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08/02/01 SP City Council Minutes1809 A SPECIAL MEETING OF THE KALISPELL CITY. COUNCIL WAS HELD AT 7:00 P.M. THURSDAY, AUGUST 2, 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. (TAPE ONE - SIDE ONE) Boharski: Good evening and welcome to the Special City Council Meeting of August 2, 2001. The time is 7:00 p.m. At this point in time I would like to call the meeting to order and announce that this is a special meeting called by three members of the City Council, and I just forgot who it was. Councilman Counsell, Larson, and Leistiko, thank you. That being the case, I would like to ask the Clerk to please take the roll. Theresa. Clerk: Councilor Larson. Larson: Here. Clerk: Leistiko. Leistiko: Here. Clerk: Scarff. Scarff: Here. Clerk: Van Natta. Van Natta: Here. Clerk: Atkinson. Atkinson: Here. Clerk: Counsell. Counsell: Here. Clerk: Haarr. Haarr: Here. Clerk: Kenyon. Kenyon: Here. Clerk: Mayor Boharski. Mayor Boharski: Here. Boharski,: Motion carries, Council is in order. Since it's not on the agenda let's do it anyway. Please join me for the Pledge of Allegiance. (PLEDGE OF ALLEGIANCE) Boharski: It's so nice, we should have a crowd this big every week. At this point in time I would entertain a motion to approve the agenda. Councilman Haarr. Kalispell, City Council Minutes special Meeting - August 2, 2001 Page I of 42 Haarr: Your Honor I would move approval of the agenda as presented. Scarff: Second. Boharski: Motion made and seconded by Councilman Scarff. Is there any discussion? Seeing none, those in favor signify by saying aye. Council: Aye. Boharski: Motion carries. I guess this ... not having a forum here before us this evening, obviously the agenda that is presented for those of you in the audience and on the television who have not seen it, the sole agenda on the ... the sole item on the agenda this evening, as stated by those Council members who called the meeting is discussion of alleged misconduct of City Manager brought forth by Mayor and City Attorney. And I suppose at the risk of getting into a debate, I'm not sure that the Mayor at least accused the City Manager of misconduct, however, I think there are some issues that fairly... the purpose of this meeting tonight has been called to address, and perhaps I could suggest that one of the members who called this special meeting might have an idea of what sort of a forum they planned on presenting this this evening. Larson: Your Honor. Boharski: Councilman Larson. Larson: I would suggest that since we have one item on the agenda that we proceed in the normal fashion that we would in a regular Council meeting. I guess the thought, my thought and my intent on calling the special meeting, was to give the City Manager an opportunity to explain the allegations that have been placed against him and have been printed in the press, without him ever seeing these allegations. So I guess I would like to see the beginning of the meeting start with him being able to explain ... give us an explanation of the allegations. As far as public comment is concerned, I don't think we should have a public comment session until after the Council has had their discussion. If I may. I posted some items on the blackboard, over there, and I don't mean in any fashion to thwart conversation, or to attempt to keep the conversation to a minimum. My sole purpose for posting these guidelines is offered as an attempt to keep the meeting civil and smooth running. I don't want to thwart anyone's right to thoroughly discuss the issues. And I am going to read those. Each Council member has a copy of them in front of them and I would like to read those if I could your Honor. Boharski: Certainly. Larson: Please stay for ... with the purpose of the meeting. This meeting was called for the purpose of discussion of alleged misconduct of the City Manager brought forth by the Mayor and City Attorney. We need to stay to that purpose. That's how it was advertised and that's how it should stay. We will take no action at this meeting. We are listening and discussing. Please no character assassinations and please focus on problems and not on people or personalities and I further stated... and I would ask you all to honor the three minute rule. We could be here for three weeks if we don't, so. 1 1 1 Kalispell City Council Minutes Special Meeting - Auguet 2, 2001 Page 2 of 42 1811 These guidelines are offered in an attempt to keep the meeting civil and smooth, not to thwart anyone's right to thoroughly discuss the issues. I thank you for considering these guidelines and I hope we can stick to them, all of us. Boharski: And I presume Theresa has her bell for when that time arrives. perhaps Chris, what I would maybe suggest is that you briefly, as you did in your letter —which was kind of left on our desks here. Rather than necessarily reading it, unless you so choose. It appears that you will have both the allegations, or the concerns, or whatever you might term them in your letter as well as a response from yourself. And if you want to maybe take a chance and go ahead to go through it, maybe that would be the first thing to do, and then perhaps comments from the Council would be the appropriate way to deal with that. Kukulski: Yes. I'm comfortable with proceeding in that manner. I'll start by maybe lightening things up a little bit, and thanking you Bill, I have lost a good five or ten pounds in this last week and I now recognize and was well reminded of why I asked my wife to marry me, so thank you. I'd ask, regarding to your comments Mayor, that the audience and yourself and the members of the Council please be patient with me. I do think that it is appropriate for me to read through the issues that have been raised regarding my conduct and my response. The reason for that is I am quite frankly, just to be honest with you, a bit fearful that I might get sidetracked and we might get into all kinds of discussion and things that are outside of what the intent is tonight and outside of what I've been presented with, which is specifically these five, six or seven issues, or concerns. So, I will try to move through this quickly, and yet in such a way that everyone here can have an opportunity to listen. Attached is a copy of a bullet document which Glen Neier delivered to Maxine Lamb at the Flathead County Sheriff's Office requesting criminal investigation assistance regarding allegations levied against me. The six page document does not include a date or signature, but was forwarded to the Department of Justice on July 17th, 2001. The second document, which was signed and sent to the Department of Commerce by Mayor Boharski, mirrors the allegations outlined within the Department of Justice document. Except for the City Court and the City Attorney's Office, I acknowledge and accept that I am accountable for every decision made and dollar expended within this organization. This responsibility is something I take very seriously and with great pride. That being said, until this evening, I had not been given an opportunity to respond to these allegations in a professional manner or setting. Basic principles of due process and fairness dictate that this matter should have been handled differently. In any event the facts are as follows. I was first made aware, aware, of the allegations through someone who rumored that a letter had been sent to the Criminal Investigation Bureau, or what I will refer to in the future as the CIB, regarding my conduct as the Kalispell City Manager. This was shocking to me and in fact was verified by Arlyn Greydanus, the Chief of the CIB. Mr. Greydanus would not share the letter or it's contents with me, however, he did acknowledge that he had received the document from Maxine Lamb and understood that it originated with Kalispell City Attorney, Glen Neier. Mr. Greydanus acknowledged that he had Kalispell City Council Minutes Special Meeting - August 2, 2001 Page 3 of 42 1812 spoken to Glen Neier on July 20th, and had concluded that this appeared to be a local power issue and that nothing in the letter warranted a criminal investigation by this office. That's a paraphrase of the conversation. Mr. Greydanus assured me that the letter, that a letter stating this would be mailed within the next week, addressed to Maxine Lamb and copied to the City Attorney. With that information in mind my family and I were extremely relieved and expected that I could share the details of this unfortunate situation with the City Council upon receiving all of the documents pertaining to this accusation. Most importantly, the Bureau's unbiased review. I have learned that documents detailing the allegations were leaked to several local regional media sources. On Friday, July 27th, I was notified by Skip Dusseau of the Daily Inter Lake that Glen Neier had spent one and a half hours with him on Wednesday, July 25th, walking Skip through each item in a criminal complaint against me. Mr. Neier did not give Skip a copy of the letter, but detailed the issues that he identified as improprieties. This was five days after Glen was told by Arlyn Greydanus of the CIB that the allegations did not warrant an investigation. Later that afternoon, I was also notified by the Missoulian that an anonymous fax of the complaints was sent to them from a Kalispell Insty-Prints location. Again, basic fairness would suggest that the accused should have an opportunity to address concerns regarding his performance before hearing them from a reporter. In addition, I learned after notifying each of the eight Council members that none of them were aware of the City Attorney or the Mayor's investigation, thus eliminating their right to investigate these allegations. Late Tuesday, that being July 30th of this week in the afternoon, I was provided with a copy of the allegations only after I made a formal written request to Glen Neier's office. This was six days after Glen had detailed the allegations to the media. In responding to the specific allegations, I would like to outline my approach to successfully managing the City of Kalispell as entrusted by the City Council and its citizenry. In working with Mayor Boharski and Glen Neier over the past two years, I can readily acknowledge that although we share many of the same goals, we don't always see eye -to -eye on how to effectively and efficiently manage the City. This, I believe, is at the root of many of the allegations. My philosophy is based on the fact that if you treat employees with dignity and respect, the level of productivity increases immensely. This is accomplished by recognizing employees who perform exceptionally well,, as well as holding them accountable when they fail to perform in an acceptable manner. Though the Mayor and City Attorney point out some examples of my praising employees for work well done, they fail to mention the fact that I also undertook the unpleasant task of terminating the employment of three employees, who incidently, had not been previously or appropriately disciplined, even though their actions compromised the health and safety of the public and themselves. I mention this only because it proves that I provide praise when it is appropriate and discipline when it is necessary. The past approach of treating every employee exactly the same, no matter how good or bad their performance is, is not the way to run a 1 1 1 Kalispell City Council Minutes Special Meeting - August 2, 2001 Page 4 of 42 1813 professional organization. The liability that is created by treating employees as robots and never dealing with the termination of employees that fail to perform, simply delays and intensifies problems and the costs associated in dealing with these problems. I would also like to share my philosophy regarding meals, travel and reimbursement of other legitimate business expenses. I believe that the City should cover these costs, as needed, from time to time when an employee is working is his or her official capacity as a representative of the City. This City has a clear policy on how to handle all of the various expenses when an employee is in travel status. However, the policy fails to outline any parameters on how to handle these expenses while in town. I believe that any expenses within this category are to be utilized with the highest level of caution and should not become extravagant. Meetings should be held outside of breakfast, lunch and dinner hours whenever possible, but there are times when it is necessary and productive to conduct business during these hours. I also believe that expenses should be shared with colleagues. As an example, when I travel I often share hotel expenses, auto rentals and associated costs with other managers whom I am traveling with. This not only cuts the cost of travel in half for the City. It is difficult to respond to the bullet document allegations because it is often unclear of what I am being accused of, therefore, I will attempt to respond to the spirit of what I perceive is being alleged. The first point of which I would like to address regards a $50.00 bonus that is termed for a water department employee. The allegation reads as follows: the City Manager gave a $50.00 bonus in August of 2000 to a water department employee for coming in on overtime to repair a water line break. The employee was already receiving a $100.00 per week stipend to be on --call and carry a pager. He further received, in accordance with the union contract, time and one-half for coming into work. The City Manager said the employee claimed he was out for an anniversary dinner with his wife at the time of the call -out. The Manager ran the $50.00 through the petty cash and purchased a gift certificate. Except for the petty cash claim, the Council was never informed of the bonus. My response: A $50.00 gift certificate for dinner at the Painted Horse Grill was given to an employee of the water division. Mayor Boharski' s assertion that this gift was given after an employee complained, is absolutely false. That's a statement that the Mayor used in his letter to the Department of Commerce. This is a perfect example of when, in my opinion, you need to recognize an employee for their hard work beyond a simple pat on the back. In brief, the facts surrounding the employee in this situation appear to be accurately represented by the accusers. The employee was in the middle of a wedding anniversary dinner at a local restaurant with his wife when he was called. In addition, I would note that the water main break was of extreme severity due to its location within the downtown. The broken lines were flooding local business basements, causing thousands of dollars in damage. Within twenty-four hours of the incident, I received calls from those local businessmen and women with nothing but praise for how this employee handled the situation. For these reasons, in situations that mirror this example, I believe it is appropriate for me, as Kalispell City Manager, to Kalispell City Council Minutes Special Meeting - August 2, 2001 Page 5 of 42 1814 acknowledge these employees. In my opinion, the City, as an employer and community has received back this investment of $50.00 at least ten -fold. The second issue which was raised, again refers to, in this case, a firefighter and it's entitled in the accusation as "Firefighter's Bonus." In August of 2000, the City Manager approached the City Attorney requesting that the City Attorney sanction an increase in pay for the fire training officer to equal that of the ambulance training officer. The City Attorney offered a memo on September 22, 2000 setting forth reasons why the increase in stipend should not be granted. The CBA between the City and the Union contained a zipper clause under which neither party was obligated to negotiate during the term of the contract. Secondly, the Union had, during the negotiations, declined to raise the fire training officer's pay. Finally, the City Attorney said it would be bad policy to entertain such a stipend increase without bargaining. During the recently concluded fire negotiations the firefighters made a proposal to have the fire training officer's stipend raised and retroactively applied. However, documents supplied to the City Attorney and, at the conclusion of the negotiations, indicated that the training officer pay would be raised but not retroactive. On "blank", I assume that was supposed to be the date, the City Manager directed the Personnel Specialist to pay the fire training officer $1,215.00 as a bonus. He told the Personnel Specialist to keep the information confidential. Again, he was dealing under the table. The City Attorney was informed of the bonus granted to the fire training officer and directed a memo dated May 15, 2001 to the Manager, criticizing the actions of the Manager. The Manager responded to the memo essentially stating that he was the Manager and the City Attorney did not decide how such matters should be handled. The Manager gave Council copies of both memos. My response: The resolution to the firefighter/training officer issue was handled after months of discussion with management, the union, several Council members, three local government attorneys and several colleagues. I am confident through these discussions, that I, again, acted well within my authority. After responding to Glen Neier's May 15th 2001 letter and the Mayor's June 19th 2001 complaints, neither of them were interested in having a meaningful conversation with me regarding this issue, and yet they now refuse to put this issue behind us. When I approached Glen regarding my response to his letter he treated me in an unprofessional manner. Glen's outrage was heard by everyone near his office. The Assistant City Attorney's Office, his secretary's office, and the City Court waiting area. Glen made it crystal clear that he saw himself as the Judge of the City's activities, and that he had absolutely no interest in working with me, with myself, or any of the directors as a team. On at least three separate occasions I approached Glen in an effort to resolve this issue in a fair and equitable way. Just because there is a zipper clause in a contract doesn't mean you treat people unfairly and unequitably. Never did he make an attempt to help me in this regard. Because of this, I had to depend on outside legal counsel to guide me in this matter. I approached the Mayor in regard to his letter pertaining to this issue and he indicated that he was very busy and would give me a call if he wanted to discuss the topic. I never received a phone call from the Mayor. 