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HomeMy WebLinkAbout1986-11-24 493 MINUTES OF THE MEETING OF THE CITY COMMISSION BOZEMAN, MONTANA November 24, 1986 ************************ The Commission of the City of Bozeman met in regular session in the Commission Room, Municipal Building, November 24, 1986, at 2:00 p.m. Present were Mayor Mathre, Commissioner I Jordan, Commissioner Stiff, Commissioner Martel, Commissioner Vant Hull, City Manager Wysocki, City Attorney Becker and Clerk of the Commission Sullivan. The meeting was opened with the Pledge of Allegiance and a moment of silence. None of the Commissioners requested that any of the Consent Items be removed from the agenda for discussion. Minutes It was moved by Commissioner Jordan, seconded by Commissioner Stiff, that the minutes of the regular meeting of November 17, 1986, be approved as submitted. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Jordan, Commissioner Stiff. Commissioner Martel, Commissioner Vant Hull and Mayor Mathre; those voting No, none. Discussion - Corporation's appl ication for lOR Bonds for ac uisition and renovatIon 0 City Manager Wysocki stated that a copy of a letter from Mr. Manley Goldfine, Zenith Management Corporation, to Commissioner Vant Hull was included in this week's packet. He then noted that Mr. Goldfine and Ms. Karen Meis, Manager of the local Holiday Inn, are present at this meeting. Mayor Mathre requested that Mr. Goldfine submit an update on the status of his purchase of the Holiday Inn. She also requested that he provide clarification of some of the issues, particularly addressing the number of employees. I Mr. Manley Goldfine, Zenith Management Corporation, noted that the letter he had sub- mitted addresses a number of the concerns which have been expressed by the Commission. He then stated that his corporation took over operation of the Holiday Inn on October 23, 1986. He indicated that they currently have 45 employees, 44 from this area and one manager who was transferred in. He noted that during the public hearing he had responded that 95 percent of the employees would be from this area; and that percentage is actually higher. Mr. Goldfine stated that he has been able to determine there were approximately 65 people previously working at the Holiday Inn, with 80 to 85 employees during the summer months. Manley Goldfine then stated that he had not conducted a survey of the number of employees who were employed at the Holiday Inn at the time his firm purchased it. He did state that, when the remodeling has been completed and they begin promoting the facility, he still anticipates hiring of 20 additional employees, with a seasonal high of 100 to 105 employees. He indicated that will hopefully occur next summer, although the remodeling may not be totally completed by that time. Mr. Goldfine stated that he had reviewed and analyzed the following figures for the period November 1, 1985 through October 31, 1986: (1) duri ng the 12-month period, the motel averaged 55.8 percent occupancy, with 59 full nights; (2) during the period May 1 through October 31, the motel averaged 71 percent occupancy, with 56 full nights. (3) during the period November 1 through April 30, the motel averaged 39 percent, with three full nights. He then stated that the winter occupancy rate equals 54 percent of the summer occupancy rate; I and if that percentage is applied to the 85 employees during the busiest time, it computes to 45 employees during the slow time. Mr. Goldfine further noted that the corporation is also facing the closure of some of the rooms for five months of remodeling, beginning in January. He stated that his goal is to increase the summer occupancy rate to 85 percent after the remodeling has been completed. Mr. Goldfine stated that he has projected a remodeling budget of $778,000, of which he anticipates $217,000 to be for labor. He noted that those monies will be paid to contractors as well as employees. which will help the local economy. 11-24-86 ------.-- ----- - 49lt Mayor Mathre asked if the jobs are full-time, part-time, or both. She also asked if a full-time position is considered to be 40 hours per week. Mr. Goldfine stated that in the motel business many of the positions are part-time, noting that at the present time most of the positions are full-time. He then indicated that employees working 30 hours or more per week are considered full-time for the purpose of figuring fringe benefits. He also stated that the average employee works 40 hours per week, although housekeeping personnel often work 37 to 38 hours while restaurant and bar employees I often work 44 to 48 hours per week. Mayor Mathre then asked Mr. Goldfine if he anticipates the fluctuations in employment to continue after the first year. Mr. Goldfine stated that fluctuations will still remain, although he plans to promote ski trips to increase the winter occupancy rate. He then noted that the restaurant and bar business is more steady than the motel portion because local business utilizes those facilities. Mayor Mathre stated