Mayor & City Council

WHITEFISH CITY COUNCIL December 6, 2021 SPECIAL SESSION AT 5:30 PM 1) Call to Order The meeting was held in-person in the Council Conference Room. Mayor Muhlfeld called the meeting to order. Councilors present were Sweeney, Feury, Qunell, Davis and Norton. Councilor Hennen was absent. Staff present were City Manager Smith, City Clerk Howke, Planning and Building Director Taylor and Long-Range Planner Osendorf. 2) Interviews City Council interviewed Whitefish Lake and Lakeshore Protection Committee incumbents Roger Rowles, Nancy Schuber and Donna Emerson. Donna Emerson was interviewed over the conference phone. Joe Courtney and incumbent Addie Brown-Testa, and Phil Boland were interviewed for the Whitefish Housing Authority. Phil Boland was also interviewed for the Board of Adjustments. 3) Public Comment None 4) Appointments Councilor Qunell made a motion, seconded by Councilor Norton to appoint Roger Rowles, Nancy Schuber and Donna Emerson to the Whitefish Lake and Lakeshore Protection Committee. The motion carried. Councilor Sweeney made a motion, seconded by Councilor Norton to appoint Phil Boland to the Board of Adjustments. The motion carried. Mayor Muhlfeld, with ratification from the Council, appointed Addie Brown-Testa to the Whitefish Housing Authority. Councilor Norton made a motion, seconded by Councilor Sweeney to appoint Kate Berry to the Whitefish Housing Authority as recommended by the Whitefish Housing Authority, as Resident Advisor. The motion carried. Mayor Muhlfeld made a motion, seconded by Councilor Qunell to appoint Nathan Dugan to the Climate Action Plan Committee. The motion carried. 5) Adjourn Mayor Muhlfeld adjourned the Special Session and opened the Regular session. /s/John Muhlfeld __________________________________ Mayor Muhlfeld Attest: /s/Michelle Howke _____________________________ Michelle Howke, City Clerk  WHITEFISH CITY COUNCIL DECEMBER 6, 2021 7:10 P.M. 1) CALL TO ORDER Mayor Muhlfeld called the meeting to order. Councilors present were Qunell, Feury, Davis, Sweeney, and Norton. Councilor Hennen was absent. City Staff present were, City Clerk Howke, City Manager Smith, City Attorney Jacobs, Finance Director Dahlman, Planning and Building Director Taylor, Public Works Director Workman, Parks and Recreation Director Butts, Interim Police Chief Kelch and Fire Chief Page. Approximately 25 people were in the audience, and 10 attended via Webex. Mayor Muhlfeld moved agenda item 10a) Confirming the appointment of Municipal Court Judge, after Communications from Volunteer Boards. 2) PLEDGE OF ALLEGIANCE Mayor Muhlfeld asked Jim Williams to lead the audience in the Pledge of Allegiance 3) COMMUNICATIONS FROM THE PUBLIC– (This time is set aside for the public to comment on items that are either on the agenda, but not a public hearing or on items not on the agenda. City officials do not respond during these comments but may respond or follow-up later on the agenda or at another time. The mayor has the option of limiting such communications to three minutes depending on the number of citizens who want to comment and the length of the meeting agenda) Mayre Flowers, Citizens For a Better Flathead, Kalispell, stated the packet for this evenings meeting was a challenge to open and download. She asked if there is a way to break it up so that it is easier to download and be able to access information easier. She brought to the Council’s attention an article that was published a few weeks ago on the online version of Outside Magazine, How to Save a Ski Town. She provided a copy to the Council and is appended to the packet on the website. Vail Colorado has a program called InDeed. The program invests in existing housing stock to become deed restrictive. Jim Williams, Fish Wildlife and Parks, Regional Supervisor, stated his staff is here relative to any bear discussions and recycling discussions as a resource. He gave kudos to City Manager Smith and Director Workman who have worked diligently on solutions to the bear issues. 4) COMMUNICATIONS FROM VOLUNTEER BOARDS None 10) a) Confirm appointment of Municipal Court Judge and approve contract (p.661) Mayor Muhlfeld appointed Caitlin Overland as the new Municipal Court Judge and administered her Oath of Office. Caitlin will begin her position on December 13, 2021. 5) CONSENT AGENDA (The consent agenda is a means of expediting routine matters that require the Council’s action. Debate does not typically occur on consent agenda items. Any member of the Council may remove any item for debate. Such items will typically be debated and acted upon prior to proceeding to the rest of the agenda. Ordinances require 4 votes for passage – Section 1-6-2 (E)(3) WCC) a) Minutes from November 1, 2021, Regular Session (Corrections) (p.44) b) Minutes from November 15, 2021, Regular Session (p.53) c) Resolution No. 21-4849; A Resolution extending the Whitefish Strategic Housing Plan Steering Committee (p.58) d) Resolution No. 21-4950; A Resolution correcting typographical errors in Resolution No. 21-36 (p.59) e) Ordinance No. 21-18; An Ordinance amending Ordinance No. 20-17 (First Reading) (p.60)  CITY COUNCIL MINUTES December 6, 2021 f) Confirm the appointment of Thorin Wilson and Kelcie Christenson as a Whitefish Police Officer pursuant to Section 7-32-4113 (2) Montana Code Annotated (p.65) Councilor Norton had corrections to the November 1, 2021 minutes, page 1, John Phelps led the Pledge of Allegiance; November 15, 2021 minutes, page 1, Caitlin Overland “has practiced law”; page 2, Rhonda Fitzgerald "looked at Airdna AirDNA two”; page 3, Giuseppe Caltabiano “out of state plates”; page 4, last sentence, first paragraph “has been threatened and the Consultants’s will” Councilor Norton made a motion, seconded by Councilor Qunell to approve the Consent Agenda as presented. The motion carried. 