HomeMy WebLinkAbout03-04-19 City Commission Packet Materials - A3. Park and Trail District Implementation Plan1
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Mitch Overton, Parks and Recreation Director
Jon Henderson, Strategic Services Director
Kristin Donald, Finance Director
Jamie Norby, Interim Human Resources Director
Greg Sullivan, City Attorney
Chuck Winn, Assistant City Manager
Anna Rosenberry, Assistant City Manager
Andrea Surratt, City Manager
SUBJECT: Creation & Implementation Plan for Citywide Park and Trail Special
District.
MEETING DATE: March 4, 2019
AGENDA ITEM TYPE: Action
RECOMMENDED MOTION: I move to direct the City Manager to take the necessary steps to
implement a citywide Park and Trail Special District over a (choose one: 3 year, 4 year, 5 year)
period and to create the District utilizing a (choose one: Spring 2019 Protest or Referendum at
November 2019 General Election).
BACKGROUND: A citywide Park and Trail Special District or equivalent has been anticipated,
planned and recommended since roughly 1996. At that point the city was experiencing rapid
growth in the development of new subdivisions and the required dedication of public parkland to
meet the recreational needs of the increase in developments and population. However, the city
was unable to keep up with the funding, management and maintenance requirements of the rapid
increase in public parkland. By 2004 it became standard practice for the city to require property
owners associations to maintain their city dedicated parkland until which time a citywide parks
maintenance district was created to do the same. This was and is indicated on the subdivision
final plat.
The 2007 Parks, Recreation, Open Space and Trails (PROST) Plan 10.2 Top Ten Non-Facility
Recommendations calls to “Evaluate and implement a citywide Parks Maintenance District or
some equivalent alternative.” The item ranked as priority number 4 based on survey results,
public input and level of service analysis. Subsequently, in 2011 and 2013 two different
Montana State University (MSU) students conducted research papers on the potential creation of
a parks maintenance district in Bozeman.
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In 2015, the City implemented a work order and asset management solution (Cityworks) to
record all costs associated with Park Division operations and maintenance. This information was
used to compile current and future cost estimates, based on an extensive asset inventory. Three
years of operations data including labor, equipment and material costs for all crews were
averaged to determine a baseline for current operations (11/8/15 – 12/3/18). Approximately
23,108 Cityworks work orders were completed for 223 different work activities across 39 asset
classes (1,234 individual assets).
In 2016, the City of Bozeman received a grant to contract with the Trust for Public Land (TPL)
to perform a Conservation Finance Feasibility Study that showed examples of how the city could
create a Park and Trail Special District similar to the city’s Tree Assessment or Street
Maintenance Assessment. The following year the city contracted with Peaks to Plains Design
and PROS Consulting to conduct a Park and Trail District Feasibility Study. This team
presented to the City Commission in February and July of 2018. At the February 26, 2018
meeting, the City Commission voted to pursue creation of a citywide Park and Trail Special
District and at the July 23, 2018 meeting, voted on the desired level of service in which to plan
such a special district.
The Recreation and Parks Advisory Board voted unanimously (9-0) at their February 14, 2019
meeting to “recommend that the City Commission take the necessary steps to enact a Park and
Trail Special District generally utilizing the Strategic Implementation Schedule identified within
the Park and Trail District Implementation Plan”.
Tonight we request direction on the implementation, or “start-up” period (3, 4 or 5 year) for the
District and the manner in which the Commission desires to create the District (see discussion
under Next Steps, below).
A citywide park and trail district is attempting to solve three major issues:
1. Deferred Maintenance: The cost of deferred maintenance in our parks and trails is
currently ~$6.8 million. This includes assets that need repaired or replaced because they
are beyond their useful life. All three start-up options fund deferred maintenance. The
options differ in how long of a period is needed to “catch up” on this backlog. They
range between a 10 and 15 year catch-up period. Once the catch-up period is completed,
the Capital & Deferred Maintenance Budget can be reduced immediately.
2. Operations and Maintenance: Our current level of service for park and trail
maintenance is reactionary in nature. In July, the Commission chose a level of service
that creates a more proactive operation. This will result in less deferred maintenance
over time and a better user experience across all city-owned parks and trails. The District
will provide a funding source for current city parks and trails, new park projects coming
on-line soon (Story Mill Park, Sports Park, Path to the M, etc.) and 235 acres of
neighborhood parks and trails throughout the city that property owners associations are
currently maintaining.
3. Equity:
a. The District includes City maintenance responsibility for all City dedicated parks
and trails. This creates a minimum standard to which all public parks and trails
can be maintained, ensuring that all Bozemanites have access to quality parks and
trails.
b. A citywide district eliminates the need for homeowner associations (HOAs) to
maintain city parks and trails in their subdivision through HOA fees. These city
property owners who currently pay both general taxes and HOA fees for park and
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trail maintenance will no longer be paying a higher share of the system costs. All
city property owners will pay an annual assessment for park and trail
maintenance.
STRATEGIC PLAN: This project aligns with Vision Statement 4, A Well Planned City which
states, “We consistently improve our community’s quality of life as it grows and changes,
honoring our sense of place and the ‘Bozeman feel’ as we plan for a livable, affordable, more
connected city”. Strategy 4.3 Strategic Infrastructure Choices – Prioritizing long-term investment
and maintenance for existing and new infrastructure, lists Action Item: “a) Develop a
Comprehensive Parks Maintenance and Facilities Funding Program.”
IMPLEMENTATION PLAN & OPTIONS: All work activities were tracked across all assets
for a three year period (including labor, materials and equipment). Summary information was
then analyzed to derive current maintenance frequencies for each asset class. Future
maintenance frequencies were developed according to the approved level of service
recommendation and costs were extrapolated to determine future funding needs (including HOA
& TOP). Considerable effort was made to adjust work activities against desired service levels.
Staffing plan information was used to determine future personnel needs associated with TOPS,
while HOA projections were made using a relative percentage increase of current versus future
level of service (15.9%). A condition assessment was performed for all high-value/high-risk
assets to determine remaining useful life using objective rating criteria, including
vehicles/equipment, irrigation and facilities. Assets in “poor” condition were classified as
deferred maintenance. Additional items listed in the current FY19-23 CIP were also included in
the final analysis.
District Implementation Options (3, 4, or 5 Year Start-up Options): Implementation of the
District will require us to address three distinct operational challenges:
1. Significantly increasing the number of parks (acreage of parkland) that our staff needs to
maintain, and
2. Significantly increasing the level of basic services provided in our parks, year round, and
3. Significantly increasing the amount of repair/replacement projects that we undertake each
year.
In the areas of human resource and operational management, we know that we will need a
number of years to add staff, equipment and other capital necessary to accomplish these changes.
This program would be extremely difficult to accomplish in one or two years. We are suggesting
either a 3, 4, or 5 year start-up plan that can then sustain into future years. The amount of
capital needed will reduce dramatically once the deferred maintenance has been completed,
which varies by each proposed plan and its capital cost scaled increase
The assessments options below share the following elements:
• Year one of implementation will include all City parks and trails becoming part of the Park
and Trail Special District management, maintenance and operations responsibility at current
level of service. This includes the large TOP (Trails, Open Space and Parks) Bond fund
projects coming online with Story Mill Community Park, the Bozeman Sports Park, and Path
to the “M” and Drinking Horse all being completed in 2019.
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• The assessment for the estimated cost for all three options for implementation reflect the
FY21 CIP amount with no deferred maintenance, in year one.
• By the time we get to year five, expenditures are the same for all three plans, with costs
adjusted for inflation (inflation factor is 3%).
• For the purpose of calculating revenues, all options include an annual estimated growth of
assessable square feet of 2%.
The options differ in the following ways:
• The plans vary by the number of years to reach silver level of service
• The deferred maintenance annual need
We are suggesting continuing to use a per-square-foot assessment method that mirrors what
we use for street and tree maintenance purposes. Assessment is applied to the square footage
of the lot. We estimate the first year assessment to be $0.018 per square foot. The chart
below shows the estimated annual assessments for our average-sized residential lot, under the
3-Year, 4-Year, and 5-Year Implementation Options.
