05-09-16 Council Work Session Agenda and materialsCITY COUNCIL
WORK SESSION AGENDA
Monday, May 9, 2016, at 7:00 p.m.
City Hall Council Chambers, 201 First Avenue East
A. CALL TO ORDER
B. DISCUSSION ITEMS
1. Request for Sewer Treatment from a Property Owner Outside of the Ever rg een
Sewer District, located at 135 West Reserve Drive
2. Request from Flathead County for CitySponsorship of a Community Development
Block Public Facilities Grant from the Montana Department of Commerce to
complete ADA improvements at the Fairgrounds
3. Zoning for Short Term Residential Rentals (VRBO's - Vacation Rentals By Owner)
C. PUBLIC COMMENT
Persons wishing to address the council are asked to do so at this time. Those addressing
the council are requested to give their name and address for the record. Please limit
comments to three minutes.
D. CITY MANAGER, COUNCIL, AND MAYOR REPORTS
E. ADJOURNMENT
UPCOMING SCHEDULE / FOR YOUR INFORMATION
Council Budget Work Session — Tuesday, May 10, 2016, at 6:00 p.m. — Lower Conference Room
Council Budget Work Session — Wednesday, May 11, 2016, at 6:00 p.m. — Council Chambers
Coffee with the Chief — May 11, 2016, at 5:30 p.m. — Sykes Diner, 202 2nd Avenue West
Regular Council Meeting — May 16, 2016, at 7:00 p.m. — Council Chambers
Council Work Session — May 23, 2016, at 7:00 p.m. — Council Chambers
Reasonable accommodations will be made to enable individuals with disabilities to attend this meeting.
Please notify the City Clerk at 758-7756.
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crTYOF -�. i i City of Kalispell
Post Office Box 1997 - Kalispell, Montana. 59903
1, OR- P�E�, L� Telephone: (406) 758-7701 Fax: (406) 758-7758
MONTANA ED
MEMORANDUM
To: Mayor Johnson and City Council
From: Doug Russell, City Manager
Re: Request for sewer services, out of district property
Meeting Date: May 9, 2016
BACKGROUND: Attached to this memo is a letter from Carol Fontaine requesting approval to
receive municipal sewer services through the Evergreen Sewer District. This property is outside
both the city limits of Kalispell and the Evergreen Sewer District. Also attached is a memo from
Public Works Director Turner further describing the request.
At the meeting on Monday, we will review the request, the history of the Evergreen Sewer
District, including changes that were made during the last contract approval, and seek council
direction related to the request.
ATTACHMENTS: Memorandum and maps from Public Works Director, Susie Turner
Letter from Carol Fontaine
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Public eorks Dartment NA
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TO: Doug Russell, City Manager
Kalispell Public Works Department
201 lst Ave E, Kalispell, MT
Kalispell.com
FROM: Susie Turner, P.E., Public Works Director
SUBJECT: Request for Sewer Treatment from Property Owner Outside of the
Evergreen Sewer District located at 135 West Reserve Drive
MEETING DATE: May 9, 2016
Carol Fontaine is requesting consent from the City of Kalispell for sewer treatment services via
conveyance through the Evergreen District sewer system. The property is located at 135 West
Reserve Drive and is adjacent to Evergreen District's designated service area (see Exhibit A).
The parcel is 17.2 acres with two residential structures proposed for connection; a two bedroom,
two bathroom and a one bedroom, one bathroom (see Exhibit B). This request was prompted by
a failing septic system. Ms. Fontaine's March 21, 2016 request letter is attached.
In accordance with the July 2015, Sanitary Sewer Treatment Agreement - Section 3.04 between
Kalispell and Evergreen District, consent is required by City Council, or designee, prior to
connection. Kalispell has the right to decline the application for any reason, but if approved Ms.
Fontaine will be required to waive the right to protest annexation, provide consent to withdraw
from the rural fire district, enter into a development and or pretreatment agreement with the city
of Kalispell, meet pretreatment regulations, and pay the treatment plant impact fee.
Evergreen is allotted 0.782 million gallons average daily flow for the area within the Evergreen
service boundary. Currently Evergreen's average daily flows are 0.40 million gallons per day.
The flows associated with Ms. Fontaine's property will not be considered part of Evergreens not
to exceed volume rate (0.782 million gallons) average daily flows.
The Kalispell's treatment plant is designed to treat 5.4 million gallons per day (MGD) of
wastewater and is currently treating on average 2.5 to 2.8 MGD. At this time the treatment
capacity is capable to treat the additional flows of two residential structures.
