HomeMy WebLinkAbout1993-12-20 ccm
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MINUTES OF THE MEETING OF THE CITY COMMISSION
BOZEMAN, MONTANA
December 20, 1993
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. The Commission of the City of Bozeman met in regular session in the Commission Room,
Municipal Building, December 20, 1993, at 3:30 p.m. Present were Mayor Swanson,
Commissioner Frost, Commissioner Stiff, Commissioner Vincent, Commissioner Knapp, 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.
None of the Commissioners requested that any of the Consent Items be removed for
discussion.
Minutes - December 6 and December 13. 1993
It was moved by Commissioner Frost, seconded by Commissioner Stiff, that the minutes
of the regular meetings of December 6 and December 13, 1993, be approved as amended. The
emotion carried by the following Aye and No vote: those voting Aye being Commissioner Frost,
Commissioner Stiff, Commissioner Vincent, Commissioner Knapp and Mayor Swanson; those
voting No, none.
Exit Conference - ComDrehensive Annual Financial ReDort for Fiscal Year 1992-1993 as DreDared
bv VeltkamD. Stannebein and Bateson
City Manager Wysocki stated that the auditors, Ms. Stefeni Freese and Ms. Marjorie
Knaub, are in attendance, for the purpose of submitting the Comprehensive Annual Financial Report
for Fiscal Year 1992-1993 to the City Commission.
Ms. Stefeni Freese stated that the Comprehensive Annual Financial Report was submitted
to the Audit Committee earlier today; and they have forwarded a recommendation for acceptance
.f the report. She briefly highlighted the contents of the Comprehensive Annual Financial Report
(CAFR), noting that it is divided into four sections: Part I, Introductory Section; Part II, Financial
Section; Part III, Statistical Section; and Part IV, Single Audit Section. She noted the first section
contains a letter which was prepared by City staff. It also contains a copy of the Certificate of
Achievement for Excellence in Financial Reporting for Fiscal Year 1991-1992, as awarded to the
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City by the Government Finance Officers' Association. She noted this is the ninth consecutive year
that the City has received the Certificate; and this report will be submitted for yet another award.
The second section of the report, beginning on Page 25, is the financial section, which
provides the audited finance statements for the City for Fiscal Year 1993. Ms. Freese noted that
.the auditors have forwarded an unqualified opinion on the financial statements. noting they reflect
conformity with generally accepted accounting principles.
Ms. Freese highlighted changes from the prior year's report. These include a new
Footnote No.9 on Page 49, which reflects the prepaid rent the City has paid to the County for
renovation of the Law and Justice Center. She noted that when City operations occupy space in
the Law and Justice Center and the rent begins, this amount will decrease accordingly over the life
of the lease. She stated that Footnote No. 11, on Page 53, reflects the City's long-term debt. She
drew attention to the decrease in special assessment debt which occurred over the past few years.
She noted that in 1986, there was $9.1 million in outstanding debt for SID's; in 1990 it was $6.1
million; and in 1993 it is $4.475 million. She noted the substantial drop this year is because the
special assessment bonds for the properties in Valley Unit Subdivision were paid off. Also, the
.decrease in debt is due to the change in City policy regarding creation of special improvement
districts. Footnote No. 19, on Page 61, pertains to risk management. This footnote has been
expanded to reflect the change in medical coverage for City employees. Ms. Freese noted that the
City has changed from Blue Cross/Blue Shield coverage to a self-insured program with Blue Cross/
Blue Shield as the third party administrator.
Ms. Freese stated that the third section of the report contains statistical information. She
noted that this section is reviewed but not audited by Veltkamp, Stannebein and Bateson; however,
many of the figures contained in this section are taken from audited statements. She noted that
the one new schedule in this section is on Page 142, and reflects the insurance coverages in force
for this year and last year.
The fourth section of the report is the Single Audit Section. This section contains the
eUdit opinions on various issues as required for the City's programs which receive federal financial
assistance. Ms. Freese stated that each and everyone of the audit comments in this section
reflects no finding of material non-compliance or weakness in the City's internal control structure.
City Manager Wysocki stated that Administrative Services Director Miral Gamradt and
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Controller Peg Biekert work closely with the auditors; and they have forwarded their feeling that
the City has received a comprehensive audit.
Administrative Services Director Gamradt stated that, while the financial statements are
quite technical and difficult to comprehend, he uses the data for comparison purposes and to
_repare graphs and trend analyses.
