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12/03/01 City Council Minutesr • m A REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:00 P.M. MONDAY, DECEMBER 3, 2001, IN THE COUNCIL CHAMBERS AT CITY HALL IN KALISPELL, MONTANA. MAYOR WILLIAM E. BOHARSKI PRESIDED. COUNCIL MEMBERS JIM ATKINSON, DON COUNSELL, RANDY KENYON, DUANE LARSON, FRED LEISTIKO, RON VAN NATTA AND CITY MANAGER CHRIS KUKULSKI AND ACTING CITY ATTORNEY CHARLES HARBALL WERE PRESENT. COUNCIL MEMBER DALE HAARR WAS ABSENT. Mayor Boharski called the meeting to order and led the Pledge of Allegiance. AGENDA APPROVAL Atkinson moved approval of the Agenda with the removal of Agenda Item #7, Motion to Ratify Council Decision. The motion was seconded by Van Natta. There was no discussion. The motion carried unanimously upon vote. CONSENT AGENDA APPROVAL 1. Council Minutes - Regular Meeting November 19, 2001 2. Approval of Claims per Payables Register - $406,872.93 3. Maycumber Request Reduction of City Special for Street Maintenance, Storm Sewer and Urban Forestry in excess of the standard City residential lot. Kenyon moved approval of the Consent Agenda. The motion was seconded by Larson. There was discussion. The motion carried unanimously upon vote. HEAR THE PUBLIC Joe Unterreiner, Chamber of Commerce President, presented the Council with a letter asking members to reconsider the amendment made to the Spring Prairie PUD at the last meeting. (Letter is attached and by this reference is made a part of the official record) Unterreiner also congratulated Susan Moyer and the Community Development Department staff for their recent success in obtaining a grant for the Second Avenue West Senior Housing Project. Liz Harris, Jobs Now President, also asked the Council to reconsider the changes it made to the Spring Prairie PUD on November 19th. 1 1 1 Kalispell City Council Minutes December 3, 2001 Page 1 Mayre Flowers, CFBF, invited members to the loth Annual Meeting of Citizens for a Better Flathead to be held at the Northridge Lutheran Church starting at 7:00 p,m, on December 8th, Gerry Friesen, 1005 2nd Avenue South, presented the Council with a letter thanking the City for helping him with a broken sewer main. (Letter is attached and by this reference is made a part of the official record) PUBLIC HEARING - BUDGET AMENDMENTS Council asked for comments concerning eight areas of the budget that need amendments. Boharski opened the public hearing. Proponents None. Opponents None. Boharski closed the public hearing. RESOLUTION 4672 - BUDGET AMENDMENTS This resolution authorizes budget amendments in the amount of $3,930,315. Van Natta moved Resolution 4672, a resolution amending the annual appropriations of the City of Kalispell, Montana, as set forth in the 2001-2002 budget adopted by the City Council. The motion was seconded by Larson. There was no discussion. The motion carried unanimously upon roll call vote. FIREFIGHTER/PARAMEDIC CONFIRMATION Raymond Junk, Jr. has satisfactorily completed his one year probation with the Kalispell Fire Department and Council confirmation is required. Larson moved Council confirmation of Raymond Junk, Jr. as a firefighter/paramedic for the Kalispell Fire Department. The motion was seconded by Atkinson. There was no discussion. The motion carried unanimously upon vote. Kalispell City Council Minutes December 3, 2001 Page 2 ORDINANCE 1404 - INITIAL SPRING PRAIRIE PUD ZONING - DNRC SECTION 36 - 3RD READING The DNRC has requested a zoning designation of B-5, R-5, and R-4 with a Planned Unit Development overlay on approximately 454.4 acres otherwise known as Section 36. Council, on second reading November 19th, made amendments to the Ordinance and the City Attorney's office has determined that a third reading is in order. Leistiko moved third reading of Ordinance 1404, an ordinance approving a Planned Unit Development on certain real property owned by the Department of Natural Resources and Conservation (DNRC) known as Section 36. The motion was seconded by Van Natta. Kenyon said at the request of David Greer, DNRC, a meeting was held and he summarized their conversation. Atkinson moved to amend Ordinance 1404 by eliminating the amendment placed on the Spring Prairie PUD November 19th making numbers 16 and 17 under Section II, Subsection 2.02(B), conditional uses. The motion was seconded by Larson. Atkinson said he also spoke with Greer and he found no intent on the part of the State to have commercial development along West Reserve Drive. He said he is therefore changing his vote and supporting the ordinance as originally written. Larson said he has also changed his mind, stating there are a lot of safeguards built into the PUD and he feels all of the issues have been adequately addressed. Leistiko said he supported the amendment at the last meeting, but