Loading...
HomeMy WebLinkAbout2001-12-03 Minutes, City CommissionMINUTES OF THE MEETING OF THE CITY COMMISSION BOZEMAN, MONTANA December 3, 2001 The Commission of the City of Bozeman met in regular session in the Commission Room, Municipal Building, on Monday, December 3, 2001, at 6:00 p.m. Present were Mayor Youngman, Commissioner Brown, Commissioner Frost, Commissioner Smiley, Commissioner Kirchhoff, City Manager Johnson, Planning Director Epple, Director of Public Service Arkell, City Attorney Luwe, Deputy Clerk of the Commission DeLathower (for the first portion of the meeting) and Acting Clerk of the Commission Arkell (for the remainder of the meeting). The meeting was opened with the Pledge of Allegiance and a moment of silence. In light of concerns that had been brought to staff's attention regarding the annexation agreement and resolution of annexation for Christ the King Church and Doug Smith, Associate Planner Chris Saunders requested that they be removed from the Consent Items for discussion. Minutes - January 18 and February 7, 2000, and January 30, November 13, November 19, November 26 and November 29, 2001 Mayor Youngman deferred action on the minutes of the meetings of January 18 and February 7, 2000, and January 30, November 13, November 19, November 26 and November 29, 2001 to a later date. Consent Items City Manager Johnson presented to the Commission the following Consent Items. Acknowledge receipt of staff report - annexation of 10.69 acres located along north side of West Babcock Street, immediately west of Gibson's and Kirk Park (The Dabney Company for the Estate of Eula May Lessley) (A-0109) Commission Resolution No. 3496 - statina City's intent to annex 10.69 acres located along north side of West Babcock Street, immediately west of Gibson's and Kirk Park {The Dabney Company for the Estate of Eula May Lesslev); setting public hearing for January 14, 2002 COMMISSION RESOLUTION NO. 3496 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, DECLARING IT TO BE THE INTENTION OF THE CITY OF BOZEMAN, THE INHABITANTS THEREOF AND THE INHABITANTS OF A TRACT OF LAND CONTIGUOUS TO SAID CITY OF BOZEMAN, AND HEREIN MORE PARTICULARLY DESCRIBED, TO EXTEND THE BOUNDARIES OF SAID CITY OF BOZEMAN SO AS TO INCLUDE SAID CONTIGUOUS TRACT WITHIN THE CORPORATE LIMITS THEREOF. Authorize City Manager to sign - Acceptance of Sewer and Water Pipeline and Access Easement and Agreement Carroll V. Henderson and Vera Henderson, Henderson Family Trust, and the Boys and Girls Club of Southwest Montana (southeast corner of intersection of Bridger Drive and Griffin Drive) 12-03-2001 -2- Authorize City Manager to sign - Contract Agreement for the Preparation of a Database - DTM Consulting - convert PlanninQ Deoartment's existing Access database from a single-user system to a multi-user application Authorize Mayor to sign - Findings of Fact and Order - Headlands Subdivision Planned Unit Development (subdivide 26.606 acres described as Tract A, COS No. 2220, into 32 single-family residential lots) (alonQ south side of Bridger Drive, ar)oroximately ~ mile eas~f its intersection with Story Mill Road) (P-0117) Exemption from subdivision review - allow for relocation of common boundary between Lots 8 and 9, Valley Commons Business Park Subdivision (northeast corner of Huffine Lane and Ferguson Avenue) - Big Sky Western Bank (E-0113) Approval of final plat for StoneRidge PUD Subdivision, Phase IIA (subdivide 8.37 acres described as Lot 5, StoneRidae Minor Subdivision PUD, into 9 commercial lots) (west of North 19th Avenue between Durston Road and West Oak Street) (P-0120) Award bid for dump/plow truck for Streets/Sanitation - Schedule I to Rocky Mountain Truck Center, Inc., Belgrade, Montana, in the bid amount of $78,551.71; Schedule II to Kois Brothers, Billines, Montana, in the bid amount of $33,880.00; Schedule III to Yellowstone Hydraulics, Billings, Montana, in the bid amount of $24,874.52 (for a total cost of $137,314.23) Award bid for recycling truck cab and chassis for the Sanitation Division - Schedule I to Rocky Mountain Truck Center, Inc., Bel.qrade, Montana, in the bid amount of $75,268.10; Schedule II not awarded; and Schedule III to Yellowstone Hydraulics, Billings, Montana, in the bid amount of $7,493.00 (for a total cost of. $82,761.10) Claims It was moved by Commissioner Brown, seconded by Commissioner Frost, 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 Brown, Commissioner Frost, Commissioner Smiley, Commissioner Kirchhoff and Mayor Youngman; those voting No, none. Authorize City Manager to sign - Annexation Agreement with Doug Smith and Christ the King Church - 29.271 acres lying along the north side of Durston Road and east side of Flanders Mill Road Commission Resolution No. 3495 - annexing 29.271 acres lying along the north side of Durston Road and east side of Flanders Mill Road Included in the Commissioners' packets were copies of the Annexation Agreements with Doug Smith and Christ the King Lutheran Church for 29.271 acres lying along the north side of Durston Road and the east side of Flanders Mill Road. Also included in the packets was a copy of Commission Resolution No. 3495, as approved by the City Attorney, entitled: COMMISSION RESOLUTION NO. 3495 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, PROVIDING FOR THE ANNEXATION OF A CERTAIN CONTIGUOUS TRACT OF LAND, HEREINAFTER DESCRIBED, TO THE CORPORATE LIMITS OF THE CITY OF BOZEMAN AND THE EXTENSION OF THE BOUNDARIES OF THE CITY OF BOZEMAN SO AS TO INCLUDE SAID CONTIGUOUS TRACT. 