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HomeMy WebLinkAbout1997-12-01 Minutes, City Commission MINUTES OF THE MEETING OF THE CITY COMMISSION BOZEMAN, MONTANA December 1, 1997 ***************************** . The Commission of the City of Bozeman met in regular session in the Commission Room, Municipal Building, Monday, December 1, 1997, at 3:00 p.m. Present were Mayor Stueck, Commissioner Rudberg, Commissioner Stiff, Commissioner Frost, Commissioner Youngman, City Manager Johnson, City Attorney Luwe and Deputy Clerk of the Commission Erlandson. 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. Minutes - November 10, 1997 It was moved by Commissioner Rudberg, seconded by Commissioner Stiff, that the . minutes of the meeting of November 10, 1997, be approved as submitted. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Rudberg, Commissioner Stiff, Commissioner Frost, Commissioner Youngman and Mayor Stueck; those voting No, none. Mayor Stueck deferred action on the minutes of the meetings of November 17 and November 24, 1997 to a later date. Request for deletion of Dortion of Condition No. 7 for aDDroval of preliminarv Dlat for Yellowstone Peaks Manufactured Home Park Subdivision (subdivide 6.15 acres into 35 mobile home lease SDaces and one site-built house) - Dennis and Joni Balian (P-9650) This was the time and place set for consideration of a deletion of a portion of Condition . No. 7 for approval of preliminary plat for Yellowstone Peaks Manufactured Home Park Subdivision. Assistant Planning Director Debbie Arkell gave the staff report, reminding the Commission that on January 3 they granted preliminary plat approval of this subdivision to create a mobile home park for 35 mobile home leased spaces, and one existing site-built home. The Assistant Planning Director noted the approval was subject to 21 conditions, and that 12-01-97 - - 2 - Condition No. 7 required the applicant to make improvements to West Mendenhall Street, within the subject property, to bring it to full City standard, including sidewalks on both sides, and also to construct West Mendenhall Street, from the east boundary of the property to the existing edge of pavement, to a minimum paved County standard. Outlining the pertinent area . on a wall map, the Assistant Planner located the 40-foot section of road, within a 60-foot easement owned by an adjoining property owner, between Western Drive and Sunlight Avenue, which is the area to be paved to create a through access between West Mendenhall Street and Western Drive. Assistant Planning Director Arkell stated that the subdivider is requesting that the 40 feet of paving be deleted from Condition NO.7. The Assistant Planning Director stated that the 60-foot road easement lines up with the dedicated West Mendenhall Street to the east. She noted that, at the time the subdivision was reviewed, a second access was needed and this connection appeared to be the most feasible access due to the existing 60-foot road easement. The Planner said, however, that when the subdivider began to prepare the section of road that was to be paved, the property owner expressed his opposition to this work, stating the connection of West Mendenhall Street . to the pavement on his property would touch what has become a parking lot. She said staff has also been advised that the easement shown on a Certificate of Survey is not dedicated to the public. Assistant Planning Director Arkell stated that, since the preliminary approval of this subdivision, the Wheeler Mobile Home Park subdivision to the west has been completed, and that West Mendenhall Street is completed to City standard as far west as Michael Grove Avenue, thus satisfying the requirement for a secondary access. The Planner noted three possible options were considered by the Planning Board at the public hearing on November 17, as outlined in the staff report. She said two members of the public spoke at that meeting to express concern about traffic safety in the general area, and the need for east/west . connections through the City to relieve safety problems occurring on West Durston Road and West Babcock Street. The Planner noted the adjoining property owner, Mr. Bob Heidecker, also spoke at that hearing in favor of deleting the requirement for the off-site improvements, contending that an extension of West Mendenhall Street through his property would create safety hazards for his tenants, and that the 60-foot easement depicted on the Certificate of Survey is intended for the sole use of his property. Assistant Planning Director Arkell said that, 12-01-97 ----..-------- - - 3 - based on the information received at the public hearing, the Planning Board recommended on a vote of 9 to 0 that the second paragraph of Condition NO.7 be deleted and further, that the City Commission initiate the acquisition and/or condemnation process as soon as possible to obtain the right-of-way necessary to connect West Mendenhall Street to the east, since it is . critical for east-west traffic, especially pedestrian traffic. Responding to the Mayor, City Attorney Paul Luwe said that, if the Commission wishes to deal with the acquisition or condemnation process, it should direct his office to do so. He further advised that the Commission will need to know the cost of such procedures. Mr. Dennis Balian, applicant, said he had a Certificate of Survey prepared, and had seen the easement on the adjacent property. He said, however, that upon beginning the road work, he was told by Mr. Heidecker, via a Sheriff's Deputy, that the easement possibly was not valid and he may be trespassing, whereupon he immediately left the property. It was moved by Commissioner Stiff, seconded by Commissioner Frost, that the Commission approve the request for revision of Condition No.7 for approval of preliminary plat for Yellowstone Peaks Manufactured Home Park Subdivision, applied for by Dennis and Joni . Balian under Application No. P-9650, and allow the subdivision of 6.15 acres into 35 mobile home lease spaces and one site-built house, with Condition NO.7 to read as follows: West Mendenhall Street within the subject property shall be constructed to a full City standard including curb and gutter, sidewalks and storm drainage facilities. A street section design will be required to be submitted to and approved by the City Engineering Department for West Mendenhall Street. Side-walks shall be installed on both sides of West Mendenhall Street at the time the street is constructed. Any private drive approaches to West Mendenhall Street shall be constructed in accordance with the City's standard approach, i.e., concrete apron, side- walk section, and drop-curb, with approaches being a minimum of 8 feet from the subdivision property lines. A note shall be placed on the final plat indicating that there shall be no direct access to West Babcock Street from Lot 36. and direct to staff to initiate the acquisition and/or condemnation process to obtain the right-of- . way necessary to connect Mendenhall to Western Drive. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Stiff, Commissioner Frost, Commissioner Youngman, Commissioner Rudberg and Mayor Stueck; those voting No, none. 12-01-97 ...---. ...... _.u_u__.__ _.. u.._ ....__...__n_._ - 4 - Authorize City Manaaer to sian - Annexation Agreement with Xl limited PartnershiD - 160:t acres located in the NWY4 . Section 2. T2S. R5E. MPM (between West Oak Street extended and Baxter lane. immediately west of Rose Park) City Manager Johnson reminded the Commission that this item was previously on the agenda for November 17, 1997, and was continued until today. He stated the City . administration has received this document back as requested. It was moved by Commissioner Frost, seconded by Commissioner Youngman, that the Commission authorize the City Manager to sign the Annexation Agreement with Xl Limited Partnership, to annex 160:f::: acres located in the Northwest Quarter of Section Two, Township Two South, Range Five East, Montana Principal Meridian, more commonly located between West Oak Street extended and Baxter Lane, immediately west of Rose Park. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Frost, Commissioner Youngman, Commissioner Rudberg, Commissioner Stiff and Mayor Stueck; those voting No, none. Commission Resolution No. 3216 - annexina 160 + acres located in the NWY4. Section 2. T2S. . R5E. MPM (between West Oak Street extended and Baxter lane. immediately west of. Rose Park) Included in the Commissioners' packets was a copy of Commission Resolution No. 3216, as approved by the City Attorney, entitled: COMMISSION RESOLUTION NO. 3216 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, EXTENDING THE BOUNDARIES OF SAID CITY OF BOZEMAN SO AS TO INCLUDE WITHIN THE CORPORATE LIMITS OF THE CITY OF BOZEMAN TRACT OF LAND CONTIGUOUS TO SAID CITY, TO BE KNOWN AS THE BAXTER LANE ANNEXATION (AND FORMERLY REFERRED TO AS THE XL LIMITED PARTNERSHIP ANNEXATION REQUEST) AND HEREIN MORE PARTICULARL Y DESCRIBED. It was moved by Commissioner Youngman, seconded by Commissioner Rudberg, that the Commission adopt Commission Resolution No. 3216, annexing 160:t acres located . between West Oak Street extended and Baxter Lane, immediately west of Rose Park. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Youngman, Commissioner Rudberg, Commissioner Stiff, Commissioner Frost and Mayor Stueck; those voting No, none. 12-01-97 - 5 - Authorize City Manaaer to sian - Annexation Aareement with Gatewav Limited Partners - 148.05 acres located in the SEY-. Section 2. T2S. R5E. MPM. exceDtina the W%. W%. NWY-. SWY-. and the W%. W%. SW%. SW% (alona the north side of Durston Road. immediatelv west of Annie Subdivision) City Manager Johnson reminded the Commission that this item was on the agenda for November 17, 1997 and was continued until today. He stated that the City administration has . received this document back as requested. It was moved by Commissioner Rudberg, seconded by Commissioner Stiff, that the Commission authorize the City Manager to sign the Annexation Agreement with Gateway Limited Partners, annexing 148.05 acres located in the Southeast Quarter of Section Two, Township Two South, Range Five East, Montana Principal Meridian, more commonly located along the north side of Durston Road, immediately west of Annie Subdivision. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Rudberg, Commissioner Stiff, Commissioner Frost, Commissioner Youngman and Mayor Stueck; those voting No, none. . Commission Resolution No. 3217 - annexina 148.05 acres located in the SE%. Section 2. T2S. R5E. MPM. exceDtina the W%. W%. NW%. SW%. and the W%. W%. SW%. SWY- along the north side of Durston Road. immediatelv west of Annie Subdivision) Included in the Commissioners' packets was a copy of Commission Resolution No. 3217, as approved by the City Attorney, entitled: COMMISSION RESOLUTION NO. 3217 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, EXTENDING THE BOUNDARIES OF SAID CITY OF BOZEMAN SO AS TO INCLUDE WITHIN THE CORPORATE LIMITS OF THE CITY OF BOZEMAN TRACT OF LAND CONTIGUOUS TO SAID CITY, TO BE KNOWN AS THE WEST OAK STREET ANNEXATION (AND FORMERLY REFERRED TO AS THE GATEWAY LIMITED PARTNERS ANNEXATION REQUEST) AND HEREIN MORE PARTICULARLY DESCRIBED. It was moved by Commissioner Stiff, seconded by Commissioner Frost, that the Commission adopt Commission Resolution No. 3217, annexing 148.05 acres located in the . Southeast Quarter of Section Two, Township Two South, Range Five East, Montana Principal Meridian, more commonly located along the north side of Durston Road, immediately west of Annie Subdivision. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Stiff, Commissioner Frost, Commissioner Youngman, Commissioner Rudberg and Mayor Stueck; those voting No, none. 12-01-97 ---....- -..- -----.-----------.----.---.---..-. ..-. - 6 - Discussion re Dossible budaet amendments City Manager Clark Johnson stated the Commission placed this item on the agenda for additional consideration. He noted that, historically, the City Manager has given consent to departments to exceed appropriations, and then requested permission to approve an . amendment for those appropriations with the mid-year third or fourth quarter budget review. The City Manager stated that, in June of this year, preliminary budget discussions examined the need for additional police patrol cars and replacement detective vehicles. He said that, traditionally, police patrol cars have been handed down for detective use and out of town travel. The City Manager stated that, after the condition of such cars becomes unacceptable for emergency response and travel beyond city limits, they are handed down for use by other departments, and they are, at this point, unreliable and expensive to maintain. He said that, when a high mileage car is used for out-of-town travel, breakdown costs can include employee overtime, towing, repair and, in some cases, a second employee and vehicle for retrieval. City Manager Johnson stated it is his policy and practice to sell these well-used vehicles before they become a liability versus an asset to the City. He noted that two Police . Department vehicles have been sold at public auction since July, the market value of one being $600. The City Manager forwarded the information that, as of October 31, the Police Department has expended 45 percent of its repair budget on these hand-me-down cars. He noted the capital improvements program will remedy this situation, but that it is his belief it will never catch up without some additional resources. He said staff believes, as they did in June and July, that the City could support the additional budget authorization by purchasing the requested detective cars with unanticipated revenues from the beer tax and freed up General Fund monies. The City Manager cautioned, however, that this allocation cannot be viewed in a vacuum. He noted that, in August, a City-owned vehicle was destroyed in an accident and that . the City received $3,800 in compensation, while a replacement vehicle, one suited for use as an emergency response vehicle, will cost in excess of $40,000. The City Manager said that, because of the sale of a piece of unused fire apparatus, the City could contribute $13,800 towards the purchase, leaving a $20,000 shortfall. He stated that, in light of the $22 million of capital improvements needed for water and sewer lines, street maintenance, repairs in carrying capacities, old equipment replacements, water and wastewater capacity 12-01-97 ------------- -- --- - -- _._._____.___n ---..----.----- - 7 - improvements, it is difficult to know where to begin. He emphasized public safety and emergency response are, however, on top of the list, which is consistent with Commission priority that the Police and Fire Departments be properly and adequately equipped. In response to Mayor Stueck, Administrative Services Director Miral Gamradt said there . are two sources of funding possible, one being the beer tax of about $55,000 which has not yet been assigned, and the second being around $160,000 in General Fund monies, freed up as a result of transferring street costs to the Street Maintenance District. Further responding to the Mayor, the Administrative Services Director stated there are no other proposed budget adjustments. Police Chief Mark Tymrak clarified the term "detective" cars, stating they are unmarked police cars, vehicles designed for emergency response, either by the Police administration or the Detective Division. In response to Commissioner Rudberg, the Police Chief said the cars being sought are to be used for a multitude of purposes, both in and out of town and that they are used constantly. . Responding to Mayor Stueck, Police Chief Tymrak stated these proposed cars are about two-thirds the cost of a regular patrol car. He noted that, in the last budget session, $15,000 was approved for the purchase of one unmarked vehicle, yet to be purchased, and that this is the amount he expects will be needed for each of these new vehicles. The Police Chief stated that, with the wear and tear on his 1990 Ford Taurus, its recent auction price was only $625. In response to Commissioner Youngman, City Manager Johnson said these two cars are in the CIP for the budget cycle for 1999. Responding to Commissioner Youngman's concerns that a decision today to buy these cars may not leave monies for planning needs, City Manager Johnson referred to the $165,000 in street maintenance monies that were freed up since budget decisions were made, and the . beer tax monies. The City Manager noted he has already authorized unbudgeted money for more telephones for the Carnegie Building, which will require a budget amendment in January. He said the administration is now beginning next year's budgeting process, and reminded the Commissioners that these police cars have already been discussed several times. Commissioner Rudberg reminded the Commission that this community voted to not support the police training school here in Bozeman, necessitating its relocation to Helena. She 12-01-97 - 8 - stated that, when 45 percent of the Police Department repair budget has been used, the travel back and forth to Helena places an additional burden on the Police Department. She noted this has nothing to do with growth, but a lot to do with having to be on the road to Helena and the wear and tear on police vehicles. The Commissioner forwarded her concern that an officer's . life can potentially be in jeopardy when transporting an individual in an unreliable vehicle. Commissioner Stiff noted his dislike for dealing with capital improvements at this time of year. He said, however, that this is a crisis situation and it is his feeling the Commission should be flexible enough to deal with it at this time. Commissioner Frost concurred with Commissioner Stiff's comments, and stated his understanding of the need for the new vehicles. He said that, in the recent budget process, he noted several safety issues that need to be addressed. For that reason, he said it is difficult to make a decision at this time, and that there will be a lot of crises in the coming years as the City attempts to catch up. Commissioner Frost forwarded his appreciation of the City Manager's recommendation, and said he will vote for it. Mayor Stueck reminded the Commissioners that he was in support of the cars during . the budget process, however, the Commission had been careful to make sure everyone was treated fairly. He stated his concern is for officer safety, noting this is a high priority. He said that, since it is not an on-going item, it would be appropriate to fund the police cars from the beer tax monies. City Manager Johnson clarified that the wrecked car belonged to the Fire Department, not the Police Department, but that every car in the City's fleet is a hand-me-down, with the exception of the new patrol car. Responding to Mayor Stueck, Police Chief Tymrak said that, when a patrol vehicle becomes an unmarked unit, it typically has 75,000 to 85,000 miles on the odometer. In response to Mayor Stueck, the City Manager said any motion for a budget . amendment will require a dollar figure. It was moved by Commissioner Frost, seconded by Commissioner Youngman, that the Commission approve a $32,000 budget amendment for two unmarked police cars. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Frost, Commissioner Youngman, Commissioner Rudberg, Commissioner Stiff and Mayor Stueck; those voting No, none. 12-01-97 -------... ---.------ --..---------.., ---.,.-.---..----------- . - 9 - Ordinance No. 1451 - amending Sections 3.24.050. 3.24.060. 