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HomeMy WebLinkAbout1992-12-07 ccm __.u... _ __ ...._.. , ~.- - , MINUTES OF THE MEETING OF THE CITY COMMISSION BOlEMAN, MONTANA December 7, 1992 ******************** ********* . The Commission of the City of Bozeman met in regular session in the Commission Room, Municipal Building, December 7, 1992, at 3:30 p.m. Present were Mayor Swanson, Commissioner Frost, Commissioner Stiff, Commissioner Vincent, Commissioner Knapp, 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 - November 30. 1992 It was moved by Commissioner Frost, seconded by Commissioner Stiff, that the minutes of the regular meeting of November 30, 1992, be approved as amended. The motion carried by a the following Aye and No vote: those voting Aye being Commissioner Frost, Commissioner Stiff, ~ Commissioner Vincent, Commissioner Knapp and Mayor Swanson; those voting No, none. Staff reDort - summary of Vallev Unit Subdivision auction sales of lots and redemDtions of delinauent assessments City Manager Wysocki noted that, included in the Commissioners' packets, was a memo from Administrative Services Director Gamradt, dated December 3, 1992, forwarding the summary, along with a summary sheet for each of the auction sales and an overall summary sheet. Mayor Swanson noted that the memo sets forth several different issues and questions. He suggested that, given the length of today's meeting, the Commission limit the bulk of its discussion and decision making to the issue of whether the outstanding principal and interest at . December 31 should be called, with possibly a brief overview on the issue of how the excess monies realized from payment of outstanding assessments and loans should be handled. He suggested that full discussion and a decision on this item be placed on the December 21 agenda. The City Manager distributed to the Commissioners a listing of possible capital projects and purchases that could be accommodated through these monies; the Mayor asked that this 12-07.92 --- - , ---- .;;.;= ...." ~ 2 - information be considered at the December 21 meeting as well. Administrative Services Director Miral Gamradt reviewed the contents of his memo. He informed the Commission that the November 4 auction sale of lots was the last tax deed sale needed in that subdivision, since they were the only lots not in private ownership and current on . assessments as of that date. He noted that through these auction sales, the City has sold 138 lots for a total dollar value of $3.2 million, while the total against those lots was $4.9 million. He noted that this resulted in a $1.7 million loss on the total amount of outstanding debt. The Director then provided a brief history of the subdivision, and the special assessment districts which were created approximately twelve years ago. He reminded the Commission that in Fiscal Year 1987, the City Commission made a decision to create a special mill levy in an amount that would support interest payments and calling of scheduled bonds for those five special assessments. He conveyed that at that time, approximately 10 percent of the 300-acre subdivision was in private ownership; and they could not cover the high debt. The Director noted that during that period of time, the City approached the Legislature on two occasions and succeeded in decreasing the redemption period for delinquent assessments on .undeveloped land from 36 months to 18 months (which was subsequently amended back up to 24 months), as well as the authority for a municipal government to sell lots at auction. Director Gamradt noted that when the Commission initially implemented the special mill levy, it was anticipated that the number of mills would slowly decrease until approximately the year 2001, when the bonds are finally retired. He pointed out, however, that due to the recent rebound in the community's real estate market and the steep increase in the sale of lots, the mill levy has dropped to zero mills for this fiscal year. He also noted that the value of the lots has increased substantially. He stated that two of the lots failed to sell for the market value of $2,900 at the second sale; however, since that time, the value of the lots has increased, with a lot, including the outstanding SID's, now averaging $17,000 to $19,000. The Administrative Services Director stated that at January 1, 1993, the accrued interest .,and total outstanding bonds for the five Valley Unit Subdivision special improvement districts will be $854,793. He also noted that at the same time, the City will have approximately $2.6 million (over a period of eight years) in outstanding assessments receivables for those five funds. He suggested that it would be economically beneficial to retire all of the remaining bonds, which are at a net effective interest rate of 8.25 percent, noting this will not preclude the need for the owners 12-07-92 ---- .. - .----.-... - 3 - of property within those districts to continue paying the assessments at the rate of 8.75 percent for the next eight years. He commented that at the present time, the City is earning approximately 3 percent on its investments. Responding to questions from the Mayor, the Director stated that the interest rate billed .... on the assessment can be adjusted if the bonds are refinanced at a lower interest rate. He stated, .,., however, that he is not aware of any other situation where that interest rate can be lowered. He then stated that the law allows a municipality to assess Y2 percent higher than the bond rate, as a way of recapturing some of the administrative costs incurred in administering SID's. Responding to Commissioner Knapp, the Director indicated that the loans on the lots sold at auction sale are at the rate of 7 or 8 percent, with some having an option to be lowered to 5 percent if constructed upon within a year; and they range in length from two to five years. He stated that because of the volatility of the interest rates, he did not attempt to calculate how much additional revenues that would create. Commissioner Stiff asked if the General Fund could pay the bonds off early, rather than taking monies from the SID fund. .