12-03-2001 -3- Associate Planner Saunders reviewed his memo dated December 3, noting that the annexation agreements have been executed by the landowners. However, he requested Commission direction on when paybacks for water and sewer need to be made to the Valley West Annexation, noting that it is clear the street paybacks are to be made at the time of annexation. City Attorney Luwe requested a one-week delay to give staff an opportunity to review the payback agreements for the Valley West Annexation. Director of Public Service Arkell reviewed the language in the payback agreements, concurring that street paybacks are to be made as properties are annexed to the city. The paybacks for water and sewer, however, stipulate the fees are to be paid at the time the properties connect to the systems or upon annexation to the city, but there is no clause stating "whichever occurs first". Mr. Bill Ranard, representing Christ the King Lutheran Church, stated they would like to see the annexation completed as quickly as possible. He recognized that they need to pay the street paybacks immediately and, while they would prefer to wait to pay the water and sewer paybacks, they are prepared to do so at this time. He then requested that the annexation not be delayed for a week. Associate Planner Saunders noted that paybacks are generally imposed when the benefits are received, and suggested that the water and sewer payback fees be collected at final site plan or final plat, which are the mechanisms typically used. Mr. Doug Smith questioned why paybacks should be made at this time, since there is no impact to any of the systems. He voiced concern that requiring the paybacks at this time will place a substantial burden on him. Mr. Rick Barber, representing Valley West, gave a history of the Valley West Annexation, noting that $3 million in infrastructure improvements were completed in December 1999; and a majority of those improvements were subsequently purchased through the creation of special improvement districts. The remainders of the water, sewer and street improvements are the subject of three separate payback agreements; and he feels the paybacks should be imposed at the time of annexation. Mr. Doug Smith noted his 160 acres are affected by the sewer payback requirement; and he will leave that property undeveloped if he is required to pay the monies at the time of annexation. He reiterated, rather, it would be more appropriate to pay the fees when the impacts occur. Commissioner Smiley suggested that street paybacks should be made at annexation, with the water and sewer paybacks being made at final site plan or final plat, whichever occurs first. Commissioners Frost, Brown and Kirchhoff concurred. It was moved by Commissioner Frost, seconded by Commissioner Smiley, that action on the annexation agreements and Commission Resolution No. 3495 be tabled for a period of one week so the agreements can be amended to reflect the street impact fees were paid at annexation and that water and sewer impact fees will be paid at final site plan or final plat, whichever occurs first. 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. Ordinance No. 1551 - amending the Bozeman Municipal Code by adding new Sections 1.01.110 and 2.40.060, providing for adoption under self-government powers all ordinances and regulations in effect on July 1, 2001, and superseding state law to the extent inconsistent with Bozeman Municipal Code Section 2.40.010 Previously distributed in the Commissioners' packets was a copy of Ordinance No. 1551, as prepared by the City Attorney, entitled: 12o03-2001 4- ORDINANCE NO. 1551 ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, PROVIDING THAT THE BOZEMAN MUNICIPAL CODE BE AMENDED BY ADDING NEW SECTIONS TO BE NUMBERED 1.01.110 AND 2.40.060 AS AMENDED BY UNCODIFIED ORDINANCE NO. 1537; PROVIDING FOR THE ADOPTION UNDER SELF- GOVERNMENT POWERS OF ALL ORDINANCES AND REGULATIONS IN EFFECT ON JULY 1, 2001 AND PROVIDING FOR SUPERSEDING STATE LAW TO THE EXTENT INCONSISTENT WITH BOZEMAN MUNICIPAL CODE SECTION 2.40.010. It was moved by Commissioner Smiley, seconded by Commissioner Kirchhoff, that Ordinance No. 1551, adding new Sections 1.01.110 and 2.40.060, providing for adoption under self- government powers all ordinances and regulations in effect on July 1, 2001, and superseding state law to the extent inconsistent with Bozeman Municipal Code Section 2.40.010, be finally adopted. 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. 1552 - amending the Bozeman Municipal Code by adding Chapter 11.01 to provide for the use of eminent domain powers and superseding MCA 7-5-4106 and the urban renewal law where inconsistent with this chapter Previously distributed in the Commissioners' packets was a copy of Ordinance No. 1552, as approved by the City Attorney, entitled: ORDINANCE NO. 1552 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 11.01 TO PROVIDE FOR THE USE OF EMINENT DOMAIN POWERS AND PROVIDING FOR SUPERSEDING MCA 7-5-4106 AND THE URBAN RENEWAL LAW SET FORTH IN MCA TITLE 7, CHAPTER 15, PARTS 42 AND 43 WHERE INCONSISTENT WITH THIS CHAPTER. Ms. Susan Smiley, 2502 West Babcock Street, noted that Mr. Art Wittich, attorney representing the West Babcock Landowners' Association, submitted a list of questions and asked if Staff Attorney Day-Moore would answer them. She stated their concern is how this will impact potential proceedings against those property owners in the county along West Babcock Street. She noted that two years ago, the Association offered to negotiate an exchange of land for right-of-way to improve the street in exchange for City services; however, they received no reply. The same letter was sent a year ago and, again, no comments were received from the City. This summer, the property owners received an offer to purchase the needed right-of-way, but it was at a price that was not fair or reasonable. She concluded by stating that if this ordinance infringes on their private property rights, the Association will fight it in court. Staff Attorney Patricia Day-Moore stated she received Mr. Wittich's letter late last week; and she intends to respond to his letter but not answer his questions directly. She stated this ordinance has no specific effect on the acquisition of right-of-way for West Babcock Street or Durston Road; it does supersede one portion of State law which requires passage of an ordinance to condemn property, and changes conflicting portions of the urban renewal law. She characterized the impact on county residents as minimal, noting it has no direct impact on condemnation actions for those rights-of-way. She also noted that the resolution process has a shorter timeline than the ordinance process. Responding to Mayor Youngman, City Manager Johnson confirmed that City staff has responded to Mr. Wittich's previous letters and, in fact, has had ongoing correspondence with him. 12-03-2001 -5- It was moved by Commissioner Kirchhoff, seconded by Commissioner Brown, that Ordinance No. 1552, amending the Bozeman Municipal Code by adding Chapter 11.01 to provide for the use of eminent domain powers and superseding MCA 7-5-4106 and the urban renewal law where inconsistent with this chapter, be finally adopted. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Kirchhoff, Commissioner Brown, Commissioner Frost, Commissioner Smiley and Mayor Youngman; those voting No, none. Ordinance No. 1553 - amending the Bozeman Municipal Code by amending Sections 10.28.010 and 10.28.030 and addin= Chapter 10.42. providing for establishment of truck routes throughout the city, and repealing Sections 10.28.040 and 10.28.080 Included in the Commissioners' packets was a copy of Ordinance No. 1553, as approved by the City Attorney, entitled: ORDINANCE NO. 1553 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, PROVIDING THAT THE BOZEMAN MUNICIPAL CODE BE AMENDED BY AMENDING SECTIONS 10.28.010, 10.28.030, ADDING A NEW CHAPTER 10.42 PROVIDING FOR THE ESTABLISHMENT OF TRUCK ROUTES THROUGHOUT THE CITY OF BOZEMAN AND PROVIDING FOR THE REPEAL OF SECTIONS 10.28.040 AND 10.28.080 OF SAID CODE. Included in the Commissioners' packets was a letter from Dan Guggenheim, 418 North Wallace Avenue, forwarding his comments regarding the proposed ordinance. Distributed just prior to the meeting was a letter from Dan Kaveney, 630 East Davis Street, forwarding his concerns regarding the ordinance, and a letter from Treasure State Oil, 622 East Tamarack Street, expressing concerns from a business standpoint. Staff Attorney Day-Moore asked for Commission guidance on this ordinance, stating that it is an enabling ordinance which gives the Commission the right to adopt a resolution establishing truck routes in the community. She cautioned that if the Commission wishes to regulate vehicles by weight, a study of each street must be conducted to determine how much weight it can handle before a resolution establishing truck routes can be adopted; and scales will be needed for enforcement. As a result, she has proposed an ordinance regulating the number of axles, which can be easily counted. She noted a packet of pictures illustrating the types of vehicles that would be prohibited and those that would be allowed was distributed just prior to the meeting. She indicated that this ordinance will essentially affect those vehicles weighing 26,000 pounds and up. The ordinance does not prohibit trucks from using a specific street on which they have a destination point; it simply precludes them from using streets as thoroughfares unless designated as part of the truck route. Responding to Commissioner Frost, the Staff Attorney stated she does not feel it is necessary to include State regulations in the ordinance. She also cautioned that State law does not require that the GVW be posted on the truck. She recognized that this ordinance, as written, doesn't address all of the vehicles that people may have anticipated. She concluded by noting that, once the Commission has established specific truck routes, the Director of Public Service has estimated that 64 signs will need to be installed at a cost of $100 each prior to enforcement of those routes. Responding to questions from Mayor Youngman, the Staff Attorney stated that this ordinance gives the Director of Public Service the authority to post "no through street" signs, which allows for local delivery only and precludes any traffic using the street as a shortcut. Responding to concerns voiced by Commissioner Smiley, the Staff Attorney recognized that people must be able to conduct their business under this type of ordinance. Director of Public Service Debbie Arkell cautioned that the City cannot regulate State routes, and displayed a map of possible "no through traffic" routes. 12-03-2001 6- Mr. Bill Ogle, Kenyon-Noble, characterized this ordinance as "trying to fix something that isn't broken". He asked that the City consider the local trucking companies and get input from them in the drafting of this ordinance. He noted trucks have obvious routes that take them away from loading and primary delivery; and some of the zoned areas naturally have heavy concentrations of truck traffic that need more access than just a straight line through the area. Mr. Greg Poncelet, Montana Ready Mix, distributed a list of 98 businesses north of East Main Street and east of North Rouse Avenue that he knows have trucks serving them. He stressed that some areas are zoned heavy industrial, and those areas have a lot of vehicles. He noted that he has been routing heavy trucks around I~ozeman for 25 years, and he uses the most feasible route to reach a destination. He concluded by encouraging the Commissioners to ask those in the trucking industry a lot of questions prior to adopting this ordinance. Mr. Doug Alexander, Story Distributing Company, noted he has been in business since 1976. He asked that the Commission contact the trucking industry and take more time in developing a possible ordinance. Mr. Rick Ogle, Kenyon-Noble, questioned why the Commission is considering truck routes to keep trucks off the streets. Mr. Jay O'Neil, Treasure State Oil, questioned how this ordinance is to be enforced, and how one will determine a truck is not making a local delivery. Mr. Tom Simkins, Simkins Hallin, cautioned that this ordinance will have a vast impact on how they do business, and suggested that its success and acceptance will be