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HomeMy WebLinkAbout1987-08-17 361 MINUTES OF THE MEETING OF THE CITY COMMISSION BOZEMAN, MONTANA .jz. August 17, 1987 ************************ The Commission of the City of Bozeman met in regular session in the Commission Room, I Municipal Building, August 17,1987, 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 August 3, 1987 be approved as amended. 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 minutes of the regular meeting of August 10, 1987 be approved as amended. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Stiff, Commissioner Martel, Commissioner Vant Hull, Commissioner Jordan and Mayor Mathre; those voting No, none. It was moved by Commissioner Martel, seconded by Commission Vant Hull, that the min- utes of the special meeting of August 11, 1987 be approved as amended. The motion carried by the followi ng Aye and No vote: those voting Aye being Commissioner Martel, Commissioner Vant Hull, Commissioner Jordan, Commissioner Stiff and Mayor Mathre; those voting No, none. I Commission Resolution No. 2669 - creatinq the Special Sidewalk, Curb, Gutter and Alley Ap- proach Fund and prescribing covenants for said oonds City Manager Wysocki presented Commission Resolution No. 2669, as reviewed by the City Attorney, entitled: COMMISSION RESOLUTION NO. 2669 RESOLUTION RELATING TO $90,000 SPECIAL SIDEWALK, CURB, GUTTER AND ALLEY APPROACH BONDS, SERIES 1987; CREATING SPECIAL SIDEWALK, CURB, GUTTER AND ALLEY APPROACH FUND AND PRESCRIBING COVENANTS OF THE CITY FOR THE SECURITY OF THE HOLDERS OF THE BONDS. The City Manager stated that Mae Nan Ellingson, Dorsey and Whitney, has indicated that this Resolution must be adopted, lowering the amount of the bonds from $95,500 to $90,000, which is closer to the actual costs involved. He noted that this Resolution replaces Commission Resolution No. 2667, which was adopted by the Commission at last week's meeting. Commissioner Jordan noted that the Director of Finance's memo refers to a problem with the procedure throughout the state. City Attorney Becker indicated that the State Statute is unclear on this process, since it attempts to combine the old procedure for ordering in of sidewalks with the new concept of re- quiring public hearings on public interest items. He noted that an outline of the procedures to be followed should be very helpful for future projects. Commissioner Martel asked what effect this Resolution may have on the bond sale which has been completed for this project. The City Attorney indicated that it has none. I It was moved by Commissioner Vant Hull, seconded by Commissioner Jordan, that the Com- mission adopt Commission Resolution No. 2669, creating the Special Sidewalk, Curb, Gutter and Alley Approach Fund and prescribing the covenants for the bonds for said fund. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Vant Hull, Com- missioner Jordan, Commissioner Stiff, Commissioner Martel and Mayor Mathre; those voting No, none. Discussion - possible revision of waterin~ restrictions City Manager Wysocki submitted to the Commission a memo from Director of Public Service 08-17-87 362 Dick Holmes indicating that when the watering restrictions were revised to allow watering a total of eight hours per day rather than the six hours per day previously imposed, the water con- sumption increased from about 6.5 million gallons to 8.3 million gallons per day. The Director of Public Service has recommended that watering restrictions not be revised at this time, but sug- gested that after Labor Day might be an opportune time for considering such an item. Commissioner Martel noted that figures in the memo submitted by the Director of Public Service does not coincide with the weekly water reports which have been submitted to the Com- I missioners. He also noted that the 8.3 million gallons per day is almost at the water treatment plant's capacity if the filter is still down. Director of Public Service Holmes stated that the filter has been repaired, so the plant is 100 percent operational again. He then indicated that the figures contained in his memo are the result of reviewing records at the plant and are not based on the weekly water reports. The Director of Public Service then noted that in the weekly water reports, the figures are based on averages, whether daily or weekly, while his figures are based on actual consumption on a given day, taking into consideration peak times and amounts as well as averages. He then indicated that the plant may peak at a rate of 12 million gallons per day for three to four hours, meaning that the plant is operating at full capacity and the levels in the tanks are still dropping; how- ever, the average daily production may only be 7 million gallons. Commissioner Martel stated that the amount listed under the "daily production peak" in the water reports is misleading because it is an average rather than a peak. City Manager Wysocki reminded the Commission that the increase in watering times has resulted in a 27 percent increase in the amount of water treated; and an additional increase can be anticipated if the watering restrictions are revised at this time. He noted that the weather will have a definite impact on that demand. Commissioner Martel stated that he feels people will use their judgment even if the hourly restrictions are lifted, noting that the cost of the water consumed will cause people to be care- ful. He then indicated support for retaining the odd/even system with no hour restrictions. Commissioner Jordan expressed hesitance in lifting the hourly restrictions at this time. I He also indicated support for the staff recommendation to wait until after Labor Day to make any revisions in the schedule. Commissioner Stiff stated he feels the hourly restrictions could be lifted at this time, as long as the Commissioners continue to receive the weekly water reports so they can continue to monitor the supply. He noted it is only two weeks until the Labor Day weekend; and fall is al- ready in the air. Mayor Mathre asked why the staff has recommended that the watering restrictions remain in effect until after Labor Day. Director of Public Service Holmes stated that historically, after Labor Day weekend most people have harvested their gardens and are rolling their hoses up. He noted by that time, people are looking ahead to school and other activities such as hunting and skiing. He indicated that observation is based on review of the water consumption records from past years. Commissioner Vant Hull noted that she could not support more than a one-hour increase for each water period a month ago; however, at this time she feels the hourly restrictions could be lifted and still protect the public health, safety and welfare. Commissioner Jordan asked how problems incurred by lifting the hourly restrictions could be addressed, noting particular concern about exceeding the capacity of the plant. City Manager Wysocki indicated that the Commission should recognize that if the lifting of hourly restrictions causes problems, the staff must be able to respond immediately and re-imple- ment those restrictions. It was moved by Commissioner Martel, seconded by Commissioner Vant Hull, that the hour- I Iy watering restrictions be lifted, leaving the odd/even restrictions in place, to become effective as soon as public notice can be given. