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HomeMy WebLinkAbout1989-04-17 . , \, l: it._ . ~~ MINUTES OF THE MEETING OF THE CITY COMMISSION BOZEMAN , MONTANA April 17, 1989 ************************ The Commission of the City of Bozeman met in regular session in the Commission Room, Municipal Building, April 17, 1989, at 2:00 p.m. Present were Mayor Stiff, Commis- sioner Hawks, Commissioner Vant Hull, Commissioner Martel, Commissioner Goehrung, City Manager Wysocki ,City Attorney Becker 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 It was moved by Commi-5'9ioner Hawks, seconded by Commissioner Vant Hull, that the minutes of the regular meetings of April 3, 1989 and April 10, 1989 be approved as amended. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Hawks, Commissioner Vant Hull, Commissioner Martel, Commissioner Goehrung and Mayor Stiff; those voting No, none. ort from the ad hoc committee to devel- Discussion - op a compre City Manager Wysocki stated that a memo from Commissioner Hawks was submitted in that a deadline of May 3 be set for the committee to submit its report to the staff for its review, and that a June 27 public hearing be set before the Zoning Commission. Planner Ron Brey indicated that he has been the Planning staff member who has worked with the ad hoc committee to develop a comprehensive sign ordinance. He stated that the committee discussed this proposed timeframe at last week's meeting, noting that they agreed to meet on April 19, April 26 and May 3. He noted it is their plan to have a draft report, which will be in the form of an ordinance, nearly completed by the end of that meeting; and staff is to finalize that report, for the committee's review on May 24. He noted that staff input will include review by the City Attorney to ensure compliance with legal issues. The Planner stated that this tlmeframe will allow the document to be revised by the committee. with the final draft ordinance being completed nearly a month prior to the Zon- Ing Commission's public hearing on the document. He noted that if the Zoning Commission takes action at its June 27 meeting, the City Commission can then consider this item at a 04-17-89 . ."("~~:~'~{- ::;~.~'" -. .';., ,:~:' :...~~._,. l\ L I' ..~; . " i, -2- July meeting. He cautioned, however, that the document will be 20 to 25 pages long; and it may require extensive discussion time; and more than one meeting may be required be- fore a recommendation is prepared for Commission consideration. In response to a question from Mayor Stiff, Planner Brey Indicated that no commit- tee member has dropped out during this process. He noted that the committee established that nine of the twelve members constitute a quorum; and there have been times since the first of the year when a quorum has not been in attendance. He noted that has slowed the process, although discussions were held during thQse meetings. He also noted that many of the difficult, basic issues were discussed, with members trying to negotiate an \. .",' "acce"ptable compromise, during the meetings held in January, February and March. He noted those issues have been basically resolved; and they are once again ready to make progress in their deliberations. Planner Brey stated that City Attorney Becker will have a substantial number of Issues to review to ensure consistency and compliance with legal requirements. He noted that is the one element of this proposed tlmeframe that could be difficult to meet. Commissioner Hawks suggested the possibility of including the public hearing on the proposed sign ordinance with the public hearings on the proposed revisions to the Zone Code. Planner Brey responded that he feels the two items should be considered separate- Iy, although the structure of the sign ordinance will be based on the structure of the Zone Code. He then reminded the Commission that because of the parallel construction of the ordinances, the sign ordinance will require revision to conform with the new Zone Code; but that revision process should be much easier than this initial process. Commissioner Vant Hull asked if the recommendations from the ad hoc committee have been used In other areas, noting that would ensure the legality and workability of the recommendations. The Planner stated that some of the recommendations are taken from actual working situations; others are not. He noted that in some instances, those regulations in use In other communities are unacceptable; and the committee has agreed on a compromise situa- tlon which is not existent in any other community. He stated that is why legal review of the document Is so necessary. In response to a question from Mayor Stiff, Planner Brey stated that there have been majority votes on all points Included in the committee's proposed ordinance. He in- dicated that at the present time, it appears the Commission will receive 12 additional re- ports, one from each of the individual members, noting those reports wi" Identify specific areas of concern. Commissioner Goehrung asked if a slide presentation could be included, noting it 04-17-89 f/" + \. '. ~ . , -3- would graphically portray examples of which existing signs would be in compliance with the various criteria and which would not. Planner Brey Indicated that would be a possibility. He noted the committee has in- ventoried twenty signs along East Main Street, West Main Street and North 7th Avenue; but that inventory is currently in tabular format. The Planner then noted it will be diffi- cult to present this lengthy, technical information in a format which can be understood by the general public, along with its impact on existing signs. He indicated that slides may be one way to assist in that presentation. Commissioner Hawks stated that he has distributed to the Commissioners and Plan- ner Brey copies of a magazine article concerning a computer program which converts a 3Smm photograph to graphics, then allows an Individual to move those graphics. He noted this could possibly allow a photo of an existing non-conforming sign to be changed into a conforming sign through a graphic demonstration. The Commissioner stated he does not support the City's purchasing of such a system for this presentation; however, he sug- gested the system could possibly be rented if it is available locally. The Planner responded that he will research that possibility. Mayor Stiff asked City Attorney Becker if he will be able to meet the proposed time- frame. The City Attorney responded that he wilt do his best to do so, noting that it will depend on other legal issues arising at that time. It was moved by Commissioner Vant Hull, seconded by Commissioner Martel, that the Commission acknowledge receipt of the proposed timetable and that It be followed, con- tingent upon legal review being completed. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Vant Hull, Commissioner Martel, Commis- sioner Goehrung, Commissioner Hawks and Mayor Stiff; those voting No, none. uest for classification of use - massa e therapy business as a home occu atlon In an Istrlct City Manager Wysocki submitted to the Commission a letter dated April 8, 1989, from Ms. Ellyn Murphy, 506 North Bozeman Avenue, along with a memo from the Planning staff dated April 13. He stated the applicant is requesting that the Commission determine that the massage therapy business meets the definition of a "home occupation", which is a permitted use in the R-3, Residential--Medium-density, district. Commissioner Hawks noted that the Planning staff indicates in the memo that they denied the application for a home occupation business license on the basis that it generates customer or client traffic. He noted concern that such a regulation severely limits home occupations allowed in the community, even though they may appropriately belong in a res- idential area. 04-17-89 1'\ . 1'\; -4- Planner Tom Sheely reviewed the Zone Code definition of "home occupation", con- tained in Section 18.04.250, as follows: 18.04.250 HOME OCCUPATION. "Home occupation" means the use of a dwelling as an office, studio or workroom for occupations at home by one or more persons residing In the dwelling unit. No home occupation shall occupy more than twenty percent of the gross floor area nor more than four hun- dred square feet of the gross floor area. The activity must be clearly inci- dental to the use of the dwelling for dwelling purposes and shall not change the character or appearance thereof. The Planner stated the Planning staff has carefully reviewed the criteria which it uses in determining whether a proposed use constitutes a legitimate home occupation, un- der the existing Zone Code. He noted that the Zone Code does not specifically address the criteria and regulatory guidelines for determining appropriate uses for home occupa- tion; and it should possibly be revised to include those guidelines. City Manager Wysocki stated the staff has been operating under an Interpretation that any business which has any employees other than oneself does not constitute a home occupation. He also noted that a home occupation may not create client or customer traffic under current policy; however, those criteria are not specifically listed in the code. Commissioner Vant Hull asked if a massage therapy business could be Interpreted as a form of medical care. Planner Sheely responded that the staff reviewed that question and determined it is not a medical type of facility, but is more of a health care facility. Planner Ron Brey cautioned the Commission that off-street parking and landscaping requirements are Imposed on commercial uses; however, no such review is made for home occupations. He noted that is one of the primary reasons the staff has followed the policy it has on the creation of traffic. I n response to a question from City Manager Wysocki, Planner Brey indicated that medical offices are I isted as a permitted use in the R-4 district and a conditional use in the R-3 district. He noted that if massage therapy was considered as a medical office, this request would be required to go through the conditional use process, which would in- c1ude off-street parking review. In response to a question from Commissioner Vant Hull, Planner Brey indicated it would be difficult to enforce a code which would allow home occupations which generated less than a specified income figure. Mrs. Ellyn Murphy stated she feels her business falls under the definition of a "home occupation". She noted that the number of clients that come to her residence is limited; and she has no more than one client per hour. City Manager Wysocki cautioned the Commission about Imposing blanket regulations, particularly those which may require paved off-street parking areas, on all home occu- pations. He noted that this home, as well as others that may be involved in home occupations, may be on the Historic Register; and compliance with those regulations must 04-17-89 ..:"::. .:'J.'~ ' . ~,~:''''.......~ r:~ 4~ -5- be carefully observed. The City Manager then indicated that the new business licensing regulations have resulted in an increase in the number of home occupations being reviewed for compliance. He noted that the staff has consistently followed the same policy In reviewing this applica- tion since the 1970's; and that is the policy which has led to this recommendation for de- nial. Commissioner Martel noted the main reason given for denial of this application is the client traffic to the residence. He noted that Mrs. Murphy indicates in her letter that she has 172 client visits in her home last year. He stated that is substantially less than one visit per day, which may create less impact than one's visitors. Planner Sheely indicated that, if the Commission so chooses, an appropriate action would be to determine that a massage therapy business is acceptable in the R-3 district under the definition of "hom~occupation". It was moved by Commissioner Martel, seconded by Commissioner Goehrung, that the Commission determine that a massage therapy business is acceptable In the R-3, Res- idential--Medlum-denslty, district under the definition of "home occupation". The motion carried by the following Aye and No .vote: . those voting Aye being Commissioner Martel, Commissioner Goehrung, Commissioner Hawks, Commissioner Vant Hull and Mayor Stiff; those voting No, none. Presentation from Dr. King re rabies Mayor Stiff stated that Dr. King has requested an opportunity to address the Com- mission regarding rabies in Gallatin County. Dr. Edward King, Gallatin County Health Officer, submitted to the Commission sta- tistics published in September 1988 for Calendar Year 1987. He noted that Gallatin County is located on the northwestern edge of an endemic rabies area involving mainly skunks. He stated that Gallatin County has had two cases of rabid skunks in the past fifteen years. He noted the last quarantine was invoked in 1982, when a rabid skunk was found. Dr. King noted that immunization of cats and dogs is important, since that is the medium through which rabies would most IIkety be passed on to humans. He noted that in a quarantine situation, animals may not be transported into or out of the county unless they have been properly vaccinated. He stated that if an animal bites a human during a potential rabies problem, and no proof of vaccination or ownership can be readily de- termlned, the animal will be tested for rabies. The doctor noted that this Includes sac- rificing the animal. He then indicated that If ownership can be readily determined, that individual must restrain the animal; and it must have a physical examination to ensure that it is free from rabies. 