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HomeMy WebLinkAbout2005-03-14 Minutes, City Commission, WORK -..--.--.--.-.-- MINUTES OF THE WORK SESSION MEETING OF THE CITY COMMISSION BOZEMAN, MONTANA March 14, 2005 ***************************** The Commission of the City of Bozeman met in work session in the Commission Room, Municipal Building, on Monday, March 14, 2005, at 7:00 p.m. Present were Mayor Andrew Cetraro, Commissioner Jeff Krauss, Commissioner Marcia Youngman, Commissioner Lee Hietala, City Manager Chris Kukulski, Director of Public Service Debbie Arkell, Director of Finance Anna Rosenberry, City Attorney Paul Luwe and Clerk of the Commission Robin Sullivan. Commissioner Steve Kirchhoff was absent. The meeting was opened with the Pledge of Allegiance and a moment of silence. Authorize absence of Commissioner Kirchhoff from this meetina It was moved by Commissioner Krauss, seconded by Commissioner Youngman, that the Commission authorize the absence of Commissioner Kirchhoff from this meeting. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Krauss, Commissioner Youngman, Commissioner Hietala and Mayor Cetraro; those voting No, none. Public comment No comment was received under this agenda item. Pre-aDDlication review for Oak SDrinas Maior Subdivision - a 78.0339-acre mixed-use residential subdivision between Durston Road and West Oak Street at Meagher Avenue (P-05001) Included in the Commissioners' packets was a memo forwarding the staff comments and the applicant's submittal. Senior Planner Dave Skelton gave an overview of the proposed subdivision and residential development on a 78.0339-acre parcel lying between Durston Road and West Oak Street at Meagher Avenue extended. The applicant has options to purchase both the 50-acre parcel that will soon be considered for annexation and the 18-acre remainder portion of the Diamond Estates Subdivision. Prior to looking at the preliminary plat, the staff asked the applicant to provide a master plan for development of the entire area, and a copy of that master plan has been provided. The Senior Planner noted that a ditch runs north/south on the property, and there are associated wetlands. The Senior Planner noted that when Diamond Estates Subdivision was initially platted, it included a 2-acre easement for parkland on the north edge of the subdivision. The applicant has proposed that those two acres be relocated to a larger park area in the core of the subdivision. The Senior Planner then noted that the applicant has worked with staff, the Development Review Committee, and Recreation and Parks Advisory Board and has amended his design to reflect the concerns that have been identified. Senior Planner Skelton noted the applicant has requested feedback on the following items: (1) the alignment of Annie Street, (2) street connectivity, both interior and perimeter, (3) the proposed mix of land uses and lot sizes, (4) secondary access to the property, and (5) parkland. The Planner stressed that the applicant is not seeking any deviations or variances and, because of his willingness to address concerns and issues raised, he anticipates the formal application for this subdivision will be straight forward and require a minimum number of conditions for approval. Mr. Mike Stewart, applicant, stated his company is located in Park City, Utah, and is in the land development business. He stated that as he started working with staff, he looked at the entire area and then development of this parcel. He noted that a central park was primary in staff's mind; and he believes that 03-14-05 work . _ _._ _n..._..u_.__m_._". _. ._ ...._ . u__. . --..--.--....------".----.-- - 2 - the proposed park will serve the community well. He then noted that the location of Annie Street is important to both the area and this development and that its alignment must work for the adjacent properties on either side. He stated that during staff reviews, the importance of connectivity for both streets and pedestrians was stressed. In addition to the alignment of Annie Street, he noted that the location of the outfall system dictates the location of other streets within the subdivision. Mr. Stewart stated a variety of lot sizes and residential uses are proposed for this development, noting that the Smith property is zoned "R-2" while "R-3" zoning is proposed for the MacDonald property. He identified the stream/ditch along the western property line and the associated wetlands as an additional constraint. He then stated staff has asked that both Meagher Avenue and Yellowstone Avenue be extended through this property to West Oak Street. He noted that several north/south and east/west streets are proposed within this subdivision, in response to the interest in connectivity. Mr. Stewart noted that, while Durston Road has been identified as the primary access to this property until now, he is proposing to extend a half width of West Oak Street, at his own expense, and use that as the primary access, with the parcel being developed in phases from north to south. To accomplish this intent, he must obtain easements or right-of-way for the road alignment from those property owners between its current terminus at Harvest Creek Subdivision and this property. In light of this access, he asked that the Commission grant him relief from the road improvement requirements for Durston Road. Mr. Stewart turned his attention to the lot sizes and configurations, noting that there are some conventional lots where front garages are anticipated. There are also