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Martel, Commissioner Vant Hull and Commissioner Stiff; those voting No being Commissioner Jordan and Mayor Mathre. Discussion - FYI Items City Manager Wysocki presented to the Commission the following "For Your Information" Items: (1) Water use report for the week ending August 13, 1987. 08-17-87 363 (2) A listing of the various entities participating in the Certificate of Participation Pro- gram for Fiscal Year 1987~88, as requested by one of the Commissioners. Commissioner Stiff noted that the school district in Butte has participated heavily in this program and suggested that someone notify the school district here of this possible funding source. (3) A copy of the program for the Montana League of Cities and Towns Convention to be I held in Billings on September 16-18, 1987. (4) The City Manager reminded the Commissioners of the luncheon to be held with U. S. West representatives tomorrow. (5) The City Manager stated that the Demolay boys, through Howard Boxmeyer, have cleaned the median strips along North 7th Avenue and are making a quick clean-up sweep along the route to be followed through the community today. He suggested the Commission may wish to thank them for that effort. Mayor Mathre indicated she will write a letter of thanks. (6) The City Manager stated he will be on vacation on Wednesday through Friday of this week. (7) Commissioner Stiff noted the flower beds in front of City Hall look very good. The City Manager indicated that the ladies working in the front of the building are re- sponsible for weeding those flower beds. (8) Commissioner Stiff noted that in January 1988, the District 10 Chairman position will be open on the Montana League of Cities and Towns Board of Directors. He then indicated he feels that the Commission should send a letter of nomination to the Director of the League for replacement, suggesting that Commissioner Vant Hull be the individual nominated. It was moved by Commissioner Stiff, seconded by Commissioner Martel, that the Commis- sion authorize and direct the Mayor to send a letter to the Executive Director of the League nominating Commissioner Vant Hull to succeetj Mayor Mathre as the District 10 Chairman. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Stiff, I Commissioner Martel, Commissioner Vant Hull, Commissioner Jordan and Mayor Mathre; those vot- ing No, none. (9) Commissioner Jordan asked that his absence from the meeting of September 8 be placed on next week's agenda. Work session - Budget for Fiscal Year 1987-88 The Commission continued to review the City Manager's recommendations for the budget. City Manager Wysocki noted that the Commission has reviewed through Page 102 during previous work sessions, noting only the Enterprise Funds remain. He reminded the Commis- sioners that enterprise funds are operated as separate and distinct entities, similar to private businesses. The Commission then reviewed those budget units, as follows: Water Operations. The amount budgeted for "telephone and telegraph" has dropped be- cause one telephone has been eliminated. The "contracted services" line includes the pro rata portion of the audit costs for the Water Fund, as well as monies for cleaning of the Bozeman Creek pond. The City Manager noted that last year's activity shows a budget amendment from "rents and leases" to "machinery and equipment." He indicated these monies are for the lease/purchase of a backhoe; and this change in budgeting is consistent with the accounting procedures. He reminded the Commission that since this is an enterprise fund, the manner in which items are budgeted is different. He noted, however, that he and Di rector of Finance Gamradt have dis- cussed the placement of lease/purchase items in the capital portion of the general fund opera- I tions budget units so they are more obvious. Commissioner Stiff stated support for the proposed budgeting treatment of lease/purchase items. He then noted the City currently has a five-year capital improvement program plan which runs until 1988, which he feels should be carefully reviewed. He then asked if any of those items in that listing will become duplicated through this procedure; the City Manager indicated they will not. Director of Finance Gamradt stated this is the first time depreciation has been shown in the budgets. He noted that at the time the budget was prepared, he did not have an accurate breakdown of assets between the operations and plant portions of this fund, as well as the fol- 08-17-87 351~ lowing fund, so the depreciation has been evenly divided between the two budget units within the fund. He noted that split will be adjusted when the proportions have been determined. The Director of Finance then indicated that one item the Commission must address is whether it wish- es to fully fund depreciation in the future. Commissioner Stiff cautioned that the Commission must remember that the City is now bud- geting for depreciation and paying the debt service; and they must be careful not to duplicate those costs through full funding of the depreciation, which would result in inflated budget costs I and thus the rates charged to customers. He then noted that the Commission may wish to con- sider sale of additional bonds at the same time it considers the capital improvement program for this fund, since that is the only option for funding of large projects at this time. Director of Finance Gamradt stated that the Comprehensive I nsurance budget unit review- ed in a previous work session covers insurance costs for general fund operations only; there- fore, a portion of the insurance costs and deductibles is budgeted under "insurance and bond- ing" here. Commissioner Martel noted that the amount budgeted under "gas and electric" has drop- ped. Director of Finance Gamradt stated that the staff feels the amount budgeted is closer to the actual costs incurred during recent years. He noted in the past, the worst case scenario was budgeted, which usually inflates that portion of the budget. Commissioner Martel noted that the Public Service Commission order from the water rate increase in 1981 indicates that 46 percent of the cost of operations and maintenance is attribu- table to customer costs, which seems inordinately high. He then asked if that percentage has decreased since 1981. City Manager Wysocki reminded the Commissioners that in 1981, the City had little histor- ica I data. Commissioner Vant Hull stated once again that she feels the meter reading operations could be more effectively handled. She also suggested that bill averaging might be helpful. Commissioner Martel suggested that since the water bills are on the computer, it would be I easy to have a space for those without remote meters to send back their meter readings with thei r payments. Water Plant. The Director of Finance noted that the amount budgeted under "salaries" has been decreased slightly. He indicated that one employee retired, with the new individual coming in at a lower salary. The City Manager noted that if the State concurs, the City may begin to operate the water treatment plant unmanned during some periods of time. He indicated that most of the