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08/03/92 City Council Minutes047 1 1 479 A REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:00 P.M. MONDAY, AUGUST 3, 1992, 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 Buck moved approval of the consent agenda. The motion was seconded. ADDRESSING THE COUNCIL Steve Cervantes, former Planning, Economic and Community Development Department Director respectfully requested a formal appeal of the decision by Manager Williams to terminate his employment. Letter from Roger Hopkins Lane Bennett read a letter from Roger Hopkins, who was unable to attend, in reference to the firing of Steve Cervantes. He urged public debate to reconsider the policy giving the manager unreviewed authority to terminate department heads. PUBLIC HEARING Immanuel Lutheran Corporation/Refunding Bonds Proponents Attorney Steve Cummings, an Immanuel Lutheran Corporation Board member, introduced Kathy Mercord, President of the Corporation. He spoke in favor of refunding of the bonds. Opponents None FY 93 Budget Williams explained the proposed budget for fiscal 1993 is 14,881,327 as compared to last year's of $22,808,737, a decrease of $7,927,410. The decrease is primarily due to less money being programmed for the construction activity. The most notable project funded from last year's budget, the Waste Water Treatment Plant, made up the bulk of our construction expenses last year and represents about $2,000,000 of anticipated expenses in this proposed budget. We anticipate spending the budget on the following category of expenses: 1992 1993 Proposed Operating $ 10,671,924 $ 11,053,376 Construction $ 12,136,813 $ 3,827.951 $ 22,808,737 $ 14,881,327 The operating portion of our proposed budget anticipates expending our budget on the following items: % of % of 1992 Budget 1993 Budget Personal Costs $ 4,563,476 43 $4,912,789 44 Maintenance & Operation $ 2,976,893 28 $3,403,252 31 Capital & Depreciation $ 1,230,486 12 $ 860,502 9 Debt $ 1,138,667 10 $1,249,662 11 Loans/Grants $ 762,402 7 $ 627,171 5 $10,761,924 100% $11,053,376 100% 0480 480 The operating budget as proposed will increase 3.5% over last year. The General Fund's share of the $11,053,376 operating budget is $4,081,182 compared to last year's $3,632,178, an increase of 12%. The increase relates to expending more of our resources on capital improvements, equipment purchases and the increased cost of personal services. Mills Required to Fund Budget This budget as proposed would require the following property tax levy: 1992 1993 General Fund 66.23 69.52 Insurance/Retirement 45.16 41.87 G.O. Bond 2.33 2.38 SID Revolving 1.05 -0- 114.77 114.22 The millage required to fund this budget will decrease 1/2 mill, however because the value of a mill has increased 2% ($16,346 to $16,644) the actual property tax revenue generated from the total proposed levy will increase by $33,903. Proponents None Opponents Colin Wills, 755 North Main commended any and all who brought on the street improvement. He said it was the best he has seen in 56 years of residence here. He spoke against many areas of the budget. He felt there should be a committee to consider consolidation in different departments and many definite budget cuts are necessary in many departments. BUSINESS FROM MAYOR & COUNCIL Councilman Nystul reported on the recent meeting of which FRDO and FEDC hosted representatives of the city councils of Kalispell, Whitefish and Columbia Falls and the County Commissioners. The primary purpose was to discuss the direction headed with the economic development and the planning. ORDINANCES & RESOLUTIONS Resolution_ 4059-Authorize Sale of Property to Anderson Theatre Group Atkinson moved Resolution 4059, a resolution authorizing the sale of Lots 1, 2, 3, 4 and the north 7 inches of Lot 5, Block 45, Kalispell Original, Flathead County, Montana. The motion was seconded. With a roll call vote the motion carried. Anderson Theatre Development Agreement City Attorney Neier has reviewed the development agreement with the developer's attorney and they reached an agreement. Neier noted there have been a couple of changes that are agreeable to Tom Hines, Larry Gallagher and Neier. 1. Article 3, Section 3.1 subparagraph b. the developer requested and it was agreed to add the following language: "Developer further covenants not to protest the creation of Special Off -Street Parking District and/or assessments for the Liberty Theatre as it exists as of the date of this Agreement. However, Developer reserves the right to protest creation of a Special Off -Street Parking District and/or assessments for the same on behalf of the Strand Theatre and any other property Developer owns within the boundaries of the proposed District. 