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06-28-21 City Council Work Session MinutesCITY COUNCIL KCITY OF WORK SESSION MINUTES ALISPELL June 28, 2021, at 7:00 p.m. City Hall Council Chambers, 201 First Avenue East The public was able to participate in person in the council chambers or via videoconferencing at: https://us02web.zoom.us/webinar/register/WN hdgamnFUSzC6BgGC3y90IQ. Public comment was also available via email to publiccomment(a-),kalispell.com. A. CALL TO ORDER Mayor Mark Johnson called the meeting to order at 7 p.m. Mayor - Mark Johnson: Present Council Member - Kari Gabriel: Present via video conferencin Council Member - Sandy Carlson: Present via video conferencing Council Member - Sam Nunnallv: Present Council Chair - Chad Graham: Present Council Member - Kyle Waterman: Present Council Member - Sid Daoud: Present Council Member - Tim Kluesner: Present Council Member - Ryan Hunter: Present Staff present included City Manager Doug Russell, Assistant Attorney Johnna Preble, City Clerk Aimee Brunckhorst, Community Development Director Jarod Nygren, Senior Planner P.J. Sorensen, Public Works Director Susie Turner, and City Attorney Charles Harball. B. DISCUSSION ITEMS uo American Rescue Plan Act (ARPA) Allocations and Projects a City Manager Russell provided an overview of this item. 00:02:31 Public Works Director Susie Turner provided information regarding ARPA funds, the competitive nature of the funds, how they are distributed, the application process and deadlines. 00.09:41 Public Works Director Susie Turner spoke regarding $19.6 million dollars in projects the city plans on applying for ARPA funds for. All the proposed projects are on the current Capital Improvement Plan. She provided specifics about various projects relating to their ability to compete for the funds. Director Turner is still working through the final projects. She spoke regarding match calculations and ranking. She also explained restrictions regarding eligibility. Director Turner explained deadlines and timelines for applications and utilizing the money. Applications for the competitive grants is July 15, 2021. 00:09:48 Director Turner spoke regarding the specific projects the city plans to apply for. She explained that we can bundle projects together. She is still working through the final projects as she maximizes the strategies for getting the most out of the competitive portions. Page 1 of 6 Kalispell City Council Minutes, June 28, 2021 00:16:22 Councilor Waterman asked about the possibility of a reduction in user rates for water and sewer if all projects were funded. 00:18:02 Councilor Daoud asked about the strategy for repairs needed to the wastewater treatment plant fermenter. Public Comment Mayor Johnson opened public comment on this item. Seeing none, he closed public comment. 98a 2. Montana Marijuana Regulation and Taxation Act . 1 a City Manager Russell provided an overview of the presentation to follow. 00:21:28 Johnna Preble provided background information regarding the State of Montana's recently passed Marijuana Regulation and Taxation Act and the related legal issues. The act provides for licensing of providers of recreational marijuana and provides some authority to regulate among local jurisdictions. The act provides that the Department of Revenue will provide rules and regulations in October 2021. Licensed providers may be looking to open shop as early as January 2022. She spoke to the tax factors that come into play with this Act. 00:25:39 Community Development Director Jarod Nygren provided background related to planning and zoning as it pertains to this act. He provided some examples of decisions that the Council could consider as they move this forward. He explained the importance of Findings of Fact with whatever way we approach. 00:27:04 Senior Planner P.J. Sorensen spoke to the current city zoning regulations. He provided examples of how other jurisdictions have handled marijuana zoning. Planner Sorensen provided examples of how the city currently zones similar businesses. He provided examples of zoning criteria that may be appropriate, and possibilities such as buffers, and other possible considerations. An interactive GIS map was shown to Council showing different zoning districts. Planner Sorensen spoke to whether Council may want to use a full conditional use permit or an administrative use permit. Language in the state statute that limits signage is still unclear. 