- The Director responded that the General Fund cannot make such payments; rather, the special assessments are spread into the appropriate SID Funds. He noted that when all of the debt for that district is finally retired, any remaining balance may be transferred to the SID Revolving Loan Fund, as authorized by State statute. He then noted that after the SID Revolving Loan Fund has reached a balance greater than 5 percent of the remaining outstanding bonds for all of the districts, the Commission may, at its discretion, transfer all or a portion of that overage to the General Fund. He stated that under the staff recommendation, this could occur on an annual basis, after the assessments have been paid, depending upon the monies available. He cautioned the Commission that the asset is in a "receivables" status over the next eight years, rather than being represented in the "cash on hand". He noted that one of the new owners has nearly $1 million in .Iots; and any delinquency in assessments or loan payment could result in problems if the City were to treat the asset as cash. Commissioner Stiff stated that, while the proposal is based on good financial reasoning and is well thought out, he has problems with it. He noted it appears that the City wishes to continue using the taxpayers' money for another eight and one-half years instead of beginning to return it as soon as possible. He suggested that, instead of retiring the outstanding bonds, they 12-07-92 ____._n_ -..-.-... ...- -.- - 4 - should be allowed to retire as the rate of assessment collection allows, with the existing excess monies being used to reduce the outstanding general obligation debt, or possibly to begin implementation of the projects contained in the transportation plan update. He maintained, however, that the monies should not be used for new government or new reserves. . The Administrative Services Director noted that the recommendation forwarded to the Commission is based on the premise of cost avoidance, which is a strong principle in finance. The City Manager also noted that this cost avoidance will help to decrease the amount of monies which the City and its residents actually lost in subsidizing the Valley Unit Subdivision SID bonds. He further suggested that if those monies were utilized to acquire capital items which will be needed within the next few years, the City could realize the benefits of cost avoidance in the inflationary factor. Responding to Commissioner Frost, the Director stated that if the City retires the bonds now, it will save the 8.25-percent interest only once. Responding to Mayor Swanson, the Director stated that, while the possibility of establishing a policy to ensure that no efforts are made to expend or disburse the excess monies .until after all debt has been retired has been discussed on several different occasions, it is not an issue that has been addressed by the whole Commission at any of its regular sessions. Commissioner Knapp added she feels it is imperative that monies are not expended before they are collected. She then stated support for the recommendation forwarded by staff. Responding to Commissioner Stiff, Administrative Services Director Gamradt estimated that approximately $200,000 in special assessments and payments on loans will be due and payable each year; and at that rate, all of the bonds could be paid with those annual revenues over a period of probably four years. Commissioner Stiff stated he feels the public should be given an opportunity to voice its comments on this item. He suggested that the decision to payoff the bonds not be made at this . time. but that it be delayed until the July 1 bond call, with a public hearing to be held before the decision. He stated that if a majority of those who speak support paying off the bonds, he will defer to that attitude. Commissioner Frost stated he feels that the taxpayers should get their money back as quickly as possible, noting the question is how that could best occur. He then suggested the desirability of eliminating interest payments whenever possible; and it seems to be in the best 12-07-92 . - --- - 5 - interest of the City and the taxpayers to do so in this instance. It was moved by Commissioner Stiff, seconded by Commissioner Vincent, that the Commission not consider retirement of the outstanding bonds at January 1, but hold a public hearing to receive input from the community prior to making a decision prior to the July 1, 1993 Abond call. The motion failed by the following Aye and No vote: those voting Aye being ~ Commissioner Stiff; those voting No being Commissioner Vincent, Commissioner Knapp, Commissioner Frost and Mayor Swanson. Commissioner Vincent stated that, while he would normally be receptive to receiving public input prior to the decision, he feels that in this instance it is preferable to make a decision that is financially sound rather than delaying the decision. Commissioner Knapp and Commissioner Frost each noted the importance of paying off indebtedness and saving the interest payments, particularly since the monies are available. It was moved by Commissioner Vincent, seconded by Commissioner Knapp, that the Commission authorize and direct staff to call all outstanding bonds for the five special improvement districts in Valley Unit Subdivision at December 31, 1992. The motion carried by the following Aye .and No vote: those voting Aye being Commissioner Vincent, Commissioner Knapp, Commissioner Frost and Mayor Swanson; those voting No being Commissioner Stiff. At the Mayor's request, Administrative Services Director briefly highlighted the four options he has identified in his memo for distribution of the monies not needed to call the bonds and pay the interest. He noted those monies may be returned to the taxpayers in a number of ways, including: 1. Make refunds through the reduction of future general fund mill levies. This could create a problem in the future, since the general fund levy may only be increased 5% each year. An alternative would be to lower the levies for the special revenue funds, which are not subject to the 5 % rule, with monies then being transferred from the general fund to those specific funds to cover their operating costs. . 2. Cash refunds on an annual basis as the assessments are received. This would be extremely difficult to do, and would involve a substantial amount of administrative time and cost. 3. Use the City's general fund cash flow to make partial refunds at this time, with proceeds from future assessments being used to repay the general fund. 12-07-92 ...--..--...-..--- .-..-.-.-.-.--.-.---.----- - 6 - This option carries with it a potential for default, particularly since one property owner has nearly $1 million worth of property. If an owner defaults, the City can proceed with another auction sale of the property; however, there is no guarantee it would receive the same price for the parcel a second time. . 