Loading...
HomeMy WebLinkAbout2004-06-21 Minutes, City Commission MINUTES OF THE MEETING OF THE CITY COMMISSION BOZEMAN, MONTANA June 21,2004 ***************************** The Commission of the City of Bozeman met in regular session in the Commission Room, Municipal Building, on Monday, June 21,2004, at 6:00 p.m. Present were Mayor Andrew Cetraro, Commissioner Jeff Krauss, Commissioner Marcia Youngman, Commissioner Steve Kirchhoff, Commissioner Lee Hietala, Acting City Manager Ron Brey, Director of Public Service Debbie Arkell, Planning Director Andy Epple, City Attorney Paul Luwe and Clerk of the Commission Robin Sullivan. Executive session re litiaation At 6:00 p.m., Mayor Cetraro announced that, pursuant to Section 2-3-203(4)(a), Montana Code Annotated, and the Montana Supreme Court rulings, he, as presiding officer, has determined that the discussion of strategy to be followed with respect to litigation in open meeting would have a detrimental effect on the litigating position of the City. He then called an executive session for the purpose of discussing litigation strategy and requested that all persons except the Commissioners, Acting City Manager, City Attorney, Staff Attorney Cooper, Attorney Bob Planalp and the Clerk leave the room. At 7:00 p.m., Mayor Cetraro closed the executive session and reconvened the open meeting. Break - 7:00 to 7:10 D.m. Mayor Cetraro declared a break from 7:00 p.m. to 7:10p.m., to give the Commission an opportunity to prepare for the formal meeting. Call to Order. Pledae of Allegiance and Moment of Silence The meeting was opened with the Pledge of Allegiance and a moment of silence. Minutes - ADri119. ADril26. Mav 3. May 17. May 24. June 7. June 9 Stueck. June 9 Johnson. June 10. June 10 mixer. June 11 Hales. June 11 Kukulski. June 11. and June 14. 2004 It was moved by Commissioner Krauss, seconded by Commissioner Youngman, that the minutes of the meetings of April 19, June 10, June 10 mixer and June 11, 2004, be approved as submitted. 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. Mayor Cetraro deferred action on the minutes of the meetings of April 26, May 3, May 17, May 24, June 7, June 9 Stueck, June 9 Johnson, June 11 Hales, June 11 Kukulski, and June 14, 2004, to a later date. Consent Items Acting City Manager Brey presented to the Commission the following Consent Items. Commission Resolution No. 3693 - certifying delinauent assessments as of Mav 31. 2004. to the County 06-21-2004 - 2 - COMMISSION RESOLUTION NO. 3693 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, DECLARING SEMI-ANNUAL SPECIAL ASSESSMENT INSTALLMENTS DUE AND PAYABLE MAY 31, 2004, AND UNPAID AS OF 5:00 P.M. ON JUNE 1, 2004, DELINQUENT, PURSUANT TO SECTION 7-12-4183, MONTANA CODE ANNOTATED, AND AS PROVIDED BY CHAPTERS 2.32 AND 3.04 OF THE BOZEMAN MUNICIPAL CODE, AND DIRECTING THE DIRECTOR OF FINANCE TO CERTIFY THE SAME TO THE GALLATIN COUNTY TREASURER FOR COLLECTION. Authorize Acting City Manaaer to sian - AcceDtance of Sewer and Water PiDeline and Access Easement and Aareement - Mike CooDer - easement aenerally 30 feet in width across Lot 1. Block 5. Cattail Creek Subdivision. Phase I (lot IYina at southwest corner of intersection of North 27th Avenue and Warbler Way) Authorize Actina City Manager to sign - AcceDtance of Public Access and Utility Easement and Aareement - Ebbiahausen Homes. Inc. - easements varying between 10 and 20 feet wide across Lot 1. Block 5. Laurel Glen Subdivision. Phase I (extendina north from Glenwood Drive) Buildina InsDection Division report for May 2004 Claims It was moved by Commissioner Youngman, seconded by Commissioner Kirchhoff, 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 Youngman, Commissioner Kirchhoff, Commissioner Hietala, Commissioner Krauss and Mayor Cetraro; those voting No, none. Authorize Actina City Manager to sian -Interlocal Aareement with the Town of Manhattan for buildina insDection services Acting City Manager Brey noted that this item had been listed on the Consent Agenda, but was not included in the previous motion. He then recommended that, in light of questions raised by one of the Commissioners, action on this agreement be delayed for one week. It was moved by Commissioner Kirchhoff, seconded by Commissioner Hietala, that action on this item be delayed for a period of one week. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Kirchhoff, Commissioner Hietala, Commissioner Krauss, Commissioner Youngman and Mayor Cetraro; those voting No, none. Public comment Mr. Brian Close, 406 East Olive Street, informed the Commissioners that the transit contract is moving forward, with the contractors being in Bozeman this week for a series of public meetings. He indicated that a general meeting to review the contract work is also scheduled for 8:00 a.m. on Friday in the County Commission Room, and encouraged all interested Commissioners to attend. Mr. Close then acknowledged the assistance that Director of Public Service Debbie Arkell and Acting City Manager Ron Brey provided in addressing scheduling conflicts with the Farmers' Market at Bogert Park, thanking them for their cooperation and efforts. 06-21-2004 ----------- - 3 - Ratify Actina City Manager's signature on Professional Services Aareement for Transportation Research Services. Western Transportation Institute Included in the Commissioners' packets was a memo from Associate Planner Chris Saunders, dated June 17, forwarding "Attachment A" to the Professional Services Agreement, which was inadvertently omitted from last week's packet. Also included in the packets was a copy of the agreement. Acting City Manager Brey reminded the Commissioners that this item was removed from the Consent Items at last week's meeting. Planning Director Andy Epple noted a written report is the main deliverable that will be realized from this agreement. An engineering student is conducting the survey under the guidance of a transportation engineer with the Western Transportation Institute, and the conclusions in the report should include information on existing parking and an analysis of whether there is too much, too little or just the right amount. He then stated that the City of Bozeman is the lead community on this project; however, it involves four cities and the others are to reimburse Bozeman for their portions of the costs, leaving the City with $1,250 of the total $5,000 cost. It was moved by Commissioner Hietala, seconded by Commissioner Krauss, that the Commission ratify the Acting City Manager's signature on the Professional Services Agreement with the Western Transportation Institute for transportation research services. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Hietala, Commissioner Krauss, Commissioner Youngman, Commissioner Kirchhoff and Mayor Cetraro; those voting No, none. Commission Resolution No. 3695 . creating SID No. 676. improvements to Valley Center Road from North 19th Avenue to iust west of North 27th Avenue Included in the Commissioners' packets was a copy of Commission Resolution No. 3695, entitled: COMMISSION RESOLUTION NO. 3695 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, RELATING TO SPECIAL IMPROVEMENT DISTRICT NO. 676; CREATING THE DISTRICT FOR THE PURPOSE OF UNDERTAKING CERTAIN lOCAL IMPROVEMENTS AND FINANCING THE COSTS THEREOF AND INCIDENTAL THERETO THROUGH THE ISSUANCE OF SPECIAL IMPROVEMENT DISTRICT BONDS SECURED BY THE CITY'S SPECIAL IMPROVEMENT DISTRICT REVOLVING FUND AND ESTABLISHING COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS UNDER THE INTERNAL REVENUE CODE. Acting City Manager Brey reminded the Commission that this and the next three agenda items are tied together, and the same action is recommended to be taken on all four items. He noted that these resolutions would typically appear on the Consent Agenda but, given the concerns revolving around these projects, staff has listed them as individual line items. He noted that the reimbursement resolution for these projects has been adopted, the resolutions of intent to create the districts have been adopted, and the public hearings have been held. There were not adequate protests to stop any of the districts; and these resolutions of creation are now before the Commission for consideration. Mr. David Smith, President of the Bozeman Area Chamber of Commerce, asked how the professional engineering fees are calculated, noting that those fees for the proposed Baxter Lane special improvement district are 14 percent of the estimated cost. City Engineer Rick Hixson responded that this project has been designed as a whole, even though it is separated into four districts; and the design fees are 6.9 percent of the total project cost. He noted that the average median cost for engineering costs is 6.4 percent and, given the complexity of this project, he finds the 6.9 percent to be reasonable. He then stated the 14-percent figure quoted for the Baxter Lane project is the result of a negotiated fee between a private individual and the consultant he retained, and does not reflect the type of percentage typically negotiated by the City. He then indicated that the engineering fees for construction inspection are a percentage of the estimated costs, and stressed that monies spent on those inspections are the best monies spent on a project. 06-21-2004 ----.--....-...... -4- Commissioner Krauss stated that when the decision was initially made to proceed with design of these special improvement districts, it was the Commission's intent to use impact fees to ameliorate the costs of fixing the serious safety problems that accompany additional development along North 19th A venue and Valley Center Road. The Commission has since decided not to use impact fees to buy down the costs of the improvements, and he finds that, particularly for this district, the assessment costs exceed the benefit to the properties. As a result, he cannot support adoption of these resolutions of creation. Commissioner Kirchhoff reminded the Commissioners that they recently approved a request from Harvest Creek Subdivision to allow development of additional phases to proceed without improvements to Durston Road because it was found the westward extension of West Oak Street had alleviated some of the impacts on Durston Road. He cautioned that similar requests could be made for development along North 19th Avenue and Valley Center Road; and the conditions limiting development along those roadways have been attached by both the City and the Montana Department of Transportation. Commissioner Krauss acknowledged that potential. He then noted that the process of creating these districts has moved forward on a bare majority vote on each of the last two steps, and he cannot support taking the next step. He stated that if the Commission fails to adopt these resolutions, it could have the effect of a moratorium on further development in this area until impact fees can be used to write down the costs. Commissioner Hietala expressed concurrence with Commissioner Krauss's position, stating he believes the effect of this may provide an opportunity to try to get resolution to the impact fee issue, so they can be used and restore fairness to the process. Commissioner Youngman cautioned that not adopting these resolutions will inhibit development for a minimum of one year, noting that if that is the wish of a majority of the Commissioners, "so be it". She noted it is expensive to develop in a community without impact fees, and she believes these special improvement districts would provide a financing alternative that makes the costs of improvements more palatable. She then indicated that, while she generally supports the message being communicated, she feels that creating these districts is the most appropriate manner of doing so. Commissioner Kirchhoff suggested that the roadway as it exists is better for a majority of the users, who are commuters into and out of the community. He noted that the "improvements" to