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HomeMy WebLinkAbout1998-06-22 Minutes, City Commission --------.- MINUTES OF THE SPECIAL MEETING/WORK SESSION OF THE CITY COMMISSION BOZEMAN, MONTANA June 22, 1998 ***************************** . The Commission of the City of Bozeman met in special meeting and work session in the Commission Room, Municipal Building, on Monday, June 22, 1998, at 3:00 p.m. Present were Mayor Stiff, Commissioner Smiley, Commissioner Rudberg, Commissioner Frost, Commissioner Youngman, City Manager Johnson, Assistant City Manager Brey, City Attorney Luwe and Clerk of the Commission Sullivan. Roll Call, Pledge of Alleaiance and Moment of Silence The meeting was opened with the roll call, Pledge of Allegiance and a moment of silence. Sianina of Notice of Soecial Meetina . Each Commissioner, in turn, signed the Notice of Special Meeting. Discussion - review of orooosed initiative Detition re imDact fees and oossibilitv of directina that a lawsuit be brought to determine its validity City Attorney Luwe stated that he received a copy of the initiative petition regarding impact fees from the citizens group for his review and approval. He noted that the 21-day time period allowed under State statute ended on June 11 and, since he was out of town that week, he submitted his response on June 5. He noted that, as the County Election Administrator, Ms. Shelley Vance approved the petition as to form and compliance on June 9 and, by statute, the Commission has fourteen days to determine if it wishes to proceed with a lawsuit to test the validity and constitutionality of the initiative. . The City Attorney stated that on June 5, he prepared a memo outlining the issues; and he has requested that this item be placed on the agenda to provide him with clear direction on whether to prepare the documents necessary to bring a lawsuit. He indicated that, since tomorrow is the last day of the fourteen-day period, action is necessary at this meeting. 06-22~98 - .--.-..-----... -.----- - - 2 - City Attorney Luwe stated the key issue is whether this initiative petition pertains to a legislative act or an administrative act, noting that in the recent Town of Whitehall vs. Preece decision, it was reaffirmed that a legislative act may be subject to referendum while an administrative act may not be. He stated that in this instance, he feels it is difficult to identify . whether this is a legislative act or an administrative act and asked if the Commission wishes to bring a suit to determine the validity of the petition. Responding to Commissioner Rudberg, City Attorney Luwe stated that if the City seeks declaratory judgment, the citizens group may continue to collect signatures on the petition, unless the Court issues an injunction after determining that it is an administrative act. He then indicated that if the City seeks a declaratory judgment and the Court finds for the citizens' group, they would be entitled to attorney's fees and costs. He stressed that if the City pursues a declaratory judgment, it is simply to determine whether the subject of the petition is a legislative act or an administrative act, and has no bearing on the percentage at which impact fees are assessed. Commissioner Rudberg stated that she believes in the initiative process, whether she . believes in the subject of the initiative or not. Responding to Commissioner Smiley, the City Attorney stated that a declaratory judgment has priority in the court system. He then estimated that it would take two to six months to obtain a judgment in this case. He indicated that the costs involved would be the filing fees and court costs and, if the City loses, the citizen group's attorney fees and costs. He recognized that the District Court decision could also be appealed to the Montana Supreme Court by either party. Responding to Commissioner Frost, the City Attorney stated it is his opinion that the Judge is likely to find this is a legislative act, based on the history of the impact fee ordinance. He stressed, however, that this is too close for him to call and he is seeking Commission direction. . Commissioner Rudberg stated that, based on the last election, a majority of the voters seem to support increased impact fees while others in the community seem to be opposed to impact fees. She then forwarded her position that it would be nice to know if the result of that election would be valid and constitutional prior to the election. 06-22-98 ...-.-..---.. - -... ..