Tab 30 City Council Meeting Minutes October 17, 2005A REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:00
P.M., MONDAY, OCTOBER 17, 20059 IN THE COUNCIL CHAMBERS AT CITY HALL IN
KALISPEL4 MONTANA. MAYOR PAMELA B. KENNEDY PRESIDED. COUNCIL
MEMBERS JIM ATKINSON9 KARI GABRIEL, BOB HAFTERMAN, BOB HERRON,
RANDY KENYON, TIM KLUESNER, DUANE LARSON, AND HANK OLSON WERE
PRESENT.
Also present: City Manager James Patrick, City Attorney C harles Harball, City Clerk Theresa VVhite,
Finance Director Amy Robertson, Public Works Director Jim Hansz, Police Chief Frank Garner, Fire
Chief Randy Brodehl, Kalispell Planning Department Senio r Planner Narda Wilson, and Recording
Secretary Judi Funk.
Mayor Kennedy called the meeting to order and led the Pledg e of Allegiance.
A. AGENDA APPROVAL
Kenyon moved approval of the Agenda. The motion was seconded.
There was no discussion.
The motion carried unanimously upon vote.
B. CONSENT AGENDA APPROVAL
Council Minutes — Regular Meeting October -3. 2005
---- I Pledged Securities as of September 30, 2005
3. AMroving Revised Interlocal Agreement — MMIA
The Montana Municipal Insurance Authority has determined that revisions to the original
In'terlocal Agreement are necessary and Council was asked to approve those revisions.
4. Grant Acceptance — Nurtu "in Center
The Nurturing Center was recently awarded a grant for $289,798 from the Department of.
Justice. This money is a pass through grant with the City as the sponsor.
5. Ordinance 1554 — Zoning Text Amendment — American Capitol — 2nd Reading
Big Sky Properties, on behalf of American Capitol, requested an amendment to the
Kalispell Zoning Ordinance to allow light assembly in the B-3, Community Business,
zoning districts. Ordinance 1554 passed on first reading October 3.
6. Proclamation — Red Ribbon Week — October 23 through October 29
Plague Presentation to Duane Larson - President of the Montana League of !Qties and Towns
Atkinson moved approval of the Consent Agenda. The motion was seconded.
Kalispell City Council Minutes
October 17, 2005
Page I
There was no discussion.
The motion -carried unanimously upon roll call vote.
C. STuDENT ISSUES
None..
D. PUBLIC COMMENT
Clarice Gates, 426 7th Avenue West, read a written statement in opposition to Resolutions 5070 and
5071, the proposed TIF districts for the Old School Station property. (Statement is attached and by
this reference is made a part of the official record)
Kurt Hafferman, 1325 2nd Street West, spoke against Resolution 5072, a proposal to provide Kelsey
Subdivision with City sewer service. He stated the aquifer is very important, but the County needs to
fix the problem, not the City. He stressed Ashley Creek won't stay in good condition if the City
continues to take in effluent fron�i outside the City. Hafferman also criticized the proposals to create
TIF districts for Old School Station, stating the Council needs to work within its growth policy.
Norbert Donahue, 144 Crestline Dri ve, also spoke against Resolution 5072, and stated if sewer is
extended to Kelsey Subdivision then anyone in between can hook on without annexing or waiving
their right to protest. He said that this is not in the best interest of the City.
Andy Miller, 175 East Many Lakes Drive, owner/developer of Old School Station, spoke in favor of
Resolutions 5070 and 5071 and stated the projects will bringjob opportunities to the valley. He read
letters from Elizabeth Marchi, President of Montana West Economic Development, and Doug
Averill, Flathead Lake Lodge, in support of the TIF Districts. (Letters are attached and by this
reference are made a part of the official record)
E. REFORTSARECOMMENDATIONS AND SUBSEQUENT COUNCIL ACTION
E/L ORDINANCE 1555 —ZONING TEXT AMENDMENT —SIGN REGUIXrIONS —2ND
READING
This ordinance amends the current sign regulations. Ordinance 1555 passed on first reading, with
amendments, October 3.
Larson moved second reading of Ordinance 1555, an ordinance amending the Kalispell Zoning
Ordinance (Ordinance No. 1460), by amending Section 27.24, Sign Regulations, declaring an
effective date, and authorizing the city attorney to codify the same. The motion was seconded.
Patrick gave a staff report and explained the changes that were made at the first reading.
Hafferman stated that he will be voting against this ordinance, but he will offer an amendment
regarding large projects.
