10/05/81 City Council MinutesTHE REGULAR MEETING OF THE KALISPELL CITY COUNCIL'WAS HELD AT 7:30 P. M.. MONDAY,
OCTOBER 5, 1981 IN THE COUNCIL CHAMBERS AT CITY HALT MAYOR HAPP PRESIDED, COUNCIL-
MAN ZAUNER WAS ABSENT. ALL OTHER COUNCILMEN WERE PRESENT.
APPROVE MINUTES
Councilman Daley moved that the minutes of the regular meeting of September 21, 1981
be approved as presented. Seconded by Councilman O'Boyle. Motion carried.
PUBLIC HEARING - BUTTREY FOODS INDUSTRIAL DEVELOPMENT REVENUE BONDS
Mr. Eugene Hufford, representing D,.A, Davidson, Inc,,. introduced Lyle Gorman, Vice
President of the Real Estate Division for Buttrey Foods, Mr, Gorman displayed a draw-
ing of the proposed store enlargement, The $1,500,000.00 expansion will cover land,
building, parking, equipment, engineering and legal fees. One addition of 8,400
square feet will house sales, storage and a pharmacy, The other will house storage
processing. If the bonds are approved and weather permits, construction will start
this fall. Advantages to the City are an increased tax base, an additional 10 per-
manent employees aside from the construction work and a better shopping district.
The benefit to Buttrey Foods is the lower interest rate.
Councilman Ruiz asked if the break on interest would be extended to the consumer. Mr,
Gorman replied that it would be difficult to figure.. 'Mr.. Hufford explained that the
B&B Shopping Center could have asked for Industrial Revenue Bonds when they did their
expansion.. Interest on IR Bonds is about the same now as the regular interest rate was
at the time of their project.'
Councilman O'Boyle asked why there is a minimum of $600,000 on IR Bonds. Mr, Hufford
replied that there. is so much legal work that D,A. Davidson has set this as an arbit-
rary figure.
Councilman Smith asked if present employees would be affected. Mr. Gorman replied
that probably only one department head would be changed,
Mayor Happ asked for opponents to the request, No one responded,
RESOLUTION #3370
Councilman Daley moved to adopt Resolution #3370, a resolution relating to a project
and revenue bonds under Title 90, Chapter S, Part 1, M,C.A.: Approving and authoriz-
ing Buttrey Food Stores Project and Industrial Development Revenue Bonds therefor.
Seconded by Councilman Smith, Roll call vote. Councilman O'Boyle voted nay. All
other Councilmen voted aye, Resolution adopted,
PUBLIC HEARING - S.I.D. #334 (Paving one block of East Washington Street-700 block)
Director of Public Works Hafferman explained that this S,I.D. is for $14,000. The
street is on the north side of the Vacationer Motel and The Daily Inter Lake. The
City will excavate about 18" and lay the pit run material in before winter so that it
is packed down by spring. Then the street,will be paved.
Pat King, Daily Inter Lake, stated that the street at present is a detriment, All
property owners are in favor of the project., It is a test case with City participa-
tion in an S.T.D. and may be a way of upgrading other :streets at a small cost 'to the
City.
Mayor Happ_called for opponents. No one responded,
RESOLUTION #3371
Councilman O'Boyle moved to adopt Resolution #3371, a resolution to establish S.I.D.
#334, in the amount of $140000 for the purpose of paving one block of East Washington
Street. Seconded by Councilman Daley,
Councilman Granmo asked what the cost would be to the City. Mr. Hafferman replied that
it would be $8,000 to $10,000. The gr avel involved would cost about $3,500 and the
rest would involve men and equipment.
Question called. Roll call vote. All voted aye.
RESOLUTION #3372
Councilman O'Boyle moved to adopt Resolution 03372, a resolution providing for the
call for construction bids for Special Improvement District #334. Seconded by Council-
man Smith,. Roll call vote. All voted aye.
RESOLUTION #3373
Councilman Grainger moved to adopt Resolution #3373;:, a resolution providing for the
call for sale of bonds for Special Improvement District #334, Roll call vote. All
voted aye.
