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HomeMy WebLinkAbout1989-02-06 114 MINUTES OF THE MEETING OF THE CITY COMMISSION BOZEMAN, MONT ANA February 6, 1989 ************************ The Commission of the City of Bozeman met in regular session in the Commission Room, Municipal Bui Iding, February 6, 1989, at 2:00 p.m. Present were Mayor Stiff, Commissioner Hawks, Commissioner Vant Hull, Commissioner Martel, Commissioner Goehrung, City Manager I Wysocki, City Attorney Becker 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 dis- cussion. Minutes Mayor Stiff deferred action on the minutes of the regular meeting of January 30, 1989 for a period of one week, since they were not included in the packets due to inclement weather. Re uest for permission to conduct swap meet and car show in 80 ert Park - first Saturda in September after Farmer's Market - Bozeman ntique Auto Club City Manager Wysocki submitted to the Commission a request from the Bozeman Antique Auto Club for permission to conduct a swap meet and car show in Bogert Park in September. He then distributed to the Commission copies of the staff responses received from Recreation Superintendent Harkin and Park Superintendent McNei I. He noted that the staff has indicated no problem with the proposal; however, he does have one concern. He questioned whether buy- ing and selling of pa rts is to be involved in this activity, cautioning the Commission about allowing commercial ventures in a park. Mr. Harlan Olson, President of the Bozeman Antique Auto Club, stated that the swap meet does include buying and selling of parts for the cars. I City Manager Wysocki reminded the Commission that Sweet Pea and Farmers' Market are the two community activities that they have specifically allowed in the parks. He expressed con- cern about allowing buying and selling in the park on any other basis. Mr. Harlan Olson stated that this is to be a community-wide event, with people being en- couraged to attend the car show. He indicated that swap meets are held in conjunction with the car show, since those interested in restoration are present at the shows. Mayor Stiff asked if the sale of valuable cars takes place at the swap meets or if it is limited to the exchange of small parts. Mr. Olson stated that very few cars are sold at swap meets; and most of those are 1950's and 1960's models. He indicated that activity is usually limited to exchange or sale of small original parts that people may have collected through time in thei r restoration efforts. He stated that this swap meet does not compete with existing businesses in the community because of the specialized parts involved. City Manager Wysocki noted the car show has been held at the Fairgrounds in the past and asked why it is being held elsewhere this year. Mr. Olson stated that the car show was held in conjunction with the Gallatin County Fair last summer in an effort to attract people. He noted that it was held in a building with a dirt floor, which was not satisfactory to those showing the cars; and the swap meet was not held in conjunction with the car show because of the setting. He stated that several of the participants in the car show expressed concern about their vehicles in that setting and stated they would not be a part of the show if it is held there again. I The City Manager asked if the swap meet could be construed as a commercial venture. Mrs. Olson stated that at the swap meets and car shows, car owners often post signs list- ing those businesses who have helped in restoration of the vehicle. She noted that car shows almost always include swap meets since those who are looking for parts often attend the shows. She also noted that information on where to find parts is exchanged; and sometimes people will bring in boxes of unknown parts that they have found in corners. Mrs. Olson stated that some of those who displayed cars last year were upset about the surroundings, especially when mice were running around the vehicles. She noted that restor- 02-06-89 115 ation, especially with original equipment, is often difficult and generally is very expensive. She stated that at the Fair, the cars were required to be on display for several days; and they pre- fer to conduct a one-day show where they can take their cars back to safe places for the night. Commissioner Vant Hull asked if the swap meet is incidental to the ca r show; and Mr. Olson indicated it is. Commissioner Vant Hull then asked if the car show could be advertised as the primary I event, with little attention being given to the swap meet. Mr. Olson stated that the Club would be willing to advertise it in that manner. City Manager Wysocki suggested that if the Commission wishes to approve the request, they require that the Bozeman Antique Auto Club enter into a lease for the park, with that lease addressing items such as clean-up, any costs associated with the event and liability insurance for the activity. It was moved by Commissioner Hawks, seconded by Commissioner Vant Hull, that the Com- mission authorize the Bozeman Antique Auto Club to conduct a car show and swap meet in Bogert Park on the first Saturday in September after Farmer1s Market, subject to the club entering into a lease for the park which includes provisions for clean-up, costs incurred and Iiabi lity in- surance. The motion carried by the following Aye and No vote: those voting Aye being Com- missioner Hawks, Commissioner Vant Hull , Commissioner Martel, Commissioner Goehrung and Mayor Stiff; those voting No, none. Discussion - fund reserve policy for enterprise funds City Manager Wysocki reminded the Commission that this issue was discussed in depth at last week's meeting and was continued to this time so that Dr. Gil Crain, professor of govern- mental accounting at Montana State University, could be present. He then cautioned the Com- mission to keep this issue separate from review of the rates for the three enterprise funds, noting that issue can be discussed after the phi losophical issues of the reserve policy have been resolved. I Administrative Services Director Miral Gamradt briefly reviewed the information he had submitted to the Commission at last week's meeting, since Commissioner Martel was absent. He stated that prior to developing the proposed policy, the staff met with Dr. Crain on various occasions to discuss the issue. He indicated that he has conducted an analysis of the current cash financial position of each of the three enterprise funds; and that information has been sub- mitted to the Commission for consideration in developing the fund reserve policy. The Administrative Services Director reminded the Commission that at the present time, the cash position of the garbage fund is good, while that of the sewer fund is poor. He noted it has taken several years for these funds to reach their current financial positions; and it may take several years for them to reach what is considered a good financial position. He stated that after the Commission determines its fund reserve policy, the next step will be to determine what rate increases wi II be necessary to meet that policy. Dr. Gi I Crain stated that he has reviewed the proposal submitted to the Commission; how- ever, he has not analyzed the financial positions of the various enterprise funds. He indicated support for operating the enterprise funds in a business-I ike manner, stating a wi II ingness to help the City reach that position. Dr. Crain stated the ideal concept is to have current rate payers pay for the benefits they are receiving. He noted this could be accomplished by bonding all major improvement costs, with the life of the bonds being equal to the expected life of the asset. He also noted it is important to assess upcoming costs and to establish a reserve policy which will cover the peaks and valleys, thus avoiding crisis management. He then stated that this type of concept provides inter-generational equity for all rate payers. I Commissioner Hawks noted that SB290 would allow local governments to only increase util- ity rates in an amount equal to the consumer price index, which could cause problems for local governments addressing infrastructure needs. Dr. Crain noted that the State Legislature seems to distrust local governments; and many feel that the 12-percent cei ling is too high. He indicated that hopefully the bill will be defeated because it could cause problems for many communities that are now reaching the point where their infrastructure needs must be addressed. Commissioner Hawks noted that in the past, rate payers did not always pay for the bene- fits they received; and the City is now in a position of playing catch-up. He stated it is not 02-06-89 116 fair for current rate payers to cover all of the costs of the past as well as the current costs, asking if there is an equitable way to spread those costs over an extended period of time. Dr. Crain noted that the waste water treatment plant was constructed through the use of federal monies; and in the current economic climate, those monies will not be available for re- placement or expansion of that facility. He indicated that rate payers should have been paying to replace that faci I ity but they have not. He then suggested that covering those costs from the past could be prorated over a five- to ten-year period to avoid penalizing current rate payers. I Dr. Crain then reminded the Commission that in the sewer fund, a rate increase is neeessary to address current problems, let alone address the reserve policy-" Dr. Gi I Crain stated that the Commission must consider what people can afford when de- termining the rate increases that are necessary. He also noted that the City is not allowed to increase the rates more than 12 percent a year without Public Service Commission approval; and that may enter into the discussion. He suggested that phasing in of the policy over a number of years would be appropriate, thus tempering the rate increases. Commissioner Vant Hull asked about determining the level of increases in the water fund that would cause conservation or drilling of wells, thus generating less revenues. Dr. Crain noted that is an issue that must be considered. He stated this is also a longer term issue that must include consideration of future water needs and growth rates for the com- munity as well as Montana State University. He noted it is best to operate a system at full ca- pacity for as long as possible; however, the City must have a financial plan for expansion when that expansion is needed. Commissioner Goehrung asked about the theories of "inter-generational equity". Dr. Gil Crain stated that under this concept, an administration leaves a city in a financial position the same as or better than it was when it arrived. Also, under this concept, the rate payers who receive the benefit pay for the benefit, with the next generation bearing the costs of its services. Dr. Crain stated that in establishing the reserve policy, the Commission must consider not only the current cash position of the funds, but must consider the anticipated cash flow in I each for a five-year period. He noted this will allow for funding of those capital items which are needed or reflect the bonding which may be necessary. He indicated that cash levels can then be established over a period of time, thus avoiding the crisis management situation. Dr. Crain cautioned that external impacts will create problems for the anticipated cash position. He reminded the Commission, as an example, that the Clean Water Act has not yet been adopted; but that may have a definite impact on overall operational costs. Dr. Crain then noted that the Commission may wish to address funding of three separate categories of capital improvements. He suggested the City should be able to cover costs of re- placement of roll ing s toc