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1. Council Minutes - Regular Meeting - January 16, 2007A REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:00 P.M., MONDAY, JANUARY 16, 20079 IN THE COUNCIL CHAMBERS AT CITY HALL IN KALISPELL, MONTANA., COUNCIL PRESIDENT DUANE LARSON PRESIDED., COUNCIL MEMBERS JIM ATKINSON, KARI GABRIEL, BOB HAFFERMAN, BOB HERRON, RANDY KENYON, TIM KLUESNER, AND HAND OLSON WERE PRESENT, MAYOR PAMELA B. KENNEDY WAS ABSENT. Also present: City Manager James Patrick, City Attorney Charles Harball, Deputy City Clerk Judi Funk, Police Chief Roger Nasset, Finance Director Amy Robertson, Public Works Director Jim Hansz, Associate Civil Engineer Susie Turner, Parks Director Mike Baker and Fire Chief Randy Brodehl. President Larson called the meeting to order and led the Pledge of Allegiance. A. AGENDA APPROVAL Kenyon moved approval of the Agenda. The motion was seconded. There was no discussion. The motion carried unanimously upon vote with Mayor Kennedy absent. B. CONSENT AGENDA APPROVAL 1. Council Minutes — Regular Meeting...— January 2 2007 Atkinson moved approval of the Consent Agenda. The motion was seconded. There was no discussion. The motion carried unanimously upon vote with Mayor Kennedy absent. C. STUDENT ISSUES None. D. PUBLIC COMMENT None. E. REPORTS/RECOMMENDATIONS AND SUBSEQUENT COUNCIL ACTION EI1. RESOLUTION 5171 -- RESOLUTION OF INTENT & CALL FOR PUBLIC HEARING -- BUDGET AMENDMENT This is a resolution calling for a public hearing to amend the budget to allow the distribution of tax increment loan monies. The public hearing would be scheduled for February 5. Kalispell City Council Minutes Jan 16, 2007 Page l Kenyon moved Resolution 5171, a resolution calling for a public hearing to amend the annual appropriations of the City of Kalispell, Montana, as set forth in the 2005-2007 budget adopted by the City Council. The motion was seconded. Patrick gave a staff report and answered questions pertaining to the intent to distribute funds from the Kalispell Center Mall loan to the taxing jurisdictions.. There was no further discussion. The motion carried unanimously upon roll call vote with Mayor Kennedy absent. E/2. RESOLUTION 51.72 — RESOLUTION OF INTENT TO SUPPORT AN INTER. - LOCAL E911 DISPATCH CENTER This resolution authorizes the City Manager to continue negotiations on the establishment of a central dispatch center. Gabriel moved Resolution 5172, a resolution of intent to support an agreement to establish an E911 Central Administrative body composed of representatives of Flathead Valley public agencies for the purpose of administering coordinated E91.1 Dispatch services and for the sharing of costs. The motion was seconded. Patrick gave a staff report. There was no discussion. The motion carried unanimously upon roll Call vote with Mayor Kennedy absent. E13. MOTION -- FINANCING FOR CITY HALL REMODEL Four options will be considered by Council on how to structure the financing to remodel the new City Hall. The options are: 1. Move to use Board of Investment loan for the purchase and remodeling and taking $300,000 from the Armory sale cash proceeds for the projected shortfall. 2. Move to refinance the purchase of the wells Fargo Bank and the financing of the remodeling through Municipal Services Group for a period of fifteen years at a fixed interest rate of 4.45% and take $300,000 from the Armory sale cash proceeds for the projected shortfall. 3. Move to refinance the purchase of the Wells Fargo Bank through Municipal Services Group for a period of fifteen years at a fixed rate of approximately 4.5 % and financing the remodel by using the proceeds from the sale of the Armory and placing $100,000 a year back into the Capital Projects account as well as the interest it would earn for future capital projects as designated by City Council. Kalispell City Council Minutes Jan 16, 2007 Page 2 4. Move to continue the purchase of the Wells Fargo Bank through the Board of Investments for a period of ten years with a variable rate currently at 4.75 % and funding the remodel by using the proceeds from the sale of the Armory and placing $100,000 a year back into the Capital Projects account as well as the interest it would earn for future capital projects as designated by City Council. Atkinson moved option I to use Board of Investments loan for the purchase and remodeling and use $300,000 from the Armory sale cash proceeds for the projected shortfall. The motion was seconded. There was discussion regarding the Board of Investments interest rates. Atkinson withdrew his motion. The second concurred. Atkinson moved option 4 to continue the purchase of the wells Fargo Bank through the Board of Investments for a period of ten years with a variable rate currently at 4.75% and fund the remodeling by using the proceeds from the sale of the Armory and placing $100,000 a year back into the Capital Projects account as well as the interest it would earn for future capital projects as designated by the City Council. The motion was seconded. Patrick gave a staff report and answered questions. Olson asked if staff could find out what it would cost at a fixed 4.45 % rate and what it would cost to prepay the Board of Investments. Patrick explained the 4.45 % is for refinancing the purchase of the building as well as the remodeling; the difference between options 3 and 4 was that option 3 is a 15 year loan at a 4.5% fixed interest rate and option 4 is a 10 year loan at a 4.75% variable rate. Herron stated that the real issue is the remodeling and that we can look for a better rate and refinance the purchase of the building at any time. Kluesner commented that Municipal Services Group is not a Montana company and that using the Armory money would be zero percent interest. Hafferman stated he would not be in favor of option 3 because it is a 15 year term and it would cost a considerable amount of interest. There was discussion of variable rates vs. fixed rates. Kluesner moved the motion be amended to state that all interest that has accrued since the Armory sale and all monies that are not disbursed for the remodel be deposited into the referenced Capital Projects account. The motion was seconded. Atkinson commented we are already putting $100,000 back into that account. Iluesner stated that he wants the interest accrued from the Armory sale in that account as well. Kalispell City Council Minutes Jan 16, 2007 Page 3 Patrick explained that all Armory money has already been set aside in the General Fund; the interest is earmarked for the Capital Project fund. There was further discussion regarding the General Fund. Kluesner withdrew his amendment. The second concurred. There was no further discussion. The motion carried unanimously upon roll call vote with Gabriel and Mayor Kennedy absent. F. MAYO GOIINCIL CITY MANAGER'S REPORTS No Action President Larson reminded Council that there is a Fifth Monday meeting scheduled on January 29 in Whitefish at 7:00 pm. President Larson asked that the "Goodwill Fund" be scheduled for a work session very soon. Olson asked that a work session be scheduled to discuss refinancing the balance of the Wells Fargo loan to a fixed rate instead of a variable rate. Herron stated he has received many complaints about the lack of a left turn signal at Meridian and Three Mile Drive. He asked that a work session be scheduled to discuss the issue. Hafferman stated that as of December 15 we are now collecting impact fees for police and fire and asked if commercial properties are paying them as well. Patrick replied they are. Patrick asked Council to check their availability for a Saturday "strategy meeting'. G. ADJOURN The meeting was adjourned at 7:42 p.m. ATTEST: Theresa White City Clerk Pamela B. Kennedy Mayor Kalispell City Council Minutes Jan 16, 2007 Page 4