PUBLIC HEARINGS

Ordinance 2840 rezones GF 1st Addition, Block 354, Lots 8-14, from Medium Density Residential (R-3) District to Low Density Business Limited (B-l-L) District. Golden Triangle Federal Credit Union prepared plans to construct its main office and drive-up facility on subject vacant lots located between 14th and 15th Streets South along the north side of 1st Avenue South.

On January 14, 2003, the Planning Board conducted a public hearing on the plan amendment. During the hearing, Steve King, President of the Credit Union, explained the project and answered questions. No proponents or opponents spoke during the hearing. At the conclusion of the hearing, the Planning Board unanimously adopted a motion recommending the City Commission adopt Ordinance 2840 subject to the applicant complying with the following conditions:

• Development shall be substantially in accordance with the attached site plan.
• Install and maintain landscaping in accordance with a plan to be submitted to and approved by the City Forester.
• Aligning the two approaches to 1st Avenue South to minimize the impact of headlights from exiting vehicles on the existing residences across the avenue.
• Establishing an approximate 20 ft. x 100 ft. mutual access easement over the west end of vacated 1st Alley South.
• Limiting business signage to monument and wall signs.
• Design and install exterior lighting to prevent excessive illumination on public streets and neighboring residential property.

Tacked onto the motion was a provision that Staff verify whether or not a conditional use was necessary in conjunction with permitting the credit union and drive-up facility. After researching the regulations for the Revitalization Plan, staff determined that a conditional use was necessary for a drive-in banking facility in the High Density Business (B-3) District. No similar provision exists in the Low Density Business Limited (B-l-L) District wherein banks are a permitted use.

Mayor Gray declared the public hearing open. No one appeared to speak in opposition to Ordinance 2840. Mr. Steve King, 25 Division Road, Golden Triangle Credit Union, spoke in support. There being no one further to address the Commission Mayor Gray closed the public hearing.

Commissioner Hinz moved, seconded by Commissioner Rosenbaum, that the City Commission adopt Ordinance 2840 with the understanding the applicant complies with the conditions stipulated by the City/County Planning Board.

Mayor Gray disclosed he is a member of the First Presbyterian Church which is the entity selling the land to the credit union.

Motion carried 4-0.
 

Staff reported that due to the general public's concern expressed in recent neighborhood council meetings and at City Commission meetings regarding the future expansion of gambling, i.e. casinos, it appeared urgent and necessary to take action to immediately address the issue. There was also urgent concern by the City Commission to address the zoning limitations for sexually oriented businesses (selling, displaying or performing obscene material or conduct as defined in Title 45, Chapter 8, MCA) by the City Commission's direction to staff to develop an ordinance regulating and limiting such businesses to appropriate zoning to promote the health, safety, morals and general welfare of the citizens. Such regulation of gambling and sexually oriented businesses would ultimately be addressed through the adoption of a growth policy as required by 7-2-4734, MCA, (Resolution 9286, adopted January 21, 2003, directing the Planning Board to prepare and present a growth policy for final approval on or before May 6, 2003) and by the adoption of a modernized zoning and unified development code for the entire city (Request for Proposals for professional assistance has been issued and funds have been identified therefore). Therefore, it was deemed appropriate to adopt a moratorium for the issuance of building permits and occupancy permits for said uses pending the adoption of the growth policy and land development and zoning code.

Subsequent to the initial 6 month period, 76-2-306, MCA, allows a 1 year extension ("not more than two such extensions may be adopted") after additional notice and public hearing. Therefore, if additional time beyond the initial 6 months became necessary to complete the new land development and zoning code, two extensions of 1 year each were available.

Mayor Gray declared the public hearing open. No one appeared to speak in opposition to Ordinance 2843. Those speaking in support were: Loren Keller, 25 Comanche Trail; Gloria Smith, 8 Cheyenne Drive; Sue Ann Strickland, Neighborhood Council 2; Kendra Owen, 1004 El Paso Drive; and Kelly Cumminmgham-Bowers, 3309 Coyote Lane. There being no one further to address the Commission, Mayor Gray closed the public hearing.

