04/04/05 City Council MinutesA REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:00
P.M., MONDAY, APRIL 4, 2005, 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 James Patrick, City Attorney Charles Harball, City Clerk Theresa White,
Community Development Director Susan Moyer, Finance Director Amy Robertson, Fire Chief
Randy Brodehl, Human Resources Director Terry Mitton, Parks and Recreation Director Mike
Baker, Police Chief Frank Garner, Public Works Director Jim Hansz, and Tri-City Senior Planner
Narda Wilson.
Mayor Kennedy called the meeting to order and led the Pledge of Allegiance.
A. AGENDA APPROVAL
Larson moved approval of the Agenda. The :notion was seconded.
There was no discussion.
The motion carried unanimously upon vote.
B. CONSENT AGENDA APPROVAL
Council Minutes -- Regular Meeting March 21, 2005
2. Award Bid — Annual Sidewalk and Curbing Contract
Only one bid was received for the 2005 sidewalk and curbing construction.. Staff is
recommending the bid be awarded to Sandon Construction of Kalispell.
3. Approve Engineering Services Agreement
Staff is requesting approval of an engineering services agreement with Robert Peccia &
Associates of Helena for engineering services related to the design and construction of water
system improvements.
4. Proclamation — Child Abuse Prevention and Awareness Month
Atkinson moved approval of the Consent Agenda. The motion was seconded.
Hafferman moved to remove Consent Agenda Item #3 to the regular Agenda as Item E/15.
The motion was seconded.
There was no discussion.
The motion carried upon vote with Gabriel, Hafferman, Herron, Kenyon, Larson, Olson.,
Peters, and Mayor Kennedy voting in favor, and Atkinson voting against.
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April 4, 2005
Page I
The main motion as amended carried unanimously upon vote.
C. STUDENT ISSUES
None.
D. PUBLIC COMMENT
Ryan Mitchell, Robert Peccia and Associates, stated he's available to answer any questions
concerning the Engineering Services Agreement for the design and construction of water system
improvements.
Robert Morse, 301 Learn Lane, spoke in opposition to the annexation, zoning, and preliminary plat
approval of Lone Pine Subdivision. He said the staff report indicates Learn Lane is paved and it's
not, it's just dial and "full of chuck holes". Morse also commented that his property is on the
southwest corner of this proposed subdivision and because of confusion with the property line dating
back many years, his houses and out buildings were built to what they thought the property line was,
but which was actually thirty to forty feet west of where the property line really is. He said because
of that, when this subdivision is built, he's going to have buildings sitting right against his property
line and he won't have any setback, asking if that means he's going to have to move his buildings.
Morse said Condition #8 of the preliminary plat approval requires a 10-foot buffer between the
northern tier of townhouses and the property boundary to the north, but doesn't require any buffer
with his property. He said he has spoken with several people on the issue, but it doesn't seem like
anyone wants to address it so he's leaving it up to the Council.
Tom Waters, Whitefish, said he represents Lone Pine Development and is available to answer
questions.
Greg Goode, 1639 Highway 2 West, spoke in support of the City Airport bond issue, stating if the
City invests money in the airport people will want to lease land for hangars and businesses will want
to be located there.
Lee Berger, 208 Riverview Drive, said he's available to answer any questions concerning Agenda
item E/12, Carmine Mowbray's. zone change request.
Lex Blood., 844 3rd Avenue East, thanked the Council for the time and thoughtfulness they have
devoted to the airport bond issue. He commented the Council's openness and willingness to hear
and take into account various ideas encourages public participation and encouraged the Council to
continue with that process.
Patty Mason, 300 Learn Lane, said she's concerned with the Lone Pine Subdivision proposal and the
properties adjacent to Learn Lane. She commented she's afraid people are going to access Learn
Lane through the fields, and not use the designated access.
Bill Yarus, 425 Ponderosa Lane, stated he's available for questions concerning Agenda item E/11,
Zoning Ordinance Text Amendment.
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April 4, 2005
Page 2
E. REPORTS RECOMMENDATIONS AND SUBSEQUENT COUNCIL ACTION
Ell. RESOLUTION 4990 — CALLING FOR THE SALE OF BONDS — AIRPORT
IMPROVEMENTS
This resolution authorizes the negotiated sale of up to $2,000,000 of Tax increment Urban Renewal
Revenue Bonds for the Kalispell City Airport Redevelopment Plan. Resolution 4990 was tabled at
the March 21st meeting.
Atkinson moved to remove Resolution 4990 from the table. (A resolution relating to up to
$2,000,000 urban renewal airport tax increment Revenue Bonds, Series 2005; authorizing the
issuance and private negotiated sale thereof for the purpose of financing a portion of the costs
of an Airport Urban Renewal project subject to ratification and approval by the City Council;
and delegating certain duties related thereto the Mayor, City Manager and Finance Director.)
