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Agenda Memo1,. Telephone (406) 758-7700 FAX (406) 758-7758 Post Office Box 4997 Kalispell, Montana Zip 59903-1997 0 11 0 � I �cc Incorporated 1892 - AGENDA MEMO - TO: Mayor and Members of Council FROM: Al Thelen, Interim City Manager RE: Council Agenda for August 19, 1996 Agenda Item 2-Council Minutes Included in your packet are the minutes from the following meetings: Council meeting of July 15 1996 Special Meeting of July 22, 1996 Regular Meeting August 5, 1996 Agenda Item 3-Approval of Claims The schedule of claims to be paid on Tuesday, August 20, 1996, have been prepared and available for Council to review. I have reviewed the claims presented amounting to $239,871.53 and recommend their payment. Douglas Rauthe Mayor Al Thelen Interim City Manager City Council Members: Gary W. Nystul Ward I Cliff Collins Ward I Norbert F. Donahue Ward 11 Dale Haarr Ward 11 Jim Atkinson Ward III Lauren Granmo Ward 111` Pamela B. Kennedy Ward IV M. Duane Larson Ward IV El PUBLIC HEARINGS Agenda----IteM 5-Eewer glad Water-Ruleg Making Authority for Both Utilities The City Attorney reviewed the Attorney General's opinion dated December 29, 1995 regarding the authority of the City to annex properties that use City utilities. He concluded that the City's position regarding annexation would be enhanced by the adoption of a rule for the water and sanitary sewer department that recognizes the City's current policy as it relates to requiring Consents to Annex as a condition of using the City's water and/or sewer utility. He recommended a public hearing on the rules before final action is taken. The public hearing is set for August 19, 1996. agenda Item 6-Sewer Rate Increase The City has delayed a sanitary sewer rate increase for the last 2 years pending resolvement of the dispute the City had with the Evergreen Sewer District regarding rates to be charged to the district under the interlocal agreement between the two entities. During this period of time, the City has used reserve funds to finance a portion of our sewer operations. 3 The proposal before you would initiate a customer sewer charge per meter of $2.65 per billing period and increase the costs from $2.54 per thousand gallons to $2.98 per thousand gallons. The number of dwelling units will cease from becoming a factor in the rate. The reason for the increase is related to the anticipated costs of sewer operations of the text two years. out of city charges will continue at 125% of in city rates. These rates will become effective on usage after September 1, 1996. Sewer rates were last increased in 1991. Agenda Item 7-Water Rate Adjustments The adjustments in rates are related to the study initiated in 1994. This study told us that we could issue water bonds for our improvement program without a water rate increase however the study did identify a number of inequities in the current water rates. The number of dwelling units will no longer be a factor int he rate structure. The previous 4 block rate schedule will be replaced by a two block system. Sprinkling rates will be increased from $.62 per thousand gallons to $.75 per thousand gallons and fire hydrant rentals are built into the water rates rather than be funded from property taxes. The water rates were last increased in 1993. These rates will provide sufficient revenue to meet operating, capital and debt sources for water users. 4 ;sIJ#3 4:lA k, [if *—M'f:ice • � r Item 8-Ordinance 1246---Creatina Munic This Ordinance establishes a Municipal Court system to replace the current City Court, effective January 6, 1997. The Council approved this change as part of the FY 1997 budget. The Ordinance requires that the Judge be a licensed attorney in Montana for two years and the court will be a Court of Record, which means that appeals to District Court will be on the record established in the lower court. The court will also have concurrent jurisdiction with the District Court on matters pertaining to landlord/tenant law. You approved first reading at the last meeting and it is recommended that you approve the Ordinance on second reading. This resolution will implement the "Rules" identified in Agenda Item 5, relating to the City's sewer utility. This resolution will implement the "Rules" identified in Agenda Item 5 relating to the City's water utility. wmw - I"« - - - This resolution includes the 17% sewer rate increase identified in Agenda Item 6. 