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HomeMy WebLinkAbout1995-11-27 ccmSPEC/WORK -=- MINUTES OF THE WORK SESSION/AGENDA MEETING/SPECIAL MEETING OF THE CITY COMMISSION BOZEMAN, MONTANA November 27, 1995 ****************** *********** . The Commission of the City of Bozeman met in work session and agenda meeting in the Commission Room, Municipal Building, November 27, 1995, at 3:00 p.m. Present were Mayor Vincent, Commissioner Youngman, Commissioner Stiff, Commissioner Stueck, Commissioner Frost, City Manager Wysocki, City Attorney Luwe and Clerk of the Commission Sullivan. The meeting was opened with the Pledge of Allegiance and a moment of silence. Aaenda Meeting - for reaular meetina and Dublic hearings to be held on December 4, 1995 Since this is an agenda meeting, only those issues requiring staff action are contained in the minutes. City Manager Wysocki briefly reviewed the background information which was . included in the Commissioners' packets. (4) City Manager Wysocki noted that during the most recent legislative session, HB473 was passed; and under that new legislation, it is harder to say no to subdivision applications. Assistant Planning Director Debbie Arkell distributed copies of the questions forwarded to her by Commissioner Youngman. She reviewed some of those questions, noting that she needs more time to respond to some of the questions and issues raised. She then stated that when reviewing this application under the PUD guidelines, the staff considered the type of standard development that could occur on the site as it is zoned versus the proposed development under the planned unit development process. She cautioned that one cannot . compare the PUD to vacant ground when reviewing the proposal, or none of the criteria could be met. Responding to Mayor Vincent, the Assistant Planning Director stated that data is not available for how City-standard streets would potentially impact groundwater and storm water run-off in the area. She recognized that the 28-foot-wide streets would have more impact than 11-27-95 . -- - 2 - the proposed 24-foot-wide streets; however, those impacts have not been calculated, even though the wider streets have been recommended by the Development Review Committee. Responding to Commissioner Frost, the Assistant Planning Director stated the Commission can require that basements not be allowed in this subdivision; however, she asked . that the restriction be made a part of the covenants or a deed restriction rather than a condition that must be enforced by staff. Responding to Mayor Vincent, Assistant Planning Director Arkell stated that houses will probably be constructed on a larger footprint than they would be if basements were allowed, provided that the lot size will allow it. She then stated that with the 34-foot height restriction in the RS zoning district, the three-story houses that are allowed in Westfield Subdivision would be difficult to construct in this subdivision. The Assistant Planning Director noted there has been significant debate about the size of ponds to be encouraged in the subdivision. She stated that the type of water fowl to be attracted could have some impact on the size of ponds to be provided, since some birds need smaller ponds while others need larger ponds. She then cautioned that if the ponds are deep . and if they are located in common open areas, the potential of them becoming hazards exists. She cited the fill pond at the Fort Ellis leisure Community as an example, noting that even though the 15-foot-deep pond is located on private property, it could possibly be viewed as an attractive nuisance rather than an amenity. Responding to Commissioner Frost, the Assistant Planning Director stated that no specific plans for development of the wetlands areas have yet been provided. Further responding to Commissioner Frost, she acknowledged that more fertilizer may be placed on lawns than on agricultural lands, but the lawns will cover substantially less area. She then encouraged the Commission to consider restrictions in the covenants rather than any conditions pertaining to the application of fertilizer if they feel the issue needs to be addressed. Responding to Commissioner Youngman, the Assistant Planning Director stated that . during her review of this application, she answered none of the PUD criteria with a "no". She acknowledged that she did have some questions about the application as she went through the process; however, those questions were answered as she completed her review. Mayor Vincent requested that a copy of the Subdivision and Platting Act, as revised in 1995, be included in the Commissioners' packets for next week. 11-27-95 - 3 - Commissioner Stiff suggested that a condition be added which grants the City access to all open space areas for public utility purposes, and further stipulates that those open spaces be dedicated as easements for public utility access. He provided some tentative wording for the proposed condition, noting that it needs to be finalized prior to next week's meeting. He . stressed the importance of establishing these easements while the property is still in a single ownership, suggesting that it is in the City's best interests. (7) Commissioner Stueck expressed concern that the proposed RFP includes language about waiving of impact fees for affordable housing, which the Commission has recently learned is not possible. Commissioner Youngman noted that language is taken from the affordable housing policy, recognizing that it needs modification. (14) Following Associate Planner Patterson's review of the application, Commissioner Stueck noted that West Oak Street was originally planned as a four-lane roadway; however, only two lanes are to be constructed next year. He then asked on what alignment those two lanes are to be constructed, suggesting that could impact the location of . signage on the subject site. He also asked when construction of the additional two lanes is anticipated. (15) Assistant Planning Director Arkell reviewed the history of signage at the Main Mall, briefly highlighting the staff report. She noted that staff processed a zone code amendment requested by Main Mall, which staff was unable to support. Action on that application was tabled to allow representatives from Main Mall and possibly other large multi- tenant developments to meet with staff in an effort to develop a zone code amendment that would be acceptable. To date, no attempts have been made to prepare such an amendment. The Assistant Planning Director stated that under this application, the Main Mall wishes to keep the existing signage on the main building, which totals approximately 1,300 square feet, by seeking a variance to allow a maximum of 1,507 square feet of signage on the . building. In addition, they are requesting a 75-square-foot freestanding sign on the site. She noted that, in reality, the sign contains 31 % square feet of signage, since the monument portion of the sign is not included in the calculations; however, that is still larger than the 28 square feet allowed. She stated that staff does support the proposed freestanding sign, and 11-27-95 ------------- - 4 - is recommending that it be incorporated into a landscaped mound to bring it up to road level since its proposed location is in the borrow pit. The Assistant Planning Director stated that, after its review of the existing signage on the building, staff has forwarded no recommendation on that portion of the application. She . raised several issues which have been identified for Commission consideration, suggesting that the size of the building itself is a form of advertising. Responding to Commissioner Frost, the Assistant Planning Director stated that the Zone Code Enforcement Officer has reviewed the signs for Anthony's and Penney's and determined that they are not roof signs. She noted that if the Commission wishes, the matter could be researched further. Responding to Mayor Vincent, the Assistant Planning Director cautioned against requiring a change-out of lighting in the parking lot in exchange for allowing more signage. She then noted that the Main Mall is changing out the current light fixtures as they burn out, replacing them with hooded lights. Commissioner Frost stated his interest in taking a proactive role in amending the zone . code to more appropriately address signage for large multi-tenant structures. (16) Planning Director Epple stated that both the consultant who prepared the proposed impact fee study and the legal counsel who prepared the draft ordinance will be in attendance at next week's public hearing on impact fees. Work Session - (A) Meetina with Design Review Board re proposed zone code amendments; (B) Meeting with focus group from Chamber of Commerce re impact fees (A) Meeting with Design Review Board re proposed zone code amendments In attendance at this work session, in addition to the Commissioners, were Design Review Board members: Cliff Chisholm . Roger Cruwys Mara-Gai Katz Ed McCrone Kim Walker Walt Willett Mr. Cliff Chisholm, spokesperson for the ORB, stated that the Board has identified two concerns with the recently-adopted comprehensive zone code amendments, stressing the 11-27-95 -- - 5 ~ fact that these concerns are related to process only and not personalities. He noted that, just prior to the Commission's adoption of the amendments, the Board forwarded its concerns about the amendment pertaining to the membership of the Design Review Board. Mr. Chisholm stated the Board's main concerns are the designation of the Planning . Director as Chair of the Design Review Board, and the attendant elimination of one professional position and one non-professional position on the Board, He recognized that these amendments were precipitated by the Commission's interest in having better communication of the ORB's actions to the Commission and ensuring that the ORB meetings were run in a procedurally correct manner. He recognized the validity of those concerns, noting that at the time the amendment process was started, they were appropriate. He stated, however, that between the times the amendment process was begun and completed, the Design Review Board made several changes in the way it was operating; and he feels that the concerns which triggered the amendments have been addressed. Mr. Chisholm noted that, over the past few months, the Design Review Board has worked hard to create a recognition of the ORB as an independent body; and it had just begun . to see the benefits of that recognition when the new amendments became effective. He expressed discomfort with the perception that the ORB does not have the flexibility which it has been afforded under the zone code because of the Planning Director serving as Chair and asked that the Commission reverse the two amendments and return the ORB structure to its previous format, Mr, Chisholm stated that he feels by having the Planning Director or one of the senior staff members attending all ORB meetings, he feels the desired continuity of communication will be provided. He noted that the expertise which the Planning Director has provided under the revised format has been beneficial; and he feels the availability of that expertise should be retained, He stressed the fact, however, that the independence of the Board must be re- established. . Mr, Cliff Chisholm stated that the Board's decisions and recommendations represent a consensus of the Board members. He noted that, while he had originally testified against having non-professional members on the Board, he has come to understand their importance in the consensus building process, since they represent the community standards. He stated that some concern has been raised by Commissioners about the fact that an idea is mentioned, 11-27-95 ------- - 6 - but not carried forward into the motion and vote. He stressed the importance of recognizing that a variety of ideas and suggestions are forwarded during discussions; however, unless they receive support from the other members, they are not carried forward into the decision. Mr. Chisholm asked that, if the Commission chooses not to accept the DRB's . recommendations for amendments. it provide some clarification on the position of alternate board members. He Questioned whether the alternate members are to automatically replace regular members when they terminate or whether they are to continue in alternate capacity while someone else is appointed as a regular member. He also asked if the alternate members are to serve only to create a Quorum or if they serve when a regular member is not present. During discussion of the board composition and operations, it was noted that, initially, the Board selected a chair at the beginning of each meeting; and it was not a smooth operation. The Board recognized its problems and selected a full-time chair, thus addressing many of the problems that had been recognized. Planning Director Epple concurred with the Design Review Board's comments, recognizing that, between the time the amendments were initiated and finally adopted, which . spanned approximately eighteen months, the issues which had generated the amendments had been addressed. Ms. Kim Walker noted that late this summer, just before the amendments became effective, the Design Review Board had begun to function well and had gained recognition as an independent bOdy with which the public could be honest and open. She encouraged the Commission to process zone code amendments to reverse the new amendments as Quickly as possible, to avoid losing all that the DRB had gained. She also encouraged the Commission to address the Questions about alternate members which the Board has raised, noting it is not fair for the Board to expect alternate members to be prepared each week in case they are asked to serve. Planning Director Epple noted that the Design Review Board and the Development . Review Committee now operate under Robert's Rules of Order, which establishes the procedures for running the meetings. He recognized that it is now common to have attorneys representing clients at the DRB meetings, rather than the engineers and planners who had previously represented them; however, he suggested that with the recently-adopted regulations for meetings, the meeting procedures are well established. 11-27-95 .