HomeMy WebLinkAbout1987-08-03
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MINUTES OF THE MEETING OF THE CITY COMMISSION
BOZEMAN, MONTANA
. August 3, 1987
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The Commission of the City of Bozeman met in regular session in the Commission Room,
I Municipal Building, August 3,1987, at 2:00 p.m. Present were Mayor Mathre, Commissioner
Jordan, Commissioner Stiff, Commissioner Martel, Commissioner Vant Hull, City Manager 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
It was moved by Commissioner Jordan, seconded by Commissioner Stiff, that the minutes
of the regular meeting of July 27, 1987 be approved as amended. The motion carried by the fol-
lowing Aye and No vote: those voting Aye being Commissioner Jordan, Commissioner Stiff, Com-
missioner Martel, Commissioner Vant Hull and Mayor Mathre; those voting No, none.
Discussion - clarification of minutes of July 20, 1987 re discussion of possible liftin of hou r
restrictIons on out oor watering
City Manager Wysocki stated that Included in the Commissioners' packets was a copy of
the items Commissioner Martel had requested be added to the minutes of the meeting of July 20,
1987 regarding the discussion of possible lifting of the hour restrictions on outdoor watering.
He then distributed to the Commission a memo from Director of Public Service Holmes indicating
his responses to those suggested amendments. The City Manager reminded the Commission that
Acting Clerk of the Commission Norman had taken the minutes for that meeting and stated that
I Clerk of the Commission Sullivan has transcribed as much of the first portion of that discussion
as possible. He noted that the minutes as prepared parallel the transcription of those notes.
The City Manager then indicated that the first item listed in Commissioner Martel's memo is
shown in the transcription, although it has not been included in the minutes. He noted the
second item listed in the Commissioner's memo is partially addressed in the minutes already; and
the third item is not reflected in the transcription.
Mayor Mathre noted that usually when the Commissioners have corrections to the minutes,
they call the Clerk of the Commission with specific recommendations. She then suggested that
Commissioner Martel work with the staff on specific corrections prior to next week's meeting.
Northern
City Manager Wysocki presented Ordinance No. 1239, as reviewed by the City Attorney,
entitled:
ORDINANCE NO. 1239
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN,
MONTANA, AMENDING THE ZONI~G DISTRICT DESIGNATION FROM AN "M-1"
(COMMERCIAL-LIGHT MANUFACTURING) DISTRICT TO AN "R-3" (RESI-
DENTIAL-MEDIUM DENSITY) DISTRICT ON LOTS 6 THROUGH 20 IN BLOCK 50
OF THE NORTHERN PACIFIC ADDITION, CITY OF BOZEMAN, GALLATIN
COUNTY, STATE OF MONTANA.
The City Manager reminded the Commission that they had conducted the public hearing on
I July 6 and had voted to approve the zone map change on July 13, 1987. He then noted that
this ordinance was provisionally adoped on July 20 and recommended that it be finally adopted at
this time.
It was moved by Commissioner Stiff, seconded by Commissioner Martel, that the Com-
mission finally adopt Ordinance No. 1239, amending the zoning designation from M-l to R-3 on
Lots 6 through 20, Block 50 of the Northern Pacific Addition. The motion carried by the fol-
lowing Aye and No vote: Those voting Aye being Commissioner Stiff, Commissioner Martel, Com-
missioner Vant Hull, Commissioner Jordan and Mayor Mathre; those voting No, none.
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City Manager Wysocki presented Commission Resolution No. 2666, as reviewed by the City
Attorney, entitled:
COMMISSION RESOLUTION NO. 2666
RESOLUTION AUTHORIZING THE ISSUANCE AND SALE TAX AND REVENUE ANTICI- I
PATlaN NOTES, SERIES 1987 TO THE BOARD OF INVESTMENTS, FIXING THE
FORM AND TERMS THEREOF AND AUTHORIZING THE EXECUTION AND DELIVERY
OF DOCUMENTS RELATED THERETO.
The City Manager stated that the Certificate of Participation Program was formerly the
Montana Cash Anticipation Program. He reminded the Commission that last year the City bor-
rowed $200,000 for the Water Fund and the Supply Fund and found that the interest rate was
very low. He noted that monies had to be repaid by June 30, which they were, and the staff
now recommends that the City participate in the program again. City Manager Wysocki stated
that the City.s borrowing capacity is $850,970 under this program; but the Director of Finance
has indicated that the amount borrowed will be somewhat under that.
Commissioner Martel asked at what interest rate the loan would be made.
City Manager Wysocki stated the interest rate will not be known until the State has sold
the notes.
Director of Finance Gamradt reminded the Commission that under this program, Cities may
borrow monies for any fund which has a negative cash balance. He noted that the interest rate
for this program is low; and the City may invest those monies at a higher interest rate, re-
sulting in small amounts of arbitrage.
The Director of Finance stated that many other communities are participating, noting that
Butte/Silver Bow is a big user of this program.
Commissioner Stiff asked if the interest rate will be higher than last year's.
Director of Finance Gamradt reminded the Commission that last year the City borrowed
$200,000 and paid $169 in interest for approximately ten months. He noted that this year, if the I
formula for determining the interest rate remains the same, he will propose borrowing substan-
tially more monies. The Director of Finance again stated that the interest rate will not be known
unti I after the State has issued its notes. He indicated those monies will probably be available
in September and must be repaid by June 30, 1988.
It was moved by Commissioner Martel, seconded by Commissioner Vant Hull, that the Com-
mission adopt Commission Resolution No. 2666, authorizing the City's participation in the Cer-
tificate of Participation Program. The motion carried by the following Aye and No vote: Those
voting Aye being Commissioner Martel, Commissioner Vant Hull, Commissioner Jordan, Com-
missioner Stiff and Mayor Mathre; those voting No, none.
to address Commission - AFL-CIO Pro"ect Challen e: Work A ain -
oordinator
City Manager Wysocki indicated that Mr. Jackson is not present at this time and sug-
gested that this item be deferred.
Request for permission to address Commission - seminar sponsored by the Small Business Sup-
pO'rt Committee - Karl Webster
City Manager Wysocki stated that Mr. Karl Webster has requested permission to address
the Commission concerning an upcoming seminar.
