HomeMy WebLinkAbout2004-08-23 Minutes, City Commission
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MINUTES OF THE MEETING OF THE CITY COMMISSION
BOZEMAN, MONTANA
August 23,2004
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The Commission of the City of Bozeman met in regular session in the Commission Room, Municipal
Building, on Monday, August 23,2004, at 6:30 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,
Acting City Attorney Tim Cooper, and Deputy Clerk of the Commission Karen DeLathower.
Executive Session re personnel
At 6:30 pm Mayor Cetraro announced that, pursuant to Section 2-3-203(3), Montana Code
Annotated, the Montana Constitution and the Montana Supreme Court rulings, he, as presiding officer, has
determined that the right to privacy clearly exceeds the merits of pUblic disclosure and announced that the
employee has not waived her right to privacy. He then called an executive session for the purpose of
evaluating the Clerk of the Commission and requested that all persons except the Commissioners and the
Clerk leave the room.
At 7:00 pm, Mayor Cetraro closed the executive session and reconvened the open meeting.
Call to Order, Pledge of Allegiance and Moment of Silence
The meeting was opened with the Pledge of Allegiance and a moment of silence.
Minutes - Mav 3. May 24. June 7 and Auaust 16, 2004
It was moved by Commissioner Krauss, seconded by Commissioner Youngman, that the minutes
of the meeting of August 16, 2004 be approved as submitted. 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.
Mayor Cetraro deferred action on the minutes of the meetings of May 3, May 24, and June 7,2004
to a later date.
Consent Items
Assistant City Manager Brey presented to the Commission the following Consent Items.
Reauest for extension of approval for annexation of 0.67 acres described as Tracts
3 and 4. located in the W% of the NW% of the SW% of Section 13, T2S. R5E.
MPM (1602 and 1604 Maple lane) - Robert & Kathleen Mielnik and Donald &
Laurene Fausett (A-03004)
Ordinance No. 1620 - establishina an initial municipal zonina desianation of "B-2",
Community Business. on 8.06 acres described as a portion of lot 1. Minor
Subdivision No. 221. adiacent portion of Roxi lane abandoned. and adiacent
portion of Vallev Center Road: finallv adopt
ORDINANCE NO. 1620
AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA,
AMENDING THE CITY OF BOZEMAN ZONE MAP AND ESTABLISHING AN INITIAL
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MUNICIPALZONING DESIGNA TIONOf "B-2" (COMMUNITY BUSINESS DISTRICT) ON
8.06 ACRES LOCATED IN THE SW % Of SECTION 26, T1S, R5E, PMM, GALLATIN
COUNTY, MONTANA.
Ordinance No. 1621 - settina Citv Commissioner salaries. effective Julv 1. 2004:
provisionallv adopt and brina back in two weeks for final adoDtion
ORDINANCE NO. 1621
AN ORDINANCE Of THE CITY COMMISSION Of THE CITY Of BOZEMAN, MONTANA,
fiXING THE SALARIES Of THE CITY COMMISSIONERS AND MAYOR Of THE CITY Of
BOZEMAN, MONT ANA, IN ACCORDANCE WITH SECTION 2.04.070 Of THE BOZEMAN
MUNICIPAL CODE.
Commission Resolution No. 3715 - authorize Citv Manaaer to sian Chanae Order No.
1 for SID No. 674 (Bridaer Center Subdivision) - Walker Excavation. Inc..
Belarade. Montana - add $822.00 and 0 contract davs
COMMISSION RESOLUTION NO. 3715
A RESOLUTION Of THE CITY COMMISSION Of THE CITY Of BOZEMAN, MONTANA,
APPROVING ALTERATION/MODifiCATION Of CONTRACT WITH
WALKER
EXCAVATION, INC., BELGRADE, MONTANA.
