HomeMy WebLinkAboutCouncil Workshop Minutes 05.18.2021MINUTES
CITY OF LAUREL
CITY COUNCIL WORKSHOP
TUESDAY, MAY 18, 2021
A Council Workshop was held in Council Chambers and called to order by Mayor Tom Nelson at
6:30 p.m. on May 18, 2021.
COUNCIL MEMBERS PRESENT:
_x Emelie Eaton
_x Heidi Sparks
x Bruce McGee
x Richard Herr
x Scot Stokes
_ Iry Wilke
x Richard Klose
Don Nelson
OTHERS PRESENT: Kurt Markegard, Public Works Director
Matt Smith, KLJ
Nick Altonaga, Planning Director
Bethany Langve, Clerk/Treasurer
Public Input:
Lacy Thompson, 1215 12th Street Circle, stated that she is interested in proposing pickleball
courts in Laurel. Pickleball is the fastest-growing sports across the nation, and she would like to
bring it to our community. She talked with the Park Board, and they seemed to have some
interest. She would work on grants and fundraising, but before moving forward wanted an ok
from Council that they would consider her request. She has a meeting with Jon Rutt to get
donations set up with the Laurel Community Foundation. The courts look like a tennis court but
smaller. They do have a 6 -to -10 -foot fence around them. She would want to either do two or four
courts, depending on funding.
Mayor Nelson stated she would need to follow up with Park Board.
General Items
1. Northwestern Energy Power Plant Update
Lisa Perry, Community Relations Manager with Northwestern Energy, gave a brief presentation
on the attached press release. With her was also Jim Williams, Director of Thermal and Wind
Generation, and Debbie Singer, Manager of Key Accounts, to answer any questions that Council
may have.
It was questioned if the acquisition of 33 acres a partnership between NWE and CHS. It was
clarified that they had purchased the land from CHS. It was further questioned how they did not
have to speak to City/County Planning to propose this project. It was clarified that they would
need to clean up the property's zoning, but they have to own the property before they can clear
up the zoning issues.
It was questioned if they would use City utilities like water and sewer. It was clarified that is
NWE's intent. They will engage the City in that conversation as they move forward.
Executive Review
2. Resolution - Resolution Authorizing The Mayor And City Clerk To Utilize Available
Revenue In The City's Water Fund To Prepay And Retire DNRC Loan WRF-09138.
Bethany Langve, Clerk/Treasurer, stated that in reviewing the current status of the Water Fund,
she spoke with the Utilities Plant Superintendent about retiring some of Water's loans. She also
spoke with the Public Works Director, who agreed it was a good idea to retire some loans. The
City is considering expanding out to the new interchange. A new school will be built eventually.
There are lots of possibilities. This loan was taken out in 2009. The original amount of the loan
was $500k. It was for improving two filters and included an underdrain. The interest rate on this
loan is 2.5%, and by retiring it now, the City will save approximately $26,051.85 in interest and
administration feeds.
3. Resolution - Resolution Authorizing The Mayor And City Clerk To Utilize Available
Revenue In The City's Water Fund To Prepay And Retire DNRC Loan WRF-03048R.
Bethany Langve, Clerk/Treasurer, stated this loan was from 2003. The original amount of the
loan was $2.5 million. It is the loan for the 2003 intake. It has a 4% interest rate. In 2013 it
dropped to a 2.25% interest rate, which is a savings of $9,337.57. There is $333,238.13 left on
this loan. After retiring this loan, Water has two debt serves left—one for the new intake and one
for the SED basins.
4. Resolution - Resolution Authorizing The Mayor And City Clerk To Utilize Available
Revenue In The City's Sewer Fund To Prepay And Retire DNRC Loan SRF -10234.
Bethany Langve, Clerk/Treasurer, stated the Sewer Fund is in the same position as the Water
Fund. She would like to get some debts off the books. In 2010 the Sewer Fund took a loan for
$359,300 with a.75% interest rate. To pay this loan off early will save the City $6072.25. This
loan was taken to upgrade lift stations. The loan only had $167,546.23 remaining.
5. Resolution - A Resolution Approving The Agreement Between The City Of Laurel And
The Laurel Airport Authority, Said Agreement Relating To Fire Protection
Mayor Nelson stated that the Fire Chief was unable to attend tonight's meeting. This agreement
is the same as in past years. There is a 2% increase to the contract this year.
6. Resolution - A Resolution Approving Agreements Between The City Of Laurel And
Laurel Fire District No. 8 Relating To Fire Protection.
