11/01/04 City Council MinutesA REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:00
P.M., MONDAY, NOVEMBER I, 2004, IN THE COUNCIL CHAMBERS AT CITY HALL
IN KALISPELL, MONTANA. MAYOR PAMELA B. KENNEDY PRESIDED. COUNCIL
MEMBERS JIM ATKINSON, KART GABRIEL, BOB HAFFERMAN, BOB HERRON,
RANDY KENYON, DUANE LARSON, HANK OLSON AND JAYSON PETERS WERE
PRESENT.
Also present: City Manager James Patrick, City Attorney Charles Harball, City Clerk Theresa White,
Community Development Director Susan Moyer, Finance Director Amy Robertson, Fire Chief
Randy Brodehl, Parks and Recreation Director Mike Baker, Police Chief Frank Garner, Public
Works Director Jim Hansz, Tri-City Senior Planner Narda Wilson, and Assistant to the City
Manager Pati Heath.
Mayor Kennedy called the meeting to order and led the Pledge of Allegiance.
A. AGENDA APPROVAL
Peters moved approval of the Agenda. The motion was seconded.
Mayor Kennedy requested a motion be made adding Consent Agenda #5, "Presentation of Revolving
Loan Fund Plaque".
Gabriel moved the Presentation of Revolving Loan Fund Plaque be added as Consent Agenda
#5. The motion was seconded.
The motion carried unanimously upon vote.
Hafferinan requested a change to the Minutes on Page 6, 1 st Paragraph. He said the Minutes state:
He said the agreement made with the Evergreen Sewer District was that Evergreen would own the
lines, and the City would own the lines if, and only if, the area was ever annexed. Hafferman said
what he actually said was "only if the legislature changes the laws and makes ownership of the lines
necessary for annexation."
White said she would check the recording.
Kenyon commented he wishes people would refrain from mentioning an agreement with Evergreen
because an agreement could not have been made at any meeting outside of a regular Council
meeting.
The motion as amended carried unanimously upon vote.
B. CONSENT AGENDA APPROVAL
Council Minutes — Regular Meeting October 18, 2004
2. Award Bid -- Trench Compactor for Water and Sewer Divisions
Four bids were received for a trench compactor. Modern Machinery bid $24,971, NorMont
Equipment $29,400, and Western Plains Equipment S30,510. A bid from Western States for
$27,700 was disqualified for failure to include the required bid bond. Staff is recommending
the bid be awarded to Modern Machinery.
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Award Bid — Out Front Mower — Parks Department
Two bids were received for an out front mower for the Parks and Recreation Department.
Parsons Equipment bid $26,000 and Triple W bid $27,975, Staff is recommending the bid be
awarded to Parsons Equipment for $26,000, less an $8,000 trade-in credit, for a total
purchase price of $18,000.
4. Award Bid — Tractor/Loader/Backhoe — Parks Department
Two bids were received for a tractor/loader/backhoe for the Parks and Recreation
Department. Parsons Equipment submitted a bid of $27,000 with Triple W bidding $24,858.
Staff is recommending the bid be awarded to Triple W for $24,845, less a $6,000 trade-in
credit, for a total purchase price of $18,845.
5. Presentation of Revolving Loan Fund Plaque (Added)
Peters moved approval of the Consent Agenda. The motion was seconded.
Sandy Wheeler, Community Development Redevelopment Manager, presented a plaque to the City
of Kalispell on behalf of Rural Development, explaining the plaque represents intermediary re -
lending program funds of $520,000 which will be used for the revolving loan fund.
The motion carried unanimously upon vote.
C. STUDENT ISSUES
None.
D. PUBLIC COMMENT
Bryan Schutt, 614 2nd Avenue East, said he's applied for a position on the City Planning Board. He
stated he's an architect and requested appointment.
Scott Richardson, Airport Advisory Board Chairman, spoke in support of Agenda Item #3,
requesting the use of tax increment funds for FAA non -reimbursable items such as sewer and power.
Mayor Kennedy welcomed Kalispell's new City Manager, Jaynes H. Patrick..
E. REPORTS/RECOMMENDATIONS AND SUBSEQUENT COUNCIL ACTION
E/l. RESOLUTION 4928 - EVERGREEN DISTRICT SEWER LINES
This resolution sets a policy for sewer hook-ups outside the Evergreen sewer system.
Larson moved to remove Resolution 4928 from the table (A resolution expressing the policy of
the City of Kalispell to allow the extension of sewer limes to the Evergreen sewer system for the
conveyance through Evergreen and treatment by the City of Kalispell). The ,motion was
seconded.
The motion carried upon vote with Kenyon voting against.
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Atkinson moved Resolution 4928 be tabled indefinitely. The motion was seconded.