The motion was seconded.
Patrick commented he spoke with Bridget Ekstrom from D.A. Davidson and a bond of less than
fifteen years is not feasible with the assets the City has on hand. He added, however, that there is a
mandatory provision in Montana law for a call at seven years, which means the City does have the
option to call the bond in seven years if it so desires.
Harball explained that at the request of the Council, language has been added to the resolution
stating: "The City has the further authority and discretion, during the term of the tax increment
district, to rebate tax increment received by the City to the County and School District, if, after the
issuance of the bonds, funds become available within the urban renewal account that are in excess of
those funds pledged to retire the bonds". He said if that is satisfactory, an amendment will need to
be made, adding that the language itself may be changed somewhat when he can talk with bond
counsel but the intent will remain the same.
Mayor Kennedy asked if the possibility of an early call needs to be added also.
Harball responded an early call will be included as a matter of Montana law.
Larson noted the proposed amendment mentions School District. He asked if Flathead Valley
Community College needs to be added.
Harball said the language may be changed to indicate "taxing authorities" which would include
everyone.
Hafferman read the following written statement: "During the March 28 council meeting I asked for
something from FAA stating that funds are available. Letters were sent to the previous city manager
that were not shared with this council. I thank present City Manager Patrick for promptly making
these letters available. A letter dated May 13, 2003, from FAA to [Chris] Kukulski, pertaining to the
Airport Improvement Plan (AIP), states, in part, as a condition of their approval: `Approval of the
plan does not indicate that the United States will participate in the cost of any development proposed
other than that which is presently programmed'. Pertaining to the question of whether or not FAA
would participate in the finding for rectifying the KGEZ towers problem, a letter dated January 22,
2004, from FAA to Kukulski states in part: `During our,fuly 10, 2003 meeting in Helena, we stated
Kalispell City Council Minutes
April A, 2005
Page 3
that FAA would support funding of the tower removal in FY--2004 provided that costs are reasonable
and an application for the tower removal is received by February 15. It is evident from the
December letter and memo from your attorney that the tower removal will most likely not occur this
.:o.»- nY in the near future 0ivpn thv dpmand fnr the limitvrl a.rnatint nfAIP ficndc_ fprlpra.l fianrlin.lx fnr
the land acquisition will not be available until final costs for the tower removal have been agreed to
by the FAA and a detailed plan for removal has been provided and accepted by the FAA'. The
foregoing pertains to the KGEZ towers. We have absolutely NO funding assurance from FAA at this
point of the project. We're apparently on a list, but that is meaningless. I assume there are
negotiations going on for acquisition of properties and/or leases to accommodate FAA requirements.
now much this will cost is unknown to this council. From statements made at the various meetings,
this could far exceed the estimates indicated in the Final EA. The city's share was also to come from
the $1 million from the sale of airport land. We need to fulfill FAA. requirements spelled out in the
Final EA before we charge headlong into any development that cannot be financed with the $1
million from the land sale. Why must we charge headlong into this project without following even
the most basic steps for project development? We have heard there is a safety problem. How long
has this safety problem existed? 1 can't imagine it being any more unsafe or of higher priority than
the unsafe condition that faces the general public daily on Northern Lights Boulevard north of Three
Mile Drive. That unsafe condition has existed since the 1980's. I don't see any headlong rush to
improve this unsafe condition that affects our city residents. One good thing has come out of this
controversy. Many, many more people are becoming familiar with tax increment funding. This good
thing also opens up a new can of worms. When Urban Renewal Districts are created, the school
district and county residents must also raise taxes to make up the moneys skimmed into the TIF. So
in addition to city residents, county and school district residents can now petition for the redress of
grievances effected by the Urban Renewal District. There is street talk about these possibilities
already. Many people spoke or sent e-mails for the public hearing. A number spoke only for or
against the airport and that was not the purpose of the hearing. Those that addressed the sale of
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us, whIcll was the PUT —pose, were ovci whellllin ly against Lilt, talc. 11 calla t VUMAI aIILJ t UVJIL.:
support they must listen when the public speaks. We're heading down the wrong path if this
resolution is approved."
Peters moved to amend Section 1.01 of Resolution 4990 by adding: "The City has the further
authority and discretion, during the term of the tax increment district, to rebate tax increment
received by the City to the County and School District, if, after the issuance of the bonds, funds
become available within the urban renewal account that are in excess of those funds pledged to
retire the bonds", or similar language as accepted by bond counsel. The motion was seconded.
