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HomeMy WebLinkAbout1984-12-31 487 MINUTES OF THE MEETING OF THE CITY COMMISSION BOZEMAN, MONT ANA December 31, 1984 ************************ The Commission of the City of Bozeman met in regular session in the Commission Room, Municipal Building, December 31, 1984, at 10:00 a.m. Present were Mayor Weaver, Commissioner I Mathre, Commissioner Vant Hull, Commissioner Anderson, Commissioner Jordan, City Manager Wysocki, Assistant City Manager Barrick and Clerk of the Commission Sullivan. The meeting was opened with the Pledge of Allegiance and a moment of silence. The minutes of the regular meeting of December 24, 1984, were approved as submitted. Application for Beer and Wine License - The Store (formerly Express Mart) - Calendar Year 1984 City Manager Wysocki presented to the Commission an application, along with the required fee, submitted by The Store (formerly Express Mart) for a Beer and Wine License for Calendar Year 1984. He noted the Commission had temporarily approved this application at their regular meeting of September 17, 1984, contingent upon receipt of the State License. He noted the State License for this establishment has now been received, and recommended that the Commission approve the issuance of the City's license. It was moved by Commissioner Mathre, seconded by Commissioner Vant Hull, that the appl ica- tion submitted by The Store (formerly Express Mart) for a Beer and Wine License for Calendar Year 1984 be approved. 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. Application for Beer and Wine License - Chalet Market - Calendar Year 1985 City Manager Wysocki presented to the Commission an application, along with the required fee, submitted by the Chalet Market for a Beer and Wine License for Calendar Year 1985. The I City Manager stated a copy of the State License is attached to the appl ication, and recommended that the Commission approve issuance of the license. It was moved by Commissioner Vant Hull, seconded by Commissioner Anderson, that the application submitted by the Chalet Market for a Beer and Wine License for Calendar Year 1985 be approved. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Vant Hull, Commissioner Anderson, Commissioner Jordan, Commissioner Mathre and Mayor Weaver; those voting No, none. Renewal of Beer, Wine and Liquor Licenses for Calendar Year 1985 This was the time set for renewal of the Beer, Wine and Liquor Licenses for the Calendar Year 1985. A total of 10 additional applications have been received, along with the required fees. City Manager Wysocki presented to the Commission the following list of establishments which have made application and paid the required fee: APPLICATIONS FOR BEER, WINE AND LIQUOR LICENSES CALENDAR YEAR 1985 APPLICANT BEER WINE LIQUOR TOTAL - Allen & O'Hara Developments, Inc. (dba Holiday Inn) $ $ $500.00 $ 500.00 B.P.O.Elks Club No. 463 500.00 500.00 CAM, Inc. (dba Little Big Men Pizza) 200.00 200.00 400.00 I Mini Mart 200.00 200.00 400.00 Osco Drug 200.00 200.00 400.00 R & N Corporation (Bozeman Hotel) 500.00 500.00 Tee Pee Gas Company, Inc. 200.00 200.00 400.00 The Store, Inc. 200.00 200.00 400.00 The Town Pump #1 200.00 200.00 Van's IGA Foodliner 200.00 200.00 400.00 12~31-84 488 Total - 10 applications $ 4, 1 00.00 City Manager Wysocki noted that the Commission had approved a list of 57 applications at last week's meeting and recommended that the Commission approve the new applications for renewal of Beer, Wine and Liquor Licenses' as listed. It was moved by Commissioner Anderson, seconded by Commissioner Jordan, that the Commis- sion approve the renewal of Beer, Wine and Liquor Licenses for the various establishments as I listed above for Calendar Year 1985. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Anderson, Commissioner Jordan, Commissioner Mathre, Commis- sioner Vant Hull and Mayor Weaver; those'voting No, none. Authorize expenditure of $315.00 fee to accompan lication for the GFOA Certificate of on ormance City Manager Wysocki presented to the Commission a memorandum submitted by Director of Finance McKinney requesting authorization for the expenditure of $315.00 for a fee to accompany the application for the GFOA Certificate of Conformance. The City Manager stated the Commission had previously approved the preparation of an application for the MFOA (Municipal Finance Officers' Association) Certificate of Conformance for Fiscal Year 1984. He indicated the staff has completed the application, which is now to be sub- mitted to the GFOA (Governmental Finance Officers. Association). He noted the application must be postmarked not later than December 31, 1984 (today) and recommended that the Commission authorize the expenditure of monies for the application fee. Mayor Weaver requested that Director of Finance McKinney convey to Controller Vail the Commission's appreciation for his work in preparing the application. Commissioner Mathre asked when the City will receive the results on this application. The Director of Finance stated the results will be submitted to the City in three to five months. It was moved by Commissioner Jordan, seconded by Commissioner Mathre, that the Commission I authorize the expenditure of $315.00 for the fee to accompany the application for the GFOA Cer- tificate of Conformance. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Jordan, Commissioner Mathre, Commissioner Vant Hull, Commissioner Anderson a nd Mayor Weaver; those voti ng No, none. Discussion - action to be taken on current UDAG application for the Felska/Solvie Convention Center / Hotel City Manager Wysocki submitted to the Commission a letter from the Department of Housing and Urban Development in Washington, D. C., dated December 14. 1984 and received by the City on December 26, 1984, concerning this application for Urban Development Action Grant monies. He stated the letter indicates that the HUD office will give no further consideration to funding of the application because the application is incomplete and the documentation does not adequate- ly demonstrate there is a firm private commitment to finance and carry out the proposed project. The City Manager then recommended that the Commission acknowledge receipt of the letter. The City Manager then noted the next deadline for submitting applications for UDAG fund- ing is January 31, 1985. He suggested the Commission may wish to appoint a Hearings Officer to conduct a public hearing on January 15, 1985, with a second possible public hearing before the Commission on January 21, 1985. He noted if a new application for the Felska/Solvie Conven- tion Center/Hotel is the only one received during the first public hearing, a second public hear- ing is not required under the UDAG guidelines; but the Commission should consider the item briefly, with a motion and vote to submit the application if it so desires. I Commissioner Jordan asked if the Commission should take specific action on the current UDAG application. Mayor Weaver stated the Commission recognizes that the letter from the HUD office in Washington, D.C., constitutes refusal of the current UDAG application submitted for the Felska/ Solvie Convention Center/ Hotel; and the City will consider all qualified UDAG applications. It was moved by Commissioner Mathre, seconded by Commissioner Vant Hull, that the Commis- sion acknowledge receipt of the letter from the Department of Housing and Urban Development 12-31-84 488 in Washington, D. C., indicating the current application for Urban Development Action Grant monies for the Felska / Solvie Convention Center/Hotel wi II not receive further consideration. 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. It was moved by Commissioner Vant Hull, seconded by Commissioner Anderson, that the I Commission appoint City Manager Wysocki as Hearings Officer for the purpose of conducting a public hearing for consideration of proposed UDAG applications during the month of January 1985. The motion carried by the following Aye and No vote: those voting Aye being Commis- sioner Vant Hull, Commissioner Anderson, Commissioner Jordan, Commissioner Mathre and Mayor Weaver; those voting No, none. Discussion - Proposed guidelines for consideration of I DR bond issues and housing I DR bond issues City Manager Wysocki stated he had submitted draft proposed guidelines for considera- tion of lOR bond issues and housing lOR bond issues to the Commission during the discussion of "For Your Information" items two weeks ago. He noted these drafts represent a point to begin discussions on possible Commission Resolutions establishing policies and guidelines for the consideration of applications for Industrial Development Revenue bonds and housing Industrial Development Revenue bonds. He indicated the two types of bond issues have been separated so that the federal guidelines for the housing I DR's may be taken into consideration. The City Manager then suggested that the Commission review the proposed guidelines point by point. Commissioner Anderson stated the guidelines established by the Board of County Commis- sioners of Gallatin County, Montana, are comprehensive and suggested that the City Commission may wish to incorporate some of those items in their guidelines. City Manager Wysocki stated Commission Resolution No. 2406, which establishes the adminis- trative fee and application fee for IDR bonds, provides that from time to time, the monies re- I ceived from the administrative fees shall be used to reimburse the General Fund for actual costs incurred for that bond issue; and the remainder is to be retained in the Capital Improvements Fund. The City Manager stated Director of Finance McKinney has indicated the $500.00 applica- tion fee generally covers the costs incurred; and the administrative fee should be retained in the Capital Improvements Fund to avoid cost accounting on each IDR bond issue, which would create more additional costs than benefit. Mayor Weaver asked if any administration is required for an I DR bond issue after the bonds have been sold. City Manager Wysocki indicated the City has recently required annual review of the status of the bonds to determine that payments on the bonds are being made per the original agreement. Mayor Weaver noted the City is not responsible for collecting or dispersing monies for lOR bond issues and expressed concern that the requirement for annual financial review may cause the City to assume some responsibility for the bond issue. City Attorney Crumbaker-Smith stated the City is monitoring a previous judgment during the financial review and it is not assuming any responsibility for the repayment of the I DR bonds. The Commissioners first reviewed the guidelines for IDR bond issues. Commissioner Vant Hull indicated she feels Item B.S. should be revised to indicate that only clean industry will be considered. Mayor Weaver requested that