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1. Council Minutes - Regular Meeting October 17, 2005A REGULAR MEETING of THE KALISPELL CITY COUNCIL WAS HELD AT 7:00 P'M. MON AY, OCTOBER 17, 2005, IN THE COUNCIL CHAMBERS AT CITY HALL N KALISPELL, MON ATA, MAYOR. PAMELA B. KENNE Y PRESIDED, COUNCIL MEMBERS JIM ATKINSoN KARI GA. RIEL, BOB RAFFERMAN, BOB HERRoN, RANDY KENYON, TIM KLUESNER DUANE LARSON, AND HANK OLSON WERE RESEW. Also present: City Manager James Patrick, City A.ttomey Charles Harball, City Clerk Theresa White, Finance Director Amy Robertson, Public Works Director Jim Ha sz, Police Chief Frank Gamer, Fire Chief Ra. dy ' rodehl, Kalispell Planning Department ent Senior Planner Narda Wilson, and Recording Secretary Judi Funk. 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 1. Council Minutes — Regular Meeting October 3. 2005 2. Pledged Securities as of September 302005 3. Approving Revised I terlo al Agr ement — MMIA The Montana Municipal Insurance Authority has determined that revisions to the original Itroal Agreement are necessary and Council was asked to approve those revisions. 4. Grant .Acre take — Nurturing.Center The Nurturing Center was recently awarded a grant for $289,798 from the Department of Justice. This money is a pass through ;.rant with the City as the sponsor. 5. Ordinance 1554 — Zoning Text Amendment — American Capitol — 2 d Readina .dig Sky Properties, on behalf of American Capitol, requested an amendment t to the Kalispell Zoning ordinance to allow fight assembly In the -3, Community Business, oni.ng districts. ord.aoe 1554 passed on first reading October 3. . Proclamation — Red Ribbon Week — October 23 through October 2 . Plqque. Presentation to Duane Larson - President of the Montana LeagLie of Cities and Towns Atkinson moved approval of the Consent Agenda, The motion w.s se o de . Kalispell City Council Minutes October 17, 2005 Page 1 Where was no d.scssiorl. The motion carried unanimously upon Droll call vote. C. STUDENT ISSUES Done. PUBLIC COMMENT Clarice Gates,, 426 7th Avenue West, read a written statement in opposition to Resolutions 5070 and 5071, the proposed TIF districts for the old School Station property. (Statement is attached and by this reference is made a part of the official. record) Kurt Hafferma , 1325 god Street West, spoke against Resolution 5072, a proposal to provide Kelsey Subdivision with City sewer service. He stated the aquffer is very important, but the County needs to .fix the problem, not the City. He stressed Ashley Creek won't stay in good condition if the City continues to take in effluent from outside the City. Haffennan also criticized the proposals to create TIF districts for old School Station, stating the Council needs to work within its growth policy. Norbert Donahue 144 Crestli e Drive, also spoke against Resolution 5072, and stated if sewer is extended to Kelsey Subdivision then anyone in between can hook on wIthout annexing ; or waiving their right to protest. He said that this is not in the best interest of the City. Andy Miller, 175 East Many Lakes Drive, owner/developer of old School Station, spoke in favor of Resolutions 5070 and 071 and stated the projects will bring j o opportunitles to the val ley. He read letters from. Elizabeth 1 archi, President of Montana West Economic Development, and Doug A e ill', Flathead Lake Lodge, in sort of the TIF Districts. (Letters are attached and by this reference are made a part of the official record) E. REPORTS/RECOMMENDATIONS AND SUBSEQUENT COUNCIL ACTION E/1, ORDINANCE 1555 —ZONING TEXT AMENDMENT —SIGN REGULATIONS — 2N READING This ordinance amends the current sign regulations. ordinance 1555 passed on first reading, with amendments.,, October 3. Larson moved second Breading of Ordinance 1555, an ordinance amending the Kalispell Zoning Ordinance (Ordinance No. 14 , by amending Section 2 . 4, Sign Regulations, declaring a effective date, and authorizing the city attorney to codify the same. The motion was seconded. Patrick gave a staff report and explained the changes that were made at the first reading. Hafferrnan stated that he will. he voting against this ordinance, but he will offer an amendment regarding large projects. Kalispell City Council Minutes Wage Hafferman moved to add Section 2 .2 .o 'o (4), `Businesses having approved entrances from more than two collector streets and/or an arterial highway may submit a signage plan to the City Council for their approval that exceeds the sign area allowable in this Ordinance, portion of the proposed slnae may be off -premise provided the business property does not abut a third or fourth collector street or arterial highway and such off -premise sinae does not direct traffic through a residential one. The motion was seconded. Hafferman a stated that there are projects ects that could meet these criteria right now, like the mall and Hutton Ranch Playa. Atkinson said he feels this offers an unfair playing field for some businesses and asked the Council to vote against it. The