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MINUTES OF THE MEETING OF THE CITY COMMISSION
BOZEMAN, MONTANA
May 2, 2011
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The Commission of the City of Bozeman met in the Commission Room, City Hall at 121 North
Rouse on Monday, May 2, 2011. Present were Mayor Jeff Krauss, Commissioner Cyndy
Andrus, Commissioner Sean Becker, Commissioner Chris Mehl, Commissioner Carson Taylor,
City Manager Chris Kukulski, Assistant City Manager Chuck Winn, City Attorney Greg Sullivan
and City Clerk Stacy Ulmen.
* * Please refer to the audio recording of this meeting for additional detail.
0:06:11 A. Call to Order – 6 p.m. – Commission Room, City Hall, 121 North Rouse
Mayor Krauss called the meeting to order at 6:03 p.m.
0:06:12 B. Pledge of Allegiance and a Moment of Silence
0:07:02 Welcome
Mayor Krauss welcomed everybody to the meeting.
0:07:12 C. Changes to the Agenda
Mayor Krauss asked City Manager Chris Kukulski if there were any changes to the agenda. Mr.
Kukulski stated no.
0:07:16 D. Minutes – March 21, 2011
0:07:21 Motion and Vote to approve the minutes from March 21, 2011 as submitted.
It was moved by Cr. Andrus, seconded by Cr. Mehl to approve the minutes from March
21, 2011 as submitted.
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Those voting Aye being Crs. Andrus, Mehl, Becker, Taylor and Mayor Krauss.
Those voting No being none.
The motion passed 5-0.
0:07:38 E. Consent
1. Authorize Payment of Claims (LaMeres)
2. Authorize City Manager to sign a professional services agreement with Dowling
Sandholm Architects in the amount of $19,999.00 for Design and Contract
Administration of the remodel at the City Shops Complex at 814 North Bozeman
(Goehrung)
3. Authorize City Manager to Execute Right-of-Way Documents and Temporary
Construction Permits at a Total Cost of $160,428.20 for the 11th & College Roundabout
Construction Project (Heaston)
4. Authorize City Manager to Sign Notice of Award for Construction of the 11th & College
Roundabout to Knife River of Belgrade at a Cost of $652,747.35 (Heaston)
5. Authorize City Manager to sign Interlocal Agreement between Gallatin County, Bozeman
School District No. 7, and the City of Bozeman for the Bozeman Downtown Tax
Increment Finance District (Rosenberry)
6. Acknowledge receipt of the Planning Department 3rd Quarter Fiscal Year 2011 (January
1, 2011 – March 31, 2011) Budget Update (McHarg)
7. Approve Payment of $5,950.82 for the Buttrey's Solvent Site Cost Recovery (Cooper)
0:07:55 Removal of Consent Item 4.
Mayor Krauss removed Consent Item E. 4 and moved it to the Action Item list.
0:08:07 Public Comment
Mayor Krauss opened public comment.
0:08:23 David Loseff, Public Comment
Mr. Loseff from the Baxter spoke regarding Consent item 5. Authorize City Manager to sign
Interlocal Agreement between Gallatin County, Bozeman School District No. 7, and the City of
Bozeman for the Bozeman Downtown Tax Increment Finance District (Rosenberry)
0:09:15 Mr. Kukulski
Mr. Kukulski answered Mr. Loseff's question related to the Tax Increment Finance District. This
is a new direction but consistent with how the old TIF was set up.
0:11:05 Motion and Vote to approve Consent Items 1, 2, 3 and 5, 6, 7.
It was moved by Cr. Mehl, seconded by Cr. Becker to approve Consent Items 1, 2, 3 and
5,6, 7.
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Those voting Aye being Crs. Mehl, Becker, Taylor, Andrus and Mayor Krauss.
Those voting No being none.
The motion passed 5-0.
0:11:21 F. Public Comment
Mayor Krauss opened public comment.
