05/05/03 City Council MinutesA REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:00 P.M.
MONDAY, MAY 5, 2003, IN THE COUNCIL CHAMBERS AT CITY HALL IN
KALISPELL, MONTANA. MAYOR PAMELA B. KENNEDY PRESIDED. COUNCIL
MEMBERS JIM ATKINSON, DON COUNSELL, BOB HAFFERMAN, RANDY KENYON,
DUANE LARSON, FRED LEISTIKO, HANK OLSON AND JAYSON PETERS WERE
PRESENT.
Also present: City Manager Chris A. Kukulski, City Attorney Charles Harball, City Clerk Theresa
White, Finance Director Amy Robertson, Public Works Director Jim Hansz, Police Chief Frank
Garner, Parks and Recreation Director Mike Baker, Fire Chief Randy Brodehl, Community
Development Director Susan Moyer, Zoning Administrator P.J. Sorensen and Tri-City Senior
Planner Narda Wilson.
Mayor Kennedy called the meeting to order and led the Pledge of Allegiance.
AGENDA APPROVAL
Leistiko moved approval of the Agenda. The motion was seconded.
There was no discussion.
The motion carried unanimously upon vote.
CONSENT AGENDA APPROVAL
1. Council Minutes - Regular Meeting April 21, 2003
2. Lease Agreement — Wastewater Plant Sludge Disposal Site
This is a two-year agreement with Doug Wise to use forty acres on Cemetery Road as a
sludge disposal.
3. Proclamation — Day of Prayer
4. Proclamation — Elks National Youth Week
Atkinson moved approval of the Consent Agenda. The motion was seconded.
There was no discussion.
The motion carried unanimously upon vote.
STUDENT ISSUES
None.
HEAR THE PUBLIC
Erica Wirtala, Land Use Planner for Sands Surveying and representing Owl Corporation, stated Owl
Corporation is satisfied with the conditions set forth by the Planning Board for West View Estates.
She added this is a quality subdivision and she urged the Council to pass agenda items 6, 7 and 8.
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RESOLUTION 4780 — COMMUNITY DEVELOPMENT REVOLVING LOAN FUND
PROGRAM (TABLED APRIL 21ST)
This resolution creates a revolving loan fund for small business retention and expansion. The funds
are intended to stimulate economic development activity and assist businesses by making appropriate
long-term, fixed rate financing available at reasonable interest rates. On April 21 st, Council
postponed action on Resolution 4780 pending clarification of the resolution.
Atkinson moved to remove Resolution 4780 from the table. The motion was seconded.
(Resolution 4780 reads: "A resolution to establish an Economic Development Revolving Loan
Fund for business retention and expansion and to create an economic development loan review
committee.")
Hafferman stated this resolution has been improved by adding a reference to the living wage in the
Policies and Procedures Manual, but it is far from adequate. He stated there should be better
assurances that a loan of taxpayer's money does not generate mostly minimum wage jobs, or jobs
paying wages below the Montana Living Wage level for non -supervisory positions. Hafferman said
he will vote against the resolution because this is too important of an issue to not have better
emphasis on wages.
Olson asked how the loan default fund will work and if a default will be reduced to a judgment
against principal borrowers?
Moyer stated that the loan review committee will determine each and every loan and what equity an
applicant has. She said the committee will place special demands on an applicant if they think the
need is there and they will determine what kind of collateral will be required. Moyer explained the
intent of the program is to give a business "that little nudge" it needs to make it. She said because
the City has such a strong committee, she doesn't expect to experience loan defaults.
Olson said he feels the Community Development Department does a great job, but he will still vote
no on the resolution because he doesn't feel the City should be in the banking business.
Kenyon asked for an explanation of a Montana Living Wage.
Moyer answered a Montana Living Wage is in the $10-$ l l range, which could be salary and
benefits, or just salary. She stated her department uses numbers from the local Job Service, which
receives its information annually from the State. Moyer explained the living wage varies from city
to city because it looks at HUD income criteria and community living statistics, and is based on a
scale identified by the various state agencies.
