07/15/91 City Council Minutesf 384
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A REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:00
P.M. MONDAY, JULY 15, 1991, IN THE COUNCIL CHAMBERS AT CITY HALL.
MAYOR RAUTHE PRESIDED. ALL COUNCILMEMBERS WERE PRESENT.
Mayor Rauthe called the meeting to order and led the Pledge of
Allegiance.
CONSENT AGENDA
Approve Claims per Payables Register
Moses moved approval of the consent agenda. The motion was
seconded and carried with a vote.
ADDRESSING THE COUNCIL
Annexation Policy
Louis Ruiz, 406 Ashley Court, former councilman, had several
concerns regarding annexation in general.
1. Responsibility of who pays for the maintenance of a county
road other than the county when travel.is necessary on it to
get to the annexed properties.
2. Maintenance and upkeep responsibility of sewer lines
3.- Police and fire protection expenditures
4. Properties not 80% complete, wait until more fully developed.
PUBLIC HEARING
Annexations
Pack West Addition No. 239
Proponents
None
Opponents
None
Baltrusch Addition No. 240
Proponents
None
Opponents
None
Haley Addition No. 243
Proponents
Clark Haley, 197. Lakeside Blvd., Lakeside, spoke in favor of this
annexation. He wants to develop a hangar or airport compatible
facility on this property. It has been reviewed and endorsed by
FRDO and accepted by the Planning Commission.
Opponents
Don Burton, adjacent landowner on 93 South, was concerned with
the affect this would have on his property in the future, if the
city wanted to annex his property, he wanted input.
Mauzey Addition No. 244
Proponents
None
Opponents
None
Riverview Greens No. 241
Williams gave a brief background.
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Williams asked David Greer from Flathead Regional Development
Office, to discuss the purpose of the Extension of Service Plan
adopted in 1989 and how the plan relates to the two subdivisions.
The Mini Extension Service plan is required by Montana statutes
to develop this information prior to annexation and it is
important that it be presented prior to the public hearing.
Greer explained that the City is required to prepare an Extension
of Services Plan and Mini Extension of Services Plan for
Riverview Greens and Fairway Boulevard Townhouses as a result of
the intent to annex these parcels.
Proponents
None
Opponents
Ken Yachechak, President of Village County Sewer District,
representing the district explained the district did not receive
any kind of official notice until last Friday.
He was concerned if the city will take over the pump stations.
The district is also concerned about the bond indebtedness which
is somewhere around $560,000 of which the bonds were in default
at one time and now current. The bonds currently now are being
paid off at about a 12% interest rate. The district is concerned
as to the city's participation that they are part owners of the
system and to the refinancing of these bonds.
They wonder if the city is prepared to work out an agreement
which separates city residents from non city residents.
School District 5 is adjacent to this annexation, they are
concerned that the school district is not being brought into this
annexation. There is a pump station that is not now part of the
annexation portion, there is a development proposed there and
will that pump station be outside the city's maintenance schedule
or will it be a part of the schedule?
Who is physically responsible for billing, they are currently
doing it through a contractual basis with a CPA firm, is the city
prepared to take over the billing action?
He had concerns as to liability. They carry a policy to protect
the district and its operators from any liability due to a
system failure, is the city prepared to take over that liability?
He was concerned that the city has rushed very fast without
coming to the district and the board of directors to discuss the
ramifications of the annexation and whether or not it is a timely
manner. They would like to see an effort made on behalf of the
county or the city to urge the Hillcrest landowners to join the
district to help alleviate some of the seepage problems below the
hill.
John Gunnerson, 184 Riverview Dr., was concerned with creating
islands within the city limits of Kalispell, as was done in the
past. He was also concerned with the fire and police response.
Snow removal was also a concern. He did not feel this was the
time for annexation.
Kits Smith, Buffalo Chip partner and landowner, did not oppose
the annexation, but the time frame it is being done.
There are 3 parks in the subdivision and has any consideration
been made concerning manpower to maintain the parks?
He also was concerned with the police and fire response tiine.
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Jeff Ellingson, attorney representing the Village County Sewer
District, reported the Sewer District has no position on the
annexation, however they have to be assured that they meet its 2
statutory responsibilities.
1. Provide services to the areas within the district which
includes the Fairway Boulevard Townhouses.
2. The Sewer District's financial obligation and coverage of
their potential liability.
