07/15/02 City Council MinutesA REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:00
P.M. MONDAY, JULY 15, 2002, IN THE COUNCIL CHAMBERS AT CITY HALL IN
KALISPELL, MONTANA. MAYOR PAMELA B. KENNEDY PRESIDED. COUNCIL
MEMBERS JIM ATKINSON, DON COUNSELL, BOB HAFFERMAN, RANDY KENYON,
DUANE LARSON, FRED LEISTIKO, HANK OLSON AND JAYSON PETERS WERE
PRESENT.
Also present: City Manager Chris Kukulski, City Attorney Charles
Harball, City Clerk Theresa White, Finance Director Amy Robertson,
Fire Chief Randy Brodehl, Police Chief Frank Garner, Public Works
Director Jim Hansz and Parks and Recreation Director Mike Baker.
Mayor Kennedy called the meeting to order and led the Pledge of
Allegiance.
AGENDA APPROVAL
Leistiko 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 - Special Meeting June 24, 2002
Council Minutes - Regular Meeting July 01, 2002
Olson moved approval of the Consent Agenda. The motion was
seconded.
There was no discussion.
The motion carried unanimously upon vote.
STUDENT ISSUES
None
HEAR THE PUBLIC
John Harper, Parking Commission Director, thanked the Council for
its consideration of Agenda Item #12, the purchase of the former
Montana Motor Sports site from Hampstead Partners for parking. He
read a letter from Parking Commission Chairman Janet Clark stating
how important it is for the City to acquire additional parking
spaces.
George Van, 258 Buffalo Hill Drive, said he has seen very little
support in letters to the editor for a "mega mall". He complimented
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July 15, 2002
Page 1
Bend, Oregon, stating Bend grew
time Kalispell grew from 12,000
a "mega mall" to do it.
from 5,000 to 50,000 people in the
to 14,000 people and it didn't need
Constance Clark, 1144 2nd Avenue West, stated she feels Kalispell
has "taxation without representation" because citizens are required
to speak at the beginning of the meeting instead of at the time a
certain issue is being discussed. She said the City has a
"spending" Council and Manager and the Council should be looking at
the Governor for direction on how to cut a budget instead of
increasing it.
RESOLUTION 4715 - RESOLUTION ADOPTING FEES FOR WATER UTILITY
The increase in water rates is proposed at twenty two cents per
thousand gallons, ten cents for future replacements and twelve
cents for improvements. Resolution 4715 was tabled at the July 1st
meeting.
Leistiko moved to remove Resolution 4715 from the table, a
resolution to adopt the fees, schedules, rates, charges and
classifications imposed on the customers of the City of Kalispell
water utility. The motion was seconded.
The motion was carried unanimously upon vote.
Larson moved to amend Exhibit A by reducing all rates relating to
water service by ten cents per thousand gallons and striking the
following statement on Page 1: (Note: $.10 of the rate is
designated for replacement reserves). The motion was seconded.
Larson commented the Council has two options; it can implement this
large increase now, or do a rate study over the next year on
revenues from the new meters and then consider what to do the next
budget year. He said all of the budget items being considered
tonight are necessary, but there are a couple of places where
amendments and adjustments can be made and he feels an additional
ten cents for future replacements shouldn't be made this year.
Hafferman said he will vote against the amendment because it's only
a partial solution, adding he will also be voting against the
resolution because it includes $825,000 in credit card purchases,
or bonding. He said the current budget contains $982,032 for
payments on previous Council credit card purchases and before the
City does any more spending beyond routine maintenance and
emergencies, a rate study and audit is needed of the enterprise
funds and a priority list developed.
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Page 2
Leistiko commented he will support the amendment at this time
because the City really doesn't know how much revenue the new
meters will generate.
Peters said this is a tough decision but he believes in funding
depreciation and if the Council puts it off any longer, it will
just get harder down the road. He pointed out the rate increase
will fund needs within the City limits, not annexation costs.
Olson stated he also strongly supports the reserves and even though
he would love to support Larson's amendment, he doesn't think the
City will receive the monies it needs with just the new meters.
Atkinson said rather than take the "shot" later, it will be better
for the City to take the "shot" now and hopefully the change in
meters will help with the revenue in the future.
Counsell agreed that the City has put off placement reserves for
long enough and if it continues to do so, eventually the system
will be broken down and the City won't be able to replace it.
Larson reiterated he didn't say the City shouldn't fund the
reserves, it just shouldn't right now. He said the Council can't do
anything about the costs for the voter approved pool or the
electricity hike, but it can do something about this $36.00 a year
increase.
Hafferman stated that after listening to the comments, he will
support the amendment since it looks like the main motion will pass
eight to one and this will help a little.
The amendment carried upon roll call vote with Hafferman, Kenyon,
Larson, Leistiko and Mayor Kennedy voting in favor, and Counsell,
Olson, Peters and Atkinson voting against.