Counsell asked that the word "funds" be added after "State and Federal" in Section I.
Kukulski clarified this is not a local tax; the funds come from Federal programs that are available to
all states.
The motion carried upon roll call vote with Peters, Atkinson, Counsell, Kenyon, Larson,
Leistiko and Mayor Kennedy voting in favor, and Olson and Hafferman voting against.
RESOLUTION 4782 — ANNEXATION — MEADOW PARK
This resolution annexes the Meadow Park area, which consists of approximately 49 acres lying to the
south of Kelly Road between Highway 93 and Willow Glen Drive, and to the north of Kelly Road
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Page 2
between Highway 93 and South Woodland Drive. A Resolution of Intent to Annex was passed by
Council on April 7th.
Leistiko moved Resolution 4782, a resolution to provide for the alteration of the boundaries of
the City of Kalispell by including therein, as an annexation, certain real property to be known
as Meadow Park Addition No. 323; and declaring an effective date. The motion was seconded.
Hafferman asked if there was any correspondence received other than the letter from Bill Astle.
Clerk White answered there were two additional letters received, one from Arlene Clarke and
another from Doug Billmayer which was presented to the Council this evening.
There was no further discussion.
The motion carried unanimously upon roll call vote.
RESOLUTION 4783 — ANNEXATION REO UEST — BLUE HERON ESTATES
Charles and Michelle Lapp are requesting annexation of approximately 24 acres located on the
northwest corner of Three Mile Drive and Stillwater Road.
Kenyon moved Resolution 4783, a resolution to provide for the alteration of the boundaries of
the City of Kalispell by including therein as an annexation certain real property, as more
particularly described on Exhibit "A", located in Section 2, Township 28 North, Range 22
West, P.M.M., Flathead County, Montana, to be known as Blue Heron Addition No. 324; to
zone said property in accordance with the Kalispell Interim Zoning Ordinance, and to declare
an effective date. The motion was seconded.
Kukulski explained the subdivision is inconsistent with our annexation policy because, at this time,
the property is not contiguous to the city. He said the Extension of Services plan generally requires
that subdivisions, before receiving service, either be located in the city or contiguous. Kukulski said
in the near future, the Council will consider an annexation request from another subdivision that will
make this subdivision contiguous. He stressed Kalispell is a growing community and it's critical to
have these developments on city services. Kukulski said he recognizes that annexation of this
development is not consistent with the policy, but to say no to the developers allows them to feel
justified to approach the county and install septic systems and wells.
Wilson gave a staff report.
Larson, referring to discussion on the floodplain in the Planning Board minutes, asked what a
"nondetailed area" means and how far the floodplain extends into this project.
Wilson answered in most cases actual elevation, or the base flood elevation of certain areas within
the floodplain, are known by taking cross sections, doing modeling and making some assumptions.
She stated this is one area that hasn't been studied thoroughly and the exact elevation of the
floodplain is unknown, thus the term "nondetailed area".
Larson said from the minutes, it sounds like we are determining that this area is not in the floodplain
without a FEMA engineering study.
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Wilson replied this area has been mapped by Tri-City Planning and the County GIS office and it
appears the area that's in the floodplain is much smaller than believed. She said it doesn't appear that
any of the housing lots are in the 100-year flood plain, and the area that is in the floodplain area will
be designated as park land with no insurable structures. Wilson explained the only area subject to a
floodplain development permit is the road crossing.
Hafferman stated in 1952, a planning document which was part of the original extension of services
plan and anticipated areas of annexation, indicated a sewage lift station near the intersection of
Three Mile Drive and Stillwater Road. He stated this project is right in line with planning over
twenty years old and it looks like a good project, but he's still concerned with the fire response time.
Hafferman once again urged the Council to set aside funds for a north fire station.
The motion carried unanimously upon roll call vote.
