1. Council Minutes - Regular Meeting December 20, 2004A REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:00
P.M., MONDAY, DECEMBER 20, 2004, IN THE COUNCIL CHAMBERS AT CITY HALL
IN KALISPELL, MONTANA. MAYOR PAMELA B. KENNEDY PRESIDED. COUNCIL
MEMBERS JIM ATKINSON, KARI GABRIEL, BOB HAFFERMAN, BOB HERRON,
RANDY KENYON, DUANE LARSON, HANK OLSON AND JAYSON PETERS WERE
PRESENT.
Also present: City Manager James Patrick, City Attorney Charles Harball, City Clerk Theresa White,
Community Development Director Susan Moyer, Finance Director Amy Robertson, Fire Chief
Randy Brodehl, Assistant Fire Chief/Fire Marshal Jim Stewart, 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
Kenyon 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 December 6 2004
2. Corporate Resolution — Multi-Bank/Refco Securities LLC
The City currently has investments with Multi -Bank Securities and Bear, Stearns Securities
Corporation. Multi -Bank has replaced Bear, Stearns Securities with Refco Securities and
Council is being asked to authorize signatures on the new Refco account.
Corporate Resolution — Smith Barney Investments
In order to diversify City investments, staff is requesting authorization to open an account
with Smith Barney.
4. Ordinance 1518 — Initial Zoning — Ashen Creek Subdivision - 2nd Reading
This is a request for an initial zoning designation ofR-2, Single Family Residential, with a
Planned Unit Development overlay on the property listed above. Ordinance 1518 passed on
first reading December 6th.
5. Ordinance 1519 — Initial Zoning.. —..City of Kalispell — 2nd Reading
This is a request by the City of Kalispell for an initial zoning designation of R-4, Two -
Family Residential, on the property listed above. Ordinance 1519 passed on first reading
December 6th.
6. Ordinance 1520 — Initial Zoning — City of Kalispell — 2nd Readin
This is a request by the City of Kalispell for an initial zoning designation of I-1, Light
Industrial, on the property listed above. Ordinance 1520 passed on first reading December
6th,
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December 20, 2004
Page i
7. Ordinance 1521 ---- Initial Zoning — City of Kalispell - 2nd Reading
This is a request by the City of Kalispell for an initial zoning designation of RA-1, Low
Density Residential Apartment, on the property listed above. Ordinance 1521 passed on first
reading December 6th.
8, Award Bid — Kalispell City..Airport Improvements --- North End Utilities
Five bids were received to extend utilities through the north end of the Kalispell City
Airport. Staff recommended the bid be awarded to Windy Ridge Construction of Plains,
Montana for a total amount of $86,933.21.
9. Award Bid ---- Utility. and Survey Vans
Three local bids were received along with the State program bid on two cargo vans to replace
the water meter installer's van and the surveyor's van. Staff recommended Council accept
the State fleet purchase bid submitted by Grimes Motors of Helena for a total amount of
$27,796.00.
Atkinson moved approval of the Consent Agenda. The motion was seconded.
Hafferman moved to remove Item ##S, Award Bid, Kalispell Airport Improvements, from the
Consent Agenda and place it on the main agenda as Agenda Item 48. The motion was
seconded.
The amendment failed upon roll call vote with Hafferman, Herron, and Peters voting in favor,
and Atkinson, Gabriel, Kenyon, Larson., Olson and Mayor Kennedy voting against.
Hafferman commented he will have to vote against the Consent Agenda because of his opposition to
#8. He said he was "told all along" that airport improvements would be financed from the sale of
property and now the proposal is to use tax increment fiends to pay for infrastructure. Hafferman
added "that means the taxpayers must be assessed to pay for services because the money skimmed
from the tax assessments go to the tax increment slush fund. There is no way the taxpayer will
recoup this expenditure for utilities".
The main motion carried upon roll call vote with Atkinson, Gabriel, Herron, Kenyon, Larson,
Olson, Peters and Mayor Kennedy voting in favor, and Hafferman voting against.
