Mayor & City Council

WHITEFISH CITY COUNCIL February 5, 2024 7:10 P.M. 1) CALL TO ORDER Mayor Muhlfeld called the meeting to order. Councilors present were Qunell, Caltabiano, Davis, Sweeney, and Norton. Councilor Feury was absent. City Staff present were, City Clerk Howke, City Manager Smith (virtual), City Attorney Jacobs, Finance Director Gospodarek, Planning and Building Director Taylor, Public Works Director Workman, Parks and Recreation Director Butts, Deputy Police Chief Conway, Fire Chief Hadley, Senior Planner Compton-Ring. Approximately nine (9) people were in the audience and one (1) attended virtually. 2) PLEDGE OF ALLEGIANCE Mayor Muhlfeld asked Katie 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) Daniel Sidder, Executive Director of Housing Whitefish, announced the Whitefish Workforce Assistance Program is now accepting applications. The application is available on the Housing Whitefish website. Applications are due on March 15th. Bob Horne, 151 Wedgewood Lane, was in attendance to speak on agenda item 9. He asked and Mayor Muhlfeld stated he would open the floor for public comment during that agenda item. Mayre Flowers, Citizens for a Better Flathead, emailed a letter to the Councilors earlier that is appended to the packet on the website, regarding a campaign they are working on for coalition for clean for the former Columbia Falls Aluminum Company (CFAC) site. They are requesting the EPA require fair and independent evaluation of the cost benefit of removing toxic waste off the site to a certified hazardous waste landfill. They also believe a visioning process is important to engage the community. If the site is not cleaned up plan does not call for removal of the toxic waste, then it can probably only used for some limited industrial or limited commercial uses. They are asking the Council to consider writing a letter EPA encouraging them to pause their decision-making process. 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 January 16, 2024, Special Session (p.37) b) Minutes from January 16, 2024, Regular Meeting (p.38) c) Resolution No. 24-06; A Resolution of intention to annex and incorporate within the boundaries of the City of Whitefish by petition and consent of the property owner approximately 1.64 acres of land known as 34 and 36 East Lakeshore Court in Section 14, Township 31 North, Range 22 West, in Whitefish, Montana, and zone the property to WSR (Suburban Residential), based on  City Council Minutes February 5, 2024 the findings of fact in the staff report, and set a public hearing for February 20, 2024 (WAR 24- 03) (p.48) d) Resolution No. 24-07; A Resolution of intention to establish a Commercial Property Assessed Capital Enhancement (C-PACE) Program in Whitefish, Montana (p.68) Councilor Sweeney made a motion, seconded by Councilor Qunell to approve the Consent Agenda. The motion carried, with Councilor Norton abstaining. 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. 24-01; An Ordinance approving Alpenglow, Phase II Planned Unit Development, to develop 18 apartments in one building on approximately 0.609 acres of land located at 530 Edgewood Place, Whitefish (WPUD 23-03) (First Reading) (p.74) Senior Planner Wendy Compton-Ring presented her staff report that is provided in the packet on the website. Staff has received comments that are in support of the project. Mayor Muhlfeld opened the Public Hearing. Daniel Sidder, Executive Director of Housing Whitefish, stated this is Phase 2 of the Alpenglow Apartment project. They are taking advantage of the Legacy Homes Program. They have a pending application with the Coal Trust Multifamily Homes Program. The threshold that they have is 75% of the units have to be serving 95% AMI and below. They are still working on that piece of the restriction. They are happy to work with the city on how the deed restriction looks like and how it is managed. The walking score is 74 out of 100, you can walk to most things that you need to do on your daily life, and you can bike to almost everything. That was their justification for the 1:1 for the parking. Finance is a big part of this. When charging less rent where the market could go, we must make up that subsidy or that money. They will probably be looking at a 50/50 loan to equity/capital that they are bringing into the project. Housing Whitefish has a lot of work to do to bring money to this project to make it work. The next steps will be schematics and construction documents; hire a general contractor later in the spring; and then raise the necessary funds to make this project work. Brandon Theis, Civil Solutions, stated there is access from the site in two different directions; two-way access from the south through the Phase I parking lot; and ingress via the one-way alley of