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07/16/90 City Council Minutes} f 278 A REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:30 P.M. MONDAY, JULY 16, 1990, IN THE COUNCIL CHAMBERS AT CITY HALL. MAYOR HOPKINS PRESIDED. COUNCILMAN NYSTUL WAS ABSENT. ALL OTHER COUNCILMEMBERS WERE PRESENT. Mayor Hopkins called the meeting to order and led the Pledge of Allegiance. CONSENT AGENDA Approve Claims, City Official Reports Treasurer's Report June Police Chief " City Judge te Building official 41 Councilman Atkinson moved the consent agenda be approved. Moses seconded and the motion carried. ADDRESSING THE COUNCIL Evergreen Agreement Tom Flynn, 747 3rd Ave. West, referred to the proposed Evergreen agreement that was approved at the last meeting. He stated the amount of the surety bond is stated as $100,000.00. He said this only represents only about 5 months billing by the City and personally considered it inadequate. He did not feel it should be reduced under that $100,000.00. He reminded the council that this is an agreement that will be imposed on the City for at least the next .twenty-five years, and it has to be worded very carefully. He stated that several times in the last month, he has quoted City ordinances as they govern the conduct of the sewer system. One of them being the requirement for payment for a hook up fee by all users of the City Sewer System. He said there is no provision for payment of this fee contained in this agreement. With the City having negotiated to treat sewage as a service, separate from the existing service, now consisting of collection, transporting and treatment of sewage for present users of the system. It appears the only sound basis for conducting these services in the future is develop separate rate structures which would be composed of 3 elements. Collection and transportation to the plant, actual treatment and disposition, financial and debt retirement replacement. As it is anticipated, there may be future occasions where treatment is only requested, if you have an established rate and policy it would not be necessary to carry on a prolonged negotiation. I recommend that you investigate and follow through on this . The present City users would be subject to the combination of all 3 fees, which is the collection, treatment and finance and hookup fees. Once you have fully reconciled the Evergreen situation, I urge that you proceed with establishing such rate structures which should be adopted in the manner prescribed by law. S orts lex Flynn also referred to a recent article, regarding a Sportsplex in the area. He stated even in Spokane, they fail to draw enough happenings to make a go of it. He also stated if this sportsplex was privately owned, the revenues would not cover the taxes and the operating costs. The schools have indicated they would not use such a facility because they need the gate receipts at the school to help fund the sport. He said it seemed to him it would be well advised to keep any part of the money they might put into such a study as he has a street that is about 3 blocks long that the high school kids use that has a few holes in it. 1 1 279 Hopkins stated on behave of the City, that the character of this agreement assumes alot of Flynn's character and is a better agreement because of that. He thanked Flynn for his tenacity and involvement. He said the resulting agreement is a big part of Flynn's efforts. ANNOUNCEMENTS & APPOINTMENTS: Mayor Hopkins read a letter from Police Chief Clark, respectfully requesting confirmation of Janell Squires by the Council as a police officer. Furlong so moved and Gunnerson seconded the motion. The motion carried. MAYOR'S REPORTS: Evergreen Agreement Hopkins stated he does have an executed copy of a memorandum of agreement between the City of Kalispell and Flathead County Water and Sewer District No.l. He reported the Sewer Board met last week, and authorized their chairman Jack Fallon to sign the agreement. Mayor Hopkins read a letter from Fallon, stating Evergreen District would like to meet with the Sewer & Water committee on Thursday, July 19, at 7:00 p.m., to continue the final review of the interlocal agreement subject to the input provided by the various parties at the Special council meeting, Wednesday, July 11. City Manager Selection Mayor Hopkins reported the selection committee met and has narrowed the applicants from 33 to 11 semi-finalists. He stated the references will be checked and the sub -committee will review. As soon as that process is completed, he said he will notify the council of a meeting with the transition committee, to review the references by the committee, so the finalists can be narrowed down, and invited for interviews. NY Times Article Mayor Hopkins reported that Kalispell