Kalispefl City Council Minutes
October 17,2005
Page 2
Hafferman moved to add Section 27.24.070 (4), "Businesses having approved entrances from
more than two collector streets and/or an arterial highway may submit a signage plan to the
City Council for their approval that exceeds the sign area allowable in.this Ordinance. A
portion of the proposed signage may be off -premise provided the business property does not
abut a third or fourth collector street or arterial highway and such off -premise signage does
not direct traffic through a residential zone." The motion was seconded.
Hafferman stated that there are projects that could meet these criteria right now, like the mall and
Hutton Ranch Plaza.
Atkinson said he feels this offers an unfair playing field for some businesses and asked the Council
to vote against it.
The amendment carried upon roll call vote with Gabriel, Hafferman, Herron, Kluesner,
Larson and Mayor Kennedy voting in favor, and Atkinson, Kenyon and Olson voting againsL
The main motion as amended carried upon roll call vote with Atkinson, Gabriel, Herron,
Kenyon, Kluesner, Larson, Olson and Mayor Kennedy voting in favor, and Hafferman voting
against
E/2. RESOLUTION 5068 —
This resolution of intent proposes to amend the Kalispell Growth Policy 2020 by including
approximately 2,560 acres in the Potential Utility Service Area for Kalispell and assigning an
appropriate land use.
Gabriel moved Resolution 50K a resolution of intention to adopt, revise, or reject a
recommended amendment to the Kalispell Growth Policy 2020. The motion was seconded.
Wilson gave a staff report.
Hafferman. read a statement opposing this resolution and asked that his comments be attached to the
minutes for the record. (Statement is attached and by this reference is made a part of the official
record)
The motion carried upon roll call vote with Atkinson, Gabriel, Kenyon, Herron, Kluesner,
Larson, Olson and Mayor Kennedy voting in favor, and Hafferman voting against.
E/3. RESOLUTION 5069 —
Jar-PIM111" - "U""E.Jt iAIVJ[rIiII"IIV
IMPROVEMENT DISTRICT 344
Resolution 5069 is a resolution of intent to amend the budget to include SID 344. A public hearing is
scheduled for November 7.
Kalispell City Council Minutes
October 17, 2005
Pag
.,e 3
Kenyon moved Resolution 5069, a resolution calling for a public hearing to amend the annual
appropriations of the City of Kalispell, Montanai as set forth in the 2005-2006 budget adopted
by the City Council. The motion was seconded.
Patrick gave a. staff report.
Hafferman stated he is in favor of public hearings.
Atkinson commented if the SID passes the Old School Station property owners will be paying for the
improvements, not the taxpayers.
The motion carried unanimously upon roll call vote.
E/4. RESOLUTION 5070 — RESOLUTION OF INTENT AND CALL FOR PUBLIC
HEARING — OLD SCHOOL STATION INDUSTRIAL TAX INCREMENT
DISTRICT
This resolution sets a public hearing for November 7 on the City's intent to create an industrial tax
increment district on the Old School Station site.
Kenyon moved Resolution 5070, a resolution of intent to establish an Industrial Tax Increment
District at Old School Station and call for public hearing under Montana Code Annotated Title 7,
Chapter 15, Part 42. The motion was seconded.
Patrick gave a staff report.
Hafferman pointed out that according to Section 3, Preliminary Approval, a vote for Resolutions
5070 and 5071 is a vote for the TIF d1stricts being created. He said he is concerned that the City
taxpayers, the schools, and all County residents will be paying for a private development if the TIF
Districts are established. Hafferman asked the City Manager if this area is considered blight, and who
will pay the costs associated with fire services since there won't be any money coming in from the
TIF districts.
Patrick responded that, the finding of blight. is not necessary for an industrial or technology TIF
district and some taxes will be coming into the City because there will be businesses on the site that
do not qualify for either district. He stated the property has already been annexed, so regardless of
whether there are TIF districts fire services will have to be provided. Patrick reminded Council that
when he was hired one of the things Council asked him to do was to find ways to bring good paying
jobs to the City, and that's what he is trying to do.
Hafferman reiterated that the Council needs to see all of the information and figures prior to making
a decision.
Olson commented we are creatingjobs and doing it the only way the City can, and it's not against the
law. He said we need to make an effort to draw good businesses to town and that's exactly what the
City Manager is trying to do.
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October 17,2005
Page 4
Mayor Kennedy added a technology TIF will not have an impact on the schools because it will not be
adding any children. She said the school district is in favor of the TIFs because they can see the long
term benefits of.better paying jobs and the future taxes the project will be generating.
Atkinson agreed, stating a TIF district is "deferred wealth!". He said we need to.be far-reaching and
far-tbinking and we have to have faith that the raw land will become something valuable.