since then, several questions and concerns have been answered and he too will be changing his vote. Kenyon questioned Greer as to whether all of the easements are in place, specifically for the power line and bypass. David Greer, DNRC, said they are currently negotiating an easement with MDOT for the bypass easement. He said the Bonneville Power Administration thinks it already has an easement, but "it's still up in the air". Boharski commented that in the future, all sides should be present and all questions answered prior to a motion being made. He said that would prevent lengthy discussions like the one this evening and at the last meeting. Kalispell City Council Minutes December 3, 2001 Page 3 1 n 1 s Public Comment Marshall Noice, 647 6th Street East, urged the Council to look carefully at the agreement and make sure the bypass easement is in place. Rod McIver, 975 Rose Crossing, asked the Council to not reconsider the amendment made at the last meeting, stating DNRC should not be given any greater latitude than a private developer. J.D. Metcalf, 165 Trail Ridge Road, asked the Council to assure that mixed professional, not mixed commercial be designated along West Reserve Drive. John Schwartz, FBIA, commended Greer and the DNRC on their hard work with the planning process and asked the Council not to create additional conditions. Greer answered questions and gave a short history of the neighborhood, stating as far as the PUD "we feel really good about what we did". Kenyon said there's been discussion that there will be no retail along West Reserve, but according to the PUD, that isn't true. Greer stated the only retail that would be allowed along West Reserve are "neighborhood stores" such as small grocery stores, which was agreed to in the neighborhood plan. Mayre Flowers, CFBF, passed out handouts, stating this is "precedent setting involvement" for the Council and asked several questions concerning the various maps which Greer answered. Flowers concluded by asking the Council not to reconsider the conditional use requirements. (Handouts are attached and by this reference are made a part of the official record) Jeannie Holmgren, DNRC Special Uses Bureau, said the State also looks at this area as a "gateway to the community" and she feels the plan as written will protect the landscape. The amendment carried upon vote with Kenyon voting against. The main motion as amended carried upon roll call vote with Atkinson, Counsell, Larson, Leistiko, Van Natta and Boharski voting in favor, and Kenyon voting against. ORDINANCE 1409 - ZONE CHANGE - FLATHEAD VALLEY ORTHOPEDIC PROFIT SHARE - 1ST READING Flathead Valley Orthopedic Profit Share is requesting a zone change Kalispell City Council Minutes December 3, 2001 Page 4 from B-1, Neighborhood Buffer District, to B-2, General Business District on approximately 4.6 acres of property between the east side of North Meridian Road and the west side of Highway 93, north of Three Mile Drive. Leistiko moved first reading of Ordinance 1409, an ordinance to amend Section 27.02.010, Official Zoning Map, City of Kalispell Zoning Ordinance, (Ordinance No. 1175), by zoning certain real property described as Lot 5 of Hall Addition #82 in Section 6, Township 28 North, Range 21 West, P.M.M., Flathead County, Montana (previously zoned City B-1, Neighborhood Buffer District) to City B-2 (General Business District), in accordance with the City -County Master Plan, and to provide an effective date. The motion was seconded by Van Natta. There was no discussion. The motion carried unanimously upon roll call vote. CONDITIONAL USE PERMIT - SHINING MOUNTAIN CHURCH EXPANSION This is a request for a conditional use permit to allow the expansion of Shining Mountain Church onto an undeveloped area of their property to the east of the existing church building. Larson moved approval of the conditional use permit for Shining Mountain Church with the attached conditions. The motion was seconded by Counsell. There was no discussion. The motion carried unanimously upon vote. FINAL PLAT - BUFFALO COMMONS PHASE 3 BLOCK 1 LOTS 2 AND 3 This is a request for final plat approval of -a two -lot subdivision located in the Retail/Commercial/Office pod of the Buffalo Commons Planned Unit Development. Atkinson moved final plat approval for Buffalo Commons Phase 3, Block 1, Lots 2 and 3. The motion was seconded by Counsell. There was no discussion. G The motion carried unanimously upon vote. RESOLUTION 4673 - ACCEPTANCE OF GRANT AWARD AND ADOPTION OF MANAGEMENT PLAN AND PROGRAM INCOME PLAN The Montana Department of Commerce has awarded the City of Kalispell. City Council. Minutes December 3, 2001 Page 5 Kalispell a $500,000 Community Development Block Grant on behalf of the Second Avenue West Senior Housing Project. Leistiko moved