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HomeMy WebLinkAbout1986-07-28 32ft MINUTES OF THE MEETING OF THE CITY COMMISSION BOZEMAN, MONT ANA July 28, 1986 ************************ The Commission of the City of Bozeman met in regular session in the Commission Room, Municipal Building, July 28, 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 si lence. Mayor Mathre asked if any of the Commissioners wished any of the Consent Items removed for discussion. City Manager Wysocki requested that the claims be removed for discussion. Minutes - regular meeting of July 21, 1986 It was moved by Commissioner Jordan, seconded by Commissioner Stiff, that the minutes of the regular meeting of July 21, 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. Minutes - special meeting of July 22, 1986 It was moved by Commissioner Stiff, seconded by Commissioner Vant Hull, that the minutes of the special meeting of July 22, 1986, be approved as amended. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Stiff, Commissioner Vant Hull, Commissioner Jordan, Commissioner Stiff and Mayor Mathre; those voting No, none. Open bids - two garbage trucks This was the time and place set to open the bids for two garbage trucks. The affidavit of publication for the "Call for Bids" was presented. It was moved by Commissioner Martel, seconded by Commissioner Vant Hull, that the bids I for the garbage trucks be opened and read. 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 following bids were then opened and read aloud. Schedule I Schedule II Trade-In Net Bid Kamp Implement Co. Belgrade, Montana $71,364.10 $71,364.10 M & W GMC, Inc. Bozeman, Montana $70,166.00 $70,166.00 Bozeman Ford, I nc. Bozeman, Montana $69,350.00 $69,350.00 Demarois Olds-GMC Missoula, Montana $69,574.00 $69,574.00 Hall-Perry Machinery Co. Billings, Montana $52,112.50 $15,500.00 $36,612.50 Rocky Mountain Services Billings, Montana $41,220.00 $41,220.00 H-C-L Equipment, Inc. Billings, Montana $55,120.00 $11,240.00 $43,880.00 Industrial Refuse Sales I and Service, Inc. Auburn, Washington $54,677.00 $54,677.00 It was moved by Commissioner Vant Hull, seconded by Commissioner Jordan, that the bids for the garbage trucks be referred to staff for review and a recommendation to be submitted at next week's meeting. 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. 07-28-86 325 Decision - needs assessment for the CDBG program This was the time and place set for the decision on the needs assessment for the Community Development Block Grant program. City Manager Wysocki noted that a copy of the revised needs assessment was included in the Commissioners' packets. He then recommended that the Commission accept the document, as revised, as accurately reflecting needs of the community. I Mayor Mathre asked if this revision addresses the items discussed during last week's public hearing. Senior Planner Mike Money indicated that it does. He noted that more emphasis has been placed on the need for a daycare facility for low- and moderate-income families as well as the creation of new low- and moderate-income jobs. It was moved by Commissioner Jordan, seconded by Commissioner Stiff, that the Commission accept the revised needs assessment as accurately reflecting needs of the community. The mot ion carried by the following Aye and No vote: those voting Aye being Commissioner Jordan, Commis- sioner Stiff, Commissioner Martel, Commissioner Vant Hull and Mayor Mathre; those voting No, none. Decision - selection of local CDSG application for the 1986 application period - This was the time and place set for the decision on the review of the local Community Development Block Grant applications for the 1986 application period. City Manager Wysocki presented to the Commission a memo from Planning Director Steve Lere with an attached letter from Housing Development Associates, addressing some of the concerns and questions that arose during last week's public hearing on the neighborhood revitalization proposal. He also presented a letter from Gilmore and Associates addressing questions raised at last week's meeting about the economic development proposal. The Commissioners reviewed those two documents, addressing the letter from Gilmore and Associates concerning the Museum of the Rockies proposal first. Mr. Mick Hager, Director of I the Museum, stated that the letter addresses three points which were brought up last week. (1) He noted that this application will not compete with the MSU Endowment and Alumni Foundation, since they will not be submitting an application in September. (2) He then noted that submittal of this application does not require that all of the economic development grant monies for King Tool be spent or that 90 percent of the neighborhood revitalization program be spent. He indi- cated that review of this application will be based on satisfactory administrative performance rather than on a specific percentage of drawdown. (3) He then indicated that concern was ex- pressed that this application is for a loan rather than a grant. He noted that the successful Livingston Depot project is also a grant. Senior Planner Mike Money indicated that he has spoken with David Cole, Department of Commerce in Helena; and he stated that the City must pursue more diligently to stay on the activities schedule for King Tool and to strive to meet the schedule for expenditure of neighbor- hood revitalization and housing rehabilitation monies. He then concurred that the 90 percent drawdown is not a key point for the economic development monies, but it is for the neighborhood revitalization monies. Senior Planner Money then reviewed the letter submitted by Housing Development Associates. He noted that the letter lists items which would need to be addressed if the neighborhood re- vitalization grant is selected, but which need not be if the Museum proposal is selected. The Senior Planner then indicated that specific numbers are not available until the application is complete, since a certain amount of flexibility must be maintained while writing the grant proposal. He then reminded the Commissioners that the proposed day care center is only one I element of the neighborhood revitalization proposal, although that is the element around which all discussions have revolved. The Senior Planner then stated that his department has received glowing reports on adminis- tration of the program since