1. Council Minutes - Regular Meeting - March 21, 2005A REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:00
P.M., MONDAY, MARCH 21, 2005, IN THE COUNCIL CHAMBERS AT CITY HALL IN
KALISPELL, MONTANA. MAYOR PAMELA B. KENNEDY PRESIDED. COUNCIL
MEMBERS JIM ATKINSON, KAKI GABRIEL, BOB HAFFERMAN, BOB HERRON,
RANDY KENYON, DUANE LARSON, HANK OLSON, AND JAYSON PETERS WERE
PRESENT.
Also present: City Manager James Patrick, Adjutant City Attorney Rich Hickel, City Clerk Theresa
White, Community Development Director Susan Moyer, Finance Director Amy Robertson, Fire
Chief Randy Brodehl, Parks and Recreation Director Mike Baker, Police Chief Frank Garner, .Public
Works Director Jim Hansz, and Tri-City Senior Planner Narda Wilson.
Mayor Kennedy called the meeting to order and led the Pledge of Allegiance.
A. AGENDA APPROVAL
Peters moved approval of the Agenda. The motion was seconded.
There was no discussion.
The motion carried unanimously upon vote.
B. CONSENT AGENDA APPROVAL
Council Minutes — Regular. Meeting March 7 2005
2. Ordinance 1527 — Zoning Text Amendment — 2nd Reading
This is a request by the City of Kalispell for an amendment to the Kalispell Zoning
Ordinance to develop a definition for safe houses and domestic violence shelters to be
included in all zoning districts. Ordinance 1527 passed on first reading March 7th.
Atkinson moved approval of the Consent Agenda. The motion was seconded.
There was no discussion.
The motion carried unanimously upon roll call vote.
C. STUDENT ISSUES
None.
D. PUBLIC COMMENT
Jerry Snell,1.11 Ist Avenue East, stated be owns an apartment complex at 737 East California Street
and if Council passes Ordinance 1528 his tenants will lose "a great deal of parking". He submitted a
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March 21, 2005
Page l
petition with twenty signatures opposing the parking restriction on East California Street. (Petition is
attached and by this reference is .made a part of the official record)
Erica Wirtala, Sands Surveying, stated she's available to answer any questions in connection with the
final plat request for Glacier Village Greens Phase 17.
The following_ spoke in opposition to Resolutions 4989 and 4990
Lex Blood, 844 3rd Avenue East, reiterated for the record, "The biggest gap in this entire scenario is
that while there has been extensive study given to various sites for the airport, there has been no
overarching evaluation of the hest and highest use for this land. With comparative information in
band, the city and taxpayers can make an informed decision". Blood said the Council has three
choices: 1) pass the resolutions; 2) deny the resolutions; or 3) place therm on the November ballot and
let the taxpayers decide. He urged the Council to put the issue before the voters.
Carl Feig, 305 Forest Hills Village, asked why the only use for this property has been as an airport,
and its "generous liabilities". He said he hopes the Council votes for the benefit of many taxpayers
and voters.
Norbert Donahue, 144 Crestline Drive, said a source he has at the County government stated the
taxes coming from Rosauer's and Southfield Park would not cover a two million dollar bond issue.
Donahue said there's no way the City can pass the motion to sell the bonds. He suggested if the
pilots want to continue with the improvements, then they should do what the golf course did and
raise their own money.
Jean Johnson, member of the board of directors for the Kalispell Business Association, said the
association asked its members if the City should spend two million dollars on renovating the airport
and 92% answered no, with only 8% answering yes.
Bill Boharski (Past Mayor), 9 Windward Loop, stated the City's commitment to the airport has
always been one million dollars. He said approximately $270,000 has already been spent on fencing
with another $500,000 for land acquisition. Boharski said that amount, added to the 1.9 million
dollars in bonds, brings the expenditure to about two and a half million dollars, way beyond the
original commitment.
The followin s oke in favor of Resolutions 4989 and 4990
David Downey, 344 6th Avenue East, commented you could build a lot of townhouses on the golf
course. He said the City airport is the most used non-commercial airport in the State and once it's
improved, the City will have a valuable asset.
