Mayor & City Council

WHITEFISH CITY COUNCIL / SPECIAL SESSION November 20, 2023 5:30 P.M. 1) Call to Order Mayor Muhlfeld called the meeting to order. Councilors present were Caltabiano, Davis, Norton, and Qunell. Councilors Feury and Sweeney were absent. City Staff present were Legal Assistant James, City Manager Smith, Planning and Building Director Taylor, Finance Director Gospodarek. 2) Interviews – Vacant Boards/Committees The City Council interviewed incumbent Elizabeth Colley for the Sustainable Tourism Management Plan Committee, and incumbent Daniel Wood for the Whitefish Lake and Lakeshore Protection Committee. Cameron Blake and Carylin Pitman, both incumbents were interviewed for the Whitefish Community Housing Committee as a standing committee, along with Aaron Wolpert. 3) Public Comment None 4) Appointment a) Sustainable Tourism Management Plan. Mayor Muhlfeld made a motion to re-elect Elizabeth Colley, Mark Pascoli and Heather Cauffmen to the Sustainable Tourism Management Plan Committee. The Council ratified the motion. b) Whitefish Lake and Lakeshore Protection Committee Mayor Muhlfeld made a motion to re-appoint Daniel Woods to the Whitefish Lake and Lakeshore Protection Committee. The Council ratified the motion. 5) Adjourn Mayor Muhlfeld adjourned the meeting at 6:30pm and opened the work session. /s/John Muhlfeld Mayor Muhlfeld Attest: /s/Bree James____________________________ Bree James, Assistant to Legal Department  WHITEFISH CITY COUNCIL November 20, 2023 7:10 P.M. 1) CALL TO ORDER Mayor Muhlfeld called the meeting to order. Councilors present were Qunell, Feury, Caltabiano, Davis, and Norton. Councilor Sweeney was absent. City Staff present were, Legal Assistant James, City Manager Smith, Finance Director Gospodarek, Planning and Building Director Taylor, Public Works Director Workman, Parks and Recreation Director Butts, Police Chief Kelch and Fire Chief Hadley. Approximately 20 people were in the audience and 3 attended virtually. 2) PLEDGE OF ALLEGIANCE Mayor Muhlfeld asked Phil Boland 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) Ron Gerson, 9 4th Avenue. East. Kalispell stated the obstacle to short-term rentals is the implementation of rules for illegal short-term rentals. Enforcement is not easy. It may be costly considering the number of illegal short-term rentals. Not enforcing the rules exacerbates the problem. Phil Boland, 12 Green Place, HOA for Grouse Mountain thanked Craig Workman and the Public Works crew for the 32 hours of work in 20-degree weather to repair a watermain break. David Martin, 816 Texas Avenue urged the Council to consider the residents ahead of the tourists and out of state second homeowners. He asks the Council to hire someone to enforce the regulations around Airbnb’s. Bailey McCarvel, 242 Gunsight Loop, Kalispell stated she cannot afford to rent or buy locally. The Flathead Valley is suffering a housing crisis due to a lack of housing options. The lack of enforcement has resulted in approximately 500 illegal Airbnb’s in Whitefish. She asks the City Council to enforce the existing rules around short-term rentals, hire staff to enforce the rules and educate the public of the rules. Gabriel Layton, 303 Obrien Avenue, stated he moved back to Whitefish in 2018. Airbnb was an issue where he lived previously. The housing crisis is frustrating to him. He hopes the city can find someone to enforce the illegal short-term rentals. Susan Whitworth, 265 Colorado Ave. D-10 stated her rent has been increased again. She is paying 60% of her salary towards rent. She feels the Council focuses too much on the resort and not on the community. She hopes the Council will enforce the existing rules that are around short-term rental, hire a staff member to enforce the rules, and educate the public of what the rules are. Chris Mueller, 606 Pine Place stated he has seen housing shortage affect communities from mental health to addiction. If you don’t think about it now, it will become that problem. He asks the Council to enforce the existing rules around short-term rentals.  CITY COUNCIL MINUTES November 20, 2023 Trand Seymour, 937 6th Ave. W., Kalispell explained he lives in his dad’s basement with his 14-year-old son. He doesn’t know or if he will afford to move out of the basement. He doesn’t know what the solution is. He hopes the Council hires somebody to enforce regulations around short-term rentals. Ian Fleming, 110 Colorado Ave. asked the Council to enforce the laws around short-term rentals. Amy, 78 Montana Ave., stated keeping short-term rentals local to home ownership will result in properties going back on the market or shift to long-term rental. The second home property owners do not invest in the community and should not be here. Cameron Blake, 825 Leksand Trail, stated a disregard and a lack of enforcing short-term rentals has led to a multitude of illegal