Herron asked if the amendment should also include changing "20" years to "15" years in Section 2.
Peters said he would prefer that to be in a separate motion.
Larson asked if the amendment should include the addition of Flathead Valley Community College.
Gabriel commented FVCC is a school district.
Peters said that is why he included "or similar language as accepted by bond counsel".
Herron suggested adding an "s" to School District to make it School Districts.
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April 4, 2005
Page 4
Peters accepted the addition as a friendly amendment, adding he would also like to include that the
City's General Fund is also eligible for a rebate. The second concurred.
There was no opposition.
Hafferman said he will vote against the amendment, not because he's against the change, but because
he's against the bond sale because the City is still using tax increment funding and going outside the
one million dollars that was committed.
Atkinson said he will vote against the amendment because the City has the ability to rebate funds at
any time to the taxing authorities. He stated he feels it's a useless amendment.
Herron disagreed, commenting the amendment holds the City's feet to the fire, and future Councils,
if everything goes "according to Hoyle".
Atkinson retorted the amendment is short sighted as is some people's views of a tax increment
district. He said it's been said a tax increment district keeps money away from other taxing
jurisdictions, but that's only for a short period of time. Atkinson said the fact of the matter is the
reason tax increment districts were put into being is to encourage economic developennent, and when
the district sunsets, the taxing jurisdictions get more money back from that point forward than if the
tax increment district never existed.
Peters said the dilemma is whether to extend the tax increment district past the point where it's
already built up the economics of an area, and after that, you're taking advantage of the district. He
noted that Section 1.03 lists five goals and objectives. Once those are done, Peters said he contends
that the intent of the TIF district is done. He said the intent of the amendment is to specifically make
everyone aware that the money can be rebated.
The amendment carried upon roll call vote with Gabriel, Herron, Kenyon, Larson, Olson,
Peters, and Mayor Kennedy voting in favor, and Atkinson and Hafferman voting against.
Kenyon moved to amend the resolution by changing the bond term of "20" years in Section
1.06 and Section 2 to "15" years. The motion was seconded.
Atkinson commented we need time to make the TIF district work and he will be voting against the
amendment.
The amendment carried upon roll call vote with Gabriel, Herron, Kenyon, Larson, Olson,
Peters, and Mayor Kennedy voting in favor, and Atkinson and Hafferman voting against.
Peters asked for an explanation of why the City is bonding for two million if the cost of the project is
1.7 million.
Patrick said whenever you bond there are other costs involved such as closing costs and attorney
fees, and in addition, you have to have a reserve. He said the two million dollars covers everything.
Peters commented, for the record, that the Council has committed one million dollars to the airport
and the reason they are agreeing to this two million dollar bond is to use TIF funds to jump start the
project. He said he wants to make sure the commitment stays at one million dollars and that any
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April 4, 2005
Page 5
monies received from the FAA or taxes are used to retire the bond, and not put into the airport
operational fund.
l .arson said he will support the resolution because he "has full confidence we will not exceed the
million dollars", adding he appreciated the amendments because he feels they raised the confidence
level of other Council members.
Olson also spore in support of the resolution, adding that if Phase I is the only phase completed, it
will be a great improvement.
The motion as amended twice carried upon roll call vote with Atkinson, Gabriel, Herron,
Kenyon, Larson, Olson, Peters and Mayor Kennedy voting in favor, and Hafferman voting
against.
E/2. CONDITIONAL USE PERMIT — BLUE HERON ESTATES CLUSTER
DEVELOPMENT
This is a request by Charles and Mickey Lapp for a conditional use permit to allow the conversion of
five single family .residential lots to five two unit townhouse lots within the Blue Heron Estates
subdivision. The Planning Board recommended approval of the conditional use permit to allow four
townhouse lots instead of five.
Larson moved Council accept the Planning Board's recommendation and approve the
conditional use permit for Charles and Mickey Lapp subject to conditions. The motion was
seconded.
Wilson jZave a staff report and answered questions.
The motion carried unanimously upon vote.
E/3. RESOLUTION 4996 —ANNEXATION —COTTONWOOD PARK SUBDIVISION
This is a request by Philip and Barbara Blandford for annexation of approximately ten acres of
property located on the northwest corner of Three Mile Drive and Stillwater Road.
Herron moved Resolution 4996, 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 as Assessor's Tract 4C in Section 2, Township 28 North, Range 22 West,
P.M.M., Flathead County, Montana, to be known as Cottonwood Park Addition No. 358; to
zone said property in accordance with the Kalispell Zoning Ordinance, and to declare an
effective date. The motion was seconded.
Wilson gave a staff report on the annexation, zoning, and preliminary plat for Cottonwood Park
Subdivision.