As explained under the previous agenda item. This contract has a 3% increase.
7. Resolution - A Resolution Approving Agreements Between The City Of Laurel And
Laurel Fire District No. 5, Said Agreements Relating To Fire Protection
As explained under the previous agenda item. This contract has a 3% increase.
Resolution - A Resolution Approving An Agreement Between The City Of Laurel And
Yellowstone Boys And Girls Ranch, Relating To Fire Protection.
As explained under the previous agenda item. This contract has a 2% increase.
9. Resolution - A Resolution Approving Agreements Between The City Of Laurel And
The Laurel Urban Fire Service Area ("LUFSA") Said Agreements Relating To Fire
Protection
As explained under the previous agenda item. This contract has a 3% increase.
Fire District No. 7 has no board to approve the assessment. Like last year the County will
eventually release the funds they have collected. Chief Peters has tried to assist in filling that
board, but they still do not have any members.
10. Resolution - Small Service Contract True North Contracting.
Mayor Nelson stated this small service contract should have come to Council but instead went to
the Budget/Finance Committee.
Kurt Markegard, Public Works Director, stated that this small service contract repairs the street
on West Avenue and S. 4`h Street. A hydrant was replaced and needed to replace the curb and
gutter. There were many complaints about this area being closed. The hydrant repair restored fire
protection to the area.
11. Resolution - 5th Avenue Waterline Re -Route Project
Kurt Markegard, Public Works Director, stated a mainline runs up 5` Avenue to the old and new
reservoirs. This water main goes under some homes. It is a 12 -inch concrete line. Approximately
8 to 10 years ago, homeowners petitioned the Public Works Director to have the line removed.
First, however, needed the ability to shut down the line in case of a break. So they did cut in a
valve.
Ryan Welsh, KLJ, stated there would be a connection on 11`h Street and 5`h Avenue, jogging over
to 0 Avenue and then jogging back over. There is a 12 -inch line coming down from Valley
Drive that will be connected as well. There were six bidders on the project. The bids ranged from
$900k to $1.4 million. The engineer's estimate was $1.3 million. Western Municipal
Construction was the lowest bidder. They had a miscalculation in their bid that was 30 dollars in
the City's favor. Their bid was $902k. There will be a public forum to discuss how this project
will move forward. There is a cast iron line that runs up Valley Drive. That line will be able to
replace once this work is complete. The residents won't notice any issues during this
replacement. The goal is to build a new reservoir in the near future. The streets in this area will
be overlayed. The County would like to have their section of this project overlayed as well. Their
cost is $27k.
It was questioned when was the anticipated start date. It was clarified mid to late June.
It was questioned if they would be widening that section of W. 12th street. It was clarified that it
would be an issue widening the road due to the ditch being there. There are ongoing discussions.
One cost-saving measure they choose for this project was to place the pipe in the dirt north of the
existing road between 4"' Avenue and Valley Drive. There are 60 feet of right of way there, and
we don't want to destroy was is already there. They are adding fire hydrants as well. The fire
hydrants are designed behind the future curb and gutter.
It was questioned if the abandoned line will be capped or filled with concrete. It was clarified
that the ends would be capped. It was further questioned if they were worried about the pipe
collapsing in the future. It was clarified that they do not anticipate the line to collapse.
12. Resolution - MOU - 5th Avenue Reroute and 2021 Pavement Maintenance with
Yellowstone County.
The 2021 Pavement Maintenance program identified some streets with portions in County and
portions in City that needed chip and crack sealing. Also, the County portion of the 5t" Avenue
Reroute Project. Spoke with the County about participating in this year's project. The County
Commissioners signed off on the MOU this morning.
13. Resolution - Yellowstone River Water Crossing Project
Kurt Markegard, Public Works Director, stated this waterline goes across the Yellowstone River
Bridget. About ten years ago, the electric line that keeps the line from freezing. It froze and
broke. At the time, they couldn't find funds to fix the line at that time. The Park Board and the
Mayor wanted to get the waterline replaced. There were two bidders, COP Construction and
Western Municipal Construction. COP Construction came in at $281k. COP Construction put the
bridge in for the State; at that time, the City paid for the waterline to be installed. When the water
line froze, they pulled a 3 -inch pipe through the 4 -inch pipe. There is not much water pressure in
Riverside Park. The fire hydrant barely spills water year-round.
Ryan Welsh, KLJ, stated there is a lot of expansion and contraction in this line. It will be a 4 -
inch insulated line. Because of the insulation, it will look approximately 8 inches in diameter.