Commission Resolution No. 3716 - intent to abandon and vacate Dortions of the
riahts-of-wav for West Oak Street. North Black Avenue and north/south allev
in Blocks 3 and 4. Imes Addition (fairarounds): set Dublic hearina for
SeDtember 7. 2004
COMMISSION RESOLUTION NO. 3716
A RESOLUTION Of THE CITY COMMISSION Of THE CITY Of BOZEMAN, MONTANA,
DECLARING IT TO BE THE INTENTION Of SAID COMMISSION TO DISCONTINUE,
ABANDON AND VACATE PORTIONS Of THE RIGHTS-Of-WAY fOR WEST OAK
STREET, NORTH BLACK AVENUE AND NORTH/SOUTH ALLEY IN BLOCKS 3 AND 4,
IMES ADDITION, IN THE CITY Of BOZEMAN, MONTANA.
Commission Resolution No. 3717 - intent to abandon and vacate Dortion of the riaht-
of-wav for West Lincoln Street. extendina westward from South 5th Avenue
approximatelv 143 feet: set Dublic hearina for SeDtember 7.2004
COMMISSION RESOLUTION NO. 3717
A RESOLUTION Of THE CITY COMMISSION Of THE CITY Of BOZEMAN, MONTANA,
DECLARING IT TO BE THE INTENTION Of SAID COMMISSION TO DISCONTINUE,
ABANDON AND VACATE THAT PORTION Of THE RIGHT-Of-WAY fOR WEST
LINCOLN STREET IN BLOCK 51, CAPITOL HILL ADDITION, EXTENDING WESTWARD
fROM SOUTH fifTH AVENUE APPROXIMATELY 143 fEET, IN THE CITY Of
BOZEMAN, MONTANA.
Commission Resolution No. 3718 - statina intent to modify the Urban Renewal Plan
bv extendina the life of the tax increment financina district to the fifteenth vear
after adoDtion of the Plan: set public hearina for September 20. 2004
COMMISSION RESOLUTION NO. 3718
A RESOLUTION Of THE CITY COMMISSION Of THE CITY Of BOZEMAN, MONTANA,
DECLARING THE INTENTION TO EXTEND THE LifE Of THE TAX INCREMENT
fiNANCING DISTRICT ESTABLISHED UNDER URBAN RENEWAL PLAN DATED
NOVEMBER 1995AND TO INCLUDE A PARKING GARAGE AS ASPEClflED PROJECT
IN THE PLAN, AND SETTING PUBLIC HEARING DATE.
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Authorize Mavor to sian - Findinas of Fact and Order - modification of a condition for
the preliminary plat for Harvest Creek Subdivision. Phases V throuah XI. which
reauires improvements to Durston Road prior to filing of the final plat for
Phases VIII-XI (northwest of intersection of Durston Road and North 27th
Avenue)
Authorize City Manaaer to sian - Amendment No. 1 to Professional Services
Aareement for SID No. 674 (Bridaer Center Subdivision) - Morrison-Maierle.
Incoo Bozeman. Montana
Authorize City Manaaer to sian - Acceptance of Public Access Easement across Lot
11. Block 2. Gallatin Park Center (extendina southwest from Gallatin Park
Drive) - SR Wallace. LLC
Authorize City Manaaer to sian - Acceptance of Public Access Easement across Lot
10. Block 2. Gallatin Park Center (extendina southwest from Gallatin Park
Drive) - Kurt Wineaardner and Melinda Wineaardner
Authorize City Manaaer to execute contract documents for Bicvcle Infrastructure-
Bozeman. STPE1299(1). Control No. 4530. as follows: Schedule I - Newman
Sians: Schedule II - CORA: Schedule III - Dumar Construction: continaent
upon approval bv Montana Department of Transportation. CTEP Bureau
Reiect all bids for new brush chipper for Forestry Division: authorize staff to rebid
Claims
It was moved by Commissioner Youngman, seconded by Commissioner Kirchhoff, 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 Youngman, Commissioner Kirchhoff, Commissioner Hietala, Commissioner Krauss,
and Mayor Cetraro; those voting No, none.
Public comment
Municipal Court Judge Patricia Kyle Carlson reviewed her letter of resignation dated August 20,
2004, noting her resignation will be effective October 31, 2004. She thanked the Commission, staff, and
people of the community for having had faith in her. Her hope is that she leaves this community better than
when she came to it.