dependent on the cooperation of those running trucks. He also noted that the Commission cannot obtain the input needed to write a decent ordinance in the next week or two. Mr. Ken Carrier, Consolidated Freightway, noted he has been delivering for fifteen years, and he does not understand the definition of "through truck route". Mr. Dan Alexander, Story Distributing Company, noted his business makes a living by delivering their product. He stated they are the most heavily regulated business in the country, and his employees operate within city limits with integrity. He concluded by noting the Commission needs better information before enacting an ordinance. Mr. Jon Gerster, 719 North Wallace Avenue, acknowledged the need for trucks to access businesses; his concern is the residential areas, and the integrity and safety of those areas as well as the protection of the infrastructure of the older streets. He stated it is appropriate to designate truck routes and he feels the definition of truck and trailer should be strengthened. Mr. Mark Dutiel, Molerway Freight Lines, stated they do not enter residential neighborhoods unless making deliveries. He noted their drivers are professionals who are heavily regulated and who respect neighborhoods. Responding to Commissioner Frost, City Attorney Luwe stated that Commissions have contemplated a truck route ordinance for a number of years; and in March, staff received direction to draft an ordinance for consideration. Commissioner Smiley stated she does not support gentrification of a part of the community that lives next to an industrial area, and is now attempting to push that industrial section out. She noted that this ordinance is targeting areas where businesses are located, particularly the northeast sector; and she does not feel it should be considered any further. Mayor Youngman noted that the primary reason for considering this ordinance is that, for a number of years, the Commission has been hearing that increasing numbers of trucks are using neighborhood streets, affecting the safety and stability of those residential areas. Also, trucks have become larger and heavier, and allowing them to travel on streets not built to handle that type of traffic is resulting in damage to the City's infrastructure. She noted the transportation plan identifies 12-03-2001 -7- truck routes, and this ordinance would enable the Commission to designate them. She concluded by welcoming additional information from the trucking industry on what would be workable. Commissioner Kirchhoff concurred with Mayor Youngman's comments, noting that this ordinance has been prepared in response to expressed community concerns. He stressed the importance of co-existence, and noted he would like to see effective compromises that result in no negative impacts on businesses. Commissioner Frost noted that most businesses are operating in an appropriate manner; this ordinance is designed to address those few businesses that are not. Commissioner Brown stated he supports the concept, noting this ordinance is primarily in response to concerns from neighborhoods. Commissioner Smiley requested that action on this ordinance be delayed for one week to give an opportunity for further public input, particularly from those involved in the trucking industry. Responding to City Manager Johnson, Mayor Youngman suggested that a tour be delayed until specific routes are discussed. It was moved by Commissioner Brown, seconded by Commissioner Frost, that action on Ordinance No. 1553 be tabled for a period of one week. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Brown, Commissioner Frost, Commissioner Smiley, Commissioner Kirchhoff and Mayor Youngman; those voting No, none. Mayor Youngman requested that additional written comment be submitted by 5:00 p.m. on Wednesday, December 5. Break 7:35 to 7:45 p.m. Mayor Youngman declared a break from 7:35 p.m. to 7:45 p.m., in accordance with Commission policy. Ordinance No. 1554 - amending the Bozeman Municipal Code by adding Chaoter 2.96, providing for a living wage to employees of the City and to employees of businesses receiving financial assistance from the City Included in the Commissioners' packets was a 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. Distributed just prior to the meeting was a copy of the pay matrix from Montana State University, as submitted by Commissioner Brown. At Mayor Youngman's request, City Attorney Luwe reviewed the provisions of this proposed ordinance. He stated the ordinance pertains to City employees, and recipients of financial assistance through either the CDBG economic development revolving loan fund or the tax abatement program for new and expanding industries. He noted that the ordinance also includes a provision for the 12-03-2001 8- Commission to grant a variance from the requirements of this ordinance for those receiving financial assistance in unique circumstances, following a public hearing. Mayor Youngman stressed that this ordinance would only affect those businesses receiving financial assistance from the City and City employees. She recognized that some businesses have voluntarily complied with the living wage as published by the Montana People's Action, and characterized that as a moral incentive and not a requirement. Ms. Pamela Pride, 315 South 13th Avenue, noted that she is impressed with the Commission's accomplishments since she moved here a year ago; however, she is unimpressed with the Bozeman Daily Chronicle's coverage, which is often inaccurate. She noted that the Montana People's Action has recommended a living wage, yet the Commissioners make well below that wage, and proposed that the Commissioners also be included in the living wage ordinance to compensate them for their hard work and diligence. Mr. Greg Metzger, Montana Furniture, spoke in opposition to the practice of giving people wages that they haven't earned, noting that those who don't earn $9.00 per hour generally need training and