--... - 7 ~ Responding to questions from the Board members, the Commissioners concurred that how the board uses its alternate members is up to them, and should be covered under their policies and procedures. The Commission also recognized the importance of pursuing the requested amendments as quickly as possible. . Commissioner Stiff asked that this item be placed on the agenda for action as soon as possible, recognizing that the Commission may not take action today since this is a work session. (8) Meeting with focus group from Chamber of Commerce re impact fees In attendance at this work session, in addition to the Commissioners, were: Jim Syth Marilyn Wessel Bruce McCallum Bob White Michael Utter Sally Hickey Dixie Swenson Lyle Zimmerman Dave Sharpe Bob Hunter . Terry Profota Michele LeTendre Bill Crowley Scott Heck Mr. Michael Utter, member of the Chamber of Commerce Government Affairs Committee, stated that the Committee has recently participated in a series of focus groups with the Southwest Montana Building Industry Association about the quality of life and related matters. He noted that the results of those meetings and surveys reveal that people in the community believe in the future of Bozeman and want to preserve the quality of life in the community. He stated that issues discussed range from a pro-growth policy and the real costs of growth, to a no-growth policy and what that means. Mr. Utter stated that, through the various meetings, it has become evident that more public education is needed, to allow the public to understand the issues surrounding the . proposed impact fees. He noted that $30 to $40 million in pUblic infrastructure needs have been identified, with the notation that impact fees may not be used for those improvements. He noted that one of the questions raised is how those costs are to be covered, even if impact fees are implemented. Questions have also been raised about how impact fees would fit into 11-27-95 ~.- -. ----- - 8 - the overall picture. He recognized that the City has limited sources of revenue; however, he emphasized that the public needs to be better educated on the issues involved. Mr. Bob White, Chair of the Government Affairs Committee, stated that one of the issues which has not been addressed to date is how impact fees mayor may not affect . property taxes. He also noted concern has been expressed about the fact that the commercial base is relocating, with Belgrade acquiring some of the commercial base that was previously in Bozeman. He expressed concern that if impact fees had been in place when Wal-Mart located here, they may have chosen Belgrade rather than Bozeman; and implementation of impact fees could cause that to happen in the future. He encouraged the City to proceed with the implementation of impact fees very slowly, determining what fees can be charged without driving commercial development outside the Bozeman city limits. Mr. Utter cautioned that care must be taken not the "mix apples with oranges" when disseminating information about impact fees. He noted that in the information about impact fees that would have been assessed against Wal-Mart, it sounds like the community incurred $731,000 in costs when the store was built in Bozeman; however, in reality, those costs have . not yet occurred. Responding to comments from Commissioner Frost, Mr. Utter recognized that growth does cost, noting he has not seen anyone argue convincingly that there is a positive impact from growth. He emphasized that one of the questions which must be addressed is whether the impact fees will cover those costs of growth. Commissioner Frost noted that the transportation plan identifies $30 to $40 million in needed infrastructure improvements; and those needs have occurred over the years because the improvements were not required as a part of the approval process for developments. He noted that the taxpayers recently approved a $5 million general obligation bond issue to begin addressing those deficiencies; however, the City is now near its maximum bonding capacity, so that source of revenue is no longer available. He further noted that impacts on police . services are not covered under the proposed impact fees; therefore, property tax revenues must be used to help offset those additional costs. Planning Director Epple noted that the proposed impact fees are based on the anticipated growth of the community over the next twenty years, and the infrastructure improvements which have been determined are necessary to accommodate that growth. The 11-27-95 . --..- - 9 - facilities plans for transportation and wastewater are based on a modest growth rate of 1.8 percent, while the facilities plan for water is based on a growth rate of 1.2 percent. Based on the 1.8-percent growth rate, a population of 37,000 is anticipated in twenty years. Ms. Terry Profota stated that nobody disagrees with the need to find a way to cover . the costs of growth; the concerns which have been expressed by members of the Southwest Montana Building Industry Association revolve around the fact that impact fees may serve to drive businesses outside Bozeman city limits, so the City will receive no monies from impact fees or property taxes. Mayor Vincent noted that, while that argument makes sense, it is in direct opposition to what the consultant has stated. Ms. Profota expressed concern that Bozeman's environment is different from those environments in which the consultant has previously worked. Commissioner Youngman noted that the Commission has asked the consultant the same questions which are being raised in this discussion, and has received assurances that impact fees work well in communities of this size as well as the larger communities. . Ms. Dixie Swenson noted that care must be taken to ensure that the consultant's work in smaller communities has involved the same type of surroundings as Bozeman. She noted that, not only is there the County, where the proposed impact fees are lower, but surrounding communities which have no impact fees. She cautioned that it is important to maintain a level playing field for the entire area, not just within the city limits. She also cautioned that if commercial development is required to pay impact fees, those fees will be passed along through increased rents; and that will negatively impact small businesses. Mr. Don Hannah, member of the Board of Directors for the Southwest Montana Building Industry Association, stated that its members want to be a part of the solution. They are concerned about some of the information contained in the consultant's proposal is invalid and feel that those items need to be corrected before action is taken. He noted many people . are under the impression that builders enjoy a large profit margin in building; however, in reality, the margin is small. He cautioned that if a $6,600 impact fee is added to the cost of a single- family home, most if not all of that fee will be passed along to the purchaser because the existing profit margin cannot accommodate the additional expense. 