05/26/98 SP City Council Minutes1184
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A SPECIAL MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 12:00
P.M. TUESDAY, MAY 26, 1998, IN THE COUNCIL CHAMBERS AT CITY HALL IN
KALISPELL, MONTANA. MAYOR BILL BOHARSKI PRESIDED. COUNCIL MEMBERS
JIM ATKINSON, NORBERT DONAHUE, JOHN GRAVES, DALE HAARR, DUANE
LARSON, GARY NYSTUL, RON VAN NATTA AND DOUG SCARFF AND CITY
ATTORNEY GLEN NEIER AND CITY MANAGER CLARENCE KREPPS WERE PRESENT.
Mayor Boharski called the special meeting to order to discuss the
Employment Agreement between the City of Kalispell and Clarence
Krepps, the current City Manager.
Mayor Boharski asked Krepps if he would like the meeting open or
closed pursuant to the open meetings law of the State of Montana.
Krepps stated he would like the meeting to remain open.
Mayor Boharski explained the first order of business is to hear
from the public and requested remarks be kept concise and to the
point, and that comments not include any personal attacks.
(The remainder of the minutes are verbatim)
Mr. Mayor and Council people, my name is Steve Hanson and I am here
representing two companies, both City Service and Dasen
Corporation, and I guess the main points that I want to say...
through everything that's been said ... whatever's been in the
newspaper... the first item being the Meridian Road Complex. Three
years ago I was one of five people appointed to a committee on
public input to the Meridian Road Development and Design. We had
one meeting and that was the only meeting we've had. The items that
were addressed... you know ... and our particular concern on Meridian
and through the design process ... was being our facility having the
most traffic and the busiest site on that entire Meridian
Development... was a concern to us from the initial plans that we
saw, and how the development was going to be used. At the first
meeting, working with the City Engineers, we made our concerns
known. That was going to be incorporated with the engineering and
since that time... and I think primarily due to lack of public
input ... the design has all been changed... which concerns us that
that particular facility pays thirty thousand dollars a year in
taxes, and by putting the turn lanes in and the curbing that was
proposed, it completely does away with the revenue that helps pay
that tax. That concerns us from a public input standpoint. I
think that went by the wayside in that particular case. I guess
another item, in particular, has been the Haven Field Complex...
that... the original purchase offer was made February of 1996, the
Buy/Sell was finally accepted in November, and we are still yet
unable to turn a shovel full of dirt there. The deal that was
originally made has been changed. I think again that comes back
to —whether it's managerial or whether it's departmental ... I'm not
here to point fingers...I know it's been problems and speaking from
a business standpoint, it has not been a real friendly environment,
and I guess all that we would ask is for some sort of
communication —something to be done ... and a direction to be set of
...by the City Council ... of exactly what Kalispell's posture's going
to be in regards to business. Thank you.
Doug Rauthe, 413 6 t h Avenue East:
(A verbatim transcript is attached as Exhibit #1 and is
incorporated herein as if set forth in full at this place.)
My name is Richard Kuhl. I live at 867 North Main Street. I left
for a soccer tournament in Missoula on Friday hoping that perhaps
the City Council members would follow the advice of the editorial
in the Inter Lake a few days ago to try to get along ... I was
frankly shocked and quite surprised to come back here and glance at
the paper last night to find out that this meeting was even being
held. If this meeting ... and there's a bunch of folks here... but
if this meeting is designed to illicit informed public opinion I
have a hard job understanding how it's going to happen because there
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is no written charges against anybody. It seems to me if you have
serious problems with the City Manager they ought to be in writing
and so the people can understand what the problems are and I would
hope you don't come to some hasty judgment today on getting rid of
the City Manager. I think that would be a complete turning upside
down any public involvement that you think this...by just calling
this meeting is intended to solve. So I would hope that you do not
make that kind of decision...I personally have never had any
problems with Mr. Krepps and the Staff, and I frankly... unless you
have some damaging evidence to the contrary, I would urge that you
retain him in his present position. Thank you.
Good afternoon gentlemen. My name is Marleen Allen and I live at
804 5�"! Avenue west and I have been coming to a lot of these
meetings and I quit coming because I felt confident that the City
was being run properly. To my shock, there is a lot of in-house
disagreements which really disappoint me and I guess that's all I
want to say. I am a citizen of Kalispell. I live on the west
side...I am so disappointed in what's going on here I just can't
believe this is happening. Please, get on with it guys. We've got
stuff to do. Quit your fighting.
My name is Mr. (Frederick) Hammel, I live at 505 7t" Avenue West.
The Mayor says that the main thing from the people was to keep the
Manager form ... which I'm all for ... but why did the people of the
City of Kalispell throw out the last Council and elect this
Council. This Council is a totally different Council and they
should have the right to say how the Manager works and doesn't
work ... if they want to micro -manage...which I think they should
micro -manage ... the last City Council gave the City Manager,
especially Mr. Williams, a rubber stamp to rubber stamp everything
he wanted. I don't think this City Council is willing to rubber
stamp everything the Manager wants ... I think that's good. Our taxes
have skyrocketed under the last administration and I hope those
taxes go down. Thank you.
My name is Alex Hilton...I don't live within City Limits ... I have
been asked to speak on behalf of several people that do that feel
very intimidated coming here ... I'm in Kalispell every day...I do a
great deal of business here. Mr. Boharski, I appreciate in your
introduction how you stated that you'd like people to make comments
today to keep it civil and professional and polite, and please give
me any warning if I step beyond that. I think what you're doing
today is quite wrong. Let's be quite blunt. You've met here today
to fire Clarence Krepps, not to review his performance, not to aid
him in what you want him to do, but to fire him. I think this is
a great mistake, I think it's wrong, not on a personal or emotional
level, but more importantly in a way of effectively running a
government for a City. I don't believe that Mr. Krepps has ever
been called in front of Council ... in a public meeting... where his
performance was reviewed or evaluated...or any range of performance
was told to him that he was expected to comply within. what you're
trying to do is get rid of someone that you personally disagree
with. That happens in politics and government all the time, and
you folks are going to have to learn how to live with it. People
that asked me to speak today felt that the way the City government
is being run right now is a step back of a hundred years to Wild
West type mentality. I told them that they're actually being
polite ... it's a step back a thousand years ... to a feudalistic
society where we have a king and we have another layer of dukes,
whose concern is commerce, and we have the taxpaying serfs. I
address the individual Council members right now... to think very
clearly about what you're doing. If you're unhappy with the present
City Manager, and you may have a very good reason to be so, call a
probationary period, discuss very specifically what you want him to
do and not do, and then after a certain given amount of time
evaluate whether he has done what you have asked him to do. If you
people fire Mr. Krepps today, you'll be committing a very large
personal mistake. Your political reputations may be hurt ... but
this is a small town, you can overcome that ... but your personal
reputations will be damaged and your business reputations will be
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damaged. People remember what you are going to do today and they're
going to judge you for your wisdom, or they're going to judge you
for your haste. Thank you.
Members of the City Council, my name is Suzanne O'Conner, I live at
845 7'" Avenue East in Kalispell. I was born and raised in
Kalispell... I've lived most of my life here ... and five generations
of my family have lived in Kalispell. Today Kalispell is a better
place to live than I have ever seen it. Our streets are cleaner,
they're better maintained and they're safer than they've ever been.
The difference has been a City Manager form of government, with
qualified capable managers. Clarence Krepps is the second of these
managers, and from my observation he is very professional,
knowledgeable and conscientious. You are meeting today to consider
terminating his contract. It appears the problem you have with Mr.
Krepps is that he is doing his job, and some of you feel that you
can do it better. Moreover, Mr. Krepps has the audacity to tell
the Mayor... that the Mayor is not above the law ... and Mr. Krepps is
not going to bend, or twist, or skirt the law ... to push the Mayor's
pet project ... and Mr. Krepps has the audacity to stand up to a
Council bent on accomplishing an end no matter what the means. It's
not in the City's best interest to have a weak, puppet City Manager.
A Manager that can be bullied and badgered by a singular Council
member can be bullied and badgered by every special interest group
that comes before him. If it's your desire to fire Mr. Krepps and
hire someone who can be easily manipulated, you will be doing the
City of Kalispell a great disservice. The people of Kalispell
approved a Manager form of government because we are sick and tired
of good ole boy business as usual. What I see happening here is a
roll back of the calendar to those times. I urge you to consider
carefully your actions. Thank you.
My name is Jerry Begg, 220 Woodland Avenue. I have addressed the
Council ... this is probably my ... probably half a dozen times I've
addressed the Council on the issue of the Manager form of
government. I did so when Mr. Williams was here several times, and
I believe once since Mr. Krepps has been here. I would like to
congratulate the Mayor and the Council for bringing this issue into
the open. I think there's a lot of people who sit back ... who pay
their taxes ... who don't have a lot of interaction in City
government... who might be missing some of the things that are going
on. I am a native of Kalispell... was born and raised here and done
business here, so I've had some experience with the City through the
various forms of government. I was lucky enough to know Mayor
Flynn, Mayor Bjorneby...I was especially proud of Mayor Norma Happ
and I thought she did a wonderful job for the City of Kalispell.
when the issue first came up of whether or not to go with the City
Manager form of government, I thought about it, and I thought well
it sounds good to have a professional in charge ... so I started
trying to talk to people who had lived other places and came from
places where they had a professional Manager and where they had
lived there and went from one form of government to another. They
told me three things came to the surface, it sounds good, but they
said when you put a professional spender in charge, you are going
to have nothing but a tremendous amount of increased spending.
They said it's much easier for one man to have an agenda that he
would like to follow, than for a Council or a group, where you need
a consensus of the majority of the members in order to get some
kind of agenda or set some kind of policy. And they said the other
thing is that you have to be careful of the control that a person
in that position of power can take over Citizens or Staff. Now
under the previous administration I felt that the City Manager had
been given a mandate in the form of a key to the City, carte
blanche spending... the word rubber stamp was mentioned
earlier ... and an attitude that you can. do no wrong because you are
paid Staff. Mr. Williams came to town as our first City
Manager ... his style of management I call the four "s"...stifle,
silence, stonewall or sue me. Under stifle, one of the first
things I understand that Mr. Williams was helpful in formulating
was a policy where if you have a workshop there isn't going to be
any public input. The second thing was that when you have a Council
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you are limited to your public input as controlled by the presiding
officer to three minutes ... if he's not happy with what you have to
say, or if he wants to interrupt, or if he wants to stifle your
comments ... it isn't so difficult to do so. Silence. I had a chance
to work with the Site Review Committee. I had a fairly simple
project I was working on ... it took eleven weeks for me to get an
answer and an approval...that affected cost, timing, building
frames, all kinds of things that eventually... that project didn't
fly. When I went back, and asked, why there was an eleven week
time frame, I was met by silence... because we don't have to answer,
we're Staff, we can't do anything wrong. Stonewall, simply do not
respond, and sue me. If the City Attorney is at my beck and call
that he's going to represent my decisions, I hope you have enough
money and enough time and enough stamina to keep up that you can
finally get an answer from me, but if Citizen doesn't have any
redress than where do we go to other than the Courts, and I think
that's a very poor style of management. I have brought before this
Council before, and if I had a bigger area, this was pre -City
Manager form of government... that was our budget ... that was six
million, four hundred and forty eight thousand. when Mr. Williams
left here, it was sixteen million, eight hundred and thirty five
thousand... that's total budget expenditures according to City
figures. If you see a pattern there, it's increase, increase,
increase, increase and I think... certainly we see some
improvement... but the question is the amount of increase and the
extra amount of money... are we getting what we're paying for and do
we need it. Is there waste, is there inefficiency. How do we
measure productivity. These are the kinds of things I would like to
ask a professional Manager. we have had approximately seven
million dollars in windfall gaming tax revenue given to this City,
and it's all been spent. Maybe if we'd set aside fifty percent of
that —and something like the ValleyDome, or something like the
Museum came along, and we had some money sitting there ... we might
say this is worthwhile, but it's all been spent. I don't feel that
we are ... I feel that the public and perhaps the Staff are
manipulated by the old carrot and stick, that if you're doing your
job, or if you don't like what's being done, shut up ... if I can get
you more funding and more money I'm going to do it, and the same
with the citizens of Kalispell. If I don't like what you're
doing... tough, you have no redress, no recourse and to me this is
what marked our first City Manager ... the time that he spent here.
Now as so far as some solutions. I feel that you, as a Council, do
have a mandate. I feel that you can remain as figure heads and
rubber stamp, or that you can address the problems that exist. I
think ... I ... hopefully, that you will hear more of that today. You
are the only source of citizen redress, other than the Courts, and
you are the only advocate for the taxpayer. I would like to
suggest that if we do continue with a professional manager, that we
form an Office of Business Management which is on the level with
the other Departmental heads. I feel this is important for two
reasons; that the City Manager could help the other Department
heads in formulating their budgets and their spending because they
are professionals ... they're well paid... they are the Department
heads for a reason ... they have ability and they have experience,
and I would like to see the second function of the Office of
Business Management to act like the General Accounting Office of
the Federal Government and to critique areas where spending has
been improper or unnecessary... to point out where we can do a
better job. I would hope that by being on the same level as the
other Department heads that you as Council members could then begin
to address each individual Department head and discuss the
specifics of their Department, rather than having a buffer in
between you. I think that's important and I think that the attitude
of this Council ... that you're not anti -business, that you're not
anti -growth, and that you are not pro -tax and spend, that you are
concerned about the taxpayers... should go directly to the
Department heads. I believe that there should be incentive for
people... for the general Staff ... and for Department heads in saving
tax dollars, and if they can do that that's good. I believe there
should be a change of attitude, to work with people that come in,
as customers who might have the ability to go elsewhere. Keep in
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mind, Shopko, WalMart, Staples, Office Max, vann's, other businesses
that have chosen not to come into the City of Kalispell. I would
remind you that the County, with a forty two million dollar plus
budget does not have a County Manager and there's a lot of people
that think things are being run better there than are in the City
of Kalispell. Now I know Mr. Krepps is in a difficult position
because when he was chosen for the job, he was chosen under the
previous administration, and they might have given him a different
mandate, however, if a majority of this Council determines that
they're going to change some of the ways the City does business,
then as a professional, Mr. Krepps would have two choices, either
to listen to the Council and its majority or seek employment some
place where he feels he can get along better with that Council and
their mandate. I would hope that you'll do the right thing. I
would hope that you'll do what you're elected to do, and change the
course of City government to a smaller, more efficient government
and a government that works for the citizens and taxpayers of
Kalispell. Thank you.
My name is Per Storli and I own and operate the Blue and White
Motel in Kalispell. I must be missing something here. The City
Council represents us ... we elected you fellows ... we didn't elect Mr.
Krepps. If Mr. Krepps can't take your guidance, or do whatever you
direct him to do, there's something wrong. If I hire a man and he
doesn't do what I tell him to do, I certainly feel free to fire him.
So, I hope you listen to what the voters have to say and not the
City employees ... or I mean the regular citizens ... not the
employees. Thank you.
Mayor, Council members, I'm Lee Berger. I reside at 208 Riverview
Drive and I'm not here to attack personalities at all. What I am
here to do is to defend the form of government. The form of
government... the City Manager form of government... that the voters
decided they wanted some time ago. They wanted a Council that set
policy and they in turn, then, wanted that Council to hire a City
Manager that was going to carry out that job. That's your function.
Experience has taught me that if you don't set these distinct
lines ... that whether it's a City government or County government,
a Corporation, non-profit or a for -profit Corporation, that the
organization will suffer ... and I think that's exactly what's
happening here. My observation has been that since the beginning
of the year there has not been an effort made by the Council to let
the system work, to help it work. That's a mistake, in fact it's
been just the opposite. That's further been reinforced by some
degree by the fact, that as a member of the Kalispell Development
Corporation, we are an advisory arm of the Council and there is to
be ... or supposed to be...a representative from the Council on that
body. We have repeatedly asked for that, but that has not happened
and I don't know why. It would seem to me that we would want to try
to make the system work, whether it's the KDC, whether it's.the City
Manager ... no matter what it is. It bothers me that we appear to
have come to this point without allowing the system to work and
that message seems relatively clear to me. We have a system in
place. Maybe we should have a cooling off period. I think it
might be warranted. Maybe the Council should take that time and
again review what their function is ... is it to set policy. Look at
it carefully. Look at the City Manager form of government, the one
that the people mandated, and then demonstrate by making an effort
to make the system work ... to let it work ... work with the people
that are involved. Yes, sometimes we don't agree with our
employees ... we can't work with our employees... sometimes that
happens but we have to give it a try and that's what bothers me.
I don't think we've given it a try, so let's have that cooling off
period. Let's look at ourselves. Let's make an effort to work with
our existing system and then we, you, the public, can all make a
determination whether we have the right people in place. whether
it's City Manager, Staff, Council members... let's give it a try.
Thank you.
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Mr. Mayor, members of the Council, my name is Allan Gerhart, I
reside at 1105 l' Avenue East. As some of you in this room may be
aware I dealt with the City Staff this year... actually last
year ... for ten months over an issue of a garage. I spend six
thousand dollars and ten months of my time fighting the City Staff
in this town over an improvement to my property. The unfortunate
part is so few of you people recognize what the real story is. I
think the level of support in this room might be a little bit
different if you did. Unfortunately, we don't have a newspaper that
wants to report the truth in this town. I recognize the issue here
is not whether there's a challenge to the City Manager or City
Manager style of government, the issue to me seems to be whether
the City Manager is following the will of the Council in dealing
with City Staff. My impression of that ... my experience of that... is
absolutely "no." I have never, in my twelve years of residing in
Kalispell and spending thousands of dollars in our community
improving property, has been the most ... I have never in my life
experienced the kind of malicious abuse of power by City
Staff ... and I challenge anyone in this room to come over and hear
the story of what I have been through on 157 Avenue East and then
come back here and say that something does not need to be done with
this form of government or our City Manager that does not want to
carry out issues of the Council. I think it's about time. I think
housecleaning needs to start somewhere. I'd love to see it start
here and I'd love to see it continue on through the rest of the City
Departments, and I think many of you, if you knew what your
neighbors were going through ... what I've gone through —would feel
the same. Thank you very much.
My name is Tim Wise, 202 2'° Avenue West. I'm here to represent
myself, and my father and Sykes Grocery, and granted... like the
last gentleman said ... we've had problems. You know, like with
getting billed for a sewer and water bill on a dead meter ... and
yeah —granted, it costs us a few bucks and over a period of time
they made it basically right with us, so no form of government is
one hundred percent perfect. But, the people spoke and said what
kind of form of government we want, and I don't want to draw too
much of a parallel between the Superintendent of the Schools ... or
the past Superintendent of Schools ... and what happened with
Siderius, and what's happening here today, but the one thing my dad
did teach me through life is if you believe in your
convictions... treat everybody equally and with respect regardless
of their stature in life, and listen to the people... you'll do all
right. We're probably one of the last few true independents left
and we've been here ... well my dad's owned the business for over
fifty three years ... and the only reason we're here today is because
of the people of this community. So, I'd like to remind all you men
on the Board there, that when you vote today, I suggest you look
deep into your hearts. I don't know any person, period, that does
a job one hundred percent right all the time. If this gentleman's
done so many things wrong, and deserves to be fired, then list them
specifically and let him face them. If not, then I suggest all you
guys should act like men. Bottom line.
My name is Alden Beller, 90 Northern Lights and I'm 76 years
old. ..been here in the City for fifty years. I've ... what I'm
hearing around town is not good, it's not good at all. -
And the
biggest ... the word... that's around is arrogance. We're sick and
tired of arrogance from people...from the head of our group. I
don't like to get personal ... I'm not going to say personal ... but I'm
saying unless this changes something else is going to have to
happen. I was ... when I was in school ... I taught thirty five years
and I had sixty three people on staff I was in charge of and I was
very careful all the time to be sure that each one of the
departments, each one of the people, was listened to and that we
treated them with respect, and I never had any really big problems
that way. As we look at the City Council ... I watched it on TV...I
shut it off a couple times because I felt that ... my goodness what
in the world are they doing to this man. I have never met
Clarence. I'll call him Clarence because I see the nice... the good
things that he has done ... and he works hard, really hard. We've had
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good roads... they've been wonderful roads. They've built the roads
throughout the City. We're growing... it's going to cost more
money... and the same time they're trying to cut back on more money,
more money and they've run on the saying we're going to cut back and
cut back. We're a growing City and it costs money to do all of
these things and I for one don't mind paying my taxes for the things
that have been done in the City, and in the County, for that
matter. We have a wonderful Police Department and a great head of
the Police Department, and the people that work there. They go up
my road twice a day, I watch them, and they're wonderful. They
stop ... my neighbor had fallen and I went over there because we
didn't see the light come on ... and there was two policemen that was
there...I called 9-1-1 and they came. They were just gracious men
and they were well trained and they knew what to do ... you
know —the things they had to do and I was really, really proud of
them. There are many things in the City that are just wonderful.
We go down to Woodland Park and it's always ready to go, and we can
be there, and those things are really important to us. I think our
City Manager is doing a great job, and I think the one before him
did a good job. I think that there was problems that ... you can
always find a problem with somebody if you want to... if you dig far
enough. But I would say my goodness, let's get behind Clarence,
let's get together and not fool around with this bickering back and
forth ... who's going to do what when... so I can have a little more
prestige. That's the way I feel about it and if you want to ask me
I'll be glad to visit with any of you but we'd better do it in a
group.
Rich DeJana, 422 Summit Circle. In the last year we talked about
changing policies on the Council, and that was done, and directions
were supposedly changed because we were going to get to a kinder
Council, to a gentler Council, and that was not done. And it was
to change policies, and yet I hear in the press, that one of the
reasons to get rid of Clarence is what's been going on since his
tenure ... you know... doing his job, following the policies set by
the Council that was there at that time. It doesn't sound to me
like a good reason to change it, does it. And perhaps the problem
here is we haven't focused on where we're going, because I know
Clarence well enough to know that he'll carry out the directions,
within the law, that he has to, and he will tell you when he feels
that you are not acting appropriately, because he has to. You
know, it is interesting, because part of the concern on ... we'll call
the old Council, was their tendency to jump into projects before
they were thoroughly researched. Now I support the
ValleyDome...I've looked at it a long time ... but aren't we a little
early to start this fight over that project, and I hope this fight
doesn't kill that project. But to start it now, before the process
has come, aren't we doing just what we've accused the old Councils
of doing. So I suggest to you gentlemen, as a management tool, the
purpose of a Council is to set policy, priority, to review
contracts before they're signed... so why don't you get to work on
setting your policy. It will be different than the prior Council's,
and then if you want to discharge somebody for not carrying it out,
that's fine, but the voters of Kalispell haven't seen your policy.
