HomeMy WebLinkAbout2005-02-07 Minutes, City Commission
MINUTES Of THE MEETING Of THE CITY COMMISSION
BOZEMAN, MONTANA
february 7, 2005
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The Commission of the City of Bozeman met in regular session in the Commission Room, Municipal
Building, on Monday, February 7, 2005, at 7:00 pm. Present were Mayor Andrew Cetraro, Commissioner
Jeff Krauss, Commissioner Marcia Youngman, Commissioner Steve Kirchhoff, Commissioner Lee Hietala,
City Manager Chris Kukulski, Assistant City Manager Ron Brey, Director of Public Service Debbie Arkell,
Planning Director Andy Epple, Acting City Attorney Tim Cooper, and Deputy Clerk of the Commission Karen
DeLathower.
The meeting was opened with the Pledge of Allegiance and a moment of silence.
Commissioner Hietala requested that the amendment to the engineering services contract for the
solid waste transfer station be removed from the Consent Items for discussion.
Minutes ~ January 18. January 18 Work Session. January 24. and January 31. 2005
It was moved by Commissioner Youngman, seconded by Commissioner Kirchhoff, that the minutes
ofthe meetings of January 18, the January 18 work session, January 24, and January 31,2005 be approved
as submitted. The motion carried by the following Aye and No vote: those voting Aye being Commissioner
Youngman, Commissioner Kirchhoff, Commissioner Hietala, Commissioner Krauss, and Mayor Cetraro;
those voting No, none.
Consent Items
City Manager Kukulski presented to the Commission the following Consent Items.
Commission Resolution No. 3768 ~ adoDting Drocedures and auidelines for selection
of architectural. enaineerina. and land survevina services for Droiects with an
estimated fee exceedina $20.000
COMMISSION RESOLUTION NO. 3768
A RESOLUTION Of THE CITY COMMISSION Of THE CITY Of BOZEMAN, MONTANA,
ADOPTING BY REfERENCE THE PROCEDURE AND GUIDELINES fOR SELECTION
Of ARCHITECTURAL, ENGINEERING AND LAND SURVEYING SERVICES fOR
PROJECTS WITH AN ESTIMATED fEE EXCEEDING $20,000.00 AND SUPERCEDING
COMMISSION RESOLUTION NO. 2743.
Commission Resolution No. 3770 ~ vacatina Dortions of the riahts~of-wav for East Oak
Street. North Black Avenue. and north/south allev in Blocks 3 and 4. Imes
Addition
COMMISSION RESOLUTION NO. 3770
A RESOLUTION Of THE CITY COMMISSION Of THE CITY Of BOZEMAN, MONTANA,
DISCONTINUING, ABANDONING AND VACATING PORTIONS Of THE RIGHTS-Of-WAY
fOR EAST OAK STREET, NORTH BLACK AVENUE AND NORTH/SOUTH ALLEY IN
BLOCKS 3 AND 4, IMES ADDITION, IN THE CITY Of BOZEMAN, MONTANA.
Commission Resolution 3771 - vacatina that Dortion of the riaht-of-wav for West
Lincoln Street in Block 51. CaDitol Hill Addition. extendina westward from
South fifth Avenue aDDroximatelv 143 feet
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COMMISSION RESOLUTION NO. 3771
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA,
DISCONTINUING, ABANDONING AND VACATING THAT PORTION OF THE RIGHT-OF-
WAY FOR WEST LINCOLN STREET IN BLOCK 51, CAPITOL HILL ADDITION,
EXTENDING WESTWARD FROM SOUTH FIFTH AVENUE APPROXIMATEL Y 143 FEET,
IN THE CITY OF BOZEMAN, MONTANA.
Commission Resolution No. 3773 - authorizina issuance and callina for public sale
of Special Improvement District No. 683 bonds: authorizina pledae of the
revolvina fund to the security thereof
COMMISSION RESOLUTION NO. 3773
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA,
RELATING TO $1,372,000 SPECIAL IMPROVEMENT DISTRICT NO. 683 BONDS;
AUTHORIZING THE ISSUANCE AND CALLING FOR THE PUBLIC SALE THEREOF AND
AUTHORIZING THE PLEDGE OF THE REVOLVING FUND TO THE SECURITY
THEREOF.
Authorize City Manaaer to sian - Professional Services Aareement for enaineerina
services for a UV disinfection system and standby power aenerator at the
Wastewater Treatment Plant - Entranco, Inc., Helena. Montana
Authorize City Manaaer to sian - Acceptance of Water Pipeline and Access Easement
and Agreement from Bozeman Pea Cannery Properties. LLC - 30-foot wide
riaht-of-way across and through Blocks 3 and 4 of Imes Addition (yacated
street riahts-of-way)
Authorize City Manaaer to sian - Aareement with Vivian E. Winters reaardina water.
