HomeMy WebLinkAboutCity of Bozeman Specialty License Plates Revenue Allocation and Process DeterminationCommission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Brit Fontenot, Assistant to the City Manager
Chris Kukulski, City Manager
SUBJECT: City of Bozeman Specialty License Plate Revenue Allocation and
Process Determination:
1) Establish the City of Bozeman’s specialty license plate
renewal/donation fee;
2) Determine an existing revenue fund or establish a new fund for
the revenue collected from the renewal/donation fee for City of
Bozeman specialty license plates;
3) Determine the timeline for a July 2010 issuance of Bozeman’s
specialty plate; and
4) Determine a process by which the final specialty license plate
design is selected.
MEETING DATE: August 24, 2009
AGENDA ITEM TYPE: Action Item
RECOMMENDATION: 1) Consider setting the City of Bozeman’s specialty license
plate renewal/donation fee amount at $25.00 (See I
below);
2) Consider allocating the renewal/donation fee as follows:
$20.00 dedicated to a newly established parks and
recreation fund and direct the remaining $5.00 to the
Emerson Cultural Center’s “Schools in the Gallery”
Children's Art Program (See II below);
3) Consider approving the proposed timeline culminating
in a July 2010 issuance of City of Bozeman’s specialty
license plate (See III below); and
4) Consider approving the proposed two tiered design
selection process (See IV below).
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BACKGROUND:
On July 20, 2009, by a vote of 5-0 on the Consent agenda, the City Commission authorized the
City Manager to sign and submit an application for a specialty license plate on behalf of the City
of Bozeman (Attachments 1 and 2). The application is currently under review by the Motor
Vehicle Division of the Montana Department of Justice.
Currently there are four unresolved issues related to the City of Bozeman’s specialty license
plate: I) renewal/donation fee; II) renewal/donation fee allocation; III) timeline; and IV) design
selection process.
I. Renewal/donation fee amount
As part of the specialty license plate application, the City of Bozeman (City) is required to
establish a renewal/donation fee. This is the amount paid by an applicant for the purchase or
renewal of a City of Bozeman license plate, the fees from which may fund various projects or
programs.
It is important to note that upon a first time application for any specialty license plate, “initial
fees” will apply. Initial fees are the sum of the $15.00 administrative costs, split 50/50 between
the County and the State, and the renewal/donation fee required by the City for the purchase of
the City’s specialty plate.
Average fees for the following specialty license plate categories are (Attachment 3):
a) Governments and Communities $18.75
b) Arts and Culture $20.00
c) Parks and Environment $20.00
d) Sports and Recreation $24.00
Staff recommends a renewal/donation fee in the amount of $25.00. This amount is slightly
higher than the average for government and community plates but is consistent with the fees
associated with some sports and recreation plates and parks and environment plates.
If approved as recommended, a total one-time cost of $40.00 will be assessed at the time of
purchase of a City of Bozeman specialty license plate. Thereafter, $25.00 will be required for
renewal. Vehicle registration fees may also apply.
II. Renewal/donation fee allocation
Staff recommends that the Commission establish a fund in the Parks and Recreation
Department and direct $20.00 of the renewal/donation fee to park and recreation
improvement projects, including but not limited to those itemized on the current Parks
Division capital improvement program project list (Attachment 4).
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There is no accurate way to predict the amount of revenue a specialty license plate program will
generate for the City. While municipalities researched have recovered costs associated with the
application and marketing of their respective specialty plates, yearly collection amounts may
vary. Consideration should be given to the notion that renewal/donation fees collected may
complement existing Parks and Recreation budgets and not serve to replace existing general fund
allocations.
The Director of Parks and Recreation, along with divisional management staff could be
responsible for allocating the funds within the parameters suggested in this memo, i.e. park and
recreation improvement projects.
Additionally, Staff recommends that the remaining $5.00 of the renewal/donation fee be
directed to the Emerson Cultural Center’s (the Emerson) “Schools in the Gallery”
Children's Art Program (Attachment 5). The Schools in the Gallery program is a
comprehensive, interdisciplinary arts education curriculum designed to enrich arts education for
1,200 urban and rural K-12 students in Gallatin Valley schools.
