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HomeMy WebLinkAbout1999-04-12 Minutes, City Commission MINUTES OF THE AGENDA MEETING/WORK SESSION OF THE CITY COMMISSION BOZEMAN, MONTANA April 12, 1999 ***************************** . The Commission of the City of Bozeman met in agenda meeting and work session in the Commission Room, Municipal Building, on Monday, April 12, 1999, at 3:00 p.m. Present were Commissioner Smiley, Commissioner Rudberg, Commissioner Frost, Commissioner Youngman, City Manager Johnson, Assistant City Manager Brey, Staff Attorney Cooper and Clerk of the Commission Sullivan. Mayor Stiff was absent. The meeting was opened with the roll call, Pledge of Allegiance and a moment of silence. Agenda Meetina - for regular meeting and Dublic hearinas to be held on Aoril 19. 1999 Since this is an agenda meeting, only those issues requiring staff action are contained in the minutes. City Manager Johnson briefly reviewed the background information which was included in the Commissioners' packets. (4) Assistant Planning Director Debbie Arkell gave a brief overview of this conditional use permit on behalf of Assistant Planner Joni Killebrew. She stated the original portion of the . business is a legal non-conforming use in the "RS" zone, where nurseries are a conditional use. (7) Assistant City Manager Brey stated the Parking Commission met last Thursday and the Downtown Improvement District Board is scheduled to meet tomorrow night, at which time this resolution is to be discussed. He then indicated that representatives from the Downtown Bozeman Association will also be present at that meeting and, with the overlap across the boards, he hopes to have a common response available for the Commission at next week's meeting. (8) City Manager Johnson stated that draft language changes for this ordinance will be included in the packet on Thursday. (9) In response to City Manager Johnson, the Commissioners indicated a willingness to receive public comment on this ordinance at next week's agenda. Commissioner Rudberg noted that a review of the Cemetery Board minutes over the past year has reflected a significant amount of discussion on this subject and suggested the Commissioners review that information prior to next week's meeting. (10) Associate Planner Chris Saunders briefly reviewed the purpose of this contract amendment, noting that the additional amount is to be covered by the same 80/20 match as . the base agreement. He noted that under this amendment, the local match will be increased by $3,200, and the County has agreed to bear the entire amount since most of the additional work is to be done in the county. He stated that when this update is complete, computer modeling will be available for the road system from Big Sky to Bridger Bowl to Three Forks. He then indicated that it is staff's hope the existing funding agreement, which is with the City- County Planning Board, can be seamlessly transferred or assigned if the Board is disbanded. (16&17) City Manager Johnson reminded the Commissioners that the proposed rate increases in water and sewer were previously considered, and withdrawn immediately following the election in November because of the passage of CI-75. He then forwarded his intent to 04-12-99 -.-....--.. ... -- .------ - ~=.= . - 2 - make a staff presentation at the beginning of the hearings next week, so the public knows the reasons for the proposed increases. Administrative Services Director Gamradt briefly reviewed the reasons for the proposed increases, after which staff responded to questions about how the possible acquisition of grant monies might impact the rate increases and completion of improvements to the infrastructure. Mayor Pro Tempore Youngman requested that the information submitted at next week's . meeting include a review of how the items in the capital improvement program might address the results of the inflow and infiltration study, the relative seriousness of each project, and how the City proposes to maintain the system once all the catch-up work is completed. (18,19 & 20) Assistant Planning Director Debbie Arkell gave a brief overview of each of these applications on behalf of Historic Preservation Planner Derek Strahn, characterizing each of them as being straight forward. (21 ) Assistant Planning Director Arkell gave an overview of this project on behalf of Historic Preservation Planner Strahn. She stated this project is "not quite as easy", noting that staff does support the proposed conversion of the historic Salvation Army church at the corner of East Lamme Street and North Church Avenue into a single-family residence. She noted that three deviations are being sought, and staff is generally supportive of those deviations. She stressed that the proposed new garage meets all the setback requirements; however, in light of neighborhood concerns, staff has suggested the applicant consider access from a different street. Work Session - (A) Presentation from Gallatin DeveloDment CorDoration: discussion re information submitted . (A) Presentation from Gallatin Development Corporation Ms. Christina Boyle, Executive Director of the Gallatin Development Corporation (GDC), introduced those in attendance for the work session, including Ms. Ann Desch, Acting Development Officer for the Community Development Block Grant (CDBG) program; Mr. Terry Dimock, Regional Development Officer with the Department of Commerce; Ms. Michele DeBose, Small Business Development Center; Mr. Tony Preite, USDA Rural Development and formerly with Bear Paw Economic Development in Havre; Mr. Rick Weaver, member of the Board of Directors for GDC; and Mr. Michael Utter, member of the Alliance