Mike Strand,1715 Foys Lake Road, stated the airport serves much more than just the owners of 75
aircraft. He said his business, along with Stockhill Aviation, Red Eagle Aviation, Diamond Aire,
Mountain West Helicopters, and others were there to meet the needs of Kalispell and the valley by
providing charter service, air ambulance, flight training, search and rescue, etc. Strand said without
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March 21, 2005
Page 2
the City airport, people flying into the valley will land at Glacier Park Internatlional Airport and will
probably never visit Kalispell.
Scott Richardson, Airport Advisory Board Chairman, said the decision has already been made to
keep and invest in the airport. He noted two million dollars is a lot of money, however, a large
investment now, which will be repaid from TIF monies and FAA reimbursements, will result in
increased property values for everyone in that part of town and will make the airport a functional
transportation facility for northwest Montana.
E. REPORTS/RECOMMENDAITONS AND SUBSEQUENT COUNCIL ACTION
E/l. RESOLUTION 4989 — DESIGNATING CERTAIN AIRPORT IMPROVEMENTS AS
URBAN RENEWAL PROTECTS
This resolution approves the improvements for Phase I of the City airport as projects within the
Urban Renewal District.
Larson moved Resolution 49891, a resolution designating and approving improvements and
additions to the Kalispell City Airport as an urban renewal project within the Airport/Athletic
Complex Redevelopment Plan. The motion was seconded.
Patrick gave a staff report, explaining this resolution is necessary to specify certain improvements
within Phase I of the airport project and is necessary for the City to go forward with the expenditure
of tax increment funds or for the sale of bonds to finance the project. In response to a comment
made by the public, Patrick stated the County is not privy to the City's development agreements
which require $147,000 from Rosauer's and Southfield "Powers in addition to the taxes they already
pay. He said staff met with bond counsel this morning and it was determined there is more than
sufficient funds in the TIF to pay back the bonds. Patrick emphasized this is not a decision whether
to keep the airport, this is about improving the airport and keeping it safe, adding that bonding these
improvements will not affect taxpayers.
Hafferman read the following statement: "Shortly after I became a member of this council, I was
informed that the city share of airport improvements was to come from the sale of $1,000,000 of
airport property. Through the various meetings, Final Environmental Assessment and hearing,
information was presented that the project would cost about $6.9 million" "90% of the $6.9 million
was to come from the FAA from national airport user fees, not taxpayers." Hafferman continued,
"All along I supported the airport improvement project because it would not involve using taxpayer
funds and it would be self supporting. However, at the gathering to meet the prospective candidates
for city manager late last year, Fred Leistiko informed me that the plan was to use tax increment
funds for running utilities to certain locations. At that time I could no longer support the airport
project because taxpayer money was now being used. That certainly did not mesh with what I had
heard stated all along and during the discussions on the Final Environmental Assessment".
Hafferman said TIF funds are taxpayer funds and he will be voting against the resolution.
Hafferman inquired about the purchase of Red Eagle Aviation; asking if it will be changed, if it pays
taxes now, and whether there will be taxes going to the City's general fund after the purchase.
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March 21, 2005
Page 3
Patrick responded that Red Eagle Aviation must be purchased because it's in the RPZ (Runway
Protection Zone) and it's so close to the taxiways that the planes' wings are actually overhanging on
private property. He said this is a reimbursable expense from the FAA and the intent is to relocate
them on the other side of the airfield. Patrick stated Red Eagle will remain on the tax roll and they
plan on using the proceeds to construct new buildings that will benefit the airport and the City's tax
base.
Peters stated he's always been one of the biggest supporters of the airport and he feels the best and
highest use of an airport is an airport. Peters commented he's not questioning the validity of this
project, but he is questioning how it's being funded. He said from the onset a commitment was
made to earmark a million dollars for the airport, which he supported, but now the Council's looking
at a bond for two million. Peters said he will continue to support the airport, but he will not support
using TIF funds.
