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HomeMy WebLinkAbout1986-09-02 379 MINUTES OF THE MEETING OF THE CITY COMMISSION BOZEMAN, MONT ANA September 2, 1986 ************************ The Commission of the City of Bozeman met in regular session in the Commission Room, Municipal Building, September 2, 1986, at 2: 00 p.m. Present were Mayor Mathre, Commissioner I Stiff, Commissioner Martel, Commissioner Vant Hull, City Manager Wysocki, City Attorney Crumbaker-Smith and Clerk of the Commission Sullivan. Commissioner Jordan was absent in accordance with Section 7-3-4322(2), M.C.A. The meeting was opened with the Pledge of Allegiance and a moment of silence. Mi nutes It was moved by Commissioner Stiff. seconded by Commissioner Martel, that the minutes of the regular meeting of August 25, 1986, be approved as amended. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Stiff, Commissioner Martel, Commissioner Vant Hull and Mayor Mathre; those voting No, none. Introduction of international guest City Manager Wysocki introduced to the Commission Mr. Carlos Schmid, a member of the Senate in Switzerland. The Commission extended a welcome to Mr. Schmid, thanking him for his interest in our community and his attendance at this meeting. Staff report - update on the status of the bond sale for SID Nos. 649, 650 and 651 City Manager Wysocki submitted to the Commission a letter from Dorsey and Whitney dated August 28, 1986, providing an opinion on the sale of bonds for Special Improvement District Nos. 649, 650 and 651. He noted that the letter indicates that a conflict exists between the City's escrow account policy and the revisions to the I RS code contained in the federal tax I reform bi II. The City Attorney stated that under the new legislation, only 10 percent of the principal and 10 percent of the total interest on the stated maturity of the bonds may be held in an escrow account. She indicated that in this instance, that amount is between $161,000 and $171,000. She then reminded the Commission that the applicant has placed $127,000 in cash plus a deed for 25 acres into an escrow account, for an approximate total of $370,000. The City Attorney reminded the Commission of its current policy, which requires three years of assessments in escrow for any project in which 80 percent or more of the property is held in limited ownership. while under the new tax code only slightly over one year1s assessments could be required. She indicated that under the new legislation, she does not feel it would be of much benefit to the City to continue to hold the property in escrow, since it would need to go through what might be a complicated procedure to get the approximately $40,000 that would be allowed. She then suggested the Commission may wish to require the developer to add monies to the escrow account to meet the maximum allowed under the tax code. Mayor Mathre asked if the legislation affecting this item is final or if it is still in committee. The City Attorney indicated the conference bill has not yet been adopted. She then stated that there was existing legislation limiting the cash escrow account to 25 percent of the total principal and interest of the bonds, of which bond counsel and she were unaware, which may have required a slight reduction in the amount held in escrow; but the new legislation has a major effect on the issue. I Commissioner Stiff asked if a guarantee other than cash would be acceptable under the new legislation. The City Attorney stated there is a prohibition against using money or any other guarantee from the private person above the specified amount to guarantee payment of the bonds. Mayor Mathre noted the staff had considered and rejected the possible alternative of using Industrial Development Revenue bonds and asked why. City Manager Wysocki submitted a copy of Commission Resolution No. 2542, stating the City's guidelines for issuance of I DR bonds, to the Commission. He then noted that use of lOR bonds to finance Special Improvement Districts does not fit into those established guidelin~s. 09-02-86 3tlO Commissioner Martel noted the type of bonds cannot be changed at this time. ." . The City Manager stated concurrence. He then noted the following two items on the agenda involve award of construction bids for these three Special Improvement Districts; and action must be taken on them at this meeting since they expire on Thursday. He stated that if the bond sale is not completed, those construction bids cannot be awarded. City Attorney Crumbaker-Smith stated that bonds could be issued under the Industrial Development Revenue bond name for tax purposes, although the State Statutes concerning Special I Improvement Districts would still apply. City Manager Wysocki recommended that the Commission not proceed with the sale of the bonds, which wi II result in rejecting the construction bids in the following two agenda items. Commissioner Stiff asked if the percentage of ownerships has changed. The City Manager stated that Mr. White, attorney for Mr. Smith, has indicated that they have dispersed about 21 percent of the ownership, which requires a two-year escrow account payment that would not comply with I RS rules and regulations. City Attorney Crumbaker-Smith stated that the bond amount has been lowered from the original $953,000 to $860,000 because of the low construction bid on the water and sewer portion of the project. Mr. Don White, attorney representing Roger and Rosalind' Smith, stated they have complied with Commission policy to date. He then noted that approximately 19 to 21 percent of the land is currently held in individual ownership, which does decrease the amount of escrow required. He indicated that no additional land sales have been anticipated or solicited during the past two months. He stated the City Attorney has indicated that the bond buyer is still interested in purchasing these bonds. He also noted that the interest rate was favorable on the bonds, and the construction bids were lower than anticipated, resulting in a savings of $100,000. He indicated that the water and sewer lines could still be installed this fall, with paving being completed in the spring if the Commission acts in a pOSitive manner today. Mr. White then encouraged the Commission to make the necessary adjustments in the escrow account requirements to comply with the I RS regulations and proceed with the bond sale and award of construction I bids. Commissioner Vant Hull stated support for the City Manager's recommendation. Commissioner Martel stated he feels that the minor adjustment should be made in the escrow account and the necessary steps taken to proceed with these SID's. He noted that with the countless hours spent in public hearings for the subdivision thus far, it would be a dis- service to deny further action at this point. Commissioner Stiff asked if the properties currently held by the limited partnership could be split out to the individuals involved. Mr. White indicated that might be a possibility, but he is not sure it would get the percentage below 60 percent. Mayor Mathre noted the question before the Commission at this time is whether it wishes to make an adjustment in the escrow account. Commissioner Stiff indicated he is against changing policy on the spur of the moment. It was moved by Commissioner Martel that the Commission make the necessary adjustment in the escrow account requirements and approve the bond sale. The motion died for lack of a second. City Manager Wysocki recommended that, based on current policy, the Commission not conclude the bond sale because the City cannot obtain a bond opinion that would maintain this issue as non-taxable bonds. City Attorney Crumbaker-Smith stated that the filing of Notices of Purchaser's Interest does not indicate a transfer of ownership of the land. She further noted that if 19 percent of the land has been sold to individuals, an additional 21 percent must be sold to bring the amount I in the escrow account into compliance with current City policy as well as meet the IRS regulations. It was moved by Commissioner Vant Hull, seconded by Commissioner Stiff, that the Commission halt the bond sale, based on the City Manager's recommendation, unless the developer can show by Thursday that more than 40 percent of the properties are held in individual ownership, in which case a special Commission meeting will be called to reconsider this action. The motion failed by the following Aye and No vote: those voting Aye being Commissioner Vant Hull and 09-02-86 381 Commissioner Stiff; those voting No being Commissioner Martel and Mayor Mathre. Break - 3:15 to 3:28 p.m. Mayor Mathre declared a break from 3:15 p.m. to 3:28 p.m., in accordance with Commission policy established at their regular meeting of March 14, 1983. I Nos. 649, 650 and 651 drainage in a portion utter, sidewalks and storm 0 urston It was moved by Commissioner Stiff, seconded by Commissioner Martel, that action on these items be tabled until 10:00 a.m. on Thursday morning, when this meeting is reconvened. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Stiff, Commissioner Martel, Commissioner Vant Hull and Mayor Mathre; those voting No, none. Presentation from Green Thumb re proposal for City to be sponsoring agent for spotted knapweed control program City Manager Wysocki stated that Commissioner Vant Hull had requested this item be placed on the agenda. Ms. Toni Austad, State Director of the Green Thumb program from Great Falls, stated the program is a federally-funded employment program for people over 55 years of age with low incomes. She indicated that they are paid minimum wage, currently $3.35 per hour, plus Green Thumb pays social security, unemployment insurance and Worker's Compensation on all employees. She noted the program has been in Montana since 1970 and is a successful program. Ms. Austad stated that Green Thumb employees may work for any nonprofit organization, the State government or a local governmental entity. She noted that the entity for which a Green Thumb employee works is known as the host agency, which is responsible for providing I the needed materials and adequate supervision, as well as mileage and liabi lity protection if driving is required. Toni Austad stated that she has spoken briefly with Mr. Reeves Petroff, Gallatin County Weed Control Officer, and she feels that Green Thumb workers could possibly be used in a spotted knapweed control program for the area. She noted that the workers do provide a service or work on a project which would not be done otherwise, noting that they may not displace or replace any employee in the host agency. Mayor Mathre asked if there are funds available for a Green Thumb employee to work on a spotted knapweed control program. Ms. Austad stated that there are currently 13 Green Thumb workers in Gallatin County. She then indicated that assignments may be changed; and if the City wishes to become involved in a control program next spring, she would need to know in the near future. Commissioner Vant Hull asked how the City could get on the list of agencies wanting to participate in the Green Thumb program. Ms. Austad indicated that she will contact the appropriate City official as necessary if the Commission specifies who that individual would be. She then stated she will not be able to guarantee a worker next spring, but she could possibly assign a crew to help. She noted there are currently areas around the state where Green Thumb workers are used in control of weeds as well as in research. She then indicated that once a host agency obtains a Green Thumb worker, it can generally get one the following year if needed. I Commissioner Vant Hull asked if it would be possible to use a Green Thumb worker for public education. Toni Austad indicated that is a possibility, noting that the program has great flexibility on the work assignments. Commissioner Vant Hull then asked if it would be possible for the Green Thumb program to work with both the City and the County on a weed control program for spotted knapweed. Ms. Austad indicated it would be no problem to work with both governmental entities. She then noted that she has briefly discussed this matter with Mr. Petroff and wi II discuss it further following this meeting. 09-02-86 382 Commissioner Stiff asked if the City will incur any costs under this program. Toni Austad stated the only costs incurred will be in providing special equipment and materials for the crews, such as gloves and shovels. She also indicated the host agency is asked to provide liability insurance coverage if the individual is requested to drive on the job, as well as reimbursement for mileage. Mayor Mathre asked what the Green Thumb worker does during the winter. Ms. Austad indicated they can be assigned to any unit in the City. I Commissioner Vant Hull asked Mr. Petroff if he would like to make any comments. Mr. Reeves Petroff indicated that he will talk to Ms. Austad about the program; and he does not have anything specific at this time. Mrs. Nancy Ross, resident of Bozeman, noted that spotted knapweed is a definite problem in the western part of the state and is moving eastward. She then encouraged the Commission to consider taking action which would help to control and remove spotted knapweed from the area. City Manager Wysocki indicated that he will work with Mr. Petroff on this item and will bring the item back before the Commission when necessary. between South 8th A venue and South City Manager Wysocki presented to the Commission a request submitted by William J. Sebena, owner of the Lewis and Clark Motel, for permission to plant nine trees along the south side of West Main Street between South 8th Avenue and South 9th Avenue. The City Manager noted that Mr. Sebena was unable to remain at the Commission meeting, but he indicated agreement to the staff concerns. He then recommended that the Commission approve the request, contingent upon the variety of tree selected being seedless and that the applicant work with City staff to avoid placing trees in a location that would obstruct intersections or driveways. It was moved by Commissioner Martel, seconded by Commissioner Vant Hull, that the Commis- sion authorize the planting of trees along West Main Street between South Eighth Avenue and I South Ninth Avenue, subject to staff review of the type of tree and the locations for them to be planted. The motion carried by the following Aye and No vote: those voting Aye being Commis- sioner Martel, Commissioner Vant Hull, Commissioner Stiff and Mayor Mathre; those voting No, none. City Manager Wysocki reminded the Commission that the deadline for applications was on Sunday. He then indicated that he signed grant applications for the Beall Park Arts Center as well as the Montana Ballet Company since there was not adequate time to submit them to the Com- mission for consideration. The City Manager stated that the Beall Park Arts Center received a grant from the Montana Arts Council under a similar application last year. He noted that the Montana Ballet Company submitted its application on Friday afternoon. It was moved by Commissioner Vant Hull, seconded by Commissioner Stiff, that the Commis- sion ratify the City Manager's signature on the grant application to the Montana Arts Council for the Beall Park Arts Center, in the approximate amount of $15,000 to be used for operations. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Vant Hull, Commissioner Stiff, Commissioner Martel and Mayor Mathre; those voting No, none. It was moved by Commissioner Stiff, seconded by Commissioner Martel, that the Commission ratify the City Manager's signature on the grant application for the Montana Ballet Company in I the amount of $20,000 for special projects, thus authorizing the City of Bozeman as the sponsor- ing body. The motion carried by the following Aye and No vote: those voting Aye being Commis- sioner Stiff, Commissioner Martel, Commissioner Vant Hull and Mayor Mathre; those voting No, none. a portion of the aile located in Block C of Trac 's Second City Manager Wysocki presented Ordinance No. 1216, as reviewed by the City Attorney, 09-02-86 383 entitled: . ORDINANCE NO. 1216 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, VACATING AND ABANDONING A PORTION OF THE ALLEY LOCATED IN BLOCK C OF TRACY'S SECOND ADDITION TO THE CITY OF BOZEMAN, MONT ANA. The City Manager reminded the Commission that on July 7, 1986, they had conducted the I public hearing on the subject alley, which lies between Lots 1 through 3 and Lots 18 through 20 of Block C in Tracy's Second Addition, after which it directed the staff to prepare this Ordinance for vacation. He then recommended that the Commission provisionally adopt the Ordinance and that it be brought back in two weeks for final