Wilson, Patrick and Harball answered questions.
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Page 6
Atkinson commented he thinks it's great that the parkland with this development will be meshed
with the parkland in Blue Heron to make a larger park.
The motion carried unanimously upon roll call vote.
E14. ORDINANCE 1529 — INITIAL ZONING— COTTONWOOD PARK SUBDIVISION
1ST READING
Philip and Barbara Blandford are requesting an initial zoning designation of R-3, Urban Single
Family Residential, on approximately ten acres of property located on the northwest corner of Three
Mile Drive and Stillwater Road.
Herron moved first reading of Ordinance 1529, 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 4C in Section 2, Township 28 North., Range
22 West, P.M.M., Flathead County, Montana (previously zoned County AG-80, Agricultural)
to City R-3 (Urban Single Family Residential), in accordance with the Kalispell Growth Policy
2020, and to provide an effective date. The motion was seconded.
Wilson answered questions.
The motion carried unanimously upon roll call vote.
E15. RESOLUTION 4997 — PRELIMINARY PLAT - COTTONWOOD PARK
SUBDIVISION
Philip and Barbara Blandford are also requesting preliminary plat approval of Cottonwood Park
Subdivision, a 36-lot residential subdivision on approximately ten acres of property located on the
northwest corner of Three Mile Drive and Stillwater Road.
Atkinson moved Resolution 4997, a resolution conditionally approving the preliminary plat of
Cottonwood Park Subdivision, more particularly described as Assessor's Tract 4C in Section
2, Township 28 North, Range 22 West, P.M.M., Flathead County, Montana. The motion was
seconded.
Peters commented that Condition 419 states: "A note shall be placed on the face of the final plat
which waives protest to the creation of a special improvement district for upgrade of roads in the
area to City standards which are impacted by this subdivision". He said this subdivision will front
Stillwater Road and Three Mile Drive and asked if the terminology "a special improvement district"
exempts the subdivision from being part of two special improvement districts; one for each road.
Removing the "a" and adding an "s" to district was accepted as a friendly amendment to Condition
#f9.
The motion carried unanimously upon roll call vote.
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Page 7
E/6. RESOLUTION 4998 — ANNEXATION — LONE PINE SUBDIVISION
This is a request by Lone Pine Development, LLC for annexation of approximately twenty-three
acres of property located south of Foys Lake Road and west of Valley View Drive.
Kenyon moved Resolution 4998, 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 13, Township 28 North, Range 22
West, P.M.M, Flathead County, Montana, to be known as Lone Pine Addition No. 359; to zone
said property in accordance with the Kalispell Zoning Ordinance, and to declare an effective
date. The motion was seconded.
Wilson reported this proposal is "breaking new ground" for annexation of property because of it's
location, which is west of Valley View Drive, south of Foys Lake Road, and east of Learn Lane. She
said the property lies at the base of Lone Pine State Park and the applicants are proposing a PUD
with an R-2 zoning designation for 81 lots that consists of 25 single family lots, 56 two unit
townhouses, and a 6.84 acre open space area. Wilson said primary access to the subdivision would
be from Valley View Drive with a secondary emergency access via Learn Lane. She noted that
concern was expressed at the Planning Board hearing regarding the density, location, and extension
of utilities to this area that is not contiguous to the City. She said there is nothing in the statutes that
prohibits property to be annexed that is not contiguous, however, it has been a policy that the City
has tried to implement in the past, but found it was impractical. The nearest City limits in this case
are Meridian Road and 7th, or Sunnyside Drive.
Peters said the dilemma be has with this project is that there's a lot of land with houses surrounding
this property which will be difficult to annex and therefore it's going to be hard to make this property
contiguous in the future. He said if this was on the other side of Foys Lake Road, an area that will
eventually infill, it would be a different issue, but it's going to be a challenge to provide services to
the area around this subdivision because it's already built out.
Mayor Kennedy commented the possibility of the other area across Foys Lake Road being sewered is
pretty good.
Olson asked where the sewer lines to this property will come from.
John Schwarz, Schwarz Engineering, explained the sewer will come down from the southside
connection, either back to Meridian or Sunnyside. Schwarz commented that when property is
sewered, you start at the bottom and go up and therefore this is the first piece of property you should
be annexing.
Olson said he's still concerned the City is building an island, adding it's quite a distance for police
and fire to respond.
Patrick agreed this is a distance out, however, the City has been accused of not running a regional
sewer plant and not taking responsibility for growth around the City. He said with the density
proposed, he feels this subdivision has to be part of the City, and eventually the infill will happen.
