Loading...
HomeMy WebLinkAbout1994-08-08 ccm MINUTES OF THE MEETING OF THE CITY COMMISSION BOZEMAN, MONTANA August 8, 1994 ***************************** I The Commission of the City of Bozeman met in regular session in the Commission Room, Municipal Building, August 8, 1994, at 3:00 p.m. Present were Mayor Vincent, Commissioner Youngman, Commissioner Stiff, Commissioner Stueck, Commissioner Frost, City Manager Wysocki, City Attorney Luwe and Clerk of the Commission Sullivan. 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 - Julv 11. Julv 18. and Julv 25 1994 It was moved by Commissioner Youngman, seconded by Commissioner Stiff, that the minutes of the regular meetings of July 11, July 18 and July 25, 1994, be approved as . submitted. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Youngman, Commissioner Stiff, Commissioner Stueck, Commissioner Frost and Mayor Vincent; those voting No, none. Decision - Lonnv and Kim Walker - (a) CUP for PUD - allow a 45-lot Dlanned unit develoDment for single-familv. detached manufactured and modular housing units (Z-947Q): and (b) Dreliminarv Dlat for Countryside Subdivision PUD to create 45 lots on 7 A-acre tract (P-9428)- COS 522. in the SWY4. Section 11. T2S. R5E. MPM (3290 West Babcock Street) This was the time and place for the decision on the applications forwarded by Lonny and Kim Walker for development of 7.4 acres known as Certificate of Survey No. 522, located in the southwest one-quarter of Section 11, Township 2 South, Range 5 East, Montana Principal Meridian, as follows: (a) for a Conditional Use Permit for a Planned Unit Development, I under Application No. Z-9470, to allow a 45-lot development for single-family, detached manufactured and modular housing units; and (b) for a preliminary plat Planned Unit Development for Countryside Subdivision, under Application No. P-9428, to create a 45-lot subdivision. The subject property is more commonly located at 3290 West Babcock. 08-08-94 - 2 - Included in the Commissioners' packets was a memo from Planning Director Andy Epple, dated August 5, 1994. Responding to questions from Commissioner Stueck, Planning Director Epple confirmed that the Department of Fish, Wildlife and Parks has identified the watercourse I through the subject property as a stream rather than a ditch. Since this has been identified as a natural stream, a 310 permit from the Soil Conservation Service will be needed to make any changes in that waterway. Further responding to Commissioner Stueck, Planning Director Epple stated that one employee of the Department of Fish, Wildlife and Parks has indicated he will not allow a bona fide stream to be placed underground. He then stated there are several different classes of watercourses, including bona fide streams, such as this one; stream/ditches, which are corridors which may be used for transporting of irrigation water; non-perennial streams, which can be moved without requiring a 310 permit; and ditches, which are also not subject to 310 permits. He noted that the Soil Conservation Service and the Department of Fish, Wildlife and Parks work closely together when considering classification and possible relocation of e watercourses. Commissioner Stueck noted that if this waterway is a stream and cannot be placed underground, then the 35-foot streambank setback must be provided; and that essentially voids this project. Responding to additional questions from Commissioner Stueck, Planning Director Epple stated that the Department of Fish, Wildlife and Parks is responsible for classifying perennial streams, non-perennial streams, stream/ditches and ditches, while the Soil Conservation Service has the authority to review and issue 310 permits. He noted that there is a Department of Fish, Wildlife and Parks representative on the Soil Conservation Service, which provides for overlap of those two authorities. City Manager Wysocki asked the Planning Director to review the process which the I Planning staff utilizes when reviewing an application where a waterway is involved, noting that the designation of this subject waterway as a stream seems to have come late in the process. The Planning Director stated that during the concept plan review, staff suggested to Mr. and Mrs. Walker that they take steps necessary to determine the status of this waterway, noting that their review of the records at the Courthouse showed the waterway as a ditch. He 08-08-94 --.- ---------------...... ------ ..--.-.-.--.. - -- --..-.--.-.".--.-- - 3 - further stated that the preliminary plat application designated the watercourse as a ditch; and staff reviewed this application under the assumption that information was correct until close to the final public hearing, at which time the Department of Fish, Wildlife and Parks indicated that a 310 permit would be required to relocate the watercourse. I Responding to the City Manager, Planning Director Epple stated that the status of the waterway was discussed briefly at the Planning Board meeting; however, its status was not a part of their decision to recommend denial of this preliminary plat. Commissioner Stueck expressed his frustration after calling several different agencies, talking to several different individuals and getting several different answers. Responding to questions from Commissioner Stueck, Planning Director Epple stated that the Department of Fish, Wildlife and Parks has indicated a willingness to consider an acre- for-acre land swap to create the right-of-way needed to extend Ravalli Street from Fowler Avenue east to the Balian property and this subject parcel. He noted that this would provide for an additional setback along the north edge of the ponds, which is desired by the Department of Fish, Wildlife and Parks, thus ensuring a greater buffer between the ponds and e any future development. Mr. Lonny Walker, applicant, stated that his research on the watercourse was more extensive than just reviewing records at the Courthouse; it included talking to the Department of Natural Resources and the Soil Conservation Service. All of the information indicated that it was a stream/ditch. He noted this waterway does not have water in it year round and, therefore, it is not a fish habitat. Responding to Mayor Vincent, City Attorney Luwe stated that, even though this information concerning the designation of the water course was received after the public hearing was closed, it was the subject of discussion and questions raised during the public hearing and can, therefore, be considered. Responding to Commissioner Frost, Planning Director Epple stated that the 30-percent I open space requirement for a subdivision or zoning planned unit development must be met; and there is no mechanism for granting an exception for any portion of the requirement. He stated that, without meeting the 30-percent requirement, he does not believe a project would be eligible for consideration as a planned unit development. 08-08-94 ..---- ...--. - 4 - Responding to Commissioner Youngman, the Planning Director stated that occasionally an applicant will ask for a variance from the street widths; however, that was not requested in this instance. Further responding to Commissioner Youngman, Planning Director Epple stated the I proposed 3-foot-wide sidewalk is too narrow to accommodate pedestrian and bicycle traffic safely. He voiced other concerns about this proposed development, which include the lack of 3D-percent open space, relocation of the stream/ditch to the east property line and the potential impacts that it might have on adjacent property owners, as well as the potential problems for emergency vehicles to maneuver on narrow streets within the subdivision. Commissioner Youngman noted the Housing Task Force has indicated the Commission needs to consider smaller lot sizes, narrower street widths and smaller setback requirements to create more affordable housing. She noted that the Commission has not yet adopted those recommendations; and the current planned unit development regulations do not seem to allow that type of consideration. She questioned if this would be the type of proposal that could be considered under guidelines for an affordable housing project. e Planning Director Epple responded by stating that a traditional subdivision, where access to lots is gained from the street and garages face the street, would be difficult to review as an affordable project. He suggested, instead, that a subdivision with an alley system, from which access could be gained to garages, would allow for smaller lots and, thus, more affordability. He envisioned smaller garages, either single-car or oversized single-car as a possible alternative. He stated it is extremely difficult for someone in the private sector to provide affordable housing, particularly in the single-family housing market. Responding to additional questions from Commissioner Youngman, the Planning Director cautioned that in this proposed subdivision, care must be taken to ensure the streets are wide enough to accommodate the turning maneuvers of large emergency vehicles. He noted that in other subdivisions, it might be possible to consider narrower streets because the I street configuration is different. Responding to City Manager Wysocki, the Planning Director stated that when the Planning Board considered this application, no sidewalks were proposed, noting they were added prior to the latest submittals to the Commission. 