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1. Council Minutes - Regular Meeting - April 2, 2007A REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:00 P.M., MONDAY, APRIL 2, 20079 IN THE COUNCIL CHAMBERS AT CITY HALL IN KALISPELL, MONTANA. MAYOR PAMELA B. KENNEDY PRESIDED. COUNCIL MEMBERS JIM ATKINSON, BOB HAFFERMAN, RANDY KENYON, TIM KLUESNER, HAND OLSON, DUANE LARSON, AND W AYNE SAVERUD WERE PRESENT, COUNCIL MEMBER KARI GABRIEL WAS ABSENT. Also present: Acting City Manager Tom Jentz, City Attorney Charles Harball, City Clerk Theresa White, Assistant Police Chief Roger Krauss, Public Works Director Jim Hans2, Fire Chief Randy Brodehl, Community Development Director Dave Foster, Community Redevelopment Manager Sandy Wheeler, Planner II Nicole Johnson, and Recording Secretary Judi Funk. Mayor Kennedy called the meeting to order and led the Pledge of Allegiance. A. AGENDA APPROVAL Larson moved approval of the Agenda. The motion was seconded. There was no discussion. The motion carried unanimously upon vote with Gabriel absent. B. CONSENT AGENDA APPROVAL 1.. Council. Minutes — Re ular Meeting — March 195 2007 2. Grant Acce tance — Selective Traffic Enforcement Program The police department has received a $30,000 increase to the Selective Traffic Enforcement Program Grant which runs through September 2007. The budget needs to be increased by $15,000 with the additional $15,000 for next fiscal year. 3. Ordinance 1600 — Stormwater Re lations — 2nd Readin This resolution adopts stormwater regulations that comply with Federal and State stormwater permitting requirements. ordinance 1600 passed unanimously on first reading March 19. 4. Introduction -- Assistant Fire Chief revention Brodehl introduced the Fire Department's new Assistant Fire Chief for the Prevention Division, DC Haas. Kenyon moved approval of the Consent Agenda. The motion was seconded. There was no discussion. The motion carried unanimously upon roll call vote with Gabriel absent. Kalispell City Council Minutes April 2, 2007 Page I C. STUDENT ISSUES None. D, PUBLIC COMMENT Brian Long, Long Engineering, spoke in favor of the Cottage Gardens Subdivision and asked for Council's approval of the project. Lance Isaak, Flathead Attention Home Program Director, asked the Council to approve their request for a Conditional Use Permit. He said the home has had to move twice and it's hard to provide stability for the youth when the home is always in transition. E. PUBLIC HEARING — JOINT CDBG-ED APPLICATION - TELETEUH Council accepted public comments concerning the submission of a joint Community Development Block Grant application with Flathead County on behalf of TeleTech. Wheeler gave a staff report explaining the CDBG-ED grant application request will be for a total amount of $800,000 to provide training for up to 160 employees. Mayor Kennedy opened the public hearing. Arthur Nowak, TeleTech Site Director, declared the grant would allow TeleTech to create 80 additional jobs and retain an additional 80 positions by helping to offset training costs. He said TeleTech is required to match any monies received from this grant and asked Council for its support. Beau Bledsoe, 1216 Rhodes Draw, also asked for Council support stating he moved to the area in July, 2005 with his pregnant wife and one year old daughter and he didn't have a job. He said he started working for TeleTech and because of their training opportunities he is now the operations manager in charge of 200 employees. Liz Marchi, President of Montana west Economic Development and CEO of Flathead County Economic Development Authority, commented that her experience with TeleTech has exceeded her expectations. She said TeleTech has really stepped up to the plate, putting $12 million in payroll in the community last year. Marchi noted that the best investment we make is in people and she urged Council's support for this application. Charlie Wright, Regional Development Officer for the Montana Department of Commerce, stated he has been working with TeleTech on the ground work for this grant since last October and this is a fantastic opportunity for the City, the County, and TeleTech. Mayor Kennedy closed the public hearing. Kalispell City Council Minutes April 2, 2007 Page 2 F. PUBLIC HEARING — TRANSPORTATION IMPACT FEES Council accepted public comments concerning the proposed impact fees for the City's transportation services. Jentz gave a staff report. Mayor Kennedy opened the public hearing. Doug Rauthe, Executive Director of Northwest Montana Human Resources, noted one of the programs he is involved in is the mutual self-help housing program which is designed to help those families that are under 80% of the local area median income. He said self-help housing costs will be adversely affected by these impact fees and the program will not be viable. Grant Nelson, Goldberg Properties of Colorado, detailed