6) PUBLIC HEARINGS (Items will be considered for action after public hearings) (Resolution No. 07-33 establishes a 30-minute time limit for applicant’s land use presentations. Ordinances require 4 votes for passage – Section 1-6-2 (E)(3) WCC)) a) Resolution No. 21-5051; A Resolution adopting the Highway 93 South Corridor Plan as an amendment to the 2007 Whitefish City-County Growth Policy (p.67) (YT 13:35) Director Taylor presented his staff report that is provided in the packet on the website. Discussion followed between Council and staff regarding annexation prior to creating the transitional zoning district south of Highway 40. Council has the right to deny annexations or can condition an annexation approval. Councilor Feury recommended updating the reference to the Legacy Homes Program on page 26 of the Plan. Mayor Muhlfeld opened the Public Hearing. Dave Hunt, 113 Park Knoll Lane, asks the Council to not approve the Highway 93 South Corridor Plan. He suggests taking additional time to further study and consider improvements to the plan. The traffic data within the current plan shows 2019 data and does not reflect the recent surge in traffic. He asks the council delay approval of the Plan until these issues can be studied further, updated, and integrated into the plan. June Hanson, 6205 Davos Lane, member of the Highway 93 S. Corridor Steering Committee. She feels the Committee has done good due diligence in putting together a plan that is presented tonight. The Committee met regularly looking at data, discussing the data, and getting a lot of input from great subject matter experts and really looking at the three different segments of Highway 93. They solicited and incorporated feedback from the community on several occasions. They held two open houses, conducted an online survey, and the data from that survey was reference frequently when they would meet. They gained insight from subject matter experts, like MDOT, consulting firms that study traffic flow on Highway 93, requirements and consideration for traffic lights, roundabouts, and impact of raised medians on businesses. They looked at each of the segments, the issues, the opportunities, the goals, the objective, implementation activities and actions. This document truly reflects a ton of discussion, research, consideration, and debate. In conclusion, the Steering Committee feels this really does respond to what Council asked them to do 3 ½ years ago and reflects the desires of the community that were voiced. Growth in Whitefish is unprecedented. The Plan is a visionary document that tries to balance the desire of our community and the needs of developers. There is urgency to approve this plan after 3 ½ years of work and consideration. As we all know the growth in Whitefish is exploding and having guidelines in place will help shape the future look and feel of the gateway to Whitefish. If we delay any further, development will continue to happen, using outdated guidelines and plans. Therefore, she encourages the Council adopt the Highway 93 S. Corridor Plan. Mayre Flowers, Citizens for a Better Flathead, Kalispell, referred to the written comments emailed earlier that are appended to the packet on the website. She suggests before moving forward with the Plan, move forward with the Annexation Policy. This Plan is not ready to move forward tonight. There are a 2  CITY COUNCIL MINUTES December 6, 2021 lot of good things in the Plan, but the transition zoning locks you into accepting that kind of zoning. Secondly, City Council denied in 2018 changing the growth policy amendment for the Don K property on Highway 93, stating the transportation plan should be in place. To change this within this corridor plan is not legal. She also addressed that council has full control over whether or not to annex property and the conditions to annex. She also stated it is wrong to move forward with this plan until the transportation plan is completed. The word ‘concurrency’ is nowhere in this Corridor Plan. She strongly urges the Council to table this plan. Lindsey Hromadka, 116 Lupfer Avenue Unit B, along with her partner Michelle Weinberg, represent the South Whitefish Neighborhood Association. They agree with Mayre’s comments. They have submitted letters and testimony regarding this Corridor Plan for the record that are included in the packet. This corridor plan is not consistent with the growth policy and is therefore not in accordance with Montana law. The future land use map in the growth policy page 116 of the packet, designates land between Park Knoll and JP Road as suburban residential. This corridor plan redesignates that land to urban. It is therefore inconsistent. This plan will lead to developers coming to ask for high density zoning in places where they cannot get that zoning right now. That will lead to more contentious and long public hearings from citizens who don’t want that zoning. The reason people will show up to oppose those proposals, is that those proposals are not consistent with the 2007 growth policy. The South Whitefish Neighborhood Association is asking Council not to approve these inconsistent land use designations. They are a violation of Montana law, and do not properly amend the growth policy and it will lead to litigation. Rhonda Fitzgerald, 412 Lupfer Avenue, stated she attended all of the Committee meetings and open houses, and Segment C, Highway 40, and everything south of that was not the main focus of the meetings. She thinks the Committee did understand that the community does not want commercial sprawl south of Highway 40. The Plan does have a lot of really good suggestions and aspirations for making