Mr. Karl Webster, Small Business Support Committee for the Bozeman Area Chamber of
Commerce, indicated that the committee will be sponsoring a seminar titled IIKey for Developing I
in the Gallatin Valley: Walking through the Processll on Tuesday, August 18 at the Holiday Inn
from 5:00 p.m. to 10:30 p.m. The purpose of the seminar is to help those interested in de-
veloping or building in the Gallatin Valley to know the steps necessary in pursuing a project,
outlining a logical and cost-effective method. Mr. Webster stated the seminar will be divided
into two sessions. The first session will include speakers discussing the review process, with
the speakers being Mike Money, Dave Skelton and Marcia Elkins, local planners; Joe Baker, Bel-
grade Planni ng Office, and Mary Kay Peck, Gallatin County planner. This session will be fol-
lowed by a 45-minute break during which a no-host bar and buffet bar will be available. The
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second session will be a panel discussion on an actual case study of a project to be located on
100 acres, including financing and planning through completion. The panel will include Ken
Weaver, Ray White, Buz Cowdrey, Mike Delaney, Steve Lere, Don McLaughlin and Gary Sisson.
Mr. Webster extended an invitation for all City Commissioners to attend this seminar. He
asked for replies by August 14, since the buffet is being planned.
The Commissioners thanked Mr. Webster for his invitation and presentation.
I raiser - North Grand Avenue from
p . m. to : p.m.
City Manager Wysocki presented to the Commission a request submitted by the Gallatin
Council/HELP Center for permission to close the unit block of North Grand Avenue from the alley
to West Mendenhall Street from 5: 30 p.m. to 8: 30 p.m. on Thursday, August 13, for a HELP Cen-
ter fund raiser. The City Manager stated he will urge the applicant to contact all property
owners within that block to assure that everyone is aware of, and supports, the proposed clo-
sure. He also noted that manning of the barricades and cleaning of the street after the
activities must also be addressed. The City Manager then recommended that the Commission ap-
prove this requested closures.
Commissioner Vant Hull expressed concern about the public address systems which are
sometimes used in conjunction with street closures.
The City Manager stated the issue would need to be addressed through a noise ordinance,
which would be difficult to implement.
It was moved by Commissioner Vant Hull, seconded by Commissioner Jordan, that the Com-
mission approve the request for permission to close the unit block of North Grand Avenue from
the alley to West Mendenhall Street between the hours of 5:30 p.m. and 8:30 p.m. on Thursday,
August 13,1987, for a HELP Center fund raiser.. The motion carried by the following Aye and
No vote: Those voting Aye being Commissioner Vant Hull, Commissioner Jordan, Commissioner
Stiff, Commissioner Martel and Mayor Mathre; those voting No, none.
I Discussion - FY I Items
City Manager Wysocki presented to the Commission the following "For Your Information"
items.
(1 ) Water use report for the week ending July 30, 1987.
(2) Notices of special Commission meetings to be held on Tuesday, August 4, and
Tuesday, August 11, for the purpose of working on the budget for Fiscal Year 1987-88.
(3 ) A proposed letter to the owner/manager of the Boulevard Apartments concerning
their parking lot, as drafted by Commissioner Vant Hull.
The Commissioners indicated support for the letter as drafted and asked that it be pre-
pared for the Mayor's signature.
(4) Two letters from Family Planning and one from St. James' Episcopal Church con-
cerning the parking problems occurred at the Boulevard Apartments.
(5) A letter from Dr. Ken Spain stating support for Halls Ambulance Service.
(6) A letter of resignation from the Historic Preservation Advisory Commission sub-
mitted by Joan Kelley.
Mayor Mathre requested that this vacancy be advertised in the newspaper.
(7) A letter of response from the County Commission concerning the City Commission's
letter regarding funding support for the library.
(8) Commissioner Martel stated a resident from East Lamme Street had called him about
the dust problems on South Wallace Avenue.
I The City Manager stated that the Street Department is currently in the process of laying
some of the left-over millings from 1-90 down on South Wallace Avenue and possibly East Olive
Street.
(9) The City Manager presented the plaque for the GFOA Certificate of Conformance to
the Commission. He encouraged the Commissioners to thank the staff for their efforts to obtain
this certificate for the third consecutive year.
(10) Commissioner Vant Hull noted that copies of a letter from Dr. Stephen Black to
Clair Daines concerning construction of buildings in the Southwood Planned Unit Development
were in the Commissioners' mailboxes. She asked if the City should be addressing this item in
any way.
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The City Manager indicated that he will check on the matter.
( 11) Mayor Mathre stated that she has received a letter of response from the State
Highway Department concerning notification of Highway Commission meetings. She noted that
Jane Jelinski receives copies of those notifications as chairman of the Policy Coordinating Com-
mittee, although the City Commission is not notified directly.
(12 ) City Attorney Becker stated that he accepted 'service of a notice of lawsuit on be-
half of the City. He indicated the suit, filed by Albert and Pamela Frost, pertains to a variance I
granted by the Board of Adjustment for a home occupation located on Sourdough Road.
(13 ) Mayor Mathre stated she has received a request to welcome a junior wind orchestra
from Japan on Wednesday night but she will not be able to attend the concert. She then asked
if one of the Commissioners would be willing to do the welcome on behalf of the City; and Com-
missioner Vant Hull indicated she would do so.
(14 ) Mayor Mathre stated that four Algerians interested in local government will be in
Bozeman on Thursday, August 13. She indicated that she will meet with them in the Conference
Room at 9:30 a.m. and encouraged all of the Commissioners to attend that meeting if they wish
to do so.
.
Consent Items
City Manager to
h
It was moved by Commissioner Jordan, seconded by Commissioner Stiff, that the Commis-
sion approve the Consent Items as listed above, and authorize and direct the appropriate per-
sons to complete the necessary actions. The motion carried by the following Aye and No vote:
those voting Aye being Commissioner Jordan, Commissioner Stiff, Commissioner Martel, Commis-
sioner Vant Hull and Mayor Mathre; those voting No, none. I
Break - 3:00 to 3:10 p.m.
