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HomeMy WebLinkAbout2001-12-19 Minutes, City Commission, specialMINUTES OF THE SPECIAL MEETING OF THE CITY COMMISSION BOZEMAN, MONTANA December 19, 2001 The Commission of the City of Bozeman met in special session in the Commission Room, Municipal Building, on Wednesday, December 19, 2001, at 5:00 p.m. Present were Mayor Youngman, Commissioner Brown, Commissioner Frost, Commissioner Smiley, Commissioner Kirchhoff, City Manager Johnson, City Attorney Luwe and Clerk of the Commission Sullivan. The meeting was opened with the Pledge of Allegiance and a moment of silence. None of the Commissioners requested that any of the Consent Items be removed for discussion. SiQnina of Notice of Special Meeting Each of the Commissioners, in turn, signed the Notice of Special Meeting. Minutes - January 18 and February 7, 2000, and January 30, November 19, December 3, December 10, December 13 and December 17, 2001 It was moved by Commissioner Brown, seconded by Commissioner Frost, that the minutes of the meetings of December 10 and December 13, 2001, be approved as submitted. The motion carried by the following Aye and No vote: those voting No being Commissioner Brown, Commissioner Frost, Commissioner Smiley, Commissioner Kirchhoff and Mayor Youngman; those voting No, none. Mayor Youngman deferred action on the minutes of the meetings of January 18 and February 7, 2000, and January 30, November 19, December 3 and December 17, 2001 to a later date. Consent Items City Manager Johnson presented to the Commission the following Consent Items. Authorize City Manager to sign - Trail Corridor Easement - Clifford K. Christie and Sally Franklin Christie - 25-foot-wide easement on abandoned Chicago, Milwaukee, St. Paul and Pacific Railroad Company right-of-way adiacent to Tract 22, Northeast Annexation (1015 East Griffin Drive) Award proposal for 2002 pickup -Ressler Motors, Bozeman, Montana, in the amount of $38,040.00 Building Inspection Division report for November 2001 It was moved by Commissioner Frost, seconded by Commissioner Smiley, that the Commission approve the Consent Items as listed, and authorize and direct the appropriate persons to complete the necessary actions. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Frost, Commissioner Smiley, Commissioner Kirchhoff, Commissioner Brown and Mayor Youngman; those voting No, none. 12-19-2001 Special -2- Renewal of Beer, Wine and Liquor Licenses for Calendar Year 2002 This was the time set for renewal of the remainder of the Beer, Wine and Liquor Licenses for the Calendar Year 2002. A total of 13 applications have been received, along with the required fees. Included in the Commissioners' packets was a list of the establishments which have made application and paid the required fee, as follows: APPLICATIONS FOR BEER, WINE AND LIQUOR LICENSES CALENDAR YEAR 2002 APPLICANT BEER WINE LIQUOR TOTAL Catback, Inc. dba Bennigan's 1320 North 19th Avenue 500 $ 500 Heeb's East Main Grocery 544 East Main Street 200 2OO 4OO John Bozeman's Bistro 125 West Main Street 200 200 400 DTLP dba Soup Garage 451 East Main Street 200 200 4OO Althea Co. dba Grum's Deli 2107 North 7th Avenue 200 200 4O0 Althea Co. dba Grum's Market 2111 North 7th Avenue 200 200 4OO LaParilla 1533 West Babcock Street 500 500 Looie's Down Under 101 East Main Street 200 20O 4OO Montana Ale Works 611 East Main Street 500 500 O'Brien's Restaurant 312 East Main Street 200 2OO 4OO Osco Pharmacy #5238 1525 West Main Street 200 200 4OO Safeway #289 901 West Main Street 20O 2OO 4OO The Wok 319 North 7th Avenue 200 2OO -- 4OO Total - 13 Applications 2,000 $ 2,000 $ 1,500 $ 5,500 12-19-2001 Special 3- The City Manager recommended that the Commission approve the applications as submitted. It was moved by Commissioner Smiley, seconded by Commissioner Kirchhoff, that the Commission approve the renewal of Beer, Wine and Liquor Licenses for Calendar Year 2002 for the various establishments as listed above. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Smiley, Commissioner Kirchhoff, Commissioner Brown, Commissioner Frost and Mayor Youngman; those voting No, none. Ordinance No. 1554 - amendino the Bozeman Municipal Code by adding Chapter 2.96, providing for a living waoe to employees of the City and to employees of businesses receiving financial assistance from the City Included in the Commissioners' packets was a revised copy of Ordinance No. 1554, as prepared by the City Attorney, entitled: ORDINANCE NO. 1554 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, PROVIDING THAT THE BOZEMAN MUNICIPAL CODE BE AMENDED BY ADDING A NEW CHAPTER TO BE NUMBERED CHAPTER 2.96 PROVIDING FOR A LIVING WAGE TO EMPLOYEES OF THE CITY OF BOZEMAN AND TO EMPLOYEES OF BUSINESSES AND OTHER RECIPIENTS OF FINANCIAL ASSISTANCE FROM THE CITY OF BOZEMAN. Responding to Mayor Youngman, City Attorney Luwe reviewed the recommended minor changes. Those changes include, under Section 2.96.020. D. and E., insert the words "most recent" in front of "Consumer Price Index" to