11-27-95 - 10- Commissioner Stueck announced that he will be attending the National League of Cities Convention next week; and he intends to discuss this issue with elected officials from other communities around the United States with circumstances similar to Bozeman's, to learn more about impact fees. . Mr. Dave Sharpe distributed copies of the preliminary report entitled The Real Cost of Growth In Oregon, noting that in the article, a total of $20,000 in impacts for a new home have been identified. He noted this is substantially higher than the $6,600 in impact fees identified in Bozeman. Mr. Bob White cautioned that care must be taken when identifying the impacts to be covered by impact fees. He noted that infrastructure has a life; and after approximately twenty years, that infrastructure must be maintained. Mr. Bob Hunter noted that in the mid-1980's, Brown and Caldwell completed a number of impact fee studies for communities in Montana, including Bozeman. He recognized that those studies were limited to water and sewer services; however, he suggested that they could provide some comparative data. . Commissioner Frost stressed the importance of recognizing that at the present time, the property taxpayer is the one who bears the cost of growth and, until impact fees are implemented, it will continue. Mr. Bob White stated that from 1980 to 1990, the population of the City grew by only .5 percent per year. He cautioned that accurate growth figures must be used when projecting the costs of growth; and he is concerned that the proposed 1.8 percent growth rate may be too high. Mr. Dave Sharpe recognized that the population of Bozeman grew by only 1,000 people in the 1980's; however, between 1990 and 1994, it has grown by 3,000 people. Ms. Dixie Swenson urged the Commissioners to consider how development just outside city limits will impact the community if impact fees are implemented. . Commissioner Frost responded that he must protect the existing taxpayers of the city, realizing that growth is important. He then noted that he has no control over what the County does. Mr. Mike Utter stressed the importance of identifying the source of funding that will 11-27-95 - 11 - be used to offset those costs of growth not covered by impact fees, noting that is one of the primary questions being asked by the community. Mayor Vincent noted that the City has few options for covering those costs. Responding to Mr. Bob White, Commissioner Youngman stated the Commission would be willing to jointly seek legislative changes to broaden the choice of sources to cover costs. . She noted that in the meantime, however, she feels it is important for the Commission to implement an impact fee to offset some of the expenses being encountered by property taxpayers. Ms. Sally Hickey stated that the Board of Realtors is concerned about the negative impact that commercial impact fees could have on development within city limits. She indicated that she has served on the County's study committee since its inception. She noted that the committee determined that the only way to determine if the studies are accurate and appropriate would be to hire another consultant to do so; and that would cost approximately the same as the study itself. She then stated that, while the figures are probably accurate, she is not sure if the market can absorb the additional costs. She cautioned the Commission of the . potential that if impact fees are implemented, development may "come to a screeching halt" for a couple of years; and the City won't get any monies from impact fees. Commissioner Stiff suggested that a substantial amount of the concern in the community may revolve around perception. He noted that he has not talked to many people who are against impact fees; however, implementation of those fees, particularly on commercial properties, is of concern. Mr. Mike Utter forwarded his interest in developing a public/private cooperative to get the various institutions in the community pulling in the same direction, and to develop different ways in which to bear the costs of infrastructure improvements. Mr. Bob White stressed the importance of considering the economics of various alternatives. He noted that much of the industrial base in Bozeman has been lost; although, . a substantial amount of retail remains. Mr. Jim Syth stated he is concerned about the small businesses in the community which rent office space. He noted that at the present time, there is not an overage of office space, and the rents are quite high. He expressed concern that if an impact fee is 11-27-95 - 12 - implemented, no additional commercial office buildings will be constructed; and the rents on existing office space will increase. This cycle could be extremely difficult for small businesses. Mr. Syth noted a review of the building permits issued in Fiscal Year 1995 revealed that 91 single-family residential permits were issued; and, at the proposed $6,630 impact fee, the revenues generated would have been $603,000. He stated that permits were also issued . for 113 apartment units, 48 of which were constructed at Montana State University. Also, 42 condominium and townhouse units were permitted, 27 of which were affordable units constructed by HRDC and Interfaith Housing. He noted that the cost of impact fees for those units would have been $179,000, which would be difficult to fund through any City funding sources. Mr. Syth noted that people are pleased with the appearance of the Wal-Mart store in Bozeman; however, he noted that the cost of the products inside is higher than in the Billings store. Mr. Scott Heck stated he does not have a problem with an impact fee; however, he does have a problem with the size of the proposed fee. He noted that there are 10,600 . planed, undeveloped lots in the County which will not be subject to any impact fees because there is not permitting process in the County to trigger them. He stated that, as long as those lots are available, new subdivisions in the County may not be successful because impact fees would be added at final platting. He noted that last year, there were 4,000 building permits issued in Montana, estimating that probably 1,000 of those were in Gallatin County. He cautioned that at that rate, it will take a long time to absorb the inventory of lots. Mr. Heck noted that a similar problem could occur in Bozeman, with people avoiding the impact fees. He stated that this would result in impact fees being in place but no cash flow from the revenue source. He reminded the Commission that Valley Unit Subdivision was started fifteen years ago; and it is just now developing and becoming successful. Mr. Heck encouraged the Commission to keep these factors in mind when considering . the phasing in of fees. He noted that the short term, in this situation, could be eight or nine years. Mr. Scott Heck concluded by suggesting that the Commission consider creating an urban renewal plan for the community, similar to the one just created for the downtown. He 11-27-95 -.-- -----..- ...-.-...--.