08-08-94 - 5 - Commissioner Stueck stated there are too many unanswered questions at this time for him to support this application, the majority of which revolve around whether the watercourse is a stream or a stream/ditch. He also noted that the Commission has not yet developed a process under which to consider an affordable housing proposal; and he feels it I is important for the Design Review Board, Planning Board and City Commission to develop and implement that process before considering this type of proposal. He then stated that, because he does not have all of the information needed to make a decision at this time, he intends to abstain from voting. Commissioner Frost stated there are several ideas in this proposal which he likes, such as the zero lot lines for garages and smaller front yard setbacks. He noted that many of the requested deviations are acceptable, as long as the City has some guarantee of the prices on the homes. He forwarded his concerns about this proposal, which include the entryway, since this proposal would result in land locking the parcels on each side of the entrance; the precedent of undermining the requirement of 3D-percent open space in a planned unit development; and the issue of the stream/ditch. He then stated his appreciation for the effort which the e applicants have put into this application; however, he cannot support it. Commissioner Youngman stated that, if at all possible, she would prefer to send this application back through the process instead of denying it and requiring that the applicants start over. She noted the repeated discussions about smaller setbacks, smaller lot sizes and narrower street widths; however, no actual acceptable sizes have been established to date. She emphasized her interest in developing guidelines under which affordable housing projects will be considered, in exchange for guaranteed affordability. Commissioner Youngman stated she could suppport this application if conditions could be developed to address the stream/ditch issue and its possible relocation or tubing; if a condition could be established regarding the entryway to this development; if an adequate buffer could be provided for the fish ponds; and if affordability could be guaranteed. She I stated that, because such conditions cannot be readily developed, however, she will support denial of the application. Commissioner Youngman then expressed her concern that the Planning staff and the Development Review Committee asked that the applicant address several questions and concerns regarding life safety issues before this application was forwarded any further through 08-08-94 ---------- -..--------- - 6 - the process; however, the applicants chose not to do so. This resulted in the problems being carried forwarded to the Planning Board and the City Commission, causing those bodies to deal with technical issues with which they are not familiar. Commissioner Stiff stated that the Commission needs to see an application that has . been "hammered down", rather than trying to deal with a "moving target", He stated that, given all of the concerns which have been raised and the fact that the proposal before the Commission is ever-changing, he cannot support its approval at this time. He did, however, encourage the applicant to move forward with this type of application, noting that a viable affordable housing project is important to the community. Mayor Vincent stated that the Commission does not have the latitude needed to approve this application as it has been submitted. He noted that if the applicant is able to adequately address the various issues raised, particularly those pertaining to public safety, he feels the application would be worth reconsideration. It was moved by Commissioner Stiff, seconded by Commissioner Frost, that the Commission deny the applications forwarded by Lonny and Kim Walker for development of 7.4 . acres known as Certificate of Survey No. 522, located in the southwest one-quarter of Section 11, Township 2 South, Range 5 East, Montana Principal Meridian, as follows: (a) for a Conditional Use Permit for a Planned Unit Development, under Application No. Z-9470, to allow a 45-lot development for single-family, detached manufactured and modular housing units; and (b) for a preliminary plat Planned Unit Development for Countryside Subdivision, under Application No. P-9428, to create a 45-lot subdivision. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Stiff, Commissioner Frost, Commissioner Youngman, Commissioner Stueck and Mayor Vincent; those voting No, none. Commission Resolution No. 2996 - establishing tag system fees and other soecial fees for defraYing the cost and exoense of collecting and disoosing of solid waste under the orovisions of Ordinance No. 1323 I City Manager Wysocki presented Commission Resolution No. 2996, as approved by the City Attorney, entitled: COMMISSION RESOLUTION NO 2996 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, ESTABLISHING TAG SYSTEM FEES AND OTHER SPECIAL FEES FOR DEFRAYING THE COST AND EXPENSE OF COLLECTING AND 08-08-94 ..---. n .._._ - 7 - DISPOSING OF SOLID WASTE UNDER THE PROVISIONS OF ORDINANCE NO. 1323; The City Manager stated that this resolution establishes a base annual assessment of $47.00 for the collection and disposal of solid waste for Fiscal Year 1994-1995. He reviewed the figures included in the resolution for tags and optional assessments for cans and I dumpsters. noting that they are based on the base annual assessment. He then recommended that the Commission adopt this resolution. Responding to Mayor Vincent, City Manager Wysocki stated that the figures contained in this resolution reflect an increase over last year's assessments and tag fees. He then reminded the Commission of the importance of creating a reserve to fund closing of the landfill and the subsequent 30-year monitoring process. He reminded the Commission that only 20 percent of the solid waste being dumped at the landfill is collected by the City trucks. He noted that while a portion of the solid waste being dumped by Three Rivers is from in-town commercial and residential collections, the bulk of it is from outside city limits. It was moved by Commissioner Stueck, seconded by Commissioner Frost, that the Commission adopt Commission Resolution No. 2996, revising the tag system fees and other . special fees for collection of solid waste for Fiscal Year 1994-1995. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Stueck, Commissioner Frost, Commissioner Youngman, Commissioner Stiff and Mayor Vincent; those voting No, none. Commission Resolution No 2997 - establishing a revised landfill fee schedule for users of the City of Bozeman City Manager Wysocki presented Commission Resolution No. 2997, as approved by the City Attorney, entitled: COMMISSION RESOLUTION NO. 2997 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, ESTABLISHING A REVISED LANDFILL FEE SCHEDULE FOR USERS OF THE CITY OF BOZEMAN LANDFILL. I The City Manager stated this resolution reflects an increase in many of the fees charged at the landfill. He briefly highlighted some of those revisions, noting that this increase is needed to cover current costs of operations as well as to assist in building the reserve for closure of the landfill in the next few years. 08-08-94 - ...". ---..-.--- --- - 8 - The City Manager stated that, because of the minimal impact which the $5 anti-litter assessment is having on uncovered loads at the landfill, staff is recommending that the assessment be increased to $25. That change has resulted in the next agenda item, which is an ordinance revising the anti-litter assessment as it appears in the Bozeman Municipal Code. I Commissioner Stueck suggested that this resolution and the subsequent ordinance be amended to reflect an increased assessment for large uncovered loads. He stated that, while he feels the $25 assessment would be adequate for pick-ups and small trailers, he feels that a higher assessment should be levied against one-ton trucks and above and large trailers. He proposed that assessment could be set at $50. . It was moved by Commissioner Frost, seconded by Commissioner Youngman, that the Commission adopt Commission Resolution No. 2997, establishing a revised landfill fee schedule for the City of Bozeman landfill, as amended. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Frost, Commissioner Youngman, Commissioner Stiff, Commissioner Stueck and Mayor Vincent; those voting No, none. e Ordinance No. 1386 - revisina Section 8.40.101 of the Bozemen Municipal Code. entitled "Littering". bv increasina the anti-litter assessment from $5 to $25 City Manager Wysocki presented Ordinance No. 1386, as approved by the City Attorney, entitled: ORDINANCE NO. 1386 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, PROVIDING THAT THE BOZEMAN MUNICIPAL CODE BE AMENDED BY REVISING SECTION 8.40.101 OF THE BOZEMAN MUNICIPAL CODE, PROVIDING FOR AN INCREASE IN THE ANTI-LITTER ASSESSMENT TO TWENTY-FIVE DOLLARS PER LOAD. The City Manager recommended that, based on the previous action, the Commission adopt this ordinance as amended to reflect a $25 assessment for smaller than one-ton trucks and small trailers and a $50 assessment for one-ton trucks and larger and for large trailers. I It was moved by Commissioner Youngman. seconded by Commissioner Stiff. that the Commission adopt Ordinance No. 1386, increasing the anti-litter assessment, as amended, on first reading, and that it be brought back in two weeks for second reading and final adoption. The motion carried by the following Aye and No vote: those voting Aye being Commissioner 08-08-94 .