The main motion as amended carried upon roll call vote with
Atkinson, Counsell, Kenyon, Larson, Leistiko, Olson, Peters and
Mayor Kennedy voting in favor, and Hafferman voting against.
RESOLUTION 4716 - RESOLUTION ADOPTING FEES FOR SEWER UTILITY
The sewer rate increase is presented at ten cents per thousand
gallons. Resolution 4716 was tabled at the July 1st meeting.
Atkinson moved to remove Resolution 4716 from the table, a
resolution to adopt the fees, schedules, rates, charges and
classifications imposed on the customers of the City of Kalispell
sewer utility. The motion was seconded.
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Page 3
The motion carried unanimously upon vote.
Larson spoke against the resolution, stating sewer charges are
based on the amount of water used.
Hafferman restated before any rate increases be made the City
should complete the following: 1) rate study; 2) audit; 3) priority
list; and 4) planning. In addition, he said the City already has a
City Code adopted in 1982 that specifies how replacements should be
funded, but apparently that's not being followed.
Olson agreed with a statement made in a memo from Public Works
Director Hansz which says: "Those who are wearing out the system,
the current users, should fund system replacements". He commented
the increases have nothing to do with annexations and new
infrastructure, but are necessary to pay for what is wearing out in
the City right now.
The motion carried upon roll call vote with Atkinson, Counsell,
Kenyon, Leistiko, Olson, Peters and Mayor Kennedy voting in favor,
and Hafferman and Larson voting against.
Resolution 4723 - Budget Resolution
Larson moved Resolution 4723, a resolution setting the annual
appropriations for the City of Kalispell, Montana, as set forth in
the 2002-2003 budget adopted by the City Council. The motion was
seconded.
Hafferman said he will vote against the resolution for several
reasons. He said the budget, which is up from 28 million dollars
last year to 32.5 million dollars this year, includes approximately
3 million dollars to run utilities to Four Corners which should be
installed by developers, a significant increase in health insurance
and 2.3 million dollars for streetscape, just to mention a few.
Hafferman commented this has been a piecemeal and fragmented budget
process with several budget items being added at the last minute
and the Council should review the entire budget again prior to
approval.
Leistiko stated if you remove the 3.5 million dollars for the pool
which was approved by the voters, and the City's health insurance
funding that was found to be necessary, this budget is actually the
same as last year's and maybe even a little less.
Kukulski and Finance Director Robertson answered questions.
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Peters commented this is a lot of money but the budget process has
been A long one and he's 95 percent comfortable with the result.
The motion carried upon roll call vote with Atkinson, Counsell,
Kenyon, Larson, Leistiko, Olson, Peters and Mayor Kennedy voting in
favor, and Hafferman voting against.
Resolution 4724 - Budget Resolution
Leistiko moved Resolution 4724, a resolution making the annual tax
levies for the City of Kalispell, Montana, for the fiscal year
2002-2003. The motion was seconded.
There was no discussion.
The motion carried upon roll call vote with Atkinson, Counsell,
Kenyon, Larson, Leistiko, Olson, Peters and Mayor Kennedy voting in
favor, and Hafferman voting against.
Resolution 4725 - Budget Resolution
Atkinson moved Resolution 4725, a resolution levying an assessment
for the cost of special maintenance for the purpose of maintaining
the streets and avenues of the City of Kalispell for the fiscal
year 2002-2003. The motion was seconded.
There was no discussion.
The motion carried unanimously upon roll call vote with all members
present.
Resolution 4726 - Budget Resolution
Atkinson moved Resolution 4726, a resolution levying an assessment
for the cost of lighting the streets and alleys in the City Special
Lighting District for the fiscal year 2002-2003. The motion was
seconded.
There was no discussion.
The motion carried unanimously upon roll call vote with all members
present.
Resolution 4727 - Budget Resolution
Counsell moved Resolution 4727, a resolution levying an assessment
for the cost of lighting the streets in the City Downtown Lighting
District for the fiscal year 2002-2003. The motion was seconded.
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Page 5
There was discussion concerning lights in connection with the
streetscape project.
The motion carried unanimously upon roll call vote with all members
present.
Resolution 4728 - Budget Resolution
Peters moved Resolution 4728, a resolution levying assessments for
the cost of storm sewer maintenance for the fiscal year 2002-2003.
The motion was seconded.
There was no discussion.
The motion carried unanimously upon roll call vote with all members
present.
Resolution 4729 - Budget Resolution
Kenyon moved Resolution 4729, a resolution to levy the cost of
removal of garbage or other offensive matter from streets, alleys
or on any premises as a special tax against property from which
such matter was deposited, and the disposition thereof.
