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02/07/00 City Council Minutes1572 A REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:00 P.M. MONDAY, FEBRUARY 7, 2000, IN THE COUNCIL CHAMBERS AT CITY HALL IN KALISPELL, MONTANA. MAYOR WILLIAM E. BOHARSKI PRESIDED. COUNCIL MEMBERS JIM ATKINSON, DON COUNSELL, DALE HAARR, RANDY KENYON, DUANE LARSON, FRED LEISTIKO, DOUG SCARFF, RON VAN NATTA AND CITY MANAGER CHRIS KUKULSKI AND CITY ATTORNEY GLEN NEIER WERE PRESENT. Mayor Boharski called the meeting to order and led the Pledge of Allegiance. AGENDA APPROVAL Haarr moved approval of the Agenda as presented. The motion was seconded by Van Natta. There was no discussion. The motion carried unanimously upon vote. CONSENT AGENDA APPROVAL 1. Council Minutes -Regular Meeting January 18, 2000 Council Minutes -Special Meeting January 24, 2000 2. Approval of Claims per Payables Register-$320,685.39 Scarf moved approval of the Consent Agenda as presented. The motion was seconded by Atkinson. There was discussion. Haarr made a correction to the minutes. The motion carried unanimously upon vote. HEAR THE PUBLIC None PUBLIC HEARING - COMMUNITY DEVELOPMENT BLOCK GRANT This is the second of two public hearings for the purpose of gathering citizen input to identify and prioritize community development needs for economic development, housing, community revitalization and public facilities. Susan Moyer, Community Development Director, explained that staff has reviewed the input from the January 24th public hearing and the consensus of those that spoke is to apply for a grant on behalf of Stream. She said unless other ideas are presented this evening, it's staff's recommendation that Council approve the application process. Boharski opened the public hearing. Proponents Doug Rauthe, NW Montana Human Resources Executive Director, stated the change in the CDBG to allow for training dollars is very important and deserves everyone's support. Kathy Hughes, FVCC, asked the Council to support the application process. Opponents None Boharski closed the public hearing. Leistiko moved the Council authorize staff to submit a CDBG Economic Development Grant Application in the amount of $400,000 specifically for training for Stream International. The motion was seconded by Scarff. Kalispell City Council Minutes February 7, 2000 1573 There was no discussion. The motion carried unanimously upon vote. Leistiko moved the Council authorize the City and the Port Authority to apply for a $500, 000 EDA grant specifically for Stream International. The motion was seconded by Atkinson. There was discussion. The motion carried unanimously upon roll call vote. PUBLIC HEARING - BUDGET AMENDMENT This public hearing is for the purpose of gathering citizen input on a budget amendment by allocating an additional $1,133,500 from the UDAG Loan Replacement fund for the purpose of loaning money to Stream International Services Corp. and United Way of Flathead County. Boharski opened the public hearing. Proponents None Opponents None Boharski closed the public hearing. RESOLUTION 4534 - A RESOLUTION AMENDING THE ANNUAL APPROPRIATIONS OF THE CITY OF KALISPELL Van Natta moved Resolution 4534, a resolution amending the appropriations of the City of Kalispell, Montana, as set forth in the 1999-2000 Budget adopted by the City Council for the purpose of appropriating loans for Stream International Services Corp., and United Way of Flathead County. The motion was seconded by Atkinson. There was no discussion. The motion carried unanimously upon roll call vote. ORDINANCE 1347 - 2ND READING This ordinance modifies the West Side Urban Renewal Plan by adding certain projects, such as Stream International, and amends Ordinance 1259 regarding the procedure for approving projects. Larson moved second reading and final approval of Ordinance 1347, an ordinance relating to the modification of the Kalispell Montana Urban Renewal Plan (The Urban Renewal Plan) to approve certain projects as Urban Renewal Projects and to amend Ordinance No. 1259 regarding the procedure for approving projects. The motion was seconded by Scarff. There was discussion. Kenyon said he's disappointed in the change of procedure for approving projects. He said he's reluctant to rely solely on the media for notice to property owners. Roxanne Brothers, 786 4th Avenue West North, spoke against the notification change and also said she has collected over 100 signatures from people opposed to the incentives offered to Stream. Patricia Johnson, 714 4th Avenue East, said she is also opposed to the notification change. Kalispell City Council Minutes February 7, 2000 Page 2 of 6 1574 Richard Bucher, 506 1st Avenue West #316, stated he's against relying on the media because several low income people he knows don't have access