experience. He voiced appreciation for the amount of work that has gone into the ordinance to date, and characterized it as marginally acceptable as revised. He concluded by stating he also feels the Commissioners should be included in the living wage ordinance. Ms. Laura Dalton, 201 South 6th Avenue, representing the Montana People's Action, stated this ordinance is a way to ensure accountability for use of public monies, including revolving loan fund monies, tax abatements and contracts with the City. She stated that studies of living wage ordinances in other communities show very Iow to no impact in terms of job loss and no increase in contract rates to cities. She further noted that the ordinance, as proposed, will affect fewer than 1 percent of all workers in the community. She suggested that employees will give back in productivity and lack of turnover. She then distributed copies of an article entitled Choosing the High Road, which reveals that a living wage ordinance can benefit business when contracts are included because it levels the playing field for all businesses. She encouraged the Commission to look at the source of the information they receive, noting that much of the anti-living wage information originates from the Employment Policy Institute, a conservative think tank that is primarily funded by fast food restaurants. Mr. Dan Himsworth, Insty Prints, stated that increased costs will definitely impact the profit in his business, noting that he currently pays a living wage to all of his employees. He then encouraged the Montana People's Action to join the community in addressing health care issues. Ms. Kelly Pollington, 16 Lancelot Lane, Montana People's Action, stated the City should be more concerned about losing good paying jobs than potential lay-offs. She stated the free market economy is no longer fair when certain businesses get tax breaks. She noted that her increase in wage to $10 an hour has made a huge difference in her standard of living, stating that those who don't make a living wage cannot contribute to the financial vitality of the community. She concluded by noting that, to retain good employees, an employer needs to pay a wage that allows them to live and support their families. Mr. Spencer Williams, WestPaw Design, stated he has owned the company for six years, noting it began in Livingston and recently moved into a new building next to ILX Lightwave. He noted that, in six years, he has gone from 5 to 50 employees, and if he were required to increase the wage at six months to $9.00 per hour, they would lose those jobs because his competitors are located in foreign countries where the wages are much lower. He noted that his employees are loyal because of the work environment and great benefits. He concluded by stating that he is not opposed to the ordinance, but the wage would result in his company not being able to continue its growth. Mr. Sky Wookey Sterry, co-owner of Wookey Backpacks, stated their business was started in 1997. At the present time, they pay $6.75 per hour, and are scheduled to increase that rate to $8.00 in their business plan. He noted the economy sets the price for a product, no matter how well made it is; and they cannot compete with foreign markets while paying $9.00 per hour. He noted one of his concerns is that a living wage has the potential of driving businesses toward Belgrade. He 12-03-2001 9- stated the basic tenants of a living wage are flawed, and noted that employees need to earn their wages. He suggested that, for those companies receiving financial assistance, there could be an agreement to base their wages on profitability rather than a set dollar amount. Ms. Debra Gill, Chair of the Bozeman Area Chamber of Commerce Board of Directors, noted that the ordinance has been available for a very brief period of time, and requested that the community be given more time to study it and provide feedback. She cautioned the Commission to not look at studies from big cities, which are not comparable to Bozeman. She noted that businesses believe this ordinance will have an impact; and the result will be a plethora of seasonal and part-time jobs that exempt them from the provisions of this ordinance. She stated the result of this ordinance will essentially be a living wage for the entire community because people will work where they can earn more money. She then stressed that the CDBG revolving loan fund monies are typically loans that must be repaid with interest. She concluded by stating that, in the end, this ordinance will actually hurt those it is designed to help because it will drive the cost of living up in the community. Ms. Gina Morrison, Morrison Creative Advertising, stated she has had her business for seven years. She characterized the living wage as a minimum wage issue, which has historically been dealt with by Congress. She voiced her disagreement with the strategy being used, including the raising of City employee wages which will result in increased taxes. She characterized the CDBG economic development revolving loan fund program as a wonderful program, and she does not believe that companies using it should be held hostage by requiring them to pay a higher wage. Mr. Todd Bailey, 1112 South Willson Avenue, stated he is a carpenter who will make less than $15,000 this year and who lives in a garage apartment that costs $600 per month. He voiced support for the ordinance, noting that those who don't make a living wage are losing ground when trying to meet their financial obligations. He noted that government should not do business with companies that don't pay a living wage. Mr. Nicolai Cocergine, United Food and Commercial Workers International Union in Butte, stated his support for the ordinance and urged its adoption. He stated that public monies should not be used to subsidize employers who don't pay a livable wage. Stacy Hougland, 406 North 3rd Avenue, urged adoption of the ordinance, noting that assistance provided