k; and funding of major items with a long life, such as plant replace- ment, should probably be done through bonding and debt retirement. He noted that leaves a third category in the center, including items such as replacement of lines installed through a special improvement district, for which the City must determine a method of financing. He ques- tioned whether those should be covered through a cash reserve or whether bonding might be appro- priate, noting that the life of the item must be considered in that determination. He cautioned against bonding with a longer retirement schedule than the anticipated life of the capital item be- ing funded. He suggested that capital items should be replaced in the same funding manner in which they were acquired, with bonded items being rebonded and with cash items being replaced with cash. He noted that does not address gifted assets to the system, such as those acquired through federal funding or special improvement districts; and that issue should be resolved in the pol icy. He suggested the Commission may wish to provide for bonding to fund those items, with the monies being paid back over the life of the project. I Dr. Crain then reminded the Commission that even if they decide to fund depreciation costs, those monies will not begin to cover the costs of replacement. He noted that depreciation is a technique used to isolate costs of the service; however, it is not usually funded by setting that amount of cash aside. Mayor Stiff stated he supports the phi losophical aspects of the proposed policy; however, he noted that the past must enter into the policy which is adopted. He then expressed concern about dramatically increasing user rates to those people on limited earnings or fixed incomes. He also expressed concern about implementing large rate increases to place the funds in good 02-06-89 117 financial positions over a short period of time, thus bearing their own costs as well as costs from the past. The Mayor stated that review of the audited financial statements for the past fiscal year reveals that the sewer fund had a slightly negative cash balance; however, the water fund and the garbage fund both had positive cash balances. He noted that there are substantial capital improvements being requested in the enterprise funds over the next five years; and some rate increases will be necessary to cover those costs. I Dr. Crain cautioned that not only the balance sheet figures, but the cash flow for the next year, as well as the next three-year period on major items, must be considered when re- viewing the policy and the need for rate adjustments. Dr. Crain then cautioned about considering low-income residents when establ ishing the reserve policy. He stated that the Commission should not serve social policy when establishing fiscal policy. He noted that some day all of us will be retired and on fixed incomes. He stated at that time, one should pay his fair share but should not be responsible for someone else's share as well. City Manager Wysocki stated that as the staff worked on this proposed policy, it became obvious that the City needs to reverse the present trend of the enterprise funds; and that must be accomplished through rate increases. He noted that the past must be considered; however, he feels that those issues should be addressed over a twenty-year period, since it has taken approximately fifty years to reach the current positions in the water fund and the sewer fund. The City Manager noted that growth of the community as well as Montana State University must be factored into the policy as well. He also suggested the Commission may wish to expand the boundaries of the sewer service district, thus creating growth for that facility and bringing it closer to capacity. City Manager Wysocki also cautioned the Commission that the amount maintained in re- serves must be tempered. He concurred that replacement of rolling stock should be fully fund- ed; and he suggested that design work and a downpayment of major items should be funded as well. He noted the remainder of the costs could then be bonded, with the revenues from the I user rates covering the debt reti rement costs. He noted that to have a $1 mi II ion reserve in each of the funds would probably be excessive. Dr. Crain concurred that the important issue is to get the funds back on track. He noted if it takes twenty years to reach a healthy position, that is all right. He then indicated that the better the financial condition of the fund, the better the interest rates will be. He noted that a .5-percent reduction in interest rates over a thirty-year period will be helpful in the overall financial picture for the fund. Mayor Stiff stated that he feels the public is more willing to accept a rate increase that is tied to a specific debt retirement or capital purchase than they are to an increase which is im- plemented to improve the cash position of a fund to accommodate future operational or capital need s . He then noted that addressing the cash position of a fund has not been done in the past. Dr. Gil Crain concurred that establishing a reserve policy and funding that pol icy has not been done in the past. He then noted that this will become a trend for all local governments in the near future; and it is fitting that a commission/manager form of government is the first to do it in the state. He stated this will provide a model for other communities to follow. City Manager Wysocki reminded the Commission that the water fund is very volati Ie, cau- tioning them to consider its cash position very carefully. He noted that last summer, the City was able to supply the demand, which was quite high without watering restrictions, for most of the summer. He cautioned that the City may not have such a high demand or be able to meet the demand as it occurs and gather the revenues that it did during the past year. He also not- I ed that to raise the rates may not result in more revenues because people may employ conser- vation measures or drill wells for irrigation purposes. He reminded the Commission that under the subdivision regulations, a well cannot be used for domestic purposes, but central water and sewer faci I ities must be uti I ized. Commissioner Vant Hull suggested it may be beneficial to expand the boundaries of the water service district, providing City water to areas such as Valley Unit No.2. City Manager Wysocki noted that many of the la rger items, including water and sewer lines, have a life expectancy of forty to fifty years; however, financing is usually for twenty years or less. 02-06-89 118 Commissioner Vant Hull asked about the possibility of establishing water rates on a sliding scale with the smaller users paying a lower fee and larger ones paying a higher fee. Dr. Crain stated that issue has been reviewed and debated from both sides by various uti lities, including Montana Power. He noted that it may cause the larger users to go off the system, thus causing an overall decrease in revenues. City Manager Wysocki stated he feels the public is willing to support increased costs of service if they are made aware of the reasons why. He reminded the Commission that during the I Public Service Commission public hearings on the recent major water rate increase, the public did not oppose the increase because they recognized it as necessary; however, they did ask that the rates be raised a little at a time on a regular basis instead of waiting for nearly thirty years. Dr. Crain noted that a few years ago, cities prided themselves on not raising the rates for years. He noted that the high inflationary period a few years ago compounded the problems caused by not raising rates; and communities are now trying to raise the rates to a level where users are paying their fair share. He then commended the Commission for being on the front edge by addressing the issue at this time. Mayor Stiff noted the Commission is not prepared to make a decision on this proposed pol- icy and requested that this item be placed on next week's agenda for additional consideration. Break - 3:53 to 3:58 p.m. Mayor Stiff declared a break from 3:53 p.m. to 3:58 p.m., in accordance with Commission policy established at their regular meeting of March 14, 1983. Discussion - process for setting of goals for Fiscal Year 1989-90 with Dave Sharpe Mayor Stiff noted that Mr. Dave Sharpe, Montana State University Extension Service, is present to discuss the process for setting of goals for Fiscal Year 1989-90. Mr. Dave Sharpe stated he has talked with Mayor Stiff and Commissioner Hawks about this issue several times. He indicated a desire to follow the nominal group process, noting that I a modified process was followed last time. He stated that under the nominal group process, the Commissioners will be asked to write down the goals for a particular category, then the rotation process wi II be followed to record those. The Commissioners will then vote on the goals listed to determine those which are most important, suggesting that the top three be determined as the priority goals for that category. Mr. Sharpe stated that he expects that the Commission could complete listing and prioritizing of the goals in the sub-categories proposed by Commissioner Hawks in a four-hour period on Apri I 5. Commissioner Vant Hull expressed concern that the goals listed last year became so ab- breviated that the Commissioners had different ideas about what they meant. She suggested that this year they be spelled out more clearly. Mr. Sharpe indicated that other groups have expressed that concern; and he will try to address it in this year1s process. He noted another tendency is to combine goals during the prioritization process. He suggested that be avoided unless they are so similar that the same action wou Id accompl ish both. Commissioner Hawks stated he would prefer to see lists of goals from each of the Com- missioners prior to the goal-setting process. He indicated this will allow him more time to consider each one and to prepare any questions he may have about the goals. Following discussion, Mr. Sharpe concurred that alternative would be satisfactory. The Commissioners decided that all goals under each category should be submitted to the Clerk of the Commission for compi lation prior to the meeting of April 5. Mayor Stiff asked what the Commissioners are to do between the April 5 meeting and the I April 15 meeting if the goa Is are prioritized at the meeting of the 5th. Mr. Dave Sharpe stated he would anticipate that at the Apri I 15 meeting, the Commi s- sioners would conduct a force field analysis on each of the prioritized goals. He noted in that process all of the driving fo rces and all of the hindering forces are listed, with the deter- mination then being made on whether that goal can be accomplished. He indicated that another step involved could be to list the "what, when, who" for each goal, noting that will often de- termine whether a goal is long-term or short-term. He stated that if there is adequate time. it may be beneficial to conduct the "paired comparison" exercise, which rates the goals within a 02-06-89 119 category through a comparison process. Mr. Sharpe stated he would anticipate that the depart- ment heads would be present at this meeting, since their expertise could help in this analysis process. Mayor Stiff asked City Manager Wysocki if he is comfortable with the process as pro- posed; and the City Manager indicated he is. He noted that the "what, when, who" analysis will probably be general, with the "who" being a department rather than an individual. I Mayor Stiff asked if the Commission should invite the Chamber of Comme rce to attend these meetings, noting that the City was invited to participate in their goal-setting process. Mr. Sharpe noted the ten-day break between meetings will allow