Upon Council review and direction, Ms. Fontaine will be contacted with the schedule to present
the information to City Council at a regular meeting or work session.
ATTACHMENTS: Exhibit A: Evergreen District Map
Exhibit B: Aerial of property
March 21, 2016 request letter from Carol Fontaine
EXHIBIT B
Carol Fontaine
135 W. Reserve Drive
Kalispell, MT 59901
406 752-2938
March 21, 2016
Susie Turner, Director
Kalispell Public Works
Kalispell, MT
Dear Ms. Turner:
I live at 135 W. Reserve Drive. I have a two bedroom, two bathroom house and a
one bedroom, one bathroom guest house on 17.2 acres. My property is bordering
the Evergreen Sewer district. I already receive Evergreen water. The legal
description for the property is S29, T29N, R21 W,17.67, TR 2B IN E2SE4 EX N'LY
STRIP, ASSR#0000381475. My septic system is failing and I very much would like
to hook into the Evergreen sewer system. Evergreen sewer employees said I
needed permission from Kalispell Public Works to hook into their system before
they could approve and begin work.
I am Formally requesting approval to hook into the Evergreen sewer system. I am
aware there is a fee to do so and am prepared to pay it.
Thank you for your time and consideration.
Sincerely,
Carol Fontaine
CITYOF City of Kalispell
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Post Office Box 1997 - Kalispell, Montana. 59903
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L j S P Telephone: (406) 758-7701 Fax: (406) 758-7758
MONTANA
MEMORANDUM
To: Mayor Johnson and City Council
From: Doug Russell, City Manager
Re: Flathead County request for CDBG grant application
Meeting Date: May 9, 2016
BACKGROUND: Attached to this memo is a letter from Flathead County requesting that the
City of Kalispell serve as a conduit for a Community Development Block Grant application for
ADA improvements at the County fairgrounds. The letter explains the project and proposed
budget in more detail. If the grant application is approved by the City Council and is funded
through the CDBG program, funding for the project would come from the grant and Flathead
County.
At the meeting on Monday, we will review the request, the CDBG program, and seek council
direction related to the request.
ATTACHMENTS: Letter from Flathead County
Flathead County
Board of Commissioners
(406) 758-5503 6
Pamela J. Holmquist �1
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Gary D. Krueger _
Philip B. Mitchell
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Dear Council Members, March 22, 2016
This letter is to request the City of Kalispell's consideration for sponsorship of a Community Development
Block Public Facilities Grant from the Montana Department of Commerce on behalf of Flathead County.
Public facility funds, if awarded, will be utilized to complete ADA improvements at the fairgrounds.
PROJECT NEED:
Many of the facilities throughout the Flathead County fairgrounds are deteriorating and are in need of
substantial upgrades and improvements. In 2015, Flathead County completed an extensive ADA
evaluation of all buildings and parks owned by Flathead County. It was determined that several of these
same facilities at the fairgrounds were also in need of important ADA improvements to ensure safe
accessibility to the public. Flathead County is currently contracting with Solus Architecture to complete a
Preliminary Architecture Report (PAR) evaluating the most cost effective option for addressing these
accessibility and health and safety challenges at the fairgrounds. The PAR focuses primarily on two
restrooms, the grandstand entrance, and the food court as these areas have the highest level of need.
Flathead County is supporting the development of the PAR but does not have funds available to support
the entire cost of a building renovation and ADA access improvement project. Flathead County would like
to pursue a CDBG public facilities grant to financially support a portion of the fairgrounds project that is
related to ADA access improvements. Based on program requirements, ADA improvements are eligible for
CDBG assistance.
PROJECT BUDGET:
Cost estimates for the entire project including the portion allocated for ADA improvements will be
finalized with the completion of the PAR. For now, it is estimated that the total cost for renovations to the
grandstand, food court and two restrooms will total $535,000. The ADA improvements are estimated to
cost $235,000. If awarded, $176,250 would be provided through the CDBG Public Facilities grant and the
remaining $58,750 in ADA improvements would be provided by Flathead County as the required match
funds. All project costs not related to ADA improvements would be provided by Flathead County.
WHY ARE WE ASKING THE CITY OF KALISPELL TO HOST THIS APPLICATION?
1) The fairgrounds are an important part of our community and have a significant economic
impact on the area. It is vital to ensure they are safe and accessible to the public.