3.24.070 and 3.24.080 of the Bozeman Municipal Code bv increasing the percentage at which street and impact fees. fire imDact fees. water imDact fees and wastewater imDact fees are assessed to 100 Dercent Included in the Commissioners packets was a copy of Ordinance No. 1451, as approved by the City Attorney, entitled: . ORDINANCE NO. 1451 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, PROVIDING THAT THE BOZEMAN MUNICIPAL CODE BE AMENDED BY REVISING SECTIONS 3.24.050, 3.24.060, 3.24.070 AND 3.24.080; PROVIDING FOR REVISIONS TO THE PERCENTAGES AT WHICH STREET IMPACT FEES, FIRE PROTECTION IMPACT FEES, WATER IMPACT FEES AND WASTEWATER IMPACT FEES ARE ASSESSED. City Manager Johnson noted this ordinance appears at the request of the majority of Commissioners, stating that the assessment language reflects 100 percent of the fees in the consultant's studies. He said that determining the costs associated with community growth is the subject of current research, and that Bozeman is a test site for one of the most promising GIS models today. He further noted that, in addition to impact fees, staff is paying close attention to annexation agreement requirements and subdivision reviews to minimize the impact . on taxpayers by ensuring that infrastructure needs in newly developed areas are paid for by those areas during their development. The City Manager stressed the urgency felt by staff due to the overused and failing condition of old infrastructure and old, worn equipment. He stated it is due to staff's extra effort and care over the past several years that they have been able to make it last one more year. The City Manager noted staff is committed to finding mechanisms to increase capacities and services. He noted impact fees free up existing monies to repair and maintain the existing system, and said that the City will know more about other models and cost programs in the spring of 1998. Mayor Stueck reminded the Commissioners that this issue was discussed two weeks ago, and that it was postponed from this past summer. He noted that, at that time, the . Commission chose to not change the amount of impact fees, pending the election. He stated his view that the public has spoken by electing candidates who favor full impact fees, and that the subject should now be reconsidered. The Mayor noted that, under this ordinance, the impact fees raise to 100 percent of the fees recommended by Duncan & Associates in March 1996. He cited his discussions with people in the building community, which showed him they 12-01-97 ------- ----- - --- -- -- --- - ---- - 10 - expect this raise. Kevin Click, 514 North Montana Avenue, President of the Southwest Montana Building Industry Association, said the subject of affordable housing is part of their mission statement, quoting from it: "We are concerned professionals, working with pride and integrity . to provide the American dream of housing for all." He noted that any added cost to a home is, and will be, passed on to a consumer, putting the reality of housing that much further from the reach of many people. Mr. Click cited the decline in school population in Bozeman versus the increase of school populations in Belgrade and Manhattan, as reflective of the lack of affordable housing in Bozeman. Mr. Click said another issue is planning, with the potential of impact fees pushing growth into the "donut" area being very high, thus eliminating the City's ability to affect the planning of this growth. He said focus groups, such as Gallatin Valley Tomorrow, back up the need to maintain growth within the sphere of Bozeman proper, in order to maintain the beauty that has attracted us all here. He noted, moreover, the elimination of potential jobs as impact fees discourage businesses from coming to Bozeman, citing the fact that Costco paid . approximately $130,000 in impact fees; and if those impact fees were at 100 percent, Costco would have paid somewhere around $350,000, which would have been enough for them to question where they wanted to build. Mr. Click concluded by saying his association will be looking to the City for proof of these costs, where they come from, and where they go. David Smith, Executive Director of the Bozeman Area Chamber of Commerce, referred to the study on the fiscal impact of different land uses in Gallatin County that was often cited during the election. He noted that the study made numerous references to the differences between industrial/commercial, residential and open space land uses, and that the land use ratio for every dollar collected in property tax was $1.45 spent for residential services, 25 cents for agriculture and open space, 7 cents for industrial, and 18 cents for commercial. Mr. Smith recognized that this probably is not a factual basis for looking at this issue, because the issues . within the City of Bozeman were not addressed, but feels it is a good ratio, and that it would be beneficial to look at the residential/commercial taxpayer difference within Bozeman. Mr. Smith referred to the MSU BioScience Research Center and the hospital expansion, noting that the MSU project will pay its impact fees with State dollars, while the hospital impact fees will come from donations and higher insurance premiums. He stated his belief that the Costeo 12-01-97 ---.. ----.. .-------- -----... .-----. _______ __n.__._._..___..__ ... - 11 - impact fees were probably closer to $200,000, while the business also made substantial off- site improvements to Valley Center Road and funded a traffic signal for around $250,000, which is on the City's master plan for transportation improvements; and their annual property tax payments will be about $80,000. Mr. Smith forwarded his opinion that this is an example . of growth paying its way. Mr. Smith referred to the upcoming public hearing on raises in water and sewer rates, and the recent "creatively raised" tree maintenance and street light districts. He said Bozeman needs a plan, and that, despite what a consultant tells us we need, we must live within our means. He suggested putting together a citizens' improvement committee, noting he had forwarded this request to the previous City Manager over a year ago. The Executive Director cited the value of citizen influence, and ways that group could have positive, proactive suggestions for growth. Ms. Dixie Swenson, Gallatin Development Corporation, echoed Mr. Smith's comments, noting that most of the businesses with which the Corporation deals are manufacturing or technology businesses, and they have a number of locational choices, both in other communities and other states, and inside and outside the City of Bozeman. She stated that . cost is always an issue, whether the business is a start up or in expansion, and that these provide the jobs that everyone tells the Corporation are needed. Ms. Swenson said her main concern is the inequity between what is inside the City and what is just outside it, and stated that, as both a taxpayer and a member of the Corporation, she would like to see the increased job base within the City. She said that, given a choice of significantly reduced costs, people will locate outside the City and that, while there are some incentives for locating inside the City, they will not make up the difference in cost. Ms. Swenson concluded by urging the Commissioners to review this issue really carefully. Ms. Cecilia Reiner, President of the Gallatin Association of Realtors, said it is a professional organization of about 320 local realtors. She noted she is also a member of the . Montana Association of Realtors, comprising 2600 realtors within Montana, and that she was recently appointed to a special taxation task force which works with the Legislature on property tax issues. Ms. Reiner said her organization is very concerned about the issue of impact fees, stating that many of the realtors present today provided input when impact fees were studied by Duncan & Associates. She said her organization was opposed to impact fees then and continues to be opposed today and in the future. 12-01-97 - 12 - Ms. Reiner said she is here to speak on behalf of homeowners because realtors are privy to their abilities, their future desires, their hopes and dreams. She mentioned many clients who are offered a job in Bozeman but who cannot find housing and choose not to come. She spoke of the American dream of owning a house, and how the Commission has the ability . to demolish that dream for many. Ms. Reiner quoted the figure given by the Gallatin Development Corporation for the average gross wage in the Gallatin Valley as being $19,800, stating that such a wage earner can afford a house costing $67,000. In checking her multiple listing book, Ms. Reiner said she found one home in the Bozeman area that that wage earner could purchase. She said that, if two wage earners are combined, they can afford a $130,000 home, but that many families have only one wage earner. Ms. Swenson said a common scenario is a family which can just afford a $105,000 home, but which then finds only 12 houses to choose from in that range. The realtor noted that any new taxes will mean that this family cannot afford that home and will be renters, not homeowners. Ms. Reiner stated local realtors work with many in the building industry who are sincerely trying to build a good, quality product in an affordable price range, but that any extra . costs must go to the consumer. She emphasized that raised impact fees will strike a blow to builders, the real estate community, and everyone in related businesses, but most particularly the home buyer. Mr. Jeff Reising, 909 Ward Place, Belgrade, said he is a custom contractor and that he has noted a lot of the houses being built are not for newcomers, but for children of long- time residents. He said a raise in impact fees will hurt them a lot, and that the Commission needs to look at compromises and alternative sources of funding. Mr. Reising said he hates to see the City shoot itself in the foot by losing, even for short term gains, the property taxes of all those people living