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06/07/99 City Council Minutes1456 A REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:00 P.M. MONDAY, JUNE 7, 1999, IN THE COUNCIL CHAMBERS AT CITY HALL IN KALISPELL, MONTANA. MAYOR WILLIAM E. BOHARSKI PRESIDED. COUNCIL MEMBERS JIM ATKINSON, NORBERT DONAHUE, JOHN GRAVES, DALE HAARR, DUANE LARSON, GARY NYSTUL, DOUG SCARFF, RON VAN NATTA AND CITY ATTORNEY GLEN NEIER AND CITY MANAGER CHRIS KUKULSKI WERE PRESENT. Mayor Boharski called the meeting to order and led the Pledge of Allegiance. AGENDA APPROVAL Haarr moved approval of the Agenda with the appointment to the Kalispell Board of Adjustment being moved from the Consent Agenda to Agenda Item #13. The motion was seconded by Nystul. There was no discussion. The motion carried unanimously upon vote. CONSENT AGENDA APPROVAL 1. Council Minutes -Regular Meeting May 17, 1999 Council Minutes -Special Meeting June 2, 1999 2. Approval of Claims per Payables Regi3ter-$382,143.12 3. Award Bid - Sidewalk & Curbing for the Year Ending June 30, 2000 Bids were received from Pack and Company and Sandon Construction with the low bid coming from Sandon. 4. Award Bid - Sewer Improvement Project Bids were received from LHC, Pack and Company, Sandon Construction and Don Kelly Construction with Sandon being the low bidder with a total bid of $374,240.00. 5. Proclamation - National Flag Day (June 14) Nystul moved approval of the Consent Agenda. The motion was seconded by Van Natta. There was discussion. Nystul asked the Council to consider a change in the Minutes involving Public Hearings to include a synopsis of individual's statements. Nystul noted the recent purchase of a pickup and asked what the cost difference is between buying in the City and buying off a State contract. Public Works Director Jim Hansz answered the pickup is identical to a 1998 model the City purchased locally last year and the 1999 model was seven hundred dollars less on the state bid price. The motion carried unanimously upon vote. HEAR THE PUBLIC Thomas Tornow, Attorney for Citizens for a Better Flathead, reiterated concern with the Domesite PUD and asked for assurance that the "verbal promises" made now don't evaporate as quickly as the "verbal promises made between Pack & Company and ValleyDome LLC evaporated and as soon as Pack got what they wanted." Mayre Flowers, Talley Lake Road, Whitefish, spoke in opposition to both the Domesite PUD and the DNRC Neighborhood Plan and asked Council members to think about the cost of the growth these developments represent for the taxpayers. Jim Lynch, 430 Lakehills Lane, responding to criticism from Tornow, stated his dealings with ValleyDome, LLC were his private business and called Tornow's comments libelous. 1457 PUBLIC HEARING - DEPARTMENT OF NATURAL RESOURCES MASTER PLAN AMENDMENT/NEIGHBORHOOD PLAN The Montana Department of Natural Resources has requested a Neighborhood Plan for the state school section of property located at the northwest corner of Four Mile Drive and Highway 93. The development plan contains a mix of commercial, office and high density residential uses for approximately 600 acres. Boharski opened the public hearing. The followina spoke in favor David Greer, DNRC Consultant, stated he prepared the plan which he feels complies with state law for school trust land by developing the area to its highest and best use while at the same time giving the entrance to Kalispell a pleasing appearance. The following spoke in opposition: Marye Flowers, Talley Lake Road, feels the State hasn't explored all of its options and feels the wording of the plan is vague. In closing, Clive Rooney, DNRC, said the State's objective is to raise funds for the schools by developing a plan that the neighbors were not in opposition to. Boharski closed the public hearing. RESOLUTION 4480 - RESOLUTION TO ADOPT A RECOMMENDED NEIGHBORHOOD PLAN AMENDMENT TO THE KALISPELL CITY -COUNTY MASTER PLAN Atkinson moved Resolution 4480, a resolution adopting a recommended neighborhood plan amendment to the Kalispell City -County Master Plan. The motion was seconded by Nystul. There was discussion. Donahue commented because the State will retain title to the land the City will be providing water and sewer, fire protection and street service to the area with no tax benefit from any development. He said the City will receive taxes from the buildings but not from the land and stated he will not vote for it until some changes are made including a provision for payment in lieu of taxes is made. Nystul said with or without a plan this land will develop and possibly a future solution would be to go to the legislature and request fees in lieu of taxes for