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07/21/97 City Council Minutes1048 1048 A REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:00 P.M. MONDAY, JULY 21, 1997, IN THE COUNCIL CHAMBERS AT CITY HALL IN KALISPELL, MONTANA. MAYOR DOUG RAUTHE PRESIDED. COUNCIL MEMBERS JIM ATKINSON, CLIFF COLLINS, NORBERT DONAHUE, 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. Krepps requested the withdrawal of items 6 and 7. Nystul requested the addition of item 15, Business from the Council. The motion carried upon vote. CONSENT AGENDA APPROVAL A. Council Minutes -Regular Meeting -July 7, 1997 B. Approval of Claims per Payables Register-$267,558.85 C. Oretana Final Plat D. MDOT Approach Application/Permit E. Pledged Securities June 30, 1997 Collins moved to approve the consent agenda. The motion was seconded. Upon vote the motion carried. HEARING THE PUBLIC Housing Assistance Carol Elkin, Director of Housing for Northwest Montana Human Resources, told a human interest story of the success of housing assistance. Immanuel Lutheran Home Steve Cummings, attorney representing Immanuel Lutheran Home, spoke in favor of the Refinance Loan Agreement. Linda Hewitt, Director of Immanuel Lutheran Home, explained the plan for the bond proceeds. Friendship House Roof Laura Gebhardt, Friendship House, requested any assistance possible to help with the expenses of a new roof for the Friendship House. Central School Delores Swanberg, Lakeside, gave an update on Central School. PUBLIC HEARING 1997-98 Preliminary Budget Proponents None Opponents Bill Boharski, 1433 5th Avenue West Fred Hammel, 505 7th Avenue West Rich DeJana, 422 Summit Circle Rauthe closed the public hearing. 11 1 1049 1 1 1049 Kalispell Center Mall Krepps explained since the discussion at the budget workshop, the City has continued to negotiate with Barbieri's for the Center Mall Expansion. All three parties have agreed and is being reduced to a written agreement. A comparison of the major deal points follows: City's Original Position Contractual Cash Flow Participation $300,000 UDAG Loan Interest Differential $400,000 20% Participation in Refinancing $1,847,746 Proceeds from Sale of Street $89,100 UDAG Loan to Paid 100% Approx. $2.6 be million City budget to purchase improvements and demolish $1.6 million Crosswalk not included. Barbieri's will purchase land from Equity. Barbieri's will construct $6.134 million improvements. Improvements must be completed within 24 months. Barbieri's Original Current Agreed Position Position (No longer a $ 0 partner) Not an issue (No longer a $0 loan agreement) Not an issue (No loan proceeds $0 from Refinancing) Not an issue $0 $89,100 agreed City to abandon- to be deleted vacate -allow R.O.W. from City share to revert to paid to Equity- Barbieri's at Barbieri's will no cost. pay Equity the per foot value. UDAG Loan to be UDAG Loan to be Paid 100% Paid 100% Approx. $2.6 million Approx. $2.6 million within 30 months City must purchase City will purchase improvements and improvements from demolish Equity. City will $1.6 million not be involved in demolition $890,900 Crosswalk not Crosswalk & 3rd Ave. included. West agreed to be included in agreement. Barbieri's will Barbieri's will purchase land purchase land from Equity. from Equity. Barbieri's will Barbieri's will construct $6.134 construct $6.6 million improvements. million improvements. Improvements must be Improvements must be completed within 36 completed within 30 months. months. 1050 1050 City's Original Position All fees, regulations must be paid/followed by Barbieri's. Barbieri's shall not appeal tax for ten years (above new value of improvements). Barbieri's will pay difference of actual taxes generated vs. taxes granted by $6.134 million. If Barbieri's do not complete the $6.134 million of improve- ments within 24 months. They must pay the differential to City - 6 years. Barbieri's Original Current Agreed Position Position Barbieri's will pay difference of actual taxes generated vs. taxes granted by $6.134 million. If Barbieri's do not complete the $6.134 million of improve- ments within 36 months. They must pay the differential to City - 25 years. All fees, City regula- tions must be paid/ followed by Barbieri's. Barbieri's shall not appeal tax for ten years. Barbieri's will pay difference of actual taxes generated vs. taxes granted by $6.6 million. If Barbieri's do not complete the $6.6 million of improve- ments within 30 months. They must pay the differential to City - 12 years. Larson moved the city attorney and the city manager be instructed to proceed with the agreement and to approve the agreement contingent upon final language of the agreement. The motion was seconded. There was discussion. Donahue, Nystul and Haarr spoke against the motion. Rauthe, Kennedy spoke in favor of the motion. Collins called for the question. The motion carried with a vote with Larson, Atkinson, Collins, Kennedy and Rauthe voting in favor and Donahue, Nystul and Haarr voting against. Equity Supply Request to Abandon 2nd Avenue West North A letter of request for the closing of 2nd Avenue West North was received to assist in the three -party redevelopment agreement. As pointed out in the previous agenda item, Barbieri's will purchase the land from Equity as a package (including street right-of-way). The City will deduct $89,100 for the value of the street from the original amount offered to Equity. Nystul moved to publish the notice of procedure. The motion was seconded. The motion carried with a vote. Resolution 4345-City Service/Montana Gold Bullet Company Annexation Larson moved Resolution 4345, a resolution to provide for the alteration of the boundaries of the City of Kalispell by including therein, as an annexation, City Services, Inc./Montana Gold Bullet, Inc. Addition No. 282; to zone said property Light Industrial, I-1, to amend the City Zoning Map accordingly and to declare an effective date. The motion was seconded. With a roll call vote the motion carried with Atkinson, Collins, Donahue, Haarr, Kennedy, Larson, Nystul and Rauthe voting in favor. 