Goldberg's retail development background stating they understand impact fees. Nelson noted that "retail follows residential" and questioned some of the principles of the study; specifically that "impact fees do not harm development". He said in a small to mid size market like Kalispell impact fees that are too high will stifle growth because retailers will not come; they would rather be located in an area that doesn't have the fees like Columbia Falls. Tia Robbin, attorney representing Phil Harris, Hutton Ranch Plaza developer, remarked that one of her biggest concerns is that the consultants lumped all of Kalispell into one zone with the same formulas, even though residential and commercial growth occur in different areas. In addition, the report allocates 90% of the transportation growth costs to commercial development and 10% to residential. She said even though this may be very politically appealing, it does not meet the requirements of Section 7-6-1602(5) MCA, the law governing impact fees. Robbin agreed with Nelson that commercial development follows residential growth and commented that these fees would be "shooting the goose that lays the golden egg". Charles Lapp, 3230 Columbia Falls Stage Road, thanked the Council for thoughtfully considering these fees. He said developers understand the City's need for impact fees, but cautioned that businesses could just as easily avoid the fees by moving to Evergreen where sewer and water is also available. Mayor Kennedy closed the public hearing. (All written comments received are attached and by this reference are made a part of the official record) G. REPORTS/RECOMMENDATIONS AND SUBSEQUENT COUNCIL ACTION G/L RESOLUTION 5188 -- AUTHORIZING JOINT CDBG GRANT APPLICATION - TELETECH The City of Kalispell and Flathead County have been approached by TeleTech to submit a joint Community Development Block Grant education application. Kalispell City Council Minutes April 2, 2007 Page 3 Kenyon moved Resolution 5188, a resolution authorizing submission of a ,point grant application to the Montana CDBG Economic Development Program. The motion was seconded. Wheeler answered questions. Hafferman said he is concerned with this method of working with businesses; they should all be on equal footing whether they've been here for a while or whether they are new to Kalispell. He stated taxpayers were obligated by nearly $900,000 to help Hilton Carden Inn, yet the other new hotels being built in Hutton Ranch and near Loge's did not ask for any taxpayer money. Hafferman said handouts do not determine the success or failure of a business, they are bonuses. He said to date, taxpayers have already given TeleTech approximately $370,000 to train their employees, plus other benefits. He questioned why taxpayers should train employees of any business. Kluesner noted the grant is necessary to train an additional 80 employees that TeleTech plans on hiring in order to service a large contract they have secured. He said TeleTech took on that obligation when they bid on the contract and are obligated to provide the services necessary to service the contract. Kluesner said he questions whether this is an investment or assistance and makes hire wonder what the financial status of TeleTech is. Mayor Kennedy clarified that these funds are federal dollars available in the State of Montana and if this community doesn't apply for the funds, other communities will. She said one of the commitments made to TeleTech when they carve to Kalispell was that the City would do everything it could to help garner training dollars. Olson commented we should not forget that Stream pulled out of Kalispell and TeleTech picked up the obligation with 450 employees. He said we have one of the largest employers in the area asking for federal dollars that everybody has the right to go after. Larson remarked that in an ideal world everyone could turn down grants, but this isn't an ideal world and as long as they meet the criteria TeleTech should be allowed to apply for the grant. The motion carried upon roll call vote with Atkinson, Kenyon, Kluesner, Larson, Olson, Saverud, and Mayor Kennedy voting in favor, Hafferman voting against, and Gabriel absent. GI2. ORDINANCE 1604 — PLANNED UNIT DEVELOPMENT AGREEMENT AMENDMENT — HILTON GARDEN INN — 2ND READING A request has been made for the Council to amend the language in the Hilton PUD agreement addressing casino signage. ordinance 1604 passed on a six -to -one vote March 19. Larson moved second reading of ordinance 1604, an ordinance to amend Ordinance 1574, which amended Section 27.02.010, official Zoning Map, City of Kalispell Zoning ordinance, (ordinance No.1460), by zoning certain real property more particularly described as Tract 1 of Certificate of Survey No.17045, a tract of land, situated, tying, and being in the north half of the Northwest Quarter of Section 20, Township 28 