by the City should result in people making a decent living. Mr. David Smith, Executive Officer of the Bozeman Area Chamber of Commerce, noted that the City did not pay anything to obtain the monies in the CDBG economic development revolving loan fund, and it now loans those monies out at interest rates generally between 5 and 8 percent. He questioned if any tax dollars are actually lost in the tax abatement program. He noted that most businesses in the community are local businesses, and the owners invest their monies in the community. He stated that when wages are raised, the employer's taxes also increase and the business profits decrease accordingly. He also questioned what the impact will be on the City's wage structure. Mr. Joe Zinner, 113 South Wallace Avenue, Montana People's Action, stated that money for the CDBG revolving loan fund is from taxes. He noted that a living wage takes workers off the various welfare programs and gives them pride. Mr. Robert Castro, United Food Commercial Workers//4 in Butte, spoke in support of the living wage, noting their union fights to get higher wages and health, welfare and pension packages. He noted the minimum wage in Montana is $5.15, while those in surrounding states are substantially higher. Mr. Kent Wood, Gallatin Development Corporation Small Business Center, stated he works on loan packages with applicants. He suggested that if this ordinance is adopted, it should be amended to not require owners of businesses to pay themselves a living wage. He noted that it is not uncommon for a company to not pay the owner in its initial years, citing Will Callahan as an example. He stated that another deterrent to using the program is the requirement that payroll records be made public. He noted that LigoCyte received a loan three years ago, and has created 18 jobs at an 12-03-2001 10- average wage of $44,000 per year; and he is concerned that this ordinance could affect that type of job. He concluded by cautioning that this ordinance could have a significant impact on the economy as a whole, and noted that steps should be taken to ensure that $9.00 per hour is the appropriate figure. Ms. Laura Brown, 614~ South 7th Avenue, Montana People's Action, stated shegraduated with a degree in psychology and communications and is currently working with disabled children for $7.75 per hour. She stated that it is difficult to make ends meet, and she would not be able to support a family on that wage. She concluded by stating that tax dollars should be used only to support those companies paying a living wage. Mr. Zac Russell, 227 South Bozeman Avenue, distributed copies of an article entitled Living Wage Cornrnunit/es: Laws and Policies, dated August 2000. He noted that many of the arguments heard regarding this ordinance are the same as those heard when raising the minimum wage has been considered over the past seventy years. Mr. Maury Steinman, Strategicom, commended the Commission for considering this ordinance, noting that in his business, he pays even part-time employees what is being proposed as a living wage. He stated, however, he does not believe this is the proper approach and voiced concern that it could actually hurt those it is intended to help. Mr. Bob Nichol, 1615 South Black Avenue, Gallatin Valley Green Party, stated his support for the living wage, noting there has been a hemorrhage of wealth from the working middle class to the upper class. He noted that the average wage has declined in the past twenty years while productivity has increased 60 percent. He stated the proposed $9 per hour living wage is $18,270 per year, while the threshold for poverty for a family of four is $17,516. He noted that this ordinance is aimed at the working poor, and it is puzzling to him that seasonal, temporary and part-time employees are excluded since they are the most vulnerable positions. He voiced his surprise that those who are against the ordinance are not affected by it. He concluded by questioning the three-year period to implement living wages, stating that those companies receiving financial assistance should not be allowed to exploit employees by paying poverty wages. Ms. Trisha Wookey, 626 East Peach Street, stated that they started Wookey Backpacks because neither owner could get a good job. She noted that, for the first three years, they moonlighted to make ends meet, and they now provide five other employees with jobs. She stated that it took them five years to be profitable, and they still don't take regular paychecks. She indicated that the lowest paid employee currently makes $6.75 per hour, and all of the employees know that they are working toward higher wages. She concluded by suggesting that the three-year waiver be extended to five years for starting businesses. Ms. Alicia Bradshaw, Gallatin Development Corporation, noted that everyone is concerned about making this a better community and, as a result, she is dismayed by the polarization on this ordinance. She encouraged the Commission to consider what is involved in starting a business, paying particular attention to the comments from the owners of Wookey Backpacks and WestPaw Designs. She cautioned that attaching the requirements of this ordinance to the revolving loan fund will impact new businesses; and Bozeman's economic growth is fragile given its lack of access to the markets, infrastructure and transportation that are available to other communities. She concluded by stating that business owners understand the need for higher wages, and they are here because they care about the quality of life in Bozeman. She asked, however, that the Commission not attach a living wage to the requirements for revolving loan fund monies, noting that will force them out of town, and concluded by reminding the Commission that those monies are paid back, generally with interest. Ms. Nina Cramer, Montana People's Action in Missoula, stated that MPA has members in all counties; and they are interested in good clean industry, fair wages and health care in Montana. She noted that Montana is Iow in the nation on wages; and encouraged passage of the living wage ordinance, characterizing it as a morally and fiscally responsible action. 