2) Flathead County currently has a 2015 CDBG Public Facilities grant open to support
building and ADA improvements to the Senior Centers in Whitefish, Columbia Falls, and
Bigfork as well as the Kalispell Senior Center office building. Until this project is
completed and the grant is closed out, Flathead County is ineligible to apply for another
public facilities grant.
3) If awarded, Flathead County is committed to completing the project in a timely manner.
From past CDBG Public Facility projects, with a spring application deadline, grant award
announcements are generally made in the fall of the same year. On this schedule Flathead
800 South Main, Room 302 ** Kalispell, MT 59901 ** Fax (406) 758-5861
County would complete the construction project by the end of 2017, ensuring the City of
Kalispell would have an open public facilities slot for application in the spring 2018
funding cycle.
4) Flathead County would provide administrative support and project management to ensure
all Department of Commerce reporting requirements are met.
This year's deadline for CDBG Public Facilities Applications has not yet been set, but is anticipated to be
early May. We appreciate your timely response and willingness to consider sponsoring this application.
Sincerely,
Pamela J. Holmquist, Chairman
Flathead County Board Commissioners
800 South Main, Room 302 ** Kalispell, MT 59901 ** Fax (406) 758-5861
PLANNING FOR THE FUTURE
REPORT TO:
FROM:
SUBJECT
MEETING DATE:
Planning Department
201 V Avenue East
Kalispell, MT 59901
Phone: (406) 758-7940
Fax: (406) 758-7739
www.kalispell.com/planning
MOIffANA
Doug Russell, City Manager
PJ Sorensen, Planner
Zoning for Short Term Residential Rentals
May 9, 2016 (Second Work Session)
BACKGROUND: As part of a continuing effort to up -date the zoning ordinance, staff compiled a
list of amendments to the ordinance. The amendments were placed into fifteen general groupings
and were discussed at a work session held by the Planning Board on March 8, 2016 and then a public
hearing before the Board on April 12, 2016. No comments were received, and the Planning Board
sent a recommendation of approval to the City Council on a 7-0 vote. The City Council held a work
session on April 25, 2016, to discuss the proposals. The Council then directed staff to present the
proposals at the next regular meeting. At the May 2, 2016, Council meeting, the Council voted to
separate the short term residential rental proposal from the other amendments and bring short term
residential rental zoning amendments to the Council during the next work session. Staff has prepared
an updated proposed staff report for Council consideration.
The current zoning ordinance defines "residential" to include rental periods of one month or more.
Periods of time less than one month are either hotels or bed and breakfasts. Under that definition,
short term rentals in commercial areas are considered permissible as a hotel use, but short term
rentals in residential areas are not allowed. Although not generally allowed, a review of the VRBO
(vacation rental by owner) website shows approximately 35 residential rentals within the city limits,
with other rentals available through similar marketing websites. This number can fluctuate
throughout the year, with the summer season being the busiest. These types of rentals have been
increasing in popularity throughout the country with tourists, and with homeowners who can generate
income.
The Planning Office usually receives about 3 or 4 complaints each year about short term residential
rentals from neighbors, typically regarding noise or traffic. Staff pursues each complaint and works
to bring each into compliance, although many operators point to the other short term
residential rentals operating in the city.
The initial memo for the Planning Board work session (held in March) did not include specific
proposals from staff. Instead, the memo sought input on the direction staff should go with these uses.
Options included (1) allowing short term rentals as a permitted use; (2) allowing them with certain
conditions; and (3) keeping the current prohibition. There was also discussion about limiting them to
certain areas of the city. At that work session, one property owner spoke in support of allowing short
term rentals in the city.
The Planning Board felt that such uses could be acceptable in any residential area, but only subject to
appropriate conditions. The Whitefish Planning Department was also consulted since they recently
went through a major study on this topic. Based on those discussions, staff drafted an ordinance that
would allow short term rentals with an administrative conditional use permit. Conditions would
include fire department and health department approvals, compliance with bed tax regulations,
providing contact information to the city, and posting ownership contact information at the property.
ATTACHMENTS: Text of proposed changes.
Updated proposed staff report.
Report compiled: May 3, 2016
c: Aimee Brunckhorst, Kalispell City Clerk
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27.20.095 Short Term Residential Rental Standards.
A residential dwelling unit may be rented for a period shorter than thirty days
provided that the following performance standards are met:
(1) The property owner shall first obtain an administrative conditional use
permit from the Planning Department (See Chapter 27.33).
(2) The number of units rented shall not exceed the allowable density for the
zoning district where the property is located.
