Loading...
HomeMy WebLinkAbout2004-03-01 Minutes, City Commission .--. ..-----.... __....___n......._ --..----... .____.. n..". _. __". MINUTES OF THE MEETING OF THE CITY COMMISSION BOZEMAN, MONTANA March 1, 2004 ***************************** The Commission of the City of Bozeman met in regular session in the Commission Room, Municipal Building, on Monday, March 1,2003, at 6:00 pm. Present were Mayor Andrew Cetraro, Commissioner Jeff Krauss, Commissioner Marcia Youngman, Commissioner Lee Hietala, Acting City Manager Ron Brey, Director of Public Service Debbie Arkell, Planning Director Andy Epple, City Attorney Paul Luwe, and Deputy Clerk of the Commission Karen DeLathower. Commissioner Steve Kirchhoff was absent. Sianina of Notice of SDecial Meetina Each of the Commissioners, in turn, signed the Notice of Special Meeting. Staff Dresentations re deDartment budQet reauests for Fiscal Year 2004-2005: (1) Water Treatment Plant SUDerintendent Dean Elliott: (2) Sanitation SUDerintendent Mark Kottwitz: and (3) Street SUDerintendent John VanDelinder Overview. Administrative Services Director Gamradt distributed the City of Bozeman Preliminary Budget Picture for FY 2005 and gave a brief overview of the City's finances. The general fund is substantially different from the enterprise fund because the general fund is highly dependable, while the enterprise fund is extremely volatile. The street maintenance fund is a significant area of general fund expenditures, and a high balance has never been carried in that fund. The Lyman Creek project was completed, at 60 percent above the anticipated amount, which entirely depleted the balance in the water fund. Administrative Services Director Gamradt noted the wastewater fund has a substantial balance at this time but there are forthcoming EPA projects, which require matching funds. He said he is confident the wastewater surcharge can be dropped this fiscal year. The expense of a transfer station and the purchase of the Mandeville property have impacted the solid waste fund. There are few projects in the Capital Improvement Program (CIP) in the general fund for the coming year, except for bike route improvements and parks master planning; while the enterprise fund has a substantial number of improvements included. Director of Public Service Arkell noted seven divisions make up the Public Works Department. She stressed the importance of the CIP to that department. Water Treatment Plant. Superintendent Elliott distributed a handout on the Water Treatment Plant, stating the mission of the water treatment plant is to maintain high-quality drinking water and to meet the water supply demand of the City of Bozeman. Their work is highly regulated by the Safe Drinking Water Act, which is the largest piece of legislation to come out of the United State Congress. In response to those regulations, they currently test for over 80 different contaminants. There are many motors, pumps, and other apparatus at the water treatment plant that account for the large budget for repair and maintenance. It takes six operators, two per shift, to keep the plant running 24 hours per day, 365 days a year. The Lyman Creek water plant is anticipated to be in operation on April 1 st, but will not require additional staff. Except for construction projects, the operations budget of the water treatment plant isn't going to change very much this year. The biggest item in their budget is for construction projects. The Sourdough by-pass project is underway now, and next year the Hyalite transmission main will be replaced. Responding to Commissioner Hietala, Director of Public Service Arkell stated of the proposed projects outlined, mostly are larger trunk and water main projects. Commissioner Krauss questioned how the City is going to pay $2.4 million for the Hyalite transmission main. He also asked if equipment at the water treatment plant is replaced as it gets old. Superintendent Elliott responded preventative maintenance is very important to them, and older equipment is replaced as needed. The water treatment plant was originally designed as a 20-year plant; and it's 20 years old now, and they expect it to last another five years. 03-01-04 ---.-.- . ..- .-.....- -..-.. .--... .. - 2 - Commissioner Hietala asked if they anticipate future deficits, to which Superintendent Elliott replied they believe their facility plan will help them determine that. Further responding to Commissioner Hietala, Superintendent Elliott noted Montana State University pays a government rate for water. Commissioner Youngman recalled being told that the Lyman Creek Reservoir was a pure underground source of water that, once the new cover was installed, wouldn't need to be treated; but it is being treated. Superintendent Elliott noted that meant the water didn't need to be filtered; all municipal water requires fluoride and chlorine. Sanitation Division. Superintendent Kottwitz distributed the Solid Waste Division report and gave a brief description of the solid waste division, which is divided into three sub-divisions; refuse collection, disposal, and recycling. The refuse collection division is experiencing growth issues because there have been 2,970 acres annexed to the City since 1996, with 1,254 acres being developed into subdivisions. They anticipate that by the end of 2005, the refuse collection division will have approximately 6,450 accounts. Therefore, the sanitation division is requesting a new collection vehicle, which is not in the CIP; and one new full-time employee for the refuse collection division. The recycling and compost programs continue to grow, and it is hoped a plastics recycling program can be developed in 2005. Also planned for 2005 is a spring household hazardous waste collection event. They also want to start construction of the transfer station. The repair and maintenance budget has increased because there is some old equipment that needs to be replaced. Break 6:57 to 7:00 pm Mayor Cetraro declared a break from 6:57 pm to 7:00 pm to give the Commission an opportunity to prepare for the regular Commission meeting. Call to Order. Pledae of Alleaiance. and Moment of Silence The meeting was opened with the Pledge of Allegiance and a moment of silence. None of the Commissioners requested that any of the Consent Items be removed for discussion. Authorize absence of Commissioner Kirchhoff from this meetina It was moved by Commissioner Krauss, seconded by Commissioner Youngman, that the Commission authorize Commissioner Kirchhoff's absence 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. Minutes - Februarv 9 and Februarv 23.2004 It was moved by Commissioner Youngman, seconded by Commissioner Hietala, that the minutes of the meetings of February 9 and February 23, 2004, be approved as submitted. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Youngman, Commissioner Hietala, Commissioner Krauss, and Mayor Cetraro; those voting No, none. Consent Items Acting City Manager Brey presented to the Commission the following Consent Items. Commission Resolution No. 3657 - authorize Actina City Manaaer to sian Chanae Order No.3 for Lyman Creek Reservoir - Edsall Construction Company. Bozeman. Montana. add $19.128.13 and 0 calendar days 03-01-04 -.