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HomeMy WebLinkAbout1998-03-23 Minutes, City Commission MINUTES OF THE WORK SESSION/SPECIAL MEETING OF THE CITY COMMISSION BOZEMAN, MONTANA March 23, 1998 ***************************** . The Commission of the City of Bozeman met in work session and special meeting in the Commission Room, Municipal Building, Monday, March 23, 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. The meeting was opened with the Pledge of Allegiance and a moment of silence. Work Session - (A) City Parks raDort - Park SUDerintendent John McNeil: (B) Alarm ordinance - Staff Attorney Tim Cooper (A) City Parks report Included in the Commissioners' packets was a memo from Park Superintendent John . McNeil, dated March 18, 1998, forwarding information on the City's parks and his department's activities and needs. Director of Public Service Phill Forbes characterized the information included in the packets as the "state of the parks address". He said the information reflects his direction to staff to develop a list of needs based on "the sky's the limit". He stressed that the Commission has not previously seen this type of information, which includes approximately $1 million in identified needs, because Park Superintendent McNeil recognizes the fiscal constraints under which the City operates. He noted that the City's parks can be maintained at any level identified by the Commission and the community and as funded in the budget. Park/Cemetery/Forestry Superintendent John McNeil stated that, because the work cycle in this department crosses at least two, and sometimes three, fiscal years, providing accurate . information at this time of year is often difficult. He then indicated that he has nothing to add to the information he has submitted in writing, but will respond to questions. He then stressed that the information forwarded in the packet pertains to the parks only, and not to the cemetery or forestry functions. 03-23~98 -------....---. -."...--.----.,... -.-- - 2 - Responding to questions from Mayor Stiff, the Park Superintendent stated that the City is responsible for all of the parks listed except for LakePark, which is located outside city limits and is maintained by a homeowners' association. He noted that all other parks are maintained by the City, with the Montana Department of Fish, Wildlife and Parks contributing $5,000 . annually toward maintenance of the East Gallatin Recreation Area. The Park Superintendent noted that several of the parks listed are actually combined to create a larger park area, noting that Annie Park and Rose Park are located together, and three parks make up the Graf Park area. He also noted that many of the parks are interconnected with trails. Responding to questions from Commissioner Rudberg, the Park Superintendent stated that there are 44 actual parks in the community, totalling 458 acres, and the total of all parkland, trails and boulevard areas within city limits is 465 + acres. He then indicated that the tabulation includes the Recreation Complex on Highland Boulevard as well as the other parkland areas where recreational ballfields are located. Responding to Mayor Stiff, Director of Public Service Phill Forbes estimated the city's . size at five sections, or 3200 acres. On that basis, the Mayor noted that the parkland area equates to approximately 15 percent of the city's total area. Responding to Commissioner Rudberg, the Director of Public Service stressed that the information forwarded in the packet reflects what has been identified as being needed in order to do the best job the City crews possibly can do in maintaining the community's parks. He characterized the amount budgeted as having a direct impact on whether the department meets or does not meet its goals, and in measuring performances and efficiency and output measures under the new budgeting process. Commissioner Rudberg noted that every time the issue of trails is discussed, representatives from the Gallatin Valley Land Trust assure the Commission that a group has . been identified to take care of the trail. She then asked if the maintenance is being provided. The Park Superintendent responded that in some cases the trails are maintained and in others they are not. He characterized most of the trail maintenance as picking up garbage and sometimes some minor weed clean.up. He noted that the budget includes $3,000 annually for surfacing and maintenance of trail surfaces, and the Gallatin Valley Land Trust usually does that 03-23~98 ----. -.3 - work because the City does not have the equipment. He further noted that this amount also provides for some signage along the trails. Responding to Commissioner Rudberg, Park Superintendent McNeil stated that he has used people from the HRDC programs as much as possible the past few years. He noted that, . while those youth were not used in the parks last year, they were used in the cemetery. He then indicated that he has also used people sentenced to community service in the court system. He noted, however, that the duties to which those individuals may be assigned are limited, and they require essentially full-time supervision. He stated that when one of those sentenced to community service pulled a knife on his employees and took off, he stopped the program. He then stated that youth from the Montana Conservation Corps are used extensively during the