HomeMy WebLinkAbout08-27-20 Public Comment - University Neighborhood Association - Supporting info- use of fines & fees to fund MSU_BHS Residential Parking Permit DistrictsAttachments available until Sep 25, 2020
From:Agenda
To:Greg Sullivan; Jeff Mihelich; Dani Hess; Agenda
Subject:FW: Supporting info- use of fines & fees to fund MSU/BHS Residential Parking Permit Districts
Date:Thursday, August 27, 2020 9:56:30 AM
Attachments:Letter UNA to City Attorney-use fees & fines RPPD.pdf
MSU-BHS RPPDs Use of fees & Fines supportive documents.pdf
Good morning,
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Mike Maas, MPA| City Clerk
City of Bozeman | 121 N. Rouse Ave. | Bozeman, MT 59715
D: 406.582.2321 | C: 406.599.0804
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From: KPowell & S Griswold <powellgriz@icloud.com>
Sent: Wednesday, August 26, 2020 2:43 PM
To: Greg Sullivan <gsullivan@BOZEMAN.NET>; Agenda <agenda@BOZEMAN.NET>; Jeff Mihelich
<jmihelich@BOZEMAN.NET>
Cc: Ron Brey <breyron@gmail.com>; Dani Hess <dhess@BOZEMAN.NET>; Kathy& John Francisco
Brown <jbkfkfjb@gmail.com>; Pat Flaherty <flaherty.77@gmail.com>; Jonathan Wirth -SCAN
<wirth.jonathan@hotmail.com>; Lisa Prugh-Cooper Park <prugh.lisa@gmail.com>; Emily Talago
Midtown NA <emilytalago@gmail.com>; Jennifer Rockne <jsrockne@gmail.com>
Subject: Supporting info- use of fines & fees to fund MSU/BHS Residential Parking Permit Districts
Greg Sullivan, City of Bozeman Attorney
Most of the streets in the University Neighbors Assoc are part of the MSU Residential ParkingPermit District (RPPD).
Many neighbors in UNA and some in parts of South Central Neighborhood Assoc (SCAN) &Cooper Park & Midtown Neighborhood Assocs (that are in the MSU &/or BHS RPPD) are
concerned about the cost of parking permits.We have also been surprised that funding for the RPPD is only being calculated using permit
fees instead of permit fees and fines from violations since they are integrally linked together.
At the City Commission Meeting August 3, 2020, the issue of how RPPDs are funded cameup. The Commission asked you, as City Attorney, to look into the legal funding of these
parking districts.UNA’s Board has also been digging into city commission records from 1990-1994 to learn
more about how the RPPDs were set up and how they are to be funded.
Attached is a letter from the UNA Board laying out what we have found.
Also attached are copies of the documents and public comment letters that we believe supportthat funding for RPPDs is to include both permit fees and fines from violations to offset the
costs of the programs.It is important to clarify funding for the RPPDs so the fiscal status of RPPDs is correctly
analyzed.
Looking for past minutes and agendas takes time. We hope this information will save youtime as you review this issue.
Respectfully
The University Neighbors Board (UNA)
Kathy Powell, President 406-600-1164 powellgriz@icloud.com
Kathy Francisco, Vice President Pat Flaherty, Secretary
August 26, 2020
TO: Greg Sullivan, City of Bozeman Attorney
CC: City Bozeman Mayor Chris Mehl, Deputy Mayor Cyndy Andrus, Commissioners Terry Cunningham,
I-Ho Pomeroy & Michael Wallner , City Manager Jeff Mihelich, Ron Brey and
Dani Hess, Neighborhood Coordinator
From: University Neighbors Assoc Board
Kathy Powell, President; Kathy Francisco, Vice President; Pat Flaherty, Secretary
406-600-1164, powellgriz@icloud.com
RE: Use of Fines and Permit Fees to fund MSU/BHS Residential Parking Permit Districts
Most streets in the University Neighbors Assoc (UNA) are part of the MSU Residential Parking Permit District
(RPPD). When a substantial increase was recently proposed for parking permits, many UNA residents were
concerned. They were also surprised to learn that fines for violations were not being used with permit fees to
offset the cost of the program. This same concern and surprise registered with several residents in the
MSU/BHS RPPDs that live in parts of the South Central Association of Neighbors (SCAN), Cooper Park and
Midtown Neighborhood Associations.
The question of using fines from violations and permit fees to cover costs of RPPDs also came up at the August
3, 2020, City Commission meeting. To help clarify this issue Commissioners requested the you as City Attorney
to look into the legal funding of the MSU/BHS parking districts. The UNA Board, as well, wanted to learn more
about the creation and funding of these districts and we found the following information:
Ordinance 1345, enabling legislation to create Neighborhood Parking Districts, was adopted by the Bozeman
City Commission on May 18, 1992.
Ordinance 1376, adopted by the Bozeman City Commission November 15, 1993, included amendments to
Ordinance 1345, Section 1, pertaining to the objectives of a residential parking permit area and clarifying what
a residential area needs to be to become such a district.
1. Prior to approving of Ordinance 1376, the November 15, 1993, City Commission minutes (pg 15, last pp),
record an explanation of how a Neighborhood Parking District is to be funded.
