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09/15/97 City Council Minutes1070 1070 A REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:00 P.M. MONDAY, SEPTEMBER 15, 1997, IN THE COUNCIL CHAMBERS AT CITY HALL IN KALISPELL, MONTANA. MAYOR DOUG RAUTHE PRESIDED. COUNCIL MEMBERS JIM ATKINSON, CLIFF COLLINS, NORBERT DONAHUE, JOHN GRAVES, 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 Kennedy moved to approve the agenda and to move #7 to after Hearing the Public and to include the McPeek letter in regard to a community facility that was an FYI item as item 9. The motion was seconded. Haarr moved that items C, E and F be put into the regular items on the agenda. The motion was seconded. Collins and Larson spoke against, Haarr and Donahue spoke in favor. There was discussion and the motion failed with Haarr, Donahue, Graves and Nystul voting in favor and Kennedy, Larson, Collins, Atkinson and Rauthe voting against. There was discussion and the original motion carried with Haarr and Donahue voting against and Graves, Nystul, Larson, Collins, Kennedy, Atkinson and Rauthe voting in favor. CONSENT AGENDA APPROVAL A. Council Minutes -Regular Meeting September 2, 1997 B. Approval of Claims per Payables Register-$355,636.81 C. Bid Awards -Police Patrol Car and Staff Car Patrol Car Four bids were received as follows: Don K Chevrolet 1998 Chevy Tahoe $30,000.00 Scarff Auto Center 1998 Jeep Cherokee $21,069.00 DePratu Ford Sales 1998 Ford Expedition $28,783.06 Eisinger Motors 1998 Chevy Tahoe $29,910.15 After evaluation Chief Clark recommended the bid award to Eisinger Motors with the deletion of trailering special equipment and the front/rear air conditioning package in the amount of $28,976.00 and the extended warranty for $2,135.00 Four bids were received as follows: Don K Chevrolet 1998 Chevy Lumina $19,000.00 Scarff Auto Center 1998 Jeep Cherokee $21,069.00 DePratu Ford Sales 1998 Ford Taurus $18,360.85 Eisinger Motors 1998 Chevy Lumina $18,960.00 Clark recommended the bid from Eisinger Motors for $18,267.00 which includes the deletion of electric mirrors and the extended warranty for $1,030.00. There was discussion. D. Audit Proposal Recommendation Two bids were received for the required audits as follows: 1071 Nordwick, Denning, and Downey Ron Foltz 1071 $12,000 $12,600 $13,200 $15,500 $16,000 $16,500 Finance Director Amy Robertson recommended to hire Nordwick,_ Denning, and Downey to provide audit services through the 1999 budget cycle. Nystul moved to modify the recommendation to accept the proposal of Ron Foltz rather than Nordwick, Denning, and Downey. The motion was seconded. There was discussion with Kennedy, Rauthe and Larson speaking against and Nystul and Haarr speaking in favor. With a vote the motion failed with Nystul and Haarr voting in favor and Donahue, Collins, Larson, Kennedy, Atkinson, Graves and Rauthe voting against. E. Authorization to Bid Central School Project Donahue spoke against Item E being on the Consent Agenda. The Architect is now moving into the intensive stage of preparation of plans and specifications. To make certain that the City does not pay unneeded funds in the event that this project does not go forward, and since there were no changes or concerns, Krepps requested authorization to proceed with the bid documents and bidding procedures. The City has the Option to Lease Agreement that requires the $250,000 cash be earmarked only for the purpose of maintenance and operation of the museum. A letter was received from Glacier Bank stating the money is there and available and a letter from Delores Swanberg states it is there for the use and can only be released for the use of operation and maintenance of the Central School. Kennedy congratulated the Historical Society for earning the $250,000 in such a short time. F. Authorization to Advertise/Offer National Flood Service Property Since the publication to offer the college property was completed prior to the purchase of the National Flood property, there is some question whether the City can offer this property for sale as a part of the total holdings in the Urban Renewal area or not. This possible technical flaw needs to be corrected by advertising the property for maximum flexibility. This will allow the City to sell the property in three types of options: 1. National Flood Service building site only; 2. Lot 15 and 16 combined; or 3. Combination of items 1 and 2. Lots 15 and 16 should not be split due to the implications this would have in terms of the inability to build on these lots. There was discussion. Collins moved to approve the consent agenda. The motion was seconded. Upon vote the motion carried with Donahue voting against. 