It's time to get to work gentlemen, not get into politics. Thank
you.
Mayor, members of Council, I'm Wayne Saverud, 160 Buffalo Stage.
I know full well that the Manager serves at your pleasure and I
know the Council has the right to hire and fire. I also know that
what is legally right, and what is morally right, are frequently
two different things. If there is any truth to the reports that
overtures were being made to the former Interim City Manager
approximately one month after this Council was seated, that sounds
like a coup, and that's not right. Mr. Krepps is an honorable man.
He's a highly qualified, experienced professional who's doing a good
job in a very difficult environment. The problem appears to me to
be one where the Mayor and Council have difficulty communicating
with itself, actually determining policy, communicating that policy
with the Manager, and then allowing him to do his job without
interference. The Council has allowed itself to become polarized.
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The Daily Inter Lake's suggestion of a cooling off period is a good
one. If the leadership sincerely wants what is best for the City,
I suggest that you take the Inter Lake's advice. The only thing
that should be determined right now... or should be terminated right
now.. is the discussion about the Manager's employment. Cool off.
Sit down, all together. Determine what is best for the City.
Clearly articulate that to the Manager. If the Manager and the
Staff will not, or can not function efficiently, then evaluate the
alternatives. The decision then would be based on facts, not
politics or personalities.
My name is Winifred Storli and we ... my husband and family... and I
have the Blue and white Motel and I'm not sure which one is older,
Sykes or us, but we've been here forever, and the family too, and
I've been before this Council many times on issues of the shelter,
mental health and so on, and I've been known to be called a bleeding
heart conservative ... so ... so I don't know what I am. I've had a lot
of people talk to me from both the conservative and the bleeding
heart side, and one of the things I would like to urge the Council
is that a lot of people whom I've worked with on Samaritan House and
so on, are very concerned about their future. The worker bees, the
worker ants, are very, very concerned that maybe their departments
will be shut down. That they'll be caught in the crossfire. I
reassure them...I tell them that the Council I'm sure has no
intention of making this entire City come to a halt, or closing
down things that are working. Basically, I feel that what the
voters want is a Council that works, and very many times in the
past, I'll go back to the Conrad Mansion, the Justice Center, the
voters voted for one thing and to and behold something else
happens. It's just a hundred degree difference to what you
wanted ... you get it anyhow whether you like it or not ... and I think
the voters have clearly shown that they want a change —and they
want some of the big issues in this town, that have been sort of on
the drawing board for years, addressed. I keep on thinking of the
bypass, the fairgrounds and issues like this, the sewer system,
some developments that you've been fighting about for a long time.
But I also think that this Council should be given a chance. New
York was in terrible shape and the new Mayor and his Council have
turned it around. So I think that in four years time that we can
vote everybody out if need be, but in the meantime, the new
philosophy should be given a chance. And also, I would like to
warn the people in Kalispell that the Outlaw, that was the main
reason we had tourism coming in, that has been sold. Small
businesses, small people are being exterminated. I don't think the
Blue and White will last much longer, it will be taken over by a
chain. Sykes, I think it's just by the sheer wonderful nature of
their business, like the Outlaw, they've been very good citizens•,
they've been thoughtful, they've been compassionate and it's only the
citizens that supports them because society is changing and I don't
suppose I'm talking very much sense, but we've given these people a
mandate and these people have to carry it out and whatever the
outcome is, I'm sure, that this has been quite a shock to both the
City Council and the City Manager, and obviously by the applause
and the number of people who are here on their lunch hour ... it's
caused a lot of heartache to the people who work for the City and
for us and it's time we go forward, and I hope it's going to be a
good four years and that all of you will be back four years.from
now because we approve of what you're doing.
Mr. Mayor and Council, my name is Rose Behrens. I live at 541 West
Colorado Street and I've been a taxpayer in the City for many years.
I've been hearing and reading some things that really upset me. I
thought we had a democracy and I'm changing my mind very rapidly.
As far as Mr. Krepps, I don't know the man, I think he's doing a
fine job. He's trying to keep the City out of trouble by making
sure they follow the rules. Some people, I understand, would want
you to kind of twist a little bit for their own benefit and I
admire him for standing up to the doctrines and the rules that are
made. But I heard a comment made, not this meeting, but a previous
one that really upsets me more than anything, and that was a fact
a party said, be careful what you say because I could haul you into
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Court for liable. What happened to freedom of speech, one of the
things our country was founded on. What I'm hearing and seeing
anymore I think is leaning very much within our City offices as a
neo-Nazi form of government and is that what the people of this
Valley want. I am sure that there are people in this room who
would love to speak out and say what they really feel, but they
don't have that opportunity because of that comment, be careful what
you say. Thank you much for hearing me.
Amber Rynerson Jeschke, 618 67" Street West. I was shocked at your
behavior being elected in and I love Kalispell and I care
about the
Police and all of them and I was very surprised on your behavior.
I'm a grandmother of many kids, and I've had a rough time with a man
in prison, and so on and so on, but this is one place I could come
down to and talk to this lady and she would always be polite, or
come to the Police and so on and so on. I feel that you don't have
a lot of feeling.for the common people and I would like to see a
little bit more happiness because I look forward to the parades,
and all the work that Doug Rauthe did, in getting these parades
going and the good things, and I just hate to see something like
this happening. But I believe that compassion is a part of being
a Mayor. There is all these business things and everything else,
and he is very busy working, and I know he's done some things that's
made maybe his secretary feel bad, but I would love to see a woman
Mayor because we've got to have compassion if we're going to have
growth. Either Wendy Ostrom or this gal over here, so thank you
very much for listening.
My name is ... first of all Mayor and City Council members ... my name
is David Brentwood from 224 Farview Drive. As I understand which
has not been brought out here too much, is there has been a problem
with the conflict between the City Manager and the majority of City
Council members. There seems to be no cooperation of giving out
information to some of these members. It's perhaps ... like what I
heard... like closed doors, but there is cooperation of maybe three
members here but not with the other members. So I myself, would
like to see the City Manager cooperate with the new form, not the
form of government, but the ... in fact I voted for a City Manager
myself form of government... but since there's a new breed that's
been elected, there should be a cooperation between... for all the
members, each one individually. As I understand that the complaint
is that there is some members here gathering together that does not
have a quorum, and that perhaps this is wrong. There is nothing
immoral about it, like Norb Donahue says, there's nothing illegal
about it, and there's nothing wrong with it at all because I, as a
layman, can go up to Krepps here and ask for information and by
law, according the Montana Constitution, he has an obligation to
reveal to me whatever I'm asking for. So how much more so would it
be for a City Council member to go to a City Manager and say, look,
I need this information. Anyway, that's about all I've got to say.
Thank you very much.
My name is Roger Bowman, 440 Summit Ridge Drive. I've lived in
Kalispell sixty two years and seven days. I've been a taxpayer for
probably about forty years. I worked for this City for about
twenty three years under Mayor form of government, and I personally
will have to say that I'm sorry that I didn't get a chance to work
under a professional type of a Manager government. I think it is
...the last few years you can see the professionalism in our two
City Managers we've had, and I certainly hope you folks reconsider
what your plans are today. Thank you,
My name is Bill Goodman, 1275 Lower Valley Road. I talked to a lot
of people around downtown, I spent all my day downtown and I
thought I'd let you know what I hear. Mostly, it's people shaking
their heads and saying, what are we going to do with this Council,
what are we going to do, they're not doing anything, they're the
most unproductive group we've ever had, that's what I'm hearing. You
want to fire the only guy around here that I see working for a
living, you're not doing anything. You ought to be embarrassed.
I'm embarrassed for all of you. I don't think your mothers are
happy. Thank you.
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My name is Ed Gilliland, I live is Somers, Montana, I'm unable to
vote for any of you people unfortunately. I do own property in
Kalispell. I've got four office buildings in Kalispell and the
decisions that you make play an important part in my livelihood, so
therefore a few minutes please. There's been an awful lot of really
good things happen in the City of Kalispell, Lawrence Park, Depot
Park, one way 15` Street, the Museum, the Ballparks, there's been a
lot of really, really good things going on in the Council in
Kalispell. It's not the right time to change all that. We've been
making a lot of progress. 15C Avenue East has been paved, the
water's out of my basement now, I'm happy for that. There's just
been a lot of really, really good things happening in Kalispell.
This is just really not the time to change that. The City Manager
form of government is obviously the best way to go. Clarence
Krepps is obviously an excellent Manager. We just don't need to
change that. Thank you.
Good afternoon your Honor, members of the Council. My name is
Pamela Kennedy. I live at 1036 C'- Avenue West in Kalispell.
Taxpayer in Kalispell. Past City Council member, Kalispell.
According to some people, rubber stamper, mini -manager, I don't
know. I don't think that the past Council ever rubber stamped. I
don't believe that the past Council ever mini -managed, and I would
encourage you today not to lead yourselves in that direction, into
a mini -managing form of government as has been encouraged by a few
people here today, and mind you just a few, from what I'm hearing.
The City Manager form of government is one that was voted in by the
public and was upheld when the review commission came forward.
Today, the issue is not the City Manager form of government.
Today, the issue is, as has been called by the Mayor, termination
of employment of your City Manager, Clarence Krepps. I look before
this Council and I see four new members of this Council. The other
five have been here, have worked with Clarence Krepps. The four
new members of this Council, I would say, have not had enough time
to properly evaluate Mr. Krepps' performance. There has not been
any public information, with regards to what Mr. Krepps has done,
that has been offensive to the City Council members, that has been
in his job performance. I think that it's time, if you feel, the
majority of the Council, that Mr. Krepps has not followed your
procedures, your policies, that you then give him a fair chance.
Evaluate him. Tell him what your concerns are and go from that
point forward. Allow him the opportunity to be able to prove that
he is working in the best interest of the City of Kalispell, in the
best interest of the City taxpayers of Kalispell. I think when you
look in this room, all of you Council members and Mayor, you will
see an unbelievable amount of employees sitting in this room. The
employees that are in this room are here in support of your City
Manager Clarence Krepps. I think you need to pay attention to
that. I think you need to look at team work, at what has been
going on in this City of Kalispell since the City Manager form of
government came in. we have had team work that has happened. we
have had people that have become satisfied with their jobs. They
are proud to work for the City of Kalispell. We need to continue
in a team work fashion. As Council members, I would hope that all
of you can set aside your differences and that you can come to the
table, and that you can listen. You can listen to this public
outcry here today and you can- listen to your City employees, and
you will, I hope, listen to your City Manager, the professional
that has been put in place here to follow your procedures and your
policies. Set policy. If you have a City resident that has had
problems with the Building Department, with zoning, then set your
policies and have your Staff, through your City Manager, follow
your policies. If your policies are wrong, and if you have a City
resident who lives on 157 Avenue East who is not treated fairly,
then discover why, find out why, change the policy so that we, as
taxpayers, are satisfied with our form of government and do feel
that we are getting our money's worth out of the taxes. I agree you
need to scrutinize your budget. You've got a budget coming forward
right now. If you terminate this man, exactly how are you going to
be able to make sure that you are getting an efficient and thorough
budget. There's been mention that ever since the City Manager form
of government came forward, that we've had an increase in our
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budget. It's been brought forward by this ... to this... Council, to
the past Councils, many times before. I think the truth and the
fairness that needs to be addressed here is to also point out that
at the time that supposed increase came into place, there was a new
sewer treatment plant that came into the City of Kalispell and that
had to be accounted for in our budget. That was a fourteen million
dollar increase in our budget. Yes indeed, it did increase, with
a City Manager form of government. It's proper accounting. Grants
are being run through the budget, which is where they should be
going through. If we as a City need to be more business friendly
then let's look at that. You as Council members, you as your Honor
Mayor, set policy, look at how we can be more business friendly.
Please take the time to evaluate your City Manager. Take into
consideration what has been brought forward here today. Please
look at your support by the employees of the City of Kalispell here
for your City Manager. Please look at the outcrying support of
people here in this room at a noon meeting. Please take your time.
Please do not go forward today with what I fear would be
devastating to the City of Kalispell. Thank you for your time.
My name is Dan Johns and I live at 216 North Riding Road. I've had
the opportunity to work closely with Clarence over the years, and
while some people may think it's only in relation to a ballfield
complex, it's been more than that. I've found him to be most
cordial, most professional, very thorough and with an open door,
very willing to welcome and listen. I find that refreshing. I've
worked with City government in the past when things were conducted
behind closed doors through committee sessions, and when things got
to the floor of this Council, the decisions in all real aspects had
been made. And so, I would encourage the Council to do what's best
for the community. To not react to a memo, to not react to a
meeting, but to retain this good professional and to continue to
work with him. If there are bridges that need to be built, let's
build them. If there are chasms that need to be covered or filled,
let's fill them, but let's proceed forward. Because we have the
professionals in place, I think we have the sincerity of everyone
on the Council to do what's in the best interest of the City and I
really think that together you can do that. Thank you.
Boharski: Is there anyone else who would care to address the
Council this afternoon. Is there anyone else who would care to
address the Council this afternoon. One last time, is there anyone
else who would care to address the Council this afternoon. Seeing
none, thank you very much for your comments. You've all been very
polite, some were over three minutes, but that's okay. At this
point in time I'll close that section of the meeting and move on to
the section where the Council will discuss the issue that is before
us, and I want to clarify again, that that issue is not to, in any
way, change the City Council form... the City Manager form of
government, that is as I stated earlier to discuss the Employment
Agreement between the City and the City Manager. Councilman
Nystul.
Nystul: Your Honor, for the purposes of placing the issue on the
table so we can discuss it, I would move that the employment
agreement with Clarence Krepps be terminated in accordance with the
conditions of that agreement.
Haarr: Second.
Boharski: Motion has been made and seconded. Councilman Nystul, do
you care to speak to your...
Nystul: Just briefly. The comments made about the form of
government... when we reached the point of disagreement, as you
will, this is one of the alternatives ... this is one of the
methods ... in the contracts that are written with City Managers
include provisions in them that address ... when you reach a point of
disagreement ... I think we're at that point and that's why I placed
it on the agenda ... or placed the motion on the floor.
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Larson: Before we all say a lot of things that we're going to be
sorry we said later, including myself, I'd like to offer a proposal
for this Council to consider. That proposal would be the same as
has been mentioned by several of the speaking audience today. I
would like to propose that we have a cooling off period. Perhaps
three months. At the end of that period, and during that period,
that we hire a professional mediator, someone from outside the
area, to come in and mediate this dispute between segments of the
Council and the City Manager. I think that that would be a fair
way to approach this thing, and it might resolve itself. It's a...I
think it's something we need to explore rather than carry on with
the personality attacks and the misconceptions about what's
happening on both sides. I would like to see us pursue this avenue
of resolvement. I don't have a lot of hopes for that happening, but
I think we need to pursue it. If we do decide to go that route, at
the end of the three month period or whatever time frame we decide,
we can always have another hearing like this. we can evaluate and
we can decide at that point whether we've done the right thing or
whether we've jumped the gun and gone ahead and done something we
shouldn't have done. So I would propose that for some discussion
before we get into the actual discussion of the motion.
Boharski: we have a motion before us if you'd care to make your
suggestion in the form of a motion than we can take it up for
discussion purposes.
Larson: I would move that ... to amend the motion... the prior motion
to read... that I would propose that we form a cooling off period of
three months, for the sake of discussion, during that period we try
to communicate amongst ourselves and with Clarence as to what we
feel are the problems connected with the workability of this
Council, and I would also add to that motion...I think that we
should have some professional mediation...I didn't want to say
professional help... that we hire a professional mediator from
outside the area, an independent person, that maybe can bring some
reason to this total argument.
Atkinson: Second.
Boharski: Motion made and seconded by Councilman Atkinson. Is
there discussion on the substitute motion by Councilman Larson.
Van Natta: On Duane's proposal, I think it has a lot of merit. I
haven't ... I must be a loner out here because I haven't been
furnished with anything in writing from any of you folks that
indicates what the problem is. I haven't had any problem with... in
my short period of time on the Council at least ... if I want to know
something I find Clarence and the Staff very responsive in
furnishing that information, and I guess I just don't sit back willy
nilly and wait for a piece of paper to float in front of me when I
have a question and then document that I didn't get something. You
have to ask for something if you want it. Clarence has got a
million things to do in his job, so at any rate, I think there's a
lot of merit in trying to see if we can mediate our problems here
at this point. And I guess another point on the original motion,
Gary mentioned we've reached a period of ... point of disagreement
with the manager... I'd like everybody to know that I don't have any
disagreement with him, it's some of the Council, apparently, that
has a disagreement with him, for no good reason as far as I can
tell. I haven't seen anything. That's all I have right now. I'll
have more later.
Boharski: Is there further discussion on the motion by Councilman
Larson. Councilman Haarr.
Haarr: Yes, your Honor. I guess that ... well first of all ... this is
a very difficult issue and one that has required a lot of soul
searching to get to this point and I think that it's one that hasn't
come up overnight. To me it started after the election last
November. I can certainly see both sides of the issue, but I guess
the issue that I feel is in front of us is one in which we have a
Manager that is working with a new majority that is on the Council,
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a new majority that I think has no secret agenda. I think that our
interests are certainly for the best for all the citizens and
taxpayers of Kalispell, and I'll mention taxpayers because those are
the ultimate people that pay the way of our City government. And
perhaps... myself I've been too gentle in trying to work a ... into a
new attitude, or a new direction for our Manager and our Council.
Shortly after the election last fall, I recommended on several
occasions that we get together as a Council, along with the
Manager, to kind of identify what was coming forth and that perhaps
the new Council would require more of the Manager. I think we
wanted more accountability, instead of reports coming from the
Manager saying this is before you, that there may or may not be
very much information or justification to it, and I've harped on
that for four years. That if I'm going to make a decision to spend
money for the City I want to know the pros and cons on it.
Larson: Your Honor, I think Mr. Haarr's out of line. I think we're
talking about a motion to try to resolve this peacefully, not
stating our case for firing Clarence.
Haarr: Okay, well I guess I'd like to get to that point where we can
discuss the issue then, and I would not be in favor of it at this
point.
Boharski: I guess I have just one comment on that, and it is
somewhat similar to Councilman Haarr's response, and that is with
all due respect to the editor of the newspaper, and those of you
who quoted him in your testimony... and I thank you for that ... the
editor of the newspaper writes well. He did not run for public
office and contrary to what you have read, I don't personally
believe that we have given this a three month cooling off period,
I believe we have given it a six month cooling off period... and
there has been discussion. It hasn't always been in the public
because we didn't ... many of us didn't think that was the appropriate
place to air our differences and to discuss those things and they
were done in the individual meetings with people and in groups of
meetings with people, and so, for those of you that are picking up
the newspaper and reading that that is all that has been done, that
there have been no discussions that have taken place...I want to
assure you that those discussions have taken place by many members
of this Council and many members of the Staff. Is there any
further discussion.
Van Natta: Mr. Mayor.
Boharski: Councilman van Natta.
Van Natta: I would like to respond to that a little bit. I had a
friend at one time that gave me some advice and I think it would
probably be a good idea if you took it. It's probably not a good
idea to get in a fight with somebody that buys ink by the barrel.
I don't think you're going to win any points by continuing to attack
the local media.
Boharski: I've been doing pretty well so far.
Van Natta: I'm not .too sure you are. So anyway, that's all I have
to say at this point. I'm not going to let you get away with that
stuff.
Boharski: Is there any further discussion on the motion.
Councilman Atkinson.
Atkinson: I stated before that my assumption was, Mr. Mayor, that
you had an agenda before coming onto the Council and that it
included getting rid of Clarence Krepps. I stated....I haven't
stated it in this group ... but stated it on camera earlier today,
that I've had two conversations with you, both of which I made the
telephone call to you. You've had no conversations with me,
personally. I am definitely out of the loop from any conversations
that were made relative to Clarence Krepps, whether he's doing a
good job or a bad job, whether he should stay or go. I'll let the
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public know that I'm very ineffectual when it comes to discussing
with the Council anything about that ... they don't include me. I
think there is two others that they don't include also here. I
wouldn't consider that a representative form of government. I
wouldn't consider it something that is done as a Council as a whole.
All I know is what I've heard from hearsay and I have not been
included. If that's the case, then I think that there's a need...a
dire need... for the suggestion that Mr. Larson made. That this
Council, this whole Council, comes together and discusses our
concerns ... or the Council's concerns... with Mr. Krepps. what he is
doing specifically that this Council does not like, what he is not
doing specifically that this Council would like to see done. I
don't think he's ever been told by the Council. He's been told
numerous times by individuals in the Council, things that I think
would probably be conflicting with one another. This man has had
no direction from a Council. I'll tell you he's had a lot of
directions from individuals in this Council. You know, I do know
of that, and I'll tell you why, because Mr. Krepps has kept us all
informed. He has received requests from members of this
Council ... and this is legitimate and should happen ... he has
received requests from members of this Council to respond to the
way he does things, or respond to questions, or respond to concerns
from the public, and he has done so, in memos, that he has directed
to every member of the Council. So when Gary Nystul asks a
question about lighting, I find out about it through his memos. I
sure find out a whole lot more from Clarence Krepps about what goes
on in the Council, then I do from the rest of the Council. The
point I'm trying to make is, we're not talking... this Council is not
talking to one another as a whole. we're not trying to get along.
It's time for us to try that and I think the recommendation that is
now a motion on the floor is about the only way to get it done. I
would plead with this Council to accept the responsibility of
outlining what the problem is with Mr. Krepps' behavior, and then
. giving him an opportunity to respond and to be the City Manager
that he wants to be. Please vote in favor of this motion.
Boharski: Any further discussion ....... Councilman Donahue.