one of the criteria in the requested use of lOR bonds was economic development. She then asked Mr. Goldfine to describe how this is an economic development type project. Manley Goldfine stated that the tourist industry is important to Bozeman. He then noted it is essential to retain a Holiday Inn franchise motel in Bozeman; and the facility must be upgraded to retain that franchise. Commissioner Vant Hull asked if there are any performance requirements under this program, similar to those for other programs. Mr. Richard Miller, Vice President of Dain Bosworth in Minneapolis, stated that he is working on the sale of Industrial Development Revenue bonds for this project. He noted it is important to maintain a good quality franchised motel name in a community because it draws tourists, and it shows that a community is serious about its tourism and economic future. He then noted that tourism and education are the two major industries in this community. Mr. Miller then reminded the Commission that the lOR bonds are backed only by corporate guarantees from the Zenith Management Corporation as well as personal guarantees from the I individuals involved. He also noted that the bonds will be sold to private investors, not to the general public. Mr. Goldfine stated there are no guarantees on their performance under this MEDB program. He then stated that his corporation will perform to the best of its ability; and they plan to be an asset to the community. Commissioner Vant Hull noted that during the public hearing she had asked about the number of employees, including whether existing employees would be retained. She then expressed concern that the Commissioners have received calls from many of the former employees indicating that they have been laid off. Mr. Goldfine stated that his corporation purchased the building and the fixtures from Allen & O'Hara, Inc., but they had no rights to the employees. He noted that he also had to purchase the franchise from Holiday Inn. Mr. Goldfine then stated that a transition team, including the current manager, came in and did interviews and hiring. He noted that 39 of the 45 current employees previously worked at Holiday Inn. Commissioner Stiff stated that this discussion has been skirting the primary concern. He noted that a number of the Commissioners did not anticipate that all of the employees would be dismissed, with some being subsequently rehired. He also noted that many of those rehired were those with shorter service time, while those who had been employed at the Holiday Inn for longer times are now looking for jobs. He suggested that the employees should have been given an opportunity to prove themselves, rather than the approach which was used. The Commissioner then stated that he does not believe that action is the way to bui Id economic development in a I community. Ms. Karen Meis stated that at least two of the employees rehired have over ten years of experience with the Holiday Inn. Commissioner Jordan noted the issue is the people. He noted that if the applicant had used his own $6 million, he could do anything he wanted; however, he has chosen to use lOR bond monies. The Commissioner stated that many of those who were employed by Holiday Inn 11-24-86 495 were supporting families, which is not possible at $3.35 per hour. He then stated he had assumed that the employees would remain, and twenty more would be added in the future. Commissioner Martel stated he feels there is no guarantee that there wouldn't have been any cutbacks in the number of employees if Allen & O'Hara had retained ownership. He a I so noted it is important to run the motel as a business; and many business decisions must be made. Commissioner Vant Hull stated that when she requested information on current and past payrolls, she was told that information was confidential. She was also told that it was I impossible to get information on the number of past employees as well as the past payrolls. Mr. Manley Goldfine stated he can provide the Commission the current payroll figures; however, he does not have the payroll figures from Allen & O'Hara nor the number of employees. He then indicated that if the Commission is interested, he could probably make inquiries and obtain that information. Manley Goldfine stated that he contacted six or seven motels to determine their wage scales so that he could be competitive. He then submitted to the Commission the following information: (1) the average wage for a desk clerk is $3.35 to $4.00 per hour; the Holiday Inn starts at $4.25 and goes to $4.75 after a year; and (2) the average wage for a housekeeper is $3.35 per hour; the Holiday I nn starts at $3.60 and goes to $4.00 after a year. He also noted that the hospitalization package and other fringe benefits are available to those employees working over thirty hours per week. Commissioner Stiff asked if the carry-over employees will be given credit for the time that they worked for the Holiday Inn under Allen & O'Hara; and Mr. Goldfine indicated they will not. Commissioner Vant Hull noted the original