HomeMy WebLinkAbout1995-10-09 ccmWORK
MINUTES
OF THE WORK SESSION/AGENDA MEETING
OF THE CITY COMMISSION
BOZEMAN, MONTANA
October 9, 1995
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. The Commission of the City of Bozeman met in work session and agenda meeting
in the
Commission Room, Municipal Building, October 9, 1995, at 3:00 p.m.
Present were Mayor
Vincent, Commissioner Stiff, Commissioner Stueck, Commissioner Frost, City
Manager
Wysocki, City Attorney luwe and Acting Clerk of the Commission Corcoran.
Commissioner
Youngman was absent in compliance with Section 7-3-4322(2), M.C.A.
The meeting was opened with the Pledge of Allegiance and a moment of silence.
Work Session - (A) Discussion re format for imDact fee ordinance - Plannina
Director EDDie
(B) Discussion - DrODosal for refinancina of water revenue bonds
(B) Discussion
- proposal for refinancing of water revenue bonds
Administrative Services Director Miral Gamradt reminded the Commission
of their
_ authorizing staff to contract with Daln Bosworth to assist in refinancing of the City's water
bonds. He stated that last week the committee, comprised of several staff
members and
Commissioner Stiff,
met with Mr. Huntington to review the various options available.
Currently, the rate on the outstanding bond issue is 7.48 percent interest;
and the City is
considering refinancing of those bonds solely for the purpose of reducing
the interest rate. He
then reviewed the information contained on the sheet he had distributed,
directing the
Commissioners' attention to the "option" column and the" 12-1-95 present
value savings"
column.
He reviewed the various options, noting that at the present time, the advance
refunding option must be used because the bonds outstanding at this time
cannot be called;
rather, an escrow account must be used to service the bonds until 1997,
at which time all of
the bonds may be called.
He noted that if the Commission decides to wait until 1997, the
. current refunding procedure could be utilized. He recognized that if assurances could be given
that interest rates would not change over the next two years, then waiting
the two years would
be the best option, generating the best savings rate. He noted, however,
that interest rates
can easily moved 1 percent over just a few months; and Mr. Huntington has
recommended that
the refunding be done now through the use of rated bonds.
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City Manager Wysocki noted that having bonds rated will cost approximately $7,500,
thus reducing the benefit to $18,000. He suggested that this is a good time to have the bonds
rated, given the Water Fund's good financial position.
Commissioner Stiff noted it would be nice to wait until 1997 to use current refunding
. options; however, he recognizes the gamble that would be involved, and he feels it would be
prudent to undertake the refunding now. He then stated his support for the financial advisor's
recommendation.
Responding to Mayor Vincent, the City Manager stated that this item will be placed on
next week's agenda for action.
The Administrative Services Director stated that the City will pursue a competitive bond
sale for refunding of the revenue bonds. He then noted the City is considering the refunding
of debt for the Lyman Creek improvements, if it can be done to the City's benefit.
The City Manager noted that, if enough packet information is available, staff will place
this item on the consent agenda for next week's meeting.
(A) Discussion re format for impact fee ordinance - Planning Director Epple
. Planning Director Andy Epple distributed a memo dated Dctober 9. in which he provided
the estimated costs of the WalMart project and what the impact fees would have been. He
reviewed those figures, noting that the total cost of the project was just under $5 million, and
the impact fees would have been an additional $738,000. He stated
that the off-site
improvements, which totaled $70,000, would be deducted from that amount, lowering the
total to $688,000, or 13.37 percent additional costs. He noted that, atter taking inflation into
consideration, that percentage would probably drop to around 13 percent for impact fees.