the initial report, with the major suggestion for improvement being to increase the speed with which the monies are being expended. He then noted that the 90 percent drawdown provides a specific way to measure the program; however, determining satisfactory performance is much more subjective. Senior Planner Money then indicated that he is attempting 07-28-86 32G to make certain that the 90 percent drawdown level is reached prior to the September 12, 1986 deadline for applications. Commissioner Martel noted that both projects are extremely worthwhile and good for the community; however, he feels that the creation of low- and moderate-income jobs which wi II be available for many years to come is more beneficial. Mayor Mathre stated the main criteria to consider is the benefit to low- and moderate- income persons; and she feels the neighborhood revitalization will provide the greater benefit to I that sector. Commissioner Stiff stated he feels that, because of the uncertainty on whether the 90 percent drawdown will be met by September 12, the Museum application would have a better chance of being funded. He noted it is difficult to vote for that application, since the Museum does have the ability to raise monies through donations, but it is the best option. The Commissioner then stated that the University and the Museum sit on the access to the only large vacant manu- facturing plant; and hopefully, they will cooperate in providing an access to that site if a company is willing to start a business in that building, which will create a substantial number of new jobs in the community. Commissioner Jordan indicated he feels that selection of a project is not based on which is better, but rather which will benefit the community more. He noted that the Museum has indi- cated it will go forward with its project whether it receives this grant, so new jobs will be created. He also noted that the possibi lity of having a renewable resource must be considered; and the neighborhood revitalization project would provide that. He stated that without help, the facilities to benefit low- and moderate-income persons will not become a reality. The Commissioner then stated that reviewing the reasons for the CDBG program, which revolve around low- and moderate-income families, he supports the neighborhood revitalization proposal. Commissioner Vant Hull stated her major concern revolves around whether 90 percent of the monies under the current program will be expended by the application deadline. The Commis- sioner indicated her natural tendency is toward the project which is 100 percent for the benefit of low- and moderate-income persons but, because of the concerns about meeting the deadline, I she will support the Museum proposal. Commissioner Jordan suggested that the Commission may wish to support the selected pro- posal with a unanimous vote. It was moved by Commissioner Stiff, seconded by Commissioner Martel, that the Commission select the proposal submitted by the Museum of the Rockies for $250,000 in economic development monies as the application to be filed for Community Development Block Grant program in the September 12, 1986 go round. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Stiff, Commissioner Martel, Commissioner Vant Hull and Commissioner Jordan; those voting No being Mayor Mathre. Break - 3:00 to 3:12 p.m. Mayor Mathre declared a break from 3:00 p.m. to 3:12 p.m., in accordance with Commission policy established at their regular meeting of March 14, 1983. Request submitted by Gallatin Development Corporation to place proposal for one-mill levy for economic development purposes on the November 1986 ballot City Manager Wysocki presented to the Commission a request submitted by the Gallatin Development Corporation to place a proposal on the November 1986 ballot for a one-mill levy to help finance the costs of carrying out an economic development program. Ms. Laurie Schultz, President of the Gallatin Development Corporation Board, noted that the function was revitalized two years ago; and the Board currently consists of twelve very I active members. She noted they are currently active in Bozeman and hope to expand county-wide, including Belgrade, Manhattan, Three Forks and West Yellowstone. She noted that 80 percent of the new jobs created are through existing businesses; and it is important to continue that effort. Ms. Schultz stated the Corporation has developed an economic profile, recruited two firms to the Bozeman area, disseminated information on the area, and provided technical assistance to local businesses and business prospects. 07-28-86 .. 327 Laurie Schultz noted that the area is currently weathering economic setbacks, including agricultural problems, the closure of Allen-Bradley, closure of Burlington-Northern, decline in the enrollment at Montana State University, and the closure of Orionics. She noted the Corpora- tion hopes to develop a program to stabilize the economic base, by retaining existing jobs and creating new jobs. Ms. Schultz stated that a survey completed through the Montana Certified Cities Program I revealed that an overwhelming number of people indicated a willingness to pay higher taxes to support local economic development; and she feels the issue should be placed on the ballot in November for the voters to decide. Mr. Carl Lehrkind, also a Board member, indicated the State Statute provides that the electorate may approve a one-mill levy for economic development, with that levy being assessed each year for a five-year period. He noted the .Corporation has been operating through the Certified Cities Program and with support of the local businesses. He indicated that the five- year plan for the community's economic development is to be completed in September 1986, with implementation to begin immediately thereafter. Mr. Lehrkind stated that, because the survey was definitely supportive, he feels that the electorate should be given an opportunity to vote on the issue. He noted if the levy is approved, it will increase the taxes about $2.50 to $3.50 per household. Commissioner Vant Hull asked if the Board will work to get people to support the levy at the polls, noting that public education on an issue such as this is important to assure its success. Carl Lehrkind stated that they definitely intend to sell the program and the mill levy. Commissioner Vant Hull then reminded Mr. Lehrkind