sewer. and aarbaae charaes -104 South Yellowstone Avenue, #3
Acknowledae receipt of application to vacate West Beall Street between North 10th
Avenue and the alley to the west: refer to staff
Appointment of Commissioner Krauss and Commissioner
Younaman to
subcommittee to review pledaed securities as of December 31. 2004
Award bid for 2005 dump truck. plow. and sander - Rocky Mountain Truck Center and
HCL Eauipment in the amount of $112.527
Approval of beer and wine license for calendar year 2005 - RockY Mountain Ribs. Inc.,
for Famous Dave's Restaurant.1230 North 7th Avenue
Approval of special permit to sell beer or wine on Februarv 13. 2005 - Headwaters
School at the Emerson Cultural Center. 111 South Grand Avenue: continaent
upon receipt of State license
Approval of special permit to sell beer or wine on February 18 throuah February 20,
2005 - Bozeman Amateur Hockey Association at the Gallatin County
Fairarounds, Haynes Pavilion
Approval of special permit to sell beer or wine on Februarv 18 throuah February 21,
2005 and July 20 throuah July 25. 2005 - Bozeman Lions Club at the Gallatin
County Fairarounds
Approval of special permit to sell beer or wine on March 4, 2005 - Emerson Cultural
Center. 111 South Grand Avenue: continaent upon receipt of State license
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Building Division Report - Januarv 2005
Claims
It was moved by Commissioner Krauss, seconded by Commissioner Youngman, that the
Commission approve the Consent Items as listed and authorize and direct the appropriate persons to
complete the necessary actions. The motion carried by the following Aye and No vote: those voting Aye
being Commissioner Krauss, Commissioner Youngman, Commissioner Kirchhoff, Commissioner Hietala,
and Mayor Cetraro; those voting No, none.
Public comment
Judy Blackmore, 1004 East Babcock Street, read her letter regarding Sweet Pea's request to
construct a second pavilion at Lindley Park into the public record. The 1992 Lindley Park Master Plan says
there should be no second pavilion at Lindley Park. The majority of the neighborhood is against this plan; and
if Sweet Pea submits their plan to the Commission, they will submit their information against the proposed
second pavilion. A second pavilion will be a liability for Lindley Park, the city, and the neighborhood.
Duane Burkenpas, 1108 East Babcock Street, voiced his support of, and agreement with, Ms.
Blackmore's comments.
Planning Director Epple acknowledged that Planning staff and the Recreation and Parks Advisory
Board have received a letter from the Sweet Pea Festival committee requesting modification of the Lindley
Park Master Plan to allow construction of a new pavilion near the location of the Festival headquarters tent.
A letter was sent to the Festival committee advising them that additional information is required before this
proposed amendment can be scheduled for Commission review. He does not anticipate a reply before next
month, although the Sweet Pea Festival committee is interested in moving ahead as early as this summer.
Certificate of Appropriateness to allow the demolition of a rear shed. the demolition of an existina
264-sauare foot. one stOry aaraae and the new construction of a 384-sauare foot. one-story aaraae.
with deviation to allow new aaraae to encroach 4 feet. 2 inches into the reauired 5-foot side vard
setback - George Mattson for Shirley and Ed Sedivy. 820 South Tracv Avenue IZ-04284)
This was the time and place set for the pUblic hearing on the Certificate of Appropriateness
requested by George Mattson for Shirley and Ed Sedivy under Application No. Z-04284, to allow demolition
of a rear shed and existing 264-square-foot, one-story garage on Lots 2 and 10 and 10 feet of Lot 9, Block
1, Butte Addition, and construction of a new 384-square-foot, one-story garage, with a deviation from
Section 18.16.050, Bozeman Municipal Code, to allow the new garage to encroach 4 feet 2 inches into the
required 5-foot side yard setback along the northern property line. The subject property is located at 820
South Tracy Avenue.
Public hearing
Mayor Cetraro opened the public hearing.
Historic Preservation Planner Bristor presented the staff report. She reviewed this application, noting
this property is zoned R-2 and is located in the South Tracy Avenue Historic District and the Neighborhood
Conservation Overlay District. One deviation is requested to allow the new garage to encroach 4 feet, 2
inches into the required 5-foot side yard setback along the northern perimeter. Staff has reviewed this
application in light of the applicable criteria and recommends conditional approval. Staff's comprehensive
findings can be found in the written staff report. One letter of support has been received from Jim Thompson,
owner of the property directly adjacent to the north.
No one was present to speak in opposition to this Certificate of Appropriateness application.
Since there were no Commissioner objections, Mayor Cetraro closed the public hearing.
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Decision
It was moved by Commissioner Kirchhoff, seconded by Commissioner Hietala, that the Certificate
of Appropriateness requested by George Mattson for Shirley and Ed Sedivy under Application No. Z-04284,
to allow demolition of a rear shed and existing 264-square-foot, one-story garage on Lots 2 and 10 and 10
feet of Lot 9, Block 1, Butte Addition, and construction of a new 384-square-foot, one-story garage, with a
deviation from Section 18.16.050, Bozeman Municipal Code, to allow the new garage to encroach 4 feet
2 inches into the required 5-foot side yard setback along the northern property line, be approved subject to
the following conditions:
1. The applicant shall increase the proposed side yard setback of the new garage to
a distance of 15 inches.
2. The applicant shall provide at least 12 inches (1 foot) of separation between the two
front entrances of the new garage and allow the proposed exterior siding to continue
in between.
3. The applicant shall provide one window on either the south or east elevations of the
new garage.
4. The applicant shall provide location and placement information for all proposed
mechanical equipment (ground, roof, etc.), and shall further supply information on
proposed screening, for final design review and approval by Administrative Design
Review Staff.
5. The applicant shall provide a color and materials palette of the new garage for final
design review and approval by Administrative Design Review Staff.
6. The applicant shall obtain a building permit and pay all required fees prior to
construction, and within one year of Certificate of Appropriateness approval, or this
approval shall become null and void;
7. This project shall be constructed as approved and conditioned in the Certificate of
Appropriateness with deviations application. Any modifications to the submitted and
approved drawings shall invalidate the project's approval unless the applicant
submits the proposed modifications for review and approval by the Department of
Planning prior to undertaking said modifications, as required by Section 18.64.110
of the Bozeman Municipal Code.