At the City Manager's request, Ms. Stefeni Freese stated a change has been made in how
the bond coverage for the water revenue bonds is calculated. She noted that a review of the bond
covenants revealed that they specify the coverage is determined as revenues minus operating
expenses. She stated that past calculations have been made on a more complicated basis; and the
result this year was below the 125-percent coverage required. She indicated that, following the
formula in the bond covenants, the coverage is 127 percent. She cautioned that the City must
watch this coverage closely and may wish to take steps to avoid the potential of dropping below
the 125-percent coverage requirement. She suggested that possible alternatives may be to revise
the capitalization policy for replacement of water lines because the asset account does not impact
bond coverage calculations while repair and maintenance, which are considered operating
.expenses. do impact bond coverage calculations.
City Manager Wysocki reminded the Commission that failing to meet the 125-percent
bond coverage results in default on the bonds. He cautioned the Commission that in the 1980's,
the City had some problems in meeting the bond covenants for a few years. He noted that the City
has successfully met the bond covenants in the past five years; and he does not want to lose that
coverage. He then suggested that, in addition to a review of the capitalization policy, the
Commission should probably enact a rate change, noting that a 5-percent increase was projected
for this fiscal year in the three-year budget projections.
Mayor Swanson noted the volatility of the revenues in the Water Fund, stating that the
City lost approximately $150,000 this summer because it was so wet. He stated that volatility has
a significant impact on the bond coverage.
. Ms. Freese noted that the City staff, particularly Administrative Services Director Gamradt
and Controller Biekert, is extremely cooperative and makes the auditors' job much easier.
City Manager Wysocki recommended that the Commission accept the Audit Committee's
recommendation and accept the audit report for Fiscal Year 1992-1993, as set forth in the
Comprehensive Annual Financial Report.
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It was moved by Commissioner Stiff, seconded by Commissioner Vincent, that the
Commission acknowledge receipt of and accept the Comprehensive Annual Financial Report for
Fiscal Year 1992-1993, as prepared by Veltkamp, Stannebein and Bateson. The motion carried by
the following Aye and No vote: those voting Aye being Commissioner Stiff, Commissioner Vincent,
. Commissioner Knapp, Commissioner Frost and Mayor Swanson; those voting No, none.
City Manager Wysocki stated the City has completed the second year of its two-year
agreement with Veltkamp, Stannebein and Bateson. He stated that the agreement provides for an
extension of a year or years; and the Audit Committee has forwarded a recommendation that the
agreement be extended for a period of one year. He suggested that this approval be contingent
upon successful negotiation of a dollar amount, with the actual agreement to be submitted to the
Commission for final approval at a later date.
Mayor Swanson noted that this agreement has resulted in savings to the City over the
past two years, indicating his support for the recommendation.
Commissioner Stiff noted it is nice to have a local firm doing the audit. He noted that ten
years ago, the City was in such dire straits that it was necessary to have a national firm conducting
.the audits to bring some credibility to the City's books.
It was moved by Commissioner Vincent, seconded by Commissioner Knapp, that the
Commission concur in the Audit Committee's recommendation and extend the agreement with
Veltkamp, Stannebein and Bateson for a period of one year, contingent upon successful negotiation
of the dollar amount involved, with the final agreement to be submitted to the Commission for final
action. The motion carried by the following Aye and No vote: those voting Aye being
Commissioner Vincent, Commissioner Knapp, Commissioner Frost, Commissioner Stiff and Mayor
Swanson; those voting No, none.
Renewal of Beer. Wine and Liauor Licenses for Calendar Year 1994
This was the time set for renewal of the remainder of the Beer, Wine and Liquor Licenses
.or the Calendar Year 1994. A total of 15 applications have been received, along with the required
fees.
City Manager Wysocki presented to the Commission the following list of establishments
which have made application and paid the required fee:
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APPLICATIONS FOR BEER, WINE AND LIQUOR LICENSES
CALENDAR YEAR 1994
APPLICANT BEER WINE LIQUOR
TOTAL
Albertson's Food Center #237
200 South 23rd Avenue $ 200 $ 200
$ $ 400
alaCk Dog/Spanish Peaks
Brewing Company
120 North 19th Avenue 200 200
400
Bozeman Elks Lodge #463
106 East Babcock Street
500 500
Casa Sanchez
719 South 9th Avenue 200 200
400
Golden Goose Casino
726 North 7th Avenue 200 200
400
J W'S Hide-A-Way Lounge, Inc.
