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HomeMy WebLinkAbout05-11-2015 Archive City Commission Minutes Co. THE CITY COMMISSION MEETING OF BOZEMAN, MONTANA MINUTES Monday,May 11,2015 Mayor - Jeff Krauss: Present Deputy Mayor - Carson Taylor: Present Commissioner- Chris Mehl: Present Commissioner - Cynthia Andrus: Present Commissioner- I-Ho Pomeroy: Present Staff Present: City Manager Chris Kukulski, Administrative Services Director Anna Rosenberry, City Attorney Greg Sullivan and City Clerk Stacy Ulmen. A. 05:02:47 PM Call to Order—5:00 pm—Commission Room, City Hall, 121 North Rouse Mayor Krauss called the meeting to order at 5:02 p.m. B. 05:02:57 PM Pledge of Allegiance and a Moment of Silence C. 05:03:38 PM Changes to the Agenda Mayor Krauss would like to move Action Items 6 & 7 Items to 2 & 3. D. 05:04:30 PM Consent 1. Authorize Payment of Accounts Payable Claims for Goods and Services (LaMeres) 2. Professional Services Agreement for Lawn Maintenance of City Facilities to Solstice Landscaping LLC (Goehrung) 3. Professional Services Agreement for Lawn Care Services for the Story Mansion site to Ar owLeaf Lawn& Landscape, LLC (Goehrung) 4. Professional Services Agreement with Gradient Systems for Utility and Resource Tracking Software (Meyer) 5. Findings of Fact and Order for the Allison Phase 3 Major Subdivision Preliminary Plat, Application P15007 (Davis) 6. Findings of Fact and Order for Cattail Properties, Major Subdivision Preliminary Plat,Application P15054 (Brekke) 7. Ratify Grant Application to Montana Disaster and Emergency Services — Homeland Security for the amount of$55,000 for the purchase of Portable 2-way radios (McLane) Page 1 of 17 May 11,2015 Bozeman City Commission Minutes 8. Resolution 4595 allowing the City Of Bozeman to sell its 1995 Ford L800 Vac Con Sewer Flusher/Vacuum Truck in the amount of $15,000 to the Town of Manhattan(Alston) 05:04:33 PM City Manager overview of Consent Items. City Manager Chris Kukulski gave an overview of the Consent items. 05:05:46 PM Public Comment Mayor Krauss opened public comment. No person commented. Mayor Krauss closed public comment. 05:05:55 PM Motion and Vote to approve Consent Item 1-8 as submitted. Deputy Mayor- Carson Taylor: Motion Commissioner- I-Ho Pomeroy: Mayor- Jeff Krauss: Approve DeputMayor - Carson Ta l�pprove Commissioner- Chris Mehl: Approve Commissioner- Cynthia Andrus: Approve Commissioner- I-Ho Pomeroy: Approve 05:06:15 PM National Police Week. Mayor Krauss announced that this week is National Police Week and recognized the Bozeman Police Department. E. 05:06:59 PM Public Comment Mayor Krauss opened public comment. No person spoke. Mayor Krauss closed public comment. F. 05:07:35 PM Special Presentations 1. 05:07:38 PM Public Works Department Awards (Woolard) The Sourdough Water Treatment was nominated and received 2 awards from the American Consulting Engineering Council. The plaque will be displayed in City Hall. 2. 05:09:25 PM Southwest Montana Building Industry Association (SWMBIA) Affordable Housing Update (Brian Popiel, Chairman) Mr. Popiel spoke regarding the exploration of the Werworth Affordable Housing recommendations as presented to the Commission a few months ago. He highlighted the sales of affordable units sold between 2009-2015. They recommend that a comprehensive rewrite of the Unified Development Ordinance take place and that there be an emphasis on removing inclusionary zoning, alternate living arrangements such as cottage housing, house/pocket neighborhood ordinance, and accessory dwelling unit ordinance. The City Page 2 of 17 May 11,2015 Bozeman City Commission Minutes should take a look forward and do a building lot assessment. There is a shortage of buildable lots. He urged that the City should issue a request for proposals for the creation of xx number of units based on the City's stated goals and direct down payment assistance for xx number of households. Mr. Popiel stated that SWMBIA is supportive of the subsidy list provided that all incentives are voluntary. He then spoke regarding inclusionary zoning and affordability for all. He urged that the building community be empowered to help build a better Bozeman. 05:28:23 PM Commission questions for Mr. Popiel Mr. Popiel and the Commission discussed the target levels, the need for a copy of the power point, price point housing, AMI percentages, SWMBIA's involvement and what they can provide including livelihood, the 125 lots that are currently listed on the MRL, industry demand and capacity, the lack of inventory for a year supply and the rising costs because of this, the reason why builders want to build affordable housing and profit being tied to business models. G. 05:37:50 PM Action Items 1. 05:38:04 PM Presentation of the Fiscal Year 2015-2016 City Manager's Recommended Budget(Rosenberry) 05:3 8:14 PM Staff Presentation City Manager Chris Kukulski began the presentation of the Fiscal Year 2015-2016 City Manager's Recommended Budget. This is centered around the Commission's adopted goals. 