04-17-89 ... .... J ",j .t~ -6- Dr. King indicated that rabies has not been a significant problem In wild animals in contact with dogs and cats. He also noted that approximately three times as many cats as dogs may become infected with rabies, since they are more likely to come In contact with wi Id animals. Dr. Edward King stated that there were two human post-exposure treatments for rabies in 1987; three in 1988 and none so far in 1989. He indicated the treatment process for humans has changed, so it now involves six injections over a two-month period, noting the process Is much less painful to the patient than the former process. He Indicated that the cost, however, is from $600 to $800. Dr. King then stated that rabies is a uniformly fatal disease, whether it be in a human or an animal. He indicated it Is important to begin the post-exposure treatment process in humans within a short period of time, noting it may not be effective if a longer period of time has elapsed. Dr. King indicated that in a non-quarantine situation, he may submit a written re- quest to the Humane Society for release of an animal for a diagnostic rabies examination if the owner cannot be found. He stated that has happened a couple times in the past month, noting that spring is the time when rabies becomes more prevalent. I n response to a question from Commissioner Goehrung, Dr. King stated that rabies may appear In an animal from two weeks to a month following a bite, and up to nine months after a bite in a human. Commissioner Goehrung then asked Dr. King if rabies seems to be more of a prob- lem In dry years; Dr. King Indicated he is not prepared to respond. Commissioner Hawks asked if a comprehensive program for rabies inoculation would be beneficial. Dr. King stated that a good protective ring for humans through inoculation of at least 70 to 80 percent of domestic animals is essential. He estimated that at the present time, 30 percent of the dogs and 15 percent of the cats in the county are immunized. He noted that to increase the inoculation level is a fairly difficult process. Commissioner Hawks noted the veterinary community was not very responsive to a proposed rabies clinic, questioning whether that type of response should have been antic- ipated. Dr. King stated that physicians were also not receptive to the Immunization clinics, when those clinics were started for children approximately fifteen years ago. He indicated they much preferred to perform those Immunizations in their own offices, carefully maintaining those records there rather than at the Health Department. He noted It also 04-17-89 r . ')" .... ; -7- provided an opportunity to complete a physical examination on the children. The doctor then stated that at the present time, approximately 50 percent of the immunizations are done at the Health Department. He stated that a change in law requiring that all children receive their immunizations beforeattendin9 school has helped to increase the percentage of children receiving their Immunizations. Dr. King then cautioned the Commission to consider whether conducting rabies clin- ics will shift costs from the private sector to the public sector, and whether they are will'- Ing to accept those additional costs. He also noted that a records retention area must be designated so the veterinarians know where to call to obtain information. Dr. King indicated, however, that if the demand is there, the City may wish to conduct a public clinic or consider sponsoring one in conjunction with the County. He noted that the American Veterinary Medical Association supports animal immunization clinics; however, many of the local veterinarians, including the one serving on the Board of Health, do not feel it is appropriate. Dr. Edward King stated that if another rabid skunk incident occurs, the number of current rabies vaccinations in the county will increase dramatically. The Commission thanked Dr. King for his presentation. B rea k - 3: 22 to 3: 27 p. m . Mayor Stiff declared a break from 3: 22 p.m. to 3: 27 p. m., in accordance with Com- mission policy established at their regular meeting of March 14, 1983. Preparation of City Commission budget unit for Fiscal Year 1989-90 City Manager Wysocki submitted to the Commission a proposed draft of the City Commission's budget unit for Fiscal Year 1989-90. Commissioner Vant Hull raised the issue of Commissioner salaries. She noted the Commission has not revised its salary for several years; and three Commissioners are to be elected, with their terms to begin in January 1990. She indicated that an increase may generate more interest in people wishing to serve as a City Commissioner. Mayor Stiff stated support for the suggestion. He questioned, however, If now is the time to increase the Commissioners' salaries, especially when staff increases should definitely be considered. Commissioner Hawks noted It costs him, and probably others, more to serve than the salary established for Commissioner. He also indicated that he feels that the Commissioners sho\:Jld rece~v-e some sort of increase, noting that the City employees receive an annual increase. 04-17-89 P, . ) -8- Commissioner Martel concurred that personal sacrifice is a factor In deciding wheth- er or not to run for the office; however, he noted that sacrifice varies from individual to individual. He'then noted that the City has had no shortage of Commission candidates in recent history. Commissioner Goehrung indicated support for incremental increases, noting those are easier to justify and fund than substantial increases which result from failure to In- meeting, effective January 1, 1990. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Goehrung, Commissioner Hawks and Commissioner Vant Hull; those voting No being Commissioner Martel and Mayor Stiff. Mayor Stiff requested that the staff adjust the amount budgeted for "salaries" to accommodate this change. order. It was moved by Commissioner Hawks, seconded by Commissioner Vant Hull, that the Commission approve the inventory of the Depository Bonds and Pledged Securities as of March 31, 1989, and a listing of these be set forth as follows: DEPOSITORY BONDS AND SECURITIES MARCH 31, 1989 RATE MATURITY RECEIPT NO. TOTAL AMOUNT FIRST SECURITY BANK - Bozeman Federal Deposit I nsurance Corporation Trusteed with United Bank of Denver: North Slope Borough Alaska GO 9.50 06/30/90 312086 North Slope Borough Alaska GO 9.50 06/30/90 314724 Minn. Hgs. Fin. Ag. 9.10 02/01/93 144337 Blaine Minn. GO Tax Incr. 8.10 02/01/97 478054 Saint Cloud, Minn. GO RFDG 8.25 02/01/97 478625 $ 100,000.00 105,000.00 45,000.00 100,000.00 100,000.00 100,000.00 04-17-89 6.00 6/04/89 H 1127 6.00 1/15/90 H 29829 5.25 12/31/93 H30310 5.30 12/31/94 H30311 5.35 12/31/95 H30312 5.20 1/01/96 H943 -.'-... ....:;. -9- State of Hawai i 11. 50 6.70 So. Dakota Health Ed Rev U. S. Treasury Notes 7.375 SUB TOTAL - First Security Bank - Bozeman Pledging Amendment to Repurchase Agreement: U. S. Treasury Note 8.125 11. 25 Western Wy CCD GO Sherburne Elk River Law Fac. 6.50 6.25 Sherburne Elk River Law Fac. Montana St Bd Hsg SFM 6.10 Total to Repurchase Agreement TOTAL - First Security Bank - Bozeman MONTANA BAN K - Bozeman Federal Deposit Insurance Corporation Trusteed with Federal Reserve Bank of Minneapolis: Grade Sch. Bldg. Dist #11 of Powell Co. (Ovando), MT, Sch. Bldg. Bd. City of Polson, MT GO Bd. of 1970 Trout Creek, MT Sch. Dist. #6 of Sanders Co., School B Idg. Bd. Flathead Co. SD #44 (Whitefish) TOT AL - Montana Bank of Bozeman, Montana FI RST CITIZENS BANK OF BOZEMAN - Bozeman Federal Deposit Insurance Corporation Trusteed with First National Bank of Minneapolis: u . S. Treasury Notes 6.75 8/01/90 9/01/90 2/15/91 5/15/91 7/01/91 2/01/92 2/01/91 6/01/97 9/30/90 TOTAL - First Citizens Bank of Bozeman - Bozeman FIRST BANK BOZEMAN Federal Deposit Insurance Corporation Trusteed with First Bank National Association Bay County Mich. TOTAL - First Bank Bozeman 7.50 5/01/93 181125 069431 200,000.00 100,000.00 1,000,000.00 $1,750,000.00 688641 715953 226882 1,000,000.00 150,000.00 526060 200,000.00 200,000.00 100,000.00 $1,650,000.00 $3,400,000.00 526061 161429 $ 100,000.00 1,000.00 1,875.00 19,000.00 19,000.00 19,000.00 120,000.00 $ 179,875.00 $ 100,000.00 9893 200,000.00 $ 200,000.00 $ 1 00 ,000.00 000919 300,000.00 $ 300,000.00 04-17-89 f1:... ....J~.'t -10- This is to certify that we, the Commission of the City of Bozeman, in compliance with the provisions of Section 7-6-207, M.C.A., have this day certified the receipts of the Federal Reserve Bank of Minneapolis, the First Bank of Minneapolis, the United Bank of Denver and the First Bank National Association for the Depository Bonds held by the Director of Finance as security, for the deposit for the City of Bozeman funds as of March 31, 1989, by the several banks of Bozeman and approve and accept the same. ALFRED M. STIFF, Mayor WALTER MARTEL, Commissioner JAMES L. GOEHRUNG, Commissioner MARY B. VANT HULL, Commissioner R. L. HAWKS, Commissioner The motion carried by th~ following Aye and No vote: those voting Aye being Commissioner Hawks Commissioner Vant Hull, Commissioner Martel, Commissioner Goehrung and Mayor Stiff; those voting No, none. Discussion - FY I Items City Manager Wysocki presented to the Commission the following "For Your Informa- tlon" items. (1) Letter from Jim Belsey, Madison--Galiatin Chapter of Trout Unlimited, ex- pressing concern about potential pollution of Sourdough Creek and Spring Creek by the proposed laser crystal plant. (2) Letter from William S.Rose, Director of Physical Plant, Services at MSU, inviting the Commissioners to attend a schematic design presentation of the Centennial Mall, to be held at 9: 30 a. m. on May 2, 1989. (3) Reminder of the Interagency 'Breakfast to be held at 7:00 a.m. on Wednes- day, Aprl I 1 9, at the Baxter Hotel. (4) Commissioner Hawks announced that on Wednesday morning, the ad hoc com- mlttee will be meeting to establish criteria for selection of a consultant, after which the committee will review the applications submitted in response to the "request for quaJlfica- tions. " He noted the deadline for these applications is Wednesday , Apri I 19. (5) Copy of a claim received by the City on Friday, Apri I 14, as filed by Three Rivers Disposal. The Commission requested that an executive session be held as soon as possible to review this claim. (6) The City Manager Indicated that the staff is currently in the bUdget pro- cess, noting that initial meetings with the various division heads should begin in the next two weeks. 04-17-89 04-17-89 r~.. ~ .. -t~..~ -11- t....... . t'\ -12- (11) Commissioner Goehrungindicated he will attend the Leadership Bozeman sem- inar to be held on Thursday. He noted topics of discussion will Include recreation, tour- ism and transportation. He noted this is the next to the last meeting In this series. (12) Commissioner Hawks asked who will be attending the "Fundamentals of En- dowment Development" seminar on May 6, noting there should be some Commission rep- resentatlon. Commissioner Goehrung responded he will make a decision on attending that meeting next week. Mayor Stiff indicated he attended a similar session a couple years ago, noting it was worthwhile but he does not plan to attend this seminar. Consent Items City Manager Wysocki presented to the Commission the following Consent Items. A Claims It was moved by Commissioner Hawks, seconded by Commissioner Vant Hull, that the Commission approve the Consent Items as listed above, and authorize and direct the appropriate persons to complete the necessary actions. The motion carried by the follow- Ing Aye and No vote: those voting Aye being Commissioner Hawks, Commissioner Vant Hull, Commissioner Martel, Commissioner Goehrung and Mayor Stiff; those voting No t none. Recess 4:00 p.m. Mayor Stiff declared a recess at 4:00 p.m., to reconvene at 7:00 p.m., to conduct the scheduled pUblic hearings. Reconvene - 7 :00 p. m. Mayor Stiff reconvened the meeting at 7:00 p.m. for the purpose of conducting the scheduled public hearings. No. 2742 - settin ublic hearin for tax relief as This was the time and place set for the scheduled public hearing on Commission Resolution No. 2742, as ilpproved by the City Attorney, entitled: 04-17-89 J\' Ifl' . ~ ".. '\ -13- COMMISSION RESOLUTION NO. 2742 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, ESTABLISHING A PUBLIC HEARING TO HEAR PUBLIC COMMENT ON THE APPLICATION OF COLOR WORLD PRINTERS FOR TAX REDUCTION UNDER SECTION 15-24-1401, ET SEQ, MONTANA CODE ANNOTATED. AND CITY OF BOZEMAN COMMISSION RESOLUTION NO. 2660. Mayor Stiff opened the public hearing. Mr. Mike Burgard, Business Manager of Color World Printers, submitted a slide presentation on their request for tax relief. He noted the original presentation on this application was submitted to the Commission at their regular meeting of March 13, 1989. He indicated some concerns were raised by the Commissioners; and this presentation will include responses to those concerns. Mr. Burgard reminded the Commission that Section 15-24-1402, M.C.A., and Com- mission Resolution No. 2660 allow for qualifying new or expanding businesses to apply for tax relief. He reminded the Commission that expanding businesses must have $250,000 In qualifying improvements; and new businesses must have $500,000 in qualifying costs to ap- ply for this tax relief. Under this program, a successful business will receive a 50 per- cent tax break for the first five years; and the percentage of tax Increases by 10 percent each year for the next five years, so that after ten years the business Is paying 100 percent of its taxes. Mr. Burgard noted this provides a positive cash flow, which encour- ages a business to make the capital investment necessary to expand and helps to "even the playing field". Mr. Mike Burgard gave a brief history of Color World Printers, noting it has been in business for 21 years. He stated that In 1981, his parents sold Color World and after two different ownerships, repurchased It in 1985 when it was on the brink of bankruptcy. He stated that since that time, they have operated it as a family business; and it has now turned around and is becoming a successful business once again. Mr. Burgard stated that the company recently purchased a Heidelberg four-color MO press, an automated paper cutter, an automated production system and miscellaneous accessories, which are the qualifying expansion equipment items upon which they are seek- Ing this tax relief. . Mr. Burgard then addressed the' concerns raised by the Commissioners at their meeting of March 13, when this application was Initially considered. He stated that this application does not open the floQd gates for other applications, because qualifying for this program is difficult. He noted that the qualifications are rather stringent, indicating they are listed at the beginning of his presentation. He stated another concern raised was ero- sion of the tax base through this relief program. He reminded the Commission that this provides for relief of a portion of the taxes over a ten-year period; then the entire amount Is due and payable each year. He stated this encourages a business to expand or 04-17-89 ,..,.... ."'