11 1 Kalispell City Council Minutes Special Meeting - August 2, 2001 18.15 After my discussions with municipal attorneys and the Personnel Specialist it was evident that the City had a significant liability if it did not resolve this situation. By resolving this issue in a cooperative way with the employee and union we avoided a potential future litigation. It should be also noted that I reviewed this situation with the Department of Labor and Industry and they also believe that the issue was handled well within the law. I believe this solution saved the taxpayers of Kalispell money in both the short and long term. The next item which, quite frankly, is one of the most concerning ones to be discussed in this manner. But it has already been given to everybody so I don't think this makes any difference and that is the Squire' s matter as it is described and this is the allegation. In fall of 2000, the City had a problem with a City police officer allegedly not performing on the job. Allegations had been made that the officer had been sleeping in a patrol car while on duty. The police department investigated the matter and after consulting with the City Attorney's Office and the MMIA attorneys the City Attorney's Office conducted a subsequent investigation in preparation for a pre -disciplinary hearing under the personnel policy. During the City Attorney's investigation, it was determined that. some KPD members had slept while on duty, with the knowledge and sometimes at the direction, of supervisors. On December 7th, 2000, the City Attorney drafted a memo to the City Council and Manager discussing the findings. Recommended that the officer be disciplined for ten days for failure to patrol and failure to follow orders. The memo was subject to the Attorney/Client privilege. on December 11, 2000, members of the City Council met with the City Manager prior to workshop in groups of two and three. The City Attorney was not informed of these meetings or invited to attend. The meetings were accomplished in a fashion which intentionally avoided application of the Montana Open Meetings Law. There was no notice of the meeting. By having the meetings the Council waived the rights to the Attorney/Client privilege. The next day the City Manager approached the City Attorney and attempted to persuade the City Attorney to recommend termination of the police officer because the City Council wanted the officer fired. The City Attorney refused to change his memo. The City Manager, in his final order on the matter, increased the suspension to fifteen days. My response: The determination to give Officer ,Squires a fifteen day suspension rather than the ten days recommended by Glen Neier is one of the most interesting topics discussed in the document. This issue was discussed between myself, Glen Neier, Chief Garner, Marti Hensley (our Personnel Specialist) and several members of the City Council on numerous occasions. Never was a specific meeting held for the purpose of discussing this matter. I spoke with several Council members on the telephone and some of the Council members while driving to a meeting in Columbia Falls. Might also note that I recall that Mr. Neier spent a fair amount of time discussing this issue with Council members as well, as I would expect. This was done for two primary reasons. First to make them aware of the severity of the situation, and second to get their advice and input before making a decision. This specific matter raises the broader issue of when it's appropriate or inappropriate to inform and seek input from the Council. The City Attorney has never made me aware of any concerns regarding conversations or meetings I have had with Council members. My concern is that the Kalispell City Council Minutes Special Meeting - August 2, 20C Page 7 of 42 1816 airing of this issue may compromise the City's effort to resolve this pending litigation. Next issue is titled Employee Falsifying Time Sheet. In early December 2000 the City Attorney was informed that a City employee had falsified a time sheet. Specifically, the employee related that a City employee was absent for fifty-four hours during the October 21st through November 20th, 2000 pay period. However, the time sheet submitted by the employee did not reflect the absence. When the Personnel Specialist confronted the employee about the alleged discrepancy the employee stated that she was working at home. The City Attorney learned that the employee was in Hamilton, Montana during the time. The City Attorney dispatched a memo to the City Manager, pointed out the allegation of falsifying a time sheet. The memo has been lost. When the City Attorney later requested information on the outcome, the City Manager stated he had talked to the department head who was on vacation during the period, and the department head had indicated that the alleged offending employee was on comp time during her absence. The alleged offending employee was a member of AFSCME who are not entitled to earn comp time and no comp time notation appeared on any records of the City. Apparently the camp time was under the table. The City Attorney advised the City Manager to get to the bottom of the issue, because someone was lying. The City Manager did not communicate to the City Attorney how the matter was resolved, however, the Personnel Specialist never received any corrected time sheet. The issue was swept under the table. Attached is a copy of a written response of the Director of Parks and Recreation, which provides a complete explanation of the issue and demonstrates the frivolous nature of this allegation. If the Council would like me to, I will read that document. I believe it's about six pages and details, very specifically, the numerous times in which the Parks and Rec Director met with the City Attorney, the Personnel Specialist, the Union and myself to make sure that what was being done with flex time was appropriate under City ordinances. And so, at this point, I think because it's written in his words, I guess I'd rather wait until the end and then if you want me to read it I'm happy to. (Memo is attached and by this reference is made a part of the official record) Banquet tickets are the next issue being alleged. The City Manager attended the Doug Betters Winter Classic Banquet, the Alert Banquet and the Kid Sports Banquet with tickets purchased by an employee of the Kalispell Regional Medical Center. The value of the tickets approximated $500.00. At the time the City Manager accepted the tickets, the City was involved in a controversial and confusing special improvement district connected with the expansion of Kalispell Regional Hospital. The SID costs totaled approximately $1,618,000. The City Manager is a member of the International City Managers Association. The Code of Ethics for the organization states at Tenet 12. "Seek no favor; believe that personal aggrandizement of profit secured by confidential information or by misuse of public time is dishonest". The guidelines: "Gifts. Members should not directly or indirectly solicit or receive any gifts whether it be money, services, loan, travel, entertainment, hospitality, promise, or any other form under the following circumstances: Number 1) it could be reasonably inferred or expected that the gift was intended to influence them in the performance of their official duties or Number 2) the gift was intended to serve as a reward for an official action on their part. The City Manager violated the Code of Ethics of the ICMA by accepting tickets to the functions from a hospital employee. Kalispell City Council Minutes Special Meeting - August 2, 2001 Pgq@ A @t 0 1817 My response to that. From time to time as Kalispell City Manager, I have been asked to attend lunches... -and dinners by business owners and friends in the community. I have accepted these invitations and enjoyed developing an even stronger working relationship with numerous businesses and institutions within the community. Positive community relations is something that nearly all of the Council members praised me for during my recent evaluation. I have attended four banquets. I attended the Capitol Restoration, Doug Betters winter Classic and Kid Sports Banquets with a representative of the Kalispell Regional Medical Center. I also attended the Alert Banquet with a local banker. I did not benefit from the donations made by the purchase of these tickets to their perspective charities. on each of the four occasions I received a dinner, which, with an estimated value of $25.00. In joining ICMA (the professional association for city and county managers), I agreed to abide by the ICMA Code of Ethics and to have my conduct evaluated by my peers should there be any question that my conduct does not meet the very high standards established by ICMA. I share the values of the association and profession, and can assure you that I have conducted myself at the highest standards of professional and personal integrity. ICMA has a formal and rigorous procedure in place for conducting an ethics inquiry. A finding that a member has violated the Code of Ethics can only be made by the ICMA Executive Board following such review. Lacking such a formal review, it is improper for anyone to make a statement that meant my conduct violated the Code of Ethics. If any member of the Council or the public has a concern that my conduct was unethical I would recommend that they submit the information to ICMA and request that a formal ethics inquiry be conducted. It is important that the prohibition of unsolicited gifts be limited to circumstances related to improper influence. In de min.imus situations, such as meal checks, some modest maximum dollar value should be determined by the member as a guideline. The guideline is not intended to isolate members from normal social practices or gifts among friends, associates and relatives are appropriate for certain occasions. My acceptance of tickets to a fund raising event for non-profit associations does not violate the standard of the guideline. The purpose of this guideline is to address those circumstances where a single gift, or the overall value of a gift, is so large that the ordinary individual would perceive that it was offered solely to achieve some special benefit or consideration. That is simply not the case in this situation. I call your attention to the statement in the guideline: "It is important that the prohibition of unsolicited gifts be limited to circumstances related to improper influence". There was no improper influence in this situation. The invitations were not offered to me in an effort to influence my performance or conduct as Kalispell City Manager. The individuals who offered me the tickets have made no demands or requests from me in exchange for the invitations, nor would I expect them to. The invitations were not offered, nor were they received, as a reward for special favors. The guideline in Tenent 12 clearly prohibits those gifts that are intended to influence a manager's official actions or those that have the appearance of doing so. In all other situations, the guideline presumes that managers will exercise discretion in accepting gifts. The insinuation that the hospital benefited financially by SID 343 because I attended any of these events is outrageous. All of the components of the hospital project and SID 343 were developed Kalispell. City Council Minutes Special Meeting - August 2, 2001 Page 9 of 42 through the Planning office, Finance Department and City Attorney. The merits of the proposal were discussed and approved by the Council, not by my office. The City spent several months walking step by step through the SID process. Numerous public meetings were held with several formal actions required by the City Council and reviewed by the City Attorney and never once in that time did Glen Neier present any of these concerns to me or the Council. We're getting there. Meal policy is the next allegation. The City Finance Director sent the City Attorney a memo after noticing several claims for meals at Rotary and United Way being processed by the City Account Clerk. She also was aware that some City employees were using the City credit card and receiving petty cash for meals. The City Attorney responded with a memo advising that a previous City Manager had issued a directive that City employees were not to be reimbursed for meal expenses while attending meals within the City. The directive of the previous City manager had not been reversed. The memo was dated June 7th, 2001 and copies were given to the Manager, the Mayor and City Council on June 22nd. The City Manager issued a directive authorizing department heads to join local service clubs and use part of the department's school and travel money for dues. My response to this particular issue: the City of Kalispell does not have a policy that regulates reimbursements of legitimate expenses when dealing locally with official City business. I believe it is within my authority to alter a directive given by Interim City Manager, Al Thelen. If an employee is conducting official City business which happens to be either at breakfast, lunch or dinner, he or she should be reimbursed for the cost of that meal by the City. This is a privilege that should be exercised with great caution and has never been abused by myself or anyone on my staff. Additionally, I spoke with Glen about his memo and this issue approximately three weeks ago. At that time Glen did not indicate any urgency in resolving the issue and we both agreed that I should contact cities throughout the state in order to see how they handle the situation. I did exactly that and have notes and faxes from most of the major cities within Montana. All of the cities contacted handle local reimbursements in a similar or the same way as I have directed the staff. It has been my intent to discuss the merits of adding language dealing with this issue to the personnel manual with the Personnel Specialist and Glen Neier, which I intend to do in the immediate future. As for myself, Section 8A of my employment agreement states: "the City hereby agrees to budget and pay the travel and subsistence expenses of employee for professional and official travel, meetings and occasions adequate to continue the professional development of the employee and to adequately pursue necessary official and other functions for the City". This can be reasonably interpreted as including the reimbursement for meals while attending meetings in my capacity as the City Manager. Examples would include attending monthly Kalispell Development Corporation Meetings (they meet at breakfast), and lunches with other public and private sector leaders involved in the community. I would also like to note that in over two years of working for the City, I have been reimbursed for approximately $353.48. This averages $14.14 per month. When added to the review conducted by each of the department directors, the City expends on average less than $25.00 per month in meal expenses on all six directors and myself combined. This is clear evidence that my Kalispell City Council Minutes Special Meeting - August 2, 2001 Page 10 of 42 1819 staff and I have exercised appropriate discretion in judgment in this area. The next area has to deal with, it's entitled Millennium Madness. Kalispell Rotary Club has a program called Millennium Madness. The club sells $200.00 raffle tickets at $200.00 per ticket and raffles off $20,000.00 in prizes. The City pays for the Manager's membership and meals at Rotary, although the City has a policy which does not allow for meals in the City. The October statement from Rotary included a charge for Millennium Madness on the Manager's account. Let me repeat that. The October's statement from Rotary included a charge for Millennium Madness on the Manager's account. The Manager did not authorize payment, indicating that he was going to pay the charge. The January statement contained an opening balance of $212.50, (this is three months quarterly billing statement) indicating that the Millennium Madness charge had not been paid by the Manager. The Manager authorized payment by the City of the January statement including the Millennium Madness charge. My response: This issue is accurately described in the bullet document. This was an honest mistake on my part and I never intended to be reimbursed by the City for this raffle ticket. In fact, I never intended to purchase one of these tickets in the first place. This ticket was automatically billed to every member of the club. Last week I was made aware of the fact that one of the allegations included a payment to Rotary. Based on that information, I immediately asked the Finance Department to provide me with a copy of every invoice paid to Rotary. Based on those invoices, the mistake was noticed and I reimbursed the City within 24 hours. I take full responsibility for this honest mistake. In preparing... that concludes the issues that were listed in the bullet document, but there has been some other comments made and concerns. In preparing this response, I spent hours reviewing all of the records associated with my employment as a City Manager. In doing so, I have discovered the following two additional issues that should be discussed at this time. Fuel charges. Early in my employment with the City I asked the Finance Director how I was to handle fuel or mileage expenses when traveling outside of the area. The Personnel Manual does not address a situation where an employee receives an automobile allowance. Based on past practices, I was informed that I should fill my vehicle when traveling to meetings or official business outside of the area. With that information, I have been fueling my vehicle whenever I have traveled to an official City function or meeting outside of the valley. in other words, meetings in Helena, Missoula, Great Falls, but not in Whitefish, Columbia Falls or anywhere in what I guess I'd consider the valley. On this subject my employment agreement states: "all expenses involved in the operation of the employees personal vehicle shall be employee's only". This is because I receive an automobile allowance. However, the paragraph further states, "said employee will be compensated for all City driving on City business, outside the State of Montana, at the most current rate authorized by the State of Montana". I have never turned in a mileage slip for my official travels out of state. In 2000, I traveled to Dickinson, North Dakota. The Whitefish City