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02/03/97 City Council Minutes975 975 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. 976 976 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. 977 1 1 1 977 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. 978 978 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