- - 13 - noted that this would allow the City to capture the tax increment and use those monies for upgrading its infrastructure. The Commissioners thanked the focus group for sharing their concerns and ideas about impact fees in this work session. . Recess - 6:02 p.m. Mayor Vincent declared a recess at 6:02 p.m., to reconvene at 7:00 p.m., for the purpose of conducting the special Commission meeting. Reconvene - 7:00 p.m. Mayor Vincent reconvened the meeting at 7:00 p.m. for the purpose of conducting the special meeting and completing the agenda from the work session and agenda meeting. Sianina of Notice of Special Meeting Each of the Commissioners, in turn, signed the Notice of Special Meeting. . Proclamation - RecognizinQ 1995 State AA Girls' Basketball Championship Team - November 30. 1995 It was moved by Commissioner Stueck, seconded by Commissioner Frost, that the Commission concur in the Mayor's proclamation, recognizing the Bozeman High School Lady Hawks as the 1995 State AA Girls' Basketball Championship Team. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Stueck, Commissioner Frost, Commissioner Youngman, Commissioner Stiff and Mayor Vincent; those voting No, none. Public hearina - Commission Resolution No. 3088 - cable television franchise ad hoc committee recommendations This was the time and place set for the public hearing on the cable television franchise . ad hoc committee recommendations, as established by Commission Resolution No. 3088, entitled: COMMISSION RESOLUTION NO. 3088 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, SETTING A PUBLIC HEARING ON THE REPORT AND 11-27-95 ----- _..___._. ._n._ --.. --.--- --- - 14 - RECOMMENDATIONS SUBMITTED BY THE CABLE TELEVISION FRANCHISING AD HOC COMMITTEE. Mayor Vincent opened the public hearing. Ms. Lynne Merrick, Chair of the committee, stated that in March 1994, the Commission created the committee, which was comprised of a diverse membership . representing media technology, education, business and interested consumers. She noted that the report which was developed by the committee, as well as information from the Missoula program and other support information, has been distributed to the Commission. Ms. Merrick stated that the committee began its work by reviewing the report from the 1983 ad hoc committee, a copy of which has been attached to this committee's final report. She stated that the 1983 committee forwarded its recommendations that (1) a cable franchise agreement be developed, (2) local access operations be undertaken, and (3) revenues from the cable television franchise fees not be placed in the General Fund. She stated that, twelve years later, this committee has concurred with those recommendations and has, in fact, incorporated them into the eleven recommendations forwarded by this committee. Ms. Merrick stated that under a franchise agreement, public access could be . negotiated, consumer protection could be provided, and system and equipment upgrades could be required. She suggested that, without a franchise agreement and attendant fees, the community is giving away its resources by allowing use of its public rights-of-way without compensation. She emphasized that the monies generated from the franchise fee would be at no cost to the City. The maximum fees allowed under federal legislation, which may be a line item on the monthly cable bill, would be 42 cents for the basic service and $1.07 for the expanded basic service. Ms. Merrick stated that a public access facility would not duplicate any of the services currently available. A survey of different types of organizations and groLips generated enthusiastic support for a public access channel and facilities as well as information technology . and services. She noted that one of the County Commissioners has indicated a potential interest in entering into an interlocal agreement for cable television franchising to extend into the area around the city that is being served by cable service. Ms. Lynne Merrick stated that 17 public institutions are currently being provided with free cable television services. She suggested that through a franchise agreement, such services 11-27-95 - 15 - could also be negotiated for low-income institutions and nursing homes. She concluded by forwarding the committee's recommendations that the City enter into negotiations, with the assistance of a professional negotiator, for a franchise agreement, that a public access channel be sought, and that only those monies needed to cover the City's administrative costs be . subtracted from the total with the remainder being used to support the public access facilities. Mr. Erik Nelsen, committee member, addressed the benefits of franchising and public access, as follows. (1) For citizens, the franchise agreement could specify the minimum service allowed and the maximum rates allowed, which could result in a greater selection of channels and programs. Also, through a public access channel, greater access to local government proceedings could be provided, as well as greater access to documents through an on-line service. (2) For the community as a whole, consumer protection could be assured. He noted that since control would be at the local level, the needs of the customers could be better addressed. Also, through the public access channel, the community can be better informed, both on local and worldwide issues. (3) For local government, documents can be filed on a server, providil1g faster response to citizen concerns. Also, through airing of local governing . body meetings, the public can be better informed, which could lead to more public participation and a more responsive decision-making process. (4) For business, electronic access to markets will allow for greater exposure. Also, through the possible addition of channels, businesses will have more opportunities for advertising and reaching a larger audience. He noted that through expanded technical features, such as cable as a medium to access on-line services, worldwide exposure could be gained. (5) For education, more educational programming eQuid be gained through expanded channel capacity. Also, the capability for program creation will take students from the role of passive consumer of electronic programming into exploring new tools and how to use them. He noted that this will allow students to be better prepared for dealing with the worldwide economy, and possibly allow those who are raised here to remain here to work and live. . Mr. Nelsen concluded his presentation by encouraging the Commission to accept and implement the committee's recommendations, noting that this will allow Bozeman to move toward the electronic future. Ms. Elizabeth Healy, committee member, read into the record a letter from Mary Canty, Missoula Community Access Television (MCAT), dated November 27, which she had 11-27-95 - 16 - forwarded because of her inability to attend this public hearing due to the icy road conditions. She indicated that more than 2,000 residents of Missoula have been trained in the use of the television production and editing equipment since the public access facility opened in April 1990. Programming includes local sports activities, local government meetings, and programming completed by middle school students as well as high school students. . Programming produced by or selected by local residents averages 225 hours per month, with 