02/20/96 City Council Minutes0839
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A REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:00
P.M. TUESDAY, FEBRUARY 20, 1996, IN THE COUNCIL CHAMBERS AT CITY
HALL IN KALISPELL, MONTANA. MAYOR DOUG RAUTHE PRESIDED. COUNCIL
MEMBERS JIM ATKINSON, CLIFF COLLINS, NORBERT DONAHUE, LAUREN
GRANMO, DALE HAARR, PAM KENNEDY, DUANE LARSON, GARY NYSTUL, CITY
ATTORNEY GLEN NEIER AND CITY MANAGER BRUCE WILLIAMS WERE PRESENT.
Mayor Rauthe called the meeting to order and led the Pledge of
Allegiance.
AGENDA APPROVAL
Nystul requested the addition of a report on the Solid Waste
District.
Collins moved to approve the agenda with the addition. The motion
was seconded.
Haarr moved to amend the motion to add to the agenda the discussion
of the preliminary budget guidelines under Business from Mayor and
Council. The motion was seconded.
The amendment carried with a vote.
The amended motion carried upon vote.
A22rove Minutes -February 5, 1996
Haarr moved to approve the minutes.
The motion carried with a vote.
A2prove Claims Ber Payables Register
Atkinson moved to approve the claims.
Upon vote the motion carried.
ADDRESSING THE COUNCIL
The motion was seconded.
The motion was seconded.
State Lands Letter
Dan Johns, 216 N. Riding Road, Ballfield Relocation Committee, and
Pee Wee Baseball, encouraged the Council to proceed with the letter
to the Department of State Lands in order to begin the process. He
felt this would be an investment in the community and one we can't
go without.
Art Thompson, Lakeside, Airport Advisory Committee, spoke in favor
of the ballfield relocation and State Lands letter.
city Manager
Jerry Begg, 220 Woodland, urged the Council to consider waiting
until the Study Commission submits their recommendation before
replacing the city manager.
There was discussion.
Ballfield Relocation
State Lands Letter
The following also spoke in favor of the Airport and Ballfield
Committee recommendation and encouraged the Council to support the
letter to State Lands:
Mike Kelly, 2210 North Mission Drive, KYSA, Pee Wee baseball
Rich DeJana, 422 Summit Circle, GKYSA
There was also discussion of an interlocal agreement with the
County.
David Dachs, 335 Summit Ridge, KYSA
Randall James, 1037 1st Avenue East, Montana Pilots Association
Bob Reso, Tally Lake Road, Whitefish, Chamber of Commerce President
elect
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Roy Beekman, 182 Morning View Drive, Babe Ruth President
ORDINANCES & RESOLUTIONS
A few weeks ago the Council elected a new Council President by
secret ballot as set forth in S 2-4 of Ordinance 1166. Later the
Council discussed whether or not the election of the President
should be conducted yiva voce as required in S 7-5-4121, MCA. The
City Attorney prepared Ordinance No. 1236 and Council passed the
first reading at the last meeting.
Larson moved Ordinance 1236, an ordinance amending Section 2-4,
Ordinance 1166, by requiring elections for President of Council be
conducted viva voce. The motion was seconded.
The motion carried unanimously with a roll call vote.
BUSINESS FROM MAYOR & COUNCIL
Mayor Rauthe explained that a proposal was received from Carl
Becker Co., Inc. of Denver to provide an interim city manager for
the City of Kalispell while the City recruits a new city manager.
Becker has offered the services of Al Thelen, a former manager in
Helena and Billings for a fee of $6,000 a month, reimbursement for
actual housing expenses and the availability of an automobile for
City business.
Another local figure would also be available to serve as interim.
An option of selecting someone from the current staff, if anyone is
willing to accept the challenge and invited to do so by the
Council.
He felt it was critical and important as Bruce Williams leaves
March 8th and he recommended they be overlapped if at all possible.
There was discussion.
Collins suggested City Attorney Neier act as interim as he has in
the past in Bruce•s absence.
There was discussion.
Kennedy spoke in favor of the Becker & Co. proposal and was against
City Attorney Neier filling in.
Donahue and Haarr spoke in favor of Neier.
Nystul spoke in favor of Neier but suggested holding a special
meeting next Monday to make a formal decision based on a report
from Neier on the logistics.
Larson agreed with Donahue.
Kennedy agreed with Nystul and the report from Neier.
It was consensus to hold a special meeting next Monday, February
26, 1996 concerning this issue.
Atkinson noted he would be absent on the 26th.
Solid Waste Board Update
Nystul reported the Board has decided to advertise the director
position again, as the Commissioners no longer want the Board to
consider privatization. He also noted there will be a hearing at
the meeting next Tuesday regarding the rate charged for
construction rubble.
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Decorative Brick
Collins requested the status of the decorative brick problem.
Williams explained.
DUE TO THE AUDIENCE INTERESTED IN THE OUTCOME OF THE STATE LANDS
LETTER IT WAS MOVED UP TO THIS POINT ON THE AGENDA.
State Lands Letter
Williams explained the proposed letter from Mayor Rauthe to Jeff
Hagener, Land Division Administrator, Department of State Lands.