05:39:14 PM Anna Rosenberry, Director of Administrative Services Ms. Rosenberry spoke regarding the focus within the budget including transportation projects, discussions of transportation improvements and the reappraisals of properties, the notable change of the failed Justice Center bond, funding groundwork for growth and future development of the City, timeframes, prior year budgets for the City, the fact that we have had a significant investment in Capital projects, the significant issues this year including increasing transportation funding, requests for added staffing, funding story mill landfill project costs, and allocating more money to affordable housing efforts, the revenues estimated and expenditures estimates, existing cash balances, revenue sources, the Top 10 largest project list, staffing levels, the levels of City employees per 1,000 residents, the General Fund beginning balance and ending balance with this budget, the amount of reserve that must be in place, costs and revenues in the General Fund, property taxes, intergovernmental revenues, entitlement share revenues, the City's taxable value in that it is going down, the increase in tax rates, adjustments of the mill levy, property values decreasing, the General Fund priorities including continuation of existing commitments and program support, future capital priorities of the Justice Center and Aquatics and Accomplishing Commission Goals, the Capital projects within the General Fund, the Street Maintenance Districts and Assessments and the increase proposed and what they are targeting, the amount of increase per an average sized lot, the proposal of a New Arterial and Collector Street District, the target amounts for local share and the Page 3 of 17 May 11,2015 Bozeman City Commission Minutes amount of the assessment for an average sized lot, the tree maintenance district assessment, the water utility and the recommendation that the Commission adopt two years of rates, capital projects in the water fund, staffing increases and the increases cost to a resident, the wastewater utility capital projects, staffing increases and the increased cost to a resident, the stormwater utility rate implementation, capital projects and the increased costs to a residential customer, the solid waste budget with no increases in the rates, the tax levy and that they are estimated and then set in August, the requirement of setting the levy for all properties, the details related to the 34.95 mills, the summary of a FY16 typical City resident annual cost adjustments and then the work sessions and hearing timelines. 06:26:20 PM Commission questions for Staff The Commission and staff discussed the fact that the City is growing, the fees,the danger of six year appraisals, and positive growth through the recession, follow up with the press, the focus on the increase of mills and the impacts if we only levied the existing amount of mills, when the property values were last looked at, how many other cities are below the cap and the need to find this out before the next meeting, the desire to know what the cemetery and recreation numbers are in the general fund, the intergovernmental amount in the General Fund, grant funding which is listed in a special revenue fund, a designated grant person and if there is a need for one, new arterial assessments, the increase in Library staffing, continued demand for services in the Library, subsidy for planning and how it is in comparison to other years,the funding of long range planning in Community Development, the additional FTE in the Stormwater Department and the need for it and the need to know this later in future discussions, assumptions on the impact of the ending fund balance that could go wrong such as rainy day funds, the situation at the landfill, the sale of the North Park property, the August 22nd deadline for the North Park property closing, the number in the reserve fund, unanticipated costs, belt tightening over the last year because of the change in the numbers. 2. 06:50:17 PM Resolution 4586, creation of Special Improvement Lighting District No. 724 for Norton East Ranch Subdivision Phase 3 (Rosenberry) 06:50:29 PM Staff Presentation Administrative Services Director Anna Rosenberry gave the Staff presentation for Resolution 4586, creation of Special Improvement Lighting District No. 724 for Norton East Ranch Subdivision Phase 3. 06:51:58 PM Commission questions for Staff None. 06:52:07 PM Public Comment Mayor Krauss opened public comment. No person commented. Mayor Krauss closed public comment. Page 4 of 17 May 11,2015 Bozentan City Commission Minutes 06:52:16 PM Motion and Vote to approve Commission Resolution 4586, creation of Special Improvement Lighting District No. 724 for Norton East Ranch Subdivision Phase 3. Commissioner- I-Ho Pomeroy: Motion Commissioner - Chris Mehl: 2nd Mayor- Jeff Krauss: Approve Deputy Mayor - Carson Ta. l�pprove Commissioner - Chris Mehl: Approve Commissioner- Cynthia Andrus: Approve Commissioner- I-Ho Pomeroy: Approve 3. 