amendment carried upon roil call vote with. Gabriel, Rafferman, Herron, Klnesner, Larson and Mayor Kennedy voting in favor, and Atkinson, Kenyon and Olson voting against. The main motion as amended carried upon roll call vote with. Atkinson, Gabriel, Herron, Kenyon, Kles er, Larson, Olson and Mayor Kennedy voting in favor, and Hafferman voting against. E/2. RESOLUTION 506 — RESOLUTION OF INTENT TO AMEND GROWTH POLICY HIGHWAY 93 SOUTH This resolution on of intent proposes to amend the Kalispell Growth Policy 2020 by including approximately 2,560 acres in the Potential Utility Service Area for Kalispell and assigning an apror.ate land use. Gabriel moved Resolution 5068, a resolution of intention to adopt, revise, or reject a recommended amendment to the Kalispell Growth Policy 2020. The motion was seconded. Wilson gave a staff report. Hafferman read a statement opposing this resolution and asked that his comments be attached to the minutes for the record. (Statement is attached and by this reference is .made a part of the official record) The .emotion carried upon roll call vote with Atkinson, Gabriel, Kenyon, Herron, Kdes er, Larson, Olson and ]mayor Kennedy voting in favor, and Hafferman voting against. 3. :RESOLUTION 506 — RESOLUTION OF INTENT AND CALL FOR PUBLIC HEARING — BUDGET AMENDMENT FOR OLD SCHOOL STATION SPECIAL IMPROVEMENT DISTRICT 344 Resolution. 5069 is a resolution of intent to amend the budget to include SID 344. A public hearing i scheduled for November 7. Kalispell City Council Minutes October 1 1; BOOS Page Kenyon moved Resolution 5069, a resolution calling for a public hearing to amend the annual appropriations of the City of Kalispell, Montana, as set forth In the 2005-2006 budget adopted y the City Council. The motion was seconded* Patrick gave a staff report. Haferrran stated he is in favor of public hearings. Atkinson commented if the SID passes the old School Station property owners will be paying for the improvements, not the taxpayers. The motion carried unanimously upon roll call vote. E * RESOLUTION 5070 — RESOLUTION of INTENT AND CALL FOR PUBLIC HEARING OLD SCHOOL STATION INDUSTRIAL TAX INCREMENT DISTRICT This resolution sets a public hearing for November 7 on the City"s intent to create are industrial tax increment district on the old School Station site. Kenyon. moved Resolution 5070, a resolution of intent to establish. an Industrial Pax Increment. District at old School Station and call for public hearing antler Montana Code .Annotated Title 7, Chapter 15, Part 42. The motion was seconded. Patrick gave a staff report. Hafferman pointed out that according to Section 3, Preliminary .approval, a vote for .resolutions 5070 and 5071 is a vote for the T. F districts being created. He said he is concerned that the City taxpayers, the schools, and all County residents will be .haying for a private development if the TIF Districts are established. Haffennan asked the City Manager if this area is considered blight, and who will pay the costs associated with fire services since there won't be any money coming in from the TIP districts. Patrick responded that the finding of blight is not necessary for an industrial or technology TIF district and some taxes will be coning into the City because there will be businesses on the site that do not duality for either district. He Mated the property has already been annexed, so regardless o whether there are TIF districts fire services will have to be provided. Patrick rerainded Council that when he was hired one of the things Council asked him to do was to find ways to bring good paying jobs to the City, and that's what he is trying to do. Hafferman reiterated that the Council reeds to see all of the information and figures prior to making a decilon. Olson commented we are creating jobs and doing it the only way the City can, and it's not against the law. He said we need to make an effort to draw good businesses to town and that's exactly what. the City Manager is trying to do. Kalispell City Council Minutes October 1., 2005 Page Mayor .Kennedy added a technology TF will not have are impact on the schools because it will not be adding any children. She said the school district is in favor of the TI s because they can see the long term benefits of better paying Jobs and the future taxes the project will be generating. Atkinson agreed, stating a TIC` district is "deferred wealth"'. He said we need to be far-reaching and far -thinking and we have t have faith that the rater land Will bcenoMe soMethig 7alabler Klesner noted that jobs are very important and the developers should be commended, but he has concerns with the process. He said the Council has not been educated as to what this project is about, and he is not ready to approve a resolution that states the Council is giving the TIF preliminary approval. Kenyon asked Harball ghat the legal implications would be if Section 3 is removed from the resolution.. arball said the language in the resolution is set out by statute, He said whether