.00. The City Manager noted that as more of the lots are purchased by individuals and the Valley Unit Corporation ownership is diffused, the assessment payments should begin to pay the principal and interest, but that will take a long time. I Commissioner Martel once again stated he would prefer to pay interest only at this time, and within the next six months try to sell a new bond issue. Mr. Bob Nelson, resident and taxpayer of the community, stated that he had bailed Mr. Jahnke out of a financial problem on this subdivision once before, but was able to recapture his investment without being hurt. Mr. Nelson then expressed concern that the City not tarnish its reputation on these bonds because that would affect future bond issues. Mr. Nelson noted there has been some discussion on Mr. Jahnke's intentions and whether he might pay future assessments. He then stated the City has been defaulted on and should act accordingly. Mr. Nelson then indicated he holds a substantial amount of the current bond issues for the five subject SID's; and he does not feel the City would be able to refinance those bonds. The City Manager stated that the staff has waited to see if any of the possible actions would be taken, but one by one they have been bypassed. He noted that Mr. Jahnke did pay $370,000.00 last fall; and he felt the City should wait for him to miss the opportunities before taking action. Mr. Nelson stated he feels the City has acted wisely to this point. But now that the Valley Unit Corporation has defaulted on this semi-annual payment, the City has a financial and moral obligation to take whatever action is necessary. He stated that, as a taxpaying citizen, he would prefer to see the City levy the necessary mills to meet the principal and interest payments and maintain a good financial posture for future bond issues. Mr. Nelson then indi- cated that the property in Valley Unit Subdivisions I and II is conservatively worth $40 million; I but it is a long-term project. Mayor Mathre asked how many mills would be required to meet the costs of paying off a portion of the bonds at this time. Director of Finance Gamradt stated that 22.76 mills would be required. He then reminded the Commissioners that the City levied 5 mills for the SID Revolving Fund last year, so this would result in a 17-mill increase. Mayor Mathre noted that the Commission does not have a lot of choices, but she is concerned about the impact this wi II have on the taxpayers as well as on the General Fund. City Manager Wysocki reminded the Commission that the current cash balance from payments on the five subject SID's is $656,000.00, less $100,000.00 to repay the loan previously made from the General Fund, $40,000.00 to bring the SID Revolving Fund balance from a negative position to a zero balance, and $172,000.00 for the required interest payment in July 1986, leaving a balance of $344,000.00. He noted those figures are approximate only. It was moved by Commissioner Martel that the City pay interest only in July 1986 and January and July 1987. The motion died for the lack of a second, It was moved by Commissioner Vant Hull, seconded by Commissioner Jordan, that the Commission authorize and direct the staff to call bonds on Special Improvement District Nos. 621 through 625 as of July 1,1986, in the approximate amount of $344,000.00. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Vant Hull, Commissioner Jordan, Commissioner Stiff and Mayor Mathre; those voting No being Commissioner Martel. City Manager Wysocki stated that Commissioner Jordan had requested this item be removed I from the Consent Items, The City Manager stated that Gene Graf III is proposing a land exchange in which the City would trade 2.475 acres of existing parkland for 4.8156 acres located along the east side of Graf's Fourth Addition. He noted the subject area is currently fenced off and is used as a 06-16-86 253 portion of the Sourdough Trail. He stated that the land was under a five-year lease; but that lease has now expired and Mr. Graf is concerned about the liability incurred by having people use that property with no type of agreement in place. He noted that this requested exchange would provide assurance that the trail can continue to be used in the future. City Manager Wysocki then stated that an Attorney General's opinion indicates that this type of request must be submitted to the voters, which will be done in November. He then I recommended that the Commissioners acknowledge receipt of this request and refer it to staff for review and any necessary action. Commissioner Jordan stated he had requested this item be removed for discussion because of the number of letters the Commissioners have received on this issue. The City Manager noted that residents in the area have expressed concern about the proposed land exchange because they do not wish to see houses built close to theirs. He then indicated he had previously suggested to Mr. Graf that the proposed exchange would be for bottom land which would not be developable and, therefore, he questioned the requested credit for the difference in land area. It was moved by Commissioner Jordan, seconded by Commissioner Stiff, that the Commission acknowledge receipt of the request for parkland exchange in Graf's Fourth Addition as submitted by Eugene Graf III for the estate of Eugene Graf, Jr., and Genevieve S. Graf, and refer the matter to staff. