08/19/96 City Council Minutes09211
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A REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:00
P.M. MONDAY, AUGUST 19, 1996, IN THE COUNCIL CHAMBERS AT CITY HALL
IN KALISPELL, MONTANA. MAYOR DOUG RAUTHE PRESIDED. COUNCIL
MEMBERS JIM ATKINSON, CLIFF COLLINS, NORBERT DONAHUE, LAUREN
GRANMO, DALE HAARR, PAM KENNEDY, DUANE LARSON, GARY NYSTUL, CITY
ATTORNEY GLEN NEIER AND INTERIM CITY MANAGER AL THELEN WERE
PRESENT.
Mayor Rauthe called the meeting to order and led the Pledge of
Allegiance.
New City Manager
Rauthe introduced Clarence Krepps, the new city manager.
AGENDA APPROVAL
Haarr moved to approve the agenda. The motion was seconded.
Kennedy moved to add under Business from the Manager, the Green
Acres failing septic systems that was addressed at the last
meeting. The motion was seconded.
Upon vote the amendment carried.
The amended motion carried upon vote.
ARRxove Minutes -July 15, 1996
Collins moved to approve the minutes. The motion was seconded.
The motion carried with a vote.
Minutes -Special Meeting -July 22, 1996
Collins moved to approve the minutes. The motion was seconded.
The motion carried with a vote.
Minutes -August 5. 1996
Collins moved to approve the minutes. The motion was seconded.
The motion carried with a vote.
Approve Claims per Pavables Register
Nystul moved to approve the claims in the amount of $239,871.53.
The motion was seconded.
Upon vote the motion carried.
ADDRESSING THE COUNCIL
Failing Septic Systems
Candy Naylor, 1579 Haven Drive, asked Council to reconsider the
$4,800 loan for the property owners involved in the failing septic
systems.
lst and Main Buildina
Hollister Larson, 852 5th Avenue West North, 1st and Main Building
owner, was concerned about the possible closing of the street in
front of his building.
Central School
Delores Swanberg, 154 Caroline Point Road, Lakeside, Northwest
Montana Historical Society spoke in favor of renovating Central
School to a museum.
Green Acres
Barbara Macal, 1540 Eagle Drive, Lot 113, read a letter concerning
the failing septic systems and annexation in Green Acres.
Mike DeBaldo, 1516 Eagle Drive, did not want any of the failing
septic owners to lose anything because of his own view points. He
also requested the septics be readdressed and invited the Council
and City Manager to the neighborhood meetings.
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Market Place III
Dave Thornquist, 132 Troutbeck, Lakeside, spoke in favor of the
development project in Market Place III.
Urban Renewal Projects
Gordon Pirrie, Norm's News, spoke in favor of downtown urban
renewal projects.
Virginia Sloan, 445 6th Avenue East, encouraged the consideration
of TIF urban renewal projects.
Con Lundgren, 137 Fairway Boulevard, spoke against any TIF
projects.
Maps
Winifred Storli, 3420 Airport Road, suggested the distribution of
maps clarifying the City boundaries.
Petition
Rauthe read a letter from Ed Trippet, Fred Hammel, Howard Hammer,
Earl Bennett, Danneen and Barry Schulze applauding the Council
decision to repeal Ordinance 1243 related to bonding and TIF
financing.
Mike Lund, 1029 2nd Street West, suggested Council consider the
urban renewal projects.
PUBLIC HEARINGS
Sewer nd Water -Rules Making Authority for Both Utilities
The City Attorney reviewed the Attorney General's opinion dated
December 29, 1995 regarding the authority of the City to annex
properties that use City utilities.
He concluded that the City's position regarding annexation would be
enhanced by the adoption of a rule for the Water and Sanitary Sewer
Department that recognizes the City's current policy as it relates
to requiring Consents to Annex as a condition of using the City's
water and/or sewer utility. He recommended a public hearing on the
rules before final action is taken.
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Nancy Kostman, west side resident, spoke in opposition and also
submitted a petition from residents on Apple Way Drive.
Alice Wilson, 1020 8th Avenue West
Carolyn Hart, 912 8th Avenue West
Barbara Macal, 1540 Eagle Drive, Lot 113
Rauthe closed the public hearing.
Sewer Rate Increase
The City has delayed a sanitary sewer rate increase for the last 2
years pending resolvement of the dispute the City had with the
Evergreen Sewer District regarding rates to be charged to the
district under the interlocal agreement between the two entities.