Donahue: Thank you. I'm not going to respond to Jim's remarks here
about his not being informed. I think that the things that have
come before this Council have come to him every bit as much as came
before me when I was on the minority... so it's kind of crocodile
tears on Jim's part ... but having said that ... I don't know whether it
will do any good to wait three months. There are a lot of things
that have gone on in the City that have been discussed... and the
innuendos and so forth have occurred at Council meetings... that
members of the public, many of whom that are sitting here, haven't
picked up on what has been happening, and it isn't a case of an
individual. I don't agree with some of the things that Mayor
Boharski's done. This whole procedure saddens me immensely, but I'm
looking at the downside of what would happen if we proceed.
Possibly the problem has been that the work sessions that we used
to have on Monday nights, on the odd Monday, when we thrashed out
some of these things in an informal committee as a whole... if you
want to call it that ... manner, have been disadvantageous to us.
The only time we have a full discussion is at a Council meeting
rather than at a work session when we can kind of relax and throw
out ideas that may be good ones, may be bad ones, but at least we
can discuss them, and maybe we should be getting back to that,
because I think a lot got accomplished at those work sessions.
They were uncomfortable and they took up a lot of our time, but I
think they resulted in better Council meetings. The downside of
proceeding is ... without a cooling off period... is if we discharge
or terminate the contract it's going to cost us a pot full of money.
Maybe more than some people think, maybe less than some people
would hope, but it's going to cost us some money and whether we can
spend that money or not I don't know. I don't think we can without
hurting someplace else. I have my own litany of situations here
that I feel that the City Manager has not been a good manager. I've
been in occasions to observe him and observe the results of what's
been going on from my own good judgement and the fact that I was
sitting in that City Attorney's chair for some fourteen years, and
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I know how the City should work, and it's not working that way. The
City Manager system is not working, and I think one of the reasons
for that is that some people don't understand what the City Manager
form of government is all about. I'm not here to debate City
Manager form of government. I've been an active opponent against
the idea of City Manager, but we have it and so we have to put up
with it and do the best we can with it. But on Duane's motion, I
think it may be a good idea...to kind of sit back and see if we
can't iron out this so that ... Mr. Krepps, who I think is an
honorable man ... maybe we can teach him something, maybe he can
teach us something I don't know. I'm willing to try. Thank you.
Boharski: Any further discussion. Seeing none. All those in favor
of Councilman Larson's motion will vote aye, those opposed vote no.
Why don't we try this with a roll call vote. Theresa.
Clerk: Councilman Nystul
"No"
Scarf f
"No"
Van Natta
"Yes"
Atkinson
"'Aye"
Donahue
"Aye"
Graves
"No"
Haarr
"No"
Larson
"Aye"
Mayor Boharski
"No"
Clerk: Five to four against.
Boharski: Motion fails, 5-4. We revert to Councilman Nystul's
motion for the Council. Is there any further discussion perhaps.
Clarence would you like to interject anything in this point of time
regarding...
Krepps: Is this the only chance I have Mayor, or do I get to hear
the discussion and have a chance at that time.
Boharski: No, I think that we're certainly open to having you
discuss this as we proceed along, and then...
Krepps: Well, let me go ahead and do this. It may be lengthy and
please bear with me. As per the notice I received at 5:45 May 22°d,
1998, we are here to discuss the continuance of my employment. My
performance is the issue according to many sources. Let me state
that it is not my lack of performance that is being considered, but
it is my performance according to State Law, City Ordinances and my
Employment Contract that is triggering responses to terminate me.
I have been asked by certain members of the Council to fulfill my
job responsibilities by "twisting and bending laws and doing
exactly as we tell you." Those are quotes. This is a breach of
good faith of public policies that have been duly approved by this
Council by State law or by the vote of the citizens of Kalispell.
This particular Council, at least some members of it, have not
dealt in good faith with me and/or the Contract that I have with
the City. They have breached terms of my Contract with the City
and have committed certain torte violations. This will be
determined at a later date as to the ramifications of this breach
of good faith, public policy and State and City regulations.
However, since this is the time and place that I have to address
certain subjects, I do have more specific things to illustrate
what's going on within the City government of Kalispell. There's
apparently a majority of the Council who wants to control and/or
undermine the City Manager's form of government, in my opinion.
Despite public statements to deflect this idea, I submit the
following information to you and the citizens of Kalispell. In
December, in the orientation meeting with the City's new Mayor, it
was quite clear that the Mayor had different expectations from his
new position than what is legally expected. In review of the job
role of the Mayor, and in discussions, it was clear that the Mayor
had misconceptions of his authority. The Mayor was upset when I
informed him that all information sent to a Council member, or to
him, would go to all members of the Council. He said, no, when I
was in the legislature two or three of us would work on an item and
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when we were ready we would present it to everyone else. I
indicated that that's exactly the reason that everyone receives the
information at the same time. This is to avoid surprises to other
members of the legislative team. This is a common practice within
the City Manager's profession and has been my operational mode since
before coming to Kalispell and since being in Kalispell. Due to the
many comments that were attributed to Mayor Boharski by Kathy
Kuhlin, I requested a legal opinion from the City Attorney on
December 26, 1997. Mayoral comments, as repeated by Kathy Kuhlin,
illustrated that after reading the roles of the Mayor and the
Manager, the Mayor apparently said, "I'm concerned that I cannot
fulfill my campaign promises as long as there is a City Manager,
and I thought this would be like the Governor's... when he comes into
the office ... he fires anyone he wants and brings in his own staff."
within the request for the legal opinion, I specifically asked
about a clarification of the Mayor's, the Council members' and the
City Manager's role. The legal opinion that I ... the memo I sent to
Glen Neier on December 26'-...follows and it's somewhat lengthy
also.
(A verbatim transcript of the memo is attached as Exhibit #2 and is
incorporated herein as if set forth in full at this place.)
On December 30, 1997, at 10:45 a.m., Dale Haarr called me. Dale
called... I read a memo that I made at that time.
(A verbatim transcript of the memo is attached as Exhibit #3 and is
incorporated herein as if set forth in full at this place.)
Beginning at approximately 12:30 December 30`"', Council members
begin to assemble in my office. Mayor Boharski, Gary Nystul, John
Graves and Dale Haarr attended the meeting. The group was prepared
with written notes ... the Mayor began the discussion. The Mayor
indicated he had six votes for anything and he'd been discussing
several items. The Mayor indicated that the Council and Mayor are
the front line of the organization. There will be a significant
difference with this Council from the prior Council and Mayor.
They do want me to manage the City organization. They may want to
reorganize the Fire Department... they want to improve the ISO
rating. I indicated that they would have no problem with me as
long as Montana Code, Section 7-330-5 was followed. Bill Boharski
indicated that we can't ask questions or directly get information
from Staff then we'll change the Ordinance for the authority of the
City Manager. We'll take away the power to appoint. They discussed
purchasing procedures... indicated they wanted to have more meetings
like this with me to be more informed. Dale Haarr indicated he
wants us to get the Valley Bank parking lot option back
on...$160,000, that option had run out in December of 1997. Dale
Haarr also instructed me to get the National Flood offering going
as soon as possible. Gary Nystul talked about downtown
revitalization... indicated that the Valley Bank parking lot is a
key component. We should discuss and hire consultants from
Idaho ... the ones that did consulting in Coeur d'Alene. We need to
utilize them. Gary Nystul also stated we need to be up to speed on
everything, every detail. He asked to see copies of all mail
coming into the office. Gary Nystul also indicated we need to
clarify what the City's role is in building permits and zoning
processes. He also stated that he is not satisfied with the Public
works decision on the Elks Lift Station for $180,000.00 worth of
pumps used in the Lift Station, and was not satisfied with the
answers as we had given them. The water well, he was not satisfied
with the placement and the cost of the new well ... the street
overlay program... he thought perhaps we should be reconstructing
rather than overlay and he indicated this would be different in the
future. I asked about the possible change of authority for
signatures on Plats, Ordinances and Resolutions... the Mayor
indicated this would be done by a stamp. Gary Nystul stated go
slow... quote... in filling vacancies, any within the City, it would
be a shame to hire someone and then fire them. I suggested
bringing in a facilitator, Dr. Ken Weaver as a suggestion, to
discuss roles, planning and education and Gary Nystul's response is
this would be of no value. I should point out that at the end of
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that meeting, I had prepared some remarks that I told them that the
following.. , that they would have no problems as I had indicated
before ... but I would not violate any laws of the State or the City.
I would not do any ethical violations. I would resist encroachment
on my professional responsibilities as per the International City
Manager's Code of Ethics. I would not allow interference in
carrying out policies... will handle each, and every problem,
without discrimination on the basis of principles and justice. I
would handle all matters of personnel on the basis of merits so
.that fairness and impartiality governed decisions. The Manager's
chief function is to serve the best interest of all the people and
the Council as a whole in open session would determine when or
where resources go, what direction we take, not small groups of
Council members. In early January, Gary Nystul spoke with me. At
that time, he was just telling us about ... he indicated that he
wanted to talk about goal setting ... we needed a base of
knowledge... we'd like a tour of the facilities. Talked about the
SWAT and vehicles for PD, not having the need for those. Two goals
of strategic planning... they could clean up the old laundry list
and the School District building, the Maintenance building and try
to finish out that lease. And... quote... tell us when we're doing
dumb things. He also brought up that there was bad timing on
certain things and I asked for a specific example. He had no
,specific examples. He did not like ... he talked about Larry
Gallagher's department and some of the things we're doing there and
he did not like that and financial... there's been no financial
quarterly reports and he would like to see those. And approving
new rates ... the ambulance rates ... he was very upset about ambulance
rates. He also then again brought up the Elks Lift Station, again
the pumps, and he thought the Council needed to establish a base
and establish vision and direction. And anyway, on January, at the
PECDD presentation that the Council had asked for, we put together
the presentations. The first time comments were made about the
Site Review, that's the first time that had come up. The changes
that they desired. The technical stuff. The housing... moving the
house at Grandview... there was discussion about that. Three inches
of asphalt on streets requiring different types of ... specifications
for different areas. The Whitefish Professional buildings and
Loren's Auto again came up, and why we had to do what we did with
their buildings that had been ... both of those subjects had been
calls that I had received from Dale Haarr previously when he was
upset about the regulations and type of enforcement for building
codes. On January 15, 1998, Bill Boharski called Rich DeJana. At
that time he wanted to hold up the bids until KidSports knew what
they could donate. February 3'd, Mayor Boharski and Council member
Scarff testified against the City at a Board of
Adjustment... testimony was against the City and required setbacks
as per existing policies. On February 5t", the Mayor called Al
Thelen at 11:05 a.m. for 42.7 minutes and again, at 11:51 a.m. for
6 minutes. He indicated to Mr. Thelen that there is a need for his
services for facilitation or to act as Interim Manager because I
won't do what they want. On February 17t", he called Bruce
Williams, apparently to discuss a personnel matter. On February
25t~, Mayor Boharski called Al Thelen again for 12.4 minutes.
During these discussions, Mayor Boharski indicated that Gary Nystul
had encouraged him to call Mr. Thelen to discuss their options.
During this discussion, Mayor Boharski also indicated to Mr. Thelen
who they were considering for Interim Manager since he would not be
available. This would be a person currently on Staff ... at that
time that was the discussion at least ... I will not review, or
divulge who that person is. As a digression, on February 4, 1998
I called Bob Worthington at MMIA, our insurance carrier, and
informed him about the Mayor and Council member who testified
against the City at the Board of Adjustment. He indicated that
this is not in the course of, or in the scope of, their duties.
The statutes are quite clear that this action is outside of their
authorized role. They could be sued without protection from the
City for putting the City at risk. This is a clear violation of
the insurance... from the insurance perspective... and this is
actually on the first page of our insurance policy as the first
item. On February 10, 1998, at 3:45 p.m., Mayor Boharski called
Susan Moyer. He asked about our ownership of the Courtyard. How
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long —five years approximately. How long has it been
running... approximately three years. He had received a call for a
resident over the weekend ... from a resident over the
weekend... about leaks and problems with the floor. Susan Moyer
indicated we aren't involved in the house problems... that's with
the contractor and home owner. Mayor Boharski never did talk to me
about this problem. On February 121-' , from 3 : 15 to 5 : 10 , after the
Debbie Gifford going away party, Bill Boharski, Doug Scarff, Dale
Haarr and Norb Donahue met in my office with me. The Mayor passed
out a typed agenda...two pages long. He indicated that Gary had
typed this. I did not get one, nor see what was on it. The Mayor
started discussion by stating that he felt the first meeting with
them was confrontational. He then stated that they will not be a
distant board of directors. ..we will be involved with the City
operations. We can't do this without being informed. They
indicated they had problems with the Departmental presentations.
Larry Gallagher's Department was not informational. His
presentation was a justification and talked to them as if it was a
lecture, however the Parks Department was a good presentation.
They indicated that John Graves was upset because he had not
received a map for the City. Gary indicated the sweeper questions
for the downtown sweeping ... he did not like our response. Dale
Haarr raised a question about the soccer fields, as unfunded lease
at the airport. They questioned Larry Gallagher's attitude toward
the City. Gary Nystul indicated he wants to see all contracts
before they are signed. He doesn't like my management style ... when
it came to the reference to my sick leave policy, holiday pay,
vacation request memos. These memos strengthened the ability to
have employees on the job and allow the supervisors to plan work
schedules rather then not having ... until the last minute... knowing
who will actually be at work. we did not change the policy, but we
increased documentation and advanced warning. The sick leave memo
was to reduce abuse of sick leave within the City employee pool.
When you evaluate the use and balance of sick leave, it is apparent
that the past practices are not an efficient use of tax dollars.
Gary Nystul and Dale Haarr were concerned that there are too many
expenses for training in the Police Department. Dale Haarr
reiterated his desire to eliminate the PD SWAT team. The Mayor
indicated that Diane Harrison's presentation was bad, too emotional
and had ... her findings of fact for the Board of Adjustment are
B.S... we'll just put it that way. On February 23" at 3:00 Mayor
Boharski met with several people, including the Jackola personnel,
in a private meeting. The meeting was approximately two hours
long and did not include City Staff. I was later told that the
meeting was about two subjects: parking structure at the Bulldog
Lot and discussion of the Dome project located on Lynch property.
As a side note, later meetings with the same people by Staff,
revealed drawings and research of a Dome project and a parking lot
project for the Bulldog lot had already been completed. On
February 17`r, the City Attorney provided a written opinion to
questions raised over the last two weeks by Employees, Managers,
City Officers and Council members. That response did respond to
some of the questions I had raised earlier back in December.
Atkinson: Excuse me, Clarence. Who's written opinion is this?
Krepps: This is the ... Glen Neier... from the City Attorney to the
Manager, the Mayor and the City Council.
(A verbatim transcript of the memo is attached as Exhibit #4 and is
incorporated herein as if set forth in full at this place.)
The Council has abused, in my opinion, and violated the intent of
specific duties, discussed elimination of certain management
authority and the power to appoint subordinates. The Mayor and
certain Council members have continued to add items to the agenda
for action without prior notice to the public. A public notice is
required by Montana Law and has been ignored on several occasions.
Based upon personal comments made by the Mayor and/or Council
members, it is possible that open meeting laws have been violated
on one or more occasions through meetings at the Mayor's house, at
the office of Gary Nystul or through the rolling phone calls that
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determine positions or actions prior to open meeting discussions.
On February 20th, I received a memo from Larry Gallagher outlining
Staff communication concerns. The memo is dated February 20th,
directed to me from Larry Gallagher.
(A verbatim transcript of the memo is attached as Exhibit #5 and is
incorporated herein as if set forth in full at this place.)
Attached to that memorandum is a memorandum from Susan Moyer to
Larry Gallagher, relating to a February 10, 1998 telephone call
from Mayor Boharski.
(A verbatim transcript of the memo is attached as Exhibit #6 and is
incorporated herein as if set forth in full at this place.)
Another memo attached is telephone conversation January 5, 1998,
with Mayor Boharski from Susan Moyer to Larry Gallagher.
(A verbatim transcript of the memo is attached as Exhibit #7 and is
incorporated herein as if set forth in full at this place.)
On February 26th, I received a memo from Jim Hansz concerning more
direct inquiries with employees below my level and below his level,
which included a memo from Dick Brady, the Street Superintendent,
to Mr. Hansz: On February 25`', I was contacted by Bill Boharski
regarding our street sweeping ... and to make this one somewhat
short —it amounts to why it has been swept three times in the last
two weeks in the... this particular street and he talked about it
could be a scheduling error and he also tried to explain to him how
the dust is kept down by running two different sweepers in... trying
to keep enough wet ... trying to keep the dust down. He said he
would try to take care of it with the Street Foreman... see if there
is any particular problem ... but it's just another item that's going
around the City Manager. On February 27`h, an employee informed me
that Kathy Kuhlin had a discussion with her about getting the
combined Clerk ... not getting the combined Clerk and Administrative
Secretary's job. Kathy told that employer... or told that
employee... that Mayor Boharski was extremely upset with this
personnel decision and he was going to take care of her. He also
said that he would fire me immediately but he can't do that.
Politically at this time it would be very unpopular. A side note
to that was Glen Neier received a call from Mayor Boharski on
Tuesday, the 24th of February, to ask him about his authority to
hire an Administrative Assistant for him or for the Council. Glen
said he informed the Mayor that they already have an employee and
that is the City Manager. On March 9L°, I received a memo from Jim
Hansz, inquiry of the Mayor directly to Fred Zavodny about why the
yellow zone is so long on the west side of 5th Avenue West and
Montana Street. Those ... that was based upon a former traffic
safety study done by Marvin & Associates, that was transmitted back
to the Mayor. On March 2°° at 9:20 a.m., Glen Neier informed me
that Dale Haarr called him at home, reference to my hiring Theresa
White rather than Kathy Kuhlin for the Administrative
Secretary/City Clerk position. The entire discussion was a
personnel subject, reference who, why, how much is she getting paid
and etc. On March 16th, Mayor called the City Attorney twice about
the same subject. He wants Kathy Kuhlin to keep her job. March
25th, 1998, I received a copy of a memo from the Building Official
in reference to the Mayor advising citizens about a zoning
question. This is from Craig Kerzman to Larry Gallagher with a
copy to me.
(A verbatim transcript of the memo is attached as Exhibit #8 and is
incorporated herein as if set forth in full at this place.)
On March 26th at 10:45 I received a visit ... a visitor ... Mr. Bill
Goodman, who stopped in. He requested my advice. He indicated he
was to meet with Mr. Boharski, Dale Haarr and John Graves on
Friday, March 27", 1998. At that meeting, the Jackolas were to
discuss the parking structure with him... about the building located
at the Bulldog parking lot. Mr. Goodman was concerned about
whether this was a correct way to do this and whether he should
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attend that meeting. I advised him that I couldn't tell him what
to do, but in my opinion, it was the wrong process. He wanted me
to tell him how to do it correctly. I advised him he should keep
everything open at the Council meetings rather than in private
meetings. At one o'clock, when I returned from lunch, Ross Plambeck
was in the parking lot ... he asked me if Mr. Goodman had talked with
me ... reference the parking lot and the lunch meeting because he had
also indicated that Mr. Goodman had talked with him about his
concern. Excuse me just a second here. On April 157, 1998, the
Mayor called the Assistant Finance Director inquiring about
property taxes, why they were paying ... were being paid February and
March. She said she didn't know so she transferred him to the
County. On April 7t', 1998, Dale Haarr presented, in a public
presentation to the FBIA, the Dome project. He indicated that all
items were a done deal —that's quotes... annexation, sewer and water
extensions are done. When asked about this, he told them the road
money and water money is available since they didn't spend it on the
ballfields last night. Industrial zoning ... when asked about
industrial zoning... there's no problem with the changes ... that and
the Master Plan... the Planning Board is under control as well as
the County Commission and the City Council. It's all taken care of
apparently. That was confirmed by a person that was at the meeting
and asked some of those questions. And then, I received a memo
from Larry Gallagher about miscellaneous conversations:
(A verbatim transcript of the memo is attached as Exhibit #9 and is
incorporated herein as if set forth in full at this place.)
On Wednesday, April 87', 1998, Alf Barnette, Director of JOBS Now,
called requesting information on thirty to fifty acres of
industrially zoned property on the rail ... at Highway 2 and the
intersection of the Burlington Northern spur line. During our
conversation about this, and other industrially zoned property, I
mentioned that Montco, Moco, McElroy Wilken and NUPAC property on
Reserve and Highway 93 North. When I mentioned NUPAC, Alf informed
me that on Tuesday... excuse me ... April 7t``, 1998 he'd been a guest
at a Flathead Business Industrial meeting where City Council member
Dale Haarr made a full presentation of a major development project
involving all the Lynch property on Highway 93, a 20-acre parcel
owned by Montana Highway Department, and all the agricultural land
between FVCC and Reserve Street. Alf said Mr. Haarr had site plans,
renderings and told the FBIA members present the property would be
annexed into the City, sewer and water utilities would be extended,
Grandview Drive would be extended north to Reserve Street, and that
all of the highway frontage on Highway 93 North and the corner of
Highway 93 and Reserve, would be zoned for commercial development,
kind of like Reserve Street in Missoula, Alf says. The plans
Council member Haarr presented, call for a Dome Hockey Stadium and
the Flathead County Fairgrounds to occupy the easterly part of the
real estate between the commercial on Highway 93, and the river,
but he said the land would not be annexed so it would become tax
exempt property. The ValleyDome, or KaliDome, as it was called, was
to be financed by someone else with money coming out of Seattle or
perhaps the Hockey team owners. Alf asked Council member Haarr the
status of the project, how far along it was, and was told, it's a
done deal, or practically a done deal. Council member Haarr also
reported he was able to find some money for water extension and
road construction because the City wouldn't be using City water or
Gas Tax Funds for the Kalispell Athletic Complex project. Mr.