-'\ -14- locate in Bozeman; and that additional tax base is realized in part for the first ten years and fully after that time. He then stated another Issue was the competitive edge that this program could provide. He reminded the Commission that this program is available to any and all qualifying businesses; and he does not feel it establishes a competitive edge. He noted there are three major fUll-service printers in Montana; and they operate in different markets. Mr. Mike Burgard stated that some of the Commissioners had also expressed concern that this application was being submitted after the equipment had been installed. He stat- ed that a discussion with the Department of Commerce in Helena revealed that the law is written so that the application is filed In the year In which the improvements were Installed or the year in which the equipment is first assessed for taxes. He stated that under this program, an application cannot be filed until after the equipment has been installed ,which precludes pre-filing of an application. Mr. Burgard then showed a graph of property tax rates in the northwest region, noting that Montana and Wyoming have the highest tax rates in this area. He noted these significantly higher rates discourage industry locating here; and every effort should be made to encourage them to locate here or to expand. Mr. Burgard stated that Color World Printers may face additional expansion in the future, which could cause them to relocate from the current site. He indicated it is their intention to remain inside city limits, and on City water and sewer services. He stated, however, that this expansion and future expansions should not have any dramatic impact on the water and sewer services, or on the City's police and fire protection, even though their tax base will be increased. Mr. Burgard stated that Color World operates In a different printing market than other printers in Bozeman. He Indicated that the quick copy printers cater to small print jobs and the local market; and they refer many potential customers to those services be- cause of the type and size of the jobs, and the high price they would charge If they could perform the service. He also noted that they have a smaller and slower press than those of the other two major printers in Montana--Artcraft located locally and Advanced Litho in Great Falls. He indicated that this differential in copy services provides a wide scope of coverage; and they do not compete with each other or cause problems, but rather are syner- gistic. Mr. Burgard stated that their production has grown over the past four years, with iii majority of their Increase being in out-of-state printing. He noted that their Bozeman market has remained the same; and two percent of their printing business is done in Montana. He then stated there is $390 million in printing done in this region each year, noting that Is enough room for all printers. 04-17-89 r'4' ... 4", ~ '\ ~). -15- Mr. Mike Burgard reviewed some of the benefits of expansion. He noted expansion allows for increased business. He noted that this high tech printing operation meets the City's desire to encourage high tech business in the community. He suggested that Bozeman could become the printing center for this area of the country, noting that print- ing is the only segment of the manufacturing industry that is growing in Montana. Mr. Burgard stated that Color World uses local vendors whenever possible. He noted that through their out-of-state printing, they are bringing new dollars into the com- munlty, rather than recycling existing dollars. He noted that their employees are paid quite well; and many of them have purchased homes in Bozeman. Commissioner Vant Hull asked how depreciation of the equipment may impact this tax relief application. Mr. Burgard indicated that his accountant must address that question. In response to another question from Commissioner Vant Hull. Mr. Burgard reiterat- ed that they plan to remain within the city limits, utilizing the City's water and sewer ser- vice system. He noted. however, that industrial space in Bozeman Is fairly limited at the present time. In response to a question from Commissioner Goehrung, Mr. Burgard stated that the City is the only governmental entity to which they must make application for tax re- lief. He noted that the County will abide by the City's decision. City Manager Wysocki reminded the Commission that this application meets the re- quirements of the statute. He noted that this tax relief program provides encouragement for businesses to remain and expand in Montana, rather than relocating elsewhere. He re- minded the Commission that they adop~ed the necessary resolution to take advantage of this program; and approval of this application could send an Important message to the business community. Mr. Mark DeGroot, First Bank Bozeman, stated he is familiar with Color World's fi- nancial position In his capacity at the bank. He stated they are a vibrant, growing com- pany, noting they bring new dollars into the community. He then stated that few busi- nesses qualify for this type of program; however, he encourages the Commission to ap- prove this application as well as other qualifying applications which may be submitted. Ms. Leslie Schultz. employee of Color World Printers, stated that th is company pro- vides a safe, good paying environment for its employees. She stated the employees take pride In their work, noting that they generate a high-quality product of which they are proud. She cited, as an example, a catalog which they just completed for an art gallery in New York City--the second one for that firm. She indicated that their employers are fair and honest, as well as ethical In their business dealings. Ms. Schultz then stated that the employees support Color World in this application and encouraged Commission ap- proval. 04-17-89 ~ .... ..I!II...,," , .Ii ~~ ... \, -16- Mr. Larry Addink, CPA, Veltkamp,Simmons, Stannebein and Bateson, stated he has done the books for Color World Printers for the past ten years. He stated those books reflect the buslness's struggle in 1984 and 1985 , with a steady improvement over the past four years. He noted the company is now reaching a sound position, noting that ap- proval of this tax relief application could help them reach that position and undertake ex- pansion, thus becoming a more viable business in the community. Mr. Addink then ad- dressed Commissioner Vant Hull's question ,indicating that the equipment will be deprecl- ated over a seven-year life for tax purposes; however, he noted that process does not af- fect the manner in which the County values the equipment. He then indicated support for th is application, encouraging Commission support as well. Mrs. Daria Joyner, Bozeman Area Chaniber of Commerce, submitted a letter of sup- port for this application. She noted that more new jobs are created in the community through expansion of existing businesses than through new businesses. She then indlcat... ed support of this application, as well as noting they will support appropriate applications submitted in the future. She thanked Color World for submitting this application, noting it is often a lengthy process in which businesses do not wish to become Involved. She then encouraged Commission approval of the application. Mrs. Linda Wycoff, Gallatin Development Corporation, stated support for the pro- gram as a whole and encouraged Commission approval of this application. Mrs. Becky Ellig, Downtown Business Association, stated support for the concept and this application, noting that bringing expanded or new business to the community helps the retail