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HomeMy WebLinkAbout1985-09-09 350 MINUTES OF THE MEETING OF THE CITY COMMISSION BOZEMAN, MONT ANA September 9, 1985 ************************ The City Commission of the City of Bozeman met in a work session on the City Manager's recommendations for the Fiscal Year 1985-86 budget in the Conference Room, Municipal Building, I September 9, 1985, at 2: 00 p. m. Present were Mayor Weaver, Commissioner Mathre, Commissioner Vant Hull, Commissioner Anderson, Commissioner Jordan, City Manager Wysocki and Clerk of the Commission Sullivan. Work session on City Manager's recommendations for the FY1985-86 budget City Manager Wysocki provided a recap of the discussions conducted last week and answered some of the questions and concerns expressed. He indicated that the City-County Planning Board will be reviewing the work program for the Planning staff for the upcoming year, including an off-site improvements element and an updating of the zoning regulations, and wi II submit its recommendations to the Commission. The City Manager noted that the State Statutes require that if the employer provides insurance for other employees, the same must be provided for the pol icemen or firefighters, and stipulates that the employer pay no less than the premium in effect as of July 1, 1980 for the employee and dependents. The State Statutes further provide that any additional premium payments negotiated in any bargaining agreement must also be given to the policemen and firefighters. Commissioner Vant Hull indicated she would like to know what the benefits package costs for each category of employee. City Manager Wysocki then indicated that the Worker's Compensation payments are included in the Salaries, Wages and Benefits portion of the various budget units. He then noted that the Departmental Allocations include copier costs as well as computer time and displaywriter time. I The City Manager then noted the County has requested that the City budget $4,000.00 for participation in the Haz Mat van. He suggested that the Commission consider this item during the Capital Improvement Program process. Commissioner Vant Hull asked if the County plans to use General Fund monies for its portion of the costs, expressing concern that such action would result in double taxation to the City residents. The City Manager indicated he has no answer to that question, but stated the City could indicate its intention to participate in this phase. A breakdown of funding and how much the City will be requested to contribute in the entire project will be required before any additional financial commitments are made. The Commission then continued its review of the various budget units, as follows: A-18 Shop Complex. The City Manager noted the largest change in this budget unit is in the Gas and Electric Service line item, because all of those charges are included this year rather than spread to the various budget units which utilize this building. He noted that the gas and electric services for water, sewer and garbage services may be billed back to those enterprise funds to maintain more accurate records of costs involved. Commissioner Jordan suggested that monies be included in the budget to cover the costs of landscaping the area, as well as paint for the old shops on North Rouse Avenue which are now used for storage. He noted the City should comply with its own zoning regulations and what is required of developers. The City Manager stated that monies have been included in the budget for development of the lower yard, including an area for seldomly used materials. The City Manager then indicated that the Contracted Services line item contains monies for janitorial services and repairs. I Commissioner Anderson asked if the total Salaries, Wages and Benefits for the light maintenance man is included anywhere. The City Manager stated that his salary is split among all of the departments involved, based on a pro rata share of the total obtained through historical data developed last year. He noted that those portions need to be added together to obtain the total, which was approximately $21,000.00 last year. Mayor Weaver stated he feels it is unwise to move away from cost accounting methods; and he feels the gas and electricity charges should be made against those budget units which 09-09-85 351 are appropriate. He once again stated he does not feel that buildings comprise an accurate budget unit, since they are not a function of government. A-19 Carnegie Building. The City Manager noted that the Contracted Services line item includes the janitorial services; and the Salaries. Wages and Benefits includes a portion of the light maintenance man's salary. The Commissioners asked no questions. A-20 Light Maintenance. The City Manager stated the amount under Salaries. Wages I and Benefits is the residual amount after the historical data breakdown was applied to the salary. The Commissioners asked no questions. A-21 Recreation Administration. The City Manager stated the amount listed under Salaries, Wages and Benefits is low and must be watched closely. He indicated the amounts listed in that line were based on a 3t percent Increase over last year's actual expenditures; however, the Recreation Superintendent position was filled for only a portion of last year. He noted that other budget units also face this problem and must be carefully monitored. The City Manager then noted that a portion of the Recreation Superintendent's salary is also charged to the Swim Center and Bogert Pool. The City Manager then noted the amount under Contracted Services is for recreation programs. He noted that revenues are generated through various recreation programs; and those constitute an in-and-out activity in the budget. The Commissioners asked no questions. A-22 Swim Center. The City Manager stated the amount budgeted for Gas and Electric Service is higher than last year's actual expenditures but is about the same as the actual expenditures for the prior two fiscal years. He noted that a pool blanket was in place for a portion of last year, but the amount of savings to be realized has not yet been deter- mined. The City Manager then indicated that one of the heater units for the building has serious problems; and he is not certain that the amount budgeted in the Repair and Maintenance of Building line item will cover those costs. Commissioner Vant Hull noted that last year, the Commission was informed that the Swim I Center would incur about $70,000.00 in unrecovered costs, and asked what that amount would be this year. The City Manager indicated that the difference between anticipated expenditures and revenues will be $60,000.00 to $70,000.00 this year. He then indicated that a swimming program will not cover its own costs; and the Commission must determine how much it wishes to participate. Commissioner Anderson noted that the difference between expenditures and revenues has decreased dramatically since four years ago, when the Commission considered closure of the Swim Center. The City Manager then noted that the pool is currently closed for maintenance and has been drained for the first time in three years. He indicated this three-week closure should reduce expenditures slightly. Mayor Weaver noted that the improvements made in the Swim Center have contained the gas and electricity costs over the past three years, rather than spiraling up as in the past. Break - 2:55 to 3:05 p.m. Mayor Weaver declared a break from 2:55 p.m. to 3:05 p.m., in accordance with Commis- sion policy established at their regular meeting of March 14, 1983. Work session (continued) on City Manager's recommendations for the FY1985-86 budget The Commission continued its review, as follows: A-23 Bogert Pool. The Commissioners asked no questions. I A-24 Band. The Commissioners asked no questions. - A-25 Senior Citizen Center. The City Manager noted that the maintenance contract for the elevator will begin this year, after the one-year warranty expires. The Commissioners asked no questions. A-26 Parks and Playgrounds. The City Manager noted an increase has been projected in the Water and Sewer Service line item, based on the requested water rate increase. The City Manager then indicated that the amount budgeted in Contracted Services includes amounts to cover spraying. tree trimming and removal. He noted that the past two winters have resulted 09-09-85 352 in extensive tree ki llings; and the City crews do not have sufficient time to handle all those problems. The City Manager then indicated that the amount listed under Other is for landfill charges. He also noted that the amount under Machinery and Equipment is for a chain saw and two replacement radios. The Commissioners asked no questions. A-27 Cemetery. City