--...---.--.--. . . -... -- --..- __._n_ ..____..____.._____ __.... ---.-.-- - 3 - COMMISSION RESOLUTION NO. 3657 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, APPROVING AL TERATION/MODIFICATION OF CONTRACT WITH EDSALL CONSTRUCTION COMPANY, BOZEMAN, MONTANA. Acknowledae receipt of staff report - annexation of 40.22 acres described as Tracts 1 and 2. COS No. 1256 ~ Bach Builders & Developers for Carl Vandermolen (south side of Baxter Lane approximately 1400 feet west of North 19th Avenue) (A~04001 ) Commission Resolution No. 3658 ~ intent to annex 40.22 acres described as Tracts 1 and 2. COS No. 1256 (south side of Baxter Lane approximately 1400 feet west of North 19th Avenue): set public hearina for April 5. 2004 COMMISSION RESOLUTION NO. 3658 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, DECLARING IT TO BE THE INTENTION OF THE CITY OF BOZEMAN, THE INHABITANTS THEREOF AND THE INHABITANTS OF A TRACT OF LAND CONTIGUOUS TO SAID CITY OF BOZEMAN, AND HEREIN MORE PARTICULARLY DESCRIBED, TO EXTEND THE BOUNDARIES OF SAID CITY OF BOZEMAN SO AS TO INCLUDE SAID CONTIGUOUS TRACT WITHIN THE CORPORATE LIMITS THEREOF. Authorize Mayor to sian ~ Construction AQreement with the State of Montana Department of Transportation ~ overlay of Hiahland Boulevard from Kaay Boulevard to East Main Street (Proiect No. CM1215r3H Authorize Mayor to sian - Construction Aareement with the State of Montana Department of Transportation ~ overlay of Peach Street between North 7th Avenue and North Rouse Avenue (Proiect No. CM1204r2H Authorize Actina City Manaaer to sian ~ Acceptance of Public Access Easement from Bozeman Days Inn. LLC ~ across Lot 2A. Block 2. Amended Plat of Tanae's Addition Subdivision Reappointment of Cyndv Andrus to Yellowstone Country Montana Board of Directors for three~year term to expire on April 30. 2007 Acknowledae receipt of reauest for creation of street improvement liahtina district for The Villaae Downtown: refer to staff Claims It was moved by Commissioner Hietala, seconded by Commissioner Krauss, 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 Hietala, Commissioner Krauss, Commissioner Youngman, and Mayor Cetraro; those voting No, none. Public comment No public comment was received under this agenda item. Public hearina - application for HOME Qrant on behalf of Accessible Space. Inc.. for 18~unit independent living facility for persons with disabilities 03-01-04 ...__u____ -4- This was the time and place set for the public hearing on submittal of an application for a HOME grant on behalf of Accessible Space, Inc., for an 18-unit independent living facility for persons with disabilities. Included in the Commissioners' packets was a copy of Commission Resolution No. 3659, entitled: COMMISSION RESOLUTION NO. 3659 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, AUTHORIZING SUBMITTAL OF AN APPLICATION TO THE MONTANA DEPARTMENT OF COMMERCE FOR A HOME INVESTMENT PARTNERSHIP PROGRAM (HOME) GRANT ON BEHALF OF ACCESSIBLE SPACE, INC (ASI). Mayor Cetraro opened the public hearing. Caren Roberty, representing the Community Affordable Housing Advisory Board, reviewed this application, saying this request is for a HOME grant on behalf of Accessible Space, Inc.; and the Board has given its approval for this application. No one else in the city is applying for this grant. Dan Billmark, real estate development manager for Accessible Space, Inc., reviewed the project, noting they plan to construct a 100 percent barrier-free, 3-story building, designed for persons with severe mobility impairments. There will be 14 one-bedroom apartments and four two-bedroom units, which will be adaptable for wheelchairs. This project came about in early 2003 when the Sparrow Group asked them to add special housing elements to Bridger Peaks Village. On December 1,2003, Accessible Space, Inc., was awarded a HUD Section 811 grant, and they are now moving forward with the architectural design. Accessible Space, Inc., is a national non-profit organization, who has had more than 100 of these applications approved. The $500,000 HOME grant will provide supplemental funds to complete development funding for this project. Commissioner Krauss asked if the funds are dispersed directly to Accessible Space, Inc. Mr. Billmark responded the funds go to the State and are distributed at the time of the HUD initial closing. Typically supplemental funds are the first ones used on a project of this type, and these funds will be used for site acquisition and development. Jeff Rupp, Human Resource Development Council (HRDC), said he was here to offer support ofthis application and to remind the Commission that HRDC is also submitting a HOME grant application to purchase 14 lots in River Rock, Belgrade, for Habitat for Humanity. He urged the Commission to write a letter of support for HRDC's grant application. Since there were no Commissioner objections, Mayor Cetraro closed the public hearing. Commissioner Krauss questioned if a 3-story building would be allowed in this location, and Planning Director Epple assured him it would be an allowable height. It was moved by Commissioner Krauss, seconded by Commissioner Youngman, that Commission Resolution No. 3659, authorizing submittal of the HOME grant application on behalf of Accessible Space, Inc., be adopted. 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. Continued public hearina - Conditional Use Permit with Certificate of Appropriateness - allow construction of restaurant with on-premise consumption of alcoholic beveraaes on Tract A-2. COS No. 1827 - Locati Architects representina Arrowhead Development for Grace France lOutback Steakhouse. 2247 East Vallev Center Road) lZ-03298) This was the time and place set for the continued public hearing on the Conditional Use Permit with Certificate of Appropriateness, as requested by Locati Architects representing Arrowhead Development for Grace France under Application No 2-03298, to allow the construction of an Outback Steakhouse restaurant with on-premise consumption of alcoholic beverages at 2247 East Valley Center Road. 03-01-04  --..--.-.------- ____.______._..._.__...__..u.__..__... _.__ ....___...__._... ___.__._____.__..u .._._ __ - 5 - Mayor Cetraro opened the continued public hearing. Associate Planner Morris presented the staff report, noting one additional condition of approval has been added. 