be installed under these resolutions will actually result in a decline in service to those commuters because additional development will result in additional traffic and more traffic maneuvers. Commissioner Krauss acknowledged that is particularly true on Valley Center Road. He characterized development on North 19th Avenue as an exigent safety issue right now, particularly on that portion north of Baxter Lane, where it necks down to a three-lane facility. He concluded by stating that equity remains the one outstanding issue for him. Commissioner Kirchhoff noted the City has already paid approximately $400,000 in design fees for this project. Mayor Cetraro voiced his concurrence with Commissioner Krauss's comments. It was moved by Commissioner Krauss, seconded by Commissioner Kirchhoff, that Commission Resolution No. 3695, creating SID No. 676, improvements to Valley Center Road from North 19th Avenue to just west of North 27th Avenue, not be adopted. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Krauss, Commissioner Kirchhoff, Commissioner Hietala and Mayor Cetraro; those voting No being Commissioner Youngman. Commission Resolution No. 3694 - creating SID No. 675. improvements to North 19th Avenue from Baxter Lane to Vallev Center Road Included in the Commissioners' packets was a copy of Commission Resolution No. 3694, entitled: 06-21-2004 - 5 - COMMISSION RESOLUTION NO. 3694 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, RELATING TO SPECIAL IMPROVEMENT DISTRICT NO. 675; CREATING THE DISTRICT FOR THE PURPOSE OF UNDERTAKING CERTAIN LOCAL IMPROVEMENTS AND FINANCING THE COSTS THEREOF AND INCIDENTAL THERETO THROUGH THE ISSUANCE OF SPECIAL IMPROVEMENT DISTRICT BONDS SECURED BY THE CITY'S SPECIAL IMPROVEMENT DISTRICT REVOLVING FUND AND ESTABLISHING COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS UNDER THE INTERNAL REVENUE CODE. In light of the Commission's action on the previous agenda item, Acting City Manager Brey recommended the Commission take the same action in this and the subsequent two agenda items. It was moved by Commissioner Youngman, seconded by Commissioner Kirchhoff, that Commission Resolution No. 3694, creating SID No. 675, improvements to North 19th Avenue from Baxter Lane to Valley Center Road, not be adopted. 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. Commission Resolution No. 3696 - creating SID No. 677. imDrovements to traffic sianal at intersection of North 19th Avenue and Vallev Center Road Included in the Commissioners' packets was a copy of Commission Resolution No. 3696, entitled: COMMISSION RESOLUTION NO. 3696 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, RELATING TO SPECIAL IMPROVEMENT DISTRICT NO. 677; CREATING THE DISTRICT FOR THE PURPOSE OF UNDERTAKING CERTAIN LOCAL IMPROVEMENTS AND FINANCING THE COSTS THEREOF AND INCIDENTAL THERETO THROUGH THE ISSUANCE OF SPECIAL IMPROVEMENT DISTRICT BONDS SECURED BY THE CITY'S SPECIAL IMPROVEMENT DISTRICT REVOLVING FUND AND ESTABLISHING COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS UNDER THE INTERNAL REVENUE CODE. It was moved by Commissioner Kirchhoff, seconded by Commissioner Hietala, that Commission Resolution No. 3696, creating SID No. 677, improvements to the traffic signal at the intersection of North 19th A venue and Valley Center Road, not be adopted. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Kirchhoff, Commissioner Hietala, Commissioner Krauss, Commissioner Youngman and Mayor Cetraro; those voting No, none. Commission Resolution No. 3697 - creating SID No. 678. installation of traffic sianal at intersection of North 19th Avenue and Cattail Street Included in the Commissioners' packets was a copy of Commission Resolution No. 3697, entitled: COMMISSION RESOLUTION NO. 3697 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, RELATING TO SPECIAL IMPROVEMENT DISTRICT NO. 678; CREATING THE DISTRICT FOR THE PURPOSE OF UNDERTAKING CERTAIN LOCAL IMPROVEMENTS AND FINANCING THE COSTS THEREOF AND INCIDENTAL THERETO THROUGH THE ISSUANCE OF SPECIAL IMPROVEMENT DISTRICT BONDS SECURED BY THE CITY'S SPECIAL IMPROVEMENT DISTRICT REVOLVING FUND AND ESTABLISHING COMPLIANCE WITH REIMBURSEMENT BOND REGULATIONS UNDER THE INTERNAL REVENUE CODE. 06-21-2004 . ..._.._ ._....._.____."..m....__._ _.. "._.______u.._ .-...----------.-- -.... --..--.---. ----.......--..- - 6 - It was moved by Commissioner Hietala, seconded by Commissioner Krauss, that Commission Resolution No. 3697, creating SID No. 678, installation of a traffic signal at the intersection of North 19th Avenue and Cattail Street, not be adopted. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Hietala, Commissioner Krauss, Commissioner Youngman, Commissioner Kirchhoff and Mayor Cetraro; those voting No, none. Informal review - DroDosal to annex 1.8 acres located at 780 Manlev Road for subdivision into five residential lots - Ed Adamson. Bozeman Buildina Traditions. for JoseDhine Nelson (immediatelv north of the East Gallatin Recreation Area) (1-04016) Included in the Commissioners' packets were a copy of the staff report and a letter from the Gallatin Conservation District, dated May 28. Distributed just prior to the meeting was a letter from the East Gallatin State Recreation Area Task Force, dated June 15. Planning Director Andy Epple presented the project on behalf of Assistant Planner Susan Kozub. He noted the subject 1.8-acre parcel is located immediately north of the East Gallatin Recreation Area. The applicant is proposing annexation of this property and subsequent subdivision into five lots for single-family residential development under the R-1 zoning designation. The Bozeman 2020 Community Plan designates the subject property as "parks, open space and recreational lands", largely due to input from the Recreation Department regarding possible expansion of the recreation area to include this property. He stressed that this land use designation does not impact the current single-family residence on the property