1072 1072 HEARING THE PUBLIC Communi ty Faci 1 i ty T.P_tter of Re .s Earl McPeek, 311 Kelly Road, noted he was available for any questions regarding his letter of request. KDC Site David Irwin, Redmond, Washington, was present to answer any questions. Daley Field Site Jerry Hagood, Rosauers, Spokane, wanted to be available for any questions. Larry Geller, Rosauers, thanked Kalispell for the 28 years and was here to answer any questions. Lee Berger, 208 Riverview Drive, KDC President, encouraged Council to strongly support both proposals, KDC and the Daley Field Site. Dave Thornquist, 132 Troutbeck Rise, Lakeside, also spoke in favor of both proposals. Gordon Pirrie, spoke in favor of both proposals also. R sol u _ion 41AA-Tmmanupl Lutheran Home Bonds Atkinson moved Resolution 4364, a resolution relating housing facilities revenue bonds (Immanuel Lutheran Corporation Project), Series 1997A, and Health Care Facilities Revenue Bonds (Immanuel Lutheran Corporation Project), Series 1997B; making findings, confirming the sale and issuance of the bonds, establishing the security therefore and authorizing the execution of documents. The motion was seconded. The motion carried upon roll call vote with Atkinson, Collins, Donahue, Graves, Haarr, Kennedy, Larson, Nystul and Rauthe voting in favor. R_soluion 436 -irwin Proposal-KDC Site The final Staff recommendation for the Irwin Davis Company's proposal for this project has been negotiated to a different proposal that: 1. Eliminates the City as a lessor. 2. Includes earnest money. 3. Meets the minimum of $6.65 per square foot as required in our prior advertisements. 4. Does not include National Flood Property (building site or parking areas). The advertisement of the National Flood property as proposed in the Consent Agenda will allow Irwin Davis to bid on the property if they so decide. 5. Continues to reflect a deduction of the brokerage fees as a deduct from our purchase price. 6. Retains the contingencies that the City will relocate the above ground utilities and complete the other improvements within the street right-of-way, i.e. landscaping, sidewalks, etc. Krepps concurred with the recommendation of the KDC Executive Board and the PECDD, Director that this project should move forward to achieve some of the long term goals of the Urban Renewal Plan. He would prefer the broker's fees be removed. 1073 1073 Larson moved Resolution 4365, a resolution authorizing the sale of Lots 1 through 14, Block 36 and Lots 1 through 4 and the northerly 7" Lot 5, Block 45, Kalispell, Flathead County, Montana, to Kalispell Center Partners, a partnership, and authorizing the City Manager to enter into a development agreement with Kalispell Center Partners. The motion was seconded. Donahue moved to amend the motion on Section II, last page, "not less than $419,495,00011, be changed to $394,323.46, which eliminates the broker's fee. The motion was seconded. Kennedy spoke against the amendment and would prefer staff negotiate the removal of the City paying for the broker's fee at closing and that become a cost of the purchaser and leaving the purchase price of the property at the $419,495,000. Collins agreed. There was discussion. Donahue and the second agreed to withdraw the motion to amend if it is clear that Council stands firm not to pay the brokerage fee. It was agreed and the motion was withdrawn. With a roll call vote the motion carried with Collins, Donahue, Graves, Haarr, Kennedy, Larson, Nystul, Atkinson and Rauthe voting in favor. RpsQ i_ion 4166-Bid Award -Daley Field -Authorizing the Sale The KDC and the staff recommend the sale of the 5.25+ acres to Rosauer's. Upon the completion of that sale, then re -offer the balance of the property. This sale will allow the City to leverage the upgraded value of this sale to increase the value of the balance of the 15.6 acre parcel. with other potential developers knowing that a supermarket will be constructed on this site, the other parcels should be more attractive. The same type of development proposals may be received, but the City should, with a final product and after the sale of the entire parcel, net more proceeds for the land than with the King Management, Inc. proposal. (As a side note, this project will allow the,ballfields to be used by legal agreement, during the 1998 season.) Kennedy moved