Patrick answered that most of this money will be reimbursed by the FAA, but the City has to spend
the money to get the reimbursement.
Kenyon asked if the FAA reimbursement is a "sure bet".
Patrick said as Airport Manager Fred Leistiko has pointed out, the City airport is on the National
Airport Improvement System list for an amount of 7.63 million dollars. He said from the beginning
the FAA, as well as the State Aeronautics Board, has listed this airport as the number one project in
Montana. Patrick said there are certain conditions that have to be met, but the monies have been
appropriated and Kalispell is in line to receive those monies later on. He stated even if the City
never completes Phase II or Phase 11I, Phase I will make this airport a safer and more conducive
environment for pilots.
Kenyon asked if the money received will be placed back into the tax increment fund.
Patrick answered it would be placed back into the TIF to be used on Phase 11 projects, as well as to
pay off the bonds.
Larson said there are a lot of air parks across the United States located within city limits and the City
is on the right track to make this airport a good revenue producer. He said the airport is an asset to
the City, and as an asset, the City needs to take care of it. Larson commented there have been several
references to the highest and best use of this property, but he doesn't think those two words fit
together; it should be highest or best use. He said the golf course may not be the highest use for the
land, but he feels it's the best use, and the same can be said for the Hockaday Museum, Lawrence
Park, etc. Larson said all of them are owned by the City and when necessary, the City spends money
to upgrade them despite the fact none of them are great revenue producers. He said the City needs
this "seed" money to move ahead and he supports the resolution, encouraging the other members to
support it also_
Peters questioned why the airport isn't using its reserves to bond the money.
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March 21, 2005
Page 4
Patrick responded that currently the airport is receiving $1.9,000 per year in revenue which is
insufficient to bond for this project and the $450,000 that is in the airport fund is less than what is
needed to make the improvements. He said without the City's involvement the projects will not
proceed, adding he feels strongly the improvements will pay for themselves. Patrick said a
technology company has expressed interest in locating on the property, along with three developers
who would like to build hangars which will generate approximately $750,000 in taxes.
Olson said Phase I will make the airport safe and he doesn't know how the City can do anything but
move ahead. He agreed with Peters that now the Council needs to discuss how to fund it.
Herron commented it's been suggested that unless these bonds are approved, the hangars won't be
built. He stated the Council has already voted to install utilities in that area in the amount of
$225,000 that will come from the TIF fund, not the airport monies. He said whether the Council
votes for this bond or not, the utilities will still be installed and the commitments made to the people
building hangars will have been met.
Patrick clarified the Council did vote on installing the utilities, but at the same time also voted to be
reimbursed from the sale of these bonds. He agreed that if the bonds are not approved the utilities
would still be put in, however, there is only about $600,000 in the TIF account which won't come
close to covering 1.7 million dollars in purchases and improvements. Patrick said the utilities are
only one aspect, you still need to put in the taxiways and ramps that allow planes to reach the
hangars.
Kenyon said he's also been a strong supporter of the airport and the improvements, but following the
public hearing at the last meeting, he feels it's a "close call". He said he will probably vote in favor
of this because he feels safety is a significant issue.
The motion carried upon roll call vote with Atkinson., Gabriel, Kenyon, Larson, Olson, and
Mayor Kennedy voting in favor, and Hafferman, Herron, and Peters voting against.
E12. RESOLUTION 4990 — CALLING FOR THE SALE OF BONDS — AIRPORT
IMPROVEMENTS
This resolution authorizes the negotiated sale of up to $2,000,000 of Tax Increment Urban Renewal
Revenue Bonds for the Kalispell City Airport Redevelopment Plan.
Larson moved Resolution 4990, a resolution relating to up to $2,000,000 Urban Renewal
Airport Tax Increment Revenue bonds, Series 2005; authorizing the issuance and private
negotiated sale thereof for the purpose of financing a portion of the costs of an airport urban
renewal project subject to ratification and approval by the City Council; and delegating
certain duties related thereto to the Mayor, City Manager and Finance Director. The motion
was seconded.