00:34:22 Councilor Daoud asked about the state rules related to the use of marijuana and related restrictions around use within a public space. Attorney Preble answered questions from Council. Councilor Daoud made a comparison between a pharmacy or liquor store and a marijuana dispensary. If the use of marijuana is not allowed within a dispensary, Councilor Daoud would like Council to consider zoning them similar to a pharmacy or liquor store. 00:36:48 Councilor Kluesner confirmed with staff that city zoning does not allow anything that violates Federal law. 00:38:34 Attorney Preble explained the definition of unduly burdensome within the Act and the Federal Government's current stance related to marijuana. Page 2 of 6 Kalispell City Council Minutes, June 28, 2021 00:39:57 City Attorney Harball spoke to the actions / non -actions of the Federal government related to marijuana. He then provided information about the way in which the citizenry could prohibit marijuana in a jurisdiction per the state Act guidelines. Council discussed the percentage of voters that approved recreational marijuana. 00:43:45 Councilor Gabriel asked about the timeline for a ballot initiative brought forward by the public. 00:44:53 Councilor Nunnally asked for staff direction related to what is unduly burdensome. 00:46:06 Councilor Graham spoke regarding the current areas in the County that have medical marijuana dispensaries and concerns regarding the possibly large numbers of dispensaries that may open. 00:48:54 Director Nygren spoke regarding the concept of requiring buffers between dispensaries. 00:49:44 Staff spoke to the rules provided by the state related to licensing. 00:50:54 Councilor Daoud talked about the free market and treating dispensaries similar to liquor stores. 00:53:03 Councilor Waterman agreed that these could be treated similar to liquor stores. 00:55:15 Councilor Hunter would agree that marijuana dispensing be treated similar to liquor stores. He asked questions regarding cultivation and processing, and the issues related to odor within the tourist districts. He then spoke regarding concerns related to signage. 00:58:59 Staff spoke regarding current signage regulations within the city. 01:01:06 Councilor Kluesner spoke to cultivation and processing possibly being placed strictly in agricultural, greenhouse zones, etc. He then spoke regarding signage and current rules related to gambling establishments. Staff spoke regarding jurisdictional parameters that the city must follow. Councilor Daoud asked about agricultural zoning within the city. 01:07:07 Councilor Gabriel spoke regarding signage and then asked questions regarding the possibility of limiting to industrial 1 and 2 zones similar to sexually oriented businesses. 01:08:36 Councilor Graham asked how the law is written related to dispensing, cultivating, and processing. Councilor Graham would agree with Gabriel regarding limiting to industrial zones. 01:12:54 Attorney Harball spoke to the nature of the marijuana industry and how findings of fact would need to be determined for city decisions related to the industry. Page 3 of 6 Kalispell City Council Minutes, June 28, 2021 Council continued discussion regarding the market. 01:18:12 Councilor Gabriel spoke regarding concerns and questions around children and their access to purchase recreational marijuana. 01:19:37 Mayor Johnson asked about allocation of tax funds on the state level. 01:20:23 City Manager Russell asked Council for direction related to moving forward and confirmed that Council would like this subject brought forward at another work session. He also discussed timing of a possible zoning text amendment with Council. 01:25:42 Public Comment Mayor Johnson opened public comment. Seeing none, he closed public comment. 3. Accessory Dwelling Units 01:26:35 Planner Sorensen explained the new proposed draft staff has brought forth per past Council discussion. The main changes include a new administrative permit use requirement for the R-4 and R-5 zones under consideration in addition to aligning that with the RA-1, RA-2, and H-1 zones, as those are currently handled with conditional use permits. Staff has also removed the reduction in parking requirements previously proposed so the parking requirement would remain at two per unit. They also clarified that the gross square foot living area would be limited to 1000 square feet. 01.28:06 Councilor Kluesner asked about prohibiting accessory dwelling units from becoming short-term rentals. Staff provided further information about the current draft proposal and Council's ability to provide amendments. 