Olson said he agrees, but maybe this is the time to develop an annexation district rather than
annexing at this time.
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April 4, 2005
Page 8
Wilson noted this property is less than half a mile from the City limits and there is interest from
adjoining landowners closer to the City limits that are interested in connecting to the sewer once it's
installed. She said she thinks the Council will be surprised how quickly development will occur once
the sewer is available.
Olson commented he agrees with extending the sewer, but he would still like to postpone annexation
until the growth occurs.
Wilson said it would be a policy decision whether the Council wants to develop an annexation
district instead.
Patrick added it will be several years before this subdivision is built out and in that amount of time
he believes the infill will occur. He said he would rather save "that silver bullet" for something
larger.
Peters stated the services he's more concerned with in connection to this subdivision are the police
and fire protection. He said the Council has talked about annexation districts for three years and he
feels it would be better to try an annexation district on something like this that won't be built out for
several years.
Hafferman said he could go either way on this issue, but he's rather see them sign a waiver to protest
annexation and give them sewer and water.
Mayor Kennedy encouraged the Council to vote in favor of the annexation, stating at the rate growth
is occurring in the community lots are being sold faster than the plats are being filed and she feels the
infill will occur quickly.
Atkinson commented he's disconcerted to hear the Council discuss annexation districts and waivers
of annexation. when "these people are corning in asking to be annexed, and that it is this close, and
that you've seen the growth going on". He said his only concern with the project is that there's only
one access.
Mayor Kennedy, in response to public comments, noted that only a portion of Learn Lane is paved,
not all of it as indicated in the staff report; people will not be allowed to access Learn Lane from the
back of their property through the field; and even though there is no setback on Morse's property,
there will be a setback of ten feet in this subdivision which means there will be ten feet separating
the buildings on both properties. She said its unfortunate Morse's buildings were built right on the
property line, but there's nothing the City can do about that.
Morse commented he would just like to see a buffer required between the two properties.
Wilson noted a buffer could be required between Morse's property by adding "and the southwest" in
Condition #8.
Mayor Kennedy asked for a friendly amendment with that change.
White pointed out the conditions are not included in the annexation resolution.
The motion carried unanimously upon roll call vote.
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April 4, 2005
Page 9
E/7. ORDINANCE 1530 — INITIAL ZONING —.LONE PINE SUBDIVISION
Lone Pine Development, LLC is requesting an initial zoning designation of R-2, Single Family
Residential, with a Planned Unit Development overlay on the property listed above.
Atkinson moved first reading of Ordinance 1530, an ordinance to amend Section 27.02.010,
Official Zoning Map, City of Kalispell Zoning Ordinance, (Ordinance No. 1460), by zoning
certain real property as more particularly described on Exhibit "A", located in Section 13,
Township 28 North, Range 22 West, P.M.M., Flathead County, Montana (previously zoned
County R-1, Suburban Residential) to City R-2 (Single Family Residential), with a Planned
Unit Development overlay in accordance with the Kalispell Growth Policy 2020, and to provide
an effective date. The motion was seconded.
Olson suggested Council add a requirement for a berm between this subdivision and Morse's
property.
Atkinson moved to amend Condition # 8 to read: "That a minimum. 10-foot buffer shall be
established between the north tier of townhouses and the property boundary to provide
screening and buffering for the properties to the north and the southwest". The motion was
seconded.
Larson said provisions have been made for a berm along the northern property line, but some
residents have commented they would rather see a fence. He asked if a fence could be considered.
Wilson said either fencing or berming would be appropriate. She suggested amending the wording to
read "This shall be in the form of berming, fencing, landscaping, or a combination".
Atkinson accepted a friendly amendment to his amendment to have Condition #8 now read:
"That a minimum 10-foot buffer shall be established between the north tier of townhouses and
the property boundary to provide screening and buffering for the properties to the north and
the southwest. This shall be in the form of berming, fencing, landscaping, or a combination
thereof".
The second concurred.
The amendment carried unanimously upon vote.
There was no further discussion.
The main motion as amended carried unanimously upon roll call vote.
E/8. RESOLUTION 4999 — PRELIMINARY PLAT -- LONE PINE SUBDIVISION
Lone Pine Development, LLC is also requesting preliminary plat approval of Lone Pine Subdivision,
an 81-lot subdivision that includes 25 detached single family lots and 56 two -unit townhouse lots on
the property listed above.
Kenyon moved Resolution 4999, a resolution conditionally approving the preliminary plat of
Lone Pine Subdivision, as more particularly described on Exhibit "A", located in Section 13,
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April 4, 2005
Page 10
Township 28 North, Range 22 West, P.M.M., Flathead County, Montana. The motion was
seconded.
