06/17/02 City Council MinutesA REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:00
P.M. MONDAY, JUNE 17, 2002, IN THE COUNCIL CHAMBERS AT CITY HALL IN
KALISPELL, MONTANA. COUNCIL CHAIRMAN RANDY KENYON PRESIDED. COUNCIL
MEMBERS DON COUNSELL, BOB HAFFERMAN, FRED LEISTIKO, HANK OLSON AND
JAYSON PETERS WERE PRESENT. MAYOR PAMELA B. KENNEDY AND COUNCIL
MEMBERS JIM ATKINSON AND DUANE LARSON WERE ABSENT.
Also present: City Manager Chris Kukulski, City Attorney Charles
Harball, City Clerk Theresa White, Community Development Director
Susan Moyer, Fire Chief Randy Brodehl, Police Chief Frank Garner,
Public Works Director Jim Hansz, Accountant Rick Wills and Tri-City
Senior Planner Narda Wilson.
Chairman Kenyon called the meeting to order and led the Pledge of
Allegiance.
AGENDA APPROVAL
Olson moved approval of the Agenda. The motion was seconded.
There was no discussion.
The motion carried unanimously upon vote.
CONSENT AGENDA APPROVAL
1. Council Minutes - Regular Meeting June 3, 2002
2. Award Bid - Streetscape 2002
Three bids were received for the Streetscape 2002 Construction
project. Staff is recommending the bid be awarded to Montana
Lines.
3. Award Bid - Streetscape 2002 - 2nd Avenue West Redevelopment
Project
Three bids were received for the Second Avenue West Project.
Staff is recommending the bid be awarded to Sandon
Construction.
4. Award Bid - Streetscape 2002 - Furniture
One bid was received for benches, trash receptacles and
planters in connection with the Streetscape 2002 project.
Staff is recommending the bid be awarded to Dakota Fence
Company of Williston, North Dakota.
5. Contract Amendment - Thomas, Dean & Hoskins
An amendment to the current Streetscape 2002 engineering
services contract with TD&H is necessary for continued
construction engineering and oversight.
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June 17, 2002
Page 1
6. Firefighter Confirmation
Todd Hawes has successfully completed his six month
probationary period with the Kalispell Fire Department and
Council confirmation is required.
Leistiko moved approval of the Consent Agenda. The motion was
seconded.
Hafferman commented the streetscape project was approved by a
previous Council and awarding the bids is just a formality,
however, he fears Streetscape will have an adverse effect on the
downtown. He said he feels the project will worsen the traffic on
Main Street and place vehicles on residential streets.
Peters moved to amend the motion by moving Consent Agenda Item #3
(Award Bid - Streetscape 2002 - 2nd Avenue West Redevelopment
Project) to Agenda Item E/13. The motion was seconded.
There was no further discussion.
The amendment carried upon vote with Hafferman, Leistiko, Olson,
Peters and Chairman Kenyon voting in favor, and Counsell voting
against.
The main motion as amended carried unanimously upon vote.
STUDENT ISSUES
None
HEAR THE PUBLIC
Liz Harris, Jobs Now and Flathead
gave members an update on Stream,
local economy and how Stream
recognition.
Economic Development Authority,
how the company has impacted the
has given Kalispell national
ORDINANCE 1423 - ZONING TEXT AMENDMENT - LES SCHWAS TIRE CENTERS -
PARKING SETBACKS - 2ND READING
This ordinance amends off street parking design to allow parking in
the front and side setbacks and reduces the rear setback from
twenty feet to ten feet in the I-1, Light Industrial, and B-5,
Industrial/Commercial, zoning districts. Ordinance 1423 passed on
first reading June 3rd.
Leistiko moved second reading of Ordinance 1423, an ordinance
amending Section 27.26.030 (e) (2) of the Kalispell Zoning Ordinance,
(Ordinance No. 1175), by amending off street parking design to
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June 17, 2002
Page 2
allow parking in the front and side setbacks and reducing the rear
setback from 20 feet to 10 feet in the I-1, Light Industrial
District, and B-5, Industrial/Commercial District, and declaring an
effective date. The motion was seconded.
