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1. Council Minutes - Regular Meeting October 6, 2003A REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS MELD AT 7:00 P.M. MONDAY, OCTOBER 6, 2003, IN THE COUNCIL CHAMBERS AT CITY HALL IN KALISPELL, MONTANA. MAYOR PAMELA B. KENNEDY PRESIDED. COUNCIL MEMBERS JIM ATKINSON, BOB HAFFERMAN, RANDY KENYON, DUANE LARSON, FRED LEISTIKO AND HANK OLSON WERE PRESENT. COUNCIL MEMBERS JAYSON PETERS AND TED POLER WERE ABSENT. Also present: City Manager Chris Kukulski, City Attorney Charles Harball, City Clerk Theresa White, Police Chief Frank Garner, Fire Chief Randy Brodehl, Public Works Director Jim Hansz, Community Development Director Susan Moyer, Parks and Recreation Director Mike Baker and Tri-City Planning Director Tom Jentz. Mayor Kennedy called the meeting to order and led the Pledge of Allegiance. A. AGENDA APPROVAL Leistiko moved to remove Agenda Items F15 and Ff6 at the request of the applicant. The motion was seconded. There was no discussion. The motion carried unanimously upon vote. Atkinson moved to approve the Agenda as amended. The motion was seconded. There was no discussion. The motion carried unanimously upon roll call vote. B. CONSENT AGENDA APPROVAL l . Council Minutes — Regular Meeting September 15, 2003 2. Design Contract Amendment — Electrical Modifications for Water System 3. Proclamation — National Breast Cancer Awareness Month Larson moved approval of the Consent Agenda. The motion was seconded. There was no discussion. The motion carried unanimously upon vote. C. STUDENT ISSUES None, D. HEAR THE PUBLIC Sally Bertelsen, Montana Breast and Cervical Health Program, thanked the city for its participation in Breast Cancer Awareness Month, Kalispell City Council Minutes October 6, 2003 Page t Norman Beach, Nolan Holdings, explained he requested the removal of Agenda items F/S and F/6 because he is continuing to work with the neighborhood on the future development of the Greenery property concerning views, property values, density, traffic, safety and crime and he feels all parties will be happy with the final arrangement. John Cuthbertson, 115 Buffalo Stage, asked the Council to consider enacting a noise ordinance concerning car stereos. Brian Smith, 336 Harrison Boulevard, spoke in opposition to Agenda item F/7, Conditional Use Permit for Charles E. Keller. He said he's concerned with access to the property and the increase in traffic right next to his house. Jean Johnson, Stokes and Associates, spoke in favor of the River Glen Subdivision proposals before the Council. Johnson explained the developers have reconfigured the subdivision following discussions with planning staff and agree to all of the conditions except the condition that requires an access road be extended to the easterly end of the subdivision to ultimately connect South Woodland with Willow Glen. E. PUBLIC HEARING — CDBG GRANT APPLICATION The Community Development staff has requested authorization to apply to the Montana Department of Commerce for CDBG program monies to assist ten first time home buyers. Mayor Kennedy opened the public hearing. Lynn Moon, Housing Manager for the Community Development Department, read a statement outlining the continued need for the First Time Home Buyer Program. (Statement is attached and by this reference is made a part of the official record) Susan Moyer, Community Development Department Director, clarified this is the second public hearing concerning this grant application and is required in order for the Council to authorize the Mayor to sign the necessary papers if the city is successful in receiving the grant. Derethea Bixler, 420 Liberty Street #36, spoke in favor of the grant application stating she is a lower income citizen and she would rather participate in this program than receive rent assistance. Mayor Kennedy closed the public hearing. F. REPORTSIRECOMMENDATIONS AND SUBSEOUENT COUNCIL ACTION F/I. RESOLUTION 4835 — CDBG GRANT APPLICATION This resolution is the final step necessary authorizing submittal of a first time home owner grant application. Larson moved Resolution 4835, a resolution authorizing submission of a grant application to the Montana CDBG program. The motion was seconded. Hafferman said in this time of higher and higher costs to make ends meet, it isn't helpful to give ten people subsidies to buy a home. He said consideration needs to be taken for not only the mortgage, repair, maintenance, and operation, but most importantly the annual taxation and monthly bills. Hafferman urged the Council to help the citizens by examining how the city's rules, regulations and Kalispell City Council Minutes October 6, 2003 Page 2 standards are adding to the cost of affordable housing, and reexamine the city's five year program for continually raising utility rates. He said subsidies have a long history of failure. Atkinson agreed this is only a "salve" for the plight of the average citizen, but he said it's an excellent program to help a "few people get to where they need to be". He said the homes in Kalispell that were purchased through this program are well taken care of because they are owned by the people who live in them with pride. Atkinson said this is an excellent program and urged the Council to support it. Kenyon agreed, stating the Council needs to step forward and "do this". Larson said even though this is a small step, you have to take a small step to complete a journey. He disagreed that subsidies have a long history of failure, instead he looks at it that subsidies have a long history of success. Larson said his only regret is that he wishes the city could help more than just ten first time homebuyers. Leistiko also spoke in support, stating you have to remember that once someone buys a home it starts a cycle. He said people trade up as they