During this period of time, the City has used reserve funds to
finance a portion of the sewer operations. The proposal before
Council would initiate a customer sewer charge per meter of $2.65
per billing period and increase the costs from $2.54 per thousand
gallons to $2.98 per thousand gallons. The number of dwelling
units will cease from becoming a factor in the rate. The reason
for the increase is related to the anticipated costs of sewer
operations of the next two years. Out of city charges will
continue at 125% of in city rates. These rates will become
effective on usage after September 1, 1996. Sewer rates were last
increased in 1991.
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Opponents
Gib Bissell, 76 Stafford Street, representing Aero Inn, Days Inn,
Four Seasons Motor Inn, Red Lion Lodge, Kalispell Grande Hotel,
Outlaw Inn, Diamonds Lil's Inn, Blue and White Motel and Super 8.
Rauthe closed the public hearing.
Water Rate Adjustments
The adjustments in rates are related to the study initiated in
1994. This study told that the City could issue water bonds for
the improvement program without a water rate increase; however the
study did identify a number of inequities in the current water
rates. The number of dwelling units will no longer be a factor in
the rate structure. The previous 4 block rate schedule will be
replaced by a two block system. Sprinkling rates will be increased
from $.62 per thousand gallons to $.75 per thousand gallons and
fire hydrant rentals are built into the water rates rather than be
funded from property taxes. The water rates were last increased in
1993. These rates will provide sufficient revenue to meet
operating, capital and debt sources for water users.
& RESOLUTIONS
Ordinance 1246-Creating Municipal Court-2nd Reading
This Ordinance establishes a Municipal Court system to replace the
current City Court, effective January 6, 1997. The Council
approved this change as part of the FY 1997 budget. The Ordinance
requires that the Judge be a licensed attorney in Montana for two
years and the court will be a Court of Record, which means that
appeals to District Court will be on the record established in the
lower court. The court will also have concurrent jurisdiction with
the District Court on matters pertaining to landlord/tenant law.
Council approved first reading at the last meeting.
Kennedy moved Ordinance 1246, an ordinance repealing R.O. 1947, SS
7 and 8, and establishing a municipal court for the City of
Kalispell and a municipal clerk position; declaring an effective
date and authorizing the city attorney to codify this ordinance.
The motion was seconded.
The motion carried with Atkinson, Collins, Donahue, Granmo, Haarr,
Kennedy, Larson, Nystul and Rauthe voting in favor with a roll call
vote.
Resolution 4285-Sewer Rule Making Authority
This resolution will implement the "Rules" relating to the City's
sewer utility.
Kennedy moved Resolution 4285, a resolution to adopt an amendment
to Rule V of the Kalispell Sewer Department Regulations. The
motion was seconded.
There was discussion.
With a roll call vote the motion carried with Atkinson, Collins,
Donahue, Granmo, Haarr, Kennedy, Larson, Nystul and Rauthe voting
in favor with a roll call vote.
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This resolution will implement the "Rules" relating to the City's
water utility.
Kennedy moved Resolution 4286, a resolution to adopt an amendment
to Rule V of the Kalispell Water Department Regulations. The
motion was seconded.
The motion carried upon roll call vote with Atkinson, Collins,
Donahue, Granmo, Haarr, Kennedy, Larson, Nystul and Rauthe voting
in favor with a roll call vote.
Resolution 4287-Sewer Rate Inc ease
This resolution includes the 17% sewer rate increase.
Nystul moved Resolution 4287, a resolution to adopt the fees,
schedules, rates, charges and classification imposed on the
customers of the City of Kalispell Sewer Utility. The motion was
seconded.
With a roll call vote the motion carried with Atkinson, Collins,
Donahue, Granmo, Haarr, Kennedy, Larson, Nystul and Rauthe voting
in favor with a roll call vote.
Resolution 4288-Water Rate Adjustments
This resolution includes the water rate adjustments.
Atkinson moved resolution to adopt the fees, schedules, rates,
charges and classification imposed on the customers of the City of
Kalispell Water Utility. The motion was seconded.
There was discussion.
The motion carried upon roll call vote with Atkinson, Collins,
Donahue, Granmo, Haarr, Kennedy, Larson, Nystul and Rauthe voting
in favor with a roll call vote.