the entrance to Whitefish in Segment A and B, more like what we think of as a community, and more in character with our community. There are several items in Segment A that she thinks are problematic and would be better to take out. 1) Segment A, Background, page 51 of the plan, second sentence, last paragraph “Given the number and frequency of streets a two-way bike lane along Spokane Avenue would need to cross, one-way bike lanes on either side of the highway should also be considered”. This was examined at length during the Downtown Master Plan revision. It is also under Segment A Issues, page 52 of the plan, 2) Page 52 of the Plan, last bullet; “The Downtown Master Plan calls for two-way protected bike lane along the Whitefish Promenade between East 2 nd and East 7th Streets, but MDT has indicated a two-way lane is not ideal given the number of intersections to be crossed. Two, one-way separated bike lanes could potentially be accommodated and should be considered.” That configuration was looked at in great length was not included in the Downtown Master Plan. 3) page 51 of the Plan, page 123 of the packet, last paragraph, last sentence, “A consultant for MDT is currently modelling the potential outcomes of different lane configurations on Spokane Avenue. Results of this effort will provide guidance regarding which lane configurations best meet the vision and needs of the community in the segment”. We have not agreed with MDTs preferred alternative and this empowers that alternative in this corridor plan. 4) Page 52 of the Plan, 2. Transportation Issues, second bullet, second sentence; “There are existing buildings abutting the undeveloped City-owned East 7 th Street right-of-way that would lose some of their parking and an existing stormwater retention pond, sewer lift station, and steep slopes add to the challenge of the road extension”. This is in reference to the block of 7th Street from Spokane Avenue to Kalispell Avenue, which has been in our transportation plan, and clearly needs to be done. This is unnecessary detail regarding that street extension which is in all of our adopted plans. 3  CITY COUNCIL MINUTES December 6, 2021 There being no further public comment, Mayor Muhlfeld closed the Public Hearing and turned the matters over to the Council for their consideration. Councilor Qunell made a motion, seconded by Councilor Feury, to adopt Resolution No. 21-50; A Resolution adopting the Highway 93 South Corridor Plan as an amendment to the 2007 Whitefish City-County Growth Policy. Councilor Qunell asked and Director Taylor stated Highway 93 south of Highway 40 is zoned commercial and can already develop commercially. The transitional zone would control some of the uses that might happen there. Councilor Qunell asked and Director Taylor stated the Council has made it clear, they would not want to see WB-2 south of Highway 40. If someone wanted to annex, staff would ask for a different zoning district that would be acceptable to the City Council. Councilor Qunell made a motion, seconded by Councilor Feury to add Objective 13 under Transportation Goal B.4: Discourage projects along Highway 93 S, that do not have direct access to a controlled intersection until a raised median has been installed. The motion carried. Councilor Qunell made a motion, seconded by Councilor Norton to add a City Action item page 102 of the Plan, Consider legislative amendments to facilitate extensions of road grid access to intersections. Attorney Jacobs stated with respect to new development, the road is required to serve the new development, then it can be a requirement. However, if it is going to serve the community as a whole it generally is not permissible. We can encourage those roads through PUD development but as far as requiring a new development to put in a road that is not only going to serve the new development but the community as a whole is lacking in Nexus. We can encourage them through PUD or CUPs. The motion carried. Councilor Sweeney made a motion, seconded by Councilor Feury, page 51 of the Plan, last paragraph, strike “Given the number and frequency of streets a two-way bike lane along Spokane Avenue would need to cross, one-way bike lanes on either side of the highway should also be considered”. The motion carried. Councilor Sweeney made a motion, seconded by Councilor Qunell, page 51, last paragraph, strike “Additionally, City arborist assessments indicate some mature boulevard trees need replacement this summer and others will need replacement in the next 10 years due to poor tree health, regardless of road improvements.” The motion carried. Councilor Sweeney made a motion, seconded by Councilor Qunell, page 51, last paragraph, strike “A consultant for MDT is currently modeling the potential outcomes of different lane configurations on Spokane Avenue. Results of this effort will provide guidance regarding which lane configurations best meet the vision and needs of the community in this segment.” The motion carried. Councilor Sweeney made a motion, seconded by Councilor Davis, page 52 of the Plan, 2. Transportation Issues, second bullet point, strike “There are existing buildings abutting the undeveloped City-owned East 7th Street right-of-way that would lose some of their parking and an existing stormwater retention pond, sewer lift station, and steep slopes add to the challenge of the road extension.” Planner Taylor stated this section raises issues, there is a goals section in this plan to extend that right-of-way. It is the reality of the situation. The Plan recommends extending that right-of- way from Spokane Avenue to Kalispell Avenue. Councilor Sweeney stated the way that this is written he could make an argument that we are acknowledging some entitlement