Reauest for letter of support for application to US Geoloaical Survey to name a local unnamed peak
adiacent to Mount Blackmore (up Hvalite Canyon at the head of South Cottonwood Creek) "Alex
Lowe Peak" . Terry Cunninaham
Included in the Commissioners' packets was a letter from Terry Cunningham forwarding a request
to name an unnamed peak and supporting information for that request. He is requesting a letter of support
from the Commission for the naming of the mountain known as 10,031, Gallatin National Forest, the "Alex
Lowe Peak" to commemorate Mr. Lowe's contribution to outdoor recreation in the Gallatin National Forest
and his association with this mountain.
Mr. Cunningham distributed a binder that contains all the relevant information for naming an
unnamed peak and highlighting Mr. Lowe's achievements. Relevant criteria for naming geographic features
include: 1) The person must be deceased at least five years; Mr. Lowe died in October, 1999. 2) The
person being honored should have been directly associated with the feature being named or have made
a significant contribution to the area of the feature or the state in which it is located. 3) A proposal to
commemorate an individual should contain evidence of local support for the proposed name; such as letters
of support from local residents and administrative agency personnel. Mr. Lowe was called "the world's
greatest climber" by Outside Maaazine and was a renowned ice climber, international climber, and back
country skiier. There are no other climbers who have an association with unnamed peak 10,031 other than
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Alex Lowe and Hans Saari. Mr. Cunningham said they are requesting the name "Alex Lowe Peak" as
opposed to "Lowe Mountain", "Lowe Peak", or a similar name because there are several nationally-known
and local mountaineers who share the surname Lowe and because of the close proximity of Lone Mountain,
which could result in confusion.
The Commissioners agreed this is a fitting tribute, and they are honored to endorse this requested
letter of support.
It was moved by Commissioner Kirchhoff, seconded by Commissioner Hietala, that the Commission
authorize Mayor Cetraro to write a letter of support to the US Geological Survey to name a local unnamed
peak adjacent to Mount Blackmore, Gallatin National Forest, "Alex Lowe Peak". 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.
Public hearina - Preliminary platforWest Meadows Subdivision -amend preliminarilv approved West
Meadows Subdivision. Phase III. to allow subdivision of 23.93 acres described as Lot 2. South
Meadow Minor Subdivision No. 294. into 60 sinale-household lots instead of 50 sinale-household
lots. Rockv Mountain Enaineers for Yvonne Jarrett and Euaene Graf III. et al. (P-04032)
This was the time and place set for the public hearing on the requested amendment to the
preliminarily approved preliminary plat for West Meadows Subdivision, Phase III, as requested by Rocky
Mountain Engineers for Yvonne Jarrett and Eugene Graf III et al. under Application No. P-04032, to allow
the subdivision of 23.93 acres described as Lot 2, South Meadow Minor Subdivision No. 294, into 60 single-
household lots instead of 50 single-household lots.
Mayor Cetraro opened the public hearing.
Associate Planner Morris presented the staff report, reviewing this proposal to amend the
preliminarily approved, in August 2001, West Meadows Subdivision, Phase III. 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. Staff is recommending cash-in-lieu of parkland dedication
for the additional ten lots.
Mike Potter, Potter Clinton Development, noted the reason to change to smaller urban lots in the
center of phase III is to diversify the lots available and make them more attainable in the market place.
David McLaughlin, Fox Hollow Townhouse Association, spoke for the occupants of the 12
townhomes in their association, stating they strongly object to any more building in this area. Since the
inception of this adjacent development, several Fox Hollow residents have experienced flooding during the
spring thaw and rainy seasons, which continues to cause property damage and mold growth. Mr.
McLaughlin presented petitions containing 239 signatures to save Bozeman Creek and Sourdough Trail and
stating that stormwater detention ponds and standing water have significantly increased the mosquito
population in this area and the likelihood of contracting West Nile Virus. Groundwater tables in this area
are fluctuating and rising. Mr. McLaughlin then offered a report from Michael Nicklin, Nicklin Earth and
Water, noting that the most noteworthy precipitation accumulation occurred in 1997, yet there was no water
in Fox Hollow crawl spaces or any flooding. Groundwater problems at Fox Hollow were first identified in
2001 and 2002, normal precipitation accumulation years; therefore, it is inferred that the high groundwater
levels were associated with the South Meadows project construction. Other significant factors contributing
to the high groundwater levels in this area include changes in recharge patterns associated with sprinkler
irrigation, the location of the stormwater detention pond located along the South Meadows property
boundary with the Fox Hollow town homes, and disturbance of the shallow aquifer system from construction
activities. Mr. McLaughlin noted that the presence of ten more units, with ten more roofs, driveways, and
sidewalks to divert water will further increase the flooding of the Fox Hollow area. He suggested a
discussion between residents of Fox Hollow and the builders to explore ways to alleviate this situation.