1 1 1051 1051 City Service -Conditional Use Permit -Bulk Petroleum Storage After review of the conditions specified by the Planning Board, the City Attorney voiced strong concern about the conditional use and the fact that they did not specify life safety protection items strong enough. After further discussion with staff, the City Attorney negotiated with City Service to clarify and list the requirements within the conditional use for protection perimeters of this petroleum storage facility. A new conditional use permit was distributed that added a condition that reads: All development proceeding under this CUP shall be accomplished in accordance with the Uniform Fire Code, and National Fire Protection Association (Chapter 30), then in effect within the City of Kalispell. Haarr moved to approve the conditional use permit for City Service for bulk petroleum storage. The motion was seconded. There was discussion. Upon vote the motion carried. Resolution 4346-City Sponsorship of Grant for Golf Course The Buffalo Hill Golf Course has sustained considerable damage from the high river levels this spring. Upon inspection by Public Works Director Jim Hansz and Krepps, it is believed 'the City may be eligible for the Emergency Watershed Protection Funds. The KGA Management has requested that the City attempt to obtain these funds. To be eligible there are several criteria to meet, but the major items are: 1. A natural occurrence has caused watershed impairment, creating an imminent threat to life or property. The USDA is authorized to respond to this type of threat through technical assistance and/or funding. Reshaping and protecting eroding stream banks is a major factor in this program. 2. A sponsor must be a local government such as City, County, or State. A sponsor must have legal authority to receive Federal assistance, pass a resolution to apply for assistance, appoint a local contact, and provide assurance that funds are not available from other sources, and provide 25% cash as in -kind service. Educational guesses list the repair cost at $50,000. Krepps received a letter from Stephen Dunfee, Manager of the KGA, committing them to the 25% match for the repairs. The damage to the stream bank is considerable. If this is not corrected as soon as possible, continual damage from erosion may result in a complete breech of the golf course grounds. This would destroy much of the lower holes and the ability to operate. The Golf Course is City property, a community asset, and an important tourist draw. KGA is holding the City harmless by pledging the 25% match. Kennedy moved Resolution 4346, a resolution authorizing the City to apply for Emergency Watershed Protection Funds with the Natural Resources Conservation Service on behalf of the Kalispell Golf Association. The motion was seconded. The motion carried upon roll call vote with Atkinson, Collins, Donahue, Haarr, Kennedy, Larson, Nystul and Rauthe voting in favor. 1052 1052 Ordinance 1266-Meridian Offices Ltd Zone Change B-1 to B 2 1st Readina Based upon the Findings of Fact and no opposition stated at the meeting, the Planning Board unanimously recommended approval of the zone change. Larson moved Ordinance 1266, an ordinance to amend Section 27.02.010, Official Zoning Map, City of 'Kalispell Zoning Ordinance, (Ordinance No. 1175), by re -zoning property owned by Meridian Offices Ltd. And Leslie and Patricia Tinseth, described herein (previously zoned Neighborhood Business Zone, B-1 District), to B- 2, a General Business District, in accordance with the City -County Master Plan, and to provide an effective date. The motion was seconded. With a roll call vote the motion carried with Atkinson, Collins, Donahue, Haarr, Kennedy, Larson, Nystul and Rauthe voting in favor. Resolution 4347-Intent to Refinance/Loan Agreement Sponsorship for Immanuel Lutheran Home The Immanuel Lutheran Home has requested an agreement to allow them to issue an $8 million loan for refunding and refinancing the 1987 Series bonds and begin construction of additional improvements for the nursing facility. The City is the conduit for this type of bonding and have no liability or changes upon the general credit or taxing powers. The only effect is the use of an annual $10 million bonding limitations imposed by Federal law. Kennedy moved Resolution 4347, a resolution relating to a project and refinancing on behalf of Immanuel Lutheran Home and the issuance of Revenue Bonds to finance the costs thereof under Montana Code Annotated, Title 90, Chapter 5, Part 1, as amended; granting preliminary approval thereto and calling a public hearing thereon and establishing compliance with certain reimbursement regulations under the Internal Revenue Code. The motion was seconded. With a roll call vote the motion carried with Atkinson, Collins, Donahue, Haarr, Kennedy, Larson, Nystul and Rauthe voting in favor. Ordinance 1265-Sidewalk Amendment-2nd Reading This ordinance allows the staff authority to begin a permitting process for items to be placed upon City sidewalks. Nystul moved Ordinance 1265, an ordinance amending R.O. SS 962 (SS 24-6, Kalispell City Code) allowing obstructions of streets, alleys, public grounds, and sidewalks by permit, and declaring an effective date. The motion was seconded. The motion carried upon roll call vote with Atkinson, Collins, Donahue, Haarr, Kennedy, Larson, Nystul and Rauthe voting in favor. Ward III Council Position Appointment With the resignation of Lauren Granmo it is necessary to replace the position. Five individuals submitted resumes and were interviewed on July 14 by the other council members and the mayor. The individuals are Jerry Begg, John Graves, Fred Hammel, Sydnee Hill and Randy Kenyon. City Attorney Neier explained his research as to the procedure and recommended one name be read and the clerk call the roll until such time the first one to get five votes, will be the new council person. With a roll call vote Jerry Begg received 2 votes and John Graves received 6 votes. Rauthe congratulated Graves and announced he would be sworn in at the next meeting. 1053 1053 Business from Council Nystul requested some type of procedure for getting Council requested items on the regular agenda. Thgre was discussion and consensus to discuss at the next meeting. FOR YOUR INFORMATION Next Regular Meeting August 4, 1997 7:00 p.m. ADJOURN The meeting was adjourned at 8:55 p.m. Dougl s D. Rauthe, Mayor ATTEST: Debbie Gif 0r C Clerk of Co c ?kvproved 8/4/97