10-24-88 Council as WholeCOUNCIL WORKSHOP
5.00 FM OCTOBER 24, 1988
• The meeting was attended by Mayor Kennedy, CouncibTenbers Schindler, Nystul,
Atkinson, Gunnerson, Hopkins, Saverud and Hafferman. Councilman Furlong came
at 7:40 pm. Also attending were City Attorney Neier, Clerk/Treasurer Halver and
Don Murray, Attorney for Martel Construction.
1. Lutheran Home Hook-up Fees
City Attorney Neier reviewed the conflict concerning the Water and Sewer Hook-up
Fees. He. said he has recoirmended we sue to collect the $60,000.
Neier said he has taken a deposition from Water/Sewer Superintendent Hyde prior to
his leaving. The city has received the $9,800 the contractor believes is the
correct amount.
He said his legal research leads him to believe the rates totaling the $60,000 are
proper and due to the city.
Neier said Andy Hyde's testimony was he recalled telling the contractors the fee
was $9,800 based on the request for a rate for the size of lines the rates were
requested. Hyde says he doesn't recall any specific discussion of the Buffalo
Hill Terrace project or the number of apartment units involved. He didn't think
the project was sufficiently described when the quotes were requested.
Dreier said the Building Department had information identifying the project as a
100 unit apartment ccarplex as early as January 1987.
40 Neier said, at the next Council meeting, some decision should be made on whether
the council want to pursue collection of the $60,000.
Neier also said his position all along was our rates make the owner responsible
for the fees and not the contractor.
Pon Diurray said Andy was aware of the purpose of the calls, to get the rates for
the purpose for bidding the project. Murray didn't think Andy rEvembers that he
was asked for quotes by line size. Murray said Andy just thought that is what was
asked. Murray said there ware three projects going on on Buffalo Hill and Andy
may not. have known which project was involved. DIurray said Hyde did not ask and
had a duty to make sufficient inquiry to give accurate information and Murray
contended Hyde was negligent in his responsibilities and provided misinformation
which was relied on.
Neier didn't think there were. any surprises in the case and the council didn't
need to close the meeting to discuss strategy.
He said he thought this may be handled by a "summary judgement" where both parties
agree to the facts of the case and a judgement is arrived at from the facts
submitted.
Neier said the only question was whether the rate should be $9,800 or $60,000.
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COUNCIL WORKSHOP
5:00 Pig OC110BER 24, 1988
• Counci-loran Nystul said this was question of law and the dispute needs to be
settled through the courts.
CounciliTen Saverud was concerned that Andy rrade a mistake and we have to live with
that. Councilman Gunnerson agreed.
Counci-loran Nystul felt the adopted rate schedules should govern, regardless of
the employee's quote.
Councilman Schindler said he couldn't rrorally vote to pursue the collection when
we made the mistake.
Nystul- discussed sore examples where the rules governed in spite of an official's
nustake.
Councilman Atkinson felt we would set a precedent if we don't enforce the rate
structure..
Neier said Andy agrees that an error was made but Neier said the rules prevail.
21ystul said there were other projects on Buffalo Hill where a four inch main was
rea_uired and he agreed more questions should have been asked.
Don Murray said the simnary judgement process would be a possibility if the facts
IS car_ be agreed upon.
Councilman Gururersor; said we should have a better police for handling requests for
quotes oil City Pees. FIB said any phone quote should be followed up by written
conf irmat ic¢r.
Councilman Schindler said the council could set a policy and the Mayor could
enforce it.
Councilman Saverud said we could still have the sane problem because the
contractors are calling at the 11th hour to get quotes for their bids.
Schindler thought we should require written requests for ,motes.
Mayor Kennedy felt we should have a better policy and require more information
when quotes are given by phone.
Councilman Saverud said, on this case, morally we gave a quote and we have to live
with it. Schindler agreed.
Councilman Hopkins said Andy responded to the question asked and felt the rate
schedule should be followed and we should pursue it.