3-Year Implementation
Reaching silver level of service by year three has additional costs with the greater use of
contractors. There is also a faster ramp up to the deferred maintenance faster with a higher
amount of deferred maintenance reaching the full annual amount by year 3. The assessment
would have a faster ramp up to cover the costs of faster implementation and could be tapered
back after greater transition to in house services and the reduction of contractors. (See 3-year
Assessment Implementation Projection attachment for the complete projection and costs)
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Year 1- FY21 Year 2- FY22 Year 3- FY23 Year 4- FY24 Year 5- FY25
Proposed Rate Increase (year 1 rate per sqft) 0.01800 30% 18% -4% -2%
Estimated Growth in Assessable SqFt 0% 2% 2% 2% 2%
Small Lot, 5,000 sq ft. 90.00 117.00 138.06 132.54 129.89
Average Lot, 7,500 sq ft. 135.00 175.50 207.09 198.81 194.83
Median Lot, 7,823 sq ft 140.81 183.06 216.01 207.37 203.22
Large Lot, 10,000 sq ft. 180.00 234.00 276.12 265.08 259.77
Extra Large, 15,000 sq ft 270.00 351.00 414.18 397.61 389.66
Parks & Trails Maintenance District 3 year Implementation - 5 year Projection
4 Year Implementation
Implementation of the silver level of service across the District over the four years has less
contracting costs. The deferred maintenance costs are also increased over the four years, which
would delay the ten-year goal slightly. The assessment is gradual and into an inflationary amount
for year five. (See 4-year Assessment Implementation Projection attachment for the complete
projection and costs)
Year 1- FY21 Year 2- FY22 Year 3- FY23 Year 4- FY24 Year 5- FY25
Proposed Rate Increase (year 1 rate per sqft) 0.01800 18% 12% 8% 1%
Estimated Growth in Assessable SqFt 0% 2% 2% 2% 2%
Small Lot, 5,000 sq ft. 90.00 106.20 118.94 128.46 129.74
Average Lot, 7,500 sq ft. 135.00 159.30 178.42 192.69 194.62
Median Lot, 7,823 sq ft 140.81 166.16 186.10 200.99 203.00
Large Lot, 10,000 sq ft. 180.00 212.40 237.89 256.92 259.49
Extra Large, 15,000 sq ft 270.00 318.60 356.83 385.38 389.23
Parks & Trails Maintenance District 4 year Implementation - 5 year Projection
5-Year Implementation
Silver level of service is achieved by year five and the amount of deferred maintenance is
achieved. The deferred maintenance ramp up delays the ten-year plan slightly. The assessment is
more gradual than any other plan and is an inflationary increase by the fifth year. (See 5-year
Assessment Implementation Projection attachment for the complete projection and costs)
Year 1- FY21 Year 2- FY22 Year 3- FY23 Year 4- FY24 Year 5- FY25
Proposed Rate Increase (year 1 rate per sqft) 0.01800 15% 10% 5% 3%
Estimated Growth in Assessable SqFt 0% 2% 2% 2% 2%
Small Lot, 5,000 sq ft. 90.00 103.50 113.85 119.54 123.13
Average Lot, 7,500 sq ft. 135.00 155.25 170.78 179.31 184.69
Median Lot, 7,823 sq ft 140.81 161.94 178.13 187.04 192.65
Large Lot, 10,000 sq ft. 180.00 207.00 227.70 239.09 246.26
Extra Large, 15,000 sq ft 270.00 310.50 341.55 358.63 369.39
Parks & Trails Maintenance District 5 year Implementation - 5 year Projection
FISCAL EFFECTS:
Once the District is created, a Parks & Trails District Fund and Budget will be established as part
of the FY21 Budget. (No change in budgeting is needed for the upcoming budget year - FY20).
Assessments will be adopted each fall based on the approved budget adoption in June.
General Fund Impacts
The City’s General Fund will be effected by the creation of the District. Currently, the General
Fund pays the majority of park and trail maintenance costs. In FY19, the Parks Department’s
budget totaled $2.2 million (personnel, operations, and capital). $2.2 million equates to 15% of
the total city all-purpose property tax levy (about 21 mills.) When the District starts covering
these costs with its annual assessment, what does the City plan to do with property taxes? Will
taxes be reduced? By how much? The amount of “property tax reduction” that the City will
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commit will be a component of our public education message as we seek to create the District.
The current property tax cost for City park and trail maintenance per median home based on
FY19 budget is $78.54 for Personnel, Operating and Capital costs
Personnel & Operations Costs: The Parks Division budget for FY19 for personnel and
operations excluding capital is $1.9 million. This funding is equivalent to 18.61 mills or $70.02
for the median home.
Capital Costs in the General Fund: The adopted General Fund FY20 – FY24 Capital
Improvement Plan (CIP) anticipates the creation of a Park and Trail Special District in FY21,
and therefore removes all Parks Department capital items from the General Fund CIP beginning
in FY21 (Plan B in the CIP packet presented December 10, 2018). The plan adopted maintains
the General Fund’s total dollars for capital without any reduction in revenues for the absence of
the Parks capital items. The capital portion is equivalent to 3.12 mills and for the median home
in FY19 is $8.52. If this portion of property taxes were to be reduced, the General Capital plan
would have to reduce by $2.4 million dollars over the 5-year plan (this reduction was shown as
Plan C in the packet presented December 10, 2018).
The Commission will need to provide guidance as to any reduction in tax funding for the
operational and capital costs that would be in the new Parks & Trails District Fund.
NEXT STEPS: Once the City Commission choses the financial implementation strategy for the
Park and Trail Special District several options exist for the creation of the District which will
require decisions from the Commission. The City may create a special district under Title 7,
Chpt. 11, Part 10, MCA using one of three methods. The City Commission may either create a
special district by resolution subject to protest, order a referendum on the creation of the District,
or use a process that would require both a resolution with protest and a referendum.
The creation of a special district by Commission resolution includes several steps. First, the
Commission must adopt a resolution of intent to create the special district. 7-11-1007, MCA. The
resolution, among other things, must describe the general character of the improvements and the
estimate cost and method of financing and assessing for the costs of the proposed program or
improvements. Upon adoption of the resolution of intent, the Commission must publish notice of
passage of the resolution and mail a copy of the notice to each owner of properties to be
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assessed. For a Parks and Trail Special District, this would mean mailing to owners of each
property within the City.
The mailing commences a protest period. Owners of property that will be assessed have the right
to protest the creation of the District. The protest period is sixty (60) days from the date of
publication/mailing of the notice. The City is required to send each property owner a
protest/support form. At the end of the protest period, the Commission must conduct a hearing to
consider all protests. Two thresholds are important in determining the Commission authority at
the end of the protest period. First, if owners representing properties to be assessed for more than
10% but less than 50% of the cost of the improvements the Commission cannot create the district
absent ordering a referendum. If protest is made by the owners of property to be assessed for
50% or more of the costs of the improvements the Commission may not take any further action
for at least 12 months.
If the Commission determines to forego the resolution process, the Commission may order a
referendum. If the Commission determines to order a referendum for the City general election to
occur this coming November, the Commission must adopt a resolution ordering the referendum
by the end of this July.
If the Commission determines to create the District by resolution (to determine whether the
above protest threshold has been met) in time to order also conduct a referendum should protest
fall within the 10% to 50% range, the Commission must complete the hearing on protests by the
end of this coming June. Doing so would ensure adequate time to prepare a resolution ordering
the referendum by the end of July to meet the timeframe required to place the referendum on the
November ballot. As such, the timeframe for creation of the District by resolution (in time to
adopt a resolution ordering a referendum) would require a minimum of 90 days from
commencement of the resolution of intent. If the Commission determines to create the District by
resolution in time to have a referendum on the November ballot, if necessary, we suggest the
resolution of intent be presented to the Commission no later than the middle of April.
If the Commission determines to go directly to a resolution ordering a referendum for this
coming November’s general election and also desires to develop an educational effort the City
will need to establish an incidental political committee through the Montana Commissioner of
Political Practices and report expenditures on the educational effort.
UNRESOLVED ISSUES: How to best re-allocate the existing General Fund Dollars currently
used to fund the Parks Division.
ALTERNATIVES: As suggested by the City Commission.
Attachments:
Pros Consulting and Peaks to Plains Design Implementation Report
3 year Assessment Implementation Projection
4 year Assessment Implementation Projection
5 year Assessment Implementation Projection
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PARK AND TRAIL DISTRICT IMPLEMENTATION
PLAN
February 2019
Parks and Trail District Implementation Plan
January 2019
The City of Bozeman Parks and Recreation
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Table of Contents
– INTRODUCTION.............................................................................................. 1
1.1 PARK SYSTEM GROWTH ................................................................................................... 1
1.2 THE HONEYMOON PERIOD ............................................................................................. 1
1.3 AGING INFRASTRUCTURE ................................................................................................ 1
1.4 THE CITY’S RESPONSIBILITIES ............................................................................................ 2
1.5 THE SOLUTION ................................................................................................................... 2
1.6 THE IMPLEMENTATION PLAN PROCESS .......................................................................... 4
– STRATEGIC ISSUES ......................................................................................... 5
2.1 KEY CONSIDERATIONS OF IMPLEMENTATION ............................................................... 5
- STRATEGIC IMPLEMENTATION .................................................................... 8
3.1 LEAD UP STRATEGIC ACTIONS ........................................................................................ 8
3.2 GO LIVE STRATEGIC ACTIONS ...................................................................................... 10
– CONCLUSION ............................................................................................ 11
APPENDIX A – LIFECYCLE REPLACEMENT ANALYSIS ............................................................ 12
APPENDIX B - MONTANA CODE ANNOTATED ..................................................................... 13
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– INTRODUCTION
After nearly 20 years of studies and discussion, the City of Bozeman has reached a nexus regarding the
development of a Park and Trail District. The creation of a district will secure a sustainable funding
source for the management and maintenance of its park system. Upon the successful completion of the
Park and Trail District Feasibility Study in July 2018 conducted by Peaks to Plains and PROS Consulting,
the City of Bozeman has retained these firms to develop an implementation plan for the potential
creation of a Park and Trail District. The purpose of this study is to identify the strategic approach that
the City should embrace to successfully launch a district.