a substantial number of lots with alley accesses, which are anticipated to develop with rear garages. In addition, he is proposing a modular lot concept, which would be used for attached housing units ranging from duplex to four-plex units. A covenant would be added to this subdivision under which single-family homes would not be allowed on these lots. Several restricted size lots are also proposed throughout the subdivision, thus meeting the affordable housing requirements. Mr. Stewart stated that the park, as currently planned, meets the .03 acre per dwelling unit requirement and, with the inclusion of the 2-acre parcel being transferred from the Smith property, results in an 11-acre park. When the open space along the stream/ditch corridor is included, there almost 15 acres of parkland and open space provided in the plan. Mr. Stewart concluded by asking the Commissioners to provide feedback on (1) the proposed extension of West Oak Street, (2) aggregation of parkland in a central location, (3) the extensions of Yellowstone Avenue and Meagher Avenue, and (4) the modular lot concept. Responding to questions from Commissioner Youngman, Matt Cotterman, consulting engineer for the applicant, stated that a 660-foot separation between streets is required along an arterial, so Flathead Avenue and Teton Avenue cannot be extended into this development. Further responding to Commissioner Youngman, Mr. Stewart acknowledged that some rear and side yards abut in the southwest corner of the development and pledged to work with staff to keep such situations to a minimum. He then indicated that the existing mature trees are located on the boundary of the property, and he plans to retain them. He initially considered relocating the stream to the boundary of the property. In light of feedback, however, he has since decided to leave it and has found that the resulting split of the parkland will actually be an amenity to both the subdivision and the community. He stated a trail will run the entire length of the corridor, and he is working to ensure linear trail connections through this property to provide access to the regional park as well as the park in Valley Unit Subdivision. Further responding to questions from the Commission, Mr. Stewart indicated that houses are to front on Durston Road, Annie Street and West Oak Street, with rear garages. He then noted that recent subdivisions have been conditioned to place a limitation on the number of building permits issued until Durston Road is improved. He asked that no such limitation be placed on this subdivision since West Oak Street is to be the primary access. He also noted that West Babcock Street is to be improved this year, and the extension of Yellowstone Avenue will provide a direct access to this subdivision as well. Commissioner Youngman indicated that, while she is willing to give consideration to the street access proposal, the Commission must take care to ensure this development is not given preferential treatment not available to other subdivisions in a similar situation. 03-14-05 work - 3 - Mayor Cetraro stated his willingness to give consideration to the access issue. He also expressed support for the parkland aggregation and trail connections. Further, he likes the extension of Meagher Avenue and Yellowstone Avenue through the subdivision and likes the modular lot configuration for multiple dwelling units. Commissioner Krauss indicated that he will support the street access request as long as the subdivision is phased from the north. He also expressed support for the central park area, extensions of Yellowstone Avenue and Meagher Avenue, and the modular lots. He asked that the applicant try to fix the odd blocks and lots that are shown in this pre-application. He voiced appreciation for fronting the houses on Durston Road, and suggested that the sidewalk along that roadway could serve as part of the trail connection. Responding to Commissioner Hietala, Mr. Stewart stated that 53 percent of the property is developable. He stated this pre-application includes 325 dwelling units, or 8.4 units per acre, with an average lot size of 5,500 square feet. Commissioner Hietala voiced his general concurrence with the other Commissioner comments, noting he believes a future problem may be connecting the trails from the south end of this property. He then encouraged the inclusion of alleys for single-family homes, noting that those residents often find they need access to their back yards as their needs and desires change. Mr. Stewart indicated that he will attempt to provide a healthy mix of lots and committed to creating good connectivity from the alleys to the streets. He then indicated that architectural guidelines allowing for architectural variety will be created for development of this property. The Commissioners thanked Mr. Stewart for the opportunity to review this pre-application. ProDosed fee schedules for aDDlications for planning. zonina and annexation Included in the Commissioners' packets was a memo forwarding the proposed fee revisions. Associate Planner Jody Sanford noted that the Planning Office has been asked to provide a fee schedule that results in generating revenues to cover 25 percent of the departmental budget, based on the Fiscal Year 2005 budget of $905,000. To accomplish that task, she took the existing fee schedule and applied it to the number of applications received in 2004 and found that $60,708, or 7 percent of the Fiscal Year 2005 budget, was generated. She then took the proposed fee schedule