Peters commented if you don't have a deadline, you don't get anything done and he would prefer to
table it again to a date specific.
Harball said he fully expects the Council to continue working on this issue, however, there's some
concern that artificial deadlines will force the Council to make a decision before it's ready to.
Larson made a point of order, stating a motion to table is non -debatable.
The motion carried upon vote with Herron voting against.
E12. FINAL PLAT— LEISURE HEIGHTS PHASE 1
This is a request for final plat approval of Leisure Heights Phase 1, a 35-lot residential subdivision
and homeowners park on approximately 12 acres located on the east side of Willow Glen Drive
north of Kelly Road.
Larson moved approval of the subdivision improvement agreement and final plat for Leisure
Heights Phase 1. The motion was seconded.
Wilson gave a staff report.
Kenyon noted a condition requiting a cash -in -lieu payment equal to the cost of landscaping for a
future bike trail along Willow Glen, or a minimum 20-foot wide landscape buffer. He asked if the
"or" could divert the monies away from the bike trail.
Wilson answered "probably not". She said everyone is working very hard to make this pedestrian
trail a reality and the developer has indicated they will also partner with the City on the path.
Haffennan stated he will vote in favor of the final plat, even though he voted against the preliminary
because of his concern with the right-of-way width and because there's no sidewalk along Willow
Glen. He said for the record, he would like an answer as to why a bike path was not required with
this development, even though the Council required bike paths along every subdivision on Three
Mile Drive.
Wilson said as subdivisions increased in the outlining areas, so did the pressure on the Council to
require pedestrian access. She said it's a matter of evolving Council policy with how these
pedestrian trails are being addressed. Wilson said in her opinion, a more comprehensive trail
program in this particular area is a better choice for the Council.
Peters said he thinks it's a smart decision to work toward a comprehensive trail rather than have a
pedestrian access developed piecemeal.
The motion carried unanimously upon vote.
E13. RESOLUTION 4945 — AIRPORT INFRASTRUCTURE FUNDING
This resolution authorizes the use of approximately S227,000 in tax increment funds for several non -
reimbursable items for the City Airport such as utilities, an internal road and an electronic gate.
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Larson moved Resolution 4945, a resolution to approve the expenditure of funds for the
installation of certain infrastructure at the Kalispell City Airport. The motion was seconded.
Moyer explained the original tax increment policy created in 1990 outlined eligible activities for tax
increment districts as land acquisition, demolition and removal of structures, relocation of occupants,
public improvements, costs incurred in the exercise of urban renewal powers including urban
renewal projects, acquisition of infrastructure, administrative costs, assemblage of land and
compilation and analysis of information to determine infrastructure needs. She said despite several
changes to the TIF policy over the years, none of those eligible activities have changed. Moyer said
all of the non -reimbursable improvements proposed for the airport, such as underground utilities, fall
within the eligible activities for TIF funds and should be paid hack within three to six years.
Hafferman stated he is opposed to using taxpayers' money whether it's called tax increment or any
other name to finance development. He said City regulations require developers to install
infrastructure, and the argument that City taxpayers should finance the utilities for the airport
because the City owns it raises the question whether DNRC will be required to run the utilities to the
new fire station if located on DNRC property. Hafferman said the City, as the developer of the fire
station, will be required to run those utilities, adding new development at the airport will not put any
money into the general fund. He said all tax money will "go into the tax increment slush fund" and
the district "involving this slush fund was due to expire in two years in 2006, but they have already
taken steps to extend it another 8 years". Hafferman said he was in favor of the airport expansion
when it was going to be paid for by the sale of land and reimbursement by FAA.
Larson commented it's his understanding that the City is the developer in this case and because of
the lease payments on hangars and the expanded tax base, the money will be repaid to the fund.
Peters remarked he's never had a problem with tax increment funds, however, the proposed utilities,
engineering and utility fees, and the chain link fence, etc. should have been done long before the TIF
district was even created. He said his preference would be to use the money from land sales, rather
than the City giving a loan to itself.
Atkinson said if he owned a piece of property and a potential tenant wanted services before he would
lease it, he would probably provide them.
Peters countered if Atkinson owned a piece of property and had to run utilities in order to attract a
tenant, then "you'd pay for it out of your own pocket". He said the City's had money in the bank for
the past seven years or so and we should have been spending it on the utilities from day one.
There was discussion concerning the money from the land sales.
Herron said he agrees with Hafferman and Peters. He said the proper place to be taking this money
is from the land sale pool and not the tax increment fund.
Olson commented "this is called progress" and the "City is using money that we can use again". He
said it's just good business and if you don't do anything, then that's what you get, nothing.