summer, on trails projects and on other projects. Further responding to Commissioner Rudberg, the Park Superintendent stated that he concurs with most of the park needs identified by the Recreation and Parks Advisory Board. He noted that some of the problems can be addressed simply through adjustments in scheduling; however, he is unable to address some of the problems because of constraints. . Park Superintendent McNeil stated that maintenance of the linear parks is extremely difficult. He noted that addressing noxious weeds is a part of the program, while mowing of tall grasses and weeds not identified as noxious is not a high priority. He stated that the use of chemicals is limited because that practice is not popular with the community and it is expensive. Responding to questions from Commissioner Rudberg, the Park Superintendent stated that the park crews do not feel the forestry crews devote enough attention to the trees in the parks. He noted, however, that the arrangement was that once the forestry crews had made one pass through the entire community, they would devote time to the trees in the parks. He stated that if this is not possible, it would probably be easy to contract the tree trimming because the trees are located in concentrated areas. . Further responding to Commissioner Rudberg, the Park Superintendent stated that the City has no control over the user fees or registration fees which the various recreational groups collect. He noted that in many instances, improvements to the facilities by those groups indicate that any unexpended monies from those programs are used toward facility improvements. 03-23-98 _..... .___._____ __._.._..u._ _____._. - ..----- -.......-----.-- -.---- n._..__ -.-.-- --..------- ----.- -....-... ._n.__. .__......_.__u n_._ - 4 - Director of Public Service Forbes stated that if a group does contribute any of its funds to the City, they are deposited in the general fund and can be expended by the Park Department only if they have been identified and budgeted during the budget process or through the budget amendment process. . Responding to Commissioner Rudberg, the Park Superintendent stated that his crews watered the flowers and collected garbage in the downtown area last summer, as it has in past summers, and he anticipates that they will do so once again this summer. Responding to questions from Commissioner Youngman, Park Superintendent McNeil stated that, with the changes in the types of parks, including formal, trails and natural areas, the trends for maintenance change. He then noted that with the addition of Rose Park and Bronken Park, once they are developed, the percentages of parkland areas will once again change significantly. He then forwarded his position that the community is falling behind in larger acreage parks because emphasis has been placed on linear trails and protecting drainage areas the past few years. He noted there are currently sections of town where the youth have no place to fly a kite or participate in a pick-up game of soccer. He then cautioned that, since . Bozeman is located in an area with large natural areas and open spaces, it is difficult to evaluate its park areas against the national averages and standards. Further responding to Commissioner Youngman, the Park Superintendent characterized many of the linear parks in subdivisions as "a disaster". He noted that neighbors tend to encroach on those areas and then begin to maintain them as their own back yards. He also noted that any signs posted along such trails typically disappear within a short time. Commissioner Youngman noted that agreements reached during subdivision approvals sometimes get lost in the shuffle during the budget process. She suggested that providing the Commission with reminders of what has been negotiated during various approvals could be beneficial and would allow them to consciously not fund a project. The Commission thanked Park Superintendent McNeil for his presentation. . (B) Alarm ordinance Included in the Commissioners' packets was a copy of a proposed false alarm ordinance, as prepared by City staff. City Manager Clark Johnson stated that alarm systems are typically operated through private security providers, and the Police Department responds to any alarm calls. He noted 03-23-98 - 5 - that, because of false alarms, law enforcement personnel lose valuable time to such calls. He also noted that in some instances, the owner of the property does not respond to the alarms. He stated that this proposed ordinance is designed to allow for continued responses to alarms, but provides for fines for continued false alarms. . Staff Attorney Tim Cooper gave some national statistics, noting that 94 to 98 percent of all security alarms are false. He noted that in Seattle, 12 to 18 percent of a police officer's time on duty is spent on false alarms, at a cost of several million dollars annually. He stated that the Bozeman Police Department is encountering similar problems and is anxious to get a false alarm ordinance on the books. The Staff Attorney highlighted the provisions of the draft ordinance, one section at a time. He noted that under this ordinance, an alarm is to be discontinued within ten minutes after it starts. He stated that it prohibits automatic dialing telephone systems, which are also prohibited under State statutes. He noted that the duties of the alarm users and alarm system