Commissioner Vant Hull submit revised language to City Manager Wysocki and to the Commission for consideration. Commissioner Jordan suggested that the guidelines review whether an applicant has complied fully with all conditions placed on Conditional Use Permits for other projects. Mayor Weaver I requested that Commissioner Jordan submit proposed language to City Manager Wysocki for considera- tion. Commissioner Anderson suggested that the guidelines indicate that all information sub- mitted to the City will be open for public review. City Manager Wysocki stated that personal financial statements should not be open to the public for review; but the City staff should have an opportunity to review those financial statements to determine that the project for which the issuance of lOR bonds is requested would be feasible. Mayor Weaver asked if a new Resolution establishing the policy for issuance of lOR bonds 12-31-84 4~U would include the provisions in Commission Resolution No. 2406. The City Manager indicated he feels the provisions in the current Resolution should be included in a new Resolution. Commissioner Vant Hull noted that Item B.l0. provides that a site must be secured prior to adoption of the I nducement Resolution. She then asked how specifically the site is to be secured. The City Manager indicated a lease, lease/option or purchase of the property should be considered. He stated he feels a specific site should be known while considering an IDR bond issue because of the potential traffic impacts involved. I Commissioner Mathre noted the Commission has not applied the provisions of Commission Resolution No. 2406 on any IDR bond issue since its adoption. She suggested that the percen- tages for determining administrative fees be reviewed to determine if they should be revised. The City Manager stated he feels the percentages are appropriate. He noted the Commission may wish to add another category over $10 million, with an administrative fee of 1%. He stated the ceiling on a tax-exempt lOR bond issue is $10 million except for a few specific types of bonds. Commissioner Mathre stated the most difficult item to be considered when reviewing an IDR bond issue request is the public interest. She noted Item B. 7. provides for use of 10 R bonds for expansion of an existing business. She stated she feels that there must be something exceptional about the business requesting the use of IDR bonds for expansion. The Commissioner stated she feels the use of IDR bonds for expansion of a business has been abused in the past; and steps should be taken to avoid such abuse in the future. Commissioner Vant Hull noted that criticism has been expressed concerning the use of out-of-town contractors when IDR bonds are issued and suggested that the policy provide that local contractors be used. The City Manager stated he does not feel the City could place such a limitation on private enterprise. He also noted that the construction provides an infusion of funds in Bozeman, whether the contractors are local or from out of town. City Manager Wysocki stated he will incorporate the suggestions into a revised draft of the proposed guidelines for the issuance of I ndustrial Development Revenue bonds and submit it to the Commission for review. I The City Manager then stated the guidelines for consideration of housing IDR bond issues should include the minimum percentage of low-income units that would be acceptable and whether lower-income, low-income or both types of units would be considered. The City Manager stated he feels this mechanism for financing of low-income housing should be available to developers; and the Commission should establish the minimum guidelines. He noted he has separated this policy statement from the lOR bond issue guidelines so that the federal guidelines for housing I DR bonds may be addressed. Commissioner Vant Hull stated appreciation for the proposed guidelines. She noted the guidelines will help the Housing Committee in reviewing potential projects. She also suggested that a lower application fee may be considered for housing IDR bonds. The City Manager stated he feels the application fee should be the same for all types of IDR bond requests. Commissioner Mathre asked if a provision for monitoring of the project should be included in the housing IDR bond guidelines. City Manager Wysocki stated he will submit a revised draft of the guidelines to the Commis- sion for review as soon as possible. Authorize Call for Bids - Repurchase Agreement for the period beginning January 18, 1985 City Manager Wysocki presented to the Commission a copy of the specifications for the Repurchase Agreement for the period January 18. 1985 through Apri I 1. 