72 percent of that programming being produced locally. Ms. Canty indicated that MCAT, which is a non-profit organization, is guided by a volunteer board comprised of 15 community members. Sources of revenue include franchise fees, which total $110,000 annually, as well as grants, donations and other sources of revenue. Ms. Canty suggested that negotiations for the franchise agreement include representatives of those organizations which could benefit from community access, including education and essential public service providers. She noted that the franchise fees can be assessed on the gross revenues of the cable television provider; and those fees do not significantly impact the revenues of the cable provider. She encouraged the Commission to . select a cable negotiator in whom it has confidence to negotiate with someone from a regional office, such as the Denver office. She also indicated that a franchise agreement must be designed for the unique characteristics of the community, and that it should be designed to accommodate changes anticipated over the next five to ten years. Ms. Canty closed her letter by forwarding her willingness to travel to Bozeman at a later date, if the Commission wishes to obtain additional information on community access television. Mr. Dennis Mayer reviewed the recommendations forwarded by the cable television franchising ad hoc committee, as follows: 1. That the City begin negotiations to grant a non-exclusive franchise to TCI Cablevision of Montana, Inc., for the operatio~, maintenance and improvement of a cable television system for the . vicinity of Bozeman. We further recommend that the City use a professional telecommunications negotiator and that citizen involvement be an integral part of the process. 2. That the franchise grantor (the City) recover its costs related to negotiating the franchise agreement from the cable operator. This includes negotiations costs, lawyers' compensation and the l'ike. We further recommend that the term of the franchise agreement reflect the extent of periodic evaluation of the community's needs and the cable systems' ability to meet those needs. 11-27-95 --... --. _.". - 17 - 3. That the City explore the feasibility of getting County cooperation to include the entire area adjoining the Bozeman city limits served by the cable provider. 4. That a franchise fee not less than the maximum allowed by law (currently 5 percentl be assessed on gross cable operator revenues. . 5. That franchise fees collected beyond actual and reasonable City expenses go exclusively to public access telecommunications development. 6. That franchise fee revenues be placed in an escrow or trust account until a public access telecommunications plan is ready to implement. 7. That in order to establish a Community Access Telecommunications Center, a committee be appointed to research and oversee the planning for such facility, concurrently with franchise negotiations, to include community gateways to the global information network and a cable television station with provisions for Public, Educational and Government (peEeGI access channels. 8. That the franchise agreement include an upgrade of the cable operator's system for greater channel capacity and the option of interactive services. 9. That the cable operator provide the capability for multi-camera feeds from public buildings such as City Hall, the County . Courthouse, the Library and the high school for live broadcast of public meetings and events. 10. That the cable operator place its cable feed in all new service areas according to rules established by the franchise agreement. 11 . That the City require compliance with the consumer protection provisions of the prevailing cable acts and other federal regulations. Mr. Mayer drew attention to the graphics prepared by Mr. Jim Vernon, committee member, showing the home page for the City of Phoenix and the first page of the Bozeman Daily Chronicle on-line service. Mr. Justin Bergeron, Film and Television student at MSU, stated his support for a local public access facility, noting it would provide access to MSU students as well as the community. He noted that the facilities for developing programming would be better; and the . end product could be shown to a wider audience than is currently available to the MSU students. Ms. Beth Spangelo and Ms. Jennifer Royal, eighth grade English team teachers, submitted their team testimony. Ms. Spangelo stated that they do a film unit as a part of the English class; and a public access television production facility would provide the area needed 11-27-95 - 18 - to accommodate 125 students creating films in a short period of time. She also noted that the films, which pertain to a variety of teen issues, could be of better quality since they would be developed in a professional studio. Ms. Royal stated that, through a public access television facility, the films could be . shown to a wider audience than is currently available. She noted that this could further enhance the students' class work. Mr. Art Wolf, Director of the Museum of the Rockies, noted that he had forwarded a letter of support, dated November 21, 1995. He reiterated some of the comments in that letter, noting that several educational videos, as well as videos on lectures,. demonstrations and classes could be made available to a broader range of people, from young children to the elderly and the homebound, through public access television. Ms. Clara Pincus stated she is enthusiastic about the possibility of public access television in Bozeman. She stated that, as a former resident of the Bitterroot Valley, where she served as a volunteer for the public television station, she is excited about the opportunities which it provides. She characterized the monies paid for cable television service as expendable . income, noted that the costs of the franchise fee would not take food of anyone's table. She stated that these facilities would provide a learning tool not currently available to the students in the community. Also, public access facilities would provide those with limited mobility an opportunity to view educational programs as well as local government meetings and allow them to more fully participate in the community's affairs. She then encouraged the Commission to enter into a franchise agreement with the cable television provider, noting it provides a winning situation for everyone. Mr. Rodger McCormick, retired educator and current businessman, stated his enthusiastic support for a cable television franchise agreement. Mr. Bill Hall, Director of the Unit of Curriculum and Instruction in the Department of Education at MSU, stated the public access television could benefit the teacher preparation . program at MSU. He noted that currently, the University places substantial demands on the secondary schools in the area because of the number of student teachers to be placed. He stated that, through interactive access, one classroom could provide an alternative to student teaching that would benefit thirty education students rather than just one. 11-27-95 -. - ~ - 19 - Ms. Ellen Nesset stated her support for public access