06:52:45 PM Resolution 4592, creation of Special Improvement Lighting District No.725 for Partridge Downs Subdivision(Rosenberry) 06:53:03 PM Staff Presentation Director of Administrative Services Anna Rosenberry gave the Staff presentation for Resolution 4592, creation of Special Improvement Lighting District No.725 for Partridge Downs Subdivision. 06:54:00 PM Public Comment Mayor Krauss opened public comment. No person commented. Mayor Krauss closed public comment. 06:54:08 PM Motion and Vote to approve Commission Resolution 4592, creation of Special Improvement Lighting District No. 725 for Partridge Downs Subdivision. Commissioner - I-Ho Pomeroy: Motion Commissioner- Chris Mehl: 2nd Mayor- Jeff Krauss: Approve Deputy Mayor - Carson Taylor: Approve Commissioner - Chris Mehl: Approve Commissioner - Cynthia Andrus: Approve Commissioner - I-Ho Pomeroy: Approve 06:54:34 PM Break Mayor Krauss declared a break. 07:17:02 PM Meeting called back to order Mayor Krauss called the meeting back to order. 07:17:53 PM Public Comment on the Budget Mayor Krauss opened public comment on the budget. Page 5 of 17 May 11,2015 Bozeman City Commission Minutes 07:18:17 PM LeifSundein,Public comment Mr. Sundein stated that he was encouraged about the affordable housing efforts. He spoke regarding the Law and Justice Center bond that failed and that he has concerns regarding the costs for consulting. He spoke regarding the need of supporting the Unified Development Code efforts within the budget. We need a well written and clean UDO so that a builder can meet those goals. There is a need for a clear process. 07:21:29 PM Public Comment closed Mayor Krauss closed public comment. 4. 07:21:38 PM Martin 402 W Koch St. Certificate of Appropriateness with a Deviation Modification, a modification to a Previously Approved Certificate of Appropriateness with a Deviation which was to enable the following Modifications to the Principal Residence at 402 West Koch Street: 1) an addition to the rear of the existing building; 2) rehabilitation of the existing residence; and 3) related site improvements. The modification is to allow the reconstruction of the entire residence rather than a portion of the residence, 402 West Koch Street, application Z15109 (Saunders) 07:21:59 PM Staff Presentation Assistant Planning Director Chris Saunders gave the Staff presentation for the Martin 402 W Koch St. Certificate of Appropriateness with a Deviation Modification, a modification to a Previously Approved Certificate of Appropriateness with a Deviation which was to enable the following Modifications to the Principal Residence at 402 West Koch Street: 1) an addition to the rear of the existing building; 2) rehabilitation of the existing residence; and 3) related site improvements. The modification is to allow the reconstruction of the entire residence rather than a portion of the residence, 402 West Koch Street, application Z15109. He went through the plan that was before the Commission in 2014. This proposal is to construct the home that was before the Commission on April 14, 2014. This application is an amendment to the original application. Two options were listed for the Commission's consideration: Option A. Determine deviation is available and appropriate to restore home and local character. A re-submittal of building plans to the building department would need to occur. Impact fees and inspections. Option B. Determine deviation not available and application must comply. Requires redesign of the house. The application would need to be redesigned. 07:33:23 PM Commission questions for Staff The Commission spoke regarding disclosures, the new condition number 5 of two bedrooms and parking, how ADUs and parking requirements work, how a bedroom is defined, how bathrooms are defined, the main level plan as submitted by the applicant, the room titled office with a bathroom next to it, the second location of the bathroom near the mudroom, requirements of noticing in restrictions, inspections throughout the construction process, the lot size, if the City approved an entire demolition with the Page 6 of 17 May 11,2015 Bozeman City Commission Minutes answer of no, the presumptions of staff mistakes, and staff changes of cleaning up a clear scope by applicants, the requirements related to demolitions, how the building official will handle the building of a new structure in which he felt it would be easier to rebuild rather than renovate, last week's approval of a temporary ADU, a condition related to the ADU and its future, the fact that the building will be safer by rebuilding, the reason for a deviation instead of a variance in that a deviation hinges on an active application and also by looking at the character and nature of the neighborhood and the fact that they are building the home in the same footprint, the fact that they are in the historical overlay district, the allegations that the City made mistakes on the prior application and the Building Inspector's review of the application and the building permit, three walls and the basement were to be left upon the prior vote by the Commission, timeframes for the City to take action on this, the merits of asking for a variance, the purpose of a variance in that it is emergency in nature, hardships, the proposed house size and shifting the location of the house. 