0:11:51 Paul Grossman, Public Comment
Mr. Grossman spoke regarding the parking lot and is concerned about getting closed in. He
stated that he is disgruntled about food in front of his business Looie's Down Under. He is not
happy about the lack of being contacted about vendors on the street. He is worried about the
hotel. The construction has affected them also. He feels that there should be more solicitation for
input from businesses on Main Street.
0:14:51 Steve Roderick, Ridge Athletic Clubs
Mr. Roderick stated that he is with Ridge Athletic Club. He spoke regarding the parking lot. He
wants to share ideas and concerns.
0:16:21 Kate Zier, Public Comment
Ms. Zier stated that she owns an office supply company that backs up to the parking lot. She
spoke regarding the parking garage. She wants to know about the people that have proposed the
hotel. She feels uninformed.
0:20:19 Public Comment closed
Mayor Krauss closed public comment.
0:20:23 G. Action Items
0:20:37 Consent Item 3. Authorize City Manager to Execute Right-of-Way Documents and
Temporary Construction Permits at a Total Cost of $160,428.20 for the 11th & College
Roundabout Construction Project (Heaston)
Mayor Krauss is opposed to this item. He does not feel that there is a big problem at the
intersection.
0:21:28 Motion and Vote to approve authorize the City Manager to Execute Right-of-Way
Documents and Temporary Construction Permits at a total cost of $160,428.20 for the 11th
& College Roundabout Construction Project.
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It was moved by Cr. Becker, seconded by Cr. to approve authorize the City Manager to
Execute Right-of-Way Documents and Temporary Construction Permits at a total cost of
$160,428.20 for the 11th & College Roundabout Construction Project.
Those voting Aye being Crs. Becker, Taylor, Andrus and Mehl.
Those voting No being Mayor Krauss.
The motion passed 4-1.
0:22:03 1. Letter of intent from CATELLUS GROUP, LLC for purchase of the
Carnegie Parking Lot located at 106 East Mendenhall Street (Fontenot)
Mr. Fontenot gave the staff presentation regarding the letter of intent (LOI) from CATELLUS
GROUP, LLC for purchase of the Carnegie Parking Lot located at 106 East Mendenhall Street.
0:31:49 Questions for Staff
The Commission asked a series of questions for clarification related to the entity that has made
the offer to build a boutique hotel, the letter of intent front the entity, the procedure as outlined in
the Charter regarding City property, prior sales that the City has been involved in, timing of
communicating with property owners, transparency, legal constraints, purchase of sale
agreements, public process related to selling the property, auctioning, policy decisions, and the
range of options.
0:57:40 Public Comment
Mayor Krauss opened public comment.
0:57:56 Ileana Indreland, Public Comment
Ms. Indreland of 108 East Main, stated that the future of this lot is important to her. The tax
payers own this. The adjoiners have paid Special Improvement Districts with the guarantee that
they would have parking. There are some other options. Is the property needed or used? The
Parking study is inadequate. The downtown is still struggling. Future businesses will be opening.
This is premature. She has questions regarding the implications in the Letter if Intent. We want a
hotel downtown. There are other properties for sale.
1:01:07 Brian Caldwell, Public Comment
Mr. Caldwell of Think Tank located at 33 North Black Ave in the Parking Garage. They feel that
they are well suited for the task of the process of acquiring public property. It is further goals of
Community Plans. As a point of reference there are other goals and objectives outside just a
hotel for consideration. There is a need to be clear and dictating and the terms of the transaction.
There needs to be a clear understanding on the front end. He would like to participate in the
acquisition of the property. The issue according to him is the timing of the transaction. Open this
up for discussion to a broader group. See what else is out there.
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1:06:47 Chris Naumann, Public Comment
Mr. Naumann of the Downtown Business Partnership of 222 East Main, Suite 302 stated that he
has had numerous discussions with property owners. There are a variety of concerns with the
letter of intent. There is concern of loss of public parking and skepticism of use of parking
garage. Timing of the proposal is a concern. He spoke regarding disruptions downtown in the
last five years. There are signs that downtown is recovering but they are still recouping. There is
a better use for the parking lot. Some felt that the City needs to proceed with more than one
proposal and have a request for proposal process.