1 631 West Main Street
500 500
Livery Stable & Old Saloon, Inc.
dbafThe Banana Bay Bar & Grill
2825 West Main Street
500 500
.O'Brien's Restaurant
312 East Main Street
500 500
Pay less Drug Store
2825 West Main Street 200 200
400
Price Rite Drug Centers
910 North 7th Avenue 200 200
400
Red Barn Wine and Cheese Shop
1 534 West Main Street 200 200
400
Spectator's Sports Bar and Grill
19 Tai Lane 200 200
400
Town Pump
803 East Main Street 200
200
William's Pump & Pak, Inc.
2020 North 7th Avenue 200 200
400
.Willie's Saloon
1332 East Main Street
500 500
Total - 15 applications $ 2.000 $ 1.800 $ 2.500
$ 6.300
The City Manager stated that last week's listing and this listing include all currently
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licensed and operating establishments. He then recommended that the Commission approve these
applications as submitted.
It was moved by Commissioner Knapp, seconded by Commissioner Frost, that the
Commission approve the renewal of Beer, Wine and Liquor Licenses for Calendar Year 1994 for the
.various establishments as listed above. The motion carried by the following Aye and No vote:
those voting Aye being Commissioner Knapp, Commissioner Frost, Commissioner Stiff,
Commissioner Vincent and Mayor Swanson; those voting No, none.
Aooointments to Pedestrian/Traffic Safety Committee
Mayor Swanson reminded the Commission that at last week's meeting, they were unable
to fill the appointment because of a tie vote on the two nominees forwarded.
Clerk of the Commission Sullivan announced that she has received a letter of resignation
from Mr. Drenk, which creates two openings on this committee.
It was moved by Commissioner Frost, seconded by Commissioner Stiff, that the
Commission appoint Ankara EI-Auria to replace Dean Drenk on the PedestrianfTraffic Safety
.committee, with a term to expire on December 31, 1994; and appoint Shirley Sedivy to replace
Don Weaver on the PedestrianlTraffic Safety Committee, with a two-year term to expire on
December 31, 1995. The motion carried by the following Aye and No vote: those voting Aye
being Commissioner Frost, Commissioner Stiff, Commissioner Vincent, Commissioner Knapp and
Mayor Swanson; those voting No, none.
Authorize City Manager to sign - Professional Services Aareement with Morrison-Maierle/CSSA.
Inc.. for enaineerina services for installation of street. water main and sewer main imorovements
for the HRDC West Babcock housina Droiect
City Manager Wysocki reminded the Commission that he had requested this item be
removed from the Consent Items. He noted that on the Consent Items, this item was listed as a
ratification of the selection of Morrison/Maierle-CSSA, Inc., as the professional engineer for the
.uman Resource Development Council housing project. He stated that under that agenda item,
the agreement was to be between Morrison/Maierle and HRDC. He noted that, atter discussions
with various staff members, he would recommend that the contract be between the City and
Morrison/Maierle, instead.
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City Attorney Luwe stated he and City Engineer Brawner have both reviewed the
agreement, which is the standard contract for services. He stated that conversations with the
State of Montana Department of Commerce reveal they would prefer that the City be the
contracting party in this project.
. It was moved by Commissioner Stiff, seconded by Commissioner Vincent, that the
Commission authorize the City Manager to sign the Professional Services Agreement with Morrison-
Maierle/CSSA, Inc., for engineering services for street, water main and sewer main improvements
for the Human Resource Development Council's West Babcock housing project. The motion carried
by the following Aye and No vote: those voting Aye being Commissioner Stiff, Commissioner
Vincent, Commissioner Knapp, Commissioner Frost and Mayor Swanson; those voting No, none.
Discussion - FYI Items
City Manager Wysocki presented to the Commission the following "For Your Information"
items.
(1 ) Letter from Randy Wold, dated December
14, regarding the proposed
. neighborhood parking district.
(2) Memo from the Planning Office, dated December 15, forwarding a partial listing
of significant development projects recently completing the planning and zoning review processes
with relative ease.
(3) Pictures of the baling of white goods at the City's landfill. He noted that
the
recent recycling of baled materials resulted in $2,920 in revenues for the City.
(4) Copy of the memo to Mayor Swanson regarding the breakdown of building
permits issued this year.
(5) Copy of the letter sent to property owners along East Mendenhall Street and
North Bozeman Avenue regarding proposed street parking signage changes at the intersection.
Responding to Mayor Swanson, the City Manager stated this is one of the projects
eecommended in the transportation plan. He then indicated that as implementation of each
individual project is undertaken, public comment will be solicited.
