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A. Council Minutes - Regular Meeting March 16, 1998 & Special Meeting March 25, 1998KA.LISPELL CITY COUNCIL Agenda April 6, 1998 AGENDA APPROVAL AGENDA ITEM 1 - CONSENT AGENDA APPROVAL A. Council Minutes - Regular Meeting March 16, 1998 Council Minutes - Special Meeting March 25, 1998 B. Approval of Claims per Payables Register $359,796.59 C. Authority to Advertise for Bid - Yd Street East and I' Avenue East Traffic Signal Installation Per Petitions BACKGROUND/CONSIDERATION: I have enclosed a petition received form several citizens concerned about traffic safety and especially pedestrian traffic at this intersection. These observations concur with City Staff s observations. I have indicated in the past that this corner should be signalized. This petition suggests 4-way stop signs. With the level of vehicular traffic, pedestrian traffic and 7 to 8 traffic movements that happen within a short distance to the intersection, I would suggest that the signals will give us a higher level of safety and visibility than a 4-way stop. RECOMMENDATION: I indicated earlier that we have confirmed that this intersection meets, at best, one traffic warrant that is required for controlling the intersections. This was considered in the budget with funds allocated for the signals. Also, as I indicated, the cost of signals are now approximately $130,000. The funds are currently available within this line item and unallocated funds. I would also suggest that this project should be completed as part of the infrastructure improvements (a top priority goal) while these TIF funds are still 10 N available. I highly recommend we install signal lights at this location ASAP. ACTION REQUIRED: Approval of the consent agenda would authorize the City Manager to begin the design and bid processes for this project. Authority to Advertise for Bid - Meridian Road Walkway Phase II BACKGROUND/CONSIDERATION: I have enclosed a memo from Mike Baker that summarizes the project history and costs for this project. The total cost will be 80 % federal funds with 20 % local funding coming from funds reserved for several years for this project. RECOMMENDATION: I recommend approval of this project since there is a culmination of several years of planning, funding and preliminary engineering. ACTION REQUIRED: Approval of the consent agenda will approve following through with the design, bidding and construction of the project. Approval of North Meridian Road Design Contract Supplement #5 BACKGROUND/CONSIDERATION: I have enclosed the memo from Jim Hansz outlining the need for this increase in contract. The $43,750.00 increase seems to be justifiable since MDOT has been the source of the increase. RECOMMENDATION: Since these costs were required to be incurred by MDOT, the contract is less than the original contract amount by $16,291.00, and there is no direct cost increase to the City, I concur with the Public Work Director's recommendation to approve the increase. ACTION REQUIRED: Approval of the consent agenda will authorize the contract increase. F. Habitat for Humanity BACKGROUND/CONSIDERATION: I have enclosed the correspondence regarding City participation in a demolition of a non-standard dwelling to allow improvement of the site suitable for building. The PECDD Staff reviewed the request, need, and our ability to participate in this improvement. This project will allow us to place a very low income family of seven in one of the City's four -bedroom homes in Woodland Court. The project will also demolish a substandard housing unit and allow the Habitat for Humanity to erect a new house at a site that currently has a house that is not suitable for rehabilitation. The City's participation is limited to $5,000 from our emergency rehab line item of the budget. This is a classical use for these funds. RECOMMENDATION: This is the ideal use of rehab funding. This demolishes a substandard housing unit, allows a low income family to move into a new unit, creates a site for a new Habitat for Humanity housing unit, and allows us to participate in a joint Public/Private partnership project. I recommend approval of this request. ACTION REQUIRED: A motion to approve the consent agenda will authorize the City Manager to proceed with the project as presented.. G. Airport Advisory Board Appointment MAYOR'S RECOMMENDATION: The Airport Advisory Board interviewed two applicants for this position. They submitted their recommendation to Mayor Boharski. With the approval of this consent agenda, you will confirm the Mayor's recommendation. H. Union Negotiation Contract Approval BACKGROUND/CONSIDERATION: We have discussed the option of continuing to utilize the City Manager and City Attorney to negotiate contracts. As I indicated to many of you last year, I believe that it is generally more effective, in terms of actual negotiations, and long term relationships in the daily work environment, to utilize outside negotiators. We will begin negotiations with the Police and Fire Unions in the next few weeks. Glen Neier and I have discussed the option for an individual to provide this service. One person was not available, one did not return my message call, and one submitted his proposal. I have enclosed a copy of the proposal for your review-. After checking references and background, we believe we will receive excellent service with this consultant. RECOMMENDATION: I highly recommend approval of the proposed contract. This money can be an excellent investment for the next three (3) years of service from our Police and Fire Departments. ACTION: Approval of the consent agenda will authorize the Manager to sign the agreement and proceed with the process of negotiations. I. Health Department Budget Items BACKGROUND/CONSIDERATION: I have enclosed copies of two "budget amendment" requests submitted by the County to the City for approval. Upon researching these items (delayed due to the absence of Mr. Earl Bennett), I find that these are not budget amendments. These changes are not budget amendments but internal changes to the existing budget. There is no change to the bottom line of the budget. An amendment is a change to the total allocation, requires a public hearing and must show the source of new revenue for the new expenditures. It is my understanding, however, due to the desire of certain County Commissioners and/or City Council members, the letter was directed to be sent to request the City's approval. RECOMMENDATION: As a matter of information and record for the Council, I recommend acknowledgment of the receipt of the request. ACTION REQUIRED: Approval of the consent agenda will acknowledge the request and approval of the request for the changes in the Health Department Budget. 