clarify the document being referenced; and, under Section 2.96.050.E., change to read "~ An employee may file ..." to correct a grammatical error. Commissioner Brown stated that, the way it is written, the ordinance would take effect in January 2002 but the living wage would not become effective until July 1,2002. With the Consumer Price Index (CPI) adjustment in Sections 2.96.020. D. and E., he is concerned that the result would be increases in wages at both July 1, 2002, and January 1, 2003, which would effectively double the raises to employees in a single year and result in twice the amount of CPI adjustment for a six- month period. He also cautioned that, given the language of those sections, it could be that employees of a bargaining unit, who receive raises on July 1, may expect the additional CPI adjustment at January 1; and the fact that the City negotiates two-year contracts could further complicate the issue. He suggested the simplest solution would be to eliminate the CPI adjustment, noting that the Commission would still have the option of revisiting this issue and adjusting the salary at a future date. Mr. Bob Nichol, 1615 South Black Avenue, representing the Green Party, noted that the lowest paid people in the country tend to be female, many of whom are single mothers raising children. The census figures show that in Montana there are over 21,000 single parents with children, and 22 percent of those children are in poverty level situations; and the living wage will provide a minimum level of economic security. He then suggested that the ordinance could be revised to change the effective date of the CPI increase from January 1 to July 1 each year, stressing that the CPI adjustment is a critical component of the living wage. He further suggested that the $8.50 wage should apply to all types of employees, including probationary, seasonal, temporary and part-time employees. He questioned why a company with ten or less employees should be exempted from the requirements of this ordinance; rather, he suggested they should be simply given the option of seeking a variance before financial assistance is granted. He concluded by characterizing the living wage as a baby step to addressing those in poverty and establishing a new value for what people's work is worth. Mr. David Smith, Executive Director of the Bozeman Area Chamber of Commerce, forwarded statistics from the Job Service for November, noting that twice as many jobs were available as clients to fill them; the area's unemployment rate is 2.6 percent; and the average wage of the jobs filled was 12-19-2001 Special 4- $8.80. He reminded the Commissioners that voters in Missoula defeated the living wage ordinance; and Kalamazoo recently defeated an ordinance. He concluded by noting that many of the most recent recipients of financial assistance from the City consistently exceed the wage listed in the ordinance, and stating that government intervention is not necessary. Mr. Brian Gertiser, 1010 East Olive Street, noted he is a local business owner. He cautioned the perception is that the Commission is anti-business and questioned how much the Commission is willing to do to increase that perception. He also expressed concern that it appears a broader application will be sought once an ordinance is adopted. He concluded by asking how the City will handle the situation when no one bids on its contracts. Mr. Bobby Cove, 110 Bronco Street, noted that adoption of this ordinance is setting a standard for Bozeman; and businessmen incurring additional labor cost will simply increase prices. He cautioned that this will not accomplish what the City wants, and stated he is totally against it. Ms. Kelly Pollington, 16 Lancelot Lane, stated that the Chamber of Commerce has opposed the Montana People's Action every year in Helena when they have tried to get the minimum wage raised. She characterized this ordinance as not being anti-business in any way; rather, it requires fiscal responsibility and accountability for those receiving assistance from the City. Mr. Joe Zinner, 113 South Wallace Avenue, noted there has been discussion about the ripple effect of the increased salaries; however, there has not been similar discussion about the ripple effects of increased rents, the increased costs of insurance, or other increased fees. Mr. Greg Metzger, Montana Furniture, stated he would like to see the CPI adjustment eliminated from the ordinance and the addition of a sunset provision that allows for a review of wage levels every two years. Responding to a question from Mr. Metzger, City Attorney Luwe stated that the language in Section 2.96.020.J.d. complies with State law, which requires that the City go through a competitive selection process to fill vacancies. Mr. Metzger voiced concern about Section 2.96.050.A., which requires a recipient to show payroll records for the period of the assistance or five years, whichever is longer, stating he feels it is inappropriate to require a business to show its records after the assistance