Kluesner noted that jobs are very important and the developers should be commended, but hehas
concerns with the process. He said the Council has not been educated as to what this project is about,
and he is not ready to approve a resolution that states the Council is giving the TIF preliminary
approval.
Kenyon asked Harball what the legal implications would be if Section 3 is removed from the
resolution.
Harball said the language in the resolution is set out by statute. He said whether the specific language
is included or not, when the Council passes a resolution of intent it is giving preliminary approval
and calling for a public hearing.
Larson stated the key words in the resolution are "subject to final approval following the Hearing".
He said he will vote in favor of the resolution because the Council needs to hear from the public.
The motion carried upon roll call vote with Atkinson, Gabriel, Herron, Kenyon, Urson, Olson
and Mayor Kennedy voting in favor, and Hafferman and Kluesner voting against.
E/5. RESOLUTTON 5071 — RESQLUTION OF INTENT AND Q4JL FOR PUBLIC
--HEARING-- OLD—SCROHOL STATION TECHNOLOGY )rAX INCREMENT
DISTRICT
This resolution sets a public hearing for November 7 on the City's intent to create a technology tax
increment district on the Old School Station site.
Kenyon . moved Resolution 5071, a resolution of intent to establish a Technology Tax Increment
District at Old School Station and call Mor pubUc hearing under Montana Code. Annotated Title 7,
Chapter 15, Part 42. The motion was seconded.
There was no discussion.
The motion carried upon roll call vote with Atkinson, Gabriel, Herron, Kenyon, Iarson, Olson
and Mayor Kennedy voting in favor, and Hafferman and VJuesner voting against.
E/6. RESOLUTION 5072 — EVERGREEN WATER AND SEWER CONNECTION
KELSEY SUBDIVISION
Council will consider providing sewer utilities to Kelsey Subdivision, which is outside the City
limits.
Kalispell City Council Minutes
October 17,2005
Page 5
Larson moved Resolution 5072, a resolution regarding the development of Kelsey Subdivision
and provision of municipal sewer services thereto. The motion was seconded.
Patrick gave a staff report.
Larson stated that this has been a long and rocky road, and several plans have been discussed in the
past to extend sewer services to this subdivision. He said at this point all sides agree and the City is
protected because part of the subdivision is, within the Evergreen RSID. His opinion is that the
benefits to the aquifer will be greatly enhanced and he supports the agreement "wholeheartedly".
Hafferman read a section of the interlocal agreement that deals with waivers of protest of annexation,
stating the agreement gives the City everything it needs to provide service and the City doesn't need
to go through t1fis "rigmarole". He said this is not about protecting the aquifer, it's about annexation,
period. He said pumping the wastewater such a long distance is a disservice to the environment and
the pumping stations require money to maintain and replace. He said the Council should insist on an
extension of services plan before they vote.
Larson stated he sees nothing about annexation in the resolution.
Olson agreed, stating in his mind it is about the aquifer.
Atkinson said he cannot support the resolution because Cottonwood Estates, and others, will want
the same treatment. He stated that Evergreen is asking to utilize Kalispell's capacity to serve
someone outside of Kalispell, because they can't legally. Atkinson stated that he does not feel a
responsibility to give away the capacity that Kalispell taxpayers are paying for in order to service
these people, adding that when the area beccomes dense enough and Kalispell sewer is requested,
then we should provide it. He said providing sewer without annexation did not work in the 90s and
this is exactly what we are doing with Kelsey Subdivision. He pleaded with the Council. not to vote
for this resolution.
I -arson disagreed, stating we are not giving anything away; the developer is paying for what he is
getting.
Kluesner stated in the business world this makes a lot of sense. He said this is a great deal for the
City because it can take care of the effluent without running fire and police out there. He said he
thinks this is a win -win situation.
Gabriel stated she is still struggling with the issue because the capacity is not going to be counted
against Evergreen. She said because of that, she can't support it at this time.
Larson responded that the interlocal agreement states that any capacity outside the RSID is charged
against the City. .
Hafferman moved that Number 4 in the last Whereas be removed. (Number 4 states, "that the
.City of Kalispell and Flathead County enter into an agreement stipulating that in the event
that the City of Kalispell ever serves the Kelsey Subdivision with a separate sewer conveyance
Kalispell City Council Minutes
October 17, 2005
Page 6
system, thereby severing from the Evergreen Sewer conveyance system, the Ownership of the
seiver lines within the subdivision shall be conveyed to the City"). There was no second.
There was further discussion.