in the donut area. He said it is his experience that people will not choose to build where they have to pay an extra $5,000 in fees when they have an option. . He encouraged the Commission to look at long term versus short term income for the City. Mr. Gary Burrell, realtor, said he is committee chairman of the Local Issues Committee for the Gallatin Association of Realtors, and that he knows a lot about what makes people buy or not buy housing. He commented it is his opinion the term "affordable housing" is overused, and that he would rather say we should have housing for our residents. He said he is hearing from his committee, and the Board of Realtors, that people will not come to, or stay in, this 12-01-97 - 13 - area because the homes are not here. Mr. Burrell said there must be a way to have steady growth that is acceptable to the business community and a good quality of life. Mr. Burrell submitted a 30-year amortization schedule he has prepared which shows the cost to the homeowner for an added $6,000 bill on his mortgage payment will be $41 a month, noting the . average person cannot write a check for $6,000. He stated this is a total of $8,735 in increased interest, in addition to the $6,000, over 30 years. Mr. Burrell stressed that this extra $41 a month will make many people stay renters, not homeowners, or they will live in low-cost condominium projects. Mr. Burrell submitted a letter faxed to his office from Sandy Lee, 509 Kathy Lane, Belgrade, a member of the Board of Realtors. Mr. Burrell proceeded to read Ms. Lee's letter to the Commission, in which Ms. Lee stresses that what happens in Bozeman has an impact on Belgrade. She stated her concern that a raise in impact fees will create further urban sprawl and the possibility of more contaminated wells from septic systems. She forwarded her opinion that the cost of City sewer and water should be paid for by hook-up fees and by the revenues created by use, while new streets, sidewalks and lights can and should be funded by SIDs. . Ms. Lee requested a breakdown of what expenses will be covered with this additional revenue, and stated her willingness to help find a solution. Mr. Dale Gillespie, realtor, said he is the person who reviewed Mr. Duncan's report and found it extremely flat, noting the City is still keying the impact fee figures off those in the report. He stated he has not found a realtor who has been asked his opinion of what may happen if impact fees are raised. He recognized there is a lot of dislike for growth in the area, and stated it is not the realtors causing the housing problem, but supply and demand. He emphasized his long-standing belief that the city should expand to city limits, nqt out into the valley. Shaun Shahan, 127 Virginia Way, realtor, said his main concern is the lack of affordable housing, echoing the concerns of others who have spoken. He said he works with . other realtors and builders who are trying their utmost to give the single mother, the retired couple, the young couple, or the individual the home they can afford. Mr. Shahan stated this is becoming increasingly difficult, and impact fees will make owning a home an impossibility for many who are looking for only a 1300-square-foot home. He recognized that this is a huge problem and encouraged the Commissioners to take a good look at it and to look for solutions. 12-01-97 - 14 - Clair Daines, 45 West Kagy Boulevard, a builder/developer, said he is one of the four or five people who will be most directly affected by a raise in impact fees, since he produces a substantial number of residential units within the city limits. He said he believes the city is where development should occur, but he has lived here for over 30 years and has seen hillsides . turn from hills to subdivisions. Mr. Daines stated he has said for years that, if the City were practicing smart planning, it would find reasons to get people to build in town rather than out of it. He spoke of what he characterized as the "carriage trade", people who don't want to live in town and instead build large homes out in the coulees and big subdivisions, wondering if we are really impacting the middle, upper middle and wealthy people. Mr. Daines said he feels it is actually the renters who are barely getting by, those in HRDC type housing, and the young families with small children who want to walk to school. He further queried why that child who walks to school has a bigger impact on the roads than "all those big, yellow buses". Mr. Daines noted that a study of homes built in the past five or six years in the City and the County will show that one in four homes, or less, was built within city limits, stating that if impact fees are raised, there will be fewer and fewer homes built within city limits. . Mr. Daines commented on the new street taxes, noting he has three elderly people he has recently built for who cannot drive and don't have cars. He said he feels it unfair that they should have to pay this tax. Mr. Daines queried why Montana Power Company can build generating plants, make a return to their investors, and generally put in all their infrastructure at their expense and not the taxpayers'. Commissioner-elect Sandra Smiley stated that when she ran for the City Commission, she told people she was in favor of raising impact fees unless somebody could come up with something different. She said she concurred with Mr. Daines'comment that we should reconsider our rate structure, and with Ms. Lee's desire to know where the impact monies will go. Ms. Smiley encouraged the Commission to speak more with the County, stressing that . Bozeman does not exist in a vacuum, and that we all need to work together so that Bozeman does not raise taxes while the County does not. Ms. Smiley forwarded her desire for incremental increases in impact fees while looking at alternatives on a regular basis. Mayor Stueck addressed each of those persons who had spoken, stating that he agreed with everything they had said, and noting that he had been saying the same thing for over two years. The Mayor reminded them that the ice rink was built at Four Corners, instead of behind 12-01-97 --.-.- --...--.--. .. -...--...--.-- - ----- - 15 - the Holiday Inn as planned, and that it was doing well but no taxes were coming back to Bozeman. He emphasized that, having given the same facts to voters as have been expressed this evening, the taxpayers have said they are tired of subsidizing growth by their votes. The Mayor noted that the average taxpayer does not seem to realize the School District receives . the major portion of any tax dollars. He stressed the fact that he believes 100 percent impact fees will hurt the building community, the business community, the groundwater aquifer due to an increase in septic tanks, and encourage the proliferation of urban sprawl, but that, since the voters in Bozeman support 100 percent impact fees, he will vote that way. The Mayor stated that, if impact fees are raised to 100 percent, the Commission can review the subject at a later date. He noted that, while he questions the legality of impact fees, he has been assured by the City Attorney that they are defensible. Commissioner Stiff stated it is his opinion there are a lot of varying opinions about what recently happened at the polls. He concurred with Ms. Smiley in her statement that the city and county must work together, noting it is not in the best interests of the County for lots of developments to be pushed out of the city. Commissioner Stiff referred to paperwork from . Clair Daines' Westfield Subdivision, Phases 2 and 3, generated three years ago, noting that these two phases provided 56 units, 19 of which were for people moving into the community and 37 for those moving across town. He stated it is his opinion that industrial and commercial development will be hurt if the City continues to hammer away at impact fees. The Commissioner said he had spoken with the Planning Director to confirm exactly what is involved in the tax dollars. He stated David Smith said it best, that for each tax dollar, residential development demands $1.28 while industrial development demands 78 cents. He stated his belief that higher impact fees will force development out of the community and that the City should probably pay a bonus for development within the City. The Commissioner forwarded his opinion that everyone is for affordable housing and that many have personally written sizeable checks to help out, and he is not for increasing the impact fees on a house to . $7,000 a unit and then assessing the taxpayers to subsidize the affordable housing. He likened it to "making money in reverse". He cautioned the Commissioners to think through the subject very carefully, stating he thinks there is no place better to live, and the best part of his vacation is seeing the Bridgers once again. Commissioner Youngman stated she feels impact fees are ultimately necessary and 12-01-97 - 16 - most of her arguments have been given today. She said she feels it is more important to do this right, and that the Commission should wait for a recommendation from staff on phasing and timing of impact fee increases. The Commissioner said she feels it is premature and precipitous to suddenly implement 100 percent impact fees without professional guidance. . Commissioner Youngman asserted that during her campaign, she supported full impact fees, but that she always qualified it by indicating they should be carefully and gradually phased in through a well-thought-out plan so that businesses and developers can work them into their business planning in an orderly way. The Commissioner suggested that perhaps the way a subdivision is designed could be changed to have smaller lots and smaller homes which would cost the same with the higher impact fees but perhaps reduce the infrastructure costs. She stated her belief that there are lots of things