Manager Wysocki stated the amount under Rents and Leases will, .cover the costs of a lease/purchase for a large mowing machine. Commissioner Vant Hull suggested the City may wish to seek cooperation with the County on this type of equipment; I and Commissioner Anderson noted that the School District and MSU should also be considered. Mayor Weaver noted the anticipated revenues from sale of plots is $29,000.00; and the inter.est income from the Cemetery Perpetual Care Fund is $42,000.00. He noted that total is about $50,000.00 less than anticipated expenditures and questioned how much City participation there >should be in the cemetery operations. The City Manager indicated he feels the cemetery furiction should break even. He noted in some cities it is handled as an enterprise fund, rather than a part of the General Fund. He then indicated that the Cemetery Board has recommended an increase in fees this year and will consider an increase next year which would help this function reach the break-even point. Mayor Weaver asked if it is a consensus that the cemetery should be self-supporting; and Commissioner Mathre stated disagreement. Commissioner Jordan then asked if the proposed fees would support the cemetery if that funcHon were in a break-even position at this time. The City Manager indicated that the proposal would increase the fees to cover the actual costs; but at some time, the community will be covering the costs of maintenance. He noted that under the proposed fee structure, a portion of the monies for maintenance would be used for operations immediately while a portion would be placed in the Cemetery Perpetual Care Fund, from which only the interest may be used for maintenance. The City Manager then indicated that the amount budgeted in Machinery and Equipment would cover the costs of new mower motors and fencing. . ". Commissioner Anderson noted the amount budgeted in Water and Sewer Services is high I arid asked if drilling of a well for irrigation should be considered. The City Manager indicated that the cemetery is one of the most logical City locations for a well. He noted the costs involved must be determined to see if it would be beneficial. A-28 Library. The City Manager noted that the increase in the Salaries, Wages and BenefHs includes a full year1s salary for the Reference Librarian and a higher increase for the Director. He noted that the Other line item is to cover the purchase of books. He then noted that the amounts listed in the capital section should be moved up one line. Commissioner Anderson noted that the proposal from the Library Board provides for a typist to work 15 hours per week, while the Director does his own typing. She asked if it would be possible to increase the amount budgeted so that the Director can be free to do other work. The City Manager indicated that another portion of the budget can be reduced to cover those additional costs, if the Commission so desires. Commissioner Vant Hull noted that when the Library was constructed, $116,000.00 from the bond proceeds was utilized for the purchase of City land for the library. She then suggested that the functions now utilizing the Carnegie Building, which is the former library, be charged rent, with those monies going to the Library. City Manager Wysocki expressed concern with earmarking revenues into the General Fund. He also noted that, although the monies were originally taken from the bond proceeds, the General Fund is now paying for the purchase through the budgeting process and the debt retirement process. Mayor Weaver noted that the Library has a low number of books available to service the area; and it would take a substantially larger book budget to bring the number up to standard. I Commissioner Mathre noted that formation of an extraterritorial district may be helpful. The "City Manager noted that the Library has $6,500.00 in County Revenue Sharing monies, as well as monies in the Library Trust Fund for purchase of books in addition to the $19,000.00 listed "in the budget unit. Commissioner Jordan asked if the library is being run as efficiently as possibl~, indi- "cating that he feels the check-out system should be reviewed and possibly changed. " - I' ~ 09-09-85 353 Commissioner Jordan then expressed concern about the new hours at the library. noting that students will be unable to use the facility from Saturday afternoon to Tuesday afternoon. Commissioner Vant Hull indicated she has also heard concerns expressed about the new library hou rs . Commissioner Vant Hull then noted that the NLC tape on Volunteerism indicates that a good volunteer program can be established, with a one-half time City employee to supervise the program. She suggested that such an approach may be beneficial for several City services. I A-29 Emergency Preparedness. The City Manager noted that these monies are transmitted to the County. The Commissioners asked no questions. A-30 Public Health. The City Manager noted these monies are also transmitted to the County. The Commissioners asked no questions. A-31 City-County Planning Transfer. The City Manager stated this represents the General Fund's participation in this activity. He noted it is also a balancing factor for this budget unit. A-32 Annual Audit. The Commissioners asked no questions. A-33 Snow Removal Enforcement. Commissioner Anderson asked if there is sufficient historical data for this budget unit. The City Manager stated the figures should be relatively accurate. He noted there is also a revenue backing for this budget unit. A-36 Transfer to C.I. P. The City Manager noted that the $56,000.00 Gas Tax Apportionment transfer is included in this budget unit. The Commissioners asked no questions. A-47 Highland Blvd. The City Manager stated no activity has taken place in this budget unit. The Commissioners asked no questions. A-51 Automated Flight Service. The City Manager indicated this budget unit is included only because of past activity. The Commissioners asked no questions. A-51 Annexation Criteria Development. The City Manager indicated this budget unit is included only because of past activity. The Commissioners asked no questions. A-53 County Engineering Contract. The City Manager indicated this budget unit is included only because of past activity. The Commissioners asked no questions. I A-55 Storm Drain Plan. The City Manager indicated this budget unit is included only because of past activity. The Commissioners asked no questions. A-59 Centennial Activities. The City Manager indicated this budget unit is included only because of past activity. The Commissioners asked no questions. A-65 Transfers to Other Funds. The City Manager stated this budget unit should include a $96.000.00 amount in the Other line item. The Commissioners asked no questions. A-69 Energy Development. The City Manager noted this was a grant which the City had received. He then noted that this budget unit is included only because of past activity. The Commissioners asked no questions. F- 1 City-County Planning Fund. The City Manager noted the primary change in this budget unit is in Contracted Services, which has been reduced. He indicated that last year's expenditures included $7,000.00 for printing of the new Master Plan. The Commissioners asked no questions. F-50 Suppl ies. The City Manager reminded the Commission that this is an inter- governmental fund, through which all supplies are purchased. He noted that the Other line item includes a $30,000.00 repayment to the General Fund for a loan made prior to Fiscal Year 1984. Commissioner Vant Hull asked if the City is involved in joint purchasing with the School District and the County. The City Manager indicated that the City does joint purchasing with the School District. F-52 Vehicle Maintenance. The City Manager indicated this is also an inter- I governmental fund. He indicated that the mechanic's salary is included in this budget unit; and the activities in this fund are charged back to the user department. Commissioner Vant Hull suggested that City-County cooperation might be beneficial In this item. 09-09-85 35ft' Break - 3:50 to 4:05 p.m. Mayor Weaver declared a break from 3:50 p.m. to 4:05 p.m., in accordance with Com- "'Lpljl~~ion policy established at their regular meeting of March 14, 1983. Roll Call; Pledge of Allegiance and Moment of Silence; Minutes The City Commission of the City of Bozeman met in regular session in the Commission ~9c;>m, Municipal Building, September 9, 1985, at 4:00 p.m. Present were Mayor Weaver, Commis- I sioner Mathre, Commissioner Vant Hull, Commissioner Anderson, Commissioner Jordan, City Manager Wysocki and Clerk of the Commission Sullivan. The meeting was opened with the Pledge of Allegiance and a moment of silence. The minutes of the regular meeting of September 3, 1985, were approved as amended. None of the Commissioners requested that any of the Consent Items be removed from the agenda for discussion. Open bids - Water System Improvements, Group IV, Schedules 1 and 2 This was the time and place set for the bid opening for Schedules 1 and 2, Group IV, of \:tp,~ \:'Ja,ter System Improvements. It was moved by Commissioner Mathre, seconded by Commissioner Vant Hull, that the bids for the Water System Improvements. Group IV, Schedules 1 and 2, be opened and read aloud. The motion carried by the following Aye and No vote: those voting Aye being Commis- s~prer Mathre, Commissioner Vant Hull, Commissioner Anderson, Commissioner Jordan and Mayor Weaver; those voting No, none. The following bids were then opened and read aloud: Schedule I Schedule II Total Bid ENGINEER'S ESTIMATE $145,498.00 $184,260.00 $329,758.00 Mark Story Construction I Bozeman, Montana License No. 4911 A $ 96.070.50 $182,395.65 $278,466.15 I ,-.'