01/22/01 City Council Minutes1722
A REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:00
P.M. MONDAY, JANUARY 22, 2001, IN THE COUNCIL CHAMBERS AT CITY HALL
IN KALISPELL, MONTANA. COUNCIL PRESIDENT DUANE LARSON PRESIDED.
COUNCIL MEMBERS JIM ATKINSON, DON COUNSELL, DALE HAARR, RANDY
KENYON, FRED LEISTIKO, DOUG SCARFF, RON VAN NATTA AND CITY MANAGER
CHRIS KUKULSKI AND CITY ATTORNEY GLEN NEIER WERE PRESENT. MAYOR
WILLIAM E. BOHARSKI WAS ABSENT.
President Larson announced that Mayor Boharski is quite ill and in
the hospital. He asked everyone for their support and prayers.
Larson called the meeting to order and led the Pledge of
Allegiance.
AGENDA APPROVAL
Haarr moved approval of the Agenda. The motion was seconded by
Scarff.
There was no discussion.
The motion carried unanimously upon vote.
CONSENT AGENDA APPROVAL
1. Council Minutes - Regular Meeting January 8, 2001
2. Approval of Claims per Payables Register - $146,256.74
3. Pledged Securities as of December 31, 2000
Scarff moved approval of the Consent Agenda. The motion was
seconded by Atkinson.
There was no discussion.
The motion carried unanimously upon vote.
HEAR THE PUBLIC
Mayre Flowers, Citizens for a Better Flathead, referring to a
recent lawsuit concerning a proposed high tech park on School
Section 36, stated CFBF has always been in support of the tech
park, but wants to make sure the State complies with the MEPA law.
She said it was only because the State "reneged on its agreement to
complete the MEPA process", that CFBF took the matter to Court.
Flowers said she has tried to work with the State over the last six
months, to no avail, and now the Judge has ruled in favor of CFBF.
She said she plans to continue taking an active role in this
project and suggested the Council get the public involved.
RESOLUTION 4596 - RESOLUTION OF INTENT - SUNNYVIEW SID
A Special Improvement District is proposed for major improvements
to Sunnyview Lane, which is the primary community access route to
Kalispell Regional Medical Center and adjacent to medical
professional offices. Extending Heritage Way is also included in
the SID.
Kukulski explained the original plan was to reconstruct Sunnyview
Lane just near the hospital with Northwest Health Care paying the
entire amount. He said the staff determined, and he agrees, that it
would be better for everyone if the entire length of Sunnyview Lane
was reconstructed, along with the extension of Heritage Way.
Kukulski said in order to fund the larger project, an SID in the
amount of $1,798,603.00 was deemed necessary.
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January 22, 2001
1723
Leistiko moved Resolution 4596, a resolution relating to Special
Improvement District No. 343; declaring it to be the intention of
the City Council to create the district for the purpose of
undertaking certain local improvements and financing the costs
thereof and incidental thereto through the issuance of special
improvement district bonds secured by the City's special
improvement district revolving fund. The motion was seconded by Van
Natta.
There was discussion.
Atkinson expressed concern for the private property owners who own
property in that area and the impact it will have on their pocket
books. He said he's also concerned with the connection from
Sunnyview Lane to Conway Drive, stating it will be located on
private property and there's nothing to prevent it from being
closed in the future. Atkinson said despite those concerns, he
feels the project will be done well and is thankful that streets
will be built in the hospital area according to city standards.
The motion carried unanimously upon roll call vote.
Kukulski explained the next three agenda items are all related. He
said Hampstead is planning to spend approximately 3.8 million
dollars in the redevelopment of 2nd Avenue West. Kukulski said the
first item of business is to sell the Plaza West Parking Lot. He
said proposals were requested with Hampstead Partners providing the
only response, which is to develop a 40-unit, low income, elderly
apartment building on the site. He further explained that Hampstead
has agreed to purchase the property for $140,0000 with funds
obtained through HOME and CDBG grants. As consideration for the
City transferring title to the property prior to the approval of
the grants, Hampstead will give the City a note bearing interest at
a rate of six percent due and payable on May 1, 2002. Kukulski said
if Hampstead does not obtain the required funds, they can demand
the City repurchase the property in exchange for cancellation of
the note. He noted the Plaza West sale is the first step in a 3.8
million dollar redevelopment project planned by Hampstead and will
provide convenient, affordable housing for senior citizens.
Kukulski stated the second item of business is the purchase of the
Keno Inn, which will eventually become replacement parking once the
Plaza West site is developed. He said the final item to consider is
a loan to Hampstead Partners in the amount of $340,000 at six
percent interest for purchasing and rehabilitating Montana Motor
Sports.
PLAZA WEST PARKING LOT SALE
In December, the City requested proposals for the development of
the Plaza West Parking Lot. Only one proposal was received.
Hampstead Partners, Inc. would like to purchase the property for
$140,000 in order to build a 40-unit, low-income elderly apartment
building.
Leistiko moved the Council authorize and direct the City Manager to
execute the Purchase Agreement and the Option Agreement with
Hampstead Partners, and to do all necessary acts for consummation
of the sale of the North 1/2 of Lot 15, and all of Lots 16 & 17,
Block 47, Kalispell. The motion was seconded by Scarff.
There was discussion.
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January 22, 2001
Page 2 of 5
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Scarff inquired as to the fiscal effects to the taxpayers.
Kukulski said the proposed independent living facility will remain
on the tax rolls once it's constructed and the property should
generate roughly forty six thousand dollars in taxes per year.
