HomeMy WebLinkAbout2001-10-08 Minutes, City CommissionMINUTES OF THE MEETING OF THE CITY COMMISSION
BOZEMAN, MONTANA
October 8, 2001
The Commission of the City of Bozeman met in regular session in the Community Room,
Gallatin County Courthouse, 311 West Main Street, on Monday, October 8, 2001, at 6:00 p.m.
Present were Mayor Youngman, Commissioner Frost, Commissioner Smiley, Commissioner Kirchhoff,
City Manager Johnson, Director of Public Service Arkell, City Attorney Luwe and Clerk of the
Commission Sullivan. Commissioner Brown was absent.
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.
Authorize absence of Commissioner Brown from this meeting
It was moved by Commissioner Frost, seconded by Commissioner Smiley, that the Commission
authorize the absence of Commissioner Brown from this meeting. 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, none.
Minutes - January 18 and February 7, 2000, and January 30, April 20, September 4, September 10,
September 17, September 24 and October 1, 2001
It was moved by Commissioner Smiley, seconded by Commissioner Kirchhoff, that the minutes
of the meetings of September 10 and September 17 be approved as submitted. The motion carried
by the following Aye and No vote: those voting No being Commissioner Smiley, Commissioner
Kirchhoff, Commissioner Frost 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, April 20, September 4, September 24 and October 1,2001 to a later date.
Consent Items
City Manager Johnson presented to the Commission the following Consent Items.
Acknowledge receipt of staff report - request for annexation of 156.96 acres located
in the W½ of the SE~4 and the E½ of the SW~4 in Section 4, T2S, R5E, MPM
{north side of Durston Road approximately 1300 feet west of its intersection
with Cottonwood Road) (A-0107)
Commission Resolution No. 3485 - intent to annex 156.96 acres located in the
of the SE% and the E½ of the SW% in Section 4, T2S, R5E, MPM (north side
of Durston Road approximately 1300 feet west of its intersection with
Cottonwood Road); set public hearing for November 13, 2001
COMMISSION RESOLUTION NO. 3485
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
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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.
Claims
It was moved by Commissioner Kirchhoff, 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 Kirchhoff, Commissioner Frost, Commissioner Smiley and Mayor
Youngman; those voting No, none.
Informal review - Laurel Glen concept plan - 156.96 acres located in the W% of the SE% and the E%
of the SW% in Section 4, T2S. R5E. MPM (north side of Durston Road approximately 1300 feet west
of its intersection with Cottonwood Road)
Senior Planner Dave Skelton stated Mr. Hinesley has requested this informal review to obtain
further input from the Commission on the potential design of the interior street system in the
subdivision.
Mr. Chris Budeski, Allied Engineering, distributed to the Commission a packet showing three
different options for the street system in the proposed Laurel Glen development and asked for
Commission input on the alignment of the north/south collector street, noting that Option 1 is the
system shown in the previous application. He indicated that Commissioner input from the previous
informal review has been reflected in the preliminary plans for this development, and they have
attempted to provide curvilinear streets rather than straight streets. Based on feedback from the
City's Engineering Department, the north/south collector has been shifted on Option 2 so it aligns with
the mid-section line; however, the result is a straight street that could encourage increased speeds.
Option 3 is simply a blend of the other two options, with the collector being offset at Durston Road.
In response to Mayor Youngman, Mr. Budeski provided his analysis of Option 2, noting that
the straight alignment of the north/south collector street results in a north/south configuration for the
park rather than the east/west configuration previously proposed, with the town center in essential
the original location. He also noted that the street will have one roundabout rather than the two
previously proposed.
Responding to Mayor Youngman, Senior Planner Skelton confirmed that the subdivision
committee of the Recreation and Parks Advisory Board reviewed the first concept plan and voiced
support for the design. Based on their initial comments, he indicated that Option1 would be their
preference. He noted their one concern was the northernmost street crossing the stream; Mr. Budeski
responded that the street can be reconfigured to intersect with West Oak Street rather than crossing
the stream.
Senior Planner Skelton drew the Commissioners' attention to the park configuration in Option
2, cautioning that its long north/south face would be adjacent to a collector street, and that defeats
the desire for public access without high volume vehicular movement.
Responding to Mayor Youngman, Mr. Budeski stated he has not figured the road to park ratios
on the various options. He noted that the parkland dedication in the original concept plan exceeded
the amount required and indicated a willingness to ensure the parkland dedication in Option 2 is the
same as in the original plan.
Responding to Commissioner Frost, Mr. Budeski stated the offset of the collector street in both
Options 1 and 3 is 200 feet, centerline to centerline.
Further responding to Commissioner Frost, City Engineer Brawner stated the Engineering
Department is concerned about the proposal to not align the collector street on the mid-section line.
He noted that the City is becoming smarter on designing collectors so they are neighborhood friendly;
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and offsetting of the streets results in people using neighborhood streets not designed as collectors.
He then voiced support for the use of curvilinear streets, traffic circles, curb bulbs and landscaping
as mechanisms for reducing traffic speeds while allowing for movement of greater volumes of traffic.