The letter has been proposed by the "Which Way Kalispell" Committee.
The letter notifies Department of State Lands of the City's desire
to enter into a lease of 160 acres of State land north of the City
upon which to construct athletic fields. The letter outlines the
reasons for the request and feasibility. The letter will be mailed
upon approval of the City Council.
Atkinson moved to direct the mayor to send the letter dated
February 20th to the Department of State Lands with the correction
on page 4, first sentence, to correct the dollar amount from
$50,000 to $5,000. The motion was seconded.
There was discussion.
Haarr noted the City has addressed the issue that the County and
the School District could or should possibly be players and should
be approached concerning the issue.
Collins and Atkinson spoke in favor of the motion.
Granmo and Donahue spoke in favor of the concept but not the
commitment.
Larson called for the question and withdrew it.
Kennedy spoke in favor of the project and the letter.
There was more discussion.
Rauthe spoke in favor of the letter.
Upon vote the motion carried with Donahue voting against.
BREAK-9:25 P.M.
MEETING RESUMED 9:35 P.M.
BUSINESS FROM MANAGER
Lawrence Park Wetland Mitigation
Rebuilding Highway #93 from Somers to Whitefish requires that MDOT
arrange for mitigation of destruction of wetlands involved in the
project. The development of Lawrence Park may benefit because of
the mitigation requirement. MDOT has suggested a contract between
MDOT and the City whereby MDOT will grant to the City the sum of
$50,000 for construction costs in connection with creating
approximately 2 acres of wetland in Lawrence Park. Mike Baker
submitted a memo and a 2nd draft of a proposed contract. Under the
contract the City would be responsible for construction
administration and inspection. Williams recommended Council
approve the contract necessary to authorize the project.
Atkinson moved to approve the contract that is necessary to
authorize the Lawrence Park Wetland Mitigation project. The motion
was seconded.
There was discussion.
Haarr spoke in favor of the motion.
With a vote the motion carried.
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Discussion of Preliminary Budget
Haarr moved to instruct the City Manager to work with the Finance
Director to prepare the 1996-97 Preliminary Budget to reflect a 20
mill reduction. The motion was seconded.
Kennedy requested the Finance Director speak to the issue.
Finance Director Amy Robertson noted she had been working on
personnel schedules and it reflects that police, fire and union
raises will need approximately 4 more mills and a couple more mills
in the Comp Insurance Fund, probably 1 in the Retirement Fund so to
cut 20 out of the General Fund and move another 5 to those other
funds, it would be a half a million dollar cut in the general fund.
She needs to know if Council wants to cut reserves or budget.
There was discussion.
Donahue spoke in favor of the motion.
There was more discussion.
Kennedy moved to amend the motion setting Staff with marching
orders of attempting to lowering the mill levy by 5 mills. The
motion was seconded.
Donahue called for the question.
With a vote the amendment failed with Atkinson, Kennedy, Larson and
Rauthe voting in favor.
Rauthe said Kalispell is the 2nd fastest growing city in the State
of Montana. This City had $56 in reserves when the city manager
came on board and has built healthy reserves that are still no
where near what the State statute allows. We are in a position of
being able to pay the bills without borrowing money. And have been
able to do a street program that is substantial without bonding,
other communities have bonded 10 million. When they bond you pay
extra to get your streets done. As much as we have had a street
maintenance program, that is exceptional, snow removal that is
exceptional compared to any other city in Montana, leaf and garbage
pickup. We have embarked on an ambitious program with Central
School to save a landmark and we have made some commitments along
those lines. We have finally accepted and ordered in a master plan
for Lawrence Park and it costs money. We have put substantial
investments in public restrooms and it costs money. We've got
projects and commitments that have taken 5 years to develop with
the consensus of this Council. We have invested money up front in
developing those programs at the encouragement of this Council.
This Council is the responsible body for approving each of the
budgets that have been approved.
The 1990 or 1991 budget was not prepared by this Council or the
City Manager. We inherited them. The 1992 budget was the first
one that took this form and the first one that was legible in the
history of this City by all citizens of this City. It was
understandable and included everything honestly and up front. It
included opportunities that we had from large grants that we
brought into this community, some large dollars that came back in
UDAG payback, a loan payback from Kalispell Center Mall. Those
dollars were not reported as part of the budget in years past.
They were here and available in the budget, but not in the budget.
Now we have the budget and it has all of the dollars in it. If you
look what the value of the mill was in 1986, the value of the mill
went down until 1993. This City suffered by not being able to
provide minimum equipment replacement, adequately compensate their
employees, numerous other impacts on the community. Opportunities
were lost because we could not afford it. Opportunities that were
delayed because we could not afford it. As gambling revenue
increased beyond expectations, it also gave us an opportunity to go
forward with the street program.
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TIF monies and gas tax revenues were adequate and gave us the
opportunity to go forward with the street program.
We did not bond to improve the streets of Kalispell but we did the
job that a large bond would have had to been sold and the taxpayers
would have had to repay over the short term. We have been able to
match some significant grants by having adequate cash flow and the
Parks Department has done a marvelous job in developing our parks
over the last 4 or 5 years and developing recreation programs for
the citizens to participate in.