--The -motion- carried -upon rolUcall vote with Herron, IGuesner, Larson, Olson, and Mayor
Kennedy voting in favor, and Atkinson, Gabriel, Hafferman, and Kenyon voting against
F. MAYOR/COUNCIL/CITY MANAGER'S REPORTS (No Action)
Patrick thanked Chief Brodehl for helping FENIA with the Hurricane Katrina relief efforts in
Beaumont, Texas.
G. ADJOURN
The meeting was adjourned at 9:00 p.m.
ATTEST:
Theresa VVWte
City Clerk
November 7, 2005
WA
Pamela B. Kenned]V
Mayor
Kalispell City Council Minutes
October 17, 2005
Pap 7
October 17i 2005
Mayor and City Council
Clarice Gates
426 7'b. Ave W
Kalispell, MT 59901
(406) 752-1199
Resolution No 5071 and Resolution No. 5070 ask you to form TIF Districts in Old
School Station to pay for infimstructure in that subdivision. You have already created a
SED there. Since there will not be development there at the time of the TEF ceiling is set;
the only money received for schooK city and other taxing agencies is the tax that "I
come from the bare land. All the tax money received on buildings if and when the lots are
developed will be put in the TIF Funds. How do you plan to pay for the police and other
services going to that subdivision?
on OcL 14, 2005 an article in Interlake stated that the Sheriff Dept. is having problems
with high gas bills. How do you plan to pay the gas bills for the police as the gas price
increases and you keep increasing the city's boundaries and giving tax breaks to
developers?.. The "new Rosauers Store Building " tax money goes into the TIF fund none
of the taxes except on the land goes to upkeep of the city or to schools and other taxing
agencies.
Who ordered the Bond person from Denver to attend the workshop on Oct 10, 2005 to
discuss Old School Dist. School Station? staff, the mayor, Patrick, the City Manager
or the city council asked for him? WbeAgentioned, that the council wanted to
talk about whether they wanted -a TIF District; the mayor pushed it aside. Refer to
Chapter 2 Administration Article I. Elected Officials. As councilpersons you have the
right to discuss such matters with out being pushed in one direction or another.
Have you had a workshop to discuss the Amending the Growth Policy Amendment? How
does it affect the city as a whole? When did we become a public utility? How would the
expan sion of the utilities be paid? How would you pay for the new fire hall and other
services? Policies: Create incentives for business —high paying Jobs!ffl again.- Will
there be many high paying jobs in the Old School Station? Warehouses do not need many
employees and have you asked about the pay scale? And.more TIF Districts takes the
money needed to run the city, schools and other taxing agencies.
Please table Resolution No. 5068 to recommend Amendment to Kalispell Growth Policy
2020 until rese=h can be done to find ways other than TIF Districts to help business and
the Impact Fees have been set.
When expanding-.Keti-spellis-sewer-systern -with another "Pod" will it be "grandfathered"
in or must it follow the requirements of the new environmental requirements?
jobs. Now.. Inc.
An.Economic Development Organization
129 Win ShW a Kalispell, MT 59961 a Ph..406,257,7711 a 1.888.870AM n Fax 406.257.7772 a www.jobs-now.org
October 14, 2005
The Honorable Pam Kennedy
Honorable Members of the Kalispell City Council
City Hall
Kalispell, MT 59901
Dear Mayor Kennedy and Members of the Council:
Please enter into the record of tonight's meeting my strong support for the
creation of an Industrial TIF District and Technology TIF District for the Old
School Station Industrial Park. The Flathead Valley has long needed a first class
location for new and expanding business development of the kind that will be
attracted to this development. The park planned. for Old School Station will
attract high value tax base and create quality, livable wage jobs in our area
economy. - The TIF, in my opinion, has its highest and best use in this kind of
development.
It is never easy being on the leading edge of new development of this
kind. The Valley does not have a.history i of planned, thoughtful, business
park development with full services and infrastructure. The upfront costs
are very significant. The risk is greatest when you are first in a market.
Montana has very few tools to put to the task of high value business
attraction and development. The ability of cities to create TIF Districts is
one of the f6w available mechanisms -to support the -infrastructure required
for an industrial park.
One definition.of economic development is "Effective public/private
partnerships for sustained private investment." Creating Industrial and
Technology TIF Districts for the Old School Station Industrial Park is a
very positive move for economic development. There are many pieces for
effective economic development: sites and facilities are very, very
important.
I encourage you to support the creation of TIF Districts for Old School
Station.
Sincerely,
Elizabeth C. Marchi
President
Montana West Economic Development
(fka as Jobs Now, Inc.)
Kalispell City Council
rd
248, 3 . Ave. East
Kalispell, Mt. 59901 October 13, 2005
Dear Council,
This letter. is in reference to the TIF Old School Station project.