but does impact the potential of subdividing and adding residential units. As a result, staff suggests the first step should be to seek a growth plan amendment and, if that is successful, then proceed to annexation, zoning and subdivision. The Planning Director gave a brief overview of the proposed development, which would include 7,500 to 11 ,500-square-foot residential lots served by a private 350-foot-long cul-de-sac street with a curb walk along one side only. He then indicated that the Recreation and Parks Advisory Board does not view this proposal favorably. The Planning Board reviewed the proposal at its June 1 meeting and, while a majority of the members stated they would like to see this parcel become part of the East Gallatin Recreation Area, they view that as unlikely to occur. Given their preference to see this property develop in the city, the members forwarded their recommendation to proceed with the application. The Planning Director then noted that the letter from Steve Hample, East Gallatin State Recreation Area Task Force, forwards that body's opposition to the development proposal and asks that this property be held in abeyance so that eventually some group can purchase it and convert it to park uses. Responding to Commissioner Youngman, Planning Director Epple indicated he does not know how many residences could be constructed on this site if it were to develop in the county, given the potential for high groundwater. . Mr. Ed Adamson, applicant, stated that his company has purchased the subject property from Mrs. Nelson, and he wants to develop it within city limits. It is his intent to construct five moderately-priced single- family houses on the property, which he believes is preferable to one large trophy home on the site. He then noted that the park currently covers 57 acres, and suggested that it is big enough without adding this tiny parcel. He voiced concern that the "parks, open space and recreational lands" land use designation has been assigned to this privately-owned property, and cautioned that such a designation could lead to thorny legal issues. Mr. Adamson drew attention to his track record of developing nice homes on lots within city limits, noting he has received historic preservation awards for his work in the past. He stressed that this property has historically been in a residential use, even before the gravel pit was dug, the lake created and the park area developed. He is now seeking to simply continue and extend that historic residential use. He noted it appears the City has no plans to purchase the subject property, or the funds with which to do so; and representatives from the Rotary Club have revealed plans to create a 40-unit subdivision around the lake, with the proceeds from sale of those units being used to fund improvements in the park. He then indicated that conversations with the adjacent property owner reveal he has no intention of selling his property. Mr. Adamson noted that there is on-going residential development in this area, including the Manley Farm across the road and Old Farm Road further to the north. There are also several other homes existing 06-21-2004 - -----.-- . --.... - 7 - in the area. He indicated that the proposed street is on the same alignment as the existing driveway and, therefore, will not impact access to the recreation area. Mr. Adamson then referenced the letter from Mr. Colter Seitz, Gallatin Conservation District, noting that the District does not claim jurisdiction over the outflow stream from the pond; however, he indicated that he plans to observe the streambank setbacks contained in the code. He questioned the need for a secondary access to the proposed development. He then noted that the Water/Sewer Superintendent has indicated connection to water and sewer services should be relatively easy to provide; and he is willing to provide easements through his property to extend those services to the edge of the recreation area. Responding to Commissioner Kirchhoff, Mr. Adamson stated that in-town residential lots are "rare or non-existent", so he worked with Mrs. Nelson to acquire this property. He believes it is preferable to develop this site within city limits, and this would allow the City to take advantage of the impact fees and tax revenues that would accompany development. Further responding to Commissioner Kirchhoff, Mr. Adamson stated the subject property is zoned "M-2" in the county, which would allow for less desirable development than what he is proposing. He indicated he would be amenable to a land swap for lots within city limits that would reflect a dollar-for-dollar exchange. He cautioned that, since he is now the owner of the ground, he is servicing a note and cannot afford to sit on it for an extended period of time. Responding to Mayor Cetraro, Planning Director Epple stated that if the growth plan amendment is successful, staff views that as a green light to proceed with the development proposal. Commissioner Krauss announced that, due to close ties and lengthy discussions with the former property owners over the past several years, he is unable to make an unbiased decision and, as a result abstained from discussion during the Planning Board meeting and will abstain from any discussion during this meeting. Commissioner Kirchhoff noted that this property has sold once and could easily sell again. He recognized the dream of adding this property to the recreation area; however, he does not believe that dream should deter the right of a property owner to develop his private property. As a result, he indicated a willingness to give favorable consideration to a growth policy amendment so development of the property can move forward. Commissioner Youngman indicated that, while she respects and likes the applicant's work, she cannot support the growth policy amendment. She noted that no effort has been made to work within the existing land use designation and, until that effort has been made, she