The Planning Director highlighted the costs of purchasing single-family lots within the
city limits versus lots outside the city limits, based on today's multiple listing service. He noted
that the city lots are approximately one-quarter acre in size, with an average cost being
$25,767. These lots include water, sewer and street improvements, which are required as a
. part of the subdivision process. He noted that the lots outside city limits, which range in size
from one-half to one acre, are an average cost of $34,000. In addition,
a $4,000 sewer
system and a $2,000 well are typically needed, thus raising the cost of the lot. He suggested
that these figures reinforce the idea that people are moving to the county by choice and for
amenities rather than to avoid the high costs in the city.
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Responding to Commissioner Frost, the Planning Director stated that WalMart paid only
$70,000 toward off-site improvements; and no one else picked up the remainder of the costs.
Mayor Vincent noted that, even though the identified costs cannot be actually billed for
projects, the Commission can assume that these impacts are real and that, sooner or later, they
. will have to be paid.
The Planning Director noted that a growth rate of 1.8 percent per year has been
projected through the year 2010; and the proposed impact fees are designed to mitigate the
impacts which development will have on the infrastructure, including capacities, over the
twenty-year period.
Mayor Vincent noted that there are two distinct markets for lots, and that people are
choosing to live in the city or in the county, depending on a number of factors. He suggested
that the Commission recognize the realities about what is actually occurring, taking those items
into consideration when setting impact fees.
City Manager Wysocki reminded the Commission that the market sets the value of the
lots available; and the prices on those lots may vary at different rates.
e Mayor Vincent stated an interest in knowing what percentage of county lots are served
by "standard" septic systems that are installed for $4,000 and what percentage have more
costly septic systems.
The Planning Director noted that State regulations are changing, and what were the
exceptional systems are now becoming the standard systems.
He noted that the current
estimate for on-site sewage disposal systems is $5,000.
Responding to the City Manager, the Planning Director stated that the City has paid
$59,000 for the total package of impact fees, which is separate from the County's funding of
$100,000. He noted that the City's costs were substantially lower because
of the recently-
completed facilities plans, which were prepared by a consulting engineering firm.
The Planning Director stated that the consultant is to provide a draft ordinance for
. impact fees and has indicated that revised impact fee studies and a draft ordinance could be
prepared within ten working days. In addition, the contract provides
for the consultant to
appear during the public hearings plus a trip to train staff on calculating impact fees, if they are
adopted. He then suggested that the public hearing on the impact fee studies
could be
scheduled for November 13 if the Commission chooses, noting that the date has not yet been
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verified with the consultant or coordinated with the County.
He briefly reviewed options
available to the Commission, noting that preparation of a draft ordinance is part of the contract;
however, the Commission may choose to not conduct a public hearing on the ordinance and
to not implement the proposed impact fees. He stated that the Commission should consider
. whether it wishes to move forward with impact fees in conjunction with the County, or if it
wishes to move forward separately.
Commissioner Stiff stated he feels it is important to begin with the proposed
$2,092
impact fee for the County and the proposed $6,769 impact fee for the City and then add the
other costs associated with maintaining a household. He suggested that these costs must be
graphically shown if the City is to consider a higher impact fee. He also noted the importance
of the City and the County continuing to work together, particularly in light of the process to
date. He stressed the importance of developing figures, upon which everyone
agrees, to
provide accurate comparisons of costs, rather than strictly using the totals for the proposed
impact fees.
Responding to concerns forwarded by Commissioner Stiff, the Planning Director
. suggested that during a public presentation, the consultant could be asked to assure the public
that the implementation of impact fees does not represent a duplication in contributions toward
specific infrastructure projects.
Planning Director Epple recognized the benefit of generating comparative
costs, as
suggested by Commissioner Stiff. He cautioned the Commission, however, to remember that
people choose to live in the city or in the county for different reasons, not just the costs
involved.
Mayor Vincent enumerated some of the additional costs of living in the
county, including
fire protection, fire insurance and transportation costs, that play into the overall marketing of
the lots, although they may not be factored into the costs of a lot. He then recognized that
the County must take additional steps to implement impact fees, since they do not currently
. require a building permit.
