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02a. Council Minutes - Regular Meeting July 15, 1996ME, A REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:00 P.M. MONDAY, JULY 15, 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 Thelen asked that a request for boundary line adjustment by Ellingson be added. Haarr moved to approve the agenda with the addition. The motion was seconded. The motion carried upon vote. Drove Minutes -July 1, 1996 Collins moved to approve the minutes from July 1, 1996. The motion was seconded. The motion carried with a vote. Approve Claims per Payables Register Nystul moved to approve the claims in the amount $194,485.43. The motion was seconded. Upon vote the motion carried. ,Pledged Securities June 30, 1996 Nystul moved to approve the pledged securities as of June 30, 1996. The motion was seconded. The motion carried upon vote. ADDRESSING THE COUNCIL TIF The following spoke in favor of TIF: Marshal Noice, 637 6th Street East Dave Thornquist, 132 Troutbeck, Lakeside Marion Garrish, 857 lst Avenue East North Jack King, 335 Lake Hills Drive Virginia Sloan, 445 6th Avenue East Paul Wachholz, 120 Fairway Boulevard Lynda Collins, 302 Salish Court Lee Berger, 208 Riverview Drive A.J. King, Valley Bank Ivan O'Neil, 312 Crestview Drive Delores Swanberg, Lakeside 1 Tom Barbieri, Cavanaugh's John McMillan, 258 Juniper Bend Gordon Pirrie, Norm's News Dorothy McGlenn, 212 3 Mile Drive Steve Olson, 378 Ponderosa Lane Chuck Mercord, 42 Hillcrest Shawn Sorenson, 604 4th Avenue East Rauthe noted a letter of support was received from Wayne Saverud and School District #5 Finance Committee favoring option #6. The following spoke against TIF: Con Lundgren, 137 Fairway Boulevard, Darrell Clothier, 1985 Hwy 35 Ken Yachechak, 43 Hillcrest Jack Fallon, 629 Shadow Lane ORDINANCES & RESOLUTIONS Ordingnce 1243-Creating an Urban Renewal Plan-Do1qntown-2nd Reading This ordinance has been drafted with an amendment that incorporates the sixth alternative as outlined in the City Manager's memo presented last Monday. The narrative descriptions of the Market Place III project has been amended in title to "Highest and Best Use Redevelopment Projects" to meet the suggestion of Councilman Haarr so that the Council will have more flexibility as it relates to a specific project. The "Downtown Parking" description has also been amended to meet the suggestion of Mayor Rauthe to provide the Council more flexibility with this item. The amended ordinance approves seven projects at an estimated cost of $8,500,000, and anticipated bond issuance costs of $225,000, refinancing costs of current bond issue of $1,210,098 and a debt service reserve of $751,000. The funds will be generated by land sales of $1,602,000, cash available from the 1996 budget of $1,575,000, and a bond sale of $7,510,000. The future actions necessary to implement this project include: August 15-Price and enter into a bond purchase agreement September 9-Close on bonds The Kalispell Mail project will provide approximately 126,000 square feet of additional retail parking space on the land that they will acquire from the City. This will result in a total of 5.2 parking spaces to 1,000 square feet of leasable retail space. The current ratio is 6.8 spaces per 1,000 square feet of leasable retail area. An inquiry was made regarding how many dollars the City has spent on the Downtown Tax Increment Program since it started and the projection for the bond program: 1982-1996 $16,072,000 F1 Bond Proposal 1997-2006 $10,051,000 $26,123,000 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. Kennedy moved to amend Ordinance 1243 to reflect the sixth alternative as outlined in the City Manager's memo. The motion was seconded. �z There was discussion. Kennedy spoke in favor of the amendment. Z;4 Larson spoke in favor of the amendment and called for the question. The amendment carried unanimously with a vote. Donahue moved to amend the ordinance to add to each of project paragraphs "the city has already invested in this project or property the sum of $ from TIF funds". The motion was seconded. There was more discussion. The amendment failed with Donahue, Nystul and Haarr voting in favor. Donahue moved to amend the motion to delete the Central School project from the ordinance. The motion died for lack of a second. Haarr spoke against the ordinance. Larson spoke in favor of the ordinance. The amended motion carried upon roll call vote with Atkinson, Collins, Kennedy, Larson, and Rauthe voting in favor and Haarr, Donahue, Granmo and Nystul voting against. 