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* AgendaA G E N D A REGULAR CITY COUNCIL MEETING 7:00 F.M. MONDAY COUNCIL CHAMBERS -CITY HALL MAY 6, 1996 ROLL CALL PLEDGE OF ALLEGIANCE 1. AGENDA APPROVAL 2. Council Minutes -Regular Meeting April 15, 1996 3. Approval of Claims per Payables Register ADDRESSING THE COUNCIL 4. Please see back of agenda for Manner of Addressing the Council. ORDINANCES AND RESOLUTIONS 5. Ordinance 1238-Subdivision Regulations-2nd Reading 6. Ordinance 1239-Schaus-Zoning Text Amendment Request -1st Reading 7. Resolution 4261-Spring Creek -Annexation and Zoning Request (Hampton Inn) 8. Resolution 4262-Hunter-Annexation and Zoning Request (1400 4th Avenue West) 9. Resolution 4263-Hunter-Preliminary Plat 10. Resolution 4264-Buffalo Hill Golf Course County Island Addition No. 274-Annexation and Zoning Request BUSINESS FROM MAYOR AND COUNCIL 11. Proclamation -Builders Club Week BUSINESS FROM MANAGER 12. D.A. Davidson Agreement -Serve as Fiscal Agent 13. FRDO 1996-97 Work Program 14. Set Sewer Rate for Evergreen-1996 Calendar Year STAFF REPORTS Next Work Session May 13, 1996 7:00 p.m. Next Regular Meeting May 20, 7:00 p.m. ADJOURN Reasonable accommodations may be made to enable individuals with disabilities to attend this meeting. Please notify Debbie Gifford, Clerk of Council at 758-7756. A G E N D A REGULAR CITY COUNCIL MEETING 7:00 P.M. MONDAY COUNCIL CHAMBERS -CITY HALL MAY 6, 1996 ROLL CALL PLEDGE OF ALLEGIANCE 1. AGENDA APPROVAL 2. Council Minutes -Regular Meeting April 15, 1996 Q 3. Approval of Claims per Payables Register !.d ADDRESSING THE COUNCIL 4. Please see back of agenda for Manner of Addressing the Council. ORDINANCES AND RESOLUTIONS j �Or 5. Ordinance 1238-Subdivision Regulations-2nd Reading X 6. Ordinance 1239-Schaus-Zoning Text Amendment Request -1st Reading n V J . S . J 7. Resolution 4261-Spring Creek -Annexation and Zoning Request (Hampton Inn) �c 8. Resolution 4262-Hunter-Annexation and Zoning Request (1400 4th Avenue West) 9. Resolution 4263-Hunter-Preliminary Plat V 10. Resolution 4264-Buffalo Hill Golf Course County Island Addition No. 274-Annexation and Zoning Request BUSINESS FROM MAYOR AND COUNCIL 11. Proclamation -Builders Club Week PYoc( - t BUSINESS FROM MANAGER 12. D.A. Davidson Agreement -Serve as Fiscal Agent 13. FRDO 1996-97 Work Program 14. Set Sewer Rate for Evergreen-1996 Calendar Year STAFF REPORTS Next Work Session May 13, 1996 7:00 p.m. Next Regular Meeting May 20, 7:00 p.m. ADJOURN Reasonable accommodations may be made to enable individuals with disabilities to attend this meeting. Please notify Debbie Gifford, Clerk of Council at 758-7756. Reclamation and Development Grant Application Reliance Refinery Soils and Sludge Cleanu�c Kalispell, Montana Submitted by: Trust Lands Management Department of Natural Resources and Conservation May 15,1996 Project Abstract for Reliance Refinery Soils and Sludge Cleanup The Trust Lands Management Division (School Trust Lands) of the Montana Department of Natural Resources and Conservation (DNRC) is applying for two concurrent Reclamation and Development Grants to clean up petroleum contaminated soils and sludges resulting from operations at the former Reliance Refinery in Kalispell, Montana. The proposed cleanup plan is to treat contaminated soils in an asphalt batch plant with the end product used for highway construction. The ultimate goal is to restore the site to useable land so the State can again lease this property. The Reliance Refinery Company owned and operated a crude oil refinery near the City of Kalispell from approximately 1925 to 1930. The facility produced gasoline, kerosene, light and heavy fuel oils, and other petroleum distillate products. Refinery operations apparently were not economically feasible because School Trust Lands obtained title to the property under a foreclosure of lien for delinquent oil taxes in September 1934. Unity Petroleum Corporation subsequently leased the property from the State and operated the refinery from 1935 to 1968 producing and storing similar petroleum products onsite. Waste oils, sludges, and tar substances were disposed in pits and/or discharged onto the ground surface while the refinery was operational. These petroleum constituents have contaminated the soil and groundwater on and beneath the site and represent a hazard to the community, as well as the environment. The majority of the contamination is located on approximately a 5 acre parcel that is within 150 feet of a number of private residences and about 750 feet from the Stillwater River (see attached figure). In approximately 1970, refinery facilities were dismantled and abandoned. Research of all potential responsible parties has determined that no viable party exists that could be held responsible for contamination and cleanup of the site. The site is contained on the State Superfund list and has been ranked as a high priority by the Montana Department of Environmental Quality (DEQ). The purpose of this grant project is to clean up petroleum contaminated soils and sludges at the Reliance Refinery site, and thereby eliminate the immediate health and environmental risks associated with these wastes. The proposed remedial action for the Reliance Refinery