ORDINANCE 1451— INITIAL ZONING — BLUE HERON ESTATES —1ST READING
The Lapps are requesting an initial zoning designation of R-2, Residential, upon annexation of the
above -mentioned property. It is currently zoned County R-2, Residential, under the Flathead County
Zoning Regulations.
Kenyon moved first reading of Ordinance 1451, an ordinance to amend Section 27.02.0101,
Official Zoning Map, City of Kalispell Interim Zoning Ordinance, (Ordinance No.1439), by
zoning certain real property described as Blue Heron Addition No. 324 and further described
on Exhibit "A" located in Section 2, Township 28 North, Range 22 West, P.M.M., Flathead
County, Montana (previously zoned County R-2, Residential) to City R-2 (Single Family
Residential), in accordance with the Kalispell Growth Policy 2020, and to provide an effective
date. The motion was seconded.
There was no discussion.
The motion carried unanimously upon roll call vote.
RESOLUTION 4784 — PRELIMINARY PLAT — BLUE HERON ESTATES SUBDIVISION
The Lapps are also requesting preliminary plat approval of Blue Heron Estates, a 59-lot single-
family residential subdivision to be developed in three phases.
Larson moved Resolution 4784, a resolution conditionally approving the preliminary plat of
Blue Heron Estates Subdivision, more particularly described on Exhibit "A", in Section 2,
Township 28 North, Range 22 West, P.M.M., Flathead County, Montana. The motion was
seconded.
Kukulski explained that Condition # 10 concerning the buffer strip was stricken because the right-of-
way for Three Mile Drive is 120 feet wide and additional footage isn't for future expansion.
There was discussion concerning the future bypass and Mayor Kennedy asked if consideration is
being made for keeping this area open.
Wilson answered the bypass has been well identified and defined and the corridor is being preserved
from development.
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Olson said he remembers when a buffer zone was required for Stillwater Estates, and asked if a
buffer zone will be required with this subdivision.
Wilson stated Condition #9 requires a 20 foot buffer strip between Three Mile Drive and Stillwater
Drive.
Kenyon stated Condition #18 specifies building pad requirements for lots partially located in the
100-year floodplain, specifically lots 36, 37 and 38. Referring back to the discussion concerning the
floodplain map, he asked if lots 36, 37 and 38 are in reality located in the floodplain.
Wilson showed Council the current floodplain map and explained those properties are not actually in
the floodplain.
Mayor Kennedy asked if Condition #18 could be deleted if those properties are not affected.
Wilson answered yes, Condition #18 could be deleted.
Leistiko moved to amend the motion by deleting Condition #18. The motion was seconded.
Leistiko asked which one is incorrect, the floodplain or the contour intervals.
Wilson answered the contours are correct; the floodplain location is not.
The amendment carried unanimously upon vote.
There was no further discussion.
The motion as amended carried unanimously upon roll call vote.
RESOLUTION 4785 — ANNEXATION REQUEST — WEST VIEW ESTATES
Owl Corporation is requesting annexation of approximately 58 acres located on the northeast corner
of Stillwater Road and West Reserve Drive.
Kenyon moved Resolution 4785, a resolution to provide for the alteration of the boundaries of
the City of Kalispell by including therein as an annexation certain real property, as more
particularly described on Exhibit "A", located in Section 25, Township 29 North, Range 22
West, P.M.M., Flathead County, Montana, to be known as West View Addition No. 325; to
zone said property in accordance with the Kalispell Interim Zoning Ordinance, and to declare
an effective date. The motion was seconded.
Kukulski gave a staff report stating this project has been ongoing for a long time and was delayed by
the lack of a growth policy. He said as mentioned earlier with Blue Heron, it's critical to get sewer
and water to this area. Kukulski thanked Owl Corporation for its patience, adding other developers
may have moved ahead with the project and installed septic systems.