(6) Agenda for the County Commission meeting to be held at 1 :30 p.m. on Tuesday,
December 21, 1993, along with daily minutes for the week of December 6.
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(7) Agenda for the Development Review Committee meeting to be held at
1 0:00 a.m. on Tuesday, December 21, at the Carnegie Building.
(8) Agenda for the Design Review Board meeting to be held at 3:30 p.m. on
Tuesday, December 21, at the Carnegie Building.
. (9) The City Manager submitted his weekly report, as follows. (1) Stated he will
meet with Doug Rand tomorrow regarding the South 11 th Avenue apartment project. (2)
Announced that Assistant Planner Dave Grigsby received notification last week that he had passed
the ICBO certification test. (3) Noted that South Tracy Avenue, just south of Main Street, was
closed for a portion of last week for installation of a fire service line. He noted that, because of
the age of the water lines in the downtown area, most projects take longer than usual because of
the additional repair work required. (4) Stated that the list of delinquent assessments certified to
the County last week contains a smaller total than usual. He also noted that some of those listed
as delinquent have paid since the list was run. (5) Announced that he has submitted a letter of
understanding of agreement to HRDC for the housing rehab loan program, at a cost of $500 per
month. He stated this will replace the half-time person budgeted in the Planning Office; and the
.costs can be paid from the administrative monies in the program. He reminded the Commission
that the GDC already is contracted for administration of the economic development portion of the
City's CDBG program. (6) Announced that Lieutenant Furu will be retiring from the Police
Department at the end of the month.
(10) Commissioner Frost stated appreciation for the opportunity to work with Mayor
Swanson and Commissioner Knapp over the past four years.
(11 ) City Attorney Luwe stated he did a presentation at Leadership Bozeman on the
operations in the City Attorney's office last week, in conjunction with Mike Salvagni's presentation
on the County Attorney's office.
(12) Mayor Swanson submitted the following. (1) Apologized to the Commissioners
if his comments in the newspaper regarding public hearings and his comment about "government
.eing messy" have generated any additional phone calls. He noted that, while his comments were
made in an expanded context, the clips in the news article were not set in that context and,
therefore, portrayed an inaccurate picture. (2) Attended the Gallatin Development Corporation
retreat this past week, where Dan Kamp, representing the Southwest Montana Building Industry
Association, made a presentation on impact fees. He noted that they started with Proposition 13
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in California, where impact fees essentially replaced taxes, at essentially the same cost to the
home buyer .
Consent Items
. City Manager Wysocki presented to the Commission the following Consent Items.
Commitment of one tree from the City's nurserY to each affordable housing
oroject aooroved durina this Dast calendar vear. as the City's
contribution
Acknowledge receiot of reauest for annexation. School District No.7 - 28.759-
acre Darcel located in the SW%. SE%. Section 24. T2S. R5E. MPM
(lvina alona the west side of South Third Avenue. south of Graf Street)
(site of new middle school)
Authorize City Manaaer to sign - Sewer and Water PiDeline and Access Easement
and Agreement - Vallev View Golf Club - 30-foot-wide easement
adiacent to Kagv Boulevard
Authorize Clerk of the Commission Sullivan to attend IIMC Region VIII
Conference in Tucson. Arizona - Januarv 12-15. 1994: aDDoint Judv
Corcoran as Actina Clerk of the Commission
Claims
It was moved by Commissioner Vincent, seconded by Commissioner Knapp, that the
.ommission approve the Consent Items as listed, and authorize and direct the appropriate persons
to complete the necessary actions. The motion carried by the following Aye and No vote: those
voting Aye being Commissioner Vincent, Commissioner Knapp, Commissioner Frost, Commissioner
Stiff and Mayor Swanson; those voting No, none.
Executive Session re Dersonnel - evaluation of City Manager and Clerk of the Commission
Mayor Swanson stated this is the time set for evaluation of the City Manager and the
Clerk of the Commission. He then stated that, pursuant to Section 2-3-203(3), Montana Code
Annotated, he, as presiding officer, has determined that the right to privacy clearly exceeds the
merits of public disclosure. Also, City Manager Wysocki and Clerk of the Commission Sullivan have
.ndicated they do not wish to waive their rights to privacy for this evaluation.
The Mayor stated that, following the closed session, the Commission will reopen the
meeting for purposes of discussing the subsequent agenda items.
