04/02/07 City Council MinutesA REGULAR MEETING OF THE KALISPELL CITY COUNCIL WAS HELD AT 7:00
P.M., MONDAY, APRIL 2, 20079 IN THE COUNCIL CHAMBERS AT CITY HALL IN
KALISPELL, MONTANA. MAYOR PAMELA B. KENNEDY PRESIDED, COUNCIL
MEMBERS JIM ATK.INSON, BOB HAFFERMAN, RANDY K.ENYON, TIM KLUESNER,
HANK OLSON, DUANE LARSON, AND WAYNE SAVERUD WERE PRESENT, COUNCIL
MEMBER KARI GABR.IEL WAS ABSENT.
Also present: Acting City Manager Torn Jentz, City Attorney Charles Harball, City Clerk Theresa
White, Assistant Police Chief Roger Krauss, Public Works Director Jim Hansz, Fire Chief Randy
Brodehl, Community Development Director Dave Foster, Community Redevelopment Manager
Sandy Wheeler, Planner II Nicole Johnson, and Recording Secretary Judi Funk.
Mayor Kennedy called the meeting to order and led the Pledge of Allegiance.
A. AGENDA APPROVAL
Larson moved approval of the Agenda. The motion was seconded.
There was no discussion.
The motion carried unanimously upon vote with Gabriel absent.
B. CONSENT AGENDA APPROVAL
1. Council Minutes — Revilar Meetin — March 1 2007
2. Grant Acre Lance -- Selective Traffic Enforcement Pro am
The police department has received a $30,000 increase to the Selective Traffic Enforcement
Program Grant which runs through September 2007. The budget needs to be increased by
$15,000 with the additional $15,000 for next fiscal year.
3. Ordinance 1600 — Stormwater Re tions — 2nd Readin
This resolution adopts stormwater regulations that comply with Federal and State stormwater
permitting requirements. Ordinance 1600 passed unanimously on first reading March 19.
4. Introduction — Assistant Fire Chief/Prevention
Brodehl introduced the Fire Department's new Assistant Fire Chief for the Prevention
Division, DC Haas.
Kenyon moved approval of the Consent Agenda. The motion was seconded.
There was no discussion.
The motion carried unanimously upon roll call vote with Gabriel absent.
Kalispell City Council Minutes
April 2, 2007
Page l
C. STUDENT ISSUES
None.
D, PUBLIC COMMENT
Brian Long, Long Engineering, spoke in favor of the Cottage Gardens Subdivision and asked for
Council's approval of the project.
Lance Isaak, Flathead Attention Home Program Director, asked the Council to approve their request
for a Conditional Use Permit.. He said the home has had to move twice and it's hard to provide
stability for the youth when the home is always in transition.
E. PUBLIC HEARING — Q.INT CDBG-ED APPLICATION- - TELETECH
Council accepted public comments concerning the submission of a joint Community Development
Block Grant application with Flathead County on behalf of TeleTech.
Wheeler gave a staff report explaining the CDBG-ED grant application request will be for a total
amount of $800,000 to provide training for up to lfo employees.
Mayor Kennedy opened the public hearing.
Arthur Nowak, TeleTech Site Director, declared the grant would allow TeleTech to create 80
additional jobs and retain an additional 80 positions by helping to offset training costs. He said
TeleTech is required to match any monies received from this grant and asked Council for its support.
Beau Bledsoe, 1216 Rhodes Draw, also asked for Council support stating he moved to the area in
July, 2005 with his pregnant wife and one year old daughter and he didn't have a job. He said he
started working for TeleTech and because of their training opportunities he is now the operations
manager in charge of 200 employees.
Liz Marchi, President of Montana West Economic Development and CEO of Flathead County
Economic Development Authority, commented that her experience with TeleTech has exceeded her
expectations. She said TeleTech has really stepped up to the plate, putting $12 million in payroll in
the community last year. Marchi noted that the best investment we make is in people and she urged
Council's support for this application.
Charlie Wright, Regional Development Officer for the Montana Department of Commerce, stated he
has been working with TeleTech on the ground work for this grant since last October and this is a
fantastic opportunity for the City, the County, and TeleTech.
Mayor Kennedy closed the public hearing.
Kalispell City Council Minutes
April 2, 2007
Page 2
F. PUBLIC HEARING — TRANSPORTATION IMPACT FEES
Council accepted public comments concerning the proposed impact fees for the City's transportation
services.
Jentz gave a staff report.
Mayor Kennedy opened the public hearing.