Haarr told the FBIA members present that the County Commissioners
were on board and this project was going to get done. Alf
questioned me as how can they do that if they tell me it's zoned
industrial. The first news of the potential project came from
Steve Herzog, Montana Highway Department. Steve asked for staff
input during a Site Development Review Committee meeting on
February 26, 1998. Steve asked the City Manager and staff present
...the project had come before the Site Review Committee because
Highways was considering the sale of its lands on Highway 93 north
adjacent to the NUPAC property. No one in the room had heard of
the project, or had seen the site plan that Steve presented. He
left a copy with us. On April 1, I met with Ray Harbin, Right Of
Way Acquisition Specialist with the MDOT, who confirmed that the
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Highway Department had entered into a Memorandum of Understanding
with the entity planning the KaliDome. He told me that they were
planning on moving their highway operations from their property,
adjacent to NUPAC, to property north of Highway 93 close to the
National Guard Armory. On April 8, 1998, Gib Bissell invited me to
go on a bus ride to Fernie with Dale Haarr, Dale Williams, Gib and
others to attend a hockey game. I understand Mike Baker had also
been invited and I had also been invited too. When I told him I
know nothing of the project, Gib said, get ready, they're going to
shove it down your throat. He said as a friend, I believe as a
citizen concerned that the entire City Staff and Management appear
to be outside the loop on the project. He was also concerned about
the Daley Field property sale and funds for Kalispell City Airport
improvements. On Thursday, April 9", we discussed this in a
Department Head meeting, and other members of the Site Review
Committee, and discussed it with Glen Neier later that afternoon.
I asked Glen, this again being Larry, as a public official what are
my responsibilities regarding the information. His suggestion was
to document it. During the same meeting, I informed Glen of Dave
Thornquist's request for Purchase and Development Agreement on Haven
Field and Glen has informed me there is no Purchase Agreement to
his knowledge. He asked what Mr. Thornquist's intentions were. I
told him according to conversations Dave had with Ross, he was
going to appear before the City Council and voice his concerns
about the way the City had treated developers and the unfair
treatment he believes he's received on the Haven Field negotiations,
and on the KDC site. Glen stated his concerns that the City
Council must follow the law in offering the KDC and the National
Flood ... NFS property. Both of us have expressed this concern to
the City Manager. On April 14rh, the Mayor called a meeting with
me to discuss a parking structure at the Bulldog lot. Ed
Gilliland, Chris Jackola, Bill Goodman, John Harper, Bill Boharski,
Ross Plambeck and Larry Gallagher attended the meeting. At this
meeting, we were presented drawings of potential structure —of a
potential parking structure... estimates of costs, etc. by Chris
Jackola and other people he had solicited information from. The
Mayor was quite familiar with the plans and we discussed the
process that would need to be followed. We talked about the notice
to the owners, a public hearing, change of Urban Renewal Plan,
RFQ's, RFP's... a total evaluation of a structure to ... should include
construction, maintenance costs and management. Chris Jackola
estimated eighty plus basis for a estimated total cost of one point
two million dollars. The Mayor indicated we should finance a
portion of this. There's questions on 3rd Street close ... should we
close 3rd Street or expand 3r" Street... indicated he knows there's
not much interest in a parking structure from the Council,
especially from Gary Nystul. April loth, received a memo from Lary
Gallagher, records, information he had received from a telephone
conversation about the Dale Haarr presentation. There again, just
reconfirmed what we'd already went through. April 13`", a memo was
received from Larry Gallagher. This one outlines conversations
with Richard Mendenhall:
(A verbatim transcript of the memo is attached as Exhibit #10 and
is incorporated herein as if set forth in full at this place.)
On April 29`h, we had a meeting with the Jackolas, the Dome
representatives, with Dick Ammerman, Jim Hansz and myself arranged
by the Mayor. The Mayor had called earlier in the morning and
asked if we could have a discussion with him about the extensions
to the utilities and/or streets. We received the presentation and
discussed the financing options ... we left the meeting with the
following: the Public Works Department was to estimate utility and
road extension costs; I was to check into the financial options
with Mae Nan Ellingson, our bonding attorney for the City.
Before ... a memo that I had sent to Mae Nan...after I received a
call on April 28"' from Mae Nan Ellingson... she called... and after
I had called down to set up a meeting with her, she wasn't there,
so she called back a little later. I was going to have a meeting
in Polson on May 7Ih so I was going to set up a meeting with her at
that time, and meet with her in the morning so she wouldn't have to
drive up here. Mae Nan Ellingson informed me that she had received
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a call from Thor Jackola who said that the Mayor and Clarence had
told him to call hBr_ 2 indicatad that 2 had not... indicated to
call her, but perhaps the Mayor did. We discussed the request for
her to meet with them. She is the City's bonding attorney...I would
have to approve of her meeting with them and to pay for her
meeting. I, in an effort to get some firm answers, told her that
we...I would authorize it. On April 29', I submitted a memo to the
bonding attorney outlining questions that were raised at previous
meetings with the Mayor and developers. My memo to Mae Nan
Ellingson follows:
Before our meeting on Monday I would like to have you
think about some of the questions that have been raised
regarding the proposed use of tax increment to finance
the sewer, water, streets necessary for new development
proposed north of Flathead Community College. The
project would be bounded by Reserve Street on the north
and currently the Kalispell City limit ends at the
Flathead College north property line. Number one: the
proposed project is to amend the City -County Master Plan
and current zoning from Industrial and AG-80 for the
entire area to allow B-2 strip commercial retail
development along Highway 93 North and possibly a
shopping center at Highway 93 North and Reserve, and to
allow construction of a valley Dome, 10,000 seat sports
dome arena for professional hockey and local sports
events, rodeos and shows. The project would require an
addition to a Master Plan and Zoning Ordinance amendment;
annexation to the area which is not currently served by
City utilities or streets. The developer proposes the
extension of City services be paid for with tax
increment. We estimate the costs could run in excess of
three million dollars. The developer proposes that
Grandview, a street...a City street...which now ends at
the College be extended one mile north to connect with
Reserve and that cross streets connect Grandview with
Highway 93 North. This would require at least two new
traffic signals costing one hundred and thirty two
thousand dollars each. No plans have been submitted yet,
but we understand the developer will ask for
approximately fifty acres of commercial zoning with more
possible. The State of Montana, DNRC staff, indicated
that if the City amended the current Master Plan to
permit highway commercial zoning in this area, the State
will ask for similar treatment and annexation and
extension of services on at least one hundred and sixty
acres of school trust land located just across the
highway west of the area we are talking about. This
would result in over two hundred acres of new strip
commercial zoning along Highway 93 North. It should be
noted that the State has been willing to work with us
under the Master Plan which is AG-80, to do a full
Neighborhood Master Plan for public lands and
governmental use. The City's building a one point two
million dollar baseball complex on one hundred and thirty
eight acres the City has leased from the State as part of
the State land school ... State school land section. Larry
Gallagher is concerned that we have already adopted three
tax increment finance urban renewal plans, downtown urban
renewal projects, due to sunset in 2001. The West Side
Redevelopment Project, Gateway West Mall and surrounding
property and the Kalispell City Airport and Youth
Athletic Complex Urban Renewal Plan. All three of these
plans include incentives to stimulate private retail
commercial development, or redevelopment, of existing
under utilized land already in the City and zoned for
retail commercial development. The sound and feasible
financing plan for the improvements necessary to do the
minimum FAA safety improvements to the Kalispell City
Airport is a combination of land sales, of Daley Fields
and Haven Fields, and the possible issuance of tax
increment bonds for the shortfall. The City has already
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obligated all of its cash proceeds from selling Haven
Field and Lot 2 of Daley Field for the one point two
million dollar Youth Ball Complex now under construction.
We expect another one point four million dollars from the
sale of Lots 1 and 3 of Daley Field to help cover the
costs of an estimated two plus million in minimum safety
improvements to the Airport. If we don't sell the land,
we can't finish the project or issue bonds for
improvements. There's also the need to finance storm
drain improvements and a traffic signal at the new
intersection and 3rd Avenue East to serve the Daley Field
site we sold to Rosauers. The issue that concerns us is
that if the City zones and extends services to permit two
hundred acres of retail commercial development on Highway
93 North, it's opportunity to sell the ten acres
remaining on Daley Field south of town is diminished in
value or not saleable. A retail power strip similar to
Missoula's Reserve Street development will limit retail
expansion to the south of Kalispell. The west side
projects' immediate goal and two point one million
dollars in urban renewal project activity included in
this year's budget, was to provide necessary incentives
to redevelop the ailing Gateway West Mall. The developer
has been working on anchor tenants. The developer
anticipated from fifteen to seventeen million dollars in
new development for the City if we would provide
infrastructure and help with demolition of existing
improvements. Because of the news of rezoning a possible
two hundred acres of undeveloped land along Highway 93
North with annexation and extension of services, two
National tenants considering Gateway have backed off from
any commitment. Uncertainty of what may, or may not,
happen to the County Fairgrounds is another reason the
developer cannot get tenants' commitments. The City will
be unable to implement the West Side Redevelopment Plan
and Project as currently drafted without the Gateway
project moving forward. The City's Development Agreement
with Kalispell Center Mall requires Cavanaughs
hospitality to proceed with six point seven million
dollars in new development within the next eighteen
months or start lieu payments... payments in lieu to the
City. We understand they, too, are having difficulty
securing anchor tenant commitments to expand or locate to
the Center Mall. Existing Urban Renewal Plans were all
adopted after public notice and hearings and by
ordinances stating the necessity and public purpose of
the plan objectives and use of tax increment to provide ,
the necessary incentives to encourage retail commercial
development. All have a financing plan based on land
sale proceeds and/or tax increment cash flow or bond
proceeds being available to pay for project activities
identified. All would be affected adversely if there is
a limited chance of attracting retail commercial/private
redevelopment investment in the project areas. There is
concern that amending the City -County Master Plan to
permit retail and commercial use instead of industrial;
extending City services; annexing vacant land and
industrial land, and developing it for privately owned
sports dome does not meet intent or purpose of the Urban
Renewal Law. How do we answer that question. The
Mayor's asked if we can use TIFID provisions to extend
utilities beyond the ValleyDome area to cross Reserve
Street and serve Semi Tool development area, another half
mile east on the north side of Reserve. There are other
property owners on the north side of Reserve that have
requested City services and commercial zoning in an area
that has already been strictly limited to agricultural
and residential zoning, with the exception of Semi Tool
and a Church. As you can see there are many issues that
need to be addressed. We have not seen a detailed plan
or Master Plan request yet. It appears the developers
and several City Council members believe this is a
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project the City should support with the use of Urban
Renewal powers and tax increment. If you agree, we will
then have to explore if bonds can be marketed to raise
the capital needed for the public investment. I know
this is short notice and a less than complete list of
questions and issues that must be addressed, but I hope
this advance list of questions will allow the best use of
your time when you arrive Monday.
On May 4t-, we held a
meeting with
the Dome developers, the Mayor,
Mae Nan Ellingson...
also in attendance was Glen Neier, Jim Hansz
and Larry Gallagher.
And there is
a memo as a follow up and hand
written notes from
that meeting,
but this is a memo from Larry
Gallagher, my notes
coincide with
his:
(A verbatim transcript of the memo is attached as Exhibit #11 and
is incorporated herein as if set forth in full at this place.)
One thing that wasn't outlined in this area, we did have a
possible —we talked about the possible options that was
available —that would be an SID, maybe, a GO, yes, but that would
require a vote of the people, TIF, no, and possibly a split or a
combination of those different types of funding purposes... funding
potentials. The rest of this basically backs up the same
information that Mr. Gallagher had. The ... on May 14, 1998... the
Mayor called Narda Wilson. He was concerned about the leaks about
the use of TIF funds. The Mayor and Dale Williams came into the
FRDO office and told Tom Jentz that they will ... it. ..the dome
project ... work in terms of the Master Plan and zoning. Also,
members of the Planning Board have been taken to lunch to discuss
the changes for this project. We received copies of the schedule
given to developers... by the developers... for the FRDO
schedule... and taken us to there... so we finally received a copy of
that dated May 6t On May 8-`1 a memo from Larry Gallagher, I'll
read only section... paragraph... section one I should say:
(A verbatim transcript of the memo is attached as Exhibit #12 and
is incorporated herein as if set forth in full at this place.)
On May 12t", 1998, at 8:15, Dale Haarr called. I was in a meeting
with the Public Works Director and was unable to take the call. I
then began a meeting with Mr. Rick DeHooge, the consulting
negotiator, when I walked out for a moment. Mr. Haarr was a Kathy
Kuhlin's desk. He informed me he wanted the Dome on the agenda to
get the Council commitment and direction to the Staff to do
anything possible to support the Dome. I asked why we should be
doing this at this time. He informed me that he was very upset
with the rumors that Larry Gallagher and I were trying to shut down
the Dome. I responded that we were not trying to shut it down, but
we're not going to do anything that's not legal. I also informed
him that during his presentation for the Dome project, he'd
indicated it was a done deal and the feedback that we get is that
he is the one spreading the rumors about Larry Gallagher. In the
meeting with the Mayor, approximately one hour later, I informed
the Mayor that Dale Haarr wanted the Dome on the agenda. He said
absolutely not, he would take care of Dale. On May 12t", the
following notes ... I have a memo from May 12":
(A verbatim transcript of the memo is attached as Exhibit #13 and
is incorporated herein as if set forth in full at this place.)
That was the end of that particular item. On May lC", I was
informed that Gary Nystul had a discussion with a Staff member
approximately three weeks ago about the Staff member's
qualifications and interest as serving as the Interim Manager when
they fire me. At 4:20 p.m. on May 18`_-, I received a call from Al
Thelen. Dale Haarr and Gary Nystul had called him on Sunday night.
They said they had a six -three vote to fire me and they intended to
do it tonight ... on May 18�. Apparently the City Attorney headed
them off since the proper process had not been followed. Some
miscellaneous items. At the 14' meeting, the Mayor indicated that
memos were not necessary. The memos that were referred to earlier,
12os,
1208
to go to all the Council, why don't I just pick up the phone. I
explained to the Mayor that this is the process that was in place
when I came, but I see the need to continue documentation. Also in
the five -fourteen meeting, I asked the Mayor what I needed to do to
stay on the job. He indicated again, do things the way we want and
keep us informed. He asked me about how many calls I got over the
weekend about the trees being removed in the park over the weekend.
I told him none. He was upset he didn't know about it ... excuse me.
This is a project for the whitefish Lawrence Park Trail,
enlargement of the greens of the golf course and removal of
dangerous dead tree hangers. On five -fourteen he also told me I
should be firing Larry Gallagher. I advised him that would be
wrongful firing. He then indicated they would do it through the
budget process then. On five -fourteen, in the afternoon, Kathy
Kuhlin asked me if I had seen a fax for the Mayor. He had been in
to get it. I indicated I had not seen it. On five -eighteen at
8:30 the Mayor and the City Attorney received a fax from DAD
Davidson with a list of State Bonding Attorneys throughout the
State. At the December Council Meeting, Council authorized me to
begin a Space Needs Analysis as budget ... as budgeted I should say.
At the meeting on February 12`", they informed me not to do this,
so it hasn't been done. On April Cn, 5" and 6" the Mayor and Gary
Nystul spent several hours on the phone with the Ballfields
consultant and the low bidder LHC. The lengthy discussion was an
unauthorized negotiation and possible illegal reduction in the
scope of work for the Ballfield Complex. This was to reduce the
project down to seven hundred and eighty five thousand, plus twenty
five thousand for a temporary hook-up to the City for water. This
actually resulted in a construction reduction agreeable to the
contract in the area of about eight hundred and sixty one thousand,
one hundred and one dollars. when I discussed this with the City
Attorneys on the 6r.', they indicated this process is not legal.
Gary Nystul or Mayor Boharski did not call the Manager or the City
Attorneys before conducting unauthorized or illegal discussions
with the contractor or developers... or contractor or engineer. The
Mayor has called representative David Ewer and Mrs. Faus at the
Board of Investment. It's my understanding that they also told the
Mayor that an SID would be the best option for the Dome project.
It's my understanding that Mr. Ewer was to write a letter to the
Mayor recommending that option. I can't confirm whether he did or
did not do that. This entire saga, and the reason we are at this
point that we are today, is not the lack of performance by the City
Manager. In fact, it is the performance by the City Manager within
established ordinances, policies, plans, regulations and
professional code of ethics, that has generated the lack of support
that we will probably see here today. Roles are clarified very
specifically within the City ordinances and State regulations.
Some members of the City Council cannot accept these roles although
they were voted on and approved on two occasions by the citizens of
Kalispell. As per the comments made by the Mayor and some Council
members, it is clear that they believe that oversight and/or
inquiries mean decision -making authority for daily operations. The
Supreme Court of Montana has specifically determined that, I quote,
"Decisions which require specialized training and experience in
Municipal government and intimate knowledge of the fiscal and other
affairs of the City in order to make a rational choice, may
properly be characterized as Administrative." That should take
away any argument about that. The discussion and concerns of the
Council are not my performance, but they are now... or how... can we
control the City Manager position without being able to change the
form of government. I suggest that you can do that by hand picking
someone you can influence. I, if terminated, will leave here
knowing that I have not done anything illegal and/or unethical.
I've only got in the way of people who want more control than your
form of government allows. I have maintained the International
City Manager's Code of Ethics throughout my thirty years of public
administration and the 10` tenet of that Code of Ethics is to
resist any encroachment on professional responsibilities, believing
the Manager should be free to carry out official policies without
interference and handle each problem without discrimination, on the
basis of principle and justice. Citizens, that's what the
disagreements are about. Power, authority, who's going to guide the
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City on the daily basis, the City Manager, the Mayor or certain
members of the Council. That's all I have your Honor.
Boharski: Thank you Clarence. Is there further discussion on
Councilman Nystul's motion. Is there any further... Councilman
Atkinson.
Atkinson: Sure, I've got further discussion on that. I learned a
lot just now. Thank you very much Clarence. You gentlemen have
been very busy and that's a sad statement. You plan on firing
Clarence today. I'm sure that will happen, but it's certainly not
going to create a remedy for this City. We're in trouble when we
have situations where individuals take over responsibilities that
do not belong to them. There's laws against that. We need to
consider our tenuous situation here. we need to consider whether
we can be held personally liable for the actions that have gone on
since January. That ... that scares me a great deal. And it should
scares the citizens too because they're going to pay the bill.
Gentlemen, if we fire Clarence right now, I fear that ... that our
position... each one of our positions... are in a great deal of
jeopardy. Not only from Clarence, but from the Citizenry, and
saying that, I will encourage each of you to vote against the
motion that is presently before us.
Van Natta: Mr. Mayor.
Boharski: Councilman van Natta.
Van Natta: I guess I'm just deeply disappointed in what's taking
place here. I ... I feel like I'm trying to fly with a flock of
turkeys. The Citizens of Kalispell ought to be, I think, rather
than us considering getting rid of the City Manager, the Citizens
of Kalispell ought to be looking at getting rid of the City
Council. From what I hear, certain people are way, way out of step
with our form of government and I guess, as I said, I'm very
disappointed. I only have one vote, but I'm certainly not going to
vote for this motion.
Boharski: Is there further discussion.
Larson: Your Honor.
Boharski: Councilman Larson.
Larson: I had hoped that I could avoid making these comments, but
since five of you are unwilling to consider the facts, unwilling to
resolve this in a time-honored fashion of negotiation and
mediation, I feels as though I have to state these facts. As far
as what Clarence has said, I don't have one problem believing every
word he said and you guys can deny it all you want, but I'll still
place my credibility with his. He's a very honest man, and I can't
say that about everyone. You don't have decent reasons to terminate
Clarence. Some of the reasons I've heard, which don't make any
sense at all, are... that he's unwilling to communicate. Well that's
totally untrue. Clarence has gone out of his way to provide clear
and accurate communications with this Council. Perhaps at times he
hasn't had ... had the needed information to communicate because the
Staff and a segment of the Council has had information
withheld... that they withheld from him, and it's pretty hard to
communicate something that you read about in the newspaper or hear
on the streets, with any accuracy. Communication street runs both
ways guys, and you've got to remember that. The other thing I've
heard is he's unwilling to cooperate. Well, if your definition of
cooperation is to do it no matter how it gets done, whether it's
procedurally correct, legal, morally or ethically correct, then I
guess Clarence is guilty of being uncooperative. However, if you
view cooperation as researching ramifications of a particular
project, or program, or decision then those ramifications such as
legal, financial and impact on the future of the community,
ramifications, then if we need ... if we view the second definition
as a more correct one than the first, we must admit that Clarence
has cooperated with this Council to the fullest extent that we will
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allow him to cooperate. Sometimes he tells us things we don't want
to hear, and then the cooperation quits following our directions...
quits flowing from our direction. The cooperation street is even
more of a two way street than the communication street. By firing
the City Manager today, we're sending a clear, irrevocable message.
A message that's going to reverberate throughout the... all the City
employees ... if you cross us, look out for your job. Staff members,
Department Heads, all employees, who will be next. They'll all
receive that message. will it be Board members next, Committee
members, the average Citizen that disagrees with what you're trying
to do, disagrees with six points of view, or for that matter, any
one of the six points of view. will it be retaliations against the
average taxpayer even. Clarence has been accused of stonewalling
and John, one of the people that talked to you over the weekend,
this was your pet peeve. Lowering the ISO... Insurance Service
Offices...fire rating for the City of Kalispell, if we use even a
small amount of common sense we're going to deduce that ... why would
Clarence be opposed to that and stonewall that project. When he
goes to his next job, that's an important thing to be able to put
on his resume, that he had a part ... he played a part ... in lowering
the fire rating in this community. It's a feather in his cap any
way you look at it. Why would he stonewall it. It doesn't make
sense. On the other hand, he has probably told some Council
members that to reduce the ISO will probably cost money. He's told
them that it doesn't happen overnight. He's told them that we need
to have everything in place before going for an ISO review, because
of the fact that the rate could raise just as easily as it
decreases. Especially if we get in too big of a hurry. Clarence
probably doesn't even know exactly what is needed to lower the
rating. we need to hire a consultant to advise us what ISO wants.
