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03/05/01 City Council Minutes1737' A REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:00 P.M. MONDAY, MARCH 5, 2001, IN THE COUNCIL CHAMBERS AT CITY HALL IN KALISPELL, MONTANA. MAYOR WILLIAM E. BOHARSKI PRESIDED. COUNCIL MEMBERS JIM ATKINSON, DON COUNSELL, DALE HAARR, RANDY KENYON, DUANE LARSON, FRED LEISTIKO, DOUG SCARFF, RON VAN NATTA AND CITY MANAGER CHRIS KUKULSKI AND CITY ATTORNEY GLEN NEIER WERE PRESENT. Mayor Boharski called the meeting to order and led the Pledge of Allegiance. AGENDA APPROVAL Haarr moved approval of the Agenda. The motion was seconded by Scarf. f . There was no discussion. The motion carried unanimously upon vote. CONSENT AGENDA APPROVAL 1. Council Minutes - Regular Meeting February 20, 2001 2. Approval of Claims per Payables Register - $144,527.45 Scarff moved approval of the Consent Agenda. The motion was seconded by Counsell. There was discussion. Larson made a correction to the Minutes, page 4, stating the word "not" should be added between "would" and "be" in his comments in paragraph eight. There was no objection. The motion carried unanimously upon vote. HEAR THE PUBLIC David Brown, 1925 Belmar, presented the Council with information on food choices and nicotine addiction. He said he will present additional information on nutrition at future meetings. CONTINUED PUBLIC HEARING - SPECIAL IMPROVEMENT DISTRICT #343 A public hearing on the proposed SID #343 was opened on February 20, 2001 and adjourned to this date. The SID is for major improvements to Sunnyview Lane and the extension of Heritage Way. Kukulski explained that since the February 20th meeting, he has been working with the property owners affected by the SID and feels an arrangement has been made which is acceptable to the majority and which has resulted in Northwest Healthcare and Medical Arts withdrawing their protests. He said the project will cost roughly 1.8 million dollars, with approximately 1.5 million being paid by the hospital and the Summit (both of which are owned by Northwest Healthcare), along with the Orthopedic Clinic. He said the $119,000 balance is shared between five parcels and in order to lower their costs, the City has agreed to pay for approximately 700 feet of asphalt from Conway Drive/Sunnyview Lane to US Highway 93. Kukulski said the City's asphalt investment of about $38,000 will reduce those assessments by around 40 percent. In addition, he said the City has also agreed to contribute $10,420 toward storm drain improvements along Sunnyview, and the hospital has agreed to pay 40 Kalispell City Council Minutes March 5, 2001 1738 percent of Wel Care's final assessment. Kukulski said despite these arrangements, Wel Care (Heritage Place and Windward Place) and another property owner, Julia Evenson, are continuing to protest. Boharski reconvened the public hearing and asked for comments from proponents and opponents. Van. Kirke Nelson, M.D., Medical Arts Building, 210 Sunnyview Lane, said Sunnyview needs to be improved to get people off the road, but because it's being utilized by so many County and City residents, the "real truth of it is" the City should be taking care of all of it. Dr. Nelson added the reality is that the City doesn't have the money and that's why Medical Arts has withdrawn its protest and agreed to participate. He asked the Council, however, to reevaluate the assessments against Julia Evenson and the Orthopedic Clinic. He said Medical Arts can pass on the assessment to its tenants, but Julia Evenson can't, who's a widow and on a pension. Dr. Nelson said he would also like to see some savings passed on to the Orthopedic Clinic and even though it may be setting a precedent, there should be a way to work with people who have no where else to pass the costs. Peter Carroll, Attorney for Wel Care Investors, presented the Council with written comments and stated the SID, in respect to the extension of Heritage Way, is not an appropriate use of an SID under the law. He said according to the law, the definition of a street "means avenues, highways, lanes, alleys, crossings or intersections, courts, and places which have been dedicated and accepted according to the law or in common and undisputed use by the public for a period of not less than 5 years". Carroll said it appears to him that this is a new road, not presently under public use, and therefore cannot be subject to an SID. He said other issues of opposition concern the fact that the SID has been stated as solely for the public to have greater and more improved access to emergency care and health care, serving everybody Countywide south of Whitefish. Carroll said despite this, the City is determined to charge just nine property owners with the costs of the improvement. He said Windward Place extended Windward Way to its business without any help and shouldn't be involved in a project which will serve, in no way, the facility. Carroll said an SID has to provide more benefit for the property owners involved in the SID than to the public at large, and that just isn't the case for Windward Place. He asked the Council to exclude Windward Place from the project, or at least, reconsider the financing. Pam Shanks, on behalf of her mother Julia Evenson, distributed handouts containing the definitions of "Public" and "Benefit" to the Council. She stated everything in the SID proposal, under the definitions, does not apply to her mother, who is 82 years old and lives on a fixed income. Shanks said her mother has no access to Sunnyview Lane, she owns her own roadway with access onto Highway 93, and she doesn't need, or want, access to Sunnyview. She said the improvements will more than double her mother's taxes and she can't afford it. Shanks said people living elsewhere will receive more benefits from the road than her