HomeMy WebLinkAbout1999-04-12 Minutes, City Commission
MINUTES OF THE AGENDA MEETING/WORK SESSION
OF THE CITY COMMISSION
BOZEMAN, MONTANA
April 12, 1999
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. 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
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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
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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.
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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
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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.
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(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.
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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.
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