The motion carried by the following Aye and No vote: those voting Aye being Commissioner Kirchhoff,
Commissioner Hietala, Commissioner Krauss, Commissioner Youngman, and Mayor Cetraro; those voting
No, none.
Amended Preliminarv Plat for Villaae Downtown PUD Subdivision - to allow resubdivision of
approximately 8 acres to reduce the number of residential townhouse lots from 32 to 28 - Villaae
Investment Group, Inc. (east of North Broadway Ayenue on both sides of Villaae Downtown
Boulevard) (P-04059)
This was the time and place set for the pUblic hearing on the amended preliminary plat for the
Village Downtown Planned Unit Development Subdivision, as requested by the Village Investment Group,
Inc., under Application No. P-04059, to allow a reduction in the number of residential townhouse lots from
32 to 28 on ~8 acres described as Lots 101 through 145, Village Downtown PUD Subdivision. The sUbject
property is located east of North Broadway Avenue, along both sides of Village Downtown Boulevard.
Public hearing
Mayor Cetraro opened the public hearing.
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Contract Planner Windemaker presented the staff report. She reviewed this request to reduce the
number of townhouse lots from 32 to 28. Staff has reviewed this application against the applicable criteria and
recommends conditional approval. Staff's comprehensive findings can be found in the written staff report.
No public comment has been received.
No one was present to speak in opposition to this requested preliminary plat.
Karin Caroline, Delaney & Company, thanked the Commission for their continued support of the
Village Downtown.
Since there were no Commissioner objections, Mayor Cetraro closed the public hearing.
Decision
It was moved by Commissioner Hietala, seconded by Commissioner Krauss, that the amended
preliminary plat for the Village Downtown Planned Unit Development Subdivision, as requested by the
Village Investment Group, Inc., under Application No. P-04059, to allow a reduction in the number of
residential townhouse lots from 32 to 28 on -8 acres described as Lots 101 through 145, Village Downtown
PUD Subdivision, be approved subject to the following condition:
1. Street cut permits and the associated fees will be required for the abandonment of
the water services.
The motion carried by the following Aye and No vote: those voting Aye being Commissioner Hietala,
Commissioner Krauss, Commissioner Youngman, Commissioner Kirchhoff, and Mayor Cetraro; those voting
No, none.
Amendment to Bozeman 2020 Community Plan - amend land use desianation from "Business Park"
to "Communitv Commercial" on::!: 31 acres bounded bv West Main Street/Huffine Lane. Fallon Street.
Ferauson Avenue. and Resort Drive - Michael W. Delanev and Ileana Indreland (P-04060)
This was the time and place set for the public hearing on the amendment to the Bozeman 2020
Community Plan to amend the land use designation from "Business Park" to "Community Commercial" on
:t31 acres described as Lot 5, Spring Creek Village Resort Subdivision, as requested by Michael W. Delaney
and Ileana Indreland under Application No. P-04060. The subject parcel is bounded by West Main
Street/Huffine Lane, Fallon Street, Ferguson Avenue and Resort Drive.
Included in the Commissioners' packets was a request from the applicant that this public hearing
be opened and continued to March 7.
Public hearing
Mayor Cetraro opened the public hearing.
It was moved by Commissioner Krauss, seconded by Commissioner Youngman, that the public
hearing be continued to March 7, per the applicant's request. The motion carried by the following Aye and
No vote: those voting Aye being Commissioner Krauss, Commissioner Youngman, Commissioner
Kirchhoff, Commissioner Hietala, and Mayor Cetraro; those voting No, none.
Discussion - Villaae Downtown Lofts park dedication proposal - provide cash in lieu of 5.04 acres
reauired parkland. less anv on-site acreaae dedication for trails
Included in the Commissioners' packets was a memo forwarding the proposal to provide cash-in-lieu
of 5.04 acres of required parkland for the Village Downtown Lofts, less anyon-site acreage dedication for
trails, as submitted by Mr. Delaney.
Contract Planner Windemaker reviewed the park dedication proposal, noting the amount of the cash
in lieu would be $269,423.73 for the total 5.04 acres. However, acreage dedicated for the trail corridor on Lot
5 would be subtracted from the 5.04 acres, while any remaining deficiency from the Village Downtown PUD
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Subdivision will be added to the total requirement. The applicants desire to pay half of the cash in lieu prior
to receiving a building permit for Lot 3, with the remainder to be paid prior to receipt of the building permit for
Lot 5. If the Commission finds this proposal acceptable, the applicant should be required to agree in writing
to the conditions listed in her memo of January 31, 2005.
Karin Caroline, Delaney & Company, stated they are agreeable to the conditions as outlined in the
staff memo.
No one was present to speak in opposition to this proposal.
Commissioner Hietala asked if the applicants would be agreeable to paying the market rate of
interest. Ms. Caroline responded the applicants had agreed to three percent interest during the work
session meeting of January 18th.
Commissioner Hietala stated that when considering the value of cash in lieu, it amounts to a down
payment on equivalent property for park dedication and getting half of cash in lieu is like getting only half
of a down payment. Therefore, he doesn't see any reason to not charge the market rate of interest on the
balance. The City's market rate is 5.25 percent, which is the rate the Commission will be considering on
a loan request later this evening.
