03/01/04 City Council MinutesA REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:00 P.M.
MARCH I, 2004, IN THE COUNCIL CHAMBERS AT CITY HALL IN KALISPELL,
MONTANA. MAYOR PAMELA B. KENNEDY PRESIDED. COUNCIL MEMBERS JIM
ATKINSON, KARI GABRIEL, BOB HAFFERMAN, BOB HERRON, RANDY KENYON,
DUANE LARSON, HANK OLSON AND JAYSON PETERS WERE PRESENT.
Also present: City Manager Chris Kukulski, City Attorney Charles Harball, City Clerk Theresa
White, Police Chief Frank Garner, Fire Chief Randy Brodehl, Public Works Director Jiro Hansz,
Finance Director Amy Robertson, Community Development Director Susan Moyer and Tri-City
Senior Planner Narda Wilson,
Mayor Kennedy called the meeting to order and led the Pledge of Allegiance.
A. AGENDA APPROVAL
Atkinson moved approval of the Agenda. The motion was seconded.
There was no discussion.
The motion carried unanimously upon vote.
B. CONSENT AGENDA APPROVAL
l . Council Minutes Regular Meeting — February 17, 2004
2. Council Minutes ---- Special Meeting — February 23, 2004
Ordinance 1492 — Skateboard Park Regulations — 2nd Reading
4. Postpone Acceptance of Proposal for Comprehensive Plan. — North Fire Station
5. City Airport Fee Schedule Change
Kenyon moved approval of the Consent Agenda. The motion was seconded.
There was no discussion.
The motion carried unanimously upon roll call vote.
C. STUDENT ISSUES
None.
D. HEAR THE PUBLIC
David Graham, 128 West Bluegrass Drive, spoke in favor of Agenda Item ##5, the Orchard Village
Preliminary Plat. He said he's proud to be part of a project that takes an "eyesore" area and develops
it into a beautiful multi -family community.
Don Bennett, President of 1st Citizens Bank in Columbia Falls and Chairman of the Port Authority,
spoke in favor of Agenda Item ##1, the Strea lSolectron and Tel eTech agreements. He said the City
and the community will benefit from this proposal and he hopes the Council supports it.
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Paul Wachholz, 183 Fairway Boulevard, said nothing moves an economy more than the value of a
job and when Stream closed it left quite a void in the community. He said TeleTech is offering an
employment opportunity that will help keep the community on the move.
Tony Corpron, 1821 Stag Lane, spoke in favor of the annexation, zoning and preliminary plat for
Terrace View Estates. He said they've gone to the extreme to meet neighbor's concerns and asked
the Council for approval.
Liz Harris, President of .lobs Now and CEO of the Flathead County Economic Development
Authority, spoke on behalf of the TeleTech project. She said we'll never be able to quantify the
value of the training that has gone into the workforce from Stream and it's important to continue to
develop a workforce for an international economy that we are a part of whether we like it or not,
E. REPORTS/RECOMMENDATIONS AND SUBSEOUENT COUNCIL ACTION
E/1. RESOLUTION 4862 — STREAM/SOLECTRON & TELETECH AGREEMENTS
This resolution approves agreement documents between Stream/Solectron, TeleTech Holdings, and
the City of Kalispell.
Larson moved Resolution 4862, a resolution relating to the loan buyout and lease termination
for the Stream International Service Corp. Project; approving the Loan Buyout and Lease
Termination Agreement between the City, Flathead Economic Development Authority and
Solectron Corporation; approving the option to purchase between the City, Flathead
Economic Development Authority, and American Capital Group, LLC; approving the Jobs
and Use Agreement between the City and TeleTech Holdings, Inc, and TeleTech Services
Corporation; and approving Form of the Lease Agreement; and approving and authorizing
the execution and delivery of documents related thereto.
Kukulski gave a staff report explaining there have been a couple of changes over the past several
days in the agreement with TeleTech. He said the total term of the lease is ten years with TeleTech
having an option to terminate the lease at the end of five; however, in the event that TeleTech is
unable to satisfy its workforce requirements from the local labor pool, it may terminate the lease at
the end of three years. Kukulski said because the change from five to three years is quite substantial,
it was negotiated that the City will no longer be providing TeleTech with a 4% loan as was originally
anticipated and an annual average of 425 employees is needed to receive rent abatement after the
three-year ramp up period. He said another critical component is that the City of Kalispell and the
Port Authority will be purchasing land adjacent to Two Mile Drive for an additional 250 parking
spaces to be developed when the need arises.