Finally, Staff recommends that the distribution of the renewal/donation fees into any new
fund or to any other entity begin only after the application fee and marketing costs are
recovered by the City.
Staff has prepared three additional renewal/donation fee allocation options (Attachment 6).
There are numerous additional combinations available that are not shown in this report.
III. Proposed Timeline
ss
Staff recommends a July 2010 distribution of City of Bozeman specialty license plates and
thus proposes the following timeline:
1) October, 2009 – Issue a call for artists to submit designs for Bozeman’s specialty
license plate;
2) December, 2009 – Committee juries the entries and selects the top three (3);
3) January, 2010 – Bozeman City Commission selects one of the top three as the final
design;
4) January/February, 2010 – Market and advertise the final design;
5) March 1, 2010 – Submit the application fee ($4,000.00) and final design proposal
6) April 30, 2010 – Secure all DOJ departmental approvals; and
7) July 2010 – Bozeman’s specialty plate is released to the counties for sale to the
public.
IV. Design and Selection Proce
Staff recommends a two tiered selection process.
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Tier 1
In October 2009, the City and the Emerson will place a general “call to artists” soliciting
designs based on the design criteria found in the application packet (Attachment 1). The
“call” would remain open for 2 – 3 months (October – mid to late December) and a
committee consisting of 4 – 5 judges from both the City of Bozeman staff and the
Emerson Cultural Center staff will select the top three designs for submission to the City
Commission for final selection.
Tier 2
In January 2010, the top three designs will be judged by the Bozeman City Commission
and a winner will be chosen by this elected body.
V. Conclusion:
As a recent article in the Billings Gazette points out, specialty license plates have the potential to
complement funding for various community programs and organizations (Attachment 7).
Currently there are approximately 130 specialty license plates approved in the State of Montana
supporting a wide variety of governments, non-profits and other organizations. Each
municipality contacted has recovered application and marketing fees associated with creating a
specialty plate. Additionally, it is common for municipalities to direct funds collected from this
source to multiple projects and programs. It is important, however, not to excessively dilute the
renewal/donation fees.
The renewal/donation fees collected have the potential to complement important projects and
activities in the community. Increased funding may improve the ability of the Parks and
Recreation Department to replace and/or repair playground or recreation equipment, better the
condition of the sports fields or aid in the completion of various capital improvement projects.
Partnering with the Emerson reveals several unique opportunities. The Emerson has the
experience and knowledge to direct a call for artists and organize tiers 1 and 2 judging of the
designs. Additionally, the Emerson possesses marketing skill and capacity. Finally, the
Emerson’s Schools in the Gallery represents a community-wide arts program dedicated to
enriching arts education for children. Coupled with the recommended establishment of a fund to
improve parks and recreation equipment, facilities or other tangible parks and recreation related
projects, this partnership package has the potential to enrich both the bodies and minds of our
community.
FISCAL EFFECTS: The specialty license plate application fee is $4,000. If approved,
the deadline for submittal of all fees and materials is March 1, 2010 for a July 2010 specialty
plate release. The $4,000 application fee and $2,000 plate design and/or advertising costs are
included in the FY10 City Manager’s Recommended Budget. Based on the State’s process,
plates will not be sold and these initial costs recovered, until FY11.