He cautioned that having a park on a collector is not the best option and, if it must be adjacent to a
collector, the minor face should face that street rather than the major face.
The Commissioners discussed the pros and cons of the three options and identified a
modification to Option 3 that would result in aligning the north/south collector on the mid-section line
at Durston Road; and concluded by voicing support for the modified Option 3.
Ordinance No. 1548 - establishing an initial zoning designation of "BP", Business Park, on 20.33 acres
described as COS No. 331 (2501 North 19th Avenue)
Previously distributed in the Commissioners' packets was a copy of Ordinance No. 1548, as
approved by the City Attorney, entitled:
ORDINANCE NO. 1548
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA,
AMENDING THE BOZEMAN ZONE MAP'S ZONING DISTRICT DESIGNATIONS BY
ESTABLISHING AN INITIAL ZONING DESIGNATION OF "BP" (BUSINESS PARK
DISTRICT) ON 20.33 ACRES LOCATED IN THE NORTH HALF, SOUTHEAST
QUARTER, SECTION 3, TOWNSHIP 1 SOUTH, RANGE $ EAST, MONTANA PRINCIPAL
MERIDIAN.
It was moved by Commissioner Frost, seconded by Commissioner Smiley, that Ordinance No.
1548, establishing an initial zoning designation of "BP" on 20.33 acres commonly known as 2501
North 19th Avenue, be finally adopted. 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, none.
Appointment to Historic Preservation Advisory Board
Included in the Commissioners' packets was a memo from Deputy Clerk of the Commission
DeLathower, dated October 5, forwarding the list of applications.
The Commissioners requested that this item be delayed until next week, to give staff an
opportunity to analyze the current composition of the board.
Discussion - FYI Items
City Manager Johnson presented to the Commission the following "For Your Information"
items.
(1) Letter from J. Staffanson, 404 Cutting, voicing concern about the use of streets for
vehicle storage.
(2) Invitation and information on seminar entitled Living in Bear Country to be held at Big
Sky on October 8, as submitted by the Sierra Club.
(3) Copy of a letter from City Manager Johnson to County Grants Administrator Larry
Watson, dated October 3, inviting him to make a presentation to the Commission at the October 22
meeting regarding the formation of a county-wide solid refuse district.
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(4) Copy of a press release announcing that West Babcock Street will be closed between
South 3rd Avenue and South 4th Avenue, beginning October 8, for the installation of a new water
main.
(5) Copy of an invitation from the Gallatin County Planning Department to attend an
informational meeting on the creation of zoning districts on October 9.
(6)
District.
Minutes from the March 1 and April 5, 2001 meetings of the Local Water Quality
(7) Agenda for the School Board meeting to be held at 7:00 p.m. on Monday, October 8,
at Willson School.
(8) Agenda for the County Commission meeting to be held at 9:00 a.m. on Tuesday,
October 9, at the Courthouse.
(9) Agenda for the Development Review Committee meeting to be held at 10:00 a.m. on
Tuesday, October 9, at the Professional Building.
(10) Memo from Planning Secretary Carol Schott announcing there will be no Design Review
Board meeting on October 9 due to the lack of agenda items.
(11 ) Agenda for the Transportation Coordinating Committee meeting to be held at 9:30 a.m.
on Wednesday, October 17, in the Commission Room.
(12) City Manager Johnson reported on the Montana League of Cities and Towns
Convention held in Great Falls last week. He stated that on Wednesday, the City-County Managers
met in a day-long session, and received excellent presentations on different measurement systems
for performance evaluations. Also, representatives from the Cities of Great Falls and Helena reported
on an ICMA exchange program with newly-formed countries that are now under democratic rule and
have no infrastructure system or financial infrastructure. He noted, however, that many of those
countries recognize the importance of building codes, particularly in light of the non-earthquake
collapse of buildings as people change the structure of the first level walls.
(13) Mayor Youngman submitted the following. (1) Reported that international visitors will
be in Bozeman next week. (2) Stated that she briefly attended the League Convention, returning to
Bozeman for the announcement of the torch bearers for the Olympic relay and the beautification
awards presentation.
(14) Director of Public Service Debbie Arkell noted she had sent an e-mail request for
Commission input on acceptable street light fixtures, and has received another request for creation
of a lighting district. She indicated that, without Commission input, she will proceed with creation
of a district that includes the same fixtures as those approved in the two new districts.
(15) Director of Public Service Arkell reported on two applications for public assemblies, one
for a peace rally in Cooper Park and one for a sorority/fraternity block party. She indicated that both
applications are for events later this week, and staff is processing them via e-mail to shorten the turn
around time.
(16) Commissioner Smiley suggested that, if an issue needs immediate attention, an e-mail
"FYI" format may provide a viable option to the weekly lists given verbally.
Break - 6:54 to 7:00 p.m.