Atkinson moved to amend Condition #8 to read: "That a minimum 10-foot buffer shall be
established between the north tier of townhouses and the property boundary to provide
screening and buffering for the properties to the north and the southwest. This shall be in the
form of berming, fencing, landscaping, or a combination thereof". The motion was seconded.
The amendment carried unanimously upon vote.
Larson said Morse also expressed concern about his well and what will happen to the water from the
development. He said even though he doesn't have any concerns about the groundwater, he does
hope that steps can be taken to protect Morse's well.
I lafferman noted the Planning Board minutes state: "Wilson explained the applicants want to extend
water and sewer from Meridian Road to the site, and the map shows access off of Valley View
Drive, specifically to access the subdivision, and that public works may loop the water from
Sunnyside to connect there for fire flows". He said the City's Standards for Design and Construction
require that the developer provide the fire flow.
Hansz said staff is constantly looking at ways to mare arrangements with developers to take an
extension off of what they're proposing in order to provide a general benefit to other areas as well.
Hafferman said he still doesn't understand why we would use ratepayers' money for a subdivision.
The developer is supposed to provide the fire flow.
Hansz said they will be providing the fire flow to the subdivision. Ile said they haven't gotten into
details yet to find out whether the idea is feasible, but the objective is to close loops and improve the
level of service for all customers. Hansz said it may or may not work and no decision has been
made.
Hafferman commented he doesn't believe the City should be spending ratepayers' money for "stuff'
like this" and developers should be extending all of the lines.
The main motion as amended carried unanimously upon roll call vote.
E/9. RESOLUTION 5000 — ANNEXATION —MISSION NORTHWEST DEVELOPMENT
LLC
Mission Northwest Development, LLC is requesting annexation of approximately one half of an acre
located on the west side of 7th Avenue West south of 11th Street West and Sunnyside Drive.
Atkinson moved Resolution 5000, 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 as Lot 2 of Western Acres located in Section 18, Township 29 North,
Range 21 West, P.M.M, Flathead County, Montana, to be known as Mission Northwest
Addition No. 360; to zone said property in accordance with the Kalispell Zoning Ordinance,
and to declare an effective date. The motion was seconded.
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April 4, 2005
Page 1 t
Wilson gave a staff report.
There was no discussion.
The motion carried unanimously upon roil call vote.
E110. ORDINANCE 1531 — INITIAL ZONING — MISSION NORTHWEST
DEVELOPMENT, LLC —1ST READING
Mission Northwest Development, LLC is requesting a zoning designation of R-4, Two Family
Residential, on the west side of 7th Avenue West south of 11th Street West and Sunnyside Drive.
Kenyon moved first reading of Ordinance 1531, 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 Lot 2 of Western Acres located in Section 18, Township 29
North, Range 21 West, P.M.M., Flathead County, Montana (previously zoned County R-5,
Two Family Residential) to City R-4, (Two Family Residential), in accordance with the
Kalispell Growth Policy 2020, and to provide an effective date. The motion was seconded.
There was no discussion.
The motion carried unanimously upon roll call vote.
E/11. ORDINANCE 1532 — ZONING ORDINANCE TEXT AMENDMENT — 1ST
READING
Yarus Properties, LLC is requesting HVAC businesses be included in the B-3, Community Business,
zoning district as a permitted use. HVAC stands for "Heating, Ventilation, and Air Conditioning".
Larson moved first reading of Ordinance 1532, an ordinance amending the Kalispell Zoning
Ordinance (Ordinance No.1460), by amending the B-3, Community Business District, to allow
Heating, Ventilation, and Air Conditioning (HVAC) Retail Sales and Services as a permitted
use and declaring an effective date. The motion was seconded.
Wilson gave a staff report explaining the amendment only covers HVAC retail sales and service.
She said the highest impact related to this type of business, the sheet metal shop, is not part of the
amendment.
Atkinson asked why a conditional use permit wasn't considered.
Wilson said a conditional use permit was not available. She said this type of business is relatively
low impact compared to other businesses in a B-3 zone,
Mayor Kennedy asked if there's an assurance that there won't be storage of heating units outside the
building.
Wilson answered the B-3 zoning regulations specifically states there will no outdoor storage or
display of materials.
Kalispell City Council Minutes
April 4, 2005
Page 12
Olson commented he feels it's a good, clean business and he wouldn't mind them for a neighbor.
Larson said he spoke with some of the neighbors this morning and they are happy with the use and
that the building is 2oini! to be ungraded.
Herron asked why the business wasn't included in the zone in the first place.
Wilson said she feels it was probably an oversight.
Mayor Kennedy said she would agree if the use was simply for this property, but the text amendment
allows for this type of business in any B-3 neighborhood.