0481 481 2. Article 3, Subsection C, ii, the first sentence to read as follows: Upon issuance of occupancy permit by the City to Developer for Liberty Theatre expansion, Developer shall deposit with the City, a Certificate of Deposit, issued by a banking institution, in the amount of $67,000,000. 3. Article 6, the first sentence to read: Developer shall pay when due all real estate taxes and installments of special assessments payable on the Project Property and the existing Liberty Theatre. Developer, however, reserves the right to protest taxes and/or spend assessments payable on the Strand Theatre or other property Developer owns within the Kalispell Redevelopment Area. Developer and the City recognize that the State of Montana, Department of Revenue shall utilize calculated or segregated cost methods to determine the Assessed Valuation of the improved real property and the Developer shall not utilize an income approach to value to protest the Assessed Valuation of said property for a period of five (5) years from the date of this Agreement. Neier stated a motion would be in order to authorize the agreement. After discussion it was agreed to review the final draft and address it again at the Special meeting on August 10, 1992. Resolution 4060-Immanuel Lutheran Bond Refinancing Proposal Collins moved Resolution 4060, a resolution providing for the issuance and sale of housing facilities refunding revenue bonds to provide refinancing for Buffalo Hill Terrace Project on behalf of Immanuel Lutheran Corporation of Kalispell, Montana. The motion was seconded. The motion carried upon roll call vote. BUSINESS FROM MANAGER Bid Award -Tennis Court Resurfacing The City received two bid proposals for the Tennis/Basketball Court Resurfacing project. The bids were opened July 31, 1992 with the following results: Action Enterprises $45,300 Le Courts Inc. $16,200 Williams recommended the bid award to Le Courts Inc. in the amount of $16,200. Kennedy moved the bid be awarded to Le Courts Inc. in the amount of $16,200. The motion was seconded. With a vote the motion carried. City Audit Finance Director Robertson is requesting that the State of Montana Audit Division be granted the opportunity to perform the city audit for FY 91 and 92. In 1990 the city accepted proposals for audit services and awarded the audit to the State for a three year period ending fiscal year 91. The city did not budget for a single year audit for 91 and now have a need for a two year audit. Williams requested authorization to enter into an engagement letter with the State. The State estimates that the audit should not exceed 700 hours at a cost of $35.00 per hour. ($24,500) Buck moved the manager be authorized to enter into an engagement letter with the State for the city audit for FY 91 and 92. The motion was seconded. The motion carried upon vote. 482 Larry Gallagher, Consultant Contract Williams explained the proposal to renew consultant Larry Gallagher's contract for a period not to exceed 6 months beginning August 1, 1992 and ending January 31, 1993. The terms and conditions of the contract are the same as the previous contract with the exception of making available to Mr. Gallagher at his expense the city's medical insurance policy for up to 18 months following the termination of the contract. He recommended approval of the contract renewal for a 6 month period of time and at the conclusion of the contract all services provided under terms of the contract would become the responsibility of the Planning, Economic and Community Development Department. Atkinson moved the city manager be authorized to enter into a contract with Larry Gallagher for an extenuation of the contract from August 1, 1992 to January 31, 1993. The motion was seconded. Nystul spoke against the health insurance policy. He also felt 90 days would be better than 6 months. Kennedy spoke in favor of the contract including the health insurance option. Larson moved to amend the motion to limit the contract to 90 days. The motion was seconded. Larson spoke in favor of his motion. Atkinson and Buck spoke against the amendment. There was discussion as to the communication between the council and Gallagher. Gallagher expressed his