01A. Council Minutes - Regular Meeting February 16, 1999I
A REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:00
P.M. TUESDAY, FEBRUARY 16, 1999, IN THE COUNCIL CHAMBERS AT CITY
HALL IN KALISPELL, MONTANA. COUNCIL PRESIDENT GARY NYSTUL PRESIDED.
COUNCIL MEMBERS JIM ATKINSON, NORBERT DONAHUE, JOHN GRAVES, DALE
HAARR, DUANE LARSON, DOUG SCARFF, RON VAN NATTA AND CITY ATTORNEY
GLEN NEIER AND INTERIM CITY MANAGER AL THELEN WERE PRESENT. MAYOR
WILLIAM E. BOHARSKI WAS ABSENT.
President Nystul called the meeting to order and led the Pledge of
Allegiance.
AGENDA APPROVAL
Haarr moved approval of the agenda as presented with the addition
of Council discussion on House Bill 91. The motion was seconded by
Scarf. f .
There was no discussion.
The motion carried unanimously upon vote.
CONSENT AGENDA APPROVAL
A. Council Minutes -Regular Meeting February 1, 1999
B. Approval of Claims per Payables Register-$390,105.76
Atkinson moved approval of the Consent Agenda as presented. The
motion was seconded by Graves.
There was discussion.
Haarr inquired about a claim to Remax Land & Lake in the amount of
$5,600.00.
Susan Moyer, PECDD, explained several months ago the Council
approved the payment of real estate commissions for selling homes
in Teton Terrace and Woodland Court. She said the funding comes
out of program income that has previously been earned on other
grant activities.
The motion carried unanimously upon vote.
HEAR THE PUBLIC
Ann Stafford, West Arizona Street, said the group she represents
has requested an Ethics Review Board be established and wonders why
the issue has never been placed on the agenda. Stafford also asked
by what authority Mayor Boharski has to ask for legislation that
would change how the City could use tax increment monies.
Kari Finley, 445 Addison Square, the President of the Flathead
Landlord Association, asked the Council to stay out of the real
estate business and reject Hampstead Partners' loan request for Big
Sky Manor.
r/
Police Chief Frank Garner has requested the Council's recognition
that Police Officers Sean McRae and James Wardensky have
successfully completed their one year probationary periods
effective February 19, 1999.
Donahue moved the permanent appointment of James Wardensky to the
Kalispell Police Department. The motion was seconded by Atkinson.
There was no discussion.
The motion carried unanimously upon vote.
Donahue moved the permanent appointment of Sean McRae to the
Kalispell Police Department. The motion was seconded by Graves.
There was no discussion.
The motion carried unanimously upon vote.
ORDINANCE 1302 - ZONE CHANGE- JANAR MOORE, At al - 2ND READING
Janae Moore, et al., has made an application to change the zoning
classification of Lots 7 through 12, Block 233, Kalispell 4th
Addition, from RA-1 to RA-3. The change would essentially convert
the affected lots from a duplex classification to a
duplex/professional classification.
Larson moved second reading of Ordinance 1302, an ordinance to
amend Section 27.02.010, Official Zoning Map, City of Kalispell
Zoning Ordinance, (Ordinance No. 1175), by zoning certain real
property described as Lots 7-12, Block 233, Kalispell 4th Addition,
Section 7, Township 28 North, Range 21 West, P.M.M, Flathead County
(previously zoned RA-1, Low Density Residential Apartment) to RA-3
(Residential Apartment/office), in accordance with the City -County
Master Plan, and to provide an effective date. The motion was
seconded by Scarff.
There was discussion.
Van Natta stated he spoke against the ordinance at its first
reading and he said he's still concerned about changing the
character of a neighborhood that's designated for single family
homes.
Donahue said this is a classic case of spot zoning which amounts to
creating little islands of varying zoning throughout the City.
Haarr agreed, saying it's been a residential neighborhood that "has
served us well" and he feels if one part of the block is changed,
it can spread throughout the area.
Nystul noted he views the RA-3 as transitional.
3
Larson said he's been convinced by what's been said and has decided
to vote against the motion.
The motion failed upon roll call vote with Atkinson, Scarff, and
Nystul voting in favor, and Donahue, Graves, Haarr,-, Larson and Van
Natta voting against.