1 A REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:00 P.M. MONDAY, MARCH 16, 1998, IN THE COUNCIL CHAMBERS AT CITY HALL IN KALISPELL, MONTANA. MAYOR BILL BOHARSKI PRESIDED. COUNCIL MEMBERS JIM ATKINSON, NORBERT DONAHUE, JOHN GRAVES, DALE HAARR, DUANE LARSON, GARY NYSTUL, RON VAN NATTA, DOUG SCARFF AND CITY ATTORNEY GLEN NEIER AND CITY MANAGER CLARENCE KREPPS WERE PRESENT. Mayor Boharski called the meeting to order and led the Pledge of Allegiance. AGENDA APPROVAL Haarr moved to approve the agenda with Consent Agenda Items D, E and G being moved to Items 8, 9 and 10, and also adding Item 11, appointments of sub -committees to meeting with County officials for the purpose of discuss the County Administrative Board and the City/County Health Board. The motion was seconded by Donahue. There was discussion. Larson asked why the boards are under discussion. Boharski answered the Commissioners have asked the City to look at the CAB makeup and the way the budgets are done for both the CAB and the Health Board. The motion carried with Donahue, Graves, Haarr, Larson, Nystul, Scarff, Van Natta and Boharski voting in favor and Atkinson voting against. CONSENT AGENDA APPROVAL A. Council Minutes -Regular Meeting B. Approval of Claims per Payables Register-$286,784.46 C. Award Bid -Center Street and First Avenue East Traffic Signal Installation. D. Approval of Landscaping Plan -Highway 93 South Nystul moved to approve the consent agenda. The motion was seconded by Van Natta. There was discussion. Nystul moved to deny the claim for the National League of Cities in the amount of $1,458 be deleted from the Payables Register. The motion was seconded by Haarr. There was discussion. 2 Nystul stated by virtue of being a member of the Montana League of Cities and Towns is a member of the National League and in his opinion the Council hasn't done much with the National membership. Atkinson asked Krepps why the National League would ask for membership dues if the City is automatically a member by paying dues to the Montana League? Krepps said he felt Kalispell would not be a direct member, but he would check it. Nystul said they would not be a direct member, but would remain as an indirect member and still receive information through the Montana League office in Helena. Krepps stated he would gather further information on the differences between being a "direct member" and "indirect member" if the Council so chooses. He added, however, that by dropping the dues if Council members want to attend National League meetings in the future the registration rate would be 20 percent higher. Van Natta said he would like to try a year without being a member to see how things go. He said by not being a direct member it would at least cut down on the amount of junk mail he receives. Boharski added that the Internet site for the National League of Cities is available and no password is needed for an abundance of information. Larson stated he views the National League of Cities as more than a center for junk mail. He said the National League does a lot of lobbying to help get legislation passed at a national level. He added he believes whenever you benefit from an organization's efforts you should support that organization. Donahue commented he has attempted to drop the budget item for the last two years and added the City can spend the thousand dollars in a way that would be a lot more beneficial. Haarr said he has attended National meetings in the past and felt the information obtained was never put to use later. He said he felt a year out of the National League is a good trial period. The motion carried with Donahue, Graves, Haarr, Nystul, Scarff, Van Natta and Boharski voting in favor and Atkinson and Larson voting against. Donahue commented he noticed in the payables register a claim for AA batteries. He suggested in the future maybe the departments can save money by buying rechargeable batteries instead. 3 Boharski commented that the bid for the traffic signal at Center Street and 13t Avenue East was higher than expected. He asked Krepps if the cost is going to be higher for all the street light projects. Krepps answered he expects the City will have to budget $130,000 in the future versus the $110,000 budgeted now. The motion carried unanimously. HEARING THE PUBI,I_C ordinance 1 .82 -Beer and_-Wine_Li_c-enoe_Ee_e.-2nd__Reading Vinny Weisman, Vinny's Cafe, 120 Main Street, asked why the City fee for a beer license with gambling privileges, ie. Pizza Hut, is $200.00. He said if this is correct why should people like him be charged $300.00 for a beer and wine license with no gambling. Boharski answered the gambling license is separate and you are not allowed to gamble with a beer license. Ordinance 1284-ThompsonT_Noble &LcKinl_.e__Zo.n.e_ Change-.n 2d_13.eading Kent Saxby, Attorney with Warden, Christiansen, Johnson & Berg spoke in favor of Ordinance 1284 stating his clients, the Nobles, would agree with either an RA-3 or R-5 zoning designation. REQUEST FROM_ turlCHAF'L gEAMAN _EOR__-SEWER---CONNECTI411T..