4. Return the funds to the property taxpayers through city-wide capital public projects. These projects would be done as monies become available, making sure that at least a portion of those capital improvements will benefit everyone in the community. Mayor Swanson stated that the new Comprehensive Annual Financial Report for the City reflects the strong cyclical character of construction within the community. He noted that the community is now at the height of its building construction cycle; and if it follows the typical cycle, that will dramatically drop over the next few years. He suggested that special attention to that cycle should be taken into consideration, to ensure that the City makes wise financial decisions. The Mayor then asked the Commissioners to review the information forwarded by the Director and the list of capital projects forwarded by the City Manager, in anticipation of further . discussion at the December 21 meeting. Commission Resolution No. 2895 . statinG the City's intent to imDlement a 9.5-Dercent increase in waste water (sewer) rates and ordering the DubUc hearinG date City Manager Wysocki presented Commission Resolution No. 2895, as approved by the City Attorney, entitled: COMMISSION RESOLUTION NO. 2895 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, ORDERING A PUBLIC HEARING BE HELD ON A PROPOSED NINE AND ONE-HALF PERCENT (9.5%) INCREASE IN THE WASTE WATER (SEWER) RATE CHARGED TO CUSTOMERS OF THE MUNICIPAL WASTE WATER (SEWER) SYSTEM. The City Manager briefly reviewed the capital projects summary for the next five years, . which was distributed in the November 23 packet. He then reviewed the breakdown of the proposed 9. 5-percent increase, noting that 1 percent increase will result in approximately $11,740 of additional revenue. He also noted the average residential sewer bill is $4 per month; and this 9.5-percent increase would result in an additional 76C per month. It was moved by Commissioner Knapp, seconded by Commissioner Frost, that the Commission adopt Commission Resolution No. 2895, stating the City's intent to implement a 9.5- 12-07-92 _._.____n_._. ..._.___ .... .__..__._ - ._.uo__ -.--.. -. . _n _ - 7 - percent increase in the waste water (sewer) rates, and setting the public hearing for Tuesday, January 19, 1993. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Knapp, Commissioner Frost, Commissioner Stiff, Commissioner Vincent and Mayor Swanson; those voting No, none. e Break - 4:40 to 4:45 D.m. Mayor Swanson declared a break from 4:40 p.m. to 4:45 p.m., in accordance with Commission policy established at their regular meeting of March 14, 1983. Ordinance No. 1357 - acceDtina the dedication to DubUc use of Fieldstone Drive for a DubUc street City Manager Wysocki presented Ordinance No. 1357, as prepared by the City Attorney, entitled: ORDINANCE NO. 1357 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, ACCEPTING THE DEDICATION TO PUBLIC USE OF FIELDSTONE DRIVE TO THE CITY OF BOZEMAN, MONTANA, FOR A PUBLIC STREET. . The City Manager reminded the Commissioners that they had provisionally adopted this ordinance at their regular meeting of November 23, and recommended that it be finally adopted at this time. It was moved by Commissioner Frost, seconded by Commissioner Stiff, that the Commission finally adopt Ordinance No. 1357, accepting dedication of Fieldstone Drive to the City as a public street. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Frost, Commissioner Stiff, Commissioner Vincent, Commissioner Knapp and Mayor Swanson; those voting No, none. Discussion - FYI Items eitems. City Manager Wysocki presented to the Commission the following "For Your Information" (1 ) Timeline for implementation of a rate change for the waste water fund. (2) Copy of a letter to the Planning Board, dated November 22, signed by several residents in the South 6th Avenue/West Harrison Street area regarding the proposed closure of West Cleveland Street between South 6th Avenue and South 11 th Avenue. 12-07-92 -----..- .-.---..-.- - 8 - (3) Copy of an article in the Smithsonian entitled "It's wake-up time for Main Street when Wal-Mart comes to town", as submitted by Commissioner Knapp. (4) Agenda for the Design Review Board meeting held on December 1 and the meeting to be held at 4:00 p.m. on Tuesday, December 8, at the Carnegie Building. . (5) Agenda for the Development Review Committee meeting to be held at 10:00 a.m. on Tuesday, December 8, at the Carnegie Building. (6) Agenda for the special City-County Planning Board meeting to be held at 7:00 p.m on Tuesday, December 8, in the Commission Room. (7) Agenda for the County Commission meeting to be held at 1 :30 p.m. on Tuesday, December 8, at the County Courthouse. (8) Notice of the Chamber of Commerce Governmental Affairs Committee meeting scheduled for 7:30 a.m. on Thursday, December 10, at Security Title. (9) The City Manager submitted his weekly report, as follows. (1) He, Director of Public Service Forbes and representatives from the County attended the Highway Commission meeting in Helena on Friday. He noted there is another meeting scheduled for this Friday in Helena eta further discuss the North 19th Avenue interchange. (2) Noted the Christmas Stroll was quieter this year, probably because of the cold weather. (3) Stated he is seeking an intern from the MSU College of Business to work with the City and the Gallatin Development Corporation on producing newsletters, possibly for some college credits. (4) Noted that the City has received its three new Chevy Lumina police cars, which should be in service later this week. (5) Announced that the City has received the audit report for Fiscal Year 1992. He noted that the Audit Committee will meet next Monday to review the document with the auditors; and it will be presented at next week's Commission meeting for acceptance. (6) Announced that City crews are beginning ice rink preparation, in anticipation of the Christmas break. (7) Stated that City crews are doing alley clean- up whenever possible. (8) Stated that the Historic Preservation Office has applied to the National e Endowment of the Arts for monies for the Fourth Avenue Linear Park project. (9) Announced that the Interagency Breakfast is scheduled for 7:00 a.m. on Wednesday, December 9, at the Baxter. (10) Commissioner Stiff noted that he attended last week's Planning Board meeting, to better prepare for those items which will also be coming to the Commission for action. (11 ) Commissioner Frost indicated his intent to forward his report on the NLC Congress of Cities, held in New Orleans, in bits and pieces. He stated that he attended two 12-07-92 - - 9 - workshops on downtowns. He noted that in one of those workshops, the speaker suggested that any piece of ground not built upon is open space. He noted that the importance of site design for the entire parcel, including the building, is extremely important. The Commissioner noted that in the other presentation, the communities of Flint, . Michigan; Alvin, Texas; Middletown, Ohio; and Thousand Oaks, California were reviewed. He noted that those communities were faced with a high vacancy rate in the downtown area, and some of the older historic structures deteriorating to the point that they were being demolished. He noted that many mega projects have been tried and failed; and the importance of smaller, successful projects was emphasized. (12) Commissioner Knapp