state land. Haarr stated he doesn't see any adverse impact in providing City sewer and water because any impact fees owed would be paid by the developer. Atkinson commented the State doesn't have to develop a neighborhood plan at all and this is a golden opportunity to see a plan that has incorporated a lot of public input. The motion carried upon roll call vote with Atkinson, Graves, Haarr, Nystul, Scarff, Van Natta and Boharski voting in favor, and Donahue and Larson voting against. ORDINANCE 1312 - ADOPTING DOMESITE PLANNED UNIT DEVELOPMENT - 2ND READING This is the second reading of Ordinance 1312 regarding a PUD amendment to the Kalispell Zoning Ordinance consisting of creating a Commercial B-2 with a PUD overlay on property owned by Pack & Company and the Montana Department of Transportation. Scarff moved second reading of Ordinance 1312, an ordinance approving a Planned Unit Development on certain real property owned by the Department of Transportation, State of Montana and Pack and Co. The motion was seconded by Haarr. 1458 There was discussion. Atkinson said because of the number of drafts of the PUD agreement and the changes made, the plan should be returned to the Planning Board. Atkinson moved to table the second reading of Ordinance 1312 until this Planned Unit Development Agreement is reviewed again by the Planning Board. The motion was seconded by Larson. The motion failed upon roll call vote with Atkinson, Donahue, Larson and Van Natta voting in favor, and Graves, Haarr, Nystul, Scarff and Boharski voting against. Larson asked if there is hazardous waste on that property, who is responsible for the clean up. Assistant City Attorney Richard Hickel suggested an environmental assessment be completed in the event the City has to enforce the lien on the land and end up in the chain of title. Lynch said environmental studies have already been done and it's Pack & Company's responsibility to remove any underground storage tanks and any contaminated materials from the area. Van Natta said he thinks the City should have those reports prior to accepting the land in lieu of a bond. Lynch answered it's important to understand the City will never own that land, even if it takes it in lieu of a bond. He said the only way the City would take it in lieu of a bond is to exercise foreclosure to pay a contractor who isn't being paid by the developer to do the work. Donahue disagreed, saying the agreement states if the development isn't done, the City can foreclose on the property. He said the discussion could be settled by providing the City with the environmental studies. Larson said he's concerned that the contractor doesn't want to commit to a looped water system. He said the City needs to be very careful that all questions are answered, especially the required amount of fire flow to protect the area, before any alternative is accepted. Hansz said the agreement states an alternate water system will be acceptable only if it meets all the requirements for supplying the needs of the facility and meets all Federal, State and City standards. Van Natta commented he will continue to vote against the project until there is a guarantee a Dome will be built. Nystul reminded members of a recent policy set by the Council that stated only contiguous property would be annexed to the City. He said even though he didn't vote in favor of it, he doesn't feel annexing the highway is what the policy had in mind. The motion failed upon roll call vote with Graves, Haarr, Scarff and Boharski voting in favor, and Atkinson, Donahue, Larson, Nystul and Van Natta voting against. RESOLUTION 4481 - ANNEXATION REQUEST FROM DELORIS PARTNERSHIP GROUP William C. Rice of Deloris Partnership Group has requested annexation of approximately 4.045 acres located on the north side of Appleway and east of Highway 2. The Planning Board has recommended approval of the annexation. Haarr moved Resolution 4481, a resolution to provide for the alteration of the boundaries of the City of Kalispell by including therein as an annexation certain real property, more particularly 1459 described in "Exhibit A", to be known as Deloris Addition No. 291, to zone said property in accordance with the Kalispell Zoning Ordinance, and to declare an effective date. The motion was seconded by Larson. There was no discussion. The motion carried unanimously upon roll call vote. ORDINANCE 1313 - INITIAL ZONING REQUEST FROM DELORIS PARTNERSHIP GROUP - 1ST READING William C. Rice of Deloris Partnership Group has requested initial zoning of B-2, General Business, upon annexation into the City. Larson moved first reading of Ordinance 1313, an ordinance to amend Section 27.02.010, Official Zoning