monitoring companies are also established in the ordinance, and a security alarm verification process is established, in an effort to reduce false alarms. He noted that the ordinance also . identifies the offense of a false alarm and establishes a $50 fine for each offense. He stated that an appeal process is also established, and a provision for determining a no-response action is included. Responding to Commissioner Rudberg, the Staff Attorney stated that the Police Department knows which businesses install alarm systems in the community. Commissioner Rudberg forwarded her support for the ordinance and stated she feels it should be adopted as soon as possible. The Commissioners thanked Staff Attorney Cooper for his presentation. Break - 3:55 to 4:00 c.m. Mayor Stiff declared a break from 3:55 p.m. to 4:00 p.m., in accordance with . Commission policy. Sianing of Notice of SDecial Meeting Each of the Commissioners, in turn, signed the Notice of Special Meeting. 03-23-98 - 6 - Ordinance No. 1464 - increasing the percentages at which street imDact fees. fire imDact fees. water imDact fees and wastewater imDact fees are assessed Previously included in the Commissioners' packets was a copy of Ordinance No. 1464, as approved by the City Attorney, and entitled: ORDINANCE NO. 1464 . AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, PROVIDING THAT THE BOZEMAN MUNICIPAL CODE BE AMENDED BY REVISING SECTIONS 3.24.050, 3.24.060, 3.24.070 AND 3.24.080; PROVIDING FOR REVISIONS TO THE PERCENTAGES AT WHICH STREET IMPACT FEES, FIRE PROTECTION IMPACT FEES, WATER IMPACT FEES AND WASTEWATER IMPACT FEES ARE ASSESSED. Included in this packet was a memo from Director of Public Service Phill Forbes, dated March 18, forwarding responses to many of the questions raised during the public hearing or by Commissioners subsequent to the public hearing. Also included in the packet was a copy of the sign-up sheet for last week's public hearing. Distributed to the Commission just prior to the meeting was an information sheet prepared by Impact Fee Coordinator Chris Saunders, showing the number of new housing units constructed inside city limits and in the jurisdictional area in 1995, 1996 and 1997. . Director of Public Service Forbes indicated a willingness to respond to questions. Impact Fee Coordinator Chris Saunders briefly highlighted the information contained on the latest sheet distributed to the Commission. He noted that this information varies slightly from the information included in Thursday's packet because the staff was unable to generate the detailed information prior to the packet deadline. Since there were no questions from the Commissioners, Mayor Stiff asked each Commissioner, in turn, to forward his or her comments. Commissioner Frost noted that revenues for the City's general fund are frozen at the present time, with the only potential for increases coming from growth. He stated that with the impact fees being at such a low level, particularly in streets, the City will be unable to generate sufficient funds to cover the items identified in the capital improvement program. . Commissioner Frost distributed three sheets, forwarding both information submitted during the public hearing and information he gathered from staff. He noted that the City has collected slightly over $1 million in impact fees, as of January 1998, out of $3.8 million possible, leaving a deficit of $2.8 million to be funded through other sources. He questioned how the City can meet two of the seven overarching goals without increasing impact fees, 03~23-98 .7- particularly since those goals pertain to proactively addressing future service demands and resource deficiencies and providing excellent and equitable public services. Commissioner Frost noted that the information submitted by the building industry showed there are a total of 583 lots available in the donut area, Belgrade, Manhattan and Three . Forks and only 1 50 lots in Bozeman. He noted that the City has recently annexed close to 1,000 acres and, based on very conservative figures, staff estimates that after subdivision, Bozeman will have 2,150 lots versus the 583 lots outside city limits. He further stressed that with the amount of property being annexed, particularly the large blocks of undeveloped land, it is readily apparent that people prefer to develop in the city rather than in the county. Commissioner Frost noted that between 1990 and 1997, an average of 77 percent of the building permits were for construction inside city limits. He noted that in 1995 and 1996, atter impact fees were implemented, the percentage of permits was 84 percent. He characterized this as a good indicator that the City is doing something right. Commissioner Frost stated that his research into the costs of septic systems revealed that they can cost $7,000 to $15,000, or they may range from $2,500 to $2,800 for a small . gravity flow system. Commissioner Frost noted that the information submitted during the public hearing revealed that Bozeman's impact fees are comparable to those of other communities around the region. He stressed, however, that the other communities are located in states with sales taxes, so they have a better revenue structure from which to draw. He stated that if local option taxes were made available in Montana, he would be very willing to reconsider the level at which impact fees are assessed. Commissioner Frost turned his attention to affordable housing in the community. He stated that two weeks ago, he looked at a new home for $105,000, which he feels would be affordable for him. He noted that the information flyer on the home revealed that there were $6,400 in impact fees and $6,400 in realtor fees on the home. . Commissioner Frost stated that the information packet submitted by the Southwest Montana Building Industry Association was very good. He noted that, while he agrees with a vast majority of the information, there are a couple of points with which he does not agree. He noted that the City's main source of income is property taxes, and stated that, while the property values underwent a reappraisal in 1997, that reappraisal is to be implemented over the 03-23-98 .