ORDINANCE 1303 - ZONE CHANGE - CITY OF KALISPELL & RSI LLC - P-1 TO
13-2 - 2ND READING
When the City of Kalispell subdivided Daley Field into three lots,
all but about 80 feet of the area was re -zoned from P-1 to B-2 to
accommodate commercial operations. Lot 2 of Daley Field, which was
sold to Rosauers, encompassed the 80 feet referred to. The City
sold the property on the basis of the B-2 classification which was
referred to in the offering documents.
Haarr moved second reading of Ordinance 1303, an ordinance to amend
Section 27.02.010, Official Zoning Map, City of Kalispell Zoning
Ordinance, (Ordinance No. 1175), by zoning certain real property
described as Lots 1, 2 and 3, Daley Field Subdivision, Section 20,
Township 28 North, Range 21 West, P.M.M., Flathead County
(Previously Zoned P-1, Public) to B-2 (General Business), in
accordance with the City -County Master Plan, and to provide an
effective date. The motion was seconded by Graves.
There was no discussion.
The motion carried upon roll call vote with Atkinson, Donahue,
Graves, Haarr, Larson, Scarff, Van Natta and Nystul voting in
favor.
RESOLUTION 4447 - POLICY FOR THE USE OF FUNDS IN THE WEST SIDE
URBAN RENEWAL DISTRI T
Thelen explained that City Service, at an October work session,
asked the City for help with infrastructure improvements and the
Council has directed the Staff to create a policy for the use of
funds in the West Side Urban Renewal District. He stated the
policy before the Council emphasizes the need for infrastructure in
this district because a lot of the blight in that area has been
identified as being directly related to the lack of infrastructure.
Thelen said he would like the Council to adopt the policy, and then
give the Staff some direction as to what should be in the
Developers Agreement as it relates to the City Service development.
Scarff moved Resolution 4447, a resolution designating a policy
regarding the use of funds generated from the West Side Urban
Renewal District. The motion was seconded by Graves.
There was discussion.
Atkinson asked if the plan is to designate $47, 06_ 0_;_'' to the
infrastructure of the City Service development.
n
Thelen said that's actually a separate issue from the resolution and
would be handled in a Developers Agreement following direction from
Council. He added however, the policy does recognize the City's
commitment to City Service.
Atkinson stated there may have been a, consensus to help City
Service but there's never been an actual vote. He said he's
concerned about the approach the Council is taking relative to
promises, which he feels leaves out the Staff and the public.
Atkinson asked Council members that if any of them are dealing with
developers privately, to "stop it."
Donahue said despite whether his points are well taken, he doesn't
think Atkinson's concerns are germaine to the issue at hand. He
said the resolution designates a basic policy on how the urban
renewal money will be allocated and not how specific projects are
listed.
Donahue moved an amendment to the motion by adding the word
"primarily" to Section I and having it read: "Tax funds generated
under the West Side Urban Renewal Plan will be used primarily for
the construction of public infrastructure improvements..." Donahue
moved Section II should read "Requests received by the City staff
for financial assistance within the West Side Urban Renewal Plan
area shall be reviewed by the staff and placed upon a City Council
Agenda for consideration at which time the Council will accept
reject or modify the proposal" and in Section III, Donahue moved it
should read "The City may endeavor to sell tax increment bonds for
major projects, designated by the Council, within the West Side
Urban Renewal Plan, whenever said projects are deemed feasible and
regl,ir;ng more money that the City has on hand. The motion was
seconded by Larson.
There was discussion.
Atkinson stated he can see the City needing all of the tax
increment money possible to complete Meridian Road and other
projects planned, and he's concerned with "siphoning" some of that
money off at this time. He said because of that, he will vote
against the addition of the "primarily" in Section I.
Van Natta said he approves of the Council having a choice of the
projects, but added he would like to see a plan developed that
outlines the upcoming projects so_ the Council can determine whether
it has a "snowballs' chance" of meeting the needs of the
infrastructure improvements.
Larson commented he will vote in favor of the amendments because he
feels the Council should have some discretionary use of the funds
to keep the District viable and growing.
The amendments carried upon vote with Atkinson voting against.
5
The main motion as amended carried upon roll call vote with
Atkinson, Donahue, Graves, Haarr, Larson, Scarff, Van Natta and
Nystul voting in favor.