willingness to increase and improve communications. He also explained a year ago when the contract came out and he asked to be allowed access to the city's insurance program, it was in an attempt to save under a Blue Cross/Blue Shield plan that he had personally had at that time. He was paying $260 per month for premium under his personal plan, within 30 days after joining the city's group, his premium, which he pays, went to $353 per month. All he is asking for is an opportunity to give him a reasonable length of time after termination of contract to get continuity of coverage. Upon vote the amendment was defeated with Granmo, Larson and Nystul voting in favor. There was more discussion. The motion carried with Granmo, Larson and Nystul voting against. Lantis Conditional Use Permit/W.E.L Care Investors The Kalispell City/County Planning Board forwarded a recommendation to council supporting the approval of a Conditional Use Permit for W.E.L. Care Investors, Inc. (Lantis) to build and operate a 20 bed personal care facility on Lot 1 of Heritage Place 1st Addition. The Planning Commission is recommending approval required with 7 special conditions. The conditions are outlined in the Planning Commission memo dated July 23, 1992. During the discussion of this issue last week there appeared to be several unresolved technical issues related to the proposed project that required staff attention prior to consideration of this request. Staff had the opportunity to meet with representatives of W.E.L. Care Investors, Inc. Tuesday to resolve the technical concerns of the City. As a result of this meeting both parties agreed to the following 15 points. These points are identified as Engineering Requirements for Heritage House dated July 28, 1992. 1 1 1 } 4-8 l 483 d 1. Water main to be located within the pavement area of the street. 2. Submit water main extension plans to the State for approval. 3. Relocate fire hydrant from curve of street to entrance to parking area. 4. Provide notation that fire truck access be provided to sprinkler stand pipe with design approval required from Fire Chief. 5. Provide berm reduction behind curb on west side of street. 6. Note to provide erosion control on north corner of Heritage Way behind sidewalk. 7. 4" of plant mix with 6' of 3/4" gravel cushion required for City Standard Street construction - correct typical street section. 8. Since street will have an area of 8' of fill, special caution to obtain 95% compaction for both water main and street sub -base must be specified. 9. Drainage calculation must be provided. 10. Developer's Engineer should provide required water main extension design to tie to existing 6" main in Windward Way, as part of extension design. (Approximately 901) 11. Developer's Engineer should provide profile detail from south property line southerly to north edge of existing pavement. (Approximately 1201) 12. The City will extend the water main to complete loop and will pave and curb road extension. 13. The fire hydrant at the south property line required in the Council resolution, can be eliminated. 14. The sidewalk and boulevard landscaping is only required on the easterly side of the street. (a point of clarification) 15. Bottom of dry well should allow drainage through "French Drain Structure." It is staff's recommendation that council adopt the Planning Commission findings of fact, acknowledge and make part of the record the 15 additional points outlined in the Engineering memo and approve the Conditional Use Permit for this project. There was brief discussion. Granmo moved that council adopt the Planning Commission findings of fact, acknowledge and make part of the record the 15 additional points outlined in the Engineering memo and approve the Conditional Use Permit for this project. The motion was seconded. The motion carried with a vote. Cervantes APDeal Williams received a letter concerning Cervantes' appeal rights. He referred the letter to the city attorney for a response and suggested council wait until the attorney has had an opportunity to respond before any further discussion. 04R.4 484 STAFF REPORTS Budget Work Session Thursday 8/6/92 7:00 Special Meeting 8/10/92 7:00 p.m. Next Regular Work Session 8/10/92 following Special Meeting Next Regular Council meeting 8/17/92 7:00 p.m. ADJOURN The meeting was adjourned at 9:OO p.m. 9"�M DouglAb D. Rauthe, Mayor ATTEST: I a4IZZ2- Amy H. Robertson, Finance Director Debbie Gifford, Clerk of Council Ap >r_cved 8/1 7/92