01:29:53 Councilor Kluesner spoke in opposition to accessory dwelling units being used as short-term rentals. 01:32:26 Councilor Daoud spoke to restrictions already in place within the city related to the number of short-term rentals allowed within the city. Council discussed neighborhood character, zoning, property rights, etc. 01:36:26 Councilor Graham asked about the administrative permit process and other restrictions suggested within the current staff proposal. 01:38:30 Councilor Hunter spoke regarding preferring to limit short-term rentals. He would like to see the parking regulation changed to one parking space versus two. 01:42:01 Councilor Carlson spoke in opposition to accessory dwelling units being used as short- term rentals, and in support of a two -parking spot requirement. Council discussed parking needs and possible requirements. Page 4 of 6 Kalispell City Council Minutes, June 28, 2021 01:47:16 Councilor Nunnally spoke to the need for short-term rentals for seasonal employees and vendors. He spoke regarding unintended consequences. 01:49:08 Council discussed short-term rentals and housing issues. 01:51:56 Councilor Graham asked about current illegal short-term rentals and how a new ordinance may affect them. Council discussed zoning and how it would relate to nonconforming homes. Councilor Waterman clarified where accessory dwelling units would not be allowed if this proposal passes. He asked about how homeowner associations would fit in. Council continued discussion. 02:03:36 City Manager Russell confirmed with Council that staff can bring forward the current ordinance knowing that amendments may be brought forth. Council continued discussion on parking and other related issues. C. PUBLIC COMMENT Mayor Johnson opened public comment. 02:08:15 Ronalee Skees, Public Comment Ms. Skees thanked the Council for another appointment on the Planning Board explaining it has brought her a lot of awareness on issues such as this. Ms. Skees says she does support accessory dwelling units within the city for critical additional housing opportunities, free-market opportunities, and short-term rentals if done correctly. She also spoke to opportunities accessory dwelling units provide as a tool for aging in place, and for adult children launching careers. She spoke to the amount of public comment the Planning Board receives about parking and the need for planning parking especially downtown. She spoke to her experiences with parking issues living downtown. 02:11:30 Luke Rummage, Public Comment Mr. Rummage feels accessory dwelling units would benefit those coming into the community. As a new resident to Kalispell, he is unable to find housing. He is seeing lack of housing in hotels as well. Mr. Rummage proposed that Council handle the parking requirements by requiring one parking space for a one bedroom and two for a two bedroom. Recent public comment received to publiccomment&kalispell.com can be found at: https:Htime.ci.kalispell.mt.us/WebLink/Browse.aspx?id=146557&dbid=0&repo=Kalispell. Seeing no further public comment, Mayor Johnson closed public comment. Council and staff discussed that the proposed accessory dwelling unit Ordinance will be scheduled for July 19, 2021. E. CITY MANAGER, COUNCIL, AND MAYOR REPORTS Page 5 of 6 Kalispell City Council Minutes, June 28, 2021 City Manager Doug Russell reported that the next City Council meeting will be Tuesday, July 6, as city offices will be closed Monday, July 5, 2021, for the Independence Day Holiday. 02:15:56 Councilor Nunnally spoke to the negative attitude he has heard from the community related to migration into Kalispell. F. ADJOURNMENT Mayor Johnson adjourned the meeting at 9:17 p.m. OR;q�; ls,� F-; 'SEAL — A41ee Brunckhorst, CMC V. 1892 rr-_ City Clerk :!L�oN,�P�. UPCOMING SCHEDULE / FOR YOUR INFORMATION City Offices Closed — Monday, July 5, 2021 — Independence Day Observed Next Regular Meeting — TUESDAY, July 6, 2021, at 7:00 p.m. — Council Chambers Next Work Session — July 12, 2021, at 7:00 p.m. — Council Chambers Watch City Council sessions live on Charter Cable Channel 190 or online at the Meetings on Demand tab at www.kalispell.com. Page 6 of 6