time to bring in those from the community who would playa key role in accomplishing the goals which are prioritized. Mr. Dave Sharpe then responded to the ideas of sending letters to targeted organizations and groups seeking their input on goals for the City as well as publication of the three ques- tions that have been used in the past in the newspaper. He noted that as long as the Com- missioners remember that the information received from the newspaper questionnaire is only for their information and does not reflect any type of representational response, it could provide some food for thought. He then indicated that information from targeted groups could also pro- vide some food for thought, but extended the same cautions in that area as well. City Manager Wysocki noted that the goal-setting sessions will be open to the public. He suggested, however, that the listing and discussion of goals be limited to the Commission, rather than seeking reinforcement from the public. The Commission then discussed whether to divide the goals in each category into bud- getary and non-budgetary. Commissioner Martel noted that all goals are actually budgetary, since they either involve an expenditure or staff time. The Commission concurred and determined that split is not neces- sary. The City Manager cautioned against establishing too many goals to be accomplished during a fiscal year. He noted that the City could probably address up to twenty-five prioritized goals I in one year; howeve r , if more than that are established, the success rate will drop tremen- dously. Commissioner Vant Hull asked if a random telephone survey, conducted by someone from MSU who has expertise in this area, would be helpful. Mr. Sharpe indicated he is not sure there is adequate time to conduct such a telephone survey. He then suggested that the Commission establish a "Goals for Bozeman 2000" project, involving a citizen task force for each of the categories in which the goals for this time are to be listed. He noted that the telephone survey could be very helpful in that process, noting it would be the ultimate in community goal setting. City Manager Wysocki distributed to the Commission copies of the goats which were listed during the Master Plan update meeting in March 1988. He reminded the Commission that those goals should be reviewed prior to listing of goals for the planning and zoning areas. He further reminded the Commission of the staff updates, which wi II begin at next week's meeting. He noted those discussions may be reflected in some of the goals established for the upcoming year. Following a brief discussion, the Commission concurred that the letter sent to the tar- geted groups should be signed by the Mayor. They further concurred that the letter should list the categories under which the goals will be listed, seeking input in those areas, and should ask whose opinion is reflected in the response. The Commissioners concurred that in preparation for the Apri I 5 meeting, they will list their goals, separated into the nine categories previously determined as follows: (1) community development; (2 ) parks and recreation; ( 3) transportation; (4) utilities; (5) government oper- I at ions ; (6) alternative revenue sources; (7) police and fire; ( 8) library; and (9 ) other. They further determined that the number of goals should be limited to an average of five per Com- missioner, or a total of not more than forty-five goals divided among the categories as they wish. The Clerk of the Commission will then compile those lists of goals, submitting that com- pi lation to the Commissioners for their review prior to the meeting. The Commission set the Apri I 5 meeting for 1 : 00 p.m. in the Commission Room. They then set the Apri I 15 meeting for 10:00 a.m. in the Commission Room, with lunch somewhere away from the building, and anticipating that the meeting may end around 3: 00 p. m. 02-06-89 120 Discussion - proposed policy for "requests for proposals" City Manager Wysocki reminded the Commission that this discussion was deferred at last week's meeting. The City Manager indicated that this pol icy was developed by the committee which was appointed, including Commissioner Martel and Commissioner Goehrung, as well as staff members. The City Manager stated that the policy must be revised to address the selection of an engineering firm for special improvement districts. He noted that HB384 would have changed the I statutory provisions for this process. He stated that a conversation with the engineers' lobbyist revealed their opposition to the bill; however, the lobbyist indicated he has no problem with the proposed procedure as long as that is a pol icy adopted by the Commi ssi on. He noted that a letter is forthcoming to stipulate that position; and HB384 was withdrawn on that basis since it had little chance of passing. The City Manager stated that in this policy, the City must set forth the procedure to be followed in selecting an engineering firm for a special improvement district. He noted this wi II allow the City to give additional consideration to the firm that has been hired by the developer to complete the preliminary design work. He noted that under the policy establ ished, the City may be required to go through a letter proposal process; howeve r , the full "request for pro- posals" process could be avoided. Director of Public Service Phill Forbes briefly reviewed the proposal submitted in last week's packet. He noted that a selection committee, comprised of three to five persons, will be appointed to review the "requests for proposals"; and that committee will include a Commissioner. He stated that the exact size and composition of the committee will be determined by the type, size and complexity of the project. Commissioner Hawks suggested that the City Commission be involved in approving the com- mi ttee to select a firm in the "request for proposals" process, rather than having the City Manager make the final approval. Following a brief discussion, the Commission concurred. Commissioner Hawks then indicated he is not certain that all of the questions and con- cerns previously raised about the ranking system and lack of information available to the firms I who have submitted proposals have been adequately addressed in this proposed policy. He sug- gested that to send their average ranking sheet back to the firm could alleviate some of those concerns and reflect an openness in the process that is not presently there. He noted that he has a rating sheet used in Great Falls that seems to satisfy the industry and suggested that Bozeman may wish to implement a simi lar process. City Manager Wysocki noted that the engineering firms must complete federal forms 254 and 255, which provide quite detai led information on the firm and the qualifications of its per- sonnel. He stated that those forms can be updated on an annual basis to more accurately reflect the firm's qualifications. Commissioner Hawks questioned the staff's hesitance to release an individual's ratings. Commissioner Martel noted that releasing a rating which lists only the applicant's number rating would cause more questions than it would resolve. Commissioner Goehrung asked if the ratings are kept after the selection process has been completed. Director of Public Service Forbes stated he keeps the information for a period of three years I after which he disposes of it. He then indicated that the rating scores on the proposals is not usually as important as the rankings placed on them; and usually only the top three reach the "short list". He noted that if the ratings were distributed, they would not accurately depict the committee's actions and discussions. The Commission concurred with the policy as proposed, with the modification suggested by Commissioner Hawks that the Commission approve the committee as proposed by the City Mana- I ger. City Manager Wysocki stated this policy will be brought back in resolution form for Com- mission action. Discussion - review of rates for water, sewer and garbage It was moved by Commissioner Vant Hull, seconded by Commissioner Martel, that this dis- cussion be tabled for a period of one week. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Vant Hull, Commissioner Ma rtel , Commissioner Goehrung, Commissioner Hawks and Mayor Stiff; those voting No, none. 02-06-89 121 Recess ~ 5:22 p.m. Mayor Stiff decla red a recess at 5: 22 p. m. , to reconvene at 7:00 p.m., in order to con- duct the scheduled continued public hearing. Reconvene - 7:00 p.m. Mayor Stiff reconvened the meeting at 7:00 p.m. for the purpose of conducting the sched- I uled continued public hearing. Continued public hearing - Conditional Use Permit - Adventureland, Inc., for the State of Mon- tana Department of Lands - allow the construction and operation of a water slide and amusement park on Lots 16 and 17 of the Gordon Mandeville State School Section Subdivision (2340 North 7th Avenue) This was the time and place set for the continued public hearing on the Conditional User Permit requested by Adventureland, Inc. , for the State of Montana Department of Lands to allow the construction and operation of a water slide and amusement park on Lots 16 and 17 of the Gordon Mandeville State School Section Subdivision. The site is more commonly located at 2340 North 7th Avenue. Mayor Stiff opened the continued public hearing. Planner Ron Brey presented the staff report. He noted that a copy of the staff report was previously distributed to the Commission; however the memo from Director of Public Service Forbes was inadvertently omitted. He then distributed copies of that memo and submitted to the Commission eleven letters of support received by the staff as follows: Barbara Heck, member of the Bozeman Tourism Advisory Council; R.J. Hargrove, Sr., Jim1s Welding, 2415 North 7th Ave~ nue; Jack J. Thanepohn, Slumber All Bedding, 317 West Griffin Drive; Doug Rice, KBOZ AM/ FM; Gini Mitchell , Prime Rate Motel, 805 Wheat Drive; Jon Driscoll, Holiday Inn, 5 Baxter Lane; Peggy Owens, Big Brothers and Sisters of Gallatin County, 15 South 8th Avenue; Board of Di- rectors, Bozeman Area Chamber of Commerce; Tim C. Warner, Warner Marketing Associates; Dennis A. Cattin, Gallatin Valley Furniture, 923 North 7th Avenue; and Danny R. Welch, Empire I Federal Savings, 5 West Mendenhall Street. Planner Brey then reviewed the staff report, as prepared by the Planning S ta f f. He noted that under this proposal, the applicants would construct a water slide and amusement park in a phased development on the site of the old Starlite Drive-In Theatre. The first phase is to include construction of the skyslide water slide, a building which will house a ticket booth, game room and office area, some play equipment and a picnic area. Future phases of the development will expand on those areas and will add a miniature golf course. Planner Ron Brey stated that the water slide to be installed in Phase I exceeds the height restrictions by 3t feet; however, the applicant has received a variance from the Board of Adjust- ment. He stated the staff conducted its review of this application, noting that they identified four general areas of concern: ( 1 ) vehicle and pedestrian access to the site; (2) treatment of discharge from the site, including chlorinated water; (3) safe operation of the water slide structure; and (4) appearance of the development along an entryway to the community. Planner Brey stated that under the recommended conditions for approval of the appl i- cation, the movie screen must be removed during Phase I , in compliance with the zoning regu- lations. He noted that the staff anticipates that this project will change a dilapidated area to a park-like setting and will provide additional recreational activities to residents as well as tour- ists. The Planner