to a television or newspaper. The motion carried unanimously upon roll call vote. RESOLUTION 4535 - A RESOLUTION APPROVING SIX SEPARATE DOCUMENTS RELATED TO THE STREAM PROJECTS This resolution approves the following agreements: 1) Agreement for Conveyance - a buy sell agreement wherein the City agrees to purchase and American Capital agrees to sell a portion of Gateway West Mall; 2) Location, Development and Use Agreement - an agreement between the City, Stream International and American Capital which details the responsibilities of each party and the penalties for failing to perform; 3) Interlocal Agreement - an agreement between the City and the Flathead County Port Authority spells out the ownership, operation and management of the portion of Gateway West Mall dedicated to the Stream operation; 4) Lease Agreement - covers the lease between the City, Port Authority and Stream International; 5) Declaration of Restrictions and Establishment of Easements - affects the land between the City, American Capital Group and Stream International in terms of building and property maintenance, replacement, parking, etc.; and 6) Development Agreement - an agreement committing American Capital to spend 1.5 million dollars for the renovation of the remainder of Gateway West Mall which is separate from the Stream International area. Atkinson moved Resolution 4535, a resolution relating to Stream International Services Corp. Project; describing and approving the project; approving the Location, Development and Use Agreement between the City and Stream International Services Corp.; authorizing the execution of an Interlocal Agreement between the City, Flathead County and the Flathead Valley Economic Development Authority; and approving and authorizing the execution and delivery of documents related thereto. The motion was seconded by Scarff. There was discussion. Boharski suggested discussing each agreement separately. Scarff said hundreds of man hours have been put into these documents and suggested the Council put their faith in the staff and approve them. Leistiko agreed, stating the documents have received more than adequate review from all sides and deserve Council support. Kukulski explained the major points of the Location, Development and Use Agreement, which he said is probably the most important document. There was discussion. Kalispell City Council Minutes February 7, 2000 Page 3 of 6 1575 Harry Dorf (?), 1215 6th Street West, spoke in favor of the project, stating Kalispell doesn't provide many technical jobs and Stream is offering to change that. Bob Domrose, 376 6th Avenue East North, asked several questions and said he's still concerned with Stream's proposal and feels Council should delay approval for at least two weeks to gather more input from citizens. Van Kirk Nelson, South Foys Lake Road, said Kalispell has to "crawl before it can walk" and this is an opportunity for young people to get jobs with benefits. Kathy Hughes, FVCC, said the investment in education and training will pay off in the future. Virginia Sloan, Job Service, stated the public has spoken with approximately 1,000 resumes already submitted to Stream. Dave Brothers, 786 4th Street West, said he's concerned that employees have to supplement part of the health benefits which makes the $7.50 per hour not enough to live on. Joe Carbonari, Somers, commented people buying insurance on their own would pay a lot more and in essence, Stream is actually paying $10.50 per hour. Barry Roose, Regional Development Officer for Montana Department of Commerce, said a benefit that hasn't been mentioned is that the employees are getting education and training they would have to pay a school for. Bill Mason, visitor, said coming from a larger city, Council should be cautious of the proposal. Boharski commented he's amazed that voters will agree to pay for a bond levy for education, with no jobs guaranteed at graduation, yet are critical of a company that not only guarantees jobs, but also technical training. Kenyon said overall, the package is probably reasonable and fair, however some citizens are concerned at how fast the project was put together. He said several people felt the public was not as informed as they could have been and he suggested in the future, a protocol be established to keep the public advised. The motion carried unanimously upon roll call vote. RESOLUTION 4536 - URBAN RENEWAL REVENUE BOND This resolution is necessary for the Montana Board of Investments to sell a taxable TIF bond to provide the funds for the $2,500,000 loan needed to purchase the property located at the Gateway West Mall to lease to Stream International. Scarff moved Resolution 4536, a resolution relating to $2,500,000 West Side District Taxable Tax Increment Urban Renewal Revenue