ALTERNATIVES: As suggested by the City Commission
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Respectfully submitted,
Brit Fontenot Chris Kukulski
Assistant to the City Manager City Manager
Attachments: (1) July 20, 2009 City Commission Packet Information, RE: City of Bozeman
Specialty License Plate Application
(2) July 21, 2009 letter submitting Specialty License Plate Application
(3) Selected Specialty License Plate Designs and Fees
(4) CIP General Fund Project List
(5) 2009 Emerson Cultural Center’s Schools in the Gallery Brochure
(6) City of Bozeman Specialty License Plate Renewal/Donation Fee
Allocation Proposals
(7) July 26, 2009 Billings Gazette Article: Specialty Plates Raise Funds for
Various Projects
Report compiled on: August 25, 2009
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CITY OF BOZEMANCAPITAL IMPROVEMENTS PROGRAM GENERAL FUND PROJECTSRef # -----------Projected Costs by Fiscal Year----------- NotProject Title Department/Division SCORE FY10 FY11 FY12 FY13 FY14 Total ScheduledGF-053 POLICE CARSPOLICE63 192,000 199,680 207,667 215,974 224,613 1,039,934 GF-052 INVESTIGATIVE DIVISION VEHICLESPOLICE6325,000 25,000 25,000 25,000 25,000 125,000 GF-080 REMOTE CLOSET SWITCH AND ROUTER REPLCMT IT DEPARTMENT5040,000 40,000 40,000 40,000 40,000 200,000 GF-114 SWIM CENTER DRAINSRECREATION5026,500 26,500 GF-016 1/2 TON FLEX FUEL 4X4PARKS DIVISION4850,000 25,000 75,000 GF-005 HALF-TON FLEX FUEL PICKUP TRUCKCEMETERY DIVISION4825,000 25,000 GF-110 SWIM CENTER UV DISINFECTION SYSTEMRECREATION4755,000 55,000 GF-104 ENERGY UPGRADESFACILITY MAINTENANCE4730,000 30,000 30,000 30,000 30,000 150,000 GF-115 BOGERT POOL DRAINSRECREATION4676,500 76,500 GF-062 SERVER AND PC REPLACEMENTIT DIVISION4590,000 90,000 100,000 100,000 100,000 480,000 GF-105 SENIOR CENTER STROBESFACILITY MAINTENANCE3918,000 18,000 GF-103 ADA COMPLIANCE FACILITY MAINTENANCE3915,000 15,000 15,000 15,000 15,000 75,000 GF-094 FIRE DEPARTMENT TRAINING FACILITYFIRE DEPARTMENT3874,880 74,880 GF-031 PARK IMPROVEMENT GRANTSPARKS DIVISION37 150,000 150,000 150,000 150,000 150,000 750,000 GF-084 PARKS RESTROOM UPGRADESPARKS DIVISION37 150,000 175,000 175,000 175,000 - 675,000 GF-010 CEMETERY MOWER REPLACEMENTCEMETERY DIVISION3513,000 13,000 13,000 13,000 14,000 66,000 GF-071 MATERIALS FLOW MANAGEMENT SYSTEMLIBRARY37 134,000 134,000 GF-050 POLICE AND MUNICIPAL COURT FACILITYPOLICE/COURT6517,300,000 17,300,000 GF-102 LINDLEY CENTER DECKRECREATION4134,000 34,000 GF-051 ANIMAL CONTROL VEHICLEPOLICE5122,000 22,000 GF-106 EXCHANGE CLUSTER REPLACEMENTIT DEPARTMENT5050,000 50,000 GF-099 IBM I5 REPLACEMENTFINANCE4745,000 45,000 GF-034 LARGE DECK LAWN MOWERPARKS DIVISION4348,000 - 48,000 96,000 GF-023 REPLACE BOGERT PARK TENNIS & BB COURTS PARKS DIVISION4090,000 90,000 GF-092 PLAYGROUND EQUIPMENT REPLACEMENTSPARKS DIVISION3750,000 50,000 50,000 150,000 GF-100 4x4 TRACTOR WITH BUCKETPARKS3375,000 75,000 GF-006 3/4 TON FLEX FUEL PICKUP TRUCKCEMETERY DIVISION3230,000 30,000 GF-108 PARK SIDEWALK REPLACEMENTSPARKS2735,000 31,000 82,000 148,000 GF-079 NETWORK CORE SWITCHESIT DEPARTMENT50150,000 150,000 GF-055 BOGERT POOL REPAIRSRECREATION47300,000 300,000 Page 416 173