adoption. Commissioner Vant Hull suggested the Commission may be interested in tabling this item until it has had an opportunity to review policies and procedures utilized in other communities. She indicated that during the recent Legislative Committee meeting, it was discussed that some communities charge the adjacent landowners for vacated public lands and rights-Of-way, rather than deeding those properties back at no cost. City Manager Wysocki recommended that the Commission act on this requested vacation as it is, rather than deviating from current policy at this time. Commissioner Martel stated that he was involved in the sale of this complex, on a five- year contract, which expired earlier this year. He then indicated that, since he no longer has any financial interest in the property in question, he will vote on the matter. It was moved by Commissioner Stiff, seconded by Commissioner Martel, that the Commission provisionally adopt Ordinance No. 1216, vacating a portion of the alley located in Block C of Tracy's Second Addition, 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 Stiff, Commissioner Martel and Mayor Mathre; those voting No being Commissioner Vant Hull. I Commission Resolution No. 2623 - Note Resolution authorizing issuance of $1,036,827 in Montana Cash Anticipation Program notes City Manager Wysocki presented Commission Resolution No. 2623, as reviewed by the City Attorney, entitled: COMMISSION RESOLUTION NO. 2623 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN AU- THORIZING THE SALE AND ISSUANCE OF $1,036,827 TAX AND REVENUE ANTICIPATION NOTES. The City Manager reminded the Commission that the Montana Cash Anticipation Program allows local governments to borrow monies at a low interest rate to provide an infusion into those funds which have negative balances. He indicated the loan will be used to provide monies for the Water Fund and the Supply Fund, with the loan being due on June 30, 1987. He noted those loans can be rolled over into the next year; and hopefUlly a lower amount can be borrowed. The City Manager then recommended that the Commission adopt Commission Resolution No. 2623, authorizing the issuance of the Montana Cash Anticipation Program notes for the City of Bozeman. It was moved by Commissioner Martel, seconded by Commissioner Vant Hull, that the Commis- sion adopt Commission Resolution No. 2623, authorizing the issuance of $1,036,827 in the Montana Cash Anticipation Program notes. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Martel, Commissioner Vant Hull, Commissioner Stiff and Mayor Mathre; those voting No, none. I Commission Resolution No. 2624 - adoptin schedules as prepared by the epartment of ommerce and the City Manager Wysocki presented Commission Resolution No. 2624, as reviewed by the City Attorney, entitled: COMMISSION RESOLUTION NO. 2624 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, ADOPTING THE RECORDS DISPOSAL SCHEDULES FOR THE CITY OF BOZEMAN AS PREPARED BY THE STATE OF MONTANA DEPARTMENT OF COMMERCE AND THE MONT ANA HISTORICAL SOCIETY. 09-02-86 381t The City Manager noted that the records disposal schedules provide a guideline for re- tention and disposal, as recommended by the State. He stated this action is not required but is deemed desirable and recommended that the Commission adopt the Resolution. It was moved by Commissioner Vant Hull, seconded by Commissioner Stiff, that the Commis- sion adopt Commission Resolution No. 2624, adopting the records disposal and retention schedules as prepared by the Department of Commerce and the Montana Historical Society. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Vant Hull, Commis- I sioner Stiff, Commissioner Martel and Mayor Mathre; those voting No, none. Commission Resolution No. 2625 - stating opposition to Constitutional Initiative 27, to eliminate property taxes City Manager Wysocki presented Commission Resolution No. 2625, as reviewed by the City Attorney, entitled: COMMISSION RESOLUTION NO. 2625 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, STATING ITS OPPOSITION TO CONSTITUTIONAL INITIATIVE NO. 27. Commissioner Stiff stated that he agrees with the Resolution as written; however, it is important to make the Legislature aware that tax relief is necessary. The Commissioner indi- cated that he feels the issue is important but a better approach in bringing the concern to the attention of the State could have been taken. Commissioner Martel stated he feels the proposal is anti-American and anti-constitutional because it requests that the Supreme Court or the Attorney General declare the initiative un- constitutional without it having been voted on by the electorate. He feels the initiative process should be allowed to proceed rather than terminated by a single person or body. Commissioner Vant Hull stated it behooves the Commission to find out if the proposed ini- tiative is constitutional or not. She also noted that approval of the initiative would have a devastating effect on the services which the City provides to its citizens. I Commissioner Martel noted that government is dependent upon taxes for a majority of its revenue. He then noted that the same arguments being made on this initiative were made against Proposition 13 in California several years ago. Mayor Mathre stated her concern about the legality of CI27 revolves around the repayment of bonds, noting that the City is currently paying on three General Obligation Bond issues. She noted that abolishment of the property tax would impair the City's contractual agreement with the bondholders. It was moved by Commissioner Stiff, seconded by Commissioner Vant Hull, that the Commis- sion adopt Commission Resolution No. 2625, stating opposition to Constitutional Initiative 27 to eliminate property taxes. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Stiff, Commissioner Vant Hull and Mayor Mathre; those voting No being Commissioner Martel. for Montana Economic Development Board Financin ompany City Manager Wysocki presented to the Commission a notice of application for MEDB financ- ing, as submitted by the Zenith Management Company. He noted the application is in the amount of $5,500,000 for the acquisition, renovation and remodeling of the Holiday Inn. He noted that this company had requested a copy of the Clty's Industrial Development Revenue bond guidelines; and this application was subsequently forwarded for consideration. The City Manager reminded the Commission that they had determined to review each application submitted to decide whether I they wish to conduct the public hearing in Bozeman or request that the Montana Economic Develop- ment Board hold the public hearing in Helena. He then reminded the Commission that the public hearing on the first application was conducted in Helena; but the Commission opted to hold the public hearing on the second application in Bozeman. Commissioner Stiff noted that acquisition and remodeling of an existing business would not seem to invoke much community interest on the surface. Commissioner Vant Hull expressed concern that an application is not always what it appears 09-02-86 385 to be; and it would be easier to conduct the public hearing here than to have people drive to Helena. It was moved by Commissioner Martel, seconded by Commissioner Stiff, that the public hearing be held in Helena before the Montana Economic Development Board. The motion fai led by the following Aye and No vote: those voting Aye being Commissioner Martel and Commissioner Stiff; those voting No being Commissioner Vant Hull and Mayor Mathre. It was moved by Commissioner Vant Hull, seconded by Commissioner Stiff, that the public I hearing on the application submitted by Zenith Management Company be held in Bozeman before the City Commission. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Vant Hull, Commissioner Stiff and Mayor Mathre; those voting No being Com- missioner Martel. Discussion - FYI Items City Manager Wysocki presented to the Commission the following "For Your Information" items. (1) A letter from the Friends of KUSM, Inc., concerning that television station. (2) A letter from HRDC and a letter from Director of Finance Gamradt to Todd and Asso- ciates concerning the Greenwood Plaza housing project. (3) A memo from Director of Public Service Holmes regarding the disposal of hazardous wastes in the community. Commissioner Vant Hull expressed concern that some individuals or businesses are dumping hazardous wastes into the sewer system and asked if the staff could take any action. The City Manager indicated that a related article in the newspaper listed eight different areas being considered for hazardous materials disposal. He then noted that the staff will look at various mechanisms for reviewing what materials are being placed in the landfill as well as monitoring of the sewer system. (4) A letter of resignation from the Historic Preservation Advisory Commission, sub- I mitted by Noreen S. Alldredge. (5) A memo from the Bozeman Housing Coalition concerning the application for economic development monies through the 1986 CDBG program, to be submitted by the Museum of the Rockies. Commissioner Vant Hull suggested this item be placed on the agenda for discussion; and Mayor Mathre requested that it be placed on next week's agenda. (6) A copy of the Stipulation and Order of Dismissal for Valley Unit Corporation vs. the City of Bozeman. (7) A copy of a Complaint filed by Dean Pollard. (8) Mayor Mathre stated she has received a letter of thanks from Turnstar Productions for the City's cooperation in their recent filming activities here. She indicated she will place the letter by the Commissioners' mailboxes. (9) Commissioner Stiff noted that City Attorney Crumbaker-Smith will be leaving the City staff in two weeks; and suggested the Commission may wish to appoint a sub-committee of the Commissioners to meet with legal counsel and City staff for a update on Valley Unit. The Commission concurred that is a good idea; and the Mayor appointed Commissioner Stiff and Com- missioner Jordan to serve on that subcommittee. Recess - 4:35 p.m. Mayor Mathre declared a recess at 4:35 p.m., to reconvene at 7:00 p.m. for the purpose of conducting the scheduled public hearings. I Reconvene - 7:00 p.m. Mayor Mathre reconvened the Commission meeting at 7: 00 p. rn., for the purpose of conduct- ing the scheduled public hearings. Continued public hearing - Tentative Appropriation Ordinance for Fiscal Year 1986-87 This was the time and place set for the continued public hearing on the Tentative Appro- priation Ordinance for Fiscal Year 1986-87, entitled: 09-02-86 ~- - 38G ORDINANCE NO. AN ORDINANCE OF THE CITY OF BOZEMAN, MONTANA, APPROPRIATING CITY FUNDS FOR VARIOUS BUDGET UNIT EXPENDITURES, AND FURTHER APPROPRIATING REVENUE NECESSARY TO OPERATE AND MAINTAIN CITY SERVICES FOR SALARIES, OPERATIONS AND CAPITAL FOR EACH OPERA- TIONAL BUDGET UNIT OF MUNICIPAL GOVERNMENT FOR THE FISCAL YEAR ENDING JUNE 30, 1987. Mayor Mathre opened the continued public hearing. She reminded the Commission that this public hearing was opened at the meeting held on August 18, 1986 and was continued to I this time to allow residents an opportunity for further review of the proposed budget. No one was present to speak in support of or in opposition to the Tentative Appropria- tion Ordinance. Mayor Mathre closed the public hearing. Final adoption of the Appropriation Ordinance will be considered in two weeks. This was the time and place set for the public hearing on the Zone Map Change from R-O, Residential--Office, to B-2, Community Highway Business, on a portion of Certificate of Survey No. 178, located in the southwest one-quarter of Section 11, Township 2 South, Range 5 East, Montana Principal Meridian. The subject property is more commonly located in the Triangle Area Annexation. at 2701 West College Street. Mayor Mathre opened the public hearing. Senior Planner Marcia Elkins presented the Staff Report. She stated the subject parcel is approximately 242 feet by 252 feet in size, and is bordered by commercial uses on the north and the west. To the east, large residential lots exist, with a mobile home court further east. The Senior Planner stated that in reviewing the twelve criteria for Zone Map Changes, one of the items addressed is vehicular impact; and that is a concern with this application. She noted that commercial development of the site will generate more traffic than residential development, I therefore, the staff has recommended that development of the site be encouraged along the West Main Street side of the lot. Senior Planner Elkins stated that the Master Plan designates the subject site as general highway commercial; and the requested B-2 zoning would bring it into compliance. She also noted that the change in zoning would bring it into compliance with adjacent commercial development, noting its proximity to U.S. Highway 191. She then indicated that the Zoning Commission con- sidered this requested Zone Map Change and recommended approval. The applicant was not present or represented at this meeting. Commissioner Vant Hull asked if the applicant has any plans for developing the site. The Senior Planner stated that the applicant has indicated the subject parcel is part of an estate, which she is trying to settle. She stated there are no plans for development of the site at this time. Commissioner Stiff asked if this requested rezoning will bring the parcel to its highest and best use. The Senior Planner indicated it would. Commissioner Vant Hull asked if approval of this requested change will create pressure for more B-2 zoning along West College Street. Senior Planner Elkins stated that it might, noting that the Master Plan indicates that the area should be zoned B-2. No one was present to speak in support of or in opposition to the requested Zone Map Change. Mayor Mathre closed the public hearing. I It was moved by Commissioner Stiff, seconded by Commissioner Martel, that the Commission waive the customary one-week waiting interval. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Stiff, Commissioner Martel, Commissioner Vant Hull a nd Mayor Math re; those yoti ng No, none. It was moved by Commissioner Martel, seconded by Commissioner Vant Hull, that the Commis- sion approve the Zone Map Change requested by Anna Mae Anderson as personal representative for the Estate of Albert J. Michel, to change the present zoning of R-O to B-2 on the remainder of Certificate of Survey No. 178, located in the Triangle Area Annexation. The motion carried 09-02-86 387 by the following Aye and No vote: those voting Aye being Commissioner Martel, Commissioner Vant Hull, Commissioner Stiff and Mayor Mathre; those voting No, none. This was the time and place set for the public hearing on a major modification of a Con- I ditional Use Permit requested by Stephen Forte' to allow a lighted sign for the medical office building located in an R-3, Residential--Medium-density, District. The subject property is located on Lot 7 of the LeClair Subdivision, which is more commonly known as 1811 West Koch Street. Mayor Mathre opened the public hearing. Assistant Planner Dave Skelton presented the Staff Report. He reminded the Commission that the subject property is located in the northeast corner of the intersection of West Koch Street and South 19th Avenue. He noted that in March 1984, the City Commission approved a Conditional Use Permit to allow construction of a medica' office building and apartments on the subject lot. He further indicated that in February 1984, the applicant received a variance from the Board of Adjustment to allow a 20-foot setback from the Farmer's Canal rather than the stipu- lated 35-foot setback. Also, in December 1984, in-house approval was given for a second sign at the intersection of West Koch Street and South 19th Avenue, noting the originally-approved sign was located along West Koch Street. The Assistant Planner stated that Mr. Forte' recently installed a third sign, adjacent to South 19th Avenue. He noted that sign is partially located off the applicant's property, ex- tending into the easement for Farmer's Canal. Also, the sign is ten feet high by eight feet wide, plastic with interior illumination, and does not seem appropriate in an R-3 zoning district. Assistant Planner Skelton stated that the Zoning Commission conducted a public hearing on this application for major modification and concurred in the Planning Staff's recommendation for denial. I Mr. Stephen Forte', applicant, stated he would like to retain the sign, apologizing for not following the correct procedure initially. Mr. Forte' indicated that he felt a larger sign was needed to help identify for his patients the location where he practices his chiropractic and acupuncture services; and the