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Jordan, Commissioner Stiff, Commissioner Martel and Mayor Mathre; those voting No, none, Commissioner Vant Hull was absent. City Manager Wysocki stated that Commissioner Martel had requested this item be removed from the Consent I terns. The City Manager noted this Change Order includes standby time and remobilization I costs incurred as a result of the restraining order on this project. Commissioner Martel noted that $10,000.00 for those costs seems excessive, but it is difficult to argue with the figures. It was moved by Commissioner Stiff, seconded by Commissioner Martel, that the Commission authorize the City Manager to sign Change Order No. 2 for Group II B of the Water System Improvements. 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. Authorize Ma~or to sign - Memorandum of Agreement for Continuing Transportation Planning in the Bozeman rban Area City Manager Wysocki stated that Commissioner Vant Hull had requested this item be removed from the Consent I terns. Commissioner Vant Hull stated she feels it might have been easier to determine the revisions made in this Memorandum of Agreement if the Commissioners had received copies of the minutes from the Policy Coordinating Committee meetings as well as the Technical Advisory Committee meetings. Mayor Mathre stated the minutes from the last PCC meeting have been distributed to the committee members and will be distributed to others after they have been approved at the next meeting. She then indicated that she agrees with Commissioner Vant Hull that all Commissioners should receive copies of the minutes from the pce as well as the T AC meetings. I It was moved by Commissioner Stiff, seconded by Commissioner Martel, that the Commission authorize the Mayor to sign the Memorandum of Agreement for Continuing Transportation Planning in the Bozeman Urban Area. 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. Consent Items City Manager Wysocki presented to the Commission the following "Consent Items. II 06-16-86 - _____n .___._ 2S1t between 25 from aln treet Claims Re uest - closure of Main Street for Roundup followin CNFR Parade - I ednesday, une 18, 1 It was moved by Commissioner Jordan, seconded by Commissioner Stiff, that the Commission approve the Consent Items as listed above and authorize and direct the appropriate persons to complete the necessary actions. 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. Recess - 5:58 p.m. Mayor Mathre declared a recess at 5:58 p.m., to reconvene at 7:00 p.m. for the purpose of conducting the scheduled public hearings. Reconvene - 7:00 p.m. Mayor Mathre reconvened the meeting at 7: 00 p. m, for the pu rpose of conducting the scheduled public hearings. This was the time and place set for the public hearing on the Conditional Use Permit requested by Paul H. and William Dueringer, Harry F. Stannebein and Sherman Veltkamp, to allow a 3,900-square-foot addition to the structure on Lot 5, Block 1, of the Rearrangement of I Block 1, Bridger Center Subdivision. This site is more commonly known as 101 Commercial Drive. Mayor Mathre opened the public trearing. City Manager Wysocki stated the Zoning Commission had continued its public hearing and recommended that the Commission continue this public hearing until the Zoning Commission has reviewed the application and submitted a recommendation. Mayor Mathre continued the public hearing until such time as a recommendation is sub- mitted by the Zoning Commission. Public hearin 1, ectlon 2, T2 ane and North 19th Avenue) This was the time and place set for the public hearing on the Zone Map Change requested by the Planning Staff to change the present zoning of AS, Agricultural Suburban, to R-3, Residential--Medium Density, on a portion of Government Lot 1, Section 2, Township 2 South, Range 5 East, Montana Principal Meridian. This parcel is located in the southwest corner of the intersection of Baxter Lane and North 19th Avenue. Mayor Mathre opened the public hearing. Assistant Planner Marcia Elkins presented the Staff Report. She stated the subject parcel includes approximately 32.69 acres. She noted that in April 1986, the property owner, Mr. Junior Tschache, requested a rezoning from AS to R-4. The Zoning Commission recommended I denial of that application; and the applicant withdrew that request prior to the public hearing before the City Commission. The Assistant Planner stated that the staff has initiated this new Zone Map Change request as directed by the Zoning Commission in its recommended denial of the R-4 zoning. Assistant Planner Elkins then reminded the Commission that this parcel is a part of the Tschache, Saccoccia and Perkins Annexation, which Is currently in the process. She briefly reviewed the twelve criteria for consideration of a zone change, then indicated that the Zoning 06-16-86 255 Commission recommended approval of