Peters clarified this is a twenty year bond.
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March 21, 2005
Page 5
Patrick said even though the resolution states twenty years, bond counsel feels fifteen years is
feasible.
Hafferman read the following statement: "The public hearing held at the last meeting was supposed
to address the sale of bonds. Of the 27 persons who spoke, only 7 directly addressed the bonds, 6
were against the sale and one for the sale; the latter being the President of the Montana Pilots
Association. Other respondents spoke only for or against the airport which was not the issue. The 11
"for" the airport appeared to be pilots. In addition there were 9 e-mails against the airport project.
My opposition to the sale of bonds nearly echoes the e-mail from Clarice Gates, partially quoted to
wit: "there is no guarantee that FAA will have the funds to reimburse as the Federal budget is
cutting many programs or limiting the amount available " and `you ' have no plans on how to pay the
expenses of removing KGEZ towers. Do you plan to sell another bond to do this and the residents of
Kalispell will have to pay for the bond?" The Final Environmental Assessment for Kalispell City
Airport, Page 2 of Appendix C: Public Involvement, states: "The FAA is requiring a Kalispell City
Airport to meet the following FAA safety standards and conditions before it will be eligible to
receive federal airport improvement matching fiends: Acquire a land area 7,100 feet long and 700
feet wide sufficient to accommodate all necessary upgrades to the airport and protect the airspace.
Remove, relocate, or lower antennas south of the current airport. Increase safety spacing in a
number of areas. Enact airspace protections and land use restrictions within about 2 miles of the
new airport". Anyone who has worked with governmental appropriations has to know that simply
listing a project does not mean anything. The listing is only a first step. Also, any verbal
communication cannot override a Final EA. Transfer of money after appropriation is the only
assurance. What about the towers, what is the status? There will be no FAA money until this
problem is resolved. There are several reasons why this resolution should not go forward:
1. FAA requirements should be resolved first before any more money is spent at the airport.
2. There is no budget item for these projects. Are we now selling bonds before we have a
public hearing on budget adoptions?
3. The Airport Urban Renewal District is due to sunset in 2006. is this council so arrogant that
we will renew this district regardless of public comment?
4. Persons who addressed the sale of bonds at the public hearing and on e-mail were
overwhelmingly against such sale.
For the tax paying public, this is not the end of bond proposals for the city airport. Probably to come
forward soon is a request to issue $2,000,000 in bonds to put up a building for a private entity, Cable
Tech. What else they may be plotting is unknown."
Patrick responded the FAA has appropriated .money for the airport, just like Montana Department of
Transportation appropriated money for Meridian Road. He said the FAA and State Aeronautics
Board have approved Kalispell's pre -applications and "$150,000 has been awarded so far in non -
entitlement grants to this airport that we have not chosen to take at this time, but to defer for one
year." Patrick emphasized the money has been appropriated and approved for this airport and the
City has to make it safer, adding people riding across the airport on bikes or drag racing up and down
the runway is not acceptable. He commented even if the City never gets anything from the FAA, the
City still has to operate a safe airport and this is a way to do it without affecting the taxpayers.
Patrick stated there hasn't been any "plotting", adding everything concerning this airport has been
brought forward to Council during work sessions or meetings.
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March 21, 2005
Page 6
Hafferman asked for a something in writing from the FAA stating the funds are available. He
commented that Kalispell would be the co-signer on this note for two million dollars and if the
economy goes bad, then the City taxpayers are left "holding the bag".
Patrick said if the economy goes bad, the City will have more problems than just with the TIF area.
Gabriel said her first priority is safety and a close second is making a good investment. She asked
how often the City will have an opportunity to spend 1.7 million dollars and get 95% back.
Peters noted if the Council, out of the 2-21h half million dollars available in the TIF district, spends
1.9 million dollars on this project then it's limiting the amount of money that can be put toward
future projects.
Patrick commented he can't think of any other project that the City could do at the airport that is
more important than making it safe.