Mayor Youngman declared a break from 6:54 p.m. to 7:00 p.m., in accordance
Commission policy,
with
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Public hearing - Conditional Use Permit - Double S Holdings, LLC - allow sale of beer and wine for on-
premises consumption on Lot 1, Tract 5, Gardner-Simmental Plaza Subdivision (MacKenzie River Pizza,
145 Rawhide Ridge Road) (Z-01169)
This was the time and place set for the public hearing on the Conditional Use Permit requested
by Double S Holdings, LLC, under Application No. Z-01169, to allow the sale of beer and wine for
on-premises consumption on Lot 1, Tract 5, Gardner-Simmental Plaza Subdivision. The property is
located at 145 Rawhide Ridge Road, and houses MacKenzie River Pizza.
It was moved by Commissioner Smiley, seconded by Commissioner Kirchhoff, that the public
hearing be continued indefinitely. The motion carried by the following Aye and No vote: those voting
Aye being Commissioner Smiley, Commissioner Kirchhoff, Commissioner Frost and Mayor Youngman;
those voting No, none.
Public hearing - Certificate of Appropriateness to allow demolition of an existing shed and construction
of a new 14-foot by 22-foot .qarage and 6-foot-high cedar fence on Lots 15 and 16, Block 11, Butte
Addition, with deviations from Sections 18.18.050, 18.50.050.f.1. and 18.50.070.A., Bozeman
Municipal Code, to allow garage to encroach 3 feet into required side yard setback and 5 feet into
required rear year setback for accessory structures, and to allow fence to exceed the four-foot height
limit by two feet - Stephen T. and Missy Langlas for 1120 South 3rd Avenue (Z-01186)
This was the time and place set for the public hearing on the Certificate of Appropriateness
requested by Stephen T. and Missy Langlas under Application No. Z-01186, to allow demolition of
an existing shed and construction of a new 14-foot by 22-foot garage and 6-foot-high cedar fence
on Lots 15 and 16, Block 11, Butte Addition, with deviations from Sections 18.18.050,
18.50.050.f. 1. and 18.50.070.A., Bozeman Municipal Code, to allow the garage to encroach 3 feet
into the required side yard setback and 5 feet into the required rear year setback for accessory
structures, and to allow the fence to exceed the four-foot height limit by two feet. The subject
property is more commonly located at 1120 South Third Avenue.
Mayor Youngman opened the public hearing.
It was moved by Commissioner Kirchhoff, seconded by Commissioner Frost, that the public
hearing be continued to October 15. The motion carried by the following Aye and No vote: those
voting Aye being Commissioner Kirchhoff, Commissioner Frost, Commissioner Smiley and Mayor
Youngman; those voting No, none.
Public hearing - Major Site Plan - Morrison-Maierle and Lone Eagle Investments - allow construction
of a 39,958-square-foot office building on Lot 2, Block 1, Advanced Technology Park Subdivision,
Phase II {southwest corner of intersection of South 19th Avenue and West College Street) (Z-01171 }
This was the time and place set for the public hearing on the Major Site Plan requested by
Morrison-Maierle and Lone Eagle Investments under Application No. Z-011 71, to allow construction
of a 39,958-square-foot office building on Lot 2, Block 1, Advanced Technology Park Subdivision,
Phase II. The subject property is located at the southwest corner of the intersection of South 19th
Avenue and West College Street.
Included in the Commissioners' packets was a letter from Morrison-Maierle, dated October 2,
requesting that this public hearing be postponed.
In light of the applicant's request, it was moved by Commissioner Frost, seconded by
Commissioner Smiley, that this item be tabled indefinitely. 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, none.
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Proposed Ordinance No.
wage in Bozeman
- amendinq the Bozeman Municipal Code to add provisions for a livin.q
Included in the Commissioners' packets was a copy of the proposed ordinance, as submitted
by the Montana People's Action.
Mayor Youngman opened the meeting to public comment, asking that the Montana People's
Action provide the initial comments.
Ms. Kelly Pollington, 16 Lancelot Lane, stated that the Montana People's Action is a grassroots
organization started in Missoula about twenty years ago, and it currently has offices in Missoula,
Billings and Bozeman. She noted they have been working on a living wage ordinance for about five
years. Their first attempt was at the State Legislature, but that body directed them back to the local
governments and, in response to their local efforts, the City of Missoula passed an ordinance in May.
Ms. Pollington reviewed the provisions of the proposed ordinance, noting it requires that those
businesses getting tax breaks or subsidized loans or grants from the City pay a living wage since it
is not appropriate for the community to subsidize a business and then its employees. This provision
also applies to service contractors who receive more than $10,000 annually under those contracts.
She indicated that the living wage in Bozeman has been identified as $9.90 with and $11.15 without
health benefits, based on the Northwest Policy Institute study that covers a five- state area and the
costs of living in Bozeman without assistance. She recognized that health insurance cannot be
purchased for $1.25 per hour, but MPA identified what they felt would be a realistic level for passage
of the ordinance. Also, included in the ordinance is a provision that the employer provide six paid
days off and allow an additional five unpaid days off during the year. Further, the employer is to
inform all employees earning under $12.00 per hour of the possibility of taking advantage of the
federal earned income credit and refundable child tax credit.
