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04/21/86 City Council MinutesTHE REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:30 P.M. MONDAY, APRIL 21, 1986 IN THE COUNCIL CHAMBERS AT CITY HALL. MAYOR KENNEDY PRESIDED. ALL COUNCILMEMBERS WERE PRESENT. Mayor Kennedy called the meeting to order and led the Pledge of Allegiance. APPROVE MINUTES Councilman Nystul requested three corrections to the minutes of the April 7, 1986 regular meeting and then moved the minutes be approved as corrected. Councilman Schindler seconded and the motion carried. BID OPENING: FIFTH AVENUE WEST Mayor Kennedy instructed the Clerk to open and summarize the bids and report back when he is ready. PUBLIC HEARINGS: SEWER RATE: Opponents: Ken Yachechak, from Ward 1, and owner of The Montana Building, stated he "found it appalling in a period where we have had three months of deflationary pressure, where we are having a severe economic problem in the central business district, we have not been able to raise our rental rates as we would like." "12% in this period of time is just outrageous. I don't mind increases but up to 12% is just too much. I speak for the KM Building also. I would suggest, if you are to raise rates, do it gradually on a year by year basis. I am also opposed to the water rate increase for the same reasons." Dan Johns, representing The Outlaw Inn, spoke against the rate increase. He reported the rate increases would have a substantial effect on them as their water and sewer bills run in the vicinity of 5,000 to 7,000 dollars a month. He suggested The Outlaw Inn should have a rate adjustment for their large volume. Mayor Kennedy read a letter Mr. Johns' firm, opposing the proposed sewer rate increase on behalf of The Outlaw Inn. Mike Hughes spoke on behalf of the Flathead Homebuilders Association, stating their group opposed the proposed increase in rates as well as the increased hookup charge. Con Lundgren, representing the Four Seasons Motor Inn, opposed the rate increase as being too high. He also requested the sprinkling rates he lost at the last rate increase be restored. Proponents: Tom Flynn, the City's rate consultant answered some of the comments made by those opposed. Volume discounts on sewer rates are not allowed by the EPA. He also compared the city's rates against other cities in the area and showed Kalispell has the lowest minimum. WATER RATE: Opponents: Ken Yachechak, Dan Johns, and Mike Hu3hce stated they were also opposed to the water rate increase. Proponents: Tom Flynn commented on the fact that only two people appeared at the Electricity rate hearing last week and compared the City's rate history over the past four years to electricity. The city's rate increases were much less. BID SUMMARY: COMPANY BOND PRICE 1. Pack and Company 10 % $ 1,212,580.93 2. Barnard Construction Co., Inc. 10 % 1,313,209.60 3. Holm-Sutherlund Co., Inc. 10 % 1,539,974.21 4. L. S. Jensen and Sons, Inc. 10 % 1,2900607.24 5. Olander Constructing 10 % 1,388,283.95 Mike Fraser reported the engineer's estimate was $1,440,457.50. 400 Councilman Nystul moved the bids be referred to the Public Works and Sewer and Water Committees with power to act. Councilman Schindler seconded and the motion carried. CITY OFFICIAL REPORTS Treasurer's Report (March) Police Chief " City Judge " Building Official " Fire Department First Quarter Councilman Nystul moved they be approved as presented. and the motion carried. ADDRESSING THE COUNCIL No one appeared to address the Council. Councilman Schindler seconded COMMITTEE REPORTS: PUBLIC SAFETY Councilman Schindler reported the South Kalispell Fire Department has asked to use the old dumpsite property at Willow Glen, April 28, 1986, at 6:30 P.M. City Attorney Neier has suggested they should secure council permission and provide evidence of liability insurance. They said they have $1,000,000 of liability insurance. They plan to simulate a large fire and test their water shuttle procedures. Councilman Schindler moved approval, Councilman Grainger seconded and the motion carried. ANNEXATION, ZONING & BUILDING REGULATION Councilwoman Hafferman requested a committee meeting for Thursday, April 21, 1986, at 4:00 pm. COMMUNITY DEVELOPMENT & PUBLIC BUILDINGS Hardee's Councilman Saverud reported Hardee's Corporation will be building a new building in the redevelopment area. They will be building at First Avenue West North and Idaho. Hockaday Lease Councilman Saverud reported the Hockaday Lease has been renewed for a five year period for essentially the same terms as before. They provide liability and contents insurance and are responsible for repair and maintenance. The city will provide up to $2,000 for utilities each year. Old Fireball Remodeling Councilman Saverud directed the council's attention to the latest drawing of the proposed Old Fireball remodeling and reported the committees has recommended the mayor be authorized to start the project as soon as possible with the following parameters: that the offices of the Building Official, Public Works Director, and Surveyor must be workable and sized comparably to other city offices, both exits not be through any one office, and the conference room be designed as large as possible. Saverud moved the Mayor be authorized to call for bids on the remodeling of the Old Fireball as soon as possible. Councilman Nystul seconded and