1.1 PARK SYSTEM GROWTH
Bozeman has had tremendous household growth in the
past twenty years that added significant acreage to the
city’s park system. Fortunately, Bozeman not only
received land, but sub-dividers also installed park
improvements, known as assets, at the time of
dedication. While the city has been involved in the
review of developer-built park plans, the city mainly
relies on private entities - home owner associations
(HOA) for maintenance of park facilities in newer
subdivisions. The graphic to the right highlights the
growth of parkland acreage. In summary, the system has
doubled its park acreage in the last 15 years.
1.2 THE HONEYMOON PERIOD
When developers are building out their subdivisions, many are actively involved in the operations of the
neighborhood. Property owner associations are formed and often the developer retains a majority
position until most of his or her interests in the neighborhood are built or sold. Park maintenance by
private entities is a model that has served the city well as developers have a vested interest in keeping
the neighborhood well-maintained in order to hold a market position. Newly installed park assets are
covered under manufacturer warranties and any typical repairs can be done quickly by a developer’s on-
call contractor or other personnel. The city is usually not involved in the daily operations or maintenance
as the private entity has performed these duties in an acceptable manner.
1.3 AGING INFRASTRUCTURE
As developers complete the sales in their subdivision, they shift management and maintenance to
property owners. Some owner associations hire professional management companies to perform
management tasks, others try to perform management and maintenance services themselves. Many
have little or no training in land or facility management. Ultimately, they are managing city-owned
assets without any enforceable maintenance standards in place, except for playgrounds, which Parks
Department staff regularly provides inspections.
The issues compound as some owner associations perform maintenance at less than a best practice level,
while others may provide additional services beyond the typical maintenance regime. For the city, this
becomes an equity issue for residents. Some parks have become destination parks that the adjacent
property owners pay a premium in dues for maintenance, while other neighborhoods are less well-
managed, resulting in lower dues.
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The cost of replacing assets has significantly increased in the past twenty years. When purchased and
installed by a developer, the costs are distributed to all the lots, and property owners effectively pay
for the asset, which is hidden in the sale price and amortized over several years. Life cycle replacement
costs for major assets are generally prohibitive to private associations who may not have the appetite to
incur substantial dues increase to cover those costs.
1.4 THE CITY’S RESPONSIBILITIES
The city is ultimately responsible for the land and assets in city-owned parks and open spaces. The core
lines of service (functions) performed by the Parks Division are numerous and are as follows:
Unfortunately, the city’s Current Practice Level of Service is one that creates a backlog of deferred
maintenance. The city’s current deferred maintenance backlog in parks is approximately $6,800,000.
Without an increase in the level of service to park infrastructure, that number will increase annually.
This results in a shorter lifespan for assets, higher maintenance costs and a continually degrading level
of service to the public.
1.5 THE SOLUTION
The City anticipates the creation of a Parks and Trail Special District in FY 20 and the collection of
funding in FY 21.
The Montana Code Annotated, Title 7, Chapter 11, Part 10 is specific to the steps and requirements
regarding the creation of a special district. Several options exist and will require direction and decisions
from the Commission. This includes but is not limited to, a resolution of intent to create the district, the
assessment method (i.e., property square footage or assessed value) and will the levy be presented to
the voters as a ballot measure or a protest, are a few important examples.
Park Maintenance
Lines of Service
Athletic Field - Maintenance (Diamond and Multi-Purpose Fields)
Bridge Maintenance
Citizen Inquiries
Department Special Event Support
Dog Park Maintenance
Equipment Maintenance
Facility Grounds Maintenance
Furniture, Fixtures, Systems (lighting, etc.) Maintenance and Repair
Ice Rink Maintenance
Integrated Pest Management
Irrigation Systems
Landscape Beautification (minimal)
Maintenance Yard Management
Natural Resource/Open Space
Park Building Maintenance
Park Permit/Special Event Facilitation
Restroom Custodial Services
Sport Courts (Basketball, Tennis, Sand Volleyball, Pickleball Courts)
Snow and Ice Removal
Trail Maintenance
Trash Removal
Turf Management
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In July 2018, the City Commission accepted the 2018 Park and Trail District Feasibility Study Part II and
directed the City Manager to proceed with the Park & Trail District Staffing and Implementation Plan at
a Silver Level of Service and return, within the current fiscal year, with a proposed plan and
recommendations and a Resolution of Intent to create a special district for park and trail maintenance.
The Silver Level of Service reflects an increase in operations and maintenance practice and performance
consistently across all city owned parklands and trails. This scenario encompasses a wide range of risk
mitigation strategies; however, both a proactive and reactive management strategy will apply. A
summary of the Silver Level of Service is as follows:
The proposed annual budget under a fully implemented Park and Trail District with maintenance
responsibility for 100% of city dedicated park and trail and addressing deferred maintenance for the
Silver Level of Service is:
• $4,355,205 = Future Annual Operations & Maintenance (based on current costs)
• $1,143,442 = Future Annual Capital (deferred maintenance & current CIP over 10 years)
• $5,498,647 = Total Annual Parks Budget
The proposed annual operations and maintenance budget is approximately $2.4M MORE than the current
annual operating budget. As shown in the table below, $724,000 is for maintaining new parks (TOPS
parks), $1.2M is for assuming the responsibility of city neighborhood parks currently maintained by
homeowner associations (HOAs) with $500,000 dedicated to increasing the level of service for the existing
parks.
Menu Silver
All city-owned parks maintained by the city X
Deferred maintenance eliminated in 10 years X
All parks are clean, safe & in good repair X
Proactive risk mitigation strategies X
Level of service increased X
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1.6 THE IMPLEMENTATION PLAN PROCESS
The goal of the Implementation Plan is to create a realistic strategy for the development of a Parks and
Trail District for the City of Bozeman. The process for developing the Implementation Plan consists of
the following elements:
• Issues/Considerations Workshop – October 2018
• Strategic Solutions Workshop – December 2018
• Draft Report
• Final Report
The following project objectives were determined for the Implementation Plan:
• Establish priorities for department leadership in terms of operations and maintenance
• Identify maintenance practices and principles for the desired maintenance outcomes required to
support positive recreation use and support efficient use of resources
• Develop staffing level and other strategies necessary to meet the desired maintenance and
compare to current practices
• Create timeline and performance measures for the implementation plan.
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– STRATEGIC ISSUES
The consultant team conducted an initial strategic issues workshop with staff in October 2018 to dive
deeper into the current operations and maintenance considerations that would impact the
implementation of the Park and Trails District. This information is used in tandem with the Park and Trail
District Feasibility Study to provide a baseline context for the Implementation Plan.
2.1 KEY CONSIDERATIONS OF IMPLEMENTATION
The following issues were identified in the fall of 2018 as the key considerations for the implementation
of a Park and Trail District.
2.1.1 BUDGET DEVELOPMENT
2.1.2 EQUIPMENT AND VEHICLES
KEY CONSIDERATION ISSUE/QUESTION TO BE ADDRESSED
Equipment and Vehicles What current vehicles and equipment are obsolete
and need to be replaced?
Equipment and Vehicles
What new vehicles/equipment and supplies and
materials are needed to support the expansion of the
park maintenance staff?
Equipment and Vehicles When will obsolete vehicles and equipment be
replaced?
Equipment and Vehicles
When will new vehicles/equipment and
supplies/materials needed to support the expansion
of the park maintenance staff be purchased?
KEY CONSIDERATION ISSUE/QUESTION TO BE ADDRESSED
Budget Development
What will the operational and capital budgets for FY
2021 thru FY 2023 (potentially the first three years of
a Park and Trail District) and when can they be
realistically developed?
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2.1.3 HOMEOWNER’S ASSOCIATION PARKS
2.1.4 LIFECYLE REPLACEMENT OF PARK SYSTEM ASSETS
2.1.5 OPERATIONAL EFFICIENCIES
KEY CONSIDERATION ISSUE/QUESTION TO BE ADDRESSED
Operational Efficiences - Cost
Benefit Analysis
What functions of the parks division would benefit
from a comprehensive cost benefit analysis?
Operational Efficiences -
Unproductive Time
Is there a need to establish a satellite maintenance
yard to reduce "travel time" between parks?
KEY CONSIDERATION ISSUE/QUESTION TO BE ADDRESSED
Lifecycle Replacement What is the criteria that determines when an asset
should be lifecycle replaced?
Lifecycle Replacement When will each park asset be life cycle replaced?
KEY CONSIDERATION ISSUE/QUESTION TO BE ADDRESSED
City Neighborhood Parks
currently managed by
Homeowner Associations
What is the inventory and condition of the assets in
city neighborhood parks managed by HOAs and when
will the City assume maintenanace responsibility for
them?
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2.1.6 STAFFING
2.1.7 TIMING
KEY CONSIDERATION ISSUE/QUESTION TO BE ADDRESSED
Staffing - 3rd Party Contracting
What park functions will be "contracted out"? Will
these functions be city-wide? based on geographical
location? By park classification?
Staffing - 3rd Party Contracting Is there capacity in the private sector to conduct
routine park maintenance?
Staffing - 3rd Party Contracting What companies and how many will provide routine
park maintenance functions as 3rd party contractors?
Staffing - Addition of positions
Does the staff capacity exist to manage third party
maintenance contracts and lifecycle replacement
projects?
Staffing - Addition of positions What are the new positions required to support the
increased levels of service?
Staffing - Addition of positions What staff positions should be added first and when?