of those structures along that right-of-way to use them as parking and otherwise. That is not a message we want to send, nor do we want it in any of our official documents recognizing that is an issue. Councilor Norton stated she will 4  CITY COUNCIL MINUTES December 6, 2021 not support Councilor Sweeney’s motion, that right-of-way is documented that it is part of the City’s long-term plan potentially and they are not entitled to parking. It outlines the reality of why that hasn’t happened all these years. The motion carried on a 3-2 vote, Councilors Norton and Feury voting in opposition. Councilor Sweeney made a motion, seconded by Councilor Qunell, beginning on page 52 and continuing on page 54 of the Plan, strike the last bullet point, “The Downtown Master Plan calls for a two-way protected bike lane along the Whitefish Promenade between East 2 nd Street and East 7th Streets, but MDT has indicated a two-way lane is not ideal given the amount of intersections to be crossed. Two, one-way separated bike lanes could potentially be accommodated and should be considered.” The motion carried. Councilor Norton asked and Director Taylor stated the Committee looked at areas within the City as part of their visioning of where appropriate housing, single family housing should go based on the overall future land use. The map on page 91 of the Plan, shows the proposed future land use map for Segment B. There is a balance of General Commercial abutting Highway 93, Urban Density abutting General Commercial on both sides of the highway. That is standard planning to put Urban Density outside Commercial cores. Outside of that is the Suburban Residential. This identifies where we can put housing in our community. There are very few areas in our community we can do that. We are calling for infill in our community and as part of that planning process the Committee looked at that and determined it should all be urban mirrored on both sides of the highway. Attorney Jacobs added a few years ago, when Whitefish 57 Developers applied for a Growth Policy Amendment, their amendments were very specific to their development. At that time Council did not feel that they had met the criteria set forth in the Growth Policy for an amendment. She doesn’t necessarily think that is impediment here. This is a Corridor Plan which is adopted as a neighborhood plan for that overall neighborhood as an amendment and update to the Growth Policy. The original motion to adopt Resolution No. 21-50, adopting the Highway 93 South Corridor Plan as an amendment to the 2007 City-County Growth Policy, as amended with six friendly amendments carried. Mayor Muhlfeld recessed at 9:00 p.m. and reconvened at 9:08 p.m. b) Ordinance No. 21-19; An Ordinance amending Title 4 – Public Health and Safety, Chapter 2- Solid Waste, of the Whitefish City Code (First Reading) (p.296) Public Works Director Craig Workman presented his staff report that is provided in the packet on the website. Director Workman stated staff met with members of Fish, Wildlife and Parks (FWP), and Republic Services on November 16th. This is one of the most active bear years in history. Discussions included how to make Whitefish bear friendly or “Bear Aware” by transitioning all non-downtown garbage cans to an improved animal resistant container. Staff will need direction on how to proceed. Mayor Muhlfeld address Chad Bauer from Republic Services. Chad Bauer, Republic Services, Missoula, stated Red Lodge is complete, 100% a bear resistant container community. They have the ability to purchase bear resistant containers for the residences for both recycling and refuse. It will be an added cost to the constituents of Whitefish, to the tune of about $5.75 per container for both, so about $11.50 per month more than what they are currently paying. These animal resistant containers work and have been well tested. The bears will continue to come into town, 5  CITY COUNCIL MINUTES December 6, 2021 but as long as they are not getting a reward, they will move on. The best option for the City of Whitefish is to look at doing a bear resistant program with both recycling and refuse. This rate is a seven-year contract as opposed to three years. He also wanted to discuss an addendum to the convenience site contract. They agreed to service the convenience site at their cost up until the end of June. It is now December, and they are losing about $15,000 a month between the hauling fees and the processing fees for the recycling. The addendum is asking the City of Whitefish to cover the processing fees. They are still willing to haul the convenience site for free up to the point the curbside recycling contract is done and started. Mayor Muhlfeld asked Chad that he referenced fee approximately $11.50 for both recycling as well as refuse animal resistant containers. Is that in addition to the recycling base rate? Chad said it will be $5.75 on top of the existing recycling base rate and $5.75 on top of the existing trash rate. Councilor Norton asked for clarification, each household will now have their own refuse cart and recycling cart to roll out to the curb. So, we won’t have the 300 gallon containers. The big black tubs will go away, and everything will be moved out to the front of the curb for service. The alley dumpsters for the downtown businesses will remain. Only resident alley containers will be replaced. Mayor Muhlfeld asked, and Director Workman stated once we transition to the animal resistant containers they can be left outside and brought back from the curb by a certain time. We don’t want carts out 24/7. The logistics of service remaining in the alley has its issues with adding more containers to one side the alley and providing at least 6 feet distance between each