Ms. Pollington reviewed her personal financial status, noting she works for $9.50 per hour,
or $1140 per month net. Her bills total $896, leaving her $244 after bills for all other expenses,
including food and gas.
Ms. Pollington stated that under this ordinance, a business applying for subsidized loans or
grants must submit the application at least 21 days in advance, so that Montana People's Action can
receive advance notice. She noted the organization has had difficulty in obtaining information from
Gallatin Development Corporation, including a copy of the application form, so they know what
information a business must provide in conjunction with the request. Also, any business receiving
a loan or grant is to provide an annual report which includes the salaries of employees; and sanctions
have also been included for those companies failing to meet the requirements. She indicated that
similar requirements are to be imposed on any firm receiving a tax break. She concluded by noting
the MPA feels the requirement to pay a living wage should also apply to the City, but recognizes that
negotiations with unions and bargaining groups may preclude that.
Mr. Jason Carr, 714 South 15th Avenue, stated he is a student with several years of
construction experience. He noted that there are many people in the community who are skilled, so
he has encountered competition when looking for jobs. He stated that when the private sector
receives subsidies, it should be subject to public policy, and encouraged approval of the ordinance.
Ms. Maggie Thompson, 814 South Tracy Avenue, stated she works in retail, which is one of
the lower paid industries in Bozeman. She voiced concern about a recent letter to the editor in which
the writer states some jobs are not worth being paid a living wage, and she is disturbed that anyone
would think the work she does is not worth more than poverty level pay. She noted the up side of
her job is the fact that the small business owner views employees as assets, not just labor costs, and
the result is that she is willing to invest a lot of time and energy into her job. She concluded by
stating all jobs are worth the living wage, and those who request a tax break should be subject to that
requirement.
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Ms. Lainie Dalton, 201 South 6th Avenue, stated she works two part-time jobs and lives with
her parents; and she still cannot afford to buy a car. She noted, in fact, that she is faced with moving
out of the community to make enough money to become independent.
Mr. Ted Mansikka, 4 Meghans Way, stated he was recently discharged from the Navy, after
serving 6¼years. When he moved to Bozeman, he had no debt, and he has worked one full-time and
one-part time job plus his Naval Reserve to make ends meet. In light of recent medical expenses
incurred in conjunction with their second child, his savings was completely depleted, he was doing
nothing but working and sleeping, and he never saw his family. He concluded by voicing support for
the living wage and encouraged the Commission to adopt the ordinance.
Mrs. Carol Long, Belgrade, stated that she and her husband lived in northwest Montana from
1978 to 1984, but moved because they were unable to support their five children. They were
subsequently transferred back to Montana and relocated in this area, which is more economically
viable. She voiced concern that the community is comprised of those who can afford to live here and
those who can't afford to but have either chosen to stay or can't afford to leave. She noted that the
children in the latter category don't have health care coverage, and the parents rarely see their
children since they are working two or three jobs to make ends meet.
Mrs. Long forwarded her husband's position that if people are paid a living wage, they will put
the money back into the community. She noted the strength of an area is its middle and lower-middle
classes because they work hard, buy property and spend their monies locally. She concluded by
encouraging adoption of the ordinance.
Ms. Maggie Thompson read a letter from her mother, Vicky Thompson, into the record. In her
letter, Mrs. Thompson stated that, as the owner of the Highland Montessori School, she pays a living
wage, according to the definition in the proposed ordinance, and provide a modest benefits package
that includes hospital insurance. She noted the result is a very Iow staff turnover rate, and concluded
by stating businesses can and should pay a living wage.
Ms. Tara Flastie, 669 Emily Drive, stated she was born to a single mother in poverty, with a
younger brother, and has lived through repossession of homes and cars and bankruptcy. She is
constantly forced to work at starting wage because she can only get temporary employment since
that is her only work experience. Also, she has no benefits and no paid holidays, vacation or sick
leave.
Ms. Alana Mueller, 408 South Tracy Avenue, stated she is a community organizer for the
Montana People's Action. She submitted into the record a petition in support of a living wage,
containing 17 signatures, and a letter of support from Rev. Sally Christie, 2025 Griffin Drive.
Ms. Bridgette Case, 1012 Sunrise Drive, characterized many of the arguments voiced over the
past few weeks as reminiscent of those made during enactment of the 40 hour work week and the
child labor laws. She voiced support for this ordinance, stating it is not too much to ask those
businesses receiving assistance from the City to pay a living wage.
Mr. Cort Felts, 610 Dell Place, stated that no lending institution gives a loan without strings
attached; and adoption of this ordinance results in a level playing field by adding requirements for
those who obtain breaks either through tax abatements or grants or Iow-interest loans from the City.
He noted the unemployment rate in Bozeman is very Iow at the present time due, in part, to the
dominance of Iow-paying jobs and the need for people to hold three or four jobs to make ends meet.