Staffing - Levels of Service What are the standards required to increase the park
maintenance levels of service?
Staffing - Scalabilty Can the Bozeman market support the needed staff
expansion?
KEY CONSIDERATION ISSUE/QUESTION TO BE ADDRESSED
Timing When will the increased levels of service begin?
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- STRATEGIC IMPLEMENTATION
Upon completion of the second strategic workshop in December 2018, the consultant team divided the
issues into two phases of work and prioritized the issues accordingly. The two phases of work are:
1. “Lead Up Phase” – issues that should be addressed leading up to the fiscal year in which funding
will be generated by a Park and Trail District.
2. “Go Live Phase” – issues that should be addressed when a Park and Trail District is “activated”.
The consultant team recommends the following strategic operational actions to address the issues of
creating a Park and Trail District in the City of Bozeman. There are three overarching general
assumptions that guide the development of the recommended actions found on pages 5-7 of this report.
1. A Park and Trail District will be created in Fiscal Year 2020.
2. Annual funding will ramp up over time to equal the “Silver” level of service as detailed in Chapter
One of this report.
3. Collection of funding will begin in November 2021.
3.1 LEAD UP STRATEGIC ACTIONS
At the time in which the strategic issues were identified in the fall of 2018, the City of Bozeman’s
Strategic Services Department and Parks and Recreation Department had already begun the process to
address several issues. Specific actions taken include:
3.1.1 MAINTENANCE – LEVELS OF SERVICE STANDARDS
• All work activities were tracked across all assets for a three-year period (including labor,
materials and equipment).
• Summary information was then analyzed to derive current maintenance frequencies for each
asset class.
• Future maintenance frequencies were developed according to the approved level of service
recommendation and costs were extrapolated to determine future funding needs (including city
neighborhood parks managed by HOA & TOPS).
• Considerable effort was made to adjust work activities against desired service levels. Staffing
plan information was used to determine future personnel needs associated with TOPS, while city
neighborhood parks managed by HOA projections were made using a relative percentage increase
of current versus future level of service (15.9%).
3.1.2 LIFECYCLE REPLACEMENT – PARK ASSETS AND VEHICLES/EQUIPMENT
• A condition assessment was performed for all high-value/high-risk assets to determine remaining
useful life using objective rating criteria, including vehicles/equipment, irrigation and facilities.
Assets in “poor” condition were classified as deferred maintenance.
• Additional items listed in the current FY19-23 CIP were also included in the final analysis.
• A detailed chart noting the results of this work can be found in the Appendix of the report.
These contributions are reflected in table on the following page and noted as COMPLETED in the
suggested timeline column.
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# KEY CONSIDERATION ISSUE/QUESTION TO BE ADDRESSED STRATEGIC ACTION SUGGESTED TIMELINE
1 Equipment and Vehicles What current vehicles and equipment are obsolete
and need to be replaced?
Development of implementable vehicle and
equipment replacement schedule COMPLETED - January 2019
2
City Neighborhood Parks
currently managed by
Homeowner Associations
What is the inventory and condition of the assets in
city neighborhood parks managed by HOAs and when
will the City assume maintenanace responsibility for
them?
Complete work in-house COMPLETED - January 2019
3 Lifecycle Replacement What is the criteria that determines when an asset
should be lifecycle replaced?
Creation of the prioritization criteria for lifecycle
replacement of park system assets (i.e. - by asset
class, by park, by overall risk, etc.)
COMPLETED - January 2019
4 Budget Development What will the operational and capital budgets for FY
2021 thru FY 2023?
Develop initial budget approaches and present to
Commission for consideration
To be completed and presented
on March 4th, 2019
5 Lifecycle Replacement When will each park asset be life cycle replaced?
Refinement of lifecycle replacement schedule as
presented in 2018 Park and Trail District Feasibility
Study
To be completed during phased
budget approach in Spring 2019
6 Operational Efficiences -
Unproductive Time
Is there a need to establish a satellite maintenance
yard to reduce "travel time" between parks?
Evaluate the potential efficiences and return on
investment to be gained in man-hours by
developing a satellite maintenance yard (possibly at
the Sports Complex)
March - October 2019
7 Staffing - Levels of Service What are the standards required to increase the park
maintenance levels of service?
Finalize maintenance standards that will serve as
the basis of a work plan for the Parks Division and
entry into the City's work order management system
(Cityworks).
March - May 2019
8 Staffing - 3rd Party Contracting
What park functions will be "contracted out"? Will
these functions be city-wide? based on geographical
location? By park classification?
Recommendation by Consultant: Contract out
routine park maintenance functions such as
mowing and trash collection in pocket and
neighborhood parks system wide.
June - July 2019
9 Staffing - 3rd Party Contracting Is there capacity in the private sector to conduct
Bozeman Parks and Recreation Department
10
3.2 GO LIVE STRATEGIC ACTIONS
# KEY CONSIDERATION ISSUE/QUESTION TO BE ADDRESSED STRATEGIC ACTION SUGGESTED TIMELINE
1 Operational Efficiencies -
Unproductive Time
Is there a need to establish a satellite maintenance
yard to reduce "travel time" between parks?
Dependent upon results of efficiency and return on
investment study, begin development of satellite
maintenance yard.
October 2019 - December 2020
2 Operational Efficiencies - Cost
Benefit Analysis
What functions of the parks division would benefit
from a comprehensive cost benefit analysis?
Conduct cost benefit analysis of lines of service
identified in ramp up phase. March - August 2020
3 Staffing - 3rd Party Contracting What companies and how many will provide routine
park maintenance functions as 3rd party contractors?
1. New project manager develops and issues formal
Request for Proposals (RFP) for routine parks
maintenance based on previous scope of work
developed.
2. Evaluation of RFP responses
3. Execution of contracts
4. Contracts "go-live"
1. July - September 2020
2. September - October 2020
3. November 2020 - January 2021
4. Spring 2021
4 Lifecycle Replacement When will each park asset be life cycle replaced?
1. New project manager develops and issues formal
bid documents for lifecycle replacement of assets
scheduled for replacement in 2021 (Year 1 of park
district)
2. Evaluation of responses to bid
3. Execution of contracts
4. Lifecycle replacement begins
1. July - September 2020
2. September - October 2020
3. November 2020 - January 2021
4. Spring 2021 (weather
permitting)
5 Staffing - Addition of positions What staff positions should be added first and when?
1. Develop and issues job advertisements for
positions identified in "ramp up" phase.
2. Conduct interviews and hire staff
3. On-boarding of new employees
4. Employees begin work in field.
1. September - November 2020
2. October - December 2020
3. November - February 2021
4. January - April 2021
*Process of new hires can be
staggered dependent upon
prioritization of positions
6 Equipment and Vehicles When will obsolete vehicles and equipment be
replaced?
Option A:
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– CONCLUSION
The City of Bozeman has had tremendous household growth in the past twenty years that added
significant acreage to the city’s park system. Fortunately, Bozeman not only received land, but sub-
dividers also installed park improvements at the time of dedication. As a result, the Bozeman parks
system has more than doubled in size in the last 20 years and is now comprised of over 900 acres,
After nearly 20 years of significant growth, the City of Bozeman has reached a nexus regarding the
development of a sustainable funding source for the management and maintenance of its park system –
a Park and Trail District. Upon the successful completion of the Park and Trail District Feasibility Study
in July 2018 conducted by Peaks to Plains and PROS Consulting, the City of Bozeman retained these firms
to develop an implementation plan for the potential creation of a Park and Trail District. The purpose
of this study is to identify the strategic approach that the City should embrace to successfully launch a
district.
The key to implementing a Park and Trail District is the identification of unit costs for the maintenance
and lifecycle replacement of its parks’ assets. The development of this data by City staff and the
consulting team provides Bozeman Parks with the needed information to effectively and efficiently
utilize Park and Trail District funding to not only increase the level of service of maintaining the system,
but to also project operations and maintenance implications for bringing new amenities and features on-
line. It should be noted, however, that all unit costs identified are in 2019 dollars. There is a time value
of money and so it is important to continually update costs through the Cityworks work order
management program. Additionally, it is imperative to adjust the current maintenance staff levels
commensurate with the growing system. Recommended adjustments can include increased available
maintenance hours (via new hires, volunteerism, etc.), increasing operational efficiencies, and ensuring
personnel, equipment, and material costs adhere to national best practices.
The Park and Trail District Implementation Plan identifies the immediate next steps so that the unit cost
data can be utilized to provide an increased park maintenance level of service that Bozeman residents
will enjoy for generations to come.
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APPENDIX A – LIFECYCLE REPLACEMENT ANALYSIS
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APPENDIX B - MONTANA CODE ANNOTATED
MONTANA CODE ANNOTATED
TITLE 7. LOCAL GOVERNMENT
Chapter 11. General Provisions Related to Services Part 10. Special Districts – Creation and
Governance
7-11-1001. Purpose. The purpose of this part is to allow for the creation and governance of special
districts.
7-11-1002. Definitions. As used in this part, the following definitions apply:
(1) "Governing body" means the legislative authority of a local government.
(2) "Local government" means a city, town, county, or consolidated city-county government or any
combination of these acting jointly.
(3) (a) "Special district" means a unit of local government that is authorized by law to perform a
single function or a limited number of functions.