Bond, Series 2000; authorizing and directing the issuance and prescribing the form and terms thereof and the security therefor. The motion was seconded by Haarr. There was no discussion. The motion carried unanimously upon roll call vote. Kalispell City Council Minutes February 7, 2000 Page 4 of 6 1576 PARTICIPATION AGREEMENTS WITH CENTURYTEL AND FLATHEAD ELECTRIC COOP As part of the incentive program to Stream, CenturyTel has agreed to provide a second electrical and telephone entrance into the facility, and Flathead Electric will improve the electric reliability on the leased premises from the radial circuit configuration to a dual feed enhanced reliability configuration. Haarr moved the Council authorize the City Manager to enter into separate agreements with the utilities, Stream International and the City to perform to the compliance monitoring requirements. The motion was seconded by Larson. There was no discussion. The motion carried unanimously upon vote. RESOLUTION 4537 - CONSTRUCTION AGREEMENT FOR OVERLAY OF EAST IDAHO STREET The Montana Department of Transportation has prepared a project for the reconstruction of East Idaho Street from 1st Avenue East North east to the intersection of US 2 and 7th Avenue East North with the installation of a portland cement concrete pavement overlay. To ensure the State qualifies for receipt of Federal funds to perform the work, the City is being asked to enter into a project construction agreement. Scarff moved Resolution 4537 which reads: It is hereby resolved by the City Council of Kalispell that the City Agreement of Federal Aid Project No. STPP 1-2(93)121 with the State of Montana, acting by and through the Department of Transportation, is adopted by this Council; and the Mayor of Kalispell is hereby empowered and authorized to execute said Agreement on behalf of the Council of Kalispell. The motion was seconded by Atkinson. There was no discussion. The motion carried unanimously upon roll call vote. RESOLUTION 4538 - CONSTRUCTION AGREEMENT FOR OVERLAY OF WEST IDAHO STREET The Montana Department of Transportation has prepared a project for the reconstruction of East Idaho Street from 1st Avenue West North west to the intersection of US 2 and Apple Way Drive with the installation of an asphaltic concrete pavement overlay. Leistiko moved Resolution 4538 which reads: It is hereby resolved by the City Council of Kalispell that the City Agreement of Federal Aid Project No. SFCN 1-2(94)120 with the State of Montana, acting by and through the Department of Transportation, is adopted by this Council; and the Mayor of Kalispell is hereby empowered and authorized to execute said Agreement on behalf of the Council of Kalispell. The motion was seconded by Haarr. There was no discussion. The motion carried unanimously upon roll call vote. RESOLUTION 4539 - CONSTRUCTION AGREEMENT FOR MAIN STREET RECONSTRUCTION The Montana Department of Transportation has prepared a project for the reconstruction of Main Street extending from Washington Street to Center Street and includes reconstruction of the Main and Idaho intersection. 1 1 Kalispell City Council Minutes February 7, 2000 Page 5 of 6 1577 u Leistiko moved Resolution 4539 which reads: It is hereby resolved by the City Council of Kalispell that the City Agreement of Federal Aid Project No. CM -NH 5-3(51)112 F with the State of Montana, acting by and through the Department of Transportation, is adopted by this Council; and the Mayor of Kalispell is hereby empowered and authorized to execute said Agreement on behalf of the Council of Kalispell. The motion was seconded by Haarr. There was no discussion. The motion carried unanimously upon roll call vote. SPECIAL CITY PROSECUTOR The Office of the City Attorney is asking Council to appoint Flathead Deputy County Attorney Eric Hummel as Special City Prosecutor when conflicts arise. Larson moved Council appoint Flathead Deputy County Attorney Eric Hummel as Special City Prosecutor for the City of Kalispell. The motion was seconded by Counsell. There was discussion. Leistiko suggested limiting the appointment to one year. The motion was amended without objection. The motion as amended carried unanimously upon vote. MAYOR/COUNCIL/CITY MANAGER'S REPORTS Kukulski thanked everyone involved in the Stream proposal and added it was everyone working together that got this project approved. Craig Weinstein, Stream International, also thanked everyone for their time and effort and said despite the hard questions, he never once felt unwelcome and stated Stream is very excited to be coming to Kalispell. ADJOURN The meeting was adjourned at 10:23 p.m. ATTEST: eresa White City Clerk approved February 22,2000 Wm.E .5aharski t Wm. E. Boharski Mayor Kalispell City Council Minutes February 7, 2000 Page 6 of 6