equip- ment needed for this conversion has been made over a period of time. Commissioner Stiff noted that the debt service for the 1982 Water Revenue Bonds is shown in the previous budget unit and asked if a portion of that cost should be reflected in this bud- get unit as well. Director of Finance Gamradt stated that historically, the debt service costs have been shown in the operations portion of this fund. He then noted that on the financial statements, these two budget units are combined into one set of figures. Sewer Operations. The City Manager indicated that the salaries portion of this item has increased, since it includes monies to hire two additional employees to work on rodding and flushing the sewer lines, beginning in those areas where sewer backups have become a problem. He noted that the entire system needs a maintenance program; and the initial cleaning will prob- ably take over a year to complete. He also noted that line replacement will be necessary in some areas of the community. Commissioner Martel asked about the increase in "postage" for this budget unit. I Director of Finance Gamradt stated that he is anticipating a postal rate increase in May 1988. He also noted that the amount budgeted last fiscal year was too low. The Director of Finance then indicated that a portion of the audit costs are included un- der "contracted services. II Commissioner Martel asked if the men hired under this budget unit could also be used in the Water Department to check the fire hydrants; the City Manager indicated that they could. He cautioned, however, that the fund must be able to support those additional costs before they are incurred. 08-17-87 365 Sewer Plant. City Manager Wysocki noted that the salaries under this budget unit have increased somewhat. He stated that in the past, part-time individuals have been hired for the sludge injection process; however, due to downtime on the equipment and lack of supervisory power over those individuals, full-time employees will do the work and be paid at the overtime rate when necessary. Commissioner Stiff asked how the contracts for sludge injection, as well as other miscel- I laneous contracts, are tracked. He also asked how much revenue is derived from this source. The Director of Finance stated that Don Noyes, Superintendent at the Waste Water Treat- ment Plant, keeps track of those items. He further indicated that he has a detailed listing of revenues which reflects monies taken in for the various contracts in prior years. He noted that the City anticipates receiving between $7,000 and $8,000 this year from sludge injection. City Manager Wysocki indicated that a large portion of the monies contained under "con- tracted services" is for repair of the percolation beds. He noted that once an adequate repair method has been determined, the City will seek EPA funding to accomplish that process on all the beds. Garbage Collection. City Manager Wysocki stated this is basically the same budget as last year's. He noted the amount budgeted under "insurance and bonding" includes the pro rata share of the premiums which will be paid through this budget unit. Commissioner Martel asked how the new trucks are working. The City Manager indicated that he has observed how the back-up device works, noting that it works well. He then noted that when dumpsters are involved, that device must be over- ridden because the truck stops three to four feet from the dumpster. Garbage Disposal. The City Manager indicated that he feels the possibility of incineration should be carefully reviewed. He noted that the electrical costs for the sewer plant are esti- mated at $84,000 for the upcoming year; and this alternative could result in cost savings in that area as well as extend the fife of the landfill. City Manager Wysocki stated that amount budgeted for insurance has decreased. He I noted that in the past, monies have been budgeted for additional insurance at the landfill; how- ever, such insurance is not obtainable. He then indicated that the amount budgeted under "rents and leases" includes the caterpillar used at the landfill. He noted this is appropriate budgeting because the City does not intend to purchase the unit at the end of the lease/pur- chase period. Director of Finance Gamradt then turned the Commission's attention to the recommendation contained in the City Manager1s letter of transmittal concerning funding of the capital improve- ment program. He noted that under this recommendation, one-half of the monies realized as an excess of revenues over expenditures for the immediate past fiscal year, up to $50,000, would be placed in the capital improvement program, with the remainder being placed in the undesignated reserve for the General Fund. He noted that under this system, the capital improvement pro- gram would retain some type of revenue source and the undesignated reserve could continue to grow. Commissioner Stiff expressed concern about the proposed process, questioning whether a portion of the monies to be placed in reserves can be set aside for next year's capital items. He stated he feels the monies should be placed in the reserves and then pulled out for the capital improvement program. City Manager Wysocki reminded the Commissioners that the revenues received have been within 1 percent of the amount budgeted. In response to a question from Commission Stiff, Director of Finance Gamradt indicated that the books for Fiscal Year 1987 will be closed in about two weeks, which is about two months I after the close of the fiscal year. He then indicated that if the Commission would prefer, the staff could close the books for the previous fiscal year; and they could then appropriate monies from the reserves to the capital improvement program for the upcoming fiscal year through a budget amendment. The Commissioners stated preference for that method. Commissioner Stiff then asked about a capital improvement program for the enterprise funds, in light of the depreciation expense being shown in the operating budget. He then noted that if a vehicle is depreciated over five years, some monies should be available in the oper- ations budget to purchase a replacement. He noted, however, that replacement of a large physi- cal plant type item should not be funded through depreciation but rather through a bond issue. 