(b) The term includes but is not limited to cemetery districts, museum districts, park districts, fair districts,
solid waste districts, local improvement districts, mosquito control districts, multijurisdictional
districts, road districts, rodent control districts, television districts, and districts created for any public
or governmental purpose not specifically prohibited by law. The term also includes any district or other
entity formed to perform a single or limited number of functions by interlocal agreement.
(c) The term does not include business improvement districts, cattle protective districts, conservancy
districts, conservation districts, water and sewer districts, planning and zoning districts, drainage
districts, grazing districts, hospital districts, irrigation districts, library districts, livestock protective
committees, parking districts, resort area districts, rural improvement districts, special improvement
districts, lighting districts, rural fire districts, street maintenance districts, tax increment financing
districts, urban transportation districts, water conservation and flood control projects, and weed
management districts.
7-11-1003. Authorization to create special districts. (1) Whenever the public convenience and
necessity may require:
(a) the governing body may:
(i) create a special district by resolution; or
(ii) order a referendum on the creation of a special district to serve the inhabitants of the special
district as provided in 7-11-1011; or
(b) petitioners may initiate the creation of a special district to serve inhabitants of the special district
as provided in subsection (2).
(2) (a) (i) Upon receipt of a petition to institute the creation of a special district that is signed by at least
25% of the registered voters or by the owners of at least 25% of the real property within the boundary of
the proposed special district and that is submitted to the clerk of the governing body, the governing body
shall order a referendum on the creation of the special district pursuant to 7-11-1011.
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(ii) Upon receipt of a petition to institute the creation of a special district that is signed by more than
50% of the registered voters or by the owners of more than 50% of the real property within the boundary
of the proposed special district, the governing body shall conduct a public hearing pursuant to 7-11-
1007. Following the hearing and if insufficient protests are made as provided in 7-11-1008, the
governing body shall order the creation of the special district in accordance with 7-11-1013.
(b) If a proposed special district would be financed by a mill levy, a petition to institute the creation of
the special district must be signed by at least 40% of the registered voters or at least 40% of the property
taxpayers within the boundary of the proposed district, the petition may be prescribed by the governing
body, and the clerk of the governing body shall verify the signatures on the petition.
(d) Subject to subsection (2)(c), the petition must:
(i) require the printed name of each signatory;
(4) specify whether the signatory is a property taxpayer or owner of real property within the
proposed special district and either the street address or the legal description, whichever the
signatory prefers, of that property;
(5) describe the type of special district being proposed and the general character of any proposed
improvements and program to be administered within the special district;
(6) designate the method of financing any proposed improvements or maintenance program within
the special district;
(7) include a description of the areas to be included in the proposed special district; and
(8) specify whether the proposed special district would be administered by the local governing
body or an appointed or elected board.
(3) Within 60 days of receipt of a petition to create a special district, the clerk of the governing body
shall:
(d) certify that the petition is sufficient under the provisions of subsection (2) and present it to the
governing body at its next meeting; or
(e) reject the petition if it is insufficient under the provisions of subsection (2).
(4) A defect in the contents of the petition or in its title, form of notice, or signatures may not invalidate
the petition and subsequent proceedings as long as the petition has a sufficient number of qualified
signatures attached.
7-11-1006. Determining special district boundaries. (1) The boundaries of the proposed special district
must be mapped, clearly described, and made available to the public at the time of the publication of
the notice of public hearing pursuant to 7-11-1007 before the district may be approved.
(iii) The governing body or petitioners shall consult with a professional land surveyor, as defined in
37-67-101, to prepare a legal description of the boundaries for the proposed special district.
(iv) The boundaries must follow property ownership, precinct, school district, municipal, and county
lines as far as practical.
7-11-1007. Public hearing -- resolution of intention to create special district. (1) The governing body
shall hold at least one public hearing concerning the creation of a proposed special district prior to the
passage of a resolution of intention to create the special district. A resolution of intention to create a
special district may be based upon a decision of the governing body as provided in 7-11-1003(1)(a) or
upon a petition that contains the required number of signatures as provided in 7-11-1003(1)(b).
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(2) The resolution must designate:
(a) the proposed name of the special district;
(b) the necessity for the proposed special district;
(c) a general description of the territory or lands to be included within the proposed special district, giving
the boundaries of the proposed special district;
(d) the general character of any proposed improvements and the proposed location for the proposed
program or improvements;
(e) the estimated cost and method of financing the proposed program or improvements;
(f) any requirements specifically applicable to the type of special district; ether the proposed special
district would be administered by the governing body or an appointed or elected board; and
(h) the duration of the proposed special district.
(3) (a) The governing body shall publish notice of passage of the resolution of intention to create a special
district as provided in 7-1-2121 and 7-1-2122 or 7-1-4127 and 7-1-4129, as applicable. The notice must
contain a notice of a hearing and the time and place where the hearing will be held.
(9) At the same time that notice is published pursuant to subsection (3)(a), the governing body
shall provide a list of those properties subject to potential assessment, fees, or taxation under
the creation of the proposed special district. The list may not be distributed or sold for use as
a distribution list in accordance with 2-6-1017.
(10) A copy of the notice described in subsection (3)(a) must be mailed to each owner or purchaser
under contract for deed of the property included on the list referred to in subsection (3)(b) as
shown by the current property tax record maintained by the department of revenue for the
county.
7-11-1008. Right to protest -- procedure -- hearing. (1) An owner of property that is liable to be
assessed for the program or improvements in the proposed special district has 60 days from either the
date of the first publication of the notice of passage of the resolution of intention or the date the protest
form provided for in subsection (2)(c) was sent to property owners, whichever is later, to make a written
protest against the proposed program or improvements.
(2) (a) A property owner may register a written protest under either subsection (2)(b) or (2)(c).
(f) A property owner may register a written protest in any format in conformity with this section. The
protest must identify the property in the district owned by the protestor by either its street address or
its legal description, whichever the property owner prefers, be signed by a majority of the owners of
that property, and be delivered to the clerk of the governing body, who shall endorse on the protest
the date of receipt.
(g) The governing body shall send each person referred to in 7-11-1007(3)(c) a protest form with space for
any information required under subsection (2)(b) of this section, mailing instructions, and the date the
form must be returned to the governing body. The form must allow a property owner to select either
support for or opposition against the creation of the district. The forms returned with an indication of
either support for or opposition against the creation of the district may be used, along with written
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protests submitted under subsection (2)(b), in determining whether sufficient protest has been filed to
prevent further proceedings.
(3) (a) For purposes of this section, "owner" means, as of the date a protest is filed, a record owner of
fee simple title to the property or a contract buyer on file with the county clerk and recorder.
(b) The term does not include a tenant of or other holder of a leasehold interest in the property.
(v) An owner of property created as a condominium may protest pursuant to the provisions in 7-11-
1027.
(vi) (a) At the hearing provided for in 7-11-1007, the governing body shall consider all protests.
(b) If the protest is made by the owners of property in the proposed district to be assessed for:
(c) 50% or more of the cost of the proposed program or improvements, in accordance with the
method or methods of assessment, further proceedings may not be taken by the governing body
for at least 12 months; or
(d) more than 10% but less than 50% of the cost of the proposed program or improvements, in
accordance with the method or methods of assessment, and if the governing body decides to
proceed with proposing the district, the governing body shall order a referendum in accordance
with 7-11-1011.
(g) In determining whether or not sufficient protests have been filed in the proposed special district to
prevent further proceedings, property owned by a governmental entity must be considered the same
as any other property in the district.
(h) The decision of the governing body is final and conclusive.
(e) The governing body may adjourn the hearing from time to time.
7-11-1010. Combination of elections -- term of board members if election combined. (1) (a) If the
governing body orders a referendum on the creation of a proposed special district and the special district
would be administered by an elected board, the governing body may combine the referendum on the
formation of the district with the election of the members of the board so that the qualified electors of
the district may vote on these matters on the same date and at the same time.
(b) If the elections are combined, the notice of the election must contain the names of the candidates.
Candidates for the board must file a declaration of candidacy with the election administrator within the
time period specified in 13-1-502. The election administrator shall endorse on the declaration the date
on which it was presented.
(11) If the governing body orders a combined election pursuant to subsection (1) and unless
otherwise provided by resolution by the governing body pursuant to 7-1-201:
• a board member elected pursuant to this section shall hold office until the election
and qualification or the appointment and qualification of the member's successor.
• Except as provided in subsection (2)(c), a board member has a term of office of 4
years.
• (i) In a special district requiring the election of five directors, three of the initial
directors shall serve for a term of 2 years and two of the initial directors shall serve
for a term of 4 years.
(h) In a special district requiring the election of three directors, one initial director shall serve for a term
of 2 years and two initial directors shall serve for a term of 4 years.
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(i) At the first meeting following an initial election of board members, the board shall determine by lot
who shall serve a 2-year term.
7-11-1011. Referendum -- conduct of election on creating special district. (1) The governing body
may order a referendum on the creation of the proposed special district.
(2) The resolution ordering the referendum must state:
(vii) the type and maximum rate of the initial proposed assessments or fees that would be imposed,
consistent with the requirements of 7-11-1007(2)(e) and 7-11-1024;
(viii) the type of activities proposed to be financed, including a general description of the program
or improvements;
(ix) a description of the areas included in the proposed special district; and
(x) whether the proposed special district would be administered by the governing body or an
appointed or elected board.