1:10:04 Don Kape Jr. Public Comment
Mr. Kape of 3623 Stanford Drive commended the Commission on prioritizing a hotel downtown.
It is a needed facility. He has concerns regarding process. This is a difficult time to build a hotel
at this time. He encouraged a request for qualifications and proposals process and to contemplate
other uses.
1:12:23 Robert Evans, Public Comment
Mr. Evans of 604 South Willson stated that he paid 20 years on an SID on the lot and he is not
happy about the city looking at selling it.
1:13:03 Michael Delaney, Public Comment
Mr. Delany of 415 South Willson stated that he is not defending selling or keeping the lot but
urged the Commission to consider waiting. Success comes to those who wait. He emphasized
that a real estate and financial crises and a bad event downtown has taken place. Most vacancies
have been leased or sold. He is optimistic about the future. Wait for the summer and see how it
shakes out.
1:17:45 Chris Pope, Public Comment
Mr. Pope of 1508 South Willson stated that he takes an alternative view. We should pursue the
letter of intent. We should push hard to see if this application has merit. This is a down economy.
This is a moment for the Community and the Government. Stand back and let the private
community come forward. The City did not offer to sell the property.
1:23:06 David Loseff, Publlic Comment
Mr. Loseff of 105 West Main Street of the Baxter Hotel suggested to not race into this. Explore
opportunities into a downtown hotel. He spoke regarding the scarcity of parking. Why do we
need this? Look at the absorption. Need to mindful of value. He wondered why the developer
wants a Letter of Intent at this stage. Explore options.
1:28:22 Public Comment closed
Mayor Krauss closed public comment.
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1:28:24 Questions to Staff
The Commission spoke regarding the ramifications of the letter of intent, the rules of Montana
Code Annotated and the proceeds from the possible sale, cash in lieu of parking, timelines and a
need hearing, the parking garage, assessments, and the Tax Increment Financing District.
1:41:55 Motion to authorize the City Manager to sign the CATELLUS letter of intent.
It was moved by Cr. Taylor, seconded by Cr. Mehl to authorize the City Manager to sign
the CATELLUS letter of intent.
1:42:12 Commission discussion on the Motion
1:48:15 Amendment to the Main Motion to add to the motion "Only if a future
determination is made by the City that the Carnegie parking lot is not longer necessary for
the conduct of city business."
It was moved by Cr. Mehl, seconded by Cr. Becker to add to the motion "Only if a future
determination is made by the City that the Carnegie parking lot is not longer necessary for
the conduct of city business."
1:48:47 Commission discussion on the Amendment.
1:56:38 Vote on the Amendment to add to the motion "Only if a future determination is
made by the City that the Carnegie parking lot is not longer necessary for the conduct of
city business."
Those voting Aye being Crs. Mehl, Becker, Taylor, Andrus and Mayor Krauss.
Those voting No being none.
The motion passed 5-0.
1:57:36 Vote on the Main Motion as Amended to authorize the City Manager to sign the
CATELLUS letter of intent.
Those voting Aye being Crs. Taylor, Mehl, Becker, Andrus and Mayor Krauss.
Those voting No being none.
The motion passed 5-0.
1:58:10 Motion that should the property be considered surplus by the City that the City
Manager order and appraisal of the lot.
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It was moved by Cr. Mehl, seconded by Cr. Becker that should the property be considered
surplus by the City that the City Manager order and appraisal of the lot.
1:58:38 Commission discussion on the Motion
2:00:48 Vote on the Motion that should the property be considered surplus by the City that
the City Manager order and appraisal of the lot.
Those voting Aye being Crs. Mehl, Becker, Taylor, Andrus and Mayor Krauss.
Those voting No being none.
The motion passed 5-0.
2:01:14 Motion to acknowledge receipt of the Catellus Letter of Intent.
It was moved by Cr. Becker, seconded by Cr. Taylor to acknowledge receipt of the Catellus
Letter of Intent.
