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HomeMy WebLinkAbout1983-06-13 114 MINUTES OF THE MEETI NG OF THE CITY COMMISSION BOZEMAN, MONT ANA June 13, 1983 ******************* The Commission of the City of Bozeman met in regular session in the Commission Room, Municipal Building, June 13, 1983 at 4:00 p.m. Present were Mayor Stiff, Commissioner Weaver, I Commissioner Vant Hull, Commissioner Anderson, Commissioner Mathre, City Manager Evans, City Attorney Crumbaker-Smith and Clerk of the Commission Sullivan. The meeting was opened with the Pledge of Allegiance and a prayer by Commissioner Mathre. The minutes of the regular meetings of May 31, 1983 and June 6, 1983 were approved as corrected. Mayor Stiff asked if any of the Commissioners desired to remove any of the items listed under Consent Items for discussion. Commissioner Vant Hull requested that the Utility Agreement with the State Highway Department regarding the relocation of the utility line in Kagy Boulevard be removed for discussion. Award bids - janitorial services for period July 1, 1983 through June 30, 1984 This was the time and place set for the awarding of joint bids for janitorial services for the period July 1, 1983 through June 30, 1984 for specified City and County buildings. City Manager Evans recommended that the Commission accept the bid submitted by Davis Maintenance, Bozeman, Montana, in the base bid amount of $20,460.00 and Alternate No.1 with a ceiling of $1,000.00 for specified City buildings. It was moved by Commissioner Weaver, seconded by Commissioner Vant Hull, that the Commission accept the bid submitted by Davis Maintenance, Bozeman, Montana, in the base bid amount of $20,460.00 and Alternate No.1 with a ceiling of $1,000.00 for specified City build- ings. The motion carried by the following Aye and No vote: those voting Aye being Commissioner I Weaver, Commissioner Vant Hull, Commissioner Anderson, Commissioner Mathre and Mayor Stiff; those vot i ng No, none. Continued discussion - deferral of annexations for a one-year period City Manager Evans stated that last week the Commission had viewed a slide presenta- tion prepared by Oregon State University and had reviewed the memos submitted by Assistant City Manager/Director of Public Safety Don Barrick and Director of Public Service (Works) Dick Holmes. The third memo considered by the Commission was submitted by Director of Finance Amy Swan. Mayor Stiff asked if bonding for the Water Enterprise Fund will become a problem prior to the bonds maturing in the year 2001. The Director of Finance stated that the current $5 million Water System Revenue Bond Issue provides funding to complete eight or nine of the most critical needs in the water system out of sixteen or seventeen crucial items listed. She noted that within the next ten years, the City will once again need to consider another Water Revenue Bond Issue to complete more of the crucial items. She stated at that time, the current bond issue should be retired due to the current trends in the market structure. Mayor Stiff noted that storm drainage is not mandated at this time; and the City has no way of anticipating requirements for this type of program. I The Di rector of Finance stated the City staff has been watching what other cities in Montana have been doing concerning storm drain improvements. She noted that large improve- ment districts have been created in some cities; and Revenue Bond issues have been utilized in other cities. Mayor Stiff noted that the Department of Finance has improved dramatically in the last three to four years, through staffing and cooperation from the community. He feels that many of the problems in other City departments and areas of concern could be addressed without a full-blown study, for which the deferral has been recommended. 06-13-83 11 ~) Director of Finance Swan stated that many City problems have already been solved. She stated the City staff is now struggling to build a system that is strong in itself and not . dependent upon one specific person. She stated she feels many of the pol icies are still depen- dent upon certain individuals and not firm enough to survive at this time. She also noted that when the Department of Finance was in a bad position approximately six years ago, the City I funded task forces to react to a potential crisis. Commissioner Anderson stated there wi II always be growth in the community, but the type of growth should be monitored by the City. She indicated that growth should be addressed in a coherent, organized manner. Commissioner Weaver stated that the City is faced with a series of decisions, including a method by which to measure the costs to be incurred and the revenues to be realized from a potential annexation. He further noted that a data base must be developed for these items. Director of Finance Swan stated that studies indicate that most annexations will begin to pay for themselves in ten to fifteen years. Commissioner Vant Hull stated that she is dissatisfied with the staff reports because they are one-sided and distorted. The Director of Finance stated that Bozeman has had an open door policy in the past. The staff has indicated through the various memos that the City has depletable resources that will not be here forever, Le., the Landfill. Commissioner Vant Hull stated a substantial portion of police cases involve people who live outside city limits. She stated that it is better to annex areas and receive some revenues from the people than to provide the services with no return at all. Director of Finance Swan stated that her memo was written to help make the Commission aware of the impl ications of the current trend for annexations. She also stated that whether the city grows or not is not the question, but the City's liability of providing services to annexed areas. She noted that annexation infers that services are available; and the City I must be able to provide them. Commissioner Weaver noted that police, fire, streets and parks are in a different group from water, sewer and garbage. He noted the first group are funded through the City's General Fund, while the second group of services are provided to customers and are paid on a specified rate schedule. Commissioner Vant Hull stated there is no evidence in the staff reports that deferral of annexations would provide more than no deferral. Commissioner Weaver stated the questions which must be answered include (1) the need for a basis for decision making and (2) can the City afford to annex. He noted that the answers to these questions mayor may not affect the decision on whether to annex a parcel of land. Commissioner Anderson stated that at this time, the City has a distinct lack of fairness when considering annexation requests. She stated that time should be taken to establish a valid, fair policy with criteria by which to consider annexations. Commissioner Mathre noted that as the city grows, additional police and fire staff must be provided to take care of the additional requirements. She stated concern that a potential annexation may not create enough revenue to cover those costs of services. Director of Finance Swan stated that if the Commission wants to add staff, the budget will have to be balanced by taking money from the capital or