It's also interesting and a bit ironic that the new... the very
people that are talking ISO reduction... were also involved in
actively encouraging voters, of the City of Kalispell, to vote down
the Bond Levy on needed fire equipment. And it's also interesting
to note that they have never inquired what the ramifications of a
project like the valleyDome would have on our ISO rating. Never
once. They have never actively supported a Satellite Fire Station
to reduce response time and... response... and to reduce response
distance. They have actively tried to circumvent the fire codes,
the building codes, the zoning ordinances, all in the name of
developer fairness. And if you can sum those things up, and show
me where you want to reduce the ISO rating, you're driving down the
wrong street guys. what's going to happen here, today, besides
sending the message to the City employees is ... and even though
Mayor Boharski says this issue has nothing to do with City Manager
form of government... that's not true. If Clarence is gone, then
there's going to be a puppet appointed and you're going to give tl}e
Council power to hire and fire, back to the Council. And then the
employees better really be fearful of their jobs, because anything
that they say, whether it's warranted or not in opposition to any
project, any decision, or if they try to defend a code or an
ordinance, you're going to find out that they're in fear —going to
have to be in fear of their jobs. Regulations are going to be
slowly eroded to the point that regulations aren't going to mean
anything anymore. we live in a civilized society where we need to
be regulated. I listened to all the people who spoke here today,
and I counted the responses positively or negatively, some of them
I didn't really know. The interesting thing I found is, and this
is no great reflection on the people that testified against
Clarence and against the City Manager form of government, however
I can point out an instance, at least one, where these people have
been regulated in the past and are unhappy about it. Unhappy about
the decisions this Council made. Yes, that's true. So, you
can —they have a right to their opinion, and they may feel they
were wrongly treated, but they certainly had recourse through this
Council and through the many areas of recourse that they do have.
They didn't want to believe what they heard, and I'm sorry for that,
if you think you're over regulated, but it's always been a fair and
above board process, and no one's been treated unfairly. So, each
one of you do what you think is best, but remember, the people in
the community have a long memory. And the people in the community
are responsible people. They think things out and that's all they've
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asked you to do. However, you've chose to ignore that advice. So,
I would encourage you to think again before you do what you're about
to do. I know that what I've said will make no difference
whatsoever, because if you don't want to resolve it peacefully,
you're certainly not going to resolve it under pressure, so, think
before you vote.
Boharski: Any further discussion. Seeing none.
Donahue: Wait a minute.
Boharski: Excuse me. Councilman Donahue.
Donahue: Let's get something straight. The issue here today is not
whether or not the City Manager form of government survives in this
City. That was voted on by the people and it will continue and if
Clarence is terminated, we'll hire another person just like him,
with the same training, the same background, the same... same ethic,
the same prerogatives that they want. And that's why I spoke
against the City Manager form of government years ago, is
it...it...the City Manager form of government takes the Council
away from the people and puts a...a non -elected person there to run
the City. And this is one of the things that I've complained about.
We've had far too many policy decisions made by un-elected people.
I'm speaking specifically of that Site Review Committee that you
look over the minutes and they've had many, many instances when
they've decided policy that was never run by this Council. I've
objected to that and we were told to mind our own business. One of
the things that you find in City Managers, it's a shibboleth of
their group, you can fire us today... any day you don't like what
we're doing. That's part of the thing that was brought to this
Council ... to the City ... when the Chamber of Commerce engineered and
manipulated the getting... the vote on the City Manager form of
government. And they got it passed. Some people like it, some
people don't. But we have it, so we have to do the best we can with
it and I've pledged myself to abide by the City Manager form of
government as best I can and to see that it'll work if possible.
I've seen some things in the past two years and five months that I'm
on this Council that I've been very unhappy with. The old... the old
members of the Council ... the old majority, although they spoke
about the City Manager form of government, in actuality they ran
their own show and the rest of us who might object were ... were run
over rough shod ... didn't listen to us, wouldn't compromise with us.
That's why the City of Kalispell elected a new group this last
November. But the Council is out of the loop of many decisions
that are being made. Jim complains that he's out of the loop, many
of us are out of the loop because these decisions are made by... the
Community Development Department makes many decisions that never
reach us, policy decisions. Foot dragging, when the Council...
when the Council doesn't really like ... when the Staff really doesn't
like what the Council has decided to do ... they're dragging their
feet. I've seen it happen several times. The advertisement of the
bid for the ValleyDome...not the ValleyDome, beg your pardon... the
National Flood property was a prime example of foot dragging. Back
in November when we had a discussion on the Council relative to
giving Mr. Krepps a raise in pay, I spoke, eloquently I thought, of
why I was against giving him a raise in pay. And I brought out
many of the things then that I'm going to bring out today that
related to his ability to be a manager. I didn't feel that we were
getting our money's worth then, I don't feel like we're getting our
money's worth now. Councilman Haarr and I were the only ones that
voted against giving him a raise in pay. These are my items that
bother me, and they're specific items. Several months ago ... oh
about a year ago ... we were given a book of the Capital Assets, or
Capital Improvements, whatever you want to call them of the City
prepared by Mr. Krepps and his Staff. It was a nice book, it was
about so thick, and it had in it page after page after page of the
appraisal of equipment in the City. The graders, and the end
loaders and the trucks and what have you in the Public Works
Department, the Police cars, the Fire trucks, the equipment in the
Fire Department. The same thing with the Parks Department. There
was quite a chapter in there relative to our sewer and water
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infrastructure, was described in their language as in serious
condition... serious condition. Not totally critical and ready to
die, but serious condition. There's been no follow up with that
whatsoever... none. we don't have a plan in this City of replacing
vehicles... none. That is a management thing that should be done.
Our City Manager didn't do it. Poor management. The Ballfield
contract. They rushed to get into a contract with an engineer over
the advice of the City Council that they had some legal problems in
that enterprise. They rushed to get that contract with the
engineer... to draw the plans for that... then they rushed to get the
contract issued to the... the actual contract for the building... and
you saw what happened on this Council floor. When they go to that
they came in thirty percent over what they told ... what we —what
they were told... the money we had available for that. Poor
management. The Central School issue. You know. we got no word out
of the Manager's office that the Central School issue... regardless
of what a lot of people feel here ... was a dumb thing to do. We
spent two and a half million dollars on that project over there,
when we needed money for a serious situation in our sewer and water
departments. Serious situation. we got no advice on that at all.
I had the audacity here about a month ago to ask the City Manager
of what's happening. They've been digging over there in that Central
School and tearing things apart and so forth for about over four
months now. We have never received a report on this Council floor
as to how that was going. Never. The architect has never come
back to tell us what's happened. we hear some rumors that there's
been some bad things going on over there. Never come to us. They
send us the bills, but we never hear from them. I suggested to the
City Manager that he get in touch with the architect to have him
come and address this Council in an informal meeting and tell us
how the project was going. He said he would do that. It didn't
happen. Should have been a phone call on a first name basis. The
Council's getting restless, do you suppose you can come up and give
them a little run down on what's going on with the Central School.
We're spending two and a half million bucks on it. They'd kind of
like to know where their money's going. Nothing happened. A week
ago I see a piece in the paper, the Daily Inter Lake, to the effect
that the Director —that the Central School Board... the Historical
Society ... had hired to be their Director ... had quit and walks
across the street and got a job as an assistant of some kind at the
Hockaday. what prompted that, I don't know. In the same article
it said that Mr. McDonald from Missoula was going to meet with the
Historical Society that evening at the Outlaw Inn, and explain to
them the progress on Central School, and we weren't even invited.
we're paying the bills ... they know where to send the bills ... they
know where to get a hold of us and say, hey, McDonald's going to be
here ... he'l1... we'll meet in City Hall Chambers and have an informal
discussion on what's going on in Central School. No, he didn't do
that. The City Manager should have been on top of that, but he
wasn't. Poor management. Bothers me. He should have been on a
first name basis. we are his client, we are Mr. McDonald's client,
not the Historical Society, not Delores Swanberg, bless her heart,
she's given her life to get that thing. I respect her for that. The
Airport. I'm not a great believer in the Airport, but nevertheless
it is an Airport, it's been there, it's in operation there. Planes
flying in and out of there every single day. I also hear from the
Airport Advisory Board that there are people down there occupying
space on some kind of a contract with the City that the City has
made no effort to collect the money for the rent. They're short of
money, but we're not collecting the rent. what's wrong with that.
I don't know. Poor management. The City Airport is a ... an accident
waiting to happen. For one main reason that should be ... should be
aware ... should be understood by everybody that drives down 18tn
Street that you can drive an automobile out on that Airport without
any obstruction whatsoever. Drive a car down that ... that runway.
It's being done. It's being done. Kids are playing down there.
who knows what would happen if you got a bunch of kids with
skateboards who are down there some evening just having a whee of
a time ... in comes an airplane...cu000. Screws up a bunch of kids
that are out on that Airport without any obstruction whatsoever,
there isn't even a sign there to say this is a dangerous property.
Think of the liability. Our professional Manager didn't bring that
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to our attention. Hasn't done anything about it. You can get a
fence around there for about nine dollars a foot. An eight foot
fence, a thousand feet, nine thousand dollars, may save somebody's
life. Personnel matters. I have no problem with the City Manager
allocating personnel wherever they want to go. I disagree with the
Mayor, and some of the other people that have checked into
the... the downgrade of Kathy's job and the changing of the job for
our Clerk of Council. I have no problem with that. I think it was
wrong that we stuck our nose. ..some of us stuck our nose in
that...I didn't stick my nose in it, but some people did. But, what
that did was change the ordinance. There are things in our 1166
Ordinance, which is the organic law of the City of Kalispell, that
were obliterated by that change. our... our Clerk was given duties,
that were ... by our ordinance... are the responsibility of our
Finance Director. So what this has done is taken those duties away
from her and give it her...I like both of these ladies ... they both
do a very fine job, but it's a change of our operation and it should
have been addressed by an ordinance presented to us at the time to
change 1166, amend it, so it says what it really means. Wasn't
done. Poor management. Mayor Boharski has overstepped his —his
power. I have no problem with telling him that in front of all
these people. I've told it to him to his face. I don't think he's
done the City a good job by doing that. Some of the members of
this Council have exceeded their authority, but that doesn't mean
that Mr. Krepps has not done a bad job, a poor job. This
recitation here that took over an hour from his book that he's kept
on all these telephone conversations, and can give us to the minute
how long he's spoken, or somebody else has spoken with somebody
about something, must be paranoia there someplace. Maybe there's
somebody really after him. Who knows. I don't know, but it's
paranoia. Be careful what you've said or you may be in his book
too. And if he stands there and says that he didn't have
conversations during all this period, with our former Mayor Rauthe,
our former Council member Mrs. Kennedy and the remaining members of
that group, Mr. Atkinson, Mr. Larson and Cliff Collins, if he's
around here someplace, I'll ... I'll give you my paycheck if you can
show that I'm wrong ... he didn't have some meetings with them that
are not in this book. Anyway, I don't think that
this... this... personal fracas is going to be changed by retaining
Mr. Krepps. The schism is too deep, is too bloody and I don't give
a hoot about ValleyDome. I don't give a damn if it goes or not. I
have not been a party to any of the discussions. I haven't been in
any of these meetings that you hear about, and I've never spoken to
any of those people except in this Council Chamber. I think it
would be a good thing for Kalispell the way it's been presented, but
I will not vote for spending any of City's money on it. If they
want to spend their money, great. If they can find a way to get an
oil well on it, fine. I was in Cut Bank a couple of days ago.
went to the cemetery out there and they've got an oil well in the
cemetery in Cut Bank. It's a great thing to have. So the grass is
green, the flowers are nice, and so forth. But we don't have an oil
well. we've got a lot of good citizens. So you're probably getting
tired of hearing me, but thank you for your kind attention. I don't
know how I'm going to vote yet.
Boharski: Councilman Haarr.
Haarr: Your Honor. And I know following Norb is a tough act so I'm
not going to try to make a lot of the points that he did, but I
think that ... that I have to make my position known, and I have to
inform the public from whence I come. And, since all of this has
started, and it hasn't been that long ago, it's caused me a great
deal of reflection, introspection and thoughts on what has
happened. And, regardless of the outcome of this vote today, I
think that I can assure everyone that this Council will be more
reflective. It will be a kinder and gentler Council, which I've
advocated these last four years since I've been on the Council.
And, anything that I have done ... and there's certainly a lot of
elaborations in Clarence's comments there... there's some history
involved with that, and some of it good and some of it not so good.
I mean, the last four years were kind of rocky years, but we ... we've
made it through those years. And I guess what I learned during
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that time, under two Managers, was how a Manager actually responds
to a majority of the Council. So I would like to just bring up one
point because there's many that I could mention and they go back to
November after the election. They go back to the meetings that we
had with Clarence, and the intent of those meetings were genuine.
They were meant to inform, they were gentle, there was nothing
derogatory, negative. Just how...I saw it how business would be
conducted as we went forward, and it was not a far departure from
how it had been done. But ... but just let me relate an instance of
what the frustration has been to me. I asked Clarence early on
because he ... as we talked about dealing with... dealing with the
Council he kept referring to this Code of Ethics, and I said, well
Clarence, so I can learn a little bit about your Code of Ethics,
how about supplying me with a copy. well this I never did receive
from Clarence, but I did get a copy over the Internet. And... and
it came late and I wish that we could have been talking about this
earlier. But ... and he made reference to the ... and it's the ICMA
Code of Ethics, adopted Executive Board in 24 and most recently
revised in 95. He talked about an item number 10. well I'd like
to talk about an item number 5 which I think probably has rubbed me
wrong the most of Clarence's procedure. In it, it states this, very
simply: submit policy proposals to elected officials, provide them
with facts and advice on matters of policy as a basis for making
decisions and setting community goals, and uphold and implement
local government policies adopted by elected officials." Now the
classic example, and I think we did it as gentle as could be done,
was when a vote came up in January that ... that we were in support
of the Ballfield Complex north of town and we voted at that time to
limit the expenditure from the sale of Haven Fields and Daley
Fields to a million dollars. And I think it was pretty apparent
that by that vote that this is what we intended to do, or as the
process worked through the bid procedure, the plans were drawn and
they went ... worked with the Engineer, went out to bid, we never saw
any of that prior to the time that it happened and we never heard
any Engineer's estimate as to what the cost of that would be. I
rested at ease. I felt that finally we had made a policy decision
that was as clear as the writing on this sheet of paper. That we're
going to spend a million bucks. Well, it came through the grape
vine after the bids were opened over here that the lowest bid was
a million, three hundred and ninety five thousand or something in
that range. I still wasn't too concerned knowing that Clarence knew
of what the Council's policy was, and I sure as heck wasn't going to
get in the middle of how to re -write a bid or send down a set of
specs. Much to my chagrin, on the Friday night when we got our
books, explaining that we're going to accept a bid on the
ballfields, there was nothing in there that reminded us of what our
policy was. It was that x number of bids were provided. The low
bid is a million, three hundred and ninety five thousand and
Clarence's suggestion was, accept it. Now I learned, I think, very
well from Bruce that Bruce never would have presented it in that
way. He would have accepted the Council policy that we were going
to spend a million bucks and if he... and he would point that out
early on in the discussion. If he disagreed with that policy, then
he'd give us some options of how we, as a Council, could gracefully
get out from under making a decision contrary to that policy that
had been established. And this ... this wasn't the only case, so what
it did, and look at the ramifications of this. I made the motion.
we were in a corner. I mean we've got ... we've got kids that we're
involved with and we want to do this project and this project is
going forward and it will be done, but what happened was we used
all of the funds from the sale of Haven and Daley Field, a million,
three hundred and ninety five thousand or whatever it amounts to,
and the Airport Committee supported it, and what happened is we
depleted that supply of money, no cash, used every single nickel of
it. Then at our last Council meeting we have a bunch of people from
the Airport Board, hey, we got projects to do and don't have any
money. What do you say, I mean, we had a policy. Here's a million
of those dollars going to the ballfields. There's three hundred and
ninety five thousand left to start acquiring land, build a fence,
do whatever you have to do at the Airport, but there seems to be no
limit. We'll spend every doggone nickel that we can accumulate in
this City and hence the reason, I think, that the vote came that
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we're not going to sell anymore of that land down there until we
have a project for it that's approved and has a cap on it and if the
Council sets the policy, that's the policy. I was greatly disturbed.
I don't know how much clearer, and I think that I have learned a
whole bunch from Clarence since the first of the year, what's
actually policy and what is micro -managing. I don't want to do that.
I don't think anyone on this Council wants to micro -manage, but if
we do set a policy we're going to spend a million bucks, I think
it's his duty to tell us. ..this exceeds your policy. If he still
thinks that we ought to spend it, well here's four or five different
ways we can come up with the money and do it. In visiting with the
Engineer afterwards, he said there were ways to cut that back,
there were ways to implement it in phases. The grass would have got
planted. The kids would have played. Didn't happen. So, I throw
that out as an example of what has been extremely frustrating to
me. It's a trait... that you know Bruce was a master of. He handled
those situations well. I've tried to relate to Clarence on a
personal matter, when we had meetings with him, and wanted to do
this whole thing to grow him to a point where hey, I can do this.
I can work with this new majority. I can give you the information.
I can give you the options. I can give you my best advice. That's
all that I was looking for and that's just one example, so I don't
know how the vote will come out but I do know that I don't think
that we have to fear for our Departments. I don't think we have to
fear for reduced fire protection, police protection. Jim and the
Public works Department is going to have a ... he's got a big task to
do. The Parks Department, the Planning Department, hey, there's not
going to be any changes. I mean, you look at all these people that
are elected up here. Hey, we live here too. we've done business
here, and I guess if my involvement in the ValleyDome is a
negative, then it's a negative for helping our community. The sixty
six thousand rooms a year that people would rent to partake of that
ValleyDome, is a significant impact to Kalispell. If it doesn't go
there, and if we don't enlarge our commercial boundaries, you're
looking at Evergreen heading right on up to the Airport and then on
up to Columbia Falls, and we'll be a bedroom community of another
one. It's very evident, very apparent, and I'm sorry if you've felt
like I've overstepped my bounds but it's only in the interest of
promoting business and doing it here within the confines of the
City limits of Kalispell, so those are my comments.
Boharski: Any further discussion. Councilman Graves.
Graves: Well I don't know, my grandfather told me that I guess maybe
I think twenty five cents, but he told me that, you know, if you
save your pennies, your dollars will take care of themselves. The
big thing that I'm opposed to is the excess spending that the City
does. We get claims every month to approve. The merchandise has
been ordered, it's been put in place and paid for, and I don't even
know why we approve them. We were told we can question them, but
when we do we get a rationalized reason why they must do that.
There's just too much little spending, and I've brought this up
before. I talked... tried to talk to Clarence about it ... they put
three electronic door locks, two in the back of the City Hall and
one in the Police Department, for around thirty seven hundred
dollars. They could have purchased the four number electronic door
locks for about nine hundred and that's quite a savings, but it's
just little things like that, on and on, that I'm opposed to and...I
think I'm here to represent the taxpayers and to try and save them
some money and that's the big thing that we've got to do, plus we've
got to progress. That's about all I've got to say.
Boharski: Councilman Scarff, did you have anything to say.
Scarff: No. I have no comment at this time, however I do agree with
Councilman Haarr's foresight into some of the things he said, but
I'll reserve my comments for later.
Boharski: I guess I just want to make a couple comments at this
point in time. I certainly didn't expect to listen to an hour and
a half of Clarence's renditions of things that have happened, but
that's... that's fine ... we afforded him that opportunity and I
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appreciate that. Somewhere along the line, I guess what bothers me
most about this process, is I decided to run for the Mayor of the
City of Kalispell because I care about this community. I grew up
here, I lived here, I served in the Legislature as a representative
from the Kalispell area, I watched members of the City Staff come
to Helena, testify on issues that I didn't think were in the best
interest of the Citizens of the City of Kalispell... present things
that were factually incorrect in front of Legislative Committees on
behalf of the Citizens of the City of Kalispell, and that bothered
me. So I came to Kalispell and thought about running for one of
the Ward seats, and a couple of members of this Council came to me
and said, "you know why don't you take the experience that you have,
you're perhaps, slightly broader knowledge of the issues, and think
about running for Mayor." And I thought about it and I went ahead
and did that. And I guess I like to think that the people of
Kalispell, when they elected me Mayor last November, elected me
because they trusted my judgement. And I can assure you, and I'm
sure that this comment some people will giggle, and I think that
that's rather insulting and I think it's unprofessional, it's not
very neighborly of the people of the City of Kalispell, but
everything that I have done since I've been elected Mayor of the
City of Kalispell I've thought about very deeply before I did it,
whether it's been to visit with the local businessman, or to visit
with the man who's had his garage moved, or to speak on his behalf,
not on behalf of the Council, that I thought what he wanted to do
was a good idea, has been very well thought out. The City Attorney
can tell you that I call him numerous times making sure that what
I do before I do it is legal, safe and doesn't put the people of the
City of Kalispell in any sort of jeopardy. But, what really
bothers me, is to see the types of articles that I've read in the
Daily Inter Lake lately. I want to thank some of the other members
of the media of the Kalispell for doing what I think is a much
better job of accurately reflecting the position I've taken, the
things that we've done. I want to see what's best for the City of
Kalispell, and if that means I have to take a few shots in the head
by some people that perhaps don't like my style, or don't like my
politics, then so be it. And if I have to put up with things like
I did from Councilman Atkinson last Monday night, then so be it.
I have a pretty thick skin and I can take that, because my goal is
that in three and a half years from now, when the people of the
City of Kalispell judge the performance that I've given them, and
where the City is then compared to where the City is now, I can
honestly assure you that if we're able to move forward, things will
be quite a bit better. And that's what I'm concerned about. Not
about how they are now, or half an hour from now, or four days ago,
but what they elected us to do in November, and to see how things
will turn out in four years. And that's to use our judgement, whieh
is exactly the statement that was given to me by the previous
Council when they said, no, we're not going to let the public vote
on whether or not to spend two and a half million dollars on a
museum. We voted you in to exercise your best judgement to do
those things that were necessary to run the City, and that's why I'm
here, and I want to assure everyone in the City of Kalispell that
that's what I'm doing. I'm not out to get any City employees and any
of these rumors that you're hearing, that whatever the outcome of
today's motion is, that other employees have to be fearful of their
jobs, I think everyone .in the City of Kalispell knows and if you
don't you can talk to the man that's sitting to my left. ..knows that
it's not within the power of the City Council to hire or fire any
City employee in the City of Kalispell. Is it our responsibility,
or perhaps one of our suggestions, to direct to the City Manager
some sort of concern we have about the way an employee is acting,
sure it is. Because if a constituent calls me up and says, you
know I called up such and such a Department and I think I was
treated rudely, would you pass that along, then I'll pass that
along. And if it isn't responded to by the appropriate Staff
member, then I'll follow up on it, because that's what I'm elected
to do. To try to represent the people of the City of Kalispell.