2:01:28 Commission discussion on the Motion
2:08:04 Vote on the Motion to acknowledge receipt of the Catellus Letter of Intent.
Those voting Aye being Crs. Becker, Taylor, Andrus, Mehl and Mayor Krauss.
Those voting No being none.
The motion passed 5-0.
2:08:16 Break
Mayor Krauss declared a break.
2:24:17 Back to order
Mayor Krauss called the meeting back to order at 8:21 p.m.
2:24:41 2. McGuane Sketch Plan Certificate of Appropriateness with Demolition,
Application No. Z-11050 (Kramer)
Planning Director Tim McHarg gave the staff presentation regarding the McGuane Sketch Plan
Certificate of Appropriateness with Demolition, Application No. Z-11050. This is a request to
open and continue this project.
2:25:34 Public Comment
Mayor Krauss opened public comment.
No person commented.
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Mayor Krauss closed public comment.
2:25:48 Motion that based upon the request from the applicant, I move to continue the
public hearing on Certificate of Appropriateness application Z-11050, the McGuane
Residence, to a date to be determined after the revised project proposal has been
submitted.
It was moved by Cr. Andrus, seconded by Cr. Mehl that based upon the request from the
applicant, I move to continue the public hearing on Certificate of Appropriateness
application Z-11050, the McGuane Residence, to a date to be determined after the revised
project proposal has been submitted.
2:26:10 Commission discussion on the Motion.
2:26:24 Vote on the Motion that based upon the request from the applicant, I move to
continue the public hearing on Certificate of Appropriateness application Z-11050, the
McGuane Residence, to a date to be determined after the revised project proposal has been
submitted.
Those voting Aye being Crs. Andrus, Mehl, Becker, Taylor and Mayor Krauss.
Those voting No being none.
The motion passed 5-0.
2:26:49 3. Integrated Water Resources Plan (IWRP) (Heaston)
Staff Engineer Brian Heaston gave the Staff presentation regarding the Integrated Water
Resources Plan (IWRP). He spoke regarding the Sourdough Plan, outreach, and the need for the
project.
3:36:05 Public Comment
Mayor Krauss opened public comment.
3:36:23 Deb Stevenson, Public Comment
Ms. Stevenson of 3935 Graff asked that the Memorandum of Understanding be decoupled from
the Plan. They would like it considered separately. She spoke regarding SALAR retaining
financing and investment.
3:43:33 Al Lien, Public Comment
Mr. Lien of 8507 Huffine Lane stated that he is the president of the West Gallatin Canal
Company. They support the Salar Project. The have been working with this concept. He spoke
regarding senior water rights. He spoke regarding the planning of maps of ditches. This project is
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done. Copies can be found at the GIS Office. The Organization invites the City to become a
member.
3:47:26 Public Comment closed
Mayor Krauss closed public comment.
3:47:44 Commission discussion
The Commission discussed the need to evaluate the water rights that the City has currently,
purchasing shares from Hyalite, legal rights, exploration of Salar's plan, true costs, alternatives,
storage rights and establishing what the need is.
3:59:33 Rules suspended
Mayor Krauss suspended the Rules to 10:30 p.m.
4:10:48 Motion to direct staff to procure professional services in developing an Integrated
Water Resources Plan in Section A. Supply, Purpose, Planning and Need not to exceed
$150,000.
It was moved by Cr. Becker, seconded by Cr. Taylor to direct staff to procure professional
services in developing an Integrated Water Resources Plan in Section A. Supply, Purpose,
Planning and Need not to exceed $150,000.
4:11:29 Commission discussion on the Motion.
4:14:45 Amendment to the Main Motion to strike all the language starting with the word
"not" listed in Cr. Becker's previous motion.
It was moved by Cr. Mehl, seconded by Cr. Taylor to strike all the language starting with
the word "not" listed in Cr. Becker's previous motion. (The idea was to get all the policy
done first).
4:15:18 Commission discussion on the Amendment.
4:31:19 Motion and Vote to suspend the rules to 10:49 p.m.