operations section of the budget. The fourth memo considered by the Commission was submitted by City Engineer Arthur Van't Hul. The City Engineer stated that the only study which needs to be done at this time I is on the water supply. He noted that other areas, such as transportation, may require up- dates to the comprehensive plans that have been recently completed. City Engineer Van't Hul . also stated that the cost of services to the annexation must be carefully considered. He noted that the time between annexation and the time an area begins to pay for its services is estimated at two to twenty years, during which time the City must be able to bear those costs. Mayor Stiff reviewed the memo submitted by Steve Custer, Professor of Geology at Montana State University, in which he lists six potential solutions to the City's water prob- lems, including (1) dam construction; (2) purchase of surface water rights; (3) groundwater 06-13-83 116 development using river gravels or the Madison Aquifer; (4) artificial recharge using flood water and recovery of the stored water from the ground; (5) conservation, which includes the repair of the distribution pipes so leaking water can be saved; and (6) more conscientious conservation by the citizens of Bozeman. The Mayor stated that a study is currently being conducted on the reconstruction of Mystic Lake Dam; purchase of surface water rights is being pursued; and work is currently being done to upgrade the water distribution system and I repair existing leaks in water transmission lines. He feels that with the work currently being conducted, the City's water problems are not as critical as it appears. City Engineer Van't Hul cautioned that the City has a liability to provide water ser- vices. He also noted that until the City has eliminated as many leaks in the water distribution system as possible, it would be difficult to suggest a conservation program to the users of the service. The City Engineer also stated that studies on groundwater and artificial recharge can be done. He stated, however, there is no guarantee that more water will be found or that it will be available to the City as other individuals or entities may have first rights or may oppose the City using the water. Commissioner Weaver noted the City is currently losing water over the dam and has in- adequate downstream storage capacity. He stated the City is therefore losing some of the water from the water rights currently owned. He further stated that the 30-inch transmission line will provide more storage capacity, which will decrease the water loss. City Engineer Van't Hul noted the water which the City loses remains in the stream. He stated the City then buys back that water for use later in the year. He further stated that the City will use a certain amount of water, no matter what the available supply. Commissioner Anderson asked if a deferral would provide an opportunity to study possible alternative water supplies. City Engineer Van't Hul stated that a deferral is needed for the City to establish a policy on how the City should obligate itself, especially on water supply. He noted there is currently enough land inside the city limits to obligate three times as much water as is pro- I duced from the rights owned by the City. He noted the City has recently received an oppor- tunity to obtain rights in Mystic Lake. He stated at this time, those rights would be a lia- bility to the City rather than an asset. The City Engineer further stated the City must be able to determine how much water is available through obtainable water rights and how many people that water will serve. City Engineer Van't Hul then stated it is extremely important that the Commission understand all items involved in a proposed annexation so that informed decisions can be made. Commissioner Mathre noted that the critical issue is water, and it is important to know when the City can get the answers to the questions. She stated concern about considering annexations until the answers are available. Commissioner Vant Hull asked if the City has reviewed the water problems in the past or attempted to get more water. City Engineer Van't Hul stated that with the current 20,000 population, the City has had no problem supplying the needed water. He further stated the City is now looking at items listed in the 1973 Master Plan as needing review. He once again cautioned the Commission that the amount of development currently in a proposed annexation and the amount of time before an annexation pays for itself must be considered. The City Engineer also stated that if the Commission approves one annexation and denies another, it must have a good reason. He stated that a policy is needed to help make that decision-making process easier and more uniform. Break - 5:35 to 5:40 p.m. I Mayor Stiff declared a five-minute break at 5:35 p.m., to reconvene at 5:40 p.m., in . accordance with Commission policy established at their regular meeting of March 14, 1983. Continued discussion (continued) - deferral of annexations for a one-year period Commissioner Mathre asked how long it would take to get answers on whether Mystic Lake Dam can be rehabilitated and how long it will be before water is available if the dam is rebui It. 06-13-83 117 City Engineer Van1t Hul stated that the seismic team should know how stable the area is by mid-July or August. He stated if they determine the land is stable enough, the study will be started and should be completed by next Spring. He stated the Reservoir Association wi II then need to consider funding sources for rehabilitation of the dam, which is currently estimated at $1 million. He noted that Mystic Lake Dam should provide approximately 20 per- I cent of the City's needed water. The City Engineer then stated that hopefully the City will be able to meet demands for water through conservation measures rather than through new water sources. The fifth memo considered by the Commission was submitted by Assistant City Engineer Neil Mann. The Commissioners indicated they had no questions for the Assistant City Engineer. The sixth memo considered by the Commission was submitted by Chief of Police George Tate. Commissioner Mathre asked what the current staff level is and what has been the maximum. The Chief of Police stated the Police Division currently employs 24 sworn officers; and the maximum has been 31 sworn officers. He also noted there are more problems now than when the maximum number were employed. He stated that the criminal case load and patrol activity are quite high. The Chief of Police stated he does not have enough patrol officers on the street to do what they should be doing. The seventh memo considered by the Commission was submitted by Fire Chief Lee Lewis. Commissioner Vant Hull noted that the Fire Chief has indicated the Fire Division needs additional manpower and equipment. She asked if annexation of additional properties would provide income to help alleviate these problems. Fire Chief Lewis stated that the theory sounds good, but it does not work. He then stated that during the past six months, one out of the three front-line fire trucks has been down. He stated that much of the equipment is old, and the City must consider replacement I equipment in the near future. He