Mr. AI Knauber, reporter for the Bozeman Daily Chronicle, stated his objections to closure
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of the meeting. He stated that evaluation of the City Manager should be an open process, since
it involves the implementation of public policy.
Break - 4:10 to 4:15 D.m.
. Mayor Swanson declared a break from 4:10 p.m. to 4:15 p.m., in accordance with
Commission policy established at their regular meeting of March 14, 1983.
Executive Session re Dersonnel (continued) . evaluation of City Manaaer and Clerk of the
Commission
At 4:15 p.m., Mayor Swanson called an executive session for the purpose of evaluating
the City Manager and the Clerk of the Commission and requested that all persons except the
Commissioners, City Manager and Clerk leave the room.
At 4:40 p.m., Mayor Swanson closed the executive session and reconvened the open
meeting.
Authorize Mayor to sian - EmDlovment Agreement with City Manager Wysocki for Calendar Year
.~ Mayor Swanson stated he has distributed a memo to the Commissioners, reflecting the
City Manager's current base salary of $55,692 and how increases of 4 percent, 5 percent and 6
percent would affect that base rate. He then provided comparative information on the salaries paid
to the administrators in Great Falls, Helena, Billings and Butte, noting the ayerage salary of those
communities is $63,720. He forwarded his recommendation that City Manager Wysocki be given
a 4-percent increase, plus an additional 1-percent increase to be applied toward an individual
retirement account on the basis of his evaluation.
Commissioner Frost stated support for the recommendation, stating he feels the evaluation
supports it.
Commissioner Stiff stated he has no problem with the proposed 4-percent salary increase;
.owever, he does have a problem with the additional 1 percent. He noted that the City Manager
has surrounded himself with good staff, which should be taken into consideration. He then
reiterated his position that a 4-percent increase should be the total of the package.
Commissioner Vincent stated he feels that the proposed 4-percent increase is justified.
He then requested an opportunity to further consider the additional 1 percent. He provided a brief
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salary comparison of the Governor, school superintendents, college professors and city
administrators throughout the State. He also noted the recent cuts in State monies for the
University system and the schools, noting that many people will be fortunate to maintain their
current salary levels in light of those cuts.
Commissioner Knapp stated the City is fortunate to have City Manager Wysocki and his
.ability to hire and retain good employees. She stated strong support for the proposed 4-percent
increase, stating she feels the evaluation also supports the additional 1 percent, as proposed by
the Mayor. She noted that, in general, when an entity loses an employee of City Manager
Wysocki's caliber, it costs a lot more to get a replacement.
Mayor Swanson emphasized that, even with the 4-percent plus 1-percent increase that
he has proposed, City Manager Wysocki's salary will still be substantially below the average salary
for city administrators around the State. He noted what, while Billings and Great Falls are larger
communities, Bozeman is probably facing the most challenges of any community in the state.
City Manager Wysocki requested that the Commission also address the dates of the
agreement. He noted they are typically extended for a one-year period each time it is renewed and
.asked that it be adjusted in that manner again.
Commissioner Vincent stated a willingness to support the Mayor's proposal for salary
increase. He noted, however, that increased sensitivity to increases will probably be necessary in
upcoming years, particularly in light of the cutbacks occurring at other levels of government and
the school systems.
Commissioner Stiff stated he cannot support the proposed salary increase and must,
therefore, cast a negative vote.
It was moved by Commissioner Vincent, seconded by Commissioner Knapp, that the
Commission authorize and direct the Mayor to sign the Employment Agreement with City Manager
Wysocki. The motion carried by the following Aye and No vote: those voting Aye being
Commissioner Vincent, Commissioner Knapp, Commissioner Frost and Mayor Swanson; those
.oting No being Commissioner Stiff.
Ordinance No. 1378 - Salarv Ordinance for City Manager Wysocki for Calendar Year 1994
City Manager Wysocki presented Ordinance No. 1378, as approved by the City Attorney,
entitled:
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ORDINANCE NO. 1378
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONT ANA, FIXING THE MONTHLY SALARY AND OFFICIAL BOND OF THE
CITY MANAGER OF THE CITY OF BOZEMAN, AS REQUIRED BY LAW.
It was moved by Commissioner Knapp, seconded by Commissioner Frost, that the
. Commission provisionally adopt Ordinance No. 1378, setting the City Manager's salary for Calendar
Year 1994, and that it be brought back in two weeks for final adoption. The motion carried by the
following Aye and No vote: those voting Aye being Commissioner Knapp, Commissioner Frost,
Commissioner Vincent and Mayor Swanson; those voting No being Commissioner Stiff.