Resolution 4366, a resolution authorizing the sale of a portion of the NW 1/4, Section 20, Township 28 North, Range 21 West, Flathead County, Montana to Rosauers Supermarket, Inc., and authorizing the City Manager to enter into a development agreement with Rosauers Supermarket, Inc. The motion was seconded. Atkinson, Kennedy and Haarr spoke in favor. Nystul spoke against, he felt no property should be sold until the airport study' is completed and Donahue suggested leasing rather than selling. There was more discussion and Larson called for the question. The motion carried upon roll call vote with Atkinson, Collins, Donahue, Graves, Haarr, Kennedy, Larson and Rauthe voting in favor and Nystul voting against. Discussion of City Attorney Opinion of Ballfieldc Neier explained the City's commitment does not contain enough dollars to do the work that is probably going to be required, so there will have to be other methods of financing or doing that work and he pointed out some of the problems that are going to be encountered by the use of volunteer labor and/or materials to complete the job. He said if volunteers are going to be used for this project, there has to be insurance requirements that have to be met. 1074 1074 The difference between this project and others where volunteers were utilized is that this is a specific contract with a time line. Krepps has signed the contract as directed by previous Council action, with the engineers to design the youth complex. He suggested the prudent way to proceed with this project is to complete the plans and specifications for the complex. At that time determine what items can be completed by the City and what may be done by volunteer work. He felt the City can coordinate a project with a great amount of value added to the project by volunteers (Both small projects and major portions of the project). Protection of the City's responsibilities, minimizing the liabilities, and fulfillment of the community vision should be the ultimate goal for all parties of this project. There was discussion. Neier stated that if there is volunteer labor and someone gets hurt, there would be a tremendous amount of liability on the part of the City, he just wanted to warn Council before hand. Resolution 4'161-S ulhmi r rrant Applications for a rnmmunitv DevP1npment Block ran and a HOMF P ogr m rranf Larson moved Resolution 4363, a resolution authorizing submission of applications to the Montana Home Investment Partnerships (HOME) Program and a Community Development Block Grant (CDBG) and agreement to certifications for applications for the purpose of receiving funds on behalf of Samaritan House. The motion was seconded. With a roll call vote the motion carried with Atkinson, Collins, Donahue, Graves, Haarr, Kennedy, Larson, Nystul and Rauthe voting in favor. Ha_mmera i s t Rerni eG t Carl Hammerquist requested extension of Sewer Service Connections. This property lies along the Stillwater River west of the Burlington Northern Railroad tracks and east of the gravel pit of McElroy and Wilken. Krepps and Staff recommended against any consideration of this sewer connection request. This property is a considerable distance from the municipal boundaries, not contiguous, and, even more important, annexation of this area will not happen unless or until the entire Evergreen annexation question is resolved. Atkinson moved the Hammerquist request be denied. The motion died for lack of a second. Haarr moved the Hammerquist request be accepted. The motion died for lack of a second. Nystul abstained from discussion. Haarr spoke in favor of the request. There was discussion. Kennedy moved to deny the Hammerquist request. The motion was seconded. There was more discussion. With a vote the motion carried with Kennedy, Atkinson, Larson, Donahue, Graves, Collins voting in favor and Haarr voting against and Nystul abstaining. 1075 1075 McPeek of Re(piect Kennedy read the letter from Earl McPeek requesting a letter of support from the Council for his endeavor to construct a multi purpose arena in the area of Flathead Valley Community College. He stated he was not requesting financial help from the City just a letter supporting the project for the financial institution. McPeek summarized the proposed project. There was discussion and consensus to send the letter. FOR YOUR INFORMATION Next Regular Meeting October 6, 1997 7:00 p.m. ADJOURN The meeting was adjourned at 9:33 p.m. ATTEST: Debbie Gif o MC :Y Clerk of C n Approved 10/6/97 1 Dougla D. Rauthe, Mayor