submitted the following. (1) Served on the committee which interviewed three architectural firms for the expansion of the Senior Center. She noted that the committee did select a firm; and negotiations are in process with that firm. (2) Walked the Story Mill Trail that is currently being considered. (3) Asked if anyone plans to attend the meeting to discuss year round school; Commissioner Vincent indicated he will try to attend. (13) City Attorney Luwe noted the Wal-Mart appeal, and the number of comments A which staff and the Commissioners have been receiving about the Planning Board's decision. He ..., reminded the Commission of the difference between an appeal and a public hearing. He cautioned that the decision on an appeal must be based on the Planning Board's record, which includes the minutes of the meeting, exhibits and relevant ordinance provisions. He encouraged the Commissioners to handle the mail and telephone calls they receive in the manner with which they are comfortable; however, he reminded them that the information may not be taken into consideration when making a decision on the appeal. The City Attorney then reviewed the procedure for considering the appeal, as set forth in the zoning ordinance, noting that it provides for a staff report, a presentation by the appellant and testimony from any aggrieved persons in support of or in opposition to the appellant. He further . noted that the ordinance defines "aggrieved person"; and the general pUblic does not fit into that definition. He then indicated that the definition of "aggrieved person" will be provided to the Commission prior to next week's meeting; and, as City Attorney, he will forward his recommendation to the Mayor on whether an individual qualifies as an aggrieved party during the appeal process. 12-07-92 --.----.------ ...- - ----- -- - 10 - The City Attorney reminded the Commission that its decision options are to uphold, overturn or modify the Planning Board's decision. Mayor Swanson noted the possibility of needing to relocate the meeting because of the potential number of people who may wish to attend. He then suggested that care be taken to aensure that adequate microphones are available. .,., (14) City Attorney Luwe then submitted the following. (1) Distributed an ordinance to adopt the zone code amendments which will be considered in this evening's public hearing. He noted that this ordinance will probably be considered at the next meeting after the decision is made on the amendments, and will include any revisions which are made during the hearing and decision- making processes. (2) Noted the tendency of attorneys to sue between now and the end of the year. He reminded the Commissioners of the time limits which begin with service, and encouraged them to call him immediately if served. ( 15) Clerk of the Commission Sullivan submitted the following. (1) Reminded the Commissioners that their evaluations of the City Manager are due in her office today. (2) Announced that her new full-time assistant, Brenda Statton, will begin next Monday. She noted .that Brenda has worked for the City for the past six months, with her major duties being receptionist and switchboard operator. (16) Mayor Swanson distributed to the Commissioners a handout from the visitors rec center at Breckenridge, Colorado. He noted that the rec center is available for those who don't wish to ski, and is enjoying great success. ( 17) Mayor Swanson gave a brief report on the conference he attended in Providence, Rhode Island, late last week. He noted what some of the other communities are doing, and how they are doing it. He noted that one community uses its trails as a revenue source, through user fees and easement fees, generating a total of $395,000 in revenues in a year. The Mayor stated that he spent two dinners and one lunch with legal counsel for the rails .to trails program, in an attempt to garner as much information as possible. He noted that one proposal that has been considered is a trail that extends from Gardiner to Couer d' Alene, Idaho. I The Mayor then distributed brochures on ISTEA to the Commissioners, noting it is the most comprehensive and understandable summary of that bill that he has seen. 12-07-92 . . - 11 - Consent Items City Manager Wysocki presented to the Commission the following Consent Items. Commission Resolution No. 2896 ~ intent to annex 14.147~acre tract located in the NE% of Section 1. T2S. R5E. MPM (south of 1~90. east of North ~ 7th Avenue. and north of West Oak Street) ,., COMMISSION RESOLUTION NO. 2896 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONT ANA, DECLARING IT TO BE THE INTENTION OF THE CITY OF BOZEMAN, THE INHABIT ANTS THEREOF AND THE INHABIT ANTS OF A TRACT OF LAND CONTIGUOUS TO SAID CITY OF BOZEMAN, AND HEREIN MORE PARTICULARL Y DESCRIBED, TO EXTEND THE BOUNDARIES OF SAID CITY OF BOZEMAN SO AS TO INCLUDE SAID CONTIGUOUS TRACT WITHIN THE CORPORATE LIMITS THEREOF. Commission Resolution No. 2897 ~ certifyina delinauent annual and semi~annual assessments as of November 30 to the County COMMISSION RESOLUTION NO. 2897 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, DECLARING ANNUAL AND SEMI-ANNUAL SPECIAL ASSESSMENT INSTALLMENTS DUE AND PAYABLE NOVEMBER 30, 1992, AND UNPAID AS OF THAT DATE, DELINQUENT, PURSUANT TO SECTION 7~12~4183, . MONTANA CODE ANNOTATED, AND AS PROVIDED BY CHAPTERS 2.32 AND 3.04 OF THE BOZEMAN MUNICIPAL CODE, AND DIRECTING THE DIRECTOR OF FINANCE TO CERTIFY THE SAME TO THE GALLATIN COUNTY TREASURER FOR COLLECTION. Deviation from Section 18.50.070 of the Bozeman Zonina Ordinance to allow an 8DDroximatelv 9~foot hiah "stick" fence Instead of the allowed 4- foot high fence in the front yard ~ Jim Barnabv. 716 East Peach Street: Der DRB recommendation Authorize City Manager to sian ~ Sewer and Water PiDeline and Access Easement and Agreement ~ Ken LeClair for SDruce Meadows Condos ~ Lots 1. 2. 3. 8. 9 and 10. Block 14. Vallev Unit Subdivision Claims It was moved by Commissioner Stiff, seconded by Commissioner Vincent, that the Commission approve the Consent Items as listed, and authorize and direct the appropriate persons to complete the necessary actions. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Stiff, Commissioner Vincent, Commissioner Knapp, Commissioner .Frost and Mayor Swanson; those voting No, none. Recess - 5:25 D.m. Mayor Swanson declared a recess at 5:25 p.m., to reconvene at 7:00 p.m. for the purpose of conducting the scheduled public hearing. 12-07-92 ..................--.....