stated two items of concern are not completely addressed in the conditions recommended for approval: ( 1 ) pedestrian and bicyclist access along North 7th Avenue and (2) I appearance of the entryway to the community. He noted that the only pedestrian access along the 1-90 overpass is along the west side of the street; and the proposed project is on the east side. He stated that any solution is very expensive and is located off site. He then indicated that removal of the existing movie screen and corrugated fence, replacing them with a nice land- scaped area, should improve the entryway. Planner Brey then reviewed the criteria established for the "T", transitional overlay, dis- trict on this site. He noted that no additional buffering is required because the site is totally surrounded by M-l and M-2 properties. He stated that the applicant proposes to use the exist- ing Starlite Drive-In sign, which complies with existing regulations. He noted the staff has 02-06~89 122 recommended that any interior signage and any modifications be submitted for in-house review as a minor modification to the conditional use permit. The Planner stated that the issue of sewage discharge has raised some concern, noting that appropriate pretreatment must be completed be- fore discharges are made into the system. Planner Ron Brey stated that the Zoning Commission conducted its public hearing on this application at its regular meeting of January 24. He stated that following the hearing, the Zon- ing Commission tabled a decision to allow the applicant an opportunity to address the issue of I how much pedestrian and bicyclist traffic this activity will generate, and the need for safety measures. He noted that the Zoning Commission has submitted a recommendation that the City Commission conduct its public hearing and, if this issue has been adequately addressed, that the application be approved subject to the recommended conditions. Mr. Bill Metzger, President of Adventureland, Inc., stated that they proposed to develop an amusement park, including a water slide, for people of all ages. He indicated that they pro- pose to complete the development in four phases, with the entire project to be completed in four to five years. He indicated that the amusement park is to be fami Iy oriented; and parents are also welcome to drop their children off. He stated that a one-time admission charge wi II be made at the gate, with video games and food costing extra. He stated that parents may use the pic- nic area at no cost if they want to let their children use the amusements while they remain on the site. He noted that no alcoholic beverages, tobacco or drugs will be allowed on the prem- ises. Mr. Metzger stated their intent to keep the fees as low as possible and to provide for family discounts as well as provide programs for youth groups. Mr. Metzger stated he is aware that this project is to be constructed along an entryway to the community; and he is aware of the Commission's desire to beautify those areas. He indi- cated it is their intent to meet all landscaping and parking requirements and to establish a park-like setting on the site. He then presented to the Commission an artist's concept of the project when completed. He stated that in the first phase, the landscaping will be installed along the street, and the center portion of the site will be developed and landscaped. Mr. Metzger stated he hopes to attract tourists to the community and further wishes to I promote it in conjunction with conventions and the tourism bu reau. He noted that contractors will be utilized in constructing the project; and the facility will employ fifteen to twenty people initially, with more being added as the facility expands. Mr. Bill Metzger stated he is conscious of signage, recognizing that signs are necessary to promote business. He then stated he proposes to use the existing Starlite Drive-In sign, with the word "Skyslide" on it. He then requested that he be allowed to use the existing movie screen to contain the word "Adventureland" as the only other sign for the faci I i ty . He noted that would be visible from the highway, thus eliminating the need for additional signs along the interstate. He also indicated that the movie screen will be incorporated into the landscaping of the project and will not be so conspicuous as it is now. He stated it wi II also provide an area for showing videos and would provide a good area for teenage dances. Mr. Metzger reviewed the recommended conditions set forth by the Planning staff for ap- proval of the application. He noted that he concurs with a majority of the conditions; however, he does have a few comments and concerns about Nos. 2, 4, 8 and 9. He noted that a public sidewalk is being required along North 7th Avenue; however, there is no other public sidewalk within three-quarters of a mi Ie along North 7th Avenue. He indicated a wi lIingness to install a sidewalk along the street at the time other sidewalks are installed, so it is connected to other sidewalks; however, he does not wish to incur that expense at this time. Mr. Metzger then ad- dressed the issue of discharging chlorinated water into the sanitary sewer system and the need for pretreatment of that water. He noted that the water is to be filtered and recirculated, simi- lar to a swimming pool; and the only time the facility would be drained is at the end of the sea- I son. He stated they are wi (ling to contact the Waste Water Treatment Plant when they plan to drain the facility so the necessary pretreatment and treatment steps can be taken. Mr. Metzger noted that the issue of removing the movie screen has been briefly addres- sed. He stated that he has had an engineering firm review the structure; and it has been deter- mined sound. He then asked that the Commission allow the screen to remain and be incorporated into the landscaping and signage for the project. He assured the Commission that when the pro- ject is complete, the screen will blend into its surroundings and not be a noticeable eyesore. 02-06-89 123 Mr. Bill Metzger then addressed the issue of traffic safety, including vehicles, pedestrians and bicyclists. He stated a willingness to complete the traffic impact analysis as provided for in the conditions and to assume the appropriate expenses in addressing those is- sues. He noted the issues raised at the Zoning Commission meeting dealt with the pedestrian and bicyclist safety; and he has worked to gather additional information on that subject. He stated that a telephone survey of other water slide facilities in the northwest revealed the foI- I lowing: Spokane, Washington - located along an interstate with residential development on three sides; of the 300 to 1,000 paid daily admissions, five or six may be bicyclists and there are few to no pedestrians; Columbia Falls, Montana - located near intersection of two highways with resi- dential development a minimum of one-half mile away; maybe a few bicyclists early in the season, but usually dropped off in cars; Coeur d' Alene, Idaho - along interstate, no problem with bi- cyclists or pedestrians; Boise, Idaho - along frontage road, no problem with bicyclists because parents prefer to drop the chi Idren off. Mr. Metzger stated that review of the local area revealed the following: Main Mall has removed all but three of its bicycle racks because of the lack of bicycle traffic; Skate Palace has virtually no bicycle traffic and maybe 1 percent pedestrian traffic; East Gallatin Recreation Area has no pedestrian or bicycle traffic; and the only bicycle traffic to the McDonald's is adults touring the country. Mr. Metzger stated that after review of these facts, he does not anticipate any problems with pedestrian or bicycle traffic, noting that the amusement park will either be a destination point or parents will be dropping their children off and picking them up later. He noted that if the need arises, a light could be installed at Griffin Drive and North 7th Avenue with walk lights to assure safe crossing of the street. Mr. Bill Metzger concurred with the response from the Police Department, noting that to lower the speed limit by 10 miles per hour could be safer for those traveling to and from the site. He further suggested that a light at the intersection of Griffin Drive and North 7th Avenue or pedestrian signs posted along the street cou Id be helpful. He also noted that his I business would be willing to sponsor a bicyc Ie sa fety class; and he is willing to explore the feasibility of using a bus to transport people to the facility. He noted there are other safety features which could also be pursued; and he is willing to do so if necessary. Mr. Lonnie Walker, Vice-President of Adventureland, Inc. , stated he feels this facility will provide recreational activities not presently available to residents in this area. He noted that this development will employ people. He also noted that it will attract people to the area, promoting tourism. He stated it does not pollute the atmosphere; and it will not endanger wild- life. He briefly reviewed existing uses in the immediate area and submitted pictures of those uses as well as the subject site to the Commission, noting that the proposed use will beautify the site. Mr. Walker recognized that from an aesthetic standpoint, the existing movie screen is not attractive; however, he stated that he feels its inclusion in the landscaping for this project will be an enhancement. Mr. Walker stated the company has a ten-year lease on the subject site; and they have approval to sign the wa iver of protest for the creation of special improvement districts. He stated they will work with experts on water slide safety to ensure the safety of those using the facility. Mr. Jerry Taylor, Taylor Architects, stated he has developed the master plan for this project. He questioned the need for installation of a public sidewalk along the front of the proj- ect, noting that the 575 feet of sidewalk would cost $8,000 to $10,000, questioning the validity of an isolated sidewalk. He then encouraged approval of the appl ication. In response to questions from Commissioner Hawks, Planner Brey responded that the I movie screen is approximately 65 feet high. He stated that the bui Iding height limitation in the M-l zone is 40 feet; and in the recent past the staff has applied that limitation to the height of signs as well. Commissioner Vant Hull asked if the City would incur any liability in monitoring the safe- ty of the elevator for the water slide. Planner Brey responded that the State is responsible for that monitoring and certification. In response to a question from Commissioner Vant Hull, Planner Ron Brey reminded the Commission of their recently-adopted sidewalk policy. He noted that in the M-l district, the de- veloper has the option of providing internal pedestrian ways, which waives the requirement for sidewalks along the perimeter. He stated it is the intent of that policy that the walkways would 02-06-89 124 connect adjacent parcels, thus meeting pedestrian need s , and questioned whether the proposed walkway is too far back from the property line to accomplish that goal. In response to questions from Commissioner Vant Hull , Mr. Metzger indicated that the State must bear all taxes and assessments on the property; however, the corporation would pay taxes on the equipment and improvements. Commissioner Goehrung noted that development of Phase I includes landscaping within the initial phase as well as along the street to the north property line, questioning why. I Planner Brey stated that the access to the site is to be relocated one way or the other so that it lines up with one immediately across the street. He noted it is anticipated that the ap- proach will be moved to the north; and the staff has asked that the developer landscape