Ann DiBerardinis, 3150 Graf Street, #8, agreed with Mr. McLaughlin's comments regarding
opposition to the initial development of South Meadows and the addition of ten more units in that area. The
reasons for her opposition are the same ones that have proven to be problems since South Meadows was
developed, specifically: the retention and detention ponds have caused flooding of the area for the first time;
its infringement on the Sourdough nature trail, which is used by hundreds of people in the area; infringement
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on the beauty and environmental sensitivity of the pristine wetlands and wildlife habitat; the health hazard
of detention ponds that breed mosquitoes, thus increasing the potential of West Nile Virus; the additional
vehicular traffic on South Third Avenue, where there are many school children, walkers, and bicyclists.
William Neece, 3150 Graf Street, #3, said his objection is that there are existing water problems,
which will be further aggravated by the addition of more concrete. It seems to be common sense to not
add any more impervious surfaces to an area that already has a water problem.
Mr. Potter responded, saying they are sensitive to the tensions surrounding these issues. However,
in phase III, the general runoff drainage pattern flows toward Matthew Bird Creek. It is a recognized fact
that there is high groundwater in this area; and when this area was first developed, they did a lot of research
regarding groundwater levels. They have designed the footings and foundations of the homes they have
constructed in this area at the proper elevations to keep the water out, and they have not had any problems
within their projects. They believe they are doing the responsible thing; creating ten additional units and
smaller lots goes in the direction of the City's comprehensive development plan. Mr. Potter closed by saying
they believe they have managed the groundwater situation well; and if someone in the area has water
problems, it isn't necessarily them creating the problem.
Responding to Commissioner Youngman, Mr. Potter indicated the Graf family owned the original
properties; but South Meadows is completely different from West Meadows.
Commissioner Youngman noted the people who live in that vicinity and some of the Commissioners
have concerns with high water levels in that area. While the on-site groundwater problems may be taken
care of, it is creating off-site changes that are undesirable. Off-site changes created by development cannot
impact existing areas, and she wants to make sure the City is being proactive and preventive this time.
Therefore, she is requesting a one-week delay to allow the Commission time to review the application,
hydrology reports, and confer with staff. If some of the runoff from this project drains to the north a little,
it will further impact the Spring Meadows assisted living facility, which already has water problems.
Commissioner Youngman suggested the planting of thirsty trees in the area for protection from additional
water damage. She further suggested the developers meet with the residents of Fox Hollow to provide
assurances to them that these groundwater issues will be addressed.
Mr. Potter responded they appreciate the Commission's sensitivity to this issue, but the professional
people they have had working for them have been insulted and treated shabbily by some of the residents
of Fox Hollow. Allowing more time will not do any good because the mind set of those people will not be
changed. Mr. Potter agreed the idea of planting water-thirsty trees in this area, in lieu of the cash donation,
is a good idea; but he still maintains historic attitudes and demeanor won't change. A week's delay by the
Commission won't change that and is costing them time and money. They want to stay on course and keep
moving forward with phase III.
Responding to Commissioner Krauss's inquiries, Mr. Potter said the streets and perimeter lots will
remain the same; they will be creating skinnier lots in the mid-section. They have developed architectural
plans and design concepts to adapt to these smaller lots.
Commissioner Youngman directed staff to provide the Commission with drainage information, saying
she wants some assurances that the water will remain on site; and she wants to talk to staff about the
possibility of using landscaping, not in lieu of cash, along the trail corridor to absorb the water and buffer
the Spring Meadows assisted living facility.