that during the recent legislative session, he testified that taxes should not be increased; and now this proposal is before the Commission. Carl Lehrkind reminded her that he was speaking as President of the Bozeman Area Chamber of Commerce before the legislature; and his capacity at this time is as a member of the Gallatin Development Corporation Board. He -further noted the Corporation has a small budget, currently supported by 25 businesses, with the two large banks carrying the majority of the I financial burden. He indicated that base must be broadened if the program is to be successful. Commissioner Jordan asked if the budget which has been submitted to the Commission is a set item or subject to change. He then expressed concern that a large portion of the monies is to be spent on promotional activities during the next five years; and there would be no monies available to implement a proposal if one were to be submitted. Mr. Lehrkind indicated that the budget submitted is tentative only and provides a general guideline of how the monies could be used so people have a better idea of what could be expected from the mill levy. Commissioner Jordan asked if the Gallatin Development Corporation will ask the County for a mill levy also, noting that many of the businessmen reside outside the city limits. Mr. Lehrkind stated they are not going before the County Commission at this time because they feel that a ballot question within Bozeman only has a better chance of succeeding, since this is where most of the results will be seen. Commissioner Stiff expressed concern about being the only governmental unit asked to place this matter on the ballot. He noted that Bozeman is traditionally asked to pay the largest share of most items which benefit the entire area, while Belgrade is currently rated as the fastest growing community in the state. Commissioner Jordan stated he likes the idea of a separate ballot issue for Bozeman because the Commission has better control over use of the monies; but he also feels that a joint effort is important. Ms. Doris Fischer, Executive Director of the Gallatin Development Corporation, noted that if the strategic planning efforts generate some projects, the results will go beyond the I boundaries of the City; but the core effort is located within Bozeman for Bozeman. She noted the Corporation is in the very early stages of reaching out into the County; and it will take longer to develop a working relationship with the smaller communities. Commissioner Stiff noted that King Tool sought economic development grant monies through the City; and upon being successful, relocated its expansion to the County. He also asked how many people on the Board live in the County, not paying City property taxes. The Commissioner indicated that he feels that economic development is needed, but he feels that the County should also be involved. 07-28-86 328 Doris Fischer stated that at the present time, with the efforts being targeted toward Bozeman, the mill levy should be assessed against Bozeman properties only. She noted when the effort has expanded, then ~ County levy should be attempted. Mayor Mathre asked if there are any restrictions on how the monies from the mill levy are to be used. Ms. Fischer stated there are some restrictions, but the monies can be used for rather broad economic development purposes. She also noted that the Corporation will submit a budget I for the one-mill levy to the City Commission each year for approval. Ms. Daria Joyner, Executive Director of the Chamber of Commerce, stated that there is no Chamber position on the mill levy for economic development at this time, even though they have taken an overall position on increasing property taxes. She stated that the people in Bozeman have indicated an interest in increasing the number of jobs and have indicated support for a mill levy, so she feels they should be given an opportunity to vote on the issue. Mr. Scott Heck noted he is a community businessman and a Bozeman resident, indicating that he is not a member of the Corporation. He then stated that he does not mind increasing his property taxes to increase the number of jobs and economic opportunity in Bozeman. Mr. Clem Lambrecht noted that many of the business people in the community have tried to keep the community growing through the hiring of additional people, but they can expand only so much. He indicated it is important to support the Gallatin Development Corporation now, so they can help in economic development, which will keep the community vital. City Manager Wysocki stated that, because of the information gleaned from the survey, he feels the voters should be allowed to determine if they wish to pay additional property taxes to support economic development. He noted that a primary consideration in economic development is attaining an offensive position rather than reacting defensively. He noted that hopefully results can be seen after five years; and if not, the City may wish to carefully review the issue. Commissioner Stiff once again noted that he feels the County should be asked to place this issue on the ballot rather than the City, noting that the $60,000 generated by a County mill would be much more helpful than the $23,500 generated by a City mill. I Commissioner Martel expressed support for placing this issue on the ballot, stating he feels it is a good first step in the right direction. It was moved by Commissioner Martel, seconded by Commissioner Vant Hull, that the Commis- sion authorize placing the issue of a one-mill levy for each of the next five years for economic development on the ballot for the November 1986 election. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Martel, Commissioner Vant Hull, Commissioner Jordan and Mayor Mathre; those voting No being Commissioner Stiff. Decision - sidewalk construction program for 1986 City Manager Wysocki submitted to the Commission a memo from Engineering Officer Neil Mann addressing some of the questions which were raised last week. He also noted that Commis- sioner Vant Hull has written a memo to the other Commissioners on this item. Mayor Mathre noted the Commission must determine whether it wishes to proceed with the sidewalk program as proposed by the staff, not to proceed at all with the program, or to revise the program in some manner that the Commission can support. Commissioner Jordan stated he feels a sidewalk program is needed, but he feels the program should be modified. Commissioner Vant Hull agreed that she could support a modified program. Commissioner Stiff noted that the Commission has already made some decisions and incurred engineering costs for the proposed program. The Commissioner then indicated that he would support a modified plan, citing the undeveloped and underdeveloped parcels in the subject area. I He suggested that the program could be implemented now; however, all undeveloped and under- developed parcels could be given a three-year period in which to have those sidewal ks installed. Commissioner Martel indicated he would also support a modified plan. He noted that the engineering costs are shared costs for the entire district as now proposed; however, those plans can be used during installation of the sidewalks in the future. Mayor Mathre indicated that she would like to not require owners of vacant property to construct sidewalks now. She suggested that when the lot is developed, the sidewalks be installed. 07-28-86 329 She noted that if sidewalks are installed along the vacant lots, the snow removal ordinance wi II be enforced; and that could create unnecessary hassles for the property owners. Commissioner Stiff noted there is a sizeable amount of .vacant land within the proposed district; and he feels that a time certain should be included in the sidewalk program. Commissioner Martel suggested that everyone within the proposed boundaries participate in the special assessment district to the extent of the engineering costs and that construction of I the sidewalk be required along one side of the street only in areas where a substantial amount of vacant land exists. Mayor Mathre indicated she would like to see all developed properties within the proposed boundaries install sidewalks this year, leaving only the undeveloped properties without sidewalks. ) Break - 4:27 to 4:45 p.m. Mayor Mathre declared a break from 4:27 p.m. to 4:45 p.m., in accordance with Commission policy established at their regular meeting of March 14, 1983. Decision (continued) - sidewalk construction program for 1986 Mayor Mathre stated that most of the property lying north of West Koch Street within the proposed boundary lines has been developed. She then suggested that the engineering costs incurred to date be assessed against all the properties within the originally proposed sidewalk assessment district; and that the district be divided to include the north side of West Koch Street, north to West Babcock Street and from South 15th Avenue to South 23rd Avenue, following the originally proposed boundary lines. She noted that revision should eliminate many of the problems and concerns which have been raised. City Manager Wysocki noted that Director of Finance Gamradt called D. A. Davidson to deter- mine what type of interest rate the City may get on bonds for this project. He noted that con- versation revealed that the City of Great Falls was unable to sell its last bond issue, with Initiative 27, which would limit property taxes, being cited as the reason. The City Manager I then stated that the State Statutes indicate that the City Commission must order in the sidewalks; therefore, a resolution so stating must be adopted before the staff can proceed with the program. Commissioner Stiff indicated he feels the entire proposed district should be addressed at this time, so that all sidewalks within the area are installed by a specified date. He noted that next year, another area of the community will be targeted for sidewalk installation and repair; and this area should be addressed before that. City Manager Wysocki stated the staff will prepare a proposed sidewalk assessment district which includes all properties previously involved for the purpose of assessing up-front engineer- ing costs already incurred, with a district for installation of sidewalks this summer running north from the north side of West Koch Street. He noted that all developed properties lying south of West Koch Street within the district will be given an opportunity to participate in the installation of sidewalks this year also; but all properties within the originally proposed district will be required to install sidewalks within three years. He indicated the revised proposal will be submitted to the Commission next week if the staff has adequate time to prepare it. Meadow Subdivision, Phase I - Larr Kunz - located southwest of the intersection 0 ooch fill This was the time and place set for review of the preliminary plat for Bluegrass Meadow Subdivision, Phase I, submitted by Larry Kunz. This proposed subdivision is located in the northwest one-quarter of Section 20, Township 2 South, Range 5 East, Montana Principal Meridian. I It is more commonly known as being located southwest of the intersection of Gooch Hill Road and Stucky Road. City Manager Wysocki noted the City has just received a letter from the applicant's consulting engineers requesting that action on this item be deferred until they have had an opportunity to resolve concerns expressed by the Soil Conservation Service and the Fish, Wildlife and Parks Department. He then recommended that the Commission acknowledge receipt of this request. It was moved by Commissioner Vant Hull, seconded by Commissioner Jordan, that the Commission acknowledge receipt of the request for deferral of action on this item, as submitted 07-28-86 33U by the applicant's consulting engineers. 