is ended. He also questioned if Section 2.96.060 means the City does not have to pay a living wage because of collective bargaining agreements. He stated that if young growing companies are being required to meet the requirements of this ordinance, the City should be required to do so, too. He cautioned that raising the lower wages will result in a ripple effect throughout the wage structure, since those higher in the scale will expect the same increase as those lower on the scale. He concluded by encouraging the Commissioners to not vote for this ordinance. Mr. Jeff King, 339 Peace Pipe Drive, voiced concern that Section 2.96.020 requires the City or a business to increase an employee's salary at six months, even if the probationary period is longer. He suggested that the employer should be allowed to give the salary increase at the end of probation, rather than at six months. Mr. King noted that his family moved from Ireland in 1847 because there was no living wage in Ireland. He forwarded his family rule that, if you're unhappy in a work situation, try to negotiate change; if you can't negotiate that change, find a new situation. From 1953 to 1971, his family moved seven times to get better wages. He stated every employment situation should be mutually beneficial; and it is not government's role to intervene. As a result, he encouraged the Commission to not adopt this ordnance. Responding to questions, City Attorney Luwe stated that State law will govern whether a recipient's financial information submitted for review is subject to protection under privacy laws. He suggested that if there is an expectation of privacy, such as employee names, it is possible the information would not be disclosed. 12-19-2001 Special 5- Mr. Kent Wood, Gallatin Development Corporation, noted that an owner of an S corporation is considered an employee of the company; and those owners typically do not pay themselves unless monies are available. He cautioned that this ordinance would require them to pay themselves a wage, which would create difficulties for the business as it starts up and begins its growth. He concluded by asking about the timing of the requirement for submitting records for City review. Ms. Alicia Bradshaw, Executive Director of the Gallatin Development Corporation, noted that their agency administers the revolving loan fund. She cautioned that the privacy issue will create a hurdle for the use of those funds, since the companies seeking to use them are trying to keep their financial records as private as possible. She stated that, from her organization's standpoint, this ordinance targets the wrong businesses because these new businesses generally become good stewards and pay good wages once they've become established. She concluded by stressing that this program has guidelines to follow, and it's not "a giveaway program". Ms. Laura Dalton, 201 South 6th Avenue, encouraged adoption of the ordinance, noting it will allow both proponents and opponents to relax and see how it works. She stated that Montana People's Action and other groups nationwide working on living wage ordinances have found a dirth of data on such ordinances in small towns, so MPA is seeking a grant to study how the ordinance is working in Bozeman if it is adopted. She noted that the ordinance will affect I percent or fewer of the employees in the community, and indications are that it will have very, very little economic effect and no discernible ripple effect. She characterized it, rather, as a practical statement of principle and a way to ensure that public monies are spent on things which give the best return on the investment. Ms. Dalton noted that the data provided in the Job Service report reflects an average wage of $8.80 for the jobs filled; however, Bozeman has no lack of unfilled minimum and Iow-wage jobs. She suggested that the City should set the example, and suggested that in the long run the living wage ordinance could help small businesses by putting pressure on the larger businesses to treat their employees better. Ms. Debra Gill, 8761 Trail Boss Road, noted that she has not changed her position, and stated that 95 percent of the cities with living wage ordinances have populations in excess of 100,000. She noted that there is a dirth of information on the impacts of a living ordinance on a small community, and stated she does not want to see Bozeman turned into a research project. She questioned the need for a living wage ordinance that affects fewer than 1 percent of the residents, and cautioned that the result could be businesses not coming into the community. She stated that, when evaluating impacts of the ordinance, there is a strong possibility that no one will know about those lost business opportunities, so they cannot be factored into the results. City Attorney Luwe provided responses to the questions raised. He noted that the extended period for financial records was to ensure that reduced compensation or discrimination against an employee did not occur after the financial