02-25-87 Finance Comm MinutesFebruary 25, 1987 PUBLIC WORKS/FINANCE COMMITTEE 4:00 P.M.
Chairmen Ruiz and Palmer and Councilmen Schindler, Hafferman, Nystul and
Manning in attendance. DPW Hammer, Sewer and Water Superintendent Hyde,
Surveyor Zavodny, Clerk Halver, Ross Plambeck, Ryan Heinz and Roger Hopkins
of the Daily Inter Lake also present.
LIABILITY INSURANCE/CONTRACTORS - DPW Hammer explained that according
to the City Attorney's memo all contractors must have $1 million dollars
worth of liability insurance and in addition must name the City as insured
on the policy in order to do work for the City. Several contractors have
stated their concern and their problems in obtaining this. DPW Hammer felt
that this would cut out all the little contractors doing small jobs in the
right-of-way. He asked when they should be informed and when this should
be enforced. C. Palmer stated that the policy was in effect so this must
also be in effect immediately. Surveyor Zavodny pointed out that the City
Attorney states in his memo that these requirements are not included in the
policy. C. Nystul said they were an underwriter requirement. Clerk Halver
reported that the issue had been discussed with the representative of the
insurance company but that it had not ended up in the policy. He also felt
that it was meant only for contractors who had contracts with the City
not everyone working in the ROW. C. Palmer asked that the Public Works Depart-
ment write down all it's questions and that Clerk Halver call the insurance
company and ask for clarification over the phone as well as in writing first
thing in the morning.
• PARKING COMMISSION REQUEST FOR SIGN ON UNIVERSAL ATHLETIC BUILDING
DPW Hammer reported that the Commission had requested permission to hang
a sign on this building which would state that lease spaces were available.
Building Official Jackson has researched this and the City is co-owner of
the wall and therefore permission must be granted by the Council. C. Palmer
asked about the Co -Rental sign that is presently on the building and was
told that the Building Official had written a letter telling them to remove
it or it would be turned over to the City Attorney. Co -Rental did not remove
the sign, it was turned over to the City Attorney and that is where it is.
C. Palmer also asked DPW Hammer to research the possibility of a quit -claim
deed giving the City portion of the wall back to the owner so that the City
is not responsible.
STREET RECONSTRUCTION - DPW Hammer presented a Public Works worksheet
listing the proposed streets for reconstruction during the coming season.
At this point the street selection is the most important point, the figures
are general and for bid purposes only. The Public Works Department would
like to be able to go out for bids for materials. C. Schindler asked if
any of the street widths listed represented widening of the present streets.
DPW Hammer said that E. Montana would be widened to match W. Montana and
that the first block of loth Street, which presently is not defined by curbs,
would be widened from 30' to 34'. All the rest will be the same width as
they are presently. C. Ruiz asked why the list showed reconstruction of
Montana Street stopping at 2nd Avenue instead of going clear to B&B. DPW
Hammer explained that when a developer comes in there could be major changes
10 and possibly even abandonment of a portion of the street, so it would be
foolish to put money into at this point. On the second sheet, which listed
Street Department funding C. Ruiz reminded the Committee that funds for loth
Street were from the bond proceeds, and questioned the funding for Kinshella
and Husky (see below). After the discussion concerning Kinshella and Husky
PUBLIC WORKS/FINANCE COMMITTEE
February 25, 1987
Page 2
C. Ruiz stated that the Council should approve the letting of bids for asphalt,
gravel and curb and sidewalks. C. Palmer reminded the committee of the Mayor's
memo concerning reconstruction vs. maintenance. DPW Hammer responded that
the Public Works Department is planning to do both reconstruction and maintenance,
but there is a lack of equipment to do certain types of maintenance. C.
Palmer moved to 1) call for bids, and 2) settle the question of maintenance
vs. -reconstruction before awarding of any bids. The Committee approved that
plan and bids will be called for at the March 2 Council meeting. C. Nystul
asked that the time periods be clarified in the bids so that there is no
question. DPW Hammer responded that Attorney Neier approves all bids and
the Public Works Department thought they were clear, but will attempt to
make them tighter.