Doug Rauthe, Executive Director of Northwest Montana Human Resources, noted one of the
programs he is involved in is the mutual self-help housing program which is designed to help those
families that are under 80% of the local area median income. He said self-help housing costs will be
adversely affected by these impact fees and the program will not be viable.
Grant Nelson, Goldberg Properties of Colorado, detailed Goldberg's retail development background
stating they understand impact. fees. Nelson noted that "retail follows residential" and questioned
some of the principles of the study; specifically that "impact fees do not harm development". He said
in a small to mid size market like Kalispell impact fees that are too high will stifle growth because
retailers will not come; they would rather be located in an area that doesn't have the fees like
Columbia Falls.
Tia Robbin, attorney representing Phil Harris, Mutton Ranch Plaza developer, remarked that one of
her biggest concerns is that the consultants lumped all of Kalispell into one zone with the same
formulas, even though residential and commercial growth occur in different areas. In addition, the
report allocates 90% of the transportation growth costs to commercial development and 10% to
residential. She said even though this may be very politically appealing, it does not meet the
requirements of Section 7-6-1602(5) MCA, the law governing impact fees. Robbin agreed with
Nelson that commercial development follows residential growth and commented that these fees
would be "shooting the goose that lays the golden egg".
Charles Lapp, 3230 Columbia Falls Stage Road, thanked the Council for thoughtfully considering
these fees. He said developers understand the City's need for impact fees, but cautioned that
businesses could just as easily avoid the fees by moving to Evergreen where sewer and water is also
available.
Mayor Kennedy closed the public hearing.
(All written comments received are attached and by this reference are made a part of the official
record)
G. REPORTS/RECOMMENDATIONS AND SUBSEQUENT COUNCIL ACTION
GII. RESOLUTION 5188 — AUTHORIZING JOINT CDBG GRANT APPLICATION -
TELETECH
Kalispell City Council Minutes
April 2, 2007
Page 3
The City of Kalispell and Flathead County have been approached by TeleTech to submit a joint
Community Development Block. Grant education application.
Kenyon moved Resolution 5188, a resolution authorizing submission of a joint grant
application to the Montana CDBG Economic Development Program. The motion was
seconded.
Wheeler answered questions.
Hafferman said he is concerned with this method of working with businesses; they should all be on
equal footing whether they've been here for a while or whether they are new to Kalispell. He stated
taxpayers were obligated by nearly $900,000 to help Hilton Carden Inn, yet the other new hotels
being built in Hutton Ranch and near Lowe's did not ask for any taxpayer money. Hafferman said
handouts do not determine the success or failure of a business, they are bonuses. He said to date,
taxpayers have already given TeleTech approximately $370,000 to train their employees, plus other
benefits. He questioned why taxpayers should train employees of any business.
Kluesner noted the grant is necessary to train an additional 80 employees that TeleTech plans on
hiring in order to service a large contract they have secured. He said TeleTech took on that obligation
when they bid on the contract and are obligated to provide the services necessary to service the
contract. Kluesner said he questions whether this is an investment or assistance and makes him
wonder what the financial status of TeleTech is.
Mayor Kennedy clarified that these funds are federal dollars available in the State of Montana and if
this community doesn't apply for the funds, other communities will. She said one of the
commitments made to TeleTech when they came to Kalispell was that the City would do everything
it could to help garner training dollars.
Olson commented we should not forget that Stream pulled out of Kalispell and TeleTech picked up
the obligation with 450 employees. He said we have one of the largest employers in the area asking
for federal dollars that everybody has the right to go after.
Larson remarked that in an ideal world everyone could turn down grants, but this isn't an ideal world
and as long as they meet the criteria TeleTech should be allowed to apply for the grant.
The motion carried upon roll call vote with Atkinson, Kenyon, Kluesner, Larson, Olson,
Saverud, and Mayor Kennedy voting in favor, Hafferman voting against, and Gabriel absent.
GI2. ORDINANCE 1604 -- PLANNED UNIT DEVELOPMENT AGREEMENT
AMENDMENT -- HILTON GARDEN INN — 2ND READING
A request has been made for the Council to amend the language in the Hilton PUD agreement
addressing casino signage. ordinance 1604 passed on a six -to -one vote March 19.