is making national Press. He said the New York Times wrote an article, which made reference to the City of Kalispell, in the change to the City Manager form of government and what is happening nationwide. COMMITTEE REPORTS: COMMUNITY DEVELOPMENT/PUBLIC BUILDINGS Sports Complex Contribution, $3,000 Councilman Furlong stated there is alot of excitement with alot of people on the possibility of building a sports complex. He said it would be multi -purpose. He said the Community Development Committee received input from the Mayor, stating there is a group attempting to raise just under $12,000 to hire a paid consultant to see if this thing would be viable or not. He said the committee voted to recommend to the council and so moved that the City participate in contribution to this fund to study the possibility of a sportsplex, not to exceed $3,000. Larson seconded the motion. Granmo asked what the source of funds were? Furlong stated UDAG funds. He said this is the repayment of the grant that help build the mall. Gunnerson stated this study will also find out if they even want to use the word "sports". He spoke in favor of the motion. Hopkins said it has been looked at from both private and public and the feasibility study may help define private and public. Furlong stated the committee felt as being the recipient of that market study 'might -.Justify thlb," cost. M4,9 urged 7-'everyone's support. ME Upon vote, the motion carried unanimously. Contract Services/Larry Gallagher Furlong said that it has been stated we need a professional real estate management consultant to give Kalispell a service as to what directions we might go as to the development of these properties and to KDC, who is our financial advisor to the Community Development Committee. He so moved the Mayor and Community Development committee be authorized to enter into negotiations resulting in a contract with Larry Gallagher for his services for a period of one year. Larson seconded the motion. Furlong stated the cost of this would be $47,0.00 to$50,00, which is about 10% of the value of the property owned. The scope of sequences and recommendations for different properties, which include, Equity Supply, FVCC college buildings, potential for developing a bond issue for extension of the Tax Increment financing, potential for creating parking lots in and around Flathead High School. Gunnerson stated he felt we are doing a decision making process for the city manager before he even gets here. He felt if we could do it on a project by project base, that way the city manager could make the decision. Furlong stated if we are going to move on extending the TIF, we have only 14 months left to do it. He said bringing that all together takes alot of time. He said the kinds of property involved and the possibility of getting them developed, is worth the risk. Atkinson spoke in favor of the motion. He stated he has talked with Gallagher and even though he is not from Kalispell is very aware of what is going on in Kalispell. He said he felt he has a considerable amount of background about those specific things Furlong mentioned. He said he has seen his credentials and are very impressive. He said he agreed with Furlong, with some projects, time is of the essence. He said he was in favor of this professional offering his expertise in this area. Granmo stated that there may be some value in some of this, but he questions the value to all these various projects. He said he did not feel we had that many studies to be made to be spending that .nuch money on them. He said there items in the budget that we have argued long and hard over that are alot less than that. Hopkins stated one of the main purposes is for Gallagher to bring all the pieces of potential and opportunity in Tax Increment District. He said 71 years ago when Larry was employed by the City, nobody had a clue what Kalispell would like in 1990. We cannot even begin to see what Kalispell will be like in the year 2000, but I think Larry can help us put some of the pieces of potential together that could get us out in that direction. As Noel mentioned, time is of the essence. We have actually 9 months to put everything together for the possibility of selling another bond. That if we are going to do that, that if there are projects that can be bondable and f.undablo, then that must he ready Lo be, prusunLed Lu LILU COURCll kry M11y 31 in urdur Lu allow band council and ovoryone else to review the propos,1 i s prior to the expiration of the district in mid -September of next year. 111hal. wi 1 1 i n(�l ttdr, tho pns-st i bi 1 i ty Of oxpand i rsrl t.hrr f1 i st.ri ct boundaries and looking aL projects outside of t1ke currenL district. He said he thought one that comes to mind and has been talked about very