stated that a new 100-foot ladder truck would cost approxi- mately $350,000.00; and a new pumper truck would cost approximately $150,000.00. The Fire Chief also stated that it takes two to two and one-half years to get a new fire truck. He noted that some trucks are available on a lease/purchase plan and some are displayed at various conferences that could be purchased immediately if the need arises. Mayor Stiff asked what size ladder truck is needed to reach the top of the dormitories at Montana State University. The Fire Chief stated that a 135-foot ladder truck is needed, at an approximate cost of $400,000.00. He also stated that the Fire Division has a manpower problem for these trucks. He stated that most fire departments send four to six men on a ladder truck; and the City currently only has four firemen on duty on any given shift. Fire Chief Lewis stated the loss of manpower in 1979 eliminated the Fire Prevention Bureau, which helped to eliminate fires. He noted that the annual reports indicate that the number of fires is now increasing. Commissioner Mathre noted the City currently has a good fire rating. She asked how annexation of additional land would affect that fire rating because of the increased demand on the Fire Division services. The Fire Chief stated that the City is now rated as Class 4. He stated that additional demands on the Fire Division would increase the rating to a Class 6 or Class 7, which would result in an approximate 20 percent increase in fire insurance premiums to the residents of Bozeman. Fire Chief Lewis then stated that it currently takes eight to twelve minutes to reach I the edges of the city; and the first five minutes of a fire are the most critical. He stated that he is not saying "no" to annexations. He noted one annexation at a time doesnot really matter, but spread over the years, they do make a big difference. The eighth memo considered by the Commission was submitted by Planning Director John Moss. Mayor Stiff stated that he is concerned that unless development is done in a sensible way, the type of development along the perimeters of the city may make it difficult to extend the city limits in the future. He then asked how a deferral can be justified. . 06-13-83 118 Planning Director Moss stated that large lot developments should not have been permitted close to the city. He noted that development in the jurisdictional area should be carefully reviewed. The Planning Director then noted that the services provided by the City must be carefully reviewed. He indicated the individuals performing those services can give the Commission more information than he can as the Planning Director. He noted the services must be available for the Master Plan to be effective. Planning Director Moss then stated that the possible deferral of annexations is subordinate to the main issue, which is identifying the I problems and determining how to handle them. The Planning Director then stated that the City currently has developable, vacant land zoned for residential use that would accommodate over 10,000 dwelling units. He noted that if even half of those lots were developed, the city has a considerable amount of room for growth. Mayor Stiff suggested that if deferral is not the issue, the City should consider con- ditional annexation and assessment of hookup fees and impact fees. He noted the developer of an area must be willing to work with the City to alleviate as much of the potential impact as possible. The Planning Director stated that some of the Commission members have indicated they want criteria with which to review and consider each annexation. Commissioner Weaver noted that the City must address the problems of growth. He stated that a deferral or moratorium could send a negative signal from the community to potential businesses and industries. He stated he also feels that each annexation request should be considered on its own merits. Planning Director Moss indicated that this community needs economic growth. He further noted that a deferral might send a positive signal that the community is attempting to solve its problems. Commissioner Anderson stated that a deferral need not be so grim. She stated that others may view it as using foresight and wisdom. Commissioner Mathre stated that in the past eight years, the City has annexed hundreds I of acres. She noted that Bozeman is now in a different situation from other cities in Montana because others are attempting to annex, while Bozeman is trying to solve the problems created by annexations. Commissioner Vant Hull noted that much of the land surrounding the city is now zoned RS-l . She asked how a one-year deferral would affect use of this land. Planning Director Moss stated that the Planning Staff is preparing a proposal to rezone all RS-1 properties to AS. He stated that process should be completed in two to six months. Commissioner Anderson stated that the opportunity to take time to develop a policy does not happen very often. She stated she feels the City should take the opportunity to address the problems and establish a model that can be used when considering an annexation. She noted now is a good time to complete such a study because there is not much activity in this area at this time. She then asked if such a deferral to establish criteria would strengthen the Master Plan. Planning Director Moss stated that the Master Plan is for providing City facilities and services. He stated if the land use creates a need for City facilities and services and time is needed to study problems in City service areas, then those areas should be addressed so that informed decisions can be made in the future. Recess - 6: 35 p. m . Mayor Stiff declared a recess at 6:35 p.m., to reconvene at 7:30 p.m., for the purpose of completing the routine business items. I Reconvene - 7:35 p.m. Mayor Stiff reconvened the Commission meeting at 7:35 p.m. for the purpose of complet- ing the routine business items. Staff report - Centennial Park Improvements City Manager Evans presented to the Commission a memo prepared by Director of Public 06-13-83 119 Service (Works) Holmes indicating what improvements could be made in Centennial Park and cost estimates for those improvements. He noted that the costs listed include the use of City equipment and employees. The City Manager stated that the question which must be answered is how much money the Commission wishes to appropriate for improvement of the park at this time. City Manager Evans recommended that the Commission appropriate a specific amount of I money from the Parkland Trust Fund, as those monies can used for the initial development of a park. He indicated the balance of the improvements could be placed in the Capital Improvement Program, which will be implemented in November. The City Manager then noted that the Commission had just received copies of a letter from one of the residents in the neighborhood requesting that Community Development Block Grant monies be considered for improvement of the Centennial Park. Commissioner Anderson noted that last year the Commission appropriated $5,000.00 of surplus monies in its budget to the Swim Center and suggested that the Centennial Park be considered for such an appropriation this year. City Manager Evans cautioned that