Group. Ms. Boyle reminded the Commission that the Gallatin Development Corporation currently administers the City's CDBG Economic Development Revolving Loan fund, and the object of that fund is to promote quality employment opportunities in the community. She stated that under this presentation, the GDC is requesting to become managers of the fund rather than simply administrators on behalf of the City. Ms. Boyle noted that the Gallatin Development Corporation meets with businesses throughout the community on a daily basis, and they know the needs and problems of each of those businesses. She characterized the GDC as being "at eye level" with the businesses in the community and stated they are committed to attending training and educational seminars to remain current on the various programs. She indicated that co-locating all services at the Gallatin Development Corporation will help them provide better and more comprehensive . services. She noted that if the CDBG Economic Development Revolving Loan Fund is a part of the GDC's assets, they can use it to add even more assets to their loan portfolio. She noted that Mr. Jeff Rupp has asked the GDC to assume the microbusiness program currently operated by the Human Resource Development Council, and stressed the importance of incorporating all of the pieces under one umbrella rather than having them spread throughout the community. She stated that other corporations have successfully managed their funds in this manner, and it is her desire to mirror those successes. Ms. Boyle stated that many people do not realize the Gallatin Development Corporation lends monies, or that monies are available through various programs. She noted that, in 04-1 2-99 ----- ----- --- . ._u - 3 - working with various businesses, GDC has begun to recognize the three greatest needs are facilities, employees and financing to grow. She suggested that if the economic development corporation were to manage the revolving loan fund, some of the existing federal regulations would be eliminated. Ms. Ann Desch stated that several cities and counties throughout the state maintain their own economic development revolving loan funds which result from the CDBG program, while in other locations, an economic development corporation manages those funds. She . stated that the programs are operated with varying degrees of success, but the most successful are those operated by the economic development corporations. She suggested this is due to the co-location of services and the opportunities for combining a variety of funding sources to meet the needs of the business. She stated that under the CDBG economic development program, the monies are initially granted from the State to a local government, and those monies can then be lent to a for-profit business. She noted that if the revolving loan fund, which is funded through the repayment of those loans, is managed by the local government, it continues to be subject to the federal regulations; however, if it is managed by a local economic development corporation, it is not. She then recognized that the City of Belgrade has operated a successful program on its own; however, she characterized that as an exception. Mr. Terry Dimock stated he covers a multi-county area which includes Gallatin County. He noted that Butte/Silver Bow has been extremely successful in its economic development program, and much of that success is because of the mix of programs being used. He then stated that the co-location of small business development centers and economic development corporations tends to lead to better successes than when they operate separately. Mr. Tony Preite stated that he served as the Executive Director of the Bear Paw Economic Development Corporation for 25 years, and he left that position six years ago. He noted that Bear Paw was the first multi-county district, and it was the lone surviving district . for seventeen or eighteen years. As the lone economic development association in that area, Bear Paw has solely controlled those monies; and the association now has in excess of $10 million in its revolving loan fund program. Mr. Rick Weaver stated he lived in Havre for five years and witnessed the work of Bear Paw. He noted there is not a great amount of natural growth in that area of the state; however, businesses have flourished. He suggested that the same success could be realized here, particularly if all segments of economic development are incorporated under one umbrella. He stated that having one location with all the answers is also important to the success of the Gallatin Development Corporation and its efforts. Mr. Michael Utter stated that for the past couple of years, he has worked with rural economic development, and a majority of his work has been done out of state. He then reviewed the statistics for a model from South Dakota which is very similar to Bear Paw. He noted that in an area with a base population smaller than Gallatin County, the agency has lent $7.8 million, with a successful collection rate of 98 percent, and an historic leverage ratio of 3 to 1. He attributed the success of the program to the uone stop shopping mode". Responding to questions from Commissioner Rudberg, Ms. Boyle stated that, in the overall picture, GDC wants to serve all of the communities in Gallatin County. She then stressed that GDC's efforts would not include housing, since the Human Resource Development Council has a successful track record in that area. She then indicated that, eventually, she . would like to include Belgrade in the program, incorporating all of the resources possible into their program. She noted that the GDC will also identify programs and opportunities not under their umbrella and work to blend those resources whenever possible. Responding to Mayor Pro Tempore Youngman, Ms. Desch stated that, for control of the funds to change from the City to Gallatin Development Corporation, an agreement outlining the obligations of each entity must be entered into. She noted that the City could remain involved at whatever level it chooses. She then indicated that three different agreements currently exist, and each of those would need to be revised to accommodate the transfer of the asset and payment stream from the City to the Gallatin Development Corporation. 