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HomeMy WebLinkAbout1999-08-27 Minutes, City Commission - _.__._. ._u MINUTES OF THE SPECIAL MEETING OF THE CITY COMMISSION BOZEMAN, MONTANA August 27, 1999 ***************************** The Commission of the City of Bozeman met in special session in the Commission Room, e Municipal Building, on Friday, August 27, 1999, at 1 :00 p. m. Present were Mayor Youngman, Commissioner Smiley, Commissioner Rudberg, Commissioner Frost, City Manager Johnson, City Attorney Luwe and Clerk of the Commission Sullivan. Signing of Notice of Seecial Meeting Each of the Commissioners, in turn, signed the Notice of Special Meeting. Reauest for City to enter into documents for Durchase of erODertv and incurring of attendant debt City Manager Johnson distributed copies of several documents to the Commissioners, including Section 7-14-4622, M.C.A., setting forth the powers of a parking commission and Section 7-14-4632, M.C.A., pertaining to cooperation with other municipal offices; copies of Commission Resolution Nos. 1676 and 1839, creating the City's Parking Commission and establishing its powers; a memo from Assistant Finance Director Biekert, dated February 9, 1998, forwarding excerpts from the financial statements for 1997; and a memo from Parking Clerk Trudy Phippen, dated August 24, 1999, forwarding information on the number of citations issued during Fiscal Year 1999 and the number of unpaid citations turned over for . prosecution. .. The City Manager stated that on Wednesday, he was approached by the seller's attorney asking that he sign documents entering into debt for the acquisition of property by the Parking Commission. He noted that he declined to do so because he has no authority to enter into debt without Commission action. Mr. Tim Fitzgerald, Chair of the Parking Commission, provided background on this request. He noted that the Parking Commission has the opportunity to purchase the parcel at the southeast corner of the intersection of North Willson Avenue and West Mendenhall Street, commonly known as the old Rolfe and Wood site. He stated the property is currently owned by Mr. Bruce Erickson, President of American Bank; and, through negotiations, the price has been reduced from $250,000 to $210,000. He noted that the property has been previously used as a parking lot, so it can be available for use in a short period of time. Mr. Fitzgerald stated he began conversations with Mr. Erickson a week and a half ago, and Mr. Erickson indicated his willingness to sell the property to the Parking Commission as long as the deal was completed quickly. He indicated that the Parking Commission has slightly over $50,000 in the cash-in-lieu fund; and that could be used as a down payment, with the $160,000 balance being financed at 10 percent simple interest for a period of fifteen years with no penalty for prepayment. He noted that the Parking Commission has receivables of . $43,000 and other cash payments coming in over the next couple of years; the City owes a cash-in-lieu payment of $12,000 in conjunction with sale of the Carnegie Building; and an appraisal is being obtained so the parcel on South Bozeman Avenue for which rezoning was recently denied can be resold. He concluded the presentation by noting the Parking Commission asks that any revenues from rental of spaces in this parking lot be returned to the cash-in-lieu fund, to help generate cash flow. Responding to Commissioner Frost, Mr. Fitzgerald stated that the subject property will accommodate 21 to 22 parking spaces, and the one ingress/egress to North Willson Avenue is to be used, with possible adjustments being made in the future if determined beneficial. He noted that, under this proposal, the cost is $10,000 per parking stall, which he feels is 08-27-99 Special ---..--.-.------ - 2 - reasonable in light of information the Parking Commission has gathered. He noted that a new multi-level parking facility is currently being constructed in Helena at a cost of $19,000 per parking stall, not counting land acquisition costs; and the estimated cost of constructing the surface lot on South Bozeman Avenue is $7,000 to $8,000 per stall. Further responding to Commissioner Frost, City Manager Johnson stated that Mr. Erickson needs someone from the City to sign the note, and that would be him since the City is borrowing the monies. He then indicated that he intends to pursue possibly borrowing INTERCAP monies, at approximately 5 percent interest, to pay off the note; however, staff did not have adequate time to go through that process by today. e Commissioner Frost indicated his support for that proposal, since he does not want to pay 10 percent interest on the note. City Manager Johnson stated that, in light of the possibility of incurring debt, he reviewed the financial information on the parking program and found that it runs a deficit. The City Manager noted that the City has employees who work in the parking program and incurs additional costs when unpaid citations are turned over to the City Attorney's office and City Court for prosecution. He noted that, in Fiscal Year 1997, the parking program had a deficit of $54,000, and that was with a $15,000 contribution to the cash-in-lieu program. He