Atkinson stated the airport is a very important economic development tool simply because some
good industry wants to move in that area and you have to spend money to make money. He said this
is a "good thing"; the City will minimize its risk in doing this and it will be an excellent addition to
the community. Atkinson added that he feels comfortable the staff has "crossed all their is and
dotted all their is".
Herron said the buck stops with the Council, not the City staff and the Council is elected to take
responsibility. He said it's clear they support the airport, but tax increment does affect taxpayers. He
said h , doesn't know why the airport isn't safe and that's not his concern; his concern is burdening
the taxpayers for up to another twenty years. Herron said if the bonds are approved the district will
not sunset and that's twenty years the increment will continue to grow and stay in the district; not
benefiting the City's general fund, the County, or the schools. He said "there's a lot of fuzzy math
here and a lot of moving targets", adding the Council is making a major decision on tax dollars
without a commitment that this is all going to work out.
Olson asked if it would be possible to purchase Red Eagle Aviation with the money left in the airport
fund and lower the bond amount.
Patrick said because of other land purchases and fencing, there is only about $455,000 left of the
million dollars which isn't enough to pay for the projects.
Olson said there is money there, however, and stated he feels additional discussion is necessary.
Olson proved to table Resolution 4990 until the first meeting in April. The motion was
seconded.
The motion to table carried upon roll call vote with Hafferman, Herron, Kenyon, Olson, Peters
and Mayor Kennedy voting in favor, and Atkinson, Gabriel, and Larson voting against.
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March 21, 2005
Page 7
E13. RESOLUTION 4991 --- AWARD THE BID FOR THE SALE OF BONDS — FIRE
STATION 62
Bids for $3,000,000 in bonds for Fire Station 62 were opened at noon today and staff recommended
the bid be awarded to Citigroup Global Markets, Inc. of Los Angeles, California.
Peters moved Resolution 499.1, a resolution relating to $3,000,000 General Obligation Bonds,
Series 2005; awarding the sale thereof and approving the official statement relating thereto.
The motion was seconded.
Patrick explained that nine bids were received. Citigroup was the lowest bidder with an interest rate
of 3.94% resulting in a net dollar interest cost of $1,062,740.63.
There was no discussion.
The motion carried unanimously upon roll call vote.
E14. RESOLUTION 4992 — DETERMINES FORM AND DETAILS OF BONDS AND
AUTHORIZES LEVY — FIRE STATION 62
This resolution completes the bond process for Fire Station 62.
Peters moved Resolution 4992, a resolution relating to $3,000,000 General Obligation Bonds,
Series 2005; determining the form and details, authorizing the execution and delivery and
levying taxes for the payment thereof. The motion was seconded.
Patrick gave a brief staff report.
There was no discussion.
The motion carried unanimously upon roll call vote.
E15. ORDINANCE 1528 —PARKING ON EAST CALIFORNIA STREET —1ST READING
This ordinance creates a no parking zone on the south side of East California Street between 7th
Avenue East North and 8th Avenue East North. Ordinance 1528 passed on first reading March 7th
on a five to four vote.
Larson moved second reading of Ordinance 1528, an ordinance to amend Section 1.7-54,
Kalispell City Code, by prohibiting parking on the south side of East California Street between
7th Avenue East North and 8th Avenue East North, and declaring an effective date. The
motion was seconded.
Patrick explained this ordinance was presented at the last meeting and staff was asked to notify
nearby property owners. Patrick said notification has occurred and the issue is back before the
Council this evening. He noted the petition presented by Jerry Snell asks the Council to deny the
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March 21, 2005
Page 8
parking restriction and is signed by owners along California Street. In addition, the person who
originally spoke with Hafferman concerning the parking problem, Clara Ellen Anderson, submitted a
letter today also asking the Council to vote against the ordinance.
Larson said he voted in favor of the ordinance at the first reading, but because of the new information
that has been presented, he is going to change his vote. He said he made five trips to that area over
the last few days, at different times, and found California Street is not any narrower that many of the
streets in town. Larson commented that he spoke with Snell and believes him when he said he was
unaware of any problems. He said other alternatives should be looked at.