08-17-87 36G Commissioner Marte1 asked if a depreciation schedule could be included in the budget in future years. He also indicated a desire to know the balance of the proceeds from the water bond issue. The Director of Finance indicated that if it can be developed in a format for a de- preciation schedule that would be meaningful, he will do so for future budgets. He then indi- cated that he will also review the records to determine the balance of the bond proceeds. Commissioner Martel then indicated that he feels it would be appropriate to budget the I capital improvement program on an October 1 fiscal year, noting that the revenues would be known by that time. Commissioner Vant Hull noted that she had submitted to the Commissioners a list of sug- gestions for increasing revenues. She then asked if the Commissioners wished to consider those items in light of keeping all of the uniformed police officers on duty, rather than eliminating one position as proposed. The City Manager noted that a slight revision has been made in that process, so that one sworn officer is now working one-half time in that capacity and one-half time as a parking at- tendant. Following discussion, the Commissioners concurred that they would like to discuss the suggestions on the next fifth Monday; however, they do not wish to consider them as a part of this budgeting process. Tentative Appropriation Ordinance for Fiscal Year 1987-88 City Manager Wysocki presented the Tentative Appropriation Ordinance, entitled: TENTATIVE APPROPRIATION ORDINANCE AN ORDINANCE OF THE CITY OF BOZEMAN, MONTANA, APPROPRIATING CITY FUNDS FOR VARIOUS BUDGET UNIT EXPENDITURES, AND FURTHER APPRO- PRIATING REVENUE NECESSARY TO OPERATE AND MAINTAIN CITY SERVICES FOR SALARIES, OPERATIONS AND CAPITAL FOR EACH OPERATIONAL BUDGET UNIT OF MUNICIPAL GOVERNMENT FOR THE FISCAL YEAR ENDING JUNE 30, I 1988. The City Manager stated that two different versions of this ordinance have been prepared and submitted for Commission consideration. He indicated that both versions are based on the figures contained in the recommendations he has submitted. He noted the first version is a dif- ferent format, and addresses auditor comments made during the last auditing period. He noted the second version is in the same format as prior appropriation ordinances. Director of Finance Gamradt noted that the auditors must compare all budget figures to actual expenditures; and last year the auditors indicated this comparison results in more detail than is necessary in the financial statements. He stated that the first version addresses that comment, listing only the total operations budget for each budget unit. He also noted that only the total figure is then used as a check figure, rather than the three categories now used. He indicated that could reduce the amount of budget amendments necessary during a fiscal year. Following discussion, the Commissioners concurred that they prefer the second format, which has been followed in past years. It was moved by Commissioner Jordan, seconded by Commissioner Stiff, that the Commis- sion provisionally adopt the Tentative Appropriation Ordinance and set the public hearing date for August 31, 1987. 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. Consent Items I City 31 s of September 8 and 08-17-87 36 7 It was moved by Commissioner Stiff, seconded by Commissioner Martel, 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 Stiff, Commissioner Martel, Commissioner Vant Hull, Com- missioner Jordan and Mayor Mathre; those voting No, none. I Recess - 4:40 p.m. Mayor Mathre declared a recess at 4:40 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. This was the time and place set for the public hearing on the Conditional Use Permit re- quested by Dr. Albert McChesney to allow a 6, 900-square-foot structure for manufacturing and sales of wood products on Lot 9, McChesney Industrial Park. The site is commonly located at the southwest corner of the intersection of Gilkerson Drive and Griffin Drive. Mayor Mathre opened the public hearing. Community Development/Zoning Specialist Dave Skelton presented the Staff Report. He stated this application was originally for a 7,300-square-foot building, but the size was de- creased to provide an adequate utility easement along the eastern portion of the property. He noted that 8.5 parking spaces are required; and the applicant will provide 13 parking spaces un- der this proposal. I The Planner noted that the subject property is located in an M-2- T zone, requiring that the application be reviewed through the conditional use process. He stated this application is in general compliance with the six criteria for conditional use permits as well as the three special criteria for this "T" zone. Planner Skelton stated that the Zoning Commission reviewed this application and concurred in the Planning Staff's recommendation for approval, subject to five conditions. He then noted that since that time, the City Engineer has suggested that another condition be added to require that the applicant sign a waiver of protest for the creation of a special improvement district for paving of Griffin Drive. He noted that the City Engineer further indicated that this application does not include a five-foot sidewalk along Gilkerson Drive as required by City policy. He stated, however, that no other sidewalks have been required along Gilkerson, so the City Engi- neer has suggested that sidewalks not be required until all sidewalks within the subdivision are ordered in. Mr. John Miller, applicant1s representative, indicated that he is willing to accept all of the conditions recommended by the Zoning Commission. Mayor Mathre asked about the additional condition recommended by the City Engineer. Mr. Mi lIer indicated that Dr. McChesney has signed waivers for Griffin Drive for other develop- ments in this subdivision; and he sees no problem with the added condition. Mr. Miller then asked whether a sidewalk will be required at this time. Mayor Mathre not- ed that the Commission has not yet discussed this matter and is, therefore, not prepared to im- pose the condition at this time. I No one was present to speak in opposition to the requested Conditional Use Permit. Mayor Mathre closed the public hearing. It was moved by Commissioner Jordan, seconded by Commissioner Stiff, that the Commis- sion waive the customary one-week waiting period. 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 Commis- sion approve the Conditional Permit requested by Dr. Albert McChesney to allow a 6, 900-square- foot structure for manufacturing and sales of wood products on Lot 9, McChesney Industrial 08-17-87 ----------- 360 Park, subject to the following conditions: 1. That existing and finish grades, spot elevations for site surface drainage, and exterior building dimensions be reviewed and approved by the City Engi- neer prior to Final Site Plan approval; 2. That concrete curbing comply with City standards and that the sidewalk be- tween the proposed building and off-street parking lot comply with Section 18.62.180(c) of the Bozeman Area Zoning Code; 3. That the applicant shall submit a waiver of protest for the creation of a I special improvement district for improvements to Griffin Drive; 4. That the developer enter into an Improvements Agreement with the City of Bozema n . 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 and their installation for each phase. Detailed cost estimates, construction plans, and methods of security shall be made a part of that Agreement; 5. That three copies of the Final Site Plan containing all the conditions, cor- rections, and modifications approved by the City Commission be submitted for review and approved by the Planning Director within six months of the date of the City Commission approval, and prior to the issuance of a bui Id- ing permit for the project. One signed copy shall be retained by the Build- ing Department, one signed copy shall be retained by the Planning Director, and one signed copy shall be retained by the applicant; 6. That all on-site improvements (i.e., paving, landscaping, etc.) shall be com- pleted within 18 months of the approval of the Conditional Use Permit. The Conditional Use Permit shall be valid for a period of only 18 months follow- ing approval of the use. 