Nystul, in response to Atkinson's earlier comments, stated there
were indications made by Council that the City would assist City
Service in its Westbrook project and he feels it's been badly
handled from the beginning.
Haarr said he would like the $47,000 figure reviewed because he
remembers the Council also discussing demolition and storm water
control at the October work session. He said his recollection is
that it would take approximately $100,000 to address the storm
drain and infrastructure improvements.
BIG SKY MANORIHAMPSTEAD PARTNERS - LOAN REQUEST
Hampstead Partners has requested a loan of $124,000 to aid them in
their acquisition and upgrade of Big Sky Manor located at 110 2nd
Avenue West. This is one of eight projects included in a package
put together by the Montana Board of Housing.
Thelen said Council discussed the use of UDAG monies in place of
Tax Increment funds and after reviewing the issue, the Staff has
determined that because Big Sky Manor benefits low to moderate
income residents, the use of UDAG funds would make the most sense.
Scarff said the Council discussed at the work session that if
something went wrong with the project down the road, the City
probably wouldn't be able to recover any of the loan.
Moyer answered to ensure the City recaptures its money, the City
would have to do the same thing it's done in the past on simple
housing mortgages by buying out the tiers above it. -
Atkinson said he's in favor of the loan because he'd like to see the
elderly be able to stay in this building. He said the Landlord
Association has asked the Council to deny the loan, but he feels
it would be advantageous to support it. Atkinson commented that by
leaving Big Sky Manor for the low income, it keeps an additional 60
units out of competition with the other landlords.
Donahue stated he's pleased the Council is considering using UDAG
money rather than TIF funds and the City should do whatever it can
to help maintain Big Sky Manor.
Atkinson moved the Council authorize a UDAG loan of $124,000 at
five percent over twenty years to Hampstead Partners and Northwest
Human Resources for the acquisition and renovation of Big Sky Manor
if the project proceeds. The motion was seconded by van Natta.
Moyer commented that she would like a deed restriction included
that states Big Sky Manor must be rented to the low income elderly.
6
The motion carried unanimously upon vote.
The President of the Conrad Mansion Directors, Louis Bibler, is
asking the City to pay one half of the cost of inb"Ud_ I—Ug a fire
sprinkling system at the Conrad Mansion. The system is estimated
to cost between thirty and forty thousand dollars.
Donahue, a member of the Conrad Mansion Board of Directors, said
the Conrad Mansion has become a viable part of the community and if
it catches fire, it's gone. He said the Board would like to install
a sprinkler system as soon as possible, without disrupting the
tourist season. Donahue stated if the Board waits until the City
approves the budget in July, it's "going to cut in seriously" into
the time the Conrad Mansion has to produce income this year. He
asked the Council to assure the Board that half of the cost of the
sprinkler system will be included in the FY2000 budget and said by
doing so, the Board can get started on the installation now.
Larson moved the Council commit up to one-half of the cost of a
sprinkler system for Conrad Mansion, not to exceed $20,000, to be
funded out of the FY2000 budget. The motion was seconded by Haarr.
There was discussion.
Atkinson asked if the sprinklers would detract from the looks.
Donahue said the engineer has said the heads will be camouflaged as
much as possible. He said obviously some of the beauty will have
to be "violated" to save the whole building.
Atkinson commented the Council could be tying its hands by
budgeting the money now, but added because it's $20,000 in a very
large budget, he thinks the Council should do it.
The motion carried unanimously upon vote.
The 9-1-1 Interlocal Agreement specifies the appointment of one
Elected Official to the Administrative Board and two Public Safety
Officials, one primary member and an alternate.
Graves moved the appointment of Fire Chief Ted Waggener as the
primary Public Safety Official, Police Chief Frank Garner as the
alternate and Council Member Ron van Natta as the Elected Official
on the 9-1-1 Administrative Board. The motion was seconded by
Haarr.
There was no discussion.
The motion carried unanimously upon vote.
APPOINTMENT TO CITY -COUNTY PLANNING BOARD- MEMBER AT LARGE
At the last meeting, the Council rejected the confirmation of Jack
Fallon as the 9th member of the City -County Planning Board. The
Planning Board has now requested approval of either Mike Fraser or
Richard Kuhl as the member at large. The member selected must be
approved by both the City Council and the County Commissioners.