question a couple of weeks ago was whether the Commission wishes to write a letter to the Montana Economic Development Board concerning this application. The Commission concurred that discussion on that item should be placed on next week's agenda. Mayor Mathre requested that this item be placed on the agenda next week for discussion I on whether to send a letter to the Montana Economic Development Board for their consideration. Break - 2: 50 to 2: 55 p. m. Mayor Mathre declared a break from 2:50 p.m. to 2:55 p.m., in accordance with Commission policy established at their regular meeting of March 14, 1983. provision This was the time and place set for the decision on the Zone Code Amendment requested by the City-County Planning Staff to require a 25-foot setback along all property lines abutting the City's linear park (measured 7i feet from the centerline, from the intersection of South Church Avenue and East Story Street to the intersection of South Third Avenue and Kagy Boulevard) . City Manager Wysocki reminded the Commission that the public hearing on this Zone Code Amendment was opened on November 3 and was closed at the November 17, 1986 meeting. Commissioner Vant Hull noted that Commissioner Martel had distributed copies of a memo to all of the Commissioners after the packets had been distributed on Friday. She then stated she feels the procedure followed has been correct, noting that members of the City-County Pla~ning Board indicated concern about development along the linear park. She noted another concern expressed was that adjacent property owners were not notified; however, the required advertisement was placed in the newspaper and one of the adjacent property owners put a post I with several information sheets on the public hearing in the linear park; and most of those sheets were taken. She further stated that she had contacted many of the residents along South Black Avenue personally to let them know about the public hearing. She noted that, although they did not protest the proposed Amendment, they did indicate an interest in maintaining their privacy. Commissioner Vant Hull then stated that several of the Commissioners have indicated an interest in modifying the Zone Code Amendment, particularly in the setback requirements; and she feels that changes which would protect the City as well as the property owners would be in 11-24-86 --------- --- 495 order. She suggested that the Commission consider adopting modifications which are small enough to be adopted without any additional public hearings yet large enough to protect the people involved, including the private property as well as the linear park. Commissioner Stiff noted that the staff has discussed some of the Commission's concerns and asked that they submit any comments prior to further Commission discussion. Senior Planner Marcia Elkins stated the staff has discussed the concerns expressed during the public hearing and has prepared four different drawings for Commission con- I sideration. She then presented those drawings to the Commission as follows. (1) This drawing shows a typical lot along South Willson Avenue, measuring 90 feet by 150 feet. She noted that the drawing also shows the area which would be affected by the proposed Zone Code Amendment, which would establish a linear park setback extending 32* feet from the centerl ine of the park. (2) The second drawing shows the existing setbacks in most of the residential zones, typically being 25 feet in the front yard, 8 feet in each side yard, and 20 feet in the rear yard. She then noted that the land purchased from the Milwaukee Railroad by the individual property owners is considered a separate tract, with a public right-of-way running along one side; therefore, that 17i-foot strip is considered the front yard for that tract, allowing for no construction. The Senior Planner stated that the proposed Zone Code Amendment does not adequately address the problems created by this situation, noting those problems were not discovered until a meeting earlier today. City Manager Wysocki noted that the lot line between the two parcels can be erased through the subdivision amendment procedure; however, the property owners must initiate the action, not the City. He then indicated that process would eliminate the double setback requirements which exist under the current situation. (3) The third drawing is a new proposal, showing a setback 25 feet from the centerline of the linear park. She noted this proposal would establish a clean boundary along each side of the park, whether the property has been purchased by the individual or not. (4) The fourth drawing is also a new proposal, showing a 20-foot setback from the I property line, which is the same as the existing rear yard setback in most of the residential zones abutting the linear park. She noted this proposal would not provide a clean boundary. Commissioner Jordan stated he feels the entire process of acquiring the railroad right-of-way has been flawed, with many surprises occurring along the way. He then indicated the steps