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06/04/01 City Council Minutes1775 A REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:00 P.M. MONDAY, JUNE 4, 2001, IN THE COUNCIL CHAMBERS AT CITY HALL IN KALISPELL, MONTANA. MAYOR WILLIAM E. BOHARSKI PRESIDED. COUNCIL MEMBERS JIM ATKINSON, DALE HAARR, DUANE LARSON, FRED LEISTIKO, DOUG SCARFF, RON VAN NATTA AND CITY MANAGER CHRIS KUKULSKI AND CITY ATTORNEY GLEN NEIER WERE PRESENT. COUNCIL MEMBERS DON COUNSELL AND RANDY KENYON WERE ABSENT. Mayor Boharski called the meeting to order and led the Pledge of Allegiance. AGENDA APPROVAL Haarr moved approval of the Agenda. The motion was seconded by Scarff. There was no discussion. The motion carried unanimously upon vote. CONSENT AGENDA APPROVAL 1. Council Minutes - Regular Meeting May 21, 2001 Council Minutes - Special Meeting May 23, 2001 2. Approval of Claims per Payables Register - $211,350.52 Scarff moved approval of the Consent Agenda. The motion was seconded by Van Natta. There was no discussion. The motion carried unanimously upon vote. HEAR THE PUBLIC None UNION CONTRACT RATIFICATION - KALISPELL POLICE ASSOCIATION The City and the Kalispell Police Association have agreed on a three-year contract and Council ratification is required. Kukulski explained the contract basically has seven changes as follows: 1) 3.3% wage increase the first year, 3.401 the second year and 3.5, the third year. 2) Additional $300 per year for safety equipment/uniform allowance. 3) Comp time buy back - 80 hours can be cashed in over 440 hours. 4) Sergeants and Senior sergeants pay increased by 126 the first contract year. 5) Change wording to read "police officers" instead of "policemen". 6) Delete "Senior Sergeant assigned to Uniform Patrol Division only" on Schedule A, B L C. 7) Additional one personal day. Kukulski said the total amount of "new money" in the contract is $111,261 for the next three years. He said he feels it's a good contract and compromises were made on both sides. Larson moved the Council ratify the three-year contract with the Kalispell Police Association. The motion was seconded by Van Natta. Kalispell City Council Minutes June 4, 2001 1776 There was discussion. Atkinson complimented both sides for entering into negotiations in a positive way and coming to an agreement in fourteen hours. Haarr said he's encouraged by the way negotiations were conducted, but said he feels the City was over generous. He commented the contract will cost the City about 5 1/2 mills over the next three years at a time that Council needs to be looking at ways to economize. Boharski said he's pleased the contract was resolved so quickly, but he said he's also concerned with how the City is going to afford the raises. He encouraged the Council to trim the regular budget to cover these additional costs. The motion carried unanimously upon vote. Bill Miles, 1311 7th Street West, said he thinks the Council has come a long way in its thought process the past two years. He agreed the Council needs to look at the budget, but states there's no price on safety. ADDENDUM TO SOUTHFIELD PARK AGREEMENT The addendum outlines changes to the Southfield Park Development Agreement executed in 1998 between the City of Kalispell and Richard Dasen. Neier explained the addendum is a reasonable solution for both parties and provides for a payment to the City of $90,000 by June 30, 2001. He said the developer is currently constructing an office building on the property which will be approximately 30,000 square feet and a commercial building of approximately 12,000 square feet. Neier said the City will receive taxes on the improvements made this year in the 2002 tax year, and there's a possibility that tax generated by the development will exceed the $148,000 limit. Haarr moved Council approve the Addendum to the Southfield Park Agreement. The motion was seconded by Larson. There was discussion. Haarr stated he feels this a "no fault agreement" because there were mistakes made by both the City of Kalispell and the developer. Haarr said Dasen and his partners should be complemented on the architecture of Southfield Park and the proposed additions should be just as nice. Haarr commented the City needs to recognize developers that spend their own money and generate a large tax base. Leistiko said he has problems with the addendum. He said the agreement signed in 1998 stated Dasen would pay the City $148,000 a year for payment in lieu of taxes, and the City hasn't received a dime. He said the City needs a guarantee ,to protect the taxpayers and it's time the City tightens these agreements. Atkinson commented the payment in lieu of taxes was to encourage the property to be developed as soon as possible. He said it's to Dasen's benefit to not pay and then renegotiate the contract. Atkinson referred to Section 5.4, City's Remedy for Failure to Construct, which states: "DEVELOPER, therefore, covenants to pay the CITY any difference between the amount of tax actually 1 Kalispell City Council Minutes June 4, 2001 pn(j 2 of 5 1777 1 generated by the Project Property, including any portion of the Project transferred to another owner, and the amount contemplated by this Agreement for a period of eight (8) years commencing with tax year beginning January 1, 2003". He said the 2003 date is too long. Atkinson moved an amendment to the agreement by changing the dates in Section 5.4 from January 1, 2003 to January 1, 2002. The motion was seconded by Van Natta. There was discussion. Haarr stated the Council doesn't want to "go down this track" because one of the alternatives is to have this decided in Court. He said Dasen's argument is that he lost leases because the City didn't approve the building permits in a timely manner. Haarr said the amendment wasn't part of the negotiations and it shouldn't be included. Boharski also encouraged the Council to vote against the amendment. He said the project is currently paying about half of what is owed and this addendum actually generates more money in the long term. Leistiko said he would agree if he felt the City would actually get the money. He said stretching it out is a good theory, but what guarantee is there the City will get money this time. Larson commented he's against the