container and for any object. The curb option seems to work the best, but Republic Services is willing to work with the city and design their routing that works for everybody. Mayor Muhlfeld opened the Public Hearing. Ruben Castron, Citizens for a Better Flathead, Kalispell, submitted comments at the October 18th hearing and again tonight. He encourages Council to pursue the animal resistant option. It is necessary for a safe and efficient roll out of this curbside recycling program. He reiterates the need for a strong public education and outreach. Especially the curbside programs. Speaking with other municipalities across the country, it is necessary that people know what can be recycled and that the recycling has to be cleaned. If the recycling is not clean, and once it has been discovered after collection, the contract currently puts the responsibility on the City to pay for excluded waste to be taken to the dump. He hopes the city looks at that when finalizing the contract. He recommends changes to the code which addresses the issue of storage of rollout containers and clarify some code should the City choose to pursue the animal resistant option. It more or less clarifies the material must be placed in the containers when it is rolled out. There is some discrepancy on how the code is currently written. Mayre Flowers, 2770 Upper Lost Creek Road, gave a shout out to staff, FWP, and Republic Services for coming forward with something that is a critical solution for moving forward with recycling and garbage collection in the city. The liability that the City might encounter if not addressing the bear issue is a real potential. Getting a head of this is important for the Council and as a city. There being no further public comment, Mayor Muhlfeld closed the Public Hearing and turned the matters over to the Council for their consideration. 6  CITY COUNCIL MINUTES December 6, 2021 Councilor Qunell made a motion, seconded by Councilor Norton to adopt Ordinance No. 21-19; An Ordinance amending Title 4 – Public Health and Safety, Chapter 2- Solid Waste, of the Whitefish City Code (First Reading). Councilor Qunell made a motion, seconded by Councilor Norton section C.1. of the code, strike “To the greatest extent practicable”. The motion carried. Councilor Davis asked FWP to provide comment. Jim Williams with FWP introduced Tim Manly, and Eric Wenum. Tim Manly has worked with grizzly bears since 1993 and human conflict issues. Having animal resistant containers for garbage and recycling is a very good step. They have been waiting many years to get good carts that would work, that can actually empty automatically without having to get out and undo clips. He appreciates the fact that Whitefish has an ordinance that says you have to store garbage in an animal resistant manner. He would like people to consider the fact that Whitefish could lead the way as a “Bear Aware” community. Councilor Sweeney asked and Tim stated they have had conversation with past County Commissioner and didn’t go very far. They did get Flathead County to make their transfer stations bear resistant where they were having issues. Eric Wenum, FWP black bear specialist stated that the State of Utah paid penalties of approximately $3.5 million and U.S. Forest Service paid penalties of $11 million for an incident where a small boy was killed. The City right now is primed for an incident. This was a record year for bear conflicts for black and grizzly bears. Black bears were everywhere, and they are still out. The problem persists and it is not going away if this is not addressed in a timely fashion. He expects next year will be worse. We have new residents, people coming from all over the country bringing bad habits. They are not used to living in bear habitat. They don’t think of downtown Whitefish as prime bear habitat. There will be a bigger issue not only from new citizenry but from the bears generational learning. There has been a big bear crop this year and will be kicked off as yearlings come spring and rather than having one problem like the bear with the three cubs running amuck, we will have four independent problems coming in the spring. And they all know the game. This is very timely. Recycling is an attractant. Bears develop a search image. They don’t differentiate a new garbage can that has never had trash in it, has no spell, and has a brand- new plastic smell to it. But because it is a garbage can, they recognize what it is and they knock it over. Bears are going to start to associate especially if the recycling is not clean and they will start to knock over the bins. If they are not animal resistant, we are going to have a recycling problem. The issue will still continue. Councilor Qunell stated this will be an increase of $18 in monthly fees. This will be tough for a lot of our residents to swallow. With that said it is past time to have bear resistant containers in Whitefish. It is also past time to have curbside recycling in this town. Councilor Davis asked and Director Workman the ordinance may need to be modified to indicate city approved containers must be animal resistant. City Manager Smith also mentioned it is staffs intention is to bring it to the Council on January 3 rd an updated MOU for the central recycling site. There was some discussion that followed with concerns of sending this out to rebid considering the changes to the scope of the service. Councilor Qunell made a motion, seconded by Councilor Feury to amend 4-2-3 Container Requirements Section A. add City Approved, Animal Resistant, Containers Required. The motion carried. Councilor Sweeney is concerned with compounding the two items and given the increase cost. We are tripling the cost of refuse disposal each household. Mayor