cannot support the amendment process. Further, she observed that no fund-raising campaign has been mounted to acquire this property for an extension of the recreation area; and she is extremely concerned about impacts on this sensitive area and the purity of the lake. Further, she reviewed each of the four criteria against which growth policy amendments are weighed, indicating she feels this proposal meets none of those criteria at this time. Commissioner Hietala noted that several years ago, there were discussions about acquiring this property, but no action was taken. Further, he noted that the Planning Board did encourage the applicant to proceed, and he supports that position, although he would prefer to see fewer, larger homes that fit with the rural character of the area. The Commissioner then noted he would like to see a comprehensive plan for development of all Bozeman's parkland created and followed. Mayor Cetraro indicated his concurrence with the comments from Commissioner Kirchhoff and Commissioner Hietala. Commissioner Kirchhoff indicated that, in theory and principle, he supports Commissioner Youngman's comments; however, he stressed that the City cannot control the buying and selling of land. Since this property is in private ownership, he feels it is important to be practical and the encourage appropriate development of the site. Responding to Mr. Adamson, the Commissioners confirmed that a majority support proceeding with a growth pOlicy amendment. 06-21-2004 ..---- ---....--..---.----.--.-. - 8 - Mr. Adamson indicated that he will proceed with the amendment, but noted that he will remain flexible and willing to consider a swap for two or three buildable lots within city limits. Work session - overview/review of City Manager's Budaet Recommendations for Fiscal Year 2004- 2005 Included in the Commissioners' packets was a memo from Acting City Manager Ron Brey, dated June 16, drawing the Commissioners' attention to specific items in the City Manager's budget recommendations, and forwarding a copy of the draft calendar of events for adoption of the budget for Fiscal Year 2004-2005. Director of Finance Miral Gamradt gave a power point presentation on the upcoming budget, noting this presentation is similar to last year's. He cautioned that governing bodies can quickly become involved in the details of the budget and lose sight of the big picture; and encouraged the Commissioners to first focus on the big picture and then look at specific details later. He gave a broad overview of the proposed budget for next fiscal year, noting that the budget starts with a $44 million balance, with $46 million projected in revenues, $49 million projected in expenditures, and a $42 million projected ending balance. In the General Fund, he noted that the starting balance is approximately $2.9 million, with $16 million in both revenues and expenditures anticipated. He cautioned that the $44 million beginning balance includes $10 million in street impact fees; and the water and wastewater impact fees together total $16 million. The Director of Finance indicated one change in this year's budget is to include all funding sources in an individual department rather than scattering the revenue sources throughout the document. This makes it much easier to identify the actual costs of a specific operation than in the past. He cited the Police Department as an example, noting that their various funding sources total roughly $3.9 million. Director of Finance Gamradt noted that capital and operating costs comprise 54 percent of the total budget, reflecting the capital intensity of the operations. He then indicated that contracted services account for a significant portion of the expenditures, in light of the infrastructure projects being undertaken. He cautioned this type of budget is extremely volatile, where a budget with mostly personnel costs is stable and much more predictable. The Director of Finance turned his attention to the steady and consistent increases in taxable value since 1989, noting that he is projecting a 5-percent increase this year. Director of Finance noted that from Fiscal Year 1990 through Fiscal Year 1997, slightly over 80 employees were added to the budget; and from Fiscal Year 1998 through Fiscal Year 2003, approximately 36 were added. This year's budget includes six new positions. Capital spending, on the other hand, has increased significantly over the past eight years, from $12 million in the first eight years to $42 million in the next eight years. He stressed that this is in response to direction and leadership of the Commission, reflecting a fundamental change in City government. He noted that these capital expenditures have been accomplished while avoiding debt, except for the $4 million general obligation bond issue for the library that was approved by the voters in 2001. Director of Finance Gamradt turned his attention to the health insurance fund, noting that a steep decline in the balance was encountered from 2001 to 2004. In response to that decline, the City's contribution to the health insurance program was increased from $375 to $550 per employee; and employees were asked to contribute $100 for a spouse and $150 for a family toward the escalating costs. That increase has helped to stem the rapid decline; and this year, the City's contribution is being increased from $550 to $625 to bring the fund to a healthy position once again. This increase will result in a 2.96-mill increase in the insurance mill levy, which is outside the mill levy cap. The Director of Finance characterized the General Fund balance as being very stable, noting the balance has hovered at $3 million since 1998, with the decline in Fiscal Year 2003 being due to the purchase of the SAE House. He noted that, while the dollar amount in this fund has not changed, the fund balance is now roughly 20 percent of the annual expenditures, which is one of the lowest among the major cities in the state. The Director of Finance turned his attention to the Water Fund working capital, noting the revenues in this fund are extremely volatile. Also, the infrastructure is extremely expensive and, to date, those 06-21-2004 ....