--.._._..._._.~ .. ....___...____. .__.n.___n -.-...--. - ----... - 8 ~ next fifty years. He noted that Bozeman continues to grow, creating greater demands on local government services, and the property tax revenue is not increasing at the same pace. Commissioner Frost noted that the information he has reviewed reveals that developers and business people like impact fees because they provide predictability and ensure that . infrastructure needs will be addressed. He stated that under the current system, the City ends up in negotiations with developers to identify the exactions needed to make a project feasible and to ensure that the off-site needs of the community are addressed. He noted that if the City goes by its capital improvement program, a developer will know when all of the infrastructure will be in place in a given area. He forwarded his position that once the impact fees reach 90 percent, exactions will no longer be needed. He reiterated that if local options taxes become available, his position could change somewhat. Commissioner Frost stated that people come to Bozeman because of the quality of life, including the educational system, clean water and clean air. He expressed concern that the community's attraction and high taxes are pushing older residents and working class families out of the community. He noted that living outside city limits may result in lower mortgage . payments, but those savings are rapidly eaten up with increased transportation costs and infrastructure. Commissioner Frost noted that impact fees apply only to streets, water, sewer and fire. He stated that many other services are provided, including library, recreation, parks and police, with no impacts to support them. He also noted that 63 to 65 percent of the property taxes go to fund the school district. Commissioner Youngman thanked staff for their responses to the questions forwarded during and after the public hearing. She noted that she has done a lot of research on the issue of impact fees, and her stand during the election was based on that research. She noted that, based on the responses to the questions raised this past week and her own additional research, her position has not changed. She indicated that, while she is supportive of alternatives to . impact fees, none were provided during the last legislative session and no other predictable sources were identified during the public hearing last week. Commissioner Youngman recognized that the community does benefit from growth. She stressed, however, that care must be taken to ensure that an unfair tax burden is not placed on existing property taxpayers as a result of that growth. She also noted that the community's 03-23-98 . .-..-..---- .n ._.._....__n_._ - 9 - infrastructure needs must be addressed, and no other sources of funding are readily available to assist in meeting those needs. She noted that a conversation with Administrative Services Director Gamradt revealed that the City has approximately $4 million in bonding capacity, and that capacity is growing at a very slow and steady rate. She stated that if the impact fees are . not increased, those who previously supported bond issues to address infrastructure needs may not do so in the future. Commissioner Youngman stated she does not want to drive people outside the community. She noted that development outside the city limits is not really lower, particularly when one considers that drilling a well costs an average of $5,000, and septic systems range in cost from $1,500 to $10,000 and raise water quality issues. She also noted that, with some of the control over subdivision sanitation review being given to local boards of health through a recent Montana Supreme Court decision, those costs could become even higher. She also noted that costs of developing the site include installation of a driveway, installation of power and possibly the higher heating cost of propane. Commissioner Youngman turned her attention to the issue of affordable housing. She . noted that, even with full impact fees, housing could be built that costs no more than current selling prices through such measures as construction of smaller homes on smaller lots. She stated that energy efficiency measures could also help to reduce heating costs, which could offset higher impact fees. Commissioner Youngman noted that under this proposed ordinance, the exemption for commercial expansion is increased from 20 to 30 percent. She forwarded her support for this revision, stating she feels it is important to encourage the growth of existing businesses inside city limits. Commissioner Youngman noted that the community needs assessment, which the Commissioners just received, shows that 64 percent of homeowners and renters surveyed support or strongly support the impact fee policy while 14 percent oppose it. . Commissioner Youngman recognized that some concerns were raised about the City's capital improvement program working document during the public hearing. She noted that even if not all of the items listed in that document are not high priority items, a majority of them are. She also noted that there are capital projects which will surface as important over the next few years that are not currently listed in the document. 