(e) The election must be conducted in accordance with Title 13, chapter 1, part 5.
(f) The proposition to be submitted to the electorate must read: "Shall the proposition to organize
(name of proposed special district) be adopted?"
(g) An individual is entitled to vote on the proposition if the individual:
• is a registered elector of the state; and
• is a resident of or owner of taxable real property in the area subject to the proposed
special district.
(i) If the proposition is approved, the election administrator of each county shall:
• immediately file with the secretary of state a certificate stating that the proposition was
adopted;
• record the certificate in the office of the clerk and recorder of the county or counties in
which the special district is situated; and
(c) notify any municipalities lying within the boundaries of the special district.
7-11-1012. Certificate of establishment. (1) On receipt of the certificate referred to in 7-11-1011(6),
the secretary of state shall, within 10 days, issue a certificate reciting that the specified district has
been established according to the laws of the state of Montana. A copy of the certificate must be
transmitted to and filed with the clerk and recorder of the county or counties in which the district is
situated.
(2) When the certificate is issued by the secretary of state, the district named in the certificate is
established with all the rights, privileges, and powers set forth in 7-11-1021.
7-11-1013. Order creating district -- power to implement program. (1) The governing body shall create
a special district and establish assessments or fees if the governing body finds that insufficient protests
have been made in accordance with 7-11-1008 or if the eligible registered voters have approved a
referendum as provided in 7-11-1011.
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(12) To create a special district, the governing body shall issue an order or pass an ordinance or
resolution in accordance with the resolution of intention introduced and passed by the
governing body or in accordance with the terms of the referendum required under 7-11-1011.
This must be done within 30 days of the end of the protest period or approval of the
referendum.
(13) If the governing body creates the special district of its own accord and without a referendum
being held, a copy of the order, ordinance, or resolution creating the district, certified by the
clerk of the governing body, must be delivered to the clerk and recorder of the county or
counties in which the special district is situated and to the secretary of state, who shall issue
a certificate of establishment in accordance with 7-11-1012.
7-11-1014. Additional reporting procedures -- coordination of information collection, transfer, and
accessibility. (1) Within 60 days after the creation of a special district or by January 1 of the effective
tax year, whichever occurs first, the governing body shall provide to the department of revenue a:
(j) legal description of the special district;
(k) map of its boundaries;
(l) list of the property taxpayers or owners of real property within the special district's boundaries; and
(m) copy of the resolution establishing the special district, including any adopted method of assessment.
(xi) The department of revenue shall review the information provided in accordance with subsection
(1) and work with the governing body to identify and correct any discrepancies before the
information is recorded by the department.
(xii) If the governing body intends to submit any digital information to the department of revenue
for the purposes of subsection (4)(b), the governing body shall notify the department of revenue
as to the expected date of submission and submit the digital information in a manner prescribed
by the department of revenue in consultation with the state library.
(xiii) The state library, in coordination with the department of revenue, governing bodies, and other
appropriate entities, may develop standards, best practices, and procedures for:
• collecting and transferring between agencies any digital information submitted by a
governing body for purposes of subsection (4)(b); and
• creating digital information to map special districts for land information purposes
authorized in Title 90, chapter 1, part 4, that can be accessed through the website
of the state library.
7-11-1015. Limitations on lawsuits. (1) A finding of the governing body in favor of the genuineness and
sufficiency of the petition or election is final and conclusive against all persons except the state of
Montana upon suit brought by the attorney general.
(2) A lawsuit filed by the attorney general must be filed by the earlier of:
) 1 year after the order, ordinance, or resolution creating the special district is approved by the governing
body; or
(b) the issuance of bonds to implement the program or improvements approved for the special district.
7-11-1021. Governance -- powers and duties. (1) A special district must be administered and operated
either by the governing body or by a separate elected or appointed board as determined by the governing
body.
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(2) (a) If the special district is governed by a separate board, the board must be established in accordance
with Title 7, chapter 1, part 2, except as provided in 7-11-1010, and specific powers and duties granted
to the board and those specifically withheld must be stated.
(14) A vacancy created pursuant to 2-16-501 occurring during a term must be filled for the
unexpired term by the governing body. The member appointed to fill the vacancy holds the
office until a successor has been appointed and qualified.
(15) The governing body may grant additional powers to the board. This includes the authorization
to use privately contracted legal counsel or the attorney of the governing body. If privately
contracted counsel is used, notice must be provided to the attorney of the governing body.
(16) The governing body has ultimate authority under this subsection (2).
(3) The entity chosen to administer the special district, as provided in subsection (1), may:
(n) implement a program and order improvements for the special district designed to fulfill the purposes
of the special district;
(o) employ personnel directly related to the specific improvement or program;
(p) purchase, rent, or lease equipment, personal property, and material necessary to develop and
implement an effective program;
(q) cooperate or contract with any corporation, association, individual, or group of individuals, including
any agency of federal, state, or local government, in order to develop and implement an effective
program;
(r) receive gifts, grants, or donations for the purpose of advancing the program and, by gift, deed, devise,
or purchase, acquire land, facilities, buildings, and material necessary to implement the purposes of
the special district;
(s) construct, improve, and maintain new or existing facilities and buildings necessary to accomplish the
purposes of the special district;
(t) provide grants to private, nonprofit entities as part of implementing an effective program;
(xiv) adopt a seal and alter it at the entity's pleasure;
(xv) administer local ordinances as appropriate;
(h) establish district capital improvement funds pursuant to 7-6-616, maintenance funds, and debt
service funds; and
(i) borrow money by the issuance of:
(j) general obligation bonds as authorized by the governing body pursuant to Title 7, chapter 6, part 40,
and the appropriate provisions of Title 7, chapter 7, part 22 or 42; or
(k) revenue bonds for the lease, purchase, and maintenance of land, facilities, and buildings and the
funding of projects in the manner and subject to the appropriate provisions of Title 7, chapter 7, part
25 or 44.
(4) If the special district is administered by a separate board, the board shall submit annual budget and
work plans to the governing body for review and approval.
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(5) The right to exercise eminent domain pursuant to 70-30-102 is limited to cemetery districts.
7-11-1022. Multiple jurisdictions. (1) A special district created by a combination of local governments
acting together must be administered according to an interlocal agreement. The interlocal agreement
may determine whether the administrative body of the special district consists of the entire
membership of all governing bodies from the participating jurisdictions or representatives of each
governing body or jurisdiction.
(17) A special district created by a combination of local governments acting together may enlarge
an existing service district, but may not supersede or void an existing contract, district, or
interlocal agreement under which the same service is currently provided to residents of one or
more of the participating jurisdictions. The local governments acting together may agree to
alter an existing contract, district, or interlocal agreement as necessary.
(18) The local governments shall proportionally share the ownership of real or personal property
acquired by the district pursuant to their interlocal agreement.
7-11-1023. Alteration of special districts. (1) Subject to subsections (2) and (3), the governing body
may change the boundaries of any special district by resolution.
(u) The boundaries may be altered by petition after complying with the requirements for petitions as
provided in 7-11-1003.
(v) Alteration of special district boundaries is also subject to procedures for public notice, protest,
referendum, certification, reporting, and establishment of assessment as provided in 7-11-1006
through 7-11-1008, 7-11- 1011 through 7-11-1015, and 7-11-1024.
(w) Changes made to the boundaries may not:
(xvi) occur more than once each year unless the governing body makes a special finding that an
alteration is necessary;
(xvii) delete any portion of the area if the deletion will create an island of included or excluded
lands;
(xviii) delete any portion of the area that is negatively contributing or may reasonably be
expected to negatively contribute to environmental impacts that fall within the scope of the
special district's program; and
(xix) affect indebtedness existing at the time of the change.
7-11-1024. Financing for special district. (1) The governing body shall make assessments or impose fees
for the costs and expenses of the special district based upon a budget proposed by the governing body
or separate board administering the district pursuant to 7-11-1021.
(j) For the purposes of this section, "assessable area" means the portion of a lot or parcel of land
that is benefited by the special district. The assessable area may be less than but may not
exceed the actual area of the lot or parcel.
(k) The governing body shall assess the percentage of the cost of the program or improvements:
• against the entire district as follows:
(l) each lot or parcel of land within the special district may be assessed for that part of the cost that its
assessable area bears to the assessable area of the entire special district, exclusive of roads, streets,
avenues, alleys, and public places;
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(m) if the governing body determines that the benefits derived from the program or improvements by each
lot or parcel are substantially equivalent, the cost may be assessed equally to each lot or parcel located
within the special district without regard to the assessable area of the lot or parcel;
(n) each lot or parcel of land, including the improvements on the lot or parcel, may be assessed for that
part of the cost of the special district that its taxable valuation bears to the total taxable valuation of
the property of the district; be assessed based on the lineal front footage of any part of the lot or parcel
that is in the district and abuts the area to be improved or maintained;
(19) each lot or parcel of land within the district may be assessed for that part of the cost that the
reasonably estimated vehicle trips generated for a lot or parcel of its size in its zoning
classification bear to the reasonably estimated vehicle trips generated for all lots in the district
based on their size and zoning classification;
(20) each lot or parcel of land within the district may be assessed based on each family residential
unit or one or more business units; or
(21) any combination of the assessment options provided in subsections (3)(a)(i) through (3)(a)(vi)
may be used for the special district as a whole; or
(b) based upon the character, kind, and quality of service for a residential or commercial unit, taking
into consideration:
(i) the nature of the property or entity assessed;
(x) a calculated basis for the program or service, including volume or weight;
(y) the cost, incentives, or penalties applicable to the program or service practices; or
(z) any combination of these factors.