---.. -... - - 9 - Youngman, Commissioner Stiff, Commissioner Stueck, Commissioner Frost and Mayor Vincent; those voting No, none. UDdate on Bozeman Area Bicvcle Advisory Board activities - Scott Dreblow. Chair I Mr. Scott Dreblow, member of the Bozeman Area Bicycle Advisory Board, stated his intent is to provide the Commission with background on the activities of the BABAB over the past three and one-half years; urge the Commission to reconsider its recent action on improvements to South 8th Avenue, including a bicycle lane; and asked how the decision- making process can be improved. Mr. Dreblow stated he has been a member of the BABAB for the past two and one- half years, serving two years as secretary and currently serving as the Chair. He also noted that he has served on the "We Share the Road" steering committee, the Parks, Open Space and Trails Committee and the steering committee for ISTEA funds. Mr. Dreblow noted that during the its first year, the BABAB reviewed and provided input into the development of the long-range transportation plan. Through the cooperation of . downtown businesses, the Board was also able to get bicycle racks installed in several locations downtown. In 1992, its second year, the BABAB began the "Bike to Work" campaign; and that has expanded each year since. Also, the school helmet campaign was undertaken in the public schools. In 1993, the BABAB became actively involved in the final stages of implementing the long-range transportation plan update. The "Bike to School and Work" campaign was expanded into a week-long event; KMMS donated free air time to the program; public rides were organized; and a city-wide bike rodeo was organized. In 1994, the BABAB has continued to work with those activities listed above; and they are exploring the possibility of training police officers to patrol on bicycles. Mr. Dreblow urged the Commission to reconsider its recent action regarding the installation of the bicycle lane on South 8th Avenue. He asked that the Commission implement I that project, for the safety of the bicyclists in Bozeman. He recognized the problems which face bicyclists in Bozeman, including being cut off by motorists, being run off the road and having rocks thrown at him. He stated that he is well aware of the comments regarding bicycles being allowed on Main Street, Mendenhall Street and Babcock Street. 08-08-94 - 10 - Mr. Dreblow asked that the Commission pursue a program for implementing bike lanes on all main commuter roads. The bicyclists could then use those lanes; and they would be in the places where motorists would be looking for them. He stated that people who have been bicycle commuters in other cities around the country refuse to ride bicycles in Bozeman I because of the safety problems. He noted that by encouraging employees to ride a bicycle to work, particularly in the downtown area, parking spaces will be made available for visitors. Mr. Scott Dreblow stated that the long-range transportation plan is a very carefully prepared document, the development of which was based on a substantial number of public meetings and significant public input. He expressed concern that, with comments from a few concerned citizens, a project which would benefit bicyclists was suspended. He asked the Commission to reconsider this issue, taking into consideration the entire community rather than residents along one street. Mr. Dreblow reminded the Commission that the Bozeman Area Bicycle Advisory Board is an advisory body to them. He then asked that they be given an opportunity to provide input on issues such as the South 8th Avenue bike lane when requests are made, particularly when e those issues involve projects identified in the transportation plan update. He stated that it is easy for members of advisory boards to feel they are not a part of the process; and he encouraged the Commission to address that issue, recognizing the number of volunteer hours which are devoted to the City each year. Mr. Dreblow suggested that as Neighborhood Coordinator, James Goehrung should be encouraged to find a better way to communicate with advisory boards about specific neighborhood requests, such as the South 8th Avenue issue. Commissioner Stueck stated that implementation of the South 8th Avenue bike lane has been temporary suspended. He noted that this was due in part to the fact that the neighborhood parking district has been created since the transportation plan update was completed and in part to the fact that the residents along that street were not aware of this I project until the work was started. He then stated that residents along South 8th Avenue are currently organizing a meeting to discuss this issue. Commissioner Stueck noted that approximately two or three percent of the people who ride bicycles disobey the laws and make it difficult for all of the other riders. He then asked if the BABAB has considered addressing that problem. 08-08-94 ----.--- - 11 - Mr. Dreblow stated that issue has been addressed. He then noted that the Board recognizes it has never been able to quantify the number of people who do ride bicycles in the community. He stated that the BABAB has discussed the idea of licensing bicycles, in an effort to obtain a sense of the number of bicyclists. He emphasized the fact that the Board has I directed a lot of its effort toward public education. This included development of a brochure in conjunction with the "We Share the Road" campaign, copies of which he distributed to the Commissioners. Commissioner Frost stated appreciation for the efforts of the BABAB over the last three and one-half years, noting the helmet program in particular. Commissioner Youngman suggested the possibility of expanding the number of members on the Board, to take advantage of the number of people who have expressed an interest in this area. She then asked if the Board has reviewed the various options available on West College Street, since no definitive recommendation was forwarded with those options. She forwarded her concern about the width of bicycle carts, whether the width of bicycle lanes is adequate for them and the wisdom of mixed use lanes. . Commissioner Youngman noted that. even though the transportation plan update was the subject of several public meetings and public hearings, residents are often not aware of projects that may impact them directly until they are either notified or work is begun. She then suggested that in the future, it may be beneficial to notify the neighborhood of impending changes prior to their implementation. She stated that she does support the concept of a network of bike lanes that will accommodate bicycle travel throughout the community. Commissioner Youngman then stated the idea of licensing is an interesting one, noting that information on safe bicycling could be distributed with licenses. She concluded by encouraging continuation of the Board's public education efforts. Mayor Vincent noted that much of the traffic in Bozeman is from outside the city limits. He then suggested that, in addition to encouraging city residents to ride bicycles, the I BABAB should also encourage those on the periphery of the city to ride their bicycles instead of driving vehicles. He then thanked Mr. Dreblow for his presentation. 08-08-94 .--- -.. .--..-- ------.-.-.---- .---.-.-... ..--- - 12 - Reauest for aDDroval of final list of transDortation Drojects to be included in the $5 million aeneral obliaation bond issue. dated August 2. 1994 Included in the Commissioners' packets was a revised final list of transportation projects for the 1994 general obligation bond issue. City Manager Wysocki reviewed the revisions which have been included in this final I draft, noting that the Durston Road project has been split into two phases, in response to Commissioner Stiff's concerns. He then noted that if not all of the estimated amount is expended on any of the other projects listed, those monies will be used on the Front Street project. He stated that the West Babcock Street project is listed for design only; however, there is a potential that a group of developers will fund the costs of design as a result of approvals of a number of recent development projects. He suggested that if the developers fund design of the roadway, the monies from the bond issue could possibly be used for right-of- way acquisition. Responding to Commissioner Stiff, Planning Director Epple stated that the proposed impact fees for transportation have stalled due to recent changes in personnel in his office. He stated that, hopefully, that project will be back on track shortly, with a proposal to be e considered by the Planning Board and the Commission being forwarded prior to the November election. Mayor Vincent asked about the extension of South 15th Avenue, which is included on this listing. He also asked if any additional thought has been given to the idea of stipulating that if the City gains authority and establishes a local option gas tax, some of those monies will be used to offset the costs of repaying the bonds. City Manager Wysocki suggested that the Commission can address that issue during discussions about the proposed bond issue. He stated, however, that to include that provision in that ballot question could be confusing to the voters. Mayor Vincent reminded the Commission of the letter from the owner of the Round I House, which is included in this week's "FYI Items", enumerating the potential impacts that extension of South 15th Avenue would have on that business. He also reiterated his concerns about the impacts that this could have on West Babcock Street, particularly at its intersections with South 19th Avenue, South 11 th Avenue and South 8th Avenue. 08-08-94 -.".-----..--..---.. ....--.--.- ...-.-- ..- .--.. --- ..----..-- _.n .._ - -- ...