-- - 12 - Reconvene - 7:00 D.m. Mayor Swanson reconvened the meeting at 7:00 p.m., for the purpose of conducting the scheduled public hearing. .PUbliC hearing - proposed revisions to the zoning ordinance es initieted by the City Commission and the City-County Plannina Board This was the time and place set for the public hearing on the proposed revisions to the zoning ordinance as initiated by the City Commission and the City-County Planning Board, and as contained in Application No. Z-92140. Mayor Swanson opened the public hearing. Planning Director Andy Epple presented the staff report. He noted that its meeting held two weeks ago, the Planning Board conducted its public hearing on several proposed zone code amendments which were initiated by the City Commission and the Planning Board. He reminded the Commission that some of these amendments are the result of comments received during the 90-day review period on the zoning ordinance which have not been addressed to date. The Director stated that these proposed amendments, as forwarded by the Planning Board . under Resolution No. Z -92140, are in substantial compliance with the master plan and advance the goals and objectives contained in that document as well as the zoning ordinance itself. The Planning Director stated that during its review of the proposed amendments, as contained in his staff report, the Planning Board made several changes and deletions. He highlighted those changes, which include deletion of the proposal to establish a 1 AOO-square-foot cap on homes in the R-2A zoning district. He noted this change had been contemplated as a possible method of assuring the development of housing to accommodate moderate-income residents; however, it was determined atter receiving public input that, while the intent is commendable, this approach may need further review and consideration. He noted that public testimony before the Planning Board also addressed storage areas and the improvements required; .nd a proposal to establish guidelines for determining under what conditions development of a site partially lying within an entryway overlay corridor would be required to go through full review. Planning Director Epple then reviewed his memo dated December 7, which was distributed just prior to this public hearing. He stated that the first portion of the memo addresses some typographical errors contained in the Planning Board resolution forwarded to the Commission; and 12-07-92 - - 13 - the second portion of the memo forwards some comments from the Southwest Montana Building Industry Association, pertaining to lot width and building height. He noted that under the proposed revisions, a minimum lot width of 150 feet for clustered residential development in an A-S zone would be established. He stated that the Building Industry Association is concerned that this ,arequirement could make the lot sizes quite large, resulting in inefficiencies. He commented that to ~ address this concern, staff would suggest revising this amendment to allow for a 100-foot minimum lot width on lots which are serviced by central water and sewer services. The Director then addressed the issue of building height in the various zoning districts. He stated that this proposed amendment was forwarded to establish a more readily understandable and usable method of determining building height. He informed the Commission that under the present method, the building height is established at the imaginary mean line between the ridge and the eave to an imaginary point on the ground which represents the average elevation within twenty feet of the footprint of the building. He noted this is a very complicated and subjective way to determine the height of a structure, particularly when multiple ridgelines are involved or when a very uneven or sloping lot is involved. ~ Director Epple stated that in an effort to address this issue, staff contacted various ......,. communities to find how the height of a structure is determined; and it was noted that the City of Billings has a straight forward method that seems to work well. He mentioned that the method involves measuring from the ridgeline to the ground. He noted that staff recognized the need to increase the height of structures allowed if this method were implemented; therefore, six feet was added to the previous building heights for the various zoning districts. He stated that in most residential zoning districts, this increased the height from 24 to 30 feet; and allowances for sloping lots has been considered in the formula for determining that height. He then reminded the Commission that the purpose of the height limitations is to ensure that one house does not excessively shadow a neighboring home, or impinge on its adequate air and open space. The Director stated that the Southwest Montana Building Industry Association has . expressed its concerns and reservations about this proposed amendment, citing examples of new homes which could not have been constructed under this revision. Director Epple then gave a slide presentation on buildings, both in the historic districts and in the new areas of town, indicating which would comply with the new amendment and which would not. He also referred to plans for three houses which were recently constructed, noting that 12-07-92 -.- .. -.-.-..--..---.....-.... - -.---... - 14 - two of them would comply with the amendment while one would be three feet too tall. Planning Director Epple stated that under another revision, the definition of "personal use airfield" is slightly revised; and "heliports" are deleted. He noted that heliports will still be allowed within the zoning jurisdiction, but only as accessory uses, such as to hospitals. . Director Epple then highlighted another section which is to be revised under the proposed amendments; and that is the criteria for planned unit developments. He noted that these revisions will help to bring the planned unit development review process into compliance with the master plan; remove contradictions in the planned unit development process for residential developments; limit the kind of commercial activity that could occur in a residential PUD; and establish allowable densities by zoning districts, providing for density bonus of up to 30 percent under specified circumstances. Responding to questions from Commissioner Frost, the Planning Director noted that in most processes set forth in the zone code, the Zoning Administrator makes the first determination, with the applicant having the right to appeal that determination to the Board of Adjustment. He then noted that the classification of use section of the zone code has provided that the Commission . make the initial determination in the past. The Planning Director then indicated that, even under the current "powers and duties" section of the zone code, the DRB has the right to review the size of the parking lot and the landscaping provided, to ensure that a "sea of asphalt" is not created. Mayor Swanson noted the Commission's decision to require street trees along Lindley Park, to comply with its own zoning regulations, despite strong neighborhood opposition. He continued that one of the revisions to the zone code stipulates that the City will follow its own rules when developing its own property, which he strongly supports. The Planning Director then responded to questions from Commissioner Frost, indicating that the language referring to "agricultural lands" under Section 18.10.010 on Page 5 of the . amendments was taken directly from the master plan. He stated that the purpose of this language is to ensure that residential development occurs in the rural residential nodes, while protecting agricultural lands. Mr. Ed Driscoll, 206 West Lamme Street, addressed the proposed 150-foot minimum lot frontage in the AS and RS zoning districts. He suggested that such a requirement could result in larger lots than intended, particularly in areas where the City wishes to promote clustered 12-07-92 . ... ...