04-12-99 .. - 4 - Ms. Boyle noted that two City representatives currently serve on the board and suggested that restructuring of the board be done cooperatively. Responding to questions from the Commission, Mr. Preite strongly recommended that the loan committee be overloaded with city and county officials if the Gallatin Development Corporation assumes ownership of the revolving loan fund. He noted that, in many cases, cities and counties are the only agencies eligible for programs, and the signature of an elected official often carries more weight than that of a private citizen or business owner. He also . encouraged the inclusion of people from a variety of disciplines on the executive committee, including bankers and attorneys, since they can provide important viewpoints and expertise. He then stated that the critical mass of people and dollars are key issues in the success of an economic development program. He noted that the City would not really be giving anything up in the transfer of the ownership of the monies; rather, the change would simply be on paper and the monies would multiply quickly. Mr. Terry Dimock stated that the loophole in the regulations under which economic development corporations are exempt resulted from the difficulties encountered in trying to track the funds being administered, particularly in multi-jurisdictional situations. Mr. Utter suggested that, with responsibilities for the various programs being divided into different locations, nobody has any real ownership. He stated that it is important to create a centralized community asset that can be properly managed and grown, noting that a sense of ownership will result from the conversion. He then suggested that the lack of a vision by the GDC boards in the past could be partially responsible for today's fragmentation. Responding to questions from City Manager Johnson, Mr. Weaver stated that under the current structure, the City makes the final decision on loans and repayment is made to the City. He noted that under the proposed structure, GDC would make the final decision and repayments would be to GDC, thus the loophole in federal regulations would be available. . Mr. Tony Preite stated that combining all of the sources of assistance can lead to better leveraging and bridging options. He noted this can be an advantage when seeking federal resources and helps to provide continuity. City Manager Johnson noted that the City of Bozeman is being asked to give up a $650,000 asset and asked what would preclude using those monies to attract businesses to sites outside city limits or in another community in the county. Ms. Boyle stated the business climate in Belgrade has helped to lead to its success. She then indicated that she is not sure whether the monies from Bozeman's program could be used elsewhere in the county, but characterized it as being "a spoke in the wheel". Mr. Preite noted that similar concerns arose in the Bear Paw project, particularly when monies from a loan in Chester were used to fund a project in another community. He noted, however, it is important to remember that as projects occur throughout the county, the pot of monies grows and everyone will eventually benefit. City Manager Johnson stressed the importance of recognizing that if the City of Bozeman gives the authority for its revolving loan fund to the Gallatin Development Corporation, it loses a tool to ensure that businesses locate within the community. . Mr. Weaver stated that, even though a business may locate outside Bozeman and not pay the city property taxes, Bozeman will benefit from the payroll monies spent here. He also noted that many of the employees may reside in Bozeman even though they are employed elsewhere. Commissioner Smiley stated she has been concerned about the "lackluster program" in Bozeman and expressed her desire to see the program climate improved. Mayor Pro Tempore Youngman noted this is the first time the Commission has heard of this proposal. She noted that the letter previously submitted by the Gallatin Development 04-12-99 - 5 - Corporation was for more administration monies and not for authority. She expressed her desire to think carefully about the impacts this proposal might have before making a decision. The Commission thanked Ms. Boyle and the other participants for their presentation. Discussion - Commissioner Droiects . None of the Commissioners forwarded any comments under this agenda item. Discussion - FYI Items City Manager Johnson presented to the Commission the following "For Your Information" items. (1 ) Copy of the public notice stating the Main Street entrance to City Hall will be closed on Friday, April 16, and Monday, April 19. (2) Letter from Reach, Inc., dated March 11, regarding sponsorship of a local athlete for this year's Special Olympic games. (3) Letter from the Montana Historical Society, dated April 2, stating the Samuel Lewis House, 308 South Bozeman Street, has been listed on the National Register of Historic Places. (4) Card from the Gallatin Valley Chamber Agriculture