07/05/11 City Council MinutesAlso present: City Manager Jane Howington, City Attorney Charles Harball, City Clerk Theresa
White, Chief of Police Roger Nasset, Assistant Fire Chief Dave Dedman, Finance Director Amy
Robertson, Senior Planner Sean Conrad, Revolving Loan Fund Manager Wade Elder, and
Community Development Manager Katharine Thompson.
President Larson called the meeting to order and led the Pledge of Allegiance.
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There was no discussion.
The motion carried unanimously upon vote with Mayor Fisher absent.
1. Council Minutes — Regular Meeting — June 20, 2011
2. Fire Prevention Grant Acceptance
The fire department has been awarded a grant in the amount of $5,742 with a match of $638
to purchase fire prevention materials to include publications, smoke alarms and carbon
monoxide alarms. Staff requested the council accept the grant.
Saverud moved to approve the Consent Agenda. The motion was seconded.
There was no discussion.
The motion carried unanimously upon vote with Mayor Fisher absent.
Hannah Bjornsen, 1716 1 lth Avenue West, stated she is the owner of Ceres Bakery and is opposed
to the 9¢ retail transaction fee because it will disproportionately affect businesses that do a lot of
small transactions.
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President Larson opened the public hearing.
Kalispell City Council Minutes
July 5, 2011
Page 1
Proponents
None.
Opponents
None.
President Larson closed the public hearing.
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Resolution 5503 amends the fire department budget FY 10/11 to reconcile the actual expenditures
required for the operations of the fire department.
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of Kalispell, Montana, as set forth in the 2010-2011 budget adopted by the city council. The
motion was secoTrded.
None.
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This is a request by Todd and Theresa Cardin to annex approximately one -quarter of an acre located
on the west side of South Woodland Drive at the intersection of South Woodland Drive and the
southern lane of Quincy Loop.
Conrad gave a report and staff answered questions.
Public Comment
None.
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Kalispell City Council Minutes
July 5, 2011
Page 2
the southeast quarter of Section 17, Township 28 North, Range 21 West, P.M.M., Flathe
County, Montana, and more particularly described on Exhibit "A", to be known as Card
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and to declare an effective date. The motion was seconded.
Council Discussion
None.
Todd and Theresa Cardin are also requesting an R-2, Residential, zoning designation.
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Saverud moved first reading of Ordinance 1700, an ordinance to amend Section 27.02.010,
official zoning map, City of Kalispell Zoning Ordinance, (Ordinance No. 1677), by zoning
certain real property more particularly described as Lot 4 of Block 3, Greenacres Northwest as
shown on Certificate of Survey No. 18774 located in the southeast quarter of Section 17,
Township 28 North, Range 22 West, P.M.M., Flathead County, Montana, (currently zoned
County R-2 (Residential) to City R-2 (Residential)) in accordance with the Kalispell Growth
Policy 2020, and to provide an effective date. The motion was seconded.
Council Discussion
None.
The motion carried unanimously upon roll call vote with Mayor Fisher absent.
This resolution approves an agreement with the State of Montana for resurfacing U.S. Highway 2
between First Avenue West and Meridian Road and includes sidewalk replacement.
Howington gave a report and staff answered questions.
Public Comment
None.
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July 5, 2011
Page 3
Kenyon moved Resolution 5505, a resolution authorizing the Mayor of Kalispell or designee to
execute the construction agreement of Federal Aid Project No. NH 1-2(158)120, also known as
U.S. 2 Whitetop Project, with the State of Montana, acting by and through the Department of
Transportation. The motion was seconded.
Council Discussion
None.
Glacier Investment Properties has requested a distribution of Old School Technology Tax Increment
Fujids for Lot 7 OSS. The Urban Renewal Agency has recommended the increment generated by Lot
7 OSS be applied to the lot's Special Improvement District obligation.
Howington detailed background information on the Urban Renewal Agency.
Elder gave a report and staff answered questions.
Public Comment
Purnal Whitehead, 620 Steel Bridge Road, commented he is a partner in Glacier Investment
Properties and that early in the negotiation process there was a verbal agreement that they would be
able to participate in the TIF funds.
Atkinson moved Resolution 5506, a resolution to authorize a plan of cash distribution from the
Old School Station Technology Tax Increment District for the purposes of applying the tax
increment contributions of Lot 7, Old School Station to the Special Improvement District Bond
Obligation share of Lot 7, Old School Station. The motion was seconded.
Council Discussion
There was discussion on T]Fs and SIDS and Zauner remarked he has concerns with the extension of
the bond payments.