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. Update on application for water development grant - Steve Custer City Manager Wysocki stated that Mr. Stephan Custer has requested an opportunity to address the Commission concerning an update on his application for grant monies through the I Water Development Program through DNRC. Mr. Stephan Custer submitted to the Commission updated information on the application he had submitted two years ago. He noted that he had prepared an application two years ago for a grant to explore for groundwater as a possible source of municipal water in the Hyalite Fan, located south of Bozeman. He stated the application was funded during the legislative session; however, when the anticipated revenues were not forthcoming, the lower rated ones were cut from funding, including his proposal. Mr. Custer indicated he has resubmitted that application; and the DNRC telephoned to see if the Commission endorsement which he had received two years ago is still valid. He noted that is the purpose of his appearing before the Commission at this time. Stephan Custer then submitted to the Commission some background information about his proposal. He noted that the use .of groundwater as a source of municipal water has generally not been strongly considered because of the costs in pumping that water from its source into the system. He stated that this grant would allow exploration through drilling of wells to determine if they might produce adequate water for municipal use, noting that would require a minimum of 500 gallons per minute. Mr. Custer indicated that he has heard rumors of wells producing 750 to 1,000 gallons per minute in that area; and he wishes to do some exploration to determine if that type of waterflow actually does exist. He indicated that he would drill the test wells to approximately 200 feet. He noted if this type of water resource could be tapped for municipal use at an acceptable cost, it could provide a rather stable water source for several years to come. Mr. Custer emphasized the fact that this proposal is for exploration only, with I no guaranteed results. Mr. Custer then indicated that his original grant application was for $114,000; and the legislature indicated it would fund $89,000. The State also encouraged him to seek additional funding from the City for the remainder of his work. Mr. Custer stated that the Commission had written a letter of support for the previous application, with no indication of financial backing and that seemed to help his application. He then requested that the Commission write a similar letter for this application, noting that if the State funds this application, he may be asked to come back with a request for partial funding. Commissioner Martel asked about drilling approximately 400 to 500 feet. Mr. Custer in- dicated that the costs involved would be tremendous, both for testing and actual drilling if water is found. He also stated that the determination he is trying to make is whether a shallow channel exists in the Hyalite Fan. He noted that the majority of the domestic wells in that area run about 60 feet deep. Commissioner Stiff asked Mr. Custer how many wells he will drill; and he indicated two or three. He then indicated an interest in possibly locating at least one of the wells on City property. It was moved by Commissioner Jordan, seconded by Commissioner Stiff, that the Commission authorize and direct the Mayor to send a letter of support for Mr. Custer's application. 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. I Ordinance No. 1214 - Zone Code Amendment - add Section 18.04.235 and revise Section 18.52.140 of the Bozeman Municipal Code to provide a definition of arba e transfer stations and to allow as a conditiona use in t e M-2 district City Manager Wysocki presented Ordinance No. 1214, as prepared by the City Attorney, entitled: 07-28-86 331 ORDINANCE NO. 1214 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, AMENDING TITLE 18 OF THE BOZEMAN MUNICIPAL CODE BY ADDING SECTION 18.04.235 AND REVISING SECTION 18.52.140. The City Manager reminded the Commission that they had provisionally adopted this Ordinance on July 14, 1986, and recommended that they finally adopt it at this time. I It was moved by Commissioner Stiff, seconded by Commissioner Martel, that the Commis- sion finally adopt Ordinance No. 1214, providing for a definition of garbage transfer stations and allowing them as a conditional use in the M-2 district. 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. Ordinance No. 1215 - Salary Ordinance for FY 1986-87 City Manager Wysocki presented Ordinance No. 1215, as reviewed by the City Attorney, entitled: ORDINANCE NO. 1215 AN ORDINANCE OF THE CITY OF BOZEMAN, MONTANA, FIXING THE MONTHLY SALARY AND OFFICIAL BOND OF THE HEADS OF DEPARTMENTS, CITY JUDGE AND THE EMPLOYEES OF THE CITY COMMISSION OF THE CITY OF BOZEMAN AS REQUIRED BY LAW. The City Manager noted that the salaries and bonds listed in this Ordinance are the same as last year's. He then recommended that the Commission provisionally adopt the Ordinance at this time and that it be brought back in two weeks for final adoption. It was moved by Commissioner Vant Hull, seconded by Commissioner Jordan, that the Commis- sion provisionally adopt Ordinance No. 1215, Salary Ordinance for FY 1986-87, 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 Vant Hull, Commissioner Jordan, Commissioner Stiff, Commissioner Martel and Mayor Mathre; those voting No, none. I Claims City Manager Wysocki stated that he had requested this item be removed from the Consent Items. He noted that a $225.00 payment to the Gallatin County Auditor for the City-County Health Department has been included on this listing, as it has been for several years. He then reminded the Commission that the City and County are currently in the process of developing a new Interlocal Agreement with a different funding option; therefore, this claim should not be paid. The City Manager then recommended that the Commission approve payment of all claims contained on the listing except for the subject $225.00 payment. It was moved by Commissioner Jordan, seconded by Commissioner Stiff, that the Commission authorize and direct the Director of Finance to pay all claims as listed except the $225.00 pay- ment to the Gallatin County Auditor for the City-County Health Department. 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. Discussion - FYI items City Manager Wysocki presented to the Commission the following "For Your Information" items. (1) He noted that four items will be listed on next week's agenda pertaining to the City's participation in the liability insurance pool through the Montana League of Cities and Towns. He briefly reviewed the nature of those documents, noting it is imperative that action I be taken at next week's meeting due to time constraints, since the sale of revenue bonds for the program are to be sold in the near future. (2) The City Manager reminded the Commissioners to submit items for legislative con- sideration prior to the Legislative Committee meeting for the League. He noted the date for that meeting has been changed to August 15; and he requested that all items be submitted in writing not later than August 14. (3) The City Manager stated that during the first break, he received a telephone call from UDAG indicating they need a commitment on whether the City is going ahead with the con- 07-28-86 332 vention center/hotel project, since other projects in the region could utilize those funds if they were released immediately. He noted that several months ago, the Commission determined that the project should be considered dead; but he has been hesitant to release the UDAG monies. The City Manager then read to the Commission a draft of the letter he has prepared and recommended that the Commission authorize him to transmit the letter. It was moved by Commissioner Jordan, seconded by Commissioner Stiff, that the Commission authorize and direct the City Manager to write a letter to UDAG relinquishing the $500,000 in I UDAG monies which had been awarded to the City for the Felska/Solvie convention center/hotel project. 