Olson agreed, stating he will also vote against the ordinance.
Hafferman read the following statement: "Concern for parking in this street can be illustrated by my
Request for Action submitted to the City Manager January 19, 2005. The trailer loaded with trusses
was removed shortly thereafter which I attributed to prompt action by the City Manager and staff.
The staff report on the Request for Action was (read). During the Council comments at the February
5th Council meeting, I requested a resolution be brought forth to address this unsafe situation. I
appreciate the City Manager's prompt action to bring forth this resolution to try to get this problem
resolved. I have lately talked with both mobile home park owner Jerry Snell and resident Clara Ellen
Anderson about this problem. There is concern about parking on one side only. Mr. Snell offered
several solutions other than one -side only parking. A one-way street was mentioned, but that would
do nothing because only one car can get through now. He suggested the City widen the street. This is
a local problem which should be by SID. I explained there are much more dangerous streets in need
of Public Works improvements the chief of which, in my opinion, is Northern Lights Boulevard
north of Three Mile Drive. It is a very narrow road faced with heavy public traffic including the
traffic from the Junior High. I believe this ordinance should be tabled for two weeks to give the
residents along this street time to try to come up with a workable solution. Solutions could include
(1) one -side parking, (2) an SID for removal of the curb on the north side and replacing with a roll
over curb so parking near the mobile homes could return to the way is was before late 80s or early
90s, (3) an SID to widen the street, (4) a covenant filed on the mobile home park property by the
owner restricting parking by residents of his property, etc."
Larson said the original complainant has withdrawn her complaint and he doesn't see any useful
reason to table the issue.
Hafferman said she hasn't withdrawn her complaint; she didn't like the one -side parking. He
reiterated that he feels this is a local problem that the area residents need to resolve.
The motion failed upon roll call vote with Hafferman voting in favor, and Atkinson, Gabriel,
Herron, Kenyon, Larson, Olson, Peters, and Mayor Kennedy voting against.
E/6. FINAL PLAT - GLACIER VILLAGE GREENS PHASE 17
This is a request for final plat approval of Glacier Village Greens Phase 17 that plats eight lots for
single family homes on approximately two acres located at the northern terminus of Palmer Drive,
north of the club house between East and West Nicklaus Avenues.
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March 21, 2005
Page 9
Larson moved Council accept the subdivision improvement agreement and approve the final
plat for Glacier Village Greens Phase 17. The motion was seconded.
Wilson explained all of the improvements are in with the exception of some landscaping and some
work on a lift station. She said a subdivision improvement agreement has been submitted to cover
the remaining improvements and a letter of credit in the amount of $8,500 has been submitted.
Herron commented this is an example of private enterprise and private developers doing a very good
job and they're not going to get reimbursed by anyone.
The motion carried unanimously upon roll call vote.
E/7. FINAL PLAT — MUSKRAT SLOUGH SUBDIVISION
This is a request for final plat approval of a 20-lot residential subdivision on approximately nine
acres on the north side of Russell Drive, south of Kelly Road and west of Willow Glen Drive.
Atkinson moved Council accept the subdivision improvement agreement and approve the final
plat for Muskrat Slough Subdivision. The motion was seconded.
Wilson explained that all of the preliminary plat conditions have been met or adequately addressed
through the subdivision improvement agreement with approximately 89% of the improvements
completed. She said a letter of credit in the amount of $49,500 has been submitted to cover the
remaining work on the landscaping, sidewalks and paving.
Peters asked why we even have subdivision improvement agreements; why doesn't the developer
take care of all of the improvements prior to applying for final plat approval. He said just because
the developer bonds for the improvements doesn't mean he's going to make the improvements. Ile
said there have been a few instances recently where the developer could have walked away and stuck
the City with improvements that could cost more than the bond.