Councilman Gunnerson said the city made a mistake and was responsible.
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COUNCIL WORKSHOP
5:00 Prvl
• Councilman Nystul said it should be settled by litigation, the council doesn't
have the authority to concede the rates.
The Public Works Cca ittee will consider this issue and bring it to the council
floor.
Councilman Atkinson said we should litigate and maintain the irntearity of: the
written policy.
Counci.lwcanan Hafferman felt we have to live with the mistake. Andy didn't
asked enough questions.
Councilman Nystul said this was a phone inquiry responding to a specific question
and he didn't feel it was all our fault. We need to go to litigation.
Counc:l]uoii Hopkins fell Frady coil ectly responded to the question asker9. He also
felt he couldn't waive the higher. rate and felt the litigation should decide.
2. Labor Negotiator Status
Council President Saverud reported Don Klepper has resigned as the City's
negotiator. We don't have any contract under negotiation now so we don't have to
react immediately but there are a couple of issues brought up in his letter which
should be reviewed.
Mayor Kennedy said Water/Sewer Hyde had written a mend regarding week -end staffing
•
of the treatment plant and Klepper objected to the nemo. Kennedy said that was
the only memo tie was aware of.
Klepper's question on coup time has been addressed and taken care of.
The high grading of time slips, the Mayor thought, was employees working at two
or more job descriptions having different pay grades, and getting the higher pay
all the time. Mayor Kennedy said he has talked to the Department Heads and will
look into it again.
Council President said our next contract to be negotiated is the police contract
and council should decide right after the first of the year to decide how to
handle it.
3. Salary Matrix
Councilman Nystul reported the Finance Committee meeting minutes for October 5
1988 pretty well reflect the discusai.on of the matrix.
Fie has five points to discuss with the workshop.
Ttie management group was concerned with what happens when they reach the last step
of the plan. They suggested some provision be made for longevity after the top
step of a plan is reacher]..
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CGUEC IL ItUPYSHOP
5:00 PM OCPOBER 24, 1988
• Councilman Gunnerson said the entire schedule should be reviewed and adjusted
annually. He said, an errployee who has reached the top of the scale would only
receive any cost of living adjustments. Councilman Atkinson agreed.
Atkinson also wanted any step increase to he based upon merit, not automatic.
Cunnerson suggested anyone at the top of the scale may be ready to move on
professionally and if they chose to stay they would have to accept the pay.
Councilwoman Hafferrran agreed. She also the city employees get good benefits and
if they want to stay and live in Kalispell they have to accept what the City can
afford to pay.
Councilman Schindler said he had contacted three big cities to see how they handle
this. They use a step system with the steps not being automatic and the top step
is the ending salary.
Nystul said the management group requested a COLA index representing this area be
adopted and the adjustments be automatic. He said the Finance Committee does not
support this. Councilman Atkinson said no.
Councilman Gunnerson said you can't use a COLA if merit is used for the raises.
Schindler said any adjustments made must be based on our local economy.
1lystul said the group requested the steps be automatic, especially when the mayor
and council fail to act in a timely manner. He said the commdttee agreed the
council needs to take care of management in timely manner.
Nystul reported the management group suggested the job descriptions take care of
any need for professional certification and the ccEwittee agreed.
Finally, Nystul said the group wants management salaries settled about July 1 of
each year and the committee felt that was right.
Nystul reviewed the basis used for setting Step 1. It would compare to a person
at high salary in the bargaining unit with 15 years longevity.
Nystul hoped to present a draft to the Finance meeting before the next Council
meeting. Council President Saverud asked the zest of the council have time to
review it before it is brought to the council floor.
4. Administration Organization
Council President Saverud said there has been discussion for years concerning the
most effic_i.ent operation of government for the City of Kalispell. If there is any
sentiment to make improveruents, this intention should be made known before January
1, 1989 so that candidates for lvayor and City Council know the status.