--.. - 9 - improvements have been funded with cash rather than through debt. He cautioned that the Hyalite transmission main is estimated to cost $4.8 million; and there are no monies in the fund to cover those costs at this time. As a result, another source of funding must be identified, such as a grant, water impact fees, rate increases, or a combination thereof. In the Wastewater Fund, a 37-percent reduction in the surcharge was planned during Fiscal Year 2005; however, the Director suggested that only a 20-percent reduction be enacted to ensure adequate monies to cover the various infrastructure projects. In the Solid Waste Fund, the Director noted the balance has been declining in recent years, due to the purchase of the Mandeville farm and the anticipated construction of a transfer station. He stressed that these major capital costs are being funded with cash rather than through debt. Director of Finance Gamradt turned his attention to the change in mill levies, noting that those outside the limitations include the general obligation bond levies for the library and transportation and the health insurance levy. The increase in levies subject to statutory limitations is 2.12 mills, with the overall increase being 9.18 mills. Acting City Manager Brey noted that funding for relocation of the City Attorney's office to the Professional Building is not included in the budget. As of August, the City will be losing its last tenant on the second floor of that building, and approximately $40,000 has been included for maintenance, which could be used to make that area attractive for reuse. He suggested that, if revenues are greater than projected, possibly some of those additional monies could be used to renovate the area to be used by the City Attorney's office. The Acting City Manager noted that revenue estimates should be available in mid-July, and suggested that the Commission may wish to consider delaying the public hearing until after that information is available. He then stated that approximately $1 million was eliminated from expenditure requests to bring the budget into balance, and stressed that none of those cuts were in existing levels of service or programs. He indicated, however, that the amount in the parkland development grant program was reduced from $150,000 to $100,000. He concluded by asking the Commissioners how many work sessions they wish to have prior to the public hearing and asked that if they have any specific questions, staff be given as much advance notice as possible so they can be discussed during the work sessions. Responding to Commissioner Kirchhoff, Director of Public Service Arkell indicated that the existing transmission main from Hyalite Reservoir to the treatment plant is big enough; however, it has an air lock that prevents the pipe from filling with water. The result is that it is not possible to get enough water from the lake to the plant to keep up with demand during peak times. She indicated that a pretreatment basin at the plant was considered a few years ago, but it was determined the benefit wasn't there. She then noted that the Lyman Reservoir is currently filling slowly and, when full will provide 1 million gallons per day. This will help to address some of the demand, but will not fully address the problems with the transmission line. The Director then noted that, even though the community has been growing at a steady pace, water usage has not increased at the same rate. Director of Finance Gamradt stated that the 3-percent administrative fee for the four special improvement districts considered earlier in this meeting was included in these budget recommendations. Since those districts were not created, revenues will be decreased by $150,000, requiring a corresponding decrease in expenditures. Commissioner Krauss stated that he feels the use of water impact fees for the Hyalite transmission line would be appropriate, but noted he feels the ratepayers should also bear a portion of the costs. He then suggested that the City request from the Department of Revenue a list of taxpayers that receive a break on their taxes, and then revise the structure of the water and sewer rates to provide a break for low-income residents. Responding to Director of Finance Gamradt, he indicated that he is not interested in providing reduced rates for senior citizens. Responding to Commissioner Krauss, Acting City Manager Brey indicated no monies have been budgeted for the local government study commission, since the recommendations were completed prior to the election. Commissioner Krauss noted that he plans to first look at the mill levy. He noted that the health insurance levy is one of his primary concerns; however, he is willing to let it ride this year. He expects the Legislature to address that exemption during the upcoming legislative session but, if it doesn't, he's willing to make sure that the levy doesn't significantly increase next year. He also voiced interest in an ordinance 06-21-2004 ------.