Commissioner Rosenbaum moved, seconded by Commissioner Beecher, that the City Commission adopt Ordinance 2843.

Commissioner Hinz stated that Neighborhood Council 7 sent a letter of support for this ordinance.

Motion carried 4-0.
 

At the January 21, 2003, City Commission Meeting, Park and Recreation Director Jerry Sepich reported that as of June 30, 2002, the City was not in compliance with the revenue bond coverage in the Golf Course Fund. This covenant required net Revenue (Gross Revenue less operating expenses, depreciation expense, and interest expense) to be at least equal to the 140% of the principle and interest on the 1998 and 1999 Revenue Bonds. A decrease in membership sales and the number of rounds played, due in part to the weather and completion of the renovation at Eagle Falls, were primary contributors to the City not meeting the required coverage.

As a result, the City was required to review rates and prepare a schedule of altered rates and charges to meet the covenant in FY 2003 and future fiscal years. The proposed increase in user fees in conjunction with a reduction in operating expenses would allow the City to meet required coverage as well as providing for operating expenses, capital outlay and debt service.

Projected increase in revenue from proposed fee changes was $76,750. Mr. Sepich also stated that the proposed fees were approved by the Golf Advisory Board at their meeting on January 9, 2003. The Park and Recreation Board approved the fees at its January 13, 2003 meeting and recommended approval of the fees by the City Commission.

Following a lengthy Public Hearing, the City Commission tabled action on the Resolution and requested staff to re-assess the proposed fees. Since that time, Staff proposed the fees as amended.

Projected increase in revenue from proposed fee changes was $62,025. In an effort to increase the rounds played and thus increase additional revenue, a variety of discounted green fees would be offered. Proposed discounts would include special rates through area lodging establishments and for members of area golf courses. In addition, a direct mailing to past members would be conducted, offering incentives to encourage them to purchase memberships.

Commissioner Beecher moved, seconded by Commissioner Rosenbaum, to remove Resolution 9284 from the Table.

Motion carried 4-0.

Commissioner Beecher moved, seconded by Commissioner Rosenbaum, that the City Commission adopt Resolution 9284 as amended.

Mayor Gray opened up the floor for public comment on this issue. Mr. Harry Birkenbuel, 3517 15th Avenue South, stated that he supported the golf courses but suggested the cost of operating the public courses was a lot higher than local private courses. He asked for information concerning the operating revenue and the operating income. City Controller Coleen Balzarini stated she would be happy to meet with Mr. Birkenbuel and address his questions.

Mayor Gray stated that during this process, the Commission has learned that they need to get more golfers back on the course. Commissioner Beecher concurred suggesting that the administrative changes made would help. Commissioner Rosenbaum requested financial statements for the golf courses quarterly or semi-annually.

Motion carried 4-0.
 

City Manager John Lawton explained that City staff was moving as quickly as possible to retain qualified counsel. He explained that he anticipated this issue to come back before the Commission at their March 4, 2003, Commission meeting.
 

OLD BUSINESS

NEW BUSINESS

Public Works Director Jim Rearden reported that each year, staff reviewed and analyzed the financing needs of the Water, Sewer, and Storm Drain Funds. The review allows Staff to insure the City has the funding necessary to finance day to day operations, and provide for any capital improvements, emergency main breaks, or replacements. These funds also provide the financing to run the Waste Water Treatment Plant effectively.

The Black & Veatch Management Consultants study done in April of 2001 provided the City with a ten year guideline of minimal, but necessary rate increases, based on annual averages of 3% inflation, 0.5% growth, capital reserves of $500,000 and required minimum debt service coverage of 125%. The annual growth of consumption (system usage) is based on recent historical trends. The gradual increases avoid an exceptionally large change in any one given year.

The proposed water, sewer, and storm drain charges, rate structure, and fees were provided to the Commission. With the proposed rates starting April 2003, the average residential utility bill would increase approximately 4.7% or $1.83. This was derived from a water increase of 2%, a sewer increase of 8.1%, and a storm drain increase of 10%. This was only the second storm drain rate increase since its inception in 1989.

