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02. Council Minutes - Regular Meeting - July 1, 1996A REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:00 P.M. MONDAY, JULY 1, 1996, IN THE COUNCIL CHAMBERS AT CITY HALL IN KALISPELL, MONTANA. MAYOR DOUG RAUTHE PRESIDED. COUNCIL MEMBERS JIM ATKINSON, CLIFF COLLINS, NORBERT DONAHUE, LAUREN GRANMO, DALE HAARR, PAM KENNEDY, DUANE LARSON, GARY NYSTUL, CITY ATTORNEY GLEN NEIER AND INTERIM CITY MANAGER AL THELEN WERE PRESENT. Mayor Rauthe called the meeting to order and led the Pledge of Allegiance. AGENDA APPROVAL Haarr moved to approve the agenda. The motion was seconded. The motion carried upon vote. Approve Minutes -June 17, 1996 Collins moved to approve the minutes. The motion was seconded. The motion carried with a vote. Approve Claims per Payables.Register Nystul moved to approve the claims in the amount of $344,961.45. The motion was seconded. Upon vote the motion carried. Acknowledge Planning Board Consideration of the Downtown Urban Renewal Plan-TIF District Donahue moved to acknowledge the Planning Board consideration of the Downtown Urban Renewal Plan. The motion was seconded. The motion carried with a vote. ADDRESSING THE COUNCIL Resolution 4274-Create Airport Authority Gib Bissell, 76 Stafford Street, Airport Advisory Board Chairman, spoke in favor of creation of an Airport Authority with an effective date of January 1, 1997. Art Thompson, Lakeside, Advisory Board member, also spoke in favor of the Airport Authority. Central School Project Felecia Speck, 670 3rd Avenue West North, spoke in favor of the Central School/Museum project. Rick Riley, 131 Park Avenue, also spoke in favor. Tax Freedom Day and Poll Jerry Begg, 220 Woodland, read from an article reminding everyone of the Tax Freedom Day on May 6, 1996 and a poll taken in Montana. 895 Ball f ields Dan Johns, 216 North Riding Road, spoke in favor of the airport and ballfield projects. Downtown/Museum Delores Swanberg, Historical Society President, reminded the Council of the important decisions they will make and encouraged them to vote in favor of items that will keep the downtown area viable and the decisions will live long after. She also spoke in favor of the museum. 41 PUBLIC HEARINGS 0 Urban Renewal Plan -Downtown Mae Nan Ellingson, Dorsey and Whitney, Missoula, Bond Counsel for the City of Kalispell, gave a brief overview of the nature of tax increment bonds and explained their role as Bond Counsel. Proponents Tom Barbieri, Goodale and Barbieri Mike Abrams, 15751 Rcrckfield-, ,Boulevard, Irvine, California, expressed interest in purchasing,-�the-old FVCC property to build a 50,000 square foot retail center;, Donna Maddux, 201 Park Avenue, Whitefish Mike Lund, Herberger's, 910 2nd Street West Gordon Pirrie, Norm's News, 420 Lake Hills Lane Bill Goodman, 1275 Lower Valley Road Chuck Mercord, 42 Hillcrest Drive Bob Riso, Kalispell Chamber of Commerce Anna Marie Scarlett, 101 Rhodes Draw Tom Maier, Cavanaugh's Letters were received from: Felecia Speck, 670 3rd Avenue West North Mark Hogan, 641 2nd Avenue East Rick Goacher, 46 2nd Avenue East E.B. Gilliland, 5505 Highway 93 South, Somers Keith Robinson. 501 West Arizona Richard Riley, Sunnyside Drive Bonne Germain, Dorothy McGlenn, Howard Jacobson, 900 West Reserve Lois Himsl, 305 4th Avenue East Maridona Fisher Norick, Q]2ponents Jim Thompson, 160 River View Road Ken Yachechak, 85 Buffalo Hill Drive Cliff Bennett, Lakeside Bill Gould, 154 Sherry Lane Ken Carey, Gateway West Mall Greg Ellingson, 133 Cardiff j • t Dale Williams, Whitefish Jerry Begg, 220 Woodland Bill Boharski, 1433 5th Avenue West Howard Hammer, 717 2nd Avenue West Con Lundgren, 137 Fairway Boulevard Fred Hammill, 505 7th Avenue West Jack Fallon, 629 Shadow Lane Ron Anderson, JC Penneys, clarified the R.V. Romain, Gateway West Mall, President Per Storli, 3420 Airport Road Roger Somerville, 765 Angel Point Road, Stan Pine, 28 Lakeshore Drive Mark Guest, 411 Chestnut store's position of Merchants Association Lakeside A letter was received from Everit Sliter, 604 5th Avenue East and Calvin Newell, 215 Garland Street. Rauthe closed the public hearing. 192fi-97 Budget Proponents Done Opponents Jerry Begg, 220 Woodland Rauthe closed the public hearing. ORDINANCES & RESOLUTIONS Ordinance 1242-Creating an Urban Renewal Plan-Airport/Ballfield Complex-2nd Reading The Airport Advisory Committee has revised their budget which Council received at the last work session. The sale of some of the property at the airport and tax increment funds on development will provide funds to implement the Airport Master Plan and relocate the ball field currently on airport property. Kennedy moved Ordinance 1242, an ordinance approving the Kalispell City Airport/Athletic Complex Redevelopment Plan analysis for the City of Kalispell, Montana as an Urban Renewal Plan; authorizing the manager to implement the plan with the powers contained in the urban renewal law, and declaring an effective date. The motion was seconded. Nystul moved to amend Exhibit A by inserting the