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HomeMy WebLinkAbout2004-09-07 Minutes, City Commission, WORK .....-- ..----.-- ---.--.-.- MINUTES OF THE MEETING OF THE CITY COMMISSION BOZEMAN, MONTANA September 7,2004 ***************************** The Commission of the City of Bozeman met in work session in the Commission Room, Municipal Building, on Tuesday, September 7, 2004, at 5:30 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, Acting City Attorney Tim Cooper and Clerk of the Commission Robin Sullivan. The meeting was opened with the Pledge of Allegiance and a moment of silence. Public comment No comment was received under this agenda item. Work Session Items Update from the Library Board of Trustees and Foundation Board on status of new library Included in the Commissioners' packets was information provided by both Director of Finance Miral Gamradt and the Library Board of Trustees. Mr. Jerry Bancroft, Chair of the Building Committee, gave a brief overview of this project, including the identified project objectives and the accomplishments to date. He reminded the Commission that the $4 million bond issue for the new library project was endorsed by 64 percent of the voters; and those monies were used to acquire and remediate a site on East Main Street that had been an eyesore and a contaminated site for over twenty years. The bids for the new library were opened earlier this summer and came in well over the estimate; efforts are now underway to decrease the size of the building and identify other cuts that can be made to lower the costs without impacting the durability, functionality and design of the building. It is the hope that the project can be once again bid in January 2005, with groundbreaking in April 2005 and move in the Fall 2006. Mr. Bancroft forwarded the issues for discussion at this time, which include covering the shortfall in revenues and providing for bridge financing. He noted that bridge financing would be in place during construction and during the period when pledges would be paid and federal funding received, which extends through 2008. That financing would be secured by sale of the existing building and pledges in hand. The shortfall is the amount of monies not raised through the various listed sources, and is estimated at $400,000 at the present time. He also asked if the City would be willing to enter into an agreement with the Library Board of Trustees on both of those issues and whether it would be willing to consider options for decreasing the costs of the library, through use of City crews to install the irrigation system and landscaping and a possible exchange for use of a portion of the site for a parking lot for Peet's Hill. Mr. Bancroft indicated that the Board plans to move forward with the library project because of the timeframes involved, while it awaits answers from the Commission on these various issues. In response to questions from the Commissioners, Ms. Jacki McGuire, Treasurer for the Library Foundation, stated that the Foundation has $925,000 in hand and anticipates that a $500,000 pledge will be received before the end of the calendar year. She noted that, since the City is currently carrying a $156,000 deficit in the library construction fund, if the Foundation were to turn the monies in hand over to the City, the net cash available would be $769,000. She stated that the Foundation has actually collected over $1 million; however, a portion of those monies have been expended for operating expenses to raise those monies. She then indicated that the $1.9 million in pledges is outstanding, and projected that those pledges are good and that the monies will be received by the times they are pledged, if not sooner. 09-07 -04 work - 2 - Mr. Bancroft noted that $13 million is required for completion of this library project and, at this time, the Board is certain of $11 million in funding. While this type of project would be funded through the issuance of bonds in many communities, this library has committed to raising $7 million and, to date, has raised $5 million. Responding to Commissioner Youngman, Mr. Bancroft asked that the Commission provide answers to the questions he had raised within the next month to six weeks. In the meantime, he noted that the new library design will be unveiled at a meeting scheduled for October 16 and the other processes will continue in anticipation of a January or February bidding. Commissioner Krauss asked for a chart showing the projected cash flows, noting it is difficult to start an $812 million project with $1 to $2 million in hand. Responding to Commissioner Krauss, Director of Finance Miral Gamradt stated the City has approximately $3 million in general fund reserves. If the Commission chooses to provide the bridge financing and to cover the shortfall, the library construction fund would be allowed to go into a negative cash position, and monies would be drawn from the City's pool of cash to cover the costs. He then confirmed that the major source of the cash pool is impact fees, which are currently in litigation. He noted that when a fund goes into a negative cash position, it is charged an interest rate based on the current interest rate for the cash