. Clause Excavating Billings, Montana License No. 5625A $128,865.93 $205,487.40 $334,353.33 Chet Brown and Sons, Inc. Lewistown, Montana License No. 4829A $127,062.00 $213,037.50 $340,099.50 Holm Sutherland Co., Inc. " Billings, Montana License No. 813A $135,877.00 $218,890.00 $354,767.00 Bozeman Sand & Gravel Bozeman, Montana License No. 5777A $146,686.00 $238,543.50 $385,229.50 Rainmaker, Inc. Billings, Montana License No. 5659A $113,670.11 $282,809.82 $396,479.93 Barnard Construction Co., Inc. Bozeman, Montana License No. 4390A $171,105.00 $278,072.50 $449,177 .50 It was moved by Commissioner Vant Hull, seconded by Commissioner Anderson, that the bids be referred to staff for review and a recommendation to be submitted at next week's meeting. The motion carried by the following Aye and No vote: those voting Aye being Com- missioner Vant Hull, Commissioner Anderson, Commissioner Jordan, Commissioner Mathre and Mayor Weaver; those voting No. none. I Decision - intent to annex 1. 925-acre tract known as Tract 1 of cas No. 688, located In the SEk of Section 18, T2S, R6E, MPM (east of South Rouse Avenue and south of East Lincoln Street extended) as provided in Commission Resolution No. 2566 - McRay Evans Annexation This was the time and place set for the decision on the City's intention to annex the McRay Evans Annexation, provided in Commission Resolution No. 2566, as prepared by the City Attorney, entitled: 09-09-85 355 COMMISSION RESOLUTION NO. 2566 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, DECLARING IT TO BE THE INTENTION OF THE CITY OF BOZEMAN, THE INHABITANTS THEREOF AND THE INHABITANTS OF A TRACT OF LAND CONTIGUOUS TO SAID CITY OF BOZEMAN AND HEREIN MORE PARTICULARL Y DESCRIBED, TO EXTEND THE BOUNDARIES OF SAID CITY OF BOZEMAN SO AS TO INCLUDE SAID CONTIGUOUS TRACT WITHIN THE CORPORATE LIMITS THEREOF. I City Manager Wysocki reminded the Commission that it had conducted the public hearing on this item at last week's meeting. He then recommended that the Commission indicate its intention to proceed with the annexation. Commissioner Jordan asked if the City could add a stipulation that if the property is sold. the pasturing of horses would no longer be allowed. He stated he does not feel that horses should be allowed within the city limits, but those nonconforming uses could continue in the future if such a stipulation is not implemented. The Planning Director noted that is a legal question and indicated that the zoning regulations do not address that item. He then stated he wi II review the State Statute to see if this item is addressed. Commissioner Vant Hull noted that the use is what is grandfathered in through the nonconforming use rather than the owner. It was moved by Commissioner Anderson, seconded by Commissioner Jordan, that the Commission authorize and direct the staff to proceed with the necessary steps for annexation of the 1. 925-acre tract known as Tract 1 of COS No. 688, located in the SEt of Section 18, Township 2 South, Range 6 East, Montana Principal Meridian, more commonly located east of South Rouse Avenue and south of East Lincoln Street extended. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Anderson, Commissioner Jordan, Commissioner Mathre. Commissioner Vant Hull and Mayor Weaver; those voting No, none. Decision - intent to annex 2. 027-acre tract located in the SEt of Section 11, T2s, R5E. MPM ~ north side of West Main Street, just west of the Bobcat Lodge} as provided in Commission I Resolution No. 2567 - Stephens Annexation This was the time and place set for the decision on the City's intention to annex the Stephens Annexation, provided in Commission Resolution No. 2567, as prepared by the City Attorney, entitled: COMMISSION RESOLUTION NO. 2567 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA. DECLARING IT TO BE THE INTENTION OF THE CITY OF BOZEMAN, THE INHABITANTS THEREOF AND THE INHABITANTS OF A TRACT OF LAND CONTIGUOUS TO SAID CITY OF BOZEMAN AND HEREIN MORE PARTICULARLY DESCRIBED, TO EXTEND THE BOUNDARIES OF SAID CITY OF BOZEMAN SO AS TO INCLUDE SAID CONTIGUOUS TRACT WITHIN THE CORPORATE LIMITS THEREOF. City Manager Wysocki reminded the Commission that the public hearing on this item was held last week. He then recommended that the Commission indicate its intention to proceed with the annexation. It was moved by Commissioner Jordan, seconded by Commissioner Mathre, that the Commission authorize and direct the staff to proceed with the necessary steps for annexation of the 2. 027-acre tract located in the SEt of Section 11, Township 2 South, Range 5 East, Montana Principal Meridian, more commonly located along the north side of West Main Street, just west of the Bobcat Lodge. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Jordan, Commissioner Mathre, Commissioner Vant Hull, Commissioner Anderson and Mayor Weaver; those voting No, none. I Request - permission to conduct parade along Main Street - Spiritual Assembly of the Baha'is of Bozeman - Sunday, September 15,1985, at 2:00 p.m. City Manager Wysocki presented to the Commission a request submitted on behalf of the Spiritual Assembly of the Baha'is of Bozeman, for permission to conduct a parade along Main Street beginning at 2:00 p.m. on Sunday, September 15, 1985. The City Manager noted that the Chief of Police has reviewed the request and concurred in the recommendation that the parade be limited to the sidewalk only. 09-09-85 35C Commissioner Anderson asked if this restriction to the sidewalks has been discussed with the Baha'is. The City Manager indicated it has not been discussed with the requesting group, but the staff will convey the restriction along with the approval. It was moved by Commissioner Mathre, seconded by Commissioner Vant Hull, that the Commission approve the request submitted on behalf of the Spiritual Assembly of the Baha'is of Bozeman for permission to conduct a parade along Main Street at 2: 00 p.m. on Sunday, September 15, 1985, with the parade to be limited to the sidewalks along Main Street only. The motion I carried by the following Aye and No vote: those voting Aye being Commissioner Mathre, Commis- sioner Vant Hull. Commissioner Anderson, Commissioner Jordan and Mayor Weaver; those voting No, none. Commission Resolution No. 2571 - ballot question re acquisition of ladder truck for Fire Division City Manager Wysocki presented Commission Resolution No. 2571, entitled: COMMISSION RESOLUTION NO. 2571 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, TO SUBMIT TO THE ELECTORATE OF SAID CITY A LEASE OR LEASE/PURCHASE AGREEMENT FOR THE ACQUISITION OF A LADDER TRUCK FOR THE FIRE DIVISION. City Manager Wysocki stated this proposed ballot issue, if approved, will authorize the City to levy up to eight mills for each of the next two years to provide adequate funding for , ;: tHe City to enter into a purchase agreement for a ladder truck for the Fire Division. The City Manager noted that this Commission Resolution will place the item on the November 5 ballot, during the general election; and the levy will be assessed in November 1986 and November 1987 if approved. It was moved by Commissioner Vant Hull. seconded by Commissioner Anderson, that the Commission adopt Commission Resolution No. 2571, authorizing the ballot question to approve a special mill levy to fund the acquisition of a ladder truck for the Fire Division. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Vant Hull, I Commissioner Anderson, Commissioner Jordan, Commissioner Mathre and Mayor Weaver; those voting No, none. Discussion - determination on whether to conduct public hearinq for project for Montana Economic Development Board monies or allow MEDB to conduct said hearing City Manager Wysocki submitted to the Commission a letter from the Montana Economic Development Board, along with a copy of an application which they have received from David C. and Yvonne G. Jarrett. The application is for $170,500.00 for construction of a 4. 