following at the end, "Haven Field is not to be sold until sufficient title has been obtained for a replacement ball field site". The motion was seconded. There was discussion. The amendment carried unanimously with a vote. Nystul moved to amend Exhibit A to Ordinance 1242 by inserting paragraph 2 as follows: "No funds will be spent for improvements or construction of "ball field" facilities until an interlocal agreement has been signed and approved by the appropriate parties who will be using the facility such as: City of Kalispell, Flathead County, FVCC, School District No. 5, and the respective sport organizations". The motion was seconded There was lengthy discussion. The amendment failed with Nystul, Donahue, Granmo and Haarr voting in favor and Kennedy, Larson, Collins;, Atkinson and Rauthe voting against. Nystul moved to amend Exhibit A of Ordinance 1242 by inserting the following: "No land west of Highway 93 is to be sold until an adequate Airport Business Plan has been approved by the City Council which demonstrates the ability of the Kalispell City Airport to generate sufficient revenues from all sources to adequately fund airport operations,over the next 20 years". The motion was seconded.s There was more discussion. The amendment carried with Collins, Nystul, Granmo Haarr and ,- Donahue voting in favor and Kennedy, Larson, Atkinson and Rauthe voting against. The twice amended motion carried upon roll call vote with Haarr, Kennedy, Larson, Nystul, Atkinson, Collins, Donahue and Rauthe voting in favor and Granmo voting against. Ordinance 1243-Creatina an Urban Renewal Plan -Downtown -1st Reading Thelen explained that several of the members of the Council have submitted reservations about the $12,500,000 proposed bond issue for projects within the Downtown Urban Renewal Area. Comments have ranged from financing none of the projects to elimination of several and a cutback in the size of some. Specific concerns that have been expressed include: A. A desire to return tax values to the taxing districts by 2002 when the initial bond issue is scheduled to be retired. B. A desire to return some of or all of the tax valuation in the downtown increment district to the taxing district as soon as possible. C. A desire to reduce the size and amortization schedule of the proposed $12,500,000 20 year issue. Thelen felt there were five potential alternatives to react to some of or part of these concerns, in addition to several different degrees of each alternative. The 'alternatives are: 1. Action to eliminate the downtown tax increment district by June 30, 1997. Call the outstanding tax increment bonds in January of 1997 and close out the project, including disposition of land. This would permit the existing taxing districts to use the tax valuation created by the district in FY 1998, four years sooner than originally projected. It would have the disadvantage of not encouraging the continued progressive development in the area and` give a negative signal to current and potential developers in the downtown area. The opportunity to use increment funds for public improvements,- including infrastructure, in the area would be lost. 2. Alternative two would be to proceed with using all of the projects in the Resolution of Intent. The Kalispell Mall has been reduced by $603,000, and the School Board is not interested in the ,$`670,000 project that they originally submitted if it delays the returno:f the increment tax base. The project extends the tax' Increment program in the downtown area by another 16 years, which` is a real concern for many people. A tax return to the existing' tax districts could be implemented in 1998. 3. Action to move ahead with the district as originally proposed .but limit the amortization schedule to 15 years. This would allow the City to provide maximum assistance to encourage investment in the area and a mechanism to finance needed public infrastructure and public improvements. It would delay the full return of taxable evaluation to other taxing jurisdictions for an additional 11 years; however, it would increase the ultimate taxable value for all tax districts that includes the downtown district. A significant amount of taxable value could be returned in the year 2002 and some as early as FY 1998. 4. Eliminate the issuance of additional bonds, and use the approximately 9.5 million dollars available between now and 2002 for projects. This would require a reduction of proposed projects to an 8 million dollar level and the use of approximately 1.3 million to pay the interest and principal of the current issue over its projected five year life. This approach would have either the advantage or disadvantage of returning tax value to the taxing districts in accordance with original plans, but no sooner. It would require the reduction of three million dollars in project costs plus the value of any projected land sales that might be lost in this type of project cut. It would also save interest costs of between $4,237,375 and $5,517,670, depending on the amount of bonds that might