progress through life and this program allows people to enter that home -buying cycle. Mayor Kennedy said she believes this is a good program and the Community Development Department has done an excellent job of promoting affordable housing in Kalispell. She said subsidies do work and every step the city can make to promote home ownership is beneficial to the community. The motion carried upon roll call vote with Atkinson, Kenyon, Larson, Leistiko, Olson and Mayor Kennedy voting in favor, and Hafferman voting against. F12. RESOLUTION 4836 — ANNEXATION REQUEST — RIVER GLEN SUBDIVISION River Glen Subdivision, LLC has requested annexation of approximately 3.4 acres located on the east side of South Woodland Drive immediately south of Quincy Loop. Kenyon moved Resolution 4846, a resolution to provide for the alteration of the boundaries of the City of Kalispell by including therein as an annexation certain real property, as more particularly described on Exhibit "A", located in Section 17, Township 28 North, Range 21 West, P.M.M., Flathead County, Montana, to be known as River Glen Addition No. 335; to zone said property in accordance with the Kalispell Zoning Ordinance, and to declare an effective date. The motion was seconded. Jentz gave a staff report. There was no discussion. The motion carried unanimously upon roll call vote. F13. ORDINANCE 1481— INITIAL ZONING — RIVER GLEN ,SUBDIVISION River Glen Subdivision, LLC has requested an initial zoning designation of R-3, Urban Single Family Residential, upon annexation of 3.4 acres located on the east side of South Woodland Drive. Kalispell City Council Minutes October 6, 2003 Page 3 Leistiko moved first reading of Ordinance 1481, an ordinance to amend Section 27.02.010, Official Zoning Map, City of Kalispell Zoning Ordinance, (Ordinance No. 1460), by zoning certain real property described as River Glen Addition No. 335 and further described on Exhibit "A" located in Section 17, Township 28 north, Range 21 West, P.M.M., Flathead County, Montana (previously zoned County R-2, Suburban Residential) to City R-3, (Single Family Residential), in accordance with the Kalispell Growth Policy 2020, and to provide an effective date. The motion was seconded. Jentz gave a staff report explaining the property is currently zoned County R-2, a single family zone which allowed half acre lots because sewer and water was not readily available. He said with the extension of sewer and water, staff felt the City R-3 zone allowing for 7,000 square feet lots was more appropriate. Olson asked why staff is recommending City R-3 since the property is surrounded by R-2 zoning. Jentz answered the City R-2 allows for 9,000 square foot lots and given the neighborhood and demand for housing, staff felt the slightly smaller 7,000 square foot lots would be more appropriate. Olson commented areas need to be consistent and he doesn't think it's a good plan to allow the smaller lots. The motion carried upon roll call vote with Atkinson, Hafferman, Kenyon, Larson, Leistiko and Mayor Kennedy voting in favor, and Olson voting against. F/4. RESOLUTION 4837 — PRELIMINARY PLAT — RIVER GLEN SUBDIVISION River Glen Subdivision, LLC has requested preliminary plat approval of River Glen Subdivision, a 13-lot single family residential subdivision. Larson moved Resolution 4837, a resolution conditionally approving the preliminary plat of River Glen Subdivision, more particularly described on Exhibit "A", in Section 17, Township 28 North, Range 21 West, P.M.M., Flathead County, Montana. The motion was seconded. Jentz explained three variances were requested for this subdivision: 1) no sidewalks along the side of the street where no lots are being proposed; 2) a cul-de-sac 660 feet long; and 2) no boulevard within the cul-de-sac. He said following discussions, staff recommended moving the road to the south end of the project which shortens the cul-de-sac and therefore eliminates the need for the second variance. Jentz said the other issue was the extension of the River Glen access road to the easterly end of the subdivision as provided in Condition #21 (The internal subdivision road R/W shall be extended to the eastern edge of the subdivision in addition to the southerly extending cul-de-sac. Only that portion of the new Rf W extension that provides immediate access to a lot shall be required to be developed to city standards). He said site review looked at the issue and it was determined that the road extension is not necessary. Atkinson said he introduced the idea of extending the road to the Planning Board because he is very interested in a grid system and that's why the condition was required. He said given the new information, however, he would agree to strike Condition #21. Larson moved to amend the resolution by striking Condition #21. The :motion was seconded. There was further discussion and Jentz showed the Council the revised preliminary plat. Kalispell City Council Minutes October 6, 2003 Page 4 The amendment carried unanimously upon vote. The main motion as amended carried unanimously upon roll call vote. F/5. RESOLUTION 4838 — ANNEXATION REQUEST — NOLAN HOLDINGS, LLC (REMOVED AT THE REQUEST OF THE APPLICANT) F/6. ORDINANCE 1482 —INITIAL ZONING— NOLAN HOLDINGS LLC(REMOVED AT THE RE -QUEST OF APPLICANT F/7. CONDITIONAL USE PERMIT — CHARLES E. KELLER Keller is requesting a conditional use permit to allow for the construction of a four -unit residential cluster on property zoned R-3, Single Family Residential, located on the southeast corner of Grandview Drive and US Highway 93. Leistiko moved Council accept staff report KPP-03-4 as findings as fact and grant the conditional use permit subject the recommended conditions. The motion was seconded. Jentz gave a staff report explaining access to the cluster development would be onto Harrison