the front area from the driveway to the parking lot as well as along the front of the parking lot. Commissioner Goehrung questioned whether the artist's rendering accurately reflects the size of the movie screen. Mr. Metzger noted that the subject parcel is 750 feet deep; and the movie screen is ap- proximately 700 feet from the front property line. He a I so indicated that the water slide, for which the tower is 64 feet high, is closer to the front of the property. He then noted that the depth perception in the artist's rendering may be slightly inaccurate, but the appropriate con- cept is reflected. Mayor Stiff asked if the Zoning Commission's concerns about pedestrian and bicyclist safe- ty have been adequately addressed by the applicant. Mr. Jeff Rupp, former chairman of the Zoning Commission, stated that the Zoning Commis- sion was in favor of the application; howeve r , they felt additional information was needed con- cerning the amount of pedestrian and bicycle traffic this project may generate, and the safety issues associated therewith. He noted that the Zoning Commission concurs with the staff recom- mendation that the movie screen be removed, noting he feels it would be more visible than is de- picted in the artist's rendering. He indicated support for delaying installation of the sidewalk along the front of the property, suggesting that the applicant be required to sign a waiver of protest for the installation of that sidewalk at the time there are other walkways or sidewalks in I the area. He further suggested that landscaping be required across the entire front of the par- cel, rather than from the north boundary of the property to the south edge of Phase I. He noted this will provide a more attractive entrance to the community from the start of the project. Mr. Rupp stated he feels adequate information has been submitted to address the safety issues and encouraged the Commission to proceed with a decision after conducting its public hearing on this application. Mayor Stiff asked Mr. Metzger if he is willing to accept the conditions recommended by the Planning staff and the Zoning Commission. Mr. Metzger indicated he does accept the con- ditions, except for removal of the movie screen. Commissioner Hawks asked what portion of the existing corrugated fence is to be removed during Phase I. Mr. Metzger indicated the front of the fence wi II be removed and replaced with a six-foot green chain link fence. The fence around the rear portion of the site will remain un- til additional phases are constructed. Mr. Lloyd Mandeville, 411 West Arnold Street, stated support for the project. He encour- aged the Commission to approve the appl ication and to allow the movie screen to be incorporated into the project. He noted the screen will allow signage which will attract tourists from the interstate; and he feels it will be an asset to the project. Ms. Molly Jones, Livingston, noted many parents are concern about activities for their chi Idren. She noted this facility can be enjoyed by families as well as children, and will provide a reason for residents in the area to come to Bozeman in addition to the shopping opportunities. She indicated that she feels the movie screen, as shown in the artist's rendering, cou Id be in- I corporated into the park-like setting. Ms. Jones noted that the movie screen has been there for a long time; and no one has expressed any real concern about removing it in the past. Ms. Jones then stated that parents are becoming more restrictive on where they allow their children to ride bicycles; and she feels that most parents will drive their children to the faci I ity rather than allowing them to walk or ride bicycles. She further stated that it is a parent's responsibility to ensure the children get to and from the site safely. She then indi- cated support for the project and encouraged the Commission's approval. 02-06-89 125 Mr. Randy Leep stated he feels this is a worthwi Ie project. He indicated that as a parent he has traveled to water slides around the area; and he feels this would provide an additional activity to our area which would have a positive economic impact on the community. He stated appreciation for the developers addressing the concerns about safety and beautification in the project and encouraged Commission approval. Mr. Jerry Perkins noted that this facility, in conjunction with items such as the Museum I of the Rockies, will help to make Bozeman an overnight destination, rather than just a community to pass through. He stated that the water slide will provide an activity for the youth of the community that is not presently available; and he feels that is important. He noted that people in the general area will also come to Bozeman because shopping will be available in addition to the water slide. Mr. Perkins stated that if the movie screen can be incorporated into the landscaping of the site, he has no problem with it remaining. He then encouraged Commission support of the application. Mrs. Daria Joyner, Executive Director of the Bozeman Area Chamber of Commerce, briefly highlighted the Chamber's letter of support. She indicated a desire to attract tourists off the interstate; and she feels that the water slide and amusement park could be beneficial in that en- deavor. She also noted that teenage residents are in dire need of good recreational oppor- tunities; and this would provide one. Mrs. Joyner stated that the Chamber anticipates a large tourism industry this summer be- cause of the Centennial activities planned; and she feels this would provide an added attraction. She indicated support for allowing the movie screen to be incorporated into the landscaping. She then complimented the applicants for addressing the safety issues raised; however, she indi- cated that she feels the children's safety is the parent's responsibility. Mrs. Joyner then en- couraged Commission approval of the application. No one was present to speak in opposition to the requested Conditional Use Permit. Mayor Stiff closed the public hearing. I It was moved by Commissioner Martel, seconded by Commissioner Goehrung, that the cus- tomary one-week waiting period be waived. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Martel, Commissioner Goehrung, Commissioner Hawks, Commissioner Vant Hull and Mayor Stiff; those voting No, none. Commissioner Hawks stated that he feels the movie screen's distance from North 7th Ave- nue, and the proposed landscaping around it, make it more acceptable than if it were located near the front property line. He noted that because of its size, the screen will be a prominent feature in the project. He then indicated that he would support allowing the movie screen to be used as a sign, as long as on ly the word "Adventureland" is used and as long as the word is contained within the existing boundaries of the movie screen. The Commissioner stated he sup- ports the installation of landscaping along the entire frontage of the parcel during Phase I of the development. Commissioner Vant Hull stated she is totally in favor of the project as proposed by Adven- tureland, except for use of the movie screen. She stated that she feels the movie screen would be too prominent; and the proposal to use it as a sign flies in the face of the Commission's de- sires for a new sign ordinance. She then indicated that if the movie screen is allowed to remain and be used as a sign, she will vote against this application. Commissioner Martel stated support for the proposed project, noting it will enhance that site as well as the area. He then noted that the movie screen has been located there for many years; and this proposal allows it to remain and be a relatively attractive part of the project. Commissioner Goehrung noted that at its last meeting, the ad hoc sign ordinance commit- I tee discussed a 600-square-foot limitation for total signage along a street frontage. He ex- pressed concern that approval of this application, allowing the movie screen to remain and be used as a sign, may reflect a mixed signal from the Commission. He then questioned whether approval of this requested sign would exclude it from a possible requirement to bring all signs into compliance with a new sign ordinance. Planner Ron Brey stated that this sign would be subject to the provisions of the new sign code, noting that the requirements for existing signs would be applied to it. 02-06-89 126 Commissioner Goehrung then addressed the sidewalk issue. He expressed concern that the walkway is to be installed at the back edge of the parking lot, which is a substantial dis- tance from the front property line. He suggested that it may be appropriate to require the in- stallation of a public sidewalk along the street at the time other sidewalks are installed in the area. Mayor Stiff stated he has no problem with allowing the movie sc reen to remain and be used as a sign. He also indicated support for delaying the requirement for installation of a I sidewalk along the front property line, noting those monies could be well used elsewhere in the initial development of the project. Commissioner Vant Hull once again stated her support of the condition recommended by the Planning staff which would require removal of the movie screen, noting it is very obviously higher and larger than allowable sign dimensions under existing regulations, let alone future reg- ulations. She then stated support for allowing the applicant to install a sidewalk along the front of the property at some time in the future. Commissioner Hawks stated that, due to its distance from North 7th Avenue and Interstate 90, he feels the use of the movie screen as a sign would be appropriate, noting he would prefer that to several smaller signs. He then noted the sign committee has not yet developed recom- mendations regarding signage. Commissioner Hawks stated he feels it is appropriate to defer the requirement to install sidewalks along the front property line. He suggested, however, that it be addressed in the improvements agreement, with the requirement that it be installed at the time other sidewalks are installed in the area. City Manager Wysocki suggested that the Commission may wish to approve the appl ication, subject to revision of some of the conditions recommended by the Planning staff. He recom- mended that the applicant be required to sign a waiver of protest for the installation of side- walks rather than being required to install them at this time. He noted that if the movie screen is allowed to remain and be used as a sign, it must be understood that it must be brought into compl iance with any new sign regulations which may be adopted by the Commission. He further I suggested that the traffic impact analysis, which is to be conducted when the amusement park generates 500 average dai Iy trips, include addressing pedestrian and bicyclist safety; and that the developer accommodate the appropriate remedial measures. Mayor Stiff expressed concern about possibly requiring that the developer to remove the movie screen sign after it has become an integral part of the project. In response, Planner Brey stated that the new sign regulations are to be a part of the Zone Code; and as such, vari- ances may be appealed to the Board of Adjustment. Mayor Stiff asked if the applicant is in agreement with the conditions as recommended by the City Manager; Mr. Metzger indicated they are. It was moved by Commissioner Goehrung, seconded by Commissioner Hawks, that the Commission approve the Conditional Use Permit requested by Adventureland, Inc. , for the State of Montana Department of Lands to allow the construction and operation of a water slide and amusement park on Lots 16 and 17 of the Gordon Mandevi lie State School Section Subdivision, subject to the following conditions: 1. The final site plan must include the items referenced in the staff report. 