otherwise be issued - less the costs of temporary financing. J 5. The issuance of bonds in an amount between $8,000,000 and $9,000,000, with $8,000,000 being used for current project costs for a 15 year period. This would have the major advantage of permitting a return of a portion of the increment dollars to property taxing districts in 1998. Based on projections from Kreg Jones of D. A. Davidson, this approach would allow the City to return $952,570 beginning in 1998 - four years prior to the current time table. Exhibit #1, which is based on the FF 1996 tax levies, illustrates the percentage of return to each taxing district and the amount "each would receive based- on a one million dollar distribution. This option would be similar to the one being used in Great Falls and Billings. The Council°would still have to cut approximately three million in projects. --The-bond issue would be in the amount of $9,000,000 to cover necessary reserves and issuance cost. One million dollars of projects would be funded from the 1997 fiscal year budget from funds now earmarked for the pay off of the current bond issue. Three million dollars worth of projects would have to be cut. Thelen felt that one, or a-combination,r.of=these alternatives could meet a majority but certainly n6t~=a11 :the: 'concerns that were identified above. -. No decision should be made until after Council has the input at the public hearing; however, due to the ultimate time table of reaching a point where a bond closing can be met no later than September 9, it is almost imperative that Council pass an ordinance on First Reading on July 1, 1996 if bonds are to be reissued. On July 15, 1996, the ordinance can be amended to permit Council to dwell on the information provided at the hearing for a couple of weeks. Thelen suggested that Council review each project and decide to include the project at a specific amount or eliminate them altogether. The City Attorney will be prepared to amend and rewrite the ordinance at the meeting so it can reflect Council's best collective judgement on July 1 and, like any other ordinance, it can be amended on July 15 to meet Council's collective judgement at that time. The ordinance includes the projects and numbers included in the Resolution of Intent. A better figure on the Kalispell Mall, which is now $2,624,000, $603,000 less than the figure in the original resolution and the School Board has indicated that they do not want the $670,000 project but want to accelerate the schedule for returning valuation to their districts so this $1,223,000 can be the first things cut. Kennedy moved Ordinance 1243, an ordinance relating to the modification of the Kalispell, Montana Urban Renewal Plan (The Urban Renewal Plan) to approve certain projects as Urban Renewal Projects. The motion was seconded. There was lengthy discussion. Larson spoke in favor of the motion. 900 Haarr, Granmo, and Donahue spoke against the motion. Kennedy, Collins, Atkinson and Rauthe spoke in favor of the motion. Larson called for the question. With ;a roll call vote the motion carried with Kennedy, Larson, Atkinson, Collins, and Rauthe voting in favor and Granmo, Haarr, Nystul and Donahue voting against. Ordinance 1244-Samaritan House -Text Amendment -Allow Shelters in RA-1 Zone-lst Reading. The Samaritan House has requested a text amendment to the zoning ordinance that would allow "shelters" as a conditional permitted use in the RA-1 zone and that parking requirements for "shelters" be changed from one parking stall for each two beds to one stall for each five beds. The �Pl.anning Commission, by a vote of 5 to 0, recommends this change and added the RA-2 and RA-3 zones to zones where a shelter wousld� be .allowed as a permitted use in their recommendation. Larson moved Ordinance 1244, an ordinance amending Sections - 27.09.030, and 27.11.030 of the Kalispell Zoning Ordinance, (Ordinance No. 1175), by allowing "shelters" as a conditionally permitted use in a RA-1, Low Density Residential Apartment; RA-2, High Density Residential Apartment; and RA-3, Residential Apartment/Office Zoning Districts and additionally amending the parking°requirements for "shelters", and declaring an effective date. The motion was seconded. The motion carried upon roll call vote with Granmo, Haarr, Kennedy, Larson, Nystul, Atkinson, Collins, Donahue and Rauthe voting in favor. Resol_Ution 4274-Create Airport Authority This resolution as drafted extends the time that the City Council will exercise the powers of an Airport Authority until January 1, 1997, at which time an independent Airport Authority will be created. The Council agrees to continue to use the Airport Advisory Board and to review and approve the Board's business plan so that the advisory board can implement. Kennedy moved Resolution 4274, a resolution of the City Council to exercise all powers granted under the "Airport Authorities Act" (Title 67, Chapter 11, Montana Code Annotated) for the purpose of operating, maintaining and expanding the Kalispell City Airport, continuing the Airport Advisory Board, and adopting the Airport Business Plan. The motion was seconded. 