07:57:49 PM Applicant Presentation The Applicant representative spoke regarding the map that she handed out. This map includes positive comments from the neighbors. It comes down to the historical nature of what they want to do. She spoke regarding the adjacent neighbor and impacts if the house is moved, the fact that there is a large tree to the north and if the house is moved it will need to be taken down, the need of maintaining the historical feel, the fact that the bathroom that was taken out that Deputy Mayor Taylor was concerned about. 08:02:05 PM Commission questions for the Applicant and Staff The assumptions of a City error on this project, the fact that the design of the building has changed, the fact that outside of the home has not changed, compliance with building plans, the representative's approval of the staff analysis, approval of floor plans if they affect the overall items such as parking, the fact that COA's are based on the exterior, if the Commission is only approving the exterior, why are they getting plans with the interior,how a replica can be deemed historic,repurposing doors and windows,the City's receipt of the original application, and the fact that the interior use of the project shapes the exterior and the amount of bedrooms for parking spaces,. 08:09:22 PM Public Comment Mayor Krauss opened public comment. 08:09:25 PM George Thompson,Public Comment Mr. Thompson spoke regarding affordable housing and the fact that this is a larger home than the others in the area. He spoke regarding a prior architect project where a larger home was built. By doubling the cost, it removes the affordability. This is a slippery slope they are heading down. 08:12:41 PM Dom-Neavnor,Public Comment Mr. Neavnor stated that he has been a builder for 30 years and is a close friend of the applicants. He feels that the City was in error with this project. The City didn't recognize Page 7 of 17 May 11,2015 Bozeman City Commission Minutes the significance of this building. Neighbors did not have the option of expressing their concerns. 08:16:22 PM Ed Adamson,Public Comment Mr. Adamson stated that he is a builder and spoke regarding complying to city standards. He spoke regarding partial demolishment projects that he has done in conjunction with the City in the past. He followed the letter of the law. He doesn't understand why they would get special treatment. So many of us have conformed to this process in the past. 08:18:56 PM Julie Vineon,Public Comment Ms. Vineon stated that she is a neighbor to this property. She would like to see the house remain in its original setback. Her concern is moving the footprint. 08:20:32 PM Public Comment closed. Mayor Krauss closed public comment. 08:20:50 PM Applicant or Staff further comments The City Attorney spoke regarding the violations that have occurred with this project. Staff has been working on gathering information. Any decision to proceed on violations would be enforced by the City Attorney's office. 08:22:34 PM Commission discussion The Commission stated that there is a need for exact details of what is changing and not changing. Cr. Mehl stated that he agrees with the neighbor. A hole in the ground does not suit the neighborhood well. He is frustrated with staff because a narrow application and the $1 value and that we said we couldn't tear it down. Good policy is not jumping from example to example, we will have a precedent on the books if we allow this, this is setting a precedent and how can we not have this happen again, he understands where the neighbors are coming from in that they want anything there now that there is a hole. He is frustrated that they cannot discuss the policy of this item. This building is listed as historical and should have been protected. Deputy Mayor Taylor addressed public comment and the perceived staff s error. This project was discussed last April and it was explicit that walls were going to be saved, the Commission was clear that only a partial demolition was approved. In the same meeting the ADU was not requested nor authorized. His conclusion is that this is a three bedroom house. How do we look at conditions and ensure they are followed in the future. He spoke regarding value. In this case it was how to save this house. We are stretching reality when we are now asking for a deviation. We are rebuilding the foundation. There is no way the variations are being met. Change the condition that this is a two bedroom house and that the ADU would be dismantled. He is in support of Cr. Mehl's suggestion. Cr. Andrus spoke regarding the original motion. We are starting over because there is no house. She has big concerns of deviations or variances and she agrees with Cr. Mehl. Need to get answers to the questions. The idea here is not to punish the