C. STUDENT ISSUES
None.
D. PUBLIC COMMENT
Bill Buxton, Morrison Maierle, Inc., said he represents Mark Owens and Owl Corporation and is
available to answer questions concerning Agenda Item #4, West View Estates Developer's Extension
Agreement.
Steven Smith, CTA Architects Engineers, expressed concern with the West View Estates proposal
and how it will impact the future high school. Smith said the system development charges for a new
school were estimated at $160,000 by the City of Kalispell, but if this proposal is approved, it would
increase the fee to $285,000, greatly impacting the budget. Smith commented the proposal calculates
the fee based on the peak instantaneous usage which works well for residences, but not for schools.
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December 20, 2004
Page 2
E. PUBLIC HEARING — PRELIMINARY PLAT -- CASCADE BUSINESS PARK
Mayor Kennedy opened the public hearing.
Proponents
John Schwarz, Schwarz Architecture and Engineering, said he is available to answer questions.
Opponents
None.
Mayor Kennedy closed the public hearing.
F. REPORTS/RECOMMENDATIONS AND SUBSEOUENT COUNCIL ACTION
F/1. RESOLUTION 4964 — PRELIMINARY PLAT — CASCADE BUSINESS PARK
(AMENDED PLAT OF GATEWAY WEST ADDITION 434)
This is a request for preliminary plat approval of an eight -lot commercial subdivision on
approximately eleven acres located south of Two Mile Drive and west of Gateway West Mall.
Larson moved Resolution 4964, a resolution conditionally approving the preliminary plat of
Cascade Business Park, more particularly described as Lot 1 of the Amended Plat of Part of
the Gateway West Mall Addition No. 34 located in Section 12, Township 28 North, Range 21
West, P.M.M., Flathead County, Montana. The motion was seconded.
Wilson gave a staff report explaining this proposal originally came before the planning board in
January, 2002, and has been on hold ever since, partly because of the developer's desire to partner
with the City in the reconstruction of Financial Drive. She said as part of their application, the
developer requested three variances from the subdivision regulations relating to road standards: 1)
allow a 40 foot right-of-way for the north 230 feet of Financial Drive; 2) allow Financial Drive to
remain as it exists and add an 8 foot wide bike path on the east side of the road; and 3) not require
sidewalks on the internal subdivision road. Wilson noted the planning board recommended approval
of the first variance with denial of the other two. She stated Council is now being asked to approve
the preliminary plat with several conditions, including a recommendation that Condition 12 ("That
the encroachment of the existing building within the setback area and right-of-way on proposed Lot
1 be addressed to the satisfaction of the Kalispell Zoning Administrator") be deleted and Condition 2
be amended as follows: "That the infrastructure for the subdivision shall be designed and constructed
in compliance with the City of Kalispell's Design and Construction Standards for local streets which
shall include a minimum 24 foot wide paved roadway, curb, gutter, sidewalk and a landscape
boulevard. Except that a variance shall be granted allowing a 40 foot right-of-way for the full length
of Financial Drive with the improvements to be reviewed and approved by the Kalispell Public
Works Department that include a minimum 24 foot wide paved roadway, curb, gutter and attached
sidewalk on both sides of the street. Street trees are to be placed along the western side of Financial
Drive within the previously required 20 foot right-of-way. Certification from an engineer licensed in
the State of Montana shall be submitted with the final plat stating that all of the improvements have
been constructed accordingly"
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December 20, 2004
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Hafferman said he requested at the last work session a means for authorizing a 40 foot right-of-way
in the revision of the 1996 Design and Construction Standards. He said that suggestion didn't get
support from a majority of the Council, therefore, a 60 foot right-of-way is required. Hafferman said
it would have been nice to consider options, but the majority of the council last Monday seemed to
indicate a preference for 60 feet. He said he searched the existing construction standards to see if
there were any loopholes and the only thing he could find was a provision for more than 60 feet, but
no less. Hafferman added that to his knowledge, the City doesn't have a 60 foot easement or right -of
way through the Gateway West parking lot to US 2 and if the City doesn't have that right-of-way,
the road can't be part of the grid system. He said it's his recommendation that the planning board's
recommendation be followed denying approval of the two variances requested.