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COUNCIL WORKSHOP
5:00 �i OCTOBER 24, 1988
• Councilman Atkinson stated he desired an administrator for the city with the Mayor
and Council setting policy. He saw the Mayor serving as Council President and
spokesman. The Mayor would have rank over the administrator. The admdnistrator
would answer to the mayor and to the council. The administratorwould supervise
the department heads and they would be his cabinet.
The administrator would have the right to recotmend termination of department
heads and the mayor would recommend the hiring and firing of the administrator to
the council.
Councilman Schindler asked what would be gained. Atkinson said there would
continuity. He wanted scaneone with public administration experience and with
grant administration. Someone with knowledge in finance and personnel.
Schindler didn't think we would gain anything with an administrator under our
present form of goverrArent.
Atkinson said the council has to deal with day to day administration that an
ach dnistrator can handle. The council is supposed to set policy.
Councilman Gunnerson said we have a strong council - weak mayor form of government
and administrator would change the form of government. He suggested we look at:
our present nanagement structure and see if we need all the positions and see if
duties are handled properly.
• Gunnerson said. we would. have to pay $40,000 to $50,000 a year for this position.
Atkinson said he had been told one could be found for a $25,000 starting salary.
Councilman Saverud said the administrator would have to be given the authority
by the council. He also said the city has been notoriously cheap on the amount of
ncney budgeted for the administration of the city. In looking at any other
i:Llti-ndllion business, here or elsewhere, good stewardship requires adequate
iianpower to supervise.
Our present salary pretty much, requires anyone ninning for rrayor to take a cut in
their standard of living unless they are retired.
Saverud thought the administrator could work if the council gives him the
necessary authority.
Councilman Furlong thought the mayor should be the administrator developing plans
for council approval and handling the day to day operations. He would like to
have an administrator reporting to the mayor. A good one would save his salary in
a year's time and enhance the mayor's position.
Councilman Saverud said an administrator could have done the leg -work on the
salary matrix and he didn't think we could expect this kind of work from a lay
mayor. Fe and Atkinson said this does not change to form of government.
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COUNCIL WORKSHOP
5:00 PM OCPOBER 24, 1988
• Councilman Hopkins read from the Study Ccundssion Report on what the
administrator's duties are as set by ordinance. Clerk/Treasurer claimed we don't
have that alternate form of government.
Councilwoman Haffernan said the department heads should be accountable to the
mayor and that form of government should work. Schindler said we have
professional department heads to advise the mayor.
Saverud said a mayor is elected for four years, an administrator can be fired at
any time if he doesn't perform.
Councilman Nystul felt the concern is we have a multi -million business without
a professional administrator. We need assistance with planning, direction and
accountability.
Council President Saverud suggested we see what is the best administrative format
we can have for the City of Kalispell. He asked that Councilmen Atkinson and
Furlong, former Study Cca mission nenbers, and anyone else who wants to sit with
those two, to meet with the City Attorney and see what we legally can do.
Councilman Schindler felt we should rely on our present management and require
that their performances be satisfactory. Nystul agreed but felt we need
professional assistance to the mayor and council in addition.
Saverud also asked the D;ayor to work on this committee and he agreed. He asked a
report be brought back by the end of kiovember or the first of December so we can
have som kind of statement prior to January 1.
5. Leaf Pickup
Mayor Kennedy reported citizens are being asked to bag the leaves. The city will
have a leaf pickup later. It's very expensive for our equipment to pick up the
leaves.
6. Russian Mayors
Councilman Saverud reported some Russian Mayors are visiting Washington D. C., and
Mayor Kennedy has been invited to attend. If the Council thinks he should go, he
doesn't have any budget and Saverud asked if any council member knows of any
coammity group which may be able to provide support.
Several suggestions were made of groups which may be able to give scmething.
Councilman Saverud will approach the Chanber. Councilman Furlong will check with
School District #5.
The meeting adjourned at 8:58 pm.
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