* 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