91 Agenda e -R o n 428B-W51ter, Rate This resolution includes the water rate adjustments identified in Agenda Item 7. Agenda Item 13-Resolution 4289-ResolutioD of Intent to Annex a Rgrtion of the Evergreen Commercial Strip This resolution will authorize the mailing of notices to the 34 property owners in the area proposed to be annexed. The notices will be sent on September 20th, providing an opportunity to protest up and through the 12th of October. The Planning Board will consider the request on October 8th, and the Council will hold a hearing on October 21st. The City has "Consent to Annex" documents, and Request to Withdraw from the Fire District that are recorded from nineteen of the 34 property owners. The City can provide services to the area without adding additional employees. It is estimated that the City's costs of providing services will be $50,000, and the annual revenues to the City will be $155,000. These properties are currently receiving their police services from the Sheriff's department that is subsidized by the property owners in the City. Once annexed, they will join the other property owners in the City in providing this subsidy to those properties located in the unincorporated areas of the County. It is recommended that you pass the Resolution of Intent to Annex this property. A Resolution 4290 will modify the downtown Urban Renewal Plan to include the six (6) projects that were included in Ordinance No. 1243, which was the subject of your repeal action on Thursday. The only significant change relates to the funding of the projects which will be through annual appropriations and temporary borrowing as needed rather than by the use of bonds. The City is scheduled to receive approximately $2,000,000+ each of the next 5 years (including FY 1997) that can be used to fund these projects. �f. 1. Kalispell Center Mall $ 2,625,000 ` 2. K.D.C. Site 2,000,000 3. Central School Project 2,500,000 4. Affordable Housing 300,000 5. Downtown Parking 800,000 6. Redevelopment Incentive Project 275,000 Subtotal $ 8,500,000 Less band Sales 19600.000 Total $ 6,900,000* The Resolution calls for a Public Hearing on October 21, 1996 on the projects. After the Public Hearing, an Ordinance can be passed that will then permit the City to enter into development agreements on each project. It is recommended that you approve this Resolution. 7 *This does not include temporary interest costs. Agenda Item 15-Resolution 4291-Sidewalk Policy This Resolution establishes a new policy for sidewalk replacement and reiterates the current policy regarding the Installation of sidewalk in areas that do not currently have sidewalk, which is that the property owner is responsible to pay for these sidewalks. Under this policy, the City will assume the responsibility to replace existing sidewalk. it specifically requires the City to replace the damaged walks in the downtown urban renewal area in FY 1997. The Public Works Department will develop plan and specifications for this program this Winter. The policy requires the City to establish a sidewalk replacement program for areas outside the downtown Urban Renewal area in FY 1998 and commits $25,000 a year to the annual program for five years. In five years our current sidewalks that are defective will be replaced and the City will spend $15,000 a year to replace sidewalk. It is recommended that you approve this resolution. 8 BUSINESS FROM MANAGER tem 17-Letter of Offer by David Thornauist _forMarket David Thornquist, acting as an agent of Woods and Water Realty and representing the owner, Duane Bill Martin, and a major retailer, has proposed to construct a 24,500 square foot retail building located at the corner of Center Street and Third Avenue East and east of the Glacier Bank Drive-Thru facility. He has requested that the City acquire the improvements on the property at the current assessed valuation as determined by the County Assessor, which is $210,000. He also requests that the City demolish and clear the site at an estimated cost of $60,000. It is anticipated that the new building will cost $1,200,000, with tenant improvements costing $380,000. The City's investment will be returned in 3J years in taxes. It is recommended that you pass a motion approving this proposal and authorize the preparation of a developer's agreement. Aggenda Items 18-Option on City Owned fro ert nvo1ved in KDC Site and the,- Corner Property Adjacent to the Liberty Theater and StatgfPnt of Intent to Assemble the: Balance of private property in Block J1 Abrahms Venture has submitted a request to option the purchase of the KDC site and the corner property adjacent to the Liberty Theater. Mr. Gallagher has outlined the major points of the proposed option in his attached memo of August 16, 1996. Chief Clark is requesting authority to bid a police patrol cruiser.