Commissioner Stiff stated that a conversation with County Commission Chair
Kris Dunn
earlier today revealed that the County would like to see Belgrade and Manhattan possibly
become involved in the implementation of impact fees. He questioned how
much catch-up
work this would involve.
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The Planning Director noted that when the steering committee was created a year ago,
the other communities were invited to participate; however, they chose not to do so. He then
noted that one strategy which has been discussed is that impact fees be implemented in
Bozeman and Gallatin County first, before considering the implementation of impact fees in the
. other communities.
Responding to Commissioner Stueck, Planning Director Epple stated that the studies will
be the basis upon which the ordinance is prepared. He proposed that the ordinance stipulate
the fees will be established by resolution so that the fees can be periodically adjusted. He then
asked the Commission to consider the issue of how it wishes to handle institutions, such as
schools, libraries and governmental buildings. He noted that it is common to exclude those
facilities, although they are included in some communities. He stated that, while the issue does
not need to be resolved prior to the hearings, it does need to be resolved prior to final adoption
of the ordinance.
Further responding to Commissioner Stueck, City Attorney Luwe noted the consultant
has forwarded the proposed impact fees. He stated that comments
on those fees can be
. received during the public hearing; and the Commission can base its decision on all of the input
- - received. He further noted that if the Commission decides to set the fees through a resolution
rather than through the ordinance, it can conduct a separate hearing on the fees if it so
chooses.
Commissioner Stueck stated that it appears several groups will oppose impact fees for
businesses, although no one seems to object to impact fees for residences.
Planning Director Epple noted that the issue of affordability has been discussed
throughout the process; and that is one which the Commission must address in the
establishment of fees. He also noted that phasing of fees is another issue
to be considered,
indicating that in some communities, the fees are phased in over six to nine months.
Responding to Commissioner Frost, the Planning Director stated
he feels that
e adjustments to the impact fees can be developed through use of a spreadsheet.
City Manager Wysocki stated he would be interested in what the impact fees would be
for a typical 8,OOO-square-foot commercial building in the city limits, suggesting that
information could be beneficial when considering the proposed fees.
He noted that, if the
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Commission wishes, it could implement a cap on the amount of impact fees to be assessed for
any project.
Commissioner Stiff stated he feels information on what the impact fees would have
been for projects like ILX Lightwave and Dana Designs would be beneficial, noting that
. Bozeman may need to compete with other communities in Montana, such as Butte, for this
type of development. He emphasized the importance of ensuring that the implementation of
impact fees makes sense.
The City Manager stated that the figures which have been developed by the consultant
reflect the items identified in the various facilities plans. He noted that the Commission has
the political power to adjust those figures as it deems necessary to address the local issues and
concerns. He further noted that major developments, such as large new shopping areas and
schools, have a major impact on infrastructure requirements, particularly streets.
Responding to Commissioner Frost, Planning Director Epple noted that several different
sources of funding, other than City monies, are being used to address some of the projects
identified in the transportation plan.
. Director of Public Service Forbes noted that the transportation plan identifies costs
involved in fixing deficiencies in the existing transportation system, as opposed to providing
more capacity and expansion directly related to growth. He noted that those items must be
considered when trying to reconcile the numbers in the impact fee study to the transportation
system improvements.
Responding to Planning Director Epple, City Attorney Luwe cautioned that the City
Commission's public hearing on a proposed ordinance must be held under the Commission's
rules and procedures, rather than in conjunction with the County. He noted that this does not
precluded the two governing bodies from working together when scheduling the public hearings
and implementation dates.
Commissioner Stiff stated it is his understanding that the County Commission wants to
. conduct a joint work session prior to reaching the public hearing stage. Following
a brief
discussion, the Commission concurred that a joint work session would be appropriate, possibly
on October 23 or October 30.