Mayor Mathre declared a break from 3:00 p.m. to 3:10 p.m., in accordance with Commis-
sion policy established at their regular meeting of March 14, 1983.
Work session - Budget for Fiscal Year 1987-88
City Manager Wysocki stated that ,the Commission had acknowledged receipt of his recom-
mendations on the budget for Fiscal Year 1987-88 at last week's meeting and established the fol-
lowing schedule for work sessions:
Monday, August 3, 3: 00 p. m.
Tuesday, August 4, 2: 00 p.m.
Monday, August 10, 7: 00 p. m.
Tuesday, August 11, 2: 00 p.m.
The City Manager began review of his recommendations for the budget, noting that the
format is different from that used in past years. He noted that the column for anticipated ex-
penditures for the immediate past fiscal year has been deleted since the actual numbers are not
known until after close of the books, which generally occurs in August. He reminded the Com-
missioners that they receive copies of the monthly expenditure lists, which shows the balance
remaining in each line item for each budget unit.
Director of Finance Gamradt stated that in the past, the anticipated revenues have been
forced to balance with the anticipated expenditures, usually through the use of carry-over funds I
from the past fiscal year. He noted that no carry-over or reserve fund monies have been used
to balance this year's budget, which is a major change from the past.
City Manager Wysocki noted the first five pages contain his letter of transmittal, briefly
reviewing some of the highlights. He reminded the Commission that some recent legislative ac-
tions have had an impact on this year's budgeting process, including Initiative 1-105, which
freezes property tax revenues at the 1986 levels; revision of the video draw poker machine li-
censing schedule; and revision of the motor vehicle fee/block grant program. The City Manager
stated that this budget includes a recommendation to decrease the employee level in the General
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Fund by the equivalent of seven fte's, adding back approximately 1.85 fte's in other positions,
and resulting in a net decrease of approximately 5.00 fte's. He noted that the budget also pro-
poses that 2 employees be added in the sewer operations, an enterprise fund, to begin a much-
needed maintenance program for the sewer lines.
In response to questions from various Commissioners, the City Manager indicated that
under the proposed employee cut-backs, one police officer position will need to be terminated;
I and most of the part-time parks and cemetery positions have already been terminated. Commis-
sioner Vant Hull indicated her intention to try to save the police officer position during this
budgeting process, or any other position that would result in a lay-off rather than be absorbed
through attrition.
City Manager Wysocki suggested that the Commission may wish to appropriate one-half of
the carry-over from the immediately past fiscal year, up to $50,000, to help fund the Capital
Improvement Program for the upcoming fiscal year since Revenue Sharing funds no longer exist.
He noted the remainder of the monies .could then go into the General Fund reserve to maintain
operations. He indicated that the State statutes allow up to a specified portion of the all-
purpose mill levy for capital purchases; however, he does not feel that now is politically the time
to implement that option.
The City Manager noted that in the past two budget years, revenue estimates have been
uncomfortably close, being within 1 percent, or $37,000.
Commissioner Vant Hull asked if the City has received the certified mill value, noting that
she has heard that the value has increased somewhat. The City Manager responded that the
City has not received the certified value; however, preliminary figures reveal that the value is
essentially the same as last year. He then noted that the preliminary figures were used as the
basis for his recommendations, since the figures within the document must be set by a certain
date so it can be printed and distributed.
Commissioner Vant Hull asked if the decreased mill levy for the SID Revolving Fund will
generate adequate monies to pay a portion of the Valley Unit Special Improvement District bonds.
I The City Manager indicated that, although no bonds for those SID's are due until the entire
twenty-year period has expired, the City plans to pay 5 percent of those bonds during this fis-
cal year. He noted that with the reduced mill levy for this item, plus the anticipated receipts
from assessments, the City should be able to pay a portion of the bonds as well as meet the sta-
tutory requirements for the SID Revolving Fund. The City Manager then noted that a portion of
the bonds for each of the five special improvement districts in Valley Unit Subdivision has been
paid, with the principal balance decreasing from $3.7 million to $2.8 million.
City Manager Wysocki stated it is the second consecutive year in which staff reductions
have been made. He then noted that the bottom line seems to have increased from $8.44 million
last year to $8.87 this year; however, that is because depreciation expenses of $1 million for the
enterprise funds have been included in this year's budget to more accurately reflect costs of oper-
ation.
Commissioner Vant Hull asked if monies for replacement of items should be built into the
user fees for the enterprise funds. The Director of Finance indicated that replacement monies
should probably be included. He noted that even if depreciation for equipment is funded, by
the time replacement equipment is purchased, the cost wi II likely be much higher. He stated it
might be beneficial to fund at least a portion of the depreciation costs, however.
The Commission then reviewed the various summary schedules contained on pages 7
through 16 of the budget. The Director of Finance stated that the schedules have been revised
so they are now similar to the financial statements which were prepared by Coopers and
Lybrand. He noted that the comparison between expenditures and revenues reveals a $663,000
I anticipated shortfall in the overall budget (due to depreciation in the enterprise funds), al-
. though projections for the General Fund show $7,000 more in revenues than in expenditures. He
indicated the following two schedules show breakdowns of anticipated expenditures by fund and
by object.
City Manager Wysocki emphasized that the schedule on page 10 shows that this year's bud-
get for the General Fund is almost 7 percent lower than last year's. He indicated that the mill
levy to support the proposed budget would be 127.68 mills, or 2.1 mills lower than last year's.
He then reviewed the anticipated revenues, noting changes in the manner in which various reve-
nues are computed and listed.
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Commissioner Vant Hull noted the projected revenues from animal permits are lower than
last year's. She then indicated that she feels the license fee should be increased from $5.00 to
$10.00. She also suggested two additional alternatives for increasing revenues: (1) that a pen-
alty be added for those licensing their animals after March 30, and (2) that the Humane Society
be allowed to canvas the city for animals not currently licensed, with those monies being split
between the City and the Humane Society.
The City Manager then reviewed the debt service fund revenues, as contained on page I
14. He stated that the Senior Center G. O. bonds will be paid off in October 1987. He then indi-
cated that internal service funds are contained on page 15.