It was moved by Cr. Mehl, seconded by Cr. Taylor to suspend the rules to 10:49 p.m.
Those voting Aye being Crs. Mehl, Taylor, Andrus and Becker.
Those voting No being Mayor Krauss.
The motion passed 4-1.
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4:32:48 Vote on the Amendment to the Main Motion to strike all the language starting with
the word "not" listed in Cr. Becker's previous motion.
Those voting Aye being none.
Those voting No being Crs. Mehl, Taylor, Andrus, Becker and Mayor Krauss.
The motion failed 0-5.
4:33:15 Motion to table the pending motion to direct staff to procure professional services
in developing an Integrated Water Resources Plan in Section A. Supply, Purpose, Planning
and Need not to exceed $150,000.
It was moved by Cr. Taylor, seconded by Cr. Mehl to table the pending motion to direct
staff to procure professional services in developing an Integrated Water Resources Plan in
Section A. Supply, Purpose, Planning and Need not to exceed $150,000.
Those voting Aye being Crs. Taylor, Mehl, Andrus and Mayor Krauss.
Those voting No being Cr. Becker.
The motion passed 4-1.
4:33:37 Motion and Vote to decouple the question of any MOU from the other debate.
It was moved by Cr. Mehl, seconded by Cr. Taylor to decouple the question of any MOU
from the other debate.
Those voting Aye being Crs. Mehl, Taylor, Andrus, Becker and Mayor Krauss.
Those voting No being none.
The motion passed 5-0.
4:34:11 Motion to take off the Table the Main Motion to direct staff to procure professional
services in developing an Integrated Water Resources Plan in Section A. Supply, Purpose,
Planning and Need not to exceed $150,000.
It was moved by Cr. Mehl, seconded by Cr. Taylor to take off the Table the Main Motion
to direct staff to procure professional services in developing an Integrated Water Resources
Plan in Section A. Supply, Purpose, Planning and Need not to exceed $150,000.
Those voting Aye being Crs. Mehl, Taylor, Andrus, Becker and Mayor Krauss.
Those voting No being none.
The motion passed 5-0.
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4:34:32 Amendment to the Main Motion to amend the Becker motion (main) that we
approve A.1-A.6(page 97 of the Staff Report) and also include Item B.2 (page 98 of the
Staff Report).
It was moved by Cr. Mehl, seconded by Cr. Taylor to amend the Becker motion (main) that
we approve A.1-A.6(page 97 of the Staff Report) and also include Item B.2 (page 98 of the
Staff Report).
4:35:12 Commission discussion on the Amendment.
4:37:35 Vote on the Amendment to the Main Motion to amend the Becker motion (main)
that we approve A.1-A.6(page 97 of the Staff Report) and also include Item B.2 (page 98 of
the Staff Report).
Those voting Aye being Crs. Mehl, Taylor, Andrus, Becker and Mayor Krauss.
Those voting No being none.
The motion passed 5-0.
4:37:57 Vote on Main Motion as Amended to direct staff to procure professional services in
developing an Integrated Water Resources Plan in Section A. Supply, Purpose, Planning
and Need not to exceed $150,000.
Those voting Aye being Crs. Becker, Taylor, Andrus, Mehl and Mayor Krauss.
Those voting No being none.
The motion passed 5-0.
4:38:17 4. Update on Selection of Water Rights Attorney (Cooper)
Assistant City Attorney Tim Cooper spoke regarding the selection of a Water Rights Attorney.
He would like to know which Commissioner would be interested. There are 5 individuals and
law firms interested. Cr. Taylor volunteered to serve on the Committee
4:40:20 H. FYI/Discussion
4:40:35 I. Adjournment
Mayor Krauss adjourned the meeting at 10:43 p.m.
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____________________________________
Jeffrey K. Krauss, Mayor
ATTEST:
______________________________________
Stacy Ulmen, CMC, City Clerk
PREPARED BY:
______________________________________
Stacy Ulmen, CMC, City Clerk
Approved on ___________________________.
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