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. The subject property is zoned B-2 and lies within two class I entry-way corridors. The Development Review Committee recommends conditional approval, while the Design Review Board recommends denial of this project based on franchise-style architecture. The Design Review Board did not forward any conditions, only their recommendation for denial. No public comment has been received. Responding to Commissioner Youngman, Associate Planner Morris noted only one condition, number 15, was added by staff. The Design Review Board did support all conditions of approval. Design Review Board concerns were addressed in condition 4, outdoor seating, condition 7 was modified slightly, condition 5, principal entrance landscaping, remains unchanged, a nd condition 2, n eon I ighting, was discussed by the Design Review Board. Mr. Livingston, Design Review Board, doesn't believe the addition of brick facade is sufficient to change this building from a franchise design. Staff believes that with the conditions, including number 15, as outlined in the staff report, they can work with the applicant to meet the design objective guidelines for entryway corridors. Dan Fillinger, restaurant owner, stated they have been working on this project for over a year; and this will be one of the most unique Outback Steakhouse buildings in the country. This design has gone through numerous changes from the beginning of the project review until now to comply with City of Bozeman design standards. The additional roof cost for this building will be considerable. Mr. Fillinger noted the current Duck's Lounge will be closed as this one opens, and that space will be converted back to office space. Since they began working on this project over this past year, they have received overwhelming community support; there has been no negative comments regarding an Outback Steakhouse coming to Bozeman. Eric Boswell, Locati Architects, said they have worked with the Outback Steakhouse franchise and have transformed this building from the standard franchise look by using more natural materials, natural timbers, and a weathered copper roof. They have worked with the Design Review Board and believe this is a good design based on the Design Review Board's suggestions. They have included an extensive patio and provisions for outdoor seating. They have also worked with the Design Review Board on landscaping and have met all City requirements for landscaping. The roof forms have exaggerated roof gables and a covered walkway because the majority of the parking is in the back. Cliff Jones, principal owner of Evergreen Restaurant Group, noted this is a very community oriented franchise, who sets aside a portion of the profits every year to be used in the community for schools and charities. Outback Steakhouse is the most successful restaurant company in the world, and they have bent more for this restaurant than any other throughout the world, at considerable cost. Because of design standards required by the City, this is now a considerably different design; one that doesn't resemble any other Outback Steakhouse. The parent company believes this is a great design. Commissioner Youngman said she is bothered that the Design Review Board is unanimously uncomfortable with the design; but she is mindful staff believes that with the conditions of approval, they can create a design that will meet entry corridor guidelines. While the parent company has come a long way relative to its design standards, they have not done so for Bozeman design standards. Commissioner Krauss said that while he doesn't dislike franchises, there are high design standards in Bozeman; and he is committed to upholding those standards. He is also uncomfortable with the Design Review Board's recommendation for denial. While he will reluctantly support this application, he will not support too many projects that have a recommendation for denial from the Design Review Board. He wants to see conditions imposed that lead to better designs. Since there were no Commissioner objections, Mayor Cetraro closed the public hearing. It was moved by Commissioner Youngman, seconded by Commissioner Hietala, that the Conditional Use Permit with Certificate of Appropriateness, as requested by Locati Architects representing Arrowhead Development for Grace France under Application No 2-03298, to allow the construction of an Outback 03-01-04 ------------------------- --.-----..-........---.... -.-....."'........ - 6- Steakhouse restaurant with on-premise consumption of alcoholic beverages at 2247 East Valley Center Road, be approved subject to the following conditions: 1. The applicant shall provide a common signage plan that addresses both wall- mounted and free standing signs, dimensions and area, colors, illumination, materials, type of lettering, and method of installation, that the common signage plan demonstrate a unified plan that exhibit qualities of style, permanence and compatibility with the natural and built environment, that the signs provide a level of relief, and that said wall-mounted signage not be constructed of fiberglass or internally illuminated cabinets, for review and approval by ADR staff prior to final site plan approval. 2. If neon lighting is installed then it shall be installed as an indirect architectural feature that provides a subtle surface lighting effect on the soffit and facade of the wall, and a typical detail shall be provided on the site plan for review and approval by ADR staff. 3. The applicant shall describe on the final site plan the pedestrian crosswalks within the interior of the off-street parking lot as scored concrete, pavers, or raised concrete, and not painted striping. 4. An outdoor seating area shall be provided. The applicant shall provide elevations of the patio area, typical landscape furniture and landscape features within the patio area, as well as treatment of the patio surface, for review and approval prior to final site plan approval. 5. The main vehicular entrance into the site contain areas of expansive low profile landscape features that emphasize the importance ofthe natural landscape and how it plays a major role in the form and character of the community. The landscape plan shall be revised to demonstrate seasonal color and seasonal change as an important feature in visually softening the principal entrance (both pedestrian and vehicular) and large expansive paved areas, as well as continuity with landscape along the building facade, for review and approval prior to final site plan approval. 6. The color palette and materials board shall be submitted with the final site plan for review and approval by ADR Staff. 7. The applicant shall delineate on the exterior elevations the placement and location of all roof-top mounted mechanical, exhaust, and air exchange equipment, and that the top of all roof-top mechanical equipment shall be below the top of the building's roofline and physically screened from adjoining properties and streets, for review and approval prior to final site plan approval. 8. A copy of the Department of Revenue License and the City of Bozeman liquor license for 2247 East Valley Center Road shall be submitted to the Planning Office prior to a Certificate of Occupancy being issued. 9. The final plat for "Cape-France" Minor Subdivision shall be submitted and approved by the City of Bozeman prior to final site plan approval. 10. A Certificate of Occupancy will not be granted until improvements to Valley Center Road and North 19th Avenue are completed as identified in the construction plans for the roadway. 11. A copy of the shared access easement shall be submitted to the Planning Office for review and approval prior to final site plan approval. The location of the easements shall be noted on the site plan. 12. The applicant is advised that the final site plan will not be reviewed until the plans for the Valley Center Road improvements project have been approved by Montana 03-01-04 ....-.-.-- ..-.-..------.-..----- -----.--..-..-......