that can be done. Commissioner Youngman said that, if the Commission wishes to do a phased part of the impact fees today, she will support that, but that she prefers to have a staff recommendation first. Commissioner Youngman distributed a memorandum listing input on impact fees from businesses and individuals in the community. She forwarded her belief that it is vital to have . a list of improvements to be funded by impact fees, in priority order, with cost estimates for both now and at the time they will happen; and when the improvements will be needed relative to growth, with more than one time frame included. Commissioner Youngman stated her support for a citizen annual review committee to assess this list, or a public process before the Commission, noting that it makes a big difference to public acceptance. Commissioner Youngman stated that, from the first discussion of impact fees, she has been pushing for some kind of funding to cover affordable housing. The Commissioner noted her respect for Commissioner Stiff's opinions but she said that, right now, taxpayers subsidize every house that is built in the valley. She said it is her opinion that, if there is a taxpayer subsidy for housing, the public would far rather target it to where it is crucially needed. She stated that the affordable housing that has been built has been built through the involvement, . almost entirely, of special non-profit organizations who have come before the Commission to request that impact fees be forgiven. Commission Youngman stated there are parts of the affordable housing policy which can be amended to make building more cost effective, noting that, if these changes are made at the same time as impact fees are considered, the process can be made to work better and be more affordable. 12-01-97 _....._u_______ - 17 - Commissioner Youngman voiced her strong support for working with the County and the developer/building community. She stated her support for research into doing impact fees in zones, and a surcharge for those areas of town where infrastructure is most expensive. The Commissioner forwarded her support for research into those areas that can best handle growth . and considering whether due process can encourage growth in those areas, thus lessening the cost to the community. She suggested the consideration of capping the amount of gambling revenue that goes into the general fund so that the City's dependency on this revenue source does not continue to increase. She stated this could be a possible source of money for covering impact fees, to be used for affordable housing or something else. The Commissioner also suggested beginning really early in 1998 to work on alternatives that will go to the Legislature, to the County, to other municipalities, and to other growing communities. Mayor Stueck clarified for the public that the City Commission does not have the authority to waive impact fees when requested to do so; in reality, he said the City is being asked to pay those fees. He further stated, in response to Ms. Smiley, that the County already charges 100 percent of allowable impact fees. . Commissioner Stiff stated that, in his conversation with the County this morning, the person he spoke to said there are a lot in inappropriate comments coming from the County. He said their feeling is that the present situation does not show good stewardship, nor is it a proper use of land, and that the County and City will both be a lot better off if we can coordinate activities. Commissioner Frost said he fully supports impact fees but that a little time is needed for staff recommendation. He referred to a graph, submitted by staff, that showed what can be done with impact fees assessed as they are now, which is very little. The Commissioner said the amount is not enough to cover the costs of what needs to be done to the basic infrastructure, let alone any new infrastructure. He stated his concurrence with Commissioner Youngman, that there are several things that can be done, and that an important start is with . a better community design. The Commissioner said he has thought carefully through this subject for eight years, and all his research has shown that growth does not pay for itself. He forwarded his opinion that, even if impact fees were instituted at 100 percent, taxpayers would still continue subsidizing growth because not all of the City departments are funded by impact fees. He 12-01-97 --.-..-...--...------... .-. ---.-------.---.- .--".---.------ . - ------ _.._-_._---~_. .--..-- ..-.--.----.. - 18 - asked what affordable housing is, noting that not many people will live in an 11,000 square foot house. Commissioner Frost said it took him fourteen years to get into Bozeman, during which time he paid a lot of gas money, along with putting many more miles on his car than now. He said that adding $41 to his mortgage per month saved him $240 a month in gas, . which he thought was a good deal, but that even then he moved into only a 1,200-square-foot home. Commissioner Frost stated the City will get no help from the Legislature and that we will have to do this ourselves, as a community. The Commissioner said he will support only a small raise in impact fees right away, upon receipt of input from staff and citizens. He stated he has found no other option in all his research, but cited a town in Oregon where the city and county work well together because a state law and joint agreement spell out the parameters of each side. He said it is his understanding that the vast majority of new homes are still being built inside the city and wondered, if that should change, what the city is willing to pay to keep them in town. He forwarded his wish for a raise in impact fees, as soon as possible, with a priority list of needed capital improvements, along with costs and what can be done with the impact fee money. He . advocated looking at alternatives, such as smaller lots. The Commissioner stated Bozeman needs to continue growing, but in a way that will keep it a community rather than a Los Angeles. Commissioner Rudberg stated that she tends to agree with Mayor Stueck, particularly since a candidate who backed 100 percent impact fees was elected, reflecting that this is what the community wants. She noted her opinion that the voters are making a mistake with impact fees, but they should be allowed what they voted for. The Commissioner said she does not know why a staff recommendation is needed when a lot of money was spent on a consultant's advice, and our impact fees are based on his work. Commissioner Rudberg forwarded her opinion that many people have worked together on the subject of impact fees, but there has to be a resolution of the problem. She stated that those living on the older side of town are . paying only 30 percent of their fair share, while those on the other side of town pay 80 to 100 percent of their share. Commissioner Youngman stated that, if the Commission would like to entertain a phased impact fee increase now, rather than waiting until January, she is willing to do so. Commissioner Rudberg and Mayor Stueck agreed they are willing to vote only for 100 12-01-97 ..-- -.-.---- - 19 - percent impact fees. Mayor Stueck stated that, if phasing is to be considered, the Commission should act after Commissioner-elect Smiley is seated. He further noted he has one additional proposed change in the ordinance for consideration. He said that, at the present time, any individual business expanding up to 20 percent will not trigger impact fees, and he would like . to see that percentage raised to 30 percent. Commissioner Youngman concurred that this is a good idea, stating it is the most cost effective type of business growth, and should be brought up at a later date for discussion. The Commissioner stated that she feels staff input is valuable at different stages of any process, to recommend whether priorities are still on target and to suggest the proper order for implementation, even after a consultant has given his findings. Commissioner Rudberg noted that the consultant's report showed a basis for phased increases, and that these increases would go to 100 percent. Commissioner Frost stated his understanding that the consultant's job was to give the Commission the information it needed on the real cost of growth, and a number on which they could base impact fees on. He further stated that the consultant did not state when these fees . should be increased or decreased; this is the Commission's job, based on input from staff. In response to Commissioner Stiff, Associate Planner Saunders said the City is required to re-evaluate the status of impact fees every three years, following which the Commissioner said he does not believe it is a wise use of time and money to have staff do something that would be done as scheduled anyway. It was moved by Commissioner Rudberg that impact fees be abolished altogether. The motion died for lack of a second. It was moved by Commissioner Rudberg that Ordinance No. 1451, raising impact fees to 100 percent, be provisionally adopted and brought back in two weeks for final adoption. Mayor Stueck yielded the gavel to Mayor pro tempore Stiff and seconded the motion. The motion failed by the following Aye and No vote: those voting Aye being Commissioner . Rudberg and Commissioner Stueck; those voting No being Commissioner Frost, Commissioner Youngman and Mayor pro tempore Stiff. Mayor pro tempore Stiff returned the gavel to Mayor Stueck. Commissioner Frost requested that staff bring back a prioritized list of capital improvement projects, and where they are needed, together with the cost of each project. 12-01-97 ________.