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PUBLIC HEARING - LIGHT MAINTENANCE DISTRICT ASSESSMENT
Director of Public Works Hafferman explained that an error in square footage resulted
in insufficient funds for the Light Maintenance District. Therefore, the rate of
.0011 adopted by Resolution #3368 should be changed to .0015.
Mayor Happ asked for opponents to the change. No one responded.
RESOLUTION #3374
Councilman Ruiz moved to adopt Resolution 43374, a resolution to repeal Resolution #3368
and to levy for the cost of lighting the streets and alleys in the City -Special Lighting
District for the year 1981-82, an assessment at the rate of $0.0015 per square foot.
Seconded by Councilman O'Boyle, Roll call vote. All voted aye,
ADDRESSING THE COUNCIL
Attorney Cal Robinson, representing the Outlaw Inn, addressed the Council with a re-
quest for the City to adopt a resolution calling for a public hearing on a $2,800,000.00
Industrial Development Revenue Bond issue for the Outlaw Inn expansion. The Outlaw Inn
is planning land acquisition for parking, construction of 68 additional rooms and re-
creation al facilities.
RESOLUTION #3375
Councilman Granmo moved to adopt Resolution #3375, a resolution calling for a public
hearing on a proposed project under Title 90, Chapter 5, Part 1; M.C.A. for a
$2,800,000.00 Industrial Development Revenue Bond issue. Seconded by Councilman Ruiz.
Roll call vote. All voted aye.
City Attorney Donahue reported that other cities charge either a basic fee of $350 to
$500 or $2.00 to $5.00 per bond on IR Bonds to cover work done by city employees.
This fee prohibits requests for frivolous projects.
Mayor Happ referred the rate schedule on IR Bonds to the Finance Committee.
COMMITTEE REPORTS
SAFETY
Councilman Grainger asked for a Committee meeting after adjournment to discuss the
police car bid.
SEWER 4 WATER
Councilman Granmo had no report.
CITY DEVELOPMENT
DPW Hafferman reported a. Change Order is, nec ary.: on, the 2- p arkii,g lot. proj ects. , 1s.t Ave.
W p r king Lot _"will add aside, alk 'and -deduct some asphalt suxfacirig,- at a net- ,add-9... cost of
$1;968 The.pCity Hal'1 parking lot: I8;' o! s: ow wiT be.remove.d: d repl_aeer
s: _ flf $6841. making the tot_ l Ch an Oxde.r a:£ $2 ;652 : 00
ca
RESOLUTION#3376
Councilman O'Boyle moved to adopt Resolution #3376, a resolution to adopt Change Order
#1 on EDA Parking Lot Project #05-01--02053-49.. Seconded by Councilman Smith, Roll
call vote. All voted aye,
STREET & ALLEY
Councilman O'Boyle reported that the Highway Department will be meeting with City
officials on moving utilities on the Main Street Project.
PARKS
Councilman Daley had no report,
EMPLOYMENT
Councilman :.Ruiz- reported that the City and AFSCME have reached agreement and the
contract is being prepared for signatures. This leaves only negotiations with the
Firefighters Association.
ANNEXATION
Councilman Smith reported that the Flathead Regional Development Office has recom-
mended new zoning and subdivision application fees which they hope will be adopted by
the Tri- Cities and Flathead County. The proposed zoning fees are being referred to
the zoning Commission and will come back to the Council,,
RESOLUTION #3377
Councilman Smith moved to adopt Resolution 43377, a resolution adopting the follow-
ing subdivision fee schedule, effective January 1, 1982:
Preliminary Plat Review
Final Plat Review
Minor Subdivisions
(5 or less lots)
Condominiums, if land
is not subdivided
Mobile Home Parks and
C arnpgrounds
$200,00 plus $10,00 per lot up
to a maximum of $14000.00,
$100.00 plus $2.00 per lot.
$150.00 plus $7.50 per lot.
$150.00 plus $7.50 per unit up
to maximum of $1,000,00.