He stated the community does not need jobs that pay under $8.00 per hour, noting that those Iow-
paying jobs usually result in people being on public assistance. He indicated that employers will meet
the bottom line, and stressed that they are indoctrinated to look at labor as a cost and not an asset.
He concluded by noting he is a single father and full-time student at MSU, and he works two jobs
while doing so.
Mrs. Mardella Brock, 221 South 5th Avenue, stated she is self-employed as a very small
business person; and her husband works for well below the proposed living wage. She noted that,
at the national level, they are encouraging people to help the economy by buying, but cautioned that
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is not possible when one does not make a living wage. She concluded by stating that, as a taxpayer,
she does not believe it is fair for a business to receive assistance either through a grant or a tax break
and have its employees on public assistance.
Mr. Charles Caughlin, representing the Gallatin Human Rights Task Force, voiced support for
the ordinance. He noted that Montana is at the lower end of the scale in terms of per capita income
and at the top of the scale for people with multiple jobs. He also noted it is a premise of society that
people working full-time should have a wage adequate to provide food, lodging and a reasonable
standard of living. He concluded by stating support for the ordinance and stressed that benefits are
an important factor.
Mr. Rick Weaver, President of the Gallatin Development Corporation Board of Directors, noted
that, as a member of the Board for several years, he has never been approached by the MPA for a
copy of the application form. He stressed that the financial aspects of a business are to be kept
confidential, and that is a very important part of the economic development program. He turned his
attention to Montana's per capital income, which ranks 46th out of the 50 states, stressing that these
figures include owners of businesses. He cautioned that increasing the wages of some employees
will simply result in a reduction in those paid to others, since there is a finite pot of monies available.
He indicated that a recent survey done by the Downtown Bozeman Association revealed the average
wage was $8.55 per hour, or $1.35 lower than the wage proposed.
Mr. Weaver turned his attention to specific portions of the ordinance. He noted that the City
typically enjoys decreased expenditures under purchasing contracts and, under Section 2, those costs
would increase significantly. He also cautioned that adoption of the ordinance could also result in an
increased tax burden on the resident of Bozeman, with estimates ranging from $150,000 to $1.2
million per year. Under Section 3, he noted that the definitions include not only contractor, but
service contracts and subcontractors. He cautioned that, as one entity who has a contract with the
City for its advertising, his 200 to 250 independent contractors could be impacted as well as the
newspaper itself. He also voiced concern that the City's seasonal employees are exempt from the
requirements of this ordinance, as the only identified exception. He noted that, as he read the
ordinance, he became concerned about how far reaching it is, suggesting it could even extend to
Montana State University and the State of Montana. He further noted that this ordinance would
negatively impact those businesses that have received assistance from the City. He stated that, when
they are beginning, businesses often cannot afford to pay high salaries, but once they have been
established, they often exceed the wage identified in the ordinance. If they were required to pay a
higher wage, many of those employers would not exist today.
Mr. Weaver distributed charts comparing the cost of living and proposed living wage in
Bozeman to those in other communities. He noted that Missoula passed an ordinance setting the
living wage at $7.98 per hour, while their cost of living is significantly higher. He also referenced a
chart of national living wages, noting that they have been adjusted to reflect the impacts of the cost
of living. The result is that Bozeman is the second highest living wage in the nation.
Mr. Weaver then turned his attention to Section 4 of the proposed ordinance, noting that, to
date, he has been unable to obtain a copy of the survey upon which this ordinance is based. Under
Section 5, he voiced concern that an annual report of covered employees is being requested, stating
he does not believe the payrolls of private businesses should be made public, particularly since it
would be a violation of privacy for those employees. He also expressed concern that a competitor
could obtain that information and use it to draw employees away from a company that has been
subjected to review. He questioned whether City staff would have adequate time to conduct the type
of reviews anticipated if this ordinance is adopted, or to act on grievances and disputes. He
concluded by asking that the Commission not adopt this ordinance.
Mr. Tom Wells, 623 South 3rd Avenue, stated he is an attorney representing start-up
companies in front of the Gallatin Development Corporation. He noted that he works two full-time
jobs and does not make a living wage. He indicated that he could support a modified living wage,
but not the ordinance submitted. He briefly highlighted the living wage adopted in Missoula, noting
it was tied to the lowest wage in the City and does not apply to the City or those contracting with
the City, but to those entities in receipt of economic assistance. He recognized the goal of trying to
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get better wages in Bozeman, but he feels this ordinance is punitive. He stated the proposed living
wage is based on the rent for a two-bedroom unit, while most of Bozeman's working poor live in one-
bedroom units or share living quarters. He suggested that, on a $6.74 per hour salary, one could live
in a one-bedroom unit and spend only 30 percent of his or her income on that housing. He noted that
$8.20 per hour is now a poverty level salary; however, he suggested that $8.31 could be a more
realistic living wage.