rentals adding to the housing crisis. Moving those units to long-term rentals will increase the rental stock. She encourages the Council to direct the hiring of an enforcement position for short-term rentals and approve the ordinance amending business licensing. Tylor Fischer, Kalispell, owned Costa Vida and understands how hard it is to staff a business. He proposed taxing short-term rentals, which in turn is taxing the tourist. There is an opportunity within Airbnb’s to be able to take care of those who cannot get to the next step than it is to turn it off. Alyssum Ahler, 27 Park Avenue, Executive Director for Families for Responsible Growth, stated we need to address short-term rental issues promptly and must allocate any resources necessary to identify and rectify the problem. She encourages the Council to hire a short-term rental officer. Encouraging short-term rentals to long-term rentals is the most immediate and the gentlest means of meeting our housing needs. Flower Bartholomew, 27 Colorado Avenue, stated the housing crisis is causing a breakdown in the community. Alison Hackala, 640 Crestwood Court, stated she lives in a short-term rental zone. She strongly encourages the Council to expedite the process of hiring an enforcement officer. It is frustrating not to have somebody that can help her enjoy her neighborhood and her community. Rhonda Fitzgerald, 412 Lupfer stated Council has authorized the short-term rental officer for a number of years. She knows the Council understands the importance of this position. The community is at the breaking point. The best thing to do is to move forward forcefully. It would be a huge breakthrough for the community. Ed Doctor attended virtually and expressed how nice it was to see this much public comment and supports hiring someone to enforce short-term rentals. 4) COMMUNICATIONS FROM VOLUNTEER BOARDS None 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 6, 2023, Special Meeting (p.55) b) Minutes from November 6, 2023, Regular Meeting (p.56) c) Ordinance No. 23-25; An Ordinance rezoning 808 & 830 Edgewood Place in Section 25, Township 31 North, Range 21 West, P.M., M., Flathead County, Montana, zoned WLR (One- 2  CITY COUNCIL MINUTES November 20, 2023 Family Limited Residential District) to WR-2 (Two-Family Residential District) and adopting findings with respect to such rezone (WZC 23-05) (Second Reading) (p.63) d) Ordinance No. 23-26; An Ordinance approving the 808 Edgewood Residential Planned Unit Development to develop 24 units in two buildings on 1.66 acres at 808 & 830 Edgewood Place, Whitefish (WPUD 23-02) (Second Reading) (p.65) e) Ordinance No. 23-27; An Ordinance consolidating the Board of Adjustment, Planning Board, and Zoning Commission into a single Community Development Board per Senate Bill 130, and amending §2-3, Board of Adjustment; §2-10-3, Architectural Review Committee, Membership; §2-15, Whitefish Planning Board; §11-2-3, Use Regulations; §11-3-14, Lots; §11-3-25, Outdoor Lighting Standards, §11-3-29, Water Quality Protection, §11-7-3, Zoning Administrator, §11- 7-5, Board of Adjustment; §11-7-6, Appeals; §11-7-7, Variances; §11-7-8, Conditional Use Permits; §11-7-9, Zoning Compliance Permit; §11-7-10, Water Quality Protection Permitting and Review; §14-4-7, Floodplain – Appeals; and §14-4-8, Floodplain – Variances, of the Whitefish City Code (WZTA 23-09) (Second Reading) (p.69) f) Ordinance No. 23-28; An Ordinance amending Zoning Regulations Title 11, Chapter 3, Section 23, Vendors, and Chapter 9, Section 2, Definitions, of the Whitefish City Code (WZTA 23-10) (Second Reading) (p.118) Councilor Caltabiano made a motion, seconded by Councilor Qunell to approve the Consent Agenda as presented. Councilor Norton had a correction on the November 6, regular meeting minutes, page 6, under Council Comments. Snow should be removed by 10:00 am12:00 pm following a snow event. (Staff recommends referring to WCC 7-2-2 for better clarification). The motion to approve the Consent Agenda as amended carried, Council Davis recused himself. 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) Ordinance No. 23-29; An Ordinance amending the City’s Business Licensing Provisions to reflect the new Business Registration Program (First Reading) (p.124) City Manager Smith presented her staff report that is provided in the packet on the website. Council asked and Manager Smith stated Senate Bill 262 was passed and the only added language was under Powers Denied, for a local government with self-government powers, prohibit any power to require additional licensing when the state is the original issuer of the license. When it was presented in the House and voted on, it was very clear it was related more to the professional licensing. They also brought up short- term rentals could not be licensed. We are not requiring a license; we are requiring a registration. We are collecting emergency contact information and looking at zoning through this process and enforcement of resort tax. Retail licensing is controlled through zoning. Mayor Muhlfeld opened the Public Hearing. There being no public comment, Mayor Muhlfeld closed the Public Hearing and turned the matters over to Council for their consideration. Councilor Feury made a motion, seconded by Councilor Qunell to adopt Ordinance No. 23-29; An Ordinance amending the City’s Business Licensing Provisions to reflect the new Business Registration Program. The motion carried unanimously. 