12-03-2001 11 - Mr. Cort Felt, 610 Dell Place, Coordinator of the Gallatin Valley Green Party, stated that a living wage ordinance is one of the national goals of the Green Party; and they are working actively across the country to get a bill introduced in Congress. He characterized removal of contracts from this ordinance as short-sighted, noting that there has been no detriment to cities when included. He stated this is the worst gutted ordinance to be adopted. Ms. Carol Armstrong, 7200 South 19th Avenue, voiced concern about how this ordinance will affect those on fixed incomes because of increased taxes. Mr. Darrell Behrent, 208 Lindley Place, stated that all construction contracts are governed by the State's prevailing wage law; and the wages included in that law are substantially higher than the $9.00 proposed in this ordinance. Break - 9:25 to 9:40 p.m. Mayor ¥oungman declared a Commission policy. break from 9:25 p.m. to 9:40 p.m., in accordance with Ordinance No. 1554 (continued) - amending the Bozeman Municipal Code by adding Chapter 2.96, providing for a living wage to employees of the City and to employees of businesses receiving financial assistance from the City Commissioner Kirchhoff recalled that when campaigning in 1999, he heard concerns about wages. He recognized that the minimum wage has declined in value, and the proposed living wage is just above poverty level. He accepted the argument regarding accountability of tax dollars, and noted that 45 of the City's employees would be affected by adoption of this ordinance. He stated that, to bring those employees up to the living wage would cost the City $24,400, or .06 percent of the annual budget. He noted that some businesses have voluntarily increased their wages in light of the discussion about a living wage ordinance, and he hopes that more will follow. He stated that the proposed $9.00 wage is a compromise, and suggested that it not be lowered. He concluded by asking for Commissioner comment on whether temporary employees should be included, whether an exemption for bargaining units can be stricken and whether the variance in Section 2.96.090.B. should be retained. Commissioner Smiley stated her main concern is that, while things may look good after adoption of a living wage ordinance, in other states the result has been poorer circumstances for workers. She concluded by stating that all City employees should be included in this ordinance, even those in bargaining units. Commissioner Brown stated he has a problem with the ordinance. He stated that if part-time employees are excluded, fewer than 45 City employees will be affected, but he does not have the specific data. He recognized that the initial cost would be fairly Iow; however, he cautioned that it is certain to cause a huge ripple effect that will be very expensive. He noted that Missoula's ordinance establishes the living wage at $7.95, while this ordinance sets the wage at $9.00. He then distributed a list of other businesses that use tax dollars, including Montana State University, noting that most of those entities have an entry level wage of less than $9.00 per hour. The result of adopting this ordinance would be that the City would be paying well above the wages paid by MSU, the public schools and Gallatin County. He acknowledged the credibility of the comments made by Gallatin Development Corporation about the inability of start-up businesses to pay $9.00 per hour and, while he is sympathetic to the effort, he cannot support the ordinance. He suggested, rather, that Iow-income housing and tax credits would be a better approach. Commissioner Frost characterized adoption of this ordinance as imperative, since wages are currently at poverty level. He voiced appreciation for those business owners who have taken the lead and provided health care for employees. He recognized that information on the inclusion of contracts in this type of ordinance is mixed; however, he would like to see them included eventually. He concluded by stating that adoption of a livable wage ordinance is the moral and responsible thing to 12-03-2001 -12- do, and indicated he would be willing to compromise on a lower wage if other Commissioners are interested in doing so. Mayor Youngman noted that there is a large amount of compromise in the ordinance under consideration, but she would also be willing to consider further compromise. She indicated interest in gathering more information regarding contracts, and noted that she supports striking the exemption for bargaining units. City Attorney Luwe cautioned that, under self-government powers, the City is prohibited from affecting the collective bargaining for public employees; and to include it could jeopardize the ordinance. Mayor Youngman stated she does not want to pay City employees below poverty level any more; however, she recognized that the City cannot afford to raise everyone equally. She noted that Commissioners are not involved in the negotiation process, but suggested that the matter could be brought to the bargaining table. Responding to Commissioner Kirchhoff, City Attorney Luwe stated that the minutes from this discussion could be provided to the collective bargaining units during negotiations. Mayor Youngman voiced concern about leaving temporary employees out of the living wage requirement. City Manager Johnson responded that, for seasonal employees, their time is cumulative, so they eventually exceed the six-month probationary period. Commissioner Smiley stated that, if the living wage ordinance is adopted, it needs to apply to all City employees, even the part-time employees. She stated that her concerns focus on those employees earning $6.83 and below. Responding to Commissioner Kirchhoff, City Attorney