Manager, we car pooled together, C Falls, Whitefish and myself and in that occasion we used an automobile from Whitefish. Total mileage on the trip was 1552 miles. It is not quite like going to a conference in the Midwest. In 2001, I drove my personal vehicle to Green River, Wyoming. Round trip 1,544 miles. May 1999 through Kalispell City Council Minutes special Meeting - August 2, 2001 Page 11 of 42 1820 July 2001, my fuel expenses, reimbursed for, total $396.43. (TAPE ONE - SIDE TWO) that I have been inaccurately Kukulski: In Green River, Wyoming, 1,544 miles at .34 per mile equals $524.96. I have to acknowledge ... I did not get a chance to verify the .34 per mile. I know it used to be .32 and heard now it is .34. If that's inaccurate, I apologize. This actually resulted in a net savings to the City of $128.53. This is an issue that requires clarification at this time. The next issue that I have listed is telephone expenses. In reviewing every Visa bill since my employment in order to evaluate meal and fuel charges, I also requested to see a copy of every cellular phone and office phone bill. After a line -by-line review of those invoices I have concluded that I owe the City $158.49. Ninety five percent of these telephone charges were made with a cellular phone when traveling and during the month of December 2000 when my daughter was born. A check has been given to the Finance Department reimbursing the City for these, for this expense. In closing, I'd like to say, in examining the manner in which this matter has been addressed by the Mayor and the City Attorney, it is critically important to note that neither the Mayor or the City Attorney have ever provided me with the courtesy of responding to the contents of the letter Glen Neier forwarded to Maxine Lamb. Nor, have they, to my knowledge, ever spoken to any of the members of the City Council regarding their concerns. Rather, they have spoken to other City employees, state and county officials and repeatedly to the media. I will let you judge whether this approach is in the best interest of the City of Kalispell. As stated above, the Mayor and City Attorney have a right to review decisions I have made in the way in which I manage City finances. It is unfortunate that the issues raised in this letter were not brought to the attention of the City Council and myself in a more forthcoming and constructive manner. There are procedures in place to address concerns of this kind. I believe that I have acted within my authority as City Manager, and that I have appropriately sought the advice and consent of the City Council, Mayor and City Attorney. I am not perfect and I know I make mistakes, but I work hard to learn from those mistakes and move on. I have enjoyed a good working relationship with every member of this City Council. In doing so, I have worked hard to include each Councilman's perspective in the decisions I make. The reality, however, is that from time to time some members of the Council vigorously disagree with the majority, and when this happens, it is impossible to make everyone happy. That is when we must agree to disagree and move on. As to the allegations filed with several state and local agencies I am pleased to learn, according to the associated press, and I maybe should give a plug for Skip, whoI guess wrote the article, that investigators and I'm quoting, ",Investigators won't pursue allegations against Kalispell City Manager". According to the article, "state and county law enforcement will not investigate allegations against the Kalispell City Manager that he misused public money saying initial reviews give no indication he violated the law". Arlyn Greydanus of the State Division of Criminal Investigation is quoted as saying, "Based on the material I was given I would not assign an agent to investigate this because I don't see any evidence that it is a criminal 1 1 1 Kalispell City Council Minutes Special Meeting - August 2, 2001 Page 12 of 42 1821 matter". The local government services bureau has also stated that an investigation is not in order. Finally, Maxine Lamb, Commander of the Sheriff's Detective Division, is quoted as saying, "I'm not sure after reviewing the material he gave me that there is any validity to the claims". It is expected that official letters to this effect will be sent to the City in the next thirty days. Now that these independent agencies have concluded their review, I can only hope that we can put this entire matter behind us, and I can get back to managing the business of the City of Kalispell. You have my assurance that this is precisely what I intend to do. Thank you. (STANDING OVATION) Boharski: I have a feeling that the City Attorney probably feels rather uncomfortable in responding to any of the things that you mention in your memo Chris. I guess I want to start off by stating a couple of things for clarification and hopefully those individuals watching on television and in the public will get a chance to hear it directly. You'll get a chance to hear it directly from me and not necessarily from reading what unfortunately has been distorted in the press about an issue, which I think is serious in nature. Which I don't think should be brushed over lightly. I want to start off by reading the first paragraph of the memo that I sent, because I guess I take offense at the suggestion that I made any sort of criminal allegations against the City Manager or anyone in the City. I did not. I spent a number of hours visiting with people over the telephone after having visited with the members of the City Council, and in fact, on June 19th sending a letter to the City Manager, all members of the City Council, and did not receive what I felt was a decent response from any of them. I received a response from one of the issues contained in the letter by Councilman Leistiko and none of the other members of this Council responded to my letter. And that is none, not one of the eight. Upon further looking into these issues, I ended up in the Assistant Finance Director's Office one day and I asked her about an allegation that I had heard. That the City Manager had charged $200.00 in raffle tickets to the City of Kalispell and had not paid them back. I asked her quietly in her office if she could confirm or show this was not the case. She turned in her chair, pulled it up on her computer screen, and in fact confirmed to me that it had not been paid back. Subsequent to that, she stated, and this is paraphrasing, what really bothers me is when the City Manager goes out of town, and charges $148.00 or $150.00 a night motels to the citizens of Kalispell with $16.00 valet charges, and bills them to the City. This struck me as odd, because it seems I would have come across something like this in the claims that we see on every other Monday night. She informed me that the reason I was not aware of these was that they were on the City Manager's credit card receipts. I asked her for a copy of the credit card receipts. Pursuant to Montana law, it is perfectly appropriate, and I believe that it is perfectly appropriate for myself or any member of this City Council, to inquire or to investigate any issue which concerns them regarding the taxpayer's money. Ladies and gentlemen that is why we are elected to sit behind this table every other Monday night. I did that, I reviewed the claims. Having done so, I contacted several auditors in the State of Montana, because frankly, and I will state it again for the record, after receiving no response on my first letter to this Council, I don't think it was unreasonable to expect that I wasn't going to receive any other response from any member of Kalispell City Council Minutes Special Meeting - August 2, 2001 Page 13 of 42 1822 this Council if I wrote them another letter. If that was an error in my judgment, so be it, but I don't think it was. I think that unfortunately, I would have received the same type of a response that I just saw in this room. The thing that concerns me is that we are all neighbors and that somehow or another this has become an issue of let's stand up and applaud the City Manager for a very nice response to some very serious concerns. Ladies and gentlemen, this is not a playground that we are playing on with all due respect. I take my oath of office very seriously. I would never have addressed this letter to the State Auditor: A; had they not suggested it, and B; had I not felt that it was appropriate. I sent nothing to the Attorney General's Office, and it's my understanding, although I have never read his letter, that the City Attorney referred this issue to the Attorney General's Office because he felt it was inappropriate for him to be investigating the City Manager. Now, I think it should be noted that in the ten years since we've had the City Manager form of government in Kalispell, nothing even akin to this, has ever come up with three previous City managers. Absolutely nothing. We think these are serious issues. As I stated in my opening paragraph, and Chris has paraphrased, mainly because he addressed Glen's issues. But he's paraphrased the issues that I brought up in my letter to the local government assistance division, the audit section, and here's what it states, it's only five lines long. It won't take us long. "Per our recent telephone conversation a number of issues have been brought to my attention by employees of the City of Kalispell which I believe need to be examined by an independent auditor. I would respectfully request that pursuant to the Statutes of the State of Montana, your division investigate the following sets of circumstances. I would also request that if you find any of these matters to be a potential violation of state law that you refer them to the appropriate investigative authority". Now, I guess I take offense when members of this Council or other candidates running for political office somehow can twist that to be politicizing an issue. I will provide a copy of this letter to anyone who requests it. To me, requesting that an independent auditor investigate possible, and I emphasize the word possible, misuse of public funds is very serious business. It is not political in nature. Now Chris, I guess, the first thing I would like to do is commend you on a couple of things. You did pay back to the City of Kalispell the $200.00 in tickets. I think that it is difficult when you find yourself in a situation where you, in the first place, could have found it, in any way, that you bill the taxpayers for $200.00 worth of raffle tickets. You state that it is an oversight, or whatever the word is in your letter, but it really bothers me that somehow this ever ended up even on the City's books. That greatly concerns me. And the fact that it was there is one of the things that made me wonder whether or not there were other things. Whether they were put there by mistake or whether they were put there on purpose. I don't know and I never made the allegation one way or another. I simply asked that they be looked into. The second is that, I guess in general as I read through your response to these things, I was reminded of a conversation that I had with someone and that was that they felt in many ways you were running the City of Kalispell similar to the way an individual would run a sole proprietorship. In a sole proprietorship you own your business and many of the things that you brought up, and I'd like to address some of them in specific 1-1 1 Kalispell City Council Minutes Special Meeting - August 2, 2001 Page 14 of 42 1823 detail, are very good and very nice things to do for people. I think that on as many occasions as you have, I have praised City employees for doing a good job. I've supported the contracts that we've signed with City employees and believe that they do the work, and that get paid for their job. The difficulty is, is that the City of Kalispell is not a sole proprietorship. The nine members of this Council, with the force of law, levy taxes on the citizens of Kalispell. We draw that money into the coffers, which are the public's coffers, the money's not mine and the money's not yours. With that money we have a responsibility to establish policies, laws, rules, ordinances, personnel handbooks and the like to ensure that we know exactly how every dollar in the City of Kalispell is expended. Because we, the nine members of this Council and anyone who is running for office against us that might succeed in their bid for office, are responsible to the taxpayers. Now let me mention a couple of specifics. You mention in here, in your response, that you think it was appropriate to reward a Public Works employee for a job well done. While I would concur that a Public Works employee who is out on an anniversary dinner with his wife, receives a call, it is a terribly unfortunate situation. Let me back up for just a second. It seems to me that if things were being managed in a different fashion, perhaps in this case by the Public Works Director and not yourself, that that employee could have the brought the fact to the Public Works Director that it was his anniversary and he could have traded off pagers with another employee. That would have resolved the situation. It never would have come up. The difficulty with it coming up, as the City Attorney pointed out to you, and as I pointed out to you, is what you have done as a result of giving that employee a $50.00 bonus is you have established a precedent in the City of Kalispell, whereby, (BOOING) Boharski: is that you have established a precedent in the City of Kalispell whereby union employees feel that they will be entitled to a bonus when they do a job well done. Now that would all be fine and good in a right to work state where they don't have unions. And I guess, first of all, I wish that you would grant as much respect to everyone on this Council as you have to the City Manager. These are very complicated issues or we would not be here. I didn't call this meeting this evening. Now the difficulty is that what you are now, you are guilty of unilateral bargaining. You have established a precedent for the next union employee that comes to the City of Kalispell, who is perhaps on a birthday party with his child, will come to the City and complain, and maybe complain is not the right word, I don't remember exactly the word I used. Now we have a difficult situation. Do you grant it or do you deny it? If his wife is in the hospital, do you grant it or you deny it? If his child is feeling ill, do you grant it or you deny it? How are you going to deal with the situation? Kukulski: Mayor, when dealing with personnel issues, very seldomly, as I'm sure that even the City Attorney can acknowledge, are issues black and white. And, my decision to reward this employee was only in, partially, to do with the fact of the timing. Quite frankly, I would even strengthen that statement a little more to say that it had little to do with the timing. What it had to do with was a very unique situation, and that is me receiving phone calls from businessmen and women, I specifically remember that because I spoke with the gal. And, Kalispell City Council Minutes Special Meeting - August 2, 2001 Page 15 of 42 1824 there were more than one of them, two, three, I didn' t document who they were, who praised this employee for the job that they had done, and how quickly, and how they handled the situation. And, in fact, was even told that during the situation that one of the business owners hired a private contractor to come in, because they were so concerned about the damage. The private contractor reversed what the City employee had done and caused further damage. So I was convinced in this situation that this employee, had by far, net savings to those taxpayers and to those business owners that far exceeded $50.00. Now you're absolutely correct, and you and I could sit here and we could argue all night long about precisely how you handle different situations, and you're absolutely correct, it is my responsibility and I've put myself in a position, I'm comfortable with that, of needing to be consistent in how I treat all employees, be it union or non -union, and when I'm inconsistent I do place the City at risk. Doing so, does place the City somewhat at risk. I fully believe, though, in not doing those types of things, the City pays far more, the taxpayers pay far more in the long run, through less productivity and attitudes and approaches that employees have to their jobs. Now, I know that you probably disagree with that. But that's. I readily acknowledge the situation that I have to face as a manager in determining those issues. Boharski: Chris, let me respond to that. I'm certainly not an attorney and the gentleman to my left is the individual who is hired by this Council to advise the City on personnel issues. You made the statement at the beginning of your response that troubles me very much. You stated that these are not black and white issues. I beg to differ. They're absolutely black and white issues, and here's what is going to happen. The next time we have a disgruntled employee who thinks that he did a good job, who got a letter of praise from someone, maybe he'll call his friends up and get a letter of praise. Maybe he's angry with the City. He will file an unfair labors practice charge with the City. His attorneys during discovery, will ask the City Attorney for documents that he has written in the past regarding these issues. He will discover, in discovery, that the City Attorney has advised against this policy. Yet the City is guilty of this policy. Our own attorney will be called to the stand to testify against us and we will be forced to give a bonus, or a reward, or whatever it is. I probably seem like the had guy, because I don't think we ought to reward an employee for a job well done. I think it would be nice if we could give cash rewards to every employee who did a good job. We'd probably be giving them out all day long. The difficulty is you've put the citizens of Kalispell in a situation where they are facing unfair labor practice charges, and I can assure you that the City Attorney advises me, and he's the individual I depend on for advice, that we will probably lose those claims. That is the difficulty, and the City Attorney advised you against doing these things, and you have ignored his advice, and you state in your letter with regards to the firemen's issue, which I'll get to in a moment, that you sought legal advice from other attorneys outside the City Attorney's office, and with the