applicant and look at the greater good of the Community. She is looking out for the future of what will be built here. There are many pieces that need to be looked at. Page 8 of 17 May 11,2015 Bozemmt City Commission Minutes Cr. Pomeroy stated that she likes democracy. American's like to preserve things. Preserving houses and building so that we can remember things. She understands Cr. Mehl's frustration, she is concerned about the next person. She understands that they failed to follow the rules. The decision is to leave a hole in the ground or approve it. We have to decide how to move forward. Punishment is not constructive. She spoke regarding another project where a house was built. She feels the Martin's will build a nice home. Mayor Krauss stated that his focus is going forward. He spoke regarding affordability and he agrees with removing the temporary ADU at occupancy. We cannot afford to be judge,jury and executioner. We do not do ad hoc policy. He does not see that our policies have been failures. His concern is one wall etc. and at what point do you no longer have a historical building. The preservation and the history of the streetscape exists but the building is lost and that decision is beyond him. Is it a deviation or a variance, this is a judgment call and we are here to make the judgment. He spoke regarding the alley and stated that staff gave good reasons for a deviation. He stated that there better be some good reasons behind delaying it. It needs to be tied to something. It is after the fact. A specific timeframe needs to be made. Many of the public comments are based on the next person. He is only focused on this COA. 08:48:33 PM Delay of this decision until June 8th. Cr. Mehl stated that he would like to delay this decision until June 8th so that more information can be collected on the following items: • Clarification of Condition 5 in regards to the number of bedrooms vs parking. with possible alternative language to condition 5 including two different ways of doing it. The ADU or ensuring only it is a 2 bedroom house. • The need for the final plans. • Deviations and Variance and the need for more options because it seems that the recommendation is one sided. The Commission discussed the need to have a policy discussion related to demolitions and historic structures and application review along with variances and deviations. Mayor Krauss would like the issue of criminality and civil penalties be discussed as well. 5. 08:58:41 PM Commission Resolution of Intent 4594, The Villas, a Growth Policy Amendment to revise Figure 3-1, the Future Land Use Map, from Parks, Recreation and Open Space to Residential on 6.49 acres, located east of Manley Road, north of Turtle Way adjacent to the East Gallatin Recreation Area, application P14051 (Saunders) 08:58:52 PM Staff Presentation Assistant Planning Director Chris Saunders gave the staff presentation for Commission Resolution of Intent 4594, The Villas, a Growth Policy Amendment to revise Figure 3-1, the Future Land Use Map, from Parks, Recreation and Open Space to Residential on 6.49 acres, located east of Manley Road, north of Turtle Way adjacent to the East Gallatin Recreation Area, application P14051. Staff is recommending favorably on this project. Page 9 of 17 i May 11,2015 Bozeman City Commission Minutes 09:09:16 PM Commission questions for Staff The Commission and Staff discussed the hydrometrics report, next steps, the institutional controls language in the staff report, land use issues, responses to the growth policy, the confusion of satisfying condition 1, the fact that staff couldn't find why there was a transition in the past, intuitional controls of things that have not taken place yet, and the Planning Board's motion that failed and the reason behind it. 09:19:46 PM Applicant Presentation The Applicant representative gave their presentation regarding Commission Resolution of Intent 4594, The Villas, a Growth Policy Amendment to revise Figure 3-1, the Future Land Use Map, from Parks, Recreation and Open Space to Residential on 6.49 acres, located east of Manley Road, north of Turtle Way adjacent to the East Gallatin Recreation Area, application P14051. This property is next to City property. Residential will be compatible with the area. The Applicant and City have spent money testing the environmental issues. He spoke regarding proximity to utilities and the park area. 09:26:43 PM Commission questions for Applicant The Commission and Applicant discussed the change in the zoning and the reason behind not going to the County, the deficiency that is being met, providing housing and minimizing sprawl, the fact that he does not agree with Staff s position on the right-a- way, the need to go forward before more testing is done, the applicant's position that there will be plenty of time before a subdivision is approved. 09:32:05 PM Public Comment Mayor Krauss opened public comment. 