03-23-98 - 10- Mayor Stiff stated that several generations of his family have lived in Bozeman, and none of them paid impact fees. He then noted that one of his wife's favorite terms is "collage", which means "to take pieces and put them together in a different whole", stating that is what he is trying to do now. He noted that the improvements which the Commission has requested . from developers on some of the last projects, when combined with the improvements that have been offered, total about $15 million, while impact fees for all development in the last two years would have generated $3 million at a 100 percent assessment. Mayor Stiff noted that the Commission has taken the issue of affordable housing seriously, noting that the Commission has appropriated monies for that program as well as individual Commissioners digging "into their personal pockets" to address the issue. He noted that Montana is ranked 45th in per capita income and last in professional income, so it is a state-wide issue not limited just to Bozeman. Mayor Stiff reviewed the costs of impact fees for a 100,OOO-square-foot commercial building, stating that he feels full impact fees would have a negative impact on that type of development. He noted that everyone agrees commercial and industrial types of development . is a good buy, since they pay more in taxes than they require in services. Mayor Stiff noted that the pipes under the ground have not been maintained as well as they should have been in years past, so the City is now playing catch-up. He stressed that these needs cannot be funded through the use of impact fees, but must be covered through typical revenue sources. Mayor Stiff stated he is not against impact fees, but he feels they should be set at an appropriate level that will not discourage continued residential, commercial and industrial development. Commissioner Smiley stated her main concern about impact fees is the low-income housing issue. She noted that anything under $100,000 is supposed to be considered affordable for low-income families; however, it is not affordable for someone earning $20,000 . a year. She suggested that the City consider a reimbursement program for affordable housing units, so that impact fees don't negatively impact them. She also suggested that calculating impact fees based on square footages could be a way to address the issue. Commissioner Rudberg forwarded her position through a flip chart presentation. She stated that $7,000 in impact fees, spread over a thirty-year mortgage, will increase the monthly 03-23-98 . - -.".- - 11 - payments by $42.00, or $15,000 over the life of the mortgage. She noted that at the current levels, the hospital paid $85,201 for the new dialysis and cancer treatment center; under full impact fees they would have paid $308,372. Commissioner Rudberg noted that the American Planning Association advises a . community not to implement impact fees unless it has been consistently growing at 5 to 7 percent over a multi-year period; the average growth rate in Montana is 2 percent. Commissioner Rudberg reminded the Commissioners that several businesses have been expanding in Bozeman, citing Smith Barney and Big R as examples. She noted that these expansions are not just small additions to existing buildings; they are new, attractive buildings to house the businesses. Commissioner Rudberg characterized impact fees as unfair. She noted that if she were to sell her existing home and purchase a new, smaller home, she would pay impact fees but the person who bought her four-bedroom home would not pay impact fees. She identified several areas in the county where development is occurring, noting that this development is counter to what has been portrayed in presentations. . Commissioner Rudberg noted that current residents paid approximately $800,000 of the $12 to $13 million to construct the new North 19th Avenue interchange and extend North 19th Avenue. She also noted that residents have paid approximately 27 percent of the costs of constructing and upgrading the Wastewater Treatment Plant; the remainder of the costs have been paid through federal programs. Commissioner Rudberg showed a breakdown of the property taxes she pays annually, noting that over $1,000 of her $2,100 tax bill goes to schools, $200 goes to the State, $250 goes to the County and $600 goes to the City. She characterized the amount she pays for City services as a bargain, noting that the newer the home, the higher the amount of taxes paid. She also noted that since the newer homes are typically located in newer parts of the community, maintenance costs for those areas are extremely low. . Commissioner Rudberg reviewed some of the activities for which the City budgets. She noted that the Commission has appropriated $200,000 for affordable housing activities over the past few years, budgets $85,000 for senior citizen activities annually, and budgets $733,000 for the library annually. She characterized none of these as being growth related. 