encouraged the Commissioners to carefully take into consideration the fact that the parking program is not self-sufficient and, in fact, requires nearly a $70,000 contribution from the City's General Fund on an annual basis. He also asked the Commissioners to take into consideration the fact that the cash-in-lieu fee is $5,000, while new spaces actually cost closer to $10,000. The City Manager turned his attention to the information on unpaid citations, noting that for Fiscal Year 1999 there were 3,308 turned over to the City Attorney's office for prosecution, and summons/complaints were issued on 911 of them. He cautioned that this process has a lot of impact on the court, the police and the budget. He concluded by noting e that whether to continue General Fund support for this program is a policy decision, and suggested that fees be increased to more realistically reflect the costs incurred. Commissioner Rudberg noted that, at one time, the Commission discussed the possibility of using a boot, and suggested that doing so could increase the percentage of citations paid. She then expressed her disagreement with a recent article in the Tributary, written by Tim Crawford, and noted that, in light of his comments, it is extremely important to inform the community of the level at which the City is subsidizing the downtown parking program. She also recognized the strong need for additional parking, and noted that rezoning in the downtown area to allow for construction of a new lot is extremely difficult to accomplish. She then indicated support for acquiring this property and incurring the necessary debt to do so. Commissioner Smiley stated her support for purchasing the subject property, particularly since the Parking Commission needs additional spaces to lease on a monthly basis. She then indicated her interest in discussing ways to increase the revenues, and suggested the possibilities of installing parking meters once again and increasing the monthly lease rate of $20. Mr. Tim Fitzgerald stated that the Parking Commission has been asking for, and receiving, reports on the tickets which have been issued through the automated ticketing system. He cautioned that some of the outstanding tickets may have been issued prior to conversion to the automated system, since the percentage of collection under the new system e seems to be quite high. He stated that the subject lot was available several years ago for $80,000, but the Parking Commission did not have the money to acquire it at that time. Mr. Fitzgerald characterized this as an opportunity to address the criticisms which have been received in recent hearings about the failure to provide additional parking spaces downtown, even though people have been making cash-in-lieu payments over the past several years. Responding to Mayor Youngman, Mr. Fitzgerald stated the subject property was available approximately ten or twelve years ago. At that time, the gentleman who purchased 08-27-99 Special - 3 - Wong's also bought this lot and, a few years ago, the parcel was for sale at $160,000 and Mr. Erickson purchased it. Commissioner Frost stated he has no problem with the City spending $70,000 annually to subsidize the downtown parking program. He characterized the price of this property as being high; however he also recognized the strong need for the additional parking. He proposed that the monthly rental fees be increased and that the third house on South Bozeman Avenue be sold as soon as possible in an effort to reduce the annual subsidy to the program. Responding to Commissioner Smiley, Mr. Fitzgerald stated there is some strong feeling . about the lack of parking lots on the south side of Main Street. As a result, he stated the Parking Commission plans to proceed with construction of the parking lot on South Bozeman Avenue. Commissioner Smiley suggested that the City take a different approach to advertising the sale of the two existing houses on the South Bozeman Avenue properties, suggesting that ads be included in the classified section of the newspaper. It was moved by Commissioner Smiley, seconded by Commissioner Rudberg, that the Commission authorize and direct City Manager Johnson to sign the necessary documents for purchase of the property at the southeast corner of the intersection of North Willson Avenue and West Mendenhall Street and the attendant papers incurring debt for that transaction. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Smiley, Commissioner Rudberg, Commissioner Frost and Mayor Youngman; those voting No, none. Following discussion, the Commissioners asked that staff and the Parking Commission identify ways to develop a better package for financing of the downtown parking program and that the issue be placed on a work session in November. . Adjournment - 1:35 D.m. There being no further business to come before the Commission at this time, it was moved by Commissioner Frost, seconded by Commissioner Rudberg, that the meeting be adjourned. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Frost, Commissioner Rudberg, Commissioner Smiley and Mayor Youngman; those voting No, none. M:e::;:o~t:Cvor ATTEST: @~~ ROBIN L.SULUV AN_ Clerk of the Commission - . "" 08-27-99 Special ..__._u_______._ u__ _... __ -- ---. -. ---