pool. Commissioner Krauss observed that he can identify $4.4 million in costs that remain to be covered, which far exceeds the entire general fund reserve. Library Director Alice Meister noted that the $667,000 commitment from the County is to be paid during this fiscal year. City Manager Kukulski encouraged the Commission to make a decision as quickly as possible, rather than leaving the Library Board of Trustees hanging. Responding to Commissioner Kirchhoff, Commissioner Krauss indicated that a portion of the $4.4 million he has identified as costs remaining to be covered can be recovered from sale of the existing building. He noted that this involves a timing factor, since he does not anticipate that building will be sold before the library is moved; that is one of the reasons he has requested an analysis of the cash flow. Commissioner Kirchhoff stated that, as a supporter of the library and one who wishes to see this project move forward, he is not comfortable with the significant gap in financing and views it as prohibitive. He is concerned that, if the City steps forward to bridge that gap, further fundraising will be less successful and the City will, indeed, bear all of the shortfall costs. Mr. Bancroft responded this is an issue with which the Board has also grappled, and several members feel that people would be more willing to step forward and contribute if they were assured this is indeed a viable project. Commissioner Youngman noted that only a targeted fundraising campaign has transpired to date; the general community campaign traditionally does not start until the groundbreaking. She suggested that the Commission consider ways to leverage the City's participation through a match program in conjunction with the bridge financing. Commissioner Krauss stated the taxpayers have already committed $4 million toward this project, noting he would hope that is adequate to convince donors that this is a serious project. Given the amount of the remaining shortfall, he suggested that going to the taxpayers with another bond issue for $2 or $3 million would be preferable to betting all of the City's discretionary funds. Commissioner Youngman responded by cautioning that such a step would delay the project for an additional year, during which time it would continue to incur costs. City Manager Kukulski recognized the Commission's caution and concerns, and stressed the importance of recognizing that the project's success or failure will be for the City, not the library. 09-07 -04 work .______n_..... - 3 - Responding to Commissioner Youngman, Commissioner Krauss stated that a lot offundraisers want to see two-thirds of the money raised before going to the public phase, and this project is behind the curve on that formula. He feels this project is currently $2 million away from viable bridge financing by the City. Commissioner Hietala stated he feels this project is $11f2 to $2 million shy of bridge financing, and suggested that selling 70,000 bricks at $20 each would help cover that shortfall. He suggested one option might be to trim $1 million from the project costs. Mr. Bancroft thanked the Commissioners for this discussion, noting it provides a basis from which the Board may continue. Establish process for selection of Municipal Judge, effective November 1, 2004/salary Included in the Commissioners' packet was a memo from Clerk of the Commission Sullivan forwarding a copy of the section of the Bozeman Municipal Code pertaining to the municipal court. City Manager Chris Kukulski reminded the Commissioners that the current Municipal Judge has submitted her resignation, effective October 31,2004; and the City Commission is responsible for filling the vacancy for the remainder of the term, which is slightly over three years. The Commissioners agreed that the position should be advertised locally, with closing no later than the end of the month. Commissioner Youngman suggested that, in addition to resumes, the Commission require applicants to respond to a few questions, similar to the process used in the recent City Manager selection process. She suggested that those questions may address the issues of experience in revenue oversight, experience in serving as an administrator and supervising staff, judicial philosophy, how one might approach certain types of violations, and specifics on how one would approach providing administrative efficiency and cost effectiveness in the operation of the court. Commissioner Krauss suggested a more general question about how one would address public safety issues. He also expressed interest in finding out whether an applicant would anticipate a career outside the municipal judge position and how many hours would be spent in the judge position on a daily or weekly basis. City Manager Kukulski noted this is an elected position, and this appointment process provides a rare opportunity to find out about an applicant's philosophy and expectations prior to serving in this capacity. Commissioner Youngman stressed that the Commissioners have little knowledge of the operational details of the municipal court and suggested that input be sought from those who deal closely with it, to ensure that the interview questions provide the needed