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02/20/96 City Council Minutes0839 1 1 839 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 I 840 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. 1 1 1 0 8 4 1_ 841 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. ()1 84`i 842 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. 084`3 843 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. I O'S44 844 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. I/i �.09IMPIRIAM1.502? 1".. PWIW,� kils D. Itauthe, ATTEST: Cry) 0. Debbie Giff CMC Clerk of Council Approved 3/4/96