1986. The City Manager noted several changes have been made in the specifications, including an increase in the minimum and maximum amounts to be maintained in the Repo account. He then recommended that the Commission I authorize the Call for Bids for the Repurchase Agreement. Director of Finance McKinney reviewed some of the changes which have been made in the specifications for the Repurchase Agreement, noting that other City accounts have been included in the process this year. He stated the inclusion of these accounts in the bidding process will hopefully increase the interest rates on the various accounts; and the bank obtaining the bid will be assured that the City's monies will be available for its investment portfolio for a specified time. The Director of Finance noted this process will address some of the points in 12-31-84 491 the Report to Management submitted by Coopers and Lybrand. He stated the expiration date for this period has been extended to April 1, 1986 to get this bidding process out of the end-of-the-year statements and business. It was moved by Commissioner Mathre, seconded by Commissioner Vant Hull, that the Com- mission authorize the Call for Bids for the Repurchase Agreement for the period beginning January 18, 1985. The motion carried by the following Aye and No vote: those voting Aye being I Commissioner Mathre, Commissioner Vant Hull, Commissioner Anderson, Commissioner Jordan and Mayor Weaver; those voting No, none. Break - 11 :00 to 11 :10 a.m. Mayor Weaver declared a break at 11:00 a.m., to reconvene at 11:10 a.m., in accordance with Commission policy established at their regular meeting of March 14, 1983. Discussion - FY I Items City Manager Wysocki presented to the Commission the following "For Your Information" item. (1 ) A letter from the Water Resources Division of the Department of Natural Resources and Conservation asking if the City is interested in purchasing the additional 2,337 acre feet of water in Hyalite Reservoir that will be available if the Middle Creek Dam is raised ten feet during the upcoming rehabilitation project for the dam. The City Manager stated ON RC must submit its requests to the Legislature and has asked the City to make a decision on this matter by January 10, 1985. City Manager Wysocki stated the additional water available would be municipal and indus- trial water; and the City of Bozeman is the only prospective customer for that water. He stated that the dam can be raised ten feet during the rehabilitation project at less cost than if it is raised at some time in the future; and the cost of the water wi II be lower. The City Manager noted the additional water available through this project would be more than the amount of water I stored behind Mystic Dam, which has probably been permanently lost. Mayor Weaver asked how much water was stored in Mystic Lake. Engineering Officer Neil Mann stated about 1200 acre feet of water was stored at furl pool. Commissioner Anderson asked how much the rehabilitation project will cost. The Engineering Officer stated the estimated costs will be $5.00 for agricultural use, and $31.90 for municipal and industrial uses. He stated the additional water available through rais- ing of the dam wi II be $50.00 per acre foot for a forty-year period. He then stated if the Legis- lature approves the expenditure of monies for this rehabilitation project, the City will incur no costs until the project is complete, which wi II be 1988. Commissioner Anderson then suggested that the City write letters to the local legislators requesting their support for this project. Mayor Weaver noted at the appropriate time, such letters should be sent to the various legislators. Commissioner Jordan asked if the water involved is federal water. Engineering Officer Mann stated the water rights are currently listed under the State of Montana. City Manager Wysocki stated in the future more people may draw on water rights for Hyalite Reservoir; and the City may have less water available. He noted with dammed water, the City can use the water at its discretion, which is not possible with stream rights. He further noted the City currently has summer and early fall rights and will request year round water if the dam is raised. I The Engineering Officer stated the City is aWaiting decisions on winter water rights from Hyalite Creek and the Lichtenberg water rights. He stated the preliminary decision is that the City will receive that portion of the request which can be beneficially used at this time. Commissioner Vant Hull asked how the City plans to pay the costs involved. City Manager Wysocki stated the payments-in-lieu of water rights for annexations will be used to offset a portion of the costs. Also, the monthly water rates will be adjusted to raise the needed monies to cover these costs. 12-31-84 492 The City Manager then stated this item will be placed on next week's agenda for discus- sion; and someone from DN RC will be at the meeting. He also indicated he will request the Commission to make a decision on whether to purchase the additional 2,337 acre feet of water that would be available through raising of the dam so that DNRC can prepare its requests for the Legislative Session. Appointment to the Board of Adjustment I Mayor Weaver suggested that appointments be made to those boards and commissions on which only reappointments are necessary, and that action on the others be deferred. Commissioner Anderson stated she feels all appointments and reappointments should be deferred until the Commissioners have had an opportunity to review the applications. She also stated she feels the vacancies should be readvertised in the newspaper. The Clerk of the Commission indicated she has advertised the vacancies and submitted to the Commission a memo listing the applications which have been received for the various boards and commissions. It was moved by Commissioner Jordan, seconded by Commissioner Anderson, that appointments to the Board of Adjustment be tabled until the vacancies on the Board have been readvertised. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Jordan, Commissioner Anderson, Commissioner Vant Hull, Commissioner Mathre and Mayor Weaver; those voting No, none. Appointment to the Audit Committee It was moved by Commissioner Anderson that the appointment to the Audit Committee be tabled until the vacancy on the Committee has been readvertised. The motion died for the lack of a second. It was moved by Commissioner Mathre, seconded by Commissioner Vant Hull, that the Commis- sion reappoint Vern Voegele to the Audit Committee with a two-year term to expire on December 31,1986. The motion carried by the following Aye and No vote: those voting Aye being Commis- I sioner Mathre, Commissioner Vant Hull, Commissioner Anderson, Commissioner Jordan and Mayor Weaver; those voting No, none. Appointment to the Cemetery Board It was moved by Commissioner Vant Hull, seconded by Commissioner Jordan, that the appoint- ments to the Cemetery Board be tabled until the vacancies on the Board have been readvertised. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Vant Hull, Commissioner Jordan, Commissioner Anderson, Commissioner Mathre and Mayor Weaver; those voting No, none. Appointment to the City-County Planning Board It was moved by Commissioner Anderson, seconded by Commissioner Jordan, that the Commis- sion reappoint Dr. Bob Hawks to the City-County Planning Board with a two-year term to expire on December 31, 1986. 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. Appointment to the Parking Commission It was moved by Commissioner Jordan, seconded by Commissioner Mathre, that the Commission reappoint William Ewasiuk to the Parking Commission with a four-year term to expire on June 30, 1988. The motion carried by the following Aye and No vote: those voting Aye being Commis- I sioner Jordan, Commissioner Mathre, Commissioner Vant Hull, Commissioner Anderson and Mayor Weaver; those voting No, none. Appointment to the Pedestrian/Traffic Safety Committee It was moved by Commissioner Mathre, seconded by Commissioner Vant Hull, that the Commis- sion reappoint Sarah Helfrich to the Pedestrian/Traffic Safety Committee with a two-year term to expi re on Janua ry 1, 1987. The motion carried by the following Aye and No vote: those voting 12-31-84 493 Aye being Commissioner Mathre, Commissioner Vant Hull, Commissioner Anderson and Mayor Weaver; those voting No being Commissioner Jordan. Appointment to the Recreation Advisory Board It was moved by Commissioner Mathre, seconded by Commissioner Vant Hull, that the Commis- sion reappoint Mrs. E. J. (Peg) Hines to the Recreation Board with a three-year term to expire I on January 1,1988. 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. Appointment to the Zoning Commission It was moved by Commissioner Jordan, seconded by Commissioner Vant Hull, that appoint- ments to the Zoning Commission be tabled until the vacancies on the Commission have been re- advertised. The motion carried by the following Aye and No vote: those voting Aye being Com- missioner Jordan, Commissioner Vant Hull, Commissioner Anderson, Commissioner Jordan and Mayor Weaver; those voti ng No, none. Discussion (continued) - FYI items City Manager Wysocki presented to the Commission these additional "For Your Informa- tion II items. (2) The audited financial statements for the General Fund, Water Fund and Sewer Fund and the Report to Management for Fiscal Year 1984, as prepared by Coopers and Lybrand. Commissioner Mathre noted some of the items in the Management Letter have been listed in the previous Letter and have not yet been addressed. She asked when management will begin addressing those items listed in the Letter. She suggested that management submit a report to the Commission on the various points in the Letter in the near future. City Manager Wysocki stated that management has begun to address some of the points. I He stated he will submit monthly reports to the Commission, with the first report being scheduled within the next sixty days. It was moved by Commissioner Anderson, seconded by Commissioner Jordan, that the Commis- sion acknowledge receipt of the audited financial statements for the General Fund, Water Fund and Sewer Fund and the Report to Management for Fiscal Year 1984, as prepared by Coopers and Lybrand. 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 voti ng No, none. (3) The City Manager noted a recent article in the newspaper indicated that the City is selling land to the National Guard for a new armory. He indicated he has offered to donate ten acres at the landfill site for this purpose; but it will probably not be accepted as water and sewer services are not available to the site. He noted the National Guard must submit a presen- tation to the Legislature; and all possibilities must be explored. (4) City Attorney Crumbaker-Smith noted a recent Supreme Court decision states that a person arrested for DU I does not have the right to contact an attorney prior to taking a breath- alyzer test. She stated this overturns a previous decision by Judge Gary, which the City of Bozeman appealed to the Supreme Court. Adjournment - 11 :45 a.m. There being no further business to come before the Commission at this time, it was moved by Commissioner Vant Hull, seconded by Commissioner Mathre, that the meeting be adjourned. I The motion carried by the following Aye and No vote: those voting Aye being Commissioner Vant Hull, Commissioner Mathre, Commissioner Jordan, Commissioner Anderson and Mayor Weaver; those voting No, none. KENNETH L. WEAVER, Mayor ATTEST: Clerk of the Commission 12-31-84