There was no discussion.
The motion carried unanimously upon roll call vote.
ORDINANCE 1424 - INITIAL ZONING REQUEST - MELVIN POWELL - 2ND
READING
This is a request for a zoning designation of R-4, Two Family
Residential, for approximately one half acre located on the west
side of 7th Avenue West, north of Sunnyside Drive and south of llth
Street West. Ordinance 1424 passed on first reading June 3rd.
Peters moved second reading of Ordinance 1424, an ordinance to
amend Section 27.02.010, Official Zoning Map, City of Kalispell
Zoning Ordinance, (Ordinance No. 1175), by zoning certain real
property described as Lot 1 of Western Acres located in Section 18,
Township 28 North, Range 21 West, P.M.M., Flathead County, Montana
(previously zoned County R-5, Two Family Residential) to City R-4
(Two Family Residential), in accordance with the City -County Master
Plan, and to provide an effective date. The motion was seconded.
There was no discussion.
The motion carried unanimously upon roll call vote.
ORDINANCE 1425 COMMUNITY DEVELOPMENT REVOLVING LOAN AND
REDEVELOPMENT PROGRAM - 1ST READING
This ordinance establishes how program income generated through the
Revolving Loan Program and Redevelopment Fund will be utilized on
an equitable and effective basis.
Leistiko moved first reading of Ordinance 1425, an ordinance
relating to the City of Kalispell, Montana Community Development
Revolving Loan and Redevelopment Program; establishing program
requirements; creating community development revolving loan program
and redevelopment account and specifying revenues to be deposited
therein. The motion was seconded.
Moyer gave a staff report explaining it's necessary to establish
how program income generated from the tax increment districts will
be utilized on an equitable and effective basis. She said bond
counselor Mae Nana Ellingson has been working with staff to develop
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June 17, 2002
Page 3
Ordinance 1425, which establishes program requirements, creates a
program income account and specifies revenues to be deposited in
the account.
Hafferman said he will be voting against the ordinance. He said as
written, he feels the ordinance is "creating a general slush fund
to use monies collected from other tax increment districts to
finance projects in the soon -to -be defunct downtown district".
Hafferman said it's always been his understanding the monies
collected in certain districts stays in those districts.
Kukulski clarified that even though the ordinance covers all of the
districts, it doesn't allow the City to take program income from
one district to be used in another.
Hafferman said if that's the case, he thinks it needs to be made
clear in the ordinance and then he wouldn't have any problem with
it.
The motion carried upon roll call vote with Counsell, Leistiko,
Olson, Peters and Chairman Kenyon voting in favor, and Hafferman
voting against.
ORDINANCE 1426 - GLACIER VILLAGE GREENS GOLF CART PATH - 1ST
READING
Counsell moved first reading of Ordinance 1426, an ordinance
creating a dedicated golf cart path on those certain streets in
Glacier Village Greens and declaring an effective date. The motion
was seconded.
Chairman Kenyon commented that when the City was discussing the
annexation of Glacier Village Greens, the residents were concerned
with how to get their golf carts to the course and a dedicated path
was determined to be the solution.
There was no discussion.
The motion carried unanimously upon roll call vote.
RESOLUTION 4710 - RESOLUTION OF INTENTION TO ADOPT, REVISE OR
REJECT AN AMENDMENT TO THE KALISPELL CITY -COUNTY MASTER PLAN AND
CALL FOR PUBLIC HEARING - WEST VIEW SUBDIVISION
Mark Owens, dba LBO Limited Partnership, has requested a master
plan amendment on approximately 58 acres for property located at
the northeast corner of Stillwater Road and West Reserve Drive for
the development of a 119-lot residential subdivision and future
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June 17, 2002
Page 4
development of high -density residential and small scale commercial.