Hafferman stated the 1982 planning documents he referred to earlier did not include annexation of
this area because no one had any idea the valley was going to grow at the rate it has. Had they
known, he's sure this area would have been included because of its proximity to the city.
Hafferman once again emphasized his concern with fire response time and the need for an annex.
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Page 5
Olson said he's in favor of annexation, but asked the Council to think about postponing the
annexation until a fire station annex is in place.
Mayor Kennedy stated the best time, and the least costly time, to install sewer and water is at the
beginning of a development. She said she also strongly believes the city needs to prepare for the
future and set aside money for a northern fire station, but she also hopes the city can move forward
with annexations in order to make sure properties are developed to urban standards.
Peters said there has been a lot of comments on how these developments affect school districts and
he thinks the Council needs to discuss it.
Mayor Kennedy said that issue would come under subdivision review.
The motion carried unanimously upon roll call vote.
ORDINANCE 1452 — INITIAL ZONING — WEST VIEW ESTATES —1ST READING
Owl Corporation is requesting an initial zoning designation of R-3 and RA-1 for the property listed
above which is currently zoned County AG-80, Agricultural. The adopted Kalispell Growth Policy
designates this area as Urban Residential on approximately 50 acres and High -Density Residential on
approximately 10 acres.
Atkinson moved first reading of Ordinance 1452, an ordinance to amend Section 27.02.0101,
Official Zoning Map, City of Kalispell Interim Zoning Ordinance, (Ordinance No.1439), by
zoning certain real property described as West View Addition No. 325 and further described
on Exhibit "A" located in Section 25, Township 29 North, Range 22 West, P.M.M., Flathead
County, Montana (previously zoned County AG-80, Agricultural) to City R-3 (Residential) and
City RA-1 (Low Density Residential Apartment), in accordance with the Kalispell Growth
Policy 2020, and to provide an effective date. The motion was seconded.
Kukulski explained you will not see a request for additional right of way with West View Estates as
you did with Blue Heron, mainly because West Reserve Drive is an arterial and Stillwater Drive is a
collector. He added, however, there is a requirement for a buffer zone and pedestrian path.
Peters asked where the RA-1, Low Density Residential Apartments, would be located and why is the
Council dealing with this tonight.
Wilson answered Parcel A, in the southwest corner, would be zoned RA-1. She said the developers
would like the option of higher density residential and instead of asking for a zone change later, they
would like the RA-1 zoning up front.
The motion carried unanimously upon roll call vote.
RESOLUTION 4786 — PRELIMINARY PLAT — WEST VIEW ESTATES
Owl Corporation is also requesting preliminary plat approval of West View Estates, a 128-lot
residential subdivision. The subdivision would have 127 single-family lots and one 10-acre parcel
that would later be developed with duplex, townhouse or multi -family dwellings.
Larson moved Resolution 4786, a resolution conditionally approving the preliminary plat of
West View Estates Subdivision, more particularly described on Exhibit "A", in Section 25,
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Township 29 North, Range 22 West, P.M.M., Flathead County, Montana. The motion was
seconded.
Wilson explained this subdivision will be done in phases from the south to the north, initially with
one access onto West Reserve Drive and later with a secondary access onto Stillwater Road. Wilson
added the Fire Department may require that secondary access prior to the northern portion being
developed.
Hafferman, responding to comments concerning the impact to schools, stated he's "never known a
subdivision to cause children, people cause children", and the schools have to plan just as well as
everybody else.
Hafferman remarked the Extension of Services plan did not address the lift station at Grandview
Drive and asked what the City's obligation is.
Kukulski answered the upgrade to that lift station is in the current budget and design requests are
coming in now. He stated it will be paid for with connection fees.
Kenyon stated the cash in lieu of park land has been valued at $10,000 an acre, yet the building lots
are in the $45,000-60,000 range. He asked why the value of the park land is so much lower than the
building lots.
Wilson answered the park land dedication value is based on the unimproved value of the area. The
building lots are valued after a great deal of expense, including engineering, construction, and the
extension of water and sewer. This is stated specifically in the State Subdivision Statutes.