---- - 13 - Responding to Commissioner Stueck, City Attorney Luwe stated that the ballot question will not delineate the projects to be funded through the general obligation bong issue. He noted that this list of projects will give the voters an idea of what the City is contemplating; however, he stated that other sources of funding for some of them may become available I before the projects are done. He stated that. in that instance those monies could be used for another project that has surfaced as very high priority. The City Manager cautioned the Commission that the projects listed should be completed if the bond issue is successful, particularly since that is the basis upon which the City will be seeking approval of the bond issue. Commissioner Youngman stated her interest in taking another look at the South 15th Avenue project before the final list is approved. Commissioner Frost stated he feels that Durston Road needs to be fully improved, including curb, gutter, boulevard and sidewalks, particularly since it is, and will continue to be, the main east/west street in that part of the community. He stated this is a much higher priority than extension of South 15th Avenue. He also stated that the Front Street project is e a higher priority than the South 15th Avenue extension. He then indicated that if any of the projects need to be removed from the list to provide adequate funding for the other projects, he would support removing the South 15th Avenue project. Responding to Mayor Vincent, the City Manager stated that after the North 19th Avenue extension and the West Oak Street extension have been open for a period of time, he feels that the level of traffic on Durston Road can be reviewed once again to determine the level of improvements needed. He cautioned the Commission that to implement the full improvements at this time could result in overbuilding of that street, which may not be desirable in light of other high priority projects. Commissioner Stiff suggested that Note No.1, which references the Durston Road project, be amended by changing the word "will" to "may", thus giving the Commission some I latitude in the extent of improvements to be made. City Manager Wysocki stated he feels that full improvements to Durston Road are needed and should be included in this list. He reminded the Commission of the three schools in the immediate vicinity of that street, and the importance of providing a safe place for the students to walk or ride bicycles to and from school. 08-08-94 ------ - '" -- --------.-- --...-."..----- --.---. - ------ -' - 14 - The City Manager noted that some recent improvements to the road system through the industrial area in the northeast sector of the community could decrease the importance of extending Front Street. He noted those include plans for installation of a traffic signal at the intersection of West Tamarack Street and North 7th Avenue and recent installation of a traffic I signal at the intersection of East Tamarack Street and North Rouse Avenue. Responding to Commissioner Stiff, the City Manager stated staff has not had an opportunity to review Mr. Merkel's situation to determine whether he has portrayed an accurate picture of the impacts that extension of South 15th Avenue would have on his business. Commissioner Frost stated that he supports deleting South 15th Avenue from the list of projects because of the impacts it would have on an existing business. He also noted that, although South 15th Avenue is designed primarily as a north/south link, it will have an impact on West Babcock Street and other surrounding streets, which will result in a need for remedial action on those streets as well. He expressed concern about encouraging additional traffic on South 15th Avenue between West Babcock Street and West College Street, noting there is a mix of single-family and multi-family residential units along that street. He also stated his e support for improving Durston Road to full City standards rather than approaching it as a possible two-phase project. Commissioner Youngman suggested that, rather than limiting the use of monies from the South 15th Avenue project to increasing the amount of monies available for the Front Street project, an option be provided to use some of those monies for additional right-of-way acquisition if that is determined to be a higher priority. Commissioner Stiff expressed his concern about eliminating the South 15th Avenue project. He recognized the problems inherent with that project; however, he noted the Commission is not standing behind the tough issues which were identified as important to the overall network in the transportation plan update. It was moved by Commissioner Frost, seconded by Commissioner Youngman, that I the Commission approve the final revised list of transportation projects to be included in the $5 million general obligation bond issue, as amended to remove the footnote for the second portion of the Durston Road project and remove the South 15th Avenue extension, with those monies being used for either the Front Street project or additional right-of-way acquisition. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Frost, 08-08-94 - .---.."...- ....-----.. - --.-..... - 15 - Commissioner Youngman, Commissioner Stueck and Mayor Vincent; those voting No being Commission Stiff. Discussion - FYI Items I City Manager Wysocki presented to the Commission the following "For Your Information" items. (1 ) Letter from Larry Merkel, Round House, dated August 5, expressing concern about the proposal to extend South 15th Avenue from West Main Street to West Babcock Street. (2) Agenda for the Development Review Committee meeting to be held at 10:00 a.m. on Tuesday, August 9, at the Carnegie Building. (3) Agenda for the Design Review Board meeting to be held at 3:30 p.m. on Tuesday, August 9, at the Carnegie Building. (4) Agenda for the County Commission meeting to be held at 1 :30 p.m. on Tuesday, August 9, at the Courthouse. e (5) The City Manager submitted his weekly report, as follows. (1) Announced that the City and the Bozeman Daily Chronicle are co-sponsoring the Air Force band concert at the Bogert bandshell on Thursday evening. He noted this concert is in addition to the Tuesday evening concert by the Bozeman Municipal Band. (2) Announced that Planning Director Epple has drafted a policy regarding the treatment of ditches and stream/ditches, and forwarded that policy to the Farmers' Canal Company for a response. (3) Stated that Sweet Pea '94 seems to have been a success, with no problems reported by the Police Department. (4) Announced that the City will be bidding on a couple of items advertised in the federal and state surplus bulletins, even though monies have not been budgeted for them. He stated that if the City is successful in its bids, he will then seek authorization for the purchase of those items from the Commission, noting that this mechanism would allow for acquisition of the I equipment at a substantially reduced cost. (5) Announced that approximately 150 people attended the City picnic on Friday evening. (6) Noted that a number of staff people are taking vacation time between now and the start of school. (7) Reminded the Commission of the forum on growth, which is to be held at noon on Wednesday at the Holiday Inn. (8) Announced that at 11 :00 a.m. on Wednesday, a presentation on downtown revitalization, 08-08-94 - 16 - either via satellite or video tape, will be held at Edward D. Jones office in the State Farm Building. He announced that Assistant City Manager Brey and Intern Joe Christman will attending on his behalf. (6) Commissioner Stueck submitted the following. (1) Distributed copies of the I minutes from the Montana Board of Housing meeting held at 8:30 a.m. on July 8. to the Commissioners. He noted that the cap for the Homebuyers Cash Assistant Program has been raised from $50,000 to $60,000. (2) Announced that he has been working with people regarding the extension of Fowler Lane. (7) Commissioner Frost attended the Parking Commission meeting on Thursday. He stated that since the State statutes allow the Parking Commission to expand its membership, and there is no need to change any of the other documents involved, the Parking Commission would like to have the other applicant appointed as soon as possible. (8) Commissioner Frost asked that the Commission request the Historic Preservation Advisory Commission to look at alternatives for the Carnegie Building, and forward a recommendation back to the Commission for consideration. He stated that the HPAC meets e again on August 23; and they have indicated a willingness to place this request on the agenda. Mayor Vincent authorized Commissioner Frost to forward the request to the HPAC at their upcoming meeting, on behalf of the Commission. (9) Commissioner Youngman submitted the following. (1) Has been attending meetings of the various boards to which she has been appointed liaison. (2) Attended the Sweet Pea activities. (10) Commissioner Stiff submitted the following. (1) Attended the portion of the City-County Planning Board meeting at which the presentation on development was made. He noted the presentation was a good one; however, it also raised several questions and concerns. (2) Stated he had a busy week, like everyone else, including Sweet Pea activities. (11 ) City Attorney Luwe announced that interpretive signs have been installed I along a portion of the Sourdough Trail. (12) Clerk of the Commission Sullivan submitted the following. (1) Reviewed the agenda for next week's meeting, which includes four public hearings. (2) Announced that nearly one-half of her time was devoted to the telephone system acquisition process last week. 08-08-94 -.-.. ----- - - 17 - ( 13) Mayor Vincent submitted the following. (1) Stated that he spent time with his family last week, assisting his wife through her initial treatment process. (2) Announced that the Choral Room is set up for this evening's town meeting. (3) Stated that when he is serving on the panel on growth on Wednesday, he will make it perfectly clear that the I comments he is making are his own, and do not represent the Commission's position, Consent Items City Manager Wysocki presented to the Commission the following Consent Items. Commission Resolution No. 2995 - resetting Dublic hearing date on Commission Resolution Nos 2988 and 2989 to Auaust 22. 