__._ _n___ - 20 - Associate Planner Chris Saunders said that an annual capital improvements program is prepared as part of the budget cycle, both for impact fees and all other future City needs. He said the next one should be ready for a preview on December 22. The Planner stated the three year evaluation time period is a maximum time frame, and is for review of all the . foundation information for impact fee assessments, so that fees charged are as close to the actual cost of service as possible. In response to City Manager Johnson, Associate Planner Saunders said the capital improvements part of the review will be available for the Commission to work on in early January. Planning Director Andy Epple noted that, through the Department of Environmental Quality and the Federal Department of Energy, there may be an opportunity for the Planning Board to obtain some software to do a more updated version of fiscal impact analysis for new annexations and subdivisions. He noted they have not yet been approved for that software, but that if it comes through and a pilot study is undertaken, they will prefer to have interested members of the development and environmental communities involved. . Renewal of Beer. Wine and Liauor Licenses for Calendar Year 1998 This was the time set for renewal of the Beer, Wine and Liquor Licenses for the Calendar Year 1998. A total of 47 applications have been received, along with the required fees. Included in the Commissioners' packets was a list of the establishments which have made application and paid the required fee, as follows: APPLICATIONS FOR BEER, WINE AND LlaUOR LICENSES CALENDAR YEAR 1998 APPLICANT BEER WINE LIQUOR TOTAL Albertson's Food Center #237 200 South 23rd $ 200 $ 200 $ $ 400 . American Legion 225 East Main Street 500 500 Anaconda Molly Brown Corp. 703 West Babcock Street 500 500 Baxter Hotel Corp. dba The Baxter, Rocky Mountain Pasta Co., 12-01-97 - 21 - The Bacchus Pub and The Robin Lounge 105 West Main Street 500 500 Bozeman Apple, Inc. dba Applebee's 1108 North 7th Avenue 500 500 . R & N Corporation at The Bozeman 321 East Main Street 500 500 Buttrey Food and Drug Company 2825 West Main Street 200 200 400 The Cannery Lounge 43 West Main Street 500 500 Casa Sanchez Restaurant 719 South 9th Avenue 200 200 400 Cats Paw, Inc. 721 North 7th Avenue 500 500 Community Food Co-op 908 West Main Street 200 200 400 Costco Wholesale 2502 Catron Street 200 200 400 . 5MB, Inc. dba Crossroads/Wine Merchant 27 East Main Street 200 200 B.p.a.Elks 463 106 East Babcock Street 500 500 The Filling Station, Inc. 2005 North Rouse Avenue 200 200 400 Montana Pizza, Inc. d ba Godfather's Pizza 200 South 23rd Avenue 200 200 GranTree Conoco 1325 North 7th Avenue 200 200 400 GranTree Lounge 1325 North 7th Avenue 500 500 Grape Expectations Wines & Deli . 27 South Willson Avenue 200 200 400 Haufbrau, Inc. 22 South 8th Avenue 500 500 JW's Hide-A-Way Lounge, Inc. 1631 West Main Street 500 500 Jackpot Casino 1801 West Main Street 200 200 400 12-01-97 _ ..._.__.._..'''..n __....______ __ __ ___ ...n .__ .. - - - .....__ _...___ _._n__._____.__.__.__ __n.._ - 22 - Jackpot Casino East 915 East Main Street 200 200 400 John Bozeman's Bistro 242 East Main Street 200 200 400 Kagy Korner, I nc. 1809 South Tracy Avenue 200 200 400 . KO's Club 1332 East Main Street 500 500 Kwik-Way, Inc. dba Kwik Way #32 401 East Peach Street 200 200 400 Lewis & Clark 824 West Main Street 200 200 400 Little John's Bar, Inc. 515 West Aspen Street 500 500 Gallatin Lounge Corp. dba Lucky Lil's Casino 2401 West Main Street 500 500 232 E. Main, Inc. dba The Pub at MacKenzie River Pizza 232 East Main Street 200 200 400 . Me and Jan's Mini Mart 919 West College Street 200 200 400 Me and Jan's II 621 West Main Street 200 200 400 Mini Mart, Inc. dba Mini Mart #728 71 7 West College Street 200 200 400 Mini Mart, Inc. dba Mini Mart #729 1910 West Main Street 200 200 400 American Drug Stores, Inc. d ba Osco 1525 West Main Street 200 200 400 ROI Enterprises, Inc. dba Pizza Hut . 2300 West Main Street 200 200 400 Safeway, Inc. #289 901 West Main Street 200 200 400 The Bay, Inc. dba Santa Fe Reds 1235 North 7th Avenue 500 500 12-01-97 ____ .n". ,.__ ._~- ......'.... ~ 23 ~ Scoop Bar 712 West Main Street 500 500 Spectator's Sports Bar and Grill 19 Tai Lane 500 500 The Store, Inc. 1 210 East Main Street 200 200 400 . Town & Country Foods 219 North 19th Avenue 200 200 400 Valley View Golf Club 302 East Kagy Boulevard 500 500 Van's IGA 912 North 7th Avenue 200 200 400 VFW Post No. 903 2005 North Rouse Avenue 500 500 Williams Pump & Pak, Inc. 2020 North 7th Avenue 200 200 400 Total ~ 47 Applications $ 5 .400 $ 5 .400 $ 9.500 $20.300 The City Manager recommended that the Commission approve the applications as submitted. . It was moved by Commissioner Youngman, seconded by Commissioner Rudberg, that the Commission approve the renewal of Beer, Wine and Liquor Licenses for Calendar Year 1998 for the various establishments as listed above. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Youngman, Commissioner Rudberg, Commissioner Stiff, Commissioner Frost and Mayor Stueck; those voting No, none. Discussion - FYI Items City Manager Johnson presented to the Commission the following "For Your Information" items. ( 1 ) Notice of cancellation of the Headwaters Cooperative Recycling Project's December meeting, and notification that the next meeting will be held on January 14. 1998 . in Bozeman. (2) Agenda for the Gallatin County Commission meeting, to be held at 1 :30 p.m. on Tuesday, December 2 in the Courthouse Community Room. (3) Agenda for the Development Review Committee meeting, to be held at 10:00 a.m. on Tuesday, December 2, in the Commission Room. 12~01 ~97 . --- .-- -.-- . . 24- (4) Agenda for the City-County Planning Board meeting, to be held at 7:00 p.m. on Tuesday, December 2, in the Commission Room. (5) City Manager Clark Johnson submitted his report as follows. (1) Referred to Item 14g. on the Consent Agenda, stating that the Montana Municipal Insurance Authority is . doing a study to provide property insurance for several cities as a group, with an eye to saving money. The City Manager noted that Bozeman's portion of this study is $2,000. (2) Noted the cancellation of the Wednesday meeting with MSU about their "green building", but stated that, due to a lot of public interest, MSU will visit with the Commission about it at their next work session. (3) Said he, Commissioner Rudberg and Mayor Stueck, will be in Helena at a meeting with the Montana Transportation Commission concerning the relocation of the rest area, in conjunction with the new Chamber of Commerce building at the corner of Baxter Lane and North 19th Avenue. The City Manager said the plan calls for the City to return federal dollars to the state in exchange for state dollars contributed for the construction of the building, noting the City is sending back three times as much money as they will get. He stated word came today that the Department of Transportation staff intends to not endorse the project, noting . that staff's conclusion is that the location of the rest area, three quarters of a mile from the interstate, is not conducive to use as a rest area. He forwarded his disappointment with this decision, and noted the strong public support that the group plans to present to the Highway Commission next Wednesday in the hope they will disagree with staff. City Manager Johnson noted other possible locations, but also stated the Chamber had had a good deal on the price of land at the corner of Baxter Lane and North 19th Avenue. (4) Noted the Commissioners are invited to a Christmas party at the Comfort Inn on Wednesday night. (6) The City Manager asked for procedural direction on an applicant's right to ask the Commission for a ruling on the denial of a loan administered through the Gallatin Development Corporation. . Mayor Stueck answered, and Commissioner Frost concurred, that he was not aware of it ever happening, but he did not see why it could not happen. Commissioner Youngman said she believes it reasonable that the Commission could make such a decision, as a place of last resort. Following discussion of confidentiality concerns, the City Manager noted that, if it is acceptable to the Commission to make a final decision on the matter, administration can 12-01-97 - 25 - determine the procedural steps. (7) City Attorney Paul Luwe said he has been busy writing a legal brief for the League of Cities and Towns, and has received an extension from the Montana Supreme Court until December 17th. He noted the brief concerns constitutional issues that will affect all cities . and towns, including Bozeman, specifically, on whether the Commission's decisions on executive or administrative or quasi-judicial issues are subject to the referendum process. He stated this is of interest to different communities in the state, should they decide to sell bonds, and that he will be glad to visit with anyone needing more information. (8) Commissioner Frost pointed out that today is World AIDs Day. (9) Commissioner Youngman distributed the Library's Annual Report, on behalf of the Library Director, noting the Director will be on the Commission agenda in the future to talk about it. (10) Commissioner Rudberg stated her concern about the article in the Chronicle concerning the City Manager's evaluation, noting her opinion that the headline was totally inappropriate, and that separating the Manager's evaluation from whatever concerns there are . on the Commission table is important. She said that, as Commissioner, she will never again support any employee's evaluation being done in public, and that the privilege was abused. The Commissioner noted she had gone through all the minutes from the past two years, and offered the fOllowing statistics: there were 502 Commission votes; of those votes, 411 were decided 5-0; 49 were decided 4-1; 24 votes were lost by the liberals, while the conservatives lost 14, and 4 were mixed between conservatives and liberals. The Commissioner said this leaves a total of ten votes lost by the liberals, which is probably one vote every two months. She stated her concern that the issue of Commission disagreement has been greatly exaggerated. (11 ) Commissioner Stiff stated that he, City Manager Johnson and Commissioner- elect Sandra Smiley had been meeting to determine what would be in Ms. Smiley's best . interests when she is seated on the Commission in January. He said that Ms. Smiley's service on the City-County Planning Board will stand her in good stead in her decision to be liaison on the City-County Health Board. ( 12) Commissioner-elect Smiley stated she will be part of a tour of City facilities on January 9, and that she will also be individually visiting with the different department heads. 