to be followed should have been spelled out early in the process. City Manager Wysocki reminded the Commission that the process of acquiring the railroad right-of-way has spanned several years. He then indicated it is not possible to go back to the beginning and sort everything out; but the City must go forward from this point, determining what must be done to reasonably protect the users of the park as well as the adjacent property owners. Commissioner Stiff noted that dealing with a bankrupt railroad has taken longer than anticipated when the process started; and that is not the City's fault. City Manager Wysocki then recommended that the Commission withdraw the proposed Zone Code Amendment and direct the staff to take the issue back to the Zoning Commission with a list of those elements which it wishes reviewed prior to coming back with a recommended revision. Mayor Mathre expressed an interest in having no height restrictions on shrubbery. She also suggested that the setbacks be modified to 25 feet from the centerline of the linear park, rather than from the edge of the easement. Commissioner Stiff noted that a hedge less than four feet high often doesn't meet the intent of the property owner. He also stated support for a setback 25 feet from the centerline, which will keep the setback requirements within the 50-foot-wide strip of railroad right-of-way I which has been involved from the outset. Commissioner Martel questioned the necessity of a Zone Code Amendment. He noted that the zone code has listed specific rear yard setbacks in the residential zones which the linear park traverses; and he feels those setbacks will provide adequate openness for the park. The Commissioner also noted that the property owners will have the right to take any variance requests to the Board of Adjustment under the existing code. Commissioner Vant Hull noted that the current emergency zoning does not allow for any 11-24-86 -~---_.~- 497 development within fifty feet of the linear park except through the Conditional Use Permit process; and she feels that a permanent zoning should be adopted as soon as possible so that those wishing to construct improvements in their rear yards may do so. The Commissioner then stated she is not concerned about what setback is established because the Board of Adjustment is available to those who wish to construct specific items within that setback. Planning Director Lere asked if the Commission wishes a four-foot height limitation on I fences only; and the Commission concurred that it does. Commissioner Jordan noted that the Commissioners received an advisory opinion on conflict of interest in the packet, and asked if Commissioner Martel should vote on this issue. City Attorney Becker briefly reviewed the written opinion, noting that the legislature has adopted a code of eth ics . He then noted the only case addressing this issue was from Galla- tin County, with the Supreme Court rendering its decision that, as a general rule, a Councilman should not participate in an issue if he has a direct or indirect interest in that issue. The City Attorney then noted that the City of Billings has adopted its own code of ethics. He noted that under that code, Commissioner Martel would not be able to participate on this issue, since not only must he abstain from voting, but from entering into any discussion as well. City Attorney Becker then stated that there is definitely a possibility of conflict of interest in this issue; and if Commissioner Martel were to participate in the vote, it would be an area of attack should this issue enter a courtroom. City Manager Wysocki asked if perceived impropriety should be a consideration. The City Attorney noted that, as an attorney, he must avoid any appearance of impropriety; but that issue is not addressed in the public officials' code of ethics. He then addressed the fiduciary responsibilities of public officials to their constituents, noting that becomes a consideration whenever anyone is in a position of trust. Commissioner Jordan stated the Commissioners should be careful not to flaw the process; and he feels they should have an agreement concerning conflict of interest among themselves. Commissioner Martel stated he feels the City Attorney has done a good job in preparing I this information for Commission consideration. He then indicated he feels this item is different from the case cited because that involved a special improvement district while this issue is a Zone Code Amendment. He stated he also does not have a pecuniary interest in this matter. The Commissioner then stated that he feels the individual Commissioner must make a determination of whether he wants to take the risk and whether he is comfortable in taking action on a specific item. Commissioner Stiff noted that a Commissioner must consider not only his risk, but whether it becomes a risk for the entire Commission. It was moved by Commissioner Stiff, seconded by Commissioner Vant Hull, that the Commis- sion refer the Zone Code Amendment back to the Zoning Commission for further review and possible revision, taking into consideration the following: (1) no height restriction on shrubbery; (2) retention of the four-foot height /imitation on fences; (3) that the setback be 20 feet, measured 7i feet from the centerline, rather than the proposed 25 feet; (4) review of the process for removing the property line which currently exists between the original lot and the 17t-foot strip purchased from the railroad; (5) language reflecting that this Zone Code Amendment applies to all linear parks, not one specified linear park within the community; and (6) that accessory structures be allowed in the back yard, up to ten feet from the property line. 