Director of Finance Gamradt reviewed the enterprise funds, contained on page 16. He
noted that the proposed 12 percent increase in water rates has been included in the projected
revenues.
City Manager Wysocki suggested that the Commission end the work session at this time,
continuing it tomorrow afternoon at 2:00 p.m.
Recess - 5:00 p.m.
Mayor Mathre declared a recess at 5:00 p.m., to reconvene at 7:00 p.m. for the purpose
of conducting the scheduled public hearings.
Reconvene - 7:00 p.m.
Mayor Mathre reconvened the meeting at 7: 00 p. m. for the purpose of conducting the sched-
uled public hearings.
Public hearing - Conditional Use Permit - Vince and Debbie Arkell - allow an automobile repair
shop on Lot 11, McChesney Subdivision (2017 Gilkerson Drive)
This was the time and place set for the public hearing on the Conditional Use Permit re-
quested by Vince and Debbie Arkell to allow construction of an automobile repair shop on Lot 11,
McChesney Subdivision, located in the southeast quarter of Section 36, Township 1 South, Range I
5 East, Montana Principal Meridian. The subject site is more commonly located at 2017 Gilkerson
Drive.
Mayor Mathre opened the public hearing.
Assistant Planner Bill Murdock presented the Staff Report. He indicated that the appli-
cation was considered on the Consent Calendar before the Zoning Commission, therefore no
public discussion was held.
The Assistant Planner stated that the subject site is located within an M-2- T, Manu-
facturing and Industrial District with a Tr:ansitional Overlay, requiring that the conditional use
process be followed. He indicated that all the requirements of the zoning district as well as the
criteria addressed through the "T" designation have been met. He then stated the City
Engineer has recommended that a five-foot public sidewalk be required along Gilkerson Drive;
however, the Planning Staff and the Zoning Commission did not include that as a condition be-
cause no other sidewalks have been installed within that subdivision.
Assistant Planner Murdock stated that the Zoning Commission concurred in the staff's recom-
mendation for approval, subject to eight conditions.
Mrs. Debbie Arkell, appl icant, indicated agreement with all of the conditions recommended
by the Zoning Commission. She then noted that the subject lot is the only undeveloped lot along
the west side of Gilkerson Drive. She stated they are willing to install sidewalks at the time
others are Installed; however, she does not feel it is appropriate to install one at this time.
No one was present to speak in opposition to the requested Conditional Use Permit.
Mayor Mathre closed the public hearing. I
It was moved by Commissioner Jordan, seconded by Commissioner Stiff, that the Commis-
sion waive the customary one-week waiting interval. The motion carried by the following Aye
and No vote: those voting Aye being Commissioner Jordan, Commissioner Stiff, Commissioner
Martel, Commissioner Vant Hull and Mayor Mathre; those voting No, none.
It was moved by Commissioner Stiff., seconded by Commissioner Martel, that the Com-
mission approve the Conditional Use Permit requested by Vince and Debbie Arkell to allow an auto-
mobi Ie repai r shop on Lot 11 of the McChesney Subdivision, subject to the following conditions,
as recommended by the Zoning Commission:
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1. No structure, landscaping or signs shall interfere with the sight triangle
at the intersection of the private easement and Gilkerson Drive;
2. The final site surface drainage and grading plans shall remedy the ponding
problem at the intersection of the private easement and Gilkerson Drive
and shall be reviewed and approved by the City Engineer prior to final
site plan approval;
3. A grease trap for the proposed building shall be shown on the final plat,
I subject to approval by the City Water Superintendent;
4. That the developer enter into an Improvements Agreement with the City of
Bozeman. If occupancy of the structure is to occur prior to installation of
the improvements, it must be secured by a method of security equal to one
and one-half times the amount of the cost of the scheduled improvements.
Detailed cost estimates, construction plans and methods of security shall be
made a part of that Agreement;
5. All landscaping, parking and other required improvements shall be con-
structed in conformance with the final site plan;
6. All on-site improvements (i.e., paving, landscaping, etc.) shaU be com-
pleted within eighteen months of the Conditional Use Permit;
7. Three copies of the final site plan containing all conditions, corrections
and modifications approved by the City Commission shall be submitted for
review and approved by the Planning Director within six months of the
date of the City Commission approval and prior to issuance of a bui Iding
permit for the project. One signed copy shall be retained by the Building
Department, one signed copy shall be retained by the Planning Director
and one signed copy shall be retained by the applicant;
8. The Conditional Use Permit shall be valid for a period of eighteen months.
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 City Com-
mission for their action. If all required conditions have been satisfied,
the permit will be permanently renewed.
The motion carried by the following Aye and No vote: those voting Aye being Commissioner
I Stiff, Commissioner Martel, Commissioner Vant Hull, Commissioner Jordan and Mayor Mathre;
those voting No, none.
This was the time and place set for the public hearing on the request for Master Plan
Amendments as submitted by Delaney and Company. Under the requested Master Plan Amend-
ments, the following land use designations would be made on approximately 78 acres: 22.8 acres
from research technology to general highway commercial; 14.16 acres from high-density resi-
dential to general highway commercial; 21.62 acres from high-density residential to medium-
density residential; 5.0 acres from medium-density residential to general highway commercial;
8.24 acres from neighborhood commercial to medium-density residential; and 6.15 acres from
neighborhood commercial to low-density residential. The subject property is located in the east
one-half of Section 10, Township 2 South, Range 5 East, Montana Principal Meridian. It is gen-
erally bounded by Ferguson Road on the west, Durston Road on the north, Fowler Road extended
on the east and U. S. Highway 191 on the south. The site is commonly located in Valley Unit
Subdivision and is within the city limits.
Mayor Mathre opened the public hearing.
I Long Range Planning and Subdivision Administrator Marcia Elkins presented the Staff
Report. She reminded the Commission that the only item under consideration at this time is the
land use designation; and no specific development proposals are to be a part of this process.