and applied it to the number of applications received in 2004 and found that $234,000 or almost 26 percent of the budget, would have been generated. When developing the proposed fee schedule, she worked from the premise that the fees for small do-it-yourself projects and for site plans for expanding businesses should be kept as low as possible while the fees for large subdivisions and large-scale commercial projects should be raised to more accurately reflect the amount of work involved in processing them. City Manager Chris Kukulski recognized that the proposed increase in fees represents a shift in philosophy; however, he questioned why the general fund should subsidize the costs of applicant-driven processes. He suggested an ultimate goal might be to have fees more closely cover the costs. He noted that several assumptions were made in developing the proposed fee schedule, stating that the Planning Office was divided into seven different divisions; and the percentages of time spent on administrative work versus time spent on processing applications was roughly split. Based on those rough splits, he found that approximately one-half of the costs of operating the department, or $465,000, were directly related to processing applications; and this proposed schedule would generate revenues to cover one-half of those costs. Responding to Commissioner Youngman, the City Manager confirmed that he is comfortable with that level at this time. He noted that one issue to be considered in the setting of fees is the fees charged in Gallatin County and Park County, to ensure that the new fees do not drive development into those areas; a review of their fee structures reflects that they are higher than Bozeman's. The City Manager concluded by noting that a letter from the Southwest Montana Building Industry was distributed just prior to the meeting, and that letter raises several concerns about the proposed fee structure. 03-14-05 work - 4 - Commissioner Krauss noted that a builder of affordable housing units has written letters to the Commission suggesting fees for the Planning Office ought to be set like those for the Building Inspection Division, as long as those higher fees result in better service. He expressed his agreement with the philosophy that the fees be set to generate revenues that more closely cover the costs involved; however, he stressed there must also be some accountability. He suggested that a study be done to determine the hours spent processing an application and the costs to the department, including not only planning staff, but legal staff and all other staff who review the application. With the budget constraints facing the City, particularly in the general fund, he does not feel it is appropriate to continue subsidizing costs at the current level. Commissioner Hietala suggested that a short study be done on the costs and the fees charged to confirm the information provided and that the full costs should then be charged for the services provided. He noted that if the City lacks confidence in the service currently provided, it can then use those fees to provide the service expected by the developers. Commissioner Youngman indicated she strongly supports moving toward fees paying the costs of processing applications, particularly since the Commission keeps hearing from the taxpayers that they cannot afford to subsidize growth. She suggested that staff not only work on implementing the initial fee increase, but develop a multi-year plan for phasing in fees that generate closer to 100 percent of the revenues needed to cover the actual costs. Commissioner Krauss noted it is important to identify the costs before setting the fees. City Manager Kukulski stated that, at the present time, he is comfortable with enacting fees that represent 50 percent of a roughly calculated number. He asked that the Commission implement these fees as quickly as possible and give staff an opportunity to develop more refined numbers on which to base future considerations. Commissioner Youngman noted that under the current system, projects that provide 100 percent affordable housing are given expedited review at no additional cost and asked that this service be continued. She cautioned that the margin for those projects is often razor thin, and any increase in fees could potentially break the project in the competitive state market for tax credits. Mayor Cetraro stated he cannot support an increase in fees unless accountability is tied to it. He then noted he is more comfortable with a black and white process than the current process, which often leaves the applicant wondering what to do or what additional information to provide when the Commission delays a decision for two weeks. He feels establishing a fee schedule that generates a percentage of the costs is not the appropriate way to address the issue; rather, he feels a fair fee that holds both the applicant and the City accountable is preferable. Responding to comments from the Commission and City Manager, Associate Planner Jody Sanford stated that many of the revisions in the unified development ordinance were designed to increase efficiency in the review process. Also, many projects that previously went to the Commission are being handled administratively, and fewer projects are going to the Design Review Board for consideration. She cautioned that some of the delay in processing of projects stems from scheduling projects on the Commission agendas. She then stated that the planning staff does keep track of the time