mother, who can walk to the hospital. Shanks told Council members it's not fair to expect a "few to pay for the benefit of all" and asked the Council to reconsider. Boharski closed the public hearing. Kalispell City Council Minutes March 5, 2001 Page 2 of 7 1739 RESOLUTION 4602 - RESOLUTION CREATING SID #343 Leistiko moved Resolution 4602, a resolution relating to Special Improvement District No. 343; creating 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 Atkinson. There was discussion. Haarr said the reconstruction of Sunnyview Lane has been discussed for years and it's unfortunate for the people who have to pay for it. He stated sometimes the public good exceeds that of an individual and commented the Evenson family will get the money back, and more, when the property is sold. He added, however, he doesn't know where the extension to Heritage Way came in and said he wouldn't be opposed to breaking the two projects apart. Kukulski explained in order to make it attractive for the hospital to participate in the SID, the entire project was included and not just portions. He said Sunnyview Lane and Heritage Way could be separated, but then Northwest Healthcare may decide it would be cheaper to just stay with its original renovation plan for Sunnyview. Van Natta commented he believes the hospital constructed all the roads in that complex and it seems the majority of the Heritage Way extension is developing property the hospital owns. He said perhaps it could be separated from the project, removing one of the problems, and the hospital could be responsible for building the road. Kukulski questioned if the Council is inclined to approve the SID for the reconstruction of Sunnyview, but not approve it for the extension of Heritage way because of Wel Care's involvement. He said if that's the case, and the two projects can't be separated, then the hospital should be given a chance to make the decision whether to pull the SID or cover the additional assessment of Heritage Way. Kukulski said the reason the hospital was interested in participating in the first place was to allow the costs to be spread over twenty years. Leistiko asked if the suggestion is to have the Council amend the resolution, eliminating the extension of Heritage way, and if the hospital doesn't pick up those costs then allow the SID to die. Boharski said that would create a section under the SID law that doesn't exist and the Council can't force the hospital to pay those additional assessments. Leistiko said the Council wouldn't be telling the hospital it has to pay, they can always refuse the SID. Larson said the Council is concerned about Wel Care paying it's share of the investment, but hasn't even discussed Evenson's situation. He said he feels the Evensons have a more compelling argument for not participating than Wel Care and if anyone should get a break, it should be an 82-year old widow over a thriving corporation. Kalispell City Council Minutes March 5, 2001 Page 3 of 7 1740 Counsell said he would argue that Wel Care is benefitting from the SID because if there is additional access from Heritage Way, then that could provide the opportunity to add buildings or parking for Windward Place. Boharski said even though there have been some creative suggestions, the law doesn't allow the Council to act on them. He said sometimes the Council has to do certain things because they have to be done, and he feels the value on those properties are going to benefit far in excess of what they are being asked to pay. Boharski said the reality is that the hospital is still paying 1.6 million dollars on a 1.8 million dollar project and it would be ridiculous not to complete the entire road system at one time. He said a tremendous amount of work has been done, this is a good project, the City has done as much as it can do, and the only sensible decision is to pass the resolution as it stands. The motion carried unanimously upon roll call vote. COUNCIL APPROVAL - CLAREMONT SIDEWALK Council considered a request to order in concrete sidewalks under the City's sidewalk and curb assessment program on the east and west sides of Claremont Street, between Crestline Avenue and Conway Drive. Kukulski explained the project will be paid by eight property owners through assessments which are based on lineal foot frontage. He said after construction is complete, the property owners will receive an invoice for their share which they can pay in full or pay over eight years. Kukulski stated the sidewalk will cost $56,460.00, most of which will be paid by the Immanuel Lutheran Corporation. Haarr moved the Council order in the installation of sidewalks on the east and west sides of Claremont Street.' The motion was seconded by Larson. Public Comment Keith Jendra, Buffalo Hill Terrace/Immanuel Lutheran Home Executive Director, feels the sidewalks are extremely important for those residents using Claremont as a thoroughfare to the medical offices. Sonja Tetley, 40 Claremont, stated she represents 108 residents of Buffalo Hill Terrace and it's unsafe for them to walk on the street. She thanked the Council in advance for a new sidewalk. There was discussion. Boharski stated he's never been in favor of sidewalks that abut curbs because they are unsafe and unsightly, and asked if it's possible to provide a small boulevard. Public Works Project Manager Fred Zavodny, said there are some boulevards planned on the east side, but on the west side, because of the number of intrusions, the only place the sidewalk can go is abutting the curb the entire length. Scarff suggested a winding sidewalk around the obstacles. zavodney said the only way to accomplish that would be to intrude on the Northwest Professional Center's parking lot and they agreed to the sidewalk only if the parking lot was left alone. 