existing sign at the corner of West Koch Street and South 19th Avenue was not effective. He then submitted to the Commission pictures of the existing sign as well as pictures of his new sign, which is under consideration at this time. He stated that he placed the new sign in its present location because it is easily visible. He also noted that the message sign gives him an opportunity to list community activities as well as provide messages about his services. He then indicated that most of the feedback he has received on his new sign has been positive. Mr. Forte' stated there is a precedent for illuminated signs in this residential neighbor- hood, citing the Church of the Nazarene sign immediately across South 19th Avenue. He noted that sign has been there for many years. Mr. Forte' stated that he placed the sign in its existing location, with a portion of it being located in the easement for Farmer's Canal because he has planted trees along the west side of the building; and placing it within his property boundaries would have required removal of one of those trees for visibility. He noted that, since he maintains the easement all of the way to the canal, and widening of South 19th Avenue to cover the canal is not anticipated in the near future, he did not feel that the existing location would create any problems. Mr. Forte' then stated he would be willing to relocate the sign if the Commission so directs. He I then requested that the Commission give favorable consideration to his appl ication. Commissioner Martel asked Mr. Forte' if he plans to remove either of the original signs, or if he wishes to retain all three signs. Mr. Forte' stated that the sign at the corner of West Koch Street and South 19th Avenue contains the names of the other people with offices in the building. He indicated other signs could possibly be used to identify those offices if necessary, but he did not feel there would be any problem with keeping that sign in its present location. City Manager Wysocki asked how many offices there are in the building; and Mr. Forte' indicated there are three offices besides his. 09-02-86 --------- 38b The City Manager then asked Mr. Forte' if he would support his tenants' requests for individual freestanding signs if such requests were submitted. Mr. Forte' indicated that the tenants are listed on the current freestanding sign at the corner of West Koch Street and South 19th Avenue; and he would need to carefully consider any new sign request and its proposed location. Commissioner Martel asked Mr. Forte' if his clientele is more on an appointment basis than on a drive-by basis. Mr. Forte' indicated most of his patients are on a referral basis. I He stated the signs are to identify his place of practice; and he has used his new message sign to educate the publ ic about chi ropractic services. Commissioner Vant Hull expressed concern about the use of the proposed type of sign in an R-3 district, and asked if there is any other precedent for this type of sign. Planning Director Lere noted there are medical offices in other R-3 districts, but none of them has this type of sign. Assistant Planner Skelton stated that medical offices are listed as a conditional use in residential areas to allow public review, with the proposed signs being one of the items care- fully reviewed. He noted there are no specific criteria to be considered; however, signs which are internally illuminated or revolving are generally not allowed in a residential district. The Assistant Planner reminded the Commission that the subject site currently has one directory sign and one facade-mounted sign. Commissioner Stiff asked about the sign at the Church of the Nazarene which was referred to by the appl icant. Assistant Planner Skelton stated that the sign was in place prior to adop- tion of the Zone Code. No one was present to speak in support of or in opposition to the requested major modifica- tion to the Conditional Use Permit. Mayor Mathre closed the public hearing. Commissioner Martel noted the sign is attractive, but he feels it is misplaced. Mayor Mathre stated concurrence with Commissioner Martel's comment, noting the sign would be more appropriate in a commercial zone than in a residential neighborhood. I It was moved by Commissioner Vant Hull, seconded by Commissioner Stiff, that the Commission waive the customary one-week waiting interval. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Vant Hull, Commissioner Stiff, Commissioner Martel and Mayor Mathre; those voting No, none. It was moved by Commissioner Stiff, seconded by Commissioner Martel, that the Commission deny the modification to the Conditional Use Permit requested by Stephen Fortel to allow a sign for a medical office in an R-3 zone. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Stiff, Commissioner Martel, Commissioner Vant Hull and Mayor Mathre; those voting No, none. Public amendments to the Subdivision Re ulations as set forth in Chapter 16 of the ode This was the time and place set for the public hearing on numerous amendments to the Bozeman Area Subdivision Regulations as contained in Chapter 16 of the Bozeman Municipal Code. Mayor Mathre opened the public hearing. Senior Planner Marcia Elkins presented the Staff Report. She reminded the Commission that in February 1986, they considered and approved basically the same amendments. She stated that the County Commission also reviewed the amendments and denied them, in large part due to concern about the requirement for an Examining Land Surveyor's Certificate on plats. She noted that denial by one governing body results in total denial; therefore, the matter is before the City Commission once again. I The Senior Planner stated that the amendments under consideration in this application are the same as those considered in the previous public hearing, except the requirement for an Examining Land Surveyor has been removed. She noted the City has had difficulty in obtaining an Examining Land Surveyor during the past year, to meet the current requirements of the Sub- division Regulations. She then characterized the amendments as housekeeping, including correc- tion of typographical errors and changes in references to the State Statutes. Senior Planner Elkins stated that the City-County Planning Board recommended approval 09-02-86 389 of the amendments; and on August 26, 1986, the County Commission approved the proposed amend- ments. Commissioner Martel questioned why so many copies of the application are required, particularly noting that more copies are required for those within the city limits than in the jurisdictional and county areas. The Senior Planner indicated that in the initial amendments, more copies were required for the jurisdictional area; however, one of the County Commissioners I requested that the number of copies be changed to what is now under consideration. No one was present to speak in support of or in opposition to the proposed amendments to the Subdivision Regulations. Mayor Mathre closed the public hearing. It was moved by Commissioner Martel, seconded by Commissioner Vant Hull, that the Commis- sion waive the customary one-week waiting period. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Martel, Commissioner Vant Hull, Commissioner Stiff and Mayor Mathre; those voting No, none. It was moved by Commissioner Vant Hull, seconded by Commissioner Stiff, that the Commission approve the various amendments to the Subdivision Regulations as set forth in Chapter 16 of the Bozeman Municipal Code. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Vant Hull, Commissioner Stiff, Commissioner Martel and Mayor Mathre; those voting No, none. Break - 7:45 to 7:49 p.m. Mayor Mathre declared a break from 7:45 p.m. to 7:49 p.m., in accordance with Commission policy established at their regular meeting of March 14, 1983. I This was the time and place set for the public hearing on the emergency zoning along the Milwaukee Railroad right-of-way, Sourdough Trail and adjacent properties, as requested by the Bozeman City-County Planning Board. Mayor Mathre opened the public hearing. Planning Director Steve Lere presented the Staff Report. He reminded the Commission that two weeks ago, he had submitted a memo indicating the City-County Planning Board's and Recreation Advisory Board's concerns about development along the Milwaukee Railroad right-of-way along the linear park. He noted that concern WdS raised because a seven-foot chain link fence has been installed along slightly more than 700 feet of the park. He indicated the fear is that if development is not carefully guarded, the linear park will become a 15-foot-wide alley between fences, thus losing the intent of the linear park. The Planning Director stated that the Planning Staff has reviewed the situation and suggested that interim zoning be adopted to require a Conditional Use Permit for any development within fifty feet of the linear park until such time as regulations can be adopted to protect the health, safety and welfare of the general public. He noted during that time, the staff will develop a proposal for permanent zoning which will address the concerns that have been raised. He then reminded the Commission that the interim zoning may be adopted for a six-month period; and the State Statutes provide for a six-month extension if necessary. Mayor Mathre asked if there are any structures in the fifty-foot setback proposed under the interim zoning. The Planning Director indicated there are a number of structures within the fifty-foot setback. He also noted that two fences are currently under construction adjacent I to the right-of~way. Commissioner Martel asked if a person would be allowed to construct a doghouse within fifty feet of the linear park under the interim zoning without going through the Conditional Use Permit process. The Planning Director stated that any development or construction within the fifty-foot setback would require review. Commissioner Martel then asked about planted materials, such as hedges. The Planning Director stated he does not believe a hedge, or any other vegetation, would require review, since it is not classified as a structure. 09-02-86 380 Commissioner Vant Hull asked if the permanent zoning regulations might be different from the interim zoning. Planning Director Lere stated they definitely will. He noted that the staff is currently considering the possibility of overlay zoning along the linear park; and they will also consider comments received during the public hearings before the City-County Planning Board and the City Commission before final adoption of regulations. Mr. Don McLaughlin, member of the City-County Planning Board, stated he has been a member of the subcommittee of Planning Board and Recreation Advisory Board members who have I reviewed proposed development of the Milwaukee Railroad right-of-way as a linear park. He noted that the Master Plan distinguishes between active parks and passive parks, but some of the areas in the park system cannot be identified as either, such as the proposed linear park. He then reminded the Commission that the proposed linear park is not a new idea, but Gallagater Park was proposed approximately ten years ago, to run from Lindley Park to Four Corners along the abandoned railroad right-of-way. Mr. McLaughlin then noted a natural conflict arises between the residents' desires for privacy and the users I desires for a more open area, indi- cating that the subcommittee will conduct public meetings to achieve a balance between the two. Mr. Walt Metier, 1013 South Bozeman Avenue, stated that as individuals, a number of adjacent property owners have purchased the 171- feet of railroad right-of-way available to them. He indicated that he anticipated and expected to be able to use the property he pur- chased as he wanted; and he does not support the proposed zoning. Mr. Jody May, 1219 South Tracy Avenue, stated his property is adjacent to the right- of-way, and he is a frequent user of the linear park. He then indicated support for the interim zoning, noting this park is a once-in-a-lifetime opportunity that should be carefully developed as an asset to the community. Mr. May noted that property owners and users of the park must be considered in preparing guidelines for development along the park as well as the park; and he feels that public review of any development until guidelines have been established will be in everyone's best interests. Ms. Joanne Jennings, member of the Recreation Advisory Board, noted a lot of time and effort has gone into planning a nice park along this railroad right-of-way which can be used in I various ways. She then encouraged that development along the park be slowed so the publiC can be assured of a useful and aesthetic park. Mr. Lee Stroncek, 818 South Black Avenue, stated he does not live adjacent to the rail- road right-of-way, but he lives near Spring Creek. He indicated concern about any development of the riparian habitat which exists along the creek, particularly in that area. Mr. Stroncek then stated support for the proposed interim zoning. Mr. Herbert Kirchhoff, adjacent property owner at 1542 South Grand Avenue, stated he is not in opposition to the proposed interim zoning. He then reminded the Commission that two and one-half or three years ago, he stated opposition to the City purchasing any of the right- of-way between South Willson Avenue and Kagy Boulevard. He also noted at that meeting, Mr. Don Weaver indicated interest in carrying the linear park through Langohr Park, along Kagy Boulevard and Fairway Drive to meet with the Sourdough Trail. He then questioned how much of the right-of-way has been purchased by the City, since a review of the minutes does not provide a clear resolution of that item. Planning Director Steve Lere stated that the deed to the City includes a portion of the right-of-way from the intersection of East Story Street and South Church Avenue to the inter- section of Kagy Boulevard and South Third Avenue. He noted that Rotary Club has a subcommittee working on plans for initial improvement of the trail from South Church Avenue to South Willson Avenue, but they do not plan to cross Willson Avenue. He then indicated that the interim zoning would apply to that portion of the right-of-way also. Mayor Mathre asked if that block of the right-of-way will be included in the linear park. I City Manager Wysocki stated the entire portion of the right-of-way owned by the City has been designated as the linear park. He noted the City may decide not to develop that as a portion of the linear park system, even though it is City-owned land; but to sell that land would require placing the matter on the ballot. Mr. Hugh Reid, owner of Rasmark Display Fireworks, noted he is the one who created the original problem. He noted that for over fifteen years, he has owned 4.2 acres on Ice Pond Road; and he recently acquired 3.0 acres of the abandoned Milwaukee Railroad right-of-way. 09-02-86 391 Mr. Reid then stated that after he acquired the additional property, he fenced the area around his warehouses to define the property lines as well as to address concerns recently raised by the agent for his liability insurance coverage. Mr. Reid then noted that fences are not popular because they are designed to keep people in or out; however, they do serve a purpose. He stated in this instance, it is an attempt to reduce vandalism at his business site and to address the insurance problems. Mr. Reid stated I he did not consider that erecting that fence might create any problems for the linear park. He noted that the insurance agent has indicated that planting a hedge along the fence would negate the purpose of the fence, since people could hide in the hedge. He then stated a willingness to listen to possible alternatives, noting that the fence is set in cement and would be expensive to relocate. Mrs. Ruth Stucky, 613 South Church Avenue, stated she wouldn't have purchased the available right-of-way if she had known the proposed zoning was being considered. Mr. Paul Brown, 1624 South Third Avenue, stated he purchase 270 feet of right-of-way, . which he is currently utilizing. He indicated that he has no intention to fence his property, noting that a fence is not needed. He then stated the only problems he has encountered in the past is with motorcycles traveling along that right-of-way. Planning Director Lere submitted to the Commission a letter of opposition from Gary and Shirley Gerhardt, 1006 South Black Avenue. The letter indicates that they had purchased their portion of the right-Of-way with the understanding that the linear park would be fenced with off-setting gates at the streets to prevent access by motorized vehicles. They further stated their intention to relocate their back