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 being Commis- sioner Vant Hull. Consent Items A It was moved by Commissioner Stiff, seconded by Commissioner Martel, 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 Stiff, Commissioner Martel, Commissioner Vant Hull, Commissioner Jordan and Mayor Mathre; those voting No, none. Recess - 5:38 p.m. Mayor Mathre recessed the Commission meeting at 5:38 p.m., to reconvene at 7:00 p.m., for the purpose of conducting the work session on the budget. Reconvene - 7:00 p.m. I Mayor Mathre reconvened the Commission meeting at 7:00 p.m., for the purpose of conduct- ing the work session on the budget for Fiscal Year 1986-87. Work session - FY 1986-87 budget City Manager Wysocki reminded the Commissioners that they had reviewed his recommenda- tions to the budget unit for the Band. The Commissioners then continued their review of the proposed budget, as follows. A-23 Band. The City Manager noted the monies under "Contracted Services" cover the costs of six concerts; and the musicians' union pays for the other three concerts. Commissioner Vant Hull noted this is a small amount of money, but she feels that since cuts are being made in other budget units, the Commission should possibly consider cutting this one also. She noted that people complain about the poor manner in which the parks and the cemetery are maintained when cuts are incurred. She suggested that to cut this funding and then charge for the concerts could allow the City to maintain one more seasonal park employee while indicating to the citizens that the City does have a tight budget. Commissioner Jordan asked how much money is tied up in uniforms for the band members, noting that if the City has a substantial investment in those, it should take that into con- sideration while reviewing this budget unit. The Commission discussed the possibility of bidding concessions for both the band con- certs and the softball games. The City Manager indicated he would check on that possibility. I Following discussion, the Commissioners concurred that this budget unit should remain as submitted by the City Manager. A-24 Senior Citizen Center. The City Manager noted that the amounts listed under this budget unit apply to the struc- ture itself. Commissioner Vant Hull noted that the RSVP offices indicated a desire to move from the second floor of the facility because it is too hot; and someone at the Senior Center indicated 07-28-86 -------------- -- ---~~--~------~---------- - ------------- - - --- ----~------~-~---~--- --~---- 333 they would install air conditioning and a glass wall on the mezzanine if they stayed. She ex- pressed concern about the additional energy costs which would be involved and asked about the possibility of installing two windows on opposite walls to create adequate air circulation instead of the air conditioning system. The City Manager indicated he will check on that item. Director of Finance Gamradt noted the amount listed under "Contracted Services" covers the costs of an elevator maintenance agreement and carpet cleaning. I A-25 Parks and Playgrounds. The City Manager indicated that the salaries line item has decreased because of the cut- back in seasonal help. He then noted the major change in this budget unit is in the "Water and Sewer Services," due to the PSC ruling. He noted that $17,000 is to be paid to the Water Fund for irrigation of the City's parkland under the new water rates. Commissioner Vant Hull asked about the possibility of metering all of the City parks; and the City Manager indicated that the staff will attempt to meter the parks one by one over a period of time. He noted when the meters have been installed, the actual charges can then be paid instead of the charge which has been established by the PSC. Mayor Mathre asked what is included under "Rents and Leases" and "Contracted Services." The City Manager indicated that a replacement mower is budgeted under "Rents and Leases." He noted this would be under a three-year lease/purchase, with half the monies funded from this budget unit and half funded from the Cemetery budget unit. He then indicated that $5,000 is budgeted under "Contracted Services" for dead tree removal. Commissioner Vant Hull noted that the City purchased a "cherry picker" about three years ago to use in tree trimming as well as traffic signal maintenance. She then asked if that equip- ment could be sold or somehow leased to a private company so some of those monies could be recouped. Commissioner Stiff asked if the cherry picker is used in putting up Christmas lights; and the City Manager indicated he is not sure. The City Manager stated that the amount budgeted under "Other" includes taxes for the I Milwaukee Railroad right-of-way which is leased as a portion of Lindley Park. Commissioner Jordan asked if the City has done a risk management plan for the parks and playgrounds. The City Manager stated the biggest problems in the liability program are parks and equipment, noting that more than half the claims made pertain to that area on a state- wide basis. He then indicated the matter has not been addressed locally. Commissioner Martel questioned the increase in "Operating Supplies;" and Director of Finance Gamradt indicated that includes fertilizer and seed for the median along Kagy Boulevard. A-26 Cemetery. The City Manager indicated that the PSC ruling has affected the amount budgeted under "Water and Sewer Services" in this budget unit also. He noted that under the PSC ruling, the irrigation costs for the cemetery are based