Hafferman commented he analyzed the documents and if he understands them correctly he has
several concerns. First, the taxpayers still owes the Montana Board of Investments 1.9 million
dollars on a loan used to buy Gateway West properties. Stream will pay 1.3 million, but that still
leaves the taxpayers obligated for $540,000. He said some people think that's a good thing because
the City will own a 63,000 square feet building when the loan is paid; it would be a good investment
if it could be sold and placed back on the tax rolls but who would buy it. Hafferman stated if these
documents are signed, Stream will be "left off the hook on their contract obligations". He listed
several other concerns including the provision that TeleTech, if unable to satisfy its workforce
requirements, can terminate the lease at the end of three years instead of five; TeleTech pays no rent
if it meets certain employment numbers; the City is proposing to seek a CDBG grant to train
employees; the City is proposing to spend taxpayers' money to provide additional parking; the
definition of a 1`411 time employee is convoluted and can be circumvented; and the job pay is far
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March I, 2004
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below the Montana living wage. He said in his opinion the one bright spot in the whole proposal is
that TeleTech will now be seeking private financing instead of asking for a taxpayer loan.
Hafferman concluded that "this Council must get out of the jobs market which should be left to
others in the private sector to attract and maintain jobs" and stick to its basic mission of providing
Police, Fire, Parks and maintenance of infrastructure.
Kukulski responded that FTE is clearly defined as Pull Time Employee and not Full Time
Equivalent. He said the purchase of the parking area is a 50150 investment with the Port Authority
and will make that building more marketable in the future. Kukulski said even though TeleTech
could walk after three years, he firmly believes TeleTech will stay at least five years at which time
the debt retirement will be in the black.
There was further discussion.
Kenyon said even though he's disappointed at a starting wage of $8.00 an hour, he doesn't feel as
strongly as Hafferrrran does and he will vote in favor of the resolution.
Mayor Kennedy said everyone worked diligently to raise the pay scale and the benefits to where they
are now.
Olson commented that unfortunately, $8.00 an hour in Kalispell is a pretty good wage.
Peters agreed, stating that's how much these jobs pay. He said he hopes that eventually the City can
attract higher paying jobs once it owns this high tech building and has trained employees available
for hire.
Mayor Kennedy said as business and community leaders, it is the Council's responsibility to look for
new job growth and economic stability.
Herron said he's been a small business owner for twenty years and he would love to have free rent or
rent abatement. He said he's not convinced the City should ever have gotten involved with Stream,
but now that the City is "well into this deal" he's inclined to go along with it.
The motion carried upon roll call vote with Gabriel, Herron, Kenyon, Larson, Olson, Peters
and Mayor Kennedy voting in favor, Hafferman voting against, and Atkinson abstaining.
E/2. RESOLUTION 4863 — ANNEXATION REQUEST — DUO CORP AND GARDNER
INVESTMENTS
This is a request for annexation of approximately 8.4 acres on the north side of California Street
between 5th Avenue East North and 6th Avenue East North.
Kenyon moved Resolution 4863, a resolution to provide for the alteration of the boundaries of
the City of Kalispell by including therein as an annexation certain real property, as more
particularly described on Exhibit "A", located in Section 8, Township 28 North, Range 21
West, P.M.M., Flathead County, Montana, to be known as Terrace View Addition No. 341; to
zone said property in accordance with the Kalispell Zoning Ordinance, and to declare an
effective date. The motion was seconded.
Kukulski and Wilson gave staff reports.
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Herron said right after he took office he received several phone calls from neighbors unhappy with
development plans for this property. He said considering there is no one in the audience protesting,
he's assuming all of the problems have been worked out.
Kukulski said up until six weeks ago there were six lots planned for this area; now there are four_
Mayor Kennedy reminded Council the only issue before them at this time is the annexation and other
concerns should be addressed during the discussion of the preliminary plat.
The motion carried unanimously upon roll call vote.
E/3. ORDINANCE 1493 — INITIAL ZONING — DUO CORP & GARDNER
INVESTMENTS —1ST READING
This is a request for an initial zoning designation of R-3, Urban Residential, on approximately 1.6
acres and P-1, Public, on approximately 6.8 acres of the above mentioned property.
Peters moved first reading of Ordinance 1493, an ordinance to amend Section 27.02.010,
Official Zoning Map, City of Kalispell Zoning Ordinance, (Ordinance No. 1460), by zoning
certain real property described as Assessor's Tract 23A+ located in Section 8, Township 28
North, Range 21 West, P.M.M. Flathead County, Montana (previously zoned County R-1,
Suburban Residential) to City R-3 (Urban. Single Family Residential) and P-1 (Public), in
accordance with the Kalispell Growth Policy 2020, and to provide an effective date. The
motion was seconded.
Wilson gave a staff report explaining the applicants changed their plans from a previous proposal
and are now asking to have two single family lots in the front of the property and two in the rear.
She said the 6.8 acres to be zoned P-1 is in the floodplain and will be dedicated to the City to become
part of Lawrence Park.