- - 7 - Department of Transportation and the City of Bozeman. No building permits will be issued until the Valley Center Road construction contract is awarded. 13. The applicant is advised that if construction of the proposed development conflicts with Valley Center Road construction, the development's construction activity shall be suspended at the City's or Montana Department of Transportation's discretion. 14. The driveways and curb and gutter adjacent to Valley Center Road, shown on the final site plan, shall match the Valley Center Road construction plans. 15. The final site plan shall include a redesign of the building elevations to include a distinct roof form and pitch in addition to the mansard roof, for review and approval by ADR staff. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Youngman, Commissioner Hietala, Commissioner Krauss, and Mayor Cetraro; those voting No, none. Presentation from selection committee re selection of consultant for enaineerina and architectural services for parkina structure Included in the Commissioners' packets was a memo from Superintendent of Facilities and Lands Goehrung, dated February 25, 2004, forwarding the selection committee's recommendation. Acting City Manager Brey provided a brief overview of the process of issuing the request for proposals, noting four proposals were received. Following review and ranking by the selection committee, the field was narrowed to two firms and both were interviewed. The selection committee is now ready to forward its recommendation of Prugh and Lenon Architects to the Commission. If negotiations are successful and an acceptable price is agreed upon, a contract will be brought before the Commission for its approval. If a contract cannot be negotiated, talks with that firm will be discontinued; and the selection committee will begin negotiations with the other firm. Superintendent of Facilities and Lands Goehrung distributed to the Commission minutes of the selection committee meetings of February 19, 2004 and January 27, 2004, as well as copies of the consultant selection procedure used to make their recommendation. Commissioner Hietala inquired about the price of this project, and Superintendent Goehrung replied the costs will be determined based on the scope of services. There are 14 items included in the scope of services that the committee will ask the firm to respond to, and each of those services will have costs associated with them. Commissioner Krauss asked if a resolution was passed regarding the City's intent to sell revenue bonds. Acting City Manager Brey responded the Commission directed those items to be prepared last July, but they never were. He suggested the Commission might want to see what the projected costs of this project are, so SID and revenue bond amounts can be pinned down before getting bids on this project. Commissioner Krauss asked if there have been public hearings held to decide the location of the proposed parking structure. Acting City Manager Brey stated the Commission approved the conceptual project of Mr. Clotfelter's that indicated this location for the parking garage, and the Parking Commission has endorsed this location. The City currently owns two-thirds of this property, and the other third lends itself to a structure of this size. Superintendent Goehrung added the Parking Commission has had numerous conversations regarding a parking structure, and this location has almost always been discussed. This area has the largest footprint to begin to build off of. Ileana Indreland, 101 East Main Street and Downtown Business Improvement District Board member, stated she supports everyone's hard work; but she feels this project got started off on the wrong foot by not involving the public enough. She believes this parking structure must, first and foremost, stand on its own merits and must benefit the entire downtown, otherwise the best interests of the downtown are being compromised. She asked the Commission to pause and consider the public as a whole before making a decision. 03-01-04 _ _ .. __.__. ..______...__.m._____________..__._ . - - -- -.....-.-.-.---.--.----..---...-----.. - 8- Chris Pope, chair of the Parking Commission, stated they are a five-member advisory board; and since the first meeting, they have discussed long-range facility planning. However, it is difficult to determine what the community needs when and how much. Two public hearings were held on this issue, specific to the request for proposals; and in June, 2003 they were directed to investigate the feasibility of a parking garage located on North Tracy Avenue and East Mendenhall Street following the presentation by Mr. Clotfelter and his team. This is the 0 nly lot a vailable that will allow enough ramping toe apture the efficiencies needed to make this structure fiscally responsible. The Parking Commission asked the Commission to go forward with this process only as long as there was significant enough analysis done to insure the fundamentals are in place. They are open to all ideas as to how this community can go forward and build the City Center project without creating hardships, while keeping the center of this community vital. This is an important topic to be discussed during public dialog, and the Parking Commission is very open to having an open, public, procedural process. Public hearings have been held in the past, and there will be future public hearings because this project requires significant public input. The Parking Commission is not interested in building a financial "white elephant". Responding to Commissioner Krauss' inquiry if the Parking Commission needs any information that City staff could provide, Mr. Pope noted the City could provide the baseline analysis for them. The public hearings will have a lot to do with how this structure is built. It is possible this parking structure could be used by downtown employees during the day; and during the evening, it could provide parking for the performing arts center, if it is constructed. Commissioner Hietala questioned if there should be an intermediate step in this process; having an independent marketing firm analyze the need for a parking structure before getting too committed to an architectural firm and spending upwards of $500,000 in architectural fees. Mr. Pope agreed that information would be valuable sooner rather than later; but the Parking Commission feels the request for proposals is where they need to focus right now, and then go forward from there by rolling everything into the request for proposals. Commissioner Krauss thanked Mr. Pope and the Parking Commission for all their hard work over the years. He pointed out there are no provisions for a feasibility study or any of those kinds of things included in the request for proposals; so if they are added in now, it will be changing the request for proposals. Mr. Pope replied they believe the conceptual work needs to be done at the front end of this process; and they feel marketing, community outreach, and surveying the public, downtown employees, and customers is all part of the process of moving forward. He has spoken with numerous communities who have gone out and hired a consultant to provide them with parking capacity numbers, but the Parking