Resolution 4673, a resolution authorizing acceptance of Montana Department of Commerce Community Development Block Grant Funds in the amount of $500,000 for the Second Avenue West Senior Housing Project; establishing a $500,000 budget to be funded with the award; adoption of a management plan for the project; adoption of a program income plan for the project; and establishing an effective date. The motion was seconded by Van Natta. Atkinson announced since he works for Agency on Aging, a partner in the Second Avenue west Senior Housing Project, he will be abstaining from voting, Kukulski congratulated the Community Development Department on their hard work in obtaining the grant, commenting the application received a "perfect score". The motion carried unanimously upon roll call vote. MOTION TO RATIFY COUNCIL DECISION (REMOVED FROM AGENDA) MAYOR/COUNCIL/CITY MANAGER'S REPORTS Kukulski thanked Senator Conrad Burns and his staff for helping to secure a $400,000 grant for the westside bypass. Following discussion, a work session was scheduled for December 5th at 5:00 p.m. to discuss extraterritorial jurisdiction and the December 17th public hearing before the Commissioners concerning the possible dissolution of the Planning Board. Leistiko congratulated the Flathead Bravettes for winning the State Basketball Championship. ADJOURN The meeting was adjourned at 9:15 p.m. ATTEST: Theresa White City Clerk Approved December 1.7, 2001 Wm. E. Boharski Mayor Kalispell City Council Minutes December 3, 2001 Page 6 92, November. 29, 2001 Chris Kukulski Mayor Boharski Council Members 312 1 s' Ave East Kalispell MT 69901 Dear Mr. Kukulski, .Mayor Boharski and Council Members, We wanted to express our gratitude for your consideration in the matter of the broken sewer main"by our house. Your willingness to hear and seriously consider the matter was greatly appreciated. While our experience in dealing with the heads of the Public Works Department was truly a negative, frustrating experience, we would like to commend two of the Public Works workers who did the work in our alley. Both Scott Hanchett, the shop foreman, and Dave Hammer were friendly, professional, and very helpful in getting the job done quickly and efficiently. Our thanks goes out to both of them. Once again, thank you for the quick resolution of this matter. Sincerely, Gerry Fri sen Becki Friesen 1 1 9-3 INTRODUCTION This document is a land use plan to guide the future use and development of School Trust Land generally described as being Iocated within Section 36, Township 29N, Range 22W, P.M.M. The Montana Department of Natural Resources and Conservation (DNRC) is a state agency responsible, in part, for the management of School Trust Lands. Section 36 is located adjacent to the northerly city Limits of Kalispell. The DNRC has prepared this plan in consideration of 2 primary objectives: (I) to achieve a public mandate to generate revenue for the state school system and (2) consider issues of neighborhood compatibility and relationships to local land use plans and regulations. It is the intent of this planning process to integrate with the Kalispell City County Master Plan. This will be accomplished by incorporating the plan for Section 36 into the Kalispell Master Plan via the master planning process identified under Section 76 -I-60I et seq, MCA. This will involve public hearings and approval by the Flathead Board of County Commissioners and the City Council of Kalispell. A "state" planning process involving school trust lands that seeks to integrate into the local planning process is a new concept. Under Montana statutes, the DNRC is mandated to .... "seek the highest development of state-owned lands in order that they might be placed to their highest and best use and thereby derive greater revenue for the support of the common schools, the university system, and other institutions beriefitting therefrom, and that in so doing the economy of the local community as well as the state is benefitted as a result of the impact of such development;' Section 77-I-60I, MCA. Other Montana codes essentially exempt state properties from being subject to most zoning (76-2-402, MCA) and subdivision (Section 76-3-205, MCA) provisions. Despite the apparent advantage that some of these exemptions may offer, this Plan is proposing that all development proposals in Section 36 adhere to local planning and zoning regulations. By following this plan, the long term objectives to generate revenue for the school trust fund and promotion of neighborhood compatibility can be achieved. The DNRC considered, in the development of section 36, the sale of all or a portion of the section in order to provide revenue for the trust beneficiaries. Procedures established for the sale of state land can be found in the Montana Code