community. Mr. Norm Millikin, College of Business at MSU, stated he serves on the Executive Board of the Council on Education. He addressed two issues, noting that of the 400 stu- dents In marketing which graduate each year, one"""halfare placed in jobs outside Montana. He also noted that in 1980, the Census Bureau projected a growth rate of 24 percent for Montana; and as of 1989, the population has decreased by 20,000. He stated the State is in need of economic development, and every opportunity should be taken to encourage it. Mr. Millikin then stated that Bozeman is building a reputation for being a community which is fair in its treatment of new or expanding businesses. He then encouraged the Commission to proceed with Its policy for controlled economic growth through reasonable management. He indicated support for this application and encouraged Commission ap- proval. City Manager Wysocki stated the Commission has just received a letter of support for this application from Mr. Loren Grosskopf, Chief Financial Officer for I LX Lightwave Corporation. He then reminded the Commission of the letter of opposition which they had received from Mr. Bob Graff, Artcraft Printers during their deliberations on this issue at 04-17-89 ;.. .,.....' .It t\:;~ '\ . -17- their meeting of March 13, 1989. Mr. Mike Burgard stated that several other businesses in the community support their application but were unable to attend this hearing. He noted they include Toomey Mathis, Life Link, Skyland Scientific, four graphic arts businesses and two quick copy services. Commissioner Vant Hull noted that in 'his letter of opposition, Mr. Graff indicated that he would apply for tax relief If this application were approved. She then asked if some type of time limit should be placed on applications. Mayor Stiff stated he had shared that same concern. He then cited the State Stat- ute, which specifically limits the time period in which application may be made. He noted that application must be made in the first tax year in which the benefits are to be re- ceived or in the preceding tax year. He noted that eliminates submittal of an application for tax relief after the first tax year. No one was present to speak In opposition to the application for tax relief as sub- mitted by Color World Printers. Mayor Stiff closed the public hearing. It was moved by Commissioner Vant Hull, seconded by Commissioner Martel, that the Commission approve the application for tax relief as submitted by Color World Printers. The motion carried by the fOllowing Aye and No vote: those voting Aye being CommisSion- er Vant Hull, Commissioner Martel, Commissioner Goehrung, Commissioner Hawks and Mayor Stiff; those voting No, none. ansion in ran e of This was the time and place set for the public hearing on the Conditional Use Per- mit requested by David Jarrett to allow the expansion in range of permitted uses on Lots 1, 2 and 5, Tal Lane Addition. Thesi~e is more commonly located at 5-19 Tal Lane. City Manager Wysocki stated the Zoning Commission has not completed its public hearing on this application. He then recommended that this public hearing be opened and continued until such time as the Zoning Commission has submitted its recommendation. Mayor Stiff opened and continued the publiC hearing until such time as a recommen- dation is submitted by the Zoning Commission. This was the time and place set for the public hearing on the Conditional Use Per- mit requested by William A. Timmerman, owner of A La Carte Restaurant. to allow the 04-17-89 .1;';",,,., .~.:- .~""'~, ..'~""":>~ ~, 1" .. . , -18- serving of beer and wine as an accessory use to the restaurant located on the east 20 feet of Lot 9 and the west 8.6 feet of Lot 10, Block D, Original Townsite. The site is more commonly located at 233 East Main. Mayor Stiff opened the public hearing. Planner Tom Sheely presented the staff report. He stated that the Zoning Commis- sion conducted the public hearing on this application at their March 28 meeting, after which they recommended approval subject to five conditions. He then reviewed those con- ditions, noting they were revised from those recommended by the Planning staff. He stat- ed the staff had concurred in the Director of Public Service's recommendation that the ap- plicant be required to pave the alley to a 20-foot width along the rear of the business. He noted this recommended condition is consistent with previous conditional use permit ap- plicatlons. The Planner then reviewed the' five conditions recommended by the Zoning Commission. Commissioner Goehrung questioned Condition No.3. After a brief review of the condition, Planner Sheely responded that Condition Nos. 3, 4 and 5 are not applicable in this instance 'and could be deleted, since paving of the alley was the onlylmprovemer'lt recbmmendedby the Planning staff. Mr. William Timmerman, applicant, questioned why he should be required to pave an alley behind a building whi~h he does not own. He indicated that he is not changing the use of his rented space, but is simply adding a service so he can be competitive with oth- er restaurants along Main Street. He stated that the parking spaces in the rear of the building are for the apartments above the store; and his clients park along Main Street and use the front entrance. Mr. Timmerman stated he does not feel that paving of the alley should be tied to this application. because it has no real bearing on his serving beer and wine as an acces- sory use to the existing restaurant; He Indicated that this requirement will also cause fl- nanclal hardship on his business; and he feels it is Improper to require him, as a tenant only, to do so. City Manager Wysocki stated the Commission should recognize that the owner of the property, Mr. John Milner, signed this application along with Mr. Timmerman. He then noted that typically the property owner is the one required to install the improvements; however, the lease may require that the lessee bear those costs. He cautioned that is an issue to be addressed by the lessor and the lessee, rather than any City involvement. Mr. Timmerman indicated that Mr. Milner had stated his intention to pave the alley behind his store at the same time Mr. Ferraro was required to pave his portion of the al- ley and his parking area; however, that was not done because of a disagreement between them. He then stated he is not certain that Mr. Milner would agree to pave the alley at 04-17-89 l#.~...~1'!.