the Appropriation Ordinance for Fiscal Year 1983-84 must be adopted prior to appropriating such funds. The City Manager stated the Commission must first decide how much money it wishes to appropriate from the Parkland Trust Fund and then determine which of the projects listed in the Director of Public Service's memo are to be completed. Commissioner Weaver noted that the gravel must be removed, the sprinkler system in- stalled and top soil brought in before the grass and trees can be planted. The Commissioner then asked for the balance of the Parkland Trust Fund. City Manager Evans stated that the balance is approximately $70,000.00. Mr. Ted Koterwas, 624 North Tracy, stated that the neighborhood would like to see how much money the Commission appropriates prior to submitting suggestions for use of that money. He further noted that the Commission is apparently considering only the site where I the American Legion Housing was located at this time, rather than the entire park site. Commissioner Vant Hull asked how much volunteer work the neighborhood could do to help improve the park. She also indicated that the proposed cost of trees seems high and suggested that possibly smaller trees could be purchased and the neighbors could install them. Mr. Koterwas stated concern about installing small trees in a park. He noted that tnere are many children in the area; and he is afraid the trees would be broken before they become established. City Manager Evans stated that some people may wish to donate trees to the Centennial Park. He noted that the section of parkland being considered for improvement at this time is uncommitted and should have some initial development completed as soon as possible. He noted the softball fields are being used by the Gallatin Softball Association this year; but in the future when sufficient softball fields have been developed, that section of the park could also be improved. Mr. Koterwas then stated that the neighbors will stand behind their commitment to provide labor to help develop the park. He stated they would be willing to plant trees or help with the final raking of the top soil. He noted that a large portion of the work to be completed requires heavy equipment and someone to run it. It was moved by Commissioner Vant Hull, seconded by Commissioner Anderson, that the Commission appropriate $14,250.00 from the Parkland Trust Fund for the following improvements to the Centennial Park: Remove gravel, top soil, level and curb repair $ 4,500.00 Sprinkler system -- material 2,650.00 I Sprinkler system -- equipment and labor 5,000.00 Seed and fertilizer 400.00 I nstall water service 1,700.00 TOTAL $14,250.00 The motion carried by the following Aye and No vote: those voting Aye being Commissioner Vant Hull, Commissioner Anderson, Commissioner Mathre, Commissioner Weaver and Mayor Stiff; those voting No, none. 06-13-83 12U Update on status of C.D.B.G. application ~ Planning Staff Assistant Planner Mike Money stated this report would update the Commission on the activities of the Housing Development Associates and Human Resource Development Council. The Assistant Planner stated the Planning Staff had submitted proposed goals and policies to be considered in the adoption of the Master Plan to the City-County Planning Board; and the Planning Board adopted those suggested goals. I Mr. Money stated that Housing Development Associates inventoried the entire town for the Community Development Block Grant application and completed a survey form used for evaluation of existing housing conditions. This evaluation is needed for the application for the comprehensive CDBG application, which the City is now pursuing. The Assistant Planner noted there are now 8,770 living units in Bozeman, compared to 7,971 in the 1980 census. He noted that of the 8,770 living units, 2,354 are located at Montana State University, leaving a net of 6,416 living units to be considered in the CDBG appl icat ion. Assistant Planner Mike Money stated that data from the housing survey helped to delineate the target area for the CDBG application, which runs basically from Tamarack Street to Curtiss Street and from Broadway Avenue to Eighth Avenue. This target area contains 1,281 dwelling units, of which 730 are suitable for rehabilitation and 169 units are not suitable for rehabilitation. These figures place the target area in a competitive status for the CDBG comprehensive appl ication. Mr. Mike Ross, Housing Development Associates, stated they utilize a standard survey form that can be completed by viewing the outside of the dwelling units. He noted these forms are approved by the Department of Commerce, which administers the CDBG program. He stated that people also react unfavorably to the surveyors requesting entrance to their homes to determine the quality of their housing. Mr. Ross noted the percentage of substandard dwelling units is high in the target area; and the overall percentage of substandard dwelling units in Bozeman is average. He noted if the dwelling units in the target area are subtracted, the percentage of substandard dwelling units in Bozeman is less than 20 percent; while the average I is 20 to 35 percent. Assistant Planner Money then stated that the Human Resource Development Council has circulated questionnaires throughout the target area. He stated of those responding, 78.8 percent are in the low- and moderate-income levels. He also stated that 60 percent of those responding indicated they are renting. Mr. Money stated it appears a large portion of the residents in the target area are either elderly or students. The Assistant Planner also stated that the City Engineer has submitted public facilities data for items that need upgrading in the northeast sector of the city, including water lines and paving of certain streets, as well as water for the Centennial Park. The Assistant Plan- ner stated that for these improvements to qualify, there must be local participation for the appl ication to be competitive. He noted the Centennial Park has just received local funding through the above item in this meeting; and the neighbors have indicated a willingness to participate in the development of this park. Mike Money then stated in order for the Planning Staff to continue the comprehensive portion of the grant application, the Commission must make a declaration that the existing situation poses a dangerous threat to the community or that blighting conditions must be prevented or eliminated. He indicated the Commission must also adopt a Resolution stating there is blight in the target area and prove that it exists through one of the conditions listed in the State Statutes. Assistant Planner Money assured the Commission this situation does not compare with the situation that existed during the proposed Urban Renewal Plan. Commissioner Weaver stated concern that the people in the target area would be insult- I ed, even though the City is attempting to help them with their problems. He also indicated he does not want to debase people1s opinions or to destroy their pride, which is one of the most important items in the community. He further indicated that presentation of the facts support- ing the application is important to gain community support. Mr. Mike Ross stated the Commission