Wilson noted even though it's not a standard per se in the City's standards for design and
construction of roadways, the subdivision regulations have a provision for a variance to the right-of-
way standards of 60 feet based on specific evaluation criteria. She said overall this provision has
been an effective relief mechanism when special consideration is warranted.
The motion carried upon roll call vote with Atkinson, Gabriel, Herron, Kenyon, Larson,
Olson, Peters and Mayor Kennedy voting in favor, and Hafferman voting against.
Ff2. RESOLUTION 4965 — CASCADE PROPERTIES DEVELOPMENT REQUEST
Cascade -Properties is requesting the City participate in cost -sharing for the upgrade of Financial
Drive.
Larson moved Resolution 4965, a resolution to authorize the use of $42,500 of West Side Urban
Renewal Tax Increment Financing Funds to contribute to the upgrade of Financial Drive to
City standards. The motion was seconded.
Patrick explained the $42,500 of tax increment funds will be used with the developers' funds to
reconstruct Financial Drive to benefit the community at large. He said the cost sharing will
encourage the developer to move ahead with approximately 59.4 million of construction on Lots 1,
3, 6 and 7 with an increase in the tax base around $20,000 per year. Patrick added the City will own
the road upon completion of construction.
Hafferman commented this development isn't different from any other in the City and he doesn't
understand why the City wants to help some developers and not others. He added this system cannot
be a grid system and the City is leading into problems by telling people we approve of them using
another person's property to get from Two Mile Drive to US 2. Hafferman recommended this road
remain private until the developer obtains the necessary right-of-way or easements through Gateway
West Mall that conforms to City standards.
Peters said he's concerned about the City's liability having this road as a thoroughfare and asked if
there is anything that says we have to have this as a dedicated street.
Patrick answered the intent is to take the road over as a City street. He said that area is already being
used as a thoroughfare for people coming from Two Mile Drive and since the City already owns part
of the Gateway West Mall, it only makes sense to have this as a public right-of-way.
Peters reiterated that his main concern is the City's liability.
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December 20, 2004
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Harball noted all of the City's streets access private property and doesn't see any reason for concern.
Peters said maybe liability isn't the right word, however, he wants the City to address the road from
a design standard to make sure it's a primary access to Cascade and only a secondary access to the
inall.
Patrick assured the Council they would look at traffic calming measures.
Atkinson said if American Capital doesn't want people using the road as a defacto bypass, then it
would be up to them to take measures preventing that.
The motion carried upon roll call vote with Atkinson, Gabriel, Herron, Kenyon, Larson,
Olson, Peters and Mayor Kennedy voting in favor, and Hafferman voting against.
F/3. RESOLUTION 4966 - AUTHORIZING ENGINEERING STUDY - WHITEFISH
STAGE SEWER SERVICE
This resolution authorizes a preliminary engineering study to develop Kalispell's municipal sewer
system north of Reserve on Whitefish Stage.
Atkinson moved Resolution 4966, a resolution to authorize the expenditure of funds, estimated
to be under S44,000, to conduct a preliminary engineering study to determine the feasibility
and costs of providing municipal sewer services to that area north of Reserve Drive along the
Whitefish Stage Road and vicinity. The motion was seconded.
Patrick explained this study doesn't obligate the City in any way, but it does provide preliminary
cost data and some design engineering.
Peters stated he's been an advocate all along for extending the sewer system to that area, however, he
stated he's a little hesitant about moving ahead until the City is sure it "has partners to do this with".
Patrick said he has had some preliminary conversations with developers, but he's reluctant to get too
deeply involved until the Council indicates it's an action they want to take.
Mayor Kennedy said the engineering study will provide cost estimates for construction which any
potential partners will want to know prior to making a decision. She said she sees this as a first step
to allow the City to move forward and offer developers precise information.