Wilson responded when the developer and the City signs a subdivision improvement agreement there
is a clause that states, "If the developer fails to complete the specified improvements within the
required period, the creditor will pay to the City immediately, and without further actions, such funds
as are necessary to finance the completion of those improvements up to the limited credit stated in
the letter." She said by signing the agreement the developer is committing to completing the
improvements by a date specific and if they default, the City has 125 % of the cost of the
improvements as certified by an engineer.
Peters said he still doesn't understand why the City doesn't require all of the improvements to be
completed before final plat.
Wilson said according to State statutes the developer can actually bond up to 100% of the
improvements. She said the City, as a matter of policy that so far hasn't been challenged, requires
two thirds to be completed.
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March 21, 2005
Page 10
Mayor Kennedy said she thinks Peters is indicating the City can allow for sornething different and
require a higher threshold.
Wilson said in her opinion, the City would be in a "fragile state of liability" if the Council tries to
raise that threshold.
Herron commented how we get there may be questionable, but the Council expects a higher standard
and when a developer says they're going to do something, then the Council expects them to do it and
there needs to be consequences if they don't.
The motion carried unanimously upon vote.
E/S. RESOLUTION 4993 — STOP SIGNS
This resolution authorizes the placement of a two-way stop sign on 10th Street East at Sth Avenue
East.
Larson moved Resolution 4993, a resolution approving the placement of stop signs on loth
Street East at its intersection with Sth Avenue East and declaring an effective date. The
motion was seconded.
Patrick explained that as part of the ongoing "Safe Route to Schools" plan a traffic study was
conducted to determine the need for traffic control devices at the intersection of Sth Avenue East and
10th Street East. He said the study indicated a two-way stop is warranted and staff is recommending
Council approve the stop signs.
There was no discussion,
The motion carried unanimously upon roll call vote.
E/9. RESOLUTION 4994 —AMENDING THE CITY'S FLEXIBLE BENEFITS PLAN
This resolution amends the City's Flexible Benefits Plan to reflect changes in accordance with the
Working Families Tax Relief Act.
Kenyon moved Resolution 4994, a resolution by the City of Kalispell approving Amendment
Number Two to the City's flexible benefits plan. The motion was seconded.
Patrick explained the amendment changes the definition of qualifying dependent to remove the one-
half support requirement and institute a residency requirement instead which is an integral
component of the dependant care assistance program.
Robertson answered questions.
There was no discussion.
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March 21, 2005
Page t t
The motion carried unanimously upon roll call vote.
E/10. RESOLUTION 4995 — AMENDING THE CITY'S VALIC PLAN
This resolution amends the City's deferred compensation plan offered to employees and lowers the
mandatory distribution amount to $1,000.
Peters moved Resolution 4995, a resolution by the City of Kalispell approving an amendment
to the City's deferred compensation plan. The motion was seconded.
Patrick explained recent changes in tax law require that the City designate what .happens to amounts
less than $5,000 which are inactive accounts. He said staff does not want to be involved in
investment planning for the employees and are therefore recommending the mandatory distributions
be lowered to $1,000 which exempts the City from the roll over requirements.
There was no discussion.
The motion carried unanimously upon roll call vote.
F. MAYOR/COUNCIL/CITY MANAGER'S REPORTS No Action
Mayor Kennedy ready a note from Betty McNabb, Butte, thanking the City for the warm welcome
given to the 639th.
Mayor Kennedy stated it's too late to hold a work session after the meeting as scheduled. She asked
the Council members to stay after the meeting to discuss alternate dates to discuss the budget goals
and objectives.
Peters asked that in addition to discussing subdivision improvement agreements at a work session, he
would also like to discuss TIF funds and the issue of sunsetting.
Patrick reported on his recent trip to Washington, D.C_
L ADJOURN
The meeting was adjourned at 9:47 p.m.
ATTEST:
Theresa White
City Clerk
Pamela B. Kennedy
Mayor
Kalispell City Council Minutes
March 21, 2005
Pabe 12
This is a petition against the no parking proposal on the south side of East California
Street between 7`h and Sh Avenue E N. If this proposal goes through there will be no
parking there. Please sign this petition and help nee keep this proposal from going
through.
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