The Planner stated that, using realistic densities for development of the various land use desig-
nations, impacts on the water and sewer systems would be reduced; and the traffic impact under
this proposal would probably increase about twenty percent. She noted that Durston Road, West
Babcock Street and U. S. Highway 191 provide access to the subdivision; and the staff report
indicates concern about additional traffic impacts on Durston Road, West Babcock Street and
Ferguson Road.
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Planner Elkins stated that the six <:riteria reviewing Master Plan Amendments are ad-
dressed in the staff report. She indicated that after reviewing those criteria, the staff
recommended that all but the land use designation from medium-density residential to general
highway commercial on the 5. O-acre tract be approved. She stated that after conducting its
public hearing, the City-County Planning Board recommended approval of the entire application
as submitted.
Mr. Mike Delaney, applicant, 3425 Sourdough Road, stated he is the owner of record of I
the subject property. He briefly reviewed the history of the Valley Unit Subdivision, noting
that it has been a troubled project since shortly after annexation of the property. He noted
that in the late 1970's, Mr. Virgil Jahnke perceived a need for additional housing in the Bozeman
area and pursued annexation and subdivision of more than 300 acres of raw, undeveloped land.
He indicated that the property at that time was zoned in a tiered manner, with technology re-
search land being located along U. S. Highway 191, high-density residential just north of that
strip, medium-density north of that and low-density residential north of that to Durston Road.
He noted that some neighborhood commercia' areas were also provided.
Mr. Delaney noted that the only development within the subdivision has occurred in the
single-family residential area and a portion of the mUlti-family residential area. He stated that
the City staff and Mr. Jahnke were reasonably certain that a need for technology research prop-
erty was needed due to inquiries from various companies; however, to date no offers have been
made to purchase any of that property. He noted that Mr. Jahnke also offered land to the hos-
pital for relocation; however the hospital decided to relocate to the eastern edge of Bozeman.
Mr. Mike Delaney stated that he feels that this area is on a ten-year economic cycle and
is currently on the upswing. He noted that for Valley Unit Subdivision to become a viable part
of the community, its image must be changed; and he feels that the requested changes in land
use designations will help accomplish that. He also indicated that the needs of the end user
must be delineated and accommodated to make this subdivision successful.
Mr. Jim Dobrowski, Morrison-Maierle, engineering consultants, stated that under the pro-
posed Master Plan Amendments, the sewage flow would be reduced by about 42 percent, which is I
about 3 percent of the design capacity for the plant. He noted that the need for water would
be reduced by about 52 percent from potential under the current land use designations. Mr.
Dobrowski then noted that he does not feel that the traffic impacts would be as high as has been
projected in the staff report, indicating that he feels an increase of 3.8 percent would be more
realistic . He also reminded the Commissioners that commercial traffic has different impacts from
residential traffic at different times.
Mr. Dobrowski stated there will be no direct access from Valley Unit Subdivision to U. S.
Highway 191; but traffic will have access to the various lots through Fallon Street, which will
serve as a frontage road.
Mr. Bob Lee stated he has been working with Morrison-Maierle on this project. He noted
the questions he has asked are whether this is good planning; and is it reasonable, and from
whose point of view? He noted that good planning provides a land use arrangement that is ac-
ceptable to the market place; and he feels that the subject proposal positively answers those
questions and concepts. Mr. Lee stated that high tech operations do not need high viSibility or
good access; however, commercial developments do. He stated that the amount of general high-
way commercial land being requested will create a well-planned node rather than strip develop-
ment. He also indicated that he feels this request is a natural extension of the West Main com-
mercial center.
Mr. George Mattson, of Mattson, Prugh and Lenon Architects, stated that strip develop-
ment along main arterials is a fact of life. He noted that Mr. Delaney has purchased and re-
modeled the old Gamble's building on East Main Street; and he feels it has become an asset to I
the downtown area through that process. Mr. Mattson stated that he feels the proposed land
use changes will provide a large enough parcel to allow creative development rather than the
type of strip development which has occurred to date along North 7th Avenue and Main Street.
Mr. Mattson stated that Mr. Delaney is planning a resort complex and convention center
in the future. He noted that planned commercial development of the area currently under con-
sideration will enhance and be enhanced by that resort complex when it is constructed.
Commissioner Vant Hull noted that the Commission has attempted to avoid strip develop-
ment, but has not been very successful. She noted that the frontage road may eliminate some of
the problems and asked if any other items could help address that issue.
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Planner Elkins stated that under this proposal, only one access would be allowed to U. S.
Highway 191. She also noted that depth of the lots, signage and landscaping requirements are
three important items which should be addressed; however, those are not appropriately ad-
dressed at this time.
Commissioner Vant Hull asked if the City has adequate restrictions on signage and land-
scaping to address the concerns about strip development.
I The Planner indicated that the City currently does not; however, an intern is in the pro-
cess of revising those regulations.
Commissioner Vant Hull stated that concern has been expressed about over-retailing in
Bozeman at the present time and asked how the City could be assured that no more retail facil-
ities would be located on the subject property.
Planner Elkins stated that the purpose of neighborhood commercial areas is to provide for
retai I development.
Commissioner Jordan expressed concern about the downtown area if the community begins
moving out in spokes. He noted that if the proposed convention center becomes a reality, it
could have a real impact on the downtown area. The Commissioner noted that very few vacan-
cies exist in commercial properties; however, churches have taken over many of those locations.
He indicated that he feels this downtown area is one of the nicest in the state; and he feels that
moving out in spokes would detract from it.
Planner Elkins noted that the master plan is a dynamic document, not a static one. She
stated it must address the changing needs of the community, recognizing that as one area fi lis,
the demand will be created for other areas.
Commissioner Jordan stated he is not sure that the current land use designations were
appropriate when they were implemented in the 1970's. He noted, however, that he wants to
make certain that any changes in the land use designations are appropriate and would be an as-
set.