03-23-98 - ------ -- --- - ----- - --------- --------- - 12 - Commissioner Rudberg asserted that new development pays its own way, through installation of water, sewer, streets, sidewalks and off-site improvements, as well as dedication of open space, trails and parkland, and signing of waivers which will result in financial participation in future improvements. She stated that Costco has cost the taxpayers nothing . to date, yet they pay all of the taxes and assessments levied against them. Commissioner Rudberg stated that the cost of living in Bozeman is 2.4 percent below the national average. Commissioner Rudberg stressed the importance of remembering that impact fees must be used for new infrastructure and capacity-expanding infrastructure. Under these constraints, the fees may not be used for maintenance, which is the main issue at the present time. She also noted the importance of remembering the on- and off-site improvements being provided by many of the larger developments, noting that those improvements come at a significant cost to the developers. She also noted that the City has obtained many infrastructure connections through this mechanism and will probably continue to do so in the future. Commissioner Frost stressed that impact fees cannot be used for maintenance of the . existing infrastructure, and that they must be used for new construction or capacity expansion within a specific amount of time, He noted, however, that if impact fees are used to fund the new construction, then the other revenues can be devoted to addressing the maintenance issues. He stressed that if impact fees are not increased to the full amount, the existing taxpayers will continue to bear the additional costs of growth and the City will still be negotiating with developers to acquire the needed off-site improvements to make the project financially feasible to the community. Commissioner Frost stated that no one in the development community is losing money. He then noted that when considering the impact fees that would be paid if the percentages were increased, it is also important to consider the type of business that would be paying those fees. He noted that in the instance of Costco, the fees may seem high to an individual, but . they do not seem nearly as high to a multi-national company that makes billions of dollars annually. Commissioner Frost concluded by stating he feels the City has no option but to raise impact fees because it has no other sources of revenues through which to address the infrastructure needs of the community. 03-23-98 - 13 - Commissioner Youngman stated that with increased impact fees, the City would be in a position to ensure infrastructure is ready for development to occur in a particular area, and this is one step that helps to promote economic development in the community. Commissioner Youngman noted that the impacts on those on senior citizens on fixed . incomes and those on low incomes have been discussed extensively. She suggested that through impact fees, it may be possible to both promote affordable housing and protect the economic stability of the community. Mayor Stiff noted that the hospital will be seeking annexation of 500 acres in the near future, and he fully supports that annexation. He cited this as an instance where a large property owner may be land poor and cannot afford high development costs. At the Mayor's request, each Commissioner indicated his or her position on the proposed inrease in impact fees. Commissioner Rudberg stated her support for increasing the exemption for business expansion from 20 percent to 30 percent, leaving street impact fees at 10 percent and fire impact fees at 90 percent, and increasing the water impact fees and wastewater impact fees . from 35 percent to 50 percent. She then stated that, since the Commission must undertake a comprehensive review of the entire impact fee program in March 1999 under the current ordinance, she does not feel any additional increases in fees should be considered at this time. Responding to questions from Commissioner Rudberg, Director of Public Service Phill Forbes stated that a project must be on the capital improvement program to be eligible for funding through impact fees. He noted that the program is reviewed and updated annually, and there is also flexibility within the program that allows for the addition of projects during the year. Commissioner Rudberg then expressed concern that street impact fees and fire impact fees are being assessed at the time a foundation only permit is drawn. She noted that in some instances, foundation only permits are drawn to allow for the foundation to be installed prior . to winter weather, with no additional work being done on the structure until the following spring. She forwarded her position that impact fees should be assessed at the full building permit stage, since that is closer to the time when the impacts will actually occur. Impact Fee Coordinator Chris Saunders stated that the foundation permit is a component of the building permit, which is the trigger point for collection of impact fees. He said that if 03-23-98 - 14 - the Commission wishes, the trigger point