800-square- foot commercial building for lease to various retail and service businesses at 2 Tai Lane. The City Manager noted this is a new program, through the "Build Montana" program. He indicated that the State backs an Industrial Development Revenue Bond issue, which is then distributed to, ,small projects for which an I DR would be impractical, after the necessary hearing process has been completed. The program provides that a local governing body must be given the opportunity to conduct the public hearing on the subject application; and if the governing body declifles that opportunity, the staff at the Montana Economic Development Board conducts the publio hearing and submits its recommendation to the Board. The City Manager noted that the City has. no input or responsibility besides the opportunity to conduct the public hearing. City Manage.,. Wysocki then recommended that the Commission allow the staff at the MEDB to conduct tl1e . public hearing. Commissioner Jordan asked if the subject location on Tai Lane is properly zoned for the project. The City Manager stated the only item under consideration at this time is the funding I mechanism for the project. It was moved by Commissioner Anderson, seconded by Commissioner Jordan. that the Commission decline the opportunity to conduct the public hearing on the application submitted by David C. and Yvonne G. Jarrett for $170,500.00 in Montana Economic Development Board monies and authorize the staff of the MEDB to conduct said hearing. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Anderson, Commissioner Jordan. Commissioner Mathre, Commissioner Vant Hull and Mayor Weaver; those voting No, none. 09-09-85 357 Commission Resolution No. 2572 - relinquishing any and all interest in Mystic Lake Dam site to the Forest Service; authorize Mayor to sign: Relinquishment of Appl ication, Entry or Grant; Aqreement with the Forest Service and Bozeman Creek Reservoir Association; and Agreement wIth the State and Bozeman Creek Reservoir AssoCIatIOn City Manager Wysocki presented Commission Resolution No. 2572, entitled: COMMISSION RESOLUTION NO. 2572 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN I RELINQUISHING TO THE GALLATIN NATIONAL FOREST, U.S.D.A. - FOREST SERVICE. ANY AND ALL INTEREST WHICH THE CITY MAY HAVE IN THE WATER STORAGE DAM SITE LOCATED ON BOZEMAN CREEK AND COMMONLY KNOWN BEFORE ITS BREACH AS THE "MYSTIC LAKE DAM" SITE. City Manager Wysocki stated that, in addition to adoption of Commission Resolution, which relinquishes the City's interests in the Mystic Lake Dam site to the Forest Service, the Commission should authorize the Mayor to sign the Relinquishment of Application Entry, or Grant; an Agreement between the Bozeman Creek Reservoir Association. the Gallatin National Forest, U.S.D.A. - Forest Service, and the City of Bozeman, Montana; and an Agreement between the Bozeman Creek Reservoir Association, the City of Bozeman, Montana; the Department of Health and Environmental Sciences and the Department of Natural Resources and Conservation of the State of Montana. The City Manager stated that the Association met this afternoon and voted to authorize the President to sign the two agreements. The City Manager stated that the City was originally asked to reclaim the site after the breaching of Mystic Lake Dam had been completed. He stated that Mr. Jim Moore, attorney representing the Bozeman Creek Reservoir Association, has discussed this matter with the Forest Service and the State; and those agencies have now agreed to accept responsibility for restoration and reclamation of the site at a cost of $5,000.00 to the Association. The City Manager stated that the City's portion of that cost is $2,500.00, as indicated In the Resolution. He then noted that the Resolution also releases the City's interests to entry to the site; however, the Association retains its stored water rights at this time, to be used at some time in the future at another location along Bozeman Creek. He a Iso noted that previous documents I have separated the City from the Bozeman Creek Reservoir Association; and these documents place the City back into the Association. Commissioner Vant Hull asked if the area will be protected from motorized vehicles. The City Manager indicated that the Forest Service may impose any restrictions it wishes. Mr. Jim Moore stated the Association has the stored water right, which is different from a stream right. He noted that until water is stored behind a retaining facility, such as a dam, a stored water right is not utilized. He indicated he will take steps to try to ensure that the Association retains that water right through various efforts. He noted that a recent court case indicates that as long as an owner is working toward development of that stored water right, that right does not need to be relinquished. Mayor Weaver asked if the Association will remain a functioning body. Mr. Moore indi- cated that it will for the purpose of retaining the stored water right. He noted that the Association must indicate that it is taking steps, at least once a year, toward seeking a new dam location to avoid abandonment of the water right. Commissioner Anderson asked if the possible construction of a surge basin along Bozeman Creek or Steve Custer's proposal to drill wells in that area will affect the stored water right. Mr. Moore indicated that those activities wi II have no effect on the stored right. It was moved by Commissioner Anderson, seconded by Commissioner Jordan, that the Commission adopt Commission Resolution No. 2572, relinquishing any and all interests which the City may have in the Mystic Lake Dam site to the Forest Service. The motion carried by the I following Aye and No vote: those voting Aye being Commissioner Anderson, Commissioner Jordan, Commissioner Mathre, Commissioner Vant Hull and Mayor Weaver; those voting No, none. It was moved by Commissioner Jordan, seconded by Commissioner Mathre, that the Commission authorize the Mayor to sign the Relinquishment of Application Entry, or Grant; an Agreement between the Bozeman Creek Reservoir Association, the Gallatin National Forest, U.S.D.A. - Forest Service, and the City of Bozeman, Montana; and an Agreement between the Bozeman Creek Reservoir Association, the City of Bozeman, Montana; the Department of Health and Environmental Sciences and the Department of Natural Resources and Conservation of the State of Montana. The motion carried by the following Aye and No vote: those voting Aye 09-09-85 358 being Commissioner Jordan, Commissioner Mathre, Commissioner Vant Hull, Commissioner Anderson and Mayor Weaver; those voting No, none. Break - 5:05 to 5:15 p.m. Mayor Weaver declared a break from 5: 05 to 5: 15 p. m., in accordance with Commission policy established at their regular meeting of March 14, 1983. Appointments to Historic Preservation Commission I City Manager Wysocki stated that the Commission has received a list of the applicants for the Historic Preservation Commission, which was recently formed through Ordinance No. 1181. Mayor Weaver asked if deferral for a period of one week would create a hardship. Ms. Martha Catlin, Historic Preservation Officer, indicated it would not. Mayor Weaver requested that this item be placed on next week's agenda to allow the Commissioners an opportunity to review the applications more carefully. . Weekly staff report - status of water availability for remainder of summer City Manager Wysocki presented to the Commission a memorandum from Director of Public Service Holmes regarding the status of water availability for the remainder of the summer. He noted that the City currently has 832 acre feet of water remaining in Hyalite Reservoir. Mayor Weaver asked when the City will lift the watering restrictions. The City Manager stated he is not prepared to suggest lifting of the restrictions at this time. City Manager Wysocki then stated that during the upcoming week, 250 miners inches in Bozeman Creek should begin, which will decrease the amount of drawdown in Hyalite Reservoir. Mayor Weaver asked when the new water tank will be on line. The City Manager indicated it will be on line in the very near future. Review of draft resolution prepared by Commissioner Vant Hull requesting that ways to reimburse Cities for services provided to commuters be mvestiqated, to be suomitted to the Montana I Leag4e of Cities and Towns City Manager Wysocki presented to the Commission a draft resolution, as prepared by ,Commissioner Vant Hull, to be submitted to the Montana League of Cities and Towns for considera- tion at the annual convention. He noted the proposed