Luwe stated that the variance in Subsection A. applies to tax abatement only, while Subsection B. applies to both tax abatement and revolving loan fund recipients. He characterized the criteria for exemptions as very broad and suggested that these sections be revised to require businesses to either comply or apply for an exemption. Mayor Youngman stated that when the City helps companies through government programs, the benefit needs to go to the employees, too. As a result, she indicated that she plans to check with the Gallatin Development Corporation and Chamber of Commerce over the next couple of weeks to see if other options are available for those companies wishing to utilize this financial assistance. She noted the Commission needs to address the issue of potential impacts on taxpayers in a creative manner, stressing that she feels the bottom of the wage scale can be raised without changing the top of the scale. Commissioner Brown voiced his disagreement, noting that if the bottom of the scale is moved up, the top will also move up. He cautioned that one cannot expect employees with medium skills to accept making the same wages as those with no skills. Mayor Youngman noted that during testimony this evening, the Chamber of Commerce indicated that it is working on training. She stated that every lender in the community has become involved in loans to Iow- and moderate-income families; and she suggested that they become involved in loans for start-up businesses as well. She noted that the minimum wage has not been adjusted for several years, and efforts to address it at the state and federal levels have failed; as a result, it must be addressed at the local level. She concluded by voicing her support for adoption of a living wage ordinance, noting that a modest ordinance sets a good standard for the community and provides for the City and recipients of financial assistance to pay above poverty level. Commissioner Brown stated that he cannot support a $9.00 per hour living wage, but he would be willing to consider an $8.22 per hour wage. 12-03-2001 13- In light of the outstanding questions and issues, the Commissioners discussed whether action should be delayed until next week, with a special meeting being called during the week of December 17 for final adoption. Following additional discussion, it was moved by Commissioner Frost, seconded by Commissioner Smiley, that Ordinance No. 1554, adding Chapter 2.96, providing for a living wage to employees of the City and to employees of businesses receiving financial assistance from the City, be provisionally adopted 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 Frost, Commissioner Smiley, Commissioner Kirchhoff and Mayor Youngman; those voting No being Commissioner Brown. Work session re issues to be discussed in future meeting with Community Affordable Housinq Advisory Board Included in the Commissioners' packets were copies of Commission Resolution No. 3037, establishing an affordable housing policy, Commission Resolution No. 3056, establishing the Community Affordable Housing Advisory Board (CAHAB) and identifying its responsibilities, and Chapter 5 of the 2020 Community Plan, entitled "Housing". Mayor Youngman stated the CAHAB will be meeting at 3:00 p.m. on Wednesday, at the new HRDC offices. Resulting from discussion, the Commissioners concurred that the CAHAB should advise the Commission on housing policies and practices, and should be encouraged to advise the Commission on affordable housing issues. The Mayor indicated that she plans to attend the meeting and will forward the Commission's direction. Work session - Commissioner discussion re possible direction to boards Mayor Youngman asked the Commissioners to forward any issues they may have to the City Manager during the upcoming week. Discussion - FYI Items City Manager Johnson presented to the Commission the following "For Your Information" items. (1) Copy of a sample press release for the emergency e-mail network, as submitted by Jason Shrauger, Gallatin County Disaster and Emergency Services. (2) Letter from Frank Harrington, 3125 West Babcock Street, dated November 22, regarding a recent letter to the editor. (3) Memo from Director of Public Service Arkell, dated November 21, to City staff regarding posting of effective times on the 15-mile-per-hour signs adjacent to Bogert Park. (4) (5) December (6) December (7) 3:00 p.m. List of planning projects to be considered at upcoming Commission meetings. Agenda for the County Commission meeting to be held at 9:00 a.m. on Tuesday, 4, at the Courthouse. Agenda for the Zoning Commission meeting to be held at 7:00 p.m. on Tuesday, 4, in the Commission Room. Agenda for the Community Affordable Housing Advisory Board meeting to be held at on Wednesday, December 5, at the new HRDC building. 12-03-2001 -14- (8) Agenda for the Development Review Committee meeting to be held at 10:00 a.m. on Tuesday, December 4, at the Professional Building. (9) Commissioner Brown noted that a couple weeks ago, he stated the Commission needs to be involved in the Clerk's duties and salary. He indicated that he wishes to discuss this issue further. In light of Commissioner Brown's concerns, he and Commissioner Kirchhoff were selected to meet with Personnel Director Pattie Berg on this matter. (10) City Attorney Luwe submitted the following. (1) Cautioned that if more than two Commissioners plan to take advantage of the street tour, a special Commission meeting must be noticed. (2) Stated he is working on the City's building code jurisdiction issue. (11) meeting. Commissioner Frost announced that he will be absent from next week's Commission Adjournment - 10:40 p.m. There being no further business to come before the Commission at this time, it was moved by Commissioner Smiley, seconded by Commissioner Kirchhoff, that the meeting be adjourned. 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. ATTEST: ROBIN L. SULLIVAN Clerk of the Commission 12-03-2001