07/21/97 City Council Minutes1048
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A REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:00
P.M. MONDAY, JULY 21, 1997, IN THE COUNCIL CHAMBERS AT CITY HALL IN
KALISPELL, MONTANA. MAYOR DOUG RAUTHE PRESIDED. COUNCIL MEMBERS
JIM ATKINSON, CLIFF COLLINS, NORBERT DONAHUE, DALE HAARR, PAM
KENNEDY, DUANE LARSON, GARY NYSTUL, CITY ATTORNEY GLEN NEIER AND
CITY MANAGER CLARENCE KREPPS WERE PRESENT.
Mayor Rauthe called the meeting to order and led the Pledge of
Allegiance.
AGENDA APPROVAL
Haarr moved to approve the agenda. The motion was seconded.
Krepps requested the withdrawal of items 6 and 7.
Nystul requested the addition of item 15, Business from the
Council.
The motion carried upon vote.
CONSENT AGENDA APPROVAL
A. Council Minutes -Regular Meeting -July 7, 1997
B. Approval of Claims per Payables Register-$267,558.85
C. Oretana Final Plat
D. MDOT Approach Application/Permit
E. Pledged Securities June 30, 1997
Collins moved to approve the consent agenda. The motion was
seconded.
Upon vote the motion carried.
HEARING THE PUBLIC
Housing Assistance
Carol Elkin, Director of Housing for Northwest Montana Human
Resources, told a human interest story of the success of housing
assistance.
Immanuel Lutheran Home
Steve Cummings, attorney representing Immanuel Lutheran Home, spoke
in favor of the Refinance Loan Agreement.
Linda Hewitt, Director of Immanuel Lutheran Home, explained the
plan for the bond proceeds.
Friendship House Roof
Laura Gebhardt, Friendship House, requested any assistance possible
to help with the expenses of a new roof for the Friendship House.
Central School
Delores Swanberg, Lakeside, gave an update on Central School.
PUBLIC HEARING
1997-98 Preliminary Budget
Proponents
None
Opponents
Bill Boharski, 1433 5th Avenue West
Fred Hammel, 505 7th Avenue West
Rich DeJana, 422 Summit Circle
Rauthe closed the public hearing.
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Kalispell Center Mall
Krepps explained since the discussion at the budget workshop, the
City has continued to negotiate with Barbieri's for the Center Mall
Expansion. All three parties have agreed and is being reduced to
a written agreement. A comparison of the major deal points
follows:
City's Original
Position
Contractual Cash
Flow Participation
$300,000
UDAG Loan Interest
Differential
$400,000
20% Participation
in Refinancing
$1,847,746
Proceeds from
Sale of Street
$89,100
UDAG Loan to
Paid 100%
Approx. $2.6
be
million
City budget to
purchase improvements
and demolish
$1.6 million
Crosswalk not
included.
Barbieri's will
purchase land
from Equity.
Barbieri's will
construct $6.134
million improvements.
Improvements must be
completed within 24
months.
Barbieri's Original Current Agreed
Position Position
(No longer a
$ 0 partner) Not an issue
(No longer a
$0 loan agreement) Not an issue
(No loan proceeds
$0 from Refinancing) Not an issue
$0 $89,100 agreed
City to abandon- to be deleted
vacate -allow R.O.W. from City share
to revert to paid to Equity-
Barbieri's at Barbieri's will
no cost. pay Equity the
per foot value.
UDAG Loan to be UDAG Loan to be
Paid 100% Paid 100%
Approx. $2.6 million Approx. $2.6
million within
30 months
City must purchase City will purchase
improvements and improvements from
demolish Equity. City will
$1.6 million not be involved in
demolition
$890,900
Crosswalk not Crosswalk & 3rd Ave.
included. West agreed to be
included in agreement.
Barbieri's will Barbieri's will
purchase land purchase land
from Equity. from Equity.
Barbieri's will Barbieri's will
construct $6.134 construct $6.6
million improvements. million improvements.
Improvements must be Improvements must be
completed within 36 completed within 30
months. months.
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City's Original
Position
All fees, regulations
must be paid/followed
by Barbieri's.
Barbieri's shall not
appeal tax for ten
years (above new value
of improvements).
