02/03/97 City Council Minutes975
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A REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:00
P.M. MONDAY, FEBRUARY 3, 1997, 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 CLARENCE KREPPS WERE PRESENT.
Mayor Rauthe called the meeting to order and led the Pledge of
Allegiance.
AGENDA APPROVAL
Haarr moved to approve the agenda. The motion was seconded.
Resolution 4307 was tabled to this meeting but will allow it to die
and address at a later time with a new number.
Krepps requested the deletion of Item E.
The motion carried upon vote.
CONSENT AGENDA APPROVAL
A. Council Minutes -Regular Meeting -January 21, 1997
B. Approval of Claims per Payables Register-$217,576.46
C. Authority to Request for Proposals -Hwy 93 South -Water and
Sewer Extensions
D. Authority to Begin the Selling Process for Daley Field
E.
F. Authority for Spring Creek/Meridian Road Drainage Study
Contract
G. Greenacres Refund Requests
H. Proclamation -Famine Weekend -February 7-9, 1997
Mayor Rauthe proclaimed February 7-9th as Famine Weekend.
Collins moved to approve the consent agenda. The motion was
seconded.
There was discussion about several claims.
Nystul expressed reservations about Item D.
Upon vote the motion carried with Nystul voting against.
HEARING THE PUBLIC
Sale of Haven Field
Dan Johns, 216 North Riding Road, encouraged Council to pursue one
of the offers for the sale of Haven Field.
Sale of Daley
Jim Lynch,
Fields
Hills Lane,
Airport
Advisory Board, spoke on
430 Lake
behalf of
Central School
the board
Museum
in favor of
the sale
of the Daley Fields.
Delores Swanberg, 154 Point Caroline Road, Northwest Montana
Historical Society, thanked the Council for their support and gave
an update.
Atkinson moved to approve the final plat for Teton Terrace. The
motion was seconded.
The motion carried with a vote.
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Woodland Court Final Plat
Atkinson moved to approve the final plat for Woodland Court. The
motion was seconded.
With a vote the motion carried.
Resolution 4314-Authorize Land Purchase
Kennedy moved Resolution 4314, a resolution relating to the
acquisition of Lots 15, 16 and 24, Block 36, Kalispell Original
Townsite from Westfield Properties, Inc., A Utah Corporation or as
assigned, establishing a fair market value, identifying the
interest to be acquired, and certifying that the work of the
appraiser has been done in a competent manner. The motion was
seconded.
Haarr moved to amend the resolution that at the time of the sale
an offering for sale of the aforementioned property be prepared and
advertised at the appraised value with the ability of Council to
negotiate with any prospective buyers who submit bids. The motion
was seconded.
There was discussion with Atkinson, Kennedy, Rauthe, Collins and
Larson speaking against the amendment and Haarr, Granmo, Donahue
and Nystul speaking in favor.
The amendment failed with Haarr, Granmo, Donahue and Nystul voting
in favor and Atkinson, Kennedy, Rauthe, Collins and Larson voting
against.
There was more discussion and Mr. Mendenhall answered questions.
With a roll call vote the motion carried with Atkinson, Collins,
Granmo, Haarr, Kennedy, Larson, Nystul and Rauthe voting in favor
and Donahue voting present.
Golf Course Lease
This issue has been a long term, ongoing item. Krepps has had
several discussions with the KGA representatives. These
discussions have resulted in several proposals being submitted,
reviewed, and rejected from both sides. Mr. Dunfee and Krepps have
arrived at a proposed lease that both feel comfortable in
presenting to the respected governing boards.
Krepps submitted a draft copy of the lease for Council review and
an example of the three-year rolling average for revenue history at
the last work session.
The lease proposal has been formulated by three City Managers and
the City Attorney. When Krepps started, a format was already
presented to the KGA representatives with several items already
agreed upon. Therefore, many of the items were not negotiable from
the time he began the discussions. They were able to impact the
following major items:
1. Reduced term of lease from 25 years to 20 years;
2. Continue the existing definition of Gross Receipts;
3. Rent basis based upon a minimum payment of $13,000 with an
escalation clause to 2% from $750,001 to $850,000 to a maximum
rate of 2.5% for gross receipts above $850,001.
Added a 3 year "rolling average" for the basis of the
rent calculation. This is desirable for both parties to
protect from large annual fluctuations. This will
maintain some control over peak or extremely low income
years.
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4. Eliminated the City responsibility for capital improvement
obligations in the event the lease is terminated.
S. Maintained reporting requirements for improvements less the
$25,000 and the approach of the Council for improvements
beyond $25,000.
6. Added City's ability to audit the financial records of KGA at
the City's cost.
7. Added City's ability to increase liability insurance
requirements if State raises maximum liability statutes.
8. Continued current fire insurance as City's responsibility.
9. Deleted five year dispute resolution clauses. Disputes will
be settled through negotiation when/if they arise.
This is not the bottom line that was desired by the City or the
KGA.
Krepps felt this draft lease was equitable for both parties. Upon
review of the KGA income stream, the existing lease proposals, the
revenue trend, and the need for improvements at Buffalo Hill, this
is the type of lease that protects the City, increases the revenue
stream, allows KGA to be profitable, allows us to share in the good
years, protects both parties' long term goals; encourages
improvements to the course to increase playability, increase
clientele for the Golf Course, and expand exposure for the
community.
The KGA lease committee has reviewed the lease and has agreed to
these terms. This will require a vote of the public at the general
election in November, 1997 to formally ratify the lease agreement.
Larson moved the Council ratify the newly negotiated lease between
the City of Kalispell and the KGA. The motion was seconded.
Larson, Rauthe and Kennedy spoke in favor.
The motion carried with a vote with Atkinson voting against.
Two bids were received and opened on January 301h as follows:
Regency Inn
Outlaw Inn
$725,000
$738,700
$37,000
$37,000
Both developers will be prepared to have answers for any unanswered
questions and specific language what they will do and when they
will do it, agreeing to minimum valuations, and minimum tax
payments or in lieu of payments.
The bids will be evaluated by Council at the next work session to
determine which proposal to accept.
Krepps encouraged Council to let him know of any questions so they
can be answered at the next work session.
3 on 3 Basketball -Close Streets
Parks Director Mike Baker, received a request from Russ Linnell to
close a portion of 13' Avenue West, and Vt Street West to stage a
3 on 3 Basketball Tournament sponsored by the Chamber of Commerce
and the Downtown merchants May 30 through June 1.
Linnell answered questions.
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Krepps concurred with the request and the desire to utilize the
streets for this event. The clean-up, control, and insurance
coverage will be provided by the event sponsors.
There was discussion.
Granmo moved to approve the request for the 3 on 3 after approval
by City Staff. The motion was seconded.
The motion carried with a vote.
Teen Court
Kennedy gave an update on Teen Court and announced there will be a
meeting on Wednesday for anyone interested at 5:00 p.m.
Public Works Director
Krepps announced the new Public Works Director has been hired. His
name is James Hansz and will begin working on March 10`".
Court Computer
Krepps also noted the City Court computer has been installed and
currently being worked on.
FOR YOUR INFORMATION
Next Work Session February 10, 1997 7:00 p.m.
Next Regular Meeting February 18, 1997 7:00 p.m. (Tuesday)
ADJOURN
The meeting was adjourned at 8:20 p.m.
Dougl s D. Rauthe, Mayor
ATTEST:
klod,M
Debbie Gif MC
Clerk of Cou
Approved 2/18/97