C. Manning asked about the status of the gravel pit. Is the City still
using it? DPW Hammer stated that the grant request was turned down because
of excess gravel, so it becomes a budget problem to find funds to level it
out.
KINSHELLA AND HUSKY STREETS CONSTRUCTION - DPW Hammer stated that the
Post Office has offered financial assistance for this project, but that the
amount will probably fall short of the actual costs by $8,000 - $10,000.
The question of an SID was raised. Ryan Heinz shared that the Mall has over
01 $60,000 invested in a street they haven't yet been able to use. The City
promised to finish the street under the last mayor and council. He feels
frustrated because the Mall tried to initiate an SID and the Council said
no - and then when Council decided to do it the timing was too late because
it had already been sold to the Post Office. He stated that if it was necessary
to become the squeeky wheel in order to get the job done, they would do that.
C. Nystul said that the first request for an SID was made after the work
had been done, and was therefore illegal. After discussion of what work
remained yet to be done and efforts that had been made in the past DPW Hammer
stated that he felt the Mall had been put in a bad spot and that the City
should use the funds from the Post Office for curbing and improvements, and
any additional funding needed should be taken from street reconstruction
funds. C. Ruiz asked about Meridian Road access being made a condition of
the funding from the Post Office. DPW Hammer said that was a rumor, but
was not in writing from the Post Office. C. Nystul felt that the City should
finish Kinshella (Highway 2 - Two Mile Drive) but leave Husky as a leverage
with the Post Office. C. Schindler stated that we should do Kinshella regardless
of whether there were funds from the Post Office, and C. Ruiz agreed.
S/W Supt. Hyde said he had looked at the storm drainage plans for the
area and that the master plan calls for larger pipe than what is there, but
that across Hwy. 2 the line feeds into a 30' main, so the City may want to
use the existing pipe to it's fullest extent and when the need arises add
another line by the theater. There is a problem with the storm drain being
too shallow, and this will have to be addressed with the Post Office.
DPW Hammer said anticipated timing on the work on Kinshella is as soon
as the frost leaves. It will be coordinated with work on loth Street.
PUBLIC WORKS/ FINANCE COMMITTEE
February 25, 1987
Page 3
NORWEST BANK/2ND STREET EAST - DPW Hammer shared a letter he had written
to Steve Olson of Norwest Bank describing the responsibilities of both the
bank and the City. He gave a brief history of the problem, shared the content
of discussions with C. Saverud and meetings with bank representatives, and
suggested solutions. He requested appr.ovalfor the use of tax increment funds
for the City's portion of this work. C. Schindler asked why the bank was
not paying for the curbs: because the problem is from the City street and
the curbs would not have to be replaced during normal reconstruction, and
the policy is that if curbs are present and not in such bad repair as to
need replacement the City pays for them if torn up during reconstruction.
The vault under the sidewalk in front of the theater was discussed. DPW
Hammer said the theater has no water problem at this point and has a lot
of mechanical equipment in that area. The sidewalk is structurally safe
and he cannot see expecting a business to come up with $40 - $50,000 to fix
something that does not need it. The sidewalk on the north side of 2nd Street
is in deplorable condition and Surveyor Zavodny said it would be only half
a job if that sidewalk was not replaced. The City'Wi17 pay for the curb't•=s
but the consensus was that the sidewalk would be ordered in and paid for
by the adjacent owners - School District #5 and Norwest Bank. The City will
work with the bank so as to distrub the theater for as short a time as possible.
C. Palmer suggested that they take the Public Works Director's recommendation
and the Committee agreed.
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Finance and Administration
February 25, 1987
The Finance Committee meeting was called to order at 5:00 by Chairman Palmer,
following a joint Finance/Public Works meeting. Committee members Nystul and
Ruiz as well as Council Members Planning and Schindler, Clerk/Treasurer Halver
and Roger Hopkins were in attendance.
1. Budget Transfer requests.
Animal Warden
Clerk/Treasurer Halver reported the Mayor was requesting a transfer of
$4,398.00 from Other Unallocated Costs to Animal Warden to cover a budget
shortage in the Animal Warden Budget. The committee agreed to recommend this
to the council.