There was discussion concerning the road network within the subdivision.
The motion carried unanimously upon roll call vote.
ORDINANCE 1453 — ZONING TEXT AMENDMENT —1ST READING
This is a request from Grant Spoklie for amendments to the Kalispell Interim Zoning Ordinance to
reduce the parking requirements for beauty and barber shops.
Larson moved first reading of Ordinance 1453, an ordinance amending Section 27.26.050(4) of
the Kalispell Interim Zoning Ordinance, (Ordinance No. 1439), by amending the parking
requirements for beauty and barber shops, and declaring an effective date. The motion was
seconded.
Kukulski gave a brief staff report.
Mayor Kennedy asked if there's a reason this amendment is being looked at now, instead of
including it in the discussion approving the entire zoning ordinance.
Wilson said this is a request to address a specific situation and instead of making the applicant wait,
it was determined to move ahead with the application.
The motion carried unanimously upon roll call vote.
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ORDINANCE 1454 — PROHIBIT PARKING ON MAIN STREET/SUNSET BOULEVARD —
1ST READING
In 1999, the Council declared its intent to prohibit parking on Main Street/Sunset Boulevard between
Idaho Street and Arizona Street when left turn lanes were created. The State has nearly completed
construction in that area and the Council now needs to follow through on its pledge.
Kenyon moved first reading of Ordinance 1454, an ordinance prohibiting parking on Main
Street/Sunset Boulevard between Idaho Street and Arizona Street and declaring an effective
date. The motion was seconded.
Kukulski gave a brief staff report.
Counsel asked if the City will now be installing "No Parking" signs.
Kukulski agreed it's important to put those signs up as soon as possible.
The motion carried unanimously upon roll call vote.
ORDINANCE 1455 — VENDING ORDINANCE —1ST READING
This ordinance updates the "Traveling Merchant or Peddler" ordinance and allows vending only at
special events and in City Parks.
Larson moved first reading of Ordinance 1455, an ordinance repealing the existing language of
Kalispell City Ordinance 15-12 entitled "Traveling Merchant or Peddler" and replacing it with
language to regulate vending on public ways and declaring an effective date. The motion was
seconded.
Larson referred to functions like "First Night", "Art Walk", and other downtown special events and
questioned the provision in Section 10 setting out the hours of operation from 8:00 a.m. to 6:00 p.m..
Kukulski stated in his opinion a time limit should not be included in the ordinance and suggested the
Council remove it.
Mayor Kennedy said maybe the hours should remain with a provision for special events.
Leistiko commented if you remove the hours, you still have to leave the rest of the section because it
refers to the removal of vending equipment during non -vending hours.
Atkinson moved to amend the ordinance by eliminating the first sentence (Vendors shall be
allowed to engage in the business of vending only between the hours of 8:00 A.M. and 6:00
P.M.) from Section 10. The motion was seconded.
Kenyon asked if, for example, the vendors at Art in the Park will have to move their vending booths
overnight.
Mayor Kennedy said the provision allows for parking overnight in a lawful parking place and it's her
opinion that since Art in the Park rents the entire Depot Park, vendors would be allowed to leave
their booths overnight.
Harball concurred.
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The amendment carried unanimously upon vote.
Hafferman asked if door-to-door solicitors or out-of-town salespeople will need permits.
Harball answered that the ordinance is not intended to apply to door-to-door salesmen.
The motion as amended carried unanimously upon roll call vote.
ORDINANCE 1456 — SALARY ORDINANCE —1ST READING
Amendments to the salary ordinance include adjustments coinciding with the new AFSCME labor
contract, an adjustment of non -union salary ranges, and a new job title.
Atkinson moved first reading of Ordinance 1456, an ordinance amending Ordinance No.1412,
fixing the limits of the salary and compensation of the city officials, supervisors, and employees
pursuant to Title ?, 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.
