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12/06/82 City Council MinutesTHE:REG[ILAR MEETING .OF THE KALISPELL CITY.COUNCIL WAS HELD AT 7:30 P. M. MONDAY, t. DECE`MQEP, . I9$2..II� `I iE-WUNCIL CHAMURS AT,, CITY -HALL., -MAYOR McDOWELL PRESIDED. AT,,;.COUN.CILNiEN; WERE PRESENT r 71PPRGVB- MxNUTE5:.: :-Councilman Zauner moved -that. the minutes of the regular meeting of November 15, 1,982 lie apprdved,.ds: presented.. Seconded by Councilman Nystul. Motion carried. U�iL C :HFARINI�.. -. Sewet. Rat-e.'Increase Ma} r:'McDowell read the -following notice, which explains the,proposed rate increase and `purpas_e NOTICE TO CITY OF KALISPELL SEIVER USERS The Kalispell City Council will,, at a public hearing to be held in the Kalispell City Hall Council Chambers on Monday, December 6, 1982, commencing at 7:30 P, M., consider and act upon a proposal to amend the.pxesent City of Kalispell Sewer Department fees, schedules and rates applicable to the use of the City of Kalispell Sewage System and other services performed by said utility. Said amendments will be for the purpose of increasing the gross annual revenue of -said sewer utility by 12% or less, as authorized. by Section 69--3-101•et seq., M,.C.A. .The total increase in the annual revenue of said :._ sewer utility produced.by said.amendments is estimated.to be $58,000.'00 if they are adopted as proposed,. Specific fees, schedules and,rates as proposed to be adopted by said amendments are on file in the office of the Kalispell City Clerk and may be examined by any person in said office during usual business hours...! Any person concerned with the proposed amendments_ may appear at said public hearing and furnish comments thereon orally or in writing; also, any person may furnish written comments on said proposed amendments for City Council consideration by delivering same to the Kalispell City Clerk at any time prior to said public hearing, Mayor McDowell asked for input from the sewer users. Frank Foot, 1335 6th Avenue East, read a statement which stated that he could realize that inflation affects all facets of government and there can be no doubt that the Sewer Department does need extra money. It questioned.taking on more sewage users and if we do, ask them to pay con- struction -costs rather than asking present ratepayers to assume the cost. He said also that if our plant is not running to capacity, storage tanks could be built to collect sewage. during peak hours of use and cycled during -hack hours at night.. He staled that he was also concerned as to the reason the consulting firm of Morrison- Ma�ierle of .Helena was never called on to take care of the problems created by their last engineering fiasco. At the time the city residents were asked to vote on and endorse the current plant, they were assured that the plant would meet our projected needs for.a long time into the future. Instead, the plant has been one big headache from lhr_-day it was put into use, including the smell that caused lawsuits and threats and threats..thereof. He concluded by saying that he believed that before any further action is taken regarding the rate increases, the Council should initiate legal action against Morrison-Maierle for the purpose of recovering costs of improving the sewage plant so that it would function as it was supposed to. Director of Public. Works Hafferman explained that the plant has a capacity of 2.8 million gallons per day and presently is processing in about a 1.2 range. When the plant was built with EPA funds.it was agreed 4that it would be a regional plant and residents within.a certain radius would have the right to .use the plant as long as city residents were served first, The City will benefit financially from accepting more areas on the sewer line and we are looking not -only north, but also south and west. City Attorney Neier stated that the City of Kalispell was sued by residents in the plant area because.of the bad odor and the City in turn counter -claimed and cross, claimed. against Morrison Maierle, Engineers, and the Purifax Corporation; At present former City. Attorney Donahue, Attorney Sy Larrick and he are working.to get a trial date. Rbgar:Hoffman . stated, that he had -not received notification of last year's public hearing. He.questio ed,the state of economy, $700,000 in unpaid taxes last year, and the high rate fneeded: foswe. maintenance.' t=e stated he,' was .hred.'i;f the EPA telling us what -we have to do. 430 Tom Flynn, Sewer Rate Study Consultant, stated that less than a month ago, P.P.