Muhlfeld compels staff to get creative and 7  CITY COUNCIL MINUTES December 6, 2021 find ways to soften the impact this increase will have on property owners. City Attorney Jacobs stated she has concerns about not going out to bid. It is a significant change from the original bid. The original motion to approve Ordinance No. 21-19 as amended carried. c) Ordinance No. 21-17; An Ordinance amending Title 11, Zoning Regulations, Chapter 2 – Zoning Districts, Chapter 3 – Special Provision, Section 34 – Medical Marijuana, and Chapter 9 – Definitions, of the Whitefish City Code (WZTA 21-02) (Second Reading) (Pulled from the 11/15/2021 Consent Agenda for proposed changes) (p.392) Planning and Building Director Taylor presented his staff report that is provided in the packet on the website. This ordinance was on the November 15, 2021, Consent Agenda for the second reading. Councilor Sweeney, seconded by Councilor Norton to pull the agenda off the Consent Agenda and directed staff to amend the ordinance to remove WB-2 as a permitted zone and remove as administrative Conditional Use Permit (CUP). Director Taylor stated the WB-2 is the only area where a lot of vacant or dilapidated properties would be potentially redeveloped and updated by new uses. There has been a lot of concern and staff has received a lot of phone calls. If there are specific concerns of the WB-2 zone, Council could look at a full CUP in that zone. Staff feels like the standards and requirements that are put into place are adequate to allow for Administrative CUP. Adding a full CUP puts significant delay on the applicant. Mayor Muhlfeld opened the Public Hearing. Lance Heavirland, 830 Birch Point Drive, stated Whitefish has a sign ordinance. There is not going to be big green crosses. He wanted Council to take that into consideration. Ed Doctor, 845 Wisconsin Avenue, appreciated what the Council passed unanimously. He suggests sticking with it. Communities overestimate the sales of marijuana. It is a revenue generator. If you limit where a dispensary can go you are limiting a lot of business and tax revenue. Paul Archie, business address is 800 East Eight Street, is in the WB-2 zone. He thinks this location is well suited for cannabis business; understated, discreet, attractive, and perfectly in line with the City’s requirements for tasteful storefronts. He is concerned about the larger argument of if the WB-2 zone is appropriate for cannabis businesses. Limitations on small retail stores in WB-2 are intended to protect the unique retail business environment of the downtown area and to prevent a strip mall type development pattern along Spokane Avenue. The policies have largely worked as intended with the downtown business district flourishing as a tourist destination. A cannabis dispensary is one of the most highly regulated businesses in the state. Everything must be tracked, controlled, secured, and recorded at all times. Employees are subjective to intense background searches. The number and size of sales to customers is limited. No one under the age of 21 can enter the premises. Marketing and branding of products are not allowed. Cannabis businesses are more like a pharmacy than anything else, but even more regulated. The majority of the most attractive retail space in the downtown is off limits to a cannabis business due to proximity restrictions near schools, churches and other dispensaries. The idea is to ensure that cannabis dispensaries can flourish in the downtown area, that idea is mute due to these severe limitations. Starting a dispensary is incredibly difficult and is not a task that is taken lightly. The regulatory hurdles the intense oversight and built-in expenses tend to weed out those who are not in it for the long haul. His company like others are interested in establishing responsible, respectable flagship 8  CITY COUNCIL MINUTES December 6, 2021 businesses that provide valuable services to the community while employing local residence and adding to the tax base of the city. He encourages the Council to adopt the initial regulations. Mike Medlin, 5700 Hwy 93 South, is for the original ordinance that was approved. He also recommends sticking with the State as far as the distances from churches. Ken Deeds, 2273 Cedar Lane, owns and operates a medical cannabis delivery service. The importance of cannabis for residence of Whitefish that are deeply suffering or facing death. He works with and focus on these people daily. The importance of cannabis is medicine is being overlooked with the discussion of zoning. He shared stories of people whose medical illness prohibited them from speaking. People who are suffering should have easy, quick, and accessible access to medicine. Cannabis is medicine. Time in a car, time traveling, time in a home is a much bigger ordeal than Council realizes or understands. He asks the Council to think deeply of the people of our community that are suffering the most when making the decision on zoning and cannabis. The Government and the State of Montana have recognized cannabis as medicine. Montana DPPHS has recognized cannabis as medicine. He asks the City Council to recognize cannabis as medicine as the State of Montana has done. Cannabis businesses should not be treated differently than other businesses when it comes to zoning. By allowing dispensaries in the Hwy 93 S Corridor, you are allowing people suffering the most in our community to have quick local and easy access to medicine. They do not need to battle for a parking spot in downtown Whitefish. Many have sensory and mobility impaired conditions requiring aid and wheelchairs. He hopes Council makes the decision today with a little bit of compassion for them. Giuseppe Caltabiano, 2075 Lion Mountain