resolution requests that ways to ade- quately reimburse cities for services provided to commuters be investigated. but does not ,suggest any specific method. Commissioner Jordan expressed concern that this resolution might be construed as suggest- ing a payroll tax and indicated that he would not support such a proposal. He noted that usually a payroll tax is assessed against the employer as well as the employee; and he feels such a proposal would make the business community angry. Mayor Weaver indicated he cannot support a payroll tax, either; and he will not vote for this resolution if that is the basis for it. He also noted that service districts are now available to prov.ide funding for certain City services. Commissioner Anderson asked if a payroll tax has been tried in any city in Montana. Commissioner Vant Hull noted that there is no point in trying a payroll tax until the Legislature approves it as an option for generating revenues. Commissioner Mathre noted that cities with self-government powers could implement a payroll tax since it is not expressly forbidden, but she knows of no city that has tried it. Commissioner Mathre then expressed concern with the last clause. which suggests a joint MACOI LCT legislative committee, since this item will be presented to the League of Cities and Towns only for consideration. The Commission concurred; and the last clause was deleted from I the draft resolution. It was moved by Commissioner Vant Hull, seconded by Commissioner Anderson, that the Commission approve the draft resolution as revised, and direct the staff to submit the resolu- tion to the League of Cities and Towns office as soon as possible, for consideration at the annual meeting. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Vant Hull, Commissioner Anderson and Commis.sioner Mathre; those voting No being Commissioner Jordan and Mayor Weaver. 09-09-85 359 Review of draft letter prepared by Commissioner Vant Hull to the Fire Division statinq appreciation for efforts on buildmg maintenance City Manager Wysocki presented to the Commission a draft letter prepared by Commissioner Vant Hull expressing appreciation to the Fire Division for their efforts on the building maintenance at Fire Station No.2. It was moved by Commissioner Anderson, seconded by Commissioner Jordan, that the I Commission approve the letter as drafted and directed the Clerk of the Commission to prepare the letter for all Commissioner signatures. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Anderson, Commissioner Jordan, Commissioner Mathre, Commissioner Vant Hull and Mayor Weaver; those voting No, none. Confirmation of City Manager's appointment to Police Commission City Manager Wysocki submitted to the Commission his appointment of Mr. Jim Drummond to replace Harold Hogg on the Police Commission, with a three-year term to expire on April 30, 1988. Commissioner Vant Hull noted that several applications were received for this position; and the City Manager indicated that his appointment was based on the applications only, not on personal interviews. She then stated she cannot support an appointment that is made without conducting personal interviews. City Manager Wysocki stated this is the only appointment which he submits to the Commission; and all other appointments to boards and commissions are made by the Commission. He then noted that the Commission does not interview all candidates prior to making a decision, although some of the members of the Commission may telephone some of the candidates or references. Commissioner Jordan stated he feels the City Manager has recommended the individual he feels is best for the position and indicated his support for that recommendation. Commissioner Anderson asked the City Manager if he intends to write letters of appre- I ciation to the remaining candidates. The City Manager stated he plans to, and wi II keep the applications on file for future consideration. It was moved by Commissioner Jordan, seconded by Commissioner Mathre, that the Commission confirm the City Manager's appointment of Jim Drummond to replace Harold Hogg on the Police Commission, with a three-year term to expire on April 30, 1988. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Jordan, Commissioner Mathre. Commissioner Anderson and Mayor Weaver; those voting No being Commissioner Vant Hull . Authorize absence of Commissioner Anderson - September 30, 1985 It was moved by Commissioner Mathre, seconded by Commissioner Vant Hull, that the Commission authorize the absence of Commissioner Anderson from the regular Commission meeting of September 30, 1985, in compliance with Section 7-3-4322(2}, M.C.A. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Mathre, Commissioner Vant Hull, Commissioner Anderson, Commissioner Jordan and Mayor Weaver; those voting No, none. Discussion - FY I items City Manager Wysocki presented to the Commission the following "For Your Information" items. (1) A letter from Engineering Officer Neil Mann concerning painting of the water tank. He noted that the City has a warranty that the contractor must maintain; and that should be I considered when reviewing options for repainting of the tank. (2) The City Manager reminded the Commission that the Montana League of Cities and Towns annual convention will be held in Missoula next week. (3) Commissioner Jordan stated he has received several calls about vehicles driving to the garden plots in Langohr Park, as well as calls about coverings from the gardens being blown in neighboring yards. He then asked who is responsible for policing the park and the gardens. 09-09-85 360 City Manager Wysocki stated he will review the matter and possibly suggest that the lease be revised to place restrictions on covering of garden items. (4) Mayor Weaver asked about the status of acquisition of the Milwaukee Railroad right-of-way for a linear park. He noted a group has indicated interest in participating in improvement of the linear park and would like to know the status of acquisition of the property. The staff will contact John Scully to obtain an update on the status of the right-of-way I acquisition. (5) Commissioner Vant Hull asked for an update on pending legal matters after the League convention. Mayor Weaver requested that this item be placed on the agenda within th i rty days. Consent Items City Manager Wysocki presented to the Commission the following "Consent Items." Application for Raffle License - Eagles Lodqe #326 - October 21, 1985; to be raffled is one rifle valued at $305.00 Application for Gaming License - The Cannery Lounqe, 43 West Main Street - one viaeo draw poker machine - through June 30, 1986 Approval of loans Tor Community Development Block -crant proQram as recommended by the Loan Review Committee Proclamation - "Constitution Week" - September 17-23, 1985 Building I nspectlon Division report for August 1985 It was moved by Commissioner Mathre, seconded by Commissioner Vant Hull, that the Commission approve the Consent Items as listed, and authorize and direct the appropriate persons to complete the necessary actions. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Mathre, Commissioner Vant Hull, Commissioner - Anderson and Mayor Weaver; those voting No being Commissioner Jordan. Recess - 5:45 p.m. Mayor Weaver declared a recess at 5: 45 p. m., to reconvene at 7: 00 p. m., for the I purpose of conducting the scheduled public hearings and completing the work session on the City Manager's recommendations for the FY1985-86 budget. Reconvene - 7:00 p.m. Mayor Weaver reconvened the meeting at 7:00 p.m. for the purpose of conducting the scheduled public hearings and completing the work session on the City Manager's recommenda- tions for the FY1985-86 budget. Public hearing - Tentative Appropriation Ordinance for Fiscal Year 1985-86 This was the time and place set for the public hearing on the Tentative Appropriation Ordinance for Fiscal Year 1985-86, entitled: 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, 1986. Mayor Weaver opened the public hearing. City Manager Wysocki stated the total amount of the proposed budget is $8.355,045.00, with revenues to back the anticipated expenditures. Of that amount $1 t 616,772.00 for the General Fund is to be generated through a property tax levy of 71.92 mills, compared to 72.88 I mills levied last year. A total of 111.64 mills are to be levied under the Tentative Appro- priation Ordinance, which generates revenues for the General Fund, along with special fund levies and servicing of the General Obligation Bond issues t compared to 111.36 mills levied last year. The City Manager noted that the increase in the value of the mill from $21,182.00 last year to $22,480.00 estimated this year has helped to maintain the proposed mill levy