Annotated, Chapter 77, Part 2.. The current Board has adopted a policy of not entertaining any new land sale proposals. This policy was adopted, in part, because of the rapid increase in land values in Montana and the Board's perception that the sale of any portion of the core trust asset (land base) is not in the best long term interest of the beneficiaries. Also, the policy was adopted due to the contentious nature of state land sales and the cumbersome process established in statute for these sales. Therefore, this plan was developed with a primary emphasis on Iong term lease arrangements rather than land sales. However, future Boards are not bound by the current Board's policy and may elect to sell all or a portion of the subject stake land. This plan seeks to provide direction for any future land use decisions that are made through either lease arrangements or sale. A "state" neighborhood plan also differs in other respects from other neighborhood plans. Not only does the plan involve lands in state ownership but the plan also anticipates a long term development scenario. Based on a number of considerations and circumstances, this plan is Iikely to have application over a period of decades as opposed to a traditional time period of less than 10 years. Integral components of the plan include identification of land use pods, phasing of development, and performance standards for development. DNRC Neighborhood Plan 04120I99- IMPLEMENTATION The DNRC agrees to voluntarily adhere to the provisions of this plan and to any zoning regulations adopted pursuant to this plan. As such, the DNRC and lease proposals will be subject to the same level of plan and zoning review as any other non -government entity. Amendments to this Plan and subsequent zoning requests will follow the procedures set forth by state statutes as applicable to the private sector. The purpose of this self regulation is to enhance public confidence in this plan and to promote a well planned community entrance to Kalispell. GOALS: OO To use this plan by the DNRC and land use regulatory agencies as a "blueprint" for the wise use and development of the State School Trust land OTo seek adoption of this Plan as an official amendment to the Kalispell City -County Master Plan OO To identify responsibilities for development of common elements by individual lease holders ®To adhere to local zoning regulations adopted pursuant to the provisions of this plan Policies: 1. Individual lease holders shall be responsible for the development -of all the 16 r_ MEMORANDUM OF UNDERSTANDING This Memorandum of Understanding is entered int0.this Ll day of 2000 by and between the Montana Department of Natural Resources and Conservation (hereinafter DNRC), Flathead County and the City of Kalispell. WHEREAS, Section 36, Township 29N, Range 22W, PMM, Flathead County, Montana was deeded to the State of Montana and is held in trust as School Trust Land and is administered by DNRC; WHEREAS, DNRC may, in the future, permit development of all but tract 2 of Section 36 (hereinafter Section 36); WHEREAS, DNRC prepared a neighborhood plan for Section 36 which .was adopted as an Amendment to the Kalispell City -County Master Plan by the Board of Commissioners of Flathead County on May 20, 1999 by Resolution 790-o and the City Council of Kalispell on June 7,_1999 by Resolution 4480; WHEREAS, DNRC desires to seek adoption of zoning regulations that would help implement the adopted neighborhood plan; WHEREAS, DNRC seeks to permit development of the property in accordance to the adopted plan and associated zoning; WHEREAS, DNRC will be subject to local subdivision regulations; WHEREAS, DNRC is also subject to the provisions of the Montana Environmental Policy Act (MEPA); WHEREAS, DNRC is obligated under the Enabling Act and the Montana state Constitution to acquire thefull appraised value or fair. market value of lands to the school trusts; WHEREAS, the costs of providing government services to the subject property will be evaluated concurrent with annexation Procedures that require an extension of services plan and all other City regulations pertaining to development; WHEREAS, the City of Kalispell is in no way compelled to annex property should the estimated revenue from taxes or other sources generated from development of the property be insufficient to pay for the required public services; WHEREAS, DNRC was directed on September 20, 1999 by the Board of Land Commissioners to prepare an Moil addressing the issues of planning, zoning, subdivision review and MEPA. Page 1 of 2 NOW, THEREFORE IT IS HEREBY AGREED THAT: (1) any proposed lease on Section 36 involving a change of use or division of land shall be subject to review under local planning, zoning, and subdivision regulations; and (2) any proposed lease on Section 