the requested Zone Map Change, but that no action be taken until after the annexation process has been completed. No one was present to speak in opposition to the requested Zone Map Change. Mayor Mathre closed the public hearing, A decision will be forthcoming after the annexation process has been completed. I of This was the time and place set for the public hearing on the Zone Map Change requested by Glen Sorenson, Dennis Hardin and Joe Kunda to change the present zoning designations of R-3, Residential--Medium density, and R-O- T to R-O- T, Residential--Office with a Transitional Overlay, on Lots 1, 2, 3, 4 and 5 of Block 1, Kirk's Subdivision. This parcel is located in the 100 block on the west side of South 19th Avenue between West Babcock Street and West Olive Street. Mayor Mathre opened the public hearing. Assistant Planner Dave Skelton presented the Staff Report. He stated the advertisement for the Zone Map Change included one lot which is currently R-O- T, but that lot has been dropped, so only four lots are being considered in this Zone Map Change application. He noted that three of the four lots are currently developed with single-family units or Single-family with an apartment. The Assistant Planner stated that the staff reviewed this application, considering the twelve criteria for zone changes. He noted concern about the impact that office development would have, particularly considering traffic from current development backs onto South Nine- teenth Avenue, which is an arterial. He further noted that the area is substantially developed; and there are several vacant R-O- T lots available. Assistant Planner Skelton then stated because of the fact that the area is developed as residential and t,he concern about increased traffic backing onto South Nineteenth Avenue from I commercial ventures, the Zoning Commission recommended denial of the requested Zone Map Change. Mr. Dennis Hardin, applicant, stated that Mr. Kunda is also present; however, Mr. Sorenson is out of town. He indicated the reason for requesting this Zone Map Change is that for the past five months he has been seeking office space suitable for his financial and commer- cial real estate business which would have good access and would be in a good location. Mr. Hardin then stated he owns the residence at 113 South Nineteenth Avenue, noting that it has a basement apartment as well as the living unit on the main floor. He noted at the present time, none of the subject houses currently zoned R-3 is owner- occupied; and South Nineteenth Avenue is a busy arterial street with a 35 mile-per-hour speed limit, which is not conducive to the raising of families. Dennis Hardin stated that the former owner of the subject house had a Conditional Use Permit which allowed him to operate the Good Samaritan Ambulance Service from there, with his office being located in the basement. He then reviewed each of the twelve criteria for con- sideration of zone changes listed in the Staff Report. He noted one of the concerns listed is the impact that professional offices would have on South Nineteenth Avenue due to additional cars backing onto the arterial. He indicated that is a valid point but that he would provide parking in the back yard to alleviate that problem. Mr. Hardin noted that the Staff Report addresses whether the new zoning will prevent overcrowding of the land and indicates that as many as 20.25 dwelling units per acre could be constructed. He then stated the subject residences are approximately fifteen years old; and I the residual value is much too high to raze the houses and construct a high-density development. He further indicated that R-O is the most stringent zoning designation because it must interface with the surrounding neighborhood. Dennis Hardin then addressed whether the proposed zoning gives reasonable consid- eration to the character of the district. He noted the subject property is located one block south of Main Street and has vacant B-2 and vacant R-3 zoning across South Nineteenth Avenue. He noted the proposed R-O-T would provide a better interface with the surrounding neighborhood - than the B-2 district. Mr. Hardin then stated that, although there is vacant R-O property in 06-16-86 258 the community, he has found only one lot that might be for sale at some time in the future. He further noted that concern has been expressed that the requested zoning could result in strip development. He reminded the Commission that the area along South Nineteenth Avenue is basically developed; and he does not feel this change would result In any type of strip develop- ment. Mr. Hardin noted another concern addressed is whether the proposed zone would influence the value of any of the adjacent property, He indicated the value of the R-3 zoned property to the west could possibly be influenced; however, residential office developments must be well I maintained and kept attractive. He then noted he does not feel that type of development would have an adverse impact on the neighborhood. He further indicated that if this rezoning is approved, during conversion of his residence, he will pave the parking area in the back