the motion carried. Main Street Alignment Councilman Saverud moved this item, which was tabled, be brought back up for discussion. Councilman Schindler seconded and the motion carried. Councilman Saverud called upon PWD Hammer who reported on the proposed right turn lane to be built on Main Street southbound at Center Street. Hammer reported a cooperative effort has been arrived at between the Highway Department, the Mall Developers, an the city, which would reduce the city share to about $5,000.00. He recommended th city agree to this cooperative proposal as it is needed and needed now. Councilman Saverud so moved, Councilman Schindler seconded and the motion carried with Councilwoman Hafferman opposed. This is to be funded from the Tax Increment Off -site Improvements budget. Councilman Ruiz requested we get all these odds and ends brought before the council once and for all and quit presenting these surprise requests. PERSONNEL & POLICY Councilman Grainger moved the Personnel and Policy Committee be given the power to act in selecting a negotiator. Councilman Palmer seconded and the motion carried. 401 Councilman Grainger requested the City Clerk work with our present insurance carriers and try to determine our status for next year, and try to get this information by May 15. PUBLIC WORKS Councilman Ruiz reported the bids for the front end loader and aggregate bids have not been awarded. He called for a joint meeting of Finance and Public Works for Thursday April 24, 1986 at 3:00 P.M., to consider those bids and the Fifth Avenue West Project bids. WATER & SEWER Resolution 3647 Councilman Nystul moved adoption of Resolution #3647, a resolution adopting fee schedules, rates, charges, and classifications imposed upon the customers of the Sewer Utility. Councilman Schindler stated he could understand the comments of the people opposing the rate increases but he could see no other way for the city to go. Councilman Ruiz said some of the speakers had indicated the tax base should be adequate and he wanted to point out that the water and sewer enterprises do not get any taxes. Councilman Nystul pointed out that the lower interest rate on the bonds sold and the construction bids coming in under the engineer's estimates will save some money. The motion carried upon roll call vote. Resolution 3648 Councilman Nystul moved adoption of Resolution #3648, a resolution adopting fee schedules, rates, charges, and classifications imposed upon the customers of the Water Utility. Councilman Schindler seconded and the motion carried upon roll call vote. Resolution 3649 Councilman Nystul moved adoption of Resolution #3649, a resolution relating to the 1.3 million dollar Sewerage System Revenue Bond, Series 1986, authorizing the issuance and fixing the terms and conditions thereof. Councilman Schindler seconded and the motion carried upon roll call vote with Councilwoman Hafferman voting against. Frownfelter/Remick Easement Councilman Nystul explained the easement request is for 10 feet on the street going into the football field. The 10 feet they are asking from the city plus the 10 feet being granted by the property owners will allow that street to have the proper 40 foot width. He so moved and Councilman Ruiz seconded. Councilman Palmer asked why we were giving away this easement when we usually have to buy easements. It was explained this easement would benefit the City as much as it benefits the developers. The Storm Sewer Trunkline will use this easement. Councilman moved an amendment to the motion to require the developers annex to the city in consideration for receiving this easement. Councilman Schindler seconded and the amendment carried. The amended motion was then voted upon and carried. PARKS & PUBLIC LANDS Councilman Manning reported the Parks committee had given the Friends of Lawrence Park the go ahead to contact the Corps of Engineers and other agencies in preparation for planning for development of the Park. They will have to come to the council before any plan can be adopted. Councilman Ruiz said he had read in the paper they were considering ballfields and he said the council had already decided against ballfields there. Councilman Schindler said they were not planning any organized league fields there but were proposing a recreational ball field like the one at Woodland Park. FINANCE & ADMINISTRATION Bid Awards Councilman Palmer reported the Hot Mix Bid had been awarded to Pack & Co., the Sidewalk & Curb Construction, Phase I Bid had been awarded to Marriott Concrete. The Refuse Container Bid was awarded to HCL. Although their bid was higher, it was deemed in the best interest of the City, based upon the lid design of their container. 402 MISCELLANEOUS Fire Chief Mayor Kennedy recommended the appointment of Duane Larson to Fire Chief of the City of Kalispell, to serve a one year probation period, and receive a salary of $31,000.00 per year. Councilman Grainger so moved, Councilman Saverud seconded and the motion carried. To be effective immediately. Approve License Bonds Councilman Grainger moved the license bonds be approved. Councilman Nystul seconded and the motion carried. David Landt Electric Motors, Inc Meeting adjourned at 8:50 P.M. Approved as corrected May 5, 1986 ATTEST: /CSA ' - Don Halver, Clerk/Treasurer Pawnbroker 1,000.00 Electrical Contractor 1,000.00 ,zl Ed Kennedy, Mayor 1 1