City Manager Kukulski stated that it was in good faith that the three percent interest rate was
previously discussed; but it is the Commission's prerogative to reconsider, if they so choose. He doesn't
believe the interest rate charged should be more than the City earns on other investments. However, if the
Commission has a reasonable rationale for changing the interest rate, he believes he could work with Mr.
Delaney on that.
Commissioner Krauss inquired as to the timeframe between the first payment and the second
payment. Ms. Caroline answered the applicants anticipate making the first payment in the middle or end
of April, 2005, with the second payment anticipated to be made two or three years later.
Commissioner Krauss suggested setting the annual interest rate at the three-year jumbo CD rate
at the time of the first payment, which would be the City's opportunity cost. He added the City could always
insist the whole amount be paid up front.
Bill Ranard, 2513 Valhalla Court, cautioned the Commission that the rate could also be less than
three percent.
Responding to Commissioner Krauss, Planner Windemaker stated 5.04 acres is the required
parkland dedication. However, the applicants will be dedicating some land for trail corridors, but that
acreage is unknown at this time.
Commissioner Kirchhoff suggested the City Manager should be directed to negotiate a 5.25 percent
interest rate with the applicants, which might mean this proposal would need to come back to the
Commission again for approval, since the applicants are not present at this meeting.
City Manager Kukulski stated he has heard that three percent seems too low and 5.25 percent
seems too high, and he would hate to go back to the applicant and say the City has changed its mind
because this is a great project in the city's core area. He would like to keep this project moving forward, and
he doesn't believe three percent is a ridiculously low interest rate.
It was moved by Commissioner Youngman, seconded by Commissioner Kirchhoff, that the proposal
to provide cash-in-lieu of 5.04 acres of required parkland for the Village Downtown Lofts, less anyon-site
acreage dedication for trails, be approved subject to the following conditions:
1. Acreage amount shall be determined by the subtraction of dedicated trail corridor(s)
acreage on Lot 5 and the addition of the any remaining parkland dedication acreage
deficiency (- 0.0737) from the Village Downtown PUD Subdivision.
2. A minimum of half of the cash-in-lieu amount shall be paid prior to receipt of any
building permit for Lot 3, and half of the cash-in-lieu amount shall be paid prior to
receipt of any building permit for Lot 5.
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3. Interest shall be paid on any cash-in-lieu amount deferred at receipt of the first
building permit. The interest shall be four (4) percent simple interest.
The motion carried by the following Aye and No vote: those voting Aye being Commissioner Youngman,
Commissioner Kirchhoff, Commissioner Hietala, Commissioner Krauss, and Mayor Cetraro; those voting
No, none.
Public review - CDBG Economic Develooment Revolvina Loan Fund - Rockv Mountain Furniture
This was the time and place set for review of the application submitted by Rocky Mountain Furniture
for a loan from the Community Development Block Grant (CDBG) Economic Development Revolving Loan
Fund.
Mark Evans, Gallatin Development Corporation, reviewed this application for $100,000 in funding for
the purchase of equipment, the hiring and training of new staff, the preparation of promotional materials, and
working capital. He noted the CDBG Economic Development Loan Review Committee recommended
approval of this loan, with the conditions as outlined in the application.
Dee Field, Rocky Mountain Furniture, reviewed the history of Rocky Mountain Furniture, adding that
they are projecting a growth rate of eight to ten percent. Collateral for the loan will be a second lien on all
business assets and the personal guarantee of each owner.
It was moved by Commissioner Kirchhoff, seconded by Commissioner Hietala, that the application
submitted by Rocky Mountain Furniture for a $100,000 loan from the Community Development Block Grant
(CDBG) Economic Development Revolving Loan Fund be approved subject to the following conditions:
1. That the interest rate be set at 5.25 percent, amortized over a five-year period;
2. That the over 60-day account payable to Bridger Industrial Park be paid only upon
written consent of the CDBG Economic Development Loan Review Committee.
3. That the collateral for the loan be a second lien on all business assets and personal
guarantees from each owner.
The motion carried by the following Aye and No vote: those voting Aye being Commissioner Kirchhoff,
Commissioner Hietala, Commissioner Krauss, Commissioner Youngman, and Mayor Cetraro; those voting
No, none.
Commission Resolution No. 3769 - exoressina suooort for draft bill LC 1724 and reauestina that the
Montana State Leaislature adoot LC1724 and Dresent it to the Governor for sianina
Included in the Commissioners' packets was a copy of Commission Resolution No. 3769, entitled:
COMMISSION RESOLUTION NO. 3769
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA,
EXPRESSING SUPPORT FORSB237 AND REQUESTING THAT THE MONTANA STATE
LEGISLATURE ADOPT SB237 AND PRESENT IT TO THE GOVERNOR FOR SIGNING.
City Manager Kukulski reviewed this resolution in support of 5B237, which allows that financial
information may be included when municipalities go out to bid for professional services. He has had several
conversations with City Engineer Hixson on this matter, and it has been pointed out that the low bid process
used for construction projects has resulted in less than stellar performances from time to time. Therefore,
it is his recommendation, as well as City Engineer Hixson's, that the Commission not take any action on this
resolution.
Doug Chandler, Allied Engineering, said he, too, would appreciate the Commission not taking action
on this measure because it is not in the public interest to consider price. Currently the City can select a firm
and negotiate the price and scope of the project with them. If they cannot reach an agreement, the City can
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move on to the next best qualified firm, which Bozeman has done several times in the past. It is important
to select a firm on the basis of its qualifications.