(4) If property created as a condominium is subject to assessment, each unit within the condominium is
considered a separate parcel of real property subject to separate assessment and the lien of the
assessment. Each unit must be assessed for the unit's percentage of undivided interest in the common
elements of the condominium. The percentage of the undivided ownership interest must be as set forth
in the condominium declaration.
7-11-1025. Notice of resolution for assessment -- assessment. (1) The governing body shall estimate,
as near as practicable, the cost of each established special district annually by the later of the first
Thursday after the first Tuesday in September or within 30 calendar days after receiving certified taxable
values from the department of revenue.
(2) (a) The governing body shall pass and finally adopt a resolution specifying the special district
assessment option and levying and assessing all the property within the special district with an amount
equal to the annual cost of the program and improvements as provided in 7-6-4012 and 7-6-4013.
(b) If the entity chosen to administer the special district is the governing body, the governing body may
not charge more than 15% of the annual fees or assessments collected to administer the special district.
(xx) The resolution levying the assessment to defray the cost of the special district must contain or
refer to a list that describes the lot or parcel of land assessed with the name of the owner of
the lot or parcel, if known, and the amount assessed.
(xxi) The resolution must be kept on file in the office of the clerk of the governing body.
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(xxii) A notice, signed by the clerk of the governing body, stating that the resolution levying a
special assessment or changing the method of assessment to defray the cost of the special
district is on file in the clerk's office and subject to inspection must be published as provided in
7-1-2121 or 7-1-4127. The notice must state the time and place at which objections to the
final adoption of the resolution will be heard by the governing body and must contain a
statement setting out the method of assessment being proposed for adoption or the change in
assessment being proposed for adoption. The time for the hearing must be at least 5 days after
the final publication of the notice.
(xxiii) The notice and hearing process may be included in the local government's general
budgeting process as provided in Title 7, chapter 6, part 40.
(xxiv) At the time set, the governing body shall meet and hear all objections that may be made
to the assessment or any part of the assessment, may adjourn from time to time for that
purpose, and may by resolution modify the assessment.
(xxv) A copy of the resolution, certified by the clerk of the governing body, must be delivered
to the department Thursday after the first Tuesday in September or within 30 calendar days
after receiving certified taxable values from the department of revenue.
7-11-1026. Collection of special district assessments. (1) When a resolution of assessment has been
certified by the clerk of the local government, the county treasurer, the city treasurer, or the town
clerk, as provided in 7-12-4182, shall collect the assessment in the same manner and at the same time
as property taxes for general purposes are collected.
(2) All money received by the special district, including interest and earnings accrued, must be deposited
in an account held only for the special district by the office of the county treasurer, city treasurer, or
town clerk.
7-11-1027. Payment of assessment under protest -- action to recover. (1) (a) When an assessment
made under this part is considered erroneous by the party whose property is charged or from whom the
payment is demanded, the person may:
(22) prior to the assessment becoming delinquent, file an appeal to the administrative board of the
district; or
(23) pay the assessment or any part of the assessment considered to be erroneous under protest to
the county treasurer, city treasurer, or town clerk, whoever is charged with collection of the
assessment, and either file an appeal to the administrative board of the district or initiate
action in court as provided in subsection (2).
(b) (i) If an appeal is filed before the administrative board and the board finds in favor of the taxpayer,
the board shall order the assessment or the contested portion of the assessment removed, and if the
payment was made under protest, it must be refunded by the county treasurer, city treasurer, or town
clerk.
(ii) If an appeal is filed before the administrative board and the board does not find in favor of the
taxpayer and if a payment was made under protest or the taxpayer makes a payment under protest
before the assessment becomes delinquent, the taxpayer may initiate an action in court as provided in
subsection (2).
(aa) The party paying under protest or the party's legal representative may bring an action in any court of
competent jurisdiction against the officer to whom the assessment was paid or against the local
government on whose behalf the assessment was collected to recover the assessment or any portion of
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the assessment paid under protest. An action instituted to recover the assessment paid under protest
must be commenced within 90 days after the date of payment.
(bb) The assessment paid under protest must be held by the county treasurer, city treasurer, or town clerk
until the determination of an action brought for the recovery of the assessment.
(cc) If the assessment considered to be unlawful pertains to property created as a condominium and the
property is not solely a certain unit in the condominium, then the owner of the property created as a
condominium that is entitled to protest is considered to be the collective owners of all units having an
undivided ownership interest in the common elements of the condominium.
(dd) An owner of property created as a condominium may protest against the method of assessment or vote
at an election of the special district only through a president, vice president, secretary, or treasurer of
the condominium owners' association who timely presents to the secretary of the special district the
following:
(xxvi) a writing identifying the condominium property;
(xxvii) the condominium declaration or other condominium document that shows how votes of
unit owners in the condominium are calculated;
(xxviii) original signatures of owners of units in the condominium having an undivided ownership
interest in the common elements of the condominium sufficient to constitute an affirmative
vote for an undertaking relating to the common elements under the condominium declaration;
and
(xxix) a certificate signed by the president, vice president, secretary, or treasurer of the
condominium owners' association certifying that the votes of the unit owners, as evidenced by
the signatures of the owners, are sufficient to constitute an affirmative vote of the condominium
owners' association to protest against the method of assessment.
7-11-1028. Assessments as liens. (1) An assessment made and levied to defray the cost and expenses
of the program or improvements, together with any percentages imposed for delinquency and for cost
of collection, constitutes a lien upon the property on which the assessment is made and levied from the
date of the passage of resolution levying the assessment. This lien may be extinguished only by payment
of the assessment, with all provided in subsection (2).
(2) When the payment of an installment of an assessment becomes delinquent, all payments of
subsequent installments of the assessment may, at the option of the governing body and upon adoption
of the appropriate resolutions, become delinquent. Upon delinquency in one or all installments, the
whole property must be sold in the same manner as other property is sold for taxes. The enforcement of
the lien of any installment of a special assessment by any method authorized by law does not prevent
the enforcement of the lien of any subsequent installment when it becomes delinquent.
7-11-1029. Dissolution of special district. (1) A special district may be dissolved if it is considered to
be in the best interest of a local government or the inhabitants of the local government or if the purpose
for creating the special district has been fulfilled and the special district is not needed in perpetuity.
(24) The governing body may pass a resolution of intention to dissolve a special district upon its own
request or upon request of the separate board administering the special district.
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(25) After the passage of the resolution provided for in subsection (2), the clerk of the local
government that established the special district shall publish a notice, as provided in 7-1-2121
or 7-1-4127, of the intention to dissolve the district.
(26) (a) The notice must specify the boundaries of the special district to be dissolved, the date of
the passage of the resolution of intention to dissolve, the date set for the passage of the
resolution of dissolution, and that the resolution will be passed unless the clerk of the local
government receives written protest in advance from the owners of property in the district
who are assessed for:
(ee) 50% or more of the cost of the program or improvements; or
(ff) more than 10% but less than 50% of the cost of the program or improvements.
(xxx) If the governing body receives the protest as provided in subsection (4)(a)(i), further
dissolution proceedings may not be taken by the governing body for at least 12 months.
(xxxi) If the governing body receives the protest as provided in subsection (4)(a)(ii), the
governing body shall order a referendum on the dissolution in accordance with 7-11-1011.
(xxxii) In determining whether or not sufficient protests have been filed, property owned by a
governmental entity must be considered the same as any other property in the district.
(xxxiii) The decision of the governing body is final and conclusive.
(5) If the special district is dissolved, the clerk of the local government shall immediately send written
notice to:
(l) the secretary of state; and
(m) the department of revenue, providing the same information required in 7-11-1014 when a
district is created.
The department of revenue and the state library shall respond to the dissolution in the same manner as
they respond to the creation of a district, as described in 7-11-1014.
(o) The dissolution of a special district may not relieve the property owners from the assessment and
payment of a sufficient amount to liquidate all charges existing against the special district prior to the
date of dissolution.
(p) Any assets remaining after all debts and obligations of the special district have been paid, discharged,
or irrevocably settled must be:
(a) deposited in the general fund of the local government; local governments, divided in accordance
with their interlocal agreement and deposited in the general fund of each local government; or
(b) the case of multiple local governments, divided in accordance with their interlocal agreement
and deposited in the general fund of the local government; or
(c) transferred to a new special district that has been created to provide substantially the same
service as provided by the dissolved district
(8) If the remaining assets are derived from private grants or gifts that restrict the use of those
funds, the funds must be returned to the grantor or donor.
7-11-1030. Minutes. The board or governing body administering and operating the special
district as provided by 7-11-1021 shall submit the minutes of its proceedings for
electronic storage as provided in 7-1-204 unless:
(d) the special district is operated by the governing body of a municipality; and
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(e) the governing body has designated an alternative place for the minutes to be recorded or
maintained.