Commissioner Kirchhoff agreed with Commissioner Youngman's request for a one-week delay,
noting August 30th is not a meeting day, so the next meeting will be held on September 7th. He is
interested in getting verification from staff regarding the findings of Dr. Nicklin's study. He is interested in
knowing staff's opinion of that study because this is an ongoing problem, and the Commission asked for
a resolution earlier; now is the time for final resolution. He also desires confirmation that drainage from
phase III will be to the northwest, and assurances that some form of action will be taken in the event it flows
to the northeast.
Since there were no Commissioner objections, Mayor Cetraro closed the public hearing.
Since the decision on this matter has been postponed until the next meeting, Mayor Cetraro
reopened the public hearing until September 7, 2004.
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Application for loan from CDBG Economic Development Revolvina Loan Fund. Zearth.com
Included in last week's packet was a memo from Mark Evans, Executive Director of the Gallatin
Development Corporation, forwarding the application from Zearth.com for a loan from the Community
Development Block Grant Economic Development Revolving Loan Fund, along with the CDBG Economic
Development Loan Review Committee's recommendation. Distributed just prior to the meeting was a memo
from Tracey Jette, Gallatin Development Corporation, providing clarification to issues raised by the
Commission last week.
Commissioner Hietala suggested the Commission have a working meeting with the CDBG Economic
Development Loan Review Committee to review the process and expectations.
Commissioner Kirchhoff asked if there is a staff or board member who is in charge of reviewing
these proposals to insure they comply with the living wage ordinance.
It was moved by Commissioner Hietala, seconded by Commissioner Krauss, that the application
submitted by Zearth.com for a $150,000 loan from the Community Development Block Grant Economic
Development Revolving Loan Fund be approved, subject to the following conditions:
1. The loan shall be for a period of five years at a five-percent fixed interest rate.
2. The loan shall be disbursed in two equal installments of $75,000, with the initial
disbursement being made at loan closing and the second disbursement being made
upon recommendation from the Loan Review Committee.
3. Personal guarantees from the shareholders, secured by second liens on residential
properties, shall be given. Prior to closing, the applicant shall provide the City with
current appraisals for each of the properties, as well as title insurance on each
property.
4. Copies of current personal credit reports shall be provided for each shareholder prior
to any disbursement of funds.
5. A collateral assignment of key person life insurance in the amount of $150,000 shall
be provided to the City of Bozeman.
The motion carried by the following Aye and No vote: those voting Aye being Commissioner Hietala,
Commissioner Krauss, CommissionerYoungman, Commissioner Kirchhoff, and Mayor Cetraro; those voting
No, none.
Break 7:58 . 8:07 pm
Mayor Cetraro declared a break from 7:58 pm until 8:07 pm in accordance with Commission policy.
Discussion re alternative proposal to fund infrastructure improvements to North 19th AvenueNallev
Center Road corridor
Distributed just prior to the meeting was a letter from Brian Gallik, attorney representing Gallatin
Center, dated August 19.
Gene Graf, 3300 Graf, #6, reminded the Commission that the special improvement district creation
came forth a couple of years ago and the City endorsed it at that time. He proceeded, on that basis, to sign
documents for the occupancy of his land along 19th Avenue, south of Valley Center Road and north of Baxer
Lane. The problem with the special improvement districts (SID) is the large assessment for the Valley
Center Road construction; the rest of the SIDs were at an acceptable amount. Mr. Graf stated they are now
asking the Commission to institute the three SIDs for the improvements to North 19th Avenue, without
purchasing the bonds at this time. He would be willing to front-end the construction of the light at Cattail
Street and the transitional area of Valley Center Road and North 19th Avenue. His team has spoken with
the Montana Department of Transportation regarding this; and they have agreed that, while they would
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prefer to have everything constructed at once, they are agreeable to allowing the three construction projects
on North 19th Avenue to proceed at this time. It is their hope that they can get resolution to this issue in a
couple of weeks so they know where they stand, and so that their problems don't become the City's
problems.
Director of Public Service Arkell stated that when she received notification from Mr. Graf's team, she
asked Thomas, Dean, and Hoskins to determine how much it would cost to build only a North 19th Avenue
transition onto Valley Center Road. Their very rough estimate is $25,000 to construct 20 meters onto Valley
Center Road, and $15,000 to redesign that intersection and separate out the North 19th project because all
previous cost estimates were based on inclusion of the Valley Center Road improvement.