Atkinson said the legislature gave the opportunity of tax increment financing to cities in order to
encourage growth and economic development. He said private business owners are only interested
in their own economic development, but cities have the responsibility to be interested in the
communities' economic development and that's the reason the cities have this tool.
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Larson agreed, stating the City will be enhancing the tax base by building the infrastructure to snake
this land more leasable. He added it will also show the FAA the City is willing to move forward
with the airport expansion.
Peters disagreed with Atkinson, stating TIF funds were not created for cities to spend, they were
created for cities to create revolving loans for businesses, adding even though the City can use the
money that's not what it was intended for.
There was discussion on TIF funds and reimbursement amounts.
Hafferman commented anyone who thinks TIF money is "corning from some unknown source and
sitting in there breeding, just doesn't understand what is happening with the taxpayer". He said the
City is costing the taxpayers a considerable amount of money.
Mayor Kennedy replied the Council is not discussing the validity of tax increment districts. She said
the TIF district is in existence and the City can utilize TIF monies for utilities, engineering and chain
link fences. She said the discussion is whether the TIF is the appropriate fund to pay for these
improvements or the money from the land sales. Mayor Kennedy said arguments have been made
for both sides and unless someone has something new to add, she suggested the Council move
forward.
There was no further discussion.
The motion carried upon roll call vote with Atkinson, Gabriel, Kenyon, Larson, Olson and
Mayor Kennedy voting in favor, and Hafferman, Herron and Peters voting against.
E14. RESOLUTION 4946 — CALL FOR PUBLIC HEARING — WOODLAND PARK
BUDGET AMENDMENT
Resolution 4946 sets a public hearing for December 6th on a proposed budget amendment to address
a $60,000 shortfall in the new Aquatics Facility Fund.
Kenyon moved Resolution 4946, a resolution calling for a public hearing to amend the annual
appropriations of the City of Kalispell, Montana, as set forth in the 2004-2005 budget adopted
by the City Council. The motion was seconded.
Hafferman commented it's his opinion the City is jumping the gun calling for a public hearing on
this matter. He said we're less than half way into the budget year and we should be able to come up
with some savings out of a seven million dollar general fund budget. Hafferman suggested waiting
until next year to determine how much money will be coming in from season passes and how much
money is going to be reimbursed for the faulty boiler.
Olson agreed, asking why now?
Robertson answered the summer season is over and even though some money will be coming in next
June, that's for next season. She said in order to do a public hearing and amend the budget it would
have to be done in May and you still wouldn't have any idea of revenue amounts. Robertson stated
she would prefer to start the new summer season at zero, instead of a deficit.
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The motion carried upon roll call vote with Atkinson, Gabriel, Kenyon, Larson, Olson and
Mayor Kennedy voting in favor, and Hafferman, Herron and Peters voting against.
EIS. RESOLUTION 4947 — RESOLUTION OF INTENTION AND CALL FOR PUBLIC
HEARING -- ANNEXING ROADS
This is a resolution of intention to annex sections of Granrud Lane, Woodland Avenue, Woodland
Park Drive and Willow Glen Drive into the City. A public hearing is scheduled for December 6th.
Atkinson moved Resolution 4947, a resolution of intention to annex territory into the City of
Kalispell, under the provisions of Title 7, Chapter 2, Part 44, M.C.A. (annexation of contiguous
government land), comprising roadways containing platted tracts of land and unplatted land,
more particularly described in Exhibit "A", directing the City Clerk to provide notice of this
resolution as provided by law, and setting a public hearing. The motion was seconded.
Hansz explained that over the past several months, the City has accepted ownership of various roads
and streets from Flathead County and private landowners. He said the annexations will allow the
City to be eligible for fuel tax monies that are now going to the County.
Hafferman stated he has a concern with annexing Willow Glen Drive. He said it's primarily being
used by County residents and he fears "we may be using an annexation of a roadway process to
surround Greenacres for a forced annexation where the residents cannot protest, and the portion
we're surrounding is not an economical development for annexation". Hafferman said he's opposed
to this resolution because Willow Glen Drive is included.
Olson asked why Willow Glen is being included.
Hansz answered Willow Glen is an interesting road. He said if annexed the City will gain fuel tax
monies, but the actual maintenance will be done by the State. Hansz said it's in the City's economic
best interest to take over all of the roads the City doesn't actually have to pay for, but can collect
revenue from.
There was further discussion.
The motion carried upon roll call vote with Atkinson, Gabriel, Herron, Kenyon, Larson,
Olson, Peters and Mayor Kennedy voting in favor, and Hafferman voting against.
E16. ORDINANCE 1516 — ADOPTING INTERNATIONAL ENERGY CONSERVATION
CODES — 1ST READING
Each time the State deletes, adopts, amends or updates codes or administrative rules, the City must
amend its ordinance to reflect those changes.