tentatively is the fair grounds. There is a vastly under utilized piece of potentially highly valuable commercial property, with enough imagination and effort and studies something very dramatic could happen there. So we are not just looking; which -is part of Larry{s task assignment, is to look beyond what is just in the district, although I think there 1 1 1 281 is potential in the district that we are not even fully aware of. Hopkins said Larry's skills are in the realm of an engineer. The service that Larry provides in the big cities brings in $125 per hour. In luring developers to the Seattle market, to other places he has been doing some work, in the past 10 years, his contract here works about to be about $78 per hour for the city over the one year period. Gunnerson said he felt Gallagher would be very positive for Kalispell. He said if we had a set plan and said, we want you to look at this area , accomplishments in this area, it would be a tremendous idea. But to give someone a basket and say here is 20 different things out here and you go in the direction you want to go and accomplish what you can in a years time, and we will see what we do next year. I think that is an improper procedure to follow. If we would set up the objectives of what we want to get accomplished and outline them accordingly, then great, let's do it, but while we are in the transition stage of city manager, community development director, I think we need to be individual on it. I would support that if that was the motion. Moses stated that it took alot of talk and convincing at the committee meeting to convince me to support this move. In the end, I did support the move. I did have some concerns, we don't really know yet what we want this person to do, however, I'm not sure if we even know the questions to ask and that's one of the reasons for my supporting this is that I think he is a man with knowledge and contacts to bring it all together. There are alot of decisions that need to be made that have long term ramifications and one of my hopes would be that someone who does have the background that he has will enable us to make the best decisions for the City of Kalispell. There are some concerns, but I feel it is a good investment. Furlong stated this is not a blank check, the motion said that negotiations would be conducted by the Mayor and the Community Development Department with Larry. Part of that is spelling out specifically and prioritizing those areas, those projects that he is going to work on. The contract will specify the priority of the projects. Hopkins said part of the process is to set , discuss what is to be done. If it would be helpful, I can read from his letter what he does propose to do for the city. It's very specific but it doesn't say specifically what the projects are. "The services may include but are not limited to 1. preparation of disposition strategies, and managing the marketing of land currently owned or to be acquired by the city. 2. identifying, analyzing and implementing plans for new tax increment and or public private financed redevelopment projects. 3. soliciting and negotiating agreements with local, state, regional and national development firms and tenants, which could add value to the Kalispell Downtown Redevelopment Plan area. 4. to analyze possible project boundary adjustments to determine the economic impact and feasibility." Hopkins stated these are specific projects, but until we get a professional in there that knows the developers, knows the market place, can analyze the potential and possibility of Kalispell, we don't really have specific projects, other than the college. We are current owners of that property and something must be done with that. Granmo asked is the motion to enter into the contract? Furlong said it was to enter into negotiations. In other words, write a contract. Hopkins stated" hd­inVited 'Larry here -,with 'a 4speci'fi.c. purpose -of one project in mind. We have talked alot about the Equity location and We ' had members 'of'' the KDC executive 1 board, . ., 282 representatives of Equity Supply including board members and president Nathan Byrd and representatives of the Kalispell Community Development committee in a meeting with Larry to talk about the potential of this project. At that time, was the first time that everybody in that room had any kind of direct indication of the magnitude of that project, in terms of dollars. Focusing on that one particular project as a potential bond project, did not seem as reasonable, at the end of that meeting, as it did prior to the meeting. But that's not to say that still couldn't be a project at a lower scope or with broader involvement on the part of Equity Supply. That was the intent was to focus on one project and