01/23/12 City Council MinutesI 11UTIONRED631Irl"My ID16TAV" tin 1-1-AIN lox
Also present: Acting City Manager Charles Harball, City Clerk Theresa White, Chief of Police
Roger Nasset, Planning Director Tom Jentz, Revolving Loan Fund Manager Wade Elder, and
Deputy City Clerk Judi Funk.
Mayor Fisher called the meeting to order and led the Pledge of Allegiance.
There was no discussion.
The motion carried unanimously upon vote.
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1, Council Minutes — Special Meeting — January 4, 2012
2. Council Minutes — Regular Meeting — January 9, 2012
3. Stillwater River Bank Stabilization Project
Five bids were received for this project from HK Contractors, LHC, Les Schlegel
Enterprises, Paveco, and Sandry Construction. Staff recommended the contract be awarded to
LHC in the amount of $296,985.15.
Saverud moved approval of the Consent Agenda. The motion was seconded.
There was no discussion.
The motion carried unanimously upon vote.
None.
The public was invited to speak on the projects proposed to be added to the West Side Urban
Renewal Plan.
Kalispell City Council Minutes
January 23, 2012
Page 1
Mayor Fisher opened the public hearing.
Proponents
None.
Opponents
None.
Mayor Fisher closed the public hearing.
(Letters received prior to and during the public hearing are attached hereto and made a part of the
official record)
READINGE/I. ORDINANCE 1711 — AMENDMENT — WEST SIDE URBAN RENEWAL PLAN —
IST
Ordinance 1711 amends the existing plan to include the demolition and remediation of under-utilized
or vacant structures/lots, and public infrastructure improvements including the Meridian/Appleway
intersection and the Colorado Street water main looping.
Harball gave a report.
Ben Johnson, Kennedy & Graven, Bond Counsel, gave a presentation and answered questions.
Public Comment
Pam Carbonari,14 3rd Street East, representing the Business Improvement District and the Kalispell
Downtown Association, noted both organizations are in favor of Ordinance 1711 and believe it will
be a great asset to the downtown core. She asked council to vote in favor of the Ordinance.
Joe Unterreiner, Chamber of Commerce President, remarked the Chamber is on record in support of
the projects.
Atkinson moved first reading of Ordinance 1711, an ordinance relating to the modification of
the Kalispell, Montana West Side Urban Renewal Plan (the Urban Renewal Plan) to approve
certain capital projects as urban renewal projects. The motion was seconded.
Council Discussion
Hafferman commented he will be voting against this because the proposal is a ruse to hoodwink the
public. He said there is no tax relief for taxpayers and this is "fiscal mismanagement" to dream up
Kalispell City Council Minutes
January 23, 2012
Page 2
projects just to extend the life of the TIF district.
Kluesner moved to amend Section I.c. to read, "The City Htay will also establish a revolving
loan fund...". The motion was seconded.
There was no discussion.
The amendment carried upon roll call vote with Atkinson, Gabriel, Guiffrida, Kenyon,
Kluesner, Saverud, Zauner, and Mayor Fisher voting in favor, and Hafferman voting against.
There was no further discussion.
The main motion, as amended, carried upon roll call vote with Atkinson, Gabriel, Guiffrida,
Kenyon, Kluesner, Saverud, Zauner, and Mayor Fisher voting in favor, and Hafferman voting
against.
Public Works staff recommended a traffic study in the area of the Meridian/Appleway intersection to
help determine the extent of work required to improve the level of service in that area. Staff is
requesting council approve a contract with Stelling Engineering to conduct the study at a cost of no
more than $11,000.
Harball gave a report and staff answered questions.
Public Comment
None.
Gabriel moved council approve the contract with Stelling Engineering to conduct a traffic
study of the Meridian/Appleway intersection. The motion was seconded.
Council Discussion
Hafferman remarked that the Willow Creek traffic study looked at this intersection in 2007 and
found a level of service of C, or acceptable. He said Appleway looks like a dead-end road and he
sees no need for a traffic study.
Mayor Fisher disagreed, stating she crosses this intersection about three times a day and it does need
improvement.
The motion carried upon roll call vote with Atkinson, Gabriel, Guiffrida, Kenyon, Kluesner,
Saverud, Zauner, and Mayor Fisher voting in favor, and Hafferman voting against.
Kalispell City Council Minutes
January 23, 2012
Page 3
Council was asked to vote on a motion to bring a resolution forward regarding the continuance,
modification, or discontinuance of the Transportation Impact Fees.
Harball gave a report and staff answered questions.
Public Comment
Chad Graham,105 Moes Run, remarked we need to make Kalispell as business -friendly as possible
and eliminate the transportation impact fees, adding impact fees are anti -growth.
Joe Unterreiner, Chamber of Commerce President, noted they have always been in opposition to
impact fees and asked for their repeal or reduction.
Pam Carbonari, representing Great Bear Builders, said she does not believe that impact fees are
inhibiting growth; it's the present economy. She asked council not to discard the impact fees which
would be like "throwing the baby out with the bath water".