Mr. Wells stated it is also critical that the living wage ordinance include a start date and an
assurance that it will not be retroactive or pertain to existing loans. He also suggested that it have
a sunset provision, such as five years; and it could be extended if a review at that time showed it was
accomplishing the desired result. He proposed that a threshold of $25,000 be established for
contracts with the City, with an index attached so that figure increases annually, noting that would
probably eliminate most tax exempt entities. He also suggested that a minimum three-month duration
be added, to ensure that those companies which do one day's work for the City aren't negatively
impacted. He encouraged the Commission to include an exemption for businesses less than two years
old or with gross revenues of less than $500,000 or with less than seven employees, so that new
businesses have a chance to get started. He suggested that after that period of time, salaries could
be adjusted up over a period of two years. He concluded by encouraging the Commission to not
adopt the ordinance as proposed, but to consider the revisions he has proposed.
Mr. Will Callahan, 1205 Brentwood Avenue, gave a lengthy power point presentation on the
Community Development Block Grant economic development revolving loan fund program, noting that
without assistance from Mr. Wells and the Gallatin Development Corporation and a revolving loan fund
(RLF) loan, his business would not exist today. He noted that the RLF is designed to get companies
through the period when they lose monies, and stressed that his goals are the same as those of the
Montana People's Action.
Mr. Callahan identified the revenue source for the revolving loan fund, noting that federal
monies are appropriated by Congress and granted to the State Department of Commerce. The
Department funds successful applications by distributing the monies to the local governments who,
in turn, loan those funds at a Iow interest rate to the successful applicant. As those monies are
repaid, the result is the revolving loan fund; and the monies can be loaned out by the local
government to successful applicants, once again at a Iow interest rate.
Mr. Callahan noted it is critical that businesses continue to grow, and it is important that some
of those businesses be growth businesses that draw monies from outside the area. He stated that
in his business, 90 percent of his revenues come from outside the community, but the vast majority
of his work is done in Bozeman and 60 percent of his expenditures are in personnel. He noted that
the wages he pays are at least those proposed as living wage. He started the company in 1994, with
himself and a part-time employee was added in 1995. He reviewed the indebtedness levels he
incurred over the first few years as well as the monies he received in those years, stressing the
importance of recognizing the sacrifices one makes in the initial years of a business and the inability
of a developing company to afford wage controls.
Mr. Callahan stated that revolving loan fund recipients create wage growth naturally as they
grow. He noted that when Montana Furniture received its loan, it had 22 employees earning an
average of $5.50; it now has 102 employees earning an average of $12.25. When he received his
own loan, he had 4 employees at $8.00 and he now has 8 employees at $10.00. Also, his major
local vendor has added employees to build the components for his skidsters. He concluded by
encouraging the Commission to carefully consider the negative impacts that a living wage ordinance
would have on start up companies.
Mr. Kent Woods, Gallatin Development Corporation, noted that most people have a difficult
time getting started in their careers, indicating that his first job was washing cars for minimum wage.
He stated that, in his position, he does the initial screening for revolving loan fund applications, and
he has the application forms available in his office; but he has received no request for copies from the
Montana People's Action. He reviewed the four companies that currently have loans through this
program as well as the extensive requirements attached to those loans. He concluded by stressing
that this program is an important component of economic development in the community.
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Break - 9:05 to 9:13 p.m.
Mayor Youngman
Commission policy.
declared a break from 9:05 p.m. to 9:13
accordance with
Proposed Ordinance No. (continued) - amending the Bozeman Municipal Code to add provisions
for a living wage in Bozeman
Mr. David Smith, Executive Director of the Bozeman Area Chamber of Commerce, stated he
represents the 829 members of the Chamber. He noted that, according to figures from the
Department of Labor, in 1999, Gallatin County was the eighth highest county, with a per capita
income of $24,000, compared to $21,997 for Montana. He also noted that the Chamber surveyed
its members about three years ago, and businesses owners indicated that if the minimum wage were
increased, they would reduce hours or raise the costs of their merchandise or product. He further
cautioned that, prior to September 11, there were predictions that the economic pendulum had
reached bottom; however, the events of that day have resulted in predictions that the decline will last
for the next six months. He noted that if lower salaries are increased to what has been identified as
a living wage, the result will either be a compression in wages or increased costs as the entire scale
is raised. He stated that his son is currently working and going to college, and he does not believe
his son deserves $9.25 an hour; rather, he needs to learn skills first.
Mr. Smith stated $150,000 to $1.2 million has been estimated for the City to meet the living
wage requirements, as proposed. He cautioned that meeting this requirement will result in less
services or more taxes; and "no one is asking for more government or more paperwork". He also
asked the Commission to consider the impacts this ordinance would have on non-profit organizations
and small businesses.
Mr. Smith acknowledged that the City of Missoula adopted a living wage ordinance. He noted,
however, it was not the one requested by the Montana People's Action; rather, it was an alternate
ordinance. He encouraged the Commission to look at the competitive edge, questioning who would
do business with the City with the additional regulations and less incentives. He characterized the
community's businessmen as bright people who are passionate about their businesses and who are
willing to work long hours and weekends. He concluded by noting that several national surveys have
revealed wages are not an employee's top concern, and stressed that training would be a more fair
and equitable answer.