Hafferman said he will vote against this resolution because this is
an enterprise fund that needs a rate study and audit. In addition,
he said at one time City garbage rates were well below private
haulers but that isn't the case any longer. Hafferman said when the
City can no longer match private enterprise, maybe the service
should be privatized.
Larson said he will vote against the resolution because this is
another budget area where the Council has the option to hold the
line and a 5 dollar increase per year is too much at this time.
Kukulski explained a solid waste analysis about four years ago
identified weaknesses in the system, such as vehicle replacement
needs and manpower shortages, that can be corrected with this
increase. He argued the City's rates are competitive. Kukulski said
if you compare the City with local private haulers, the City is
still 25 to 30 percent lower for residential and about 50 percent
lower for commercial.
The motion carried upon roll call vote with Atkinson, Counsell,
Kenyon, Leistiko and Olson voting in favor, and Hafferman, Larson,
Peters and Mayor Kennedy voting against.
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Resolution 4730 - Budget Resolution
Counsell moved Resolution 4730, a resolution levying an assessment
for the cost of urban forestry maintenance in the City for the
fiscal year 2002-2003. The motion was seconded.
Kukulski and Parks Director Mike Baker answered questions.
Hafferman said he will be voting against this resolution because
it's another example of a new tax that's manipulated and increased.
Peters commented the Parks Department does a good job taking care
of the trees and is very responsive to requests.
Larson agreed, stating you can't put a value on trees and benefits
they provide.
The motion carried upon roll call vote with Atkinson, Counsell,
Kenyon, Larson, Leistiko, Olson, Peters and Mayor Kennedy voting in
favor, and Hafferman voting against.
Resolution 4731 - Budget Resolution
Larson moved Resolution 4731, a resolution setting the annual
appropriations for the Parking Commission as set forth in the 2002-
2003 budget adopted by the City Council. The motion was seconded.
There was no discussion.
The motion carried unanimously upon roll call vote with all members
present.
Resolution 4732 - Montana Motor Sports
Staff is requesting that Council authorize the purchase of the
former Montana Motor Sports site from Hampstead Partners for the
purpose of constructing a parking lot. The property would cost
$148, 762 and would be deducted from the loan the City made to
Hampstead Partners for the 2nd Avenue West Redevelopment Project.
Atkinson moved Resolution 4732, a resolution relating to the
acquisition of certain real property within the downtown urban
renewal area, described in Exhibit "A" from Hampstead Partners,
Inc. and identifying the interest to be acquired. The motion was
seconded.
Community Development Director Moyer explained once Hampstead's
construction of the senior housing project is complete, the City
can then demolish the structures and construct approximately 28
parking spaces.
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Mayor Kennedy questioned why the City is purchasing the lot now if
Hampstead Partners will be using the old Montana Motor Sports site
for storage until construction is done.
Moyer said Hampstead has indicated that if they have to continue to
make payments on the property, they will keep it for redevelopment
and not sell it to the City later.
Mayor Kennedy stated she's concerned with the City being liable if
it buys the building now and something happens.
Leistiko commented that if the City is buying the building now and
Hampstead is using it for storage, there should be some kind of
payment or agreement to release the City from any liability.
Kukulski suggested the resolution be tabled until the Council's
questions can be answered.
Mayor Kennedy asked if there would be any problem tabling the issue
for one week.
Moyer said there shouldn't he, but Hampstead would like the City to
close on the property before the end of July so they so not have to
make another quarterly loan payment.
Hafferman stated when the Council takes action he will be voting
against the resolution because it's taking another piece of private
property off the tax rolls and the other citizens have to pick up
the loss in revenue.
Leistiko moved to table Resolution 4732 to a Special Meeting on
July 22nd. The motion was seconded.
The motion was passed unanimously upon roll call vote with all
members present.
Resolution 4733 - City Clerk & Finance Office Fees
This resolution establishes a fee schedule for copies of public
records and certifications from the City Clerk and Finance offices.
Larson moved Resolution 4733, a resolution to establish a fee
schedule for copies of public records and certifications from the
offices of the City Clerk and Finance Director. The motion was
seconded.
Kukulski gave a staff report.
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City Clerk White answered questions.
The motion carried unanimously upon roll call vote will all members
present.
Resolution 4734 - Stop Sian Authorization
This resolution authorizes an all -way stop at the intersection of
Second Avenue West and First Street West.
Peters moved Resolution 4734, a resolution approving the placement
of a stop sign in the east and west bound lanes on First Street
West at its intersection with Second Avenue West and declaring an
effective dat. The motion was seconded.
Police Chief Garner gave a staff report and answered questions.
The motion carried unanimously upon roll call vote with all members
present.
Ordinance 1427 - Initial Zoning Request - Big Sky Properties - 2nd
Reading
Osburn is requesting a zoning designation of B-2, General Business,
upon annexation of the above mentioned property. Ordinance 1427 was
passed on first reading July 1st.