Peters commented, as a side note, that he feels it's confusing discussing annexation, zoning and plat
issues separately. He said they are all linked together and there may come a time when the Council
decides against annexation depending on the project.
Mayor Kennedy said the issue can be addressed at a work session.
Peters asked if the City wants the six acres to take care of:
Wilson said there isn't any maintenance involved and is mainly for conservation habitat.
The motion carried unanimously upon roll call vote.
E/4. RESOLUTION 4864 — PRELIMINARY PLAT — TERRACE VIEW ESTATES
Duo Corp and Gardner Investments are also requesting preliminary plat approval of Terrace View
Estates, a four -lot residential subdivision.
Kenyon .moved Resolution 4864, a resolution conditionally approving the preliminary plat of
Terrace View Estates, more particularly described as Assessor's Tract 23A+ located in Section
8, Township 28 North, Range 21 West, P.M.M., Flathead County Montana. The motion was
seconded.
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Wilson explained the proposal calls for two lots fronting on California Street and two lots on the
bluff overlooking the river. She said the two single family homes along the bluff would be accessed
via a 24-foot wide private drive with the lots on California Street having individual driveways.
Wilson praised the Gardners for working with the neighbors to develop a project that responded to
their concerns.
Kenyon asked about the variance needed for the access road.
Wilson said the configuration of the property necessitates the configuration of the lot layout which
works best with the private internal roadway. She said the developer is asking for a variance to
allow the creation of a 24-foot wide private access because there are no satisfactory alternative
designs that could be used to comply with the road and cul-de-sac standards.
Olson commented the developer wants to dedicate property to the City that includes a steep slope
and asked if the City will be liable in any way if that hill slides.
Wilson said there have been studies showing the slope is fairly stable, but more importantly, the
steep slope area is private property. The property line goes to the toe of the slope, not the top.
Wilson added the developer has made a commitment to the neighborhood that the buildings will
have a setback of ten to twenty feet and not encroach to the top of the slope, however, that condition
is not in the preliminary plat. She said if the Council would feel more comfortable adding that
condition they can certainly do so, but it wouldn't be based on any sound engineering.
Hafferman complimented the developers and the neighbors for working out a project that is
reasonably acceptable to both. He said adding a setback requirement would make the City liable and
it should be a case of "buyers beware".
The motion carried unanimously upon roll call vote.
E/5. RESOLUTION 4865 — PRELIMINARY PLAT — ORCHARD VILLAGE
This is a request for preliminary plat approval of Orchard Village, a 14-lot residential subdivision on
approximately 3 acres located on the south side of Appleway and west of Meridian Road.
Peters moved Resolution 4865, a resolution conditionally approving the preliminary plat of
Orchard Village, more particularly described as Assessor's Tract 15 located in Section 13,
Township 28 North, Range 22 West, P.M.M., Flathead County, Montana. The motion was
seconded.
Wilson explained this proposal, for what is known as the Getz property, calls for the development of
14 lots with four-plex apartment buildings. There would be a total of 56 dwelling units once the site
is fully developmed with the parking, access, recreational area and landscaping commonly shared,
owned and maintained. She mentioned a minor condition should be added requiring a provision for
cross easements agreements and maintenance of the common areas.
Larson commented the planning staff report suggested that a note be placed on the final plat waiving
protest to the creation of a special improvement district for the future upgrade of Appleway Drive.
He asked why that condition was left out of the resolution.
Wilson said that stipulation was prior to the developer agreeing to install the sidewalks and
landscaping now. She said if the City wanted to upgrade Appleway in the future it would probably
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just deal with the roadway rather than improvements adjacent to the development. In addition
Appleway is a collector and serves a lot more areas than just this development.
Larson said he still thinks a waiver of an SID for improving the roadway would be appropriate.
Wilson said it's a dilemma because if you ask the developer to pay for that front footage of
improvements for the roadway upgrade, they're actually bearing a much greater cost of traffic
impacts than are directly related to their development.
Larson said he still feels the developer shouldn't be allowed to protest an SID if one becomes
necessary.
Wilson said that issue is for Council discussion, but staff feels the developer has met his obligation
when he puts in the improvements related to the site such as landscaping, curbs and sidewalks.
Hafferman commented he feels the amount of traffic this development will be adding to Appleway
will be small, adding that City regulations require that a traffic analysis has to be done once the
number of vehicles gets to a certain amount.
Peters stated a concern that fourteen different owners of fourteen different lots could build fourteen
very different buildings.
Wilson said even though there could be fourteen separate owners there are covenants that will ensure
that all of the buildings will be architecturally consistent.
Kenyon moved a condition be added to the preliminary plat to read: "That a provision be
made for cross easements agreements and maintenance of the common areas." The motion
was seconded.