yard and will also pave the alley to his property as well, which will be an asset to the area. Dennis Hardin then noted the staff recommendation was for denial of the request due to increased traffic volume, inability to provide off-street parking, the fact that adequate R-O zoning exists and concern about strip development. He indicated that he feels he has addressed each of those concerns adequately. He further noted that the addition of a liT" to the zoning requires additional public review, which will assure quality deveropment of those properties in a manner that will be compatible with the area. Mr. Hardin stated the University is projecting 1,000 less students over the next five years; and the rental business is in a critical time period. He also noted that small business Is having a more difficult time; and it would be helpful if he could use an existing asset rather than raising his overhead costs with office space rental or purchase. Commissioner Vant Hull asked if the Planning Staff concurs that the R-O zoning would be more stringent. Assistant Planner Skelton indicated he would concur because of the added "T" designation, which provides for a regulatory review of all proposed development. Commissioner Vant Hull then asked if the staff has any figures on the projected traffic generation. Assistant Planner Skelton stated that under the R-3 zoning, 8 to 12 trips are projected; I and under the R-O zoning, 12 to 25 average daily trips are projected. Commissioner Jordan asked why one of the subject lots is zoned R-O-T while the remaining lots are zoned R-3. Planning Director Lere indicated that the lot zoned R-O- T fronts on West Babcock Street while the remaining lots front on South Nineteenth Avenue or West Olive Street. He noted that lot was rezoned along with two other lots fronting on West Babcock Street between South Nine- teenth Avenue and South Twentieth Avenue a few years ago due to the commercial development on the other side of the street. The Planning Director then reminded the Commission that rezoning from R-3 to B-2 on the parcel located across South Nineteenth Avenue was denied; and that decision is currently the issue of a lawsuit in the Federal Court. Planning Director Lere stated that the surrounding area has all been developed as residential. He then noted that there is some R-O zoned land along West College Street; but that has not been entirely developed because there is no demand for office space. Commissioner Jordan indicated concern about developing residential areas along arterials. suggesting that area be reviewed during the Master Plan review process. The Planning Director stated that residential uses are as compatible as any other type of development along arterials and interstates, if the proper screening is provided. Mr. Jim Townsend, owner of 112 and 114 South Twentieth Avenue and 1921 West Olive Street, submitted to the Commission the following written protests: a letter from Laurie Hill Robison, 108 South Twentieth Avenue, Unit C; a letter from the tri-plex condominium owners association at 108 South Twentieth Avenue; and a petition containing signatures of fifteen I persons owning property in that area. Mr. Townsend expressed concern that if this proposed zone change is approved, the property lying along South Twentieth Avenue will become a narrow strip of reSidentially zoned land lying between commercial zonings. He also suggested that a zone change should include a larger area than the four lots under consideration. Mr. Townsend noted that if the subject lots are rezoned to R-Q- T, they can be developed as one parcel, which would impact the neighborhood, particu larly by the traffic generated. He then stated that a substantial amount of traffic currently utilizes the alley since it is located , 06-16-86 ~- 257 across from the driveway for the Mini-Mart; and the alleyway is narrow with many encroachments. He then indicated opposition to any increase in the amount of traffic utilizing the alley. Mr. Larry Gaffney, 111 South Twentieth Avenue, stated he is opposed to the proposed rezoning for several reasons. He expressed concern that if this rezoning is approved, the R-O-T will extend along South Nineteenth Avenue to West College Street, leaving one narrow strip of residential property. He noted that when the R-O- T rezoning was approved along West I Babcock Street, it was to provide a buffer to the commercial development Iyi ng to the north. He indicated at that time the residents were told that the zone would not extend any further to the south, but the residential zoning would be retained. Mr. Gaffney stated that recent conversation with a realtor indicated that R-O- T zoned land is worth more than R-3 zoned land; however it may have the impact of lowering the value of adjacent residential land. He then indicated there is an ample supply of office space in Bozeman at this time, although it may not be what Mr. Hardin is seeking. Larry Gaffney then noted that those who are protesting the rezoning live in that area; but those seeking the rezoning do not reside in that area. He then noted that the Planning Staff and the Zoning Commission have recommended