(3) The administrative conditional use permit review shall include:
(a) Proof of an inspection by the Fire Department or its designee showing that
all life safety requirements are met, including, but not limited to, smoke
detectors and egress;
(b) Proof of a State of Montana public accommodation license for a tourist
home, which is administered by the Flathead City -County Health
Department and is subiect to annual inspections;
(c) Verification that the property is appropriately registered and meets
requirements for state bed tax purposes; and
(d) The property owner shall provide their name and phone number or of a
local contact person that shall be responsible for handling any issues that
arise with the property. The contact shall be available to address any
issues 24 hours a day and seven days a week.
(4) The property owner or local contact's name and phone number shall be
posted on an emergency contact notice visible from outside the front door.
Otherwise, there shall be no signage indicating the short term rental of the
ro er .
(5) Violations of the terms of the administrative conditional use permit or the
provisions of this section may subiect the property owner to an enforcement
pursuant to the terms of this ordinance. Noise and similar issues may be
enforced through the Police Department.
27.37.010: Definitions.
(1-5-960) Residential. Regularly used by its occupants as a permanent place of
abode, which is made one's home as opposed to one's place of business and
which has housekeeping and cooking facilities for its occupants only. In
situations where a dwelling is rented or leased, a residential use would involve
lease periods of one month or more unless the provisions of Section
27.20.095 relating to short term residential rental standards are met.
CITY OF KALISPELL — ZONING REGULATIONS
KALISPELL PLANNING DEPARTMENT
STAFF REPORT #KZTA-16-03
May 4, 2016
This report is a proposed updated staff report and findings of fact for the proposed amendment
related to short term residential rentals. The report has been prepared for the Council's
consideration as an alternative set of findings to replace the findings and recommendation
approved by the Kalispell Planning Board on April 12, 2016.
A series of amendments, which included short term rentals, had been reviewed by the Kalispell
Planning Board at a work session held by the Board on March 8, 2016. At that time one member
of the public did speak in support of allowing short term residential rentals in the community.
Following this work session the Board held a public hearing on April 12, 2016. A
recommendation was forwarded to the City Council to adopt a slate of amendments. The
Council did hold a work session on the entire slate of 15 amendments and then met on Monday,
May 2, 2016 for hearing and action. At that meeting, the amendment addressing short term
residential rentals was removed from the slate of amendments and sent back to a Council work
session for additional review.
BACKGROUND INFORMATION
As part of a continuing effort to make the zoning ordinance up-to-date and current, staff
compiled a short list of minor amendments to the ordinance specifically including how to
address the use of short term residential rentals in Kalispell. A full text of the draft language
relating to short term rentals is attached to this report.
A. Petitioner: City of Kalispell
P.O. Box 1997
Kalispell, MT 59903
(406) 758-7940
B. Area Effected by the Proposed Changes: Any residential property within the
jurisdictional boundaries of the City of Kalispell may be affected by the proposed changes.
C. Proposed Amendment:
The changes to the current text of the code section are indicated below. Deletions are struck -out
and additions are underlined.
27.20.095 Short Term Residential Rental Standards.
A residential dwelling unit may be rented for a period shorter than thirty
days provided that the following performance standards are met:
Page 1 of 5
(1) The property owner shall first obtain an administrative conditional
use permit from the Planning Department (See Chapter 27.33).
(2) The number of units rented shall not exceed the allowable density for
the zoning district where the property is located.
(3) The administrative conditional use permit review shall include:
(a) Proof of an inspection by the Fire Department or its designee showing
that all life safety requirements are met, including, but not limited to,
smoke detectors and egress;
(b) Proof of a State of Montana public accommodation license for a
tourist home, which is administered by the Flathead City -County
Health Department and is subject to annual inspections;
(c) Verification that the property is appropriately registered and meets
requirements for state bed tax purposes; and
(d) The property owner shall provide their name and phone number or of
a local contact person that shall be responsible for handling any issues
that arise with the property. The contact shall be available to address
any issues 24 hours a day and seven days a week.
(4) The property owner or local contact's name and phone number shall
be posted on an emergency contact notice visible from outside the
front door. Otherwise, there shall be no signage indicating the short
term rental of the property.
(5) Violations of the terms of the administrative conditional use permit or
the provisions of this section may subject the property owner to an
enforcement pursuant to the terms of this ordinance. Noise and
similar issues may be enforced through the Police Department.
27.37.010: Definitions.
(1-5-960) Residential. Regularly used by its occupants as a permanent place
of abode, which is made one's home as opposed to one's place of business
and which has housekeeping and cooking facilities for its occupants only.