Hafferman commented with several licensed engineers on staff, this should be a "slam dunk" without
having to spend too much time. He said he anticipated eight to sixteen man hours to analyze the
proposed lot usage with densities in accordance with their existing zoning standards together with
our income from hook-up and user fees versus outgo of operation, maintenance and replacement.
Hafferman said the last thing the City needs is "another study brokered by the Public Works ... this
should be in house". He added other reasons he opposes this resolution is because the City doesn't
have a budget item for this study and because it's back boning, which uses taxpayers' money to
finance development.
Peters said he has heard several concerns in connection with the expansion of the treatment plant and
whether it's in the best interest of the City, and even though this isn't the best time for a discussion
on that issue, he would like some assurances that the City is going in the right direction; and that the
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December 20, 2004
Page 5
City will use a different engineering finn for this study than the one that's designing the treatment
plant expansion. Peters asked what the City is spending $44,000 on that we don't have right now
that would give some sense of cost analysis in order to find a partner.
Hansz noted that in Jane, the Public Works Department prepared and presented a fairly lengthy
document to Council outlining the range of costs and the feasibility of moving ahead with this plan.
He said at that time the Council indicated it wanted additional information and the preliminary
engineering report is the next step, which is basically the preliminary design of the facility you want
to construct. Hansz commented the Council needs a good basis of information that accurately defines
the system and defines the costs prior to meeting with potential partners. He said the City has a little
over six thousand water connections right now with the proposed Two Rivers project adding four to
six thousand houses, or their equivalent. Hansz added if the Glacier Mall then decides to hook onto
the system, then that's going to impose an additional load on the system. He said knowing the size of
those potential developments and the influence they will have on the community, we're looking at
impacts that didn't even exist in theory three years ago when we were doing the Facilities Plan.
Hansz said this preliminary work will enable the Council to make the decision whether to move
forward and turn the preliminary report into a final plan set with contract documents.
Peters said he feels the Council, if it approves this expenditure, is changing the way we're going to
do business and we're going to spend the :money to run that utility.
Mayor Kennedy disagreed, stating this is simply a decision on whether to spend the $44,000 and
then the Council would have to address the continuation after that.
Olson stated it's a step the City has to make and agreed it has nothing to do with whether the City
will run that line out. He added that anyone considering being a partner has to have this information.
Haffernnan restated the City doesn't have a budget item for this study and he has a hard time
increasing the budget $44,000.
Patrick said even though the study isn't specifically mentioned in the budget, the money is available.
The .motion carried upon roll call vote with Atkinson, Gabriel, Herron., Kenyon, Larson,
Olson, and Mayor Kennedy voting in favor, and Hafferman and Peters voting against.
F/4. RESOLUTION 4967 —WEST VIEW DEVELOPER'S EXTENSION AGREEMENT
Resolution 4967 authorizes a Developer's Extension Agreement between the City and Owl
Corporation for West View Estates.
Atkinson moved Resolution 4967, a resolution to authorize the City Manager to enter into a
Developer's Extension Agreement on behalf of the City with Owl Corporation for the
extension of municipal sewer services to the West View Estates Subdivision. The motion was
seconded.
Hansz asked that an amendment be made to the resolution including "water" services as well as
sewer services.
Atkinson accepted a friendly amendment to include "water" in all places referencing sewer
service. The second concurred.
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December 20, 2004
Page 6
There was no objection.
Hansz explained that several months ago the Council revised the extension of services policy to
provide an alternate formula for determining costs eligible for reimbursement to developers in order
to stimulate the extension of utilities without significant investment of City funds. He said Owl
Corporation has been the first to express interest in the new method and staff has been working with
Owl Corporation and the engineers for several months to develop a satisfactory agreement to extend
utilities to West View Estates through Section 36 where they presently terminate for the Lowe's
development. Hansz said Owl Corporation would be investing in water and sewer facilities that
exceed requirements of the West View subdivision and in return, the City would reimburse Owl
Corporation by recovering those extension costs from future developments.