Gabriel moved first reading of Ordinance 1516, an ordinance to amend Ordinance No.1416,
adopting, by reference, the "International Energy Conservation Code", 2003 Edition, as the
energy codes of the City of Kalispell, and applicable to the jurisdictional area thereof; subject
to the amendments .made, adopted and approved by the Building Codes Bureau, Department
of Labor and Industry, State of Montana; to provide a penalty for the violation of any lawful
order issued pursuant thereto; and establishing an effective date. The motion was seconded.
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There was no discussion.
The motion carried unanimously upon roll call vote.
E/7. RESOLUTION 4948 — ADOPTING ICNIA MEDICAL SAVINGS RETIREMENT
PLAN
Resolution 4948 authorizes City employee participation in the International City Manager
Association's Retirement Health Savings Program.
Kenyon moved Resolution 4948, a resolution authorizing participation in the International
City Manager Association (ICMA) VantageCare Retirement Health Savings (RHS) Program
and authorizing such documents as :may be necessary to effectuate participation in such
employee benefits program.
Robertson explained this plan allows employees to roll vacation and sick leave severance into the
plan to use it like a flex plan with no FICA taxes or Federal Income taxes. She said the benefit to the
City is that the City doesn't have to pay the matching FICA taxes.
There was no discussion.
The motion carried unanimously upon roll call vote.
E18. RESOLUTION 4949 — AUTHORIZING NEW CITY MANAGER TO SIGN ON
CITY ACCOUNTS
This resolution authorizes the new City Manager to sign on the City's bank account.
Atkinson moved Resolution 4949, a resolution amending Resolution 4691, authorizing the City
Manager, Finance Director and City Treasurer to execute checks, drafts or other orders
withdrawing funds from City accounts with Glacier Bank. The motion was seconded.
There was no discussion.
The motion carried unanimously upon roll call vote.
E/9. BOARD APPOINTMENT - CITY PLANNING BOARD
Three letters of interest were received for one opening on the City Planning Board. Kevin Mikelson,
John Knopik, and Bryan Schutt are requesting appointment.
Mayor Kennedy recommended Schutt be appointed.
Gabriel moved the Council accept the Mayor's recommendation and appoint Bryan Schutt to
the City Planning Board. The motion was seconded.
Atkinson thanked everyone who sent letters of interest.
Herron commented he's sure Schutt is well qualified, however, he has some concerns that Schutt
wrote a letter to the Commissioners in October opposing the Glacier Mall proposal. He said he
hopes Schutt is much more open minded as a member of the planning board.
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Gabriel stated as a member of the planning board she's sure the members will make it very clear that
views need to be open during the planning process. She added she has known Schutt for years and
she believes his insight will be valuable.
The motion carried upon vote with Olson voting against.
E/lU. BOARD APPOINTMENT — CONRAD MANSION MUSEUM BOARD
Five letters of interest were received for one opening on the Conrad Mansion Museum Board. Gary
Havens, John Knopik; Janet Monk, Frances 011endike, and Jeremy Presta are requesting
appointment.
Mayor Kennedy recommended Gary Havens be appointed.
Larson moved the Council accept the Mayor's recommendation and appoint Gary Havens to
the Conrad Mansion Museum Board. The motion was seconded.
There was no discussion.
The motion carried unanimously upon vote.
E/11. BOARD APPOINTMENT —STREET TREE COMMISSION
Only one letter of interest was received for two openings on the Street Tree Commission. Betty
Albright is requesting re -appointment.
Mayor Kennedy recommended Betty Albright be re -appointed.
Gabriel moved the Council accept the Mayor's recommendation and re -appoint Betty Albright
to the Street Tree Commission.
There was no discussion.
The motion carried unanimously upon vote.
F. MAYOR/COUNCIL/CITY MANAGER'S REPORTS No Action
Mayor Kennedy announced the Leaders of Tomorrow, formally known as Flathead Youth
Leadership, will be meeting with Council members on Wednesday, November 1 Oth, on the second
floor of the Justice Center.
Haffennan asked for a work session on two items he would like to see discussed; separate rates for
pumping stations and the timing on blinking lights.
Olson commented he feels like the Council closed the door this evening on sewer service outside the
City. He said he opposes on -site sewer systems and stated he hopes this issue is brought back to the
table soon. Olson also asked for a work session to discuss covering the pool in the winter.
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Patrick expressed appreciation for the warm welcome he has received from the Council, staff and
community, and thanked Garner for helping get him situated.
Patrick encouraged everyone to vote tomorrow, stating it's a right as well as a responsibility.
G. ADJOURN
The meeting was adjourned at 8:40 p.m.
ATTEST:
Theresa White
City Clerk
Approved November 15, 2004
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