Woodland Place. A new watermain will connect to an existing 8-inch main that was stubbed into this site from Phase I. The building will be sprinkled. There is an existing 8-inch sewer main that runs along the eastern edge of the property. It’s not in an easement right now but it is a city sewer main. They will connect to that main and provide an easement back to the City. The storm main to the site will connect to that with a series of inlets. That water will flow through Phase I development. It will go through a surface storm water treatment and storage facility that has already been sized for Phase II, and then it’ll connect into the Edgewood Street infrastructure that was installed. If the landscaping variance island is not granted, they lose two parking stalls. The landscaping requirements require a landscaping island every 10 stalls and then on the ends of the parking lot, to equal 180 square feet. They will add screening to the existing garbage. They added dormers on the third level to give it more relief. This building is a “L” shape, providing three different access points into the building. There is going to be a lot of natural light coming in and out of these units. There is a courtyard and ample greenspace to break away from the existing building. Nate Dugan, 937 Kalispell Avenue, Shelter WF President, support this project and hopes the Council does as well. 2  City Council Minutes February 5, 2024 There being no further public comment, Mayor Muhlfeld closed the Public Hearing and turned matters over to the Council for their consideration. Councilor Sweeney made a motion, seconded by Councilor Qunell to adopt Ordinance No. 24-01; An Ordinance approving Alpenglow, Phase II Planned Unit Development, to develop 18 apartments in one building on approximately 0.609 acres of land located at 530 Edgewood Place, Whitefish (WPUD 23-03) (First Reading). The motion carried. b) Ordinance No. 24-02; An Ordinance amending Title 12, Subdivision Regulations, of the Whitefish City Code (WSUB 24-01) (First Reading) (p.132) Senior Planner Wendy Compton-Ring presented her staff report that is provided in the packet on the website. Mayor Muhlfeld opened the Public Hearing. There being no public comment, Mayor Muhfeld closed the Public Hearing and turned matters over to the Council for consideration. Councilor Caltabiano made a motion, seconded by Councilor Qunell to adopt Ordinance No. 24-02; An Ordinance amending Title 12, Subdivision Regulations, of the Whitefish City Code (WSUB 24-01) (First Reading). The motion carried. 7) COMMUNICATION FROM PUBLIC WORKS DIRECTOR a) Consideration of awarding the Consultant Agreement for the Water and Sewer Masterplans (p.168) Public Works Director Craig Workman presented his staff report that is provided in the packet on the website. Councilor Norton made a motion, seconded by Councilor Qunell to award the consultant agreement for the Water Masterplan to AE2S; and award the consultant agreement for the Sewer Masterplan to Robert Peccia and Associates. The motion carried. (The staff report provided in the packet was incorrect assigning AE2S to the Sewer Masterplan; and Robert Peccia and Associates to the Water Masterplan.) 8) COMMUNICATIONS FROM FINANCE DIRECTOR a) Resolution No. 24-08; A Resolution to approve a one-time payout of back pay related to Resolution No. 14-59 to the Whitefish Firefighter Relief Association (p.222) Finance Director Lanie Gospodarek presented her staff report that is provided in the packet on the website. Councilor Qunell made a motion, seconded by Councilor Sweeney to adopt Resolution No. 24-08; A Resolution to approve a one-time payout of back pay related to Resolution No. 14-59 to the Whitefish Firefighter Relief Association. The motion carried. 9) COMMUNICATION FROM CITY ATTORNEY a) Discussion of MAID v. State of Montana case (p.228) City Attorney Jacobs stated Council and staff spoke towards the MAID case in December that was filed against the state by Montanans Against Irresponsible Densification (MAID). We changed our ordinances to comply with Senate Bill 323 and SB 528, and Council’s direction was to wait and see what happens with the lawsuit. Since then, Council has been approached by the community to participate and she wanted to get direction from Council. 1) If the city were to intervene, the City would need to ask permission from the Court, 3  City Council Minutes February 5, 2024 and if granted, the City would fully participate in the lawsuit. 