1994 COMMISSION RESOLUTION NO. 2995 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, AMENDING THE TIME SET FOR PUBLIC HEARING ON THE CITY-WIDE STREET MAINTENANCE DISTRICT AND THE CITY-WIDE TREE MAINTENANCE DISTRICT, AS SET FORTH IN COMMISSION RESOLUTION NOS. 2988 AND 2989. Reauest for modification of Condition No. 3 for aDDroval for Valley Creek Subdivision - 21.2 acres located in the SE%, Section 10. T2S. R5E, MPM (695 feet south of Babcock and 135 east of e Y ellowstone) Reauest for authorization to settle with other insurance comoanies re Bozeman Solvent Site. oer City Attorney's memo dated August 1. 1994 Authorize Mayor to sign Findinas of Fact and Order for aooroval of oreliminary Dlat for Babcock Meadows Subdivision - (27.2 acres located along the south side of the street in the 3100 block of West Babcock Street) Authorize City Manager to sign - Water PiDeline and Access Easement and Agreement - Bozeman School District NO.7 - 30-foot easements across Tract 2. COS No. 1660. located in the NW% of Section 12. T2S. R5E. MPM (corner of North 11 th and Durston at SUDDort Services Buildina) Authorize City Manager to sign - Sewer and Water PiDeline and Access Easement and Agreement - Greentree Condominium Association - 30-foot easement across Lots 1 and 2. Block 6. and Lots 9 through 15. Block 5. University Subdivision ( 11 04 South Montana I Avenue) Building Insoection Division reDort for Julv 1994 It was moved by Commissioner Youngman, seconded by Commissioner Stiff, 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 08-08-94 -' - 18 - vote: those voting Aye being Commissioner Youngman, Commissioner Stiff, Commissioner Stueck, Commissioner Frost and Mayor Vincent; those voting No, none. Recess - 5:20 D.m. I Mayor Vincent declared a recess at 5:20 p.m., to reconvene at 7:00 p.m. in the Choral Room of the Bozeman Senior High School, for the purpose of conducting a town meeting. Reconvene - 7:00 p.m. Mayor Vincent reconvened the meeting at 7:00 p.m., in the Choral Room of the Bozeman Senior High School, for the purpose of conducting a town meeting. , Town meeting - recommendations forwarded bv Housing Task Force: first Dublic hearina in Community Development Block Grant Drocess Mayor Vincent opened the town meeting on the recommendations forwarded by the Housing Task Force, which includes the first public hearing in the Community Development e Block Grant process, welcoming all of those in attendance. Neighborhood Coordinator/GrantspersonJames Goehrung presented the Housing Task Force report, including the 23 recommendations which they have forwarded. This included a slide presentation, which lasted approximately one-half hour. He stated the purpose of the meeting is to review the recommendations from the Housing Task Force and to serve as the first public hearing in the needs assessment process for Community Development Block Grant program funds. He explained that CDBG monies are available in three categories: (1) economic development, (2) public facilities and (3) housing. Grants are awarded in an amount not to exceed $400,000; and the deadline for the next round of applications is October 4, 1994. He encouraged individuals and organizations with ideas for specific projects to forward their ideas I during this evening's town meeting and public hearing. The Neighborhood Coordinator noted that over the past eight years, federal assistance for housing has dropped by 75 percent. He stated that a comprehensive housing affordability strategy (CHAS) must be completed before a community is eligible for the federal programs. 08-08-94 - 19 - The Coordinator stated that 56.84 percent of Bozeman residents, and 41.54 percent of Gallatin County residents, are considered low-income people. A substantial percentage represents voluntary poverty, due to the college student population, with an extraordinary percentage of their monies being spent for housing and school expenses. The median income I in Gallatin County in 1994 is $35,900.00, which represents a home purchasing limit of $112,000.00. The Neighborhood Coordinator then presented demographic information, including the percentages of residents in various age groups, statistics regarding the ages of homeowners, the age of the housing stock in Bozeman and the percentage of rental housing in Bozeman. He stated that 57 percent of the housing stock in Bozeman is occupied by renters; and the unoccupancy rate is less than 1 percent at the present time. The Neighborhood Coordinator stated that Gallatin County has the highest average home value in Montana. Also, those values have increased from $60,000 in 1986 to $118,000 in 1994. While the number of single-family homes built in and around Bozeman has been high over the past few years, the number of multi-family units has not been as high. e Neighborhood Coordinator/Grantsperson Goehrung reviewed each of the 23 recommendations forwarded by the Housing Task Force, noting they fall under the headings of "regulatory reform", "community housing fund" and "inclusionary zoning". Those recommendations include: 1 . Develop educational materials for the general public regarding the planning, zoning and engineering requirements. 2. Develop educational materials for the builder/developercommunity regarding City policies and procedures. 3. Promote general housing practices for low and moderate income housing, particularly for mobile and modular housing. 4. Revise the planning and approval process with an eye toward streamlining the overall process and provide additional opportunities for in-house review by city staff. I 5. Revise zone code requirements related to development density. 6. Revise development standards required by City staff of projects, maintaining overall health, safety and welfare and minimize housing construction costs. 7. Review "optimum value engineering" standards and identify and promote acceptable changes in building practices, maintaining consistency with Uniform Building Code. 08-08-94 - 20 - 8. Revise requirements and promote regulations and zoning requirements that encourage the development of mobile home parks and modular home developments. 9. Developers of ten or more residential units are required to set aside or dedicate 15% of the units to low and moderate income families. I 10. The affordable units would be comparable to other units in the development. 11. Ten percent of the units must be accessible under ADA standards. 12. Affordable units can be spread throughout or clustered within a development. 13. Developers that agree to set aside more than the required minimum 15% will receive additional incentives. 14. Allow for off-site construction of affordable units and the ability to pay in lieu of construction. 15. Accept the definition of a Housing Trust Fund presented below and establish a Housing Trust Fund to address the housing concerns of low and moderate income citizens in the community. 16. Budget $100,000 from the City general fund to fund the activities of a Housing Trust Fund for the next three years. 17. Evaluate the effectiveness of the Trust at the end of three years. e If the housing crisis is still occurring and the Trust is fulfilling a valid need in the community, continue funding the Trust to meet the low and moderate income housing needs of the community. 18. Encourage the County Commission to establish a County-wide Trust to address affordable housing needs throughout Gallatin County. 19. Encourage the State-wide Housing Study Group to establish the necessary legislative measures to allow for a state-wide housing trust to be developed. 20. Utilize the Housing Revolving Loan Committee to oversee the Housing Trust Fund. This committee would review applications for money from the Housing Trust Fund and make recommendations to the City Commission based on the amount of money available and the defined uses of the Housing Trust Fund money. 21. Adopt the list of acceptable uses of money from the Housing Trust Fund. These uses would be reviewed annually and updated I as community needs change. 22. Establish an application process, evaluation criteria for ranking applications, a review process for applications, and a hearing process to award Housing Trust Funds. 23. Establish a revolving loan fund for the Housing Trust and the necessary accounting measures to assure repayment. 08-08-94 T .-....----..-.-. - 21 - The Neighborhood Coordinator stated that manufactured and modular homes represent a quick way to address the housing market. He noted that the average percentage of housing provided through this source is 14 percent in Montana; in Bozeman it is 6.3 percent and in Gallatin County it is 20.9 percent. I The Neighborhood Coordinator concluded his presentation by encouraging those in attendance to forward comments on these recommendations as well as on the needs of the community. Each of the Commissioners, in turn, thanked those who attended the meeting. They also stated an interest in receiving input on how to address the issue of affordable housing in the community and responses to any of the recommendations forwarded by the Housing Task Force. Commissioner Youngman noted that approximately ten years ago, she worked with the previous task force which reviewed this issue, indicating that the report from that committee was shelved because Bozeman suddenly encountered an economic upheaval that needed to be stabilized. She noted, however, that economic cycles do not seem to make much difference in Bozeman's housing situation. She stressed the importance of providing more e rental housing, possibly with the local government providing whatever assistance it can to red uce costs. Commissioner Stiff recognized the efforts of the Bozeman Interfaith Housing in addressing this issue, on a rather small level. He then stated that the NIMBY (not in my back yard) factor is one which must be recognized and dealt with appropriately if the issue of affordable housing is to be successfully addressed. Mayor Vincent briefly reviewed the format for this town meeting, and encouraged all interested persons to forward testimony. Mr. Douglas Seibert, Hidden Valley Mobile Home Estates, stated he is associated with the Montana People's Action group. He indicated that he is speaking on behalf of one-third of I the homeowner population in the area. He noted that, despite their name, on a national average, mobile homes are moved only once, with a move costing an average of $2,000. He stated that these homes provide low- and moderate-income housing for area homeowners, with the majority of those people working here rather than being of a more transient nature. 