In situations where a dwelling is rented or leased, a residential use would
involve lease periods of one month or more unless the provisions of
Section 27.20.095 relating to short term residential rental standards
are met.
Page 2 of 5
D. Staff Discussion:
The zoning ordinance defines "residential" to include rental periods of one month or more.
Periods of time less than one month are either hotels or bed and breakfasts. The Planning Office
usually receives about 3 or 4 complaints each year about VRBOs from neighbors (constant
streams of people/frequent vacation parties, excessive garbage in the dumpsters), while at the
same time has observed an increase in popularity by tourists throughout the country as well as
homeowners that can generate substantial income through the program.
Based on a staff survey of prominent web sites (VRBO, AirB&B, Craigslist, etc) there appears to
be 30 — 40 such uses throughout the City of Kalispell. The numbers typically fluctuate with the
seasons with the months of June, July and August as significantly higher use months. There are
some concerns that these uses, while they do provide a benefit to the community, need to pay
their share of the state bed tax, and that they need to be safe and well managed as well.
At the Planning Board work session, the Board indicated that such uses could be acceptable in
residential areas, but only subject to appropriate conditions that would ensure the units were safe,
well managed and that they paid their fair share of the state bed tax. The Board also discussed
whether short term rentals should be limited to certain areas of the city. It felt that, in part
because we are not a resort community and in part due to a lack of any major distinction between
neighborhoods in the City that would justify allowing such rentals in some areas, but not others,
we should allow short term rentals on an equal basis anywhere that residential uses are allowed.
In regard to the specific conditions, the Board felt that (1) fire and life safety inspections are
important to protect the guests at the rentals; (2) compliance with all registration and licensing
necessary to ensure that the appropriate bed taxes are paid in order to keep these rentals on an
equal basis with hotels and other businesses which pay the tax; and (3) providing a way for
neighbors to contact the owner when problems arise. Those concerns are provided for in the
proposed text.
Staff contacted other communities in the area, including Whitefish which just completed a
lengthy study of the issue as well as resort communities in our greater area. Based on Board
discussion, staff drafted an ordinance that would allow those types of rentals with an
administrative conditional use permit. Under an administrative conditional use permit, all
neighbors within 150 would be notified and offered an opportunity to comment. If comments
could be addressed, the permit could proceed. If there was neighborhood objection that could not
be addressed by staff or conditions, the full conditional use permit process would then be
triggered. Conditions would include fire department and health department sign -offs,
compliance with bed tax regulations, and providing contact information to the city as well as
posting the information at the property.
EVALUATION BASED ON STATUTORY CRITERIA
The statutory basis for reviewing a change in zoning is set forth by 76-2-303, M.C.A. Findings
of Fact for the zone change request are discussed relative to the itemized criteria described by 76-
2-304, M.C.A.
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Is the zoning regulation made in accordance with the growth polio
The proposals are consistent with the growth policy.
Does the zoning regulation consider the effect on motorized and nonmotorized
transportation systems?
The proposed amendments have a minimal effect on transportation systems.
Is the zoning regulation designed to secure safety from fire and other dangers?
The proposed amendments add more clarity which allows for a better implementation of
standards designed to protect the public from fire and other dangers.
Is the zoning regulation designed to promote public health, public safety, and the general
welfare?
The general health, safety, and welfare of the public will be promoted by creating a more
predictable, orderly, and consistent environment.
Does the zoning regulation consider the reasonable provision of adequate light and air?
The standards help provide for appropriate interaction between developed properties.
Is the zoning regulation designed to facilitate the adequate provision of transportation,
water, sewerage, schools, parks, and other public requirements?
As mentioned above, the zoning ordinance creates a more predictable, orderly, and
consistent development pattern. That pattern allows for a more efficient allocation of
public resources and better provision of public services.
Does the zoning regulation consider the character of the district and its peculiar suitability
for particular uses?
The amendments reflect the character of each district.
Does the zoning regulation consider conserving the value of buildings?
Building values will be conserved by providing reasonable standards within zoning
districts by encouraging predictable, orderly, and consistent development within a given
area.
Does the zoning regulation encourage the most appropriate use of land throughout the
municipality?
The amendments help create consistency throughout comparable zones, which promotes
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compatible urban growth.
RECOMMENDATION
Staff recommends that the Kalispell City Council adopt the findings in staff report KZTA-16-03
and adopt the proposed amendment as provided herein.
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