must direct the staff to proceed with the applica- tion on one of two bases: (1) imminent threat to the public health or (2) that blighting conditions exist. He noted there is no imminent threat to the public health, which would 06-13-83 121 create a weak application. Mr. Ross then requested the Commission adopt a Resolution at next week's meeting stating that blight exists, based on the following facts: (1) that over 70 percent of the structures in the target area are substandard, compared to 19 percent in the rest of the community; (2) that a high concentration of low- and moderate-income people exists in the target area; (3) that the water lines are inadequate in the area; (4) that there are I unpaved streets in the target area; and (5) that there are undeveloped parks in the area, with very little improved park area existing in the target area. Mr. Ross then noted that the criteria for Community Development Block Grant funds indicate the elimination of or prevention of blighting conditions. He noted the application could reflect that infusion of CDBG monies would prevent blight and eliminate any blighting conditions that might now exist. Commissioner Mathre noted that Peach Street has not been listed in the unpaved streets in the target area. Mr. Ross stated that CDBG funds cannot be used where commercial property is involved. He also noted the residences along Peach Street would probably not rate high in the appli- cation process. Mayor Stiff noted the staff has indicated that this is a portion of a comprehensive appl ication . He asked what the remainder of the application would involve. Mike Ross stated the application would include housing rehabilitation for two years, park redevelopment, land acquisition and improvements and public facilities improvements. He then indicated the application will be presented to the Commission on June 27, at which time a publ ic heari ng wi II be held on the appl ication. He stated the Commission must also make a decision on the application at that time as it must be submitted to the Department of Commerce by July 1, 1983. It was moved by Commissioner Weaver, seconded by Commissioner Vant Hull, that the Commission states its intention to adopt a Resolution of intent to identify the defined Com- munity Development Block Grant target area for the application, and stating the intent to I eliminate and prevent blighting conditions, as defined for the purposes of the Community Development Block Grant application. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Weaver, Commissioner Vant Hull, Commissioner Anderson, Commissioner Mathre and Mayor Stiff; those voting No, none. Break - 8:30 to 8:35 p.m. Mayor Stiff declared a five-minute break at 8:30 p.m., to reconvene at 8:35 p.m., in accordance with Commission policy established at their regular meeting of March 14, 1983. Continued discussion - request for reduction of license fee - Inland Empire Shows, Inc. City Manager Evans stated that the Commission had requested that the staff review the license fee for carnivals and submit a recommendation at this meeting. The City Manager noted that the old Business License Ordinance had set the license fee at $10.00 per unit per day; and the new Ordinance set the fee at $30.00 per unit per day. He stated that review of other license fees throughout the state indicates that the new fee might be too high and recommended that the Commission consider reducing the fee to $10.00 per unit per day. City Manager Evans also noted that Chief of Police Tate has submitted a memo, indicating that carnival activities do not require increased manpower in the Police Division. It was moved by Commissioner Vant Hull, seconded by Commissioner Anderson, that the Business License fee for carnivals be reduced from $30.00 per unit per day to $10.00 per unit per day and that the City Attorney be instructed to prepare an Ordinance to be brought back I to the Commission for action at next week's meeting. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Vant Hull, Commissioner Anderson, Commissioner Mathre, Commissioner Weaver and Mayor Stiff; those voting No, none. address the Commission - Bill Sheehan, Bozeman Arm Navy Store - re raft displa City Manager Evans stated that Mr. Bill Sheehan, owner of the Bozeman Army Navy Store, Inc., has requested permission to address the Commission concerning the raft display on the sidewalk in front of the store located at 232 East Main Street. 06-13-83 122 Mr. Bill Sheehan stated that on Thursday, he received a letter from the City Attorney concerning removal of the rafts in front of the store as they are considered an obstruction on the sidewalk. The letter indicated that those rafts must be removed by Friday or written permission be received from Director of Public Service (Works) Holmes. Mr. Sheehan then stated that he felt that the Bozeman Army Navy Store and the City of Bozeman had had an understanding since Summer 1981 that boats could be displayed in front I of the store. He also noted that he has submitted requests for sidewalk sales; and they have always been granted by the Commission. Mr. Sheehan stated that a copy of the minutes of the Commission meeting of May 23, 1983, indicating that the rafts are in constant violation of the Municipal Code, was enclosed in the letter from the City Attorney. Commissioner Weaver asked if the rafts are displayed as an advertisement and for private gain, and thus obstructing the sidewalk. Mr. Sheehan stated that his attorney has indicated that the rafts are not obstructing the sidewalk. He then stated that he felt that he had reached an agreement with City Manager Evans to allow the rafts to remain on the sidewalk in front of the store. City Manager Evans stated that he had previously indicated to Mr. Sheehan that he had misunderstood the conversation held in 1981. He indicated that he had told Mr. Sheehan that if he kept the rafts off public property, he could display them. The City Manager stated that the building is located one foot from the edge of the public sidewalk. Also, one of the door- ways has been blocked off; and a raft could be placed in that doorway for display purposes. The City Manager stated that as long as the rafts do not extend more than one foot from the building, they are located on private property and thus are not encroaching upon public right-of-way. Commissioner Vant Hull noted that the rafts have been allowed to remain as they are currently situated for two years. She feels that the Commission should approve the location of those rafts, since they encroach upon public right-of-way by only a few inches. Commissioner Weaver asked if the rafts are actually located on the public right-of-way. I Mr. Sheehan indicated that when the larger rafts are fully inflated, the sides are approximately eighteen inches in diameter. He does not feel that these rafts impede the ped- estrian flow along the sidewalk. He then noted that some people have complained about the aesthetic value being degraded by the raft display. He stated that competitors on the west end of town sell the same merchandise he does. By displaying these rafts, he has an opportun- ity to sell his merchandise to those who enter Bozeman from the east end. Mr. Sheehan then stated that when the store opened in 1980, they