As you know with the rapid growth taking place in Montana and the valley there needs to
be a vision for expanding job opportunities in the professional high tech fields.
The Flathead Valley recently lost a thriving and upcoming tech business, Cable Tech to
the City of Great Falls. This company has employed many of our young people in their
early tech carriers and has been an inspiration to them towards furthered education in
engineering and MBA pursuits.
T :Ii��
he n acre Old School Station is ideally located for housing and business access to
-the- community,. -It is - this - type -- of corn-Dlex that will sustain the Flathead's young people
and provide the opportunities to live in their home town. The astonishingly high drop out
rate of students from area high schools is evidence we need action from community
leadership to set example in growth policy that provides hope for youdu'W carriers.
Andy Miller the developer, has a further vision for an Animation Center and taping the
resource of renowned producer Jerry Mollen, which could dramatically capture and
inspire the minds of our young people and direct them towards furthering their dreams
and job potential.
As owner and operator of one of the oldest business in the valley and whose grandparents
used the histozic Demarsville Landing near this project, I find Old School Station's
proposal consistent and appealing to the long range growth of the valley.
Si erely,
ug Averill
FkAead Laft Lodge - Box 248 - Bigkd� Montana 5WII - (W 837-4391 - FAX (406) 837.;6977
emag: fladmdWcelodgeftentmytel,net - webate: www.flatheadtakelodge.com
Bob Hafferman Is statement as read during the October 17,200S Council Meeting.
Amend Growth Policy
I am not opposed to planning as far south as Old School Station. Someday our contiguous
city limits MAY grow to that area, 1, like many residents of this city, wonder what is going on in
city government as well as the suspicion of WHY.
While I VMS aware that a possibility the Growth Policy would be amended to include more
area sou erly, L naiv y assurri I e prod6i�& -aiii- the
regulation IN the Growth Policy, but there would be public participation. It is hard fbr me to
believe that none of the County residents in the expanded area had enough interest to comment on
the proposal, either for or against. I smell another incidence like we had in 2002 with the
annexation of property along the hazardous Sunnyside Drive that was totally out of character with
the adjoining county neighbors. Public involvement would have certainly had an influence on me
on that issue. I was elected to SERVE the public, not the bureaucracy.
The Daily Inter Lake, where I must frequently turn to find out what hs gong on in City
government, had NOT A PEEP about this proposal being on the Planning Board agenda either in
the article on Monday, October 10, just before the meeting, or about the results a of a supposed
hearing in the Thursday, October 13 article or elsewhere in the news that I found. The only thing
reported was about amending the Lighting Ordinance.
I behave this council should SCHEDULE A WELL PUBLICIZED PUBLIC.HEARING
before this Council BEFORE we vote on this amendment. I want to avoid another lawsuit like the
Sunnyside Drive suit. Item 10 of Exhibit A states (read). The meeting should be held and
the Council infonned BEFORE we vote.
I also have concerns that other elements necessary for orderly growth were not addressed
in Exhibit A- Item I (read). This assumes the City ofKalispell has a water right to save this
expanded are& IT DOES NOT. Kalispell's present water right extends only to the boundary of
the EXISTING Growth Policy. Avista could make a call on their water rights or the possibility
exists of the SKC controlling all groundwater in the Flathead Basin. It is important that water
rights go through the correct chfLn-n&s-. Ille-Council should know what proms must -be met
before any of the expanded area can receive city water.
I have had calls, one yesterday from a former mayor, ftom people who have concerns
about ftirther mgmWon of our wastewater plant due to the low flows in Ashley Cre& This needs
to documented by DEQ before this Council can make any sort of informed vote.
I am also concerned what implications are involved in Itern I I (read). Shouldn't the entire
Council and PUBLIC be informed of what discussions have taken place with Lakeside Sewer?
I am also wonder about the.conmm of the Somers VFD as the city starts toerode their
tax base. We already Imow what the rest ofthe VFDs around Kalispell - Evergreen, Smith Valley,
West Valley and South Kalispell - think about our relationship with them. The south boundary of
this proposed growth area is about as close to Somers as it is our own fire department. Of course
South Kalispell VFD is much closer than both.
There may be other concerns of the public for wNch I am not aware. A responsible
government makes informed decisions. I'm certainly not sufficiently informed. I have to vote NO.
I hope this Council, if they have concerns, will ask that their and my concerns be
addressed and a public hearing be held before the Council before any vote is made to extend the
Growth Policy boundary. We should NOT be STAMPEDED into this important dedsion.
(I hereby request that these comments be appended to the minutes of the meeting. I want
to protect myselfin the event a lawsuit is initiated by aggrieved residents.)