the specific language is included or not, when the Council passes a resolution of intent it is giving preliminary approval and calling for a public hearing. Larson stated the key words in the resolution are :subject to final approval following the Hearing". He said he will vote in favor of the resolution because the Connci.l reeds to hear from the public. The motion carried upon roll call vote with Atkinson., Gabriel, Herron, Kenyon, Larson, Olson and Mayor Kennedy voting in favor, and Ha a rman and Klu sn r voting against. E 5. RESOLUTION 5071 — RESOLUTION of INTENT AND CALL FOR PUBLIC HEARING — OLD SCHOOL STATION TECHNOLOGY TAX INCREMENT DISTRICT This resolution sets a public hearing for November 7 on the City's intent to create a technology tax increment district on the old School Station site, Kenyon moved ,resolution. 5071, a resolution of to establish a Technology Tax Increment District at. old School Station and call for public hearing under Montana Code Annotated Title 7, Chapter 15, Part 42. The motion rm vas seconded. There was no discussion. The notion carried upon roll call vote with Atkinson, Gabriel, Herron, Kenyon, Larson, Olson and Mayor Kennedy voting in favor, and Hafferman and K u sn r voting against. . RESOLUTION' 5072 — EVERGREEN WATER AND SEWER CONNECTION KELSY SUBDIVISION Council. will consider providing server utilities to Kelsey Subdivision, which is outside the City limits. Kalispell City Council Minutes October 17, 2005 Page 5 Larson. moved Resolution 5072, a resolution regarding the development of Kelsey Subdivision and provision of municipal sewer services thereto. The motion was seconded. Patrick gave a staff report. Larson stated that this has been a long and rocky road, and several plans have been discussed in the past to extend sever services to this subdivision. He said at this point all sides agree and the City is protected because part of the subdivision is within the Evergreen RS D. His opinion Is that the benefits to the aquifer will be greatly enhanced and he supports the agreement "wholeheartedly". Hafferman read a section of the interlocal agreement that deals with waivers of protest of annexation') stating the agreement gives the City everything it needs to provide service and the City doesn't nee to go through this `"rigmarole". He said this is not about protecting the aquifer, it's about annexation, period. He said pumping the wastewater such a tong distance is a disservice to the environment and the pumping stations require money to maintain and replace. He said the Council should insist on a extension of services plan before they vote. Larson stated he sees nothing about annexation in the resolution, Olson agreed, stating in his mind 1t 1s about the aquifer. Atkinson said he cannot support the resolution because Cottonwood Estates, and others, will want the same treatment. t. He stated that Evergreen is asking to utilize Ka is e l's capacity to serve someone outside of Kalispell, because they can't legally. Atkinson stated that he does not feel a responsibility to give away the capacity that Kalispell taxpayers are paying for in order to service these people, adding that when the area heccornes dense enougb a d Kalispell sewer is requested, then we should provide it. He said providing sewer without annexation did not work in the 90s and this is exactly what we are doing; with Kelsey Subdivision. He pleaded with the Council not to vote for this resolution. Larson disagreed, stating we are not giving anything, away; the developer is ling for what he is getting. Kluesner stated in the business world this makes a lot of sense. He said this is a great deal for the City because it can take care of the effluent without running fire and police out there. He said he thinks this is a win -win situation. Gabriel stated she is still struggling with the issue because the capacity is not going to be counted against Evergreen.. She said because of that, she can't support it at this time, Larson responded that the interlocal agreement states that any capacity outside the RS D is charged against the City. Hafferman moved that Number 4 in the last Whereas be removed. (Number 4 states, "that the City of Kalispell and Flathead County enter into an agreement stipulating that in the evert that the City of Kalispell ever serves the Kelsey Subdivision v*Ith a separate sewer conveyance Kalispell City Council Minute October 7? 