09/15/97 City Council Minutes1070
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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:
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Nordwick, Denning, and Downey
Ron Foltz
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$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.
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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.
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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.
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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.
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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
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Dougla D. Rauthe, Mayor