Kalispell City Council Minutes
April 2, 2007
Page 4
Larson moved second reading of Ordinance 1604, an ordinance to amend Ordinance 1574,
which amended Section 27.02.010, official Zoning Map, City of Kalispell Zoning Ordinance,
(Ordinance No.1460), by zoning certain real property more particularly described as Tract 1
of Certificate of Survey No.17045, a tract of land, situated, lying, and being in the north half of
the Northwest Quarter of Section 20, Township 28 North, Range 21 west, P.M.M., Flathead
County, Montana (previously zoned City P-1, Public) to city B-2 (General Business), with a
planned unit development overlay in accordance with the Kalispell Growth Policy 2020, and to
provide an effective date. The motion was seconded.
Kenyon commented he voted against this at the first reading because he feels the sign does advertise
gambling, despite that the sign doesn't actually have "casino" in the name. In fact, he said there is
already a large billboard near the hospital advertising the Hilton with the Silver Canyon as a casino.
Atkinson agreed.
The motion carried upon roll call vote with Hafferman, Kluesner, Larson, Olson, Saverud, and
Mayor Kennedy voting in favor, Atkinson and Kenyon voting against, and Gabriel absent.
G13. CONDITIONAL USE PERMIT — FLATHEAD ATTENTION HOME
This is a request by Lance Isaak for a Conditional Use Permit to locate a shelter care facility for
youths at the corner of Sth Avenue East North and East Oregon Street.
Larson moved Council approve the conditional use permit for the Flathead Attention Home.
The motion was seconded.
Johnson gave a staff report and answered questions.
Hafferman stated his only concern is the parking, which was somewhat addressed with the home's
informal agreement with Shining Mountain Church. He said in order to assure that additional parking
is available he feels a formal agreement is required.
Hafferman moved that Condition #6 be added to the permit stating, "A signed and recorded
document between the property owners of this proposal and the owners of the Shining
Mountain Church agreeing to allow up to ten cars to park in the church's parking lot during
Monday through Friday from 5:00 a.m, to 5:00 p.m. with exceptions necessitated by uses
needed for Shining Mountain Church activities". The motion was seconded.
Harball noted that per State law, additional conditions cannot be added to a shelter care facility that
would not normally be added to residences in general, especially if it could jeopardize the project.
Hafferman said the parking is not related to residential use and he doesn't feel the Council is
violating any State laws with the motion.
Kalispell City Council Minutes
April 2, 2007
Page 5
Jentz reiterated a group home is a protected class. He said Kalispell actually challenged that several
years ago in the courts and Kalispell lost.
The amendment failed upon vote with Hafferman and Kenyon voting in favor, Atkinson,
K.luesner, Larson, Olson, Saverud, and Mayor Kennedy voting against, and Gabriel absent.
There was no further discussion.
The motion carried unanimously upon vote with Gabriel absent.
G14. PRESENTATION — ANNEXATION, INITIAL ZONING AND PRELIMINARY
PLAT REQUEST --- COTTAGE GARDENS
Apex 1, LLC is requesting annexation, zoning, and preliminary plat approval for a 30-lot subdivision
on approximately 11 acres located on the north side of Three Mile Drive.
Jentz gave a staff report and answered questions. He explained that the applicants had applied for a
variance in order to use two rear lots, but the Planning Board denied their request. He said the
applicants are in the process of contacting the Montana Department of Transportation to move the
access in order to use those lots, but if they can't, the two rear lots will not be used and only 28 lots
will be built.
G15. TRESOLUTION 5189 — ANNEXATION -- COTTAGE GARDENS
The property proposed for annexation is located near the intersection of Meadows Lane and Three
Mile Drive.
Kenyon moved Resolution 5159, a resolution to provide for the alteration of the boundaries of
the City of Kalispell by including therein as an annexation certain real property, more
particularly described as Assessors Tract IAC and further described as Tract 1 of Certificate
of Survey 9981, and as more particularly described on Exhibit "A" in Section 2, Township 28
North, Range 22 west, P.M.M., Flathead County, Montana, to be known as Cottage Gardens
Addition No. 390; to zone said property in accordance with the Kalispell zoning ordinance,
and to declare an effective date. The motion was seconded.
There was no discussion.
The motion carried unanimously upon roll call vote with Gabriel absent.
GI6. ORDINANCE 1605 _ INITIAL ZONING — COTTAGE GARDENS
Apex 1 is requesting a zoning designation of R-3, Urban Single Family Residential, on the property
listed above.
Kalispell City Council Minutes
Apr i 12, 2007
Page 6
Atkinson moved first reading of Ordinance 1605, an ordinance to amend Section 27.02.010,
official zoning map, City of Kalispell zoning ordinance, (Ordinance No. 1460), by zoning
certain real property, more particularly described as Assessors Tract IAC and further
described as Tract 1 of Certificate of Survey 9981, and as more particularly described on
Exhibit "A." in Section 2, Township 28 North, Range 22 West, P.M.M., Flathead County,
Montana (previously zoned County AG-80, Agricultural) to City R-3 (Urban 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 with Gabriel absent.
