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08/01/83 City Council Minutes96. THE REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:30 P. M. MONDAY,, AUGUST 1, 1983 IN THE COUNCIL CHAMBERS AT CITY HALL. MAYOR MCDOWELL PRESIDID. COUNCILMEN PALMER AND VIRAL ABSENT. ALL OTHER COUNCILMEN WERE PRESENT. APPROVE MINUTES Councilman Nystul moved to approve the minutes of the regular meeting of July 18, 1983 as presented. Seconded by Councilman Zauner. Motion carried. PUBLIC HEARING -- URBAN DEVELOPMENI'.ACTION GRANT (UDAG) Councilman Saveru.d gave a brief history of UDAG. It is a federal grant program passed by Congress in. 1981 to stimulate private business in economically distressed areas. On June 16, 1982 the City received word that they were possibly eligible for a UDAG. Additional information was supplied by the Community Develop- ment Department. On July 9, 1982 Mr. Matuschek advised the Mayor by letter that the City was in fact eligible to submit a UDAG application. We did meet the minimum requirements of economic distress required by the application. On July 20, 1982 Mr. Dan Black of The Daily Inter Lake ran a story in the paper that detailed the program fairly well. Then on March 21, 1983 we again received a letter from Mr. Matuschek which was read into the minutes and it stated that the City was not eligible because of the economic improvement, and there were only two dates left to submit an application - May 1983 and August 1983. At our last council meeting it was announced that an informational public hearing would be held on this date. At this point we are aware of only one specific party that may wish to submit an application, although any number can apply. The time frame is very short as they must be submitted by the 'end of August._ - Councilman Saverud introduced Mr. Larry Gallagher,.with a Helena real estate"develop- ment company, and who has also been under contract with the City of Kalispell as an advisor in our Community Development program. Mr. Gallagher is.presently under -, contract to the Glacier Park Company to'aesist in the financial development for'the proposed downtown mall in the City of Kalispell. Tonight he is here to explain or answer questions about UDAG. Mr. Gallagher stated that the bill was passed by,congress with the intention,,gf _ providing federal grants to private enterprise in"certain designated economically distressed areas. Applications are submitted quarterly with a thorough description of the project. If not approved in that quarter they can be held over to the next. Mr. Gallagher has been involved in obtaining two of these -grants for the City of Missoula and feels it is a real opportunity for the City of Kalispell. In the early years of the grant, Kalispell was not eligible and Missoula was. 'Then the situation reversed itself and has now reversed itself again. One important aspect of the grant is the "but far" stipulation. It must lue proved that the project will not proceed, but for the assistance of the grant. It is absolutely necessary that all avenues o� financing have been explored and not found and the grant is necessary. The activities covered by UDAG are all binds of things necessary to stimulate private investment,..including infrastructure; curbs, gutters, sidewalks, sewer, water and fire protection', streets, acquire land, -build pedestrian.malls, walkways, flood drainage facilities, and can even provide foundations for projects so they.can move forward. You cannot.funA public works. such as city halls,.civic centers, '&Masiums, etc. It is to provide for private enterprise and not public improvements. Cities must pledge whatever financial assistance is available to further the project. Applications are submitted quarterly.- August 31st.is the deadline - the projects are reviewed on a competitive basis and the City will be notified by November lst if they are successful. Consideration will be given to the amount of private funding. They will be looking at the number of new jobs created, especially for low and middle income and minority persons; whether a low tax base can be turned into a high tax base; elimination of slums and blighted areas and how mucheconomic development will be generated not only by this project, but as the money is repaid to the City and used on .other projects, how it -will affect the long range economics. Grants so far have only been used for commercial and.industrial, not residential in Montana. Councilman O'Boyle asked about the life of the project. Mr. Gallagher replied that the life depends on if .it can be completed in 21 years; care it be repaid; len9t of time of the first mortgage. Usually the project life is for the length of the -'first mortgage which could be anywhere from 1 to 20 years. The City is a party to the grant - Community Development Department will administer - 97. HUD will allow 3% for administration - interest rate is negotiable - not less than 3% but usually at the going prime interest rate - in some cases M will allow deferment of interest payment until later - money pad'back to the City will go into the Block'Grant Fund and -will be available for other projects eligible under the Block Grant Program. Mr. Ed Gallagher, Director of Community Development Department, advised that the public was notified of this informational hearing through a block ad asking for citizen participation. More information can be obtained by contacting the Community Development office. Larry Gallagher stated that a project can use industrial revenue bonds along with the grant on a project in excess of $10,000.00. Ed Gallagher stated that his office would monitor the project according to the Davis-Bacon.'Labor Act. The