7) COMMUNICATIONS FROM PUBLIC WORKS DIRECTOR a) Consideration of approval of a Rating Panel & Selection Committee for the Safe Streets for All Plan, Water & Sewer Master Plan, & Railroad Crossing Elimination Plan (p.132) 3  CITY COUNCIL MINUTES November 20, 2023 Public Works Director Workman presented his staff report that is provided in the packet on the website. Councilor Norton made a motion, seconded by Councilor Feury to appoint Craig Workman and Karin Hilding to the Rating Panel and Craig Workman, Karin Hilding, and Councilor Norton (Councilor Caltabiano as an alternate) to the Selection Committee for Safe Streets for All Plan, Water and Sewer Master Plan, and Railroad Crossing Elimination Plan. Craig Workman, Karin Hilding to serve on the Rating Panel. The motion carried unanimously. 8) COMMUNICATIONS FROM CITY MANAGER a) Written report enclosed with the packet. Questions from Mayor and Council? (p.136) None b) Other items arising between November 15th through November 20th. Manager Smith reported the RFP for the wage study that is included in her report. This is something that has been thought about internally, and is important to do as we look at two Union negotiations in the spring, as well as knowing the cost of living and CPI and how we have had to adjust wages over the years. Manager Smith also reported the city has not gone without enforcement of short-term rentals; we have had some minor enforcement with a short, staffed finance department. It will take some time to hire the short- term rental enforcement position. Manager Smith met with Granicus, a software company to enforce short- term rentals. They recognized 705 short-term rental units in Whitefish city limits. They extend their limits a few hundred yards, so some may not be in city limits. We have 374 that are legal, that leaves 331 unregistered. This position could really help us proactively. The risk comes down to litigation and the potential changes at the legislature in the next session. This position will be more related to resort tax enforcement and short-term rentals. Councilor Qunell made a motion, seconded by Councilor Davis to direct staff to begin the hiring process for the short-term rental enforcement position. The motion carried unanimously. 9) COMMUNICATIONS FROM MAYOR AND CITY COUNCILORS a) Consideration of cancelling the second meeting in December – December 18, 2023 Mayor Muhlfeld asked for a motion to cancel the second meeting in December – December 18, 2023. Councilor Qunell made a motion, seconded by Councilor Feury to cancel the second meeting in December – December 18, 2023. The motion passed unanimously. Mayor Muhlfeld discussed the Summer Camp Program that was presented earlier. Councilor Davis thinks a Summer Camp Program is a good idea and favors Option 3. Councilor Qunell is in favor of helping but doesn’t think this should be provided free of charge to City Employees. He recommends doing some more work on this. Councilor Davis made a motion, seconded by Councilor Norton to adopt option 3 of the Employee Rate for Summer Day Camp and After School Programs. The motion carried on a 4 to 1 vote, Councilor Qunell voting in opposition. 4  CITY COUNCIL MINUTES November 20, 2023 Councilor Norton congratulated Police Chief Kelch on the grant he received, and asked if they could use any of the funds for animal enforcement. Police Chief Kelch explained they do deal with animal enforcement already but would need more assessments to focus on this. City Manager Smith commented that financially the police budget was down, but they could possibly look at a position for animal enforcement in the future. Councilor Qunell wished everyone a Happy Thanksgiving. Councilor Davis asked about the facility maintenance manager and commented that he thought Tony does a good job. Public Works Director Workman thanked Phil for his comments on a good job regarding the water main break. He also brought up the fact that if people were smelling more chlorine in their water, it was because of losing 3000 gallons of water, but it was safe to drink. 10) ADJOURNMENT (Resolution 08-10 establishes 11:00 p.m. as end of meeting unless extended to 11:30 by majority) Mayor Muhlfeld adjourned the meeting at 8:50 p.m. /s/John Muhlfeld Mayor Muhlfeld Attest: /s/Bree James Bree James, Legal Assistant 5