Recess - 4:57 D.rn.
Mayor Swanson recessed the meeting at 4:57 p.m:, to reconvene at 7:00 p.m. for the
purpose of conducting the scheduled public hearing.
Reconvene - 7:00 o.m.
Mayor Swanson reconvened the meeting at 7:00 p.m. for the purpose of conducting the
.scheduled public hearing.
Public hearinG - aDDlication for Community DeveloDment Block Grant economic develoDment monies
- Reliable Transaction Processino. Inc.: Commission Resolution No. 2947 - authorizing submittal
of aoolication
This was the time and place set for the public hearing on the application for Community
Development Block Grant economic development monies requested by Reliable Transaction
Processing, Inc.
Mayor Swanson opened the public hearing.
Mrs. Dixie Swenson, Executive Director of the Gallatin Development Corporation,
submitted the staff report, as the City's contracted staff person on the project. She stated that
this application for CDSG economic development monies is to be made on behalf of Reliable
.ransaction Processing, Inc., and includes a request for a loan from the City's CDSG Economic
Development Revolving Loan Fund in addition to the application for State monies. She reviewed
the specifies of the application, which is for $100,000 in CDSG economic development monies
from the State. She noted, in addition, the applicants have requested a $75,000 loan from the
City's CDBG Economic Development Revolving Loan Fund. The application projects that 31 new
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jobs will be created, 23 of which will be low- and moderate-income jobs. Those positions may be
filled by an individual with no more than a high school education.
Mrs. Swenson stated that Reliable Transaction Processing, Inc., (RTP) manufactures hand-
held wireless computers. This product is currently being manufactured in Germany, with over
.4,000 units in use there. Under this application, the technology and manufacturing of these
computers would be brought to the United States. The headquarters for the company is to be in
Bozeman, with marketing, and research and development, and some assembly, similar to that being
undertaken by the adjacent companies, occurring at the headquarters facility, which is to be located
in the Westridge Technology Center. She emphasized that no manufacturing will be undertaken
at the subject location, but will be properly located in a heavy manufacturing zone.
Mrs. Swenson stated that the management and engineering staffs will be located in the
Westridge Te,chnology Center; and those positions are non-LMI positions. She stated that the low-
and moderate-income (LMI) positions will be the assemblers and field technicians.
Mrs. Swenson stated that minutes from the CDBG Economic Development Loan Review
Committee meeting held on December 9 were included in the Commissioners' packets. She stated
. that, following its review of the application, the Committee voted to recommend approval of the
requested loan from the City's Revolving Loan Fund and to recommend that the Commission submit
the application to the State of Montana Department of Commerce. She assured the Commission
that the commitment from the City's CDBG Economic Development Revolving Loan Fund is
contingent upon the success of the State application; and both of those approvals are contingent
upon the appropriate equity being provided by the applicant. She noted the expertise of the
Department of Commerce staff in reviewing this type of application, indicating that if they are
comfortable enough with the application to approve it at the State level, then it should be an
acceptable risk for the City as well.
Mr. Arnulf Simmon, President of Reliable Transaction Processing, Inc., stressed the fact
that Bozeman, Montana, was selected as the headquarters for RTP after careful consideration. He
.oted that the proximity of the University and the availability of other high tech companies that are
involved in producing similar products were important factors in the decision.
Mr. Doug Tillot, President of Gallatin Development Corporation, stated support for the
application. He stated that it meets the guidelines of the CDSG program; and the company would
benefit the valley. He noted that this application, if successful, also allows the City to expand its
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CDBG Economic Development Revolving loan Fund by increasing the amount of State monies
received. He stated this is a successful company; and the application reflects sufficient equity to
make an attractive package.
Mr. Don Kreitz, 2001 Fairway Drive, reviewed the facts, as he has derived them from
e-eading a newspaper article. He stated that it appears the applicant is seeking a $100,000 loan
through the State and a $75,000 loan from the City for a start-up company. He noted that,
following review of the application, the CDBG Economic Development Committee deemed this a
good risk and forwarded its recommendation for approval.
Mr. Kreitz stated he is concerned about this proposed business in the subject location,
noting that RTP is currently sub-leasing space from Tele-Tech. He then raised several questions
about the company and its ability to repay the loan, as well as the type of activities that are to
occur at this location. He questioned who would be responsible for repaying the loan; the projected
annual sales of the product; the market for the product; the anticipated net income; how technical
the product is; and whether the company is licensed to manufacture the product in the United
States. He noted that the potential of creating an additional 31 jobs is attractive, and suggested
. that it is possible that someone with a high school education could be trained to manufacture the
product.