project would have to be reviewed by the City Building Department and the Architectural Review Committee and then -be presented to the City Council for final approval. The project does not have to be in the Redevelopment Area, but would be more difficult to show how the project addresses community goals if outside. Larry Gallagher stated that any developers submitting a proposal should have it completely written: up for presentation to the'Council at the August-15th meeting. Then the Council has until August 31st to review the projects before submitting them to the Regional HUD office. After they are submitted the HUD office will work on our behalf right up to the time the loan,is executed irl- Noveimber. In fact, Mr. Gallagher stated he has seen cities grant easier terms than negotiated by HUD. They play pretty hard ball in your behalf. . You -can state specifically how returned money on the grant will be used, or you can allow the Community Development Department such as one we have with such a good record to decide how it will be used. Some cities without a Community Development office have been very specific in insisting that the returned funds be used for the same purposes we have already accomplished. The money can, be used to purchase a blighted area, build and raise the tax base and benefit the community directly. There must be an.environmental impact review and if it indicates an impact it must be identified as such and taken care of - if it takes dollars this'is allowable. If a plant is built and necessitates streets or utilities, then these dollars can be used as long as it shows a direct benefit to the community. The second public hearing on UDAG will be August 15, 1983. ADDRESSING THE COUNCIL Mayor McDowell made three calls for anyone wishing to address the Council. No one responded. COMMITTEE REPORTS SEWER & WATER RESOLUTION #3474 Councilman Ruiz reported that the Sewer and Water. and -Finance Committees, along with P. E. Paul Stokes, reviewed the bids on the Sludge=Management Facilities, and on their recommendation moved to adopt Resolution #3474 a resolution declaring -an intention to award a contract unto Morgen & Oswood Construction Company, Inc. of Great Falls, MT; fb r the construction of the City'of Kalispell's Wastewater -Treat- ment Plant, Morgen 8c'4swood Construction Company, Inc. being the apparent lowest -responsible and responsive bidder therefor, in the amount of Two Killion One Hundred a - ad One Thousand Seven' Hundred and Fifty Dollars ($2,10I;750.00), which award of contract is subject to the approval of the Environmental Protection .Agency. Seconded by Councilman Nystul. Roll call vote. All voted aye. RESOLUTION #3475 Councilman Ruiz reported that the Sewer and Water and Finance Committees, along with P. E. Paul Stokes, reviewed the bids on the Sludge Management Facilities, and on their recommendation moved to adopt Resolution #3475 a resolution of intention to award a contract unto Tri-Co Equipment Inc. of Kalispell, Montana, to supply to.the City of Kalispell a "Sludge Hauling Vehicle consisting of a Tractor'Truck and,a-,.Tanker Trailer; said Tri-Co Equipment, Inc. being the apparent lowest and responsible and responsive bidder therefor in,the'amount of Eighty Three Thousand'Eight Hundred Seventy Four Dollars ($83,874-00), which award of contract is subject -to the approval of the Envir- onmental Protection Agnegcy. Seconded by Councilman Nystul. Roll call vote. All voted aye. FINANCE RESOLUTION #3476 Councilman Nystul moved to adopt Resolution #3476-a resolution providing for public sale of $875,000 Sewerage System Revenue Bonds of the City of Kalispell. Seconded by Councilman Grainger. This amount will cover the City's share of the EPA Sludge Management -Facilities Grant, establish A fully funded .sewer bond program, pay off the Big --A and buy:a sewer cleaning machine. Bond bids will be opened August 15th. Advertisement for bids will be placed in The Daily Inter Lake and in The Bond Buyer, a newspaper published in New York City, N.Y. Lee Gorton, 211 9th Ave.. West asked.why it was necessary for the City to:sell bonds when they are receiving such a lame grant. Councilman Nystul explained that the grant will be in the amount of $2,600,000 but the City must pay 20 to 25% of the ,grant. Councilman Nystul reported that -he has checked wa-the.-. axable valuation.for:ourtom.- increment which was $23;000 last year -and estimated to be $1,200,000 this year and the reason for the big -difference is due to centrally assessed utilities being included in the tax increment district this year. EMPLOYMENT Councilman Zauner-reported that labor negotations-will continue after this meeting. ANNEXATION No report STREET & ALLEY Councilman O'Boyle had no report. PARKS No report COMMUNITY DEVELOPMENT Councilman Savera.d reported that the request for funds from the "Jobs Bill' has been denied. SAFETY C. Grainger had no report. MISCELLANEOUS Councilman Ruiz reported that the Firefighters Association have accepted their wage increase and moved that the contract be ratified by the City Council. Seconded by Councilman Nystul. Motion carried. Councilman Ruiz. reported: that an agreement has been --reached between. the City, of - Kalispell'and AFSCME on gages for the coming year -and moved that the contract be --ratified. Secon.deii: by: ,Councilman .Saverud. Motion carried. Councilman-Saverud moved that Counei.lman,OTBoyle-:be.-given permission to leave -the -City for more'than 10 days-. Seconded by Councilman Grainger. Motion carried., Councilman Grainger moved to adjourn. Seconded. by Councilman Saverud. Carried. Approved as presented August 15, 1983 .ATTEST; Mar rie Giermann, City Clerk