This resolution sets a public hearing on the amendment request for
Monday, July 1st, starting at 7:00 p.m.
Peters moved Resolution 4710, a resolution to adopt, revise or
reject a recommended amendment to the Kalispell City -County Master
Plan. The motion was seconded.
Hafferman said he will vote for the resolution, however, when the
annexation issue comes before the Council he expects to see an
extension of services plan. He also wants to see an analysis of
future emergency services costs along with maintenance and
replacement of infrastructure costs versus the revenue generated
from the development.
The motion carried unanimously upon roll call vote.
RESOLUTION 4711 - PRELIMINARY PLAT APPROVAL - GLACIER MEADOWS
SUBDIVISION - 2ND READING
This is a request for preliminary plat approval of an 82-lot
residential subdivision located at the northwest corner of Granrud
Lane and Whitefish Stage Road. Whitefish Stage Condominiums were
previously approved for this site.
Leistiko announced he will abstain from voting.
Peters moved Resolution 4711, a resolution conditionally approving
the preliminary plat of Glacier Meadows Subdivision, more
particularly described as Assessor's Tract 2 in the Northeast
Quarter of Section 31, Township 29 North, Range 21 West, P.M.M.,
Flathead County, Montana. The motion was seconded.
Olson said the developers are not required to upgrade Granrud Lane
until two years after the filing of the final plat. He said he'd
like to be reassured that Granrud Lane will eventually be upgraded
to City standards.
Wilson stated at the time the final plat is filed, the developer
will bond for the remaining improvements at 125 percent of the
engineer's estimate. She said then if for some reason the developer
doesn't complete the work, the City would take the bond to complete
the improvements.
The motion carried upon roll call vote with Counsell, Hafferman,
Olson, Peters and Chairman Kenyon voting in favor, and Leistiko
abstaining.
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June 17, 2002
Page 5
RESOLUTION 4712 - PRELIMINARY PLAT APPROVAL - VILLAGE HEIGHTS
SUBDIVISION
This is a request for preliminary plat approval of an 8-lot
townhouse subdivision on approximately two and a half acres of
property located at the northeast corner of Whitefish Stage Road
and West Evergreen Drive.
Leistiko moved Resolution 4712, a resolution conditionally
approving the preliminary plat of Village Heights Subdivision, more
particularly described as Tract 5 of Section 32, Township 29 North,
Range 21 West, P.M.M., Flathead County, Montana. The motion was
seconded.
There was no discussion.
The motion carried unanimously upon roll call vote.
FINAL PLAT APPROVAL - BUFFALO COMMONS LOTS 1 AND 2 OF PHASE 3
This is a request for final plat approval of a two -lot subdivision
in the Buffalo Commons development on the southern corner of
Highway 93 and Commons Loop.
Leistiko moved approval of the final plat for Lots 1 and 2, Block
4, Phase 3 of Buffalo Commons. The motion was seconded.
There was no discussion.
The motion carried unanimously upon vote.
FINAL PLAT APPROVAL - GLACIER VILLAGE GREENS PHASE XI
This is a request for final plat approval of Glacier Village Greens
Phase XI which creates 16 townhouse lots on approximately 2.5 acres
at the north end of East Nicklaus Avenue.
Leistiko moved Council accept the subdivision improvement agreement
and approve the final plat for Glacier Village Greens Phase XI.
The motion was seconded.
There was no discussion.
The motion carried unanimously upon vote.
RESOLUTION 4713 - CONSTRUCTION AGREEMENT - US HIGHWAY 93 PAVING
PROJECT NORTH OF WASHINGTON STREET
This agreement between the City and the Montana Department of
Transportation involves the reconstruction of Sunset Boulevard (US
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June 17, 2002
Page 6
93) beginning at the intersection of Washington Street and
extending north to the intersection of Grandview Drive.