North, Range 21 west, P.M.M., Flathead Kalispell City Council Minutes April 2, 2007 Page 4 County, Montana (previously zoned City P-1, Public) to City B-2 (General Business), with a planned unit development overlay in accordance with the Kalispell Growth Policy 2020, and to provide an effective date. The motion was seconded. Kenyon commented he voted against this at the first reading because he feels the sign does advertise gambling, despite that the sign doesn't actually have "casino" in the name. In fact, he said there is already a large billboard near the hospital advertising the Hilton with the Silver Canyon as a casino. Atkinson agreed. The motion carried upon roll call vote with Hafferman, Kluesner, Larson, Olson, Saverud, and Mayor Kennedy voting in favor, Atkinson and Kenyon voting against, and Gabriel absent. G13. CONDITIONAL USE PERMIT — FLATHEAD ATTENTION HOME This is a request by Lance Isaak for a Conditional Use Permit to locate a shelter care facility for youths at the corner of Sth Avenue East North and East Oregon Street. Larson moved Council approve the conditional use permit for the Flathead Attention Home. The motion was seconded. Johnson gave a staff report and answered questions. Hafferman stated his only concern is the parking, which was somewhat addressed with the home's informal agreement with Shining Mountain Church. He said in order to assure that additional parking is available he feels a formal agreement is required. Hafferman moved that Condition #6 be added to the permit stating, "A signed and recorded document between the property owners of this proposal and the owners of the Shining Mountain Church agreeing to allow up to ten cars to park in the church's parking lot during Monday through Friday from 8:00 a.m, to 5:00 p.m. with exceptions necessitated by uses needed for Shining Mountain Church activities". The motion was seconded. Harball noted that per State law, additional conditions cannot be added to a shelter care facility that would not normally be added to residences in general, especially if it could Jeopardize the project. Hafferman said the parking is not related to residential use and he doesn't feel the Council is violating any State laws with the motion. Jentz reiterated a group home is a protected class. He said Kalispell actually challenged that several years ago in the courts and Kalispell lost. The amendment failed upon vote with Hafferman and Kenyon voting in favor, Atkinson, Kluesner, Larson, Olson, Saverud, and Mayor Kennedy voting against, and Gabriel absent. There was no further discussion. Kalispell City Council Minutes April 2, 2007 Page 5 The motion carried unanimously upon vote with Gabriel absent. G/4. PRESENTATION —ANNEXATION. INITIAL ZONING. AND PRELIMINARY PLAT REQUEST —COTTAGE GARDENS Apex 1, LLC is requesting annexation, zoning, and preliminary plat approval for a 30--lot subdivision on approximately 11 acres located on the north side of Three Mile Drive. Jentz gave a staff report and answered questions. He explained that the applicants had applied for a variance in order to use two rear lots, but the Planning Board denied their request. He said the applicants are in the process of contacting the Montana Department of Transportation to move the access in order to use those lots, but if they can't, the two rear lots will not be used and only 28 lots will be built. G15. RESOLUTION 5189 -- ANNEXATION — COTTAGE GARDENS The property proposed for annexation is located near the intersection of Meadows Lane and Three Mile Drive. Kenyon moved Resolution 5189, a resolution to provide for the alteration of the boundaries of the City of Kalispell by including therein as an annexation certain real property, more particularly described as Assessors Tract IAC and further described as Tract 1 of Certificate of Survey 9981, and as more particularly described on Exhibit "A" in Section 2, Township 28 North, Range 22 west, P.M.M., Flathead County, Montana, to be known as Cottage Gardens Addition No. 390; to zone said property in accordance with the Kalispell zoning ordinance, and to declare an effective date. The motion was seconded. There was no discussion. The motion carried unanimously upon roll call vote with Gabriel absent, G16. ORDINANCE 1605 — INITIAL ZONING -- COTTAGE GARDENS Apex 1 is requesting a zoning designation of R-3, Urban Single Family Residential, on the property listed above. Atkinson moved first reading of ordinance 1605, an ordinance to amend Section 27.02.010, official zoning map, City of Kalispell zoning ordinance, (Ordinance No. 1460), by zoning certain real property, more particularly described as Assessors Tract IAC and further described as Tract 1 of Certificate of Survey 9981, and as more particularly described on Exhibit "A" 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. There was no discussion. Kalispell City Council Minutes April 2, 2007 