Commission already knows downtown parking is at approximately 75 percent capacity over the course of an entire year. The Parking Commission will do whatever the Commission directs them to do, but they believe the City should take advantage of this opportunity. It will be more advantageous than having an open-ended marketing plan that just sits on a shelf. Commissioner Hietala stated he believes communities have moved away from the old approach and are focusing on building partnerships. The tax increment financing money is a huge carrot, and he believes the City needs to have a master plan for the redevelopment of the downtown and use the tax increment financing money as the carrot to entice those to come in and bid. He said he sees a performing arts center downtown as doubtful for bearing fruit for many years; but there is potential for the Ellen theater, with Sylvesters next door, and the Rialto theater across the street to form the nucleus of a performing arts center. Mr. Pope said the Parking Commission has identified itself as an element in the revitalization of the downtown, and they would encourage the Commission to weigh in on this request for proposals and load up on the identified issues. Michael Delaney, 101 East Main Street, distributed copies of a letter he wrote to the Commission regarding the process utilized thus far for the proposed parking structure. He characterized the process as being flawed and suggested the Commission should stop this process now and start over because this has been an unfair process. Commissioner Youngman stated Mr. Delaney's remarks are utterly incorrect; this was a very public and fair process. The selection committee knew the recommendation of Prugh and Lenon Architects would be held up as a "stacked deck", but that isn't remotely the case. This was a legitimate, fair process with open meetings that anyone could attend; and the decision was made unanimously and openly based on selection criteria which serve the public interest. All the things people have been wanting will be happening in the next step, which is intense public comment and to communicate clearly with the community what will 03-01-04 .-----.--- - 9 - happen next. The Commission is committed to being diligent and will take the time to put some specifics, based on Commission input this evening and public input, into the scope of services. Superintendent of Facilities and Lands Goehrung stated he would not spend time defending the process the selection committee went through to forward this recommendation. They narrowed the field to two firms to interview, and each firm had four interview questions to respond to, as laid out in the January 27th selection committee minutes. Both firms were equally qualified, but based on the results of their presentations and answers submitted, one firm rose to the top. That firm did the best job of addressing the four interview questions given to them before the interview; and their strengths include their timeframe, cost estimates, the way their laid out the public participation component for the scope of services, how they would assist the City in creation of the special improvement district, and the parking consultant team they brought in for their presentation. These are the criteria that were evaluated in this process of forwarding a recommendation to the Commission. Community involvement and community participation will help shape the design of this parking structure. Commissioner Hietala reiterated he still is not sure he's ready to commit to a $500,000 process to design a parking garage, and he believes it is premature to be jumping into this. If, and when, the City has one of the components of the downtown development project committed that would guarantee utilization of a parking garage and would further enable the City to locate the ideal place for that parking garage, he would be more inclined to be supportive. Just because the City owns the property at the corner of North Tracy Avenue and East Mendenhall Street, doesn't mean it's the most well suited place for the garage. Commissioner Hietala said he doesn't believe the City should be "pursuing a shot in the dark" unless it has specific plans to go by that will help pay for the garage. Commissioner Youngman stated that communities around the country that have committed to the economic development of their downtown have recognized that at some point they need to take a step forward for development. At some point if the community doesn't commit to the downtown, other things will also fait off. Commissioner Krauss said he doesn't see a parking consultant report, and he is not sure in reading the services to be provided that this parking consultant team has determined for certain that a parking garage is needed. He expressed his willingness to take some risks to make the downtown better, but somehow the City has committed itself and an architect before it is known for sure the community has to . have a parking garage. That is the missing piece in his mind, and the City can't consider this parking structure in the larger scope of a downtown hotel and performing arts center because there is no guarantee that will ever happen. Commissioner Hietala agreed with Commissioner Krauss, saying he is not interested in a "shot in the dark", and that's where the City is heading if all it's doing is building a parking garage because there isn't a parking problem in downtown Bozeman. Commissioner Krauss said he would be more comfortable if there were something in the scope of services that included a parking consultant's determination of need, but the request for proposals cannot be changed. Two architectural firms and the City have already spent a lot of time and money on this, so he'll consent; but he feels staff and the architecture firm need to recognize this is a huge gray area, with a lot of ambivalence by the Commission. Commissioner Krauss stated, however, that under no circumstances will he commit the City to building a parking garage; and if that's what the Commission is doing by recommending Prugh and Lenon Architects, he is not ready to do that right now. Commissioner Youngman said the Commission needs to act before it's years before anything happens and the downtown deteriorates beyond rejuvenation. She agreed the Commission needs to resolve the concerns, but she doesn't want to prevent them from being resolved in a timely manner. Commissioner Krauss said if the city needs a parking garage in five years and there is something that says that, it would be foolish to not go forward at this time; but there isn't, so it would be foolish to do this now. Acting City Manager Brey noted that four or five years from now is the point in time the garage would have been built by tax increment financing, and these issues would have arisen at that time. He said he doesn't believe there is any other information available other than the 1990 and 1998 transportation plans and the MAKERS plan parking assessments. All those show parking capacity is diminishing. 03-01-04 ----- - ..---------.----.----- ._...____.._._. ..on_. .._.._.__.... no _____._._._...._._ ._.__. ___....