-.-.... ---..-. - 15 - development through utilization of central water and sewer systems. Mr. Driscoll then addressed the issue of height restrictions, submitting schematics of two options for structures designed under this amendment. He noted that if a 12: 12 pitch roof were utilized, it could result in an 18-foot-wide building, or if a daylight basement were utilized, the .structure would be 10 feet 6 inches wide. He feels this amendment is much too restrictive, although he does understand staff's desire to find a method of determining height that is easier to administer. He suggested that the Commission not implement this amendment at this time, but allow the staff time to work with people in the industry to develop a height restriction and method of determining height that is acceptable to everyone involved. He reminded the Commission that the City has indicated an interest in promoting steep pitched roofs on new structures, as evidenced by language in the zone code and design objective plans; however, the proposed height restrictions could lead away from those rooflines. Mr. Driscoll then showed the Commission photos of his home, what has a full basement and two full stories, with a 12:12 pitch roof, noting that it exceeds the proposed building height restrictions. He also showed the Commission photos of a home which he recently finished within A the jurisdictional area that appears to be a one-story structure from the roadway would actually ..., exceed the height restrictions by three feet. Mr. Driscoll explained that many of the homes within the historic districts could not be constructed under the proposed height restrictions. He stated, however, that with tall mature vegetation around them, they are attractive and do not seem to be too tall. He then reiterated his concern that the proposed amendments are too restrictive and encouraged the Commission to allow staff to work with the industry to develop a more workable solution. Mr. Bill Phillips, 1629 South Church Avenue, stated he has been contemplating the construction of a bed and breakfast on the nine acres at the back of his property on South Church Avenue. He expressed concern that under the proposed amendments such a use would not be allowed, but higher density residential development would be. . Mayor Swanson encouraged Mr. Phillips to talk to the Planning staff directly, finding out how his property is zoned and then determining what uses would be allowed on his property. Mr. Jeff Downhour, 1408 South Bozeman Avenue, expressed concern about the proposed height restrictions. He stated he is not as concerned with the wording of the revision as with the interpretation of the determination of the eave line. He also implied that this language conflicts 12-07-92 ------- .- - 16 - with the language on Page 21 of the design objective plans, which encourages pitched roofs at a 12: 12 pitch. He suggested that, rather than creating less obtrusive structures, this revision could actually result in flatter roof shapes and greater visual impact. He then noted the pitched roofs found in the historic districts and the attractiveness of those tall structures. . Mr. Downhour stated he does not have any objections to limiting the height of residential structures; however, he expressed concern about the flatter roofs that will result from the language of the proposed amendment. Mr. Keith Swenson, 603 South Willson Avenue, forwarded comments about several of the proposed amendments, noting those comments are based on the initial staff report rather than on the resolution adopted by the Planning Board. He addressed the issue of bed and breakfasts, questioning why they must be located in owner-occupied, single-family dwellings. He raised the fact that in many cities, bed and breakfasts have been successfully located in old commercial structures. He also questioned why the structures must be owner-occupied, noting there are many examples around the country of successful bed and breakfasts which are not. He also suggested that the zoning districts in which these facilities can be located should be expanded, to allow them . as a principal use in the R-3 and R-4 districts rather than as a conditional use, and to allow them in the B-2, B-3, A-S and R-S districts as a conditional use. He stated that this change would allow property owners to generate income from their properties, and provide for more effective use of land and buildings. Mr. Swenson then addressed the proposed revision to Section 18.06.040, pertaining to boundary interpretation guidelines. He noted that the first portion of that section provides that if a lot is divided by a zoning district boundary, the entire lot shall be controlled by the more restrictive zone. He expressed concern with this concept, suggesting that the subject zoning be allowed to control the development of the specific portion of the site. He then suggested that the second portion of this section, which pertains to applying overlay district requirements to only that .portion of a site lying within an overlay district, should be addressed by the Design Review Board. Mr. Swenson next addressed the proposed amendment to Section 18.08.020. He suggested that this section pertain to all pUblic lands in the city, including those owned by the School District, County and State, and that it be amended to require compliance with the State statute provision that any development of public lands be subjected to public review before the Board of Adjustment. He noted that compliance with this section of the State statutes may, in 12-07-92 - __... n__ - 17 - some instances, be contrary to the zoning ordinance requirements. Mr. Keith Swenson addressed some of the proposed changes in Section 18.12, noting several amendments have been proposed in the R-S zoning district. He reminded the Commission that many of the changes have been made to reflect language from the master plan; however, he ~ . is concerned that the language will actually result in development just