------- - 3 - Mr. Del Bakke, Executive Officer of the Southwest Montana Building Industry Association, recognized the Commission's dilemma as well as the importance of allowing the process to take its course. He then noted one of his concerns is whether the litigation will take longer than the election process and the possible backlash that could result from not getting . this issue on this year's ballot because of the litigation. City Attorney Luwe reiterated that any suit by the City would have no effect on the collection of signatures unless a Judge determines this is an administrative action and approves a request for injunction. He recognized that any decision by a District Judge could be appealed to the Montana Supreme Court, and that process could last beyond the election. He then noted that it is possible the group will not obtain the necessary number of signatures to place this initiative on the ballot. Commissioner Frost noted that the backers of the initiative could go to court or somebody could sue after it is passed because they will have to pay the fees. He then stated he would rather accept the City Attorney's assessment that this could be construed as a legislative action and let the other parties decide if a suit is to be filed. He noted the . importance of allowing this form of democracy, which gives people an outside course of action when government does something of which they disapprove. Commissioner Youngman stated that, at this point, she does not want to use tax dollars to impact the right of taxpaying voters to tell the elected officials what to do with impact fees. She then stated her support for allowing the process to run its course, noting that 2,900 signatures is more than the number of votes cast in recent local elections. It was moved by Commissioner Rudberg, seconded by Commissioner Frost, that the Commission direct staff to file a lawsuit for declaratory judgment to determine if the proposed ordinance resulting from the initiative petition to revise impact fees would be valid and constitutional. The motion failed by the following Aye and No vote: those voting Aye being Commissioner Rudberg and Mayor Stiff; those voting No being Commissioner Frost, . Commissioner Youngman and Commissioner Smiley. 06-22-98 ---.-.----- --- - 4 - Work Session - (A) Review of City Manaaer's budaet recommendations for Fiscal Year 1998- 1999 and Dossible revisions to budget (A) Review of City Manager's budget recommendations for Fiscal Year 1998-1999 and possible revisions to budget City Manager Johnson noted that the Commission has completed its review of the . individual budget units contained in his recommendations for the upcoming fiscal year and has set this as the time to identify any possible revisions to the document prior to next week's public hearing. Commissioner Rudberg commended staff for the budget document that has been presented to the Commission. She then indicated her support for proceeding with the budget as submitted, recognizing that if any unanticipated issues are encountered during the fiscal year, they can be addressed through the budget amendment process. Commissioner Youngman distributed a list of suggested revisions to the budget, briefly highlighting those proposals. She suggested that $7,000 be added to the Commission budget for hiring a consultant to begin the cable television franchising study, with those costs to be paid from reserves. She suggested that coordinating Bozeman's efforts with other jurisdictions . could be financially beneficial. Commissioner Youngman also suggested that $2,500 be added for Shakespeare in the Parks, noting this is an outstanding request which the Commission has not yet addressed. She noted an alternative might be to commit monies from this year's budget since the program is currently in progress. Administrative Services Director Gamradt stated a review of the Commission's budget unit for this fiscal year revealed that after personal computers are purchased for the Commissioners so they can receive E-mail in their homes and other anticipated purchases and costs, there will be little money left in the budget. He recognized, however, that some budget units in the General Fund will not expend all of the monies appropriated, so the proposed expenditure could be accommodated. . Commissioner Youngman then proposed that $7,200 of the HRDC contracted services costs be paid from the General Fund rather than expending the entire allowable amount in administrative costs in the Housing Fund. She expressed concern that if the full administrative fee is paid from the Housing Fund, it will deplete the fund. 06-22~98 _.__n___ - 5 - Commissioner Youngman highlighted some possible cuts in the amounts budgeted, including furniture in the City Manager's and City Attorney's budgets and the vehicle in the City Manager's budget, to cover the costs of the additions. She then proposed that monies be added to the Parks budget to cover the costs of another FTE for trail and park maintenance. . She also indicated an interest in pursing a park maintenance district as a mechanism for dealing with future budgeting challenges in this area. Commissioner Youngman stated that, as of this morning, a Library Aide II has resigned, and the Library staff is pursuing the conversion of that position to a computer technician position to alleviate some of their concerns. She recognized that the