905 Qrdinance 1244-2amaritan House -Text AmendMgnt-Allow Shelters in RA-1 Zone-2nd 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 Planning 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 would 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. With a roll call vote the motion carried with Atkinson, Collins, Donahue, Granmo, Haarr, Kennedy, Larson, Nystul and Rauthe voting in favor. Ordinance 1245-Amending the Administrative Code Regarding Temporary Residence of City Manager -1st Reading This amendment will allow the 'City Council to permit the City Manager to reside temporarily outside the city limits of Kalispell pending annexation of the manager's residence. Clarence Krepps has a contract to purchase a home in Buffalo Stage which is scheduled to be annexed once 50% of the lots are sold. It is served water and sewer by the City and should be annexed in 1997. Thelen recommended that Council approve this ordinance. Larson moved Ordinance 1245, an ordinance amending Section 2-36, Ordinance 1166, authorizing the Council to waive the residency requirement for a temporary period pending annexation, and declaring an effective date. The motion was seconded. Nystul moved to amend the language as presented to incorporate those things necessary to convert this to an emergency. The motion was seconded. The amendment carried unanimously. The motion carried upon roll call vote with Atkinson, Collins, Donahue, Granmo, Haarr, Kennedy, Larson, Nystul and Rauthe voting in favor. Resolution 4275-Extending Time for Water Hook-ups Resolution 4275 will extend the 'time that property owners can purchase water hook-up services at the rate that was in effect prior to July 1, 1996. The Council approved a resolution on June 17th increasing the hook-up fees effective July 1, 1996. This resolution will provide an extension to September 1, 1996 for those wanting to make this purchase. No one has acquired a water hook-up since July 1. Kennedy moved Resolution 4275, a resolution providing for an effective date for the application of water connection fees established under Resolution 4267. The motion was seconded. With a roll call vote the motion carried with Atkinson, Collins, Donahue, Granmo, Haarr, Kennedy, Larson, Nystul and Rauthe voting in favor. Resolution 4276-Fix Annual Appropriations FY 96-97 Budget Thelen requested Council move on to the other agenda items prior to this. It was consensus to do so. BUSINESS FROM MAYOR & COUNCIL Rauthe read a letter from HUD, Tony Hernandez, Assistant Secretary to HUD "Cisneros to Susan Moyer requesting her presence at the Rocky Mountain Home Ownership Summit in Denver, Colorado. Rauthe commended her and congratulated her for having developed that expertise in this area. BUSINESS FROM MANAGER D.A. Davidson engagement Letter - Tax —Inc rement_Umban Renewal Bonds This letter sets forth the understanding that the City and D.A. Davidson have regarding the proposed tax increment bond issue that the City has been considering for the past several months. D.A. Davidson agrees to provide financial advisory services to the City and to purchase the bonds. The City is obligated to pay actual travel expenses not to exceed $2,500 if the bonds are not sold. Thelen recommended that Council acknowledge the letter dated June 24, 1996. Nystul moved the City accept the proposal from Kreg Jones of D.A. Davidson relative to the issuance of the tax increment urban renewal bonds. The motion was seconded. With a vote the motion carried. Bet Public Hearing to Adopt Rule Reauiring Annexation Relating to Water 907 These two rules -one for water utility and one for the sewer utility have been recommended by the City Attorney so that the City can use the recent Attorney General's opinion regarding the annexation of properties using the City's water and/or sewer utility. Atkinson moved the Council set a public hearing to adopt a rule requiring annexation relating to sewer and annexation relating to water for August 19, 1996. The motion was seconded. There was discussion. The motion carried with a vote. Water Rate Adjustments and Sewer Rate Increase Notices of Public Hearing August 19, 1996 Water It is necessary that the City hold a public hearing on the water rate adjustments. The water rate study completed in 1994 provides the basis for these adjustments. The 1 million dollar water improvement project requires the issuance of bonds but did not require a rate increase. .The City issued the bonds in June and held these adjustments so that they could be noticed at the same time as the sewer rate increase. The sewer rate increase needed to await the settlement of the dispute with the Evergreen Sewer District which was completed last month. Major adjustment relates to the change in sprinkling rates, fire hydrant charges, customer service charges and definition of dwelling units or office units. Thelen recommended that Council approve a motion