Agenda Memo1,.
Telephone (406) 758-7700
FAX (406) 758-7758
Post Office Box 4997
Kalispell, Montana
Zip 59903-1997
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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.
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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.
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;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.
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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.
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*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.
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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.