Barbieri's will pay
difference of actual
taxes generated vs.
taxes granted by
$6.134 million.
If Barbieri's do not
complete the $6.134
million of improve-
ments within 24
months. They must
pay the differential
to City - 6 years.
Barbieri's Original Current Agreed
Position Position
Barbieri's will pay
difference of actual
taxes generated vs.
taxes granted by
$6.134 million.
If Barbieri's do not
complete the $6.134
million of improve-
ments within 36
months. They must
pay the differential
to City - 25 years.
All fees, City regula-
tions must be paid/
followed by Barbieri's.
Barbieri's shall not
appeal tax for ten
years.
Barbieri's will pay
difference of actual
taxes generated vs.
taxes granted by
$6.6 million.
If Barbieri's do not
complete the $6.6
million of improve-
ments within 30
months. They must
pay the differential
to City - 12 years.
Larson moved the city attorney and the city manager be instructed
to proceed with the agreement and to approve the agreement
contingent upon final language of the agreement. The motion was
seconded.
There was discussion.
Donahue, Nystul and Haarr spoke against the motion.
Rauthe, Kennedy spoke in favor of the motion.
Collins called for the question.
The motion carried with a vote with Larson, Atkinson, Collins,
Kennedy and Rauthe voting in favor and Donahue, Nystul and Haarr
voting against.
Equity Supply Request to Abandon 2nd Avenue West North
A letter of request for the closing of 2nd Avenue West North was
received to assist in the three -party redevelopment agreement. As
pointed out in the previous agenda item, Barbieri's will purchase
the land from Equity as a package (including street right-of-way).
The City will deduct $89,100 for the value of the street from the
original amount offered to Equity.
Nystul moved to publish the notice of procedure. The motion was
seconded.
The motion carried with a vote.
Resolution 4345-City Service/Montana Gold Bullet Company Annexation
Larson moved Resolution 4345, a resolution to provide for the
alteration of the boundaries of the City of Kalispell by including
therein, as an annexation, City Services, Inc./Montana Gold Bullet,
Inc. Addition No. 282; to zone said property Light Industrial, I-1,
to amend the City Zoning Map accordingly and to declare an
effective date. The motion was seconded.
With a roll call vote the motion carried with Atkinson, Collins,
Donahue, Haarr, Kennedy, Larson, Nystul and Rauthe voting in favor.
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City Service -Conditional Use Permit -Bulk Petroleum Storage
After review of the conditions specified by the Planning Board, the
City Attorney voiced strong concern about the conditional use and
the fact that they did not specify life safety protection items
strong enough. After further discussion with staff, the City
Attorney negotiated with City Service to clarify and list the
requirements within the conditional use for protection perimeters
of this petroleum storage facility.
A new conditional use permit was distributed that added a condition
that reads: All development proceeding under this CUP shall be
accomplished in accordance with the Uniform Fire Code, and National
Fire Protection Association (Chapter 30), then in effect within the
City of Kalispell.
Haarr moved to approve the conditional use permit for City Service
for bulk petroleum storage. The motion was seconded.
There was discussion.
Upon vote the motion carried.
Resolution 4346-City Sponsorship of Grant for Golf Course
The Buffalo Hill Golf Course has sustained considerable damage from
the high river levels this spring. Upon inspection by Public Works
Director Jim Hansz and Krepps, it is believed 'the City may be
eligible for the Emergency Watershed Protection Funds. The KGA
Management has requested that the City attempt to obtain these
funds.
To be eligible there are several criteria to meet, but the major
items are:
1. A natural occurrence has caused watershed impairment, creating
an imminent threat to life or property. The USDA is
authorized to respond to this type of threat through technical
assistance and/or funding. Reshaping and protecting eroding
stream banks is a major factor in this program.
2. A sponsor must be a local government such as City, County, or
State. A sponsor must have legal authority to receive Federal
assistance, pass a resolution to apply for assistance, appoint
a local contact, and provide assurance that funds are not
available from other sources, and provide 25% cash as in -kind
service.
Educational guesses list the repair cost at $50,000. Krepps
received a letter from Stephen Dunfee, Manager of the KGA,
committing them to the 25% match for the repairs.