2. When the amusement park generates 500 or greater ADT by actual count, the submittal of traffic impact analysis shall be required which contains at a minimum an evaluation of the following: A. Trip Generation - daily and peak hour B. Directional Distribution C. Trip Assignment D. Capacity Analysis of affected facilities I E. Access Control F. Pedestrian/ Cyclist/ Handicapped Access G. Signal Warrant Study This analysis will be reviewed and approved by the planning s ta ff , Publ ic Service Director, police and fire department, the Montana Depa rtment of Highways, and the County Road Superintendent. These agencies shall deter- mine appropriate mitigation measures for the development to be implemented by the developer at the developer's expense. 02-06-89 127 3. When determined appropriate by the Public Service Director, the de- veloper shall participate in a pedestrian / cycl ist sa fety analysis and will participate in implementation of the appropriate mitigation measures. Prior to opening of the facility, the applicant shall work with the City staff to determine what pedestrian/cyclist safety measures are necessary. 4. Waivers of protest to SID's/RID's for improvements to North Seventh Ave- nue and the signalization of the Griffin Drive/ North Seventh Avenue inter- I section must be provided by the property owner. 5. A waiver of protest for the installation of sidewalks along North 7th Avenue must be provided by the property owner. The sidewalk adjacent to the sub- ject parcels will be required at the time other sidewalks are required in the area. In the meantime, an internal walkway system connecting the subject parcel to adjacent parcels shall be constructed in conjunction with Phase I of the development, subject to the approval of the Public Service Director. 6. The location of the proposed entrance, snow storage, and dumpster location must be modified subject to the approval of the Public Service Director and compliance with Zoning Code provisions. 7. Approval of the revised access must be obtained from the Montana Depart- ment of Highways. 8. The proposed use must connect to City water for all domestic usage and cal- culations regarding water use and maximum sanitary sewer discharges must be provided to the Public Service Director for review of the adequacy of water and sewer improvements serving the site. 9. Sanitary sewer pretreatment provisions must be made subject to the ap- proval of the Public Service Director. 10. The existing movie screen shall be maintained in a safe structural condition, to be used as a sign with the word "Adventureland" contained within the existing boundaries of the screen. Said sign shall be subject to any amor- tization provisions adopted by the Commission. 11. Landscaping, in compliance with the zone code and as approved by the Plan- ning Director, shall be installed along the entire North 7th Avenue frontage at the time Phase I is developed. I 12. Development of subsequent phases and modifications of the improvements for Phase I shall be submitted to the Planning Director for consideration as minor modification to an approved Conditional Use Permit. Procedures out- I ined in Section 18.52.080 of the Zoning Code shall be followed. 13. Three copies of the final site plan containing all the conditions, corrections, and modifications approved by the City Commission shall be submitted for review and approval by the Planning Director within six months of the date of City Commission approval. A Final Site Plan must be approved prior to the issuance of a building permit or business license for the project, or commencement of the use. One signed copy shall be retained by the Plan- ning Director, one signed copy shall be retained by the Building Depart- ment, and one signed copy shall be retained by the applicant; 14. If improvements are not installed prior to final site plan approval, the applicant shall enter into an improvements agreement with the City. De- tailed cost estimates, construction plans, and methods of security shall be made a part of that Agreement. 15. I f occupancy of the structure or commencement of the use is to occur prior to installation of the improvements, the agreement must be secured by a method of security equal to one and one-half times the amount of the cost of the scheduled improvements; 16. All on-site improvements for Phase I shall be completed within 18 months of final site plan approval of the Conditional Use Permit. The Conditional Use Permit shall be val id for a period of 18 months following approval of the final site plan. Prior to the permanent renewal of the permit at the end of that period, the applicant must satisfy all the conditions in the granting of the permit. An on-site inspection will be made and a report made to the I City Commission for their action. If all required conditions have been sat- isfied, the permit wi II be permanently renewed. The same time frames and improvements agreements shall apply to subse- quent phases commencing with approval of the proposed improvements by the Planning Director. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Goehrung, Commissioner Hawks, Commissioner Martel and Mayor Stiff; those voting No being Com- missioner Vant Hull. 02-06-89 128 B rea k - 9: 00 to 9: 05 p. m . Mayor Stiff declared a break from 9:00 p.m. to 9:05 p.m., in accordance with Commission policy established at their regular meeting of March 14, 1983. Public hearing - interim zoning ordinance in the designated M-l zoning districts specifying that under certain circumstances permitted M-l uses may only be allowed through established condi- tional use permit procedures This was the time and place set for the public hearing on the interim zoning ordinance in I the designated M-l zoning districts specifying that under certain circumstances permitted M-l uses may be allowed through established conditional use permit procedures. Mayor Stiff opened the public hearing. Planning Director Andy Epple presented the staff report. He noted that the Planning staff prepared a proposed interim zoning ordinance for the M-l, Commercial--Light Manufactur- ing, District, as directed by the City Commission. He stated that under this ordinance, any per- mitted M-l uses to be located or expanded within 150 feet of an existing residential use would be required to follow established conditional use permit procedures. He reminded the Commission that the purpose of this ordinance is to protect existing residential uses in the M-l zone while the Planning staff prepares revisions to the zoning regulations, probably in the form of mixed use zoning, to address the issue on a permanent basis. The Planning Director stated that the interim zoning ordinance is to remain in effect for six months and may be extended, upon Com- mission action, for a period of one year. Planning Director Epple noted this ordinance was prepared as a result of recent problems incurred in the northeast sector of the community; however it would apply to all M-l zoned areas in the city. He stated that at the present time, there is single-family residential development, as well as a small amount of multi-fami Iy development in some of the M-l districts; and those res- idents have requested protection from industrial uses. He noted that the mixture of industrial, commercial and residential uses, particularly in the northeast sector, provides a unique situ- ation. The Planning Director stated that this proposed ordinance will affect much of the M-l I zoned property beca u se there are a substantial amount of residential dwellings located in the district. He reminded the Commission that any new or expanding permitted industrial or com- mercial uses located within 150 feet of an existing residential use would be required to go through the conditional use procedu res whi Ie this ordinance remains in effect. He noted that under that review process, the following issues would be addressed: "A. The amount of noise, dust, vibration, smoke, or particulate matter emitted by the proposed use; B. The visual impact of the proposed facility or activity; C. Hours of operation; D. Traffic patterns and impacts ; and E. Any other relevant aspect of the proposed operation as it may relate to residential structures within 150 feet of said use. II Planning Director Epple then presented to the Commission a map of the M-l zone in the northeast sector, noting that the various uses have been color coded. He noted that at the pres- ent time, it contains a mixture of residential, commercial, light industrial and heavier industrial uses. He noted the map graphically demonstrates the number of properties within that M-l dis- trict that would be affected by this ordinance. Commissioner Martel questioned why this proposed interim zoning ordinance applies only to new or expanding permitted industrial uses, and not to expansion of residential uses. Planning Director Epple reminded Commissioner Martel that this ordinance was prepared at the Commission's direction. He further reminded the Commission that residential uses are non- conforming uses in the M-1 zone and must therefore go through the variance process before the Board of Adjustment before any expansion is allowed. He then noted that any of the M-2 busi- I nesses within this district must also follow the variance process if they wish to expand. Commissioner Goehrung asked if performance standards for industrial uses would allow businesses to expand without going through the conditional use or variance processes. Planning Director Epple stated that is a possibil ity. He noted that performance standards usually address landscaping, screening and setback requirements; and issues such as expansion of existing uses could be addressed through that process as well. Mayor Stiff noted that he had questioned the 150-foot distance when this issue was pre- viously discussed. He then noted that the color-coded map graphically depicts the amount of M-l zoned property that would be affected by this proposed ordinance. 02-06-89 129 The Planning Director concurred, noting that well over half of the M-1 zoned property in the northeast sector would be affected. Commissioner Hawks noted that the Commission is attempting to address an area of the community where conflicts in use have been proposed. He then stated that he feels that re- quiring permitted uses to go through the conditional use process during the time period of this interim zoning ordinance is appropriate; however, he suggested that the fees should be waived. I He questioned the costs that would be incurred by the City if this were done. Planning Director Epple stated that the appl ication fee for a conditional use permi t is $220. He noted that covers the out-of-pocket expenses incurred in processing the application but does not cover the staff time involved. He then stated that the applicant incurs other ex- penses in this process because of the submitted requirements, noting that often a landscape ar- chitect and an engineer or planning consultant must be retained to meet the City's requirements. In response to a question from Mayor Stiff, the Planning Director stated that the general premise of mixed use zoning is that it recognizes the possibility, and sometimes the desirability, of a mixture of land uses in an area rather than the typical segregation of land uses. He noted that under this concept, additional amenities for some of the uses is required to make them more compatible with the other uses. He further indicated that the hours of operation for commercial activities would be addressed and signage for those operations would be restricted under this type of zoning. The Planning Director then stated that typically a mixed use zoning addresses commercial and high-density residential development rather than industrial and low-density