Loop Road, stated the WB-2 zone is quit large extending along Highway 93 S from Sixth Street to Highway 40. The point of the marijuana facilities zoning ordinance shouldn’t be to eliminate facilities. A ban within the WB-2 zone is excessive. Evaluating distances between stores might offer a better trade off. He agrees the criteria for admin permitting marijuana facilities under the proposed ordinance are sufficient. The final sentence in Section B prohibits any marijuana facility on Spokane Avenue between Railway Street and East Second Street. This is outside of a generic zoning definition. If the City is going to identify specific locations where marijuana facilities are not allowed, then he suggests adding Central Avenue south of Second Street. To keep it consistent with the bars. Rhonda Fitzgerald, 412 Lupfer Avenue, stated no business in Whitefish of any kind is allowed in every zone. The WB-2 is specifically for those retail sales and services, the operations of which typically characterize for the need for large display and parking areas. Marijuana sales is a small retail similar to small sunglass store, shoe store, bike shops, or jewelry stores or pharmacies. Pharmacies are not allowed in the WB-2. The point is it is small retail. It takes a small amount of space with small display area and therefor it should be allowed in zones those types of businesses are allowed, which are the WB-3, WB- 4, and WB-1. There is quite a bit of available area to have a business like this. She hopes the Council has the discipline to stick with the meaning of what the zones are and encourage the sales of this particular product. Tony Viszlay, 29 O’Brien Avenue, stated he is torn on this issue. He operates a dispensary in Columbia Falls. It is not just a retail shop. Starting January 1, horizontal sales are allowed, where dispensaries can buy from another dispensary. Currently that is not allow, so you have to grow, produce, cultivate, and sell. That is not small retail. Right now, there is not a lot of opportunity for a marijuana dispensary to operate as small retail. If you want to be a cultivator, if you want to grow, operate, and continue to provide medicine, you want full control of your product, from seed to sale. In order to do that it is not small retail. 9  CITY COUNCIL MINUTES December 6, 2021 Jared D’Andrea, 124 Bear Trail, a current business owner in the WB-2 zone. He has seen the explosion of the legalization, these businesses require 10-12 parking spots, they get very busy. He doesn’t feel all the cannabis sales should be pushed to the WB-3 zone when exposing the sales and traffic in front of the schools, churches, and parks, and congesting downtown. Scott Chisholm, 1593 East Edgewood Road, marijuana businesses as it stands today, are not just a dispensary, and not just a storefront. It is the cultivation, production, and the store front. If we restrict the WB-2 zone, that will push more business up into the downtown. It is practically impossible to get lease space and it is cost prohibited if you have to buy a building to have a dispensary. You are not only clogging, but you are forcing folks to compete in an area that can’t possibly compete in already. Lance Heavirland, 830 Birch Point Drive, the WB-2 allows for medical offices, and marijuana is considered medical. If that is the case, you are discriminating against the population of people. Not to mention it is a big business, $2.2 billion in Colorado last year. Also, you are going to push all the traffic to the downtown area. There being no further public comment, Mayor Muhlfeld closed the Public Hearing and turned the matters over to the Council for their consideration. Councilor Feury made a motion, seconded by Councilor Qunell adopt Ordinance No. 21-17 on a second reading. Councilor Feury understands Rhonda’s comments. That argument was possibly more valid about ten or twelve years ago than it is today. By eliminating the WB-2 we force everybody to be in the WB-3. There is not that much room in the WB-3, and it is expensive real-estate, and there will be people who will do it, but he doesn’t want a green downtown. He agrees with staff, if we run these things through a full CUP all the time, that is all we are going to be looking at. That is not fair to the businesses. We have put enough sidebars in everything, he feels comfortable that our staff is going to make the right decisions. He is comfortable with what we have done. Councilor Qunell made a motion, seconded by Councilor Sweeney to increase the distance between facilities to 500 feet in the WB-1 and WB-2 zoning districts. Councilor Qunell doesn’t want to see two dispensaries that close to each other on the strip into town. The motion carried on a 4-1 vote, with Councilor Norton voting in opposition. The original motion to adopt Ordinance No. 21-17 as amended carried on a 4 to 1 vote, Councilor Norton voting in opposition. Councilor Feury made a motion, seconded by Councilor Sweeney to extend the meeting to 11:15 p.m. and move agenda item 6e to a future date. The motion carried. d) Ordinance No. 21-__; An Ordinance amending Title 11, Zoning Regulations, Chapter 3 – Special Provisions, Section 35 – Short Term Rental Standards, and Chapter 9 – Definitions, of the Whitefish City Code (WZTA 21-03) (First Reading) (p.435) Planning and Building Director Taylor presented his staff report that is provided in the packet on the website. Councilor Qunell asked and Director Taylor stated mid-term homeowners do not have to register for a business license and do not collect Resort Tax. Mayor Muhlfeld opened the Public Hearing. 