as we entered into that discussion, it became clear that there is more going on here in Kalispell, than just that one project. Gunnerson said Moses stated that we really aren't sure all the questions to ask. Gunnerson stated that if we had a community development director, that person would know what those questions were that we would want to put together so maybe we knew what we wanted to ask and possibly build that cart before we add onto the horse. Instead of putting the horse out front without even having a cart to pull. He said he was concerned about spending that amount of money in a contractual basis when we don't have any plan in place. If we have a plan in place, great, then let's go after it, let's do it, go forward. There are slot of things that are going to happen in the community and I believe that Larry is the guy to do it, but without a plan, I cannot support it. Hopkins stated Larry will provide us with that plan. We hire professionals to do lots of planning for local governments and to give us the vision that we need, and give us the direction that we need to go in. He said that the KDC, through the tax increment committee has reviewed the proposal and supports the proposal and the hiring of Larry Gallagher, and has approved it as a budgetary item. Atkinson called for the question. Upon vote, the motion carried, with Granmo, Buck and Gunnerson voting against. FINANCE/PERSONNEL & POLICY/INSURANCE Pool Manager Wage Increase Atkinson stated the committee recommended that the council grant the pool manager a cost of living wage increase of 4%. This would move her wage from $1200 per month to $1248 per month. it is a temporary salaried position that is in the salary ordinance, but not on the salary matrix. All other salaried positions in that salary ordinance received a 4% increase. This was an oversite and the recommendation from the committee is that this oversite be corrected. lie so moved and Larson seconded the motion. Gunnerson stated he did not feel that we are treating the rest of the people fairly. He said maybe to change the salary from monthly to hourly would be better. Hopkins stated Baker was excused from the council meeting tonight so that he could represent the City at the Ilwy 93 meeting. Baker did want to be here in case this item came up. Larson stated, as explained to the committee, the pool manager is a seasonal employee that has come back year after year and is in a management position that oversees all the lifeguards and all the people that work at the pool during the season. She has responsibility for the overseeing the revenue for the pool that is developed day by day and _the-,�-poli,cies • qt `the pool-.: She 1s more in a management position andtshe .has returned for the third or fourth year. She is on a monthly salary because of the <� 0 263 management level of the position and the fact she has returned. She is on this salary for approximately four months of the year. Furlong said it was his understanding that wages and or salaries for the Parks Department were brought to the Parks committee by the real supervisor, Mr. Baker. To my knowledge this has not come before Parks. He said this same position was granted a raise last year of $200, and it went through the Parks committee. Larson said that was year before last. Hopkins stated he thought the reason it came through Finance committee is the second reading of the ordinance was up, the question was raised by her. She saw the other management employees getting a 4% cost of living increase and asked if she wasn't entitled to it and it came to the Finance committee. Furlong stated that it did not have to do with the amount of money, but did not think there was any way to equate a part time seasonal employee with our supervisory and management staff. Moses asked if any of the other seasonal employees granted the 4% increase. Atkinson said there are no other seasonal salary managerial employees. Moses asked if the other seasonal employees were granted the 4%? Atkinson said they were not. Larson stated we have seasonal employees, temporary employees, part time employees, part time/full time employees, and so we instructed the Parks director to come to our next meeting with a recommendation as to how to classify these employees. .The committee realizes this is something that is not firmly defined at this point. Information is being gathered from the City of Missoula as to the benefits and classification of these employees. After more discussion, Furlong moved to table the motion until the next council meeting after the report from Missoula is received and we can have the input from Baker. Gunnerson seconded the motion and it carried unanimously. Salary Ordinance 1155-Second Readin Councilman Atkinson moved the adoption of