preference is to add another employee, although the newly-proposed conversion will help to address some of their immediate concerns. She also indicated an interest in adding $3,600 for substitutes at the Library, characterizing this as being different from the addition of another employee because it can easily be cut in future budgets if necessary. She noted that the Library has expanded its hours and number of employees and hours of operation without expanding the number of substitutes, and it is becoming increasingly difficult to maintain the necessary staffing levels. . City Manager Johnson characterized the conversion of the open position from a library aide to a computer technician as an administrative issue that can easily be accommodated without any budgetary changes. Commissioner Youngman noted that in this year's budget, $5,000 was budgeted for water conservation education, and only $500 of that amount has been expended. She then proposed that $4,500 be rebudgeted to continue those activities. Commissioner Frost reviewed his list, copies of which were distributed to the Commission just prior to the meeting. He noted that last week, he had prepared a list of questions and concerns and, as a result of staff responses to that list at the last work session, he has forwarded a new, much shorter list of proposed additions with a list of proposed deletions that result in a balanced budget. He then stated those changes include the addition . of $5,000 for Shakespeare in the Parks; $16,000 for another new support vehicle, $11,000 for a half-time animal control officer, and $5,000 additional monies for training in the Police Department; an additional $2,800 for park security; $3,600 for substitutes and $3,000 additional monies for repair and maintenance in the Library budget; and $23,072 for one new firefighter. He proposed that deletions to fund these additions would include $500 from band, 06-22-98 _no. _ _____ - 6 - the office furniture for the City Manager and City Attorney offices, the administrative vehicle and the columbarium. He also proposed that $5,000 be added for water conservation education and that $9,500 be added for the pup trailer for street operations. He recognized that many different departments forwarded extremely good arguments for their unfunded . requests; however, he felt these were the most critical. He then indicated that he is interested in appropriating $3,000 to $7,000 for cable television franchising, however, he was unable to balance it against any type of possible cut in the budget. Commissioner Frost stated he feels it is imperative that the City maintain two full crews in the Fire Department at all times and, with the current staffing level, 66 percent of the time crews are operating one person short. He suggested that with the hiring of one new employee, that issue can be generally resolved. Commissioner Frost then stated his biggest concern revolves around the use of reserves to balance this budget. He noted that the City has $1.4 million in undesignated reserves and under this budget, as proposed, at the end of next fiscal year, the undesignated reserves will be $ % million. He stated that, after spending a substantial amount of time . discussing this concern with Administrative Services Director Gamradt and City Manager Johnson, he is willing to accept their recommendations and hope for the best. He stressed that he hopes to avoid the problems which the City of Helena and the City of Missoula recently encountered when they were hit with major catastrophes as a result of spending down reserves. He then noted that, while growth does provide increased taxes, those increased revenues do not cover the costs incurred, resulting in the need to look at other fees. Commissioner Rudberg thanked Commissioner Frost for the information he has provided, particularly since he has identified funding sources for each of his proposed additions. Mayor Stiff stated he has quite a bit of time reviewing the individual budgets and, while he has identified some areas where he might have made some small changes, overall he feels the budget is appropriate and will support it as submitted. He noted that if any changes are . identified during the fiscal year, they can be accommodated through the budget amendment process. Responding to Commissioner Youngman, Administrative Services Director Gamradt confirmed that if the Commission makes no changes to the budget, as proposed, he will take as much of the administrative fees paid to HRDC from the Housing Fund as possible, with the 06~22-98 .-..--.-.---..- .---..- .-..--.--..-.....----.