Map, City of Kalispell Zoning Ordinance, (Ordinance No. 1175), by zoning certain real property described in Exhibit "A" (previously zoned County R-1, Suburban Residential) to B-2 (General Business), in accordance with the City -County Master Plan, and to provide an effective date. The motion was seconded by Van Natta. There was no discussion. The motion carried unanimously upon roll call vote. CONDITIONAL USE PERMIT REQUEST FROM DELORIS PARTNERSHIP GROUP William C. Rice of Deloris Partnership Group is requesting a conditional use permit to allow a 92-unit mini -storage facility to be located on the property described above. Van Natta moved approval of the Conditional Use Permit subject to the recommended conditions. The motion was seconded by Graves. There was discussion. Narda Wilson of FRDO informed the Council that because of neighborhood concerns, the applicant is actually reconsidering this proposal. The motion carried upon roll call vote with Atkinson, Donahue, Graves, Haarr, Larson, Nystul, Van Natta and Boharski voting in favor, and Scarff voting against. CONDITIONAL USE PERMIT REQUEST FROM COLUMBIA FALLS LOUNGE CORPORATION, INC. Columbia Falls Lounge, Inc. has applied to the City of Kalispell for a conditional use permit to convert an existing tavern in Cavanaughs into a casino. Nystul moved to table the Conditional Use Permit. The motion was seconded by Larson. There was discussion. Nystul said there are some clarifications that need to be made on what the Council can or can't do with a conditional use application concerning casinos before members vote on this issue. Dan Johns, attorney for the applicant, stated the applicant has satisfied every criteria that's set forth in the zoning ordinance and the Council cannot deny the permit arbitrarily, only unless there is some specific adverse impact. The motion carried unanimously upon vote. ORDINANCE 1314 - ZONE CHANGE REQUEST FROM BOB CHEROT, PHIL NEUHARTH AND BRUCE YOUNG - 1ST READING This is a request for rezoning approximately 3.8 acres located at 1460 the southern end of 7th Avenue EN, south of Idaho Avenue and north of Woodland Park from RA-1, Low Density Residential Apartment, and I-1, Light Industrial, to B-2, General Business. Haarr moved first reading of Ordinance 1314, an ordinance to amend Section 27.02.101, Official Zoning Map, City of Kalispell Zoning Ordinance, (Ordinance No. 1175), by zoning certain real property described as Parcel A, COS #7847 (RA-1 and I-1 Zoning) to B-2 (General Business), in accordance with the City -County Master Plan, and to declare an effective date. The motion was seconded by Graves. There was discussion. The motion carried unanimously upon roll call vote. ORDINANCE 1315A - ZONING TEXT AMENDMENT REQUEST FROM RICHARD OCKEY - 1ST READING This is a request to set the side yard setbacks in the RA-1, RA-2, and RA-3, Low Density Residential Apartment, district to ten feet for buildings over 25 feet in height. Van Natta moved first reading of Ordinance 1315A, an ordinance amending Section 27.09.040(3), 27.10.040(3), and 27.11.040 (3) of the Kalispell Zoning Ordinance, (Ordinance No. 1175), by amending the minimum side yard setback from ten feet to ten feet in the RA - if RA-2, and RA-3 Zoning Districts, and declaring an effective date. There was discussion. The motion carried unanimously upon roll call vote. ORDINANCE 1316 - ORDINANCE ESTABLISHING PROGRAM TO RECOVER HIGHWAY 93 SOUTH UTILITY COSTS - 1ST READING Boharski explained the staff is recommending a recovery formula of 10 percent by front footage with the remaining 90 percent being split between area and usage. Nystul moved first reading of Ordinance 1316, an ordinance establishing a program to recover utility costs associated with the installation of municipal utilities in connection with the reconstruction of U.S. Highway 93 South. The motion was seconded by Scarff. There was discussion. Nystul suggested attaching an exhibit map to the ordinance showing the parcels of land this applies to. Neier agreed. Atkinson commented he will vote against the ordinance because he feels before the Council agrees to a recovery cost for Highway 93 utilities, a discussion should be held as to whether those utilities should even be sent down Highway 93. The motion carried upon roll call vote with Donahue, Graves, Haarr, Larson, Nystul, Scarff, Van Natta and Boharski voting in favor, and Atkinson voting against. ORDINANCE 1308 - SALARY ORDINANCE - 3RD READING A third reading of the salary schedule ordinance is being presented as a result of two salaries being inadvertently changed between the first and second readings. Graves moved third reading of Ordinance 1308, an ordinance amending Ordinance No. 