Department of Labor. There's only one difficulty. Ordinance 1166 specifically states that legal advice is given by the City Attorney and none of the attorneys that you talked to in town, and none of the attorneys that you talked to at the Department of Labor, are going to come to the City of Kalispell, unless we appropriate a whole bunch of money in retainers, to bring them here to defend your actions. Frankly Kalispell City Council Minutes Special Meeting - August 2, 2001 Page 16 of 42 1825 they will fail because they will use our own City Attorney as a witness against us. That troubles me., Kukulski: I would like. I would like for us to discuss that second issue. Because that one I would be very interested in your feedback and I think you would be very interested in mine. Boharski: Councilman Leistiko you have a question. Leistiko: I have more than a question. I've got a statement that I'd like to make. I want to thank City Manager, Chris, for coming forward here and talking about these issues. I have always thought that Chris was a man of integrity, honesty and sound judgment and prior to this unfortunate incident and even because of these allegations I haven't changed my mind. I still think he is a man of integrity, honesty and sound judgment and I accept his explanation for every one of these allegations. They're management decisions, I believe, in most cases. Maybe a little bit of bad judgment, but he took care of it. Everybody makes mistakes. The most troubling aspect of this whole matter, to me, is the way it was handled by the Mayor and the City Attorney, I've had about a week to witness the scenario and read and hear about it daily, and thought about what it means for us, and for our City. When we decided to have this special meeting, I prepared a statement that I would like to share, particularly with the rest of the Council and with Chris so I can stay on the subject. That's the reason I prepared it, because this thing gets emotional at times about who's really in charge here, and sometimes you tend to get off the subject, so I prepared this written statement which I will be glad to provide to the Clerk so that you can put in the records if you like. We live in a country and a state that takes pride in the due process protection we offer our citizens. Above all, we seem to value the sense of fair play, the right to know the charges against you and the right to answer them. The right not to have your good name smeared by rumors, innuendos, and half-truths. I guess we all know that the public arena can always be mean, but I think you should take. It should still shock our conscience when we see what has happened in this particular situation. The question I have to ask is, did the good name and reputation of a person have to be trampled in order to protect the interest of the Kalispell citizens, and I don't think so. In looking at how this all came about, I will begin with some quotes in the papers by the City Attorney, Glen Neier, and Bill Boharski, that are hard to explain and that intend to create confusion, considering this City's form of government. The City Attorney is quoted as saying that, "Chris is not the type of person to have an evil intent, to have any evil intent. He would not intentionally violate the law". Yet, criminal charges were leveled against Chris anonymously and without notice to him. The charges were given to the press for public review while the litigation of the matter was still being reviewed by outside agencies. The City Attorney gave extended interviews to the press, but never brought the matter before this Council or even informed this Council of his actions. And certainly, never sought the approval of this Council. Yet, one of those charges made was that the City Manager authorized the use of $50.00 out of petty cash funds without approval of this Council. The Mayor is quoted as saying that the majority of the Council doesn't give a dam, and he'd be right in some cases there. That is, that he, therefore, has to go over their heads, directly to the media and public opinion. He is also quoted as saying that there is a perception that the City Manager and a majority of this Council are working in concert to quote, "Take control". Take control from whom, of Kalispell, City Council Minutes Special Meeting - August 2, 2001 Page 17 of 42 1826 what? Therefore let me state unequivocally, Kalispell by the will of its people has chosen a Manager City Council form of government. The Manager is the chief executive officer of this City. He is charged with running the day-to-day operations of this City, and he has discretion to make decisions of a managerial nature which do not require a formal vote or approval of this City Council. However, he reports to this Council and is charged with carrying out the policies set by this Council through its resolutions, ordinances and other formal actions. He serves at the pleasure of this Council, and can be disciplined or removed by the majority vote of this Council. This Council is the governing body for the City of Kalispell. Its function. It functions as the legislative body in this particular form of government. The Mayor is purportedly the leader of this Council and presides over its meetings. He has one vote, the same as any other Council member. Not a tying vote, he has one vote. His duties are limited and specified in the administrative code of the City under Ordinance 1.1.66, and they are limited. He may appoint, with the consent of the Council, members of advisory boards and commissions and the City Attorney. Number two. He executes or signs all ordinances, resolutions and contracts on behalf of the City after this Council's approval. He performs ceremonial functions as Mayor of the City. Kisses the baby and cuts the ribbons. And he performs any other duties specifically designated by ordinance. And here's the kicker. Except for the above, the Mayor shall have no other executive or administrative duties, those being the responsibility of the City Manager. It is spelled out. It is plain, simple, right out of the City ordinance, and there's no wiggle room gentleman. The duties of the City Attorney are also spelled out in the same ordinance. He shall attend to matters before the City Court, the District Court and the Supreme Court of Montana, and such other courts as the Council may direct. Provided, however, the City Attorney shall have sole prosecutorial discretion to criminal matters in City Court, and upon appeal. He drafts, on behalf of the City, all contracts, ordinances and resolutions. He advises the manager and the Council on matters of duties, rights, liabilities and powers of the City, and he performs such other functions and duties as directed by this Council. Note that contrary to what is sometimes reported in the media, the City Attorney reports to this City Council, and not to the Mayor. So how is the City of Kalispell governed? Through the official and lawful actions of a majority of the elected representatives of this Council. How is it managed day to day? By the City Manager and his department heads. The law forbids interfering. And we received a memo from the Mayor less that a week ago stating that. If the City Attorney, the Mayor or an individual Council member discovers or identifies something that he thinks is improper or unlawful, what should be the proper way? What should he do? He brings it to the governing body, this City Council. What happens if the majority of the Council doesn't agree with his allegations, what recourse does that individual have? It seems simple to me. Any individual can act on their own at their own risk, but not as an authorized representative of the City of Kalispell. An individual should have an obligation to make it clear to all, that he is acting outside the scope of his official position. If he wants to put himself at risk of litigation, etc., that's his choice. But does this individual have the authority to unilaterally put the entire City at risk, without approval of the majority of this governing body? I don't think so. I have been on the losing side of issues, and one just recently, the decision to forego $200,000 very arguably owed to the City because of an arguable contract written by the City Kalispell City Council Minutes Special Meeting - August 2, 2001 Page 18 of 42 1827 Attorney and approved by a prior Council. But the majority ruled. I had to'accept the majority even though I did not agree with it. I didn't run to the press and try to file criminal charges and allegations. I did not pursue a personal agenda. These recent actions of the City Attorney and the Mayor are not my idea of how this City should be governed. I would therefore like to list several questions which I believe we must get answers to in the near future if we are to run this City effectively, smoothly and without undo risk while meeting the trust that has been placed in us by, as public officials. Therefore I want to suggest that this Council discuss, at a future workshop, whether we need to seek objective outside opinions in order to answer the following questions. Number one. Since the City Council is his client, did the City Attorney have a responsibility to bring his concerns to this Council for a decision as to how they should be handled prior to filing them with an outside agency? And did the Mayor have the same responsibility? Number two. Did their unauthorized actions, by their unauthorized actions, and when I say unauthorized I mean they did not come to this Council. Did the City Attorney and the Mayor place this City at risk of costly litigation or jeopardize its position in still pending litigation? Is it appropriate, ethical and legal for a City Attorney to discuss a pending criminal investigation with the media even before the individual was informed of the charges against him? Was that appropriate for the Mayor to do likewise? Since the City of Kalispell is the City Attorney's client, did he violate any attorney/client privileges of confidentiality by the public disclosure he made about personnel actions or pending litigation? That's what discussing. Exactly how is the City Attorney to they were just advise both the Council and the City Manager of any problems he perceives which might be a violation of policies, ordinances or laws? Does he have an obligation to do so as soon as he is aware of the problems and ask for a resolution? Or can he sit back and just wait, and just try to catch an offender. What is the proper role of the City Attorney in this situation? Number six. Should the City Attorney have asked the City Council to seek outside counsel to evaluate the charges against the City Manager? Since he might have a conflict of interest as a chief counsel for the City and its manager. And seven. Does the Council need to put money back in the budget to cover any potential liabilities the City might have because of this matter and to answer the above questions? Or can these questions be addressed by representatives of the Attorney General's office at no cost to the City? At this same workshop we could give Mr. Neier an opportunity to answer the questions for us. Then we can discuss whether we also need to ask for outside objective opinion. If we do have an outside objective source evaluate this situation and we are told that everything was handled properly and that we have nothing to worry about, then so be it. I can accept it. But I want to get reliable answers to these questions no matter what those answers might be. That would conclude my remarks, and I will listen to the rest of the arguments going on about this, but I will provide copies of these comments to anybody who wants them. Thank you. (CLAPPING) Larson: Your Honor. Kalispell City Council Minutes Special Meeting - August 2, 2001 Page 19 of 42 Boharski: With all due respect Councilman Leistiko, I don't remember the agenda saying that the purpose of this meeting was for you to politically grandstand. (LAUGHTER AND YELLING) Boharski: May we have order, may we have order please. Larson: Your Honor. Boharski: I have the floor Councilman Larson, thank you very much. Councilman Leistiko, let me address some of the things that you insinuate. Number one, I would suggest that you spend more time... Larson: Your Honor. Point of Order. I don't know that you have the right to have the floor after every statement has been made. (CLAPPING) Boharski: I have taken the floor. Chief Garner, you will either keep order in this room or we will remove the people from the room. Ann Robinson (Audience): You can't do it. Boharski: Yes I can. Pursuant to ordinance 1166... Ann Robinson (Audience): This is a public meeting. Police Chief Frank Garner: Let me address that. I am a police officer, I'm a sworn police officer and I will act on acts of criminal conduct. I won't act on anything other than criminal conduct because I can't remove myself from the position of being a police officer. Now as your neighbor, I would ask you to please show due respect for this meeting. It is the governing body for the City of Kalispell. But I'll only act at such time that I feel that it's appropriate. Based on the circumstances, if somebody engages in criminal conduct. Boharski: Now Frank, let me clarify... (CLAPPING) Boharski: let me clarify something. Obviously, as I mentioned earlier, I am not going to be a very popular person when this meeting is over with, but so be it. Under Ordinance 1166 Frank, you are also the Sergeant at Arms, and I would request that you read what your responsibilities under the Sergeant at Arms... Garner: I already have. Boharski: for this meeting are. And they are in conflict with what you just stated. Now, to finish my point. Garner: I'll act as I see appropriate based on the circumstances. Boharski: To finish my point. Leistiko: And you were saying something about my political aspirations? Boharski: We do not have a manager, Council form of government. We have a Council/manager form of government, and that is important to remember, that the Council oversees the manager and Kalispell City Council Minutes Special Meeting - August 2, 2001 Page 20 of 42 1829 this City. Very simply put, that the City Attorney, and I'm glad someone finally pointed it out, and.maybe skip you'll get it right this time, that the Mayor does not have the City Attorney working for him. I don't know how many people on this Council and how many people in this room have stated that the City Attorney works for the Mayor and the only reason he's bringing this up is because somebody is going to remove that power that the Mayor has. Even Councilman Leistiko now admits that it doesn't exist. The City Attorney works for the Council and he works for the Manager. Now, if I might... Leistiko: Could I address that? Boharski: the second issue that I would like to address, because I believe that is the purpose of this meeting is to get to the bottom of these problems, is with regard to the firefighter increase of $1,215.00, It seems to me that you have done the same thing as I previously mentioned with the $50.00 bonus. You presented to this City Council on April 23rd, if the date serves correctly, a contract for us to ratify, and we are the individuals who ratify union contracts in this City. That contract did not contain any provision for retroactive pay increase for any member of the firefighter's union. Now I guess I would like you to explain to this Council how you have not put this City in a situation where we are going to face litigation via an unfair labor practice for your unilaterally, without the consent of this Council, granting a $1,215.00 reward, as your pay slip states or retroactive pay increase, if in fact your quotes are better than mine in the newspaper, because I am certainly quoted incorrectly. I don't know if you are or not. Kukulski: Not always correctly. In response to that. I have no problem in responding to your concerns and your questions as I have outlined in my memo. Let me start by saying that I spoke. First of all let me give you a little bit of background on the situation as I understand it, because some of it was prior to my taking employment here. During the last contract negotiation, that being not the one that was approved here in the last several months but the three-year contract prior to that, the union and the City came to an arrangement of which, at the time, for all intents and purposes prior to that point there were at least two individuals in the fire department that received, for lack of a better term, a stipend for their duties that were above and beyond the standard firefighter actions. The first one, and I'm sure there were others, but which were parallel to each other, were the EMT Coordinator and the Fire Training Officer. Both of those individuals had typically, and I'm relying a little bit on Glen and on Marti who shared with me what had happened in the past, those individuals had always received an equal stipend to one another, or to the position, for those responsibilities. And I believe it might have been $50.00 a month at the previous contract, two contracts ago. This past contract negotiation, part of my arriving, the City based on I presume, sound negotiation, increased the EMT Coordinator's stipend considerably. I think it was about three times what it was previously, I'm sure for good reason. But chose to leave the Fire Training Officer at the same rate of pay. I think the spread was something like $50.00 to $180_00, where as prior to this, whenever there were adjustments they had been receiving the same stipend. And the reason for that, I would presume in the past, but what I can be assured of if I can trust my staff and I believe that I can, is that when discussing this issue with the Personnel Specialist, and I believe Glen Neier, but I will not, I don't know if I asked him point blank, but I'm certain that I asked the Personnel Specialist. Did these two individuals have Kalispell City Council Minutes Special Meeting - August 2, 2001 Page 21 of 42 1530 the same amount of responsibility and the same amount of background necessary to perform this function. And the answer was... (TAPE TWO - SIDE ONE) Kuklski: The reason that I was given is that the Union never asked for it and the reason the Union didn't fight for that stipend, and unfortunately this brings up all kinds of issues that I certainly don't think necessarily need to be discussed publicly but in order to defend myself I will, that the previous individual in that position was not performing at a capacity where either the Union wanted to fight for an increase in