Peters said he would also feel more comfortable if this was a conditional use instead of a permitted
use, but he said he could go either way.
Olson reiterated that staff concluded it probably should have been included in the first place.
Herron said "there are probably a whole lot of things that should be in B-3. Why have B-3 at all, let's
just make everything B-2. This zone is kind of arbitrary"
The motion carried unanimously upon roll call vote.
E/12. ORDINANCE 1533 -- ZONE CHANGE RE VEST - 1ST READING
Carmine Mowbray is requesting a change in zoning from B-1, Neighborhood Buffer District, to B-2,
General Business, on approximately 1 acre located on the east side of North Meridian Road, north of
West Wyoming and south of Liberty Street.
Larson moved first reading of Ordinance 1533, 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 Lots 1 through 4, Lloyd's Addition, a platted subdivision in
Section 7, Township 28 North, Range 21 West, P.M.M., Flathead County, Montana (previously
zoned City B-1, Neighborhood Buffer District) to City B-2 (General Business), 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 applicant would like to rezone the property to B-2 to allow
for a greater number of uses. She said the area is developed with a single lineal building on three
lots and because the property is already developed, the building will limit the types of uses that will
be able to occupy the area.
Olson asked if this change is going to cause any problems with this area which is considered a buffer
zone.
Wilson said it might if it was undeveloped property, but because it's already built out staff doesn't
feel there will by any problems.
Atkinson said just because it's built out now, doesn't mean it's always going to be built out and he'd
hate to see a car lot right there. He asked if the neighbors have expressed any concerns.
Kalispell City Council Minutes
April 4, 2005
Page 13
Wilson answered nobody appeared at the public hearing.
The motion carried unanimously upon roll call vote.
E113. RESOLUTION 5001 — BOARD OF INVESTMENTS LOAN — METERS AND
HYDRANTS
This resolution authorizes a loan with the Board of Investments to purchase meters and hydrants for
Phase III of the meter replacement program.
Kenyon moved Resolution 5001, a resolution relating to $517,000 Water System Revenue
Bond, Series 2005; authorizing the issuance and daring the terms and conditions thereof and
the security therefore. The motion was seconded.
Patrick explained the loan includes $360,000 for meters, $1.10,000 for the hydrants, plus a $47,000
reserve that is required by the Board of Investments.
Kenyon said when this program was started a couple of years ago, staff indicated an increase in
revenues with the new replacement program. He asked if there are any results available.
Hansz said a comparison on a small scale was made for residential meters and the results show an
average increase in metered consumption of 17.8%. (Consumption results are attached and by this
reference is made a part of the official record)
There was discussion concerning meter pits.
Hafferman noted the current water budget shows an ending balance on June 30th of 1.7 million. He
said it looks like the City should be using its own money rather than paying 3.8% to the Board of
Investments.
Robertson responded that most of the money is from connection fees which are designated for
expansion of the system. She said this is for replacement which is an operating cost.
Hafferman said the City should be getting away from borrowing and we would be better off saving
until you have enough money accumulated.
Peters asked why something like this isn't planned for.
Hansz said a monthly fee is collected for meter replacement but it hasn't been in place very long. He
said there isn't a significant amount of money, however, those funds have been drawn upon making
the loan smaller than it would be if they weren't available.
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.
E/14. RESOLUTION 5002 — BOARD OF INVESTMENTS LOAN — FIRE TRUCK
This resolution authorizes participation in the Board of Investments loan program for the purchase of
a fire engine at a variable rate starting at 3.8%.
Kalispell City Council Minutes
April 4, 2005
Page 14
Larson moved Resolution 5002, a resolution authorizing participation in the Board of
Investments of the State of Montana Annual Adjustable Rate Tender Option Municipal
Finance Consolidation Act Bonds (Intercap Revolving Program), approving the form and
terms of the loan agreement and authorizing: the execution and delivery of documents related
thereto. The motion was seconded.
There was discussion concerning a variable rate versus a fixed rate.
Olson commented he's concerned that the cap is 15% and suggested tabling the resolution until it
can be determined whether a fixed rate can be obtained.
Herron clarified even though the cap is 15%, the adjustable rate can only increase 1.5%per year. He
said he understands Olson's concern, but he doubts the City will get to 15% during the life of this
loan.
Patrick added the loan is callable at any time and if it looks like the interest rate is getting too high
the City can pay if off.
The motion carried unanimously upon roll call vote.
E115. APPROVE ENGINEERING SERVICES AGREEMENT Moved from Consent
Agenda)
Staff is requesting approval of an engineering services agreement with Robert Peccia & Associates
of Helena for engineering services related to the design and construction of water system
improvements.