09:32:16 PM Ed Adamson,Public Comment Mr. Adamson stated that he is responsible for Turtle way and was told in the past that there is not enough perk and anything in that area would need to annex. His concern is existing traffic to the park and then adding more traffic. This growth policy amendment has no specifics for density. Without the park, this would be approved. He is concerned of legal issues with access to the park. He feels this is too open ended. 09:36:31 PM Brad Earnman,Public Comment Mr. Earnman lives in the area and is an advocate for the park. He is concerned about issues to the park if a high density project is approved. Focus on the importance of the park. He doesn't see how the applicant's amendment meets the improvement for the City. 09:37:58 PM Public Comment closed Mayor Krauss closed public comment. 09:3 8:09 PM City Attorney Mr. Sullivan stated that there is a designated right of way there. Development won't change that. Page 10 of 17 May 11,2015 Bozeman City Commissimt Minutes 09:38:46 PM Andy Ebighausen,Applicant Rebuttal Mr. Ebighausen spoke regarding the condition site plan, and that to him it is much better to use it for residential. The development will be much like Turtle Way, not high density. He spoke regarding access to other parks in the City. 09:42:17 PM Motion that having reviewed and considered the application materials, public comment, and all the information presented, I hereby adopt the findings presented in the staff report for Resolution 4594 a resolution of intent to amend the growth policy per application PR-14051 and move to approve the growth policy amendment with contingencies and subject to all applicable code provisions. Commissioner- Cynthia Andrus: Motion Commissioner - Chris Mehl: 2nd 09:42:56 PM Commission discussion Cr. Andrus feels this project does not carry a deficiency. There are issues with access and issues of what is under the ground. She does not see a compelling issues to go this route. Cr. Mehl spoke regarding access and feels that this is premature and he want to know more about Mr. Heaston's memo. He wants to know more background. Mayor Krauss stated that he doesn't feel there is an error. Industrial makes sense when the County did their zoning. The message in the Growth policy is that the area is to be a park. He does not feel there is a deficiency in the growth policy. The way it is going now makes sense to him. Sometimes things are going to develop in the County. Deputy Mayor Taylor there is not sufficient evidence. Cr. Pomeroy will not support. 09:51:00 PM Vote on the Motion that having reviewed and considered the application materials, public comment, and all the information presented, I hereby adopt the findings presented in the staff report for Resolution 4594 a resolution of intent to amend the growth policy per application R-14051 and move to approve the growth policy amendment with contingencies and subject to all applicable code provisions. Commissioner - Cynthia Andrus: Motion Commissioner - Chris Mehl: 2nd Mayor- Jeff Krauss: Disapprove Deputy Mgyor - Carson Taylor: Disapprove Commissioner- Chris Mehl: Disapprove Commissioner - Cynthia Andrus: Disapprove Commissioner - I-Ho Pomeroy: Disapprove 09:52:13 PM Break Mayor Krauss declared a break. Page 11 of 17 May 11,2015 Bozeman City Commission Minutes 6. 10:01:54 PM Affordable Housing Report and Recommended Budget for Fiscal Year 2016 (Thomas) 10:02:28 PM Staff Presentation Community Development Director Wendy Thomas gave the Staff presentation regarding the Affordable Housing Report and Recommended Budget for Fiscal Year 2016. She encouraged the Commission to set aside mills for the next 3 years. She went over the follow up on the Werwath recommendation including unit creation, 10% of residential units created last year, detached housing, two income tiers with target pricing and a focus on below market rate homes. It is important that there is a follow through and commitment. She spoke regarding Staff's approach which is to look at a five year rolling average, look at detached and attached housing types, target incomes 60-100% AMI, three levels weighted goals, phased production including market, program development and adjustable. She spoke regarding three steps and timelines. 10:13:32 PM Commission questions for Staff The Commission and staff discussed the multi tiered approach, the 3 mills for 3 years, needs for affordable housing, phasing in programs, the AMI goal, increase and preservation of affordable housing and if 3 mills are realistic, the fact that there is an incredible spectrum of need and the tiers. 10:22:28 PM Public Comment Mayor Krauss opened public comment. 10:22:35 PM Rob Evans Public Comment Mr. Evans with SWMBIA thanked staff and the Commission for their continued debate of this item. 10:22:54 PM Kevin Thane,Public Comment Mr. Thane stated that he is part of the CAHAB Board. He spoke regarding existing housing. 