--- - 7 - remainder being taken from the General Fund. He recognized that advocates of housing don't like to see those monies used for administrative purposes, but he stressed that this is a restricted fund. He stated that the chart for this fund reveals that revenues will steadily decline from $13,500 this year to zero in the year 2018. . Commissioner Rudberg reiterated her support for the budget as submitted, noting it provides adequate flexibility for the departments. Commissioner Smiley stated her support for the budget as submitted, noting her interest in doing whatever is possible regarding cable television franchising without changing the budget. City Manager Johnson responded that, if it is determined after discussions with representatives from the City of Helena and the City of Missoula that a joint process is desirable, he may seek a budget amendment to accommodate the hiring of a consultant during the upcoming fiscal year. Responding to Commissioner Youngman, a majority of the Commissioners indicated no interest in providing funding for Shakespeare in the Parks, either out of this year's budget or . next year's budget. Commissioner Frost acknowledged that his proposed changes to the budget don't have the support of a majority of the Commissioners. He then stated that he will not vote for a budget that includes $20,000 for furniture but does not include monies to fund one additional firefighter. Commissioner Youngman expressed concern about the process, stating she has never seen a process where the Commissioners, as policy makers, have not revised the budget to reflect their position and public comment. She recognized that the staff has done an excellent job in preparing the budget document, but she senses that it may not completely reflect the Commission's desires or community needs. Commissioner Smiley forwarded her interest in listening to the public comment at next . week's public hearing prior to making a final decision on the budget. Discussion - FYI Items City Manager Johnson presented to the Commission the following "For Your Information" items. 06-22~98 - 8 - ( 1 ) Note from Joyce Lee, Secretary of the Beautification Advisory Board, dated June 15, regarding their proposal to designate July 18 as the day to pull and bag weeds in Burke Park. Commissioner Rudberg asked if this request will be submitted to the Recreation and . Parks Advisory Board at their next meeting. City Manager Johnson indicated that Derek Strahn, staff person for the Beautification Advisory Board, plans to forward additional information on this project and request that the Commission adopt a proclamation at the July 6 meeting. (2) Letter from Christopher Spogis, dated June 14, regarding the need for additional computers with Internet access at the Library. (3) Notice of the Third Annual Bozeman Storm Drain Marking Program scheduled for July 8-19, 1998. Commissioner Rudberg asked that the coordinators of this program be recognized for their efforts, particularly since this is a huge project which benefits the community. (4) Copy of a form letter regarding the need for a stop signal at the intersection . of North 19th Avenue and West Beall Street, along with letters from Felisha Genzel and Georgia Brehan regarding the same issue. (5) Copy of the Summer 1997 edition of the Tank Talk newsletter, as forwarded by City Manager Johnson. (6) Agenda for the Development Review Committee meeting to be held at 10:00 a.m. on Tuesday, June 23, in the Commission Room. (7) Agenda for the Design Review Board meeting to be held at 3:30 p.m. on Tuesday, June 23, in the Conference Room at the Professional Building. (8) Agenda for the City-County Planning Board meeting to be held at 7:00 p.m. on Tuesday, June 23, in the Commission Room. (9) Agenda for the County Commission meeting to be held at 1 :30 p.m. on . Tuesday, June 23, at the Courthouse. (10) Assistant City Manager Brey reminded the Commissioners of the Montana League of Cities and Towns District 10 meeting scheduled for 2:00 p.m. tomorrow in the Commission Room. 06~22-98 - 9 - (11 ) Commissioner Youngman requested that the possible acquisition of property for the Library be placed on an upcoming work session and that staff be asked to take a close look at this option to see if it appears to be a viable alternative. ( 12) Commissioner Rudberg noted that during the winter, City Manager Johnson . and Assistant City Manager Brey met with representatives from Senator Burns' office regarding local needs. She stated that, as a result of those meetings, $5 million of the $20 million in funds for Montana have been earmarked for water and sewer system improvements in Bozeman. She noted that the next step is for Senator Baucus to make sure that this appropriation does not become the subject of a line item veto. Adjournment - 4: 15 D.m. There being no further business to come before the Commission at this time, it was moved by Commissioner Frost, seconded by Commissioner Youngman, that the meeting be adjourned. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Frost, Commissioner Youngman, Commissioner Smiley, Commissioner Rudberg . and Mayor Stiff; those voting No, none. ~ ~~p ALF D M.~IFF: ayor ' ATTEST: ._--........~ - .'.- - "- . - .....-. Q~~~~ ROBIN L. SULbrv AN ' Clerk of tne Cmnrmssion . 06-22~98