Page 6 The motion carried unanimously upon roll call vote with Gabriel absent. G17. RESOLUTION 5190 -- PRELIMINARY PLAT -- COTTAGE GARDENS Apex 1 is also requesting preliminary plat approval to create 30 lots on the property listed above. Kenyon moved Resolution 5190, a resolution conditionally approving the preliminary plat of Cottage Gardens Subdivision, more particularly described as Tract IAC and further described as Tract 1 of Certificate of Survey 9981, in Section Z, Township 28 North, Range 22 West, P.M.M., Flathead County, Montana. The motion was seconded. There was no discussion. The motion carried unanimously upon roll call vote with Gabriel absent. G18. RESOLUTION 5191 — CONSTR.UCTION AGREEMENT -- MONTANA DEPARTMENT OF TRANSPORTATION This resolution approves a construction agreement between the City of Kalispell and the Montana Department of Transportation for the development of Reserve Loop. Atkinson moved Resolution 5191, a resolution authorizing the Mayor of Kalispell to execute the construction agreement of Federal Aid Project No. MT 15(71) with the State of Montana, acting by and through the Department of Transportation. The motion was seconded. Jentz gave a staff report explaining that this is a standard contract, however, it includes a provision that the City will be participating with the State to extend water and sewer utilities at the Reserve and Stillwater intersection to anticipate future development. Hansz answered questions. There was no further discussion. The motion carried unanimously upon roll call vote with Gabriel absent. H. MAYOR/COUNCIL/CITY MANAGER'S REPORTS No Action Kenyon announced he will be absent for the next two meetings. I. ADJ URN The meeting was adjourned at 8: 35 p.m. ATTEST: Theresa White City Clerk Pamela B. Kennedy Mayor Kalispell City Council Minutes April 2, 2007 Page 7 Three Rivers Bank of Montana is independently owned, and locally operated and Ps a vital contributor of time, talent, and resources to the communities we serve. We are dedicated, to enhancing our sharebold.ers value, and committed to nxakin.9 our work environment enjoyable, educational, and fulfilling. City of Kalispell Mayor Pam Kennedy Kalispell City council Members P. 0. Box 1997 Kalispell, MT. 59901 Re: Final Report: Impact Fees for the Transportation System Dear Mayor Pam Kennedy and council Members r C) r Upon review of the final report detailing the findings, conclusions and recommendation by HDR Engineering Inc. (DBAIHDRIEES) for the determination of cost based impact fees for the city of Kalispell Transportation System; Three Rivers Bank of Montana is considering a complete remodel and a new addition of 7,432 square feet to its bank on East Idaho. The impact fee unit for banks that the City is considering is $19,202.00 per 1,000 new sq. ft. The impact fees which Kalispell's city Council is considering to approve will cost the bank $142,709. Additionally the bank will pay for building permits, hook up fees and future increases in real property taxes. The report states and I quote "One of driving farces behind establishing cost -base impact fees is that Growth pays for Growth". Yes, Three Rivers Bank will hopefully grow after the remodel and increased building size. The question is will the public traffic use to the bank increase substantially? Idaho �: anlz: 2.33 E Idaho * R 0. Box 7250 • Kalispell, MT 59904-0250 • 406---755--4271 • Fax 406--257---021-9 - 1-800-772 -7968 �. .ea it I�i1. 552 7. Meridian Road l a ispeli, I�'IT 59 ��1_ =t C� 755-5 -3 Pax 406-257_-021.2 MEMBER F.D.I.C. V'k- I — Ite: www.threeriversbai-kzno3-itan.a.c(-)z-ii. 121 F W11, Hr,* j IFS LEk0.R Today Three Rivers Bank has two banks located in the City, with a total building square footage of 21 1000 sq. ft. The vehicle traffic for the year of 2006 was 316 vehicle visits per day, which include 70 to and from visits by bank's own employees. The 2005 daily traffic was 373 vehicle visits per day. The management of the bank attributes this drop in vehicle visits to increased customer usage of online banking. Bank management predicts the vehicle visits to the bank will continue to decrease, as the public becomes more educated with online banking. The numbers were gathered from the number of teller transactions, loans made by the bank, ATM transactions and employees driving to and from the bank. I would like to point out both banks are only open from 7:30 a.m. to 6:00 p.m. Monday through Friday. In comparison the impact fee schedule for a restaurant operating 7 days a week, at longer hours per day is $3,423 per 1,000 sq. ft. This is $15,779 less per 1,000 sq. ft. than a banks impact fee. This does not make any sense. A business operating 7 days a week will be charged less of an impact fee than a business in operation 5 days a week. Which of these businesses would have a greater impact on traffic? I agree the City of Kalispell