assistance ended; however, he indicated that provision could be revised if the Commission so desires. He indicated that, based on Monday's direction, a small employer would not be required to provide those records for three years but larger businesses would be required to provide the records annually or upon complaint. He cautioned that the collective bargaining exemption cannot be eliminated for the City because of State law; however, that requirement does not apply to private entities as the ordinance is currently written. He concluded by reiterating that if there is an expectation of privacy for those records submitted to the City, that privacy would normally be protected. He indicated that, in the case of a discrepancy about the privacy of those records, there is a mechanism for submitting those records to the court for review and a determination. Responding to Mayor Youngman, the City Attorney stated that Section 2.96.020.E. could be revised to not require owners of S corporations to pay themselves a living wage. Mayor Youngman noted the Commission has received two suggestions regarding the CPI provision and asked for Commission feedback. She cautioned that removing the CPI requirement would allow the living wage to stay at $8.50 forever rather than increasing gently over the years. 12-19-2001 Special -6- Commissioner Brown noted that changing the date might solve one problem; however he is concerned that it would not address the potential of an employee receiving both a negotiated increase and a CPI increase in the same year. He also indicated that a specific date could inconvenience private companies, but he recognizes the need for adjustment on a date specific. He voiced concern that this issue has become extremely complicated. Mayor Youngman stated that if the effective date for beginning CPI increases were January 1,2004, it would be beyond the term of newly negotiated two-year collective bargaining agreements. In response to the concerns voiced by Commissioner Brown, City Manager Johnson noted that, under this ordinance, employees of a bargaining unit that has negotiated a wage structure which falls below the living wage level in the second year of the agreement could be subject to the higher wages unless he bargains for a waiver. He cautioned that having to bargain for such a waiver can place both him and the bargaining unit in a bad position. Commissioner Kirchhoff suggested that if the effective date for CPI increases were changed to January 1, 2004, it would give staff time to come back with suggested revisions that would address those concerns. Commissioner Brown stated there is no easy way to include the CPI in the ordinance without the potential of "double loading" increases; and he won't vote for something that won't work. Break - 6:30 to 6:35 p.m. Mayor Youngman declared a Commission policy. break from 6:30 p.m. to 6:35 p.m., in accordance with Ordinance No. 1554 (continued) - amendinq the Bozeman Municipal Code by adding Chapter 2.96, I~rovidin.q for a livinQ waqe to employees of the City and to employees of businesses receiving financial assistance from the City Mayor Youngman suggested that the references to Consumer Price Index in Sections 2.96.020D. and E. be deleted in light of the concerns voiced by Commissioner Brown, noting that adjustments to the living wage can be addressed at a future date. Responding to Commissioner Brown, City Attorney Luwe suggested that Section 2.96.020.B., be revised to say "Covered regular employee does not include part-time, seasonal, temporary, short- term or probationary employees or an employee who is also an owner under a Chapter S or C corporation." Mayor Youngman stated her support for the ordinance, noting that the Commission has tried to address the concerns voiced by business owners. She drew attention to the fact that the beginning wage is the same in both Missoula and Bozeman; and this ordinance is both stronger and weaker than the Missoula ordinance. She stated that government should be create jobs with wages on which people can live without government assistance to make ends meet, and characterized this as a reasonable government goal. She emphasized that the Commission has made 18 policy changes for business and 0 policy changes for Iow-income people. She noted that, however little the direct effect of this ordinance may be, it sets a standard and serves as an expression of commitment. She stated that the Commission revised the revolving loan fund guidelines a few years ago, at the Gallatin Development Corporation's request, to delete the wage standard in an effort to attract more applicants. She noted that she regretted the deletion at that time; and it has resulted in no more applicants. She concluded by indicating an interest in working together to identify additional options to assist new businesses paying employees a living wage rather than having business flourish at the expense of its employees. Commissioner Smiley stated that, while she had fully intended to support the ordinance when she came to the meeting, she cannot do so with the last minute revisions that have been discussed. 