-Ajft5—EAS-T COTTONWOOD Michael Seaman has recently purchased the property at 405 East Cottonwood and desires to be hooked to the Evergreen Sewer System. Krepps felt the request should be denied because it would be extremely difficult to control the "service line" and prohibit future hook ups to the line to serve other users. In addition, Krepps said the parcel has a working septic system. van Natta moved to reject the request. The motion was seconded by Atkinson. There was discussion. Nystul stated for the record, the Council recently discussed another request from Evergreen and he suggested the Evergreen District provide the Council with some input. He said he would like to know whether the District approves or disapproves of the requests. Jim Hansz, Public Works Director, said the Evergreen Board did approve the hook up contingent on consent from the City and he apologized for not adding that information to the Council packets. Nystul said it appears that the request from Seaman is just for permission to be another customer of Evergreen and the City of 4 Kalispell would not be involved other than the hook up fee. He said you cannot hook other people up to a service line without the City's permission and if others wanted to hook on they could not legally do so, therefore he felt the concern of not being able to control the service line is not germane to this request. Boharski asked if it is theoretically possible to illegally hook up to a service line. Hansz answered it would actually be fairly simple. Donahue spoke in favor of the denial. The motion carried unanimously. omiNANCE_ 1282-BEER/WINE LICENE_E_ FEE-2ND _READING This is the second reading of an ordinance to set an annual license fee for restaurant beer and wine licenses to be paid to the City. At the last meeting, the Council voted to set the fee at $300.00. Donahue moved Ordinance 1282, an ordinance amending Chapter 3, Alcoholic Beverages, Kalispell Municipal Code by amending Ordinance 874, Section 1 (Section 3-6, Kalispell City Code) to provide for an annual license fee for restaurant beer and wine licenses, and to declare an effective date. The motion was seconded by Scarff. There was no discussion. With a roll call vote the motion carried with Donahue, Graves, Larson, Nystul, Scarff, Van Natta and Boharski voting in favor and Atkinson and Haarr voting against. ORDINANCE 1283-FINAL ZONING -WHITE. ANNEXAT-T-ON_'-Q_R_3_-2ND READING Last meeting the Council annexed property owned by Edgar and Margaret white with an initial zoning designation of R-3. This is the second reading to finalize the zoning. Haarr moved ordinance 1283, an ordinance to amend Section 27.02.010, official Zoning Map, City of Kalispell Zoning ordinance (ordinance No. 1175), by zoning property known as Assessor's Tract 24A located in Section 8, Township 28 North, Range 21 West, P.M.M., Flathead County, Montana (previously zoned County R-1, Suburban Residential), City R-3, Urban Single Family Residential, in accordance with the City -County Master Plan, and to provide an effect date. The motion was seconded by Nystul. There was no discussion. With a roll call vote the motion carried with Atkinson, Donahue, Graves, Haarr, Larson, Nystul, Scarff, Van Natta and Boharski voting in favor. 5 ORDINANCE 12 84 - THOMP_S_ON . -LOBLE &-KT-NLEY—ZONE_.-C A E_-.2ND_READING This is the second reading of an ordinance to change the zoning designation of several properties located on the east side of North Meridian Road just south of Three Mile Drive. At the last meeting the Council voted classify the properties as RA-3. Larson moved Ordinance 1284, an ordinance to amend Section 27.02.010, Official Zoning Map, City of Kalispell Zoning Ordinance (Ordinance No. 1175), by rezoning property owned by Glen and Mildred Thompson, Cecil and Isabel Noble and Catherine McKinley, Living Trust, Kalispell, Flathead County, Montana, (previously zoned R-3, Residential and RA-1, Residential Apartment District), to an RA-3, Residential Apartment/Office District, in accordance with the City -County Master Plan, and to provide an effective date. The motion was seconded by Nystul. There was no discussion. With a roll call vote the motion carried with Atkinson, Donahue, Graves, Haarr, Larson, Nystul, Scarff, Van Natta and Boharski voting in favor. RESOLUTION 4396-HINES ANNEXATION Donald Hines, the owner of property located on the west side of Highway 93 South, has requested that the City of Kalispell annex the area into the City with a B-2 zoning classification. Krepps explained the property contains approximately one and one half acres and the Planning Board has unanimously recommended annexation. Nystul moved Resolution 4396, a resolution to provide for the alteration of the boundaries of the City of Kalispell by including therein, as an annexation, certain real property described in Exhibit A, to be known as Hines Addition No. 285, to zone said property General Business, B-2, to amend the City Zoning Map accordingly and to declare an effective date. The motion was seconded by Graves. There was discussion and Narda Wilson of the Flathead Regional Development Office answered questions. Boharski asked Wilson if there is any difference between City B-2 and County B-2. Wilson stated Hines owns an auto repair operation which is listed as a conditional use in County B-2 and is listed as a permitted use in City B-2. Boharski asked if the property runs into the "Object Free" area. X, Wilson answered the property is east of this area and is entirely out of either the "Runway Protection" zone or the "Object Free" area. Boharski requested that Krepps check the plans to make sure prior to the second reading Ordinance 1285. With a roll call vote the motion carried with Atkinson, Donahue, Graves, Haarr, Larson, Nystul, Scarff, Van Natta and Boharski voting in favor. ORDINANCE 12A—TNITIAL--7,ONING OF HINES--P$QP_ERTY__TO_.B-._2_.117'_$EADING, This land is currently zoned County B-2. Upon annexation the City needs to determine the initial zoning for the City. The recommendation of the Planning and zoning Commission is to support the requested zoning of City B-2. Atkinson moved Ordinance 1285, 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 in Exhibit A (previously zoned County B-2, General Business), City B- 2, General Business, in