&L. held a public hearing and asked for a 52% raise. If this is granted, the treatment plant is looking at an increase in their power bill of $15,000 next year. The most important basis of the need for an increase is that the City has obligated sewer funds to cover their share of three EPA grants covering a study, a contract with Chemseal to clean, an engineering design, and a fourth is coming up. To cover the outstanding warrants for these grants, the new grant coming up for construction to improve the plant and to establish a fund for replacing old sewer lines, there is a need to sell sewer revenue bonds. In order for these bonds to be saleable we must show sound financial funding. Rates should have been raised several years ago. Mr. Flynn offered the following comparison: Kalispell: $1.12 Whitefish;-$1,.22 Columbia Falls: $2.38 The minimum sewer bill for residents is now $6.00 and the 12% raise will make the minimum $6.72. In order to meet the present obligations,Mr, Flynn presented pages 6 and 7 of his report which shows anticipated revenues and expenditures for the next 5 years. To meet the obligations shown, the sewer rate will have to be increased another 12% for the next three years, level off the fourth, and require no raise the fifth year. Director of Public Works Hafferman stated that some sewer lines are in critical con- dition, and hoped that nothing happened to.cause a major catastrophe. There is a min- imal amount set aside from hookup fees, but more than that is needed for replacing lines, vehicles and equipment. It is a matter of getting on a program. The projected raises for the next four years include inflationary figures of 10% and 5% and also con- siders new users, if this 5 year outline is followed, we will attain a solid finan- cial status and a system in good shape. Councilman O'Boyle asked if this raise would include the purchase of a cleaning machine. Mr. Hafferman stated that the machine could be purchased now, paid for over 5 years, with the first payment being next year, Contracting the 'cleaning would work out.if there were not emergency situations, Last week he had to call Whitefish to assist with an emergency. George Darrow, who owns property at 35 West Wyoming, was concerned about the storm sewer system in his area. Mr. Flynn told him that this raise concerned only the sani- tary system and not the storm sewer, Mayor McDowell assured Mr. Darrow he would have Director of Public Works Hafferman look at his situation. Mr. Bill Dan, Equity Supply, stated that 12% increase did not amount to very much for residents, but the Equity, which pays $1,000,00 per month, is now looking at an addi- tional $120,00 per month. Mr. Flynn replied that this is the reason the rate should have been raised several years ago, Commercial users got by so reasonably in the past that it is a very large increase now, Councilman Nystul stated that, in summary, to respond .to Roger Hoffman's question about keeping us out of debt, it is important that we look at this rate increase at this time because the financial condition of the Sewer Department is, not good. We inherited debts for the sewer study, cleaning and construction design; Tf the people on the north end of town.knew what the condition in the lines was before ,it reaches the railroad tracks, they would be very cautious. We need to get our/sewer fund in a better financial con- dition so that we can properly address these debts ancLget on with a replacement program. Councilman Palmer asked if we had 10 days in which to --make a decision on the rate in- crease. Mr, Flynn replied that the Council has 30 days, but there is a question of writing a new computer program for the raise before the January billing, in order to make it effective January 1, 1983. Councilman Ruiz set 4:00 P. M. Tuesday, December 14th for a Sewer & Water Committee meeting and the Council will vote on the raise at the regular meeting of December 20th. Councilman Ruiz moved to adjourn the public hearing. Seconded by Councilman O'Boyle. Carried. ADDRESSING THE COUNCIL Norbert Donahue addressed the Council concerning the Countywide Advisory Board, relative to the newspaper report of the meeting that was held last week. He stated that evidently his suggestions were not followed or found wanting, but hopefully, the changes were not final. He asked if everyone had read the CAB Agreement and By -Laws. The idea to change the membership from 4 to 9 would not be a wise move. Originally, APO, which was replaced by the CAB had 15.members and it developed into a debating society and failed. If you allow CAB to increase from 4 to 9 members, it too will fail. Direct the Mayor to resist. There is no reason for the chairman of each plan- ning board and another commissioner to be members of this Board, CAB is not a planning agency - if it becomes one, it will fail. Membership should be limited to the three Mayors and 1 County Commissioner. Their duty is to establish a budget for the indivi- dual boards and the City County Planning Board. They should have meetings with each 3 board before April 15th, discuss their needs, wiietheg they need 4n attorney or their own City Attorney, whether they will be traveling to meetings or seminars, etc. State law is specific on how the City County Planning Board is.funded and this is incorporated into the CAB Agreement. CAR should not be a sounding board for planning. Mr. Donahue also stated that City County Planning Board Director, Nick Verna, is well trained and a professional planner and should be listened to. CAB has the authority to fire Mr. Verma or any of his staff. Rather