Mr. Kreitz then continued with his questions, asking if the applicant has a background in
electronics; whether he lives in Bozeman; whether this is a good financial risk; whether other
financing options have been explored; whether the City has encountered any defaults on other
loans; whether there is any connection between Tele-Tech and RTP; whether Tele-Tech has any
financial interest in RTP.
Mr, Kreitz also questioned whether there is to be any manufacturing at the Fairway Drive
location, which is his main concern. He noted the subject property is zoned R-O; and he feels the
applicant should be notified that manufacturing operations cannot occur in that zoning designation.
He reminded the Commission that he previously questioned whether Tele-Tech's operations were
.acceptable in that location; and he was notified, after review, that the manufacturing activities in
that business are accessory to the main activities, which are engineering and consulting. He stated
he is not convinced of that interpretation, based on his personal observation and the fact that Tele-
Tech is listed as a manufacturing company for electronic components in a catalog.
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Mr. Kreitz asked what would happen if manufacturing were to occur at RTP's current
location. He questioned whether legal action would be taken, expressing concern that to allow
manufacturing would set a precedent. He stated there are attractive homes in the area,
representing approximately $10 million in tax base, that should be carefully taken into
. consideration. He noted that, while offices wouldn't have too much impact on their property
values, manufacturing could.
City Manager Wysocki entered into the record a letter of support from Jeff Rupp,
Executive Director of the Human Resource Development Council, dated December 17. He stated
that, included in the packet was a letter of support from Dr. Robert J. Flaherty, President of Applied
Scientific, dated December 13; and a memo from Planning Director Epple, dated December 16,
along with a copy of the letter sent to Mr. Kreitz by former Mayor Hawks, dated May 8, 1990.
Responding to Commissioner Vincent, Planning Director Epple reviewed the definitions of
"manufacturing" and "light manufacturing" under the current zone code. He stated there is no
question that some degree of light manufacturing has been involved in the Tele-Tech operations
over the years. He reminded the Commission that the Westridge Technology Center was developed
. under Conditional Use Permit for a Planned Unit Development in the late 1970's, under the old zone
code; and this type of activity was allowed as an accessory use. He stated that from what staff
knows of RTP's operation, its operation will include the types of activities that have previously been
allowed at this site, under its approved Conditional Use Permit.
Further responding to questions from Commissioner Vincent, Planning Director Epple
reminded the Commission that special use permits run with the land. He then reminded the
Commission that RTP must operate within the parameters of the zoning ordinance and the special
use permit for the subject location. He stated that the assembly of electronics products will be
allowed; however, plastic mold injection will not be allowed.
In continued response to Commissioner Vincent, the Planning Director stated that RTP
could seek a zone map change. He stated that an extensive review of the old files on this property
.suggests that the R-O, Residential--Office, zoning designation was sought at the recommendation
of the Planning Director. He noted that this change occurred before the T-R, Technology Research,
zoning designation was developed, which is the equivalent of the B-P, Business Park, zoning
designation in the current code.
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Planning Director Epple then assured Commissioner Vincent that he will carefully review
the types of activities which are to occur at the subject location, to ensure that the use is
compatible with the approved Planned Unit Development.
Responding to Commissioner Vincent, Mr. Simmon stated it is imperative that the business
. grow if it is to be successful. He showed the Commission the product which he wishes to market,
noting it is a one-pound wireless personal computer. He stated that marketing and other
administrative services are to be housed in the Westridge Technology Center. He stated that he
does not wish to violate any of the City's zoning ordinance provisions, indicating that any
manufacturing activities will be housed in another location, He noted that the manufacturing may
be located in another part of Bozeman, or it may be located somewhere else, such as Belgrade or
Livingston. Mr. Simmon stated that, according to the business plan, it may be necessary to
relocate the company within one to two years because of its growth.
Commissioner Knapp asked what bearing the location of the business may have on this
grant application. She then stated it appears that two issues--this grant application and land uses--
are becoming intertwined and confused, questioning the importance of the land use portion of this
.diScussion.
Planning Director Epple stated that, in this instance, although there is some overlap, the
grant application and the land use are essentially two separate issues. He then recommended that
the Commission act on the grant application, assuring them that he will monitor compliance with
the land use regulations. He stated that with the way in which the application is being structured,
the State will be made aware of the concerns that have been raised and will be assured that the
Planning Office will carefully review the activities to ensure compliance with the code.