accordance with the City -County Master Plan, and to provide an effective date. The motion was seconded by Nystul. There was no discussion. With a roll call vote the motion carried with Atkinson, Donahue, Graves, Haarr, Larson, Nystul, Scarff, Van Natta and Boharski voting in favor. APPROVAL OF' MANAGEMENT _&._PBO_GRAM__INCOME__PLA.N- SAMARIT-A-R— HOUSE EXPANSION The Management & Program Income Plan comprises three documents which were prepared for the protection of the City and to fulfill the requirements of the CDBG, HOME and AHP grants. Larson moved to approve the Management & Program Income Plan for the Samaritan House. The motion was seconded by Atkinson. Susan Moyer from the Planning, Economic and Community Development office explained the documents are basically "boiler plate" from the Montana Department of Commerce with just a few differences. Moyer said the grants require that the money is spent properly and the documents are typical of those in past projects. Nystul asked if a deed restriction will be filed making sure all the requirements are met. Moyer answered a deed restriction will be filed on every phase of the Samaritan project. 7 Boharski voiced a concern about the staffing and contractor services and asked if the Samaritan project is similar to the Woodland Court project. Moyer answered it is similar to Woodland Court, the Courtyard Apartments and projects that were done for years for housing rehabilitation. Boharski stated he is concerned because the Woodland Court project is going to involve the City in at least two different arbitrations or lawsuits because of errors that were made by someone and he hopes the process has been improved. Larson said he disagrees that errors were made in Woodland Court. He said that is something to be decided by a Court of Law. The motion carried unanimously. AWARD BID -SAMARITAN HOUSE EXPANSION-PHASE_I__-&-TT Staff opened bids for the Samaritan House project on March 10, 1998 with six bids being received. The low bid was from Swan Enterprises including the combined Base Bid of $1,104,000 plus alternate number 1 in the amount of $30,000 for a total amount of $1,134,000. Krepps explained there was an error of $16,400 in the Swank bid, but they are still the low bidder at $1,150,400 and he recommended Council approval. Larson moved the bid for the Samaritan House expansion be approved and the City Manager be authorized to sign the project contract. The motion was seconded by Atkinson. There was discussion and Susan Moyer answered questions. Boharski asked how much is allowed for potential cost overruns. Moyer answered there is a 10 percent contingency fund on the project for Phase I and Phase II. The motion carried unanimously. POLICE COMMISSION APPOINTMENTS. The Police Commission is a civilian board established to formally examine all applicants and certify qualified candidates for City Police Officers and then submit its recommendation to the City Manager. The Board is also qualified to hear and decide appeals. Krepps explained State Code requires the Manager to nominate candidates for the Police Commission. Krepps said there haven't been any updated appointments for the Commission for several years and State Code states an appointment, or re -appointment should be made once every May. Krepps recommended Jim Vidal be reappointed for a one-year term through May, 1999, Joan Jellison be reappointed for a two-year term through May, 2000, and Ron Peterson be appointed for a three-year term through May 2001. Boharski commented this is another area where the City's Ordinance 1166 conflicts with State Statute. He said Ordinance 1166 states the Mayor makes the appointments to the Police Commission but State Code says the appointments are made by the Manager. Boharski said the City is looking into the possibility of bringing an amendment to the Ordinance which would state something to the effect "unless otherwise specifically required by State law." Nystul moved the re -appointment of Jim Vidal to the Police Commission for a term to expire May, 1999. The motion was seconded by Van Natta. There was discussion and Chief of Police Ad Clark answered questions. Nystul asked if the Police Commission has been involved in the recent hiring of police officers. Clark said the Police Commission has been used during the hiring processes even though the Department was unaware the terms had expired. Donahue commented State Statute requires new appointees to come before the Council for approval after serving for one year and he hopes the situation doesn't happen again. The motion carried unanimously. Donahue moved the re -appointment of Joan Jellison for a seat on the Police Commission for a term to expire May, 2000. The motion was seconded by Haarr. The motion carried unanimously. Scarff moved the appointment of Ron Peterson to fill the third seat vacated by Dan Korn for a term to expire May, 2001. The motion was seconded by Atkinson. The motion carried unanimously. C IMTx ADM2N2STRATTV, BOARD AN12_=-Y-COUNTY HEALTH_ BDARD Boharski explained the County Commissioners have had some concerns about the CAB and the Health Board. Boharski said he would like to appoint a committee of three council members to work with the Commissioners and the other City Councils, if they are so inclined, and bring a recommendation back to the full Council for approval. Boharski said he hopes a few things can be streamlined and a J recommendation can be made to bring everything technically in line. Haarr moved the Council accept the Mayors prerogative to appoint sub -committees for the Health Board and the CAB. The motion was seconded by Donahue. There was discussion. Van Natta stated he is in favor of the motion if the intent is to bring the Boards into conformance with Ordinance 1166, but he added he is not in favor of changing the Ordinance. Atkinson spoke in opposition to the motion stating when the City started the City Manager form of government the Council became a "committee as a whole." He said in the past there was numerous committees