Hafferman commented he does not want to obligate the taxpayers to make payments on this project
after the TEF sunsets.
Hafferman moved to amend Section I as follows: "The City Manager is authorized to instruct
the Finance Director to apply the tax increment payments contributed by Lot 7, Old School
Station to the SID bond obligation share of Lot 7, Old School Station for a period not to exceed
10 years or until the tax increment district sunsets, whichever comes first, and in an amount
not to exceed 100% of the SID obligation on Lot 7, Old School Station." The motion was
seconded.
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July 5, 2011
Page 4
There was no discussion.
There was no further discussion.
The main motion, as amended, carried unanimously upon roll call vote with Mayor Fisher
absent.
School District 5 has requested a partial distribution of West Side Tax Increment Financing funds.
The Urban Renewal Agency has recommended a partial distribution to all of the contributing taxing
bodies in the total amount of $465,000.
Elder gave a report and staff answered questions.
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Darlene Schottle, Superintendent of Schools, answered questions and explained this money would be
earmarked to help finance repair of the half floors at Flathead High School because it is a life -safety
issue for the students.
Peter Fusaro, FHS principal, explained where the half floors are located and what they are used for.
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seconded.
Council Discussion
Hafferman, Larson, Atkinson, and Saverud spoke in favor of the partial redistribution.
Kluesner said he will vote against this, adding it is setting a bad precedent because other entities will
be asking for the same consideration.
Gabriel, in response to a letter from the Chamber of Commerce opposing the redistribution, said
there are currently no projects in the works for these funds and a partial redistribution makes sense.
The motion carried upon roll call vote with Atkinson, Gabriel, Hafferman, Kenyon, Saverud,
Zauner, and President Larson voting in favor, Kluesner voting against, and Mayor Fisher
absent.
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July 5, 2011
Page 5
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TeleTech has requested $43,964.00 in West Side TIF funds for the installation of a redundant fiber
line. The Urban Renewal Agency recommends that $20,982 be contributed out of the West Side TIF
for the project.
Elder gave a report and answered questions.
Staff answered additional questions.
Tori Grammond, representing TeleTech, explained a redundant fiber optic line is critical for their
business and they just recently learned that the previously existing redundant line was cut during
road reconstruction.
Doug Johns, 2059 Mission Trail, remarked he is a long-time Kalispell businessman and he does not
feel this is a legitimate use of TIF funds.
Atkinson moved Resolution 5508, a resolution to authorize a cash distribution from the West
Side Tax Increment Financing District for the purposes of partially funding the project that
provides the public infrastructure of redundant fiber optic line to the Gateway West Facility.
Tlav motion was seconded.
Council Discussion
Gabriel remarked that she is proud of the relationship the city has with TeleTech, but she is
concerned there is not enough information on who is responsible for cutting the line and who should
be paying to replace it.
Kluesner disagreed, stating the issue has nothing to do with the city and it should be an issue
between TeleTech and the State.
Tom Lund, URA Vice Chairman, commented the line is considered a utility like any other utility line
that benefits city users. It will not be proprietary to TeleTech.
Atkinson, Saverud, and Kenyon spoke in favor of the motion.
Zauner commented he would still like to table the motion pending additonal information.
Zauner moved to table Resolution 5508 to the next regularly scheduled council meeting. The
motion was seconded.
The motion to table failed with Gabriel and Zauner voting in favor, Atkinson, Haffer an,
Kenyon, Kluesner, Saverud, and President Larson voting against, and Mayor Fisher absent.
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July 5, 2011
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Kluesner reiterated there should not be favoritism of one business over another and this is not a piece
of infrastructure that TIFs should fund. He said TeleTech can afford this and should not get
government assistance.
Hafferman agreed, stating we should not be funding something for a private company.
The motion carried upon roll call vote with Atkinson, Gabriel, Kenyon, Saverud and President
Larson voting in favor, Hafferman, Kluesner, and Zauner voting against, and Mayor Fisher
absent.
This is a resolution of intent to abandon Grandview Avenue, an unused city street in the Knoll
Addition and schedule a public hearing for July 18.
Harball gave a report and answered questions.
1Oi7UV-G i rri"'S'iiTS fli
None.
the clerk to publish notice of this intent and hearing. The motion was seconded.
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None.
Howington offered the city's condolences to past Interim City Manager Myrt Webb on the passing of
his wife, Sharon.
Howington described some of the history of EMS funding, and noted staff is reviewing the cost of
services analysis for annexations to be sure it fits within the city's policy.
The meeting was adjourned at 9:53 p.m.
Theresa White
City Clerk
Approved July 18, 2011
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July 5, 2011
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