it spends on various projects, but that does not reflect the time that the staffs from other departments spend. Commissioner Youngman responded that if the Commission is the bottleneck, or if any other bottlenecks are identified, the Commission needs that information. She suggested that an administrative timetable and increased predictability could help to address some of the concerns raised. City Manager Kukulski suggested that, given the complaints about the lack of predictability and the frustrations that often result from the provisions for flexibility, it may be time to look at a balance in the process. City Manager Kukulski concluded the discussion by indicating that staff will bring back a resolution enacting the proposed fees for Commission consideration at next week's meeting and then will undertake a more in-depth study of the actual costs involved in processing various types of applications. 03-14-05 work - 5 - Budget Presentation City Manager Chris Kukulski gave a power point presentation on the proposed budget process for Fiscal Year 2005-2006. He asked that this discussion provide a basis for the development of the budget and direction on the Commission's funding priorities. The City Manager asked for Commission feedback on the directives he has identified, which include: (1) adjust mill levies by the statutory inflation factor and take advantage ofthe value of annexations and new construction; (2) include no increase in the permissive mill levy for health insurance; and (3) fund the bridge loan for the new library. He cautioned that not increasing the permissive mill levy will lead to a reduction in employee benefits, and continuing that trend could result in the City no longer being competitive in hiring and retaining employees. He also addressed the bridge loan for the library, cautioning that there is approximately $3.2 million in reserve and the original estimate of the bridge loan was $3.5 million for this fiscal year. City Manager Kukulski turned his attention to the goals and objectives he has identified, as follows: (1) finance capital improvements according to the capital improvement plan; (2) complete the pUblic works facility studies, including utility rates and impact fees; (3) complete the facilities and staffing plans for public safety; (4) complete the tax increment financing industrial district design and plat; (5) fund the Story Mansion Save America's Treasures (SAT) grant match; and (6) create a stormwater district. Responding to Mayor Cetraro, the City Manager stated consideration of the committee's recommendations for the Story Mansion will be placed on the March 28 agenda. He noted that two of the four proposals would meet the requirements for the SAT grant. The City Manager turned his attention to creating a stormwater district, noting it would be similar to the street and tree maintenance districts, and its boundary would be the city limits. He noted the rationale behind this type of district is that everyone uses collector and arterial streets, which is where stormwater facilities are generally located; and the assessment provides funds for improving those facilities in conjunction with street reconstruction projects. He then noted that stormwater discharges are becoming increasingly subject to federal regulations and at some point the City will have no choice but to create a funding mechanism to meet those requirements. Commissioner Krauss noted that the storm water district is not in the short-term goals previously established by the Commission and, as a result, he does not believe it should be included in this year's budget. Also, he views this as a tax increase and cannot support it. Mayor Cetraro and Commissioner Hietala voiced their concurrence. Responding to Commissioner Youngman, the City Manager indicated that if the district is implemented before it is required, the fees can be set lower than they would be if the district is implemented when required. Commissioner Youngman voiced her preference for leaving that goal in the list of goals and objectives on which the budget is developed. The City Manager turned his attention to the trend lines for new construction permits and their relationship to tax dollars and mill values. He also covered the trend in calls to the dispatch center for police services and the numbers of calls for fire service. After reviewing the trends, the City Manager reviewed the proposed calendar for the budget and asked if the Commissioners are willing to meet at 6:00 p.m. for departmental presentations. As a result of discussion, the Commissioners determined they were not interested in receiving departmental presentations but asked the City Manager to bring back his preliminary, out-of-balance budget proposal, including a list of what was not funded, for review and Commissioner comment prior to making the final cuts. Commissioners will be invited to attend the departmental presentations that are being made to the administrative staff. City Manager Kukulski concluded his presentation by highlighting a chart that reflects the average monthly costs of services provided by the City and the average monthly costs of services provided by other entities. 