01-16-15 City Manager ReportCITYOF _ City of Kalispell
OFFICE OF THE CITY MANAGER
MONTANA
Information Memorandum
1/16/2015
1. Police Department
The Kalispell Police Department's second Citizens Police Academy will start on January
27. The course, which will consist of 10-12 citizens from the Kalispell area, will instruct
participants on the different facets of the Kalispell Police Department and how law
enforcement officers perform their jobs. Instruction will be provided by several officers
from KPD. The course will run nine weeks, meeting every Tuesday night and concluding
on March 24.
The Kalispell Police Department will be hosting a student intern from Flathead Valley
Community College this coming semester. The internship will start around January 20,
when the new semester begins, and run through May. While KPD has hosted several
interns in the past from local high schools (including two who are current officers), this is
the first intern KPD has had from FVCC.
In an effort to keep roadways open and safe during this heavy snow season, the Kalispell
Police Department has placed over 100- 72 hour violation notices on vehicles around the
City in the last week. The majority of the vehicles tagged were voluntarily moved prior
to the 72 hour deadline (Kalispell City Ordinance 17-77), however several have been
towed for non-compliance. Please assist us and your neighbors by moving your vehicles,
which are parked on the roadway, on a regular basis to allow for plowing.
2. Information Services
The majority of the FY 2015 replacement computers have been specified and the quote
process has begun. The expectation is to order the computers together to obtain the most
aggressive pricing.
The Cityworks PLL system configuration work continues. Building and IT staff have
worked through the permit cases and are at the point of beginning to test the permit
workflow. Additionally, the public access site configuration planning has begun.
Cityworks staff are still working to resolve issues with email task notifications. The
building department representative created an instruction book for staff to use and will be
a good reference when users start testing the system in the upcoming week(s). City staff
are working to complete the configuration to tie permit cases to the GIS map.
The City's IT Director was elected the Local Government Information Technology
(LGIT) Chair and will serve as the chair until July 2016.
3. Parks Department
With the recent snow events and accumulations, crews have been fixing roof leaks at
both city hall and the courts building. The issues varied from ice building up in a drain
causing water to back up through penetration points within the roof structure to water
freezing in seams allowing water to find a way through the EPDM roofing membrane.
On January 12, 2015, parks maintenance staff were able to attend a chainsaw safety class
as part of Safety Fest Montana held at FVCC.
The forestry crew is currently working on the 600 block of 2nd Ave. E., removing Dutch
Elm diseased trees.
The Street Tree Committee met on January 13, 2015, and approved their strategic plan
for 2015. Their plan includes an expanded Arbor Day Celebration at Lawrence Park on
April 24, 2015. This celebration will include all School District 95 third -graders,
teachers, chaperones, and volunteers. Professionals from green industry businesses and
organizations will be invited to host booths and provide education and conservation
demonstrations in their respective fields. Other items on the strategic plan for 2015
include: increase urban forestry safety, develop an urban forestry management plan, host
a community tree bicycle ride and evaluate success of the ARRA tree planting program.
Staff met with Paws to Play, a group interested in bringing a dog park to Kalispell, to
further discuss locations on city owned land. Three sites were identified for more
information to be gathered to gauge the amount of funds each site will need to make it a
viable location.
Recreation is currently accepting registrations for Little Squirts Basketball (for ages 4 -5
years old), Little Dribblers Basketball (grades kindergarten through 2nd grade), and Little
Kickers Soccer (indoor soccer for grades kindergarten through 4th grade). We had to
reschedule Glacier High School cheer camp to February 14 due to the lack of enrollment
for the January 10 camp.
4. City Clerk/Communications
One-on-one meetings to discuss communication strategies with directors and their
designees have been moving along rapidly with six individual department strategies
designed so far. Adding more content to the online Calendar of Events, advertising the
Notify Me tool and consolidating press contacts are just a few ways that we are working
together to begin improving public communication.
A social media use policy has been drafted and is being vetted by city staff with hopes of
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unrolling city Facebook and Twitter sites this year.
We have begun drafting a government channel use policy as well to help direct future
improvements to content and procedures on channel 190.
The importance of ongoing internal communication has been discussed and a new
employee newsletter is in the works.
On the City Clerk side, new agenda links on advisory board web pages should help the
public see current discussion topics.
5. Building Department
The Kalispell 2014 Construction, Subdivision, and Annexation Report is now available
for review on the city's website at the following link:
hLtp://www.kalispell.com/pla,nning/documents/Kall4reportFinal OOQ.Rdf
In the report you will find a significant amount of information that details building permit
and construction activity for last year as well as an update on population growth,
annexations and subdivision activity in 2014 and previous years for the City. A few
highlights are listed below:
Total building permit value of all construction types: $45,316,909
Total Building Permits Issued: 270
Residential (New dwellings) 98
Major Commercial/Public projects 18
Miscellaneous permits 154
As we begin 2015, the department has issued three new residential permits - one single
family residence and two townhouse units. We have also received preliminary drawings
for the Chick-fil-A restaurant located at 35 Treeline Rd (next to the new Verizon). Note
that actual construction for this project is scheduled for 2016.