All of them. I ran in all four wards and that's what they elected
me to do, and if they don't like it, then I think they'll let me
know that in three and a half years. Seeing no further discussion.
Perhaps a roll call vote on Councilman Nystul's motion.
1217
Van Natta: Would you restate that motion.
Clerk: Nystul moved that the Employment Agreement with Krepps be
terminated... and then I missed the part you said Gary about the
agreement.
Nystul: As per the terms of the contract.
Boharski: Theresa.
Clerk: Councilman Nystul
"Aye"
Scarf f
"Yes"
Van Natta
"No"
Atkinson
"No"
Donahue
"Aye"
Graves
"Aye"
Haarr
"Aye"
Larson
"No"
Mayor Boharski
"Aye"
Boharski: Motion carries. I think that we need a couple of other
motions to take place. I have... is there a number assigned to this
resolution Theresa.
Clerk: I never saw it. Just a moment though, and I can get you a
number.
Donahue: Question. Do we have an effective date.
Neier: I would say that was immediately wasn't it.
Donahue: Okay.
Atkinson: I had a question also, was it implicit in the last vote
that... relative to the terms of the contract... that's meaning he
gets six months pay, and that's it.
Nystul: Isn't there some...
Neier: Six months pay and ICMA retirement at the rate of ten
percent, plus there would be some accumulated benefits there Jim.
Atkinson: very well.
Boharski: For information purposes, I visited with Glen about that
this morning. The cost is roughly thirty six, thirty seven thousand
dollars in a six month provision, everything else is an amount
Clarence has accrued as any other employee has accrued over time,
perhaps unused vacation time or sick time. Those are amounts that
he's entitled to, that's he's earned up until this point, whether or
not his termination would have been effective or not.
Atkinson: May I ask the City Attorney, if in your opinion, this
action is in accordance with all legal due process, advice and
advance of hearing, providing of hearing, forty eight hours,
termination for cause,
Neier: Under the terms of the Ordinance 1166, which is Chapter 2 of
the Kalispell City Code, the City Manager and City Attorney can, by
the majority of vote of the whole Council, be suspended or removed
only after notice to the party and hearing before the Council.
Notice in this matter was given by me personally to every member
of the City Council and to the City Manager prior to six fifteen on
Friday. The notice was given pursuant to State law and under the
contract with the City Manager, he's subject to termination by the
Council by majority vote on a payment of certain benefits as
specified in that agreement.
Atkinson: So you're guaranteeing us that...
Neier: I don't guarantee anything.
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Boharski: The resolution number is 4402. Four, four, zero, two.
Neier: Now if any explanation is needed with the action of the City
Council terminating Mr. Clarence Krepps on this date, and I would
consider that termination to be immediate, there is a need for an
emergency expenditure of certain money available within the City's
General Fund which can be transferred from other General Fund
classifications and budgeted within that City Manager's line item
for payment of the termination costs. This resolution, if passed
by three quarters of the members of the City Council, will merely
be administerial in allowing the ... allowing the Department of
Finance to issue that check and to pay those termination benefits.
If it does not pass, then we ... the Finance Director is not
authorized to pay those amounts and if we don't pay those amounts we
could be held liable under a wage claim. So, my advice on this is
to pass it so we can pay those amounts that are due.
Boharski: We need a motion. Councilman Nystul.
Nystul: Your Honor. I move adoption of Resolution 4402, a resolution
approving an emergency expenditure and authorizing a transfer among
appropriations within a general classification of expenditures as
adopted by the City of Kalispell Budget for the 1998 Fiscal Year.
Donahue: I'd second it.
Boharski: Motion made and seconded. Is there any discussion.
Councilman Larson.
Larson: Your Honor. I believe by law that Clarence has to be paid
within three working days of the time he's terminated. This
resolution will provide a provision to accomplish that. Without the
passage of this resolution we couldn't do it and then you're going
to have to do some digging to find out how to do it ... live up to the
requirements of the law. I'm not going to vote against this
resolution, although I'm tempted to just to make you dig a little.
It seems rather strange to me, though, that you're concerned about
the taxpayer's money so much that you question rechargeable
batteries and so forth, but you're willing to spend thirty six
thousand dollars to terminate a man that has no reason to be
terminated. So I will vote for the resolution because all I'd be
doing is hurting Clarence by not voting for it and costing the
taxpayers more money in the form of a penalty.
Boharski: Any further discussion. Seeing none. Roll call vote
Theresa please.
Clerk: Councilman Nystul
"Aye"
Scarff
"Yes"
Van Na t to
"Aye"
Atkinson
"Aye"
Donahue
"Aye"
Graves
°'Aye"
Haarr
"Aye"
Larson
"Aye"
Mayor Boharski
"Aye"
Boharski: Motion'carries. Resolution 4402 has passed and I think
it would probably be prudent... Councilman Nystul, do you have one
further motion?
Nystul: It seems to me that we ... we need to have an Acting ... and it
seems that the City Attorney Neier is the only person that works for
the Council, and if we charge him with being the Acting and for him
to report back to us next Monday of other professional City
Manager's who may be available, and a procedure to find a
professional City Manager to be the Acting, I think that's what we
have to do. And, so with that, I would move that the City. Attorney
Neier be appointed the Acting Manager and directed to seek sources
of experienced professional City Managers to be the Interim, and to
report back to the entire Council at the regular meeting on Monday
of what progress is made.
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Haarr: Second.
Boharski: Made and seconded by Councilman Haarr. Is there any
discussion.
Larson: Why don't we just do it today and get it over with. You
guys got it figured out anyway.
Boharski: Do .... what today.
Larson: Appoint an Interim today until we hire a permanent one.
Boharski: I don't think we have one. I think that's the purpose of
Councilman Nystul's motion.
Van Natta: Let's have the question then.
Boharski: Pardon me.
Van Natta: Mr. Mayor, let's have the question. I don't want to hear
any discussion.
Boharski: Seeing no discussion. All those in favor signify by
saying aye. All those opposed, Councilman Larson voting no. Motion
carries.
(The motion carried upon vote with Larson voting against)
Boharski: That ought to take care of...
Atkinson: Your Honor. I move we adjourn.
Van Natta: Second.
Boharski: Seconded. All those in favor signify by saying aye.
Opposed. The motion carries.
The motion carried unanimously upon vote.
The special meeting was adjourned at 4:03 p.m.
ATTEST:
C
Theresa white
Clerk of Council
approved 6/15/98
LIME Brfiv�f
Wm. Bohars-Wi, ay�i' or
1220
May 26, 1998
EXHIBIT #1
Mr. Mayor and City Council Members, I am Doug Rauthe, 413 6th Ave. E.
You are about to decide not only the fate of Mr. Krepps, but also the fate of the Council -Manager
form of government in Kalispell and the future of our fine City.
I would ask you to ponder your role as the policy makers for this representative form of govemment.
You are the leaders -your primary responsibility is to try to insure that the City is "DOING THE RIGHT
THINGS" by listening to the entire community and by open discussion and decision -making by all 9
elected officials at the same place and at the same time. Again, I repeat, your leadership role is to
carefully set the staff in a direction of "DOING THE RIGHT THINGS". Conversely it is management's
responsibility to "DO THINGS RIGHT." They are the educated, trained, experience, proven, and
successful experts in their fields. Lead by Mr. Krepps, they are paid to design and develop the
"RIGHT WAY" to do those things that the council has carefully decided as a body are the "RIGHT
THINGS" to try to do. However, as we all know the "ENDS TO NOT JUSTIFY THE MEANS." As
leaders, we must be open-minded to the possibility that the advice of the City's professional staff and
our paid consultants might enlighten us to the fact that the chosen path is incorrect and as the
elected representatives we must consider the obstacles to our desires and design new solutions.
Threats, fear, intimidation and anger are old leadership techniques that never worked successfully for
the long term and have not been acceptable for decades. As author Max DePree writes in his best
selling book "Leading Without Power" - today's leaders can no longer force loyalty; they must win it.
You, Mr. Mayor and you City Council members have a responsibility to inspire the City Manager, the
staff, the community partners and the citizens of Kalispell to achieve their highest potential for the
good of our fine City. Remember, "the only definition of a leader is someone who has willing
followers" according to Peter Drucker, the renown consultant on Leadership. He goes on to say that
"Leadership is not rank, privileges, titles or money. It is RESPONSIBILITY. Drucker discovered in a
life -time of research and observation that the #1 thing that all great leaders have in common is that
they do not start out with the questions "What do I want?" instead they all ask "What needs to be
done?" Finally he observed that great leaders all passed the "mirror test" - by knowing that they were
doing what was truly "right and not petty, mean or sleazy things."
I want to remind all here present today that the City Manager position and the key city staff positions
are not political appointments. These are paid professionals and recognized as successful and
outstanding in their fields. There is no room in local government to make these positions into political
rewards. Good friends of elected officials and nice guys next door are not qualified to manage
Montana's fastest growing city, its staff of over 175 and a budget in excess of $17 million. That is the
wisdom that the citizens of Kalispell verified in 1989 when they overwhelmingly approved the City
Manager form of Government. The citizens re -validated that at the ballot box in November of 1996.
Gentlemen you do not have and have never had a mandate from the citizens of Kalispell to change
their votes and change this very successful form of government. I urge you to retain your leadership
roles, establish policy and direction to "DO THE RIGHT THINGS" for Kalispell and to leave the
management to the staff so that they can "DO THINGS RIGHT!"
I urge you not to dismantle this fine team that is so professionally and ethically lead by Mr. Clarence
Krepps. Thank you.
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1221
EXHd� iIT #2
71.A
t�
1 MEMO
To: Glen Neier, City Attorney
From: Clarence Krepps, City Manager t
Date: December 26, 1997
Re.: Legal Opinion -City Government
Since the November election there have been several questions, comments, or actions that may or
may not be appropriate as per the city codes and/or the state laws. Since there seems to be many
differing views on how this city is to operate and the respective roles of the city council, the mayor,
and the city manager, I am requesting a written response of your legal opinions for several issues.
I will attempt to outline the major issues for your consideration.
A. It appears that the new mayor may have a misconception of the Mayor's role within the
Kalispell city organization. If appearances (and grapevine discussions) are correct, I believe
that, although I reviewed his role in my meeting with him, we may be on a collision course
to determine exactly what his role his. Please correct me if I am wrong in pointing out that
the Mayor's legal duties solely consist of
1. Presiding at the council meetings.
2. Appointing members of advisory board or commissions --but only with
the consent of the council as a whole.
3. Executing ordinances, contracts, and resolutions after council approval
4. Performing Ceremonial Functions
5. Acting as the 9` council member with full voting rights
The Mayor has little more authority than any council member. He is not the Chief Executive
of the city and has no supervisory authority over any employees. The Chief Executive iv
clearly defined to be the City Manager in those cities that have adopted the commission -
manager form of government.
Post Office Box 1997 - Kalispefl, Montana 59903-1997
Telephone (406) 758-7700 - FAX (406) 758-7758
L
1222
Glen Neier
Page 2
December 26, 1997
B. The citizens of Kalispell have approved by general vote the Commission -Manager form of
government This form was again voted on in the Nov 1996 election. This was reconfirmed
at this election. Can the city council on their own make any changes to the ordinance
establishing the government organization and the established roles with the existing
ordinances? Under what circumstance, if any, can these ordinances (Form of Government)
be altered?
C. The City of Kalispell's organization is allowed under the Montana Code section 7-3.
This sections outlines the duties of the City Manager under the Commission -Manager form
of government. The duties of the manager as outlined in 7-3-304 seem to be quite clear and
precise. However, I request your opinion on section 7-3-305 (2 & 3). I read this section (3),
and need a clarification for the first phrase starting with "Except —under this title," --Exactly
what does this inquiry or investigation refer to? What type of inquiry or investigation
qualifies under this exception? Does this refer specifically to section 7-3-4366. In relation
to 7-34366 and 7-3-305, doesn't the council have to go through the city manager to
investigate anyone except the manager and the attorney? Who would conduct an
investigation of the Clerk of Council since this position is appointed by the Council but
supervised by the Manager?
Within code section 7-3-305: Is it not a violation of State Code if any council member,
including the Mayor, contacts the city employees directly for inquiries, information, and/ or,
to tell the employees how we're going to do our jobs or carry out city goals and policies?
If this is a violation, what is the legal remedy or penalty potential?
D. If a city council member or the mayor acts outside of their legislative role as described by city
code or state laws, it is my opinion that liability insurance coverage for those acts may not be
valid. I believe that they, as all employees, must act only within their scope of duties for the
city as legislators? Is this a correct assumption? As an expansion of this concept, if the
council members or mayor act outside of their legislative role, wouldn't they be able to be
held personally liable rather than, or in addition to, the City?
E. There have been several times that employees, other than the Manger, have received calls
directly from a council member asking about the status of a certain project, development,
pending decisions for building permits or zoning requests. Many times these questions
expand to complaints or discussions about our decisions for the approvals or disapprovals of
citizens' requests.
Questions/discussions seem to center around: Why are we holding up this project? Why are
we requiring the applicant to do certain things (usually a code or policy requirement)? Why
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Glen Neier
Page 3
December 26, 1997
can't we waive, modify, or interpret the codes differently for this project? Why can't we
speed up the process for this applicant? Many times the implications are more subtle --such
as, Would like to see this project moved along, Can we do anything for this "project" etc.
Staff members have received subtle (some not so subtle) messages or at least interpreted as
such! I have two questions concerning this type of action:
1. In light of the council member's legislative and policy making role, and
Section 7-3-305 of the Code, is this a violation of state regulations?
2. What are the possible ramifications of this type of action? What if the council
member has a direct or indirect interest in the outcome of our policy
implementation and enforcement due to the council member's personal
financial interests or employment (employer's) financial interests? What are
the specific requirements of the state Code of Ethics as referenced or the
Conflict of Interest law in City Code? Are sections 7-34367 and Chapter 2,
standards of conduct, the only sections that would be applicable to this type
of action or are there other sections that could apply? If so, can you direct me
to them?
Any other general comments related to this subject that you may have are welcome. The legal
perspective is what I am interested in. I think I already understand the political ramifications of some
of these issues. Thanks for your assistance.
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EXHIBIT #3
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EXHIBIT #4 1225
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February 17, 1998
TO: Manager, Mayor and City Council
FROM: Glen Neier, City Attorney
RE: Commission -Manager Form of Gov rnment
Over the last couple of weeks several questions have been
posed to this office regarding relationships between the mayor -
council, manager and city officers and employees. This memo will
attempt to define the spheres of influence under the adopted
Commission -Manager form of government and authority of the council
to alter existing protocol in city operations.
AUTHORITY OF CITY COUNCIL OVER CITY EMPLOYEES;
The electors of the City of Kalispell adopted the Commission -
Manager form of government at an election held November 7, 1989.
Section 7-3-304, MCA sets forth the duties of the manager as
follows:
Duties of Manager. The manager shall:
1) enforce laws, ordinan es, and resolutions;
2) perform duties requires of him by law, ordinance or
resolution;
3) administer the affairs -f the local government;
4) direct, supervise, and dminister all departments,
agencies, and offices o the local government unit
except as otherwise prow, :ded by law or ordinance;
5) carry out the polies established by -the
commission;
6) prepare the commission agenda;
7) recommend measures to commission;
Page 1 of 8
Post Office Box 1997 - Kalispell, Montana 59903-1997
Telephone (406) 758-7700 - FAX (406) 758-7758
1226
8) report to the commission on the affairs and
financial condition of the local government;
9) execute bonds, notes, contracts, and written
obligations of the commission, subject to the
approval of the commission;
10) report to the commission as the commission may
require;
11) attend commission meeting and may take part in the
discussion, but he may not vote;
12) prepare and present the budget to the commission
for its approval and execute the budget adopted by
the commission;
13 ) appoint, suspend, and remove all employees of the
local government except as otherwise provided by
law or ordinance;
14) appoint members of temporary advisory committees
established by the manager.
Section 7-3-305, MCA establishes the relationship between
employees of the city and the council as follows:
Employees of Commission -Manager government.
1) Employees appointed by the manager and his
subordinates shall be administratively responsible
to the manager.
2) Neither the commission nor any of its members may
dictate the appointment or removal of any employees
whom the manager or any of his subordinates are
empowered to appoint.
3) Except for the purposes of inquiry or investigation
under this title, the commission or its members
shall deal with the local government employees who
are subject to the direction and supervision of the
manager solely through the manager, and neither the
commission nor its members may give orders to any
such employee, either publicly or privately.
The use of terms "except as otherwise provided by law or
ordinance" and "empowered to appoint' raise questions as to what
extent can the city council restrict the authority of the manager
to appoint, suspend, dismiss, and direct emmployees of the city. An
opinion issued by the Attorney General (45 A.G. Op. 1) discusses
the ramifications of the legislatures use of the above term.
is\vp\manager.vpd
Page 2 of 8
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In that opinion the Attorney General dealt with the specific
question:
May the city council in a city with the council-manager
form of government adopt an ordinance whereby the city
council rather than the city manager appoints heads of
city departments?
The Opinion cites both S 7-3-304, MCA and § 7-3-305, MCA and
specifically those sections using the language "except as otherwise
provided by law or ordinance.' The Opinion states in part:
The clear implication of this language is that the city
manager's power to appoint and remove (emphasis supplied)
is not exclusive, and that some employees must, under
some circumstances, be subject to appointment and removal
by someone other than the city manager. The provisions
of MCA § 7-3-305 (2) . . . have meaning, only if MCA § 7-
3-304 (13) is interpreted to allow the city council to
make other provisions for the appointment and removal of
city employees.
Although the Attorney General ruled on the limited question of
appointment of department heads, the Opinion has a broader
implication in terms of supervision because § 7-3-304 (4), MCA
states:
The manager shall:
(4) direct, supervise, and administer all
departments, agencies, and offices of the
local government unit except as otherwise
provided by law or ordinances; . . .
Thus, taken to conclusion, one must deduce that the city
council could enact an ordinance which abrogated the city manager's
authority to appoint, suspend, remove, direct, supervise, and
administer all departments of city government. The result of such
an ordinance would eliminate the city manager as a manager and
reduce the position to one of being an administrator in a somewhat
awkward circumstance. The manager would have the ministerial
duties of preparation, only, of the budget, report, only, to the
council on the affairs of govez ent, attend and take part, only,
is\wp\manager.wpd Page 3 of 8
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in council meeting, appoint, only, temporary advisory boards,
prepare, only the council agenda, and recommend, only, measures to
the council.
PUBLIC'S RIGHT TO KNOW
Section 9, Montana Constitution states as follows:
Right to know. No person shall be deprived of the right
to examine documents or to observe the deliberations of
all public bodies or agencies of state government and its
subdivisions, except in cases in which the demand of
individual privacy clearly exceeds the merits of public
disclosure.
Section 10, Montana Constitution states:
Right to privacy. The right of individual privacy is
essential to the well-being of a free society and shall
not be infringed without the showing of a compelling
state interest.
Section 2-6-104, MCA provides:
Records of officers open to public inspection. . . . the
public records and other matters in the office of any
officer are at all times during office hours open to
inspection of any person.
In PacifiCorp. -vs- Dept. of Revenue, 838 P2d 914 (1992) the
Montana Department of Revenue challenged PacifiCorp's right to
obtain audit information compiled by the Multistate Tax Commission.
The Supreme Court held:
"Montana, California, and MTC cannot assert a right to
privacy. The are not `individuals' under Montana law --
they are governmental entities.'
The Montana Constitution, State law, and Supreme Court
decisions lend credence to a liberal view of the public's right to
know. Although there are exceptions, assertion by the government
of privacy of third parties (Belth -vs- Bennett, 740 P2d 638,
1987]), virtually any document written by public officials, on
is\vp\manager.vpd
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public time, and at public expense can be examined by individual
citizens. Even drafts of reports and documents arguably are
subject to public inspection when requested. The motives of those
requesting information cannot be used as a basis for non-
disclosure.
Open meetings
Article 9, Montana Constitution also demands that public
agencies allow the observation of its meetings by the public.
No person shall be deprived . . to observe the
deliberations of all public bodies or agencies of state
government and its subdivisions, except in cases in which
the demand of individual privacy clearly exceeds the
merits of public disclosure.
Meeting means:
. . . the convening of a quorum of the constituent
membership of a public agency or association ,
whether corporal or by means of electronic equipment to
hear, discuss, or act upon a matter over which the agency
has supervision, control, jurisdiction, or advisory
power.
Section 2-3-203, MCA states, in part:
All meetings of public or governmental bodies, boards,
bureaus, commissions, agencies, of the state, or any
political subdivision of the state or organizations or
agencies supported in whole or in part by pubic funds or
expending public funds must be open to the public.
Constitutionally, the only exception to Section 9 is when the
demand of individual privacy clearly exceeds the merits of public
disclosure. Statutorily, the legislature has carved -out an
exception to discuss strategy with respect to litigation when an
open meeting would have a detrimental effect on the litigating
position of the agency. (Section 2-3-203, MCA) As of the time of
this opinion the only case discussing this exception held that the
provision was unconstitutional when applied to litigation between
public agencies (Assoc. Press -vs- Bd of Pub. Bduc., 804 P2d 376
i : \ wp'. manager. vpd Page 5 of 8
1230
(19911) .
The Constitution, State law, and Supreme Court decisions leave
little room to wiggle in terms of open meetings. Any meeting of a
constituted quorum of a governmental body will be construed as a
"meeting' subject to the open meeting provisions. Although, it has
been determined that a meeting between agency staff and private
contractors did not constitute a meeting (SJL of Mont. Associates
Ltd. Partnership -vs- Billings, 867 P2d 1084 [1993)), it is
unclear, at least to me, whether or not a meeting of staff
committee empowered to make decisions would be subject to the open
meeting law.
NOTICE AND OPPORTUNITY TO BS BEARD
Montana law, pursuant to Article II, S 8, Montana Constitution
provides the people "be afforded reasonable opportunity to
participate in the operation of government agencies prior to the
final decision of the agency." S 2-3-101, et seq., MCA require that
agencies, including city councils, develop procedures for
permitting and encouraging public participation in decisions. S 2-
3-104, MCA creates a presumption that "an agency shall be
considered to have complied with the notice provisions of 2-3-103
if.