--- - 10 - that requires an appraisal prior to purchase or sale of assets, He also wishes to implement some type of guidelines for a granting program, either from existing revenues or from a one-mill levy with the monies earmarked to fund requests from the community. He suggested that such a program would help to eliminate ad hoc and last-minute decisions, Acting City Manager Brey indicated the annual budget includes $6,000 to Gallatin Development Corporation for administration of the economic development program plus $5,000 in general support monies, and monies to the Human Resource Development Council for administration of the affordable housing program. He noted that the one mill for senior and disabled transportation is transmitted to GalaVan to assist in their program, Commissioner Youngman noted that, through adoption of the affordable housing policy, the Commission has committed to at least $200,000 in funding for affordable housing projects annually, She cautioned that there is not adequate money remaining in the big box monies to fully fund that commitment this year. Commissioner Krauss indicated he is sensitive to Commissioner Youngman's concerns regarding affordable housing. He then turned his attention to funding for the local government study commission, noting that the ballot issue won by one vote, and the funding to support it was soundly defeated. His assessment of those results is that the community barely wants a study and doesn't wish to fund it; and he's not inclined to buck that direction from the voters, Responding to Commissioner Kirchhoff, Commissioner Krauss stated that the City was allowed to levy one mill outside the cap in each of two years for the study commission that was convened ten years ago and estimated that the commission spent $48,000, The costs included office space, the costs of conducting a survey, consulting services and secretarial/administrative services. Commissioner Youngman turned her attention to scheduling of the pUblic hearing, noting she will be absent from the July 12 meeting; Commissioner Hietala indicated he will be absent the following week. Acting City Manager Brey asked how many work sessions the Commissioners wish to conduct; as a result of discussion, they set work sessions for the next two meetings, during the 7:00 p,m. session. Responding to Director of Finance Gamradt, Commissioner Krauss expressed concern about the level of reserve compared to the level of spending, and stressed the importance of avoiding the temptation to go into the red during the budgeting process. Commissioner Youngman noted the Commission has some outstanding requests for funding from the public to which it has not responded, Those requests include GalaVan, the International Visitors, and the Boys and Girls Club of Montana, Commissioner Youngman asked if the City Commission's budget includes monies for board requests, noting that the boards benefit from having those monies available for their operations, Commissioner Kirchhoff noted that the City has a capital improvements program that allows staff and the Commission to look out five to seven years and allocate monies for those needs, He suggested that a similar plan for City facilities and City-held assets could help move the City toward proactively dealing with its assets, which may include land swaps rather than sales in some instances. Acting City Manager Brey responded that the budget recommendation does include a new facilities superintendent position; however, he anticipates that position will be eliminated because of the $150,000 reduction in revenues, Commissioner Kirchhoff suggested an alternative would be to let the position pay for itself through the creation of the facilities plan, Acting City Manager Brey indicated staff will provide as much information as possible in response to the issues and questions raised during this discussion prior to next week's work session, 06-21-2004 ----.--."'.. ...--.--- ,.- .-----.-....-.-- - 11 - Discussion. FYI Items The following "For Your Information" items were forwarded to the Commission. (1 ) Listing of summer events in the historic downtown area. (2) Letter from the Gallatin County Clerk and Recorder, dated June 18, informing the City that review of the City's government was approved on the June 8 primary ballot and that study commissioners will be elected at the November 2 general election. (3) Copy of the notice of the public workshop to review the update of the Design Objectives Plans for entryway corridors, to be held at 7:00 p.m. on Wednesday, July 14, at the Willson School. (4) Copy of the notice for backyard compost bins being available to the public on Saturday, June 19, at substantial savings. (5) Copy of the notice that garbage collection during the week of July 4 will be one day late, and that the landfill will be closed on Monday, July 5. (6) Minutes from the Community Affordable Housing Advisory Board meeting held on April 7. (7) Agenda for the County Commission meeting to be held at 9:00 a.m. on Tuesday, June 22, at the Courthouse. (8) Agenda for the County Planning Board meeting to be held at 6:30 p.m. on Tuesday, June 22, at the Courthouse, along with notes from their meeting held on June 8. (9) Agenda for the Development Review Committee meeting to be held at 10:00 a.m. on Tuesday, June 22, at the Professional Building. (10) Agenda for the Design Review Board meeting to be held at 3:30 p.m. on Tuesday, June 22, at the Professional Building. (11) Planning Director Andy Epple showed the Commissioners the revised preliminary plat for West Meadows Subdivision, Phase III. He noted that the original approval included 16 lots essentially in the center of the project containing 12,000 to 14,000 square feet for residential development; and the applicant is now proposing to reconfigure that area into 26 lots containing 6,300 to 6,500 square feet each. He indicated that staff supports the proposal, finding that it provides for a mix of housing types. The area affected by this reconfiguration is under five acres; and the requirements of the affordable housing policy are triggered on parcels greater than five acres. If it is determined this change can be accomplished without triggering those requirements, the applicant has indicated an interest in pursuing the lot reconfiguration; if it does trigger those requirements, he plans to proceed with the subdivision as originally approved. The Commissioners expressed an interest in the reconfiguration. (12) Planning Director Epple showed the Commissioners the revised preliminary plat for West Winds Subdivision, prepared by HKM in response to Commissioner comments during the review process. He noted that some lots have been eliminated adjacent to the parkland, to