Mr. Greg Metzger, 334 Sky Crest Drive, stated he purchased Montana Furniture several years
ago. He noted that the prior owner obtained an RLF loan in 1994, and that loan allowed the business
to continue and grow after it had burned down. He stressed that he has taken significant risks to
maintain the business and allow it to grow, noting that he could lose his home and car if his company
were to begin losing money. He stated that, if a person is trained, the starting wage can be $12.50
per hour; however, an untrained employee starts at $8.25 or $8.50. He concluded by encouraging
the Commission to let the market set the rates rather than implementing a guaranteed beginning
wage.
Mr. Mike Burgard, 3017 Secor, noted that he operates Color World Printers. He stated this
is not a start-up company; his father started it 34 years ago. He noted they have taken advantage
of the tax abatement program for the new equipment in which they have invested, noting that
program allows for an increased tax base while giving the company an opportunity to phase in the
additional taxes. He stated their business requires highly skilled labor; however, there are very few
skilled laborers available in the Bozeman market. As a result, they hire people into unskilled positions
and train them for other positions if they show interest and promise, and once they are trained, they
make well above the proposed living wage. He cautioned that, if he no longer has the freedom to hire
unskilled labor, he will hire from outside the community, which will create additional housing problems
in Bozeman and destroy the opportunity for a local resident to acquire skills to be productive in
society.
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Mr. Burgard noted that his family has recognized the importance of employees in a business.
As an example, his father sold the business in 1980 and in 1985, when the owners were unable to
make payroll, his father paid the payroll and negotiated a buy back of the business. He also indicated
that the payroll has increased from $600,000 to $1.8 million annually. Aisc, a vast majority of their
business is from outside the valley and the state, and taking advantage of the tax abatement program
has helped in this growth.
Ms. Karen Thornburg, Acting Director of the Humane Society, noted that the Humane Society
is located on City property and contracts with the City for services. She noted that the $30,000 paid
by the City annually represents about 12 percent of their entire budget. Their employees are entry
level workers with no experience, making $7 to $8 per hour plus health and vacation benefits. The
average length of employment is one year to eighteen months, and many of the vet technician
positions are filled by MSU students in the pre-veterinary program. The Humane Society also has
several kennel technician positions and a couple management positions. Ms. Thornburg stressed that
requiring them to pay a living wage because of their relationship with the City is not a viable option;
and the result would be the loss of this business, which takes in over 2500 animals a year. She
concluded by asking that non-profit organizations be excluded from the ordinance.
Mr. Roger Koopman, owner of Career Concepts, distributed copies of articles on the issues of
the livable wage and minimum wage, noting they identify the unintended social and economic
consequences of a well-meaning proposal. He noted that beginning a successful business includes
sacrifice, but a business owner would not have it any other way. He stated that government can do
a lot of things, but raising wages is not one of them because it cannot create added wealth, and the
result is simply redistributing existing wages "from Pocket A to Pocket B". He also noted that
government cannot determine what, for anyone else, is a living wage, and stated that one's values
change at different stages in life. He stated that, contrary to what proponents would have one
believe, people are not victims; rather, it is a reflection of their stage in life. As a private employer
for 22 years, he has been a careful observer of wage levels and demands; and they have been driven
upward at a rate significantly above the rate of inflation. He stated that the only way to produce
higher taxes is through a vibrant and growing economy, and suggested that if the City is serious
about advocating higher wages, it should do so through reduced cost of government, lower taxes and
creation of an economic growth atmosphere.
Mr. Jon Gerster, 719 North Wallace Avenue, stated he has had "some of the crummiest jobs
in the universe", and he found them to be a great motivator. He noted that the events of September
11 have had significant impacts on many businesses, with some losing as much as 50 to 90 percent
of their business. He stated that, since a large portion of the economy is tourist based, implementing
a living wage ordinance at this time would be bad, particularly in light of the economic uncertainties.
Mr. Rick Vaught, 712 North Montana Avenue, stated that he has worked more than one job
in Bozeman more often than not; at the present time, he is working one full-time and two part-time
jobs plus freelancing on the side. He characterized the issue as simple-"freedom or another link in
the chain of government slavery". He noted this is a time of unparalleled wealth and prosperity, and
only government interference and regulation can stop it. He stated that a living wage seeks to reward
the non-producers at the expense of others, and asked if anyone has seen it written in the skies or
on tablets of stone "thou shalt only work forty hours a week". He stated the most important
economic step is to motivate others, and concluded by stating he wants the freedom to succeed or
fail on his own and wants his children to have the same legacy.
Mr. Paul Bussi, Big Sky, stated he is a full-time ski instructor and businessman; and his
background includes social work in New York City. He voiced support for a living wage; however,
he cautioned that if a business is required to pay that amount, it should be able to expect that amount
of service from the employee. He then questioned if business records would become public simply
because they were submitted to the City for review.
Mr. Aaron Hall, 405 Peter Koch Tower, stated that several years ago, the issue of a living
wage arose in Duluth. He stated the ordinance was adopted in July 1997; in July 2000, the
newspaper did an in-depth analysis and found it was overwhelmingly positive.
