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HomeMy WebLinkAbout2004-11-29 Minutes, City CommissionSPEC MINUTES OF THE SPECIAL MEETING OF THE CITY COMMISSION BOZEMAN, MONTANA November 29, 2004 ***************************** The Commission of the City of Bozeman met in special session in the Commission Room, Municipal Building, on Monday, November 29,2004, at 7:00 p.m. Present were Mayor Andrew Cetraro, Commissioner Jeff Krauss, Commissioner Marcia Youngman, Commissioner Steve Kirchhoff, Commissioner Lee Hietala, City Manager Chris Kukulski, Assistant City Manager Ron Brey, Director of Public Service Debbie Arkell, Planning Director Andy Epple, Acting City Attorney Tim Cooper, and Deputy Clerk of the Commission Karen DeLathower. The meeting was opened with the Pledge of Allegiance and a moment of silence. Sianina of Notice of SDecial Meetina Each of the Commissioners, in turn, signed the notice of special meeting. Consent Items City Manager Kukulski presented to the Commission the following Consent Items: Claims It was moved by Commissioner Krauss, seconded by Commissioner Youngman, that the Commission approve the Consent Items as listed and authorize and direct the appropriate persons to complete the necessary actions. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Krauss, Commissioner Youngman, Commissioner Kirchhoff, Commissioner Hietala, and Mayor Cetraro; those voting No, none. Public comment No comment was received under this agenda item. Presentation from Library Board of Directors Included in the Commission packets was a memo from Library Director Meister outlining the proposed financing of the new Bozeman Public Library. Distributed just prior to the meeting was an e-mail message from Alexandra Phillips urging the Commission to vote yes for the bridge financing for the new public library. Alan Kesselheim, 415 East Olive, Library Board of Trustees, provided an overview of the library's decade of progress and collaboration leading to the construction of the new facility. They have studied the need for a new facility, explored options for the kind of library system desired, researched possible sites, conducted a successful bond election, purchased and cleaned up the Main Street location, pursued a capital campaign which has recently passed the $4 million milestone, engaged an architect to design the building, and they are now poised to break ground this spring. However, they need to continue the partnership with the City to finally succeed. The Trustees envision that when this library is built, it will stand as a civic statement on the east end of one of the truly thriving Main Streets in Montana. Ron Farmer, 3030 Prairie Smoke Road, Chair of the Library Board of Trustees, presented an overview ofthe financial picture, including costs and funding sources. Expenditures to date total $4,506,760 and include the main expenses of acquisition of the property, remediation costs, architectural fees, and bond issuance. Primary sources of funding include the bond issue, capital campaign, private donations, 11-29-04 -- -- - - - -- -- .-.--. ..------.-....- - 2 - federal grants, sale of the building, County contribution, NorthWestern Energy grant, federal appropriation, parkland reimbursement, and the sale of additional land on the site. Mr. Farmer noted cash in the bank and committed funds total $9,837,000. There is $1.1 million committed if construction commences by spring, 2005; and building costs will continue to increase if construction is not undertaken in the spring. Therefore, they are requesting bridge financing for 2005 of $1,939,250, a maximum of $3 million in 2006, and $2.5 million in 2007. This financing will be repaid by additional fund raising; and if a balance remains, they will seek authorization for an additional bond issue. If that bond issue fails, the library will impair its levy by reducing its budget by $200,000 over the next 20 years to ensure repayment of the loan. Mr. Farmer stated former Director of Finance Gamradt has assured the Board of Trustees that this is a reasonable approach to bridge financing. However, if the City is unable to fund these amounts, or is uncomfortable doing so, other sources of bridge financing may be available. In response to inquires from Commissioner Krauss, Mr. Farmer stated the library is willing to make the commitment to a $200,000 per year reduction in its operating budget for the next 20 years and suffer the consequences. Staff and the Trustees do not believe they will be that severely impacted because they believe they will receive more donations and grants. Mr. Farmer admitted a project contingency of $200,000 is not huge, but it is another risk the library is willing to take. Responding to Commissioner Hietala, Mr. Farmer stated the Library Foundation has committed to trying to raise another $500,000. They have not yet begun the public campaign; all donations received thus far have been through private pledges and sources. If another bond issue is proposed, it will probably occur in 2007, after all other sources offunding have been exhausted. Originally the Trustees preferred to retain all the additional land as open space, but now they are agreeable to selling whatever portion they need to in order to fund the bridge financing. Former Director of Finance Gamradt pointed out the City's general fund balance is $3 million in its entirety, and the general fund is the only truly unrestricted money the City has. If all three repayment options materialize, there won't be any lasting adverse effect on the City's general fund. If the City grants the bridge financing, there will be a risk of decreasing other City services in order to pay for the library. Kaaren Jacobsen, 1110 South Third Avenue, stated she hopes the Commission approves the bridge financing because the longer it waits, the more expensive this library becomes. The community has made its support known in many ways. It is in the long-term interest of the