7-11-1035. Energy performance contracts exempt. This part does not apply to solicitation and
award of an investment-grade energy audit or energy performance contract pursuant to Title 90,
chapter 4, part the pursuant to the energy performance contract.
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Year 1- FY21 Year 2- FY22 Year 3- FY23 Year 4- FY24 Year 5- FY25
Proposed Rate Increase (year 1 rate per sqft) 0.01800 30% 18% -4% -2%
Estimated Growth in Assessable SqFt 0% 2% 2% 2% 2%
FY21 FY22 FY23 FY24 FY25
Beginning Fund Balance - Projected - 11,426 0 214,946 365,359
Estimated Revenues:
Assessments 3,929,725 5,210,815 6,271,737 6,141,285 6,138,828
Misc Rev (interest & penalties) 2,500 2,550 2,601 2,653 2,706
Total Estimated Revenues: 3,932,225 5,213,365 6,274,338 6,143,938 6,141,534
Proposed Expenditures:
Operations** 3,472,799 4,232,993 4,847,343 4,747,173 4,877,830
Capital 448,000 991,798 1,212,049 1,246,352 1,280,655
Total Proposed Expenditures: 3,920,799 5,224,791 6,059,392 5,993,525 6,158,485
Ending Fund Balance - Projected 11,426 0 214,946 365,359 348,408
Annual Assessments:
Small Lot, 5,000 sq ft. 90.00 117.00 138.06 132.54 129.89
Average Lot, 7,500 sq ft. 135.00 175.50 207.09 198.81 194.83
Median Lot, 7,823 sq ft 140.81 183.06 216.01 207.37 203.22
Large Lot, 10,000 sq ft. 180.00 234.00 276.12 265.08 259.77
Extra Large, 15,000 sq ft 270.00 351.00 414.18 397.61 389.66
Reserve Policy:
15 Days Pers & Ops (0, 0, 15, 15, 15) - - 199,206 195,089 200,459
- - 199,206 195,089 200,459
11,426 0 15,740 170,269 147,949
Parks & Trails Maintenance District 3 year Implementation - 5 year Projection
260
Year 1- FY21 Year 2- FY22 Year 3- FY23 Year 4- FY24 Year 5- FY25
Proposed Rate Increase (year 1 rate per sqft) 0.01800 18% 12% 8% 1%
Estimated Growth in Assessable SqFt 0% 2% 2% 2% 2%
FY21 FY22 FY23 FY24 FY25
Beginning Fund Balance - Projected - 11,426 23,338 296,105 257,555
Estimated Revenues:
Assessments 3,929,725 4,729,817 5,403,342 5,952,322 6,132,082
Misc Rev (interest & penalties) 2,500 2,550 2,601 2,653 2,706
Total Estimated Revenues: 3,932,225 4,732,367 5,405,943 5,954,975 6,134,788
Proposed Expenditures:
Operations 3,472,799 3,879,912 4,096,304 4,747,173 4,877,830
Capital 448,000 840,542 1,036,873 1,246,352 1,280,655
Total Proposed Expenditures: 3,920,799 4,720,455 5,133,176 5,993,525 6,158,485
Ending Fund Balance - Projected 11,426 23,338 296,105 257,555 233,858
Annual Assessments:
Small Lot, 5,000 sq ft. 90.00 106.20 118.94 128.46 129.74
Average Lot, 7,500 sq ft. 135.00 159.30 178.42 192.69 194.62
Median Lot, 7,823 sq ft 140.81 166.16 186.10 200.99 203.00
Large Lot, 10,000 sq ft. 180.00 212.40 237.89 256.92 259.49
Extra Large, 15,000 sq ft 270.00 318.60 356.83 385.38 389.23
Reserve Policy:
15 Days Pers & Ops (0, 0, 0, 15, 15) - - - 195,089 200,459
- - - 195,089 200,459
11,426 23,338 296,105 62,465 33,399
Parks & Trails Maintenance District 4 year Implementation - 5 year Projection
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Year 1- FY21 Year 2- FY22 Year 3- FY23 Year 4- FY24 Year 5- FY25
Proposed Rate Increase (year 1 rate per sqft) 0.01800 15% 10% 5% 3%
Estimated Growth in Assessable SqFt 0% 2% 2% 2% 2%
FY21 FY22 FY23 FY24 FY25
Beginning Fund Balance - Projected - 11,426 76,904 470,422 570,735
Estimated Revenues:
Assessments 3,929,725 4,609,567 5,171,934 5,539,141 5,819,422
Misc Rev (interest & penalties) 2,500 2,550 2,601 2,653 2,706
Total Estimated Revenues: 3,932,225 4,612,117 5,174,535 5,541,794 5,822,128
Proposed Expenditures:
Operations 3,472,799 3,804,203 3,940,474 4,506,718 4,877,830
Capital 448,000 742,436 840,542 934,764 1,280,655
Total Proposed Expenditures: 3,920,799 4,546,639 4,781,017 5,441,482 6,158,485
Ending Fund Balance - Projected 11,426 76,904 470,422 570,735 234,378
Annual Assessments:
Small Lot, 5,000 sq ft. 90.00 103.50 113.85 119.54 123.13
Average Lot, 7,500 sq ft. 135.00 155.25 170.78 179.31 184.69
Median Lot, 7,823 sq ft 140.81 161.94 178.13 187.04 192.65
Large Lot, 10,000 sq ft. 180.00 207.00 227.70 239.09 246.26
Extra Large, 15,000 sq ft 270.00 310.50 341.55 358.63 369.39
Reserve Policy:
15 Days Pers & Ops (0, 0, 0, 0, 15) - - - - 200,459
- - - - 200,459
11,426 76,904 470,422 570,735 33,920
Parks & Trails Maintenance District 5 year Implementation - 5 year Projection
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1. November 2020
2. December - February 2021
3. January - April 2021
7 Equipment and Vehicles
When will new vehicles/equipment and
supplies/materials needed to support the expansion of
the park maintenance staff be purchased?
Option B:
1. August - September 2020
2. October 2020
3. November 2020
4. December - February 2021
5. January - April 2021
8 Timing
When will the increased levels of service, in particular,
city neighborhood parks currently managed by HOAs,
begin?
Recommendation by Consultant: Increased levels
of service, including absorption of city
neighborhood parks currently managed by HOAs,
via 3rd party contracted work and expansion of
Parks Division will be phased in as noted previously
July 2020 - Spring 2021
GO LIVE PHASE - STRATEGIC IMPLEMENTATION
Option A:
1. Utilizing an existing contract, procure
replacement and new equipment/vehicles per
schedules developed in "ramp up phase"
2. New equipment/vehicles delivered and
inventoried by Public Works
3. New equipment/vehicles in field for use.
Option B:
1. Develop and issuance of formal bid documents
for procurement of replacement and new
equipment/vehicles per schedules developed in
"ramp up" phase.
2. Evaluation of responses to bid
3. Execution of contracts
4. New equipment/vehicles delivered and
inventoried by Public Works
5. New equipment/vehicles in field for use.
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routine park maintenance?
Create a "Scope of Work" based on new
maintenance standards and issue a "Request for
Interest" to determine capacity of private sector
July - September 2019
10 Staffing - Addition of positions
Does the staff capacity exist to manage third party
maintenance contracts and lifecycle replacement
projects?
Recommendation by Consultant: Consider the
creation of Contract/Project Coordinator position
to manage third party maintenance contracts and
lifecycle replacement project. Key questions to be
addressed: Where would position be initally
funded from? When?
September - October 2019
11 Staffing - Addition of positions What are the new positions required to support the
increased levels of service?
Create functional organizational chart and job
descriptions for the critical positons required to
increase the level of service of park maintenance
that align with new park maintenance standards.
Prioritization of positions should also be developed.
Recommendation by Consultant: Areas of focus
include: system-wide irrigation system and
playgrounds; park management/administrative
services
September - October 2019
12 Staffing - Scalabilty Can the Bozeman market support the needed staff
expansion?
Conduct an employment market scan to ensure a
strong pool of candidates exists to fill new positions
identified in functional staff chart
October 2019 - January 2020
13 Operational Efficiences - Cost
Benefit Analysis
What functions of the parks division would benefit
from a comprehensive cost benefit analysis?
Identify lines of service that should undergo a
comprehensive cost benefit analysis. (i.e. restroom
maintenance, dog station servicing, seasonal ice
rinks, etc.)
November 2019 - February 2020
14 Equipment and Vehicles
What new vehicles/equipment and supplies and
materials are needed to support the expansion of the
park maintenance staff?
Creation of non-personnel resource list and budget
required to support staff expansion January - February 2020
15 Budget Development What will the operational and capital budgets for FY
2021 thru FY 2023?
Based on the estimated annual revenue generated
by a park district, develop and finalize budgets for
FY 2021 thru FY 2023
January - March 2020
16 Staffing - Addition of positions What staff positions should be added first and when?
Recommendation by Consultant: Authorize, fund
and plan to hire a person into the position of
Contract/Project Coordinator so as to "get out in
front" of the management of third party
maintenance contracts and lifecycle replacement
project. FY 20 General Fund impact would be 25%
of total compensation package as it is
recommended that the position be filled by March
2020
March - June 2020
LEAD UP PHASE - STRATEGIC IMPLEMENTATION
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