Atkinson stated he will abstain from the next three agenda items
because he works for the Agency on Aging, which is involved with
the project.
Mayre Flowers, CFBF, spoke in support of the project and suggested
hat any monies returned on the development be earmarked for the
streetscape project.
The motion carried unanimously upon vote with Atkinson abstaining,
RESOLUTION 4597 - ACQUISITION.OF THE KENO INN
Due to the sale of the Plaza West Parking Lot, the City needs to
acquire replacement parking. The owners of the Keno Inn property,
Mike and Mary McFarland, have agreed to sell the City approximately
234 lots in Block 54 for a future parking lot.
Scarff moved Resolution 4597, a resolution relating to the
acquisition of certain real property within the downtown urban
renewal area, described in Exhibit "A" from Michael T. McFarland
and Mary L. McFarland, establishing a fair market value, and
identifying the interest to be acquired. The motion was seconded
by Counsell.
Larson commented the City would purchase the property for $208,500.
There was no discussion.
The motion carried unanimously upon roll call vote with Atkinson
abstaining.
HAMPSTEAD PARTNERS LOAN
In conjunction with a three-phase redevelopment plan for downtown
Kalispell, Hampstead Partners is requesting a $340,000
redevelopment loan at 6% interest to acquire and renovate property
currently housing Montana Motor Sports and an adjacent building.
Van Natta moved the Council authorize the City Manager and Finance
Director to make a loan to Hampstead Partners, Inc. in the amount
of $340,000 for the purpose of purchasing and rehabilitating
Montana Motor Sports. The motion was seconded by Leistiko.
There was discussion.
Counsell asked why TIF funds are being used instead of UDAG monies.
Susan Moyer, Community Development Director, said the 2nd Avenue
West redevelopment project proposed by Hampstead epitomizes the
philosophy behind TIF funds. She said the project plans for urban
density in -fill, removing blighted structures and generating a new
tax base. Moyer noted TIF dollars can only be used within a TIF
district, whereas UDAG monies can be used anywhere within the City.
The motion carried unanimously upon vote with Atkinson abstaining.
FINAL PLAT - RANCHVIEW SUBDIVISION
This is a request for final approval of Ranchview Subdivision, a
ten -lot residential subdivision located on the west side of
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January 22, 2001
Page 3 of 5
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Grandview Drive just south of Commons Way in the north part of
Kalispell.
Haarr moved approval of the final plat for Ranchview Subdivision.
The motion was seconded by Scarff.
There was discussion.
The motion carried unanimously upon vote.
RESOLUTION 4598 - RESOLUTION AUTHORIZING PARTICIPATION IN THE BOARD
OF INVESTMENT LOAN PROGRAM
The City has received approval for Board of Investment loans for
the purchase of an Aerial Forestry Lift Truck for the Parks and
Recreation Department and a Mulch Master Leaf Machine for the
Public Works Department.
Atkinson moved approval of Resolution 4598, a resolution
authorizing participation in the Board of Investments of the State
of Montana Annual Adjustable Rate Tender Option Municipal Finance
Consolidation Act Bonds (Intercap Revolving Program), approving the
form and terms of the loan agreement and authorizing the execution
and delivery of documents related thereto. The motion was seconded
by Counsell.
There was no discussion.
The motion carried unanimously upon roll call vote.
ORDINANCE 1379 - SALARY ORDINANCE AMENDMENT - 1ST READING
The Kalispell Municipal Judge has not had a salary increase since
January of 1997. Judge Heidi Ulbricht has requested the current
salary of $40,000 be raised to $48,000 beginning January 1, 2002.
Van Natta moved first reading of Ordinance 1379, an ordinance
amending Ordinance No. 1353, fixing the limits of the salary and
compensation for the City Officials, Supervisors, and Employees
pursuant to Title 7, Chapter 4, Part 42, M.C.A., commencing on the
dates indicated herein, and repealing all other ordinances in
conflict therewith. The motion was seconded by Counsell.
There was discussion.
Haarr said when City Court was changed to Municipal Court, the
Council agreed to a dramatic increase in salary, despite the fact
that the duties are primarily the same. He said adding another 20
percent increase is excessive and he will vote against the motion.
Larson commented the salary increase will not take effect until
2002, which will make it four years since the salary was adjusted.
The motion carried upon roll call vote with Haarr voting against.
MAYOR/COUNCIL/CITY MANAGER'S REPORT
Kukulski said expectations are high that the industrial park
planned for School Section 36 will become a reality now that the
lawsuit is settled, and he hopes everyone can work together to make
the project a reality.
Atkinson agreed, stating Venue Tech and Binocs, a local company,
will have to move out of the area if this tech park doesn't happen.
He said it's in the best interest of everyone in the community to
see that this tech park becomes a reality.
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January 22, 2001
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Kukulski said Columbia Falls Aluminum Company has announced it will
shut down the rest of its pot lines.
Van Natta explained CFAC will shut down
and sell the
company's
quota of electricity, which will provide
enough profit
to allow
them to pay their employees for the rest of
the year. He
said it's
unfortunate that deregulation has forced
companies to make these
kind of decisions.
Kukulski added the effects of deregulation
will also show
up in the
City's budget with the higher electric rates.
ADJOURN
The meeting was adjourned at 8:20 p.m.
Boharski M. Duane Larson
Ma7cjr .Council President
ATTEST:
;2�L—
'Ti-!(eresa White
City Clerk
Approved February 5, 2001
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Kalispell City Council Minutes
January 22, 2001
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