community to capitalize on the library's size now, so the size should not be reduced. The City needs to honor the donors and trust that those who have been pledging will make good on their pledges. Brian Close, 406 East Olive Street, pointed out the delay in the County jail construction has increased the cost significantly. The need for this town to have a new library is evident, and any delays will have a cost. He suggested another library bond issue be placed on the ballot before 2007 to take advantage of low interest rates. Bruce Morton, Dean of Libraries at Montana State University, noted Bozeman is fortunate to have a public library that is so appreciated and heavily used by its residents. It is difficult to think of any other investment that will have a greater impact on a broad spectrum of residents than the library. He urged the Commission to support the requested financing. John Gallagher, 602 South 8 Avenue, Friends of the Library, stated what makes this city liveable and great is its visionary citizens, who create institutions supported by quality infrastructures like this library. He asked the Commission to support the bridge financing proposal because it will allow this library to be built. Tom Henley, 6053 Monforton School Road, encouraged the Commission to support the bridge loan. The public has stated it wants a new library; but without the requested bridge financing, it will have to be much smaller. Since 2001 the library has gone from 1000 patrons per day to 1400 per day, and it is projected that growth will continue for the next 10 to 12 years. Holly Brown, Library Board of Trustees, clarified the Board chose the size of the library they did based on financial considerations. Site costs remain the same no matter the size of the building constructed, and the scale they chose is the best deal financially. Ms. Brown then suggested the additional parcels be sold to the City, and then the City Commission can make the determination if they should be sold for debt service. 11-29-04 ---------- ....----.-.. - 3 - Brenda Davis, 85 Limestone Meadows Lane, advised the Commission that the Bozeman Library has the highest per capita circulation rate of any large library in the state. The meeting room is booked weeks in advance, and nearly every computer slot is full nearly every day. Additional computers, books, and books on tape are needed, but there is no place to house those collections. The new library promises to be not only a library, but also a community activity center, which will be the key to East Main Street's revival. Federal funding of just over $500,000 has been received to date, and legislative representatives are committed to trying to find future grants, as well. She asked for Commission support of this proposal because the positives for breaking ground this spring greatly outweigh the negatives. Commissioner Krauss stated that if this project is to be a top priority, that fact needs to be communicated to the legislative delegates so the library floats up to the top of the funding lists. He indicated he is not supportive of the City buying and selling the additional parcels of land; however, the sale of those parcels is an important piece of the library funding. Additionally, he requires the library to pledge its levy to repay the loan over 20 years if he is to support the bridge financing. Commissioner Hietala said he has mixed feelings, but he will support the bridge financing because he is interested in seeing this project continue with its momentum. Mayor Cetraro agreed there is a risk to the City; and the bridge financing will restrict the general fund, using up all discretionary monies. The additional parcels of land need to be sold to recoup some of the money, and the library's pledged levy is an important consideration for him. Former Director of Finance Gamradt noted there is no library levy; the library receives its monies from the general fund. He suggested the Commission not include a specific amount for reducing the library's budget each year, but rather calculate the amount by what the deficit actually is, at five percent interest, over 20 years. Commissioner Kirchhoff said he is glad the parties are working together to help this project move forward. The voters have spoken, and he would prefer to not ask them to speak again. While there are risks, he believes this will work; and he is impressed by the great support for this project from the very beginning. Commissioner Youngman acknowledged there are other bond issues that need to also be put on the ballot, and all other options need to be explored so the library isn't crippled by repayment of the bridge financing. City Manager Kukulski emphasized the repayment options as ranked by Mr. Farmer, which are additional fund raising, bond issue, and reduction in the library's budget for the next 20 years. He reminded the Commissioners that there won't be any discretionary capital projects undertaken in this city until this loan is paid back. While he encourages the Commission to be supportive of this project, he wants to ensure that the Commissioners are dealing with the reality of the worst case scenario. Commissioner Krauss said the Commission is "betting the ranch" by approving the bridge financing; and while he supports the library, there must be a repayment plan in place in order to be responsible to the general fund and the City's obligations. It was moved by Commissioner Youngman, seconded by Commissioner Kirchhoff, that the Commission approve the Library Board of Trustees' bridge financing proposal and repayment plan as presented in Attachment 1, Bozeman Public Library New Building Campaign, and Attachment 2, Bozeman Public Library New Building Campaign Cash Flow Projection dated November 29, 2004, including a reduction in library funding over the next 20 years to ensure repayment of the loan. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Youngman, Commissioner Kirchhoff, Commissioner Hietala, Commissioner Krauss, and Mayor Cetraro; those voting No, none. It was then moved by Commissioner Youngman, seconded by Commissioner Kirchhoff, to direct staff to expedite the necessary City review processes in order to allow the library to move forward with groundbreaking in the spring of 2005; a timeline the City Commission supports. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Youngman, Commissioner Kirchhoff, Commissioner Hietala, Commissioner Krauss, and Mayor Cetraro; those voting No, none. 11-29-04 --------- -.".---- ..-- .-.. .-.- ---..----.-----..-. -4- The Commission directed staff to explore funding sources, including the use of developer contributions in lieu of parkland, to offset the $250,000 expense of purchasing parkland from the library. Discussion - FYI Items The following "For Your Information" items were forwarded to the Commission. (1 ) Copy of the Notice of Passage of Resolution of Intention to create SID No. 683 that was sent to all city residents in the district. (2) Copy of the notice from Neighborhood Coordinator Oulman announcing a neighborhood meeting, to be held December 9th at 7 pm, regarding the creation of SID 683 that was also sent to all city residents in the district. (3) Copy of a letter from Director of Public Service Arkell to Lillian Yerger in response to her concerns that SID 683 will increase taxes and that residents will be forced to pay impact fees. (4) Copy of a letter to the City Commission from Neighborhood Coordinator Oulman asking the Commission to discuss and agree upon a pUblic process for any decisions made regarding the possible reintroduction of hockey at the Bogert pavilion. (5) Copy of an invitation to the Inter-Neighborhood Council's Holiday Social to be held at the Lehrkind Mansion on Tuesday, December 14th, at 6:30 pm. (6) Agenda for the Development Review Committee meeting to be held at 10:00 am on Wednesday, December 1, at the Professional Building. (7) Agenda for the Gallatin County Commission meeting to be held on Tuesday, November 30th, at 9:00 am at the County Courthouse Community Room. (8) Copy of the City Commission Meeting List, November 23rd update, as prepared by Planning staff. (9) Copy of the minutes of the Board of Health meeting held on October 28th. (10) Copy of a letter from Harry Kirschenbaum, President of the Northwest Neighborhood Network, requesting the Commission postpone the public hearing on SID 683 until after the 10th of January, 2005. (11 ) Copy of material submitted by Russ Squire, Principal, Montana Capital Resources, regarding buildable land issues on the library property. During his FYI, City Manager Kukulski offered the following: 1) There will be a neighborhood meeting for the West Babcock SID on December 9th at 7:00 pm in the Courthouse Community Room. Commissioners Kirchhoff and Krauss agreed to attend. 2) Asked if the Commissioners were agreeable to send the prepared letter to Clinton Cain. All Commissioners agreed to have City Manager Kukulski mail the letter to Mr. Cain. 3) Distributed copies of the draft goal statements ranking compilation. Assistant City Manager Brey, during his FYI, noted the neighbors of Bogart Park are aware the Commission has received a request to reconsider allowing ice hockey in the Bogart pavilion. He asked if the Commission would prefer to have this item brought before them before or after the Recreation and Parks Advisory Board has made its recommendation. The Commissioners agreed they would prefer to place this item on the agenda after the December 9th Recreation and Parks Advisory Board's regular meeting. Assistant City Manager Brey indicated this item will be placed on the December 20th agenda. During his FYI, Planning Director Epple noted: 1) Valley West Subdivision is ready to undertake phase 3, but there is a conflict with the current code that did not exist with the previous code. That being block lengths in excess of 600 feet. Staff is recommending they request a deviation from this restriction. Based on discussion, staff will communicate to the developers that the Commission is willing to support the deviation to allow longer block lengths. 2) Planning staff will be holding its annual retreat on Thursday. 11-29-04 - 5 - Director of Public Service Arkell, during her FYI, asked if there is a Commission response to Mr. Kirschenbaum's letter of November 28th. Mayor Cetraro responded there is no comment from the Commission. During his FYI, Commissioner Krauss offered the following items: 1) Asked if the traffic circle on Baxter Lane has been removed. Director of Public Service Arkell stated the circle has been fixed by Simes Construction since it wasn't built to design. Large farm trucks can navigate the circle, but it has not been redesigned to accommodate tractors. 2) He received an e-mail from Doug Chandler, Allied Engineering, regarding acquiring Ed Adamson's property on the edge of East Gallatin Park. It doesn't look like that is going to happen because Mr. Adamson is asking for way more than the appraised value of the property. Commissioner Kirchhoff offered the following during his FYI: He has talked to City Manager Kukulski regarding setting up a meeting with representatives from the university, County Commissioners, Gallatin County Health and Human Services, Sheriff's Department, City Public Safety staff, and City Commissioners to discuss holding a community building event, which will be a better response to the National Alliance than a letter or resolution. Adiournment - 9:06 D.m. There being no further business to come before the Commission at this time, it was moved by Commissioner Kirchhoff, seconded by Commissioner Hietala, that the meeting be adjourned. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Kirchhoff, Commissioner Hietala, Commissioner Krauss, Commissioner Youngman, Mayor Cetraro; those voting No, none. ATTEST: ~-~~ Clerk of the Commission PREPARED BY: ~~~~ QhH_d REN L. DeLA THOW Deputy Clerk of the Commission 11-29-04