1293, fixing the limits of the salary and compensation of the city officials, supervisors, and employees 1 1461 pursuant to Title 7, Chapter 4, Part 42, M.C.A., commencing on the dates indicated herein, and repealing all other ordinances in conflict therewith. The motion was seconded by Atkinson. There was discussion. Kukulski explained the positions of Recreation Coordinator and Aquatics Coordinator were reclassified and the salaries raised accordingly. He said the salary change was reflected in the first reading of the salary ordinance, but right before the second reading, Interim Manager Al Thelen dropped the classifications to their original status. Kukulski said he can't fully explain the reason for the reversal, but recommends the Council pass a third reading of the ordinance with the reflected salary changes as determined by the reclassification. Donahue questioned why the change is being made at all if the Union negotiated the original salary. Neier answered the Union voted in support of the reclassification. Nystul commented Local 256 should be looking at its bargaining unit people and this change should have been presented by the Union previously. The motion carried upon roll call vote with Atkinson, Donahue, Graves, Haarr, Larson, Nystul, Scarff and Van Natta voting in favor, and Boharski voting against. RESOLUTION 4482 - BOUNDARY LINE ADJUSTMENT - DON ANDERSON This resolution is follow-up action to Don Anderson's proposal to adjust the property boundary line on the northeast corner of Woodland Park. Nystul moved Resolution 4482, a resolution authorizing a boundary line adjustment on the east side of Woodland Park and authorizing the Mayor to execute a deed to the property subject to the adjustment. The motion was seconded by Graves. There was no discussion. The motion carried unanimously upon roll call vote. RESOLUTION 4483 - INACTIVE SPECIAL IMPROVEMENT DISTRICT FUNDS CLOSE OUT This resolution gives the Finance Director authority to close out inactive Special Improvement District Funds and transfer the balances of those funds to the SID Revolving Fund as prescribed by Statute. Atkinson moved Resolution 4483, a resolution authorizing the Finance Director to close out the inactive Special Improvement District Funds to the SID Revolving Fund. The motion was seconded by Nystul. There was no discussion. The motion carried unanimously upon roll call vote. RESOLUTION 4484 - SPECIAL IMPROVEMENT FUNDS TRANSFER This resolution gives the Finance Director the authority to transfer funds which are in excess of 50 of the outstanding debt service for all Special Improvement Districts from the SID Revolving Fund to the General Fund. Graves moved Resolution 4484, a resolution authorizing the Finance Director to transfer the funds in excess of 5% of the outstanding SID debt from the SID Revolving Fund to the General Fund. The motion was seconded by Atkinson. 1462 There was no discussion. The motion carried unanimously upon roll call vote. APPOINTMENT TO THE KALISPELL BOARD OF ADJUSTMENT Rob Heinecke has submitted a letter requesting he be appointed to the Kalispell Board of Adjustment. Mayor Boharski recommended Rob Heinecke be appointed to the Board for a three-year term. Scarff moved Rob Heinecke be appointed to the Kalispell Board of Adjustment. The motion was seconded by Graves. There was discussion. Nystul commented Heinecke is already a member of the Planning Board and considering the size of our community the City shouldn't have the same people sitting on more than one board. The motion carried upon roll call vote with Graves, Haarr, Larson, Scarf and Van Natta voting in favor, and Atkinson, Donahue and Nystul voting against. MAYOR/COUNCIL/CITY MANAGER'S REPORTS Haarr said he respects the Council's decision on the Domesite but feels the decision against the PUD "points out a dire and desperate need for the Council to get together and decide the parameters of our community." He said the negative vote sends a "clear signal" to businesses that "if you can get located in the County, you better do it." Haarr said development will continue to grow outside the City and "we'll become the bedroom community" and the number one priority for the Council should be to decide where people can develop. Kukulski said TCI is requesting the Council take a break at approximately 9:30 p.m. during regular meetings to allow the changing of video tapes. Kukulski informed the Council he is leaving for Michigan on the 16th for the final move to Montana and said he anticipates returning in time for the next meeting on June 21st. ADJOURN The meeting was adjourned at 10:20 p.m. W Ll)m E G TBoharski Mayor ATTEST: eresa White City Clerk approved June 21, 1999