They have no position on the annexation other than to oppose at
this stage, because they have not been provided any contractual
or statutory assurances than the bond indebtedness that they are
contractually obligated to and could be taken care of as part of
this arrangement. Otherwise the only mandate of the statute for
the Sewer District is that they provide efficient sewage disposal
services to the areas within the district. As long as that can
be taken care of they have no problem with it. Maybe it is a
question of timing and phasing in more than anything else.
The public hearing was closed.
Fairway Boulevard Addition No. 242
Proponents
None
Opponents
Marshall Murray, attorney representing the Iomeowners Association
and the 49 lot owners within that area, spoke in opposition.
He submitted a written protest to this annexation signed by 49 of
the 49 lot owners and other backup documents relative to the
understanding of certain members of the city council who were on
the city council at the time this issue came up with respect to
their memory as to the 80% rule; and also Norbert Donahue, former
city attorney that was in office when this agreement was drawn up
in 1982.
The homeowners have with cooperation of the county and their
homeowners association an adequate administrative governmental
situation in place to handle their problems. They have through
the original developer, the -Evergreen Water System, the
Evergreen Fire Department and the contract with the City of
Kalispell all of the services that they need. They have their
own park situation, they have a private road which is maintained.
He pointed out the major problem in your attempt to annex Fairway
Boulevard and that is the 1180%" issue.
If you have a vagueness in a document such as this, you have to
look to the intent of those who drafted the document as to what
was involved.
In short, these people have the services that they need, they
understand what they have and have administered them better than
most.
The public hearing was closed.
ORDINANCES & RESOLUTIONS
Resolution 3995-Pack West Addition No. 239-Annexation
Atkinson moved Resolution 3995, a resolution to provide for the
alteration of the boundaries of the City of Kalispell by
including therein, as an annexation, certain real property to be
known as Pack West Addition No. 239; to zone said property
Residential Apartment, RA-1,and to amend the City Zoning Map
accordingly and to declare an effective date. The motion was
seconded.
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Nystul expressed with only 2 homes and a plot of grassland being
annexed, it would not be a big advantage to extend city services.
With a roll call vote the motion .carried with Nystul voting
against.
Resolution 3996-Baltrusch Addition No. 240-Annexation
Larson moved Resolution 3996, a resolution to provide for the
alteration of the boundaries of the City of Kalispell by
including therein, as an annexation, certain real property to be
known as Baltrusch Addition No. 240; to zone said property
Residential Apartment, RA-1, and to amend the City Zoning Map
accordingly and to declare an effective date. The motion was
seconded.
Upon roll call vote the motion carried unanimously.
Resolution 3997-Riverview Greens Addition No. 241-Annexation
Atkinson moved Resolution 3997, a resolution to provide for the
alteration of the boundaries of the City of Kalispell by
including therein, as an annexation, certain real property to be
known as Riverview Greens Addition No. 241; to zone said property
Residential, R-3, and to amend the City Zoning Map accordingly
and to declare an effective date. The motion was seconded.
Granmo felt he could not support until financial and maintenance
responsibility is determined.
Williams commented the reason the sewer district was not notified
is because they are not property owners.
Collins stated due to unanswered questions he would prefer to
delay this resolution.
Nystul spoke
in opposition to this and
the next resolution. He
felt issues
need to be worked out.
Cost of services is a
significant
consideration that we
need to make on all
annexations.
He was concerned about creating islands. He dial
not feel this
is the time to annex these
areas.
Larson felt there were too many unanswered questions before going
any further. .
Neier stated we can make a contract with the district,. whereby
the fee that they charge now for hooking up is kept and whether
or not the city collects $500 or not, I believe there is a basis
for the perpetuation of a $1500 fee. I think there is a way to
protect the bondholders and satisfy the indebtedness of the
district even though they become annexed to the city.
Glen noted all the bondholders have is the pledge of the
district to satisfy the indebtedness. It would be a little
difficult to imagine a circumstance where the city might become
liable for a default by the district. We are not assuming any of
the debt and they are not going to be in any worse shape to pay
that debt if we take them over than they would have had we not
taken over and annexed the territory.
Larson said the 1991 Legislature passed some legislation that
allowed rural fire districts to sell bonds for capital
improvements in the form of buildings or fire equipment. An
amendment was inserted that requires cities annexing rural fire
districts to be responsible for the bond indebtedness for that
bond. The rural fire district would not be able to complete the
bond payments without the income from the tax structure of the
properties that were annexed.