resi- dential development. He then indicated that under this process, an in-house review is often con- ducted; howeve r , the Commission could determine that the hearing process is to be used. He cautioned the Commission that discussions on streamlining of the process is currently underway, and to require the public hearing process could conflict with that action. Commissioner Martel noted that conflicts naturally exist between industrial and residential developments; and to implement a mixed use zoning to address those two types of uses will be difficult. The Planning Director concurred, noting it will be a challenge. He then reminded the I Commission that in the northeast sector, many of the residents are maintaining and improving their homes; and the zoning should possibly be adjusted to recognize those existing homes as permitted uses while not encouraging further residential development. He noted that at the pres- ent time, the home owners often face difficulty in obtaining financing for purchase or improve- ment of their homes because of the industrial zoning. City Manager Wysocki noted the Commission has received the following letters of oppo- sition to the proposed interim zoning ordinance: Sharon Zakovi; Zac Zakovi, Zac's Wood Shop, 417 North Plum Avenue; Wayne Edsall, Edsall Construction Company; Gary Gray, ECS, Inc., 430 North Broadway Avenue; and Joe Polerke, Construction Specialties, 428 North Broadway Avenue. Ms. Lesl ie Rykels, 317 North Broadway Avenue, indicated her home is immediately across the street from Cenex and Simkins Hallin. She stated the residents in that area are not anti- business; and they recognize that they must make adjustments for living in there. She stated they are concerned about the health and safety of living in that area, however. She stated that she has been evacuated from her home twice because of problems at Cenex. She also noted that the fumes and noise from having diesels run all night in that area is disruptive and unpleasant. She stated that trucks block the street sometimes; however, the residents are flexible about that issue. She once again stated their concerns are over health and safety of their living area. Ms. Chandler Dayton, East Peach Street, stated she represents Linda Klenn, East Orange Street resident and Jim Barnaby, East Peach Street resident. She stated that a few of the resi- dents in that area instigated this measure to protect the low-income housing stock that exists in the M-1 zone. She noted that the needs of the low-income residents and property owners in the I area must be addressed, noting that there is little housing in the community that low-income per- sons can afford. She stated they would like to be protected from encroachments by industrial uses and requested that the Commission address the health, safety and welfare of those resi- dents. She stated that the residents wish to keep industrial uses from locating in their back yards, as was recently proposed. Ms. Dayton stated that the residents in the northeast sector have been waiting for a mixed use zoning for over a year; and they want the City to take some type of action that will protect them from industrial uses which are not compatible with their residential use. She noted 02-06-89 130 that the northeast sector, where a majority of the area is zoned M-l, is the only part of Boze- man where housing is avai lable for under $40,000; and that housing stock should be protected. Ms. Dayton stated she can understand the business owners' opposition to going through the conditional use process under this interim zoning ordinance; however, she noted this is on Iy a temporary situation. She encouraged the Commission to adopt this ordinance, noting it will protect the housing in the area and recognize the rights of those homeowners and residents. Mr. Rich Devers, 712 East Peach Street, stated that his home is located in the M-l zone. I He then stated support for the proposed interim zoning ordinance and encouraged the Commission to adopt it, noting that the residential uses must be protected. Mr. Dave Scheel, 520 East Davis Street, noted that a portion of the M-l zoned a rea is nearly 100 percent residential, which is not a permitted use. He stated that the existing prob- lems have been caused by past planning decisions. He then encouraged the Commission to adopt this interim zoning ordinance, noting that at the present time, residents must take action to protect thei r homes. Mr. Mike Money, 105 Teton Avenue, stated that he represents the Homebuilders' Associ- ation, which is opposed to adoption of the proposed interim zoning ordinance. He further noted that as a realtor /consultant, he is also opposed to the proposed ordinance. He noted that the ordinance is to help protect the health, safety and wel fa re of the residents in the a rea dis- cussed; however, it affects all of the M-l zoned property in the city. He noted that the prob- lems and concerns raised by the residents are not limited to this area, citing the gas leak of a few years ago on West Main Street, which contaminated wells to the north. Mr. Money then cited Section 18.36.020 of the Bozeman Municipal Code, which states the permitted uses in the M-2 district. He noted that under that section, "No use shall be permitted which causes excessive noise, vibration, smoke, dust, or other particulate matter, toxic or nox- ious matter, humidity, heat or glare which extends beyond the lot boundaries of the specific use.1I He suggested that to include such a statement under the M-l zone regulations could help to address the concerns raised by residents of the northeast sector, without requiring permitted uses to go through the conditional use process. I Mr. Money then noted that Section 18.34.010 of the Bozeman Municipal Code states the intent of the M-l district, noting it specifically states, "The district should be oriented to major transportation faci I ities yet arranged to minimize adverse effects on residential developments; therefore, some type of screening may be necessary. II He noted that North Broadway Avenue was recently upgraded and widened to encourage commercial and light industrial development in that a rea. Also, East Peach Street and East Tamarack Street were paved with two overlays of millings for the same purpose. Mr. Money stated that during his six and one-half years on the City-County Planning staff, one of the concerns expressed by developers was the ambiguity of the zoning regulations, noting that the criteria to be used under this interim zoning ordinance include IIvisual impact of the proposed facility or activity", IIhours of operation" and "any other relevant aspect of the proposed operation as it may relate to residential structures within 150 feet of said use". Mr. Mike Money stated that developers spend thousands of dollars on an application be- fore it comes to the City Commission for consideration. He then reminded the Commission that the heart of the tax base is from commercial and industrial uses, not residential uses. He also noted that the need for City services is not as great for commercial and industrial uses as it is for low-income housing areas. Mike Money cautioned the Commission that adoption of the proposed interim zoning ordi- nance would send an "anti-business, anti-growth" signal to local businesses as well as those considering relocation to the Bozeman area. He noted that the goals in the Master Plan include encouraging growth in the city limits and encouraging commercial and industrial uses to connect I to. City water and sewer services. Mr. Money then stated that development of performance standards for mixed use zoning in the northeast sector is very difficult. He noted that the issue was raised in 1 984; and since that time, the question has been raised, debated and dropped on various occasions. He stated that if the area were vacant, it would be easy to establish the guidelines and watch it develop in that manner; however, development already exists and it is difficult to adequately address the issue. He then encouraged the Commission to not adopt the proposed interim zoning ordinance. 02-06-89 131 Mr. Tom Simkins, Manager of Simkins-Hal/in, submitted to the Commission a petition of opposition containing approximately fi fty signatures. He noted that most of those signing the petition are property owners in the M-l zones. He stated that one of the main reasons the property owners are opposed to the proposed ordinance is the uncertainty it creates. He noted that many of the property owners have invested a substantial amount of money in their busi- nesses; and they are concerned that this could impose conditions which would make it difficult to I use the property for the purpose for which it was purchased. Mr. Simkins stated that his com- pany owns three parcels in the M-l zone; and they employ several people, providing them a good wage. Mr. Simkins stated that a review of old zoning maps reveals that the east side of North Broadway Avenue has been zoned industrial for many years. He noted that along the west side of the street, some of the area was rezoned from industrial to residential. He then indicated that at the present time, there is a shortage of M-1 properties; and this ordinance would cause people to hesitate in investing in those properties. Mr. Simkins then expressed concern that the proposed ordinance could adversely affect his business. He stated that if his business receives large orders for trusses, it is sometimes necessary to run two shifts; and under this ordinance, that may not be possible. He then en- couraged the Commission to vote in opposition to the proposed ordinance, noting that the busi- ness owners and their employees need assurances that the property can be used for the purpose for which it was zoned. Mr. John Goerke, 415 North Broadway Avenue, stated he operates an automotive repair shop at 421 North Broadway. He noted that he moved to that location in 1967, making the con- scious decision to live in the M-l zone. He then expressed concern that the proposed ordinance could limit his hours of operation and encouraged the Commission to not adopt the ordinance. Mr. Don Hanson stated that part of his job is to work on economic development issues in the state. He expressed concern about the signal that Bozeman would send by adopting this pro- posed ordinance, noting there is a lot of competition for economic development opportunities. He I further noted that the ambiguity of the issues to be addressed under this ordinance would create real problems when attempting to attract business to locate in Bozeman's M-l zones. He then encouraged the Commission to not adopt this ordinance. Mr. Jerry Perkins, owner of Karst Stage, stated that he has property on North Wallace Avenue as well as property behind the Holiday Inn that would be affected by this proposed ordi- nance. He expressed concern that city-wide restrictions are proposed as a method of addressing a specific issue in the northeast sector. He noted that his existing location is in the M-l dis- trict; however, it is located in a residential area and would be affected by this ordinance. He noted that he has a charter bus service; and those busses leave and arrive at the facility at all hours of the day and night. He expressed concern about the possible restrictions which could be imposed under the proposed ordinance and encouraged the Commission to vote against it. I n response to a question from Commissioner Vant Hull, Mr. Perkins indicated that in cold weather, busses are often run all night since they won't start in the morning unless they are inside and plugged in. He noted that their company policy is that when the busses are on the road in Canada from November to February, the employees don't shut the busses off. He noted that the Karst Stage busses are not left running at home because they are plugged in; however, other busses may come in and park there or elsewhere in town and run all night. Mr. Harry Ellis stated he operates a heavier industrial use in the M-l zone. He then stated opposition to the proposed ordinance. Mr. Mike Kvasnick, owner of the warehouses at 724 North Wallace Avenue, stated he also owns four residences in the northeast neighborhood. He stated opposition to the proposed ordi- I nance, suggesting there are other alternatives to address the issue. He noted that mixed land use already exists in the northeast area and suggested that the City allow those to remain and develop as they will, without a lot of governmental restrictions. Mr. Larry Wheeler stated he owns property on North Broadway Avenue, running his semi- truck business from one portion of the site while leasing a portion of the site to two other businesses. He then stated opposition to the proposed ordinance, noting it is difficult to regulate the hours when a truck may arrive at his place of business. Mr. Jim Brown, realtor, stated the proposed restrictions would make it difficult to attract growth in Bozeman. 