outside the city limits. _ Mr. Swenson spent a considerable amount of time addressing the building height issue. He cited the concepts held by a pair of world renowned planners who have developed a height-to- width theory for determining building height. He read from an article forwarding this concept, which provides for a 1 to 1 ratio. He stated that under this concept, if a street is 60 feet wide with 25-foot setbacks on each side, buildings along each side of the street could be 110 feet tall. He cautioned that specific criteria involving height and width of structures must also accompany this formula. Mr. Swenson then noted that his house on South Willson Avenue is 34 feet high, which exceeds the height allowed under the proposed amendment. He suggested that higher height limits are needed, to ensure that the desired roof pitches and innovative rooflines can continue to be . utilized in new construction. Mr. Keith Swenson then addressed the issue of minimum floor areas in the various zoning districts. He noted the original intent of the R-3a zoning district, which was to allow multiple use of the property, not just principal buildings. He noted, however, that allowing apartments in garages or carriage houses is not allowed under the code; and that was the original intent of this section of the code. He then encouraged the Commission to change the code to allow for this use. Mr. Swenson then questioned the four-unit limit on principal uses in the R-4 zoning district, and why that is a magic number. Mr. Keith Swenson continued by addressing the issue of the Design Review Board and its functions. He recommended that Section 18.43.040 be amended to include "site design" under . the role of the DRB. He noted that this will allow the DRB to review the design for excellence in context of the whole, rather than trying to separate it out. Mr. Swenson then suggested that Section 18.43.050.B. be revised to refer back to the new definition for "alteration and light construction", and make this section parallel to that new language. Mr. Keith Swenson next addressed Section 18.52.050, pertaining to certificates of 12-07-92 -------...----- - .- - 18 - appropriateness. He noted that under this proposed revision, the applicant would be required to provide a listing of the deviations being requested. He stated that, while this revision might make the process easier for the staff, he feels it would place an undue burden on the applicant. He also suggested that the Design Review Board may be more adequately equipped to review the proposal . and forward recommendations for deviations that would result in a more pleasing development. He encouraged the Commission to allow the system to work like it has in the past. Mr. Swenson briefly touched on the Planned Unit Development section of the code, indicating it contains very serious inconsistencies. He suggested that a committee, including representatives from several different groups, such as the Building Industry Association, be appointed to review this section and forward recommended revisions. Mr. Ben Tintinger, representing the McLaughlin architectural firm and member of the Design Review Board, forwarded comments regarding the proposed building height restrictions. He stated that he is opposed to hard and fast rules regarding height, and the establishment of limits that cannot be exceeded. He suggested that a mechanism be added which would allow applicants to seek a deviation through the DRB, with that body making its determination based on whether .the design of the structure warrants the additional height. He noted that in the slides presented by Planning Director Epple, there were several examples of houses which need the additional height to complement the architectural elements of the design. He cited the new MSU Alumni building as an example, noting that it exceeds the height restrictions; but its size and architectural lines make it an attractive structure that does not seem to be too tall. Mr. Tintinger then noted the historic neighborhoods in the community, and the fact that many of the structures in those areas exceed the 30-foot height limitation proposed. He asked the Commission to encourage urban infill rather than suburban sprawl through its zoning regulations. Mr. Dan Kamp, Cikan Architects and President of the Southwest Montana Building Industry Association, stated he understands the Planning staff's desire to simplify the manner in . which building height is determined; however, he is concerned about the proposed revision as submitted. He suggested that it is counterproductive, particularly in the entryway overlay corridor, because it will result in flatter roofs rather than encouraging innovative use of building forms to soften building height. He then suggested that there may not be a magic height; rather, it may be appropriate to consider the overall structure in determining the appropriate height. He explained that in some of the examples of excessive height which the Planning Director showed, to lower the 12-07-92 __ ...n.._.__ .----- - 19 - roof would have destroyed the lines and integrity of the architectural design of the structure. Mr. Kamp noted Mr. Tintinger's proposal that a mechanism which would allow for deviations to height restrictions because of unique design might provide the needed relief to a rigid standard. . Mr. Dan Kamp then raised concern that the definitions in the zone code may not match definitions contained in the Uniform Building Code; and that could result in conflicts during enforcement of the codes. Mr. Kamp stated support for the proposed amendment to require that the City follow its own zone code in development of its properties. He noted that some of the more predominant problems with visual impact include the City, County and State grounds. He conveyed an interest in expanding that provision to require that all governmental entities meet the code. Mr. Gene Graf stated he and Mr. Dan Kamp took slides and prints of several existing residences, some of which are located in historic districts, that could not be constructed under the new code. He showed those pictures to the Commission, followed by a batch of pictures of new construction that would not comply with the proposed amendment. He then showed the .commission a batch of pictures of buildings in the city that do comply with the proposed amendment. Mr. Graf noted that he owns Allison Annexation, which is located along the south side of Kagy Boulevard, just north of Video Lottery Consultants. He noted that it is zoned R-2; and within two or three months, he plans to submit a master plan for development of the parcel. He stated that, as a buffer between VLC and single-family residential development, he is contemplating a townhouse planned unit development. He then encouraged the Commission to address the building height issue in a manner that is acceptable to all parties involved, rather than adopting the proposed amendment. Mr. Lowell Springer, architect, noted the need to address alternative housing in the . community. He stated that the proposed height limitations will severely limit how that can be accomplished, particularly since that is one of the primary elements to be considered. He expressed concern that to adopt this proposed amendment could result in developers using prime agricultural land for development of subdivisions and alternative housing, to avoid the restrictions in the jurisdictional area. He also noted new housing concepts for elderly and handicapped, through the use of elevators to transport individuals between floors. 