denial of the rezoning and encouraged the Commission to support those recommendations. Commissioner Martel noted that residential properties next to commercially zoned areas often increase in value, although that increase may not occur instantaneously. Mr. Hardin noted that the alley is currently used by Mr. Townsend's duplex as well as the tri-plex as access to their parking areas, which is the same as he is proposing for his site. He then indicated that several of the apartments in that area are vacant; and some of the condominiums are for sale. He reminded the Commissioners that with the "T" designation added to the zoning, any development must be submitted for review and must meet specific conditions if approved. Commissioner Stiff asked the Planning Staff if the City would have more control on development if a liT" designation were included. I Planning Director Steve Lere stated that under the "T" designation, the planners review the proposal to determine if it is compatible with surrounding development and attach conditions to make it compatible as needed. He then noted that if the Commission approves this requested zone change, the Planning Staff must first develop a set of items to be reviewed during con- sideration of conditional use requests, noting that those items differ for the different zones and the different areas. Commissioner Stiff asked if it would be possible to use one of the lots for parking require- ments and use the other three lots for development of a large complex. The Planning Director stated that would be possible, noting that the parking for a development must be located within the same zoning designation and must be within 400 feet of the facility being served. He then noted that the "T" designation would provide an opportunity to review such a proposal and requi re appropriate buffering, screening, landscaping and setbacks to protect other development in the area. Mayor Mathre closed the public hearing. It was moved by Commissioner Martel that the Commission waive the customary one-week waiting period. The motion failed for the lack of a second. Mayor Mathre indicated that a decision will be forthcoming in one week. Discussion - FYI Items City Manager Wysocki presented to the Commission the following "For Your Information" items. I (1) A copy of a letter to Mr. Ken Harmon from the Recreation Superintendent thanking him for spearheading the construction of horseshoe pits at the Senior Center. (2) A summary of the public hearing held Wednesday, Apri I 23, 1986, by the Department of Highways concerning the construction of North 19th Avenue and West Oak Street as well as the westward extension of Kagy Boulevard. The City Manager noted that tapes of the public hearing are available. (3) A letter of response from Max Baucus concerning the continuation of the Federal Revenue Sharing program. 06-16-86 258 (4) A letter from an elderly lady expressing concern about the taxpayers being assessed a mill levy to cover the costs of delinquent Valley Unit special improvement district assess- ments. (5) The City Manager indicated that next week's agenda will include a Letter of Intent to enter into participation in the MLCT Trust for liability insurance. He noted the City has been unable to obtain general liability insurance coverage for the upcoming fiscal year through the local insurance agent. I (6) The City Manager then noted that a discussion on the refinancing of water bonds was to be placed on the agenda; however, MBIA is showing hesitance to insure the extension of the water bond issue and the addition of new monies, citing three reasons. He noted the first reason is that the City did not follow the covenants on the previous issue; secondly, the City did not eliminate the giardia in the overall system; and finally, they are not confident that the City is serious about keeping the water rates at a level sufficient to provide the water service and meet all bond requirements. The City Manager indicated that he has spoken to the MB IA representative, indicating that the City moved as quickly as possible in seeking the rate increase, while making sure the requested rates were equitable; and the Public Service Commission deferred the public hearing on this request for several months in a row after it was initially scheduled. He then indicated that if the request for insurance is denied, he will request a written statement, citing the reasons for denial. City Manager Wysocki then indicated this item will be placed on the agenda for discussion and consideration once the problems have been resolved. Discussion - setting of goals for FY 1986-87 Mayor Mathre requested that, due to the late hour, this item be placed on next week's agenda. Adjournment - 9:17 p.m. I There being no further business to come before the Commission at this time, it was moved by Commissioner Vant Hull, seconded by Commissioner Martel, that the meeting be adjourned. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Vant Hull, Commissioner Martel, Commissioner Jordan, Commissioner Stiff and Mayor Mathre; those voting No, none. JUDITH A. MATHRE, Mayor ATTEST: Clerk of the Commission I 06-16-86