basically the same. 09-09-85 361 Mr. AI Stiff, former Commissioner and current candidate, expressed concern about the use of Revenue Sharing Fund monies in the operating budget for the City, indicating that he feels those monies should be utilized to support the Capital Improvement Program. He also expressed concern about the use of salt on streets, noting it appears there is nothing in this budget to address the public comments about this item. He also noted the City must determine the cost benefit for this item, rather than considering only the amount that use of an alter- I native method will cost the City. He suggested the possible formation of an ad hoc committee to address the matter, particularly in light of the community unrest. Mr. Stiff noted that the City's finances are more all encompassing than the documents before the Commission at this time; and he feels the total financial picture must be considered. He noted that the property taxes assessed to support the City's operations, the charges for water, sewer and garbage, and the County's tax assessment are all intertwined and have an impact on how much it costs the residents to live within the city limits. He then listed his fourth concern. which is the availability of water. He indicated that he feels the City should have reacted to this summer's water shortage by imposing watering restrictions earlier than it did. City Manager Wysocki responded to Mr. Stiff's concerns, as follows. He noted that approximately $8,000.00 in reserves were utilized in the FY1984-85 budget to cover unantic- ipated expenditures; and that figure is lower than in the past. He also noted that $158,000.00 in Revenue Sharing Fund monies is proposed in this budget, compared to the $200,000.00 used in last year's budget. The City Manager then indicated the staff has pursued alternative methods for removal of snow on the streets but has found no feasible and inexpensive manner to replace the use of salt. He also noted that the City has a responsibility to maintain the streets in a manner which accommodates public safety; and that may require the use of salt at times, particularly at intersections where slowing and stopping maneuvers are required. He then indicated that the Iowa State Highway Department has been testing the use of CMA (calcium magnesium acetate), I but the product is not yet avai lable commercially. He noted that CMA is a non-corrosive chemical, which should not have any effect on the streams. The City Manager then indicated he does not feel the City should spend money for the purchase of snow removal equipment if there is a possibility of CMA becoming commercially available within the next two or three years. He noted replacement of existing snow removal equipment, such as the 1942 dump truck, should be considered during this year's Capital Improvement Program budgeting, however. City Manager Wysocki stated that this year's budget does reflect a plan to use more sand and less salt on the streets during the upcoming winter. It does not, however. provide for the extensive removal of snow from the streets. City Manager Wysocki stated that two items are needed for the water system, a surge basin or day storage facility, and the acquisition of additional stored water rights. He noted the City has indicated its interest in the expansion of the Hyalite Reservoir; but he feels that a storage facility in another drainage may also be beneficial for the City's water supply. The City Manager then indicated that he feels that the watering restrictions imposed have been adequate to meet the City's needs. He noted the City has over 800 acre feet of water remaining in Hyalite Reservoir going into the winter. He also indicated that the reservoir was at full pool in mid-June. although the run-off did not last as long as usual this summer. The City Manager then stated the City may need to purchase water from Hyalite Reservoir during the winter, but that is a common situation during the winter months. He noted that this summer the staff has become more aware of the weaknesses in the water system; and priorities for spending monies to improve the system may have been changed. I City Manager Wysocki stated that during preparation of his recommendations, he faced the question of utilizing Revenue Sharing Fund monies to provide adequate revenues or propos- ing an additional millage. He indicated that he chose to recommend utilization of Revenue Sharing Fund monies, since the general liability insurances increased so dramatically and the additional millage has been included to increase the balance in the SI D Revolving Fund. Mr. Greg Beardslee, resident of Bozeman, appeared before the Commission once again to express his concern about the use of salt on the streets. He noted other areas have found satisfactory alternatives; and he feels that Bozeman should consider some of those options. 09-09-85 , 362 Mr. Rick Schlegel, candidate for Commissioner, stated that while he was an MPA Intern under former City Manager John Evans, one of the items determined to limit the growth of the city was the water supply. He noted that any improvements to the water system or to increase the water supply available to the City will be very costly. He also noted the City should be seeking other sources for water. City Manager Wysocki noted that during the past year, the Commission has implemented a policy requiring water rights or cash-in-Iieu payments for water rights for all annexations. I The City Manager also noted that the City has tried unsuccessfully three times to drill a well at Bogert Park that wi II provide adequate water for the park. He stated the City should possibly consider relocating that attempt to the Cemetery and Lindley Park for irrigation purposes; and the additional water remaining in the water system could then be used to service additional residences. Mr. Walt Martel, candidate for Commissioner, asked if the City must rely totally on stream water rights after September 15, rather than storage rights in Hyalite Reservoir. He also asked if the City will be required to purchase water from its 800 acre feet after September 30, expressing concern that such a requirement would place the City in a position of purchasing the water twice. The City Manager noted that the City does purchase stored water from Hyalite Reservoir at a specified rate per acre foot. He indicated he does not know if the City must p.urchase water from its own stored rights after September 30. Mr. Martel then expressed concern that the City is letting some of its stream rights run by the water filtration plant uncaptured. The City Manager noted there are times when the City bypasses water because the system is filled. He stated that a surge basin would provide storage so that when the drawdown is conducted, the water could be stored until the filtration plant could process it, thus avoiding diversion of the water. Walt Martel suggested that wells be drilled to provide an additional water supply for the City's system. The City Manager noted that is possible. However, a certain amount of treatment must be done, so a small filtration system would need to be attached to each well. Also, the water must enter into the City's system at a certain pressure, so a pump must be attached to I each well to achieve the needed pressure. City Manager Wysocki stated the City must put itself in a position to pay for what it has a I ready done. He noted that the current request before the Public Service Commission is for an 80 percent increase in the water rates, which will generate adequate revenues to pay for existing items. At the present time, the City does not comply with the bond covenants and, therefore, does not have the capacity to borrow any more monies for any other water projects. The City Manager also noted that during the past fiscal year, the General Fund loaned $285,000.00 to the Water Fund for operation of the water filtration plant; and those monies must be repaid in a timely manner because the General Fund is supported by taxpayers while the Water Fund is supported by user fees. The City Manager then noted that budget unit J-l. Water Operations, lists $144,072.00 in the Other line item. That amount includes a $128,000.00 payback to the General Fund on the loan as well as monies for the purchase of additional water rights. Mr. Stiff expressed concern about the large amounts listed under miscellaneous cate- gories in the budget recommendations. He suggested that footnotes may be beneficial in pro- viding explanations for those large amounts. The City Manager noted that another item to be considered in future budgets might be a notation on the sources of funding for the various budget units. AI Stiff then expressed concern about the 5 mills to be levied for the SID Revolving Fund. He suggested that with the pending Valley Unit settlement, the City should carefully review the Impacts and costs to the City, along with its position after the settlement. The City I Manager indicated it is premature to consider that item. He then indicated that the proposed 5-mill levy will generate about one-fourth of the revenues necessary to put the SID Revolving Fund balance in compliance with the State Statute. Also, the General Fund has loaned about $103,000.00 to the SID Revolving Fund, which must be repaid as soon as possible. The City Manager then stated that the monies from the proposed mill levy and the pending settlement will not put the SID Revolving Fund balance at more than 5 percent of the outstanding SID bonds. 