-, ,"" '"'. . " -19- this time, since some of his spaces are currently vacant. Mayor Stiff asked how the Commission could justify not requiring that the alley be paved under this application, when the Commission just recently approved a conditional use permit for the adjacent property, with paving of the alley being one of the attached con- ditions. Planner Tom Sheely stated that is the policy upon which the Planning staff and Di- rector of Public Service based their recommendation. He indicated the Zoning Commission considered the aHeY a public right-of-way, thus determining it was not an appropriate condition. He stated it is staff's feeling that the alley provides access to the property; therefore, it is within reason to require that it be paved. Commissioner Martel stated he fee,ls it would be more appropriate to improve the al- ley through a special improvement district, rather than requiring a property owner to pave one small portion of the alley. He noted that the unit cost for Improving an alley would be much better than that for one small portion. Mayor Stiff noted that the application for the bingo parlor next door caused a sub- stantial change In use, while this application does not create any real change. City Manager Wysocki noted the Commission has indicated an interest In air quality and the reduction of particulate matter in the area . He further noted that several of the parking lots, as well as many of the alleys,. in the city have never been paved; and this is one way In which to address that deficiency. Commissioner Vant Hull asked if Mr. Milner should be approached about paving of the alley before this condition is attached to approval of the application as submitted by Mr. Timmerman. The City Manager reminded the Commission that they may attach whatever condi- tions they feel necessary for approval of a conditional use permit. He noted the property owner then must make the determination of whether he is willing to accept those conditions and proceed with the use. I n response to a question from the City Manager, Mr. Timmerman indicated that his expenses have doubled because the business located in the building with his has left. He stated that if he is unable to obtain a license to sell beer and wine, he cannot be competi- tive and, therefore, may not be successful. Mr. Roger Craft Indicated that he was serving on the Zoning Commission when the application for the bingo parlor next door was considered. He reminded the Commission that the parking lot for that facility was located across the alley from the business; and his main entrance to the facility is from the alley. He noted that the applicant was required to pave the parking area and the alley, as well as install a security light at the back entrance, because of those conditions. 04-17-89 S" ...~~". . -20- No one was present to speak in opposition to the requested Conditional Use Permit. Mayor Stiff closed the public hearing. It was moved by Commissioner Martel, seconded by Commissioner Goehrung, that the customary one-week waiting period be waived. The motion carried by the following Aye and No vote: those voting Aye being Commissioner Martel, Commissioner Goehrung, Commissioner Hawks, Commissioner Vant Hull and Mayor Stiff; those voting No, none. Commissioner Hawks stated support for Commissioner Martel's suggestion that alley improvements be made through a special improvement district rather than through a piece- meal approach under each conditional use permit application. Commissioner Goehrung noted that to have the property owner sign a waiver of protest for the creation of a special improvement district helps to provide a funding mech- anism for the improvements. He then indicated he feels it would be appropriate to require such a waiver. Commissioner Martel stated he dOes not feel-that beer and wine as an accessory use to the existing restaurant has any impact on the alley. Commissioner Hawks asked about the implication of a waiver of protest. City Attorney Becker briefly reviewed the statutory provisions for creation of a special improvement district. He noted that those who sign waivers' of protest do waive their right to protest creation of the district; however, they retain the right to protest the method of assessment if It seems unfair. He then stated that since Mr. Milner's name Is on the application for this Conditional Use Permit, he is a part of this process. Break - 8:20 to 8:22 p.m. Mayor Stiff declared a break from 8:20 p.m. to 8:22 p.m., to allow the Commlssion- ers an opportunity to confer with the staff. Commissioner Goehrung suggested the Commission may wish to add a condition requiring a waiver of protest; and if that is not done, paving of that portion of the alley must be completed within eighteen months. Commissioner Martel expressed concern about adding a condition which requires that the property owners sign the waiver of protest, particularly since he is not the one seek- ing this Conditional Use Permit. City Attorney Becker reminded the Commission that failure to meet the conditions of approval can result in revocation of the permit. 04-17-89 &' \. ~ ::~ts,'.. , '" -21- City Manager Wysocki noted that recent discussions have provided estimates of $15 per linear foot for paving of a 16-foot alley. He noted that under that assumption, it would cost approximately $600 to pave the entire 20-foot wide alley behind the 30 feet of this building frontage. He noted that if a waiver Is required, the owner would probably receive an assessment of. $300 for the project at some time in the future. It was moved by Commissioner Goehrung, seconded by Commissioner Hawks, that the Conditional Use Permit requested by William A. Timmerman, owner of A La Carte Res- taurant, to allow the serving of beer and wine as an accessory use to the restaurant locat- ed on the east 20 feet of Lot 9 and the west 8.6 feet of Lot 10, Block D, Original Townsite be approved, subject to the following conditions: 1. That the final site plan shall show the locations and dimensions of the six parking spaces in the rear of the building; 2. That the property owner and the applicant sign a waiver of protest for the creation of a special improvement district for improvement of the alley prior to final site plan approval; and 3. Three copies of the final site plan, containing all conditions, cor- rections and modifications approved by the City Commission, shall be submitted for review and approved by the Planning Director within six months of the date of City Commission approval. One signed copy shall be retained by the Planning Department, one signed copy by the Building Department, and one copy retained by the applicant. The motion carried by the following Aye and No vote: those voting Aye being Commission- er Goehrung, Commissioner Hawks, Commissioner Vant Hull, Commissioner Martel and Mayor Stiff; those voting No, none. This was the time and place set for the public hearing on the Conditional Use Per- mlt requested by David /1;.. Osterman to allow the expansion of an existing mini-warehouse complex on Tract A, May's Tracts, and Tracts 40-Aand 41"':A, Northeast Annexation. The site is more commonly located at 1915 North Rouse Avenue. Mayor Stiff opened the public hearing. Planner Dave Skelton presented the staff report. He stated that the Zoning Com- mission conducted the public hearing on this application at their March 28, 1989, meeting, after which they recommended approval, subject to ten conditions. Planner Skelton stated this application Is for the expansion of an existing mlni- warehouse complex, which Is a permitted use in the M-1, Commercial--Light Manufacturing, district. He noted, however, this site is located in an M-1- T district; therefore, the con- ditional use process is required. The Planner stated that the Commission previously reviewed this application in 1987, at which time it was approved subject to several conditions. He briefly reviewed the 04-17-89 - ."~_~,,'I.,~ .