and there was a great deal of power in the committee form that he felt did not serve the best interests of the entire Council and the entire City. Atkinson said the "committee as a whole" needs to remain. He said the forming of sub -committees is a step in the wrong direction. Boharski responded there is a tremendous amount of things not getting done and this is the only way to get some of those things out of the way. He added the committee can't do anything without concurrence of the full council. Atkinson disagreed, saying committee members decide what items are discussed and what items are brought forth to the Council. Larson said he worked under the committee system when he was first elected to the Council and it doesn't get things done. He said the Council as a committee as a whole got much more accomplished than the old committee structure. Larson added if there are technical errors they can be fixed without having a committee appointed. Donahue said he has seen many things that have not been done in the past two years that could have been resolved by a committee. He said the problem with the Health Board is that the law has changed substantially since the Interlocal Agreement was written. Donahue said he hopes the subcommittees can come back to the Council with a draft of a new Interlocal Agreement. He said one of the problems with the Health Board is there is no oversight on the budget. He said the budget should come before the Council and the Commissioners for approval. Larson said he's not sure that having oversight over the budget is anything other than meddling. Nystul said the issue is whether to create two ad hoc committees to look at these issues. He said this committee differs substantially from the committees that were under the Mayor/Council form of government where the committees were administrative and did in fact 10 manage in the absence of a city manager. Haarr said the City doesn't have a perceived problem, but an obvious problem with the interlocal agreements with the Health Dept. and the CAB. He added he doesn't have time to look at every one of these issues yet he feels they're important. He said a small group that doesn't have any power to act and that sincerely wants to make corrections in the laws should have the opportunity to do so. The motion carried with Donahue, Graves, Haarr, Nystul, Scarf and Boharski voting in favor and Atkinson, Larson and Van Natta voting against. For the Health Board committee, Boharski appointed Donahue as chairman along with Larson and Scarff. For the CAB committee Boharski appointed Haarr as chairman, Donahue and Van Natta. Krepps commented the meetings must be open and agendas posted. Krepps reminded the Council of the upcoming Joint Committee meeting on Monday, March 30t" and asked the Council for three items to place on the agenda. Van Natta suggested discussing the County Administrative Board, Atkinson would like to discuss space concerns and the possibility of a City/County building and Haarr suggested discussing the possibility of developing a mutual fire training center. As another suggestion, Boharski added the meeting could also possibly include the discussion of a joint SWAT team. Krepps also pointed out Irwin Davis representatives have informed the City they are not proceeding with the purchase of the KDC property. Krepps asked that a special meeting be held March 251" to discuss the KDC property, the National Flood property and Daley Field. Boharski asked if the Council was to decide to allow Irwin Davis to purchase one third of the property would the City have to re -offer it. Neier answered if the property is going to be broken down the property has to be re -advertised. It was agreed to convene March 25t" at 6:30 p.m. as a Special Council Meeting with an agenda so that action can be taken if needed. Krepps also asked if a strategic planning session could be scheduled for March 28t". It was agreed to meet at 9:30 a.m. on tn Saturday, March 28 11 Boharski questioned Krepps about the status of the new Clerk position. He said the personnel manual, § 50-9, calls for an issues and options paper to be prepared for review by the City Manager and the City Council when a job is reclassified. Boharski asked if an Issues and Options paper had been prepared. Krepps answered the paper was not prepared because he feels the job was not reclassified. He added two jobs were combined and a job was down graded which, according to the personnel manual, can be done solely by the City Manager. Krepps said by combining the jobs it will result in a savings between $10,858 to $13,000 which adds up to about one half to two thirds of a mill. Boharski said it would be appropriate to prepare a paper for the Council so they are informed, especially since one job includes an increase in salary. He asked Neier to prepare a memo to the Council on whether the position change was done correctly. Krepps responded the Personnel Department and the City Attorney were involved in the change all the way through the process. He added he hopes the issue doesn't involve personalities and/or specific employees because there are a lot of rumors going around. Boharski said if the Council was kept more informed rumors could be avoided. He asked what the salary is for the new Clerk position. Krepps answered he didn't have the exact figure in front of him but the Council will receive a full report. Boharski said he is concerned the salary is within 15% of $24,549, the bottom of the pay scale for that position. He said policy manual § 50-2 requires all new employees start at the bottom of the pay scale unless a window is needed to work within which case the maximum is 15% above the base pay. Boharski said he felt the idea of combining the jobs and saving money is a good idea, but what happens is the salary window gets wider for the Clerk's job which will have a budget impact over time. Krepps agreed but added normally in personnel policy when jobs are changed, and additional responsibilities are added, you pay for those additional