The damage to the stream bank is considerable. If this is not
corrected as soon as possible, continual damage from erosion may
result in a complete breech of the golf course grounds. This would
destroy much of the lower holes and the ability to operate.
The Golf Course is City property, a community asset, and an
important tourist draw. KGA is holding the City harmless by
pledging the 25% match.
Kennedy moved Resolution 4346, a resolution authorizing the City to
apply for Emergency Watershed Protection Funds with the Natural
Resources Conservation Service on behalf of the Kalispell Golf
Association. The motion was seconded.
The motion carried upon roll call vote with Atkinson, Collins,
Donahue, Haarr, Kennedy, Larson, Nystul and Rauthe voting in favor.
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Ordinance 1266-Meridian Offices Ltd Zone Change B-1 to B 2 1st
Readina
Based upon the Findings of Fact and no opposition stated at the
meeting, the Planning Board unanimously recommended approval of the
zone change.
Larson moved Ordinance 1266, an ordinance to amend Section
27.02.010, Official Zoning Map, City of 'Kalispell Zoning Ordinance,
(Ordinance No. 1175), by re -zoning property owned by Meridian
Offices Ltd. And Leslie and Patricia Tinseth, described herein
(previously zoned Neighborhood Business Zone, B-1 District), to B-
2, a General Business District, in accordance with the City -County
Master Plan, and to provide an effective date. The motion was
seconded.
With a roll call vote the motion carried with Atkinson, Collins,
Donahue, Haarr, Kennedy, Larson, Nystul and Rauthe voting in favor.
Resolution 4347-Intent to Refinance/Loan Agreement Sponsorship for
Immanuel Lutheran Home
The Immanuel Lutheran Home has requested an agreement to allow them
to issue an $8 million loan for refunding and refinancing the 1987
Series bonds and begin construction of additional improvements for
the nursing facility. The City is the conduit for this type of
bonding and have no liability or changes upon the general credit or
taxing powers. The only effect is the use of an annual $10 million
bonding limitations imposed by Federal law.
Kennedy moved Resolution 4347, a resolution relating to a project
and refinancing on behalf of Immanuel Lutheran Home and the
issuance of Revenue Bonds to finance the costs thereof under
Montana Code Annotated, Title 90, Chapter 5, Part 1, as amended;
granting preliminary approval thereto and calling a public hearing
thereon and establishing compliance with certain reimbursement
regulations under the Internal Revenue Code. The motion was
seconded.
With a roll call vote the motion carried with Atkinson, Collins,
Donahue, Haarr, Kennedy, Larson, Nystul and Rauthe voting in favor.
Ordinance 1265-Sidewalk Amendment-2nd Reading
This ordinance allows the staff authority to begin a permitting
process for items to be placed upon City sidewalks.
Nystul moved Ordinance 1265, an ordinance amending R.O. SS 962 (SS
24-6, Kalispell City Code) allowing obstructions of streets,
alleys, public grounds, and sidewalks by permit, and declaring an
effective date. The motion was seconded.
The motion carried upon roll call vote with Atkinson, Collins,
Donahue, Haarr, Kennedy, Larson, Nystul and Rauthe voting in favor.
Ward III Council Position Appointment
With the resignation of Lauren Granmo it is necessary to replace
the position. Five individuals submitted resumes and were
interviewed on July 14 by the other council members and the mayor.
The individuals are Jerry Begg, John Graves, Fred Hammel, Sydnee
Hill and Randy Kenyon. City Attorney Neier explained his research
as to the procedure and recommended one name be read and the clerk
call the roll until such time the first one to get five votes, will
be the new council person.
With a roll call vote Jerry Begg received 2 votes and John Graves
received 6 votes.
Rauthe congratulated Graves and announced he would be sworn in at
the next meeting.
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Business from Council
Nystul requested some type of procedure for getting Council
requested items on the regular agenda.
Thgre was discussion and consensus to discuss at the next meeting.
FOR YOUR INFORMATION
Next Regular Meeting August 4, 1997 7:00 p.m.
ADJOURN
The meeting was adjourned at 8:55 p.m.
Dougl s D. Rauthe, Mayor
ATTEST:
Debbie Gif 0r C
Clerk of Co c
?kvproved 8/4/97