Mayor Kennedy asked for a response to comments that the recovery costs will adversely impact the
new high school.
Herron noted that without this agreement, the high school would be responsible for running a utility
line to their facility. He said that expense would probably be higher than hooking onto the line
provided by Owl Corporation and paying reimbursement costs.
Hansz agreed, stating the school district is only being asked to pay for what they would have to pay
for anyway, and in his opinion, they will be getting the services for less.
Atkinson commented this is a win -win situation for the developer and the City, and he thinks this is
one of the more exciting situations he's seen for a long time.
Hafferman congratulated Hansz and the Public Works Department for working within existing rules
and regulations to come up with a better, and fairer method, for developers to extend services than
the City had before. He also congratulated Patrick for expediting this issue.
The motion carried unanimously upon roll call vote.
F/5. RESOLUTION 4968 —RESOLUTION AUTHORIZING PARTICIPATION IN THE
INTERCAP REVOLVING PROGRAM
This resolution authorizes participation in the Board of Investments Loan Program to finance the
purchase of equipment for the Parks Department and the construction of a pavilion/restroom facility
in Woodland Park.
Kenyon moved Resolution 4968, a resolution authorizing participation in the Board of
Investments of the State of Montana Annual Adjustable Rate Tender Option Municipal
Finance Consolidation Act Bonds (Intercap Revolving Program), approving the form and
terms of the loan agreement and authorizing the execution and delivery of documents thereto.
The motion was seconded.
Patrick gave a staff report.
Peters asked if the items were listed in the budget.
Baker answered all three items were included in the budget.
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December 20, 2004
Page 7
Hafferman commented he couldn't locate the items in the current budget and he didn't see anything
that said the City was "going to a credit card for these purchases".
Baker responded the items are specifically listed in the Parks budget under Capital Equipment and
Improvements. He said it was mentioned during the budget meetings that several loans were in the
process of being paid off and these expenditures would follow the same loan process.
The motion carried upon roll call vote with Atkinson, Gabriel, Herron, Kenyon, Larson,
Olson, Peters and Mayor Kennedy voting in favor, and Hafferman voting against.
F/6. RESOLUTION 4969 — TAX BENEFIT PLAN FOR CITY EMPLOYEES
This resolution amends the City's Flexible Benefit Plan to include a Dependent Care Assistance
Program and Health Care Reimbursement Plan effective January 1, 2005.
Kenyon moved Resolution 4969, a resolution by the City of Kalispell amending the agent for
the City's Flexible Benefits Plan. The motion was seconded.
Patrick gave a staff report.
There was no discussion.
The motion carried unanimously upon roll call vote.
F/7. ORDINANCE 1522 —ADOPTING INTERNATIONAL FIRE CODE —1ST READING
Staff is requesting the Council adopt the International Fire Code, 2003 Edition.
Larson moved first reading of Ordinance 1522, an ordinance to amend Ordinance 1359
adopting, by reference, the "International Fire Code" and the Appendices, 2003 Edition (IFC),
with the additions, amendments, and deletions enumerated as follows on Exhibit "A", as the
Fire Codes of the City of Kalispell, and applicable within the corporate boundaries of the City,
to provide a penalty for the violation of any lawful order issued pursuant thereto; and
establishing an effective date. The motion was seconded.
Stewart gave a staff report and answered questions.
The motion carried unanimously upon roll call vote.
H. MAYOR/COUNCIL/CITY MANAGER'S REPORTS (No Action)
Mayor Kennedy wished everyone happy holidays and invited the public to ring in the New Year by
attending First Night Flathead.
Patrick also wished everyone a Merry Christmas and a Happy New Year and announced City Hall
will be closed December 24th and December 31 st.
Hafferman wished the citizens of Kalispell and the surrounding community a traditional Merry
Christmas.
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December 20, 2004
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1. ADJOURN
The meeting was adjourned at 8:38 p.m.
ATTEST:
Theresa White
City Clem
Pamela B. Kennedy
Mayor
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December 20, 2004
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