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 Commission for their action. If all required conditions have been satisfied, the permit wi II be permanently renewed. The motion carried by the following Aye and No vote; those voting Aye being Commissioner Stiff, Commissioner Martel, Commissioner Vant Hull, Commissioner Jordan and Mayor Mathre; those voting No, none. Public hearing - Conditional Use Permit - Michael Dean - allow a 5,000-square-foot warehouse I structure for beauty shop supply house on Lot 6, Bomont Center Subdivision ( 1412 Gold Avenue) This was the time and place set for the public hearing on the Conditional Use Permit re- quested by Michael Dean to allow a 5,000-square-foot warehouse structure for beauty shop sup- ply house on Lot 6, Bomont Center Subdivision. The site is commonly located at 1412 Gold Ave- nue. Mayor Mathre opened the public hearing. Community Development/ Zoning Specialist Dave Skelton presented the Staff Report. He noted the original application was for a 6,000-square-foot warehouse structure; however, the ap- plication has been revised downward to 5,000 square feet. He indicated that a 3,500-square-foot portion of the structure will be utilized for a beauty shop supply business and the remaining 1,500-square-foot section will be leased to another business. He stated that 11.9 parking spaces are required; and 13 are to be provided under this application. He noted this property is locat- ed in an M-1- T zoning district, therefore, this application must go through the conditional use process. He stated the application is in general compliance with the six criteria for review of conditional use permits as well as the three criteria for development in this zoning district. Planner Skelton stated that a ten-foot utility easement was shown along the northern boundary of the lot; and one of the conditions is that the four utility companies involved sign releases for that easement. He indicated that the applicant has submitted those releases to the Planning Office. The Planner stated that the Zoning Commission considered this application and concurred I in the staff's recommendation for approval, subject to five conditions. He noted the City Engi- neer has submitted a note that sidewalks are now shown on this application; however, other de- velopments within the subdivision have not installed sidewalks. He indicated the Commission should possibly consider ordering sidewalks in for the entire subdivision at some time in the fu- ture. 08-17-87 37u Mrs. Kathy Dean, applicant, indicated concurrence with the five conditions recommended by the Planning Staff and the Zoning Commission. No one was present to speak in opposition to the requested Conditional Use Permit. 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 waiting period. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Martel, Commissioner Vant Hull, Commissioner I 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 Conditional Permit requested by Michael Dean to allow a 5,000-square-foot warehouse structure for beauty shop supply house on Lot 6, Bomont Center Subdivision, subject to the following conditions, as recommended by the Zoning Commission: 1. That the ten-foot utility easement along the north property boundary be vacated by the appropriate utility agencies prior to Final Site Plan ap- proval: 2. That all concrete curbing meet City standards and that backup maneuvera- bility be provided along the west end of the off-street parking lot; 3. 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 and their installation for each phase. Detai led cost estimates, construction plans, and methods of security shall be made a part of that Agreement; 4. That three copies of the Final Site plan containing all the conditions, cor- rections, and modifications approved by the City Commission be submitted for review and approved by the Planning Director within six months of the date of the City Commission approval, and prior to the issuance of a build- ing permit for the project. One signed copy shall be retained by the Plan- ning Director, and one signed copy shall be retained by the applicant; 5. That all on-site improvements (i.e., paving, landscaping, etc.) shall be com- I pleted within 18 months of the approval of the Conditional Use Permit. The Conditional Use Permit shall be valid for a period of only 18 months follow- ing approval of the use. 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 Commission for their action. If all required conditions have been satisfied, the permit wi II be permanently renewed. 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 vot- ing No, none. - allow a fraternit This being the time and place set for the public hearing on the Conditional Use Permit requested by Delta Sigma Phi Alumni Corporation to allow a fraternity house on Lots 8-13, Block 52, Capital Hill Addition. This site is more commonly known as 1417 South Fifth Avenue. Mayor Mathre opened the public hearing. Long Range Planning/Subdivision Administrator Marcia Elkins presented the Staff Report. She noted the subject application is to allow a fraternity house in an existing structure at 1417 South Fifth Avenue. The subject parcel is zoned R-3, Residential--Medium-Density; and frater- nity houses are a conditional use in that zoning district. The Planner noted that under this application, seven off-street parking spaces are required; and nine would be provided in the rear of the lot. Also, the alley would be designated one-way from north to south to accommo- I date traffic. Planner Elkins stated that this application would allow fifteen fraternity members to live in this house, along with one houseparent. Additional members of the fraternity would gather at the site for various functions but would not sleep there. The Planner indicated that an outside entry would be provided to the basement, which would serve as a dorm under this application. The main floor would serve as the living area, with the garage being converted to a community room. 08-17-87 371 Planner Marcia Elkins stated that the six criteria for consideration of a conditional use request have been addressed in the staff report. She noted that the report then recommends that the public hearing before the Zoning Commission be continued until the applicant has had an opportunity to address some of the concerns raised. She stated the Zoning Commission con- ducted and closed its public hearing, after which it voted to recommend denial of the appli- cation. I The Planner stated some of the items of concern listed in the staff report are the density and intensity of this proposed use compared to other uses allowed in the zoning district; and the impacts from additional vehicular traffic and parking in the immediate area. Planner Elkins then stated that Commission Resolution No. 980, adopted July 27, 1960, allows adjoining property owners the right to occupy and use, for park purposes, the Lincoln Street right-of-way from South Third Avenue to the west property line of the alley between South Fifth Avenue and South Sixth Avenue. The Resolution further provides that the City may revoke this right to use upon sixty-day notice. She noted this Resolution does create problems for designating the