02-06-89 132 Mr. Roger Craft reviewed the history of zoning in the northeast sector of the community from 1970 to now. He noted that the line between the industrial and the residential zones has moved at various times over the years. He noted that the relocation has usually been to address a problem; however, that relocation has only created more problems. He then encouraged the Commission to address the problem that prompted this proposed ordinance, rather than taking an action that would affect all M-l property owners. He noted that many of the residences in the northeast sector have been there a long time; however, they have not been permitted uses for I many, many years. He then encouraged the Commission to vote against the proposed ordinance. Commissioner Hawks noted that health and safety are basic issues in all areas of the com- munity. He then questioned how that can be addressed in only one segment of the M-l zoning without causing spot zoning. Mr. Craft stated that the proposed mixed use zoning overlay could be used to address that issue. He cautioned, however, that in this instance, the City is starting with problems and attempting to mitigate them. He noted that will be difficult; however, he feels that the problem itself should be addressed, indicating that adoption of this proposed ordinance will cause prob- lems for many more in the community. Mr. Craft noted that at one point in time, there was a buffer between the residential and industrial and commercial uses in the northeast sector; however, relocating of the zoning bound- aries removed that buffer strip. Mr. Bob Simkins stated that historically the property along North Broadway Avenue has been industrial. He asked the Commission for consistency in their actions so that the property owners can be assured of what type of development is allowed. Mrs. Daria Joyner, Executive Director of the Bozeman Area Chamber of Commerce, stated there is a need for mixed use zoning in the northeast sector. She noted that the proposed ordi- nance weighs unfairly on the permitted M-l uses, noting that the residential uses are non- conforming uses under the current zoning. She noted that the industrial property owners should be assured that they will be able to use the land in which they have invested. She also reminded the Commission of the streamlining procedures that they have been discussing, noting I that this ordinance is in direct contradiction to that endeavor. Mayor Stiff closed the public hearing. Commissioner Hawks asked the Planning Director to review the issues which caused this ordinance to be drafted. Planning Director Epple stated the latest issue was the request for a bronze foundry to be located in an otherwise residential block. He noted that issues concerning property along North Broadway Avenue were raised before that. He then stated that after review of the circumstances, the staff determined that it would not be appropriate to treat one portion of the M-l property differently from other M-l property; and the ordinance was drafted accordingly. He then concurred with Mike Money's comment that the staff has considered mixed use zoning for the northeast sector since 1984 but has been unable to successfully prepare performance stan- dards for such zoning to date. Commissioner Martel questioned whether mixed use zoning can be successfully prepared for the northeast sector because of the conflicting uses which exist. He noted that industrial and low-density residential uses are typically very different; and it may not be possible to im- plement performance standards that would be acceptable to those uses. Commissioner Hawks asked if there is a method of addressing the health and safety of the people in the basically residential areas of the M-l zone without impacting the industrial uses. He suggested that to reduce the distance in the proposed ordinance from 150 feet to immediately adjacent could alleviate some of the concerns expressed during the public hearing. In response to a question from Commissioner Vant Hull, Planning Director Epple stated it I may be possible to incorporate the language from the M-2 zoning district, as cited by Mr. Money, into the M-l zoning regulations. He reminded the Commission that such a change would require going through the zone code amendment process. Commissioner Vant Hull indicated that she is not prepared to make a decision at this time. She then questioned whether the proposal submitted by Commissioner Hawks to reduce the dis- tance from residential development could be considered in the decision-making process. 02-06-89 133 B rea k - 10: 45 to 10: 48 p. m. Mayor Stiff declared a break from 10:45 p.m. to 1 0: 48 p. m . , in accordance with Commis- sion policy established at their regular meeting of March 14, 1983, and to allow the City At- torney an opportunity to review the issues that have been raised. Public hearing (continued) - interim zoning ordinance in the designated M-l zoning districts spec- I ifying that under certain circumstances permitted M-l uses may only be allowed through estab- lished conditional use permit procedures City Attorney Becker reminded the Commission that the public hearing just held was on the interim zoning ordinance as proposed. He noted that minor modifications which would make the ordinance less restrictive could be made prior to adoption of the ordinance; however no modifications may be made which make the ordinance more restrictive without going through the hearing process once again. The City Attorney then noted another alternative which has been discussed is the zone code amendment process. He suggested if the Commission wishes to proceed in that manner, they may wish to disapprove the subject ordinance and direct the staff to prepare a zone code amendment. Following discussion, the Commissioners delayed the decision on this item until next week's meeting. Discussion - FYI Items City Manager Wysocki presented to the Commission the following "For Your Information" items. (1) The City Manager announced the I nteragency Breakfast, to be held at 7:00 a.m. on Wednesday, February 8, at the Baxter Hotel. (2) The City Manager briefly reviewed various legislative issues. He noted that the bill regarding "requests for proposals" for engineering services for special improvement districts was addressed in the agenda item on that issue. I (3) The City Manager then indicated that on Friday, hearings will be held on the bills pertaining to local option taxes, the local resort tax and the local motel tax. He indicated that the committee before which these will be heard and the time are to be announced later; and he will let the Commissioners know. He stated that he plans to attend and encouraged Commis- sioners to attend as well. (4) The City Manager distributed to the Commission copies of a letter of opposition to SB290, as signed by the Mayor. He noted that the public hearing on this bill is to be held on Wednesday; and this letter will be telefaxed to Helena for that hearing. He indicated that SB290 would limit utility rate increases to the consumer price index increases; and that would severely restrict current local government authority. (5) The City Manager stated that Administrative Services Di rector Gamradt will travel to Helena tomorrow to testify in support of HB441, the bill which will allow the City to place water bill charges as a lien on the property, making the landlord responsible for those user fees. (6) Mayor Stiff noted that he had indicated he would write a letter to the Hospital re- garding the tax status of the wing to be added for doctors' offices. He indicated he did not do that after discussing the issue with City staff. He noted that recent conversations with the Hos- pital Administrator revealed that he did not realize the addition would not be tax exempt, sug- gesting the City may wish to take steps to avoid future potential for disagreement on the issue. (7) Commissioner Vant Hull submitted to the Commission a I isting of new bi lis intro- I duced during the past week in which local governments may be interested. (8) Commissioner Goehrung stated he has scheduled a meeting for 7: 30 p.m. on Febru- ary 28 with the Arts Advisory Committee, various arts groups and a representative of the Mon- tana Arts Counci I to discuss possible expansion of the Arts Advisory Committee and its scope and duties. He stated the location of the meeting has not yet been determined; and that infor- mation will be distributed to the Commission as soon as it is available. 02-06-89 134 Discussion - tentative appropriation ordinance for capital improvement program for the period Oc- tober 1, 1988 through September 30, 1989 City Manager Wysocki suggested that discussion on this item be deferred for a period of one week due to the late hour. The Commission concurred; and Mayor Stiff requested this discussion be placed on next week's agenda, with the meeting to begin at 1: 15 p.m. to allow adequate time. Commissioner Goehrung noted that renovation of the Bogert bandshell is included in the I capital improvement program. He stated that he has worked for the person who it appears wi II be principal contractor on the project. He indicated that he has discussed this situation with the City Attorney to determine if he is able to vote on the entire program. The Commissioner stated that as a result of those discussions, he will separate that item from the remainder of the capital improvement program, abstaining from discussion or voting on that single item but will vote on the remainder of the capital improvement program. Consent Items City Manager Wysocki presented to the Commission the following IlConsent Items. II Appl ication for Gaming License - Scoop Bar, 712 West Main Street - one video draw poker and one electronic keno machine - through June 30, 1989 Application for Gaming License - Alley Cat Bar, 809 West Babcock Street - five video draw poker machines and three electronic keno machines - through June 30, 1989 Claims It was moved by Commissioner Vant Hull, seconded by Commissioner Martel, that the Com- mission 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 Vant Hull, Commissioner Martel, Commissioner Goehrung, Commis- sioner Hawks and Mayor Stiff; those voting No, none. Adjournment - 11 :12 p.m. I There being no further business to come before the Commission at this time, it was moved by Commissioner Martel, seconded by Commissioner Goehrung, that the meeting be adjourned. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Martel, Commissioner Goehrung, Commissioner Hawks, Commissioner Vant Hull and Mayor Stiff; those voting No, none. ALFRED M. STIFF, Mayor ATTEST: ROBIN L. SULLIVAN Clerk of the Commission I 02-06-89