on the acreage involved at the rate of $583.55 per acre. He stated that metering will require redoing the entire irrigation system, which will cost between $50,000 and $100,000. The Director of Finance noted that the monies paid to the Water Fund from the General Fund are not lost to the City but are transfers between funds. He a I so noted that the large charges for the fire hydrants and irrigation may help the Water Fund to recover more rapidly so it can begin repayment of the loans from the General Fund. The City Manager then indicated that the $1,000 listed under "Machinery and Equipment" is to continue the fencing around the cemetery. A-27 Library. The City Manager indicated that $19,000 is budgeted under "Other" for the purchase of new library books, which is the same as last year. I Commissioner Martel asked why the Contracted Services has been increased by $3,200. The City Manager stated that the on-line charges for the Washington Library Network are included because the grant for those services has expired. Commissioner Stiff indicated he feels that the proportion of County funding should some- how be increased. Mayor Mathre asked what is covered under the "Machinery and Equipment" line item. The City Manager reviewed a list of several items, indicating that not all of those can be purchased for the $2,000 budgeted. 07-28-86 33 It A-28 Emergency Preparedness. The City Manager stated that this budget unit covers the costs associated with the three civil defense sirens located within the City. He indicated that the costs should decrease some- what because Assistant City Manager Barrick reviewed the telephone bills and found one line being charged which had been disconnected. A-29 Public Health. The City Manager noted this budget unit has been zeroed out because the new Interlocal I Agreement changes the method of funding. A-30 City-County Planning-- Transfer. The City Manager noted that the City may levy up to two mills to support the City-County Planning Department; and any additional monies appropriated to that function must be through a transfer from the General Fund. He then indicated that the amount to be transferred this year is the same as last year. Commissioner Vant Hull noted that in the past, the Commission received a list of work items to be prioritized during the budgeting cycle, but it has not been done the past two years. She then indicated she feels the Commission should be given that opportunity again. A-31 Annual Audit. The City Manager indicated the amount under this budget unit is for the General Fund's portion of the audit costs. He stated the other costs are charged to the various Enterprise Funds, where those costs are incurred. He indicated the entire cost of this year's audit should be around $42,500. A-32 Snow Removal Enforcement. Commissioner Martel asked if the increase in expenditures is to be offset by revenues. The Director of Finance noted that anticipated revenues are $5,000, whi Ie anticipated expendi- tures are $10,263. He stated that this past year, the City billed $8,000, of which $6,500 was collected. The City Manager noted that the amount listed under salaries covers a one-third time salary. I Mayor Mathre noted the Commission had indicated a desire to review this ordinance prior to the upcoming winter. The City Manager suggested that the Commission review the ordinance after the budget has been adopted. Mayor Mathre requested that the item be placed on the August 25 agenda for discussion. B- 5 City-County Planning. Mayor Mathre noted the amount under "Contracted Services" is up. The City Manager indicated that includes monies for interns, who are currently working on a windshield inventory of land uses. Commissioner Stiff asked how much the County contributes to this function. The City Manager indicated the County will levy two mills for this fiscal year. He further noted that a majority of the services performed by this department is for the City, not the County. C- 1 Supplies. The Director of Finance noted that in the past, all purchases were accounted for through this budget unit. He indicated that procedure has been changed so that only those items which are inventoried are included; and all special purchases are billed directly against the depart- ment receiving the items. He then indicated that all costs in this budget unit are duplicated in other budget units, since it is an intergovernmental fund. C- 2 Vehicle Maintenance. The Di rector of Finance indicated this is also an intergovernmental fund, providing ser- vices to other departments within the organization. He noted that the services are billed to the departments as vehicles are serviced. He then stated that this past year, the fund basically I broke even, with a $2,200 negative balance. D- 1 Water Operations. Commissioner Stiff asked if the staff is planning to submit a proposed increase in water rates for Commission action as soon as one year has expired at the current PSC rates. The City Manager indicated that the staff will review the revenues generated prior to May 1987 and submit a recommendation for increased water rates based on that review. He then indicated that the DNRC will submit an update on the Hyalite Reservoir expansion within the next two months. 07-28-86 - ~ 335 Commissioner Vant Hull noted there are still some unmetered accounts and suggested that those should be converted to meters. The City Manager noted that the previous PSC Order en- couraged that meters be installed; however, the Commission has never ordered that meters be installed. Mayor Mathre asked about the increase in the "Gas and Electric Services." The City Manager noted that a portion of the costs for the Shop Complex is being budgeted against the I various enterprise funds as well as the General Fund this year. The City Manager then indicated the amount budgeted for "Contracted Services" is sub- stantially lower this year, noting that the CH2M-Hill report was in last year's budget. He then indicated that $10,000 has been budgeted under "Other" for purchase of any water rights that may become available during the fiscal year. Director of Finance Gamradt stated the "Interest Expense" is mainly for the loan from the General Fund to the Water Fund. He then indicated that $63,000 of the monies under "Other" is for overhead costs, with those monies being payable to the General Fund. Commissioner Vant Hull noted the amount budgeted