It was moved by Commissioner Hietala, seconded by Commissioner Krauss, that Commission
Resolution No. 3769, expressing support for Senate Bill 237, be tabled indefinitely. The motion carried by
the following Aye and No vote: those voting Aye being Commissioner Hietala, Commissioner Krauss,
Commissioner Youngman, Commissioner Kirchhoff, and Mayor Cetraro; those voting No, none.
Commission Resolution No. 3772 ~ creating a pavback district for Special Improvement District No.
683. improvements to West Babcock Street between West Main Street and Yellowstone Avenue
Included in the Commissioners' packets was a copy of Commission Resolution No. 3772, entitled:
COMMISSION RESOLUTION NO. 3772
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA,
CREATING A PAYBACK DISTRICT FOR SPECIAL IMPROVEMENT DISTRICT NO. 683,
IMPROVEMENTS TO WEST BABCOCK STREET BETWEEN WEST MAIN STREET AND
YELLOWSTONE AVENUE.
Distributed just prior to the meeting were written comments from Rob French and Celia Woods,
representing the property lying along the north side of West Babcock Street at Fowler Avenue extended.
City Engineer Hixson reviewed the history of this project, noting the creation of this payback district
finishes the creation of the funding for the West Babcock Street improvements. This payback district is being
created to assess the county properties, upon their annexation, at the same rate the city properties are being
assessed since the County Commission voted to not include county properties in the special improvement
district. This payback resolution allows property owners who annex within 19 years from November, 2005
to pay the amount that would have been paid between November, 2005 and the date of annexation at the time
of annexation, with the remainder to be spread out over the remainder of the 19 years of the SID. The
assessment rate is $0.12 per square foot, plus interest, which is the same assessment rate as SID No. 683.
Commissioner Krauss asked if the City is confident the assessment will not exceed the value of the
property, to which City Engineer Hixson responded he is absolutely confident the assessment will not
exceed the value of the property.
Commissioner Kirchhoff asked for an explanation for the objectors who find the square footage
assessment is inequitable. City Engineer Hixson answered the per square footage assessment is the fairest
of all possible methods. With the per unit assessment method, which is not an alternative at this time, a
large parcel with only one dwelling would be assessed as one parcel, which isn't fair to smaller parcels
because the larger parcel can be subdivided and developed. The square footage method of assessment
is the most equitable for all involved.
City Manager Kukulski pointed out that Phill Forbes, Morrison-Maierle, did a good job of explaining
the assessment methods at the public meeting; and the square footage method seems to be the most fair.
Larry Ellison, 3301 West Babcock Street, pointed out county properties comprise approximately 20
percent of the area, but only eight percent of the residents, which forces them to pay an average of 2.5
percent more. He suggested a more equitable assessment would be to take the average amount paid by
city residents, then assess the county residents the same amount. At one time this was a low-density
neighborhood, but this area has become a high-density neighborhood with the introduction of apartment
complexes and the ton of traffic they generate, which has reduced their property values.
Brad French, 3325 West Babcock Street, stated they have a large lot and thus will be paying more
than most landowners; but they are willing to pay their fair share and they appreciate the City using impact
fees to bring down the costs as much as it can. He is concerned, though, with the nine acres his family
owns behind his house because he believes being assessed for every square foot of that property is not
the fair thing to do. The City will be taking a 50-foot right-of-way on that property for the extension of Fowler
Lane north, and other roads will need to be put in when this property is annexed and subdivided for
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development. Therefore, they are being required to pay assessment on land that will be used for streets and
parks. He expressed his desire to work with the City to determine a fair way to assess this property.
Don Gilliam, 3 Northwest Drive, said it sounds like the square footage of the lot is what will be
assessed, at so much per square foot plus interest; but he doesn't know what the interest rate will be. He
then questioned if Western Drive is annexed into the city, will those residents also have to pay those costs,
like water, sewer, and sidewalks all at once, or will those costs be spread out. Mr. Gilliam closed by saying
he is pleased to have bicycle lanes included in the improvement of Babcock Street.
Deb Stober, 395 Valley Drive and representing the Northwest Neighborhood Network, voiced their
concern that this is taxation without representation because they are not city residents, yet they are being
taxed without the right to protest. Everyone is having a problem with that process, and they would like to
address process changes to make it more comfortable for them. The county residents will go back to the
County and ask them to come up with money to fund this, and then the county residents will pay the County
back. She requested City staff or the Commissioners spend some time with them and help them work this
out to be more fair and equitable because they want to participate.
Darrell Burkenpas, 124 Valley Drive, said that his questions have not been answered clearly; and
he feels "this boat should be set aside" until they are. While county residents have no reason to not
participate, they don't like the way it is being done. There are eight plexes being constructed on an acre
and a half that are going to create 32 vehicles, yet the acre lots on Valley Drive are only generating six cars;
and they are still being asked to pay by the lot square footage. This program isn't fair. Mr. Burkenpas
stated he has been coming to these meetings for 10 years, and the story is always the same - with further
development there will be money to improve Babcock Street. Babcock Street doesn't need to be fixed in
the manor proposed, and three lanes means there will be considerably more traffic. County residents don't
believe this should be voted in when the County won't participate.
Martie Stewart, 3303 Bitterroot Way, asked if it would be possible for county residents to pay up front
so they wouldn't have interest accruing. She inquired about the homes on Valley Drive, which are on half-
acre lots, saying she does not believe any of those homeowners, except for one, will be subdividing their
lots because they all like the space. She suggested breaking up the costs as the French's property is
developed, rather than having them pay all assessments at one time.