G17. RESOLUTION 5190 -- PRELIMINARY PLAT — COTTAGE GARDENS
Apex 1 is also requesting preliminary plat approval to create 30 lots on the property listed above.
Kenyon moved Resolution 5190, a resolution conditionally approving the preliminary plat of
Cottage Gardens Subdivision, more particularly described as Tract IAC and further described
as Tract 1. of Certificate of Survey 9981, in Section 2, Township 28 North, Range 22 west,
P.M.M., Flathead county, Montana. The motion was seconded.
There was no discussion.
The motion carried unanimously upon roll call vote with Gabriel absent.
G18. RESOLUTION 5191 -w CONSTRUCTION AGREEMENT -- MONTANA
DEPARTMENT OF TRANSPORTATION
This resolution approves a construction agreement between the City of Kalispell and the Montana
Department of Transportation for the development of Reserve Loop.
Atkinson moved Resolution 519.1, a resolution authorizing the Mayor of Kalispell to execute
the construction agreement of Federal Aid Project No. MT 15(71) with the State of Montana,
acting by and through the Department of Transportation. The motion was seconded.
Bentz gave a staff report explaining that this is a standard contract, however, it includes a provision
that the City will be participating with the State to extend water and sewer utilities at the Reserve and
Stillwater intersection to anticipate future development.
Hansz answered questions.
There was no further discussion.
The motion carried unanimously upon roll call vote with Gabriel absent.
Kalispell City Council Minutes
April 2, 2007
Page 7
H. MAYOR/COUNCIL/CITY MANAGER'S REPORTS (No Action)
Kenyon announced he will be absent for the next two meetings.
L ADJOURN
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The meeting was adjourned at 8:35 p.m.
ATTEST:
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Theresa White
City Clerk
Approved April 16, 2007
Pamela B. Kenne6y
Mayor
Kalispell City Council Minutes
April 2, 2007
Page 8
Tyree Rivers Bank of Montana is independently owned and
locally operated and is a vital contributor of time, talent, and
resources to the communities we serve. We are dedicated to
enhancing our shareholders value, and committed to making our
work environment enjoyable, educational, and. f Lilf filling.
City of Kalispell
Mayor Pars Kennedy
Kalispell City Council Members
P. 0. Box 1997
Kalispell, MT. 59901
Re: Final Report: Impact Fees for the Transportation System
Dear Mayor Pam Kennedy and Council Members
Upon review of the final report detailing the findings, conclusions and recommendation by HDR
Engineering Inc. (DBAIHDR/EES) for the determination of cost based impact fees for the City of
Kalispell Transportation System; Three Rivers Bank of Montana is considering a complete
remodel and a new addition of 7,432 square feet to its bank on East Idaho. The impact fee unit
for banks that the City is considering is $19,202.00 per 1,000 new sq. ft. The impact fees which
Kalispell's City Council is considering to approve will cost the bank $142,709. Additionally the
bank will pay for building permits, hook up fees and future increases in real property taxes. The
report states and I quote "[one of driving forces behind establishing cost -base impact fees is that
Growth pays for Growth". Yes, Three Rivers Bank will hopefully grow after the remodel and
increased building size. The question is will the public traffic use to the bank increase
substantially?
dal-vo hank: 233 fl. Ida%o • P 0. Pox 7250 - Kalispell, MT 59904-0250 - 406-755-4271, -tax 406-257--0219 - 1-800-772 -7968
�Iet•idiaxx Batik: 552 N, Meridian Road - Kalispell, NIT 59901 - 406-755-5432 - Fax 406-257-0212
MEMBER F.D.W.
\XZ A) ite. www.threeriversbankanc)ntana.com.
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LEW ER
Today Three Rivers Bank has two banks located in the city, with a total building square footage
of 21,000 sq. ft. The vehicle traffic for the year of 2006 was 316 vehicle visits per day, which
include 70 to and from visits by bank's own employees. The 2005 daily traffic was 373 vehicle
visits per day. The management of the bank attributes this drop in vehicle visits to increased
customer usage of online banking. Bank management predicts the vehicle visits to the bank will
continue to decrease, as the public becomes more educated with online banking. The numbers
were gathered from the number of teller transactions, loans made by the bank, ATM transactions
and employees driving to and from the bank. I would like to paint out both banks are only open
from 7:30 a.m. to 6:00 p.m. Monday through Friday.