Larson moved the Council approve the Engineering Services Agreement and Tax Order #1
with Robert Peccia & Associates of Helena, Montana, for engineering services related to design
and construction of City water system improvements. The motion was seconded.
Hansz gave a staff report.
Haffe,rman commented any facility that affects sight, smell, or hearing has to go through a rigorous
public comment period prior to construction. He said personally he thinks elevated water tanks are
beautiful, but not too many people share that opinion. Hafferman said the site is the biggest problem
the City will face and we should get started now identifying a site, negotiating for its sale, and
proceeding with the public end of the process, adding that can be done in-house.
Peters asked why the City is "putting the cart before the horse" and not locating a site first.
Hansz said the scope of services includes the location of a site and subsequent meetings. He agreed
with Hafferman that the site is extremely important, but disagreed it can be done properly in-house.
Hafferan reiterated the siting of a reservoir doesn't need to be an engineering function, adding that
a realtor would be more functional than an engineering firm.
The motion carried upon roll call vote with Atkinson, Gabriel, Herron, Kenyon, Larson,
Olson, and Mayor Kennedy voting in favor, and Hafferman and Peters voting. against.
Kalispell City Council Minutes
April 4, 2005
Page 15
F. MAYOR/COUNCIL/CITY MANAGER'S REPORTS tNo Action
Mayor Kennedy announced there will be a ceremony celebrating the volunteers for the CASA
Droaram starting at 7:00 a.m. this Thursday at the Flathead County Justice Center.
Patrick introduced the City's newest hire, Human Resources Manager Terry Mitton, who carve to the
City from the Columbia Falls Aluminum Plant where he worked for 25 years.
Mayor Kennedy, with agreement from the Council, canceled the work session and asked that the
items scheduled for this evening be moved to the April 11th agenda.
I. ADJOURN
The meeting was adjourned at 10:03 p.m.
ATTEST:
//
Theresa White
City Clerk
.Approved April 18, 2005
Kalispell City Council Minutes
April 4, 2005
Wage 16
RESIDENTIAL METER CHANGE -OUT CONSUMPTION RESULTS
Address
Consumption
1 Yr Prior
to Meter
Change -Out
Consumption
1 Yr After
Meter
Change -Out
Increase/
Decrease
in Consumption
Percent
Change In
Consumption
1
35 4th Ave East
30,000
47,000
17,000
56.7%
2
345 4th Ave East
42,000
56,000
14,000
33.3%
3
412 4th St East
53,000
69,000
16,000
30.2%
4
825 10th St East
45,000
47,000
2,000
4.4%
5
235 4th Ave East
89,000
110,000
21,000
23,6%
6
102 Northern Lights Blvd
22,000
24,000
2,000
9.1%
7
317 9th Ave West
26,000
40,000
14,000
53.8%0
a
226 9th Ave West
72,000
83,000
11,000
15.3%u
9
308 Meridian Road
23,000
24,000
1,000
4.3%
10
1221 3rd St West
12,000
19,000
7,000
58.3%
11
1313 3rd St West
12,000
12,000
0
0.0%0
12
1324 3rd St West
54,000
54,000
0
0.0%
13
516 Woodland Ave
66,000
71,000
5,000
7.6%
14
1120 4th Ave West
65,000
67,000
2,000
3.1%
15
1932 Darlington
47,000
45,000
(2,000)
-4.3%fl
16
2002 Airport Rd
35,000
42,000
7,000
20.0%
17
501 Sylvan Dr
58,000
57,000
(1,000)
-1.7%0
i8
420 Sylvan Dr
73,000
101,000
28,000
38.4%
19
676 2nd Ave EN
34,000
41,000
7,000
20.6%
20
393 4th Ave EN
69,000
70,000
1,000
1.4%
21
501 3rd Ave E
29,000
30,000
1,000
3.4%
22
770 4th Ave WN
53,000
50,000
(3,000)
-5.7%
23
478 2nd Ave EN
34,000
35,000
1,000
2.9%
24
486 2nd Ave EN
44,000
47,000
3,000
6.8%
25
47 W Wyoming
55,000
90,000
35,000
63.6%
26
316 Liberty St
125,000
153,000
28,000
22A%
27
396 2nd Ave EN
78,000
102,000
24,000
30.8%
28
213 Northern Lights Blvd
41,000
50,000
9,000
22.0%
29
305 Liberty St
42,000
51,000
9,000
21.4%
30
560 5th Ave WN
58,000
53,000
(5,000)
-8.6%
1 Yr Additional Consumption 254,000 Gallons
Average Increase in Metered Consumption 17.8%