~.:..... ~ '. ~~~.'" .l'\ . -22- proposal, noting It provides for expansion of the facility in three phases, which are to be completed by 1992. He indicated that access to the site is currently from North Rouse Ave- nue; and a second access is to be constructed from East Griffin Drive during construction of Phase III. Planner Skelton stated that under prior approval of this application, two of the at- tached conditions were that the applicant sign waivers of protest for the creation of special improvement districts for the improvement of North Rouse Avenue and Griffin Drive. He stated the applicant did not feel he could meet those two conditions; therefore, he let the time period for approval of the final site plan lapse. He stated that the application before the Commission is the same one that was previously approved. The Planner then stated that the Zoning Commission's recommended conditions for approval at this time did not in- c1ude those two conditions, even though the staff report recommended that they be re- tained. Planner Skelton reminded the Commission that the reason this application is before them is because the site is located in an M-1-T zone. He then indicated that the issues to be addressed through the "T" review include buffering and screening, signage, and uti- lization of the City's sewer system. He stated that the Zoning Commission eliminated the two proposed conditions for signing of waivers because they did not feel that was within the purview of their review process. The Planner then indicated that staff recommended the condition requiring signing of waivers in accordance with current policy. Mr. Roger Craft, Rajah and Associates, Inc., stated he is representing the appli- cant. He stated that Mr. Osterman is In agreement with the conditions for approval as recommended by the Zoning Commission. Commissioner Hawks asked if the subject site is contiguous to East Griffin Drive; the Planner responded it is not. Commissioner Hawks then noted that North Rouse Avenue is a state highway, asking about requiring any improvements to that facility. Planner Skelton stated that a waiver could be required for improvement of one-half of the roadway to local street standards. He noted that if the City were to undertake any type of improvement to that road, it would be required to submit all design standards and construction contracts to the State Highway Department for approval. He Indicated that the City would only become involved only if they wanted the Improvements completed earlier than the State Highway Department's schedule. He then reminded the Commission that Griffin Drive is a secondary state highway. Commissioner Vant Hull noted that the Commission made a conscious decision to re- quire waivers of protest through the conditional use process. I n response to a question from Mayor Stiff, Planner Skelton stated that the staff 04-17-89 4.0. A .>, . . ~.... c ',~4 .."\ -23- submitted its recommended conditions based on the policy which had been established. He noted that attitudes on the Zoning Commission and the City Commission may change from time to time, indicating that is the reason for the Zoning Commission dropping those con- ditions pertaining to waivers of protest. The Planner then stated that the application for a conditional use permit in the "T" district is not only reviewed In terms of the specific criteria for that district, but in terms of the six basic review criteria for conditional use permits as well. He noted those include addressing impacts on the health, safety and wel- fare of the community. Commissioner Hawks asked Planner Skelton to review the specific criteria for this specific "T" district. Planner Skelton stated that the first item is buffering. He noted that this site is totally surrounded by M-1 and M-2zoned property; therefore, this item does not apply. He stated the second item to be reviewed is signage. Under this application, the applicant does not propose to add any signs but to utilize the existing sign along North Rouse Ave,- nue. He noted the third item is utilizing the City's sewer system. He stated the existing mini-warehouse complex is tied to the City's sewer system; therefore, this item has already been addressed. Commissioner Hawks questioned whether the Commission can appropriately address the issue of off-site improvements under this application. Commissioner Martel questioned what impact signing of a waiver of protest may have on this site in the future. City Attorney Becker stated that impacts would be determined by the method of as- sessment for the special improvement districts. He reminded the Commission that signing a waiver does not waive one's right to protest the method of assessment, noting that the as- sessment must be fair. Commissioner Hawks asked how past applications have been treated. Planner Skelton stated that since 1987, approval of conditional use permits for Mike ROdrique's project, CVR Oak, Pacific Steel and Petrolane have Included the requirement for signing of a waiver of protest for the creation of a special improvement district for Griffin Drive. Mr. Roger Craft reminded the Commission that warehousing is permitted in the M-l zone; and this is going through the conditional use process only because the site is zoned M-1-T. He then reviewed the criteria for the liT" designation, noting that transitional districts in different areas of the community are subjected to different criteria. He noted that the items to reviewed under this district have not changed since the code was adopted in 1973. He stated that those conditional use permits approved prior to 1987, including The Rental Shop, CES, Mountain Supply, Rocky Mountain Fence, The Filling Station, Jerry 04-17-89 "~-- .'~:~:' :',:~~~~~iI:::~-- . , -24- Noble Tire, Whalen Tire, Western Glass, Montana Power Company, Powers and Alexander, Oster:fuan's Mini-Warehouses and the expansion thereof, among others, were approved wi.thout requiring waivers of protest. .Mr:. Craft then stated he does not disagree with the concept of seeking waivers of protest; however, he does disagree with requiring them through this process. Mr. Craft stated he feels the Commission should establish a policy if It plans to re- quire waivers, rather than applying the requirement as It deems appropriate. He suggest- ed the poliCY go through the hearing process and then be Implemented so that everyone Is required to follow it. City Manager Wysocki reminded the Commission that the policy was consciously es- tablished in 1987; and actions have consistently reflected that. He noted that Roger Craft served on the Zoning Commission for several years, just resigning this past year. He then asked Mr. Craft if he had voted on any of the conditional use permits which have been listed above. Mr. Craft stated that he participated in the Zoning Commission decisions on many of those items. He noted that he questioned the City's policy to require waivers in 1987; however, he was outvoted on the issue. Mayor Stiff continued the public hearing to 2:00 p.m. on Monday, April 24, 1989. Adjournment - 9:05p.m. There being no further business to come before the Commission at this time, it was moved by Commissioner. Hawks,. seconded by Commissioner Vant Hull, that the meeting be adjourned. The motioncarri.ed by the following AYtJ and No vote: those voting Aye being Commissioner Hawks, Commissioner Vant HuH~ Commissioner Martel, Commissioner Goehrung and Mayor Stiff; those voting No, none. 04-17-89 :.>j ~J'..(Jr:tf<'.'.{"';"'.'