responsibilities. Haarr questioned Krepps about problems City Service is having with the proposed Meridian Road site and requested the Council check into what the proposal is doing to that business. Krepps said he understands that City Service is having trouble with the proposed turning radius' proposed by Montana Department of Transportation which presents some problems for large trucks going in and out of City Service, but he added MDOT is looking at the proposal from a safety standpoint. He said Public Works Director Jim Hansz has written to MDOT asking for reconsideration, but the final decision rests with the State. Haarr, on another issue, commented on the negative press the Council has been receiving lately and he feels the Council and the Manager have been avoiding the issue. Haarr said he doesn't know where the negative press has emanated from but a "clearing of the air" is needed. He said each Council member was elected by constituents from their respective Wards, the Mayor was elected from all four Wards, and the Manager serves at the pleasure of the Mayor and Council. Haarr said if the Council can't ask questions of the Manager as to specific issues then there is a problem. He said he feels like he "operates in a vacuum" with the only information he receives coming in the form of a notebook every two weeks. Haarr said he doesn't think any of the Council wants to do away with the Manager form of government, which has been suggested in the press, and he certainly doesn't want to get involved with personnel hiring and firing, but he does want timely information to make an educated decision. As an example, Haarr said the Council may have received a phone call about the change in the Clerk's position but they never heard anything else. He said he just wants to get away from the negative and hopes at the session on March 28" the Council and Manager can clear the air. Boharski added in his opinion, which is in conformance with the City Manager form of government, he or any Council member has the right to give any input to the manager, whether the manager agrees or not, on any issue in this City. He said even if he has a friend that he thinks is a great employee he is going to pass the information along to the manager, even though the manager has the final decision. Boharski said at some point the Council has to get involved. He stated one of the reasons he ran for Mayor is because he felt the previous Council was just "cruising along." He said he feels the current Council has moved forward on more things in the last two and one half months than the previous Council did on a lot of things. He concurred with Haarr's statement that the Mayor and Council cannot be successful at their jobs unless they know as much as possible about what is going on in the City of Kalispell. Larson said he respectfully disagreed with the comments made by Boharski and Haarr saying he thought a lot of the negative things in the press originated at the Council table. Larson said if Boharski wasn't concerned about the hiring and firing, why did he ask Neier for an opinion on whether the Council can change the policy. Larson added part of Boharski's campaign included bringing the Council into a more harmonious condition but that hasn't happened and it's not likely to happen as long as behind the scenes meetings take place, engineering of the agendas takes place and the control of the communications takes place. He said the Council's decorum at the meetings influences what is printed in the press. 13 Van Natta said he doesn't feel the problem lies with either the City Manager or the Mayor but he does have a problem with the agenda by adding to the agenda each week at the beginning of the meetings and moving things around in the agenda. He added he thinks there is an agenda "behind that." Van Natta said he hopes everyone can get together and function as a group for the good of the people of Kalispell, not certain individuals that may receive some favoritism. Donahue, in honor of St. Patrick's Day, passed out Ancient Order of Hibernian pins to each of the Council members and the City Manager and made each of them an honorary Irishman for March 17. Donahue moved to adjourn. The motion was seconded by Atkinson. The motion carried. The meeting was adjourned at 9:35 p.m. Wm. E. Boharski, Mayor ATTEST: Theresa White Clerk of Council 1132 A SPECIAL MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:00 P.M. WEDNESDAY, MARCH 25, 1998, IN THE COUNCIL CHAMBERS AT CITY HALL IN KALISPELL, MONTANA. MAYOR BILL BOHARSKI PRESIDED. COUNCIL MEMBERS JIM ATKINSON, NORBERT DONAHUE, JOHN GRAVES, DALE HAARR, DUANE LARSON, GARY NYSTUL, RON VAN NATTA, DOUG SCARFF AND CITY ATTORNEY GLEN NEIER AND CITY MANAGER CLARENCE KREPPS WERE PRESENT. Mayor Boharski called the meeting to order and led the Pledge of Allegiance. KAT,ISpELL DOWNTO I_ CENTER AND _NATIONAL-__ELQOD__SHRV-TrYS_. BUILDING PROPERTY OFFERINGS Larry Gallagher of the Planning, Economic and Community Development Department gave an overview of the status of the two properties. He explained the Irwin Davis proposal for the former Flathead Valley Community College property has been withdrawn, and after consulting with the City Attorney it has been determined the City is required to re -offer the parcels for sale. He said staff met with the Kalispell Development Corporation Advisory Board which has recommended that the Council re -offer the parcels singly or in chunks. Gallagher said the Council also has to decide what the permitted uses will be, since the B-4 zone covers a wide array of uses. Gallagher said in the past, the Council stated clearly it is looking for a high density, high value development, in other words multi -story. He asked if the Council would now consider a single - story building. He said the KDC Advisory Board recommends $6.65 a square foot as a low reasonable (price) for the property. He added the Board also recommends splitting the parcels and recommends a minimum of a 60-day offering period. Gallagher said what