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 being Commissioner Martel. Mr. Ron Newville presented to the Commission a petition containing 61 signatures, stating opposition to the adding of Section 18.50.225, Linear Park Setback, to the Zone Code. Mr. I Newville noted that the cover letter indicates that these 61 signatures represent 70 percent of the adjacent property owners along the Mi Iwaukee Railroad right-of-way. He then stated the cover letter further requests that written notification be made to each property owner prior to any action to change the zoning regulations along the linear park. Decision - Commission Resolution No. 2639 - intent to vacate the alley in Blocks 46 and 49 of the Northern Pacific Addition (north and south of Fridley Street) This was the time and place set for the decision on Commission Resolution No. 2639 entitled: 11-24-86 498 COMMISSION RESOLUTION NO. 2639 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, DECLARING IT TO BE THE INTENTION OF SAID COMMISSION TO VACATE AND ABANDON THE ALLEY IN BLOCKS 46 AND 49 OF THE NORTHERN PACIFIC ADDITION TO THE CITY OF BOZEMAN, MONTANA. City Manager Wysocki reminded the Commission that the public hearing on this Resolution was conducted at last week's meeting. He then stated that he has reviewed the possible effect this proposed alley vacation would have on Mr. Badgley's property and has found there would I be none. He then recommended that the Commission approve the alley vacation, and authorize and direct the staff to proceed with the Ordinance vacating said alley. Commissioner Vant Hull stated she still feels that all vacations of public rights-of-way should be deferred until after the City has had an opportunity to review the feasibility of requiring payment for the land which is vacated. Mayor Mathre noted that the Commission has already directed the staff to review that possibility and submit a report back to the Commission. It was moved by Commissioner Martel, seconded by Commissioner Jordan, that the Commission approve the requested vacation of the north/south alley in Blocks 46 and 49 of the Northern Pacific Addition, and authorize and direct the staff to prepare the Ordinance for said vacation. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Martel, Commissioner Jordan, Commissioner Stiff and Mayor Mathre; those voting No being Commissioner Vant Hull. Discussion - invite prospective consultant to visit Bozeman for preliminary contact re management audit City Manager Wysocki stated that Commissioner. Stiff had requested this item be placed on the agenda. Commissioner Stiff reminded the Commissioners that they have received copies of the letters which he and Mr. Evans, Vice President of Cresap, McCormick and Paget, have exchanged I concerning the possibility of a management audit. The Commissioner noted that in his letter of September 25 to Mr. Evans, he indicated the Commission's concern about the upcoming election, particularly the issues contained in CI-27 and 1-105. He noted that the election has now passed; and CI-27 has been defeated, although 1-105 did pass. Commissioner Stiff then stated that he has requested this item be brought back to the Commission for discussion since the issues which caused it to be deferred have been resolved. He noted that in his letter of August 21, Mr. Evans stated a willingness to come to Bozeman for a preliminary consultation with key officials to determine whether a management study would he worth pursuing, at no cost to the City. The Commissioner then stated he feels the Commission should now make a determination on whether it wishes to pursue this study. Commissioner Vant Hull noted the City has a tape from the NLC Congress of Cities which Mr. Evans made; and he does sound impressive. She then stated that the anticipated cost of the study sounds high. Commissioner Stiff stated that the preliminary review would not commit the City to any costs; but the Commission would have to make a determination on whether to proceed after those results have been submitted. He also noted that if the Commission decides to pursue a management audit, it should go through the process of requesting proposals rather than simply signing a contract after talking to one company. The Commissioner then stated he feels that they have a responsibility to run the City as efficiently as possible. Mayor Mathre noted that problems do exist, particularly