Leistiko moved Resolution 4713, a resolution approving the
construction agreement between the Montana Department of
Transportation and the City of Kalispell for Federal Aid Project
No. NH 5-3(82)113. The motion was seconded.
Hansz answered questions about the project.
The motion carried unanimously upon roll call vote.
RESOLUTION 4714 - AMBULANCE FUND LOAN
This resolution provides a $55,000 loan for ambulance operations to
be repaid when outstanding receivables are paid by Medicare.
Counsell moved Resolution 4714, a resolution authorizing the
Finance Director to loan funds from the General Fund to the
Ambulance Fund in the amount of $55,000 for short term financing
until Medicare payments are received. The motion was seconded.
Kukulski gave a report and Brodehl answered questions.
The motion carried unanimously upon roll call vote.
CITY OF KALISPELL'S HEALTH INSURANCE PLAN
Staff is requesting the Council authorize the City Manager to sign
an agreement with Blue Cross/Blue Shield for an 80/20 benefit plan.
Leistiko moved Council authorize the City Manager to enter into a
contract with Blue Cross/Blue Shield for an 80/20 benefit system
with a $300/person and $600/family deductible and $1,000/individual
and $2,000/family co -pay. The motion was seconded.
Kukulski explained that due to the rising costs of health insurance
and increased health insurance claims over the past year, the City
has been forced to re-evaluate the self -insured program Kalispell
has had for the last several years. He said the proposed coverage
is similar to the existing plan, but includes higher deductibles
and increased out-of-pocket costs to employees and retirees. In
addition, Kukulski stated increased costs in insurance premiums
will necessitate a nine mill levy increase.
Olson commented the City tried to do everything it could to
minimize the impact on retirees and this plan is the best one
possible at this time. He added, however, that he hopes when the
City "gets healthy" again, the policy can be reviewed.
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June 17, 2002
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Peters said the previous insurance plan has been a great benefit
for eight or nine years and now the City has to make up for it. He
stated even if the City does get healthy, the reality is that it's
always going to be a shared plan.
Hafferman said this problem will not go away and he's afraid if the
City doesn't keep on top of the insurance situation, the employees
and taxpayers could lose again.
The motion carried unanimously upon vote.
AWARD BID - 2ND AVENUE WEST REDEVELOPMENT PROJECT
Bids for the Second Avenue West Redevelopment and Senior Housing
Project were received from LHC Incorporated, Sandon Construction
and Settle Services. The low bid from Sandon Construction is almost
$170,000 more than the original cost estimate of $96,000.
Chairman Kenyon read the a memo from Susan Moyer. (Memo is attached
and by this reference is made a part of the official record)
Leistiko moved the Council award the Schedule One Contract Bid of
$265,791.27 to Sandon Construction. The motion was seconded.
Peters said he still doesn't understand how the City is going to
pay the extra cost.
Kukulski said staff estimates that after everything that's
committed in the TIF district, there's going to be roughly $50,000
left to put toward this project. He says the balance will be paid
from program income through other funds as stated in Moyer's memo.
The motion carried unanimously upon vote.
MAYOR/COUNCIL/CITY MANAGER'S REPORTS
Chairman Kenyon asked everyone to attend the public hearing
scheduled for Monday, June 24th concerning the Wolford Development
Master Plan Amendment request.
Hafferman read a news release he prepared concerning public hearing
protocol and information and asked that it be sent to the media.
(Statement is attached and by this reference is made a part of the
official record)
Olson commented the City was hoping to award all of the bids for
Streetscape locally, however, that wasn't possible.
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June 17, 2002
Page 8
Kukulski stated staff with be conducting a Streetscape neighborhood
meeting June 26 starting at 7:00 p.m. at Hedges School for those
residents living on 3rd and 4th Avenues East.
ADJOURN
The meeting was adjourned at 8:46 p.m.
ATTEST:
Theresa White
City Clerk
Approved July 1, 2002
(222,1_4_
Pamela B. ennedy
Mayor
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June 17, 2002
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