$200.00 plus $10.00 per unit
up to maximum of $1,000.00
Seconded by Councilman Ruiz, Roll call vote, All: voted aye,
FINANCE
Councilman Ruiz reported that September claims have been reviewed and moved that all
those found in order be paid. Seconded by Councilman Daley. Motion carried,
Councilman Ruiz stated that in August we adopted a mill levy on the advice from
the Flathead County Assessor that the 1981,82 property valuation for the City of
Kalispell was valued at $15,640,446,00.,. We have now been advised that property
valuation is $16,558,098,00, As this is considerably higher, we could now lower
the mill levy and raise the necessary taxes for the budget..
RESOLUTION #3378
Councilman Ruiz moved to adopt Resolution #3378, a resolution to amend Resolution
#3362, making the annual tax levy for the City of Kalispell as follows:
A RESOLUTION TO AMEND RESOLUTION NO.3362 MAKING THE ANNUAL TAX LEVY FOR THE CITY OF
KALISPELL FOR 1981.
WHEREAS, when Resolution No. 3362 making the annual tax levy for the City of
Kalispell for 1981 was adopted by the City Council, the Flathead County Assessor
had advised that the 1981-82 property valuation for the City of Kalispell was
estimated at $15,640,446.00 making a mill levy return $15,640.45, and based on
said figures, the necessary levies were made for the 1981-82 budget year; and
WHEREAS, by letter dated September 10, 1981, the Flathead County Assessor has
reviseld the said base figure to $16,558,098,,00 making a mill:.levy -return $160558.10;
said mill return will permit a reduction in the mill levy in accord with the budget
adopted by the City for the 1981-82 fiscal year, and such a reduction is allowed by
law.
NOW, THEREFORE, said Resolution No,3362 is hereby amended to read as follows:
SECTION I. That there is hereby levied upon each and every dollar of the tax-
able valuation of the City of Kalispell, Montana, .for the year 1981, the following
levy.
GENERAL FUND 85.9 Mills
RETIREMENT 8.9 Mills
HEALTH INSURANCE 4.3 Mills
S.I.D. REVOLVING 1.5 Mills
LIABILITY INSURANCE 1.1 Mills
TOTAL LEVY REQUIREMENTS 107.7 Mills
PASSED BY THE CITY COUNCIL AND APPROVED BY THE MAYOR THIS 5th DAY OF
October 1981.
/s/ Norma E . Happ , Mayor
ATTEST:
/s/ Marjorie Giermann, City Clerk
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Seconded by Councilman Smith. Roll call vote. All voted aye.
The new total mill levy will be only 1.7% higher than last year, Most cities have had
to go much higher this year.
MISCELLANEOUS
The Tri-City meeting will be at noon, Wednesday, October 14th at the Outlaw Inn.
TAC will meet at 9:30 A.M. Tuesday, October 13th at the Highway Department Office.
Councilman Daley reported on the League of Cities & Town convention held last week
in Billings. There will be very little, if any, recreation grant money this year.
Mr. Daley explained the park program implemented by Billings, which is headed by a
Park Foundation Board and which accepts donations, large or small and uses them to
assist in the parks and recreation program, Mr. Daley felt the program could be
worked in Kalispell.
City Attorney Donahue reported on the "Labor Relations Seminar". He stated there
is ..a possibility that a ;major. city may become involved in a suit because of the
Comprehensive Fireman's Arbitration. Act. The League may assist in the cost of the
defense.
Representatives of all first class cities and others attended the City Attorney's
meeting. He reported that Yellowstone is contemplating a pillow tax of 50 cents
per person per night. If this is passed, they expect a lawsuit from the Motel
Association. The League was cool toward assisting with the defense if this happens.
Mayor Happ was elected Ist Vice President of the League of Cities & Towns and
chaired several sessions.
Mayor Happ said that cities are at the bottom of the barrel when it comes to
revenue, but she came away thinking that our city is in good shape. Four legis-
lators in attendance who stated that cities were not capable of managing their
money were given cool treatment by the League.
Councilman O'Boyle moved to adjourn. Seconded by Councilman Grainger. Motion
carried.
Approved as presented October 19, 1981,
ATTEST:
May orie Giermann, City Clerk
Noma E. Happ, M r