than looking at Mr. Verma, look at his staff. You have a one-fourth vote; resist expansion, Mayor McDowell replied that we are keeping just four Board members. The Board went on record to support Mr. Verma and his staff, They did ask for input from the County Commissioners and the Planning Board, but made no changes. Access to the Minutes of the CAB is available, if desired. COMMITTEE REPORTS ANNEXATION ORDINANCE #1022 Councilman Palmer moved second reading of Ordinance #1022, an ordinance to amend Section 3.04, Table 3-1, Permitted and Conditional Uses, Appendix B, to allow "Colleges and Universities, Private and Public" as conditional uses in zoning districts SAG-1, R-1, R-2, R-3, R--4, R-5, RA-1, RA-2, RAn3, and P.U.D, Seconded by Councilman Saverud, Roll call vote. All voted aye. Councilman Palmer reported that a letter would be sent to the Flathead Regional Develop- ment Office indicating that the Council expressed a desire to the Annexation Committee for the FRDO to fact find and recommend acceptance or rejection of; (A) Group Pyra- mid Planning. (B) Public Utilities District. (C) Reduction of City Zones. The letter would also contain an expression of appreciation for the cooperation of the FRDO. Councilman Palmer reported that the Committee has asked City Attorney Neier to amend the toning ordinance to cover rowhouse regulations. When Ordinance #920 was enacted, rowhouse regulations were inadvertently omitted. Some were built during the last 3 months. City Attorney Neier said he has drafted an ordinance which should go to the Zoning Commission for review before Council takes action. Councilman Palmer moved to allow City Attorney Neier to draft an ordinance to amend Ordinance,4020.to include rowhouses and townhouses and send to the Zoning Commission for a recommendation to -'the Council. Seconded by Councilman Grainger, Motion carried. STREET 4 ALLEY Referring to the request by Larry Blumer, owner of the Intermountain Bus Depot, to have signs erected on Highway #93 and Airport Road, Councilman, �O, Boyle reported that the City has no jurisdiction on Highway #93, but does have on Airport Road. Signs could be placed so that north and south traffic could read directions to the bus depot. The signs would cost approximately $160.00 erected, The City would stand the expense as these are standard public signs similar to ones directing persons to hospitals, airport, etc. Councilman O'Boyle moved to erect the bus depot signs on Airport Road, Seconded by Councilman Zauner. Motion carried, Dr. Allison has requested two parking spaces on the avenue side of his office, -which is located at Second Avenue East and Fifth Street. He has older patients who cannot find a close parking place. The Employment Office seems to use all available space. Council agreed that if we just reserve these two spaces for Dr. Allison, other businesses could request the same privilege, Chief Stefanie was instructed to inform Dr. Allison that he could try 15 minute limit on two spaces to allow for unloading patients and picking up and see if that will work. A film on the garbage sidearm loader was to have been shown this week but has been postponed. Council will be called when a new time is established. PARKS Councilman Vidal reported that the Parks Committee met and agreed to hire the firm of Smith & Company, Bellevue, WA, to do a study on the swim pool. A letter from Smith $ Company states that they will travel to Kalispell and do a two day study and give a recommendation from that study. They would like Superintendent Drent and the Park Committee to be on hand when they do the inspection. At the request of Superintendent Drent, Councilman Vidal has asked City Attorney Neier to draft an ordinance covering donation of parkland or'money in lieu of park land on annexations. At the present time, only when an area is sub -divided is --:the require- ment made. Some areas are annexed, housing projects or apartment houses are built which serve a great number of tenants, but is not a sub -division and we receive no land or money in lieu of. 432 The Parks Committee has been in contact With Jim Thompson, who is working to define a recreation distract with School District #5 and Flathead County, and which may be- come'an interlocal agreement with the City. Councilman Vidal stated that she and Super- intendent Drent have been asked by Mr, Thompson to give their input and Mr. Thompson has asked that he be allowed to be involved with our pool. At the request of Councilman Nystul, Mr. Lee Tower, President of the Airport Association, will give a report on the airport at next Committee -=:..meeting, The FAA had sent a letter of concern because the runway lights were out, but it was explained that this was while some construction was underway and they are working now. COMMUNITY DEVELOPMENT Councilman Saverud reported that Councilman Nystul, Finance Director Swanson, Community Development Director Gallagher and he will be going to Helena on Thursday, this week, to attend a seminar on Tax Increment. SAFETY Councilman Grainger had no report. SEWER $ WATER Councilman Ruiz had no report, FINANCE Councilman Nystul reported that the Finance Committee, with power to act, awarded the bid on installation of conduit for the Historical -Decorative lights to Harp Line Con- strictors for the amount of $30,311,00. Councilman Nystul reported that the bids for the lights .were substantially higher than anticipated, and moved that both bids be rejected, Seconded by Councilman Saverud, Motion carried. CDC Director Gallagher and others will research the light market for some within avail- able funds. RESOLUTION #3448 - S,I,D. #334 Councilman Nystul moved to adopt Resolution #3448, a resolution levying and assessing a tax upon all property in Special Improvement District #334 to defray the costs of making the special improvements thorein. Seconded by Councilman Ruiz, Roll call vote. All voted aye. Councilman Nystul reported that the Finance Committee met today to review claims for November and moved that all claims found to be in order be paid. Seconded by Council- man Zauner. Carried. Councilman Nystul reported that the allegation of the KPA, at the last Council meeting that the City's General Fund has $700,000.00 cash balance, was answered with the follow- ing news release: "News Release November 17,- 1982 The Kalispell Police Association has made public a report by their consultant relative to the financial position of the City, Unfortunately, incorrect and inac� curate statements have been associated with this report. Also, the report itself contains some substantial errors of conclusion, Because of these material items, the City finds it necessary to respond. It has been and will continue to be the position of the City that labor nego- tiations do not belong in the media, The response here is not part of negotiations, but rather, a response to ;allegatidns affecting the public trust in its elected and appointed officials, The attorney for the Kalispell Police Association has referred to this report as an "audit". That is not true. The consultant has labeled it an examination of the financial position. For the attorney.to call it an audit grossly mis-states the authen- ticity the consultant is able to place on his work. An audit requires detailed exam- ination of the supporting data to the financial transactions. An audit is the work product of a Certified Public Accountant. It is illegal for anyone other than a CPA to attest to the accuracy of a financial statement. The consultant is not a CPA and does not attest to the accuracy of the statements. Therefore, the attorney should re- state the true level of assurance on this report as an examination and not an audit. The KPA consultant has reached his conclusion on the excess funds erroneously, due to several factors. It is correct that the financial data furnished the consultant for the year 1981-82 was not in final form. However, anyone experienced in municipal account- ing should be able to properly interpret it. The records of .the City are prepared in accordance with generally accepted accounting principles. These principles are the standard used by all units of local government throughout the United States. It is apparent from the consultant's assumption of what "money" is available at the beginning 433 of the year, that he is not familiar with the present reports issued by government units. Had the consultant properly read the financial data provided him, he would have found that the cash available in the General Fund at Tune 30, 1981 was actually a deficit of $58,763,35, His conclusion that the beginning fund balance of $361,261.75 is cash available for salaries or anything is entirely incorrect. The. fund balance is the net of assets and liabilities. It represents the possibility of revenues in the future. But it does not represent cash on hand and available for use, Had the consultant properly interpreted the printouts for the 19.81-82-'year, he should have reached the conclusion that the cash balance in the General Fund at .Tune 30, 1982 was only '$3,395.55. Tt was not the $768,294.72 he alleges. The allegations that the City violated budget laws is entirely false. State law prohibits the City from considering delinquent taxes. Prudent city management prepares a budget being conservative with revenue estimates, An examination of the annual tax levy document clearly indicated that the City did carry over the cash balances to each subsequent year. As to the issue of the Council being lay persons, the KPA consultant was not apparently aware of the Councilperson's backgrounds, The Chairman of the Council Finance Committee is a Certified Public Accountant, former Director of Finance for the City of Kalispell and a former Montana State Municipal Auditor, Obviously, not all of the Council are lay persons, as alleged, The allegations that the Finance Director has not completely informed the Council are also false. The Finance Director,has, in fact, provided the accurate information for the Council to prepare correct budgets. In conclusion, we would like to point out that the financial records of the City are