City Manager Kukulski answered the questions posed by county residents. Regarding the fairness
of the assessment, there are only four assessment methods allowable by statute; and the per square
footage of lot appears to be the fairest to the largest number of people. The interest rate is unknown until
the City sells the bonds. The interest rate is projected to be five or six percent, which is probably an
extremely high overestimation, but it is desirable to come in lower than estimate. West Babcock Street will
include all the amenities of a three-lane road, including bike lanes and sidewalks, so there will be no
additional costs. Subdivision of property within this assessment area would require internal upgrades only,
not improvements to Babcock Street. In regard to the feeling that this is taxation without representation,
the City has tried to work with the County in good faith, but the County did not elect to join in and help fund
these improvements. The County had the ability to put its impact fee monies into this project and lower the
square foot price in the same way the City did. The City has agreed to cover 71 percent of the costs, which
has substantially lowered the square footage assessment. The $3.2 million the City is contributing is many
times more than what has been collected in impact fees in this district. The assessment is $.12 per square
foot and was originally projected to be $.19; but when the impact fee contribution was increased, it lowered
the per square foot cost down to $.12. Regarding the desire to pay the assessments up front, City staff, the
Engineering Department, and Public Service Department have worked in every way possible to make this
as reasonable as they could. This is the first time the City has done a latecomers' agreement with a
provision to allow property owners to only pay at the time of annexation the amount they would have paid
up to that time, plus interest, and allow the remainder of the assessment to extend over the life of the loan.
Previously landowners would have had to pay the full 19 years of assessment. He recommends the
Commission approve this resolution and move forward because the City needs to put both the bonds and
the construction out to bid.
Commissioner Kirchhoff said he is supportive of this resolution because he is convinced that this
is "state of the art" in terms of the City's attempt to be as good as possible to the property owners along this
significant stretch of road. The City is trying to do its best for all residents; but this is all that can be done
at this moment, there is nothing better. He encouraged county residents to continue to work with the County
Commissioners.
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Commissioner Youngman reminded the county residents that City impact fees and City taxpayers
have made this project less expensive for everyone. The City has worked really hard to make this
assessment fair for everyone, without any assistance from the County at this point. She supports this
payback district as it is set up.
Commissioner Krauss asked if Western Drive annexes, would residents pay water and sewer
hookup fees, impact fees, and sidewalk installation fees. Director of Public Service Arkell answered that
what would happen if a property on Western Drive needed to annex because the septic system failed and
City sewer is the only option, they would have to pay the expense of getting the sewer main to their property.
If the property were located in the middle of the block, it would be smart for the City to bring services to the
entire street and assess an SID. If the property were located at the end of the block, it would probably be
possible to have them hook up to the existing main.
Commissioner Krauss noted he supports this payback district because it is part of the way the
improvements to Babcock Street are going to be paid for. This project is heavily subsidized by the City, and
every part of the city is contributing significantly. While there may be some people who may be forced to
annex into the city, there are a number of people who will not be annexing into the city anytime soon.
Director of Public Service Arkell responded to the letters and comments from the French family,
saying that when they do annex and develop their property, the park land will pay into the SID, but the roads
are removed. She believes it may be feasible to revise the resolution when the property is annexed and
the road dedications are known, such as removing the rights of way so they won't pay on those rights of
way, which means the City will never get that money back.
City Engineer Hixson addressed the French parcel, as well, saying Fowler Lane is a very contentious
corridor; and while a 50-foot easement would be nice, he believes it will be difficult to get that 50 feet.
When the French property is developed, the internal streets could be private, which would not be dedicated
to the public and would not be removed from the basis. His feeling is that the City probably won't get all the
money back from the County because all these parcels won't annex into the city in the next 19 years.
Commissioner Krauss said he does not believe $270 per lot is a lot of money compared to what it
costs to purchase a lot in the city.
It was moved by Commissioner Krauss, seconded by Commissioner Youngman, that Commission
Resolution No. 3772, creating a payback district for Special Improvement District No. 683, be adopted. The
motion carried by the following Aye and No vote: those voting Aye being Commissioner Krauss,
Commissioner Youngman, Commissioner Kirchhoff, Commissioner Hietala, and Mayor Cetraro; those voting
No, none.
Authorize City Manaaer to sian . Amendment No. 2 to Professional Services Aareement for
engineering services for solid waste transfer station . increasina contract bv $108.985 . Allied
Engineerina Services. Bozeman. Montana
City Manager Kukulski reminded the Commission that Commissioner Hietala had requested this item
be removed from the Consent Items for discussion.
Commissioner Hietala questioned the ever increasing costs of the solid waste transfer station,
suggesting perhaps direct hauling to the Logan landfill might be more economical. He noted that a couple
of years ago staff was talking above having a transfer station in place for $2.5 million.
Dustin Johnson, Project Engineer, noted this amendment is for services from Allied Engineering
Services. The original contract was for $240,000; and Amendment NO.1 was approved in April, 2004, which
was for siting services. Amendment No.2 encompasses a number of additional services, including updating
the conceptual design report, revise and expand the grading design, additions to the stormwater design,
additional utility system design, the addition of an industrial truck wash, structural design of the main building,
and extra project management. Allied Engineering originally requested $114,500, but a compromise figure
of $108,985 was agreed upon.