under salaries is $17,000 lower than last year. The City Manager indicated he will review that line item. D- 2 Water Treatment Plant. The City Manager noted that one retirement has been included under the salaries line item. Commissioner Martel asked about the $1,200 increase in the "Insurance and Bonding" line item. The City Manager indicated that the amount budgeted covers the costs of general liability and insurance on the vehicles. Commissioner Martel then noted that the water coming through the plant is much cleaner than is required under the Safe Drinking Water Act, noting that less chemicals could be used, and possibly the length of the cycles could be adjusted, and the water would still be well with- in the State requirements. He suggested that may be a way to lower the cost of chemicals, which is a major expenditure for that facility. I Commissioner Jordan noted the staff has learned what is needed and has the plant operating efficiently on an on-going basis. He also noted that State requirements are often updated; and he feels the current method should be retained to assure that the City's water continues to meet those standards. Commissioner Stiff asked what is included under "Machinery and Equipment." The City Manager indicated it includes two two-way radios and a push blade for the tractor to clean the basins. E- 1 Sewer Operations. City Manager Wysocki stated that the amount under "Repair and Maintenance" has increased substantially because the ground around the lift station in the Burrup Annexation has shifted; and if it shifts any further during this next year, it must be stabilized to avoid putting any additional pressure on the sewer mains. The City Manager then noted that an administrative overhead charge is included in this enterprise fund also. Commissioner Martel then asked why the "I nterest Expense" has increased. Di rector of Finance Gamradt stated that the contract for the Pollard Building has usually been budgeted under "Contracted Services;" however, the majority of the costs are actually interest rather than payments on the principal. E- 2 Sewage Disposal Plant. Mayor Mathre questioned the $10,000 increase in salaries. The City Manager indicated that the staff often works overtime; and the initial request was for an additional $25,000, based I on last year's actual costs. He noted they plan to work within the amount budgeted to accomplish all of the necessary duties. Commissioner Stiff asked if sludge will become a revenue source in the future. The City Manager indicated that until the City has more people interested in using sludge as a fertilizer than can be supplied, it will be difficult to charge. He also noted that public relations work is being done right now so that when costs accompany the use of sludge, some of the farmers will still be interested in its use. The City Manager stated that the truck has a 6,000-gallon tank, 07-28-86 336 so the staff is trying to find interested parties close to the plant because of the costs and time involved in transporting the sludge. Mayor Mathre asked about the increase in "Repair and Maintenance." The City Manager indicated that some valves need to be replaced in two of the I P beds, after which the other problems will be assessed. Commissioner Vant Hull questioned the increase under "Insurance and Bonding." The Director of Finance indicated that last year, all insurance costs were budgeted under a special mill levy. He noted that a portion of those costs was later charged against each enterprise I fund; and this year it has been incorporated into the budgeting process. F- 1 Garbage Collection. Mayor Mathre asked about the increase in the salaries line item. The Director of Finance stated that in the past, when another employee crossed over into that department to cover some- one on vacation or sick leave, his time was still charged against his budget unit, which is generally in the General Fund. He noted this increase provides a more accurate accounting of the employee's time as well as a more accurate reflection of actual costs incurred by this enterprise fund. Director of Finance Gamradt indicated that "Contracted Servicesll includes monies for the audit. He then noted that the amount under IIRents and Leases" has been decreased while the "Interest Expense" has increased because of the change in accounting for the monies paid for the Pollard Bui Iding. Commissioner Martel asked why the amount under "Other" has decreased. The Director of Finance indicated that the City had charged its own trucks for the landfill in response to complaints submitted by the private garbage hauling firm. He noted that it is possible to charge for services between funds within the City; however it is not proper to charge within a fund. As a result, the charge for City trucks has been eliminated. F- 2 Garbage Disposal. The Director of Finance indicated that a larger portion of the Superintendent's and Assistant Superintendent's salaries is being charged against this budget unit, to more I accurately reflect the amount of time spent under this budget unit. Commissioner Martel asked about the decrease shown under "Repair and Maintenance - Equipment. " The City Manager stated that the City did not have a maintenance contract on one of the cats at the landfill; and it had major repairs this past fiscal year. Commissioner Martel then asked about the decrease in "Contracted Services." The City Manager indicated that Stiller and Associates did some testing of the landfill site during the past fiscal year. He noted that testing has shown a small amount of leaching; and the landfill is projected to last until 1996. The Director of Finance noted that the costs for the Pollard Building have been adjusted in this budget unit, as they have in the other budget units. The Commissioners thanked City Manager Wysocki and Director of Finance Gamradt for their review of the budget and their answering of the questions which have been asked. The Tentative Appropriation Ordinance will be placed on next week's agenda for adoption and setting of the public hearing date. Adjournment - 10:15 p.m. There being no further business to come before the Commission at this time, it was moved by Commissioner Vant Hull, seconded by Commissioner Jordan, that the meeting be adjourned. 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 JUDITH A. MATHRE, Mayor ATTEST: Clerk of the Commission 07-28-86