because of the limited revenues. She then expressed concern about hiring someone to do a management audit unless she is I convinced there is a specific area that needs to be addressed. The Mayor then stated that this Commission is running a lean government; and management audits are usually geared toward consolidation and elimination of positions, which she is not sure can be accomplished here. She also questioned whether the City would have adequate monies to cover the costs that may be incurred by such an audit. Commissioner Stiff stated concurrence. He then noted that Mr. Evans' letter indicates that if the opportunities are not sufficient to warrant a comprehensive study, they will so 11-24-86 499 indicate. He stated he feels that type of endorsement for the existing management would be good; and it would be at no cost to the City. Commissioner Martel stated support for a management audit. Commissioner Jordan stated he has a strong respect for the City Manager's knowledge and expertise; and he feels that the City has improved a lot over the past four years. He then stated he feels there are good minds in the community with good ideas. The Commissioner I then expressed concern about increasing the number of mills assessed to cover the costs of a management audit. Commissioner Stiff stated he does not feel that property tax monies should be used to cover the costs, but another source of revenue should be utilized. He then suggested that revenue sharing monies or possibly the undesignated reserves could be used to cover the costs. Commissioner Vant Hull stated she does not feel that approving a preliminary study will tie the City into a management audit and the associated costs. Mayor Mathre noted that she does not know what the budget situation will be like with no revenue sharing. She further noted that she doesn't know what the employee salary situation will be next year; however, morale must be considered. The Mayor then reminded the Commission that the political considerations also become involved; and the Commission does not always accept recommendations which would save money because of the political pressure from citizens. She then noted that the City has had a couple of different studies completed during the past few years but has been unable to implement them because it could not afford to. It was moved by Commissioner Vant Hull, seconded by Commissioner Martel, that the Commission proceed with inviting Mr. Evans to visit Bozeman for a preliminary review for a possible management audit, at no cost to the City. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Vant Hull, Commissioner Martel and Commissioner Stiff; those voting No being Commissioner Jordan and Mayor Mathre. Mayor Mathre requested that Commissioner Stiff write a letter to Mr. Evans, indicating that the Commission has approved a preliminary review. I Authorize the absence of Commissioner Martel - December 1, 1986 It was moved by Commissioner Jordan, seconded by Commissioner Stiff, that the Commission authorize the absence of Commissioner Martel from their regular meeting of December 1, 1986, in accordance with Section 7-3-4322(2), M.C.A., due to his attendance at the National League of Cities Congress of Cities. 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. Commissioner Martel abstained. Discussion - FY I items City Manager Wysocki presented to the Commission the following "For Your Information" items. (1) A letter from Stephen Barrett, attorney for Gene Graf, stating that he has withdrawn permission for the public to utilize his property as a portion of the Sourdough Trai I. (2) Agenda and packets for the Zoning Commission meeting to be held on Tuesday, November 25. (3) The City Manager noted that the two garbage trucks ordered a few months ago have been completed; however, one was damaged in an accident outside of Billings. He then stated he has written a letter stating that the City will not accept damaged merchandise; and another truck will have to be constructed. He noted that will delay receipt of the second new truck for probably three to four months. I (4) The City Manager stated the City has received a letter indicating that the fire ladder truck, which was originally to be completed by the end of December, wi II not be completed until at least mid-March. Stable, Inc., Main Mall - one une 30, 1987 11-24-86 - . -- --- -------- 500 It was moved by Commissioner Stiff, seconded by Commissioner Martel, that the Commission approve the Consent Items as I isted 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, I Commissioner Jordan and Mayor Mathre; those voting No, none. Adjournment - 4:22 p.m. There being no further business to come before the Commission at this time, it was moved by Commissioner Martel, seconded by Commissioner Vant Hull, that the meeting be adjourned. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Martel, Commissioner Vant Hull, Commissioner Jordan, Commissioner Stiff and Mayor Mathre; those voting No, none. JUDITH A. MATHRE, Mayor ATTEST: Clerk of the Commission I I 11-24-86