We have replaced equipment that was 30 and 40 years old that people
could literally push their feet through the floorboard in any given
spot and we have upgraded equipment and computers that had to be
upgraded and replaced. We have exceeded the capacity of the old
equipment and there was no option, we had to do it and we did it.
There are opportunities that are still ahead of us that we have
included in our goals each year. I would be greatly disappointed
if we blame Bruce for the level of our budget because there is no
blame to be laid on the city manager for that. We approved each
and every one of those. I would be disappointed if the tremendous
amount of investment and work that we have put into getting to the
certain spots that we are with various programs is shut and thrown
down the tubes by pleading poor mouth and saying that we cannot
afford to finish an investment that we have already put money into.
I believe that this community is proud of itself, that this
community invests in itself and I think that is obvious from the
private investment that has gone into match any investment that we
have been able to manage in the form of grants. Your community is
dynamic, it's alive, it's the place that people want to live.
Our sister government down the street gets accused of pleading poor
mouth every time there is a good opportunity so they don't have to
make a decision. I don't think that is always a fair rap but I
don't think it should be the first excuse either.
I think that we need as good stewards, to look at the opportunities
for lasting investments for this community so that it will continue
to be a nice place to live. I cannot believe that an arbitrary
number like 20 mills is the starting point for this discussion. It
boggles my mind. It would seem to me the starting point for this
discussion would have been a work session next week or last week or
over the weekend, where we all have our budget document and we went
down and let Norb pick out the $100,000 that he thought should have
been cut and Jim could pick out however much he thought could have
been cut and Lauren and Dale could too and show us where is a
realistic place to start. If we agree we are going to cut
something, then let's let it be realistic. Let's not put the
burden of telling Dale that you are going to live on half your
income for the next year, where are you going to cut and then going
back and say we were just teasing, you get to live on 90% of it,
but we wanted to find out what you would do if you knew you were
going to live on half of it. I think we need to be realistic if
the department heads are going to be without a city manager for 4
months and Glen is going to be tasked to fill in we ought to be as
realistic as we can with what we can really do and continue to do.
Like the restrooms that we have committed to do in Lawrence Park
and some of the other improvements that we have committed to around
the community and the program of completing the streets and
starting the maintenance program and those kinds of things.
To go to 20 mills, $420-440,000 in a fell swoop, not accounting for
inflation and not accounting for other costs, insurance and
obligations that we have no choice, we have to fund those things,
it doesn't seem like a logical businesslike way of approaching the
solution. I don't believe that in your counseling of small
businesses you would ever start that way.
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I think that what you would do is go through a realistic scenario
and projections over a what ever period, you would look at
realistic projections. You wouldn't just start off by telling a
new business owner -you have to live on $440,000 less or some
similar ratio. You develop these things logically and if we can
find $100,000 that we all agree that we could probably get along
without that, then let's do that, but $420,000, just arbitrarily,
it doesn't flow with me. I don't see it, I'm really proud of what
we have done over the last 5 years and the accomplishments that
we've made and I can't believe that we would do this arbitrarily
and then say to the world -we are ready for economic development in
our community.
We are doing things progressively and we are recognizing the growth
that we have had in our community and we are proud of ourselves and
we're going to stay a quality place. That doesn't say it, that
doesn't buy it. We are already, in Kalispell, percentage wise
nearly 10%, 8.5% under our allowed mills. I don't know of another
community in Montana that does that at all. They max out and we're
not. We are in a blessed position because we do have some
additional revenues but we are not taking advantage of it, we are
not maxing out if you will.
Kennedy moved to table the motion until March 18th, so to allow 2
work sessions to be able to work with this and allow us enough time
individually to look at the budget from last year and then be able
to come forward with an amended motion or this motion at that point
on March 18th and send Staff off with the marching orders. The
motion was seconded.
The motion failed upon vote with Atkinson, Kennedy, Larson and
Rauthe voting in favor.
There was lengthy discussion.
City Manager Williams expressed the urgency of this decision and
the importance and necessity of the department heads to have a
manager help them with the cuts to be made.
Kennedy moved to table until next
go into Special meeting and go
The motion was seconded.
The motion carried with a vote.
week at the work session and then
forward with this tabled motion.
STAFF REPORTS
Next Work Session February 2.6, 1996 7:00 p.m.
Special Meeting February 26, 1996 to follow work session
Next Regular Meeting March 4, 1996 7:00 p.m.
Conrad Mansion ReRort
Donahue submitted an annual 1995 report from the Conrad Mansion.
City ManagerPotluck/Reception
Rauthe announced the potluck being held for the city manager on
Monday February 27th from 11:00-2:00 and the reception at the
Outlaw Inn in his honor on March 8, from 5:30-7:30 p.m.
ADJOURN
The meeting was adjourned at 10:20 p.m.
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kils D. Itauthe,
ATTEST:
Cry) 0.
Debbie Giff CMC
Clerk of Council
Approved 3/4/96