Leistiko moved second reading of Ordinance 1427, 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 Assessor's Tracts 2AAE and 2AAD located in
Section 20, Township 28 North, Range 21 West, P.M.M., Flathead
County, Montana (previously zoned County B-2, General Business) to
City B-2 (General Business), 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 with all members
present.
Ordinance 1428 - Zone Change Request - Anthony Lupo - 2nd Reading
Lupo has requested a zone change from RA-1, Low Density Residential
Apartment, to B-2, General Business, on approximately 1.5 acres of
property located on the east side of Third Avenue East between 14th
Street East and 18th Street East. Ordinance 1428 was passed on
first reading July 1st.
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Page 9
Larson moved second reading of Ordinance 1428, 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 Lots 1 through 7, Block 1, Ryker Addition
located in Section 17, Township 28 North, Range 21 West, P.M.M.,
Flathead County, Montana (previously zoned City RA-1, Low Density
Residential) to City B-2 (General Business), 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 with all members
present.
Ordinance 1430 - Municipal Infractions - 1st Reading
This ordinance authorizes the classification of certain City
offenses as municipal infractions.
Atkinson moved first reading of Ordinance 1430, an ordinance
authorizing the classification of certain city offenses as
municipal infractions, prescribing enforcement procedures and
penalties, allowing for appeals, authorizing the City Attorney to
codify §§ 1-11, 1-12, 1-13, 1-14, 1-15, 1-16, 1-17, 1-18, and
establishing an effective date. The motion was seconded.
City Attorney Harball gave a staff report and answered Council
questions, stating this ordinance is the first step in allowing the
City to prosecute parking offenses civilly instead of criminally.
The motion carried unanimously upon roll call vote with all members
present.
Ordinance 1431 - Parking Offenses as Municipal Infractions - 1st
Reading
This ordinance decriminalizes parking offenses and allows them to
be processed as civil municipal infractions.
Atkinson moved first reading of Ordinance 1431, an ordinance
amending Ord. 672 § 1; Amd. Ord. 722, Ord. 545 § 1; Amd. Ord. 765
§ 1; Ord. 782 § 1; Ord. 883 §§ 1, 2; Ord. 914 §§ 1, 2; Ord. 997 §§
1, 6; Ord. 1010 § 1; Ord. 1030 § 1; Ord. 1040 § 1; Ord. 1043a § 1;
Ord. 1045 § 1; Ord. 1062 § 1; Ord. 1068 § 1; Ord. 1073 § 1, R.O.
1947 § 314, R.O. 1947 § 324, 627 § 1, Ord. 1099 § 1, R.O. 1947 §§
393, 394; Amd. Ord. 714 § 1; Ord. 1009 § 1 of the Kalispell City
Code by reclassifying certain parking offenses as municipal
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July 15, 2002
Page 10
infractions, prescribing procedures therefor, establishing a civil
penalty for proven violations, and establishing an effective date
The motion was seconded.
There was no discussion.
The motion carried unanimously upon roll call vote with all members
present.
Ordinance 1432 - Waiver of Municipal Court Fees - let Reading
This ordinance exempts the City of Kalispell and the Parking
Commission from payment of Municipal Court fees when filing civil
actions.
Kenyon moved first reading of Ordinance 1432, an ordinance amending
ordinance No. 1304, (9 2-69(A), Kalispell City Code) by exempting
the city of Kalispell and the Kalispell Parking Commission from
payment of Municipal Court fees, authorizing the City Attorney to
recodify 9 2-69 and establishing an effective date. The motion was
seconded.
There was no discussion.
The motion carried unanimously upon roll call vote with all members
present.
MAYOR/COUNCIL/CITY MANAGER'S REPORTS
Mayor Kennedy announced there will be a Special Meeting on Monday,
July 22 starting at 7:00 p.m.
Hafferman said at the last meeting, he voted in favor of an
amendment to a master plan amendment request adding buffer zones in
West View Estates. He asked if that was the proper time to require
buffer zones and whether the Council, when it amends a
recommendation of the Planning Board, needs to.hold an additional
public hearing. Hafferman asked the staff to research the issue.
Leistiko asked that the City Council discuss the City Airport and
who's responsible for various issues at a future work session.
Peters asked that planning issues also be placed on a future work
session.
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Page 11
Atkinson complimented Council members and staff on its work with
the budget.
Kukulski informed the Council that interviews were completed today
with the three consulting firms interested in conducting the City's
rate study. He outlined several issues the Council should be aware
of with the upcoming special legislative session, and thanked Bill
Spence with the Daily Inter Lake for his story Sunday concerning
taxable values.
ADJOURN
The meeting was adjourned at 9:47 p.m.
Pamela B7KeLnedy
Mayor
ATTEST: (�
Theresa White
City Clerk
Approved August 5, 2002
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