The study discovered Malmstrom Air Force Base and the community of Black Eagle had not been adequately charged to cover costs. The phase in rates implemented in 2001 increased the rates gradually with 2003 being the last year of the transition period. The increase will be 10.6% for Malmstrom and 12.6% for Black Eagle.

Projected and actual revenues for the water fund were in line with the Black & Veatch study. However, the sewer fund actual revenues were substantially less than Black & Veatch projected. This could cause a concern for future debt service requirements.

It was anticipated that any rate increase next year, for Black Eagle, Malmstrom, and the City, should be substantially lower than the increase recommended herein. Staff will update the data during the next review process and make a suggestion at that time.

Commissioner Hinz moved, seconded by Commissioners Beecher and Rosenbaum, that the City Commission set a Public Hearing for 7:00p.m. at the March 18, 2003 regular commission meeting on Resolution 9287, addressing the proposed rate and fee increases for the water, sewer and storm drain systems.

Motion carried 4-0.
 

Park and Recreation Director Jerry Sepich reported that Neighborhood Council 4 and the Heren Park Committee submitted a matching grant request for $15,000 to the Park and Recreation Board. This grant request is to be used for Phase I development of Heren Park. The Heren Park Committee has raised the required match for the grant.

Phase I of the project includes an automated irrigation system; earthwork, including berming; seeding; and installation of an asphalt walking path. The Heren Park Committee committed to raising the additional funds needed to complete this initial phase.

Heren Park is an undeveloped park located at 4th Avenue North and 44th Street North. It was identified in the Park and Recreation Comprehensive Master Plan as a park that should be developed.

Since early 2002, Park and Recreation staff has worked with Neighborhood Council 4, through the Heren Park Committee, on plans to develop the park. This process resulted in a final master plan for the park. The Heren Park Committee conducted a number of fund raisers and to date have raised over $15,000.

On April 21, 1998 the City Commission approved the Park Trust Fund policy, which established the criteria for income, expenditure and investment of funds in the Park Land Trust, a portion of the Special Revenue Fund. This policy established a matching grant program. This program provided for individuals, groups, business and/or organizations to apply for a 50/50 matching grant for park projects.

The Park and Recreation Board received the grant application in December, 2002. The Board reviewed and approved the matching grant at its January 13, 2003 meeting and recommended approval by the City Commission.

Commissioner Rosenbaum moved, seconded by Commissioner Beecher, that the City Commission approve a $15,000 matching grant from the Park Special Revenue fund to Neighborhood Council 4 and the Heren Park Committee.

George Littlefield, Neighborhood Council 4, thanked the City Commission and staff for their support with this project.

Motion carried 4-0.
 

CONSENT AGENDA

Commissioner Hinz moved, seconded by Commissioners Beecher and Rosenbaum, that the City Commission approve the Consent Agenda as printed minus Item 8.

Commissioner Hinz stated she pulled Item 8 because a citizen expressed concern about the accuracy of a statement found on page 26. City Clerk Peggy Bourne stated she would review the video tape of the meeting and resubmit the minutes on the Commission's next agenda.

Motion carried 4-0.
 

BOARDS AND COMMISSIONS

CDC member Jerry O'Connell passed away, therefore, it was necessary to appoint one member to fill the remainder of that term.

Commissioner Beecher moved, seconded by Commissioners Hinz and Rosenbaum, that the City Commission appoint Chris McGregor to the Community Development Council to fill the remainder of a three-year term through January 31, 2004.

Motion carried 4-0.
 

Charles Gestring (term expires 12/31/03) and Robert Woodmansey (term expires 12/31/04) resigned their positions on the Cascade County Conservation District effective December 31, 2002. Therefore, it was necessary to appoint members to replace them. After advertising for applicants, only John Chase submitted an application. The Conservation District recommended his appointment.

Commissioner Beecher moved, seconded by Commissioner Rosenbaum, that the City Commission appoint John Chase to the Cascade County Conservation District Board to fill the remainder of a three-year term, through December 31, 2004

Motion carried 4-0.
 

ADJOURNMENT