10  CITY COUNCIL MINUTES December 6, 2021 Addie Brown-Testa, 331 Karrow Avenue, stated she was surprised when this came out to change furnished rentals could not be rented less than 90 days. She owns a property management company, so this affects her. She thought the goal was to get those that are renting their homes for shorter periods of time. She has properties that she rents for three months and has a lot of repeat customers. She is not renting to big groups of people that are coming in, she sees the nightly/weekly rentals as more of a problem with tourism than the 30-days rental. There is a lot of problems with this, and she doesn’t see how it is going to help affordable housing. She is disappointed in this and asks the Council to postpone and reconsider and think about how to get the people renting their properties inappropriately in our small neighborhoods. She does not think this is the right answer. Roy Testa, 331 Karrow Avenue, property manager, asked what is the purpose of this? This will have an impact on businesses. Who rents these places? They are not vacation rentals. They rent to grandparents, parents, doctors while they look for a house, traveling nurses, construction workers. They are not here for ninety-day, where does the ninety-days come from? What makes that mid-term? Where does the definition come from? How come the Marriot can rent for ninety-days, property management can’t rent for thirty days? This is a serious event here and doesn’t think the research has been done. The retired and senior citizens come in the shoulder season to rent thirty-day rentals. You want to increase the shoulder season, increase the business, this is going to decrease it. You have to rely on people to have integrity. Property managers should have integrity. He just does not understand the ninety-days thing. Suzy Schweikert, 704 Baker Avenue, Five Star Rentals, provided letters from Ray Martin, 1225 Birch Point Drive; Tom Patton, 214 West Sixth Street; Mary Zant, 1286 Birch Point Drive; Dave and Missi Schumer, 1216 Birch Point Drive. She is here representing her owners. They hired her to rent their home. Many of her homeowners have purchased their homes in the last year, at high prices, with monthly rentals in place to compensate them for their taxes. They are not looking for a loophole to jump through. Some of the taxes are in the amount of $13,000 to $19,000 a year. They can’t afford to pay these taxes if their homes sit empty. By taking away monthly rentals these homes will not turn into an unfurnished, low-income rental to fix affordable housing. They will sit empty, and no one will benefit. Many of their homes provide furnished housing for traveling nurses, doctors, radiologists, landscapers, and many more. She collects security deposits, applications, and are run through more of a long-term system. They are also able to customize the lease from one month to three months to nine months. By going through this system, they comply and work with the city and the legalities. They contribute a lot to our town and invest in our community. Furthermore, HOA’s have property managers on site and have strict guidelines. She doesn’t understand the desire to penalize them further. This ordinance would cut out the hardworking taxpaying owners and licensed property managers that are overseeing their homes. She understands the decision was made out of a need, and there is a crisis going on. She hopes the Council tables this tonight. Councilor Qunell made a motion, seconded by Councilor Sweeney to continue the Public Hearing and the remainder agenda items to the December 20, 2021, Council meeting. City Clerk Howke suggested discussing agenda item 10b) a resolution setting the compensation rate for the appointed Municipal Judge. The motion carried. Councilor Sweeney made a motion, seconded by Councilor Qunell to extend the meeting to 11:20 p.m. The motion carried. e) Resolution No. 21-__; A Resolution adopting the Long-Range Fire Department Master Plan (p.465) Moved to December 20, 2021. 7) COMMUNICATIONS FROM PUBLIC WORKS DIRECTOR 11  CITY COUNCIL MINUTES December 6, 2021 a) Consideration to award contract for Curbside Recycling Services (Staff report and contract are included in agenda item 6b) (p.306) Moved to December 20, 2021 8) COMMUNICATIONS FROM FIRE CHIEF a) Resolution No. 21-__; A Resolution establishing the Fire Department Strategic Planning Committee (p.655) Moved to December 20, 2021. 9) COMMUNICATIONS FROM CITY MANAGER a) Written report enclosed with the packet. Questions from Mayor and Council? (p.659) b) Other items arising between November 10th through November 15 th 10) COMMUNICATIONS FROM MAYOR AND CITY COUNCILORS a) Confirm appointment of Municipal Court Judge and approve contract (p.661) Mayor Muhlfeld moved this agenda item to the beginning of the meeting after Communications from Volunteer Boards. b) Resolution No. 21-5152; A Resolution setting the range of compensation for the position of Municipal Judge (p.664) Councilor Sweeney made a motion, seconded by Councilor Feury to approve Resolution No. 21- 52 setting the range of compensation for the position of Municipal Judge at $85,000. The motion carried. c) Consideration of appointments to volunteer boards and committees not made during the Special Session preceding tonight’s meeting Appointments were made during the Special Session preceding tonight’s meeting. d) Letter from Hurraw! Requesting City Council waive variance fee (p.665) Moved to December 20, 2021, agenda. e) Letter from Skeeter Johnston regarding workforce housing plans (p.667) Moved to December 20, 2021, agenda. 11) ADJOURNMENT Councilor Davis made a motion, seconded by Councilor Sweeney to adjourn at 11:15 p.m. The motion carried. /s/John Muhlfeld _______________________________ Mayor Muhlfeld Attest: /s/Michelle Howke ______________________________ Michelle Howke, Whitefish City Clerk 12