fence to include the newly-acquired property. Mr. Stan Tryon, 1505 South Willson Avenue, stated he purchased 245 feet of the right-of- way, and he has planted a hedge along it. He then indicated a desire for privacy and keeping dogs out of his yard. He stated that his garage is located within the fifty-foot zoning area; and he is hesitant to support this type of proposal. Mr. Tryon then indicated that the right-of- way should be available for those who wish to gain access to their rear yards, noting that the I block between South WillsO/l Avenue and Kagy Boulevard is a long one. Mayor Mathre asked if there are any restrictions against motorized vehicles in the linear park at this time. City Manager Wysocki indicated there are no specific restrictions. He noted, however, there are restrictions against motorized vehicles in parks except upon designated driveways. Mayor Mathre closed the public hearing. A decision will be forthcoming at next week's meeting. Recess - 8:40 p.m. There being no further business to come before the Commission at this time, Mayor Mathre recessed the meeting to 10:00 a.m. on Thursday, September 4, 1986. Reconvene - 10:22 a.m. Mayor Mathre reconvened the meeting at 10:22 a.m. on Thursday, September 4, for the purpose of considering further action on the bond sale and award of construction bids for Special Improvement District Nos. 649, 650 and 651. The Mayor noted that Commissioner Martel left town between the Tuesday meeting and this morning; and Commissioner Jordan has returned and is in attendance at this portion of the meeting. The Mayor then indicated that the reason for delaying the reconvening of the meeting was to allow the City Attorney an opportunity to review the documents just submitted by Mr. Don White, attorney for the applicant. I City Manager Wysocki noted that Commissioner Jordan has been briefed on the discussion of the subject items at Tuesday's meeting by the City Manager and the Clerk of the Commission; and he has reviewed the letter submitted by Dorsey and Whitney concerning the bond sale. Staff report (continued) - update on the status of the bond sale for SID Nos. 649, 650 and 651 The City Manager then presented to the Commission a memo from Commissioner Martel out- lining his concerns and comments and a telegram from Grande and Company indicating they are 09-02-86 392 still willing to purchase the bonds if the maximum allowable under the I RS regulations is placed in an escrow account. Mr. White submitted to the Commission a brief outline of their proposal for an escrow agreement which would attempt to address the I RS regulations as well as the City's policy. Mr. White stated that a study of the current property owners reveals that 69.14 percent of the property is owned by the Smiths, with the remaining 30.86 percent being held in individual ownerships. He noted that causes the project to fall under the requirements for an escrow I account equal to two years' assessments, which is approximately $240,000 based on the lowered bond issue of $860,000. He then reviewed the written outline, noting that their proposal would provide the maximum allowable under the new federal legislation in the escrow account, while providing additional protection for the City by allowing the City to hold the deed for a portion of the property until the amount held in limited ownership is reduced. Mr. White reminded the Commission that the City currently holds $127 ,275.60 in cash escrow plus 25 acres of land at a discounted value of $243,750, for a total of $371,025.60. He further noted that the City may not require more than $161,000 to $170,000 under the new IRS laws, suggesting that be provided through the $127,275.60 plus a $40,000 promissory note with a 9-month maturity, backed by the 25 acres currently held in escrow. He indicated that if the value of the land were considered as well, the City would have security in the amount of $371,000, which is substantially higher than the $240,000 required for the two years' payments. Mr. White stated that once the City changes its policy to comply with federal regulations, anticipated within the 9-month life of the promissory note, the City would be required to return the deed for the 25 acres to the Smiths. City Attorney Crumbaker-Smith indicated she has no problems with the figures submitted by Mr. White; however, she feels two judgment calls should be made by the Commission before a decision is made. She noted one of the individual ownerships involves slightly more than 10 percent of the land; therefore, it probably should be considered as a limited ownership. Also, an individual, involving approximately 1 percent of the land, had indicated an intention to purchase and has subsequently withdrawn that intention. She noted if neither parcel is con- I sidered in limited ownership, the 69 percent figure submitted is accurate; if the slightly over 10 percent is included, the limited ownership is approximately 79 percent; and if the returned parcel containing 1 percent is included in the limited ownership, it increases to 80 percent; and that throws the project back into the requirement for a three-year escrow account. Mayor Mathre noted that, no matter whether the City policy requires two or three years of assessments in escrow, the federal legislation does not allow more than $161,000 to $170,000 in the escrow account. The City Manager stated that is correct. The Mayor then noted the decision before the Commission is whether to maintain the policy and require a two-year escrow payment, or deviate from its policy and approve sale of the bonds. The City Attorney indicated concurrence with that statement. She noted that the Commission made a decision and adopted a policy providing what they feel is adequate security for issuance of bonds; and they must now make a decision on whether they feel the lowered amount allowable is adequate security for the subject bonds, given the amount of land held in I imited ownership. She then reminded the Commission that only the cash and promissory note, totalling approximately $167,000 can be considered in making the decision. Commissioner Jordan asked for a breakdown of how the $161,000 to $170,000 maximum was determi ned. The City Attorney indicated that 10 percent of the principal, or $86,000 in this case, is allowed, plus 10 percent of the interest to stated maturity of the bonds. She noted that the City staff made rough estimates on those figures and determined the total at $161,000, while the bond buyer's calculations reached $170,000 total for principal and interest. Commissioner Jordan then expressed concern about the new' federal legislation. He noted I that it seems to address concerns about developers using tax exempt bonds for private construc- tion, but it does not seem to consider local governments and their needs for guarantees. City Attorney Crumbaker-Smith stated that Mr. Joe Gonnella, Dorsey and Whitney, indi- cated that reasons for the change in the tax code include the fact that tax exempt bonds are a drain on the treasury and should be limited; it appears the interest rate is currently high because of the flood on the market, and fewer bonds should result in a lower interest rate; and the philosophical position that government bonds should be used for government sauations, not 09-02-86 393 in private situations. The City Attorney then stated that bond counsel indicated that it does not appear the Congress was considering SI D's when it prepared the new legislation. City Manager Wysocki noted that a recent newspaper article indicated that other communi- ties in Montana have more stringent policies on SID's and asked the City Attorney to address that item. City Attorney Crumbaker-Smith stated that she contacted some of the major cities in the I state, with the following results: Billings has no guarantees; Great Falls has no guarantees; Helena has no guarantees, but it requires that the developer install one of the improvements on his own; and Missoula has a new policy adopted approximately two years ago which requires a five-year guarantee, but it has not issued any SI D bonds for four to five years. City Manager Wysocki noted that Commissioner Martel suggested in his memo the possibility of requiring the developer to install one of the improvements, with the City apprOVing the issuance of bonds to cover the other improvements. He then indicated that he briefly