Responding to Commissioner Krauss, the Director of Public Service said that all im~rovements on
North 19th Avenue would be done in a similar fashion as those on Main Street and North 19 h Avenue. The
improvements to Valley Center Road would be done to make traffic safe.
Responding to Commissioner Hietala, Director of Public Service Arkell stated it is possible the SID
assessments for Valley Center Road could decrease because of the work that would now be done that was
previously included in the Valley Center Road costs.
Assistant City Manager Brey asked, under a scenario like Mr. Graf has proposed, what would
become of the $400,000 in design costs. The Director of Public Service answered that the first part of Mr.
Graf's proposal is for the Commission to create the SIDs for improvements to North 19th Avenue, the signal
at Cattail Street, and the North 19th AvenueNalley Center Road signal, but not sell bonds immediately. The
design costs of those improvements would be proportioned to those projects, and the design costs for Valley
Center Road improvements would be proportioned to that project.
Mike Garrity, Garrity Law Firm, representing one, Outback Steakhouse, of the three developers of
the plan to contribute $600,000 for roadway cost improvements for Valley Center Road and North 19th
Avenue, stated this group's offer to contribute $600,000 to offset the cost of the roadway improvement
project is still outstanding. This provides the opportunity for all four improvement projects to be constructed
at once, with the three developers recovering their costs in payback conditions. These developers are ready
to negotiate the terms of that payback agreement and move forward with site plan approval, construction
permits, and construction. This will require modifications of the conditions imposed on the original site plan
approval and require the developers to be granted temporary occupancy permits until such time as the
roadway improvement projects are completed.
Dan Fillinger, Outback Steakhouse, said they are seeking a way to start developing the property on
Valley Center Road. They have missed two construction seasons already and are ready to miss the third,
so they hope the Commission can work with all parties to get these projects off the ground and underway.
Buzz Tarlow, Tarlow and Stonecipher, representing the ComeOn Inn, summarized the position of
ComeOn Inn as being that now is the point where it is necessary for the Commission to get these roadway
projects going and get them done. There are public safety issues involved here, and it is appropriate to get
the improvements done the right way and in a coordinated fashion.
Assistant City Manager Brey told the Commission staff needs direction as to whether or not it should
begin working on these projects right away because it will be at the cost of some other projects.
Responding to Mayor Cetraro, Acting City Attorney Cooper noted the applications on Valley Center
Road were approved with conditions that they would not be allowed to start their construction until work on
the Valley Center Road improvements was assured. As long as the City knew it was going forward with the
roadway improvements, it was comfortable with letting development along Valley Center Road go ahead
because the road improvements would not take as long as their projects to construct; but that point has not
yet been reached. These developers are proposing to help the City get its projects going, if it will help them
get their projects going. The Commission now needs to determine if it feels the City can get these projects
back on track, as long as these individuals help in the way they have offered to help. These developers also
want to discuss revisiting their site plans to help make up for lost construction time.
Responding to Commissioner Youngman, Director of Public Service Arkell stated the Commission
needs to answer Mr. Graf's letter regarding the Valley Center Road improvements.
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Commissioner Kirchhoff offered that the Montana Department of Transportation was very strong in
maintaining that these improvements could not be separated; they would have to be constructed together.
Mr. Skinner included in his letter of August 18th four reasons why the corridor should be constructed as a
single project. He feels there are too many outstanding considerations here, including those from the
Montana Department of Transportation; and he doesn't believe staff should be directed to do anything
except to wait for a complete proposal that would be met with acceptance by the majority of the landowners
for these projects.
Commissioner Hietala suggested the City Manager, Acting City Attorney, and other staff work with
these parties to see if an agreement can be reached that mutually benefits the City and the developers.
Commissioner Krauss noted the City was considering spending $2 million in impact fees to pay
down the SIDs, but then the Commission decided not to use impact fees until the lawsuit is settled because
those monies could have to be repaid. He noted he read in the big box store preliminary report that regional
retail development has more police calls because of the increase in traffic accidents, which argues strongly
that Valley Center Road improvements be completed before it is developed. He views the Valley Center
Road improvements differently because Valley Center Road is not the kind of existent problem that North
19th Avenue is. Commissioner Krauss said he would like to see impact fees used to buy down the SIDs for
Valley Center Road and North 19th Avenue. He would be in favor of making the improvements to North 19th
Avenue, but the impact of the Valley Center Road SID on already developed properties is too much for their
benefit received.