provide a larger uninterrupted park area. Also, trail connections have been added, and additional easUwest street connectivity has been provided. He noted the rough notes from the Commission meeting indicate more connectivity is desired on the east side of the stream corridor; and the applicant was under the impression that more connectivity was desired in the northeast quadrant only. Commissioner Kirchhoff noted that he was the one seeking the requirement for additional connectivity along the east side of the stream corridor; and that requirement pertained to the entire side and not just the northeast corner. Commissioner Krauss voiced frustration that three lots have been added back along Buckrake Avenue; and he cannot support allowing them to remain on the final plat. Commissioner Kirchhoff noted that the east side of the subdivision, as proposed, looks like a commercial development, in which the building location and size are determined, with parking and setbacks 06-21-2004 -.---.-..-..------ - 12 - then being added and one feeder street being constructed to serve the project. He suggested that a more conventional, standard block type of configuration could provide for a better residential area than the plan currently before the Commission. Planning Director Epple noted that the restricted size lots are currently confined to one small portion of the subdivision and asked if they are to be spread throughout the subdivision; the Commissioners responded that they are to be spread out. Commissioner Krauss expressed concern about the mid-block crossing, noting that during review of the preliminary plat, he made it clear that crossing was unacceptable. (13) Planning Director Andy Epple announced that staff is finalizing its report on the Edgewater Condominium project, noting this is one of the few staff recommendations for denial. He stressed this recommendation has nothing to do with the recent adoption of the Bozeman Creek Neighborhood Plan, but has everything to do with the applicants' unresponsiveness to suggestions and unwillingness to provide access to adjacent properties. (14) Director of Finance Gamradt asked if the Commissioners wish to pursue updating of the capital improvement program at this time or wait until after the water and wastewater facilities plans have been updated, which will take approximately fifteen months. The Commissioners determined it would be more appropriate to wait until the facilities plans have been updated and more realistic cost estimates developed. Acting City Manager Brey encouraged the Commissioners linger over the general fund when reviewing the current capital improvement program, noting that there are not adequate monies in that fund to cover capital needs beyond the annual replacement of police cars. He recognized that those departments funded through other sources sing the praises of allowing the program to continue; however, he stressed it does not work for the general fund operations. Responding to Commissioner Kirchhoff, Director of Finance Gamradt indicated there are few changes in the capital improvement program from what is in the book. The key changes are the fact that some of the water projects are not being funded because of the overrun on the Lyman Creek Reservoir project and the switch on timing for a couple of projects. (15) Director of Public Service Debbie Arkell noted that when the Nelson property adjacent to East Gallatin Recreation Area was first posted for sale, she picked up a flyer. She found the price was $284,000; and there was $68,000 available in the Parkland Trust Fund, so she pursued acquisition of the parcel no further. (16) Director of Public Service Arkell noted that monies have been budgeted for design of Durston Road and West Babcock Street. In light of the Commission action on the special improvement districts earlier this evening, she asked whether the Commission wishes to pursue improvements to those roadways, noting she does not wish to spend monies on designing of roads that are not going to be built. Commissioner Krauss stated he feels it is important to determine the costs of the projects and the mechanism for funding those costs before proceeding. (17) Commissioner Youngman noted the Commissioners have received an e-mail invitation to attend a breakfast meeting with the County Commission on July 15. She indicated that she will be out of town, but has no problem with the other Commissioners proceeding with the meeting. The Commissioners agreed that they would be able to meet on July 15. The Commissioners then discussed various topis to be discussed, including solid waste, status of the transfer station, the Bozeman Creek Neighborhood Plan and transfer of development rights. Responding to questions from the Commissioners, Director of Public Service Arkell estimated the current cell at the landfill will be full in July or August 2005, unless the cell is restricted to City residents only or some of the garbage is hauled directly to the Logan landfill this summer. She then noted the Envirocon made a presentation to the Commission regarding the construction and operation of a transfer station on 06-21-2004 - 13 - North Wallace Avenue and, after it was determined that location was not acceptable, have not returned with an alternative. She then noted that Montana Waste Systems, from Great Falls, has expressed an interest in hauling the City's garbage, which could have a dramatic effect on the County's solid waste district and the tipping costs at the Logan landfill if it is transported to Great Falls. Adjournment - 10:02 p.m. There being no further business to come before the Commission at this time, it was moved by Commissioner Kirchhoff, seconded by Commissioner Krauss, that the meeting be adjourned. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Kirchhoff, Commissioner Krauss, Commissioner Youngman, Commissioner Hietal nd yor Cetraro; those voting No, none. ATTEST: ~st~ Clerk of the Commission 06-21-2004 -..--