The Planning Director briefly highlighted potential public hearing dates, cautioning that
if impact fees are to be implemented, it would be best to have the fees effective in January,
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so that a minimal number of development projects are in process.
Mayor Vincent thanked staff for the information provided, noting that good
base
information is essential in making the necessary decisions.
. A\Jenda Meeting - for regular meeting to be held on October 16. 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) The
City Manager stated that under this agenda item, the amount to be loaned
for extension of the water main for Comstock Apartments, is to be set at
$65,000, with
repayments to begin in the third year and extend over fifteen years. He
reviewed the support
information provided by Mr. Dabney, noting the objective is to ensure an
annual coverage of
120 percent for the project. He forwarded staff's recommendation for approval
of this request,
particularly in light of the fact that this is an affordable housing project.
. Responding to Commissioner Stueck, City Attorney Luwe stated that if State
statutes
are applicable to this project because of the use of public monies, then the lowest responsive
bids for the project must be accepted. He then noted that he needs an opportunity
to further
review the issue to determine whether those statutes would be applicable
in this instance.
Commissioner Stiff stated he is interested in having that question answered
at next
week's meeting, noting it is a critical issue.
He then noted his support for staff's
recommendation, assuming that the cash balance concerns are appropriately
addressed.
(15-17)
Assistant Planning Director Debbie Arkell reminded the Commission that
when considering zone map amendments, only the proposed zoning designation,
and what is
allowed is that zoning designation, may be considered.
She cautioned that no specific
development proposal may be considered at this time, particularly since
no formal application
. for development has yet been made for any of the parcels involved.
Discussion - FYI Items
City Manager Wysocki presented to the Commission the following
"For Your
Information" items.
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( 1 ) Copy of a letter from Connie J. Onstad, HOME Program, dated August
18, 1995,
confirming that a public hearing on the draft consolidation plan is to be held from 6:00 to 7:30
p.m. on Tuesday, October 10, in the Commission Room.
(2) Letter to the Bozeman Area Chamber of Commerce Governmental Affairs
. Committee, dated September 28, inviting members to attend a breakfast meeting with City
Commission candidates at 7:30 a.m. on Wednesday, October 11, at the GranTree Inn.
(3) Memo from City Engineer Craig Brawner, dated October 3, 1995, forwarding
the
October 1995 Transportation Projects Status Update.
Responding to Commissioner Stueck, the City Manager confirmed that work on the
traffic signal at the intersection of South 19th Avenue and West COllege Street is in process.
He indicated that the next status report will be appropriately updated.
(4) Copy of a letter from the City-County Health Department to Don Alderson,
Mountain Mobile Estates, dated September 28, 1995, regarding the continuing wastewater
system problems.
Responding to a question raised by Commissioner Stiff, the City Manager stated that
. a sleeve was not installed under the new highway; rather, the intent is to jack and bore under
the roadway at a later date.
(5) Note from former Commissioner Mary Vant Hull, forwarding an article entitled
Downsizing Cities, as published in the October 1995 issue of The Atlantic Monthly.
(6) Letter from Wayne Ricks, American Legion Post No. 14, requesting the next
vacancy on the Cemetery Board be filled by a member of one of the local Veteran groups.
The City Manager encouraged the Commission to consider this request when filling
upcoming positions on that Board.
(7) Invitation from Ray Heagney, dated October 3, 1995, to attend dedication
of the
Bozeman Ponds as the newest Bozeman city park on Saturday, October 21 .
The City Manager noted that Commissioners are also invited to attend a breakfast
. meeting of the Bozeman Breakfast Optimists at 6:45 a.m. on Monday, October 16, at the
GranTree Inn. He encouraged any Commissioners interested in attending that
meeting to
contact the Clerk of the Commission's office within the next couple days.
(8) Informational sheet entitled Recyclable Items in Bozeman and How to Prepare
Them, as prepared by the Bozeman Community Recycling Coalition.