2) The city could ask permission from the Court to file an Amicus Brief. The city would pick a side and support that side. Councilor Qunell is concerned that we have a rash of people coming in for building permits to build ADUs, which might make us join this lawsuit. Councilor Norton does not like the ADU regulations. Councilor Davis asked, and City Attorney Jacobs would need to articulate what our interest is when filing a brief. Councilor Sweeney stated he does not think intervening is a way we should go. He asked and Attorney Jacobs stated Council does an interim zoning ordinance, basically stating this is what we are going back to. Councilor Sweeney likes that idea. Councilor Qunell agreed and thought we should be involved in some way, in an Amicus Brief on the merits of this case. Councilor Davis agrees on the Amicus Brief based on the merits. He does not think an interim zoning is the best use of time for staff. He doesn’t think there will be a lot of ADUs made one way or another, based on the interim ordinance. He agrees on the principle. Mayor Muhlfeld addressed Bob Horne and Mayre Flowers in the audience to provide comments. Bob Horne stated the City had an ADU program and had incentives. Council could to an ordinance reinstating that program, but this time come up with incentives that would make a difference. Another reason to get involved is that no good product comes out of a bad process. This process was a flawed process from square one. The Housing Task Force was about onerous local regulations, nothing else was considered. The Housing Task Force consisted of legislators, builders, realtors, and developers and only one member from a local government. The super majority will keep trying to address problems by restricting local government’s ability to deal with those problems at the local level. There is no guarantee these bills will produce affordable housing. They do not control the purchase price, or the rental price. He encourages the Council to address concerns whether it is intervening or through an Amicus Brief. Mayre Flowers, Citizens for a Better Flathead, agrees with Mr. Horne’s comments. She encourages the Council to look at an Amicus Brief. It offers the Council to talk about the unique situations that Whitefish residents are experiencing and address the issue of local control. We can’t come up with affordable housing solutions if we don’t look at the area immediately surrounding our cities. The loss of public input and upfronting it in the growth policy is wrong. The bills request to provide more data to the public is valuable in the decision-making process. Whitefish has a unique challenge in providing affordable housing, because there is so much investment willing to come into a community. Council directed staff not to seek to file an Amicus Brief with respect to the appeal of the preliminary injunction; and not move forward with interim ordinance until further direction from Council through a work session discussion. 10) COMMUNICATIONS FROM ACTING CITY MANAGER a) Written report enclosed with the packet. Questions from Mayor and Council? (p.376) None b) Other items arising between January 31st and February 5th None 11) COMMUNICATIONS FROM MAYOR AND CITY COUNCILORS Councilor Davis asked what the next steps are on Depot Townhomes project. Manager Smith stated staff didn’t get direction from the work session on February 5th. Another work session should be scheduled to 4  City Council Minutes February 5, 2024 review it again. There were concerns of the proposed AMI and the financial statements and there had not been confirmation on the Land Trust. Councilor Davis commented on the resort tax reallocation question that was discussed at the work session prior to the regular meeting. There are two separate issues; 1) the second home issue; 2) the property tax relief is a regressive tax structure. Most of the money is going to a very small number of people. He would think of it as a focus on the regressive tax structure problem. It could be addressed by evenly distributing it to the property owners. Something less of an administrative overhead problem than the second homeowner issue. We haven’t established the money that we have passed. This conversation may be better suited later. Councilor Qunell agrees with Councilor Davis. He doesn’t think it is fair that somebody that does not live here gets the same percentage back that somebody who lives here fulltime. He feels that needs to be addressed. He agrees, it should not be on the ballot again this year. It is something that needs to be studied and put on the ballot at the next election. Councilor Caltabiano agrees with Councilor Davis regarding the resort tax discussion. He also announced February 6th at 1:30 in the Council Chambers, is the economic development forum for the Vision Whitefish 2045. Mayor Muhlfeld welcomed City Manager Smith back and thanked staff for stepping in during her absence. 12) 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 8:54 p.m. /s/John Muhlfeld Mayor Muhlfeld Attest: /s/Michelle Howke Michelle Howke, Whitefish City Clerk 5