09-09-85 3G3 Mr. Greg Beardslee asked if water rates will level off or will continue to spiral in the future. The City Manager stated that the City had not had a rate increase in 22 years; and needed improvements were not made to the system. Those improvements must now be made; and the fees must be increased to generate adequate revenues to cover the costs. The City Manager indicated that with the current water rate request, the system should become self- supporting and require only cost of living raises in the future. I Walt Martel noted there are large fluctuations in the figures in the Water Operations budget, particularly in the Contracted Services line item. The City Manager explained that the water rate study was done by CH2M-Hill during the past fiscal year, at a cost of $37,000.00 to the Water Fund. The monies in that line item for this fiscal year include monies to pay the rate attorney to appear before the PSC, as well as representatives from CH2M-Hill. Mr. Martel then asked about what is included in the Operating Supplies line item. The City Manager indicated that any piece of equipment costing less than $250.00 is included in that line item. He also indicated that in the Water Treatment Plant budget unit, the cost of chemi- cals is included. Mr. Martel then asked if the City has any salt stockpiled this year and the cost. The City Manager stated the City has about 70 tons stockpi led, at a cost of $38.00 per ton. He noted other compounds cost about $480.00 per ton; and the CMA could be marketed at about $100.00 per ton plus freight. Mayor Weaver closed the public hearing. Adoption of the Appropriation Ordinance for Fiscal Year 1985-86 will be considered at the September 23, 1985 meeting. Break - 8:25 to 8:35 p.m. Mayor Weaver declared a break from 8:25 p.m. to 8:35 p.m., in accordance with Commission policy established at their regular meeting of March 14, 1983. Public hearing - Tentative Capital Improvement Program Appropriation Ordinance for Fiscal Year 1985-86 I This was the time and place set for the public hearing on the Tentative Capital Improve- ment Program Appropriation Ordinance for Fiscal Year 1985-86, entitled: ORDINANCE NO. AN ORDINANCE OF THE CITY OF BOZEMAN, MONTANA, APPROPRIATING CITY FUNDS FOR VARIOUS CAPITAL ITEM EXPENDITURES FOR THE PERIOD JULY 1, 1985 THROUGH JUNE 30, 1986. Mayor Weaver opened the public hearing. City Manager Wysocki stated that the Tentative Capital Improvement Program Appro- priation Ordinance places $14,801.00 in new Revenue Sharing Fund monies into an Undesignated Reserve for future projects and $56,000.00 in Gas Tax Apportionment monies into Long-term Road Improvements to be determined. He noted these monies would be combined with monies previously placed in those categories. The City Manager then briefly reviewed the monies in the Capital Improvement Program prior to this Ordinance, as follows: Designated Reserve - equipment $109,000.00 Long-term Road Improvements 100,000.00 Carry-over for designated projects 84,691.62 Undesignated Revenue Sharing reserve 93,500.00 Undesignated reserve 9,603.55 Total $396,795.17 The City Manager indicated that the staff has not yet prepared recommendations for the I use of these funds, but will submit a recommendation as soon as possible. He noted that some of the monies must be spent in very specific categories. Also, the City has a five-year capital plan which must be carefully considered in preparing the recommendations for use of these monies. He further noted that Revenue Sharing Fund monies must be spent within three years or they return to the federal government. The City Manager then indicated one of the items for which he will request consideration is a dump truck to replace the existing 1942 truck; and those monies are currently listed in the Designated Reserve - Equipment. City Manager Wysocki 09-09-85 361+ then indicated this public hearing is being conducted because Federal Revenue Sharing Fund monies are involved. Mayor Weaver asked for input from those in attendance at the meeting. Walt Martel stated he feels the Capital Improvement Program pertains to needed equip- ment and projects for the City's benefit; and determination on the use of the funds is best left to the City administration, since they are closely involved. Mr. Beardslee asked if stop signs would be a part of the CIP. He noted there are a lot I of uncontrolled intersections; and he feels additional signs would be beneficial. The City Manager indicated that the CIP includes items over $1,000.00; but he indicated that if a number of signs are included, the costs could easily be over that amount. AI Stiff noted that he does not have all of the history in the Cl P, so he does not wish to comment on the item. He also noted the CIP process is confusing to the public. He once again expressed concern about the use of Revenue Sharing Fund monies in the operations portion of the budget, rather than in the Capital Improvement Program. Mayor Weaver indicated that he is pleased the City has set aside $156,000.00 in Gas Tax Apportionment monies during the past two fiscal years, to be used for acquisition of right-of- way and improvement of new roads. Commissioner Mathre noted the City has received a specific request for the use of Capital Improvement Program monies. She reminded the Commission that they have received a letter from the Gallatin County Commission requesting that the City appropriate $4,000.00 for Phase I of a Hazardous Materials van. She noted that item should be entered into the record for this hearing. Commissioner Vant Hull noted that the City Manager's recommendation lists a 111. 64-mill levy, which is .26 mi II below the certified mill levy from the County. She noted that assessing the additional .26 mill would generate an additional $5,845.55; and that amount in Federal Revenue Sharing Fund monies could then be transferred to the Capital Improvement Program from the operations budget. She then suggested that the Commission consider the additional levy and accompanying transfer from the Police Division -- Salaries, Wages and Benefits to the I CIP. Mayor Weaver closed the public hearing. Adoption of the Capital Improvement Program Appropriation Ordinance for Fiscal Year 1985-86 will be considered at the September 23, 1985 meeting. Work session (continued) on City Manager's recommendations for the FY1985-86 budget The City Manager noted that the Commission must try to finalize its mill levy at this time so that he may submit the figures to the Gallatin County Assessor's office. He noted the two items which have been questioned are raising the proposed mi II levy from 111.64 to 111.90 and decreasing the amount to be levied for the SID Revolving Fund from 5 mills to 4 mills. Following a brief discussion. the Commission concurred that the mill levy should be raised to the 111.90 certified by the County, since that would increase the base budget to which the 105 percent rule is applied each year. The City Manager noted that the increase will raise the General Fund mill levy from 71.92 to 72.18 mills. Commissioner Jordan expressed concern about the use of Revenue Sharing Fund monies in the operations budget, noting that the program is projected to end this upcoming federal fiscal year. The City Manager stated that the monies currently in the Capital Improvement Program could be utilized to supplement the budget for two years, possibly through the use of Gas Tax Apportionment monies to maintain existing City streets, thus softening the blow of that lost revenue source. He also noted the City should receive two additional quarters of Revenue Sharing Fund monies which are not reflected in this budget, since the City has received no I official word on the status of the program. Following a discussion, the Commission determined that the proposed 5 mills should be levied for the Special Improvement District Revolving Fund. It was moved by Commissioner Mathre, seconded by Commissioner Vant Hull, that the Commission direct the staff to transmit the mill levies to