12-19-2001 Special -7- She voiced her continued interest in an ordinance that applies to the City and can serve as a seed for others to pay living wages. She briefly highlighted some articles reflecting what has happened recently in companies around the country, noting that those lay-offs do have an impact on Bozeman, as evidenced by 200 applicants for a single position recently. She noted that Montana is 46th in the nation economically. She concluded by stating she recognizes both sides of the issue and, while she supports the concept of a living wage, she cannot support this ordinance. Mayor Youngman noted that she would have preferred a unanimous vote on this ordinance but, since that does not seem possible, she feels it is imperative to include the CPI, with a January 1, 2004, effective date. City Attorney Luwe noted that, from a collective bargaining standpoint, tying the CPI to July 1, the beginning of the fiscal year, would be easier. The Commissioners agreed that the CPI increase should be tied to the beginning of the fiscal year for each individual business affected by this ordinance, beginning with the fiscal year starting in 2004. City Attorney Luwe reviewed the revisions to the ordinance resulting from the above discussion, as follows: (1) Section 2.96.020.B. - revise to say "Covered regular employee does not include part-time, seasonal, temporary, short-term or probationary employees or an employee who is also an owner under a Chapter S or C corporation."; (2) Section 2.96.020.D. - change the second sentence to read "Cffo~,,vo Jar, uary I,~vv~,~^^~ o,,,, ..... v,, the first d~y u, ~o,,vo, y ir, ~o~,~, yoo, thereafter, the The health benefits "' (3) Section 2.96.020.E.- change the second sentence to read ............ J~nu~ry' I,~,~,.~"^^~, o,,,, ,,,, the first,,o~ ................. ~, .,o,,,,o,~ ,,, e~ch year thereafter, Beginning on or after January 1, 2004, the living wage described herein shall be increased at the beginning of the fiscal year of the City or Recipient, or annually, each year thereafter by an amount equal to the change in the most recent Consumer Price Index, Class "B" and "C" for the Western Region."; and (4) Section 2.96.050.E. - change first sentence to read "~ An employee may file a complaint alleging a recipient's violation of this section." Commissioner Frost voiced his support for this ordinance, characterizing it as a small step and the right thing to do. Commissioner Brown stated he has many concerns about this ordinance and, therefore, cannot vote for it. He voiced appreciation for the Commission's willingness to review the ordinance after two years, although he suggested that within twelve months, the Commission will know if there are any ill effects. He proposed that the Gallatin Development Corporation review a company's financial records rather than the City, stating he is uncomfortable with being put in a position of looking at people's private records. He stated that he has spent a lot of time and effort on this ordinance and had planned to support it; however, he cannot in light of the concerns he has previously voiced. It was moved by Commissioner Kirchhoff, seconded by Commissioner Frost, that Ordinance No. 1554, providing for a living wage to employees of the City and to employees of businesses receiving financial assistance from the City, be finally adopted as revised to include the above listing submitted by City Attorney Luwe. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Kirchhoff, Commissioner Frost and Mayor Youngman; those voting No being Commissioner Brown and Commissioner Smiley. Discussion - FYI Items City Manager Johnson presented to the Commission the following "For Your Information" items. (1) Letter from Alex Phillips, member of the Bozeman Area Bicycle Advisory Board, dated December 18, encouraging the installation of bike lanes in the Baxter Meadows Subdivision. (2) Copy of a letter from Engineering Assistant Andy Kerr to property owners in the 1900 block of South Black Avenue regarding impending parking restrictions. 12-19-2001 Special -8- (3) Copy of the press release regarding the garbage collection schedule during the upcoming holiday weeks. (4) expansion. Copy of a letter and information sheet from WalMart soliciting support for their store (5) Copy of a cover letter from Jeff Rupp, Executive Director of the Human Resource Development Council, dated December 18, forwarding a copy of the 20-year renewal contract to maintain Greenwood Plaza as an affordable housing project. Adjournment - 7:10 p.m. There being no further business to come before the Commission at this time, it was moved by Commissioner Kirchhoff, seconded by Commissioner Smiley, that the meeting be adjourned. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Kirchhoff, Commissioner Smiley, Commissioner Frost, Commissioner Brown and Mayor Youngman; those voting No, none. ATTEST: ROBIN L. SULLIVAN Clerk of the Commission 12-19-2001 Special