CITY OF BOZEMANCAPITAL IMPROVEMENTS PROGRAM GENERAL FUND PROJECTSRef # -----------Projected Costs by Fiscal Year----------- NotProject Title Department/Division SCORE FY10 FY11 FY12 FY13 FY14 Total ScheduledGF-076 SENIOR CENTER DINING HALL FLOOR REPLACE FACILITY MAINTENANCE3930,000 30,000 GF-065 AERIAL PHOTOGRAPHYIT DEPARTMENT3795,000 95,000 GF-083 CEMETERY BACKHOECEMETERY DIVISION42110,000 110,000 GF-030 ARTICULATING TRACTORPARKS DIVISION35100,000 100,000 GF-064 VEHICLE REPLACEMENTPLANNING DIVISION3520,000 20,000 GF-113 PARKS 3/4 TON REPLACEMENTPARKS DIVISION4826,000 26,000 GF-048 PLANNING COPY MACHINE REPLACEMENTPLANNING DIVISION3725,000 25,000 GF-090 ADDITIONAL TENNIS & BASKETBALL COURTSPARKS DIVISIONProject- 100,000+GF-091 OFFLEASH DOG PARKSPARKS DIVISIONProject- 45,000 EAGF-075 STACK LIGHTING FOR LIBRARY SHELVESLIBRARY55- 225,000 GF-056 COMMUNITY RECREATION CENTERRECREATION44- UNKNOWNGF-061 OUTDOOR FAMILY ACQUATIC CENTERRECREATION33- 5,000,000 GF-067 PROFESSIONAL BUILDING PARKING LOT LIGHTS FACILITY MAINTENANCE30- 28,000 GF-004 4x4 1-TON FLATBED TRUCKCEMETERY DIVISION30- 40,000 GF-098 STORY MANSION IRRIGATION SYSTEMPARKS28- 30,000 GF-111 EAST GALLATIN IRRIGATION REPAIRSPARKS28- 50,000 GF-074 PUBLIC ADDRESS SYSTEM LIBRARY27- 31,000 GF-001 PROFESSIONAL BUILDING ELEVATOR REPLACE FACILITY MAINTENANCE25- 65,600 GF-068 HISTORIC RESOURCES INVENTORY UPDATEPLANNING DIVISION23- 360,000 GF-112 ROSE PARK PARKING LOTPARKS22- 60,000 GF-109 FILM AND FICHE SCANNERLIBRARY20- 15,225 GF-008 EXPAND CURRENT CEMETERY OFFICECEMETERY DIVISION20- UNKNOWNGF-036 CENTRAL IRRIGATION SYSTEMPARKS DIVISION18- 100,000 PW-01 SHOPS COMPLEXPARKS DIVISIONUNKNOWN1,164,880$ 18,541,680$ 1,411,667$ 1,173,974$ 649,613$ 22,941,814$ 6,004,825$ Page 517 174
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Proposal 1 - ($25 Renewal/Donation Fee) - Partnership ProposalInitial Fees (once, per plate) Renewal/Donation Fee (per plate) Allocation Scenario$25.00City of Bozeman $25.00 City of Bozeman$20.00City of Bozeman Parks Fund*$15.00State/County Split (Admin.)$5.00Emerson Cultural Center's Schools in the Gallery Children's Art Education Program$40.00 $25.00Proposal 2 - ($25 Renewal/Donation Fee) Non-partnership ProposalInitial Fees (once, per plate) Renewal/Donation Fee (per plate) Allocation Scenario$25.00City of Bozeman $25.00 City of Bozeman$25.00City of Bozeman Parks Fund*$15.00State/County Split (Admin.)$40.00Proposal 3-($20 Renewal/Donation Fee) Partnership ProposalCity of Bozeman Specialty License Plate Renewal/Donation Fee Allocation ProposalsProposal 3 - ($20 Renewal/Donation Fee) Partnership ProposalInitial Fees (once, per plate) Renewal/Donation Fee (per plate) Allocation Scenario$20.00City of Bozeman $20.00 City of Bozeman$15.00City of Bozeman Parks Fund*$15.00State/County Split (Admin.)$5.00Emerson Cultural Center's Schools in the Gallery Children's Art Education Program$35.00 $20.00Proposal 4 - ($20 Renewal/Donation Fee) Non-partnership ProposalInitial Fees (once, per plate) Renewal/Donation Fee (per plate) Allocation Scenario$20.00City of Bozeman $20.00 City of Bozeman$20.00City of Bozeman Parks Fund*$15.00State/County Split (Admin.)$35.00*proposed177
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