the staff needs now is a clear definition of how the land is to be offered, the length of the offering, the minimum price of the offering and the uses the Council is willing to entertain. David Irwin of Irwin Davis & Co., Redmond, Washington, told the Council that Irwin Davis & Co. really tried to adhere to the letter and spirit of what they wanted to see on the property. He said the Company, after a year of hard work, came to the conclusion there was a way to move forward on the project but not adhering to the Development Agreement they had executed. Irwin said the Company had no choice but to withdraw from the Agreement. He told the Council he made several observations over the past year. He said it is in the best interest to maximize density on a site and that any future development adhere to parking requirements. Irwin said it is also important the project has a high level of quality. Ken Yachechak, 43 Hillcrest Drive, Kalispell, told the Council he and his partners are prepared to write the City a check, tonight, for $100,000, as a non-refundable deposit, for the purchase FVCC site. He said the total would be $419,000 which translates into $6.65 per square foot. Yachechak said he and his partners; Jeff Ellingson, Greg Ellingson, Patty Pennington, Roger Jacobson and Jim to9dc3 Thompson all have a long-term commitment to Kalispell and want to "drag" Kalispell from the Historical Theme into the 215t Century. He said he thinks Kalispell needs to be progressive and modern. Yachechak says they are prepared to build a campus of buildings surrounded and including parking and open spaces, a mall -type situation. Ron Trippet, Fairway Boulevard, said he is a local property owner and would like to propose a property exchange. He said he owns some property near the airport which he would like to exchange for Lots 16 and 17, Block 36. Trippet said the City shouldn't be looking outside for developers when local people are willing to develop the area. Atkinson questioned Neier if the Council could entertain the proposal that was made tonight. Neier said since Irwin Davis has withdrawn its proposal the property has to be re -advertised. Atkinson suggested the Council identify what areas would be changed in the offering, such as the parking, density, quality and design, and whether the property is going to be offered as part or whole. Haarr said he felt questions to the developers should come first and asked Neier to clarify why it wouldn't be possible to act on the offer that is before the Council tonight. Neier answered the advertisement was made months ago and any offer made after that would not be in conformance with the advertisement. He said the City must make a new offering. Haarr questioned Yachechak as to whether the proposal he and his partners made includes all the property that was accepted by Irwin Davis. Yachechak said it includes all the property except the National Flood Services building. Haarr told the Council that a "bird in the hand is worth a whole bunch in the bushes" and he feels Yachechak's offer is the first concrete one the Council has had. Neier said the property has to be offered three times in the newspaper for three succeeding weeks so the Council is looking at opening bids around mid -May. Haarr moved to re -advertise the property exactly as it was put forth before, as one piece, and that the acceptance date be at the earliest possible time. The motion was seconded. There was discussion. 1134 Donahue asked if the rights of Irwin Davis & Co. in the property is transferrable to Yachechak and his partners without having to advertise it. David Irwin said he doesn't think it can legally be done and would defer the question to the attorney. Neier agreed, saying the property has to be re -advertised. Krepps expressed concern that the Council is negotiating with Yachechak and asked the Council to focus on the actual process by getting proposals and making a decision the way it was intended. Nystul asked for a clarification of the motion as to what the time table is. Haarr answered the intent is the earliest time table possible, not later than 45 days from today. Nystul also asked what the motion intends as to permitted uses. Haarr said his intent is uses that are allowed under the existing zone. Gallagher said if the Council opens up the property to all permitted and conditional uses under the B-4 zone, it opens it up to a whole different group of developers. Haarr said, as clarification, the original offering should not be changed and a simple duplication would be in order. Gallagher said the original offering did not include the National Flood Services building. Boharski, yielding the chair to Nystul, moved to amend the motion to allow the property to be sold in any portions or parcels in any combination thereof. The motion was seconded by Larson. There was discussion. Larson, Haarr and Scarff all spoke in favor of offering the property as one total piece. The amended motion failed with Boharski, Donahue and Nystul voting in favor and Atkinson, Graves, Haarr, Larson, Scarff and Van Natta voting against. Boharski resumed the chair. Haarr moved, if the second agrees, to clarify the main motion by stating the KDC property should be offered as one piece, which was originally done, and the National Flood Service Building and lots 1135 15 and 16 being offered separately. Larson agreed. There was discussion. Atkinson moved to reconsider Boharski's amendment to the motion. The motion was seconded by Donahue. The motion failed with Atkinson, Donahue, Nystul and Boharski voting in favor and Graves, Haarr, Larson, Scarff and Van Natta voting against. Boharski, yielding the chair to Nystul, moved to amend the main motion by offering the NFS building and Lots 15 & 16, another offering, half of Block 36, lots 1, 2, 3, 4 and 13, 14, and a third offering, Lots 13, 14, 15, 16, Block 36. The motion was seconded by Atkinson. There was discussion. Van Natta expressed concern the latest amendment could mean the parking would be given up for the NFS building. Haarr