08-08-94 ..---.-- - 22 - Mr. Seibert then presented a two-part question: (1) what consideration, if any, was given to including the owner of a manufactured or mobile home on the task force and (2) could such a person be included in the evaluation process on the findings of the task force. Mr. Matt Warner, Covered Wagon Mobile Home Park, stated he is vice president of I that mobile home owners' association. He cited the continued increases in lot rent as a problem for many mobile home owners, noting that one elderly lady on a fixed income has been forced to sell her home and move into subsidized housing. He noted that, in conjunction with increased rents, the tenants have encountered decreased services and more restrictive rules in mobile home parks. He explained that if a mobile home must be moved upon sale to another person, it loses a substantial portion of its value; and that is becoming more prevalent with the increased regulation. Mr. Warner agreed that the lack of affordable housing is a definite problem in Bozeman; and mobile homes do provide a viable option for those who need affordable homes. He stated that, because of the problems they are encountering, the residents have formed an association and, in concert with the Montana People's Action, intend to address the problems. e He feels that people should have an option on how they choose to live; and steps should be taken to provide more mobile home parks with limits on the regulations a park owner may establish. Mr. Russ Halsey, King Arthur Mobile Home Park, stated he feels the City and the County should be looking not only at future affordable housing, but ways of maintaining the existing affordable housing. He noted that mobile homes are one of the traditional forms of affordable housing; however, lack of spaces in existing mobile home parks plus the unreasonable demands of mobile home park owners make living in a mobile home difficult. He stated that many mobile home parks are now restricting mobile homes to 1 2 feet and wider, thus limiting affordability. Mr. Halsey asked the Commissioners to address the issue of affordable housing in I Gallatin County, and that the mobile home tenants' association members be represented on any future task force to look at this issue. Mr. Halsey then forwarded a two-part question: (1) what is the Commission going to do to help maintain the affordable housing that already exists, and (2) what assistance can the Commission provide in addressing this issue on the State level? 08-08-94 _......_---~ --.- - -----.-- --.-..---- -.. - 23 - Mr. Bob Kolesar, 506 North Bozeman Avenue, pointed out that the report from the Housing Task Force is generally based on new affordable housing rather than on the affordability of improved older homes. He noted that under the present zoning regulations, the addition of one room to an older home can result in the imposition of standards "worthy of the I Gardner Park Subdivision"; and those standards are inappropriate in many parts of the community. He stated that people should be allowed to upgrade those older homes by adding a room in keeping with the older home style, at a much more affordable level. Mr. Kolesar noted that, even with the building boom, there are some duplexes and a few four-plexes being constructed to address the rental market; but the majority of the homes are single-family homes which are not affordable. He further noted that very few of the new houses being built will accommodate disabled persons. He stated that steps create barriers and are totally inappropriate; however, they are being approved and allowed. He encouraged the City to carefully consider the Americans with Disabilities Act when addressing the affordable housing issue, including rental units. Mr. Don Cape, owner of Ponderosa Homes, stated he has been a manufactured e housing retailer for the past eight years. and he recognizes the problems currently being . encountered by mobile home park residents. He stated that a mobile home becomes a title piece of personal property and, by law, it depreciates. He suggested that the State law should be changed to allow a manufactured home to become real property when it is located on a parcel of ground, with mobile home parks serving as a temporary location until a suitable parcel can be found for the home. Mr. Cape stated that the zoning in Bozeman has essentially stopped affordable housing. He disclosed that a few years ago, when he approached the City Commission about constructing a new mobile home park, he was told to "forget it" because they didn't want one. He stated that he recently purchased a lot for $22,000; and today, in the same subdivision, lots now carry a selling price of $45,000. He noted that a $30,000 lot is not affordable to . many people. .. Mr. Cape reminded the Commission that in Montana, due to recent court rulings and legislative changes, mobile homes may be located in any residential zone, as long as they are made compatible with the surrounding buildings and areas. He suggested that if Bozeman is truly interested in affordable housing, the Commission should allow for mobile home sites 08-08-94 --.... -. ---.--.---,,- ---- ..--...-----. ~._....- ~ - 24- within the community, rather than limiting affordability through the zoning regulations. He concluded by adding there is nothing wrong with manufactured housing, noting it is not substandard housing; and stating that those people who live in such homes are really first class people. I Mr. Leo Schlenker, 1307 South Bozeman Avenue, stated he has taught in Bozeman since 1968. He noted this is not a community in which everyone can afford to live, suggesting that the issue of affordability is one that needs to be addressed. He stated that the taxes on his home are already high; and the retirement of bonds for the construction of new schools and possibly for transportation system improvements will make the taxes even higher. He expressed concern that when he retires, he will no longer be able to afford the cost of living here. He noted that this is not the mecca; and not everyone can afford to live here. Ms. Caren Couch, Housing Programs Manager for HRDC, stated she has attended the meetings of the Housing Task Force. She noted that most of the recommendations forwarded by that committee are intended to reduce barriers to affordable housing, although that will not create the homes. She noted that only two of the recommendations will actually create e housing; and those are the $100,000 contribution to the Housing Trust Fund and inclusionary zoning. She noted that the trust fund monies could be used to leverage substantially more monies, possibly including federal monies, to be used for affordable homes; and inclusionary zoning would help to ensure that affordable homes are included in conjunction with all new housing developments. Ms. Couch cited two typical arguments against inclusionary zoning. First, it will result in increased rents or purchase prices for those units not designated as affordable, if every tenth unit were affordable. Second, many people argue that inclusionary zoning will slow growth. Ms. Couch stated that, in reality, neither of these arguments seems to hold true. She then encouraged the Commission to accept these two recommendations from the Housing Task Force. I Ms. Kerri McKeen, 8628 Huffine Lane #112, stated she lives in a mobile home park. She noted that she has been a resident of Gallatin County since 1990, and is a married college student with four children. She stated that, if it had not been for her mother purchasing a mobile home, she would have difficulty living in Bozeman so she can attend college. She noted that the shortage of affordable housing is a definite problem. She then stated that, after 08-08-94 - - 25 - reviewing the recommendations forwarded by the Housing Task Force, she is having trouble understanding how those recommendations will result in changes. She stated, instead, several of the recommendations pertain to education and promoting of affordable housing practices, rather than concrete changes which will provide affordable housing. She stated that instead . of the soft words used in the recommendations, words such as "mandate", "require" and "demand" should be used. Ms. McKeen stated that the MSU campus provides economic support for the valley; and without affordable housing, the number of students at the college might decrease. She noted that almost half of the students on the campus are not traditional, but are over 25 years old or have families. She then encouraged the Commission to address this issue as quickly as possible. Mr. Russ Squire, member of the Board of Directors for the Southwest Montana Building Industry Association, stated he feels that residents and groups in this area can address the issue of affordable housing collectively. He recognized that the lack of rental units is a definite problem. He noted that since the federal tax laws changed in 1986, by removing the e incentives to provide rental housing, builders are no longer interested in providing that type of housing. He stated that with wages at approximately 88 percent of the national average and the cost of living at 106 percent of the national average, it is difficult to live in Bozeman. Mr. Squire stated he does not believe that the proposed housing trust fund will be effective in addressing the affordable housing issue. He stated that gaining the support of State legislators in statutory changes which create incentives for affordable housing is a better alternative. He stated the work of the Housing Task Force is meaningful and underlines the problem that exists; however, he feels that the solutions lie at the State and federal levels rather than strictly at the local level. Mr. Roger Smith, 2305 Durston Road, stated he recognizes the severe affordable housing shortage problem which Bozeman faces. He stated that to place the entire burden of . providing affordable housing on the builder and the developer is wrong. Since it is a community problem, the solution should affect the entire community. He suggested that a local sales tax would provide a mechanism under which everyone would contribute to a fund for affordable housing. He noted this would be a fairer method of generating revenues to address the issue, since it would impact not only the property owners, but everyone living in Bozeman. 