this stipend, nor the City was going to automatically grant it. I believe the City created a liability for itself right then and there. Because it's previous administration, be it the Manager, what role the Attorney has, chose to allow those two individuals though performing those functions that were determined to be equal to be paid in a different way. Now what had happened is the individual I believe retired, and a new individual was put into that position. And that position and that individual performed in a way in which his director expected and was satisfied with met the capacity that they had always hoped for. Immediately, I was asked to review this issue and decide and discuss, would I be willing to discuss, bringing equity back into the pay for these two positions. I went to Glen as I typically do, he is the legal advisor to me and the Council, you're absolutely correct. And I asked him. We discussed this several times as I describe in my memo. And ultimately, after frustration, I think both sides, the Union and myself, Glen said, you know what -- get the Union to make a formal request to the Fire Chief, run it through your office, bring it to me and we'll take a look at it. That is exactly what we did, and although I don't have attached documentation, I'm certain that there is documentation to that effect that both the Union and the Personnel Office has. At that time, Glen advised that it was not smart, because of, it was not smart to open a contract mid- stream. Ok, hindsight, that's what I should have done. I should have accepted his advice, but then made the management decision at that point.. you know what, I want to go to the Council and fix this. I didn't. After continued wrestling with how to solve it, it then became the idea of okay, let's do it the next time we negotiate the contract. We'll fix it then, and Glen and I had discussions to that effect. I'm not saying that he advised me that that was the way to do it, but I'm saying we had discussions to that effect. Upon negotiating the contract, again in seeking Glen's advice, he advised that it would set up a poor precedent for the City to enter into a retroactive payment for a position when the contract hadn't been expired. I agreed that that writing in the contract would draw particular attention to itself. As would, of course, amending the contract in mid -stream. However, now, it's obvious that none of that stuff, it's all out there anyways. And not that any of my actions are meant not to be played out in the public, but I think everyone in this room, including yourself, Mayor, agree that in day to day operations there are some things, particularly personnel issues, negotiations, purchase of property, other things that you don't just air out publicly. Not in trying to keep them from the public, but in the best interest of the public in making a decision. So, upon that advice I then sought, and at that point I will fully acknowledge that I did not get, and quite frankly don't know if very often I get the idea or the feeling from my City Attorney, and in essence I guess that's Kalispell City Council Minutes Special Meeting - August 2, 2001 Page 22 of 42 1831 what he is, he is my City Attorney and your City Attorney, that he was working to solve my problem in a way that was legal. In previous communities in which I worked in, it has been my experience that often times, not always, but often times an attorney will ask you what it is that you want to accomplish here. And let me see what I can do under the law, or what you can do under the law, to accomplish this. That's not the feeling I get when we work together unfortunately. So with that, I sought outside legal advice. Conversations with other City attorneys, with other managers, and what I wanted to know at that point wasn't if the City had a liability because I'm completely convinced it did have a liability. In fact, I believe the employee could have very easily filed a grievance against the City and have the City Attorney step up to the podium and the Personnel Specialist and said yeah, the duties and roster responsibilities are equal. Where would the liability be there? The question would be this wasn't handled in a proper way in managing that employee and the City would have been liable. To try to summarize it. This individual works for eighteen months in this capacity, What I discussed with this individual and what was discussed with other managers was, did I have the authority to resolve this issue outside of the contract? The response that I got was, definitely. It was well within my right to do so, again, if I believed it was in the best interest of the community. And the key two red flags that were brought to my attention were number one, I cannot go over a bottom line budget item, neither can you, without public hearings and amendings of the budget. And number two, if that payment to that employee can be perceived and proven that you're paying that employee because he or she is a anti -union, pro -management type employee then you're going to open yourself wide open to litigation in trying to break apart the union. So in summary, in a nutshell, I had agreed that the union shared responsibility because it did not request the pay be increased, the City had liability because it did not look at the situation and say, you know what, if they're doing equal jobs and equal training and that guy's not doing a good job then you get him out of there and you get someone else in there who does, that's management's responsibility, that didn't happen. Then we were opening ourselves up, and I said, ok, we share it, and you were absolutely correct, I think, in your letter. If we would have paid that employee from the time in which they took over in those duties, the amount would have been twice what it is that I paid. In theory, share the responsibility for the action or the inaction on both the union and the City' s part. Now I believe, and you bring the point, if any other employee brings this situation before us we've got a liability on our hands. And I would tell you that if any other employee brings this situation before us, we do have a liability situation on our hands, because they can file a grievance against us and litigate against us because we were not fairly and equitably compensating them. Now I solved this in an agreeable way to the employee, the union, myself and I believe firmly that that saved the taxpayer's money in both the short, because I think he could have grieved twice what he was given, and the long term because Glen will be the first to tell you that as soon as you start getting into litigation your cost escalates. That's why I made that decision and if I had to do it again the only thing I would have done different, I believe firmly in the decision that was made, hindsight, I wish that I would have insisted that, you know what Glen, I appreciate your advice, but Kalispell City Council minutes Special Meeting -- August 2, 2001 Page 23 of 42 I'm going to take this one and have the Council amend the contract mid -stream. I know that opens up some liability, some concerns, but I felt the circumstances should have warranted, and I was quite frankly frustrated with myself, that it took months, and I mean months, because it was several months I think documents will prove that, to come to a resolution on this issue because I was so concerned about making sure that it was handled in an appropriate way. Boharski: I think that you just mentioned what the appropriate response would have been. The appropriate thing that you should have done was during the union negotiations, you should have included the language in the contract and presented that contract for the Council to vote on. Then we would have no issues before the City right now. None whatsoever. Now we are just going to have to hope that nobody files an unfair labor practice against US. But if you had followed the advice of the City Attorney, as you're suggesting, if you would have included the retroactive pay increase, I can't imagine that for another $1,215.00 or $2,000.00 that the City Council would not have ratified that contract. What concerns me, as you stated, is that it was done outside the contract. Four days prior you brought a.contract to us for ratification. The language should have been included in the contract. The issue would not be before us. And, you have stated that in hindsight you would have done that. I think that's great. I think that in the future, and we can all just hope, that this issue does not come back to bite the City Council somehow in a financial form. But you are right, that would have been the appropriate way to deal with it, would have been to include it in the contract and then the issue would not be facing us. Just one further clarification, I don't know if you're aware of this, but the difference in stipend between those two individuals was negotiated in the prior fire contract. Kukulski: I'm sorry if I didn't make that clear, I thought I said a few times that it was negotiated, but my concern there, Mayor, is that just because it was negotiated doesn't mean it isn't subject to litigation. And I hate to bring this up because we've got ... have an excellent relationship going, and I commend both the guys and the management for doing that, but the police contract..the previous police contract..that we are still litigating, is proof. The previous police contracts are proof that just because you negotiate it and agree to it, doesn't mean you're not going to be subject to tens of thousands, if not hundreds of thousands of dollars, in costs if those things weren't negotiated in and I don't mean to say negotiated in a fair way, because I'm sure that they were, both parties agree. Just because they agree, doesn't mean legally it was correct. And we've got that right now in some issues where the City, unfortunately, is finding itself with a tremendous liability in granting a request that the union brought forth and the employer granted, and now it's coming back to haunt us and at the same time in the reverse fashion. So, I, and the only other clarifying thing I would say there, is that Glen did advise me not to do, not to put retro-language in the contract. Now I did not have to follow Glen's advice, and I admit and acknowledge that hindsight, I still wouldn't have followed his advice and I would have insisted that we open the contract back eighteen months ago and make a right out of a bad situation. That's what should have been done. Boharski: And that would have been fine. I think you would agree that something that is in a contract is much harder to litigate than something that is not in a contract. Kalispell City Council Minutes Special Meeting - August 2, 2001 Page 24 of 42 1833 Kukulski: Sure, absolutely. Boharski: Councilman Atkinson do you have something? Atkinson: Yes, how did you know that? Boharski: You had your hand in the air. Atkinson: Oh. I was reading your letter and you stated in the last paragraph, "in a previous memo approximately one month ago I informed the City Council members, as well as the City Manager, that I had some concerns regarding the manner in which certain issues were being dealt with in City Hall. Council members Atkinson, Leistiko, Larson, Kenyon, and Van Natta failed to respond in any fashion to the financial concerns raised in this memo". The question I have, and I wouldn't expect you to have that memo on hand at this point in time. At a later date I would request, I'm sure I don't have the memos in my files whatsoever, but what the verbiage was that requested a response from us. I would respectfully ask for a copy of that memo or if you have a recollection of what the verbiage was that asked for the response. That would be very helpful to me to understand why I did not respond. Boharski: I can tell you that the memo had no verbiage in it requesting a response, but then again neither did this memo, and for some reason everyone wants to respond to this memo as well. Atkinson: So. Boharski: I never stated that it required a response. Atkinson: You're stating then that we failed to respond in any fashion to financial concerns raised in this memo, and yet you did not ask for a response. Boharski: That is correct. Atkinson: Ok. I have a whole lot of concerns relative to the approach in the same way that Mr. Leistiko has relative to the approach that the City Attorney and yourself made in failing to inform the Council, and in Mr. Neier's situation his bosses, as to what he was doing. And I guess I would like to hear some explanation from Mr. Neier as to why he felt that he had the right as a City Attorney to request a criminal investigation without discussing that with his bosses first. Neier: I think that I had a..various City employees came to me with various problems, Mr. Atkinson, that they had perceived with regard to some of the activities that went on at City Hall. ("WE CAN'T HEAR YOU") Various City employees came to me with various concerns about certain activities at City Hall, and I did some preliminary and maybe obviously too deep of an inquiry into some of those, and then did not really have a comfortable feeling about what I was doing. So I contacted the Attorney General's Office and asked them for assistance. I think that was my legal and ethical responsibility. They informed me that there was a group at the Department of Justice, which would look at allegations that I might have, if I referred them through, and they advised me to go to the Flathead County Sheriff's Office. Kalispell City Council Minutes Special Meeting - August 2, 2001 Page 25 of 42 1834 So I went to the Flathead County Sheriff's office and gave them the documents, which I had, which were essentially notes and asked if they wanted to, that those be transmitted to the Department of Justice for review. I have not, except for one conversation with the Department of Justice, have not had anymore contact with the Department of Justice after those documents were transmitted by the County Sheriff's office and I am waiting for that response, and whatever response I get I will stand by. I might add that I, or no one I know, had any connection with the dissemination of that information. Atkinson: That doesn't really answer my question. How did you feel, why did you circumvent the Council? Neier: I didn't circumvent anybody. I think that I had a legal responsibility to ask for outside assistance when I did not actually know a proper way to handle a situation which had come to my attention. And I asked for outside help from an independent organization to assist me in looking at a problem. Atkinson: I guess I would certainly consider that, knowing that the gravity of that situation, or maybe you didn't know what would transpire from that, but if I were an employee I would certainly confer with my boss before I decided to level allegations against a... Neier: I did not level any allegations. They were factual statements, which I may, I did not, except for a few other areas, did not level any criminal allegations at all. Atkinson: Thank you. Larson: Your Honor. Boharski: Councilman Larson. Larson: I guess in quick response to Glen's claims. It seems rather odd to me that the allegations went to the Criminal Justice Bureau of the State of Montana, if you were not, in fact, leveling allegations of a criminal nature. And the other thing that strikes me as strange is that you claim that you did not leak this to the press. Well... Neier: I didn't. Larson: You're reported in the press as being the source and... Neier: After they asked me, after they had known the information, I talked to them. Larson: Before anyone else knew the information, so you leaked it, you didn't leak to the press, you poured it on their heads. (LAUGHTER) Larson: But beyond that, I would like to address the matter of. We're not here to really discuss Glen's issues, that will come up at a further meeting. Boharski: I believe your notes are focused on problems, not people. Larson: Yes they are. Boharski: Thank you. 1 1 1 Kalispell City Council Minutes Special Meeting - August 2, 2001 Page 26 of 42 1835 Larson: I guess the comments that I want to make first of all are that I'm one hundred percent satisfied with Chris's explanation of these allegations, and I don't know that you call them anything other than allegations. That's exactly what they are. And I'm one hundred percent convinced that Chris is an ethical, honest, trustworthy individual. I have known him for two years plus, and I would never think anything else. He is a professional in the truest sense of the word, and I think that has been borne out by at least four contacts with public agencies concerning these allegations. The allegations that went first of all to the County Attorney, then they went to the Chief of Detectives of Flathead County, then they went to the Criminal Justice Bureau, and then they went to the Legislative Audit Division. And all of those people bear that out that there is no criminal intent in any of the allegations, and the statement has been made by the Mayor and the City Attorney that they didn't offer any criminal allegations, they were strictly matters of ethics. Well I beg to differ, because when you file complaints of that nature you're looking for criminal intent and they didn't find i t . Just a couple of comments on Chris's explanation of the charges. In regard to the firefighter bonus. Chris conferred with several of the Council members, I being one of them, and as I remember the conversation I was told that the firefighters were asking for, I'm going to use the word retroactive pay, I don't care what you call it, that's what it was and it was making a wrong right. It was during the course of contract negotiations and you can paint it anyway you want, but that's what it was, I told Chris that I thought if he could negotiate that down to half of what the Firefighters' Union was asking for, that it would be a small price to pay to settle a contract amicably and in a timely fashion so that we could get on with other business. $1, 215.00, to me, was a small price to pay. I also told him that I felt that it was an administrative matter. He was doing the negotiations. It was for him to make that decision as long as he stayed within the parameters set by the Council. So, I guess if there is blame on that count I will accept part of it and I know that several other Council people told me the same thing. I can't speak for them. The next thing I need to comment on is the banquet tickets. The allegation that the hospital would benefit in any