There will be 4 or 5 contraction joints as there can be 60 inches of contraction; the water in the
line will keep it stable. There will be a heating tracer wire to keep the temps from freezing as
well. It is expected to take about 30 -days to complete the project. Getting the pipe will be the
longest portion of the project as the pipe needs to be insulated after it is ordered because there
two vendors. One vendor makes the pipe, and the second insulate the pipe.
It was questioned what the funding source for this project was. It was clarified they initially
wanted to use the Exxon dollars. There was the option to use Park funding but would have left a
$140k shortfall. So instead, they will use Water Funds for this project and use the Park Funds for
other projects. It is essential to have water in the campground for fire protection.
14. Resolution - A Resolution Approving Amendment No. 1 To The Previously Approved
Task Order Authorizing Kadrmas, Lee & Jackson, Inc. To Provide Additional Services
For The City Of Laurel's H2s Remediation Improvements Project.
Kurt Markegard, Public Works Director, stated this task order addresses the sewer line from the
village lift station from going septic. Tried a pilot study, chemicals, etc. And.nothing has worked.
So they tried using ozone which seemed to start working. So they would like to put an Ozonator.
This amendment is to cover the additional fee increase. This has been a three-year process trying
to find something that will work. They would like to go to bid this summer. It would include a
manhole close to Main Street where they can put the sewer underground. Have been dealing with
these issues for 11 years.
Ryan Welsh, KLJ, stated we need to treat at the discharge point so the smell will go away. It is
creating sulfuric acid and eating up all of the electrical panels. Hoping this will convert the H2S
to something less corrosive. Because this is a forced main, there is no air in the line. Gravity -fed
lines have air and keep things in check. The sewage in the forced main takes a considerable
amount of time to move down the pipe. It may only move a few feet each time the lift station
turns on.
15. Resolution - A Resolution Of The City Council Approving A Task Order Between The
City Of Laurel And KLJ Engineering Inc. To Authorize Service For The City Capital
Improvements Plan (CIP).
Mayor Nelson stated he was aware of two past CIP's. One from 2003 and one from 2008. Both
went on a shelf and sat. This is a plan for the City. Cities need a CIP in order to apply for grants.
A few grants will be available in the next few years that the City could apply for. It is expected
to take approximately 90 days to complete. He wants a resolution that required Council to look at
the CIP each year.
Ryan Welsh, KLJ, stated earlier in tonight's meeting that there was a discussion about retiring
debts. Those debts corresponded with the same timeframes as the past City CIP's. Without a
current CIP, it can be challenging to obtain funding. It is similar to the Pacer Study that was done
on the streets. Each year the plan can be reviewed for any significant changes.
Mayor Nelson gave the example of the Park Master Plan. Because the City had a plan in place
and had shovel -ready projects, we were awarded most of the funds we had applied for.
16. Resolution - A Resolution Of The City Council Authorizing The Mayor To Sign A
Contract With Canyon Electric For Electrical Work For The City's Building Commonly
Known As "Jaycee Hall" Located In Riverside Park.
Kurt Markegard, Public Works Director, stated this small service contract originated out of Park
Board. They wanted to get the building, commonly known as Jaycee Hall, open for rentals.
When the Jaycees moved out, an organization wanted to rent out the main hall and one of the
rooms. He had gone down to inspect the building and found some major electrical issues. There
was no emergency lighting or exit signs. The light switches were not located at the correct
height. There was also electrical wire exposed.
The City received two quotes. Contacted Canyon Electric to get a quote, who came back with a
quote for $13,736. Ace Electric came back with an open-ended quote that was significantly
higher. The building has been gone through thoroughly. This small service contract will be paid
out of the Exxon funds. Once the building is brought up to code, it can be rented out. Park Board
has worked hard to discuss renting out the space, the rules, regulations, etc. Unfortunately, that
work came to a halt until the electrical issues can be fixed.
Mayor Nelson stated one thing that brings people to a community is the amenities the
community offers. If the City does not grow, it will become stagnant.
The City has spent very little on that building while the Jaycees rented it. They did maintain the
building well. They did the best they could. He stated he would also like to see the American
Legion building restored to be rented out. The YMCA has wanted to do river floating and rent a
space for the kids.
It was stated that in the Master Park Plan, there were champions for the buildings listed. It was
questioned whatever happened to that. It was further stated that Council would like to see this
move forward.