1 1 Kalispell City Council Minutes March 5, 2001 Page 4 of 7 1741 Boharski requested that staff do everything it can to provide some kind of boulevard or buffer to make the project safer. The motion carried unanimously upon vote. ORDINANCE 1381 - ZONING TEXT AMENDMENT - VILLAGE PLAZA DEVELOPMENT - 1ST READING Village Plaza Development is requesting an amendment to the Kalispell Zoning Ordinance in the B-1, Neighborhood Buffer District, Van Natta moved Ordinance 1381, an ordinance amending Section 27.13.020 (15) of the Kalispell zoning Ordinance, (Ordinance No. 1175), by amending permitted uses in the B-1 Neighborhood Buffer District, to increase the allowable gross floor area of "retail enterprises dispensing on premise commodities or food" from 3,000 square feet of gross floor area to 4,000 square feet, and declaring an effective date. The motion was seconded by Larson. There was discussion. Atkinson asked why a zoning text amendment was requested and not a variance. Neier stated in order to gain a variance, a hardship has to be shown, and in this case it's a new building. Van Natta said the Planning Board was comfortable with the Staff's analysis and determination that a one-third increase in gross floor area isn't going to create any problems in the B-1 zones. The motion carried unanimously upon roll call vote. CONDITIONAL USE PERMIT - J'AMES AND LESLIE CLAYBORN The Clayborns are requesting a conditional use permit to allow an accessory apartment in conjunction with an art studio on property zoned B-1, Neighborhood Buffer District. Haarr moved approval of the conditional use permit for James and Leslie Clayborn subject to the attached seven conditions. The motion was seconded by Larson. There was discussion. Haarr commented this is a good use of the land with higher density close to the center of the community. The motion carried unanimously upon vote. RESOLUTION 4603 - WATER SYSTEM REVENUE BOND The City has been approved for a 4% loan to be used to finance the water line replacement which was done by MDOT in conjunction with the Idaho and Highway 93 project. Atkinson moved Resolution 4603, a resolution relating to $761,000 Water System Revenue Bond (DNRC Drinking Water Revolving Loan Program), Series 2001; authorizing the issuance and fixing the terms and conditions thereof. The motion was seconded by Counsell. There was no discussion. The motion carried unanimously upon roll call vote. Kalispell City Council Minutes March 5, 2001 Page 5 of 7 1 142 RESOLUTION 4604 - GRANT ACCEPTANCE AND BUDGET AMENDMENT A grant for an Airport Site Selection Study and Environmental Assessment has been approved by the Federal Aviation Association in the amount of $126,000, with a City match of $14,000. Scarf moved Resolution 4604, a resolution to amend the annual appropriations of the City of Kalispell, Montana, as set forth in the 2000-2001 Budget adopted by the City Council by accepting an FAA Grant for planning for Airport development. The motion was seconded by Atkinson. There was discussion. Leistiko commented there, s a good possibility the City will receive a State grant to pay half of the matching amount of $14,000. The motion carried unanimously upon roll call vote. APPOINTMENT TO THE CONRAD MANSION BOARD OF DIRECTORS Four letters were received from persons interested in an opening on the Conrad Mansion Board. Norbert Donahue, Michael Kohl, Susan Munsinger and Beverly Rauthe have all applied for the four-year appointment. Boharski recommended Norb Donahue be reappointed to the Board. Larson moved the Council accept the Mayor's recommendation and reappoint Norbert Donahue to the Conrad Mansion Board of Directors. The motion was seconded by Haarr. There was no discussion. The motion carried unanimously upon vote. APPOINTMENT TO THE PARKING COMMISSION Three persons submitted letters for an opening on the Parking Commission. Leisa Baldwin, Richard Nelson and Mark Pirrie are interested in the four-year term. Boharski recommended Leisa Baldwin be appointed to the Parking Commission. Haarr moved the Council accept the Mayors recommendation and appoint Leisa Baldwin to the Parking Commission. The motion was seconded by Leistiko. Leisa Baldwin, Ena`s Reflections, said like herself, there are several businesses that are located in the middle of a block and do not have access to parking lots. She feels she can bring a different perspective to the parking commission and asked Council members for their support. There was no discussion. The motion carried unanimously upon vote. APPOINTMENTS TO THE STREET TREE COMMISSION Two openings are available on the Street Tree Commission with Neil Deering and Steve Perrone both requesting reappointment. Boharski recommended Neil Deering and Steve Perrone be reappointed to the Street Tree Commission. Kalispell City Council Minutes March 5, 2001 Page 6 of 7 qqq 1743 Leistiko moved the Council accept the Mayor's recommendation and reappoint Neil Deering and Steve Perrone to the Street Tree Commission. The motion was seconded by Haarr. There was no discussion. The motion carried unanimously upon vote. MAYOR/COUNCIL/CITY MANAGER'S REPORTS Kukulski stated the Planned Unit Development agreement with Crosswell Developers for the Pack & Co. property should be ready by the March 19th meeting. Haarr congratulated the Police Department and the Drug Task Force on how hard everyone's been working to combat the area's methamphetamine problem. Boharski honored Bob Riley and Bud Roberts, both of whom passed away on February 26th. He said both men served on the Kalispell City Council for two terms starting in 1965 and were extremely active in other areas of the community. ADJOURN The meeting was adjourned at 9:45 p.m. 1 ATTEST: Theresa Whfte City Clerk Approved March 19, 2001 1 WM.S .Baha4i 0 Wm. E. Boharski Mayor Kalispell City Council Minutes March 5, 2001 Page 7 of 7