3) a public hearing, after appropriate notice is
given, is held pursuant to any other provision of
state law or a local ordinance or resolution; or
4) a newspaper of general circulation within the area
to be affected by a decision of significant
interest to the public has carried a news story or
advertisement concerning the decision sufficiently
prior to a final decision to permit public comment
on the matter.
S 2-3-112, recognizes only three exceptions to the rule when:
1) an agency decision that must be made to deal with
an emergency situation affecting the public health,
welfare or safety;
is\wp\mannger.wpd Page 6 of 8
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2) an agency decision that must be made to maintain or
protect the interests of the agency, including but
not limited to the filing of a lawsuit in a court
of law or becoming a party to an administrative
proceeding; or
3) a decision involving no more than a. ministerial
act.
The Montana Supreme Court has held in Common Cause -vs-
Statutory Committee, 868 P2d 604, 609 (1994):
. . . Montana law requires that public notice be given of
meetings subject to the requirements of the open meeting
statutes. . . . without public notice, an •open" meeting
is open in theory only, not in practice.
A successful plaintiff in an action to enforce the open
meetings/notice and opportunity to be heard under S 2-3-221, MCA is
entitled to costs and reasonable attorneys' fees.
Ordinance No. 1166, S 2-10, sets forth the Agenda procedure
for city council meetings as follows:
a. The city manager shall set the agenda for the city
council meeting.
b. All reports, communications, ordinances,
resolutions, contract documents or other matters
for possible submission to the council shall be
submitted by 5:00 o'clock P.M. Thursday preceding
the council meeting to the city manager.
Special meetings of the council may be called by the mayor,
president of the council, in the absence of the mayor, or three
members of the council. Notice of the special meeting must be given
at lease 24 hours in advance, and no business shall be transacted
at a special meeting unless the same is stated in the notice. In
the event of an emergency, notice may be waived by the mayor and
council, however the media must be notified prior to the meeting.
Montana law, provides for public hearings to be held by the
council in certain events, i.e. consideration of preliminary
i.\wp\manager.wpd Page 7 of 8
1232
subdivision plats and closure of streets and alleys. In some cases
the Notice provisions are incorporated in respective statutes, in
others Notice is given pursuant to the general notice provisions
contained in Title 7, Chapter 1 Montana Code Annotated.
Other statutes provide that appointed boards Zoning Commission and
Planning Board hold public hearings on zoning amendments and master
plan amendments. The city council, then, reviews the record of the
public hearing and accompanying documentation and decides the issue
based upon the record. Nothing prohibits the council from holding
its own public hearing to gather additional evidence or
information. In fact if a council determines a recommended decision
by an appointed Board is incorrect, it would be well advised to
hold a public hearing, because generally recommended decisions are
supported by finds of fact which can only be altered through the
gathering of additional facts supporting alteration of the
recommendation.
The council should be keenly aware that it does not act as a
legislative body all of the time. In many instances the council
acts as administrative body deciding issues base upon a specific
set of statutorily required findings. In those instances the
council must base its decision on the facts and cannot be arbitrary
and capricious or base its decision on matters not appearing in the
record.
I hope that the above memo provides the manager and council with
some incite the issues involved in the operations of city
government. It is intended to answer some of the questions which
have been posed to this office over the past several weeks.
is\vp\manager.vpd Page 8 of 8
1233
EXHIBIT #5
interoffice
MEMORANDUM
To: Clarence W. Krepps, City Manager
From: Lawrence Gallagher, PECDD Director
Subject: Staff Communication with City Council Members
Date: February 20, 1998
I have attached a February 11, 1998, Memorandum from Susan Moyer, documenting a February
10, 1998, telephone conversation with Mayor Boharski. This is at least the third direct "inquiry"
Susan has received from Mayor Boharski. The first call was documented on January 5, 1998,
before he was sworn in as Mayor (see Memorandum of January 6, 1998).
I have told Susan and all of my staff that I would appreciate knowing if a Council member calls
them and to document any direct inquiry(s) they may receive so that I will not be surprised and
also to keep you informed of any individual Council Member investigation(s) or requests for
information.
Despite information you have received to the contrary, I have not instructed my staff to refuse or
ignore calls from any City Council members. In fact, on several occasions, some with you
present, have told my staff I have no authority to ask them not to talk with representatives of the
media or the City Council. I have, however, suggested that they document any conversations
they may have with any media representatives and with City Council members. Also, I have
suggested that whenever possible, they consider inviting another staff member or objective third
party to be present whenever they return telephone calls to or engage in a conversation with the
media or City Council members. I have asked them to respond to all inquiries for information
politely and respectfully but to refrain from offering personal opinions or observations regarding
PECDD or City policy or administration. Regarding the latter, I have asked that inquiries be
referred either to me or the City Manager.
In addition to calling Susan Moyer, Mayor Boharski also called Diana Harrison, Planning and
Zoning Administrator, around 5:00 p.m. on February 3, 1998, prior to the Board of Adjustment
meeting which was scheduled for 7:00 p.m. that evening. Mayor Boharski left a message on her
voice mail that he had some questions regarding the Board of Adjustment meeting but ending it
with the statement "it's late so you do not need to call me back because I will see you at the
meeting..." Diana, after consultation with me, elected not to return his call. One of the reasons
may be the fact that Craig Kerzman, PECDD Building Official, has been personally named in a
lawsuit against him and the City of Kalispell because he is accused of ex parte communication
regarding matters before the Board of Adjustment - a request for a variance. I have suggested
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Clarence W. Krepps, City Manager
Page 2
February 20, 1998
that my staff not be drawn into offering any personal observations or opinions regarding requests
for variances or outside of the written staff report unless it is to clarify items in the report and then
only in response to inquiry from Board of Adjustment members where their response is a matter
ofrecord.
In addition to the calls referenced above, Dale Haarr has called the Building Division recently
regarding a building permit issued to Greg Miller off Kelly Road, and in the past regarding
Loren's Auto, Souci Souci and others. Craig Kerzman has a record of calls from Council
members. Also, Duane Larson stopped by my office early this month with some questions and I
had lunch with Council Member Atkinson on February 11, 1998. Council Member John Graves
was in my office on January 27, 1998, to review the appraisal on the National Flood Building.
Mayor Boharski has never called me personally for any reason nor have I ever received telephone
calls or direct or indirect informal inquiries or visits in my office or at home from Mayor Boharski
or Council members Donahue, Scarff, Haarr, Nystul, or VanNatta.
I am concerned when any Kalispell City Council member calls any City of Kalispell employee
below department head or supervisor level without your knowledge or the knowledge of the
department head, requesting an employee's view or opinion on matters dealing with
administration of any department or City policy. When I learn of such communication I will keep
you informed.
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EXHIBIT #6
DATE:
TO:
FROM:
SUBJECT
1
MEMORANDUM
February 11, 1998
Lawrence Gallagher, Director
Planning, Economic and Community Development
Susan Moyer, Housing Manager PECDD
February 10, 1998 Telephone Call from Mayor Boharski
Larry, approximately 3:45 p.m. yesterday I received a call from the Mayor regarding Woodland Court and The Courtyard projects.
The following conversation took place.
Q. "Tell me again, why we can't sell lots in Woodland Court to Habitat?"
A. I responded that was not what I had told him. The City had indeed offered some lots to Habitat for Humanity, but they
chose not to participate with the City because we would require they follow the design for the homes in the planned
subdivision. This particular chapter of Habitat follows their national charter of building units with carports. The Helena
chapter, however, does build garages on their homes and feels its warranted because of our Montana climate.
Q. Do we have to hold on to the Courtyard Apartments for ever and ever?
A. No. However, the Courtyard was a "partnership" through which we brought identical funding grants to the project. In
discussions with the funding sources, it would hurt the City's credibility and possible future grant rankings should we
dispose of the property to a "not -for -profit" in less than a five year time frame. We could then sell to a "not -for -profit"
whose mission statement was to provide affordable housing, but the City would still ultimately be held responsible in the
project being administered correctly for the period of affordability.
Q. How long has the courtyard been up and running - about three years?
A. Yes.
Q. Someone I went to high school with called me over the weekend regarding a home he had bought in Woodland Court.
There's a problem with their flooring and the contractor is not being responsive. I told him I didn't know anything about
it but I would look into it.
A. Yes, that would the Frenchs. The problem with the underlayment apparently started prior to Mr. and Mrs. French
notifying the builder about the ice maker leaking. I told Mrs. French that the City had no responsibility for the actual
construction of the structure. Our involvement ended when the City sold the land to the builder. I did recommend to her,
however, that she write to Mr. Randy Cogdill of Glacier Bank, the contractors funding source, and explain the nature and
extent of the problem, list the names of those individuals who had seen the problem with the floor Drior to the ice maker
starting to leak, and see what influence they can have. This is a typical contractor/buyer situation in which the home
buyer has to get the contractor to fulfill the one-year warranty period.
Response: I understand this type of problem in construction. Well, that's all I needed.
C:\Samaritan House\Buyers\Owens\Emergency Funds C?�
1236
EXHIBIT #7
Date: January 6, 1998
To: Lawrence Gallagher, Director
Planning, Economic and Community Development
From: Susan Moyer, Housing Manager PECDD
Subject: Telephone Conversation 1/5/98 with Mr. Boharski regarding Woodland Court
Larry, Debbie Gifford just informed me Mr. Boharski told Clarence I said I was "swamped and
would appreciate the applicant selection processing being assumed by Northwestern Montana
Human Resources." Before this escalates, I would like to clarify my response to his questions as
to why Woodland Court is so slow in coming on line. The reasons I gave were:
a. We lost one construction season due to the delay with the subdivision contractor;
b. approximately 14 to 15 of our clients had chosen to go with the Glacier
Affordable Housing Foundation assistance which allowed them to get into
homeownership almost immediately, and
C. Samaritan House came on line for grant assistance almost a year ahead of the time
I had anticipated due to the first grant being a Public Facilities grant that had to be
submitted in the Spring of this year and that precipitated our pursuing the
remaining grants in 1997 instead of 1998. As a result of the pressure of Samaritan
House, there was a period of time it had priority but we are now starting to
develop a strong marketing program to develop an increased client list.
When Mr. Boharski asked whether we should consider subcontracting the applicant identification
and eligibility verification work to Northwest Montana Human Resources, my answer was "no."
My actual statement was something to the effect that ...this might be considered ego, but we
would do a better job. This is based on our inside knowledge of the grants, their requirements
and just exactly what we had promised in the respective grants.
If there are any points that need clarifying regarding why this project is not bid out in larger
quantities or any other question I was asked,,I will be more than happy to give you the details.
c:\PECDD\letters\Woodland Court
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EXHIBIT #8
f-RA
Interoffice
M E M O R A N D U M
To: Larry Gallagher, PECDD Director
From: Craig Kerzman, Building Official
Subject: Marys Room - 6201 "Ave West
Date: March 25, 1998
CC: Clarence Krepps, City Manager
1 received a complaint of a possible zoning violation at 620 1" Ave West The
complaint is that a book store retail business is being conducted In an area where
zoning does not allow such a use. Two letters were previously sent to the owner.
The caller informed me that the owner said she (the owner) had spoken with the Mayor
and the Mayor said he didn't see a problem with what she was doing.
On Wednesday, March 25, 1998, 1 discussed this with Glen. It makes it difficult for us
to en1broe the zoning ordinance when someone else (i.e., the Mayor) gives conflicting
or contradictory answers or information.
It makes it impossible to be consistent when the answer depends on who answers the
questions and not on the zoning ordinance.
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EXHIBIT #9
interoffice
M E M O R A N D U M
To: Clarence Krepps, City Manager -Memo for Record
From: Lawrence Gallagher, PECDD Director
Subject: Miscellaneous Conversations
Date: April 10,' 1998
As you have requested, this is a quick summary of the telephone conversation I had
with Alf Barnette, indicating that members of the City Council are actively involved in
support and public presentations of projects that, if approved and funded by the City
Council, will have significant impact on redevelopment projects currently adopted by the
City Council, and, in my opinion, could substantially alter the commercial growth pattern
of the City and location decisions currently being evaluated by national and regions
retail tenants considering a Kalispell area location.
The PECDD and staff have been charged with the responsibility of administering and
implementing three tax increment financed urban renewal projects which have been
declared "necessary and in the public interest," adopted after public notice and
hearings. All three existing programs will be impacted by a major change in the City/
County Master Plan to allow commercial zoning and B-2 Strip commercial development
on Highway 93 North. If this is a "done deal" and a major shift in public policy, I believe
I should advise the property owners and retail real estate representatives we have been
meeting with over the past several years to right size the Kalispell Center Mall, Gateway
West Mall, Rosauers and other potential redevelopers of commercial sites along
Highway 93 South - the Daley Field property.
On Wednesday, April 8, 1998, Alf Barnette, Director of JOBS Now, called requesting
information on 30 to 50 acres of industrially zoned property on the rail at Hwy 2 and the
intersection of the BN Spur Line. During our conversation about this and other
industrially zoned property, I mentioned the Montco, Moco, McElroy & Wilken and
NUPAC property at Reserve and Hwy 93 North. When I mentioned NUPAC, Alf
informed me that on Tuesday, April 7, 1998, he had been a guest at a Flathead
Business and Industry (FBIA) meeting where City Council Member Dale Haarr made a
full presentation of a major development project involving all of the Lynch property on
Hwy 93 North, a 20 acre parcel owned by the MT Highway Dept, and all the agricultural
land between FVCC and Reserve.
Alf said that Mr. Haarr had site plans and renderings and told the FBIA members
present that the property would be annexed into the City, sewer and water utilities
extended and Grandview Drive extended north to Reserve Street, and that all of the,
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Memo for Record
Page 2
April 10, 1998
highway frontage on Hwy 93 North and the corner of Hwy 93 and Reserve would be
zoned for commercial development... "kinda like along Reserve Street in Missoula," Alf
said.
The plans Council Member Haarr presented call for a domed hockey stadium and the
Flathead County Fairgrounds to occupy the easterly part of the real estate between the
commercial on Hwy 93 and the river but he said the land would not be annexed so that
it could become tax exempt property. The ValleyDome or KaliDome as it was called,
was to be financed by someone else with money coming out of Seattle or perhaps the
hockey team owners.
Alf asked Council Member Haarr the status of the project and how far along it was and
was told "It's a done deal... or practically a done deal." Council Member Haarr also
reported that he was able to find some money for water extension and road
construction because the City wouldn't be using city water or gas tax funds for the
Kalispell Athletic Complex project. Mr. Haarr told the FBIA members present that the
County Commissioners were on board and this project was going to get done.
Alf question to me was: "How can they do that if you tell me it is zoned industrial?"
The first news of this potential project came from Steve Herzog, MT Highway
Department. Steve asked for staff input during a Site Development Review Committee
Meeting on February 26, 1998. Steve asked the City Manager and staff present if the
project had come before the Site Review Committee because Highways was
considering the sale of its land on Hwy 93 North adjacent to the NUPAC property. No
one in the room had heard of the project or had seen the site plan that Steve
presented. He left a copy with us.
On April 1, 1998, 1 met with Ray Harbin, ROW Acquisition Specialist with the MT DOT,
who confirmed that the Hwy Dept had entered into a Memorandum of Understanding
with the entity planning the Kalidome. He told me that they were planning on moving
their highway operations from their property adjacent to NUPAC to property north on
Hwy 93 close to the National Guard Armory.
Also, on April 8, 1998, Gib Bissell invited me to go on a bus ride to Fernie with Dale
Haarr, Dale Williams, Gib and others to attend a hockey game. I understand Mike
Baker had also been invited. When I told him I knew nothing of the project, Gib said
"get ready, they are going to shove it down your throat." He said this as a friend and I
believe as a citizen concerned that the entire City staff and management appeared to
be outside the loop on this project. He is also concerned about the Daily Field property
sale and funds for Kalispell City Airport improvements.
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1240
Memo for Record
Page 3
April 10, 1998
On Thursday, April 9, 1998, 1 announced all this information to the Department Heads
and other members of the Site Review Committee and I discussed it with Glen Neier
later that afternoon. I asked Glen as a public official what my responsibilities were
regarding the information. His suggestion: document it.
During the same meeting, I informed Glen of Dave Thornquist's request for the
Purchase and Development Agreement on Haven Field and Glen has informed me that
there is no Purchase Agreement to his knowledge. He asked what Mr. Thornquist's
intentions were. I told him that according to a conversation Dave had with Ross that he
was going to appear before the City Council and voice his concerns about the way the
City treated developers and the unfair treatment he believes he has received on the
Haven Field negotiations/sale and on the KDC Site.
Glen stated his concern that the City Council must "follow the law" in offering the KDC
and NFS property. Both of us have expressed this concern with the City Manager.
1
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EXHIBIT #10
interoffice
M E M O R A N D U M
To: Clarence Krepps, City Manager - Memo for Record
From: Lawrence Gallagher, PECDD Director
Subject: Conversation with Richard Mendenhall, April 13, 1998
Date: April 13, 1998
At approximately 1:30 p.m. today I received a call from Richard Mendenhall calling me
from Salt Lake City. Mr. Mendenhall informed me that he and Ross Varner, partner
with Collier Heinz, owner of Gateway West Mall, had a meeting this morning in the Salt
Lake City Airport with Dale Williams at the request of Commissioner Williams to discuss
Mr. Mendenhall's plans for Gateway West Mall and advising him that the County was
moving forward with plans to relocate the fairgrounds without the race track to a new
location on NUPAC property north of Kalispell. Mr. Williams assured Mr. Mendenhall
that the City of Kalispell would cooperate in creating a new tax increment district for the
NUPAC and adjacent property to pay for the cost of extending streets and utilities.
Mr. Mendenhall was surprised when I told him that there had been no discussions of
such a project with PECDD, the City Manager, or the Flathead Regional Development
Office, nor had there been any public discussion, although I did acknowledge that
rumors had run rampant and that I was aware that Dale Haarr, representing certain
members of the City Council, had attended several meetings with Dale.Williams. I also
told Mr. Mendenhall that I had been told Ken Carey, Manager of the Gateway West =: =
Mall, was present at a meeting where the project was presented by Dale. Haarr.;
Mr. Mendenhall disclosed to Commissioner Williams their plan
that Mr. Menc
.14W has been unable to put
require
informe repress
�I was aware
Iocation becauseAW
assemblage of land
, J have .
Commissioner Williams implied that he expected the City's full cooperation in both
creating a new tax increment district and implementing the coliseum plan and
commercial zoning on Hwy 93 North in exchange for the County's agreement to move
the fairgrounds. Mr. Mendenhall said they discussed putting the other anchor tenants
his company had been working with on the fairgrounds as a power center similar to
Missoula's Reserve Street. He did acknowledge that he had discussed the names of
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Memo for Record
Page 2
April 13, 1998
most of the anchor tenants with Commissioner Williams and when I pointed out that all
those tenants could also consider a Hwy 93 North location in lieu of an expensive
Gateway or Fairgrounds site, Mr. Mendenhall conceded that possibility existed and
even implied they too may be working with Lynch/Williams et al to develop that
alternative (Hwy 93 North Commercial) if their efforts at anchoring Gateway or the
availability of the existing fairgrounds failed. In the past, Richard Mendenhall and Ross
Varner have asked me and the City Manager where "in the City - or areas that could be
annexed into the City" we would recommend a power center in the event they could not
get anchor tenant commitments for Gateway. We have always informed them we could
not recommend Hwy 93 North because of the well established public policy and
historical record opposing strip commercial development on Hwy 93 North. I also
reminded him that a Master Plan and zone change to permit Hwy 93 North strip
commercial on the east side of the highway would trigger the State DNRC to request
similar zoning and use on the west side of the highway. So far, the State remains
committed to work with us to develop public and institutional use and master plan for
the School Trust Land.
Commissioner Williams told Mr. Mendenhall the Kalidome or Coliseum Committee
would be making a formal presentation to the County Commissioners on April 21' and
that reschedulinq their meeting with us (myself and Clarence) for the 23' may be
timely
I expressed my concern to Mr. Mendenhall that what had been discussed was not the
elimination of blight nor "necessary and in the public's interest. "Stripping existing tax
increment districts of tenants and potential tenants or redevelopers was not the
intended use of the tax increment law and I doubted we could stretch the tax increment
authority to include strip development of vacant and undeveloped land. However, there
may be other ways, such as a voter approved general obligation bonds. I expressed
that my main concern was there had been no public forum or discussion of any of these
Hwy 93 North development issues since the Planning Board and City Council refusal to
amend the Master Plan in Feb/ March of 1997. Mr. Mendenhall attended that Planning
Board Meeting and has had several discussion with NUPAC's owners since that time.
We discussed other issues. This Memo covers the highlights. Mr. Mendenhall did ask
if he would be able to meet with you and me and possibly Mayor Boharski on April 23rd
so that they could distance themselves from any misinformation and rumors. He told
me that he had not included Ken Carey in any of these discussions. I told him that 1
would prefer that he request a special meeting with the entire City Council or a public
forum because of the nature of what appears to be a major public policy shift in the
future of commercial and retail development in or adjacent to Kalispell.
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EXHIBIT #11
i me r o f f i ce
MEMORANDUM
To: Clarence W. Krepps, City Manager and VallyDome File
From: Lawrence Gallagher
Subject: Meeting w/Mae Nan Ellingson, Dorsey Firm, Re: TIF for ValleyDome
infrastructure
Date: May 6, 1998
CC: ValleyDome File
This is to Memorialize the May 4, 1998, meeting and discussion with Mae Nan Ellingson, Bond
Counselor with the Dorsey Whitney Firm of Missoula and Minneapolis. I have reviewed my notes
from the meeting and will highlight the important points discussed instead of include detail or
flesh out each item noted.
Mae Nan arrived at the City Mangers office at approximately 10:00 a.m. She had driven from
Missoula at the request of Thor Jackola for a meeting with him and Mayor Boharski, and other
members of the group interested in building the ValleyDome. The City manager learned of the
scheduled meeting on May 7, 1998, when Mae Nan called him after she had responded to Mr.