Long Range Planning and Subdivision Administrator Elkins stated that when she reviewed
I the original proposal, she did not feel that additional commercia' ptoperty was needed on the
west end of the community. She noted, however, after reviewing the land use inventory, she
found that west of 11th Avenue there are only a few commercially zoned lots available; and all of
those are less than three acres in size. The Planner then reminded the Commission of the popu-
lation growth which has occurred in the county west of the city limits. She noted that the Plan-
ning staff is also concerned about the impact that these proposed Master Plan Amendments could
have on the downtown area; however, she noted that development within areas such as this are
different from that in the downtown area. She stated that a large convention center would have
an impact on the community and services needed; however, that cannot be addressed at this time
because it is not a part of the proposal before the Commission. Planner Elkins then stated that
she had recommended to the applicant that he submit a proposal which included twenty to thirty
acres of commercial land because she felt that would be an appropriate amount.
Commissioner Jordan expressed concern about the additional traffic which wi II be added to
U. S. Highway 191 due to the fact that the only access to the area will be through Ferguson
Road.
Commissioner Stiff compared this proposal for a commercial node to a fuse. He noted that
commercial development will be extended to Ferguson Road along the north side of the highway
after the Commission has made a conscious decision not to extend any city services west of
Ferguson. He noted that after the land use designation is changed, the City will not have any
control over the way it is utilized.
The Commissioner then noted that the State Highway Department has indicated its plans to
I begin purchase of right-of-way to widen U. S. Highway 191 in 1992; and he feels that the addi-
tional traffic which would be created through commercial development would compound existing
traffic problems. He stated he would like to see the problems with the special improvement dis-
tricts in this subdivision resolved; however, he does not wish to do so at the expense of the
downtown area. He asked if the Planning staff had any concerns about the criteria reviewed for
this application.
Planner Elkins stated that the staff report does reflect a problem. She reminded the Com-
mission that the staff report did recommend that the 5.0 acre tract not be designated general
highway commercial; however the City-County Planning Board submitted a recommendation for
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333
redesignation. The Planner stated that the staff report also indicates that high-density resi-
dential is not an appropriate designation f'n the subdivision.
Planner Elkins stated that the community currently has 193 acres of general highway com-
mercial property, about 19 percent of which is undeveloped. She noted that this proposal would
increase the amount of such land by 22 percent, more than doubling the undeveloped land inven-
tory. She indicated that this proposal does not meet Goal No. 17, encouraging support for the
Central Business District, or Goal No. 21, encouraging development of amenity-oriented tech- I
nOlogy-research industries, as set forth in the Master Plan.
Commissioner Martel reminded the Commissioners that when Main Mall was constructed,
many people feared it would have a negative impact on the downtown area. He noted that as
soon as that mall was completed, University Mall was constructed and the same fears were re-
stated. He stated that both those malls are now operating; and the downtown has remained vi-
able and relatively healthy, considering the current economic situation. He also noted that the
proposed land uses would have less impact on the City's water and sewer systems than develop-
ment under the existing land use designations.
Commissioner Vant Hull asked if performance guidelines or multiple use restrictions could
be used to address the Commission's concerns.
Planner Elkins stated that this proposal would implement specific land uses, not multiple
use; therefore, those guidelines would not apply.
Commissioner Vant Hull asked if additional light industrial land should be provided within
the city limits.
The Planner stated that the request before the Commission at this time does not include
any light industrial property.
Break - 8:32 to 8:42 p.m.
Mayor Mathre declared a break from 8:32 p.m. to 8:42 p.m., in accordance with Commis-
sion policy established at their regular meeting of March 14, 1983.
I
Commissioner Vant Hull asked Mr. Delaney what problems he might foresee with the pro-
posed extension of the frontage road from Ferguson Road eastward to Main Mall.
Mr. Delaney stated that possibility was a part of his proposal. He noted that he feels
extension of the frontage road through Valley Unit Subdivision, across what is now Fish and
Game land and across the Main Mall parking area could provide a positive safety factor. He
noted that with the Fish and Came constructing a new building on South 19th Avenue, the exist-
ing property will be on the market; and he noted that realistically it will be developed in a com-
mercial manner. He stated that he has indicated to the Fish and Game his interest in obtaining
an option to purchase that property. He noted that he has also indicated that if that is not
possible, they consider adopting the covenants and restrictions that he wi II have for development
in Valley Unit Subdivision so that all of the development along the north side of U. S. Highway
191 is compatible. He stated he further requested an easement or right-of-way dedication for
the frontage road through that site.
Mr. Delaney noted that Main Mall had originally requested one access point, at West
College Street extended; however, the Commission required that the other two accesses also be
provided. He stated that the frontage road across the parking lot was also required; however, I
it has not been extended eastward and will not be now that Town Pump has redone its site.
Commissioner Vant Hull asked if the ponds on the Fish and Came property are to be filled
in.
Mr. Delaney indicated they are located to the north of where the frontage road would be
located. He stated that if he purchases the property, he plans to keep them as an amenity. He
then noted that he plans to construct a man-made lake west of Ferguson Road as a part of the
resort complex.
Commissioner Stiff asked Mr. Delaney if Mr. Jahnke has a continuing interest in this prop-
erty.
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j39
Mr. Delaney stated that he is the owner of record, having purchased interest in the prop-
erty from Mr. Jahnke. He indicated that as lots sell, Mr. Jahnke may receive some royalties, or
he indicated that he may also payoff that remaining interest within the next ninety days.
Commissioner Stiff then asked Mr. Delaney how much he has paid on the outstanding spe-
cial improvement assessments on those properties.
Mr. Delaney stated he has not paid any monies on the outstanding assessments. He
I noted, however, that before he receives clear title on the property or can begin development on
a lot, he must pay all of the assessments in full. The applicant then noted that in addition to
the $4 mi lIion in outstanding assessments on the property, more than $8 mi lIion is owed to other
creditors.
Commissioner Vant Hull noted that even though the State Highway Department may begin
acquisition of right-of-way for widening of U. S. Highway 191 in 1992, construction may not be-
gin for several years.
Mr. Delaney stated that in conversations with the Highway Department, they have indi-
cated a possible interest in acquisition of right-of-way at this time if the price is right. He
indicated that he feels Ferguson Road will become a major arterial; and he feels a stop signal
should be installed at that intersection. He also indicated interest in having a left-turn and a
right-turn lane installed to ensure easy access to the subdivision. Mr. Delaney stated that in
exchange for those items, he would be willing to sell the State an additional GO-foot frontage
strip at an advantageous price along the entire one-mi Ie frontage.