03-14-05 work - 6 - Commissioner Youngman noted that funding of the affordable housing fund was not included on the list of goals and asked that it be added. Commissioner Hietala suggested that another way be found to possibly finance affordable housing and noted one alternative might be to allow part of the land set aside for open space in a subdivision to be developed as affordable housing. In light of the Commission direction, the City Manager indicated he will prepare a preliminary budget for Commission consideration and provide the requested information on what was not included in it. ProDosed Ordinance No. - Clerk's Office Included in the Commissioners' packets was a memo forwarding a proposed ordinance which provides for conversion from the Clerk of the Commission to City Clerk and places that office under the City Manager. City Manager Kukulski stated that he and Clerk of the Commission Sullivan have talked and are now coming forward with an ordinance reorganizing the office and moving it under the City Manager instead of the City Commission. He assured the Commission that he anticipates no change in resources to the Commission under this proposed ordinance. Commissioner Krauss voiced his support for the ordinance. Commissioner Hietala stated he is not ready to support the change, stating he feels the current system should remain in place until Clerk of the Commission Sullivan retires. He suggested that the independent auditor do a performance audit of the office, to identify deficiencies in the process and any need for additional help prior to any reorganization of the office. Mayor Cetraro stated he feels the proposed reorganization is appropriate and will support it, noting he expects the Commission will continue to receive the same responsiveness that it does today. The City Manager indicated that this ordinance will be placed on the upcoming agenda for Commission action. Discussion - FYI Items The following "For Your Information" items were forwarded to the Commission. (1 ) A proposed ordinance which revises the manner in which technical model codes are adopted and provides for adoption of the attendant fee schedules by resolution. (2) Updated list of planning projects to be considered at upcoming meetings, dated March 9, 2005. (3) Agendas for the County Commission meetings to be held at 9:00 a.m. on Tuesday, March 15, and 1 :30 p.m. on Wednesday, March 16, at the Courthouse. (4) Agendas for the City Planning Board meeting to be held at 7:00 p.m. and the Zoning Commission meeting to be held at 7:30 p.m. on Tuesday, March 1, in the Commission Room. (5) Agenda for the Development Review Committee meeting to be held at 10:00 a.m. on Wednesday, March 16, at the Professional Building. (6) Agenda for the City Planning Board meeting to be held at 7:00 p.m. on Tuesday, March 15, in the Commission Room. (7) City Manager Chris Kukulski noted the House committee is to vote on the local option tax bill next week and asked that the Commissioners work on the local delegation to get positive votes on it. 03-14-05 work - 7 - He cautioned that the committee and the House appear to be very divided on this issue and each vote is critical. The City Manager provided some rough estimates of the revenues that might be generated locally, based on the 2003 accommodations tax revenues, and noted that under the proposed bill, a portion of those monies must be distributed regionally while another portion must be used for property tax relief. He stressed, however, that the local option tax would still generate revenues not currently available to the City. He noted that if every city implemented a local option tax, the revenues would be roughly 10 percent of those that an overall sales tax would generate. Commissioner Youngman suggested that each Commissioner have five friends contact the local delegation to provide more broad based support. (8) Director of Public Service Arkell submitted the following. (1) Noted that with the 650 weather on Friday, the ice at the Bogert Pavilion was gone, and staff did not flood today. (2) Stated that the single bid for the North 19th Avenue/Valley Center Road improvements was opened on Tuesday and came in $1.2 million over engineer's estimate. Staff is now trying to identify alternatives for the project. (9) Responding to Commissioner Youngman, the Director of Public Service stated that the preliminary design work for improvements to Durston Road west of North 19th Avenue is nearly complete; and there is a potential that improvements east of North 19th Avenue could be done this summer. Commissioner Youngman suggested that a Durston Road review panel be created so that they could become involved at a significant level and knowledgeable about the improvements to that section west of North 19th Avenue and then assist other residents in the area in understanding the project. (10) Commissioner Youngman reported that she participated in visioning processes for the Community Alcohol Coalition and the Community Affordable Housing Advisory Board last week and attended the first library parkland task force meeting last week. She noted that task force will undertake a visioning process next week. She also attended the NorthEast Neighborhood Association (NENA) annual meeting last week. (11 ) Commissioner Krauss reported that he attended the Mayor's Academy last week. (12) Commissioner Hietala stated that he attended the Senior Citizens' Advisory Board meeting last week. Adiournment -10:20 D.m. There being no further business to come before the Commission at this time, it was moved by Commissioner Krauss, seconded by Commissioner Hietala, that the meeting be adjourned. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Krauss, Commissioner Hietala, Commissioner Youngman and Mayor Cetraro; t ose oting No, none. TRARO, Mayor ATTEST: ~/~ ROBIN L. SULLIVAN Clerk of the Commission 03-14-05 work