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2-
Mr. Brian Gertiser, 1010 East Olive Street, stated he owns a small business with six people,
one of whom makes less than the proposed living wage. He noted that his employees are highly
skilled, and he anticipates the highest paid employee will make $20 per hour within the next year.
He stressed that his employees must produce and earn a certain dollar value to earn more monies,
noting that is the basic economic principle that makes capitalism work. He concluded by cautioning
that if an employee does not earn his way "he's not worth a dime".
Mr. Mike Hope, 221 Pioneer Drive, stated that, after climbing the corporate ladder, he sold his
house, came to Bozeman five years ago and purchased a restaurant. He noted that in the first three
years, he lost over $100,000; and today, he employs 40 to 45 people. He estimated that his
bartenders and waiters make $20 to $30 per hour while his cooks earn $10 to $14 per hour. He then
noted that on Wednesday, he stayed and worked because one of his minimum wage employees did
not show up for his shift. He stressed that, particularly in the hospitality industry, the employees
make the business work, and noted that the good employees have great opportunities. He cautioned,
however, that if he were required to pay the proposed living wage to all of his employees, his
business could not succeed because of the high costs involved. He concluded by encouraging those
not making a living wage to put their heads down and work to get out of their current situations.
Mr. Darrel Behrent, 208 Lindley Place, noted that he currently leads a fairly comfortable life
as a construction engineer; however, he started out in the selective service and then worked full-time
while going to college to support his young family. He noted that in the construction industry, federal
regulations have hurt their ability to hire carpenters, since those just starting out are paid the same
as those with twenty years' experience. He concluded by cautioning that adoption of this ordinance
would result in significantly higher costs to the City, particularly if an emergency situation could result
in putting a contractor with the City over the $10,000 threshold and trigger the requirement to pay
a living wage.
Mr. Gary Perry, Manhattan, noted the odds are better for starting a successful business than
for winning the lottery. He characterized the representatives of MPA present at this meeting as being
today "what we were thirty years ago", noting that many of their stories are the same as those of
today's successful businessmen. He stressed that nobody comes to earth with a guarantee; rather,
one must work for and earn what one has. He encouraged everyone to find strength from within and
to build on their skills and talents, rather than trying to put restrictions on businesses.
Mr. Perry noted that he started his business in a garage and built his business with no
government loans. He then questioned if those who are willing to put requirements on businesses
are also willing to pay back their loans if they falter. He noted that employees may quit, however,
an employer cannot simply quit an employee; and concluded by urging the Commission to not adopt
this ordinance.
Mr. Cort Felts noted that any increases in the minimum wage bring out the doomsayers;
however, if increases had kept up with inflation, today's minimum wage would be $8.00. He noted,
however, that since 1968, productivity has increased by 50 percent, and the minimum wage is $5.15.
He stated that there are no negative impacts from the 67 existing living wage ordinances around the
country. He also stressed that those in attendance at this meeting will not be impacted by adoption
of the ordinance; rather, they are trying to create a healthy economy that works for everyone. He
concluded by welcoming everyone to read the proposed ordinance and to enter into a dialogue rather
than viewing this is an adversarial issue.
Ms. Laura Dalton, 201 South 6th Avenue, noted that people have been talking at cross
purposes during this meeting, and stressed that the many people who have worked on this proposed
ordinance are not anti-business. She noted, in fact, that if the ordinance works properly, it protects
small businesses by creating a level playing field. She characterized the living wage ordinance as not
being about emotions and young people growing up; rather, it is about tax monies for which the
community must be responsible. She noted that Mr. Callahan's presentation was beneficial and
revealed the criteria that must be met to obtain monies from the revolving loan fund.
Ms. Dalton noted that the ordinance as proposed allows the Commission to grant waivers to
any business that applies for one. She stated, however, that if a business is applying for assistance,
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-13-
the living wage requirement is triggered; and those additional costs should simply be incorporated into
the business plan and the amount of the loan. She noted that minimum wage jobs are actually a loss
to the community, and those proposing the ordinance want to see the loan monies invested well. She
suggested the reporting requirements are not onerous, noting that if a business does not want to meet
the requirements for the City program, it can seek other financial assistance. She concluded by noting
that the ordinance needs to be the best it can be for the community and recognized it may need to
be fine-tuned once it is adopted.
Mr. Greg Metzger stated that he has read the proposed ordinance and cannot support it
because it violates his freedom to run his business as he wants. He noted, rather, he supports the
free enterprise system.
Mayor Youngman requested that this ordinance be placed on a future agenda for additional
discussion.
Adiournment - 10:52 p.m.
There being no further business to come before the Commission at this time, it was moved
by Commissioner Frost, seconded by Commissioner Smiley, that the meeting be adjourned. 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, none.
ATTEST:
ROBIN L. SULLIVAN
Clerk of the Commission
MARCIA B. YOUFIGIV'IAN, Mayor
10-08-2001