Commissioner Vant Hull asked Mr. Delaney if he feels any I ight industrial property should
be provided within this subdivision.
Mike Delaney stated that one of his initial proposals contained some light industrial
property. He noted, however, that during review it was suggested that might not be an appro-
priate use. He reminded the Commissioners that light industrial land has been designated along
Baxter Lane and North 19th Avenue; and industrial park areas should probably be kept in that
area of the community.
I I n response to a question from Commissioner Vant Hull, Mr. Delaney noted that no matter
how well a project is planned and what design criteria have been established, the success of the
project lies in the ability of people to use it. He noted that it is his ultimate goal to determine
what is missing in the market place and then address that void.
Commissioner Jordan stated he feels one of the main problems with the Valley Unit Subdi-
vision was the scope of the project. He noted it was very large; and the City wasn't ready for
it. He noted this is still quite a large project; and the commercial areas will be the first to de-
velop. He then asked Mr. Delaney why he feels the rest of the project wi II be completed and
the remainder of the areas developed.
Mr. Bob Lee noted that at the present time, there is a lag in the demand for residential
properties. He noted, however, there is a shortage of large commercial tracts. He indicated
that he feels the proposed changes are better than the existing tiered zoning and will produce a
more attractive area.
Mr. Don Borgeson, 311 Teton, stated support for the proposed Master Plan Amendments.
He noted that this community needs a convention center and other facilities to attract people and
get them to stay in the area for a few days.
Mr. Roger Craft, 715 West Koch Street, expressed concern about rezoning along U. S.
Highway 191. He reminded the Commission that if they approve these Master Plan Amendments,
they will basically be locking the Zoning Commission into decisions about rezoning of the prop-
erty. He stated the Master Plan is a product of many citizen hours of work and should not be
destroyed by piecemeal changes. He then reviewed the six criteria for consideration of master
I plan amendments. He noted that significant changes have been made in the area with develop-
ment of the tech park near Montana State University. He noted that, although many companies
may locate in that park, others may prefer the Valley Unit area.
Mr. Craft noted that three areas have been designated for technological research, approx-
imately 100 acres near MSU, 15 acres at the old Summit Engineering site and 122 acres in Valley
Unit, 80 acres of which is located outside city limits. He noted that if this master plan amend-
ment is approved, one-half of the available T-R property will be eliminated at a time when the
city, county, state and university have indicated an active interest in this type of development.
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340
Roger Craft stated that he feels the current zoning is more in keeping with the long-term
development goals of the community. He indicated that prevention of strip development and pro-
tection of the downtown area have been City goals since he arrived in 1960. Mr. Craft then
noted this request includes 42 acres of commercial property. He stated the Central Business Dis-
trict contains 84 acres, 32 acres of which is currently in commercial use. Mr. Craft urged the
Commission to deny this request.
Mr. Mike Money, 105 Teton, stated he has several concerns about the proposed Master I
Plan Amendment. He noted that planning is not a design discipline; but it takes various disci-
plines, including engineering, architecture and market place demands, into consideration while
reviewing a proposed development.
Mr. Money noted that property values of the homes in Valley Unit Subdivision had de-
clined substantially over the past few years, largely due to the fact that the developer has not
proceeded with his plans. He stated one of his major concerns is traffic in the area. He noted
that vehicles currently travel at high rates of speed along the straight streets which have been
developed in the subdivision. He also noted that commercial development may increase the traffic
flow by 3 to 5 percent; however, it will also change the characteristics and traffic patterns.
Mr. Money stated many of the residents in Valley Unit Subdivision have sunk everything
they had into their homes; and he feels that any additional development in that area should bear
its own costs. He then indicated he is neither for nor against this proposal, recognizing that
something must occur.
Mr. Jim Banks, 7 Hill Street, stated he was not present at the Planning Board meeting of
July 23. He noted that the proposal before the Commission is less extensive and drastic than
the original proposal submitted to the Board on June 11. He reminded the Commission that the
Board's recommendation is unanimous, however, he noted he is not sure whether he would have
voted for or against the proposal because he has several concerns. He noted that he has great
respect for the Master Plan; and he feels it should be amended only when it clearly should be.
He also expressed concern about commercial development west of Main Mall, noting that changes
one of the goals to maintain the community's approaches. Mr. Banks then encouraged the Com- I
mission to observe its customary one-week waiting period before making a decision on this re-
quest to consider the testimony which has been submitted.
Mr. Delaney noted that when one does things right, everything falls into place. He
noted that in an article on Indianapolis in the latest National Geographic, it indicates that
revitalization begins with one successful project. He then responded to some of the comments
made by the various speakers. He indicated that in this project, he plans to address the needs
of the market place, noting that the shopping desires of the 21 st century must be kept in mind.
He stated if this project is a success, the market values that have declined over the past few
years should turn back upward, likely exceeding where they were before.
Mr. Delaney noted there are some existing traffic problems, especially along West Babcock
Street and the way it intersects with West Main Street. He indicated that he anticipates that all
development in that area will bear its own costs.
Mike Delaney stated that the market place will dictate what type of development will be
successful. He noted that technological research development was thought to be ideally suited
for the subject area; however, it has not yet developed. He also noted that the Valley Unit Sub-
division area cannot successfully compete with the tech park being developed near the Uni-
versity. Mr. Delaney then reminded the Commissioners that changing the land use designation
to commercial does not preclude technological research activities, but broadens potential de-
velopment of the area. He stated that "high touch equals high tech, II noting that high tech
parks are located in areas with a large amount of amenities.
Mr. Delaney stated he wants to eliminate the tiered type of zoning and development, I
noting that he does not feel that type of zoning addresses the needs of the market place. He
also noted that down-zoning of the residential areas should encourage development within the
subdivision. He further indicated that it is his goal that development of this subdivision is
synergistic, noting that the planned golf course and athletic club will contribute to that concept.
He cited the Homestead Park in Billings as an example of the synergistic approach, noting it is
the only successful development in that community in the past five years, in spite of the lousy
economy.
