Vote on 'doughnut' lawsuit is unanimous

The Whitefish City Council will formally request that Flathead County Judge Katherine Curtis delay a decision in the city's "doughnut" lawsuit against Flathead County while the city continues informal negotiations with the county commissioners.

The city sued the county after the county unilaterally rescinded the interlocal agreement that established the city's two-mile planning and zoning "doughnut" area.

Councilor Bill Kahle, who earlier represented the council in a one-on-one meeting with Flathead County commissioner Jim Dupont, said he didn't expect a 90-day delay in the lawsuit would solve the problem. The goal was to establish transparency, find common ground, and build trust and understanding, he said, but more people were needed to continue talks.

"It's an olive branch," he said.

Councilor Turner Askew agreed with Kahle that the city and the county must also get the approval of the third party to the lawsuit — residents of the "doughnut" area — in seeking a delay.

Whitefish attorney Sean Frampton represents Heiko and Elizabeth Arndt and Westridge Investments LLC, who filed for intervenor status in the lawsuit in April 2008.

Kalispell attorney Daniel Wilson represented the Northwest Montana Association of Realtors when it filed for intervenor status in January 2009, and Kalispell attorney and now mayor Tammi Fisher represented "doughnut" resident Anne Reno and commissioner Dupont in their application for intervenor status in February 2009.

"We can continue to talk with the county even if the third-party disagrees," Kahle said.

Councilor John Muhlfeld restated mayor Mike Jenson's point that the lawsuit was not about a fight between the city and the county but an attempt to establish a legal point about the durability of interlocal agreements. Jenson was absent.

Kahle disagreed. The fastest resolution is to work with the county, he said, noting that interlocal agreements work all over the state.

"This one eroded trust" because it provided for regulation without representation, he said.

Askew agreed, noting that the lawsuit "could go all the way to the U.S. Supreme Court."

Councilor Phil Mitchell said he had read Curtis' rulings and concluded that "interlocal agreements are not intended to last forever." He said he wanted a solution 'soon after the 90 days are up."

Saying he respects the council's "change in the guard," with its "fresh ideas," Muhlfeld voted with the rest in directing staff to send a letter to Curtis and Frampton requesting a 90-day delay.

City attorney John Phelps, who was absent from the council meeting, had provided possible language for a letter to Curtis and Frampton in a memo to the council. The council agreed to use the suggested language.

The council also unanimously appointed city manager Chuck Stearns and councilor Chris Hyatt to join the negotiation team with Kahle.