needs to charge impact fees on businesses to enhance our City, however, the impact fees need to be equitable and fair to all businesses. There is no reason to charge one business higher impact fees than another business, when each business provides tax revenue, employment, longevity and real property improvements to the City we live in. If the City Council approves the impact Fee Structure recommended by HDR/BES, does the City of Kalispell really want businesses to stay in Kalispell? In 1906, the Kalispell City Council approved the Railroad to move to Stump Town aka Whitefish. That decision has been one of the gravest errors in judgement made by a City Council as it allowed business to leave Kalispell. By approving the recommended Impact Fee Structure, the City of Kalispell has an opportunity to lose current and future business. Hopefully history will not repeat itself again. Best of luck on your pending decision. I apologize, as I'm unable to attend the meeting on 04-02- 07 due to a pending medical appointment. Sincerely yours, ,'..-----"' ems--- f4 ,•r/ -' John R. King, President/CEO Ikbh Fall rJell March 3 0, 2007 Area Chamber of Commerce The Honorable Members of Kalispell City Council City of Kalispell 312 First Avenue East Kalispell, MT 59901 RE: Transportation Impact Fee Comments: April Z, 2007 Pubic Hearing Dear Members of City Council: 4k r � m The Kalispell Chamber of Commerce has long recognized the important role of good planning and sound infrastructure to business health and community prosperity. Yet, the unprecedented population growth of the last few years and the surge in residential, retail, and commercial development, cause us to raise the priority of these issues to a new level. It is with this in mind that the Board has established four main areas of focus to guide our policies and actions on planning and infrastructure development: • providing predictability in the planning, zoning, and development process • Directing growth to areas where cost effective public services can be provided • Aligning the payment for growth with the cost of growth • Creating community prosperity while preserving Montana values and natural resources The proposed transportation impact fees affect all four of these principles, but most directly affects the goal of aligning the payment of growth with the cost of growth. As you and the Impact Fee Advisory Committee continue your analysis and evaluation of this proposal, I urge you to consider these additional factors: • The amount of the proposed fees is significant. Had these fees been in place for the theater and bank projects at Hutton Ranch, it would have added approximately $26 per square foot to their construction costs — nearly 1 million for the theater and over $100,000 for the bank. Does the proposed rate structure over -estimate road costs and the number of trips generated by these uses? • It has been reported that a property owner night appeal the formula by conducting their own traffic study. The cost of these studies is also significant and can more easily be justified when they are spread out over a large project. Fri M M C) 15 Depot Park • Kalispell, MT S 9901 (406) 75S-2800 Fax (406) 7S8-2843 • Email: info@kalispellchamber.com * www.katispelichamrber.com This leaves the smaller developer at a disadvantage and with limited options. Hove can their needs be addressed`? How accurately can a national trip generation model be applied to a rural area like Kalispell? The City and the Kalispell Chamber of Commerce share the goal that "growth pays for growth''. Impact fees are one of the tools that can help make that happen. But, are we fully utilizing other tools that might be available. Can the formula for the distribution of federal highway funds through the Montana Department of Transportation be reallocated to better address the urban highway system? Can the existing authority for a local option gas tax be considered?. Inasmuch as tourism comprises a significant portion of local traffic, could a local option tax or a local option resort tax, if adopted offset or contribute to transportation infrastructure development? Through good planning and the prudent extension of City sewer and water services, the Council has been successful in directing growth to areas where cost effective public services can be provided, will the implementation of these fees reverse that trend and once again drive residential and commercial development into unincorporated areas contributing to inefficiency, sprawl, and lour density development. The Kalispell Chamber of Commerce appreciates the opportunity to contribute our comments for your consideration. Because of the importance of our transportation system, we look forward to continuing our work with you to find the solutions that best contribute to the prosperity of Kalispell. Si ely, Jo me finer, President K ispell Chamber of Commerce N