36 involving a change of use or division of land shall be subject to the appropriate MEPA review and analysis, in conjunction with the local application and review process: and (3) DNRC will require any lessee of any property on Section 36 to agree to pay as due all real and personal property taxes including beneficial use taxes assessed against the lease property and lessee's personal property and equipment installed 'and located upon the leased property, in addition to any special assessments that might be apportioned to the property. DNRC, understands and acknowledges, as owner of the said Section 36, that private use of said property is subject to a "beneficial use" tax and provided in Section 15-24-1201, et sec.; and (4) DNRC will require any municipal utilities extended to, and any infrastructure improvements installed within, said Section 36 to be designed and installed in compliance with the City of Kalispell Standards for Design and Construction. Dated this 16 day of , 2000. By: Robert W. Watne Chairman Board of Commissioners Flathead County By: WrI,F- .gdharsM _ Wm. E. Boharski Mayor City of Kalispell By: U� Y' Arthur "Bu Clinch Director. Department of Natural Resources and Conservation 1 1 1 Page 2 of 2 rI N SPRING PRAIRIE PLANNED UNIT DEVELOPMENT AGREEMENT PARTIES AND PURPOSE: This Agreement made and entered into this day of , 2001 is by and between State of Montana Department of Natural Resources & Conservation (hereinafter "DNRC"), with its office. and principal place of business located at 2250 Highway 93 North; and the City of Kalispell, a municipal corporation (hereinafter "City"), with its office and principal place of business located at 312 - 1st Avenue East, Kalispell, Montana 59901: WITNESSETH: WHEREAS, The State of Montana Department of Natural Resources & Conservation is the owner of certain real property located in Flathead County, Montana, which is further described in Exhibit "A" attached hereto and made a part hereof, and which hereinafter is referred to as the "Subject Property"; and, WHEREAS, The Subject Property is subject to a request for annexation and initial zoning; and, WHEREAS, DNRC is desirous of applying a Planned Unit Development (PUD) overlay to city zoning classifications; and, WHEREAS, In order to allowthe PUD, assure the installation of Infrastructure within the "Subject Property", permit connections to the CITY utility systems, and prescribe the permitted uses within the requested zoning areas, the parties hereto determine it is to be in their best interests to enter into this Planned Unit Development Agreement; and, I WHEREAS, (i) Use and development of the property is subject to the provisions of the Section 36 Neighborhood Plan, jointly adopted by the. City of Kalispell and Board of County Commissioners in 1999; (ii) the adopted plan is further subject to an environmental impact statement performed under the Montana Environmental Policy Act; (iii) and further subject to the Record Of Decision (ROD) which establishes additional parameters to development and (iv) a Memorandum Of Understanding (MOU) establishes policy for taxation, local review of projects, and other development considerations; and, WHEREAS, DNRC is requesting annexation of the property=into the City of Kalispell with City of Kalispell Zoning classifications of B-5 to be applied to4he Mixed Commercial POD, R-5 to the Mixed Professional 00D, and R-4 to the Mixed Residential POD; and, WHEREAS, It is desirous by DNRC to further restrict the allowances of these City of Kalispell Zoning classifications to the property and to provide additional standards for development consistent with the Plan by applying a PUD overlay to the underlying zoning lassifications. M ➢ The historical demand for residential dwellings could not justify reserving approximately 400 acres for residential use; ➢ Infll opportunities for commercial uses close to Kalispell would be foreclosed by this alternative and could force commercial uses to locate elsewhere in areas less conveniently located to Kalispell and with less review authority by local govemment; ➢ Leasing lots for single family use is not practical given mortgage obligations and other financial and ownership considerations; ➢ Administration of hundreds of residential lease lots cannot be justified or supported by the anticipated income to the trust; ➢ Exchange of Section 36, excluding the SE 1/, to a private party who would develop the _ property for residential uses is not practical since the exchange would be based upon a market value that would reflect a higher and better use for the property than "residential"; and ➢ This alternative would not meet the objectives set forth in this EIS. Five alternatives are proposed. A mapped representation of each alternative is presented at the end of this Section. 