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Kennedy felt that the direction that the city growth needs to
take is heading out that direction, heading north. Annexation is
the only option to provide more building for people wanting to
live in the City of Kalispell.
Williams suggested to amend page 5, Section 4, the effective
date is 6 months from the date of it's passage.
Neier remarked this resolution of rannexation can take place
anytime up to 12 months following the passage of the resolution.
It could be made to take effect next July 15, 1992. We could do
as Williams suggested and put an effective date of December 31,
1991 on it.
Granmo moved this resolution be tabled until such time as the
administration can bring us more definitive paragraphs regarding
the fees and ownership of the sewer system. The motion was
seconded.
Atkinson spoke in opposition of tabling the motion. He felt that
it takes away the opportunity for the city to negotiate with the
district. He was in favor of an amendment to Section 4 to place
a time limit upon it and thereby encourage both sides to
negotiate an answer prior to the onset of the resolution.
Larson supported the motion. It provides the same opportunity for
the city to stall the negotiations. If a time limit is set on it
and the resolution becomes effective in that time limit, there is
no reason to ever settle it.
The motion to table failed upon roll call vote with Granmo,
Kennedy and Larson voting in favor.
Nystul called for the question.
With a 'roll call vote the motion carried with Granmo, Larson,
Collins and Nystul voting against.
Resolution 3998-Fairway Boulevard Addition No. 242-Annexation
Atkinson moved Resolution 3998, a resolution to provide for the
alteration of the boundaries of the City of Kalispell by
including therein, as an annexation, certain real property to be
known as Fairway Addition No. 242; to zone said property
Residential, R--3, and to amend the City Zoning Map accordingly
and to declare an effective date. The motion was seconded.
Upon roll call vote the motion carried with Granmo, Larson,
Collins and Nystul voting against.
Resolution 3999-Haley Addition No. 243-Annexation
Atkinson moved Resolution 3999, a resolution to provide for the
alteration of the boundaries of the City of Kalispell by
including therein, as an annexation certain real property, To -
Wit: a tract of land in the N-1/2 S-1/2 of Section 20, T28N,
R21W, F.M.M., Flathead County, Montana, to be known as the Haley
Addition No. 243; to zone said property General Business, B-3,
for that tract of land described by Certificate of Survey #2368
and Light Industrial, I--1, for the tract of land described by
Certificate of Survey #2321 and to amend the City Zoning Map
accordingly. The motion was seconded.
With a -roll call vote the motion carried.
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Resolution 4000-Mauzey Addition No. 244-Annexation
Collins moved Resolution 4000, a resolution to provide for the
alteration of the boundaries of the City of Kalispell by
including therein, as an annexation, certain real property to be
known as Mauzey Addition No. 244; to zone said property
Residential, R-4, and to amend the City Zoning Map accordingly
and to declare an effective date. The motion was seconded.
The motion carried unanimously upon roll call vote.
BUSINESS FROM MAYOR & COUNCIL
None
BUSINESS FROM MANAGER
Larry Gallagher Contract
Williams explained the revised contract submitted for the
services of Larry Gallagher, which includes compensation of
$4,166.67 for health insurance.
Larson moved the council approve the contract with Larry
Gallagher as submitted. The motion was seconded.
The motion carried unanimously with a vote.
1992 Budget Presentation
Williams read his budget message.
It is required by law that a preliminary budget be adopted by
July 25, 1991. Williams recommended this be done at this time
rather than holding a special session. A public hearing is also
required. The final budget needs to be adopted by the second
Monday in August which is August 12, and is not a regularly
scheduled meeting. A work session is scheduled.
Rauthe .recommended having a special meeting August 12, 1991 at
7:00 p.m., prior to the workshop. The council concurred.
Atkinson moved approval of the preliminary budget. The motion
was seconded.
Collins complimented and thanked Williams for all his hard work.
Williams noted that it was the staff that did all the hard work.
The motion carried with a vote unanimously.
Revised Sign Ordinance
The revised portions of the sign ordinance are completed and work
shops will be scheduled for review.
STAFF REPORTS
Next Work Session-7/29/91
Next Regular Council Meeting-8/5/91
Special Council Meeting -Public Hearing-Budget-8/12/.91
Nystul will be out of state 7/16-31/91.
Rauthe will be out of the city 7/21-25/91.
ADJOURN
The meeting was adjourned at
ATTE
Amy H. Robertson, Finance Director
Debbie Liverman, Clerk of Council
Approved as presented August 19. 1991
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�.JaAD. Rauthe, Mayor