financial way from Chris accepting those banquet tickets, because of a controversial and confusing special improvement district being formed, is beyond belief. Why would you even make an allegation in that nature? The SID referred to, 343, is an SID which, in some form did benefit the hospital, but it benefitted the City also. We have been trying for years to get that road improved, widened and made safer. And that happened because of this SID. The other thing that I need to mention is that the SID was written by Dorsey and Whitney, an independent specialist attorney firm in Missoula that are specialists in writing special improvement districts, and it was reviewed by Glen. It was voted on by this City Council and the vote was nine to nothing including Mayor Boharski's vote. I came into that meeting that night with full intentions of wanting to amend that SID, and I was told by Mayor Boharski at the beginning of the meeting if I would not raise any objections to the SID, that he thought there was a way to keep an individual that I thought was being unfairly charged in the SID, that he knew of a way to keep them from having to pay that assessment. I looked at the individual in the audience and they shook their head yes, and I knew that the Mayor had been talking to them, so I went along and voted with the majority of the Council. The next morning I found out that the Kalispell City Council Minutes Special Meeting - August 2, 2001 Page 27 of 42 1836 Larson: I guess the comments that I want to make first of all are that I'm one hundred percent satisfied with Chris's explanation of these allegations, and I don't know that you call them anything other than allegations. That's exactly what they are. And I'm one hundred percent convinced that Chris is an ethical, honest, trustworthy individual. I have known him for two years plus, and I would never think anything else. He is a professional in the truest sense of the word, and I think that has been borne out by at least four contacts with public agencies concerning these allegations. The allegations that went first of all to the County Attorney, then they went to the Chief of Detectives of Flathead County, then they went to the Criminal Justice Bureau, and then they went to the Legislative Audit Division. And all of those people bear that out that there is no criminal intent in any of the allegations, and the statement has been made by the Mayor and the City Attorney that they didn't offer any criminal allegations, they were strictly matters of ethics. Well I beg to differ, because when you file complaints of that nature you're looking for criminal intent and they didn't find it. Just a couple of comments on Chris's explanation of the charges. In regard to the firefighter bonus. Chris conferred with several of the Council members, I being one of them, and as I remember the conversation I was told that the firefighters were asking for, I'm going to use the word retroactive pay, I don't care what you call it, that's what it was and it was making a wrong right. It was during the course of contract negotiations and you can paint it anyway you want, but that's what it was, I told Chris that I thought if he could negotiate that down to half of what the Firefighters' Union was asking for, that it would be a small price to pay to settle a contract amicably and in a timely fashion so that we could get on with other business. $1,21.5.00, to me, was a small price to pay. I also told him that I felt that it was an administrative matter. He was doing the negotiations. It was for him to make that decision as long as he stayed within the parameters set by the Council. So, I guess if there is blame on that count I will accept part of it and I know that several other Council people told me the same thing. I can't speak for them. The next thing I need to comment on is the banquet tickets. The allegation that the hospital would benefit in any financial way from Chris accepting those banquet tickets, because of a controversial and confusing special improvement district being formed, is beyond belief. Why would you even make an allegation in that nature? The SID referred to, 343, is an SID which, in some form did benefit the hospital, but it benefitted the City also. We have been trying for years to get that road improved, widened and made safer. And that happened because of this SID. The other thing that I need to mention is that the SID was written by Dorsey and Whitney, an independent specialist attorney firm in Missoula that are specialists in writing special improvement districts, and it was reviewed by Glen. It was voted on by this City Council and the vote was nine to nothing including Mayor Boharski's vote. I came into that meeting that night with full intentions of wanting to amend that SID, and I was told by Mayor Boharski at the beginning of the meeting if I would not raise any objections to the SID, that he thought there was a way to keep an individual that I thought was being unfairly charged in the SID, that he knew of a way to keep them from having to pay that assessment. I looked at the individual in the audience and they shook their head yes, and I knew that the Mayor had been talking to them, so I went along and voted with the majority of the Council. The next morning I found out that the Kalispell City Council Minutes Special Meeting - August 2, 2001 Page 27 of 58 1837 Mayor had inquired, I have to be fair, but found out that there was not a solution. The individual that I thought was being wronged did have to pay. But I voted for it, and I did nothing, and I stand by that ,note. As Mr. Leistiko said, I don't go back through the back door and try to change my vote or change what I thought, or try to get a re -vote. That's not the way this system works. So it's ludicrous to say that the hospital got a benefit from that when the accusers voted for, reviewed it and thought it was the finest thing in the world. Just one other quick thing. I don't want to plow a lot of ground that's been plowed already. Chris mentioned the telephone expenses. Throughout this Nation, private organizations, governmental agencies, public organizations, allow telephone expenses while the employee is in a travel status. Personally, I wish that Chris hadn't have repaid those, because I think that he was entitled to them, however, with the policy being unclear, and I worked for some big companies and I've dealt with some big agencies and there's always a column on the expense sheet that says telephone expenses. You are allowed to call home from wherever you're at just to keep in contact with your home. That's a common courtesy extended at many organizations. I take a little offense at the Mayor saying that these —everyone in the audience and all of us have taken these matters lightly. I guess I would refer you to the County Attorney's Office, Chief of Detectives for Flathead County, Criminal Justice Bureau, and the Legislative Audit Committee. They didn't take them lightly. They looked into them and they found no merit and basically said move on. I think that's what we should do. I spoke with Mr. Arlyn Greydanus yesterday, just to make sure what we read in the paper was correct, and it was very accurate. They have no desire to pursue these charges any further. In fact, they never assigned an investigator to them because they felt they were without merit. The Mayor says the Council didn't respond to his memo and I freely admit I did not respond to his memo because I felt the same way as these four public agencies did, there was no substance to his concern. And I have many other things to do other than responding to allegations that I see no merit whatsoever to. And knowing Chris I especially didn't see any merit to responding. The allegations haven't been brushed over lightly, and the comment was made that Chris, in a critical fashion, Chris sought independent counsel. I guess the position that he is in right now is a result of these allegations, I don't know why he wouldn't seek independent counsel. You don't know whether Glen is making the decisions or the Mayor. And that leaves this Council in a very bad position. The effectiveness of the City Attorney's Office is compromised. And to say that they acted independently in these allegations, is just simply not true. All you have to do is read the news accounts, and there's interchange of their names every other line. We aren't here to speak about the waste of City dollars and resources or compromise the labor relations on the Mayor's part, but we certainly could, and we will. But that's not the subject tonight. In conversation yesterday with the Director of the Local Studies Center in Bozemen at the University of Montana, I was informed in no uncertain terms, that what's going on here in Kalispell is outrageous, and he told me I could use that verbiage. He also told me that the Mayor has no function except what is afforded to him by the administrative rules and that he is allowed to preside over meetings and that is it, entirely. End of conversation, period. He also said that he has no executive authority to act on his own. And, so as a result of these conversations, I think that I would further suggest, in the Kalispell City Council Minutes Special Meeting - August 2, 2001 Page 28 of 58 immediate future, that this City Council diligently pursue a Code of Ethics, not for the Manager, but for the Council. And so that this travesty does not reoccur. I can't, or I would not tell the Mayor, that he cannot pursue this further. I have heard statements that he plans on pursuing this further. However, this Council needs to inform the Mayor in no uncertain terms, if he intends to pursue this further, he needs to use his own dollars and not finance it on the back of the taxpayers, and... (CLAPPING) Larson: We need to also get the message to him that he does not have the authority to act on his own, and when it comes to the expenditure of taxpayer dollars and resources. The Mayor does not have the authority to direct and control the City Attorney without majority Council approval. Those are items we need to work on outside the scope of this meeting, but they need to be done and I am sure that they will be done. Thank you. (CLAPPING) Aoharski: I have a couple of other issues. Chris, I think we were gaining some ground there, in resolving some of these things. I, the issue with regard to the tickets that you received from the hospital. I think it's been stated by a number of Council members that they find it outrageous to think that Kalispell Regional Medical Center would have somehow benefited by the fact that they gave you something in the neighborhood of, according to their attorney it was originally $500.00, but it appears that now it was $300.00 according to your memo and not $500.00. I think that clearly, that is not the issue and I don't think, that either I, or the City Attorney, ever suggested that you did. I think the concern was, and I now know that in the City Attorney's memo that he mentioned the ICMA Code of Ethics. My concern was more with the Montana Statutes under Title 45 where a $50.00 limit is specifically listed. And the concern is not that there was impropriety, the concern is that there was an appearance of impropriety and that's what the law states. And my concern is that if that type of a situation arises and someone, such as the lady that Councilman Larson mentioned, does find her way and for some reason seek an allegation against the City, that is an issue that she might bring up and say isn't this interesting. And you would certainly defend yourself by saying, of course the $500.00 is not going to buy off my vote. That's not the level that she has to meet. Under the law, the level says she has to meet under the law, is that there's an appearance of impropriety. And to follow then back to your concern is that the ICMA does provide a method for dealing with this issue. I guess I would suggest, and hope that you would concur, that what you would do in the future when getting tickets of anything perhaps over a $50.00 value, because that amount is specifically mentioned in the state law, is that you simply write a memo to the Council clarifying that you did that so it's on the table and everyone knows about it, so that if someone from the public comes up and mentions it then we can simply say look, it was signed off by the City Council, it's not a problem, and no one has anything to worry about. And then as well perhaps the City Manager... the City Attorney —would know about it and could give advice on whether or not he thinks it could create a situation where the City would end up in some sort of litigation. I don't... that's not too much to ask. Kukulski: No. I don't think it's too much to ask. I don't have any problem with that method. You know, and I'm not, unfortunately, an attorney either. So I don't know precisely all the, you know, exactly —the details per se, but it's been brought to my attention, not ... and I agree with approach that you Kalispell City Council Minutes Special. Meeting - August 2, 2001 Page 29 of 58 1839 just gave, I think that's a good approach in the future. I guess to clarify my... it is my understanding that what I received was a dinner, that is what I received. And whatever someone might place the value of that dinner we can all ... I suspect ... it was certainly worth less than $50.00, but the appearance is what is a concern and I would say that on some of these tickets, though I don't ... four times in two years isn't something that happens a lot in Kalispell, I do believe that on one, if not all of the tickets, it specifically states, which would be helpful in this regard, what an individual can write off on their tax return, because $150.00 is the donation to the organization and X dollars is the meal of which you cannot deduct because you received a meal for it. Boharski: Sometimes I think $5.00 is over charge for the rubber chicken you get. Kukulski: Yah. And I would agree that's an issue of appearance and it's always an issue that has to be handled very carefully, just in the risk there ... some managers, and I'll certainly share it with you, and some of us won't except anything, they won't except a lunch from an engineer who they're working with. But on other occasions, those types of business activities are encouraged by folks, that you should be having lunch with the President of Plum Creek and you should be out with those people. So it is definitely something that whatever the guidance of this Council is and what works for my own ethical standard, I certainly don't have a problem sharing with that, with you folks. Whatever this Council feels is what I should be doing in that regard, I don't have a problem following that path. Boharski: I guess I would suggest that you bring something to us. I'm sure that you can dig up a standard that someone uses and run it by the City Attorney to make sure. Kukulski: Sure. Boharski: And I guess lastly, the ... there are a number of issues that seem to be, that you seem to indicate that are vague, the meal policy. I know that the Council met before my time, perhaps Councilman Atkinson and Haarr and Larson could fill us in a little bit on this, but my understanding is that the Mayor at that point in time specifically, and I presume some other members of the City, both staff and elected officials, were charging a number of things to the taxpayers at ... in violation of what the Council felt was established policy. They then directed, although it seems somewhat indirectly, they directed the Interim City Manager to clarify to everyone in the City that that was in fact the policy. I think the fact that it is a policy... the proper way to resolve that issue is, rather than writing a memo and in essence reversing that, that you bring before the Council at your earliest convenience a resolution with the recommendation to change that, and we can debate whether or not we want to change that and how we want to deal with it. In the meantime, yourself and myself and the Council members, as well as the staff, abide by the current policy. Because that is the policy as adopted by this Council to the best of my understanding. The personnel handbook is in fact, passed by resolution. It would be appropriate for the Council to deal with that issue. Kukulski: I would agree fully that this Council can deal with that issue. My clarification, and the reason that this Council would deal with this issue, is because the current ordinance... Kalispell City Council Minutes Special Meeting - August 2, 2001 Page 30 of 58 • or current policy in the personnel manual ... is extremely clear. It's very clear and very well written, on any travel status situations. it is... it doesn't ... I don't believe in recalling any of it mentions an out -of -travel status situation and we should clarify that. Simple to do as I indicate in my memo per my conversation with Glen, I've gotten... well, what I've got is notes and faxes from other cities and what is surprising to me, to some degree, is that I couldn't find any that actually solidified the policy and part of the reason that was given, and I think it's a poor excuse, but that's what was given, was that when you... sometimes when you create a policy, in effect you open a door wide open for employees. As long as I fit underneath these rules then I can go to lunch. What we've done, is made it ... it's very clear, that they're to be very cautious about that due to the sensitivity that this Council and previous Council's have had. And I was very glad to see when the records were pulled, what I would believe in an organization of this size and magnitude with directors who are working in the community in the ways they are, to be expending less than $25.00 a month shows their sensitivity to that issue. That I'm pleased with. I was pleased to get those numbers, and agree with you that this Council should put in it's personnel manual how it wants to handle those local issues so that finance staff, myself, yourself, the issue deals with ... we have from time to time, haven't had one in a while, a lunch. Council meeting, bring pizza in or bring whatever. The Councils have had very differing opinions about whether you're supposed to bring your own brown sack, or whether it's reasonable to be covered, so I think that's good and I think the City Attorney would certainly agree and the Personnel Specialist that we should get that cleaned up in that regard. Boharski: Other than., perhaps, some closing comments if someone has anything else to say just for