In comparison the impact fee schedule for a restaurant operating 7 days a week, at longer hours
per day is $3,423 per 1,000 sq. ft. This is $15,779 less per 1,000 sq. ft. than a banks impact fee.
This does not make any sense. A business operating 7 days a week will be charged less of an
impact fee than a business in operation 5 days a week. Which of these businesses would have a
greater impact on traffic?
I agree the city of Kalispell needs to charge impact fees on businesses to enhance our City,
however, the impact fees need to be equitable and fair to all businesses. There is no reason to
charge one business higher impact fees than another business, when each business provides tax
revenue, employment, longevity and real property improvements to the City we live in.
If the City council approves the Impact Fee Structure recommended by HDRIEES, does the city
of Kalispell really want businesses to stay in Kalispell? In 1906, the Kalispell city council
approved the Railroad to move to Stump Town aka Whitefish. That decision has been one of the
gravest errors in judgement made by a City Council as it allowed business to leave Kalispell. By
approving the recommended Impact Fee Structure, the city of Kalispell has an opportunity to lose
current and future business. Hopefully history will not repeat itself again.
Bast of fuck an your pending decision. I apologize, as I'm unable to attend the meeting on 04-02-
07 due to a pending medical appointment.
Sincerely yours,
John R. l(ing,
President/CEO
/kbh
40
pblimscell
March 301, 2007
Area Chamber of Commerce
The Honorable Members of Kalispell City Council
City of Kalispell
312 First Avenue Fast
Kalispell, MT 59901
RE: Transportation Impact Fee Comments: April 2, 2007 Pubic Hearing
Dear Members of City Council:
The Kalispell Chamber of Commerce has long recognized the important role of good
planning and sound infrastructure to business health and community prosperity. Yet, the
unprecedented population growth of the last few years and the surge in residential, retail,
and commercial development, cause us to raise the priority of these issues to a new level.
It is with this in mind that the Board has established four main areas of focus to guide our
policies and actions on planning and infrastructure development:
• Providing predictability in the planning, zoning, and development process
• Directing growth to areas where cost effective public services can be provided
• Aligning the payment for growth with the cost of growth
• Creating community prosperity while preserving Montana values and natural
resources
The proposed transportation impact fees affect all four of these principles, but most
directly affects the goal of aligning the payment of growth with the cost of growth. As
you and the Impact Fee Advisory Committee continue your analysis and evaluation of
this proposal, l urge you to consider these additional factors:
• The amount of the proposed fees is significant. Had these fees been in place for
the theater and bank projects at Hutton Ranch, it would have added approximately
$26 per square foot to their construction costs -- nearly $1 million for the theater
and over $ l 00,000 for the bank. Does the proposed rate structure over -estimate
road costs and the number of trips generated by these uses?
■ It has been reported that a property owner might appeal the formula by
conducting their own traffic study. The cost of these studies is also significant
and can more easily be justified when they are spread out over a large project.
15 Depot Park ■ Kalispell, MT S9901
(406) 758-2800 w fax (406) 7S8-2805 * Email: info@katispelichomber.com * www.katispellchomber.com
This leaves the smaller developer at a disadvantage and with limited options.
How can their needs be addressed?
How accurately can a national trip generation model be applied to a rural area like
Kalispell?
The City and the Kalispell Chamber of Commerce share the goal that "growth
pays for growth". Impact fees are one of the tools that can help make that happen.
But, are we fully utilizing other tools that might be available. Can the formula for
the distribution of federal highway funds through the Montana Department of
Transportation be reallocated to better address the urban highway system? Can
the existing authority for a local option gas tax be considered? Inasmuch as
tourism comprises a significant portion of local traffic, could a local option tax or
a local option resort tax, if adopted, offset or contribute to transportation
infrastructure development?
Through good planning and the prudent extension of City sewer and grater
services, the Council has been successful in directing growth to areas where cost
effective public services can be provided. Will the implementation of these fees
reverse that trend and once again drive residential and commercial development
into unincorporated areas contributing to inefficiency, sprawl, and lour density
development.
The Kalispell Chamber of Commerce appreciates the opportunity to contribute our
comments for your consideration. Because of the importance of our transportation
system, we look forward to continuing our work with you to find the solutions that best
contribute to the prosperity of Kalispell.
Sinc ely,
Jo me finer, president
K ispell Chamber of Commerce
N