6. Planning Department
The planning board met Tuesday evening and held 3 public hearings. The Flathead High
School Neighborhood Parking District and associated plan was finally approved on a 4-1
vote. The District which started out as a 25 block parking permit district was reduced in
size to 5 blocks and limited to Avenue faces. Streets will maintain open parking. The
concept was to start small and address the most immediate concerns first. The
compromise plan involves School District 5 providing an additional 50-60 off street
parking spaces. There are provisions, based on property owner petition, to add and
remove Avenues in the future and to remove Avenues if permit participation falls below a
certain participation level. This plan will be forwarded to the City council for final
consideration in the coming weeks.
A conditional use permit was recommended for approval to allow the construction of
three four-plexes on'/2 acre of land on the northwest corner of Financial Drive. In
addition, a two lot townhouse subdivision called Stillwood Farms was also recommended
for approval on the northeast corner of North Riding Road and Three Mile Drive. Both
of these projects will be scheduled for the February 2 council agenda.
In other news, Phase Four of Spring Prairie (previously called Victory Commons) was
submitted for review. This 28 acre project is located on the southwest corner of US 93
and Old Reserve Drive just south of Costco and McDonalds. The Kroenke Group is
requesting a growth policy amendment, a zone change to B-5 with a PUD overlay and a
14 lot subdivision. The project will go to the planning board for a work session on
February 10 and is tentatively scheduled for a public hearing at the March 10 planning
board meeting.
7. Public Works
Draft Design and Construction Standards
Public Works has prepared a draft update to the City of Kalispell Standards for Design
and Construction. The draft is available on the City website at
www.kalispell.com/public_works/engineering. The draft document includes changes in
formatting of the document, new and updated City Standard Details, clarification of
vague text, the addition of design review checklists, and the addition of City special
provisions for private development project manuals. Significant changes are proposed to
the Stormwater design requirements to better align with the City's MS4 Permit, make
them less restrictive, and provide additional options to development designers. Public
Works has asked engineers and contractors to provide comments and proposed changes
to the draft standards by the end of January. All comments and proposed changes will be
reviewed by staff. A final draft will be provided to the City Council for review at a
future work session.
Municipal Separate Storm Sewer System MS4) Permit- Stakeholder Meeting
On January 13, 2015, the first cooperative MS4 Permit Update meeting was held in
Helena between the Municipalities, EPA, and DEQ. During a two year period, cities will
work actively and collaboratively with DEQ to develop the content of a new MS4 five-
year permit, develop and make available a statewide manual to assist permit holders in
the implementation of the permit's key provisions, and any associated items affecting the
new permit.
8. Community Development
Flathead County Historic Jail Environmental Remediation
Environmental remediation work at Flathead County's Historic Jail site got under way by
Abatement Contractors of Montana on Monday, January 5, 2015. The work is funded
through a sub -grant from the City of Kalispell's Brownfields Revolving Loan Fund grant
and this phase of the work, focused on asbestos, is expected to take two months.
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Making nergy Work for Your Rural Business Workshop:
Kalispell's Community and Economic Development Department staff will participate in
the USDA Rural Development's January 16, 2015, workshop, "Making Energy Work for
Your Rural Business." The focus of the event is USDA RD's Rural Energy for America
(REAP) program and will include short presentations from other resource providers in the
area with Kalispell staff focusing on revolving loan fund programs available within the
City of Kalispell.
9. Fire Department
Since the last update for service, the Kalispell Fire Department have received 111 calls
for service and have conducted 1 outreach training with 5 individuals in attendance.
The fire department will see an overrun in expenses associated with overtime cost for
staffing. Currently we have an overage of $18,278 with a total amount paid out in
overtime of $58,278. This is due to various reasons, including several long-term
absences within the department. The department is working to absorb these overtime
costs through other budget line item savings. We have limited overtime training costs to
those trainings that are required only for necessary re -certifications. Also, we have
limited overtime shifts by reducing minimum staffing to 6 personnel when previously
maintained staffing at 7 by calling in people for overtime when regularly scheduled
personnel were unavailable. The fire department staff will continue to limit expenditures.
10. Finance
Audit
The annual audit report for the City's financial statements was received on December 31,
2014. The entire Comprehensive Annual Financial Report (CAFR) is available in PDF
format at the City's website. The Independent Auditor's Report begins on page 11 of the
CAFR, and is presented as a component of the financial section of this report. The goal
of the independent audit is to provide reasonable assurance that the financial statements
of the City for the fiscal year ended June 30, 2014, are free of material misstatement.