12-07-92 . . , . - 20- He then suggested on the basis of alternative housing and the basis of cost, that the Commission take another look at the proposed height limitations, possibly considering an alternative to a numerical limitation. He noted that slopes on the property and adjacent building sizes could also be considered when determining height limitations under such a proposal. . Mr. Jim Syth, 211 5 Baxter Drive, stated that some concern has been expressed about the tall houses being constructed in Graf's First and Second Subdivisions, particularly on the ridge. He noted there are very few vacant lots in that area; and if the height restriction is being proposed because of those concerns, it may be inappropriate. He also noted the sloping lots with which developers must work in that area, and the difficulty they can create in determining height. He informed the Commission that people view homes differently; and what may be aesthetically appealing to one may not appeal another. Mr. Syth expressed his surprise when he discussed the proposed height restrictions with members of the Design Review Board, who had no knowledge of the proposed revisions. He noted the importance of including the professionals in this type of discussion whenever possible. Mr. Syth stated he feels the style and quality of homes in Bozeman is far more impressive .than the homes in Billings. He also noted that the topography in Bozeman is typically not flat. He then encouraged Bozeman to set the trend for height limitations, as it has in other areas, rather than relying on a method which has been utilized in another community in the state. Mr. Syth mentioned that he attended a custom builders' symposium in San Antonio, Texas, a few weeks ago. He noted that most of the top designers in the country are currently using steep roof pitches. He stated that these roof pitches can be used on larger homes as well as smaller, more affordable homes, to make them appear more impressive. He cautioned that if people cannot utilize plans from a book because of the height restrictions, they will be required to utilize local architects to develop house plans, which in turn will increase the costs of their home. Mr. Jim Syth stated that the homes along South Willson Avenue and in the various historic . districts in the community do not appear out of proportion because of the large trees around them. He suggested that a certain height of tree be required in the landscaping for tall houses, to minimize the visual impact until the landscaping can help it blend into the area. Mr. Syth stated the homebuilders are not asking to be allowed to build bigger homes than then can under the current code; however, they wish to continue building as they have been. In conclusion, he encouraged a minimum of restriction in height limitations. "'. 12-07-92 ~ . . - 21 - Break - 9:10 to 9:20 D.m. Mayor Swanson declared a break from 9:10 p.m. to 9:20 p.m., in accordance with Commission policy established at their regular meeting of March 14, 1983. ....Public hearing (continued) - DroDosed revisions to the zonina ordinance as initiated bv the City ~Commission and the City-County Planning Board Ms. Peg Potter, 206 Ridge Trail, addressed the proposed amendment to lot areas requiring a 150-foot minimum lot width in the R-S zoning district as well as under the rural residential node regulations. She stated the concept of curvilinear streets, which results in curves and narrow front footages in some instances. She noted that her own home is located on such a site, with a front footage of less than 150 feet and yet a size of almost two acres. She suggested that this proposed amendment should be further considered, taking into consideration the potential for odd-shaped lots and the fact that clustered development is to be encouraged. Mr. Chris Babcock, 715 West Olive Street, stated the difficulty of constructing homes on sloping lots which meet the requirements of the zone code. He noted one recently-constructed .. home which has only a partial daylight basement because it would have been too tall otherwise. He suggested that if a more open daylight basement had been allowed, the structure would be more aesthetically pleasing. He discussed that in that instance, the building height was met from the street frontage, but it was not at the rear of the structure. Mr. Babcock then commented that most of today's traditional designs lend themselves to steep pitched roofs which exceed the proposed height limit. He suggested it would be prudent for the Commission to delay its decision on this proposed amendment and allow additional input from the building industry before making a decision. Mayor Swanson stated that 90 percent of the testimony this evening has been related to building height. He suggested that the public hearing be continued to allow staff time to work with those who have testified on this issue. . City Manager Wysocki requested that the issue of building height be forwarded to the Design Review Board for discussion before further Commission consideration. He then suggested that the public hearing be continued to January 4. Commissioner Frost asked if the Commissioners should forward their concerns to Planning Director Epple. 12-07-92 ~,-,_._------,..- ~ -.--..-......-. , , , - 22- Commissioner Knapp stated the Commission has received a considerable amount of input on specific houses and how the height restrictions would affect them, but no input on the relationship between that house and impacts on its neighbors' adequate light and air. Mayor Swanson continued the public hearing to the afternoon session of the January 4, .1993, Commission meeting. Adjournment - 9:32 D.m. There being no further business to come before the Commission at this time, it was moved by Commissioner Vincent, seconded by Commissioner Knapp, that the meeting be adjourned. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Vincent, Commissioner Knapp, Commissioner Frost, Commissioner Stiff and Mayor Swanson; those voting No, none. ATTEST: - --V~dd$~ ROBIN L. SULLIVAN Clerk of the Commission . 12-07-92 c~