to hold the public hearing on August 19th as identified in the prepared notice. Sewer An increase in the City sanitary sewer rates has been delayed 2 years awaiting the resolvement of the disagreement with the Evergreen District over waste water treatment rates. The City has used cash reserves to meet operating expenses. A customer service rate of $2.65 bi-monthly and a charge of $2.98 per thousand gallons of sewage treated is proposed. Thelen recommended that Council pass a motion establishing the hearing date of August 19th and directing staff to publish the required notice. Larson moved to advertise notice of public hearing for August 19th for water rate adjustments and sewer rate increase. The motion was seconded. There was discussion. With a vote the motion carried. Bid Awards tat Street East/Central School Constru t�ion Bids were opened on July 10, 1996 for the Central School Plaza, Woodland Park Trail and overlook and the Woodland Park Connection Parkway Improvements. This project was bid on 3 different schedules. The low bidder for Central School is NuPac at $178,517.00, the Woodland Park Trail is NuPac at $173,741.27 and the Woodland Park Connection Parkway Improvements is Sandon at $73,367.00. Collectively the 3 bids exceed the budgeted amount by $77,171.27. Staff recommended that the bid awards be made to the low bidder in each instance and that $77,171.27 be taken from the uncommitted project account in the Fx 1997 budget. Central School Plaza NuPac $178,517.00 Sandon $182,402.00 LHC $207,478.00 Atkinson moved to accept the low bid of NuPac at $178,517.00, for Central School. The motion was seconded. There was discussion. The motion carried with Granmo, against=.' Woodland Park Trail and Qverloo NuPac $147,241.27 Gembala $187,880.00 LHC $196,315.00 Donahue, Nystul and Haarr voting Granmo moved to award the bid to NuPac in the amount of $147,241.27. The motion was seconded. The motion carried with Donahue voting against. WoodlandWgodland Park Connection Parkway ImDrovgmgnts Sandon $ 73,367.00 NuPac $ 79,980.00 Atkinson moved to award the bid to Sandon in the amount of $73,367.00. The motion was seconded. Haarr moved to amend the motion to take out the antique light conduit and light bases for an approximate credit of $20,000 bringing the price more in line as suggested. The motion was seconded. Kennedy spoke against the amendment. 909 There was discussion. The amendment carried with Atkinson, Collins, Kennedy and Rauthe voting against. Haarr spoke against the amended motion. There was more discussion. Haarr moved to table the motion until August 5, 1996. The motion was seconded. The motion carried with Atkinson, Kennedy and Rauthe voting against and was tabled. City Prgpeertylyehicle Insurance Two bids were received and opened on Friday for the City property/vehicle and equipment insurance as follows: Flathead Association of Independent Insurance Agents $60,589.00 Flathead Insurance $40,808.00 Haarr moved to accept the recommendation and award the bid to Flathead Insurance in the amount of $40,808.00. The motion was seconded. There was discussion. The motion carried with a vote. Boundary Line Adjustment with Greg Ellingson The City has been requested to consider a boundary line adjustment with Greg Ellingson regarding property that he owns adjacent to a drainage ditch south of Woodland Park. A survey reflected that part of a building is on City property. The Site Review Committee and City Attorney recommend the boundary adjustment. The land the City is giving is 1,400 square feet less than what is being received. The new land is better property. Thelen recommended that Council authorize the mayor to sign the boundary line adjustment subject to Ellingson acquiring the necessary survey. Haarr moved the boundary line adjustment be granted as per the request of Greg Ellingson and the cost apportioned as suggested by the City Attorney. The motion was seconded. There was discussion. With a vote the motion carried. due Bgsolution 427.7-Annual Tax Levies _J,egolutioT7JM'I-7-�&w-ina and Ass-essingA- 15 Mills-cit evartment Resolutign 4279-Levy Cost of Garbage Remoyal Resolution 4280-Levy Assessment for Special Maintendnce Resolution 4201-Levy Assessment for Special Lighting DistLcict R I esolutio Kennedy moved to table Resolutions 4276-82 until the next meeting. The motion was seconded. The motion carried with Rauthe voting against and was tabled until August 5, 1996. STAFF REPORTS Next Work Session July 22, 1996 7:00 p.m. Next Work Session July 29, 1996 7:00 p.m. Next Regular Meeting August 5, 1996 7:00 p.m. Atkinson will be out of town on July 22nd. ADJOURN The meeting was adjourned at 10:02 p.m. Douglas D. Rauthe, Mayor ATTEST: Debbie Gifford, CMC Clerk of Council