Merna Terry, 207 Milky Way, also commented that impact fees are not the only reason people are
not building. She said the council needs to be looking at other alternatives to raise funds for roads
and incentives that could be helpful to businesses.
Guiffrida moved council discontinue the transportation impact fees and rebate the amounts
collected pursuant to state law and that the matter be brought back before council in the form
of a resolution complete with findings at the next regularly scheduled meeting of February 6,
2012. The motion was seconded.
Council Discussion
Guiffrida remarked that by eliminating the transportation impact fees we can start to turn the
economy around.
Zauner agreed, stating we need to send a message to the business community that Kalispell is open to
businesses.
Hafferman said the impact fees should not be eliminated, but they are out of line with the actual
needs and should be cut by 60%.
Mayor Fisher remarked everyone agrees the formula for the transportation impact fees is flawed and
it doesn't make sense to continue using it. She said she believes there is a better way and we need to
remove the barriers to economic recovery.
Kluesner commented it is in the best interest of the community to encourage growth and we should
be offering incentives to bring shoppers here. He said we can create jobs by giving up impact fees.
Kalispell City Council Minutes
January 23, 2012
Page 4
Saverud insisted this is one of the tools we need to keep. He suggested we suspend the fees
temporarily but not throw them out.
Kenyon agreed, stating this is an arbitrary, drastic action and there is no evidence that it will bring
more jobs. He called this plan "a hope and a prayer" and said the taxpayers will be the ones that pay.
Atkinson remarked that growth should pay for itself, not the taxpayer. He encouraged council to
vote against the motion.
The motion carried upon roil call vote with Gabriel, Guiffrida, Kluesner, Zauner, and Mayor
Fisher voting in favor and Atkinson, Hafferman, Kenyon, and Saverud voting against.
ESTATESRESOLUTION 5545 — PRELIMINARY PLAT PHASE EXTENSION
This is a request for a two-year extension of the preliminary plat of Silverbrook Estates Phase 2
which includes approximately 167 acres located at the southwest corner of the intersection of
Highway 93 and Church Drive.
Jentz gave a report.
Public Comment
David Mitchell, 249 Sherry Lane, asked council to approve the extension.
Atkinson moved Resolution 5545, a resolution approving a two-year extension to the
preliminary plat of Silverbrook Estates Phase 2. The motion was seconded.
Council Discussion
None.
The motion carried unanimously upon roll call vote.
Council discussed the appointment of City Attorney Charles Harball as Acting or Interim City
Manager until the position is filled.
Public Comment
None.
Saverud moved Charles Harball be appointed as "Interim" City Manager. The motion was
seconded.
Kalispell City Council Minutes
January 23, 2012
Page 5
Council Discussion
Gabriel said the definitions of "interim" and "acting" provided by staff was very clear to her and it
makes sense to have an Interim City Manager rather than an Acting City Manager.
Hafferman remarked that he does not believe it is appropriate under the circumstances to appoint
Harball as Interim as it wields too much power.
The motion carried upon roll call vote with Atkinson, Gabriel, Guiffrida, Kenyon, Kluesner,
Saverud, Zauner, and Mayor Fisher voting in favor, and Hafferman voting against.
�� 1 1111 •
Harball said unless there is an issue council would like to discuss, there will be no work session on
Monday, January 30.
Mayor Fisher summarized a recent meeting she and Atkinson attended with representatives of the
Evergreen Sewer District.
Gabriel remarked that the City Manager search committee has met and there are some good
candidates.
The meeting was adjourned at 8:46 p.m.
Approved February 6, 2012
Theresa White
City Clerk
Kalispell City Council Minutes
January 23, 2012
Page 6
January 3, 2012
The Honorable Mayor Tammi Fisher and Members of Kalispell City Council
City of Kalispell
201 First Avenue East
Kalispell, MT 59901
Re: Westside Urban Renewal District Projects: Support for Recommendations of the Urban
Renewal Agency
Dear Mayor Fisher and Members of City Council:
On behalf of our Board of Directors and membership, I would like to express the support of the
Kalispell Chamber of Commerce for the recommendations made by the Urban Renewal Agency for
projects to amend into the Westside Urban Renewal District.
Tax increment funding has been used for good effect in the Westside District. Funds used for
the acquisition and remodel of the TeleTech space and for related improvements, and transportation
and storm water improvements have strengthened our community and the overall business climate.
We also support the proposed creation of a $750,000 revolving loan fund for demolition and
remediation of obsolete structures including the Kalispell Lumber property and for the infrastructure
improvements. These are good uses of tax increment funds and will help to prepare under-utilized
structures for redevelopment. We think that the acquisition and/or swapping of property to
accommodate additional parking for TeleTech is best deferred until terms have been reached on the
lease renewal for TeleTech.
I would like to thank the Council for its diligence and foresight in taking the steps that will return
Kalispell to growth and accelerated job creation. By taking this step, you will enable private
investment to be directed and leveraged with tax increment funds, Brownfield funds, and other
sources that will benefit not just Kalispell, but the entire region.
Sincerely,
j J06Unterreiner, President
lalispell Chamber of Commerce
OFFICE 406.758.2800. 406.758.2805 FAX • 15 Depot Park, Kalispell, MT 59901