Atkinson moved the Council recommend the appointment of Richard
Kuhl as the member at large on the City -County Planning Board. The
motion was seconded by Larson.
There was discussion.
Atkinson said both applicants were endorsed by the City -County
Planning Board and the only reason he recommended Kuhl is because
Mike Fraser works for Thomas, Dean & Hoskins which the City
conducts business with at times.
The motion carried upon roll call vote with Atkinson, Donahue,
Graves, Haarr, Larson, Scarff, van Natta and Nystul voting in
favor.
HOUSE BILL 91
Nystul explained that House Bill 91, introduced by B. Simons of
Yellowstone County, would stop cities like Kalispell from issuing
building permits and conducting inspections in the four and a half
mile area outside the City limits until an election is held to
determine if the residents of the affected area approve of the City
providing this service. Nystul stated if the City wishes to take a
position on this bill, then direction needs to be given to Thelen
to prepare a letter.
Thelen said the reason the City started inspecting homes outside
the City limits was to ensure that the property annexed met City
Codes. He said the State provides inspections for four-plexes and
above, but if the City doesn't inspect the rest, nobody will.
Thelen stated an interesting question is raised. He said if the
City isn't going to have some degree of enforcement of Codes in
those outlying areas, will the City want to extend services?
Building Official Craig Kerzman said the Building Codes are adopted
by the State of Montana, Department of Commerce, Building Codes
Division. He said they are updated approximately every three years
and are enforced by the Kalispell Building Department: Kerzman
said all construction within the jurisdictional boundaries of the
Building Department is treated the same as far as enforcement of
the Building Codes. He said if the bill is passed, the long term
impacts would mean that the City could annex buildings that would
not have been inspected and could become a liability. Kerzman
asked the Council to take a position opposing House Bill 91 and let
the Building Department continue this service to the public.
n
Nystul commented the news last night reported that the Flathead
Valley is located in an earthquake zone and as infrequently as the
State inspectors visit the area, how can they inspect the amount of
reinforcing iron that is in a foundation if they are not there
before the foundation is poured. _-
Atkinson commented "this is really a no brainer.' He said the
Council has an obligation to help the citizens by assuring them
that they are not buying substandard construction.
Atkinson moved the Council authorize the City Manager to write, and
the Mayor to sign, a letter to the Legislators recommending they
vote against House Bill 91. The motion was seconded by Larson.
Donahue suggested the letter should also be sent to the Governor.
Atkinson accepted the suggestion as a friendly amendment.
Thelen said he would also send a copy to the Montana League of
Cities and Towns.
The motion carried unanimously upon vote.
COUNCIL COMMENTS /INFORMATION/QLIFSTIONS
Thelen informed the Council that one of the City Manager
Candidates, Michael McCurdy, has accepted a job elsewhere and will
not be part of the interview process.
Donahue commented the Municipal Court system was established over
a year ago and an ordinance establishing the civil fees still has
not been adopted. He said he'd like to see the Council direct the
City Attorney to draft an ordinance as soon as possible. Council
concurred.
Haarr inquired as to the status of the Jerry Begg issue.
Thelen explained Neier and Hansz had a meeting with Begg and his
attorney last week and information is still being exchanged.
Atkinson stated the Council has been criticized for not having an
Airport Authority meeting for several months and asked why there
hasn't been one scheduled.
Thelen said he hasn't caught up with the issue since he's been here,
but he is looking into it and will bring something to the Council
as soon as possible.
d
Larson said the Council is also being criticized for not
establishing an Ethics Review Committee and asked Neier his
opinion.
Neier stated he has researched the issue and there is no State law
requiring the establishment of an Ethics Committee. He said the
issue is discretionary on the part of the Council.
Thelen said he wouldn't suggest setting up an outside committee. He
said the Council is responsible for the conduct of Council members
and to appoint an outside board is "asking for trouble."
Van Natta commented he's not in favor of it but maybe the Council
should place the item on the agenda and settle the issue once and
for all.
ADJOURN
The meeting was adjourned at 9:10 p.m.
Wm. E. Boharski
Mayor
ATTEST:
Theresa white
Clerk of Council