Commissioner Hietala commented that he does not believe it is too late to look at alternatives to a
transfer station, like direct hauling to Logan. Things have changed drastically since 2000, including costs that
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have tripled. He questions if trading the current refuse equipment in for equipment that could do direct
hauling to Logan would be much more cost effective and would be minuscule compared to what the transfer
station is going to cost.
City Manager Kukulski reminded the Commissioners that this evening they are acting to approve or
not approve the amendment to the professional services contract. What Commissioner Hietala is questioning
is if the City should even be proceeding with a transfer station. Staff did not come prepared to have that
discussion this evening.
Commissioner Hietala responded that he simply prefers to have more effective use of the City's
dollars.
Commissioner Kirchhoff agreed the Commission wants to do the most cost effective thing, but
questioned the advisability of starting the process over now.
Commissioner Krauss stated he believes building the transfer station as planned and paying for it over
the life of the building is economically superior to the direct hauling option.
Commissioner Hietala said he understands this engineering work has already been done, and the City
needs to make them whole at this point. However, it isn't too late to look at alternatives to a transfer station
because costs have greatly accelerated.
Mr. Johnson added that on Friday the City submitted the permit application to the Department of
Environmental Quality. Staff's review and the building design are about 95 percent complete at this time.
The State review process is roughly 90 days; 60 days for its review and 30 days for public comment, with
the permit issued after that. Staff is hoping to go out to bid in the early summer.
Assistant City Manager Brey reminded the Commissioners that there are a number of adjoining
property owners who have "fought the City tooth and nail" over this transfer station; and if the City reopens
the issue of a transfer station, it will reactivate those neighbors.
Mark Kottwitz, Sanitation Superintendent, pointed out the need to consider not only the hauling by
City trucks, but all the city residents who would have to haul to Logan. The purpose of the transfer station
is to get the collection down to Logan in an environmentally safe and clean manner. There will be a lot of
blowing trash along the roadsides when private persons are hauling loads at interstate speeds; and there
are a lot of self-haulers in this community, including construction workers. Mr. Kottwitz noted the cost of
transportation has increased drastically since 2000, particularly fuel costs, which will have a direct effect on
hauling costs. To haul to Logan will be a two hour trip with vehicles that are not built to haul long distances.
It was moved by Commissioner Krauss, seconded by Commissioner Youngman, that the City
Manager be authorized to sign Amendment No. 2 to the Professional Services Agreement with Allied
Engineering Services for engineering services for the solid waste transfer station, to increase the contract
amount by $108,985. The motion carried by the following Aye and No vote: those voting Aye being
Commissioner Krauss, Commissioner Youngman, Commissioner Kirchhoff, Commissioner Hietala, and
Mayor Cetraro; those voting No, none.
Commissioner Hietala asked to have staff provide the Commission with updated 2005 cost figures.
City Manager Kukulski announced staff with have those figures available to the Commission within the next
two weeks.
Executive Session re litiaation
At 8:58 p.m., Mayor Cetraro announced that, pursuant to Section 2-3-203(4)(a), Montana Code
Annotated, and the Montana Supreme Court rulings, he, as presiding officer, has determined that the
discussion of strategy to be followed with respect to litigation in open meeting would have a detrimental
effect on the litigating position of the City. He then called an executive session for the purpose of discussing
litigation strategy and requested that all persons except the Commissioners, City Manager, Acting City
Attorney, and the Deputy Clerk of the Commission leave the room.
At 9:16 p.m., Mayor Cetraro closed the executive session and reconvened the open meeting.
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ADDroval of Settlement Aareement with SWMBIA and named Plaintiffs in Cause No. DV-99-71.
Southwest Montana Buildina Industrv Assoc. Et al. v. City of Bozeman
City Manager Kukulski and Acting City Attorney Cooper informed the Commission of the results of
the court-ordered mediation held on Wednesday, January 26, 2005. The parties sent designated
representatives to this mediation and agreed to settle the case on certain terms, and said representatives
further agreed to use their best efforts to secure the approval of both the SWMBIA board and the City
Commission. The parties also agreed, subject to the approval of the SWMBIA board and the City
Commission, to enter into a consent agreement and judgment to present to the court for its approval.
Finally, City Manager Kukulski informed the Commission that he received a report from SWMBIA that its
board had approved the settlement agreement.
It was moved by Commissioner Youngman, seconded by Commissioner Hietala, to approve a
settlement with SWMBIA and the Class that includes the following: the return of $5 million of the
approximately $26 million in impact fees collected by the City of Bozeman; the commissioning of a new
impact fee study which will allow and provide for meaningful input by the building and development
community; that, as incentive to expedite the new study, the City agrees to reduce its current impact fees
by 10 percent from the time the Court approves the settlement until the new impact fees are implemented,
but in no event will reduction made pursuant to this settlement agreement exceed two years from the date
of Court approval; that the City, in return, receive confirmation from the court that its impact fees and their
collection are valid and lawful; that the Class, with the Court's approval, will release any and all claims made
or could have been made in the Class's pleadings; the impact fee credit program, impact fee waiver, and
annexation agreements are preserved; and that these terms will be reduced to writing and subject to the
approval of the District Court. The motion carried by the following Aye and No vote: those voting Aye being
Commissioner Youngman, Commissioner Hietala, Commissioner Krauss, Commissioner Kirchhoff, and
Mayor Cetraro; those voting No, none.
Discussion - FYI Items
The following "For Your Information" items were forwarded to the Commission.
(1 ) Excerpt from an article in the February 2005 edition of Governing magazine in which states
are graded on four criteria, showing that Montana rated a C+ overall.