stated the City can't allow the property to get all broken up. Boharski moved to clarify his motion, if the second agrees, by making two offerings, with Lots 13, 14, and Lots 1, 2, 3 and 4, Block 45 being one offering, the NFS Lots 15, 16 are offered as an option and half block of 36, Lots 13, 14, 15, 16, Lots 1, 2, 3 and 4 minus 1 & 2 and the NFS building be offered with 1 & 2. Atkinson agreed. There was discussion. Van Natta said he felt the Council should require that Lots 1 & 2 be converted to a parking lot at the purchaser's expense. Krepps said that kind of requirement can be discussed after proposals are received. The amendment passed unanimously. There was further discussion with Atkinson expressing concern about the offering being only 45 days, which he felt limited bidders. Yachechak requested the Council move as quickly as possible because the construction window is not that long. The original motion, as follows per Neier, passed unanimously: 1136 The City shall advertise the property as four separate offerings: 1) Lots 1 through 12, Block 36, Lots 13 and 14, Block 36, and Lots 1 through 4, Block 45; 2) NFS and Lots 15 and 16, Block 36; 3) NFS and Lots 1 and 2, Block 36; 4) Lots 1 through 12 and Lots 13 through 16, Block 36 and Lots 1 through 4, Block 45 with bids being opened as quickly as the law allows. Boharski said to simplify the minutes for the record, the "meat" of the minutes should be what the motions were, which motions failed and which motions passed. Gallagher explained to the Council that the City has been proceeding with the airport plan with the understanding that all three lots of Daley Field would be sold. He said the Council sold Lot 2 to Rosauers at a cost of $3.25 per square foot with the understanding that Lots 1 and 3 would be offered for sale this summer for private retail development. Gallagher said at this point the City has approximately 1.45 million dollars in the bank from the sale of the Haven Field property and the Rosauers property. He added this year's budget includes 1.5 to 1.6 million dollars for capitol improvements to the Kalispell airport which includes land acquisition, fencing and lighting to bring the airport up to minimum B-1 standards which would make it a safe, general aviation field. Gallagher said the City will need additional money to cover the costs and the only way the City can come up with the additional capitol is from the sale of the remaining lots of Daley Field. He said the City staff, the Airport Advisory Board and the KDC Board are all recommending the property be sold and not leased. Krepps said if the Council decides to lease the property, a financial consultant will have to be hired to set up the lease properly. Airport Advisory Board member Gib Bissell said some lease revenue is necessary for the survival of the Airport. He said the 20-year marketing plan for the Airport was based strictly on the soccer fields and Airport Road property, not the property fronting Highway 93. Bissell added the only way the Airport is going to work is to get a lump sum right now, whether or not the City receives some FAA funding. He said if it's possible to raise the 1.7 million dollars needed for the Airport and lease the remainder of Daley Field, than the City has the best of both worlds, but he added he doesn't think 1137 that can be done. Haarr said the Council needs a scenario, for example if the City gets the FAA funding what will that pay for, and what the City needs if it doesn't get the funding. He said the City may be acting prematurely if it sells the land. Gallagher said in the Urban Renewal Plan the City pledged to make the Airport a B-1 general aviation field. He said to do that several things are needed; fencing, lighting, extension of runway and acquisition of clear zones. Gallagher said even if the City receives FAA funding it cannot be used for land acquisition. He said the City needs all the cash the Council can raise. Atkinson moved to instruct City Staff to offer Daley Field Lots 1 and 3 for sale. The motion was seconded by Van Natta. There was discussion Graves said if the City adds sewer and water to the lots than the estimated selling price of $3.25 a square foot should be considerably higher. Gallagher answered he believes $3.25 is the worst the City can do. Boharski said he is concerned that if the Council offers the property for sale, and then the FAA comes in with the money and the Council changes it mind, how will that look to the public. Gallagher responded the offering could be made for a prolonged period of time and the Council would still retain the right to reject any and all proposals for any reason. Nystul said he would like to read the information presented tonight before making a decision. Haarr agreed, saying he wants to see an update and parallel scenario before making a decision. He said he feels the Council is dealing with outdated figures. Krepps said all those type of questions are in the Facilities Plan, for example land acquisition, towers, moving of towers, etc. He said at this point we don't know what those are going to be. Krepps suggested the Council offer the property and try to make the timing as close to receipt of the Phase I Airport Master Plan as possible. He said the City extend the offering five or six months and then, when the figures are available, make the decision. Airport Advisory Board member Art Thompson told the Council it is "time for action, not procrastination." 1138 Van Natta said he felt the Council should go ahead and offer the property for sale. Donahue said he hates to see the City sell the property when it may not be necessary. Donahue moved the matter be tabled until the April 6 meeting. The motion was seconded by Nystul. The motion carried with Donahue, Graves, Haarr, Nystul, Scarff and Boharski voting in favor, and Atkinson, Larson and Van Natta voting against. Atkinson moved to adjourn. The motion was seconded. ADJOURN The meeting was adjourned at 10:40 p.m. Wm. E. Boharski, Mayor ATTEST: Theresa White Clerk of Council