clarification. The contract that we have with you, as the City Manager, we do give you a $400.00 per month automobile allowance and the language, I believe, I don't have it in front of me, states that the City Manager, something to the effect, the City Manager is expected to use his own vehicle for all City business in state. All out of state travel will be prior authorized by the City Council. As a result of this, although this was neither in mine or the City Attorney's letter, is that your clear understanding? Rukulski: Yes. And I will tell you when I read the verbiage word for word, word by word last week ... this week...I was surprised because I didn't recognize it. It clearly says all expenses involved in the operation of the employee's personal vehicle shall be employee's only. So that does clearly state that I should not have been fueling on the fuel card. The net result of not turning in a...I also pursued in that same way the travel out of state, doesn't happen much, but in that case to Green River, also fueled up on the card which is far less at I believe at $50.00, $55.00 in fuel, cause the other cities were helping to vs. $525.00 that I could have turned in for a slip. So, the net result was a benefit to the City, but until that contract is renegotiated and changed that is precisely how we'll follow it in the future. We will follow like this, and what the Council would like me to do with the issue of the Green River trip, I will follow that direction. Boharski: Well I guess it's past history, so we're not too concerned about it now. Does anyone on the Council have any... Councilman Van Natta. Van Natta: I appreciate what everybody said here tonight. I just Kalispell City Council Minutes Special Meeting - August 2, 2001 Page 31 of 58 1841 want to say a couple of things. I'm not afflicted with henny penny syndrome, I guess like. some others might be here, namely, the Mayor and the Attorney. I don't think we're setting a precedent or setting ourselves up for any problems that we don't want to deal with in the future, by what we've done and how the firefighter and I guess the spot award were handled. I happen to believe that if somebody does something that needs to be recognized, some small recognition is appropriate. I think it fosters a productive work force, and so I have no problem with what ... how those situations were handled. The problem I have is the way I found out about what was going on. I think it's the responsibility, in this particular case, if the Mayor's got some problems, he ought to come, in a gentleman fashion and discuss them with us. If the vote is 5 to 4 or S to 1 against moving forward with it, then I... (TAPE TWO - SIDE TWO) Van Natta: I think it's a pretty cheap trick to go out and try to start stirring up the public. We've got enough of that going on in this community through other venues. So it just doesn't foster a good working relationship as far as I'm concerned. I feel I'm as easy a person to work with and discuss things with, as probably anybody you'll find. I think I'm generally fair and I'll certainly listen. And I guess what offends me here is I wasn't given that opportunity until this whole thing got blown out of the water. Most of these things are peanutsy things that a policy outfit like us ought be able to sit down and discuss and resolve. I don't think there's anything here that anyone's trying to hide or screw with the system. I guess that's what bothers me about this whole thing. I think we could have dealt with these problems very easily in a workshop setting or even a phone call, I guess. So with that, I'll turn the ... turn it back to the Mayor. Boharski: Councilman Kenyon. Kenyon: I would also like to acknowledge that Chris's responses meet with my one hundred percent satisfaction and that I hope that this doesn't discourage him in any way from continuing the management of our City and that I hope he sticks around for a very long time. And I would like to concur with Councilmen Van Natta, Larson and Leistiko, in agreeing with them that the approach that was taken in this whole thing was very poorly handled and I hope that, in the future, they can be handled in a much better manner. So, thank you Chris. (CLAPPING) Boharski: Councilman Atkinson. Atkinson: Your Honor. I would like to apologize to the City of Kalispell for the actions that went forward here these last few weeks. They were actions that should have been taken care of within a working City Council. It was petty, it was blown out of proportion and we all have to accept the responsibility for that. For that, I will offer my apologies to the citizens of Kalispell and hope that we can do better to look like a more responsible Council in the future. I have to, in saying that, not include Chris Kukulski or the staff in this. I think the staff is a wonderful staff and those citizens who have seen the work being done in the City of Kalispell and have called in to our Public Works Director, or to our City Manager, or to the Parks and Rec Director, or any of the Directors, and have said thanks for a job well done, you just don't know how that warms the cockles of the Kalispell City Ccuncil Minutes Special Meeting - August 2, 2001 Page 32 of 58 hearts of the City workers you with your tax money. that you see going on in afraid our responsibility that I played in it I want do better. Thank you. that are out there doing your job for The pettiness, ugliness, craziness, the newspapers and at City Hall, I'm of the City Council, and for any part to apologize to you. Hope that we can Boharski: Any further comments from the Council? Councilman Counsell. Counsell: Your Honor. I was one of the signers of the document that asked for the special meeting tonight. The reason behind that was that there were allegations in the newspaper, information in the newspaper, information that we as a Council did not know. We found it out through the media. It's not always the best way to find out what's going on. And, I wanted to sit with an open mind here and listen to an answer from our City Manager to those allegations, and I'm satisfied that he's answered those allegations to my satisfaction. I appreciate the job that he is doing. I was on the committee ... I was a committee chairman that pulled together the rating for the City Manager. He was rated higher than he ever was rated last year by that rating and by a majority of the Council. The majority of the Council feels he's doing a good job, I'm included. I believe he has integrity. I believe he has a spirit of cooperation and he also wants to do the right thing and has a real heart. I think it's pretty hard to find those kind of people now. I thank you very much for the explanation that you have given us. I accept it and I hope we can move on from here. (CLAPPING) Boharski: Further comments. Excuse me, any further comments from the Council? I guess I just have one statement before, and I think it would be appropriate to open the meeting for public comment after that and that is that I think some things have been accomplished tonight. I think it is terribly unfortunate that the press has made this out to be some... pictures of you and I facing each other on the front page of the newspaper is certainly not what I expected when I wrote a letter requesting for assistance in making sure that we were doing things appropriately in the City of Kalispell. I don't believe, Chris, and I would imagine that you would concur, that anywhere in my letter did I accuse you of doing anything illegally or unethically. They were questions of judgment, and perhaps and I guess in this point in time, I still think in some cases errors of judgment. I think you confirm that. You and I have reached, I think suggestions on a number of things that you bring before the City Council for our approval. I think that is a good thing. I guess, just lastly, it bothers me that although I knew, because the audit division told me, that when they received my letter, at that point in time, became a public document. I do not believe that Mr. Hayes, or anyone out of his office, disseminated that to the public. I know for a fact that I did not have any part in disseminating it to the public. If in fact it ever did get out to the public, I don' t even know that my letter did get out to the public. I know that Glen's did. But I do not know this letter ever did get out to the public. But I can assure you that if it did I had nothing to do with it. And I think that all of this has been very unfortunate. We operate a twenty seven million dollar corporation and I think that you and I have agreed that when you operate a twenty seven million dollar corporation that is paid for by the taxpayers, having rules and sticking to those rules is very important. That's why we have a professional City 1 1 1 Kalispell City Council Minutes Special Meeting - August 2, 2001 Page 33 of 58 1843 Manager. That was what the people expected ten or eleven years ago when they established it. There are some flaws in the system and I think we've acknowledged that and come up with some solutions to them. I think that's a good thing. Maybe there was another way to approach it. But in some cases the end justifies the means. And the rest of it is just water under the bridge. I think we can move forward from here and hopefully operate the City of Kalispell in an even better fashion than it's been operating before. With that, I will open the floor to any public comment. Remind any individuals that the standard policies for speaking in front of the Council are that you do have a three minute time limit and that the governing ordinance of the City of Kalispell does not permit addressing of any individual Council member on this Council, but rather comments intended for this Council as a whole. With that Mr. Goodman the floor is yours. Bill Goodman: I'm Bill Goodman in the KM Building. I'm going to deviate a little bit from what I wrote. I follow a lot of City issues. I come to a lot of City Council meetings. I was at a City Council meeting and workshop a few weeks ago. At that workshop meeting the Council recommended a little reorganization of things. Taking the City Attorney, and instead of him being underneath the City Mayor, putting him under the City Manager who like all the other department heads are. I listened to you Mr. Boharski come unglued. I listened to your words that said if you do this I will take it to the people. You did that. The very next day, you used our City Attorney to initiate your investigation of Chris Kukulski whom you saw as your competitor. This is not how democracy works. You're smiling over there. You think it's funny. Boharski: No Mr. Goodman. You're making allegations you have no right... Bill Goodman: The people of Kalispell don't pay their City Attorney to carry out personal vendettas. He's our attorney. Boharski: It is inappropriate for you to... Bill Goodman: Now I see that the Council was right in trying to make that change. Thank you. That was far seeing and shame on your Honor ... what a ... your Honor. You're playing king of the mountain again, and it's political season, and that's what you do. You've done it before. It's at great cost. We can't really let this happen again, and Chris Kukulski is a very good manager. I support him, I stand by him, he's good for downtown, he's good for Kalispell. Your job description does not include playing king of the mountain. If you want to get Kukulski, do it with your own attorney, not with ours. I hereby ask you Mayor, to resign. I want you to withdraw from the corning election also. To stay in would be without honor, your Honor. You've lost my support and you've lost the support of many downtown. These are the people who are working to better the City. You seem more interested in your personal power. I'm very close to this issue. I've been at these meetings. I ask my fellow citizens not to be fooled by what he says. He is a politician. I am here ready to accept your resignation and your apology. (CLAPPING) Bill Goodman: How much time do I have Theresa? Clerk: The bell just went off Bill. Kalispell City Council Minutes Special Meeting - August 2, 2001 Page 34 of 58 � I 1 Bill Goodman: Thank you. Ann Robinson: My name is Arai Robinson and I know I'm not supposed to say names, but I can't help it. This man has been so badly hurt and Mr. Boharski is at it again. He wanted Mr. Krepps out, now he wants to get rid of the best manager this City's seen. Don't let it happen. Boharski has his own agenda. He's the one that fought for sewer and water to Four Corners. Now that the constituents don't want that, he stated in the paper that he's against it. That's because he's running for Mayor again. He fooled the people last election. We didn't hear much from him for most of the duration of his tenure until now, when he's running again or something was to his advantage. These accusations against Mr. Kukulski should have been handled in the building. In this building without all the publicity. It's sad the Council wasn't even informed. I have a couple of questions I'd like to ask and see if they can answer them. Who paid for Boharski's trip to Helena when he went and spoke for a bill through Paul Sliter that the citizens didn't want? He did it behind everyone's back, even the City Council. No one would have known, but it so happens we have a friend in the Capitol that called us and told us what Boharski said. And he quoted, and this is a quote, "It was essential that we have this legislation to allow utilities to outlying areas". Also, I don't know if you people know, but who paid the $879.00 that was paid so Boharski's name would be in the book of Who's Who? We also need a new City Attorney. He's made a lot of mistakes, which he has admitted at many Council meetings. Especially the real estate south of the town when it was sold. We're stuck with that sale. Let's not have anymore like that. Between the two of them they're damaging our City's reputation. The Inter Lake is on the net and my daughter called from Hawaii and wanted to know why Boharski is doing this. She said it looks like we're a western hick town, and we're not. We've lost much more than what Mr. Kukulski is being accused of, especially south of town. This is a terrible underhanded maneuver to make Boharski look good, it's political. We've gone round and round before, but now we're going to fight for Mr. Kukulski and his image in this City. Even you, as the Council, many of you said this was not correct. Why wasn't this brought up in private before the evaluation of our City Manager? Why? Because Boharski wants the publicity from now to election time, and that's not even fair to the other candidates. He doesn't deserve to be Mayor of our fine City. He doesn't represent us when he's asked to. one of the largest events in this valley was held, he was asked to come, and he was a no-show. And I was there and saw this. It's a shame and our people should be embarrassed by our Mayor for the bad publicity he's put Mr. Kukulski through, and his wonderful wife and baby. Keep in mind all the trouble a couple of years ago when our police worked for a year without a contract. That hasn't been settled yet. This year Mr. Kukulski handled the negotiations and it was settled, this one was settled in three days. Mr. Kukulski, you have our utmost respect and appreciation. For what you've done for our City and the way you represent our residents. It's a shame that you've had to work under these terrible conditions. We're not through. If Boharski wants to sling accusations, we can meet them with many he doesn't even know we know. (CLAPPING) Boharski: Councilman Haarr. Haarx: Your Honor. I think that the agenda item has been sufficiently addressed for my purposes and if any of you that are speaking wish to relate what you have to say to me, I would like to be excused. Excuse me. Kalispell City Council Minutes Special Meeting - August 2, 2001 Page 35 of 58 1845 Boharski: You're excused. (HAARR LEFT) I imagine when Chris Kukulski took the job as the City Manager... Clerk: Excuse me sir, could I get your name and address please? Ben Long: Oh I'm sorry, ch sure, my r 920 6th Ave. East in Kalispell, and I took this job as City Manager he Kalispell, Montana in the twenty -firs he might be thinking that he moved to seventeenth century. The allegations completely lacking in common sense. give them too much credence. Ther, review a staff member's work and that report, their annual evaluation. Tha- brought up. To bring this up under t: political. Chris Kukulski is clearl- ime is Ben Long. I live at imagine when, Chris Kukulski thought he was moving to century. Today, I imagine Salem, Massachusetts in the that we heard tonight were To call them petty is to 's a time and a place to `s during the work progress 's when it should have been ese circumstances is purely the victim of a smear and clearly that smear is politically motivated to get one man publicity. I hope that the City Council keeps all this in mind when the City Attorney's job performance is reviewed next year. As for some statements that the Mayor made earlier, that we can consider this all "water under the bridge", I would like to remind everybody that the water doesn't flow under the bridge until election day. Thank you. (CLAPPING) Mary Jane Fox: My name is Mary Jane Fox, 433 Main, and I wanted to thank all of tonight, an extra you night Councilmen for being here and working and putting in all these hours. And I want to commend, almost everyone here, for the respect I heard from most of you with each other in listening to opinions. I am particularly naming... I'm going to butcher your name ... Les teek.. Atkinson: Leistiko. Mary Jane Fox: I appreciate the time you took to prepare your statement, and I really found your questions provocative, and I want to encourage the Council to please, please look into all of those questions that he raised and I would love a copy of that prepared statement that you did. I think those questions really need to be further addressed here. I'm sorry that we had to be here and I would like to say that the only rude comment that I actually heard was after Councilman Leistiko made his comments. I don't think that's very professional, and I also don't think that people clapping when they hear things that they like is a crime. (CLAPPING) Harry Amend: My name is Harry Amend, my address is 634 South Foys Lake Drive. I'm here to say that I have confidence in the majority opinion of the City Council here in Kalispell. I have had the pleasure of working with Chris Kukulski for