alley as a one-way alley to provide a traffic pattern. Planner Elkins stated that during the public hearing before the Zoning Commission, con- cerns were expressed about noise, traffic impacts and the impact on property values. Mr. Chet Uber, active member of the Delta Sigma Phi Fraternity, stated the fraternity is willing to comply with all of the zoning regulations and applicable laws. He noted that in the testimony submitted by opponents during the Zoning Commission meeting, the fraternity was not specifically mentioned; however, discussion was directed to fraternities in general. He then submitted statistics to the Commission, noting that 15 percent of the student population is in fraternities; 71 percent of those listed in Who's Who are fraternity members; 76 percent of those in Congress were fraternity members; and 85 percent of the Supreme Court justices were frater- nity members. Mr. Uber noted that if a concrete pad were poured beside the driveway, a turn-around could be provided and two cars could then be parked in that area. I Chet Uber reminded the Commissioners that the fraternity has a legal right to live in the neighborhood, since it is zoned R-3, as long as they go through the conditional use process and meet all of the conditions imposed. He noted that with the close proximity to the college, much of the traffic generated by the fraternity wi II be foot traffic to the campus. Mr. Mike Money, 105 Teton, stated that he has met with the fraternity members concern- ing the viability of this location for the proposed use. He noted that the subject lot is 160 feet by 143 feet, which is a large residential lot. He noted that the site is surrounded, except on the front, by mature vegetation; and the proposal submitted preserves as much of that vegeta- tion as possible. He stated that a single-family residence currently exists on the property; however, the zoning would allow multi-family use of the site. Mr. Money indicated that, in addition to the plan under consideration at this time, he submitted an alternative which would provide a one-way traffic circulation through the property, entering along the driveway and around the side of the existing house, through an eleven-space parking lot in the rear, to the alley and one-way along the alley from south to north. Mike Money then reviewed six criteria discussed in the staff report. He noted that the site plan submitted for consideration is one which would alleviate major impacts on the neigh- borhood. He indicated concern has been expressed about additional traffic and parking prob- lems. He noted that the parking to be provided in the rear of the lot and the ingress/egress patterns should address that issue. He indicated that on-campus parking is also available to the college students. He stated another method for addressing the parking problems could be to im- plement a permit system as well as increasing the cost of parking tickets issued. He then re- I minded the Commission that with the existing zone, multi-family housing could be installed which would allow sixteen unrelated persons to live on that site with no public review. Mr. Money then noted that the question of where to locate fraternities and sororities has plagued people for quite a period of time. He noted that Greek Way has been zoned R-2, which does not allow fraternities. He stated the only other alternative suggested in recent years is the university campus, and they don't have the facilities to accommodate fraternities. 08-17-87 37~ Mr. Ted Benson, alumnus of the Delta Sigma Phi, 509 South 11 th Avenue, stated that this request has been made by the Alumni Control Board. He noted that compliance with the Control Board criteria, the University criteria, the City codes and the State Statutes will ensure that this request does not change the character of the general neighborhood. Commissioner Vant Hull noted that two fraternities are currently located on Greek Way. Planner Elkins stated that those fraternities were already constructed when the R-2 zon- ing designation was implemented. She then indicated that with the current zoning designation, I fraternities are not allowed to locate there. She stated that review of the zoning in that area is on the list of tasks; however, it does not have a high priority at this time. Commissioner Martel asked if area residents will be notified if the property along Greek Way is rezoned. Planner Elkins stated that it is not the staff's intent to initiate a rezoning of that area. She noted that options include development of a zoning district specifically for fraternities and sororities as well as review of the zoning districts in which they are allowed as a conditional use. The Planner then noted that Greek Way was originally established by the University to ac- commodate fraternities and sororities. Commissioner Vant Hull questioned the proposed one-way designation for the alley. Planner Marcia Elkins stated that a one-way alley must be designated by the Commission through adoption of an ordinance. She noted that process should be completed before a Condi- tional Use Permit is issued. Commissioner Martel asked at what density this lot could develop. The Planner indicated that through a minor planned unit development review, 16.8 per- sons could live on this site. She noted that such reviews do not require public hearings unless requested by the Zoning Commission; and there are very few times such requests nave been made. She then noted that a density bonus could be requested, which would require the public hearing process. Commissioner Martel asked if garbage pickup would be from the street or the alley. The Planner indicated that garbage collection is from the alley. She then noted that with I the abandonment of the right-of-way for Lincoln Street, the residents must ensure that an ade- quate turn-around area is provided for the garbage trucks. Commissioner Vant Hull asked if the City should require that the Lincoln Street right- of-way be left open between the alley and South Fifth Avenue to ensure access to the alley. Planner Elkins stated the City could require that the right-of-way between the alley and the street be maintained for vehicular traffic. Commissioner Martel asked if the obstructions along the Lincoln Street right-of-way are located on City property. The Planner stated that the obstructions currently there are the prep work for park-like development. She noted the individual has been in contact with the City Engineer; and the staff has suggested that the work not be done until the application before the Commission at this time has been acted upon. Commissioner Jordan asked when the work on the site was started; and the Planner indi- cated about the same time as this application was submitted. Commissioner Jordan stated he feels the Commission, staff and University representatives should meet and discuss this issue and take any necessary action so that the Commission is not constantly placed in a position of reacting to applications. Commissioner Vant Hull asked how many cars could be expected if fifteen fraternity mem- bers are located on this site. She also asked if more parking spaces could be required than are required through the zone code. Planner Elkins indicated that the Commission may place whatever conditions it wishes on I this application, as long as they are appropriate. Mr. Chet Uber stated that he anticipates eight to nine cars. He noted many of the mem- bers do not have cars, but some do have motorcycles. He also noted that with this site being located close to the campus, many of the members will walk. Mr. Benson noted that the fraternity has met the zoning criteria by providing nine off- street parking spaces. He further reminded the Commissioner that on-campus parking is avail- able. He noted that if a fraternity member does violate the parking regulations, the neighbors have the right to call and have the car ticketed. 