Boulevard via private easement. He said the Planning Board discussed the request at length and agreed that the access issue was critical. He said the Planning Board agreed the existing 20-foot easement was inadequate and that at least a minimum 30-foot easement access was needed. Jentz stated the board also encouraged the applicant and the city to work together to relocate the city utility easement site containing a lift station to give the applicant a better access option. Hafferman said the city's six-inch sewer force main in that area will eventually need to be replaced. He said it would be his recommendation that if this project reaches the preliminary plat stage the force line be replaced when necessary at the developer's expense. Hafferman said he's also concerned how the planning staff can justify a thirty-foot right-of-way. He said he thinks this is a good project, however, if you're going to allow a thirty-foot right-of-way for this project, then the city should allow one for everybody. Hafferman continued that a thirty-foot right-of-way should be agreed to by the neighbors and approval of this conditional use permit should be postponed until the access question is settled. Jentz agreed a thirty-foot right-of-way is stretching the standards of a sixty -foot right-of-way and does require a variance. He said it is problematic, but planning staff is trying to develop a reasonable alternative for someone who owns property that is land locked. Olson said in light of the problems, why wasn't the developer given instruction to acquire enough land to build that road correctly. Jentz said staff did discuss the possibility of acquiring one of the houses abutting the property which would open up the option for a larger road and larger development, but the Planning Board felt nervous requiring someone to acquire an additional lot. Atkinson commented the staff and Planning Board felt this is a good project and was willing to work with the developer. He said thinking about it, however, if the conditional use permit only requires a thirty-foot right-of-way, and if the applicant is successful in purchasing an additional lot to allow for a bigger road, it still wouldn't be required. Atkinson wondered if the Council should approve the Kalispell City Council Minutes October 6, 2003 Page 5 permit as written or deny it and wait for the developer to try and gain enough property for a sixty - foot access. Olson said he thinks this is a good project, but in his heart he can't vote for the proposal without a proper size road. Kenyon agreed, stating a sixty -foot easement is standard and the developer should settle the access question and bring the issue back to the Council. The motion failed upon roll vote with Atkinson, Hafferman, Kenyon, Larson, Leistiko, Olson and Mayor Kennedy voting against. G. MAYOR/COUNCIL/CITY MANAGER'S REPORTS Mayor Kennedy announced Kalispell's Parks and Recreation Director, Mike Baker, has been named Professional of the Year by the Montana Recreation. and Parks Association. Leistiko asked staff to check on signage located at 2nd Avenue West North and Idaho Street that is reportedly blocking vision. Kukulski announced that due to recent Union negotiations, City Hall will now be open on Columbus Day, but will be closed the day after Thanksgiving. H. ADJOURN The meeting was adjourned at 8:33 p.m, ATTEST: Theresa White City Clerk Pamela B. Kennedy Mayor Kalispell City Council Minutes October 6, 2003 Page 6 I am here tonight as the Housing manager for the Community development department and as The Affordable Housing Consultant for Glacier Affordable Housing Foundation. The City of Kalispell CD staff currently administers a FirstTimeHomeBueyer program for GAHF. The amount of interest in the program continues to amaze staff. All of the funds for the current program, which began in the fall of 2002, are committed. There is still a waiting list of 70 persons wanting to become involved in the program. Every day we either have walk-ins or phone inquiries. A lot of the people who inquire do not put their name on the list because of the length of time they may have to be on it before they can be considered for assistance. The median sale price of a home within the greater Kalispell area was $117,950 in February of 2002. For the 12 month period covering August 2002-August 2003, the median price has risen to $143,950. A family would have to be earning $40,080 in order to support a mortgage at 6% for that amount. Unfortunately, the median income for a family living within Kalispell is $28,567. A family earning the median income could only support a loan of $89,250. So the need to continue down payment and closing cost assistance is very evident. With access to Montana Board of Housing 5% mortgage loan set aside funds, Rural Development leveraged loans and Community Development Block Grant subsidy, the median income family can afford a loan of $137,100, A tremendous difference in the buying power of that family! Glacier Affordable Housing Foundation is prepared to formally set -aside a minimum of $40,000 in recaptured "city of Kalispell" funds to be used for closing cost assistance. If .necessary, the Foundation can provide an additional $10,000 towards those costs. The CD department has received numerous letters of support for the project and I would like to name those entities this evening: Northwest Montana Human Resources Flathead County Commissioners Samaritan House Flathead Building Association USDA Rural Development Habitat for Humanity Northwest Montana Association of Realtors Kalispell Area Chamber of Commerce ERA 1" Choice Realty Mountain West Bank First Interstate Bank And Glacier Bank Thank you for your continued support of affordable housing opportunities for this community. Lynx Moon Housing Manager Community Development Department