There was no discussion.
The amendment carried unanimously upon vote.
The main motion as amended carried unanimously upon roll call vote.
E/b. FINAL PLAT — SUBDIVISION NO, 182
This is a request for final plat approval of Subdivision No. 182, a four -lot residential subdivision on
approximately 1 A acres located on the east side of 5th Avenue Eat and north of 18th Street East.
Kenyon .moved Council accept the subdivision improvement agreement and approve the final
plat for Subdivision No. 182. The motion was seconded.
Wilson gave a brief staff report.
Atkinson asked if there are two driveways contiguous to one another running back to Lots 2 and 4.
Wilson said that's correct. It's a shared access and the property owner will be paving it with a T
turnaround for the Fire Department.
The motion carried unanimously upon roll call vote.
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E/7. RESOLUTION 4866 .... LOCAL GOVERNMENT REVIEW
Resolution 4866 calls for an election to ask voters whether they wish to create a local government
study commission to review the current form of city government and allow the City to levy up to 1
mill to fund the review.
Kenyon moved Resolution 4866, a resolution to submit to the electors of the City of Kalispell
on June 8, 2004 a proposal to create a local government study commission to review the form
of the city government of Kalispell; said commission to consist of five (5) elected members; all
pursuant to Title 7, Chapter 3, Part 1, M.C.A., and to direct proper notice of said election to be
made. The motion was seconded.
Kukulski explained the State's constitution requires that every ten years the voters be asked whether
they want to establish a study commission to review the local government. He said the City
followed the official ballot as presented by the Secretary of State, which includes a statement that if
the study commission is approved, the City can levy up to 1 mill in excess of all other mill levies to
fund it. Kukulski said if the Council feels this statement could negatively affect the election, then it
should be removed from the ballot language.
Robertson added she agrees the mill issue sets the ballot up for failure and stated she feels the costs
of the study commission could be funded within the current mill levy cap.
Mayor Kennedy asked what needs to be changed in the resolution if the Council decides not to
authorize the inclusion of the mill levy.
Harball said if the Council wants to authorize a levy amount under a mill, then a section could be
added to the resolution stating that amount with a statement of impact on the ballot.
Olson said a money reference will kill any chance of voters requesting a study commission and he
suggested the mill levy reference be completely removed.
Olson moved to eliminate all references to a mill levy. The motion was seconded.
Hafferman agreed a mill levy will kill the impartial vote of the people.
The amendment carried unanimously upon vote.
Atkinson said there's a state law that stipulates once a form of government question has been placed
before the voters, another one cannot be brought up again for three years. He said since the voters
just recently denied a request for a City charter, can a study commission still recommend a charter.
Harball answered by the time the study commission concludes in 2006 the three year period will
have elapsed.
The main motion as amended carried unanimously upon roll call vote.
F. MAYOR/COUNCIL/CITY MANAGER'S REPORTS No Action
Mayor Kennedy thanked Nick Hernandez for clearing fire hydrants in his neighborhood.
Mayor Kennedy stated she and Kukulski met with Representative Rehberg and Senator Burns last
Friday about the bypass, fire department needs and the wastewater treatment plant.
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Mayor Kennedy announced she recently attended the Montana Mayors Academy where a great deal
of time was spent on decision making, budgeting and financial management and risk exposure in
land use decisions. She said it was made very clear that annexation, zoning and plat issues need to be
handled separately. Mayor Kennedy said ex-parte communication was also discussed and she has
asked Bob Worthington from MMIA to meet with the Council on this issue.
Atkinson thanked the Parks Department for working with county government by responding quickly
to requests from Eagle Transit for trimming trees that become a problem for the vehicle's antennae.
Peters announced a program called. "Parenting with Dignity" will be held on March Sth at the
Majestic Valley Arena starting at 6:30. He said it's an excellent program and encouraged all families
to attend.
Olson said he has noticed a lot of kids in the Skateboard Park not wearing helmets and asked how
we're going to enforce the requirement.
Garner answered for the next couple of weeks they will be concentrating on educating the kids on the
rules and regulations. He said after that, officers will begin writing citations.
Olson complimented the planning staff on how they conduct themselves at meetings stating they do
"a hell of a job".
Herron said he received a call from County Commissioner Gary Hall asking the Council to support
keeping the Ten Commandments monument at the Court House. He asked that a work session be
scheduled to discuss the issue.
Kukulski reported the City and Chamber of Commerce is trying to find a solution with the State for
the reconstruction of Meridian Road. He said they are looking into funding options, including
bonding.
G. ADJOURN
The meeting was adjourned at 9:15 p.m.
ATTEST:
Theresa White
City Clerk
Approved March 15, 2004
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