television, noting it could be used to provide services to disadvantaged individuals and the homebound. She noted that programs such as head start education and possibly the first time homebuyers' classes could be aired on a public access channel. Director of Libraries Steve Cottrell stated his support for a community access e television station, noting that it would help to further some of the Library's goals. He noted that through a community access channel, the citizenry could be better informed. Also, through installation of a fiber optic cable system, the capacity for providing information would be greatly expanded. He stated that special programs at the library, such as storytelling, author visits, book discussion clubs, political forums, workshops and public meetings in the Community Room could be televised. He also noted that videos of those sessions could be made available to the community. Mr. George Kremidjier, owner of the Computer Museum, stated that he travels on a worldwide basis; and Bozeman has "one of the lousiest cable systems" in his travels. He stressed the importance of upgrading the existing cable system as Quickly as possible, e comparing cable to an enormous highway being pushed through the Bozeman area. He encouraged the Commission to create a "fourth on-ramp" for Bozeman, three of them along the interstate and one of them on the cable television system. Ms. Jane Summerfield, local television producer and former teacher, stated her support for the proposed cable television franchising and community access programming, noting that such programming can serve as a cohesive factor for the community. Mr. Duane Melling, Head of the Department of Education at MSU, stated he has served in the educational field for 25 years. He noted that when he first began teaching, he was told that 50 percent of the jobs that would be available to the first graders had not even been thought of at that time; and the current job market reflects that. He Questioned what the job market will look like in the next ten to twenty years, stating that access to worldwide . exposure is important. He encouraged the Commission to approve the committee's recommendations, noting that public access is important in the educational opportunities for the community. Ms. Eleanor Wend, committee member, stated that she was raised in Bozeman, and returned after being gone for several years. She noted that, as a member of the committee, 11-27-95 - 20 - she learned about the beneficial services that would be available through franchising. She stated that, as an adult educator, she recognizes the benefits that could be available to parents of small children and shut-ins, through educational opportunities made available on the public access television channel. . Mr. Jim Vernon, committee member, stated that he talked to people in the community, both formally and informally, about cable television franchising, obtaining their input on the subject. He noted the result was that not anyone stated opposition to the idea of cable television franchising. Mr. Bill Freese, instructor in the Media Center at MSU, stated that he has just returned from a conference on Internet and connecting schools through an interactive network. He noted that the results from this type of program in other communities have shown that annual projections are often met within three months because the programs are so well accepted. He characterized this as an opportunity to step into the future, and encouraged the Commission to accept the committee's recommendations. Mr. Dan Smith, committee member, stated his support for many of the comments . which have been made by previous speakers. He noted that the Internet began in the 1960's, and the worldwide web has been available for several years. He stated that just recently, use of that web as dramatically increased, with 100,000 web sites on August 30, 1995, and 215,000 web sites on October 23, 1995. He noted that with this increase in availability of worldwide information, it is important to consider television's capabilities as a multi-media tool and provide the opportunities to use it as such. Ms. Doris Loeser, teacher and producer, stated that public access television enhances the cultural lives of the community through increased communication. She stated that via modern communications, the education provided by schools can be enhanced. She further noted that, through using production equipment and doing tapes, the mystifying elements of media re dramatically reduced. . Mr. Bill Merrick, 717 South Tracy Avenue, entered into the record his letter of opposition, dated November 27. He noted that he served on the 1983 cable television committee, upon whose recommendations the Commission never acted. He noted that he had also owned and operated KBMN radio station, served as an adjunct professor at MSU, and helped to start KUSM, as a public television station. 11-27-95 - _._u____ - 21 - Mr. Merrick expressed concern that development of a franchise agreement with the existing cable television company would, in effect, be a defacto exclusive agreement and preclude competition. He noted that the fees paid to the City will not be paid by the cable television company, but will be paid by the consumers. Also, through a franchise agreement, . the cable television company would be regulated by the local governing body rather than by the State. Mr. Merrick also expressed concern about the fact that pornography can be carried on the public access television channel. He cautioned that it is extremely difficult to control the content of the programming, noting that the channel will be used by all types of groups to air their views and programs. He suggested that if a subscriber to cable television services does not want to watch the public access channel, he or she should not be required to pay for it, and should not have it on the cable service. Mr. Merrick concluded by asking that the Commission not enter into a franchise agreement or create a public access channel. Mr. Dale Williams stated it is his understanding that if one cable television company . has access to a community, that company does not have competition. He stated that most of those who subscribe to cable television services have at least the expanded basic service; and he does not believe that the additional fee for franchising would negatively impact those subscribers. He then encouraged the Commission to allow Bozeman to prepare for the 21 st century by entering into a franchise agreement. Ms. Rita Rosier noted the testimony submitted by various people in the field of education, and the importance of providing students an opportunity to work with media equipment. She recognized that students must be provided with opportunities to become productive and prepare for the future job market. Responding to Commissioner Stueck, Ms. Lynne Merrick stated that only the 5- percent franchise fee may be passed through to the customer. She noted that the costs any . of any upgrades and equipment which are negotiated through the agreement are paid by the cable television provider. Mr. Dennis Mayer noted that the additional items negotiated through a franchise agreement are viewed as part of the costs of doing business within a community and may not be passed on to the consumer under federal regulations. 