2,5.1 Assumptions common to all alternatives: ➢ The baseline comparison to all proposals is the Section 36 Neighborhood Plan adopted in 1999 and the related MOU adopted in 2000; ➢ Alternative proposals to the 1999 plan may require amendments to the adopted plan. The decision -making authority for plan amendments is the city and county. Should any proposed alternative fail to achieve local approval, the existing plan as originally adopted shall persist and guide future decisions affecting the property; ➢ The plan area subject to all proposed alternatives is the school trust land located in Section 36 and excludes the 20 acre -private parcel located near the west end of Section 36; Eapprove e BPA power Imes are not designed to accommodate any uses under the facilities, including , roads, and parking. The lines would need to be redesigned and elevated to permit roads, he highway 93 by-pass, and parking; he proposed Highway 93 by-pass alignment is recognized as a future possibility within and development is being sited and phased accordingly. The by-pass alignment will need hased by MDT and the Board of Land Commissioners has decision authority to deny or e sale of an easement to accommodate the by-pass alignment through Section 36; ➢ No individual developments or use will be permitted to have direct access onto a perimeter public roadway; ➢ Improvements necessary to serve a developed use on school trust land will be the responsibility of the lessee; ➢ Reclassification to Class 4 lands will occur concurrent with any change of use from Agriculture; 23 1 E ,ATHEAD ELECTRIC COOPERATIVE, INC. S€P - 5 2g August 30, 2001 Narda Wilson, Senior Planner Tri-City Planning Office 17 Second Street E Ste 211 Kalispell MT 59901 Re: DNRC Section 36 Annexation and Initial Zoning — PUD — Comments Dear Ms. Wilson, Thank you for the opportunity to comment on the proposed zoning change and annexation. After review of the documents, we would offer the following comments: • Because this proposal will significantly increase vehicle traffic on West Reserve Drive, and because the existing road is too narrow to safely accommodate the present commercial (truck) traffic; provision should be made for a road easement along the north side of the section so that West Reserve could be widened to the south. The north side has already been developed out to the existing right-of- way and, in addition, contains a major transmission line. • Because of the present traffic congestion at the junction of West Reserve Drive and Highway 93, the proposed Alternate 93 (by-pass) makes little sense. A route taking the by-pass further north before intersecting the present route would ease the congestion. • We would anticipate providing electrical service to this complex primarily from West Reserve Drive, with a secondary approach from Four Mile Drive. Thought shoyid be given to providing utility easements that will provide adequate access. • Given the present need for a new high school, we wonder if a site shouldn't be reserved within this section. Sincerely, Warren G. McConkey General Manager WGMIdh ENGINEERING 2510 Hwy 2 EAST, KALISPELL, MT 59901 PlioNE 406-751-4483IFAx 406-756-3647 Area Chamber of Commerce December 3, 2001 Mayor Boharski and Members of City Council City of Kalispell 312 First Avenue East Kalispell, MT 59901 RE: Third Reading: Ordinance 1404 — Spring Prairie PUD Zoning Dear Mayor and Members of City Council: I urge you to reconsider the amendment that was attached, to this ordinance on second reading. The uses that are included in the original Ordinance 1404 were subject to year's of public comment. There has been an environmental impact statement completed on the section. Each proposed use on the site is still subject to architectural review, subdivision review, and Montana Environmental Policy Act requirements - - on each lease. The bottom line is that there is still ample opportunity for public input on proposed uses. Indeed, the Department of Natural Resources and Conservation (DNRC) is asking for only 19 uses out of 71 permitted uses in similar zoning. What's wrong with commercial uses? The property is already located partially within City limits and provides tremendous opportunity for community infill. The site is located at the intersection of two major highway corridors. It is well suited for the full range of commercial uses and the DNRC has been overly generous to limit their request to nineteen proposed uses. The PUD agreement is good as originally proposed. Let's move forward with it. Thank you for the opportunity to comment on the proposed PUD and annexation request. Sincerely, % q 6Jkh Unterreiner, President hamber of Commerce 1 1 1 15 Depot Park • Kalispell, MT 59901 (406) 758-2800 • Fax (406) 758-2805 • Email: chamber@digisys.net • www.kalispellchamber.com