__... - 10 - Commissioner Youngman noted the Commissioners all supported putting out the request for proposals; and if they were feeling it was premature, they shouldn't have advertised. It concerns her the City might not have advertised in good faith. Commissioner Krauss said he believes the Commission can direct the negotiations and talk about what they need to do to add parking consulting to this scope of services. However, some of the testimony does speak to him and tells him the City was premature in asking engineering and architecture firms to come forward. He suggested it would be nice to have a summary of the parking studies as part of the scope of services, and maybe that will be sufficient to meet everyone's comfort level. Acting City Manager Brey suggested the Commission direct staff to proceed with the contract negotiations with Prugh and Lenon Architects, and staff will provide the Commission with a concise overview of the parking studies and will also provide a list of tasks that can be included within the request for proposals. Or the Commission could wait because if this project doesn't reflect the downtown's interests, the SID will not be supported by the property owners and the plan will be aborted. The City is asking the chosen firm for assistance in the creation of an SID and acquisition of the property. Commissioner Krauss said an appraisal is needed as a part of the scope of services for the properties that will need to be attained. He is open to buying, selling, leasing, or moving recommendations; he doesn't want to pre-suppose a site. Commissioner Krauss reiterated he wants the appraisal of properties involved included in the scope of services. He also wants the summary of the previous parking studies and evaluating studies included to determine if the architect needs to recommend more consulting. Also to be included in the scope of services is neighborhood impacts to the north and south. The firm will need to work closely with those neighborhoods to come up with something acceptable. Commissioner Krauss noted the creation of an SID can be done in a dozen different ways, and the firm will need to work with the affected property owners to find an equitable balance. Acting City Manager Brey responded a parking SID has six mandatory variables that have to be weighed by the Commission, and depending on how those are weighted, it will move the obligation around. Commissioner Krauss stated he will be expecting those weights to be included in the scope of services, surrounded by intensive community input. It was moved by Commissioner Krauss, seconded by Commissioner Youngman, that the Commission endorse the committee's selection of Prugh and Lenon Architects as the consultant for the parking structure and authorize and direct staff to enter into contract negotiations that include the items identified in the above discussions in the scope of services. 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. Commissioner Krauss stated he is not committing to building a parking garage with this motion; he is just committing to leaving it on the table. The Commissioners agreed they want staff to provide the Commission with a concise overview of the parking studies next week. Break 9:05.9:15 pm Mayor Cetraro declared a break from 9:05 pm until 9: 15 pm in accordance with Commission policy. Commission Resolution No. 3660 . revisina deed restrictions for sale of the Bozeman Armory Included in the Commissioners' packets was a copy of Commission Resolution No. 3660, entitled: 03-01-04 -----..------ - "..-...-.-.-.---- --.-..".-.-.-...-..-.... - 11 - COMMISSION RESOLUTION NO. 3660 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, REVISING THE DEED RESTRICTION REQUIRED FOR SALE OF THE BOZEMAN ARMORY. Acting City Manager Brey noted Resolutions Number 3660 and 3661 are tightly tied. The resolution passed by the Commission to sell the armory contained the requirement that a deed restriction be placed on the property that sets its use as a performing arts center in the downtown, with a timeline of 18 months. That timeline was unacceptable to the lender, so the timeline contained in this resolution has been reduced to six months. The buyer is part of the Arts at City Center group, and the City has looked at the sale of the property to that group. Ileana Indreland, 101 East Main Street, stated she had a buyer who was interested in buying this property, who was told this property was going to public auction, but it didn't. She feels this is a very dangerous precedent for the City to be setting; buying property on behalf of a private individual. Ms. Indreland recommended the Commission deny the change in the deed restriction; and if that is not acceptable to these buyers, the property be put up for sale on the fair marketplace. Michael Delaney, 101 East Main Street, expressed his displeasure with the process for acquiring and selling the Bozeman Armory. Commissioner Krauss stated he is not amending this deed restriction because he wants to respond to the potential buyer's loan restrictions; he said he just wants to sell this property. The City is not the appropriate owner of the armory, and he wants to sell it to someone who wants to do something with it to complement the downtown area. It was moved by Commissioner Hietala, seconded by Commissioner Krauss, that the Commission adopt Commission Resolution No. 3660, revising the deed restriction for sale of the Bozeman Armory. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Hietala, Commissioner Krauss, Commissioner Youngman, and Mayor Cetraro; those voting No, none. Commission Resolution No. 3661 - authorizina sale of the Bozeman Armorv. 24 West Mendenhall Street Included in the Commissioners' packets was a draft copy of Commission Resolution No. 3661, entitled: COMMISSION RESOLUTION NO. 3661 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, AUTHORIZING SALE OF THE BOZEMAN ARMORY. Distributed just prior to the meeting was a revised Resolution No. 3661. Acting City Manager Brey reviewed the revised resolution, which lists the name of the entity who will be acquiring this property. This is a direct sale to the performing arts group, which meets the objective of the City acquiring property as an intermediary for the public benefit. This sale allows the City to entirely recoup its money. This sale requires a super-majority vote of the Commission or four votes. Michael Delaney, 101 East Main Street, suggested this property should go up for public auction to ensure the City of Bozeman they are going to receive the highest bid possible and to ensure the community's interest is served. Commissioner Youngman responded the City has been up front with this transaction with both the State and the community. Prior to this meeting, there were no letters of opposition received on this. Commissioner Krauss suggested the Commission could postpone this action for a week to see if there is another offer over $815,000, since they just took an action that could potentially change the market value of the property. However, the City does have a "bird in the hand". 03-01-04 ------ ----------.-- -.......- - 12 - It was moved by Commissioner Youngman, seconded by Commissioner Hietala, that the Commission adopt Commission Resolution No. 3661, authorizing sale of the Bozeman Armory to Libster Building, LLC, and Nygard Family LLC, or assigns, be adopted. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Youngman, Commissioner Hietala, Commissioner Krauss, and Mayor Cetraro; those voting No, none. Discussion re possible remodelina of second floor of Professional Buildina. 20 East Olive Street. for City offices Included in the Commissioners' packets was a memo from Superintendent of Facilities and Lands Goehrung, dated February 26,2004, forwarding information on the estimated costs for this project. Superintendent of Facilities and Lands Goehrung reviewed his memo, which summarized the Professional Building tour conducted for the Commission on February 17, 2004 and provided ideas for what the City is trying to do with the second floor remodel of that building. Superintendent Goehrung said he felt the initial estimate was a little low, so he went back to the engineer to get a full estimate for mechanical work for the entire second floor. The latest figure submitted by the engineer is $232,036, which totals $361,096 for the second floor remodel, which isn't a firm price until it goes out to bid. The initial estimate was $220,000. Commissioner Krauss asked if there are any alternatives to this plan. Superintendent Goehrung said the City is looking at the kind of work environment it wants to provide for its employees. This is probably the only opportunity to remodel the second floor without a tenant. Commissioner Hietala said he believes the City should remodel the building, and do it now because the City is losing money since it isn't receiving rent revenues. He asked if this was a budgeted item. Superintendent Goehrung stated there has been discussion of remodeling the second floor for several years, but what is pushing this remodel now is that the primary tenant is moving out. Commissioner Hietala stated the Commission should be looking at the Capital Improvements Program (CIP) priority list; and see what can be put off, rather than cramming in another unbudgeted project. Acting City Manager Brey stated this remodel started out as a small, unbudgeted project; and it has grown and grown. Now it has grown significantly, and he would like to request that the Commission delay action on this for a week or two to line out exactly how this will affect the CIP and general fund budgets. The City needs to fully utilize this building, but these costs are nowhere near where they were projected to be. Commissioner Hietala agreed the City is getting over extended with all the change orders on CIP items. He suggested an easy way to handle this is to postpone the items at the end of the CIP priority list. Commissioner Krauss asked what the total amount would be, including all improvements. Superintendent Goehrung answered the total is $361,096, which doesn't include furniture. Including the furnishings, the total project cost would be approximately $441,000. Acting City Manager Brey suggested bringing this project back for Commission consideration in a week or two, and staff will look for anything that can be pulled out. The Building Department will pay for 70 percent of this project; but the remaining 30 percent will come from the general fund, which can't shoulder this expense. Commissioner Krauss suggested the City might look at spending the Building Department's money and moving the rest of the project expense into next year's budget. It was moved by Commissioner Krauss, seconded by Commissioner Youngman, that the decision on this item be tabled to the March 15, 2004 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. Appointments to boards and commissions: (a) Board of A ppeals: (b) Bozeman Area Bicvcle Advisory Board: (c) Desian Review Board (architectural historian): (d) Downtown Business Improvement District (BID) Board: (e) Recreation and Parks Advisory Board (student rep): (f) Senior Citizens' Advisory Board: and (a) Wetlands Review Board 03-01-04 ----..- - 13 - Included in the Commissioners' packets was a memo from Deputy Clerk of the Commission DeLathower, dated February 26, forwarding applications for the various boards and commissions. Downtown Business Improvement District (BID) Board. It was moved by Commissioner Hietala, seconded by Commissioner Krauss, that Ray Erickson be appointed to the Downtown Business Improvement District Board, with an initial term to expire on June 30, 2006, that Thomas Nygard be appointed with an initial term to expire on June 30,2007, and that Mike Hope be appointed to replace Bert Hopeman with an initial term to expire on June 30, 2006. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Hietala, Commissioner Krauss, Commissioner Youngman, and Mayor Cetraro; those voting No, none. Wetlands Review Board. It was moved by Commissioner Krauss, seconded by Commissioner Youngman, that Cyndi Crayton be appointed to the Wetlands Review Board. 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. Mayor Cetraro requested that all City Boards provide the Commission with a memo of their mission, goals, and vision for the future because a good number of the Board members don't seem to know their duties, mission, or goals. Discussion - FYI Items The following "For Your Information" items were forwarded to the Commission. (1 ) Letter of resignation from the Downtown Bozeman Improvement District Board (lOB), submitted by Thomas Nygard, dated January 26, 2004. (2) Memo from Gallatin County Clerk and Recorder Shelley Vance, dated February 20, forwarding information on the upcoming local government review process. (3) Note from Kerry Hanson, 210 East Granite Avenue, forwarding a copy of a courtesy ticket she had received in Missoula during the Christmas holidays. (4) Letter dated February 20 and e-mail dated February 24 from Tom and Sandy Ferch expressing opposition to being required to install sidewalks in New Hyalite View Subdivision. (5) Copy of a letterfrom Engineering Assistant Andy Kerr, dated February 24, to property owners along a portion of West Babcock Street between South 5th Avenue and South 8th Avenue announcing a change in parking restrictions. (6) Letterfrom the Montana Department of Environmental Quality, dated February 26, regarding funding for the Gallatin River Outstanding Resource Water environmental impact statement. (7) E-mail from Kathy Hansen urging the City to not commit funding to a parking structure in the downtown. (8) Letter from Philip Saccoccia, Jr., forwarding a copy of the Addendum to the Agreement to Sell and Purchase for the Bridger Peaks Village affordable housing project. (9) Memo from Engineering Assistant Andy Kerr, dated February 10, forwarding the draft 2004 sidewalk priority list. (10) Copy of the summary from the booklet entitled Understanding Electricity in Montana, dated December 2002, as submitted by Acting City Manager Ron Brey. (11 ) February 25, 2004, updated list of planning projects to be considered at upcoming Commission meetings. (12) Agenda for the County Commission meeting to be held at 9:00 am on Tuesday, March 2, at the Courthouse. 03-01-04 ----.---------.