can be amended. He recognized there are times when there is a lapse between the time the foundation is installed and the building is constructed. City Attorney Luwe stated that staff will review the impact fee ordinance to determine . where the trigger point is located and bring back a proposed revision for consideration. Commissioner Smiley stated her support for increasing the exemption for business expansion from 20 percent to 30 percent, increasing the water and wastewater impact fees from 35 percent to 50 percent, and leaving the street impact fee at 10 percent and the fire impact fee at 90 percent. She also stated her support for not establishing any additional changes in impact fees since the entire program is to be reviewed in March 1999. Mayor Stiff stated that, because of his concern about the enterprise funds, he could have supported a higher impact fee than the 50 percent proposed, but he will support it. He then stated his concurrence with the remainder of Commissioner Rudberg's proposal. Commissioner Youngman stated that while she would prefer to set the impact fees for water and wastewater at 65 percent, she is willing to compromise on 50 percent. She then . stated she feels it is important to increase the street impact fees from the 10 percent level at which they are being currently assessed. She noted that the increase will help to increase predictability for the business community and will assist the City in ensuring that the infrastructure needed for development is in place. She expressed frustration at assessing these fees at 10 percent, questioning whether the monies generated even cover administrative costs. Commissioner Frost forwarded his concurrence with Commissioner Youngman's comments about the street impact fees. He noted that two years ago, the Commission voted for these unreasonably low impact fees, and he feels they should be increased. Commissioner Rudberg stated she teels that the Duncan study on which the street impact fees are based is flawed, and increasing the tees based on that study would be inappropriate. She then noted that, through exactions, the Commission has been able to keep . pace with the street improvements needed to maintain the viability of the community, and she sees no reason to increase the street impact fees. Mayor Stiff noted that 47 states in the United States have some form of sales tax, and Montana is one of the three that do not. He stated that, until some type of sales tax or local 03-23-98 - 15 - option tax is available in Montana, the City will always encounter problems in funding its infrastructure needs. Responding to City Attorney Luwe, the Commissioners concurred that the May 10 effective date for the increase in impact fees is appropriate. . It was moved by Commissioner Smiley, seconded by Commissioner Rudberg, that the Commission adopt Ordinance No. 1464, increasing the percentages at which street impact fees, fire impact fees, water impact fees and wastewater impact fees are assessed, as amended to provide for retaining street impact fees at 10 percent, setting water impact fees and wastewater impact fees at 50 percent, and eliminating the schedule for future increases. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Smiley, Commissioner Rudberg, Commissioner Frost and Mayor Stiff; those voting No being Commissioner Youngman. Responding to City Attorney Luwe, a majority of the Commissioners indicated an interest in considering revisions to the ordinance to change the trigger point at which impact fees are assessed, to avoid the assessment of those fees on foundation only permits. . Discussion - FYI Items City Manager Johnson presented to the Commission the following "For Your Information" items. (1 ) Letter from Chad A. Groth, 701 South Willson Avenue, dated March 17, 1998, requesting that the City stop the practice of advertising events on power poles. (2) Letter of response from Betty Stroock, 1350 Story Mill Road, to City Manager Johnson, dated March 17, 1998, concerning the garbage strewn along Story Mill Road. (3) Copy of the published North 19th Avenue/West Oak Street Corridor Master Plan, as adopted by the County Commission and the City Commission in early 1997. (4) Copy of the Housing Assessment prepared by Business Services, Inc., dated . January 1998. (5) Minutes of the Tree Advisory Board meeting held on March 11, 1998. (6) Agenda for the Development Review Committee meeting, to be held at 10:00 a.m. on Tuesday, March 24, in the Commission Room. 03-23-98 .. __. n__ . -."..".-..... ..-----..--. ..- ------.-.---..- ~ 16 - (7) Agenda for the Design Review Board meeting, to be held at 3:30 p.m. on Tuesday, March 24, in the Commission Room. (8) Agenda for the County Commission meeting, to be held at 1 :30 p.m. on Tuesday, March 24, at the County Courthouse. . (9) Agenda for the Board of Adjustment meeting, to be held at 1 :30 p.m. on Thursday, March 26, at the Bozeman Public Library. Adjournment - 5:50 p.m. There being no further business to come before the Commission at this time, it was moved by Commissioner Rudberg, seconded by Commissioner Frost, that the meeting be adjourned. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Rudberg, Commissioner Frost, Commissioner Youngman, Commissioner Smiley and Mayor Stiff; those voting No, none. . ~~~-/~ ATTEST: ~~ .!~ R BIN L. SULi;IVAN . Clerk of the Commission . 03-23-98 ..-....---..-.-. ..-..-..-.---.