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Home My WebLink AboutBID Minutes 5-16 Downtown Business Improvement District Board Meeting Minutes May 18, 2016 Attending: Eric Bowman, Ileana Indreland, Erik Nelson, Eric Sutherland, Chris Naumann Absent: Mike Basile, Dan Himsworth, Public Comments: None Disclosures: None Minutes ACTION: Eric Sutherland moved to approve the minutes from March as presented. Erik Nelson seconded the motion. All voted in favor. Finance Report Chris presented the financials as of May 18, 2016. He noted that revenues were tracking as expected. The only expense of note is the garage maintenance staffing. Chris said that the $6000 budgeted amount as a best guestimate considering it is a new “program” with no financial history. He said the year-end total expense would be closer to $10,000 but still less than the contract income from the Parking Division. The board had no further questions about the finance report. Executive Director’s Report Maintenance Program Update We currently have one part-time downtown maintenance staff person working three to four days a week. Plus, we also have one part-time garage maintenance staff. Below are the maintenance statistics comparing year-to-date figures from this year (FY16) to the statistics from the same period last year (FY15). FY2015 FY2016 Total Ave/mnth Total Ave/mnth Difference Trash Emptied 2996 300 2467 247 -529 Recycling Emptied 373 37 336 34 -37 Graffiti Removed 128 13 248 25 +120 New Floodplain Map Update On May 9th, the City Commission authorized the City Manager to sign a Professional Services Agreement with Allied Engineering Services, Inc. for the purposes of completing a floodplain model evaluation at a cost of $19,670. The scope of services for the floodplain model evaluation will include: • Mill Ditch evaluation to determine the effect on the Bozeman Creek and Mill Ditch floodplain by increasing the flow in the ditch. • General model review of Bozeman Creek with a focus on the downtown reach. • Perform a 2D modeling analysis of flooding behavior in the downtown area. • Evaluate flooding in proximity to Creekside Park on Lamme Street since modeled flood behavior does not accurately simulate observed flooding behavior at this location. New Business Updates • Bozeman Taproom—Mendenhall/Rouse…Service Elec (north) opening in June • Union Market— Mendenhall/Rouse…Service Elec (south) opening in July • Spice and Tea Shop—Stylon • Bisl Restaurant— now open in Poor Richards space • Restaurant—Universal Athletics • Delicious Bakery—Downtowner (third down from Babcock corner) opening in May • Berkshire Hathaway Real Estate—Perspectives/Downtowner (nearest Babcock corner) • Finn Restaurant—closed…new Mexican bar and restaurant opening this summer • Caspian—Persian restaurant now open in old Bozeman TV and Appliance space • ???—Element Hotel restaurant still lacks a proprietor Building Project Updates • Lark Addition (corner of Grand and Main) 4 story building with 28 new Lark hotel rooms. Passed through DRC and DRB. CC Final Site Plan Approval has been delayed at the request of the applicant. • 5 West Building (northwest corner of Mendenhall and Tracy) Construction began on Friday October 2nd with the demolition of the old Opportunity Bank building. Scheduled to open in Jan/Feb 2017. • Etha Hotel (old Armory building) the project has all the entitlements and permits needed to begin construction but no start date has been publicized. • Willson Residences (old East Willson School) being redeveloped into 18 residential units with underground parking. Partial completion scheduled for Summer 2016. • NeBo (400 block of East Mendenhall) 2 buildings, four floors each. 12 residential units each with 2-car garage. Expected completion 4th quarter 2016. • Rialto Theater Application to redevelop the Rialto has been reviewed by the DRC. Next steps include submitting FSP and Building Permit. Planning Updates In this section I will provide update about several important City planning processes. Transportation Master Plan www.bozemantmp.com Consultants: Peccia & Associates (Helena), Alta Planning (Bozeman) Timeline: September 2015 (kickoff) through September 2016 (adoption) UDC Revisions http://bozeman.net/Projects/UDCCodeupdate/Home Consultants: Makers (Seattle), Leland Group (Portland), Studio Cascade (Spokane) Timeline: September 2015 (kickoff) through February 2017 (adoption) Neighborhood Conservation Overlay District Analysis Consultants: KLJ/ArchTrio Timeline: Final report released December 18, 2016 http://www.bozeman.net/CMSPages/GetFile.aspx?nodeguid=39bede2f-b3ab-4c6c-a7c3-f2d4696e4ecb&lang=en-US Comprehensive Parking Plan Consultants: Rick Williams Consulting (Portland) Timeline: September 2015 (kickoff) through July 2016 (adoption) Draft Plan released May 2016 http://www.bozeman.net/Smarty/media/Parking_Media/Reports/Bozemand- Parking-Management-Plan-Combined-Final-Report.pdf City Vision & Strategic Plan Consultants: HDR Timeline: March 2016 (kickoff) through October 2016 2017 Downtown Improvement Plan Consultants: yet to be determined Timeline: yet to be determined…RFP summer 2016 2017 Community Plan (City Growth Policy) Update Timeline: October 2016 through late 2017 Discussion and Decision Item FY2017 Budget Approval Chris handed out the Draft Budget Memo that he had e-mailed to the board on April 15, 2016 (attached below). Ileana asked why the Partnership Management fee is proposed to increase 5%. Chris explained that it had not increased in two years and Partnership operating costs increase every year including rent, payroll, and insurance. She expressed concern over accepting the increase without being able to see the exact breakdown. Eric B said the 5% increase seemed reasonable as it equates 2.5% per year. Ileana asked that Chris send her the Partnership budge. He said he would once it was formally presented to the Partnership Management Committee. Chris pointed out that maintenance staff expenses are projected to increase both at the garage and otherwise. The board asked if the BID could charge the Parking Division more to cover the increase at the garage. Erik N suggested raising the garage cleaning contract amount from $12,000 to $15,000. Others agreed. The board said while they recognized the possibility of operating in the red as Chris predicted in 2010 when the BID renewal assessments were established, they would prefer to revise the budget to have a year-end net income in the black. The increased garage cleaning contract income would yield a $150 positive net income. ACTION: Erik Nelson moved to approve the FY2017 BID Assessment Budget as discussed and revised. Eric Bowman seconded the motion. All voted in favor. Element Flower Basket Request Chris handed out a memo outlining a request from Ashely Ogle of the Element Hotel for the BID to pay for 12 flower baskets to be hung at the Element. On April 20, 2016, Ashley Ogle asked if the BID would be installing flower baskets adjacent to the Element Hotel this summer. I explained that the BID flower basket program does not extend to or beyond Mendenhall. I added that the BID board has discussed expanding the program but had yet to commit to doing such. I responded that 1) the BID had not budgeted to purchase additional baskets; and 2) the BID ordered the downtown baskets from Oak Gardens back in November. I also said that the BID does not have the maintenance capacity to water 12 more baskets. Ashley then requested that the BID purchase the flower baskets for the Element and they would take responsibility for watering and maintaining them. Ashley replied that she had procured flower baskets and the wrought-iron hangers from Kenyon Noble Garden Center. She reiterated her request that the BID pay for the flower and baskets. I said I would bring her request to the board. 12 flower baskets @ $89.99 = $1079.88 12 iron hangers @ $114.95 = $1379.40 + $79.95 shipping = $1459.35 12 hanging flower baskets = $2539.23 total ($211 per basket) For flowers (procurement, planting, growing) we pay $60 per basket. The last time we purchased iron hangers we paid $70 per unit. After much discussion, the board agreed to reimburse the Element for $1560 which equates the pricing the BID would have paid if they had procured the iron baskets and planted flowers. The board asked that Chris communicate that this was a one-time payment and any flower basket arrangements would be dictated by a future policy. The board also agreed that this was a one-off situation, but with future developments along Mendenhall and potentially Babcock the BID needs a policy defining the BID’s flower basket district and how it will participate if at all with flower baskets outside the district. The board requested Chris draft some policy ideas to consider at the June meeting. ACTION: Eric Bowman moved to pay a one-time reimbursement to the Element Hotel $1560.00 towards their purchase of 12 flower baskets. Eric Sutherland seconded the motion. All voted in favor. New/Old Business Eric Bowman asked about the distribution of street trees as had been discussed at past meetings. Chris said he had mapped the location of all the current trees. Eric asked if Chris would share that map noting where additional trees could be located and a cost estimate to plant new trees. Chris said he would do so a meeting this summer. **Meeting was adjourned at 1:30pm** *********************************************************** TO: Downtown BID Board FR: Chris Naumann DA: 15 April 2016 RE: Draft FY2017 BID Budget Attached