discussed this possibility with Mr. White, but it appears that may create some problems for the individual owners, who may not be able to afford that expense. He further noted the City has solicited bids for the project; and he is not sure that an individual would be able to accept that bid. The City Manager then asked Mr. Jerry Gaston, consulting engineer, about the typical cost of improvements per lot. He further asked if any of the engineering costs to date would apply to the remainder of the annexed property, not just this phase. Mr. Gaston stated the typical cost of improvements is $1.00 per square foot, or $7,000 to $9,000 for a standard lot. He then noted the bids for this project are low enough that it would have an advantage on the market. He stated that the engineering to date has been directed to this phase of the subdivision, although a small portion of it could be applied to a larger portion of the annexation since providing adequate services to those portions as well as preliminary grades have been considered. Commissioner Stiff noted that this subdivision would contain mobile homes rather than permanent structures, which could make this project more vulnerable than the typical subdivision. I Mayor Mathre reminded the Commission of the basic item under consideration. She noted that the City Attorney has suggested the limited ownership is running along the borderline between requiring two or three years of assessments in an escrow account. She then noted the maximum allowed in escrow is approximately $167,000; and two yearsl assessments would be $240,000 or $73,000 more, whi Ie three years' assessments would be $354,000 or $187,000 more than provided. Mr. Don White reminded the Commission that these lots may be leased or rented if they are not sold, thus still providing income. He noted that option is not available for single-family or multi-fami Iy lots. He further indicated that the covenants are rather stringent, and many of the mobile homes will be placed on permanent foundations. He then reminded the Commission that if the bonds for these SID's are sold, the SID Revolving Fund will receive approximately $75,000, which the City can then use to cover delinquent assessments. Also, the City has annexed the entire 230-acre parcel and has received substantial right-of-way dedications as well as agreements for off-site improvements and a cash-in-Iieu payment for water rights. Commissioner Vant Hull asked if additional monies could be paid into the SID Revolving Fund to offset the decreased escrow. City Attorney Crumbaker-Smith indicated probably not, since the State Statute allows up to 5 percent to be placed in the Revolving Fund. Commissioner Vant Hull noted the project is a good one, and mobile home lots are needed within the city limits; however, the City has a policy which should not be waived. She then asked about the possibility of lowering the standards for the streets for the project. The City Attorney noted that the street standards are set forth in the subdivision regulations, which I have been adopted by ordinance. The City Manager also expressed concern about deviating from standards for improvements without a substantial amount of consideration. Mayor Mathre asked for a staff recommendation. City Manager Wysocki stated that the reasons for adopting the current policy have not changed, although the new tax reform measures have created a conflict. He further noted that the City adjusted its policy in establishing the escrow account for this project, although that adjustment meets the intent of the policy. He then reminded the Commission that the bond buyer has indicated a willingness to purchase the bonds with the lower escrow account requirements. The City Manager then indicated bond counsel 09-02-86 391t has noted that the City may need to exhaust the escrow account before the three-year period for taking action on assessment delinquencies can begin. Commissioner Jordan asked if the federal regulations under discussion are currently in final form. The City Attorney indicated that the conference committee has approved the bill, but it has not yet been adopted by Congress. She noted that restrictions did exist before which may have had a slight effect on this item, but the new proposed legislation has a much greater effect; and that is what bond counsel has based its opinion on. I B rea k - 11: 1 3 to 11: 1 9 a. m . Mayor Mathre declared a break from 11:13 a.m. to 11:19 a.m., in accordance with Commis- sion policy established at their regular meeting of March 14, 1983. Staff report (continued) - update on the status of the bond sale for SI D Nos. 649, 650 and 651 City Manager Wysocki asked if it would be possible to approve the bond sale for one or two SID's but not for all of them. The City Attorney stated the bonds for all three SI D's have been advertised in one bond sale; and splitting the bond sale would not be possible unless the principal were given the opportunity to address that possibility. Commissioner Jordan stated this is a difficult decision, especially since he has been following this project through its various stages over the past four years with the developer providing everything that has been asked. However, the new federal legislation changes every- thing at this point. He noted if the legislation had been in effect at the time the bond sale was approved, he would have voted against proceeding with the sale because of the decreased security. The Commissioner indicated he must serve as a representative of the people in the community on this item in considering a possible financial risk to them in the future. Commissioner Vant Hull expressed concurrence with Commissioner Jordan's statements, noting she does not wish to negate the Commission's policy because of a change in the law. Commissioner Stiff stated that if the applicant had been able to disperse sufficient property to require only one year's assessment, he would have supported the sale of bonds. I However, since two or three years of assessments are needed to meet the current policy, he feels it would not be good stewardship of City business to approve the bond sale. It was moved by Commissioner Jordan, seconded by Commissioner Stiff, that the Commission halt further proceedings in the bond sale for Special Improvement District Nos. 649, 650 and 651 because of the inadequate security afforded under the limitations outlined in bond counsel's letter of August 28, 1986, to protect the taxpayers of the City of Bozeman. 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, none. Award construction bid - SID No. 649 - sanitary sewer, water and storm drainage in a portion of Annie SubdiviSion, First Filing The City Manager reminded the Commissioners that these bids were opened on July 7, 1986; and action must be taken today. He then recommended that the Commission reject all the bids, based upon the previous action. It was moved by Commissioner Stiff, seconded by Commissioner Vant Hull, based on the above action, that all bids for construction of Special Improvement District No. 649 be rejected. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Stiff, Commissioner Vant Hull, Commissioner Jordan and Mayor Mathre; those voting No, none. Award construction bid - SI D Nos. 650 and 651 - pavinq, curb and qutter, sidewalks and storm drain detention Improvements in a portion of Annie Subdivision, First Filing; pavinq of Durston I Koad between North 20th and North 22nd and a gravel wafkway along north side The City Manager noted these bids were also opened on July 7, 1986; and must be acted upon today. He then recommended that these bids also be rejected, based on the action taken above. It was moved by Commissioner Vant Hull, seconded by Commissioner Jordan, based on the above action, that all bids for construction of Special Improvement District Nos. 650 and 651 be rejected. The motion carried by the following Aye and No vote: those voting Aye being 09-02-86 395 Commissioner Vant Hull, commissioner Jordan, Commissioner Stiff and Mayor Mathre; those voting No, none. Adjournment - 11 :25 a.m. There being no further business to come before the Commission at this time, it was moved by Commissioner Jordan, seconded by Commissioner Stiff, that the meeting be adjourned. The I 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, none. JUDITH A. MA THRE, Mayor ATTEST: Clerk of the Commission I I 09-02-86