a matter of public record, Anyone is welcome to examine them at any time, The members of the staff and -those knowledgeable Council members are willing to explain them to anyone at any time. It is unfortunate that the conclusions drawn by the out- -side consultants are not correct. These inaccuracies only serve to further confuse the general public." EMPLOYMENT Councilman 2auner reported that the Firefighters Association have._selected: a fact finder and they will be meeting this week, MISCELLANEOUS Councilman Vidal questioned the right of Mayor McDowell to make decisions concerning CAB without consulting the Council, Mayor McDowell replied that the meeting was open to all interested persons, but it concerned personnel and at the request of the indi- vidual, the Board went into closed executive session. Mayor McDowell assured Council- man Vidal that if any other questions or changes in the CAB comes up, with the excep- tion of personnel, he will discuss it with the Council, Minutes of the CAB meetings will be available in the conference room. Councilman Grainger moved to adjourn. Seconded by Councilman Palmer. Carried. Approved as corrected December 20, 1982. L • ._E._..cDo-weli;""Mayor ATTEST: Marjor' Giermann, City Clerk 434 THE REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD IN THE COUNCIL CHAMBERS AT CITY HALL AT 7:30 P. M. MONDAY, DECEMBER 20, 1952. -MAYOR McDOWELL PRESIDED. ALL COUNCILMEN WERE PRESENT. APPROVE MINUTES Councilman Nystul moved that the minutes.❑f the Regular Meeting of December b, 1982 be approved as corrected. One correction is that Lee Tower will address the next Parks Committee Meeting. The Employment committee report will now read "a factfinder has been selected". CITY OFFICIAL REPORTS Treasurer for October 198.2 Police Chief for November 1982 City Judge for November 1982 Building Official for November 1982 Councilman Nystul moved that City Official reports be accepted. Seconded by Councilman Ruiz. Carried. PRESENTATION Attorney Charles R. White, on behalf of Alice Hileman Davey, presented the City of Kalispell with two pictures which are hanging on the Council Chambers walls. On the east wall is a picture of Swift Current Lake, with the back side of the Garden Wall in the back- ground, and the picture on the south wall portrays St. Mary's Lake. Mr. Hileman took these pictures sometime in the early 1900's. At that time, MT.. Hileman was the official photo- grapher for Glacier National Park, appointed by the National Park Service. The picture tinting was done by a Mr. .lames Anderson, who was an accomplished photographer in his own right. Mr. Hileman operated a photography shop in the.building which used to be the Alton Pearce Drug. The Hileman family owned the building and sold it to Mr. Pearce. Mrs. Hileman Davey had looked for a long time for a place for these pictures and the new Council Chambers seemed to be the appropriate place, and.:she was happy that.the city officials accepted the pictures. Mr. White stated that to him: and to others who have hiked, picnicked and vaca- tioned in the Park, these are probably the most scenic areas in our nation. Mrs. Davey passed away in Kalispell this morning and this was her last gift. On behalf of the City of Kalispell, Mayor McDowell thanked Mr. White for the pictures. An appropriate.plaque with pertinent facts and the donor's name will be added to the pictures. Councilman O'Boyle added his thanks for a very fitting gift and a fine donation. Councilman Nystul asked that an appropriate letter be written to the family to thank them for the gift. PUBLIC HEARING - S.I.D. #334 RESOLUTION #3448 There being no opposition, Councilman Nystul moved finaladoption of Resolution #3448, a resolution levying and assessing a tax upon all property in the Special Improvement Dist- rict No.334 to defray the costs of making the special improvements authorized herein. Seconded by Councilman Vidal. Roll call vote. All voted aye. COMMITTEE REPORTS STREET & ALLEY Councilman O'Boyle reported that slides of a side arm loader for garbage was viewed last week: It is a one man operation, looks good, but the big question is money. The com- mittee will meet early next year to discuss the purchase. PARKS Councilman Vidal reported that the pool study by the Smith firm, -of Bellevue, WA, was done last week, along with a meeting of the Parks Committee, Mayor McDowell, Park Superin- tendent Drent and a member of his crew. They talked lots of ideas but nothing conclusive. The report will be submitted by the middle or end of January. COMMUNITY DEVELOPMENT Councilman Saverud reported that Building Official Alan Petersen has received his cer- tificate of ICBO confirmation. Councilman Saverud reported that Kalispell's redevelopment has brought special recognition. John Beale, from the Denver office of HUD, had high praise for community cooperation and effort on two redevelopment projects, funded in part with HUD grants. the Kalispell Down- town Redevelopment Plan and the Elrod School Neighborhood Revitalization Project. Both have been awarded national recognition.