Commissioner Kirchhoff stated he believes direction to staff should be that once the affected
landowners are satisfied that the SIDs have enough support, it is time to move forward.
Commissioner Krauss reminded the Commissioners that they talked about impact fees and where
they should be used because of safety issues, like for Babcock Street and Durston Road. Valley Center
Road is a bare road that can be driven easily, but North 19th Avenue is a road rage incubator now and is the
most unsafe road within the city. He feels it would be appropriate to use impact fees to pay down these SIDs
because of existing safety problems on North 19th Avenue that are similar to Durston Road and Babcock
Street.
Commissioner Youngman responded that both staff and the Montana Department of Transportation
are still saying they want both the improvements to North 19th Avenue and Valley Center Road done
together, which would be safer and less expensive for the community. She urged staff and the developers
to come up with a workable solution.
The Commissioners directed staff to meet with representatives of the various parties to develop a
proposed financing package for the road improvements and bring it back for Commission review and
consideration.
Discussion re reauested SID for imDrovements to Baxter Lane extendina from North 19th Avenue
east aDDroximatelv 2300 feet
Included in the Commissioners' packets was a memo from City Engineer Hixson, dated August 11,
providing responses to a letter from Morrison-Maierle, Inc., dated August 9, and seeking direction from the
Commission.
City Engineer Hixson stated Philllip Saccocia has submitted a request to create an SID for
reconstruction of the 2,300 feet of Baxter Lane lying immediately east of North 19th Avenue. The preliminary
costs and assessments have been put together by Morrison-Maierle, Inc., and the next step would be to
bring back a resolution of intent to create. Mr. Saccocia is funding the design work; but if the project is
undertaken, the City will assume the risk for any default on the bonds, which is normal. If the decision is
made to go forward, it will require the commitment of staff time. No impact fee money is currently budgeted
for this project. Some of the properties that would be included in this district will also be included in the
North 19th Avenue improvement district. So while the proposed SID assessment is only $6,000 per acre,
some property owners within the North 19th Avenue SID will see their assessments go up quite a bit.
Responding to Commissioner Krauss, City Engineer Hixson stated the assessment must be
calculated based on the equitable overall value of the entire district, but other sources of funding could be
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used to buy down the amount of bonds that would have to be sold. Commissioner Krauss then asked if the
Commission would be open to rezoning the Gardner Simmental subdivision to allow uses that would allow
them to afford this amount of assessment. Commissioner Kirchhoff stated none of this would be necessary
without new projects and new businesses being generated. Commissioner Youngman added there will be
inequities until impact fees are able to be utilized and existing businesses will be impacted more.
Keith Belden, Morrison-Maierle, Inc., noted there will be a number 0 f businesses a nd vacant
landowers that will be imposed upon by this SID. Mr. Saccocia is proposing this SID as a means to finance
the improvements that were a condition of approval of a minor subdivision that the Commission approved
over two years ago. Mr. Saccocia and Cape-France have participated in past SIDs; and without their
participation, the linkage between Oak Street and North 19th Avenue would never have been completed.
This SID is required to include an additional five percent discretionary fee in addition to the usual five
percent revolving fund fee; and if that discretionary fee were eliminated, the cost of the project would be
reduced $32,000.
Steve Anderson, Anderson Precast, noted his business has been there since before North 19th
Avenue was built. While they want to remain in business within the city, all of these SIDs are going to force
them to move to Belgrade or someplace else, along with all the neighboring businesses. People in town
like local businesses, but the policies the City is setting are forcing local businesses out and allowing chain
stores in because they are the only ones that can afford these costs. He asked the Commission to find some
other method of funding these improvements.
Phillip Saccocia, applicant, stated he spent several hundred thousand dollars to complete the
linkage between North 19th Avenue and Oak Street and improvements to North 19th Avenue and the trunk
water main. He desires to make these improvements to Baxter Lane ahead of development because he
knows this project must be completed. He is not asking for any impact fee credits for these improvements.