10:24:44 PM Dave Magisltreli,Public Comment Mr. Magistreli stated that he is part of the CAHAB Board. He spoke regarding Habitat for Humanity and that they need help with land. 10:25:59 PM Christian Wilcox,Public Comment Mr. Wilcox spoke regarding affordable housing and urged the Commission to think about the Veterans. He is not for affordable housing. You got to pull yourself up. If you give a handout that is great. Be proud of your community, help, work, volunteer and do your time and don't quit on your Community. 10:29:12 PM Leif Sundeam,Public Comment Mr. Sundeam is encouraged about the other comments that were given. His concern is with the lots to be developed. It sounds like we are going to be running out of lots. There is a need to work to make development processes more efficient and a need to be Page 12 of 17 May 11,2015 Bozeman City Contndssim Minutes cognitive of the rewrite of the UDO along with a framework. Be thoughtful about having all of the right tools in place. He spoke regarding complexity. 10:33:07 PM Meeting extended to 11 p.m. 10:33:19 PM JeffRupp,Public Comment Mr. Rupp representing the HRDC spoke in support of the CAHAB's request. 10:33:56 PMAndrew Woolbert,Public Comment Mr. Woolbert thanked everyone for the efforts. He spoke regarding his concern of inclusionary zoning, potential for deed restrictions, the need to address monitoring, encourage further collaboration and lenders. They have been working with SWMBIA and are seeing how the demands are being met. 10:38:17 PM Jannie Wiseman,Public Comment Ms. Wiseman spoke regarding her first purchase of a home in Bozeman. She encouraged the Commission to urge others in Bozeman to do the same. Encourage those in Bozeman to invest in themselves. 10:41:50 PM Public Comment. Mayor Krauss closed public comment. 10:42:06 PM Commission discussion Cr. Mehl spoke regarding the road from rental to ownership. He likes deadlines. He urged staff to continue on. He thinks it should include attached and detached. Can take up who administers this we can take that up at a later time. Deputy Mayor Taylor stated that he is concerned about bringing down to the 60% AMI. He would start around 75% level. He likes the concept of a rolling average and there is a need to set some goals. Complexity sometimes can't be avoided. The former Ordinance objections. He does not see deed restriction as a way to bring money back. Cr. Pomeroy stated that this is our issue. She thanked public comment. Affordable housing is our community problem. We have an obligation to help them. She is glad that CAHAB suggested the 3 mills and she has an interest in doing more than 3 years. Cr. Andrus stated that she is in support. She spoke regarding the AMI figures and feels that there is a need to look between 60-75%. She spoke regarding the tier system and that there is a need to look at that and not always start at the top. Mayor Krauss is glad that the community supports affordable housing instead of blaming the builders. We need some way to incentivize building in certain areas. He spoke regarding contributions, the mills and the community involvement. Are we going to incentivize growth in the City or do we want to send them to Belgrade? He is against making people work for nothing. There is a need to find willing partners who will help with land. We need to find ways to look at kinds of affordable housing that millennial might want to live in. Find the choke points and address them. Page 13 of 17 May 11,2015 Bozeman City Commission Minutes 10:57:01 PM Motion and Vote to extend the meeting until item 7 is done. Commissioner- Chris Mehl: Motion Deputy Mayor- Carson Taylor: 2nd Mayor- Jeff Krauss: Approve Deputy Mayor- Carson Taylor: Approve Commissioner- Chris Mehl: Approve Commissioner- Cynthia Andrus: Approve Commissioner- I-Ho Pomeroy: Approve 7. 10:57:24 PM GMD Development LLC and Homeword request for financial support from the City Affordable Housing Fund for the construction of up to 136 units of affordable rentals on property located between North 12th and 14th Avenues, South of Oak Street and North of Manzanita Drive (Thomas) 10:57:33 PM Staff Presentation Community Development Director Wendy Thomas gave the staff report for the GMD Development LLC and Homeword request for financial support from the City Affordable Housing Fund for the construction of up to 136 units of affordable rentals on property located between North 12th and 14th Avenues, South of Oak Street and North of Manzanita Drive. 11:02:03 PM Commission questions for Staff. The Commission and Staff discussed the 60% and 40% funding recommendations, the Staffs recommendation of splitting FY15 and FY16 funding, the applicant's prior building projects, past track record of the applicant, if the applicant would receive other grant funds and will the City's funding be the last one in. 11:08:08 PM Applicant Presentation The Applicant representative gave their presentation for the GMD Development LLC and Homeword request for financial support from the City Affordable Housing Fund for the construction of up to 136 units of affordable rentals on property located between North 12th and 14th Avenues, South of Oak Street and North of Manzanita Drive. 