had a 15-foot wide building, in which it was impossible to display a 16-foot wide raft. Also, this was a branch store from the store in Missoula, where sidewalk sale events were held three or four times during the summer and the city was less conservative. Commissioner Weaver stated that an ordinance prohibiting obstructions on public right- of-way has been enacted by the City. He also noted that the Bozeman Army Navy Store is realizing private gain from the use of public right-of-way. The Commissioner then suggested the possibility of displaying rafts in the blocked off doorway or within the one foot of private sidewalk in front of the store. He asked if this would create a disadvantage for the store. Mr. Sheehan stated that they could display smaller rafts, which would create no big problem. He indicated that raft sales have increased with the outdoor displays. He also noted that the rafts are securely tied to the building, eliminating any possibility of the rafts falling and injuring a pedestrian. Commissioner Mathre noted that the raft display was raised at the Commission meeting held on May 23, 1983 because of the many discussions about sandwich board signs on the sidewalk I and obstructions located on public rights-of-way. She indicated that the Bozeman Downtown Merchants Association was to prepare a policy concerning sidewalk sales in the downtown area to be submitted to the Commission, but that policy has not yet been presented. She also noted that concern has been indicated about the rafts; and the Commission should treat all merchants equally. Mayor Stiff asked if allowing the rafts to remain on the sidewalk would set a precedent. City Attorney Crumbaker-Smith stated that the ordinance provides a means for dealing 06-13-83 j 123 with this type of situation through the Director of Public Service (Works). She stated that if the Director grants a permit and the business conforms to the conditions of the permit, the matter is an administrative function rather than a Commission function. She suggested that the Director of Public Service (Works) prepare a policy for encroachment on public rights- of-way, addressing the matter on a city-wide basis. I City Manager Evans indicated that once the Commission expresses a concern about a particular situation, the Director of Public Service (Works) will not issue a permit until in- structed to do so by the Commission. He also noted that the Commission must adopt any policy that is to be followed by the administrative staff. The City Manager noted that the standards of the community must be considered when adopting a policy. It was moved by Commissioner Mathre, seconded by Commissioner Anderson, that the Commission authorize and direct the Director of Public Service (Works) to develop a policy for exceptions to the ordinance concerning encroachments upon public rights-of-way, to be presented to the Commission for consideration and possible adoption. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Mathre, Commissioner Anderson, Commissioner Vant Hull, Commissioner Weaver and Mayor Stiff; those voting No, none. Department re utility reloca- City Manager Evans presented to the Commission a Utility Agreement with the State of Montana Department of Highways concerning utility relocations in Kagy Boulevard. The City Manager noted that Commissioner Vant Hull had requested that this item be removed from the Consent Items. Commissioner Vant Hull stated that she had been unable to reach Director of Public Service (Works) Holmes to get answers to her questions. City Manager Evans stated that Director of Public Service (Works) Holmes has indicated I that two separate issues are involved in this agreement and a water line relocation. He noted that this matter should be handled separately from the other issue and submitted to the High- way Department. He further stated that if this agreement is held, it will delay the schedule for Kagy Boulevard construction. Commissioner Mathre stated that she had talked to the Director of Public Service (Works) concerning this agreement. She noted that the subject agreement concerns the re- location of fire hydrants, which must be done. The correspondence attached to this agreement concerns the relocation of a water line, which is a separate issue entirely and does not affect the subject agreement. It was moved by Commissioner Weaver, seconded by Commissioner Vant Hull, that the Commission authorize and direct the Mayor to sign the Utility Agreement with the State Highway Department regarding the utility relocation in Kagy Boulevard. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Weaver, Commissioner Vant Hull, Commissioner Anderson, Commissioner Mathre and Mayor Stiff; those voting No, none. Continued discussion - Commission Resolution No. 2449 - Capital Improvement Program City Manager Evans presented Commission Resolution No. 2449, entitled: COMMISSION RESOLUTION NO. 2449 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, ESTABLISHING A CAPITAL IMPROVEMENT PROGRAM (CIP) CONSISTING OF A SIX (6) YEAR PLAN AND PROVIDING POLICY FOR IMPLEMENTATION THEREOF. I Mayor Stiff stated that he has talked to the City Manager about some of the language in this Resolution. He noted that the Resolution does not specify that two citizen members be appointed to the Central Coordinating Committee. He indicated that this appears to be an implementation matter rather than an item to be placed in the Resolution. City Manager Evans recommended that the Commission adopt Commission Resolution No. 2449. It was moved by Commissioner Anderson, seconded by Commissioner Mathre, that the Commission adopt Commission Resolution No. 2449, establishing a Capital Improvement Program 06-13-83 , '12 Lr and providing a policy for implementation. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Anderson, Commissioner Mathre, Commissioner Weaver, Commissioner Vant Hull and Mayor Stiff; those voting No, none. Request for permission to use Bogert Park for carnival - Saturday, July 9, 1983, 8:00 a.m. to 5:00 p.m. - Gallatin Valley Emergency Food Bank City Manager Evans presented to the Commission a request for permission to use Bogert I Park for a carnival on Saturday, July 9,1983, from 8:00 a.m. to 5:00 p.m., submitted by the Gallatin Valley Emergency Food Bank. The City Manager recommended approval of this request. It was moved by Commissioner Weaver, seconded by Commissioner Vant Hull, that the Commission approve the request submitted by the Gallatin Valley Emergency Food Bank for permission to use Bogert Park for a carnival on Saturday, July 9, 1983, from 8:00 a.m. to 5:00 p.m. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Weaver, Commissioner Vant Hull, Commissioner Anderson and Mayor Stiff; those voting No, none. Commissioner Mathre abstained. Application for Raffle License - MSU, Museum of the Rockies - June 25, 1983; request for waiver of license fee City Manager Evans presented to the Commission an application for Raffle License, along with the required fee, on behalf of the Museum of the Rockies, Montana State University, for a raffle to be held June 25, 1983. To be raffled are four framed prints with a total value of $275.00. . City Manager Evans stated that the Museum has also requested that the license fee for this raffle be waived. The City Manager then recommended that the Commission approve the application for the Raffle License and deny the request for a waiver of the fee. It was moved by Commissioner Mathre, seconded by Commissioner Vant Hull, that the Commission approve the application for a Raffle License submitted by the Montana State University Museum of the Rockies and deny the request for waiver of the license fee. The I motion carried by the following Aye and No vote: those voting Aye being Commissioner Mathre, Commissioner Vant Hull, Commissioner Anderson and Mayor Stiff; those voting No, none. Commissioner Weaver abstained. Authorize Call for Bids - Seal Coat Project for 1983; set bid opening date for June 27, 1983 City Manager Evans presented a request for authorization to Call for Bids on the Seal Coat Project for 1983 and set the bid opening date for June 27, 1983. The City Manager stated that the Seal Coat Project would be funded through the Gas Tax Fund monies remaining in the Fiscal Year 1982-83 budget. He stated that $48,661.00 of the original $144,075.00 in Gas Tax Fund monies have been expended, leaving a balance of $95,414.00 to cover the costs of the proposed Seal Coat Project. It was moved by Commissioner Vant Hull, seconded by Commissioner Anderson, that the Commission authorize the staff to proceed with the Call for Bids on the Seal Coat Project for 1983, in an amount not to exceed $95,414.00 to be paid from the Gas Tax Fund monies, and set the bid opening date for June 27, 1983. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Vant Hull, Commissioner Anderson, Commissioner Mathre, Commissioner Weaver and Mayor Stiff; those voting No, none. Ordinance No. 1133 - vacate alley west of North Fifth Avenue and south of West Aspen Street, located in Tract 1 of the North Seventh Addition City Manager Evans presented Ordinance No. 1133, as prepared by the City Attorney, I entitled: ORDINANCE NO. 1133 AN ORDINANCE OF THE CITY OF BOZEMAN VACATING THE ALLEY IN TRACT 1 OF THE NORTH SEVENTH ADDITION IN THE CITY OF BOZEMAN, MONTANA. City Manager Evans stated that the Commission had made a decision last week to vacate the alley in Tract 1 of the North Seventh Addition. The City Manager recommended that the Commission provisionally adopt Ordinance No. 1133 and that it be brought back in two weeks for final adoption. 06-13-83 125 It was moved by Commissioner Anderson, seconded by Commissioner Mathre, that the Commission provisionally adopt Ordinance No. 1133, vacating the alley in Tract 1 of the North Seventh Addition, and that it be brought back in two weeks for final adoption. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Anderson, Commissioner Mathre, and Commissioner Weaver; those voting No being Commissioner Vant Hull I and Mayor Stiff. Commission Resolution No. 2456 - cash-in-lieu of parking stalls City Manager Evans presented Commission Resolution No. 2456, as prepared by the City Attorney, entitled: COMMISSION RESOLUTION NO. 2456 A RESOLUTION OF THE CITY OF BOZEMAN ESTABLISHING A FEE OF $1,200.00 AS THE CASH-IN-L1EU PAYMENT OPTION TO THE OFF-STREET PARKING REQUIREMENT UNDER THE ZONING TITLE OF THE BOZEMAN MUNI- CIPAL CODE. Commissioner Anderson stated that the $1,200.00 per year proposed in the Resolution seems like a large sum for a new business to pay each year. Commissioner Mathre stated that she would like to see the fee reduced to $600.00 per year, based on a ten-year payment plan. She noted that if a large number of stalls must be purchased, a balloon payment could be required at the end of ten years. Mayor Stiff stated concern about a three percent administrative fee charge as well as the eight percent annual interest fee. Commissioner Vant Hull noted that the costs of administration must be considered in the payment schedule. City Manager Evans stated that the Commission must recognize that by offering a payment plan for cash-in-Iieu of parking requirements, the City is losing interest on that money. He noted that if the full cash-in-lieu payment were made up front, the City would make at least I eight percent on the money. The City Manager then suggested that the total principal amount of the cash-in-lieu payment be divided into ten equal installments, plus amortized interest. He then noted that if the Mayor is uncomfortable with the administrative fee, an increase in the interest fee may be considered. He indicated that bonds for a Special Improvement District would be at approximately 11 percent interest, which is what the combined administrative fee and interest rate for the cash-in-lieu of parking space requirements would be under the proposed Resolution. It was moved by Commissioner Weaver, seconded by Commissioner Vant Hull, that the Commission revise Commission Resolution No. 2456, providing for cash-in-lieu payments for parking spaces, to state that "the cash-in-lieu payment shall be divided into ten equal pay- ments of not less than $600.00 principal per year plus a three percent administrative charge on the total amount on or before the issuance of the building permit" and that "the sum due plus the interest on the declining principal shall be due annually" and provisionally adopt the Resolution, subject to approval of the revisions by the City Attorney. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Weaver, Commissioner Vant Hull, Commissioner Anderson, Commissioner Mathre and Mayor Stiff; those voting No, none. Commission Resolution No. 2457 - intent to sell surplus equipment City Manager Evans presented Commission Resolution No. 2457, as prepared by the City Attorney, entitled: COMMISSION RESOLUTION NO. 2457 I A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, DECLARING IT TO BE THE INTENTION OF THE CITY OF BOZEMAN TO SELL CERTAIN SURPLUS ITEMS FROM THE POLICE DIVISION TO A COUNTY OR OTHER POLITICAL SUBDIVISION WITHIN THE STATE OF MONTANA. City Manager Evans stated that the Whitefish Police Department has indicated a willing~ ness to purchase the television monitoring system currently located in the old jail for $500.00. The City Manager noted that this equipment is now surplus equipment to the City of Bozeman, 06-13-83 125 since all prisoners are housed at the Detention Center and recommended that the Commission adopt Commission Resolution No. 2457. It was moved by Commissioner Vant Hull, seconded by Commissioner Anderson, that the Commission adopt Commission Resolution No. 2457, stating the intent to sell surplus equipment items from the Police Division. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Vant Hull, Commissioner Anderson, Commissioner Mathre, I Commissioner Weaver and Mayor Stiff; those voting No, none. Consent Items City Manager Evans presented to the Commission the following items: Appointment of Band Director of the Municipal Band for 1983 - Lowell Hickman Request for permission - two-horse trailer to be parked in front of Country West, Main Street - Sam Wagner - June 13 through June 25, 1983, except Sunday, June 19 Acknowledge receipt - proposal for use of Beall Park building; use of building to be considered at a later date Acknowledge receipt of memo from City Engineer re status of Mystic La ke Dam Annual report - Fire Division for Calendar Year 1982 Reports - Police Court for the months June through December 1982 and Fiscal Year 1981-82 Report - Broad Valleys Federation of Libraries for May 1983 Claims Acknowledge receipt of donation for lay-down curb program with appreciation - $200.00 from MSU Fangs Approve request from Kiwanis Club for permission to sell peanuts on Main Street during Rodeo Parade, Wednesday, June 22, 1983 It was moved by Commissioner Anderson, seconded by Commissioner Mathre, that the Commission approve the Consent Items as listed above, and authorize and direct the appro- priate persons to complete the necessary steps on these items. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Anderson, Commissioner Mathre, Commissioner Weaver, Commissioner Vant Hull and Mayor Stiff; those voting No, none. I Break - 9:35 to 9:40 p.m. Mayor Stiff declared a five-minute break at 9:35 p.m., to reconvene at 9:40 p.m., in accordance with Commission policy established at their regular meeting of March 14, 1983. Continued discussion (continued) - deferral of annexations for a one-year period The final staff presentation on the proposed deferral of annexations was presented by Administrative Assistant Curt Shook. Mr. Shook concurred in the City Manager1s statement that it is the staff's responsibility to give the Commission information concerning matters of importance. He noted this is not a black and white issue, but it is a series of questions that need to be addressed. He stated that questions have arisen on various areas, including (1) capacities; (2) need for a data base to make more rational decisions; (3) impact fees; (4) cost of water rights transferred and litigation; (5) water sources availability and secondary holding facilities; and (6) estimated expenditures and revenues of proposed annexations. Mr. Shook noted that local government revenues have been declining over the past ten years; and that fact must be considered when looking at the short-run costs of a new annexation. He further noted that the City has annexed some areas; and the City is now unable to provide adequate fire protection, and police services are being stretched. Mr. Shook stated the City needs a basis for analyzing the costs of any possible annexation. Mr. Shook noted the Commission has received six requests for annexation that include I over 100 acres; and more annexation requests have been received in the past few weeks. He stated the staff feels that a model should be established for reviewing each of these annex- ations in a fair and equitable manner. Mr. Shook stated that models for consideration of annexations are available, but they must be tailored for Bozeman. He stated he feels a defer- ral should be implemented, but perhaps a year is too long a period. He suggested that a shorter period may not provide a negative signal, for which Commissioner Weaver has indicated concern. 06-13-83 127 Commissioner Weaver noted the staff reports seem to assume the worst possible case. He stated that studies may reveal the situation is not as bad as it appears; and the City would then have difficulty defending a deferral. Commissioner Vant Hull stated the Commission should establish two strong messages (1) no deferral, but each annexation will be reviewed on its own merits and (2) a study will be I started immediately. She then asked what resources the City will need to complete the study as soon as possible. City Manager Evans stated the matter must be researched before the need for resources can be determined. He further stated he has never been asked the question "Do we have the resources?" when any item has been discussed. He noted that to determine if the City has the resources, the staff must first measure the total task. The City Manager stated the important item in this matter is that the City is in a position to make an educated decision. He noted some annexations have been approved in the past that were not educated decisions. He stated the City must consider whether the resources are available now and in the future to service the area being considered for annexation. Commissioner Weaver noted the persons requesting annexation should submit the reasons to be annexed to the City, rather than the City submitting reasons not to annex the property in question. The Commissioner agreed that it is important to have criteria developed to aid in the decision-making process. City Manager Evans noted it will take time to define what is needed and the best ap- proach to getting the needed information. He further stated that when people are investing money, they review the stability of the economy and the community's future. He noted if the City is planning and has criteria for annexation, it helps the prospective investor in his decision-making process. The City Manager also stated if the Commission agrees that criteria for annexations are necessary, the staff has accomplished its purpose in this matter. City Manager Evans then stated his main reason for requesting a deferral of annex- ations is that the Commission often has questions for which he has no answers. He feels that I answers should be available to enable the Commission to make an informed decision. The City Manager stated he also feels the City should be able to project the impact that a proposed annexation would have on the City. He stated if the Commission votes not to defer annexation requests, top priority should be given to developing a policy for annexations. It was moved by Commissioner Weaver, seconded by Commissioner Vant Hull, that, recognizing the responsibility of the City to permit annexation only when such annexation is in the best interests of the City, the Commission therefore direct the staff to prepare, on a high priority basis, an agenda of critical problems related to annexation and accompanying estimate of required resources to address and resolve such problems, as expeditiously as possible, but in not more than sixty days. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Weaver, Commissioner Vant Hull, Commissioner Anderson, Commissioner Mathre and Mayor Stiff; those voting No, none. Mayor Stiff asked how this vote will affect the public hearings on the Resolutions stating the City's intent to annex two parcels of property. City Attorney Crumbaker-Smith stated this is not a legal question, but a question of whether the Commission has the authority to wait until criteria have been developed. She stated the Commission does have that authority. Executive Session - Litigation Mayor Stiff called an Executive Session of the Commission at 10: 30 p.m. for the purpose I of discussing litigation matters and requested that all persons except the Commissioners, City Manager Evans, City Attorney Crumbaker-Smith and the Clerk leave the room. Mayor Stiff declared the Executive Session of the Commission closed at 10:40 p.m. and reconvened the meeting. Adjournment - 10:40 p.m. There being no further business to come before the Commission at this time, it was moved by Commissioner Mathre, seconded by Commissioner Weaver, that the meeting be adjourned. 06-13-83 128 The motion carried by the following Aye and No vote: those voting Aye being Commissioner Mathre, Commissioner Weaver, Commissioner Vant Hull, Commissioner Anderson and Mayor Stiff; those voting No, none. ALFRED M. STIFF, Mayor I ATTEST: Clerk of the Commission I I 06-13-83