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07/15/91 City Council Minutesf 384 384 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. 385 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. rr �UU 386 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. 1 1 1 nJ 387 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. 388 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. 1 1 1 389 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 XV �.JaAD. Rauthe, Mayor