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