Jackola's request for a meeting. Other City personnel present included Jim Hansz , Public Works
Director, and Glen Neier, City Attorney.
After waiting until 10:20 for the arrival of the Mayor and ValleyDome group, Clarence called Mr.
Jackola's office and was informed the group was attending a meeting at FRDO. Clarence called
Tom Jentz, FRDO's Director and learned the group was still in the meeting with him and Narda
Wilson. The group included County Commissioner, Dale Williams. Jentz informed the group
that Mae Nan was waiting and they arrived at City Hall at approximately 10:40 a.m.
Prior to the arrival of the Mayor and VallyDome group, Clarence, Jim, and Glenn outlined their
limited knowledge of the proposal as presented to them a few days earlier. They acknowledged
the plans were preliminary at best and that Mr. Jackola had informed them the S400,000+
required for a complete plan for the area was more than was available at the present time or at
least more then they were willing to invest at this stage of the project. After looking at the
brochure Clarence had received, along with a preliminary site plan, Mae Nan offered the following
observations:
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Clarence W. Krepps, City Manager and VallyDome File
Page 2
May 6, 1998
To my way of thinking the proposed project cannot be finance with Tax
Increment Financed Urban Renewal and it does not meet the TIFID
requirements either.
A TIFID assumes the capture of tax dollars is to be used to encourage and
expand true industrial development and jobs and investment in new
equipment to add value and provide for base industry. While the area is
zoned industrial now the proposal is to change it to commercial. The
present industrial use is a permitted use and cannot be considered
hazardous or blighted because I'm sure there are reclamation requirements
on the owner already in place. And, I don't see any expansion of an
industrial nature proposed.
Mae Nan also discussed her concern that it appeared there may be a private parcel of land
between the FVCC property and the proposed project site that was not part of the annexation
proposal. The property is owned by Wes Hutton, who Glen Neier believes sold the land to the
FVCC for $ 1 0,000/Acre. Glen too, thought the Hutton property was to be excluded from
annexation. It is important to find out.
The VallyDome group included Thor Jackola, Earl McPeak (sp), Ron Lambreck, and Mayor Bill
Boharski. Dale Williams, was not with them.
Thor Jackola presented the renderings and brochure and Mae Nan said she understood the basics
of the proposal from previous discussions with the City Manager and staff. She related her
understanding of the project and stated:
Short of some sort of change in the legislation I don't think this project
constitutes an urban renewal project. It does not meet any of the
definitions or the intent of the legislation which was enacted to deal with
real urban blight and unsafe and unsanitary conditions in old downtowns
and run down part of cities.
Our firm would not be comfortable issuing an opinion that this would meet
the requirements of the law.
The statute is pretty clear, —you need to show a compelling reason why
the City should be capturing all of the other taxing jurisdictions money,
—for what purpose? Commercial development and a sports areana?
Mae Nan explained the TIFID provision of the law and how Butte - Silver Bow had used $40
million in TIFID authority to stimulate a $400 million private investment that also guaranteed the
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Clarence W. Krepps, City Manager and VallyDome File
Page 3
May 6, 1998
bonds, thus they were not tax exempt because of the private purpose nature of the benefit. She
said:
► I don't think we're going to meet any of the TIFID requirements with this
project either.
Mayor Boharski asked how the City justified using Tax Increment to do the Kalispell City Airport
project? Mae Nan stated she had not reviewed all of the issues related to that project prior to her
visit so I explained how it qualified as a Tax Increment Financed Urban Renewal Project. I
outlined how it began with a detailed Neighborhood Plan which was approved and made part of
the City's Master Plan and that the Neighborhood Plan identified many unsafe conditions and
other items that clearly met the definition of blight under the urban renewal law. The City
charged the PECDD to come up with the ways and means to implement the Plan. The staff spent
several months developing a thourough description of what needed to be done, includeing detailed
cost estimates and then explored all of the financing alternatives available. The discussion was
placed in DRAFT Document or preliminary form and presented for an extensive review and public
comment process including many work session with the City Council and Planning Board Review.
Additionally, there were countless meeting with the site review committee and Parks Department.
After all of this effort, it was determined by the City Council that it was necessary and in the
public interest to use urban renewal powers to implement the project. After legal notice and
public hearing and written notice to all property owners in the project area, the Council adopted
and Ordinance Creating the Kalispell City Airport/Youth Athletic Complex Urban Renewal Plan.
Mayor Boharski responded directly to Mae Nan as he pushed the VallyDome brochure toward
her: "In a long discussion with Petish (Legislative analyst in Helena) several months ago
(emphasis added) he said that if you have something that looks like that," pointing to the
rendering, "it would qualify for tax increment."
Mae Nan responded that she "did not know how much Greg (Fetish) knows about the urban
renewal process but I doubt that he could give me the legislative history that would support going
out to annex and encourage commercial development in an area not already developed. My job is
not argue public policy but with the power to take everyone's taxes, I think you have a problem."
She then asked how much tax revenue would be involved and asked for some quick estimates of
how much the SID payments would be on a $3.5 million SID of GO bond sold @ 6%, 20 yr. term
_ $305,146. On a $5 million bond the annual debt service would be $435,923.
The Mayor asked: What if you hooked Hagadone on and got those taxes and hook-up fees? No
one offered an answer or speculated on impact. Jim Hansz, and Clarence suggested that it could
be determined —assuming Hagadone and adjacent property owners wanted to annex.
The Mayor asked: What if the City purchases a big chuck of the land and makes it available to the
group --can it pay the cost for its own land? Or, what if we buy the land and then trade it for
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Clarence W. Krepps, City Manager and VallyDome File
Page 4
May 6, 1998
something? Mae Nan suggested that she would not recommend any underhanded method to
make the project look like it would qualify for urban renewal.
Mayor Boharski responded: "The whole thing is underhanded —all tax increment is
underhanded, but it's a useful tool." Again he posed the question about a possible exchange of
land the Dome will require in exchange for city services. No one answered.
Mr. Jackola asked about user extension agreements and an SID recapture of any costs the
development would incur to put in added capacity (more than we need) utilities. The city staff
advised him there were procedures to allow developers to recapture when adjacent property tied
on.
Mae Nan offered that an SID would more than likely require a letter of credit (binding LC) or
personal guarantee. Clarence Krepps added the most recent example of Ron Pack's Corporate
way development and guarantee. There was a discussion as to the tax exempt status issues that
must be addressed. Mae Nan felt the SID bonds could be considered tax exempt.
The Mayor asked Mae Nan if there was a way the State Board of Investments could get involved.
Mae Nan responded, "yes, if you pledge adequate revenues from the project, and she reminded
the Mayor that a city could pledge up to $500,000 from its general fund or use sewer or water
revenues to retire the debt or pledge as security.
There was a general discussion about the merits and ramifications of SID's, tax exempt vs.
taxable issues, The city tax share on $50 million in market value development ($223,000/yr. @
.11616 mills and $1.9+ million in taxable valuation).
The meeting concluded around noon with the Mayor posing several more questions to Mae Nan
on possible ways to qualify the project as an urban renewal project. Mae Nan concluded: "I
provide legal advice to the City_of Kalispell on these issues and Mayor as the Ci 's attorney
in these matters I will tell you that it would hurt you as a city to try to take that kind of
interpretation. " (emphasis added)
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EXHIBIT #12
interoffice
MEMORANDUM
To: Clarence W. Krepps, City Manager
From: Lawrence Gallagher
Subject: Meeting w/MDOT's Brazda and Dick Crest, Right-of-way District Mgr., RE:
Idaho & Main, Ball Crossing, West Side By-passBN right-of-way issues
Date: May 8, 1998
This morning Ross Plambeck and I called Larry Brazda, with MDOT's Kalispell office asking
what he could tell us about: (i) the LaSalle - Conrad Drive/Willow Glen connection and
resurrection of an East Side By -Pass; (ii) MDOT's Plans for a new building at its location on 5th
Ave. E.N.; (iii) BN's plans for the sale of its track from Columbia Falls - Ball Crossing and
eliminating the abandonment plans for the track from Ashley Creek to Ball Crossing; (iv)
MDOT's plans for relocation of facilities on Hwy 93N in response to the ValleyDome proposal;
and, (v) status of the Main and Idaho intersection improvements. It was an informative exchange
so I wanted to keep you informed of what we learned.
1. The LaSalle - Conrad DrivelWillow Glen connection and resurrection of an
East Side By -Pass. I told Mr. Brazda that Narda Wilson called yesterday
regarding a meeting she and Tom Jentz had earlier in the day with engineer Dennis
Carver, and land -owner/ developer Bill Lincoln regarding preliminary plans for a
"resort/commercial/ tourist type development they were planning for the "new
intersection of Conrad Drive and LaSalle," a new road that, according to Lincoln
and Carver, has already received the support of County Commissioners Dale
Williams and Howard Gipe, and "a majority of the Kalispell City Council." Narda
said they asked about the extension of Evergreen's sewer services among other
things.
Larry Brazda, said he was not aware of any MDOT involvement or knowledge of
the project but he did admit that MDOT was planning safety improvements to the
hill at Willow Glenn and Woodland Ave. and had the ability to do safety
improvements to Conrad Drive. He affirmed his and other highway officials'
support for the LaSalle Connection and recognition that the Willow Glenn/Conrad
Drive route around Kalispell was something that should be done. He did
acknowledge that there was a City County Transportation Plan that listed
Meridian, Whitefish Stage and other projects as higher priorities for limited
funding but also implied that there may be other sources of funding for Conrad
Drive Willow Glenn improvements.
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Clarence W. Krepps, City Manager
Page 2
May 8, 1998
2. MDOT's Plans fora new building at its location on S` Ave- E.N. MDOT plans
for a new building at its main office location on 5' Ave. EN are complete and
"irreversible." Building will start in July and they do not plan to get a building
permit. "The State does not need one," he said. I told him our interest was related
to an inquiry we had received from an area business seeking information about
location and expansion possibilities.
BN's plans for the sale of its track from Columbia Falls - Ball Crossing and
eliminating the abandonment plans for the track from Ashley Creek to Ball
Crossing. I asked Mr. Brazda if he could let us know what was going on
regarding MDOT's negotiations to purchase the BN right-of-way from Ashley
Creek (South of Montana Forest Products) to Ball Crossing (Kalispell Feed &
Grain) because Pat Keim, BN's Director of Government Affairs had confirmed
that BN was considering the sale of all of the track from C. Falls to Ball Crossing
as a short -line rail road and had pulled or delayed further abandonment
proceedings for the Ashley/Ball Crossing section pending the outcome. BN was
waiting for either litigation or legal proceedings in the state of Washington before
making any decision. I told Mr. Brazda that Keim would not confirm or deny that
negotiations w/MDOT for the sale of this West Side By -Pass link were continuing.
1 also mentioned that I had talked with Ray Harbin, Field ROW Agent who had
informed me he was not involved in any negotiations wBN and that to his
knowledge MDOT had already acquired all it needed at Ball Crossing to permit
construction of Hwy 93 south. Harbin had also told me that no construction plans
(designating the West Side By -Pass ROW) had been filed in Flathead County so
there was nothing on the record to officially notify property owners, real estate
sales people or developers that there was an official and approved ROW plan for
the designated By -Pass. Mr. Harbin said the plans were being held up in Helena.
Mr. Brazda confirmed that the plans had not been recorded, "and they should be, "
he added, because they were being held up in Helena. He said he would be talking -
with Jim Weaver, Missoula District Engineer, about the hold up as soon as our
conversation was done. I told Brazda that I had called Tim Reardon, MDOT's
Chief Counsel a couple of weeks ago to ask the same question and that I had not
received a response yet.
Finally, Mr. Brazda said that discussions between "our people and the Railroad"
have been going on and the he felt that there was an understanding already in place
that was in the best interest of the City and the County and Highways. "That's all
I'm going to say," he concluded. I asked if there were any MDOT discussions
with Montana Forest Products because there seemed to be some recent and
renewed interest in industrial development on the site and further demand for the
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Clarence W. Krepps, City Manager
Page 3
May 8, 1998
RR track. He said no. When I pointed out that property was a critical link for the
By -Pass connection to Hwy 2, he responded that there's a way the track could still
serve the site and allow the By -Pass. It was obvious he did not want to discuss the
subject further when I pointed out the rumors that there was an active effort to
stop the West Side By -Pass but did acknowledge that he had heard about some
"underground activity" to stop it.
4. MDOT's plans for relocation of facilities on Hwy 93N in response to the
ValleyDome proposal:. In response to our question, Mr. Brazda said they would
trade the MDOT acreage and improvements on Hwy 93 N for a similar size and
utility property further north on Hwy 93 N as had been offered as an exchange by
the ValleyDome group. He said they were not going to stand in the way of the
project if the move could be accomplished "at 0 cost to MDOT." He said MDOT
would react like it always does to any change in land use in the area that will
require mitigation of impacts by developers. He acknowledged that the EIS and
plans for Hwy 93 N and the By -Pass were based on the land use designated in the
current Master Plan for the area and not commercial zoning.
5. Status of the Main and Idaho intersection improvements: In response to our
inquiry as to the current status of the project he said that acquisition of the 4
corners of the intersection was either complete or negotiated and the project was
still scheduled for 2001. I told him we were doing our budget for FY 99 and
asked if there was anything the City could to expedite the project by participating
in some way. His response was "You bet. How soon do you want to meet with
Dick Chrest or ROW District Mgr. From Missoula?" We set a meeting date at the
MDOT Kalispell office on 5d EN for 10:30 a.m. May 12, 1998. I have called Tim
Hansz and left a message asking him to attend.
Around 12:45 p.m. today Narda Wilson called to report a call she had received from Mayor
Boharski late yesterday asking her about "leaks" of information regarding the use of tax increment
for the ValleyDome infrastructure. He told her "we think we may have found a way that we can
do this," suggesting that the developer could put in the infrastructure and the City could
reimburse them for it or some sort of arrangement. He told her he had talked with Glen Neier
that afternoon about the possibility. Narda, said she had called Glen who acknowledged his talk
with the Mayor but that he did not tell him the Mayor's suggestion would work to qualify the
project for TIF funding: I have a call into Glen to learn what the discussion was about.
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EXHIBIT 0113
The following notes are compiled to memorialize and document events of May 12, 1998 that
trarupired in the City Manager's office by the insistence, and inten6oni, of Mayor Bill Boharski. The
notes were compiled on 5/12/98 p.m. and reviewed and typed on S/13/98. Those areas that are
quoted are in quotes, other areas are general discussion that was inducted.
On May 12, at approximately 11:20 a.m., I was in a meeting for union negotiation in my office.
Present were City Attorney Glen Neier, Police Chief Ad Clark; Fire Chief Ted Waggener, Personnel
Specialist Marti Hensley and Rick DeHooge, a consultiPS negotiator. My north door suddedy
opened, with no knock, and Mayor Boharski came in. This was cornpleteily unexpected. He indicated
that he wanted a few words with me privately and undiplomatiany asked everyone to leave Bey
ofce, with they did. Kathy Kuhlin later informed me that she told the Mayor that I had an office
full of people but he said I'm going in anyway. +
Mr. Boharski began the conversation by stating "last night was the last straw. I'm tired of your
negativism and roadblocks." He was obviously referring to my statements about the legalities and
opinion that Mae Nan Ellingson (Bonding Attorney) had transmitted to the Mayor and Developers
of the ValleyDome. He continued to "blast away" about my, and Larry Gallagher's (PECDD
Director), attempts to "scuttle" the Dome. He was also upset with the KDC who has "screwed up"
this City with their advice to the Development Office.
He then said "I have talked with Council members and I have the five votes to fire you. We are not
happy with the way things are nun. We want you out of here and we are prepared to buy your
contract out now. We will give you six months and you can go. If you are a professional you
should do this. We are going to be involved with this City's operations whether you like it or not."
I indicated this discussion will not occur in my office but wiD take place "in there," in open forun%
and then I pointed to the Council Chambers. I indicated that to buy me out at this time for the sac
months is not acceptable, and if you want to go any further then be/they will be talking with lr
anorney.
MsyodM=W C=&= t d=
Mary 13, 1M
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Mr. Boharski proceeded to talk about several subjects in relation to bow bsd this City is run. General
topics were:
1) Larry Gallagher is the absolute worst person in this City. He has done nothing for the
City. He is headstrong and does not realize that he works for the City Council. He
and the rest of the department need to go ASAP. If you don't fire him then we will
do it through the budget process. That whole deparwwt can go and ad of those
responsibilities can be handled by this office (reference City Manager with a good
Advisory Board.) The Building Department operates on its own anyway.
2) He talked about the public perception of the City employees. They all have bad
attitudes. They treat the cozens like "snit." He discussed an incident with his
brother's car on the previous Sunday when a policeman found his brother's car
parked the wrong way on the street. Since he and his family were all on the porch,
the policeman, rather than coming to the porch to talk with them, yelled for the
neighbors to hear, `you got to turn your car around." This obviously made them very
angry. The :Mayor thought "he might have to give out his first pardon." He indicated
he had talked with Ad Claris about this but he was sure that Ad, although he is a nice
guy, wouldn't do anything about it. I could probably go over there right now and find
out that he hasn't talked with the officer about it. (approximately 2:45 p.m. I talked
with Chief Claris and he had talked with the officer within five minutes of the mayor's
discussion and got a different story about the incident.)
3) In the general discussion about the Economic Development Department, 1 asked the
Mayor if they did intend to eliminate the PECDD, would they be humane about it and
allow a transition time for these employees and would they allow me to negotiate a
phase -out with the employees. He indicated no, there will not be. We just want them
out of there. Larry's a professional and he can find another job just like you. "I'm
not worried or concerned about the management people losing their jobs, I'm just
concerned that no truck drivers or other workers lose their jobs, they have families
to support."
M"W44 na"r Ccntioouiiaa
Mry 13, 1998 -2-
1252
4) We discussed the general attitudes of the employees. He thought we should use more
"sugar" to motivate the employees to work rather than "strong arm tactics."
S) Several times he mentioned that "perception" is the with When I disagreed with this,
he said it doesn't make any difference what the truth it, it's the perception I'm
worried about. "Clarence, this is poetics and that 's the way the City operates." I
disagreed with this. He then restated that our PR is bad throughout the community.
Developers are not happy with the City, but the site review committee changes have
helped this considerably.
6) He indicated that his "group" does not eke my style of management. I don't fit in
here. I don't see the Councd's desires as important. He also said:
a) Tim Atkinson doesn't have a clue of what's going on.
b) Duane Larson is a nice man, but he doesn't have a clue either.
c) The former Council just let you run everything and we're not going to do that.
We're going to be involved in everything with this City, not just rubber
stamping your operations. I disagreed that the Council ever rubber stamped
anything.
7) He said you know the Council's wishes for the ISO rating, we want that changed.
You haven't done anything. I indicated that he is wrong_ The Eire Chief and I are
working on this but it will take time. The solution to a better fire rating is not an
overnight thing. "That's unacceptable," the Mayor said. I indicated that if we call in
the rating services with no changes, we run the risk of going the opposite direction
in the rating. I also indicated that we are planning on having a consultant come in to
review our departmental operations so that we can systematically address the
shortcomings. He then asked if anyone had talked with Creston and I answered that
the Chief has. I also indicated that we will have problems with training in Creston to
f M ISO training requirements since we would have to take our department out of
Ma)eMaoy CM60out%o
May 13, 199a
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town and leave the City without fire protection ibis response was that they could
come here. We are the City with the most money, we can build the structure and then
they could come here. I didn't respond to this.
8) He indicated that Mike Baker and I knew the ballfidds would be over the million
dollar maximum dw the Council set He indicated that Dennis Carver said that N tQe
and I added $90-100,000 in project costs just before vm went to bid and we did this
on purpose. Mke Baker said he need the � drat to make sure the grass would
grow on the Gelds. "I backed than into a corner. Doug (Scam couldn't vote against
the bailfields because he would lose too much busirx " You knew this was against
the Council's wishes, you fenced us in on the issue. 'ibis added $350,000 cost to the
ballfields that could have been used for the new utilities out on the South 93
improvements.
9) The issue of the City Logo was raised again- I did this without the input of the
Council. " I (Mayor) don't like your taste in art I wanted to make a logo, this was
going to be one of my first things to do. You could have said that I have $2,000
$3,000, whatever, in this so far, Council do you want to drop the logo, but you just
went on with it." I responded as I had at a Council meeting, "I have been duly
chastised for this issue already."
10) The Mayor indicated his displeasure with the way we handled the Meridian Project.
The Staff did not keep them (Council) informed of the problems. I indicated to him
that the process has been ongoing since 1995 and that as soon as we had answers to
the funding questions and policies of the State and Federal highway agencies, we
brought the discussion to the Council. Answers were received on April 24• about the
funding. We discussed the project with the Council on May I I'. He also said we
treated the City Service people like snit. I strong disagreed with him and pointed out
that we had several discussions with them but couldn't answer questions until we
received answers from MDOT. The Council had continually been apprised of the
steps in planning and design. This final design is just now being completed.
MryadM.a.f CaatrOWAbW
Mey 13. I M 4-
1254
11) During the tail end of the discussion on the Dome, the Mayor indicated that he was
upset because Mae Nan Ellingson met with the City Staff. He indicated that she was
supposed to meet with him and the developers only. I told him that Mae Nan
Ellingson had called and informed me that Thor Jackola had called her and stated that
Mayor Boharsld and Clarence suggested that he caIl her. (I never suggested that he
make this caD.) The Mayor indicated that the W wu to go to Thor Jackola, not the
City. {I do not believe that will be what happens because she is the City's bonding
attorney and cannot have the client mix with the developer.) The Mayor said he
would straighten this out with Thor Jackola.
The discussion then returned to the issue of how they want me out of here. This is not a good match.
"When we toy you what we want, we want you to do everything to get it done. You need to tell the
aupervisor, God danunit , this is the way it's going to be. If it takes twisting or skirting the law then
you do it, but you need to do what we want, period."
He also indicated that four of the Council members want to meet with the negotiator privately, I
kdi rmed him that we weren't going to do that. We had already arranged with the negotiator to have
an open meeting for all Council members on May 20e at noon The Mayor said no, four of us wiII
mod with him privately.
0 -�t Y<��
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