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(9) Agenda for the Gallatin County Commission meeting to be held on Tuesday,
October 10, at 1 :30 p.m. in the Courthouse Community Room.
(10) Agenda for the Development Review Committee meeting to be held at 10:00
a.m. on Tuesday, October 10, in the Commission Room.
. (11) Agenda for Ihe Design Review Board meeting to be held at 3:30 p.m. on
Tuesday, October 10, in the Commission Room.
( 12) The City Manager submitted his weekly report, as follows. (1) Stated
that Carl
VanderMolen, Fire Department employee, had a heart attack on Saturday and had at least six
bypasses done today in Billings. (2) Announced that Gordon Duntsch,
Captain at the Fire
Department, lost a daughter in a car wreck this past week.
(3) Noted that the development
community is working diligently to complete projects or get them enclosed so they can work
inside. He further noted that asphalt plants will continue to operate as long as there is 500
weather, since that is the minimum temperature at which asphalt can be successfully laid. (4)
Announced that the Urban Renewal Plan was presented to the City-County Planning Board last
week. He reminded the Commission that the Board has 60 days to act on the proposed plan
. and forward a recommendation to the City Commission; and he anticipates the process will not
take that long. (5) Met, at the Montana League of Cities and Towns Convention, with seven
legislators to discuss the legislative session and what might happen in the next year or so. At
the same meeting the Governor discussed taxes and the future in cities and towns. (6) Stated
that Bozeman received, for the second year in a row, the award for having the lowest
experience modification factor in the MMIA Workmen's Compensation program. (7) Noted that
the Board of Appeals will meet with the City Attorney's staff to review duties and statutory
requirements at 7:00 p.m. on Wednesday, October 11, at 7:00 p.m. (8)
Announced that
signalization of the intersection of North 19th Avenue and Durston Road is on the Department
of Transportation Commission agenda for October 12. The bid is being advertised, with bids
to be opened on October 23; and work will start immediately upon opening. The estimate for
. installation of the signal is slightly over $50,000.00, with improvements to the Durston leg of
the intersection, which may require some right-of-way acquisition, being in addition to that
estimate. He noted that if these intersection improvements are installed in compliance with all
Federal regulations, any City contribution should be considered a part of the match for the
overall North 19th Avenue project.
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( 13) City Attorney luwe submitted the following. (1) Stated that the
recent article
in the Bozeman Daily Chronicle entitled Free Speech, pertained to the free speech sign at the
intersection of North 7th Avenue and West Main Street.
He noted that staff is proceeding
against the whole lot area and not just the sign in question.
He provided some background
. information for the Commission, as follows: the sign as an illegal sign; roof signs are
prohibited; the sign does not have a permit; enforcement action against illegal signs occurred
before the non-commercial message was erected; and a non-commercial message does not
make the sign less illegal. He noted that, through proper signage, a non-commercial message
may be erected. He further noted that the code requires a certain procedure for addressing sign
code violations, which includes causing a complaint to be filed against the property owner. He
characterized this as abatement of an illegal sign, which is one of the points Mr. Claus stressed
in his recent presentation to the Commission. (2) Announced that Staff AttorneylProsecutor
Tim Cooper attended a one-day course in Missoula on criminal law, to meet continuing
education requirements.
(14) Acting Clerk of the Commission Corcoran announced that on October 17 or
18,
. she will be changing jobs, moving from the Clerk of the Commission's office to the library.
Adiournment - 5:20 D.m.
There being no further business to come before the Commission at this time, it was
moved by Commissioner Stueck, seconded by Commissioner Frost, that the meeting be
adjourned. The motion carried by the following Aye and No vote:
those voting Aye being
Commissioner Stueck, Commissioner Frost, Commissioner Stiff and Mayor Vincent; those
voting No, none.
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VINCENT, Mayor
. ATTEST:
~ 1( &., 1rl n..,. J
JUDY K. C RCORAN . -
Acting Clerk of the Commission
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