---- ------- - 14 - (13) Agenda and revised agenda for the Zoning Commission meeting to be held at 7:00 pm and agenda and revised agenda for the City Planning Board meeting to be held at 7:30 pm on Tuesday, March 2, in the Commission Room. (14) Agenda for the Development Review Committee meeting to be held at 10:00 am on Tuesday, March 2, in the Professional Building Conference Room. Acting City Manager Brey offered the following FYI items: 1) He included in the Commission packet the Department of Environmental Quality pamphlet entitled Understanding Electricity in Montana to give the Commissioners some sense of the complexity of the issue being grappled with by the six cities who are meeting regarding provision of electrical and gas services in Montana with Northwestern Energy's impending bankruptcy. When this issue comes forward needing Commission action, it is going to need action quickly and abruptly. Representatives from the six cities met last week and will meet again next week to get a plan boiled down to the final stages. They grappled with governance models last week. There are six cities of different sizes deciding how they'll come together as a governing body over the power authority. In addition, there are a number of rural customers who might opt to join into this, and they would need a role in governance. The discussion was once any kind of aggregation of other entities gain 10 percent, they will have a seat at the table. The six cities doing the preliminary work will have a seat at the table with weighting proportional to population. It is possible that when an aggregation of the other entities comes to the table, they could have greater weight than Bozeman does. It is expected the surrounding areas in Gallatiin County are likely to join up with the City of Bozeman. A multi-tiered decision-making model is being proposed, and the first objective would be a consensus model; the second is a weighted model. There is veto authority; voting among the original six cities at one vote per city. Next week the group will meet with bond counsel and the same feasibility consultant that was used for MEGA. Northwestern Energy has advised they will meet the deadline to file their bankruptcy plan. If this plan goes forward as being discussed at present, the members believe this plan will be given consideration by the courts because it is a revenue bond and, therefore, a cash offer, which has some weight. 2) It is time for the local government review again, and staff needs to be directed by the Commission to bring back a call for election resolution in time to have it to Shelley Vance, Gallatin County Clerk and Recorder, by March 25, 2004. The Commission also needs to determine how many people will serve on the study commission in the event the voters vote in favor of the study. City Attorney Luwe noted the following during his FYI: 1) He will be gone for the next two weeks, and Staff Attorney Cooper will cover next week's meeting. The March 15th meeting will be covered by Staff Attorney Day-Moore. Director of Public Service Arkell offered the following FYI item: 1) Four special improvement districts (SID) have been created for improvements to North 19th Avenue and Valley Center Road. One SID would widen North 19th Avenue to five lanes from Baxter Lane to Valley Center Road. A separate SID would pay for improvements to Valley Center Road from North 19th Avenue to North 27th Avenue. Another SID would pay for signalization at Deadman's Gulch and North 19th Avenue. The final SID will pay for the signal at Valley Center Road and North 19th Avenue. If one SID fails, they all fail except for the signal at Deadman's Gulch and North 19th Avenue. The final estimate is over $4,000,000, plus engineering costs. The project is pretty basic; no curb and gutter, but there will be a landscaped center median, which raises the costs. The impact fee budgeted amount will pay for half and SIDs will pay for half. However, if the courts rule impact fees are invalid, the City would have to pay that money back. Another option is to create an SID for the full amount, using a combination of assessments and impact fees to redeem those bonds. Everyone will be assessed based on square footage, which is the common assessment for an SID. A public meeting was held in early January and all property owners were invited so they could see how much their assessments would be before they come to the public hearing before the Commission. Responding to Commissioner Krauss' question as to what is driving these improvements, Director of Public Service Arkell noted it is the number of trips per day on this section of North 19th Avenue and the amount of growth occurring. These improvements are capacity and safety related. Urban funds are not being used to pay for this project; they are being saved for improvements to South 19th Avenue. Commissioner Hietala asked if these businesses can challenge this financing procedure in court. The Director responded if more than 50 percent of the businesses protest the creation of an SID, it cannot legally be created. However, 75 percent of the property owners have signed waivers of right to protest for improvements to Valley Center Road, and 85 percent have signed waivers for the signalization of Deadman's Gulch. The signal at Valley Center Road and North 19th Avenue is the only one that could 03-01-04 - 15 - legally be protested. City Attorney Luwe added the property owners can protest the assessment or the size of the area, but they don't have any legal basis to kill an SID. They can, however, protest to the Commission and the Commission can kill the SID. Commissioner Krauss clarified that new developments proposed for Valley Center Road cannot be built without the SID. Director of Public Service Arkell acknowledged that is correct, unless a developer wanted to make the improvements without waiting for the City, which would be very costly. Commissioner Youngman, during her FYI, offered the following: 1) Suggested edits to the letter of support for the HOME grant application and the letter to Congressman Rehberg regarding funding for the transportation facility. All Commissioners agreed to the proposed edits. During his FYI Commissioner Krauss offered the following: 1) Asked if the City Attorney's office has come to any conclusion regarding giving rate payers a break based on their income. City Attorney Luwe responded that is pending in the Attorney General's office. Commissioner Krauss suggested using the Department of Revenue's guidelines for low income individuals and Disabled American Veterans to give breaks on garbage, sewer, and water breaks. Awarding rate breaks based on age is problematic for him. 2) He attended the Mayor's Academy with Mayor Cetraro, and they did come away with some ideas for streamlining the process and cutting the length of the Commission meetings. Mayor Cetraro offered the following FYI item: He attended the Mayor's Academywith Commissioner Krauss, and they came away with some procedures followed by other Mayors and Council members that make the process sound enjoyable. He will be meeting with Acting City Manager Brey and Clerk of the Commission Sullivan regarding changes to the agendas. Adiournment -10:35 pm 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; th voting No, none. ATTEST: ~.;I~ R BI L. SULLIVAN Clerk of the Commission PREPARED BY: ~~~~~ Deputy Clerk of the Commission 03-01-04 ------- -