Kukulski explained the ordinance is consistent with the Labor Contracts in place, deals with any
adjustment to the pay ranges and grades for non -union personnel, and provides Council with a detail
for each pay grade. He stated said a salary ordinance is adopted annually and normally includes an
adjustment to the pay ranges, both top and bottom. He said this year only the top range is being
adjusted by 2.3%, which is the Consumer Price Index (Western US Index). Kukulski said this
ordinance doesn't include any salary adjustments for any one individual; it just sets up the
framework. In addition to the range adjustment, the ordinance also includes an addition of a job title
which is Assistant to the City Manager.
Hafferman stated after reviewing the pay ranges, he feels if any adjustment should be made it should
be at the bottom.
Kukulski said in order to attract new employees, the bottom ranges should to be moved up to keep
competitive, however, current employees with several years of service have never moved far from
the bottom range of their pay scale because of the annual adjustments, despite positive evaluations.
He said on the other end, the City has a few individuals that have hit the top of their pay range and
they can't move any further. Kukulski said it's not critical to move the bottom, but it is important to
move the top because it affects some key positions in the organization.
Hafferman commented he still will vote against the ordinance because the "top range doesn't seem
too bad; the bottom range could stand improvement".
Mayor Kennedy asked Hafferman if he would like to make an amendment to include the 2.3%
adjustment to the bottom range also.
Hafferman said no, because he doesn't like numbers. He said a 2.3 % increase on a small salary isn't
much, but a 2.3% adjustment to a larger salary gets significant, adding he would prefer to see flat
increases.
Larson asked if there was an effort in this ordinance to correct the disparity between higher positions
in a department with a lot of responsibility, and lower positions with less responsibility. He said in
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Page 9
some cases, for example in the Police Department, lower positions are making more money than the
higher ones.
Kukulski stated this issue is having a crippling effect, particularly in public safety, but no attempt
was made to fix it in this salary ordinance. He said there are only two ways to fix it; tackle it head on
with our best guesstimate or conduct a new salary study that would delve deeper into those issues.
Olson remarked that many times in the public sector, especially in sales, the good salesman makes
more than the manager.
Olson asked how the lower pay scales in the City compare to minimum wages in the public sector.
Kukulski said the City has never had a problem filling positions in the lower pay ranges, but there
have been problems with the higher pay ranges.
Mayor Kennedy stated she disagrees with Olson that managers often make less than hourly
employees, adding her experience is that management should, and is, paid quite well and she hopes
the City pays its managers a good wage that is commensurate with their duties and responsibilities.
Mayor Kennedy suggested the Council direct management to go forward with a salary study.
Peters commented this system appears to be inherently flawed, but what he's concerned about is the
general assumption that the salary ordinance is adjusted by the CPI every year. He said he has no
problem with the union contracts, but he doesn't understand why we always include the non -union
adjustments at the same time.
The motion carried upon roll call vote with Olson, Atkinson, Counsell, Kenyon, Larson,
Leistiko and Mayor Kennedy voting in favor, and Peters and Hafferman voting against.
MAYORlCOUNCILICITY MANAGER'S REPORTS
Mayor Kennedy reminded the Council and the public that there is a work session scheduled for
Wednesday, May 7, 2003 at 7:00 pm. She commented this is an extremely busy time for the Council
and asked members to leave Wednesday or Thursday evenings open for budget sessions.
Larson said he would like the Council to work on developing a policy to alleviate the impact on rural
fire department budgets when we annex an area within their districts, and asked for the issue to be
addressed on a future work session.
Kukulski asked Council members to bring their audit copy with them on Monday, May 12 to the
work session. He said on May 7th, the Council will discuss health insurance and the budget, adding
there are critical issues the Council needs to face on the health insurance issue.
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ADJOURN
The meeting was adjourned at 9: 10 p.m.
ATTEST:
Th-&'esa White
City Clerk
Approved May 19, 2003
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