The City is also required to undergo an annual single audit in conformity with the
provisions of the Single Audit Act of 1984, as amended in 1996, and the U.S. Office of
Management and Budget Circular A-133, Audits of States, Local Governments, and
Non-profit Organizations. Information related to this single audit, including the
schedule of expenditure of federal awards and auditor's reports on internal control and
compliance with applicable laws and regulations are included on pages 140-145 in the
single audit section of this report.
Auditors have a responsibility to issue an appropriate report in circumstances when, in
forming their opinion on the financial statements, they conclude that a modification to
the auditor's opinion is necessary. The City received an unmodified opinion for both the
independent audit and the single audit. Prior to fiscal year 2013 this was referred to as
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an unqualified opinion, and concludes that the financial statements are presented fairly in
all material respects, and that, for the single audit, the City complied, in all material
respects, with compliance requirements.
The GFOA awarded a Certificate of Achievement for Excellence in Financial Reporting
to the City of Kalispell for its comprehensive annual financial report for the fiscal years
ended June 30, 2010, 2011, 2012, and 2013. We believe that our current comprehensive
annual financial report continues to meet the Certificate of Achievement Program's
requirements and it has been submitted to the GFOA to determine its eligibility for
another certificate.
Budge
The fiscal year 2016 budget process is under way. The finance department is formatting
budgets and updating preliminary personnel cost schedules.
The City's fiscal year 2016 debt service cost is also being updated for the budget to
include any fiscal year 2015 borrowings. Currently, Board of Investments loans have an
interest rate of 1%. All City debt other than the BOI and the 2012 Westside TIF note
($500,000) are fixed rate.
Quarterly Finance Report
Please find attached the printouts reflecting the activity for the 1st half of the fiscal year
2015. This printout reflects payroll earned thru Dec. 27, 2013. All funds are included
with the exception of the debt service funds.
REVENUE:
General Fund revenue reflects taxes collected thru December 31. Some first half taxes
received by the County aren't distributed to the City until the County completes the
distribution in January. Last year, the general fund received an additional $744,733 of
first half taxes in January. A similar distribution this January would bring collections
near 60% of the budgeted annual amount ($5,036,907). The City is currently carrying
$291,896 in protest taxes in the General Fund - protest tax dollars are held by the County.
Much of the protested taxes are centrally assessed properties.
The General Fund revenue budget reflects anticipated city golf course lease revenue of
$16,500. A new agreement was reached earlier this fiscal year with the Kalispell Golf
Association (KGA) which nullified this lease payment for the length of the new
agreement.
Parks tax revenues should also be over 50% after the County's January distribution.
Swimming pool fees in June, 2014, were $23,051. A similar June would leave pool fees
15% below the anticipated amount of $140,000. Youth camps current revenue of $4,009
is only 3% of the budgeted annual amount of $140,000, and although historically the
majority of this revenue is received in the 2nd half of the fiscal year, it is still significantly
less than at the same point last fiscal year ($27,404). Recreation fees, and sports program
fees, both less than 30% of the annual budgeted amount, historically receive the majority
of revenues in the 2nd half of the fiscal year, and are in a similar position as last fiscal
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year.
Ambulance fees for services are up about 11% (from $286,900 to $314,289) compared to
the 1 st half of last fiscal year.
Building department revenues are $206,890 for the first half of fiscal year 2015 compared
to $209,867 for the same period last fiscal year.
Metered water sales thru December were $1,701,099, this is 61% of the budgeted
amount. It is normal for July thru December metered water sales to be in excess of 50%
of the annual amount because of late summer and fall sprinkling and irrigation. For
comparison, last year's Is' half metered water sales were $1,715,213. Water impact fees
are down about 40% from 1st half of last fiscal year.
Sewer service charges were $2,199,037, or about 52% of the budgeted amount. Last
year's 1st half sewer service charges were $2,089,437. This increase of 6% is the result
of the sewer bi-monthly base rate increase from $15.00 to $16.88. Sanitary sewer and
treatment plant impact fees are both over 70% of the anticipated fiscal year 2015 amount.
Storm sewer and Solid Waste revenue reflect assessments billed for fiscal year 2015.
Assessments collected for the storm sewer fund is about $325,000, and for the solid waste
fund is $365,000. These amounts do not include the January distribution from the
County. Both of these funds should receive over $100,000 from the January distribution
of first half tax collections.
EXPENDITURES:
General Fund expenditures reflect 48% spent. Some large expenditures such as liability
and property insurance are paid during the first quarter for the entire year. This normally
would result in 2nd half expenditures being less than 1st half.
For most funds expenditures include the 13th (of 26) payroll period ending December
27th. Most departments and/or funds have at least 50% remaining in the salaries, health
insurance, and retirement line which should be adequate. An exception is the fire
department and ambulance fund where the majority of the employees are paid 13 times
annually. This 1st half report includes only 6 of 13 (46%) pay periods for these
employees. Fire and ambulance should have at least 54% remaining to adequately cover
the remaining pay periods.
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