Regglution4289-Resolution of Intent to Annex a Portion of the
Evergreen Commercial Strip
This resolution will authorize the mailing of notices to the 34
property owners in the area proposed to be annexed. The notices
will be sent on September 20th, providing an opportunity to protest
up and through the 12th of October. The Planning Board will
consider the request on October 8th, and the Council will hold a
hearing on October 21st. The City has "Consent to Annex"
documents, and Request to Withdraw from the Fire District that are
recorded from nineteen of the 34 property owners. The City can
provide services to the area without adding additional employees.
It is estimated that the City's costs of providing services will be
$50,000, and the annual revenues to the City will be $155,000.
These properties are currently receiving their police services from
the Sheriff's department that is subsidized by the property owners
in the City. Once annexed, they will join the other property
owners in the City in providing this subsidy to those properties
located in the unincorporated areas of the County. Thelen
recommended that Council pass the Resolution of Intent to Annex
this property.
Kennedy moved Resolution 4289, a resolution of intention to annex
territory to the City of Kalispell, comprising that territory
described in Exhibit A attached hereto and thereby made a part
hereof, to be designated as the Evergreen Annexation No. 275, to
fix a date of a hearing thereon, and to provide for publication of
notice of said hearing. The motion was seconded.
Nystul spoke against the resolution.
Kennedy spoke in favor of the motion.
Haarr and Granmo spoke against of the motion.
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Donahue moved to table the resolution and discuss further at a
later date. The motion was seconded.
The motion was tabled with Granmo, Haarr, Donahue, Larson, Nystul
and Collins voting in favor and Kennedy, Atkinson and Rauthe voting
against.
Resolution 4290-Resolution of Intention to
Approve Certain Urban
Renewal Projects Funded by Annual Tax Increment Revenues
Resolution 4290 will modify the downtown Urban Renewal Plan to
include the six (6) projects that were included in Ordinance No.
1243, which was the subject of Council repeal action on Thursday.
The only significant change relates to the
funding of the projects
which will be through annual appropriations
and temporary borrowing
as needed rather than by the use of bonds.
The City is scheduled
to receive approximately $2,000,000+ each
of the next 5 years
(including FY 1997) that can be used to fund
these projects.
1. Kalispell Center Mall $
2,625,000
2. K.D.C. Site
2,000,000
3. Central School Project
2,500,000
4. Affordable Housing
300,000
5. Downtown Parking
800,000
6. Redevelopment Incentive Project
275,000
Subtotal $
8,500,000
Less Land Sales
1,600,000
Total $ 6,900,000*
The Resolution calls for a Public Hearing on October 21, 1996 on
the projects. After the Public Hearing, an Ordinance can be passed
that will then permit the City to enter into development agreements
on each project.
*This does not include temporary interest costs.
Nystul moved Resolution 4290, a resolution calling a public hearing
on a proposed modification of the Kalispell, Montana Urban Renewal
Plan to approve certain projects as urban renewal projects. The
motion was seconded.
There was discussion.
The motion carried upon roll call vote with Atkinson, Collins,
Donahue, Granmo, Haarr, Kennedy, Larson, Nystul and Rauthe voting
in favor with a roll call vote.
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This Resolution establishes a new policy for sidewalk replacement
and reiterates the current policy regarding the installation of
sidewalk in areas that do not currently have sidewalk, which is
that the property owner is responsible to pay for these sidewalks.
Under this policy, the City will assume the responsibility to
replace existing sidewalks. It specifically requires the City to
replace the damaged walks in the downtown urban renewal area in FY
1997. The Public Works Department will develop the plan and
specifications for this program this Winter. The policy requires
the City to establish a sidewalk replacement program for areas
outside the downtown Urban Renewal area in FY 1998 and commits
$25,000 a year to the annual program for five years. In five years
the current sidewalks that are defective will be replaced and the
City will spend $15,000 a year to replace sidewalks. Thelen
recommended that Council approve this resolution.
Larson moved Resolution 4291, a resolution to initiate an annual
Sidewalk Replacement Program for the City of Kalispell and to
reword Section II, "that each year thereafter a budgeted amount
will be used for sidewalk replacement". The motion was seconded.
Donahue and Larson spoke in favor of the motion.
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With a roll call vote the motion carried with Atkinson, Collins,
Donahue, Granmo, Haarr, Kennedy, Larson, Nystul and Rauthe voting
in favor.
BUSINESS FROM MAYOR & COUNCIL
Rauthe thanked Al Thelen for serving as interim city manager. He
was applauded.