going on three years now. It is my opinion that he's a people builder and that he's a bridge builder. I think he's a very, very constructive and progressive community leader. He's intelligent, and in my opinion, has very good instincts as a personnel manager and as a leader in our community. He's courageous, above all he has integrity and he's looking forward for the best interest of our community and I have complete confidence in Chris Kukulski's leadership as our City Manager. Thank you. Kalispell City Council Minutes Special Meeting - August 2, 2001 Page 36 of Be (CLAPPING) Ruth Ackroyd: Mayor, City Councilmen. I served as President of Kalispell Day Break Rotary last year. I'm Ruth Ackroyd. Clerk: Your name and address please. Ruth Ackroyd: I'm Ruth Ackroyd. I reside at 273 North Many Lakes Drive, however, I work in Kalispell at Flathead Valley Community College (777 Grandview Drive). As past president of Kalispell Day Break Rotary, I feel very much a part of this matter. It's very difficult to be here and have heard the things that I heard tonight. But, I want to say the utmost respect I have for my fellow Rotarian, Chris Kukulski, I know there are a number of Rotarians, I'm sorry that Mr. Haarr left. But basically, how would you describe the organization called Rotary? There are so many characteristics of a rotary club as well as the activities of multi -million Rotarians worldwide. They are the features of service, international, fellowship. We have classifications of vocations, development of goodwill and world understanding and emphasis, and I underline the emphasis, on high ethical standards. I represent the fifty --five members of Kalispell Day Break Rotary. We are proud to support our fellow member who we feel demonstrates ethical standards and concern for people in our community_ Rotary is an organization of business and professional persons united worldwide who provide humanitarian service, and indeed, high ethical standards in all vocations. I want to applaud our City Manager for demonstrating those qualities. I'm proud he's a fellow Rotarian. Thank you. (CLAPPING) Diane Conradi: My name is Diane Conradi. I'm with Citizens for a Better Flathead at 35 4th Street West in Kalispell. I want to emphasize that the reason that we have ethics, and that really seems to be the issue here, not criminal charges, not civil charges, criminal allegations, but ethical complaints. The reason that we have ethics is because they're fair, because they embody integrity and honesty. That's why we have ethics codes. Attorneys have ethics codes as well. And attorney's ethics codes prevent an attorney from divulging confidential information of a client and, according to the administrative code, the City Manager is in fact, a client of the Attorney... of the ... the City Manager is a client of the City Attorney. And you also can't take a position that is adverse to your client. I'm troubled by what I heard here tonight and I'm troubled by what I read in the papers about the way that this issue with Mr. Kukulski was handled. I'm troubled most of all because it's not fair. It's not just and it lacks integrity. I would applaud and encourage the City to move forward and take this opportunity to look over your administrative code, as you started to do, and look at it with a close eye toward ethics and ethical conduct of Council members, all Council members, to delegate the rules more clearly of the City Attorney, the Mayor, the Council and the City Manager, and have a document that you can fall back on when something like this happens. If there's not a problem, it's okay, but when there is a problem you see where the holes are, and I encourage you to take the time to find out where those holes are and to get the help that you need to patch those holes. When you're looking at the code you should adopt very specific ...a very specific code of ethics and there are plenty of local governments here in this valley that do have samples to draw from. You should... the way that you handle these kinds of personnel issues is you adopt policies. That's what the Council does. They're policy makers. The City Manager implements the policies. If you have a problem with the way things are done, Kalispell City Council Minutes Special Meeting August 2, 2001 Page 37 of A91 1847 the way to do it is to adopt a policy and I encourage you all to do that. Not to micro -manage, but to adopt a policy. And finally, I know at the fifth Monday meeting, Councilman Leistiko and Council members from Columbia Falls and Whitefish suggested that you bring trainers down here to train Council members and the community about ethics, and what it means to have a conflict of interest and what it means to act honorably and fairly in representing your... the people that voted for you. I would suggest that if the "Who's Who" subscription comes up, that the money might be better spent on training rather than renewing the subscription. (CLAPPING) Art Bitton: My name is Art Bitton, I'm a retired farmer. And I don't know, but there's a Mayor who's picture should be up there, Mayor McDowell. Does anybody else here remember him? He was in trouble like this City Manager, and I think the City Council and everybody here working on behalf of the public should harmonize themselves and get things a going. And not just your $50.00 bickering, that when Mayor McDowell was Mayor it was $5.00, equals $50.00 now. So, that's about how much inflation we have, so I think we should harmonize ourselves and don't be like three or four ten year old kids, playing marbles and deciding who's going to shoot the wrong marble out the v. That's all I have to say. (CLAPPING) M.E.K Johnson: I'm M.E.K. Johnson, 539 Third Street East. I told Fred this evening that I wasn't going to say anything. However, I think there are a couple of things that are worth mentioning. First of all, I'm gratified at the response here of all the supporters of Mr. Kukulski. When he was appointed City Manager, I took an opportunity to call him and warn him about what he was getting into. I called him in Michigan. He was home having lunch. I don't know how it happened, but the connections were made. Mr. Kukulski told me he thought he could get along with anybody. He was a uniter instead of a divider. And, I think that's what we have here for our City Manager. And, although I had to warn him, and it has come to pass, I think he will survive this and remain our effective City Manager. Thank you. (CLAPPING) Tracy Walsh: My name is Tracy Walsh and I live at 30 5th Avenue East and I live in a neighborhood that has tremendous trees, beautiful streets, rough sidewalks and tremendous neighbors. our neighbors take pride in one another and we look out for one another and one of our neighbors is Chris Kukulski. It's sad and it bothers me to see Chris sitting up here when he shouldn't be here. He has tremendous values, he has tremendous morals, and I think it's not only an attack against Chris, but I think that we hurt his family and you hurt the neighbors on Fifth Avenue East. And I think that the wrong people, or the wrong person, is sitting at that desk being ripped. And I guess what goes around comes around. I hope you remember that. I hope that my. ..Dale Haarr, who's also a representative in Ward Two —and I'm glad at least one stuck here... Leistiko: I'm not —I'm not... Tracy Walsh: You're the man. I hope that you feel that Chris is doing a good job and I hope that you back him a hundred percent because we in the neighborhood feel that he's a good one and we don't want to get rid of Chris. Thank you. Kalispell City Council Minutes Special Meeting - August 2, 2001 Page 58 of 4. (CLAPPING) Mark Holston: I think we all probably want to go home, but since it's not 10:00 yet I'll give you forty-five seconds or so. My name is Mark Holston, 104 Northern Lights Boulevard. The thing that really has concerned me the most, as I spend a lot of time monitoring and considering some of what I think are horrible things happening in this valley, this vicious, slanderous, malicious radio station, that is trying to stir up this community and turn people against each other. They had told their followers to be here tonight. I'm so gratified to see that the good people of Kalispell, the people that do care about the future of this community are here tonight, and not those yahoos who would have been here disrupting this meeting. If they were here, they have stayed in their seats. This City Council, with the majority that we have and with this progressive leadership, has been one positive factor in this valley. When we look at this other crazy divisive stuff that is going on, and this business in the last week, this kind of dark keystone cops incident has put a big cloud over the community. It is embarrassing. It's embarrassing to this gentleman, it's embarrassing to all of us who are citizens here, that we have to explain this. And Kalispell and the Flathead Valley unfortunately is cultivating this type of reputation, and I'm encouraged tonight,by the comments that I've heard, the very eloquent statements by Councilman Larson, and Leistiko, Atkinson, and Kenyon, and Van Natta, and Counsell, that I see hope. And what I've heard from the audience tonight, you know we can fight this, we can beat this. This is a good positive community with people that will work hard. We have positive, progressive people in this community and we need to step up to the plate more. We need to hear these kinds of comments and not this negative stuff that is out there so much. Thank you very much. (CLAPPING) Mayre Flowers: My name is Mayre Flowers, Citizens for a Better Flathead, 35 4th Street West. I would just like to encourage the Council, as Diane did for you earlier, to really take this opportunity as the nudge that you need to go ahead and to look at ethics policies and guidelines in the City, but even more particular than that I want to share with you, and as you know I've brought this issue to you before, in researching ethics policies in this community I had the opportunity to visit with those in Whitefish who worked very hard to adopt, over the past few years, a new ethics policy. And I think one of the things that was most strongly related to me is that it was not just the policy, but it was the process of going through the workshops and the opportunity to dialogue, as a Council, on types of situations that come up before you that you least expect, and to really understand different responses that are appropriate for those. So, I extremely encourage you to not only look at your policies, but to host workshops that give you the opportunity to discuss these matters. And I would also encourage you to look at, strongly, including in the ethics policies, the planning boards and other boards that represent the City. Thank you. (CLAPPING) Marshall Noice: I'm Marshall Noice. I live at 647 Sixth Street East and I didn' t want ... I warn' t going to say anything ... but I just wanted to say thanks to each and every Councilman who spoke tonight. I appreciate your comments and I feel heartened by those comments, and it gives me hope for our community. Thank you very much. Kalispell City Council Minutes Special Meeting - August 2, 2001 Page 39 of 42 1849 41 (CLAPPING) Boharski: Would anyone else care to comment this evening? Anyone else from the audience care to comment this evening? Seeing none. Is there any further business to come before the Council? Larson: Your Honor. Boharski: Councilman Larson. Larson: One matter of business that I would like to take care of before we adjourn. It is my full understanding that there would be no action taken at this meeting, and the motion I am about to make is not an action, it's a vote of confidence for the City Manager. I conferred with the Local Government ... I forget the ... Center in Bozeman last night and I was told that it would be proper to make a motion, to extend a motion of support for City Manager Chris Kukulski. And with that advice I would move that the Council extend to Chris Kukulski a strong vote of support and a sincere apology for what he and his family have been put through. Van Natta: I believe I'll second that. Leistiko: I'll second too. Boharski: Motion made and seconded by Councilman Van Natta. Is there any discussion? Boharski: I have, I guess a little bit of discussion because I feel this was a little bit of a political gotcha for the Mayor, but so be it. Chris, I don't believe I have done anything that I need to apologize to you for. I think we've discussed a number of issues tonight in a very...I guess what I would consider a hostile environment which I think is unfortunate. I think if the issues that are resolved, as we have discussed this evening are properly resolved, Certainly you have my vote of confidence and support of that along with the rest of the Council. As I mentioned earlier I think errors were made. I think we've come to an agreement of that. I think the individual agencies that looked into it looked into it appropriately. I think the references were made appropriately and if the vote is to ... vote certainly to keep you here. I never made a suggestion that I didn't want to do anything less than that, just to straighten out the folks in the City of Kalispell, that would be fine with me. And for anything that your family has gone through, I apologize, but I think the individuals that need to be discussed with about that is probably the press. Councilman Atkinson. Atkinson: If I thought that this motion was a political gotcha for the Mayor I would vote against it. I think the nature of the motion is strictly a vote of confidence for our City Manager and should be meant as a vote of confidence for our City Manager. I'm sorry if you feel that that is politically oriented. I do not think that it is and I think that we need to keep our vision on why this motion really was made, and I know Duane Larson and I sincerely feel that it is a... strictly a motion for support of our City Manager. So I wanted to —correct you I guess you'd say in regards to that. Bill, I appreciate what you're going through. I don't appreciate the way you did it. I would like to stand up for your right to question, investigate on your own, any concerns that you may have Kalispell City Council Minutes Special Meeting - August 2, 2001 Page 40 of 42 M: 1 with anyone in this government, and that's why this government is so great because one man can do that. I don't appreciate the way you went forward with it. I would have appreciated it if you would have included us. You and the City Attorney would have included us. I probably agree with what your assumption would have been if you had included us. But that's all water under the bridge now. Let's go forward. Let's support this man the way he's supported us in our decisions. And I would appreciate an unanimous vote on this, although we all have the right to vote our own conscience. Larson: Your Honor. Boharski: Councilman Larson. 1 Larson: In view of the fact I made the motion and I don't want to prolong this meeting any longer than we have to, I appreciate everyone showing up and showing support for Chris. I know that they all had busy evenings planned and I really, really appreciate it. I have a lot of faith in the citizens of Kalispell and I know they stood up for what they thought was right and I do appreciate that. In light of the special meeting discussion tonight and Chris's complete vindication of any and all allegations of criminal misconduct by all agencies contacted, I would urge the Council to unanimously support my motion. Boharski: Is there any further discussion? Those in favor signify by saying aye. Atkinson; Counsell; Kenyon; Larson; Leistiko; Scarff; Van Natta; Mayor Boharski: Aye. Boharski: Opposed. None. Motion carries. Any further item to come before the Council? Chris. Kukulski: Obviously I thank you for that vote and I don't want to jump into the discussion of what's been said. I appreciate, not the support for me, but that you entrusted me and I know that you've taken the time to listen as I explained the information and as you read over it, I'm confident that I addressed the issues. What I plan on saying, and is really fitting I think for this meeting, though believe me I had no idea and was, at least to say, a little nervous about what tonight might bring. In everything that was going on, I made an attempt and did attend some meetings this week with groups and it was so pleasant to do so with Rotary this morning and yesterday. The one that I want to bring up was an attendance that I had at the Jobs Now Board Meeting. Again, it wasn't anything to do about folk's comments to me, or about me, or anything else, it was the fact that, and I think this is interesting and something we can learn from. Jobs Now, for those of you who don't know, is the only privately funded economic development organization in the state, and as a result of that the board is made up of predominantly private sector directors and things, and there's a couple of us government types that are on there, Dale Williams and myself. And it was so pleasant to go to a board meeting where everyone was so positive. The chairman of that board, Jeannie Parsons, and those board members and I won't name them all, but it was such a positive environment of which they wanted to proceed and move forward with that group. Paul Wachholtz, which I know everyone in this room is probably... knows Paul real well, must have spent fifteen to twenty minutes on some work that he had done over the past month and wanted to really pump up the board and Liz Harris and the employees that do such a fine job over there. And I thought how nice that was and how that brings forth Kalispell, City Council Minutes Special Meeting - August 2, 2001 Page 41 of 42 1851 energy in the right direction. My wife would be a little surprised by this because she knows how much I read books, but David Landus, Wealth and Poverty -of Nations said, "In this world the optimists have it, not because they are always right, but because they are positive and that is the way of achievement, correction, improvement and success. Educated... eyes open optimism pays. Pessimism can only offer the empty consolation of being right". Thank you very much. (CLAPPING) Boharski: Seeing no further business to come before the Council, we are adjourned. ADJOURN The meeting was adjourned at 10:05 p.m. ATTEST: Theresa White City Clerk 1 Approved September 4, 2001 1 w Wm. E. Boharski Mayor Kalispell City Council Minutes Special Meeting - August 2, 2001 Page 42 of 42