08-08-94 _..n.....__..."...__ -"...--..-..-. .--....- - 26 - Mr. Daniel Silverman, 210 Graf, stated he is in the business of buying homes which are damaged or not completed and then renovating or completing them, after which he either sells or rents the home. He noted that when he did decide to rent a unit, he encountered a substantial amount of interest in the unit. He stated that when pursuing financing for an I income property. one must be able to show the lending institution a good cash flow. He cited the 24-unit apartment complex on South 11 th Avenue as an example of a housing project that could have alleviated some of the rental housing shortage in the community. He also cited other proposed developments in the area which have either not been allowed or which have not developed because of restrictions, stating that those further impact the housing problems in the community. Mr. Silverman noted that the Commissioners are very concerned about the environment and the quality of life in the community; however, those concerns can serve as disincentives to building new residences. He also noted the long approval process that exists under the zone code, which results in the prices of homes going up. Mr. Silverman expressed concern about requiring that a percentage of new homes, e such as 15 percent, be made attordable. He noted that this results in increased costs on the remaining 85 percent of the homes in the development; and that can take what might have been affordable to some residents to an unaffordable level. He then stated that the only way to stop the rise in housing prices is to increase the supply. He encouraged the Commissioners to find ways to encourage developers to construct more homes, rather than discouraging them. He stated that additional homes, in any price range, will help to alleviate the problem of affordable housing, based on the theory of supply and demand. Mr. Guy Graham, builder, addressed the issue of inclusionary zoning. He stated that if 15 percent of those homes are made affordable, the prices of the other houses go up. He noted that this also results in the valuation of those homes increasing, which impacts the sale prices of surrounding homes; and that can impact prices of homes throughout the community I and the valley. Mr. Graham noted that some of the better paying jobs in this valley are in the construction industry. He stated that if these jobs are taken away, the community will face an even larger problem. He recognized that more affordable housing is needed; however, inclusionary zoning will not provide it. 08-08-94 .--..---- - .--.----.--.--...- .-.--.-...-- -- .-- - 27 - Ms. Cindy Bower reviewed the language of several of the Housing Task Force recommendations, suggesting it should be more direct. She then noted the comments which have been forwarded regarding mobile homes as well as the NIMBY factor. She stated that mobile home owners have rights, even when they live in a mobile home park. She noted that I for $30,000 she is able to live in a mobile home; however, she cannot afford to move anywhere else in the area. She noted that the lot rent has increased from $158 five years ago to $225 today; and her house payment is only $138. She then stated that housing practices and rules need to be carefully considered before the Commission promotes mobile home parks. Mr. John Teedy, 316 South 6th Avenue, stated he paid an affordable rate for his home in 1989. He noted that, with the new zoning regulations and emphasis on protecting existing neighborhoods through design review regulations, the property values are strong. He stated that with the new regulations, the builder does not pay the additional costs, but passes them along to the consumer. Also, the homeowner bears the tax burden which results from additional demands on services. Mr. Teedy noted that considerable discussion has revolved around economics and the e issue of supply and demand. He stated that the affordable housing for Bozeman is currently located in Belgrade, Manhattan, Three Forks and Wilsall; and as the problem expands, that housing will be moved further away from Bozeman. He then cited Russ Squire's recent guest column in the Bozeman Daily Chronicle, noting it was very accurate. He then cautioned the Commissioners to keep in mind that the consumer will bear all additional costs which may be encountered in the construction of homes. Ms. Renny Reser, 517 East Davis, stated she has lived in Bozeman for six years. She is a student at MSU and has obtained rental assistance through the Section 8 program for the past five years. She stated that she is a single parent, working three jobs in addition to being a full-time student, and makes $12,000 a year. She has seen her friends forced to move from their apartments because the rent has increased by as much as $200 a month over a year's I time. She stated that, while there has been substantial discussion about builders and the price of lots, there has not been any discussion about the responsibility of property owners and rental property owners. She stated it is difficult to believe that a property owner's expenses can increase from $2,400 to $3,600 a year, thus justifying the increases in rental rates. She noted that at the present time, one-bedroom apartments are renting from $525 to $500 per 08-08-94 - .---..-- ..--.-.---. _.n___._ ____._ ___ ._.._. _._.._.______. .____._n. _.. ._... - 28 - month, and a two-bedroom apartment is around $600. She characterized those rental rates as excessive, and suggested those are issues which should be addressed. S he asked if it would be possible to saturate the area with enough new rental units or other alternatives to make the rates more affordable. I Ms. Reser stated that Bozeman must make a choice on whether it is going to be a community for the rich people who are moving in or if it wishes to remain open to a diversity of people. She encouraged the Commission to consider practical long-term solutions, however, she cautioned that those solutions may not alleviate the problem for as much as ten years. Mr. Don Bachman, 109 North Broadway, stated that he was able to purchase an affordable home in the northeast sector of the community in 1989. He stated that at the present time, there are two homes in that area on the market for over $100,000. He noted that wages in Bozeman are very low; but land prices continue to rise. He stated that with speculation, and people buying land for resale, the costs will only continue to rise; and he feels it is part of the community's responsibility to bring this cycle to a halt. Mr. Bachman suggested that the Housing Task Force be asked to review the issues e of lot rents for mobile homes; and the definition of mobile home or manufactured home. particularly in light of whether that home is on a foundation or wheels. He then suggested that consideration be given to required lot sizes and the possibility of acquiring easements for alleys in new subdivisions, which could allow for smaller lot sizes. He also asked that the minimum size of a home within the various zoning districts be reviewed, noting that a 900-square-foot home is perfectly comfortable. Ms. Brenda Boyd, North Ida, stated she would prefer to see smaller lot sizes allowed, and provided in some of the new subdivisions. She noted that this would allow for better use of the land around the community as well as provide an opportunity for more affordable housing. Mr. Jerry Perkins, Karst Stage, 511 North Wallace Avenue, stated he feels that this I issue needs to be addressed from the federal level down through the state level and then to the local level, rather than being addressed at the local level only. He noted the City's pursuit of impact fees, cautioning that those fees will result in increased costs of development, which is contrary to the City's efforts to address the affordable housing issue. He compared this 08-08-94 ..-..