Responding to Commissioner Krauss, the City Engineer agreed it would be ideal to include only
undeveloped property in this SID, but that would not meet the legal test because properties immediately
adjacent to and with access only to Baxter Lane must be included in the district. This district does meet the
legal test that the benefits outweigh the costs, even though they are developed properties.
In response to Commissioner Hietala, City Engineer Hixson noted there are several methods that
can be used to figure assessments; this one is based on square footage.
Commissioner Youngman asked if the cost of the SID could be bought down, to which the City
Engineer answered impact fees could be used; and if other sources of funding are available, they could be
used to buy down the bonds. Mr. Belden asked if an applicant could put money into an SID to be used only
to buy down a portion of the SID. Acting City Manager Brey replied that staff will have to investigate that.
The Commissioners directed staff to identify various options for assessing the properties within the
proposed special improvement district boundaries.
Discussion - FYI Items
The following "For Your Information" items were forwarded to the Commission.
(1) Flyer announcing the second planning session for the downtown parking structure,
scheduled for 7:00 pm on Wednesday, August 25, at the Emerson Cultural Center.
(2) Public Notice from the Montana Department of Environmental Quality announcing intent to
issue a new general permit for storm water discharges associated with small municipal separate storm sewer
systems and soliciting public comment through September 24.
(3) Agenda for the County Commission meeting to be held at 9:00 am on Tuesday, August 24,
at the Courthouse.
(4) Agenda for the Development Review Committee meeting to be held at 10:00 am on
Tuesday, August 24, at the Professional Building.
08-23-04
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(5) Agenda for the Design Review Board meeting to be held at 3:30 pm on Tuesday, August 24,
at the Professional Building.
During his FYI, Assistant City Manager Brey stated: 1) He will be meeting with Mr. Clotfelter this
week, and asked if he had authority from the Commission to make the changes to the Memorandum of
Understanding discussed last week. A majority 0 f the Commissioners indicated t heir approval. M r.
Clotfelter plans to come before the Commission on September 7th to look for the go-ahead to design the
alternate plan or to advise the Commission that the alternate plan is not feasible. 2) Item 13 of this
evening's agenda, an executive session, has been cancelled.
City Manager Kukulski noted the following during his FYI: 1) This Commission is talking about a lot
of the same issues as those facing Kalispell. 2) Since there is no Commission meeting next Monday, he
hopes he will have the opportunity to get better acclimated.
Commissioner Krauss, during his FYI: 1) Asked when the Centennial Park issue will be on the
agenda. Assistant Manager Brey stated he will be meeting this week with the gentleman regarding his
concerns with Centennial Park. 2) Stated staff needs to determine if there is room for a parking lot at the
trailhead at Gardner Park.
During his FYI, Commissioner Kirchhoff: 1) Questioned the memo from the Montana Department
of Environmental Quality regarding new permits for storm water discharge. Director of Public Service Arkell
stated the City has had its permit application submitted since March, 2003, but the permit requirements are
just now being adopted, so staff will have to resubmit when the permit requirements are finalized. 2) Noted
that Wednesday evening The Garage at City Center project will be discussed, and this presentation will be
more detailed than the previous one.
Mayor Cetraro offered the following FYI items: 1) He would like to see an agenda item on goal-
setting. City Manager Kukulski agreed those are things that need to be addressed for the Commission to
set the tone of the agenda and the meetings. The City Manager suggested workshop meetings on the
second and fourth Mondays, with the first and third Mondays being reserved for action items. 2) He would
like to streamline the Commission meetings and not conduct a Commission meeting next Monday, which
is the fifth Monday.
. Commissioner Youngman, during her FYI, stated she would like to add fifth Monday meetings back
into the Commission schedule as it would be a good opportunity for workshops and Commissioner
discussions.
Adjournment - 10:15 pm
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 ommissioner Kirchhoff, Commissioner
Hietala, Commissioner Krauss, Commissioner Youngm an 0 traro; those voting No, none.
ATTEST:
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R IN L. SULLIVAN
Clerk of the Commission
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KAJ EN L. DeLA THOWE
Deputy Clerk of the Commission
08-23-04