12-01-97 ...---- --.------- __.___ _._ n - 26 - She stated her appreciation for the talks she has had with the City Manager and Commissioner Stiff. ( 13) Commissioner Stiff referred to the City Manager's salary package, noting that a majority of the Commissioners feel his salary should be amended according to the agreement. . He forwarded his concern that the current salary package is $1 7,400 below that of the previous City Manager's. The Commissioner stated his opinion that the figures mentioned were substantially too small and the job pay should be more in line with other City Manager salaries in the state. He said he concurred with Commissioner Rudberg in her statement about a public employee evaluation, noting he does not feel this process works. Commissioner Stiff forwarded his suggestion that, if all Commissioners are agreed, the City Attorney modify Section 6 of the employment agreement, which concerns the public evaluation. Commissioner Frost stated his opinion that the section should be reworded to give the City Manager a choice in the matter. Mayor Stueck apologized to the Commission, noting he had requested the Commissioners forward their suggestions for the agreement to the Clerk of the Commission, . but that he had forgotten how the City Manager's employment agreement was structured, and believed the original contract ended in June, not December. He noted a verbal agreement that the incoming City Manager would be paid at the salary the Acting City Manager was getting, with a possible raise following a satisfactory six-month evaluation. The Mayor apologized for not getting this written into the agreement. He noted conversations with City staff that showed a general feeling the City Manager is grossly underpaid. He suggested that, in rewording Section 6 of the Employment Agreement, the City Manager's contract be increased proportionately for the next six months, after which the new Commission can do their evaluation and either extend that contract or terminate it. He noted his hope for a salary range of $64,000 to $65,000 for the next six months, with further consideration at the end of June. Commissioner Stiff stated he is in agreement with this, if it is a unanimous Commission . vote. Responding to Commissioner Frost, the City Attorney said an agreement can always be modified if both parties are in agreement, noting the only thing that cannot be done is to lower the salary. Commissioner Rudberg stated she has a problem with not redoing the contract if a 12-01-97 - 27 - verbal agreement had been made, noting it is a matter of integrity. Commissioner Youngman noted she has not heard of the verbal agreement before, and she would appreciate a little time to think about it. Mayor Stueck agreed it could be decided on in two weeks' time and that, if the . decision is not unanimous, it will be deferred until June. Consent Items City Manager Johnson presented to the Commission the following Consent Items. Authorize City Manaaer to sign - Change Order No.2 for Highland Boulevard Bike & Pedestrian Path - JTL GrouD. Inc. - add $2.069.70 and 2 calendar days Authorize City Manaaer to sian - Annexation Aareement with Scenic Developers. Inc. - 21.644 acres located in the SE%. Section 14. T2S. R5E. MPM (northwest corner of intersection of South 19th Avenue and Kaay Boulevard extended) Commission Resolution No. 3218 - annexina 21.644 acres located in the SE%. Section 14. T2S. R5E. MPM (northwest corner of intersection of South 19th Avenue and Kagv Boulevard extended) . COMMISSION RESOLUTION NO. 3218 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, EXTENDING THE BOUNDARIES OF SAID CITY OF BOZEMAN SO AS TO INCLUDE WITHIN THE CORPORATE LIMITS OF THE CITY OF BOZEMAN TRACT OF LAND CONTIGUOUS TO SAID CITY, TO BE KNOWN AS THE KAGY CROSSROADS ANNEXATION (AND FORMERLY REFERRED TO AS THE SCENIC DEVELOPERS ANNEXATION REQUEST) AND HEREIN MORE PARTICULARL V DESCRIBED. Authorize City Manager to sign - Public Street and Utilities Easement - RalDh K. Aaker and Steven R. Aaker - 45-foot by 1.016.37-foot easement along northern boundary of DrODerty (for Kaay Boulevard west of South 19th Avenue) Ratify City Manaaer's signature - Agreement for Advancina Funds - Montana Municipal Insurance Authoritv - contribution to determining the feasibility of develoDing a DrODerty Droaram ADDoint Kathy Gallagher to the City-County Board of Health (as ioint City/County aDDointee) with term to eXDire on January 3. 2000 . Proclamation - "3D Prevention Month" - December 1997 Buildina InSDection Division reDort for October 1997 Claims It was moved by Commissioner Rudberg, seconded by Commissioner Stiff, that the Commission approve the Consent Items as listed, and authorize and direct the appropriate 12-01-97 -.--.--.,... - ----..------------- ......-- - 28 - persons to complete the necessary actions. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Rudberg, Commissioner Stiff, Commissioner Frost, Commissioner Youngman and Mayor Stueck; those voting No, none. . Recess - 5.50 D.m. Mayor Stueck declared a recess at 5:50 p.m., to reconvene at 7:00 p.m., for the purpose of conducting the scheduled public hearings. Reconvene - 7:00 D.m. Mayor Stueck reconvened the meeting at 7:00 p.m., for the purpose of conducting the scheduled public hearings. Public hearing - COA with deviations from Sections 18.50.160 and 18.50.060.C.. to allow renovation of existing garage. construction of a rear addition and installation of a full basement which encroach into reauired corner side yard setback on cortions of Lots 1-6. Block 18. Caeital Addition - Megan & Craig Kemet. 402 West Cleveland Street (Z-97166) . This was the time and place set for the public hearing on a Certificate of Appropriateness with deviations from Sections 18.50.160 and 18.50.060.C., requested by Megan & Craig Kempt under Application No. Z-97166, to allow the renovation of an existing garage, construction of a rear addition, and installation of a full basement which encroach into the required corner side yard setback on portions of Lots 1 through 6, Block 18, Capital Addition. The subject site is commonly known as 402 West Cleveland Street. Mayor Stueck opened the public hearing. Derek Strahn, Historic Preservation Officer, gave the staff report, noting that the proposed modifications are appropriate and acceptable within the context of this Bon Ton Historic District neighborhood. The Planner noted two deviations for the project, the first being from Section 18.50.160 "Nonconforming Uses and Structures", for the expansion of a . nonconforming garage structure, while the second is from Section 18.50.060.C. "Yard and Height Encroachments, Limitations, and Exceptions", to allow a portion of the new addition to encroach into the required corner side yard setback. He stated there were no neighborhood concerns, while one neighbor wrote in support of the project, and that staff recommends approval. 12-01-97 - 29 - The Historic Preservation Office stated that the Design Review Board, at its November 12 meeting, found the deviations justified in that the proposal is in keeping with the spirit of the Conservation Overlay District, and vote 6 to 0 to approve this application, with deviations per staff recommended conditions outlined in the DRB staff report. . No one was present to speak for or against the application. With no Commissioner objections, Mayor Stueck closed the public hearing. It was moved by Commissioner Stiff, seconded by Commissioner Frost, that the Commission approve the Certificate of Appropriateness with deviations from Sections 18.50.160 and 18.50.060.C., requested by Megan & Craig Kempt under Application No. Z- 97166, to allow the renovation of an existing garage, construction of a rear addition and installation of a full basement which encroach into the required corner side yard setback on portions of Lots 1 through 6, Block 18, Capital Addition, subject to the following conditions: 1. The applicant shall obtain a building permit within one year of Certificate of Appropriateness approval or this approval shall become null and void. 2. This project shall be constructed as approved and conditioned in the . Certificate of Appropriateness application. Any modifications to the submitted and approved drawings shall invalidate the project's approval unless the applicant submits the proposed modifications for review and approval by the Planning Office prior to undertaking said modifications, as required by Section 18.62.040 of the Bozeman Municipal Code. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Stiff, Commissioner Frost, Commissioner Youngman, Commissioner Rudberg and Mayor Stueck; those voting No, none. Public hearing - CUP with variances from Sections 18.20.050. to allow structure to encroach 6 feet into 20-foot rear yard setback. 18.50.120.K.. to allow two Darking SDaces to encroach into 25-foot front yard setback and 18.50.035.D.2.a.. to allow aarbage enclosure in 25-foot front yard setback on Lots 2 and 3. Block 1. West Babcock Subdivision - HRDC (for 52 North 24th Avenue) (Z-9744) This was the time and place set for the public hearing on a Conditional Use Permit with . variances from Sections 18.20.050, requested by Human Resources Development Council under Application No. Z-9744, to allow a structure to encroach 6 feet into the 20-foot rear yard setback; 18.50.120.K., to allow two parking spaces to encroach into the 25-foot front yard setback; and 18.50.035.D.2.a., to allow a garbage enclosure in a 25-foot front yard setback on Lots 2 and 3, Block 1, West Babcock Subdivision. The subject site is known as 52 North 12-01-97 .