the Gallatin County Assessor's Office, increasing the levy for the General Fund to 72.18 mills and the overall total to 111.90 mills. The motion carried by the following Aye and No vote: those voting Aye being Commissioner 09-09-85 365 Mathre, Commissioner Vant Hull, Commissioner Anderson, Commissioner Jordan and Mayor Weaver; those voting No. none. The Commission then continued its review of the various budget units, as follows: G- 1 Comprehensive I nsurance Fund. City Manager Wysocki stated this item was previously discussed during the revenues portion of the budget. He reminded the Commission that the increase in this budget unit is in direct relationship to the increase in insurance I coverage premium costs. Commissioner Jordan asked if the federal or state governments would pass any laws that would help decrease the insurance premiums. The City Manager stated he does not feel that any state laws anticipated the large increase in insurance premiums. He noted that local governments were placed in a high risk category because of the large number of suits which have been fi led against governmental entities. G-51 Cemetery Perpetual Care. The City Manager indicated he had no comments; and the Commissioners asked no questions. G-52 Cemetery Contract Purchases. The City Manager indicated he had no comments; and the Commissioners asked no questions. G-53 Park Land Trust. The City Manager stated the $5,500.00 listed in this budget unit is for small park improvement. He noted the amount of monies to be expended may need to be increased if the City obtains a matching grant for improvement of Jarrett Park. He then indicated that he did not get a current cash balance in this account prior to the Commission meeting. The Commissioners asked no questions. G-57 Centennial Activities. The City Manager indicated he had no comments; and the Commissioners asked no questions. G-65 Handicapped Parking Improvements. The City Manager indicated he had no comments; and the Commissioners asked no questions. G-66 Library Trust Fund. The City Manager reminded the Commission that they approved a $4,000.00 expenditure for books from this fund during the past fiscal year. He I noted the Library has submitted no request for expenditure of monies from this fund during the current fiscal year. The Commissioners asked no questions. H- 1 Local Government Study Commission. The City Manager stated that the Salaries, Wages and Benefits line contains funding for one nine-month position. He noted all other figures contained in the budget unit were requested by the Local Government Study Commission. The Commissioners asked no questions. H-31 SID Construction. The City Manager indicated he had no comments; and the Commissioners asked no questions. H-33 SID Lighting. The City Manager indicated he had no comments; and the Commissioners asked no questions. H-54 SID Bond Sinking Funds. The City Manager indicated he had no comments; and the Commissioners asked no questions. H-55 SID Sidewalk and Curb Funds. The City Manager indicated he had no comments; and the Commissioners asked no questions. J~ 1 Water Operations. City Manager Wysocki noted that most of this budget unit was covered in the public hearing. Commissioner Vant Hull suggested that operation costs could be decreased by not dis- tributing cards and by people reading their own meters. The City Manager indicated that the City should conduct periodic meter readings to verify the accuracy of the readings submitted. The City Manager then noted the $1,800.00 under Machinery and Equipment is for one-half the costs of a tamper and one-half the costs of a pipe storage shelter. He noted the other half I of those costs is listed in the Sewer Operations budget unit. Commissioner Vant Hull asked about the $30,000.00 listed under Contracted Services. The City Manager indicated that a portion of those monies have been expended. He noted this line item will cover the costs of legal counsel and expert testimony from CH2M-Hill before the Public Service Commission for the water rate increase. J- 2 Water Treatment Plant. The City Manager noted the major change in this budget unit is a decrease in the Operating Supplies. He also noted that the Telephone and Telegraph Services line item has increased because a security alarm system has been installed 09-09-85 36G which is tripped if certain functions are not performed within a specified period of time. Commissioner Vant Hull noted that Dr. Sanks has indicated that a model water plant would be beneficial in testing the amounts of chemicals needed and different types of chemicals. She then questioned why that is not included in this year's budget. The City Manager stated he does not feel that model plants are necessary; but the Commission may appropriate monies for that function if they so desire. Commissioner Anderson asked if a deflector has been installed to keep the large debris I out of the filter system. The City Manager indicated that a deflector has been installed in Bozeman Creek but not in the other water source. He noted the deflector diverts tree limbs and other large items from the filter system. Commissioner Jordan noted that he feels model plants can be beneficial, particularly in testing new chemicals, which may be cheaper and better than those currently being used. The City Manager reminded the Commission that the Water Fund is currently in a deficit position; and he does not feel that any new expenditures should be undertaken until that deficit has been corrected. K- 1 Sewer Operations. The City Manager noted that many of the employees in the Water Operations and the Sewer Operations transfer back and forth, which results in discrepan- cies in the Salaries, Wages and Benefits line items of both budget units. He noted the same transfer occurs between the two treatment plants. However, combining of both budget units should result in a basically static expenditure in that line item. The City Manager then noted that Repair and Maintenance - Other shows a dramatic drop because the City paid the Bozeman Deaconess Foundation $70,000.00 last year for restoration of the lagoon on the hospital property. He also noted that $70,000.00 should have been listed under Other. The Commissioners asked no questions. K- 2 Sewage Disposal Plant. The City Manager noted that the amount under Machinery and Equipment is for several small items. including radios for the sludge injection equipment. Commissioner Jordan noted that the gas and electricity budget for the plant is quite high. I Commissioner Vant Hull asked if the City can expect a return on the sludge injection in the near future. The City Manager stated that until the City gets agreements for more acreage than it has sludge. the City will not be in a position to charge. He then indicated that initial reports indicate that the yields on those fields which have been injected appear to be good. L- 1 Garbage Collection. The City Manager stated that the Other line item includes a $32,000.00 loan repayment to the General Fund for loan made prior to Fiscal Year 1984. Commissioner Anderson asked if any savings will be realized from an automated garbage collection system. The City Manager stated that the staff could be reduced by two positions. He also noted that the Worker's Compensation costs could also be reduced. He then reminded the Commission that the cost of a new truck and containers would result in offsetting expendi- tu res. . , L- 2 Garbage Disposal. The City Manager noted that the amount listed in Contracted Services is for the drilling of monitoring wells at the landfill site. He noted that the City must retain a consultant because the State has requested that the monitoring occur more rapidly than it is at the present time. He also noted the $10,000.00 in Insurance and Bonding reflects that budget unit's portion of the insurance costs. The City Manager noted that this concludes the discussion of the various budget units as submitted. Commissioner Jordan stated he realizes that the City has limited resources; but he feels one important area that must be carefully reviewed is that of enforcement of the zoning regula- tions. The City Manager reminded the Commission that they have directed the staff to review I the procedure and submit a recommendation to the Commission. Adjournment - 10: 00 p. m. There being no further business to come before the Commission at this time, it was moved by Commissioner Jordan, seconded by Commissioner Mathre, that the meeting be adjourned. 09-09-85 36l The motion carried by the following Aye and No vote: those voting Aye being Commissioner Jordan, Commissioner Mathre, Commissioner Vant Hull, Commissioner Anderson and Mayor Weaver; those voting No, none. KENNETH L. WEAVER, Mayor I ATTEST: Clerk of the Commission I I 09-09-85