The Bozeman Transportation Board spent much of its August 26 meeting examining two major policy questions: whether to authorize valet parking services in the public right-of-way and how to fund a crowded capital improvement agenda facing a substantial revenue shortfall.
On the valet parking issue, the board conducted a work session—not a vote—to guide staff on key policy questions before an ordinance is drafted. The current municipal code lacks language authorizing valet services, even though two existing valet operations in downtown operate under outdated provisions. Staff has received three new requests for valet permits, prompting the need for new regulations.
Staff proposed a relatively simple code amendment adding valet services to the existing temporary parking regulations section, with permits issued administratively by the Department of Transportation and Engineering. The board discussed five possible fee methodologies: pure operational cost, replacement cost, market value of parking, past precedent, and opportunity cost. Board members expressed support for a combination approach, with several converging on an annual fee structure around $4,000 to $5,000 per parking space, calculated roughly equivalent to $1 to $1.50 per hour for metered parking, adjusted for downtown overnight parking restrictions. The board emphasized fees must be annual rather than one-time to allow flexibility and prevent the city from losing control of parking rights, citing a cautionary example from Chicago. The board also discussed whether existing valet operations should be brought under the new fee structure, with staff noting this requires legal review. One disclosed conflict of interest did not affect board member Simon's participation, as staff confirmed no action items would come before the board tonight.
The capital improvement discussion proved more consequential. Director Nick Ross and Parking Manager Nick Focken presented a five-year capital plan (fiscal years 2028–2032) facing significant funding pressures. While the city is seeing favorable construction cost corrections—approximately 20 percent lower bids than 2023–2025 levels due to increased contractor competition—it must contend with a $5.5 million gap between projected arterial and collector district revenue ($10.5 million) and proposed spending ($16 million) for priority projects.
Key projects in the proposed plan include completion of College Street from 11th to 19th Avenue, the South 3rd to Kagy Boulevard reconstruction, and the Frontage Road shared-use path. The Kagy Boulevard project, funded by a $24 million federal grant, experienced significant cost increases after initial bidding, reducing available state transportation planning unit (STPU) funding for other projects. This forced difficult tradeoffs: College Street will now rely entirely on local arterial and collector revenue, and South 3rd will require approximately $3.5 million in additional local funding beyond the $4 million in STPU revenue projected by 2031.
Staff proposed three options to close the gap: delay projects, increase arterial and collector district assessment rates beyond inflationary adjustments, or finance projects through revenue bonds. The current assessment generates roughly $60 annually per household. Board members expressed strong preference for not delaying projects, citing their high community value and safety benefits. Bryce Gordon noted that projects had safety components and that rate increases were warranted given the city's commitment to different street design standards than in past decades. Shannon Mahoney emphasized the South 3rd project's long-overdue status given school traffic and safety concerns. The board indicated openness to a combination of modest assessment rate increases and revenue bonding.
The board also discussed a proposed new impact fee contribution for the Laurel Parkway extension from Oak to Baxter to support a private school district baseball park project with significant public benefit, conditioned on the project moving forward and execution of an impact fee agreement.
A procedural motion to excuse board members Hayden Glines and Mike Veselik passed unanimously. Minutes from the July 22 meeting passed unanimously. The meeting adjourned without formal votes on the valet parking or capital plan work sessions, consistent with their informational format.