information to make a good decision. Commissioner Kirchhoff suggested a standard application process, with letters of recommendation accompanying the applications, and a formal public interview be used. He expressed wariness about expert opinions, since it is often difficult to filter out the views and biases that accompany them. He also proposed that the Commissioners call others who may have worked with the applicants, similar to the process used when selecting the City Manager. The City Manager asked the Commissioners if they wish to serve as the search committee or if they wish to select others to assist; the Commissioners chose to conduct the process themselves, filtering any input from others as they prepare the interview questions. City Manager Kukulski asked if the Commissioners want staff to layout a process, based on this discussion, for consideration at next week's meeting; the Commissioners voiced their support. In the meantime, they asked that advertising for the position begin. 09-07 -04 work . ..-"..--"..-..-.-...-.----.----.-......-.-- ---.....-- --- - 4 - Process for setting of goals for upcoming fiscal year Included in the Commissioners' packets was a memo from Assistant City Manager Ron Brey submitting a draft outline for setting of goals. Commissioner Krauss stated he has not yet conceded that goals cannot be set for this current fiscal year. He expressed an interest in brainstorming on goals in a work session setting, identifying costs and then voting on them. He voiced his interest in proceeding as quickly as possible, noting this is a process that has been on hold since the previous City Manager left. City Manager Kukulski asked if the Commissioners are looking for very specific goals or more philosophical or general goals that shape the direction of the overall organization. Commissioner Kirchhoff voiced support for doing every kind of goal setting, from the mission statement of the City to strategic planning to concrete, specific goals. He noted that his biggest frustration as an elected official is that the City never conveys its purposes to those living inside the city; rather, it appears as a series of random acts, often based on news coverage. He recognized that Bozeman is a successful city, based on activity and not on underlying philosophies and actions. The City Manager noted that the setting of goals would assist him and his staff in being successful. He recognized the reality is that the City is in a reactionary mode because it is growing so fast; however, it is important to identify what the City as a whole wishes to accomplish and then move in that direction. Commissioner Kirchhoff cited the transfer station as an example, suggesting the City should consider alternatives to "making trash, digging a hole, and burying the trash", which is rather primitive. He proposed that the City consider being more progressive, with a goal being to decrease the amount of solid waste generated. City Manager Kukulski suggested that the Commission and staff meet, taking a defined amount of time to throw out ideas, ranging from philosophical to specific. Staff could then take a week or two to compile that information, combining those ideas that are identical or the same, and bring that information back for further discussion. He also noted that he would like to know if the Commission supports the vision and mission statement or if it needs to be redefined in a joint effort involving the Commission and staff. Commissioner Krauss noted the City has $450,000 in monies from big box fees that has been earmarked for economic development and expressed his interest in determining how the City wants to develop economically, including identifying its assets and deficiencies. He noted that he has previously voiced interest in developing the Brownfield area and in pursuing advanced technology ideas; and he is also interested in more "nuts and bolts" items, like seeing the parks, recreation, open space and trails plan updated, the entryway corridor plan updated, a tax increment financing district for the North 7th Avenue! Main Street corridor created, and a facilities plan for the City developed. Commissioner Youngman noted the City has a five-year capital improvement program in place, and that program can help provide continuity even as Commissions and philosophies change. City Manager Kukulski stressed the importance of getting a sense of direction from the Commission as early as possible, but recognized this will be an ongoing process. He also acknowledged that this first step will include everything from the big picture to specifics, while future processes may be narrower in focus. Review of new agenda format and future Commission meeting schedule City Manager Chris Kukulski suggested that, in light of the late hour, this discussion be delayed until next week's meeting. Adjournment - 6:50 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 09-07 -04 work ---..---- .....-.. - 5 - carried by the following Aye and No vote: those voting Aye bei g Commissioner Kirchhoff, Commissioner Hietala, Commissioner Krauss, Commissioner Youngm a Mayor Cetraro; those voting No, none. A ATTEST: ~i2~~ Clerk of the Commission 09-07 -04 work ._.._.u_...__....._