HomeMy WebLinkAbout1999-08-27 Minutes, City Commission
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MINUTES OF THE SPECIAL MEETING OF THE CITY COMMISSION
BOZEMAN, MONTANA
August 27, 1999
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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
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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
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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:
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ROBIN L.SULUV AN_
Clerk of the Commission
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