11:22:25 PM Commission questions for Applicant The Commission and Applicant discussed tax credits, the amount the City would spend per unit, formulas, rules on compliance including income verification, the fact that a tax credit investor is involved, the 40% and 60% and how those figures play a part in the funding of the project, possibly less as recommended, federal rules and how long these stay restricted, if the City gets the money back if they do not build, timeframes and expirations and the fact that the project needs to be in place in service by the fall of 2015. 11:31:01 PM Public Comment Mayor Krauss opened public comment. Page 14 of 17 May 11,2015 Bozeman City Commission Minutes 11:31:10 PM Luke Howard,Public Comment Mr. Howard spoke on behalf of SWMBIA and is in support of this request. He urged the Commission to support this. It shows partnerships and cooperation. 11:32:57 PM JeffRupp,Public Comment Mr. Rupp spoke on behalf of HRDC. He spoke regarding the Stoneridge project. This would service them well. They want this project. We need to stay flexible. This is a project that we need in Bozeman. 11:36:21 PM Andres Lewendal,Public Comment Mr. Lewendal stated that he is part of CAHAB and they are recommending $50,000 for this project. 11:37:08 PM Aevin Thane,Public Comment Mr. Thane spoke regarding the AMI rents. He spoke regarding the CAHAB Vote. 11:38:16 PM Public Comment closed Mayor Krauss closed public comment. 11:39:06 PM Motion to authorize the use of Affordable Housing Funds supporting the GMD Development's application to the Montana Board of Housing for low income Housing tax credits for up to 136 units of rental units affordable to household earning 60% or less of Area Median Income (AMI). Commissioner- Chris Mehl: Motion Commissioner - Cynthia Andrus: 2nd 11:39:40 PMAmendment to the Main Motion to make the amount$100,000. Deputy Mayor - Carson Taylor: Motion Commissioner- Cynthia Andrus: 2nd 11:40:08 PM Commission discussion on the Amendment Deputy Mayor Taylor feels that we need to support this. There should be a consideration of splitting it between the City and the for-profit developer. Cr. Pomeroy spoke regarding clarification on the motion. Mayor Krauss spoke regarding doing away with the 60% level and his opposition. Cr. Mehl spoke of other programs. This program doesn't work without tax credits. They can always come back and ask for more. He is for the $125,000-$200,000 range. Cr. Andrus stated that she would go $150,000-$200,000. Page 15of17 May 11,2015 Bozeman City Commission Minutes 11:47:35 PM Vote on the Amendment to the Main Motion to make the amount $100,000. Deputy Mayor- Carson Taylor: Motion Commissioner- Cynthia Andrus: 2nd Mayor- Jeff Krauss: Disapprove Deputy Mayor - Carson Taylor: Approve Commissioner - Chris Mehl: Disapprove Commissioner - Cynthia Andrus: Disapprove Commissioner-I-Ho Pomeroy: Disapprove 11:47:58 PM Amendment to the Main Motion to make the amount$200,000. Commissioner- Chris Mehl: Motion Commissioner - I-Ho Pomeroy: 2nd 11:48:06 PM Commission discussion on the Amendment Deputy Mayor Taylor stated that he is going to vote no because he thinks this amount is more than they need. When asked we won't be able to fund other programs. 22 houses per year will consume more than$200,000. Cr. Mehl stated that he is willing to take the risk. Mayor Krauss stated that this is clearly a place where we need it. He spoke regarding the past with this budget item. Understand that the change in the policy is the problem. Clearly 60% is the level we need to serve. Cr. Pomeroy stated that this is a good return on the City investment. We all know our community needs affordable housing. 11:54:02 PM Vote on the Amendment to the Main Motion to make the amount $200,000. Commissioner - Chris Mehl: Motion Commissioner - I-Ho Pomeroy: 2nd Mayor- Jeff Krauss: Approve Deputy Mayor- Carson Taylor: Disapprove Commissioner - Chris Mehl: Approve Commissioner- Cynthia Andrus: Approve Commissioner-I-Ho Pomeroy: Approve 11:54:32 PM Vote on the Main Motion to authorize the use of Affordable Housing Funds supporting the GMD Development's application to the Montana Board of Housing for low income housing tax credits for up to 136 units of rental units affordable to household earning 60% or less of Area Median Income (AMI) as amended. Page 16 of 17 May 11,2015 Bozeman City Commissioit Minutes Commissioner- Chris Mehl: Motion Commissioner- Cynthia Andrus: 2nd Mayor- Jeff Krauss: Approve Deputy Mayor- Carson Taylor: Disapprove Commissioner- Chris Mehl: Approve Commissioner- Cynthia Andrus: Approve Commissioner- I-Ho Pomeroy: Approve H. 11:54:54 PM FYI/Discussion The Staff and Commission discussed the June 29th meeting and the July 6th meeting. They agreed that June 29th will only be a placeholder only for final budget ap�roval if needed. The Commission would like to cancel July 6t" meeting due to the 4t of July holiday. I. 11:57:21 PM Adjournment Mayor Krauss adjourned the meeting at 11:57 p.m. y. .. Jeffrey K.Krauss ,t �1 AOTTEST:, ° Stacy hnei),CM 4 s n`tiV C O PREPARED BY: t Stacy Ulmen, CMC E City Clerk Approved on: �£ Page 17of17