amendment because he feels the negotiations were done in good faith and feels the addendum is the best alternative. Van Natta stated he agrees in principle with Atkinson and Leistiko, but also feels the addendum is an opportunity to recoup some of what is owed and an opportunity to get additional buildings on the site that will generate more taxes. Atkinson said the City coffers have already been cheated out of approximately $200,000 and now we're looking at pushing it back another year. He said there comes a time when the City needs to stand up as to the validity of contracts. The amendment failed upon vote with Atkinson and Leistiko voting in favor, and Haarr, Larson, Scarff, Van Natta and Boharski voting against. The main motion carried upon vote with Atkinson, Haarr, Larson, Scarff, Van Natta and Boharski voting in favor, and Leistiko voting against. RESOLUTION 4622 _ SPECIAL IMPROVEMENT DISTRICT #343 BONDS Haarr moved Resolution 4622, a resolution relating to $1,581,500 Special Improvement District No. 343 Bonds; fixing the form and details and providing for the execution and delivery thereof and security therefor. The motion was seconded by Scarff. Kukulski explained the project is about $250,000 less than the original engineer's estimate and the City's contribution is approximately $37,000. He stated construction is slated to begin next week with a completion date of September 27th. Kalispell City Council Minutes June 4, 2001 Page 3 of 5 1118 George Van, Kalispell, commented as long as the City is doing all this construction, a proper right turn lane is needed from Highway 93 onto Sunnyview Lane. Kukulski explained the State indicated the change referred to is not needed at this time and it's not part of the project. Van asked the City to do a better job keeping the dust down than it did last year. The motion carried unanimously upon roll call vote. DISPOSAL OF PROPERTY Staff is asking Council authority to sell a section of land near Kelly Road and willow Glen. Haarr moved Resolution 4623, a resolution authorizing the Mayor or City Manager and City Finance Director to execute documents necessary to sell certain real property described in Exhibit "A" to Muskrat Slough Partnership, John G. Garlough and Kristina D. Garlough, Walter C. Kroemer, Burl D. French and Deborah K. French, Dorthy Fuller, and Michael D. Kiger and Penny C. Kiger. The motion was seconded by Larson. There was discussion. Boharski commented the purchasers are getting a good deal on this property and asked what kind of negotiations were done. Kukulski explained the property was deeded to the City without our knowledge along with a small section of land for the Kelly Lift Station. He said the property largely consists of a slough after many discussions, it was determined it would be in the City's best interest to sell the property for $2, 5000 plus all costs associated with the land transfer. Kukulski said Muskrat Slough Partnership is planning to build a 25-lot subdivision -on the high ground. The motion carried unanimously upon roll call vote. ORDINANCE 1382 ZONING TEXT AMENDMENT - CELLULAR COMMUNICATION TOWERS - 2ND READING TriStar Communications, LLC requested changes to the Kalispell Zoning Regulations that would allow for the installation of cellular towers as a permitted use in the B-5, I-1 and I-2 zones. Council, on first reading May 21st, voted to make the towers a conditionally permitted use in those zones and added a requirement that all towers be located a minimum of one mile apart. Leistiko moved second reading of Ordinance 1382, an ordinance amending the Kalispell Zoning Ordinance, (Ordinance No. 1175), by allowing the installation of cellular towers in the B-5, Commercial/Industrial, I-1, Light Industrial and I-2, Heavy Industrial zones as permitted uses, subject to performance standards, and declaring an effective date. The motion was seconded by Larson. There was discussion. Norbert Donahue, 144 Crestline, said he's concerned this ordinance is a violation of the anti-trust laws of the State of Montana, and maybe even the Federal anti-trust laws. He said the one mile limit Kalispell City Council Minutes June 4, 2001 Page 4 of 5 1779 creates a monopoly and stated the ordinance as written should be rejected. Boharski said he has discussed this with Neier and he would suggest tabling the issue until further inquiry can be done. Van Natta said the Council is just trying to encourage co -location and the ordinance states the one -mile limit can be waived if co - location opportunities do not exist. Bill Mason, Kalispell, commented on the neurological and physiological effects of this new technology. Neier said Missoula is also struggling with this issue and he would like additional time to research the issue. Atkinson moved to table Ordinance 1382. The motion was seconded by Scarff. The motion carried unanimously upon roll call vote. ORDINANCE 1383 - ZONING TEXT AMENDMENT - PARKING STANDARDS FOR SUPERMARKETS & GROCERY STORES - 2ND READING Smith's Food and Drug requested changes to the Kalispell zoning Ordinance's parking requirements for grocery stores and supermarkets. Council, on first reading May 21st, voted to calculate the parking requirements at a ratio of one space per 300 square feet of gross floor area. Van Natta moved second reading of Ordinance 1383, an ordinance amending Sections 27.26.050(21) of the Kalispell Zoning Ordinance, (Ordinance No. 1175), by amending "Off Street Parking for Grocery and Supermarkets" to change the required number of parking spaces, and declaring an effective date. The motion was seconded by Scarf f. There was discussion. Van. Natta commented the one space per 300 is consistent with the zoning regulations in Whitefish and Flathead County and the Planning Board has asked staff to look into the possibility of extending this requirement to other businesses as well. The motion carried unanimously upon roll call vote. MAYOR/COUNCIL/CITY MANAGER'S REPORTS Kukulski announced that Don Counsell is in a hospital just outside of Denver for diverticulitis, but is apparently doing well. ADJOURN The meeting was adjourned at 9:10 p.m. Wm. E. Boharski Mayor ATTEST: Theresa White City Clerk Approved June 18, 2001 Kalispell City Council Minutes June 4, 2001 Page 5 of 5