08/03/92 City Council Minutes047
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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%
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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.
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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.
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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.
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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.
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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