08-17-87 373 Mr. Uber indicated that the applicant's presentation is completed. He noted another ac- tive member of the fraternity is present; however, they did not bring a large number to speak on this issue. Mr. Mike Lilly, attorney representing the property owners in the 1400 block of South Fifth Avenue, stated seven of the nine owners oppose the proposed Conditional Use Permit. He noted the current owner of the house is in favor of the application; and one property owner is I neutral. Mr. Li lIy noted that petitions of opposition have been previously submitted to the City. Mr. Lilly stated that he feels the location of fraternities and sororities is an issue which must be addressed; and he suggested that denial of this application could cause that to be done. He noted that Greek Way was established to provide an area, and the University is anxious to see it developed. Mr. Lilly indicated the Commission must consider the health, safety and welfare of the people in the community. He also noted the Commission must also consider whether the appli- cation is injurious to the property and the improvements located on it. He indicated that during the public hearing before the Zoning Commission, he submitted a letter from Mike Basile, realtor, stating that the placement of a fraternity on this parcel would have an adverse effect on other properties in the area. He also cited a recent U. S. Supreme Court case which he said involved a similar situation resulting in inverse condemnation to adjacent properties; and compensation for that decreased property value was required. He indicated that he feels revocation of the use of Lincoln Street could also have an adverse effect on property values. Mr. Lilly then urged the Commission to deny this application. Mr. Dalton Burkhalter, 1429 South Fifth Avenue, indicated he owns the property just south of the subject site. He noted that eight to ten letters of opposition were submitted during the Zoning Commission meeting. He then submitted to the Commission a letter of opposition from Carol S. Canfield, 21 Faculty Court. He also submitted a letter from Craig Roloff, office of the Director of Administration at MSU, listing the three lots available on Greek Way and indicating the prices in 1985 were $31,000 to $40,000. I Mr. Burkhalter stated that portions of Lincoln' Street have been closed for years; and he has just begun work on that area adjacent to his home. He noted that he started work on the landscaping in June, before the application for this Conditional Use Permit was filed; and he has worked with the City Engineer and the Sanitation Superintendent to be sure that he has pro- vided for all City requirements. He indicated that the garbage trucks have used the turn- around provided for the past three weeks; and the arrangement seems to be satisfactory. Mr. Burkhalter then reviewed the owners and uses on the nine lots along the 1400 block . of South Fifth Avenue. He noted that only one is not owner-occupied at this time; a majority of the residences are single-family dwellings. He indicated that eleven Greek houses exist in the general area; and the noise is disturbing, especially at party time. He noted that approval of this application would increase the noise and the traffic in the area. He indicated that at the present time, parking is a problem during any weekday when the college is in session. Dalton Burkhalter then stated that South Fifth Avenue dead ends, turning into Faculty Court which also dead ends. He noted that Lincoln Street has not been extended to cross South Fifth Avenue; therefore, a substantial amount of traffic turns around at the end of South Fifth. He stated that additional traffic would only make the problems in that area intolerable. Mr. Burkhalter stated that the intersection of South Fifth Avenue and West Grant Street is difficult to negotiate at best; and the alley is even more hazardous. He also noted that the added vehicular traffic could create more safety problems for the small children walking from Faculty Court to the school bus stop. Dalton Burkhalter encouraged the Commission to- provide a way for fraternities to develop I along Greek Way. He read from a letter dated November 15, 1963, in which the Board of Regents were given authorization to sell the land for creation of a subdivision on the campus for fra- ternity and sorority housing. He then noted that of the nine lots created in that subdivision, the University has retained ownership of one and five have been sold. He indicated that the fraternity representatives have indicated that the cost of lots is $125,000; however, he noted the letter indicates substantially lower figures. Mr. Gordon Herwig, 1412 South Fifth Avenue, noted that area was quiet when he moved there 24 years ago. He stated the general area has deteriorated with the development of multi- family housing and fraternities and sororities and encouraged the Commission to deny this ap- pi ication. 08-17-87 37 Lr Mrs. Barbara Kirby, owner of 1409,1411 and 1413 South Fifth Avenue, indicated she lives in Ennis. She noted her children have lived in the tri-plex which they own and stated that during the winter they were unable to travel through the alley unless a trai I had been broken. She also noted that in the winter, cars park farther into the street because of the snow build-up until the street becomes practically one lane wide. Mrs. Kirby then questioned whether fire trucks would be able to reach that area with the additional traffic and parking congestion which could be generated by a fraternity. I Mrs. Leona Barnes, 422 West Grant Street, noted that the house on the subject lot has less than 5,000 square feet, which is substantially smaller than the house this fraternity had proposed to construct on Greek Way. She questioned whether the house and the yard will pro- vide adequate space for the young men living there. Mrs. Barnes stated she has seen small children from Faculty Court in the street unsupervised; and she is concerned that additional traffic could jeopardize their safety. Mr. Steve Kovatch, 1221 South Fifth Avenue, stated he lives across the street from a fraternity. He noted that they make poor neighbors, particularly with their noise and traffic. He also noted that on-street parking is difficult to find when a fraternity is located in the area. Mr. John Thompson, 1213 South Fifth Avenue, submitted a letter of opposition to the Com- mission. He indicated that noise is a major problem, as well as parking, citing several examples of both problems. Mr. Thompson stated that he feels that Greek Way would be an appropriate place for the fraternity to locate. Break - 8:50 to 9:02 p.m. Mayor Mathre declared a break at 8:50 p.m., to reconvene at 9:02 p.m., in accordance with Commission policy established at their regular meeting of March 14, 1983. Public hearing (continued) - Conditional Use Permit - Delta Siqma Phi Alumni Corporation - allow a fraternity house on Lots 8-13, Block 51, Capital TIrrrAddltion 11417 South Fifth Avenue) Mayor Mathre noted the Commission has received several letters pertaining to this appli- I cation. She noted that, in addition to the letter from the University and the letter from Mrs. Canfield, submitted by Mr. Burkhalter, as well as the letter of opposition submitted by Mr. Thompson, the Commission has received letters of support from Mr. and Mrs. Utzinger, 1417 South 5th Avenue, and Phyllis Watters, 1401 South 5th Avenue, in the packets. Ms. Jeannie Utzinger, 1417 South Fifth Avenue, stated she lives on the subject property. She noted that the rear yard is large enough to accommodate a parking area for eleven cars. She noted, however, the alley is another matter. She indicated that under this application, the City can place conditions on the use; however, this seven-bedroom home could be used in other ways over which the neighborhood and the City would have no control. She then stated she is a senior at MSU; and she has not seen the problems listed by the various opponents to this ap- plication. She indicated that the neighborhood children create as much noise as the fraternity members. Mr. Chet Uber reminded the Commission that the alley is public property, being approx- imately twelve to fifteen feet wide. He asked why the fraternity couldn't use it if the residents in the area are allowed to. He then indicated that the figures for the cost of property along Greek Way set forth in their proposal were based on fair market value, as determined by a real estate agent. He noted that during conversations with MSU officials he found the cost of the available lots is $31,000 to $39,000. He stated that to construct a fraternity the size of the Utzinger house would be $235,000; and they can purchase the subject property for $113,900. He also indicated that the fraternity does not need a large house at this time; however, when they begin to expand again, they will. He stated that in the meantime, this site would be a good one I for them. Mr. Uber noted that if the neighbors feel that loud noises are coming from the property, the City police and the MSU security force patrol the area and can be called. He also noted that the University has placed restrictions on fraternities and sororities, including the require- ment for a party contract. He then indicated that parties are open by invitation only; and the fraternity members have identification cards which must be presented. Mr. Uber stated that the fraternity will be a good a neighbor as anyone else would be. 08-17-87 37~ Commissioner Vant Hull noted that the sites along Greek Way are almost double the size of this lot and asked if it would be better to locate there. Mr. Uber noted that the City is expanding, with U.S. West possibly locating here; and as the University expands, the area around the campus will become more multi-family type develop- ment. He noted that MSU has considered construction of a convention center on Greek Way, which may take the lots currently available off the market. He indicated now is not the time for I expansion of the fraternity, particularly with the new rule that freshmen must live in the dorms. Chet Uber stated that the Delta Sigma Phi has been located in the Quads for the past twenty years. He noted the Quads have now been designated for honor students and foreign students, as well as providing an incubator for new fraternities or sororities for the first year or two. Mr. Dalton Burkhalter reminded the Commission that the Zoning Commission unanimously recommended denial. He noted that access is restricted to the parking area in the rear; and parking will become a major issue if this application is approved. Mr. Mike Money noted that the alley is not wide enough to meet the standards for two- way traffic; however, that is what is currently allowed. He indicated that the alternative plan, which would provide for one-way circulation from the street through the property and out the alley, is a viable option which should also be considered. Mr. Money reminded the Commissioners that a fraternity is allowed as a conditional use in this area. He also noted that this fraternity has not been addressed specifically in the testi- mony which has been given. He then reiterated that density seems to be a concern in this ap- plication; however, the same density could be reached on that site without any type of public review. Mr. Morris Klare, 1430 South Fifth Avenue, noted that the fraternity indicated at the Zoning Commission hearing that this location may only be temporary. He stated he does not wish to see this single-family dwelling become a fraternity and later a multi-family dwelling. Mayor Mathre closed the public hearing. I It was moved by Commissioner Jordan, seconded by Commissioner Stiff, that the custom- ary one-week waiting period be waived. 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. Mayor Mathre noted that no staff recommendation has been submitted; therefore, no recom- mended conditions for approval are avai lable for Commission consideration. City Manager Wysocki cautioned the Commission that in developing reasons for their de- cision, they may wish the City Attorney's involvement. He also questioned the handling of that discussion at this time, suggesting it may be better for the staff to develop positions for which- ever decision the Commission decides to make. Mayor Mathre stated that she feels it would be better to have suggested conditions for approval before the decision-making process is entered into, since the Zoning Commission's recom- mendation for denial is currently available. She noted that the Zoning Commission did make its decision without having specific staff recommendations to consider. Commissioner Stiff indicated that he wants to make sure that the Commission's decision, either direction, is properly done. The City Manager noted he does not wish to submit a recommendation for this decision; however, he does feel that the basis for the Commission's decision must be proper. It was moved by Commissioner Stiff, seconded by Commissioner Martel, that the Commis- sion refer this item back to staff for development of recommendations for the decision on this item, with the decision to be placed on next week's agenda. The motion carried by the following I Aye and No vote: those voting Aye being Commissioner Stiff, Commissioner Martel, Commissioner Vant Hull and Mayor Mathre; those voting No being Commissioner Jordan. It was moved by Commissioner Vant Hull that the Commission reopen the public hearing until next week's meeting. The motion failed for lack of a second. Adjournment - 9: 40 p. m. There being no further business to come before the Commission at this time, it was moved by Commissioner Vant Hull, seconded by Commissioner Jordan, that the meeting be adjourned. 08-17-87 378 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 vot- ing No, none. JUDITH A. MATHRE, Mayor I ATTEST: Clerk of the Commission I I 08-17-87