Ordinance 1155, an ordinance amending Ordinance 1146, fixing the limits of the salary and compensation of the City Officials, Supervisors, and employees pursuant to Title 7, Chapter 4, Part 42, M.C.A., beginning July 1, 1990; repealing all other ordinances in conflict therewith. Moses seconded the motion, Upon roll call vote, the motion carried. Funds from Sale of Griffin Field Atkinson~ asked Clerk -Treasurer Robertson to explain the purpose of this motion. Robertson said the reason we are doing this is that we have not receipted in the money that we received from Griffin Field. We received the money in June and we are just catching up on our posting. If we receipt it in the General Fund as a sale of land, then we have to do a budget line item to move that money to the airport fund, which would be a $200,000 line item in our budget, which we really cannot do because we are under the 105% rule. Within your budget limitation you cannot raise your appropriation over your last years budget Thej•aiternatiVe is- to receipt -the money directly in the fund which ve intend-tcWspend it from so if your desire is to spend it on the airport, then I would like to 1: 2 ,1. 284 receipt that money in the airport fund directly. That way I do not have this budget problem in the general fund. Atkinson stated as a result, the committee moved to place the money from the sale of Griffin Field into the payment of the airport bond. He said inclusive in this motion was to pursue other funds related to the airport to replace a revenue sharing fund for the Parks Dept. He said the only claim that the council has made in the past, had to do with the replacement of revenue sharing fund for the Parks Dept. In order to meet. the requirements of the past councils, the committee decided to include the last sentence in the motion. That is that we are to pursue other funds related to the airport to replace revenue sharing funds for the Parks Dept. Atkinson moved that the money from the sale of Griffin Field would go to the payment of the airport bond and that we pursue other funds related to the airport to replace revenue sharing funds for the Parks Dept. Larson seconded the motion. Furlong asked Atkinson to explain revenue sharing plans. Larson explained that there has been alot of research done on the background of replacing old Griffin Field with the new field south of town. At one point in the process of making that replacement, there was a shortage of funds to complete a certain stage of the construction of Begg Field. The budget had reflected that a certain portion of the budget would go to the Parks Dept. for capital expenditures and this money was from revenue sharing funds. Parks Dept., at 'that time, under the direction of Pieter Drent, agreed to allow that money to be used to complete Begg Field at least that state of the process of Begg Field, with the .idea at some point in time when Griffin Park were sold, that that money would be repaid to the Parks Dept budget for captital expenditures. And this sum is around $52-54,000. There is a little bit of a debate on whether or not the whole $54,000 was spent out of the revenue sharing from the Parks Dept. or a portion of it came from developing water and sower facilities at South Meadows. Furlong stated there was a time at the construction of Begg Park that TIF monies were used and that sale of Griffin Field would be returned to that source. That's why I asked the question about revenue sharing. There is an excess of a quarter of a million dollars spent on Begg park already. Well above the sale of Griffin Field. I think it is around $325,000. Hopkins said that includes some improvements to South Meadows water line, sewer line, road improvements and new creek crossing. Furlong stated he would support %,the first motion to defray that bond at the airport. But I am lost in being explained the second part. I would like the maker of the motion to separate the motion to make it nice and neat. Hopkins explained revenue sharing was a federal program, ran some of our hard earned tax dollars, went to the federal government and they returned it to local governments in the form of revenue sharing and local governments were allowed to do virtually whatever they wanted to with that allocation. The program has been gone now for 2 or 3 years. Gunner:on supported Furlong's comments. Fie is in favor of paying off that airport debt. He said he could not support something that has occurred in the past, to repay back in the amount of $52,000 back into the Parks Dept. We work on an annual fiscal year budget from year to year and I don't understand the repaying of -one department back from four years ago. If we determine what the best need of money is -fog, -the City of Kall;spell,'" then that is where the money