Site is an Interim Action focused on addressing petroleum contamination in the upper portion of the soil profile (i.e., upper 4 to 5 feet) throughout the site. The proposed remedial method will be to recycle the contaminated soils into road -grade asphalt. The contaminated overburden will be crushed and incorporated into the feed stream at a local asphalt batch plant, thereby converting this liability into a useable end product. c:Veliance\abastract.doc This grant project primarily consists of the following three tasks: Task 1. Conducting the necessary treatability testing; Task 2. Preparing a Voluntary Cleanup Plan for approval by DEQ that includes design and bid specifications; and Task 3. Implementing physical cleanup activities. The primary objective is to eliminate the risk of physical human contact and exposure from the contaminants. This action will also serve to prevent further degradation to groundwater, surface water, and air quality by removing the source of the contaminants. The plans and findings developed from this project can be applied to other refinery sites in Montana where similar problems exist. A remedial investigation was conducted in April 1996 by a private consultant under contract to DEQ. The results of the investigative work and a feasibility study evaluating possible remedial alternatives will be completed in July 1996. The report will be submitted as a supplement to this application. At that time the final remedial alternative may be refined depending upon the results of this work. c Areliance\abastract.doc I T1ER BERM UPPER TIER 1 SO' 0 300' 600' APPROXIMATE SCALE: 1' a 300' RELIANCE REFINERY DIESEL FUEL STORAGE QTANK SPILL I OCK .0 CCL—t"— DOCK ' DISTILLATION BOILERS TOWER r _.... --- SPRING '�i 0 (WATER SUPPLY ::: j / STATE OWNED LAND (APPROXIMATE BOUNDARY) FOR SfTE) •:.Ui::.... LEGEND ROADS RAILROAD TRACKS -- FENCE ASSUMED BN PROPERTY BOUNDARY QSPILL SITES - CRUDE OFF—LOADED FROM RR CARS. SPILLS, ACCUMULATION OF TAR ON SURFACE. RESIDUAL OR 'WAX OIL" STORAGE TANK FOR FUELING BOILERS PACIFIC IRON AND STEEL APPROXIMATE BOUNDARY OF FENCE AND STATE OWNED LAND r;� MONTCLAIR DRIVE PW�j YALE REFINERY ffCClIJJ PROPERTY RELIANCE REFINERY SITE SOURCE: EPA, 1986a Tom` FIGURE DETAILED SITE LOCATION MAP DRAWING NO.: PT360201 DATE: 1/31/96 PLOT SCALE: 1 1 GOODAL,G a xua ARBIERI WrAML C O M PA N I B S marxrrMX74 May 3, 1996 U+n,rf L at c>~ Mayor Doug Rauthe & Kalispell City Council gym, h,„ P.O. Box 1997 WM rAft Kalispell, Montana 59903 >ar d"*SW Got% Dear Mayor Rauthe and Kalispell City Council: WFATM Please let the hollowing serve as a summarization of the of the proposed additions to Kalispell Center: r80c.. Size Estimated Value MW?M r r,h* Addition to Cavanaugh's: 48 rooms $1,824,000 New Restaurant on Main Street: 7,000 SF 1,000,000 Herbergers Addition: 40,000 SP 1,800,000 J.C. Penny's Addition: 10,000 SF 400,000 New Specialty Retail Stores: 18,000 SF 810,000 Estimated FF&E increase for added space & new tenants: 300,000 Total $ 6,134,000 We agree with your March 1, 1996 letter, it is more cast effective to explore the City becoming involved in the acquisition of Lind located north of the Center rather than requesting public financing of a parking structure south of the Center. We request that the City Council authorize the use of Tan Increment Funding to acquire and improve for parking approximately 100,000 square feet north of Kalispell Center between 2nd ,kveme West and 5th Avenue West. We suggest Lots 7 &. 8 in block 28 and lots 1-12 in block 29 including alley and street if appropriate. Since Flathead Industries owns 7 of those lots perhaps this could facilitate their move into a more efficient for that portion of their operation. Additionally the project requires some utility relocation. As you can imagine the financing of this expansion is very complex. Batik of America and Key Bank now own 80% of the first mortgage on Kalispell Center a>z they have acquired Bank of Puget Sound and Ranier Bank. Neither lender is very familiar with Kalispell as one is based in Now York and one in San Francisco. W. 201 ,North Rim Drivr ■ SpekOle, Iffashfu ran 99201 1 (509) 459.6700 6 FAX (509) 325.7-324 Page 2 In order to finance the project there are two main issues that need to be resolved: 1) The lenders will not take a third position behind the UDAG loan. Additionally your letter suggested that the City will not ftuther subordinate the UDAG loan to a dgafficantty larger first mortgage. This dilemma rewires us to refinance and pay in full to the City of KAw1l the approximately $2,900,000 UDAG loan. The lenders will then have a first position on the whole project. 2.) We need to pay the city the fair market value of the approximately 100,000 Sly parking lot over 15 years. We propose an interest rate of the Bond rate plus 1%. The banks would have a 2nd position behind the City on the parking lot. We are very excited to gist this important project started this Fall. Please all me with any questions and I will plan to come over and meet with you as soon as you request. I really appreciated nioeting the time t spent with you and the City Council and I look forward to hearing from you. Sincerely, GOODAU & BAItBMM CONIPANMS Y JW^Mas M. Barbieri Vice President