Green Acres Failing Septic Systems
Kennedy reviewed the situation and read the letter from the
Flathead City -County Public Health Department as follows:
Dear Mayor Rauthe and Members of City Council,
The Flathead City -County Board of Health at its regular monthly
meeting on August 15, 1996 voted unanimously to request that the
Kalispell City Council reconsider the decision to deny extension of
municipal sewer to the citizens in the Green Acres Subdivision who
have failed home sewage disposal systems. Although the Board
understands the complexities involved in allowing the extension of
municipal utilities to a non -annexed portion of the County, they
feel that the potential Public Health hazard caused by the failed
systems far outweighs the inconvenience caused by such an
extension. A review of the properties involved indicates that
there exists little if any possibility of providing a replacement
system which will fulfill the need for proper treatment of sewage
other than connection to the municipal utility.
Due to conditions throughout the entire subdivision, the Board is
aware that connection of all units of the subdivisions is advisable
and the Department will provide support in the eventual connection
of the subdivision to municipal utilities in future.
Should you require any further information or support regarding
this matter please feel free to contact the Public Health Officer,
or the Director of Environmental Health services at your
convenience.
Sincerely,
V.A. Yaholkovsky, M.D.
Chairman
Kennedy moved to approve the Staffs plan to provide a sanitary
sewer service to the 8 properties and that in addition to all of
the other recommendations and requirements to be sure that the
owners will sign the City standard waiver and not protest
annexation into the City. The motion was seconded.
There was discussion.
Donahue moved to amend the motion to add the city manager be
directed to proceed forthwith with the annexation procedure to take
the Green Acres region including the 8 lots into the City. The
motion was seconded.
There was discussion.
Nystul, Larson, Kennedy, Atkinson spoke against the amendment.
With a vote the amendment failed with Atkinson and Donahue voting
in favor.
The original motion carried with Atkinson and Donahue voting
against.
KGA Lease
Haarr encouraged the continuation of the deliberations with the
Kalispell Golf Association Lease.
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Russell School Bus Stop
Kennedy asked Public Works Director Babb to report on the bus stop
at Russell School. Babb so reported.
BUSINESS FROM MANAGER
Letter of offer by David Thornquist for Market Place III
David Thornquist, acting as an agent of Woods and Water Realty and
representing the owner, Duane Bill Martin, and a major retailer,
has proposed to construct a 24,500 square foot retail building
located at the corner of Center Street and Third Avenue East and
east of the Glacier Bank Drive-Thru facility. He has requested
that the City acquire the improvements on the property at the
current assessed valuation as determined by the County Assessor,
which is $210,000. He also requests that the City demolish and
clear the site at an estimated cost of $60,000. It is anticipated
that the new building will cost $1,200,000, with tenant
improvements costing $380,000. The City's investment will be
returned in 31 years in taxes.
Kennedy moved to approve the proposal as indicated by Woods and
Water Realty and enter into a developers agreement. The motion was
seconded.
There was discussion.
Kennedy called for the question.
With a vote the motion carried with Donahue voting against.
Option on City Owned Property Involved in KDC Site and the Corner
Property Adjacent to the Liberty Theater and Statement of Intent to
Assemble the Balance of Private Property in Block 36
Abrahms Venture has submitted a request to option the purchase of
the KDC site and the corner property adjacent to the Liberty
Theater. Mr. Gallagher outlined the major points of the proposed
option in his memo of August 16, 1996.
There was discussion.
Kennedy moved to have the City of Kalispell enter into an option to
purchase with Abrahms Venture on the redevelopment site on First.
The motion was seconded.
The motion carried with a vote with Collins, Donahue and Granmo
voting against.
Authority to Bid Police Vehicle
Chief Clark requested authority to bid a police patrol cruiser.
Atkinson moved to grant authority to bid a police patrol cruiser.
The motion was seconded.
Upon vote the motion carried.
STAFF REPORTS
Next Work Session August 26, 1996 7:00 p.m. Bus Tour
Next Regular Meeting September 9, 1996 7:00 p.m.
City Picnic August 21, 1996 5:30 p.m. Woodland Park
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Nystul and Collins thanked Thelen for his work here and welcomed
Clarence Krepps.
Collins will be out of town the next work session.
ADJOURN
The meeting was adjourned at 10:32 p.m.
DouglaM D. -
, Mayor
ATTEST:
Cm c
Debbie Giffo , C
Clerk of Counci
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