2005 Page system, thereby severing from the Evergreen Sewer conveyance system, the ownership of the sewer lines within the subdivision shall be conveyed to the City"'). There was no second. There was further .issslo. The motion carried upon roll call vote with Herron, Kl es er, Larson', Olson, and Mayor Kennedy voting in favor, and Atkinson., Gabriel, Hafferma , and Kenyon voting against. F. MAYOR/COUNCIL/CITY MANAGER'S REPORTS JNo Action Patrick thanked Chief Brodehl for helping FEMA with the Hurricane Katrina relief efforts ill Beaumont, Texas. ADJOURN The .meeting was adjourned at :00 p.m. ATTEST: Theresa. White City Clerk Pamela B. Kennedy Mayor Kalispell City Council Minutes October 17, 2005 'age 7 October 17,, 2005 Mayor and City Council Clarice rates 4267 1.ve W Kalispell, MT 59901 (406) 52- Resolution No 5071 and r so Lion 'No. So o ask you to form TIF Districts in Old School Station to pay for infrastructure that subdivision. You have already created a SID there. Since there will not he development there at the time of the TIF ceiling is set; the only money received for schools, city and other taxing g agencies is the tax that will come from the bare land. All the tax money received on buildings if and when the lots are developed will he put in the TIF Funds. How do you plan to pay for the police and other services going to that subdivision? n Oct. 1415 2005 an article 'in Interlake stated that the Sheriff Dept. is having problems with high gas bills. How do you plan to pay the gas bills for the police as the gas price increases and you keep i .creasa� g the eity's boundaries and giving tax breaks to developers? The "'new Rosauers Store Building "' tax money goes into the TIF ftmd none of the taxes except on the lard goes to upkeep of the city or to schools and other taxing agencies. Who ordered the Bond person from Denver to attend the workshop on Oct I o, 2005 to discuss old School Dist. School Statio=entloned 1. the mayor, or, Patrick, the City Manager or the city council asked for him.? Whe that the council wanted to talk about whether they warted a TIFDistrict; the mayor pushed it aside. refer to Chapter 2 ,administration Article i. Elected Officials. As eounei perso s you have the right to discuss such ratters With out being pushed in one direction or aothcr. Have you had a workshop to discuss the Amending the Growth Policy Amendment How does it affect the city as a whole? When did we become a public utility? How would the expansion of the utilifies be pay.` How would you pay for the new fire ,hall and other services? Policies. Create incentives for business -high. paying Jobs! ! ! ! again Will there he many high paying jobs in the old School Station? Warehouses do not need many employees and have you asked about the pay scale? And more TIF Districts takes the money needed to run the city, schools and other taxing agencies, Please table Resolution No. 5068 to recommend Amendment to Kalispell Growth Policy 2020 until research can be done to find ways other than TIF Districts to help business and the Impact Fees .have been set. When expanding Kalispell's sewer system with another `pod'' will it be *'grandfathered"" it or must it follow the requirements o the new environmer tal re it ments` Jobs Now, Inc,, October 14, 2005 The Honorable Pam Kennedy Honorable Members of the Kalispell City Council City Hall Kalispell, MT 5 901 Dear Mayor Kennedy and Members of the Council: 'lease enter into the record of tonight's meeting ray strong support for the creation of an Industrial TIF District and Technology T l= District for the Old School station Industrial Park. The Flathead Valley has long needed a first class location for new and expanding business development of the kind that will b attracted to this development. The park planned for old school station will attract high value tax base and create quality, livable wage jobs in our area economy* The TI, in nay opinion, has its highest and best use in this kind of development. It is never easy being on the leading edge of new development of this kind. The Malley does not have a history of planned, thoughtful, business park development with full services and infrastructure. The upfront costs are very significant. The rlsk is greatest when you are first in a market. Montana has very few tools to pint to the task of high value business attraction and development. The ability of cities to create TIF Districts is one of the fever available mechanisms to support the infrastructure required for an industrial park. One definition of economic development is "Effective public/private partnerships for sustained private investment." ent." Creating Industrial and Technology TIF Districts for the Old school Station Industrial Park is very positive move for economic development. There are many pieces for effective economic development* sites and facilities are very, very important. r encourage you to support the creation of TIF Districts for old School Station . Sincerely, { f Elizabeth C, March President Montana West Economic Development (fka s Jobs Now, Inc. AmWIFi Kalispell City Council 248,3 d. Ave. East Kalispell, Mt. 59901 October 13,200-15 Dear Couni, This letter is in reference to the TIF Old. School Station project. As you know with the rapid growth taking place in Montana and the valley there needs to e a vision for expanding job opportunities in the professional high tech fields. The Flathead valley recently lost a thriving and upcoming tech business, Cable Tech to the City of Great Falls. This company has employed many off'our young people In their early tech carriers and has been an inspiration to