11-27-95 ___.u_ - 22 - Further responding to Commissioner Stueck, Mr. Mayer stated that last year, Congress set the allowable cable rates. He noted that if Congress allows the cost of upgrades to be passed along to the consumer, it would be a maximum 5-percent increase. Mr. Erik Nelsen stressed the importance of identifying capital costs, noting that those . costs cannot be directly passed through to the consumer. He noted that last January, the City Commission adopted a resolution granting them the authority to regulate basic and expanded basic services. He stated that the company has not paid dividends on their capital investments and systems, but have put any revenues received back into upgrading their equipment and services so they can remain competitive. He recognized that, like all good businesses, the company does recoup its investment through the sale of services, adding to the customer base whenever possible. Responding to additional questions from Commissioner Stueck, Mr. Nelsen stated that there are few exceptions to the First Amendment rights, noting that any control on content of programming on cable television, including public access channels, is very limited. He noted the Courts have ruled that obscenity is not subject to protection under the First Amendment. . He then noted that homosexuality has been identified as one of the most highly protected forms of political expression and is, therefore, protected by the First Amendment. He then stressed the fact that under a franchise agreement, more television channels could be required. Responding to concerns forwarded by Commissioner Stueck, Ms. Clara Pincus stated that parameters for programming on a public access channel can be set. She noted that in Missoula, programs not suitable for viewing by children may not be aired until after 10:00 p.m. City Manager Wysocki entered into the record letters of support from the Humane Society, dated November 22, 1995; American Red Cross, dated November 22, 1995; City- County Health Department, dated November 22, 1995; notes from a telephone call from Diana McDunn, dated November 27; Human Resource Development Council, dated November 22, 1995; Margaret Kumlien, dated April 9, 1995; Great Rocky Mountain Toy Company, dated . November 27, 1995; Emerson Cultural Center, dated August 27, 1995; Vigilante Theatre Co., dated November 27, 1995; Natural Resources Conservation Service, dated November 16, 1995; MSU Department of Education, dated September 28, 1995; Dr. Paula Butterfield, Superintendent of Schools, dated November 17, 1995; Museum of the Rockies, dated November 21 1995; and Clara Pincus, dated November 21, 1995. Also, distributed just prior 11-27-95 --.--.-."..-....--- - 23 - to the meeting, was the letter of opposition submitted by Mr. William Merrick, dated November 27, 1995. Responding to Mayor Vincent, Mr. Mayer stated that in major communities, there are multiple cable television providers, with each of those providers having a franchise agreement . with the governing boay. He statea that. while it aoes not seem economically feasible to have another cable television provider in Bozeman, there are no prohibitions on another provider coming into the community. He noted that if the City had a franchise agreement with TCI Cablevision, the new provider would be expected to enter into a similar agreement. He then encouraged the Commission to enter into a franchise agreement as quickly as possible, noting that the window of opportunity could be closed if Congress passes legislation that precludes any future franchise agreements. Responding to questions from Mayor Vincent, Mr. Don Branton, General Manager of TCI Cablevision, stated that there are approximately 1,000 customers in Belgrade, 400 in Manhattan, 800 in Gallatin County outside Bozeman city limits and approximately 8,500 customers in Bozeman. He cautioned that if the City decides to negotiate a franchise . agreement with TCI Cablevision, only those customers inside the Bozeman city limits will pay the 5-percent franchise fee, although the programming from Bozeman serves the County residents and Belgrade residents as well. He noted that the City of Belgrade already has a franchise agreement with TCI Cablevision. Responding to suggestions from City Manager Wysocki, Mr. Branton stated it would be extremely costly and labor intensive to scramble the public access channel and then install descramblers in the homes of those who want the service. He noted, instead, that the public access channel would be included in either the basic or expanded basic service. Responding to Commissioner Youngman, Mr. Branton stated that the current 4~cent charge on the monthly cable television bill is for the accountants and attorneys who have been retained by TCI Cablevision; and this charge is allowed by the FCC under its regulatory . standards for cable television. He then noted that, whenever possible, the cable television company uses the telephone and power poles, paying an annual rental fee for the use of those poles. Responding to Commissioner Youngman, the Commissioners indicated that Ms. Canty does not need to make a presentation prior to taking action on this item. 11.27-95 - 24 - Mayor Vincent closed the public hearing. He then requested that the decision on this item be placed on next week's agenda. Discussion - FYI Items . City Manager Wysocki presented to the Commission the following "For Your Information" items. ( 1 ) Memo from Historic Preservation Officer Derek Strahn, dated November 22, notifying the Commissioners of the Northern Pacific/Story Mill Historic District nomination. (2) Invitation to attend the Chamber of Commerce luncheon meeting to be held at noon on Monday, December 4, at the GranTree Inn. (3) Invitation to attend the Holiday open house to be held at the Montana Center for International Visitors from 4:00 p.m. to 6:00 p.m. on Thursday, December 7, at their office. (4) Agenda for the Montana Transportation Committee meeting to be held on Thursday, November 30, in Helena. (5) Agenda for the County Commission meeting to be held at 1 :30 p.m. on . Tuesday, November 28, at the Courthouse. (6) Agenda for the Development Review Committee meeting to be held at 10:00 a.m. on Tuesday, November 28, in the Commission Room. (7) Agenda for the Design Review Board meeting to be held at 3:30 p.m. on Tuesday, November 28, in the Commission Room. (8) Notice of a meeting with business owners along West Main Street, scheduled for 6:30 p.m. on Tuesday, November 28, at the Emerson Cultural Center. Adjournment - 9:05 p.m. There being no further business to come before the Commission at this time, it was moved by Commissioner Frost, seconded by Commissioner Stueck, that the meeting be . adjourned. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Frost, Commissioner Stueck, Commissioner Stiff, Commissioner Youngman and Mayor Vincent; those voting No, none. 11-27-95 - 25 - ATTEST: ~e (j~ J ~;1d~ _ ROBIN L. SULLIVAN Clerk of the Commission e . 11-27-95