Responding to Commissioner Frost, Mrs. Swenson stated that the City has sponsored
seven applications for CDBG economic development loans and has incurred no defaults to date.
She noted that collateral is required; and that is a part of the application taken into consideration
by the State in its review process. She stated that when a business seeks this form of financing,
.t has exhausted all other possible sources of financing, including banks. She noted, however, that
these are relatively secure loans.
Responding to Commissioner Stiff, Mrs, Swenson suggested that if RTP grows to the
extent that it relocates to another community prior to paying off of the loan, the business could
probably payoff the loan in conjunction with its move. She then noted that the payback period
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for this loan is relatively short.
It was moved by Commissioner Frost, seconded by Commissioner Stiff, that the public
hearing be closed. The motion carried by the following Aye and No vote: those voting Aye being
Commissioner Frost, Commissioner Stiff, Commissioner Vincent, Commissioner Knapp and Mayor
Swanson; those voting No, none.
. Mayor Swanson closed the public hearing.
City Manager Wysocki presented Commission Resolution No. 2947, as approved by the
City Attorney, entitled:
COMMISSION RESOLUTION NO. 2947
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, AUTHORIZING SUBMITTAL OF AN APPLICATION TO THE STATE
OF MONTANA DEPARTMENT OF
COMMERCE FOR COMMUNITY
DEVELOPMENT BLOCK GRANT MONIES.
The City Manager recommended that the Commission adopt this resolution, which
authorizes submittal of the application on behalf of Reliable Transaction Processing, Inc., for CDBG
economic development monies.
Commissioner Vincent stated he feels this application is a good investment. He then
.tated a willingness to let Planning Director Epple monitor the zoning issues which have been
raised.
Mayor Swanson stated he feels this is an exciting opportunity for the community.
He
characterized it as a good example of the City working cooperatively with the Gallatin Development
Corporation and the Human Resource Development Council to attract clean business to the area.
It was moved by Commissioner Stiff, seconded by Commissioner Vincent, that the
Commission adopt Commission Resolution No. 2947, authorizing submittal of the application on
behalf of Reliable Transaction Processing, Inc. The motion carried by the following Aye and No
vote: those voting Aye being Commissioner Stiff, Commissioner Vincent, Commissioner Knapp,
Commissioner Frost and Mayor Swanson; those voting No, none.
-Break - 7:55 to 8:00 D.m.
Mayor Swanson declared a break from 7:55 p.m. to 8:00 p.m., in accordance with
Commission policy established at their regular meeting of March 14, 1983.
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Authorize Mavor to sian - EmDlovment Agreement with City Manaaer Wysocki for Calendar Year
19H
It was moved by Commissioner Vincent, seconded by Commissioner Knapp, that the
Commission reconsider authorizing the Mayor to sign the Employment Agreement with City
Manager Wysocki for Calendar Year 1994. The motion carried by the following Aye and No vote:
.hose voting Aye being Commissioner Vincent, Commissioner Knapp, Commissioner Frost,
Commissioner Stiff and Mayor Swanson; those voting No, none.
Commissioner Stiff noted that this item has been resubmitted for a vote at his request,
and thanked the Commission for bringing it back. He then stated that during the break between
the afternoon and evening sessions, he further considered his negative vote on the employment
agreement. He stated that he still has concerns about the salary included in the employment
agreement; and that is the only aspect. He then stated he feels it is important that the Commission
cast a unanimous ballot on the City Manager's agreement and, therefore, would like a revote on
the motion.
It was moved by Commissioner Knapp, seconded by Commissioner Frost, that the
Commission authorize and direct the Mayor to sign the Employment Agreement with City Manager
ewYSOCki. The motion carried by the following Aye and No vote: those voting Aye being
Commissioner Knapp, Commissioner Frost, Commissioner Stiff, Commissioner Vincent and Mayor
Swanson; those voting No, none.
Adiournment - 8:03 D.m.
There being no further business to come before the Commission at this time, it was moved
by Commissioner Frost, seconded by Commissioner Stiff, that the meeting be adjourned. The
motion carried by the following Aye and No vote: those voting Aye being Commissioner Frost,
Commissioner Stiff, Commissioner Vincent, Commissioner Knapp and Mayor Swanson; those
voting No, none.
.
ATTEST:
~ c:I~
ROBIN L. SULLIVAN
Clerk of the Commission
12-20-93
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