--.---.-.--- .- - 30 - 24th Avenue. Mayor Stueck opened the public hearing. Assistant Planner Jody Olsen gave the staff report, stating that this application is to allow the construction of a new structure of about 3,000 square feet, for use as a Head Start . school facility. The Planner said the subject site is zoned R-3, "Residential--Medium-density", which allows pre-schools as a conditional use. The Planner noted that the site is approximately 15,223 square feet in size, however, the applicant has worked out an arrangement with the Parks Advisory Board to allow some of the required site improvements to be installed on adjacent public parkland. Assistant Planner Olsen outlined the three variances requested. She then noted that the Design Review Board has reviewed this proposal against the CUP criteria and found that, with conditions and code requirements, the proposal will satisfy all the criteria, with the exception of one. The Planner stated this is the criterium which requires that the site for the proposed use is adequate in size and topography to accommodate said use. She stated that, while the site is large, the deeded lot is small, and that the site improvements must still comply . with the setback improvements for the deeded lots, hence the need for the variances. Planner Olsen stated that, following its public hearing, the Planning Board voted 8 to 1 to recommend conditional approval of this project. In response to City Attorney Luwe, the Assistant Planner said the site improvements in the park consist of landscaping and an outdoor play area with fence. She stated these are required, but that HRDC will provide additional landscaping and a trail, and they will also maintain the park. Further in response to the Attorney, the Planner said the fenced play area is not for the exclusive use of the school except during school hours, which are half days, Tuesday through Friday. She further stated the applicants have considered possibly providing some snow storage and landscaping in lieu of parking, noting that the State will allow this only if the . Recreation and Parks Advisory Board, as well as the Parks and Recreation Departments, agree to it. Jeff Rupp, Executive Director of HRDC, gave a brief history of the project, noting that they envisioned a two-story structure which, after discussion with neighbors, was lessened to one story to better blend with the neighborhood. He said this is where the footprint became 12-01-97 --. E""" ---- ---..-------..- - - 31 - bigger, triggering the need for variances. Mr. Rupp said HRDC is very comfortable with where the project is at, at this point, and thanked staff for their work and assistance. In response to the City Attorney, Mr. Rupp said the issue of using of the playground and park is being formalized through a use agreement between HRDC and the City of Bozeman . Recreation Department, after review by the Recreation and Parks Advisory Board. No one was present to speak either for or against this application. Commissioner Rudberg said she is glad to see Head Start finally has a home. She did say, however, she is concerned that perhaps someday HRDC will decide the only use for this property is for a child care center, noting there is a big difference between a non-profit group and a for-profit use that might like to totally take over the park area. She asked how this might be addressed in the event of a sale. In response, Mr. Rupp said HRDC has no plans to sell the property, but would have no objection to some restrictive language in the agreement in case of such an event. City Attorney Luwe said he had not been consulted about the proposed use of the park, and he does have some concerns about whether the City can do what is being proposed. He . stated that, under the law, parks can only be used so long as that use is consistent with the type of purpose for which the park is utilized. He said he would like to take some time to look at statute in order to render an opinion. The City Attorney said that, if the answer is yes, a use agreement or revocable permit needs to be in place, which states HRDC may use the parkland. The City Manager stated Assistant City Manager Brey has requested a recess to make the determination. Mayor Stueck announced a break at 7:15 p.m. and reconvened the meeting at 7:25 p.m. City Attorney said much depends on the motion, and that he can suggest additional language to modify Condition No.3, relating to the encroachment permit, which will give him time to ascertain the status of the property, and the best mechanism to arrive at a project . completion. He said that, if this cannot be done in accordance with statute, for some reason, it can be brought back for consideration. The Attorney suggested changing the term "encroachment permit" in the conditions to "revocable license or other document acceptable to the City". Again, he suggested the addition of an 'e.', being a hold harmless agreement, and any additional terms deemed applicable by the City, and an 'f.', which says that, in the event 12-01-97 ------------- ---- .. _.n .. _ .__.___._._ - --. ---- ...-. -.--- -------.--.... - 32 - an agreement cannot be entered into, this matter will come back to the City Commission for consideration. He advised that one of two things will happen: if the applicant cannot live with the terms, it will come back to the Commission for final consideration of those terms; or if there is a problem with the use being inconsistent with the park purposes, and the City cannot . enter into the agreement, again it will come back before the Commission. Mayor Stueck stated his concern that a hold harmless agreement relates only to CitYN owned property, but that HRDC will be using a part of such property. In response to the City Attorney, the Mayor said HRDC will maintain playground equipment on City-owned property. The City Attorney stated this will become a City liability for property maintenance. Since there were no Commissioner objections, Mayor Stueck closed the public hearing. Commissioner Frost stated he will abstain from the vote in order to avoid any perception of a conflict of interest. Mayor Stueck said it is common knowledge how badly such a facility is needed in the community. He reminded the Commissioners that a zoning variance requires four affirmative . votes for approval. It was moved by Commissioner Youngman, seconded by Commissioner Rudberg, that the Commission approve the Conditional Use Permit with variances from Sections 18.20.050, requested by HRDC for 52 North 24th Avenue under Application No. 2-9744. to allow a structure to encroach 6 feet into a 20-foot rear yard setback; 18.50.120.K., to allow two parking spaces to encroach into a 25-foot front yard setback; and 18.50.035.0.2.a., to allow a garbage enclosure in a 25-foot front yard setback on Lots 2 and 3, Block 1, West Babcock Subdivision, subject to the following conditions: 1. That the final site plan shall be submitted to the City Parks and Recreation Departments for review and approval prior to final site plan approval. This includes approval for utilization of the public park for snow removal and storage and for the provision of landscaping-in-lieu of parking. . 2. The final site plan shall show 350 square feet of landscaping for landscaping-inNlieu of parking. This landscaping shall be provided in the public right-of-way or yards directly facing the public right-of-way. This landscaping could be provided in the adjacent public park if the Parks Department approves it The landscaping-in-lieu shall be reviewed and approved by AOR staff prior to final site pan plan. 3. The applicant shall obtain a revocable license, or other document acceptable to the City, from the City of Bozeman to allow the 12-01-97 -.--.-.....-....----....- - 33 - provision of site improvements in the adjacent public park. This revocable license, or other document acceptable to the City, shall be issued prior to final site plan approval. The revocable license, or other document acceptable to the City, shall contain language addressing the following: a. Adequate trail/sidewalk accessibility to the public parkland shall be installed prior to use of the public . parkland for this proposal. b. Any fencing proposed in the public park shall be aesthetically pleasing. c. The improvements in the public park shall be arranged in a manner that will ensure accessibility by City maintenance vehicles. d. The portion of the public park that is improved and used by the HRDC Head Start Center shall be maintained by HRDC. e. A hold harmless agreement and any additional terms deemed applicable by the City. f. In the event that such agreement cannot be entered in, this matter will come back to the City Commission. 4. A fixture count shall be provided to ensure that the existing water . service stub is of sufficient size to supply domestic water to the building. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Youngman, Commissioner Rudberg, Commissioner Stiff and Mayor Stueck; those voting No, none. Commissioner Frost abstained. Adjournment - 7:35 D.m. There being no further business to come before the Commission at this time, it was moved by Commissioner Frost, seconded by Commissioner Youngman, that the meeting be adjourned. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Frost, Commissioner Youngman, Commissioner Rudberg, Commissioner Stiff and . Mayor Stueck; those voting No, none. 12-01-97 - 34 - ( ~z~~ . DON E. STUECK, Mayor . ATTEST: r5i~ R.f:r~. GILLIAN Z. ERLANDSON Deputy Clerk of the Commission . . 12-01 ~97 -..-------.------ .-------