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341
Mike Delaney reminded the Commission that he is a major property owner in the downtown
area; and he does not anticipate that his proposal would have a negative impact on the downtown
area, but rather that it wi II enhance the downtown. He then indicated that through development
of this area, he plans to pay the special assessments in full. He also indicated that he does not
plan to seek additional. special improvement districts to develop the area, noting that use of that
mechanism is conducive to mistakes by the developer.
I Mr. Delaney noted that the Valley Unit Subdivision was the s~ngle largest subdivision in
the state when it was done and became the largest failure in the state. He noted that something
has to be done to change the image of that area; and he feels his proposal will do so.
Commissioner Vant Hull stated she feels there are many unanswered questions about this
proposal and suggested that the public hearing be continued rather than closed at this time.
City Manager Wysocki submitted to the Commission a letter from Jack W. Greenway stating
support for the downgrading of the residential land use designations and opposition to the re-
quested general highway commercial land use designation.
Mayor Mathre continued the public hearing to the next regular Commission meeting to be
held at 2: 00 p. m. on Monday, August 10, 1987.
Public hearin - Zone Code Amendment - amend Sections 18.04, 18.30.020, 18.52.140 (J) and
18.52.140 0 t e ozeman Municipa ode to provide a de imtlon or health and exercise es-
tablishments and to allow same as a permitted use in the B-2 district and a conditional use in the
R-Q and T -R districts - Delaney and Company
This was the time and place set for the public hearing on the Zone Code Amendment re-
quested by Delaney and Company to amend Sections 18.04,18.30.020, 18.52.140(J) and
18.52. 140 (P) of the Bozeman Municipal Code to provide a definition for health and exercise es-
tablishments and to allow same as a permitted use in the B-2, Community Highway Business, Dis-
trict and as a conditional use in the R-Q, Residential--Office, and the T -R, Technology Re-
search, Districts.
Mayor Mathre opened the public hearing.
I Long Range Planning and Subdivision Administrator Marcia Elkins presented the Staff Re-
port. She stated that health and exercise estabHshments are currently a permitted use in the
B-3, Central Business, District; however, no definition has been developed for such facilities.
She noted that amusement and recreational facilities are allowed as a conditional use in some of
the other zoning districts.
Planner Elkins stated that the Zoning Commission reviewed this requested Zone Code Amend-
ment, considering the twelve criteria. She indicated that the Zoning Commission then concurred
in the staff's recommendation for approval of the definition and allowing health and exercise es-
tablishments as a permitted use in the B-2 district. She noted that the Zoning Commission
members were evenly divided on whether to allow such facilities as a conditional use in the R-Q
and T -R districts; therefore, that portion of the application is forwarded to the City Commission
without any Zoning Commission recommendation, although the Planning staff did recommend ap-
proval.
Mr. Mike Delaney, applicant, stated that health clubs and facilities can be a positive ele-
ment in technology research areas as well as in office areas. He noted that many large corpor-
ations are including health facilities in their complexes for employees. He stated that if this
application is approved, many companies not large enough to install their own facilities could
,have a health and exercise establishment in close proximity for their employees. Mr. Delaney
stated that his wife owns the Summerhouse Spa; and if this application is approved, she would
consider locating that facility in the Valley Unit Subdivision.
Commissioner Vant Hull asked if a size restriction on such facilities should be included,
I particularly for the R-O zone.
Planner Elkins stated that the purpose of the conditional use process is to address such
items. She indicated that she does not feel such restrictions would be appropriate under the
Zone Code Amendment process.
Commissioner Jordan noted that available off-street parking could have an impact on how
large the facility could be.
Planner Marcia Elkins concurred, noting that parking and traffic impacts will probably be
the major issues addressed during any conditional use process for this type of facility.
Mayor Mathre noted that the possibility of allowing this type of facility as an accessory
use was discussed during the Zoning Commission meeting.
08-03-87
342
Planner Elkins stated that health and exercise establishments are not appropriately con-
sidered as an accessory use. She indicated that such a facility could more appropriately be con-
sidered an amenity within a development or a high tech park. She noted this type of develop-
ment is becoming more popular around the nation.
Mr. Bob Lee stated support for this application. He indicated that he feels health and
exercise establishments are appropriate in business districts as well as office complexes and high
tech areas, noting that use of the conditional use process in the last two areas would address I
any concerns which might arise.
Mr. Delaney stated that the last letter contained in his proposal on the above agenda item
contained a letter from Mr. Bill Martel indicating support for locating health club facilities in a
technology research zone.
No one was present to speak in opposition to the requested Zone Code Amendment.
Mayor Mathre closed the public hearing.
It was moved by Commissioner Martel, seconded by Commissioner Vant Hull, that the Com-
mission waive the customary one-week interval. The motion carried by the following Aye and No
vote: those voting Aye being Commissioner Martel, Commissioner Vant Hull, Commissioner
Jordan, Commissioner Stiff and Mayor Mathre; those voting No, none.
It was moved by Commissioner Vant Hull, seconded by Commissioner Jordan, that the Com-
mission approve the Zone Code Amendment requested by Delaney and Company to amend Section
18.04,18.30.020, 18.52.140(J) and 18.52.140(P) of the Bozeman Municipal Code to provide a def-
inition for health and exercise establishments and to allow same as a permitted use in the B-2
District and as a conditional use in the R-Q and T -R Districts. The motion carried by the fol-
lowing Aye and No vote: those voting Aye being Commissioner Vant Hull, Commissioner Jordan,
Commissioner Stiff, Commissioner Martel and Mayor Mathre; those voting No, none.
Adjournment - 11 :05 p.m.
There being no further business to come before the Commission at this time, it was moved
by Commissioner Jordan, seconded by Commissioner Stiff, that the meeting be adjourned. The I
motion carried by the following Aye and No vote: those voting Aye being Commissioner Jordan,
Commissioner Stiff, Commissioner Martel, Commissioner Vant Hull and Mayor Mathre; those voting
No, none.
JUDITH A. MATHRE, Mayor
ATTEST:
Clerk of the Commission
I
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