901 With a roll call vote the motion carried with Granmo, Haarr, Kennedy, Larson, Nystul, Atkinson, Collins, Donahue and Rauthe voting in favor. BUSINESS FROM MAYOR & COUNCIL Solid Waste Board Appointment Gary Nystul's term on this board expired on June 30th, Norb Donahue attended their special meeting on June 26th. The Council needs to make a recommendation to the County Commission for the vacancy. Granmo abstained from discussion and vote. Atkinson moved Norb Donahue be appointed tothe Solid Waste Board with a recommendation to the County Commissioners. The motion was seconded. The motion carried with a vote. City Attorney Evaluation A committee composed of Collin ,T ennedy and Haarr-was appointed by the mayor to evaluate City .Attorney ---Neier. -Collins gave a report and moved the committee report be >accepted and include a 2.5% salary increase retroactive to January 1, 1996. The motion was seconded. There was discussion. The motion carried unanimously with a vote. BUSINESS FROM MANAGER Agency on Aging-Interlocal Agreement This proposed Interlocal Agreement between Flathead County and the City provides that the County through its Agency on Aging will provide limited municipal bus services within the City of Kalispell and the City will provide an annual payment for the service as determined each year in the annual budget. (It is currently set at $10,000 in the preliminary 1997 budget.) The agreement is for one year and will be automatically renewed unless one of the parties gives written notice to discontinue 30 days before the annual renewal date. Thelen recommended that Council approve this Interlocal Agreement. Atkinson abstained from discussion and vote. Larson moved the mayor be authorized to sign the Interlocal agreement between Agency on Aging/Flathead County and the City of Kalispell with the amount inserted in paragraph 4 of the amount approved by the budget. The motion was seconded. With a vote the motion carried. 3 Ellsworth -Lawrence Park Re nest Thomas Ellsworth on behalf of Montana for Clean Water has requested the approval to use Lawrence Park for a benefit program on July 14, 1996 from 12:30 p.m. to 11:00 p.m. It is estimated that from 200- 300 people will be in attendance. He has requested a permit to sell beer and wine at the event. The police chief has requested that (2) officers be hired to assist with security. The Parks Director recommends use of porta potties as the new restroom will not be available. Kennedy moved to deny the "request to be able to sell alcohol at Lawrence Park and make sure the permit indicates for occupancy at the park that the park does close at 10:00. The motion was seconded. There was discussion. Kennedy and Larson spoke in favor of the motion. The motion to_ deny carried with a vote with Nystul, Granmo and Rauthe voting against__ Bid Awards Curbs & Sidewalks This bid was requested for residents and businesses wishing to take advantage of the annual sidewalk and curbing program. Two bids were received from Pack & Company and Sandon Construction as follows: Bid Ite and ram. Pack 4" Sidewalk $ 3.00 $ 3.20 611 Sidewalk $ 3.20 $ 3.20 Curb & Gutter $ 8.00 $10.,00 Straight Curb $ 8.50 $10.00 Sandon Construction submitted the lowest bid and Thelen recommended that the bid be awarded to Sandon Construction. Kennedy abstained from discussion and vote. Nystul moved the 1996 annual curbing and sidewalk bid be awarded to Sandon. The motion was seconded. The motion carried upon vote. Lawrence Park/North Main ISTEA Trail Two bids were received on the Lawrence Park/North Main ISTEA Trail project from A-1 Paving and Pack & Company as follows: Pack & Company $51,158.70 A-1 Paving $76,560.02 90-' Thelen recommended that the award be made to the low bidder, Pacl & Company. Kennedy abstained from discussion and vote. Larson moved to award the bid for the Lawrence Park/North Mair Trail be awarded to -Pack & Company in the amount of $51,158.70. The motion was seconded. The motion carried with a vote. Authority to Bid -Windward Way. Reconstruction; The City Staff- has .requested authority to bid the Windward Way Street Project. It is a major improvement project included in the 1997 budget. Kennedy moved to give authority to bid the Windward Way St Project. The motion was seconded. Upon vote the--moti-on carried. Traffic Signal Maintenance Agreement/Flathead County The County has requested an agreement whereby the City would maintain the traffic signals and flashing lights in the County and bill the County for the actual costs. Nystul moved to enter into an agreement with Flathead County for the Traffic Signal Maintenance. The motion was seconded. The motion carried with a vote. STAFF REPORTS Budget Work Session July 8, 1`996 6:OO p.m. Next Work Session July 8, 1996 7:00 p.m. Next Regular Meeting July 15, 1996---- 7:00 p.m. City Picnic August 21, 1996 5:00 p.m. ADJOURN The meeting was adjourned at 11:28 p.m. Douglas D. Rauthe, Mayor ATTEST: Debbie Gifford, CMC Clerk of Council