them towards furthered education i engineering and MBA pursuits. The T&3en acre Old School Station is ideally located for housing and business aces to the community. It is this type of complex that will sustain the Flathead's young people and provide the opportunities to live in their home town. The astonishingly high drop out rate of students fi-o i area high schools is evidence we need action from community leadership to set example in growth policy that provides hope for youthful carriers. Andy Miller the developer, has a further vision for an AnimationCenter and taping the resource of renowned producer Jemmy Mole , which could dramatically capture and inspire the minds of our young people and direct them toArards furthering their dreams and job potential. As owner and operator of one of the oldest business in the valley and whose grandparents used the historic Ieasvllle Landing near this proiect, I find. old School Station's proposal consistent and appealing to the long range growth of the valley. Sl Vierely, z Terill Flathead Lake Lodge $ Box 248 - ffigfr F Montana 69911 - (406) 837-4391 FAX f%x email: lat akl g @cent. yt1. net # website, www.flatheadlakelodge.com Bob H fferm's statement as read dun*ng the October 17, 2005 Council Meeting, Amend Growth Policy am not opposed to plaruu'ng as far south as old School Station. Someday our contiguous city limits MAY grow to that area. I, like many residents of this city, wonder what is going on in city government as well as the suspicion of WHY. While I was aware that a possibility the Growth Policy would be amended to include more area southerly, I had naively assumed that the process of amendment .t would follow not only the regulation. M the Growth Policy, but there would be public participation. It is hard for me to believe that none of the County residents in the expanded area had enough interest to comment o the proposal, either for or against. I smell another incidence like we had in 2002 with the ar vexation of property along the hazardous Sunnyside Drive that was tota ly out of character With the adjoining county neighbors. Pblie involvement would have certainly had an influence on me on that issue. I was elected to SERVE the public, not the bureaucracy. The Daily Inter Lake, where I must frequently turn to find out what is going on in City go errrr ent, had NOT A PEEP about this proposal being on the Planning Board agenda either i the article on Monday, October 10, just before the meeting, or about the results a of a supposed ea ng in the Thursday, October 13 article or elsewhere in the news that I found. The only thing reported was about amending in the fighting ordinance. I believe this council should SCHEDULE A WELL PUBLICIZED I'U13IC BEARING before this Council BEFORE we vote on this amendment. I want to avoid another laws t like the S nnyside Drive suit. Item 10 ofExhibit A states (read). The meeting should be held and the Council inforned BEFORE we vote. I also have concerns that other elements necessary for orderly growth were not addressed in Exhibit A. Item I (read). This assumes the City of Kalispell has a water right to serve this expanded area. IT DOES NOT. alspell's present water right extends only to the boundary of the EXIS IN G Groh Policy. Avista could make a cal on their water rights or the possibility exists of the SKC controlling all groundwater in the Flathead Basin. It is important that water rights go through the correct channels. The Council should know what process must be met before any of the expanded area can receive city water. I have had calls, one yesterday from a former mayor, ftom people who have eoncems about further expansion of our wastewater plant due to the low flows in Ashley Creek. This needs to documented by DEQ before this Council can make any sort of 'Informed vote. I am also eoneemed what implications are involved in ,Item l I (read). Shouldn't the entire Council and PUBLIC be informed of what discussions have taken place with Lakeside Sewer? I am also wonder about the concerns of the Somers VFD as the city starts to erode their tax base. We already know what the rest of the V'I s around Kalispell - Evergreen, Smith Valley, West Valley and South Kalispell - think about our relationship with them.. The south boundary of this proposed growth area is about as dose to Somers as it is our own fire department- of course South Kalispell VFD is much closer than both. There may be other eoneems of the public for which I am not aware_ A responsible goverment makes informed decisions. I'm certainly not sufficiently informed. I have to vote No. I hope this Council, if they have concerns, vA'l ask that their and my c.cerns be addressed and a public hearing be held before the Council before any vote is made to extend the Growth Policy boundary_ We should NOT be S AME E into this important decision. I hereby request that these comments be appended to the ninutes of the meeting. I want to protect myself in the event a lawsuit is initiated by aggrieved reside nts.