Committee thanking the Commission for its support of National Agriculture Week. (5) Letter from Tim J. Mcinnis, 151 Sheridan Avenue, dated April 5, regarding the problem he has encountered with a stray dog in his neighborhood. . City Manager Johnson stated he has received a response from Captain Mel McCarver regarding this issue. (6) Memo from Project Engineer James Nickelson, dated April 8, providing an update on the acquisition of right-of-way for Oak Street between North 7th Avenue and North Rouse Avenue. (7) Copy of the snowpack report for the Gallatin River basin, dated April 8. (8) Copy of the current sign code, as requested by the Commission at last week's meeting. (9) Notice that the Gallatin County Drug Court Planning Coalition stakeholders meeting has been changed from April 29 to May 6 at noon at the Courthouse, along with minutes from the March 31 meeting. (10) Letter from the Retired and Senior Volunteer Program, dated March 26, inviting representatives from the City to attend the annual RSVP Volunteer Recognition Dinner, to be held at the Holiday Inn on April 25 at 5:30 p.m. . (11 ) Copy of a letter from Director of Public Service Forbes to Gwen Jacobs, EPA, dated April 1, thanking her for her presentation on the Ross Creek area. (12) Agenda for the County Commission meeting to be held at 1 :30 p.m. on Tuesday, April 13, at the Courthouse. (13) Agenda for the Development Review Committee meeting to be held at 10:00 a.m. on Tuesday, April 13, in the Commission Room. 04-12-99 ..-.--- - 6 - (14) Agenda for the Design Review Board meeting to be held at 3:30 p.m. on Tuesday, April 13, in the Commission Room. (15) Notice of the special Downtown Improvement District Board meeting to be held at 5:30 p,m. on Tuesday, April 13, at the Downtown Bozeman Association office. (16) Agenda for the Bozeman Area Transportation Coordinating Committee meeting to be held at 10:00 a.m. on Thursday, April 15, in the Commission Room. . (17) Agenda for the Board of Adjustment meeting to be held at 1 :30 p.m. on Thursday, April 15, in the Commission Room. (18) City Manager Johnson submitted his weekly report, as follows. (1) Announced that he spent Friday with one of the boys from the Boys and Girls Club, which gave him a good opportunity to tour the City facilities again. (2) Reminded the Commission that he will be out of the office tomorrow. (19) The City Manager stated that he was reminded earlier during this meeting that he had not placed an item on next week's agenda, to discuss a proposal for insurance policies. He stated that in light of the City's participation in the MMIA insurance programs, the decision is a policy decision rather than an administrative decision. The Commissioners indicated a willingness to consider this item on next week's agenda. (20) Commissioner Frost asked about the proposed hockey rink at the Fairgrounds and whether interlocal agreements will continue to be valid. He indicated that his main concern is time, particularly since the hockey players want a facility available this fall. The City Manager responded that a draft interlocal agreement has been prepared by the County Attorney's office, and he will forward a copy of that draft in the packet for next week's . meeting. He then indicated that representatives of the Bozeman Amateur Hockey Association have been meeting with the Fair Board to discuss the agreement. (21) Commissioner Rudberg submitted the following. (1) Asked if anyone plans to attend the Turner Youth Development meeting on Wednesday evening, noting that this is a possible funding source for a skateboard facility. (2) Stated she has a copy of the draft detention center plan, and she will make it available in the Commission office for review. (3) Asked if the Bicycle Advisory Board has been asked to become involved with the trails. (4) Expressed her concern that the Salvation Army continues to be a poor neighbor in its operation on East Babcock Street. (22) Commissioner Rudberg noted that in December, she requested information on the amounts which have been contributed by Farmers' Market toward improvements at Bogert Park. City Manager Johnson stated he has recently received a response from Career Transitions, but the information was not adequate and he has requested clarification. He then noted that it is not possible to track all of the Farmers' Market contributions through the City's books because some of them may have been made through the Recreation Department rather than through the Finance Department; and that is an issue that has been addressed in light of recent audit comments. . Mayor Pro Tempore Youngman stated that at last week's Recreation and Parks Advisory Board meeting, a new design for Farmers' Market, which should result in less impact on the sod in the park, was presented. She then indicated that the Board encouraged the Commission to accept public input prior to making a determination on how to spend the Haynes monies, particularly if those monies are to be used for park facilities. (23) Mayor Pro Tempore Youngman submitted the following. (1) Stated that she attended a skateboard park meeting last week. (2) Spoke at the Take Back the Night activities last week. (3) Participated in the opening ceremonies for the Men's Bowling Association state bowling tournament, which opened this weekend and runs for the next eight weekends. 04-12-99 - 7 - Adjournment - 4:58 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 Pro Tempore Youngman; those voting No, none. · MAl! a;2/LA~Tempore ATTEST: "-. C24:-J~~ ROBIN. t-;..:....$Ol'lYAN- Crerk of ~the.Cdfritj\ission - -"~_"u ................~_ __ . .- - ~ ............- -~~~ ~,.......~'~ ..~:\.. . è . . 04-12-99