goes. r, , '4i 1 1 1 F 85 285 Moses asked if the intent of the motion is to put that $52,000 revenue sharing into the Parks to be used on Begg Field? Atkinson stated no, the intent of the motion is to put all the money from Griffin Field on the airport bond and at a later date funds coming from the airport would pay back a $52,000 to revenue sharing fund. Furlong said it looks like we are going to pay off a $200,000 bond for the airport and create a $52,000 debt. Lets not have anymore debts. Larson said the intent of the motion that came out of the meeting, was that past councilpersons have implied that they would repay the Parks Dept. The Parks Dept. has a certain budget, they gave up part of their budget, part of their plans, part of the things they were going to do, to help complete Begg Field. As a result, the council in turn, at that time, said that they would pay back that money at some later date when Griffin Field was sold. My intent was that we should pursue avenues to repay that. Its a loan, so to speak. One part of the City did not loan another part of the city money, one dept. in the city helped complete the construction of a community project. Furlong moved to separate the previous motion so that it contains two subject matter. Moses seconded and the motion carried, with Larson and Atkinson voting against. The motion is to pay off the airport bond with proceeds of the sale of Griffin Field. Upon vote, the motion carried unanimously. The other motion is to pursue other funds related to the airport to replace the revenue sharing fund for the Parks Dept. Upon vote, the motion failed with Atkinson and Larson voting in favor. Set Interest Rate Curb & Gutter: Meridian Road Atkinson so moved, by committee recommendations, to set the interest rate for curb and gutter assessment for Meridian Road at 11% and sell the bonds to the Sewer Department. Moses seconded the motion. Upon vote, the motion carried. Council Meeting Dates Atkinson announced the following meetings required for the budget: Adopt Preliminary Budget July 25, 1990 noon Budget Workshop: July 30, 1990 8:00 a.m. Public Hearing for the budget: August 8, 1990 7:30 p.m. Budget Approval: August 13, 1990 5:30 p.m. Regular meeting August 6 changed to August 8 to coincide with public hearing. PARKS/PUBLIC LANDS/ANNEXATION/ZONING/BUILDING REGULATION -No Report PUBLIC SAFETY/PARKING/GAMBLING Ordinance 1156-ADDrove Stop Sian Placement Larson so moved the second reading of Ordinance 1156, an ordinance approving the placement of stop signs at the intersections of West Washington Street and 1st Avenue West North, West Montana Street and 2nd Avenue West North, and 18th Street and. 3rd Avenue?'E&St,-dstab'liWh'ing.a '.peA&lty,I, anti dedlaring an effective date: Granmd sdcon:d( d' th"e motiorvg`',. ItEcarried upon roll call vote. 286 PUBLIC WORKS/AIR QUALITY/AIRPORT Request for Bids Chip Seal Street Repair Moses moved the council authorize the Public Works staff to go for bids for chip seal for street repair for the Montana Street project. Gunnerson seconded the motion. Moses explained this would entail chip sealing on Montana Street between 3rd Avenue East North and 7th Avenue West North and one block north and south for a good portion of the project, for a total of twenty-three blocks. The motion carried unanimously. Meridian Road Report Moses reported curbing is currently going in, the paving is due to start on the 20th of July and it is still on target to be completed the 3rd of August. Second Street West Report Moses stated that it has been decided to reduce the scope of that project to include 2nd Street West only rather than the amount of the project that was originally suggested to be done this year. This is mainly due to the water main requirements, they need to be submitted to the Water Quality Bureau for approval and time does not allow that to be done for this construction season. She said 2nd Street West will be completed this year and the rest of the project will wait until next year. Gunnerson complimented Public Works Coordinator Hanson for the preliminary work that was done and presenting it to the committee. SEWER & WATER Evergreen Agreement Granmo reported a letter of intent has been received and Evergreen wishes to meet Thursday, July 19, to clear up more changes to the agreement. Granmo set a committee meeting for Wednesday, July 18th at 7:00 p.m. to review the changes generated by the City and Evergreen. ANNOUNCEMENTS: Committee Meetings Sewer & Water 7/18/90 7:00 p.m. Blue Cross/Blue Shield -HMO Ins. Options-7/17/90 8:00, 10:00, 1:00 and 3:00 ADJOURN: The meeting was adjourned at 10:20 p.m. Rogue W. Hgpk> ns, Mayor ATTEST: Amy If. Robertson, Clerk --Treasurer Debbie Liverman, Recording Secretary Approved as presented Augus�,20, 1.99Q...