- - -, -- - - --. ., '-- ,-. - 29 - concept with requiring employers to subsidize the costs to its employees, noting that would serve to discourage business growth. Mr. Perkins suggested that providing greater incentives to generate affordable housing be considered, possibly through less restrictions. He noted that Bozeman is an excellent place . to live; however. not everyone can afford to live here. He stated that in the past few months, he has interviewed people from California, Arizona and Denver; however, he has been unable to attract them because of the cost of living in comparison to the salary, particularly because of housing costs. He noted that with the cost of doing business in Bozeman, he does not feel that the builders are making a substantial amount of money on their homes. Mr. Jerry Perkins suggested that tax reform in the state may be a good way to address the issue of affordable housing. He forwarded his position in support of a sales tax to lower the real estate taxes and personal property taxes. He stated that at the present time, because of the costs of utilities, taxes, maintenance and general upkeep, the costs of purchasing a home are extremely high. Mr. Perkins recognized that those living in Bozeman now are paying for the costs of e growth. He emphasized the fact that it is not feasible to address the issue of affordability at the local level only, but stressed the importance of seeking changes at the State level as well. He noted that through a sales tax, or possibly a resort tax, monies could be generated for the purpose of making this a better, more affordable, community in which to live. Ms. Joyce Lee, Fairway Drive, encouraged the Commissioners to be friendly toward manufactured homes, since they can provide affordable housing in an effective and efficient manner. She also encouraged the Commission to pursue monies through the Community Development Block Grant program rather than providing subsidized housing. Mr. Cliff Chisholm, Bozeman resident, noted the importance of distinguishing between talking about affordable housing and those talking about manufactured housing and the social stigma attached to that type of housing. He then noted the Commission will be pressured to , lower the development standards; however, he cautioned the Commissioners to be careful when considering that option. He reminded them that it is their responsibility to consider the long-term health, safety and welfare of the housing stock in Bozeman; and that must be considered even when looking at short-term solutions to the housing crunch. 08-08-94 - - -- - 30- Mr. Chisholm stated that he worked for the HRDC office in Helena dealing with low- income housing and mobile homes. He noted that during that time, he realized that if a building was standing and could serve as a basic shelter, someone was living in it. He cautioned the Commissioners against accepting low standards of construction in the name of a short-term I solution because it leads to long-term sub-standard housing. He suggested that alternatives to be considered could include increased densities in portions of the community, as long as the amenities provided include open space; a decrease in the minimum lot sizes allowed; and a decrease in the minimum square footages for homes within specified zoning districts. Mr. Bob Campbell, Gallatin County Planning Office, stated he was a member of the Housing Task Force. He noted that, previously, he served as a junior planner with the City of Lancaster, California; and there he witnessed a rapid growth pattern as the community grew from 38,000 to 110,000 between 1980 and 1990. He then encouraged the Commission to consider ways to more strongly impact the introduction of affordable units into the market, stating he does not believe the normal law of supply and demand economics will work in the current situation. e Mr. Frank Boschi, 525 Dell Place, stated he is a graduate student at MSU and currently serves on two of the City's boards. He suggested that the types of building materials used should be carefully reviewed, paying particular attention to the fact that the nation's wood supply is dwindling. Mr. Boschi then addressed the issue of impact fees, stating he feels they are very important. He suggested that the City could reserve the option of offering discounts on impact fees to developers who provide affordable housing, as an incentive. Mr. Boschi noted that the issue of affordable housing is one faced not only by this community, but by the State as well. He then stated his concurrence with Mr. Squire's guest column in the Bozeman Daily Chronicle, noting that property tax reform is needed. He then noted that the City must also look at long-term solutions to the problem. He suggested one I option is to encourage businesses to pay a wage which will allow people to purchase homes in this area. Mr. Boschi proposed that mixed residential developments be considered, noting that in several ski communities, multi-million-dollar homes are successfully located next door to rental units without degrading the value of the more expensive home. 08-08-94 - .--.----- ----"._-- .------.." ---..---." - 31 - Ms. Teresa Blackwood, 16 West Olive Street, stated she is a divorced mother of three living in subsidized housing and going to college. She noted that she was on a waiting list for two years for this subsidized housing. Her primary concern was to obtain a basic, safe, secure place for her and her family, not necessarily one with amenities. She stated that the idea of . basic economics does not always work in rental housing, and suggested that more incentives are needed to ensure that a reasonable rental rate is established. She reminded the Commission that in this community, 57 percent of the dwelling units are rentals; and most renters are simply seeking a safe place to live, not a fancy place. Ms. Daylene Sitzman stated she works with the Section 8 program through HRDC. She stated that, as a single mother, she is living in a garage because the cost of a rental in this community is one-half of her income. She indicated that she receives numerous telephone calls everyday from people who are looking for affordable housing in this community; and the supply is not adequate. She noted there are people in Bozeman at the present time who have resided in this area all of their lives but are now homeless because of the high rents, which keep increasing at a dramatic rate. She encouraged the Housing Task Force and the City e Commission to pursue ways to help address the affordable housing issues, providing incentives . that will allow the HRDC to help those people who are trying to help themselves. Rev. John Plummer, Interfaith Housing, noted that he has carefully looked at the housing situation in Bozeman, and his observation is that targeting the low-income rental market in Bozeman is the key issue to be addressed. He suggested that state and federal tax incentives could encourage developers and builders to provide more affordable housing. Also, if the cost of land could be reduced, or if affordable units could be constructed on City land, then more affordable units could be provided. He noted this could possibly be accomplished through the use of CDBG grant monies. He also suggested that if the Montana Board of Housing program is expanded, it is possible that monies could be obtained through that source as well to help reduce the costs of providing affordable housing in the community. I Mr. Michael Garrity, Garrity Homes, stated he owns another company which sells manufactured homes. He noted that the change in the tax act in 1986 negatively impacted rental housing. He also noted that problems are encountered in trying to obtain bank financing, both in the form of construction loans as well as permanent financing, for rental housing. He noted that, while financing for single-family homes can be obtained, financing for larger 08-08-94 - 32 - apartment complexes and manufactured rental housing communities is extremely difficult, often because of capital and cash flow projections. Mr. Garrity then encouraged the City to pursue funding alternatives through the State, in an effort to generate monies for affordable housing projects in the community. He I emphasized the importance of increasing the supply of housing in Bozeman. He noted that most of the duplexes, tri-plexes and four-plexes which have been constructed in Bozeman in the last five or six years have not gone into the rental market, but have been sold as condominiums or townhouses. He stated that encouraging larger apartment projects seems to be a good way to increase the rental stock. Ms. Marie Grant noted that the average pay in Bozeman is about $34,000; and those people cannot afford to purchase a $100,000 home. She then asked where the monies will come from to establish the proposed housing fund, and whether it will be generated through increasing taxes. She noted that the concept is good, particularly if those monies can be used to help generate affordable housing. She also noted that, because of zoning restrictions, it is not possible to build the type of housing that would provide affordable units in some areas of e the community. . Ms. Grant stated that, at the present time, she has a friend living in the garage because she cannot afford another place. She then suggested that ways to address the affordable housing issue include: increasing the wages; loosening some of the zoning restrictions; and offering incentives to those property owners who rent their units at an affordable rate, Le., tax breaks. Mayor Vincent closed the town meeting and public hearing, thanking those who attended and provided input. He stated the Commissioners will carefully consider the public comment as they review each of the recommendations forwarded by the Housing Task Force. He assured those in attendance that the Commission recognizes the problem, as well as its complexities. I Adiournment - 9:45 p.m. There being no further business to come before the Commission at this time, it was moved by Commissioner Stiff, seconded by Commissioner Stueck, that the meeting be adjourned. The motion carried by the following Aye and No vote: those voting Aye being 08-08-94 -..-.------- .;c,~"---- " -,._-,'............... .:t~ "1i:;;i"..~,:', .,,:',~":~':':*'<~~."":<,~:'-.:-:,~.~':'~~~:\~~~:: - 33 - Commissioner Stiff, Commissioner Stueck, Commissioner Frost, Commissioner Youngman and Mayor Vincent; those voting No, none. I ATTEST: ........,. J r2L: 0/ ~U~ ROBIN L. SULLIVAN Clerk of the Commission e I 08-08-94