City -County Planning
The Council had budgeted $19,332.00 whereas the CAB had approved a Planning
budget which called for Kalispell's share to be $21,562.00 Clerk/Treasurer
Halver requested this difference be resolved.
Councilman Nystul stated the contract had been approved without concurrence
of the City Council. He requested it not be corrected until the end of the
fiscal year and the committee agreed.
Crime Control
Halver reported the Crime Control Budget needs another $13,500.00 to fund the
increased cost of salaries for this fiscal year. This funding would be
transferred from the Special Projects -Capital Outlay Account which has a
balance of $33,315.00. The committee agreed.
is
2. Possible sources of funds for Salary Increases
Halver reviewed the Mayor's report to the Committee explaining sources of
funding and possible costs of any contract settlements taking effect this
fiscal year.
3. Budget Status Report
Clerk Halver presented a report on Funds and Budget Accounts which are
presently overdrawn or in danger of being overdrawn at the end of the fiscal
year and discussed each item. (report attached to minutes)
A. Capital Improvement Program Status
Halver reported he had sent a memo to all departments requesting a list of
property to be provided or replaced by the Capital Improvement Program. So
far only one department has responded.
5. Airport Liability Insurance
Halver reported the City has received premium quotations for the Airport
Lessors Policy. The offer $1,000,000 coverage for a premium of $4,000.00 or
$500,000 coverage for $2,000.00.
After considerable discussion about whether we needed this policy, the
committee instructed Halver to determine why we need it and do whatever we
have to. They recommended the $500,000 coverage if the policy is needed.
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Finance and Administration
February 25, 1987
6. Mayor [deal Expense Policy
Councilman Nystul suggested we adopt the language of the City Attorney's
opinion:
"The Mayor of the City of Kalispell is entitled to reimbursement for
the reasonable cost of meals or banquets that may be incurred by him
at functions he attends in his official capacity as the Mayor of the
City of Kalispell."
He also pointed out that anyone receiving reimbursement for local meals have
to have these meals reported on a T^7-2.
Councilman Ruiz agreed to adopting this policy but asked if it would prevent
claims for meals with other city officials or employees. He contended meals
should not be charged to the City for meetings with employees.
Councilman Ruiz felt the elected official's salaries were intended to cover
these expenses. He also thought the purpose of a car allowance was to also
cover these meal costs, the $135.00 monthly car allowance probably only
needed to be about $75.00 a month and previous councl.1.0 intended the -rest to
cover neals.
Councilman Nystul felt if we want to try to define this any more precisely,
there are a lot more expenditures that should be looked at more closely.
I He suggested next budget year we rename the account and provide an
appropriate line item in the budget.
Ruiz and Palmer discussed "official capacity" and agreed it did not include
meetings with employees.
The Committee will recommend Nystul's suggested policy to the full council
with the understanding that meetings with employees would not qualify.
Ruiz asked why some of the claims on his list had been paid when they were
not signed. Halver reminded him the committee had experimented with signing
a claims list instead of the individual claims and that's how the unsigned
claims were approved.
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CITY OF KALISPELL D019 HALVER, CLERK/TREASURER.
10: Mayor Kennedy, DATE: February 25, 1987
Finance Committee
SUDJECT: Budget Status, January 31, 1987
The following departments or funds are ahead of where they should be so far
this year on their budgets. The normal amount to be spent to date should be
58% of the budget.
Account
Budget
Spent
`sent
General Fund:
Audit
8,500
16,275
1910
City/County Planning
19,332
10,781
56%
Computer & Copier
18,000
12,764
71%
Animal Control
- 13,450
10,3;2
770-L _
Central Garage
103,963
69,448
67%
Swimming Pool
42,404
40,842
96€
Total General Fund
58%
Comp Insurance Fund
144,356
201,846
140%
General Obligation Bond
68,243
92,364
135%
Storm Sewer Maint
15,750
9,844
62%
Garbage
212,091
152,469
72%
Garbage Salaries
50,137
58,818
117%
Health Insurance
3,354
3,522
105%
Other Supplies
1,500
1,518
101%
Lease Payments
79,133
52,755
67%