“At the Mayor’s (Swanson) request, the Assistant City Manager (Ron Brey) reviewed the funding for this
program. He stated that the district is designed to be revenue neutral and will not be a part of the
General Fund. …..….He stated that the fees for the permits and the fines for violation of this chapter of
the Bozeman Municipal Code are to be set so they generate sufficient revenues to offset the
expenditures of the program; and those fees may be adjusted on an annual basis.”
2. With the enabling ordinance in place, the city moved forward to create the MSU Neighborhood Parking
District, Ordinance 1377, which was provisionally adopted December 6, 1993. During the public hearing
for this ordinance, on January 18. 1994 (pg 9, last pp), “The Assistant City Manager (Ron Brey) stated that
the fees for annual permits and fines for violations within the district are set forth under a separate
resolution.”
Then at the same public hearing (pg 25, 2nd pp), “At Commissioner Stiff’s request, the Assistant City
Manager (Ron Brey) reviewed the fiscal impacts of this program. He stated that under the provisions for a
parking district, it is to be revenue neutral. He indicated that the revenues from parking permits and
fines for violations are to cover the costs of the district.”
3. The public hearing continued on January 24, 1994 for Ordinance 1377. On pg 7, pp2, the revenue source
for this parking district came up again. “Responding to Commission Frost, the Assistant City Manager (Ron
Brey) stated that Ordinance No 1345 includes the stipulation that the amount of the fees and fines
established by resolution shall be at the level which will cover the costs of administration and
enforcement. ”Ordinance 1377, creating MSU Neighborhood Parking District was adopted March 7, 1994.
Ordinance 1542, creating Bozeman High School Neighborhood Parking District was adopted July 23, 2001.
The explanation of how a Neighborhood Parking District is to be funded is recorded in 3 different City
Commission minutes from November 15, 1993 to January 24, 1994. What was approved in Ordinance 1345 in
1993, Section 3, 10.32.370 – “Residential Parking Permit Application Procedure” is the same that is in the
current City of Bozeman Municipal Code numbered Sec 36.04.330. The last sentence states “The amount of
the fees shall be established by resolution at the level that covers the cost of administration and enforcement
of the residential parking permit regulations in the residential area.”
This Ordinance talks about permit fees but does not talk about fines. There is a reason for this.
Former Assistant City Manager, Ron Brey, who developed the ordinance, explains this in his July 14, 2020 letter
(pp 2), “The reason the fines are not included in the annual adjustment statement (in the Ordinance) is simply
because the fines were set to match the fines assessed by MSU for parking violations so it would not be
advantageous to violate in one area over the other. The fines would also be subject to adjustment to address
enforcement issues if any arose, but not be considered for adjustment as a revenue generator.”
Ron’s public comment letter of August 5, 202 addressed to City Commissioner Terry Cunningham goes on to
say (pp 4-6) that “to establish this approach (of annual fee adjustment if needed) the following Code language
was adopted. The amount of the fees shall be established by resolution at the level that covers the cost of
administration and enforcement of the residential parking permit regulations in the residential area.”
Ed Meece, City Parking Program Manager, interprets the Ordinance language as meaning that fines were not
to be considered in establishing fee amounts. Ron Brey states in his August 5th letter (pp6), “…. this is incorrect
as the City Commission minutes from Nov 15, 1993 indicate. The fees and fines are used to determine
whether sufficient revenue is generated but only the fees are adjusted if necessary. The minutes and the
Ordinance say the same thing.”
Current Parking staff analysis is flawed. Revenues for the MSU and BHS Residential Parking Permit Districts
should include both permit fees as well as fines. Looking at data from the Parking Program Manager’s
spreadsheets 6/2019 and 6/2020, and memo to City Commission Aug 3,2020
For FY 2020 Permit Fees = $ 61,091 (permit fees $30 residential, visitor and employees within district)
Fines = $ 85,320 (approx. $100,000 FY 2019 pre COVID-1 pandemic)
Total Revenue = $146,411
Program costs = ($115,471)
Surplus = $ 30,940 (using 2019 est fines of $100,000 – surplus would be $45,000)
In summary, the City Commission minutes from Nov 15, 1993 to January 24, 1994, clearly state that permit
fees and fines from violations are revenue and are to be used to cover the cost of administration and
enforcement of residential parking permit regulations in the residential area. The Ordinance was written so
permit fees could be adjusted annually. (Fines would only be adjusted as needed to match MSU parking fines
or address enforcement issues.)
Conclusion: When the correct formula is used (fines and fees as revenue), the MSU/BHS Residential Parking
Permit Districts are economically sustainable and in fact have a surplus. It is in the black and does not have a
deficit of $54,679 (permit fees $30) as stated by Parking staff.
Greg, as Bozeman City Attorney, we believe that after you review the City Commission minutes from 1993 -
1994 and Ron Brey’s 2 letters you will reach the conclusion that both fines from violations and permit fees are
to be used to offset the costs of the MSU/BHS Parking Permit District programs. The 1993
City Commission stated clearly that the program be revenue neutral. To do this fines and permit fees are both
needed as part of the revenue equation. Sharing this legal opinion with the City Commission and Parking
Staff will clarify how to correctly analyze the fiscal status of the MSU/BHS Residential Parking Permit districts.
Enc. Copies of the city commission minutes and letters referred to above are attached.