you will find the draft FY2017 BID Budget. The notes below will provide the background and basis for some changes and a few of the notable figures. FY16 Year-End Notes I am projecting a year-end operating balance of approximately $4000. Garage maintenance expenses were higher than budgeted but still less than the associated contract income. Some program expenses were higher such as “New Banners” while others were well below budget like “Tree Purchases”. In all the Program Expenses should be about $2000 lower than budgeted. FY17 Budget Notes My notes below address the major aspects of the FY17 budget including any line items that deviate notably from the FY16 figures. Management Fees not increased for two years, therefore a 5% increase is being proposed. Going forward I plan to budget a small increase every year to compensate for the costs of doing business increase 2-5% annually. Payroll Expenses are budgeted to be essentially the same as the actuals from this fiscal year. We have great staff that has really kept up with the increasing maintenance demands and I do not anticipate that need diminishing. Program Expenses are proposed at the same levels as the FY16 budget. I prefer to hedge these expenses a bit on the high side even though the actuals will be lower than expected this year. FY17 Year-End Balance As you can see, the FY17 budget as proposed nets a $2,850 dollar loss for the year. This is because our expenses go up every year while our Assessment Revenue has been frozen at $120,000 for the fourth year. In 2010, I warned that this would happen when the tiered assessment fee structure was adopted as documented in the board meeting minutes excerpt below. Downtown Business Improvement District Board Meeting Minutes March 10, 2010 Attending: Eric Bowman, Don McLaughlin, Dan Himsworth, Ileana Indreland, Buck Taylor, Mike Grant, Chris Naumann, Ellie Staley Absent: Mike Basile Discussion and Decision Items BID Renewal Issues Assessment Cap Options The group discussed all the options and agreed that there should be some kind of scheduled increase to the assessment. The board agreed that requiring Chris to solicit 60% of the owners to approve any and all increases to the assessment would be overly burdensome. Don suggested a tiered increase schedule: 3 years at $114k, 4 years at $120k, and 3 years at $126k. Chris said that such a schedule and amounts could work while providing everyone with predictability. He said that the board should be prepared to spend STIP savings to cover increasing costs. ACTION: Don McLaughlin motioned to establish the following assessment schedule: 2011-2013 $114,000; 2014-2017 $120,000; 2018-2020 $126,000. The total assessment may be increased by securing signed petitions from 60% of the district’s owners. Eric Bowman seconded the motion. All voted in favor. That being said, the proposed FY17 operating loss is minimal and can be easily covered by the BID’s substantial cash reserves. Looking ahead to FY18, the assessment will increase to $126,000 and we should be back in the black. I would be happy to answer any questions regarding this year’s figures and/or the draft budget for next year. Keep in mind that the board must adopt the FY2107 budget at the May meeting so that I can present at a City Commission public hearing schedule for June 13, 2016. Respectfully Submitted, +++see FY2017 BID Budget on next page+++ FY2016 Downtown BID DRAFT Budget APPROVED FY16 Year End DRAFT FY2016 Projections FY2017Income BID Assessment 120,000$ 120,000$ 120,000$ Contract Income 12,000$ 12,000$ 12,000$ Interest Income 200$ 200$ 200$ Flower Sponsorshihps 7,000$ 7,000$ 7,000$ Christmas Light Sponsorships 3,500$ 2,700$ 3,000$ Streetlamp Banners 4,000$ 5,050$ 5,000$ Total Income 146,700$ 146,950$ 147,200$ Expenses Management Fee 68,000$ 68,000$ 71,400$ Total Expenses 68,000$ 68,000$ 71,400$ Payroll Expenses Maintenance Staff 20,000$ 21,000$ 22,000$ Taxes 1,500$ 1,500$ 1,500$ Work Comp 2,000$ 2,000$ 2,000$ Maintenance Staff--Garage 6,000$ 9,000$ 9,000$ Taxes 750$ 750$ 750$ Work Comp 750$ 750$ 750$ Total Payroll Expenses 31,000$ 35,000$ 36,000$ Programs Christmas Lights 2,500$ 2,404$ 2,600$ Christmas Light Spider Repair 2,000$ 1,904$ 2,000$ Christmas Lights Storage 1,000$ 918$ 1,000$ New Banners 3,000$ 4,600$ 3,000$ Flower Expenses 17,000$ 17,350$ 17,500$ Flower Water 100$ 138$ 150$ Tree Purchases 2,500$ -$ 2,500$ Marketing 2,500$ 2,500$ 2,500$ Maintenance Supplies 1,200$ 1,000$ 1,200$ Garbage Bags 1,750$ 1,500$ 1,750$ Graffiti Supplies 750$ 650$ 750$ Mule Service & Fuel 1,000$ 1,000$ 1,200$ Truck Service & Fuel 3,500$ 2,500$ 3,500$ Truck Insurance 3,000$ 3,000$ 3,000$ Total Program Expenses 41,800$ 39,464$ 42,650$ Total BID Expenses 140,800$ 142,464$ 150,050$ NET INCOME 5,900$ 4,486$ (2,850)$