(2) Listing of bills to be considered at hearings during the upcoming week.
(3) Letter from the Montana Board of Housing, dated January 28, seeking Commissioner
comments on the Low Income Housing Tax Credit Program application from Dab Dabney for the Bridger
Apartments project.
(4) Letter from the Montana Department of Commerce, dated January 20, forwardi ng information
on the CDBG program.
(5) Letterfrom Stuart Howard, 113 West Villard Street, expressing concern about the proposed
crisis care facility at 316 North Tracy Avenue.
(6) Notice of the question and answer session regarding the re-entry facility, being conducted
by Gallatin County at noon on Friday, February 11th, in the Community Room of the Courthouse.
(7) Copy of a memo from Planning Director Andy Epple to the Sweet Pea Festival Board of
Directors responding to a request for modification of the master plan for Lindley Park to allow a second
pavilion.
(8) Letter from Judy Blackmore, dated January 12, expressing concern about the proposed
amendment to the master plan for Lindley Park.
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(9) Updated list of planning projects to be considered at upcoming Commission meetings, dated
January 31,2005.
(10) Agenda for the Local Water Quality District Board meeting which was held on February 3.
(11 ) Agenda for the County Commission meeting to be held at 9:00 a.m. on Tuesday, February
8, at the Gallatin County Courthouse.
(12) Agenda for the Development Review Committee meeting to be held at 10:00 a.m. on
Wednesday, February 9, at the Professional Building.
(13) Agenda for the Design Review Board meeting to be held at 3:30 p.m. on Wednesday,
February 9, at the Professional Building.
(14) Agenda for the Community Alcohol Coalition meeting to be held at 4:00 p.m. on Wednesday,
February 9, in the Commission Room.
(15) Newsletterfrom Headwaters Recycling announcing that the next Board meeting is to be held
on February 9 in Boulder.
(16) Agenda for the Cemetery Board meeting to be held at 1 :00 p.m. on Thursday, February 10,
in the Commission Room.
(17) Minutes from the Community Affordable Housing Advisory Board meetings held on
December 8, 2004, December 16, 2004, and January 13, 2005.
(18) Letter from the American Council of Engineering Companies, dated February 7, 2005,
providing information on Qualifications Based Selection.
During his FYI, City Manager Kukulski presented the following: 1) The Local Government Study
Commission will be coming forward with their funding request. 2) The notice for secretarial support for the
Study Commission has gone out. 3) Gallatin County officials will be holding a question and answer session
on the re-entry facility on Friday, February 11th, at 12:00 noon. 4) He will be in Helena on Tuesday and
Thursday afternoons.
Planning Director Epple noted the following during his FYI: 1) A facilitated meeting was held between
Hope House and the neighbors. That application will be coming before the Commission on February 22. 2)
Rocky Mountain Engineering has been contracted to amend the plat of the Story Mansion block to aggregate
all of the lots into a single lot. 3) He will be submitting the proposed fee schedule to the City Manager for
review. 4) Staff met with the Mill District Historic Mixed Use project folks. 5) He asked for Commission
approval to require applicants of major development proposals to come before the Commission for an informal
review. A majority of Commissioners agreed to require informal reviews for large development proposals.
Commissioner Krauss asked, during his FYI: 1) If the City's request for proposals for the Story
Mansion deadline could be extended because he knows of someone who wants to submit a bid, but is out
of town. 2) If staff and the Commission is willing to act on Town Pump's request for reconsideration of
modification of the CUP/COA for Magic Diamond Too. A majority of the Commissioners agreed to reconsider
the modification if the new plan is a significant improvement from the original submission. 3) He will be going
to Helena tomorrow to meet with Montana Public Power representatives. The association is still a viable entity
and still may consider making an offer for the purchase of NorthWestern Energy.
During her FYI, Director of Public Service Arkell noted the following: 1) The Montana Department of
Transportation has responded to the Commission's request for information on the pros and cons of the
proposed traffic signal with a left-turn lane at the intersection of Willson Avenue and College Street. The
information forwarded includes the benefits/cons of a signal with a left-turn lane, a signal only, or an all-way
stop sign. MDoT is considering holding a public meeting with the neighbors and have extended their public
comment period until February 18th.
Commissioner Youngman offered the following FYI items: 1) She has drafted a letter for Library
Director Meister to take to Washington DC encouraging the state's senators and representative to help the
library obtain the rest of the funding it needs to proceed with its construction. The Commissioners supported
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the letter, with minor changes. 2) The Commission has approved a number of special permits for selling wine
and beer, and the Community Alcohol Coalition would like organizations to be aware of server training and
other services available to those selling alcohol. The Community Alcohol Coalition would be happy to write
a brochure outlining the services available for distribution to those requesting special alcohol sales permits.
During his FYI, Commissioner Kirchhoff submitted his draft letter to the eighth grade class at
Headwaters Academy. A majority of the Commissioners agreed to send the letter as presented.
Adjournment -10:00 D.m.
There being no further business to come before the Commission at this time, it was moved by
Commissioner Kirchhoff, seconded by Commissioner Hietala, that the meeting be adjourned. The motion
carried by the following Aye and No vote: those voting Aye being Commissioner Kirchhoff, Commissioner
Hietala, Commissioner Krauss, Commissioner Youngman, and M or Cetraro; those voting No, none.
ATTEST:
~;/~
R N L. SULLIVAN
Clerk of the Commission
PREPARED BY:
~ J~~H~
RE C. Del HO ER
Deputy Clerk of the Commission
02-07 -05