17. Resolution - LURA Grant — Atkins
Nick Altonaga, Planning Director, stated the LURA approved a fagade grant totaling $9k.
Anything over $5k must come to Council. This is a replacement for part of their fagade that fell
in a windstorm. They also did some sidewalk repairs. The applicant has previously applied for
grants.
Council stated they love to see the improvements that have gone into this building. It was
questioned why the values are listed in red on the spreadsheet. It was clarified that the sheet was
built a while ago and indicated the amount needs to be reviewed. The Planner did check LURA's
budget before sending over this grant.
Council Issues
Other Items
Review of Draft Council Agendas
18. Draft Council Agenda of May 25, 2021.
Attendance at Upcoming Council Meeting
Announcements
A Council Member stated they received a call from Louis Metzger at 601 W. 8th Street. He stated
he was putting in a sidewalk in his backyard. His cable line was buried 1.5 inches into the ground
and was severed. This Council Member stated they had run into this issue themselves and asked
why those cables are buried so shallowly—asked if Council could discuss at the next Workshop.
The council workshop adjourned at 8:01 p.m.
Respectfully subinitted,
Brittney Moorman
Administrative Assistant
NOTE: This meeting is open to the public. This meeting is for information and discussion of the Council for
the listed workshop agenda items.
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Delivering a, Bright Future
NorthWestern Energy enters contracts for 325 megawatts of
dispatchable capacity resources to serve Montana customers
Butte, Mont. — April 20, 2021 Norffi`VYestern EnerqV has entered into multiple contracts for projects to acquire 325 megawatts
of dispatchable capacity resources: procurement and GOIlStrUCtiOn agreentents for a 175 megawatt natural gas plant: a pending
agreement to purchase capacity frorn a 50 rnega,,,vz-iIt battery storage projecl� and a power purchase agreement for 100
megawatts ofpredominantly hydroe|eothoresources.
The contracts were entered into. after NorthWestern Energy completed its conipetitive solicitation process ror long-term capacity
resources issued in january 2020,
This will reduce NorthkNestern Energy's capacity deficit, decrease risk associated with market volatility and potential lack of
avaUabiUty,andprovideinoreusedna|ksbiUfy'foxourK0ontonacuStomem,TheoddNona|oapacitykzproduoeenergyovU1addnaam
more than half'of NorthkAlestern Energv's deficit in its supply portiolio serving Montana, The deficit isbecoming more critical us
some regional coal plants and other capacity resources are being StILIt down, compromising reliability during extreme weather
conditions, including multi -day events. when energy demandishigh.
No/UhWestemEnergy's iodependent.third-party request for proposals evaluator, AionEnergy, received 18Oproposals
representing awide variety nftechnologies from 21 bidders, NorthVVeotemEnergyhesse1*�edthree oeyouomnhomthe
proposals submitted inresponse tothe company's request 'or proposals:
° NorthWestern Energy's Lauref Generating Station will he a new '175 rnegawatt, reciprocating internal combustion engine
(RiCEunUn).nu�na/gas p|antinLauneL&1pntana.
° PowerexCorp..asubsidiary o[BCHydro.has enh*redinto a five-year power purchaa*agreement with NorthVVesiern
Energy for '100 megawatts ofcapacity arid energy products originating p,redorninately from hydroelectric resources.
° Contract pending on an Energy Storage PnoJeectlhe1will be 50 megawatt battery storage system utilizing lithium -ion
teohno|ogy.
"This selection of diverse projects will provide critically needed flexible capacity Irorn a combination ol thermal and renewable
resources,"said NorthWestern Energy Vice President SuIpply and Montina Government Relations John Hines.
The selected resources provide dhecshyinnwnemhipand �mhno�g�in�udingowned and ma�e�basedresources and thelargest battery -storage project within Montana.
"This resource portlolto addresses a key portion of our immediate need for generation capacity while also allowing us to make
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90% by 2045," said NorthWestern Energy Chief Executive Officer Bob Rowe.
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Energy expects to SUbrnit ar! application for apprcval of the LaUrel Generating Station and the 20--yeacontract
cnr the pending Energy Storage Project to t1rie Montana Public Service Commission on or abot.it May 14 20211. We anticipate ,the
regulatory process to take approxiniately 9 moriths,
f he $250iiii1lion Laumel Generafing Station is expected to be available to serve customers by jan, 3, 210124,
For "fie `17_) rnea.awaft naturat gas-fired RICE near LaUrel, Caterpillar Povver Generattion Sysferns, t - C, a subsidiar-V of
Caterpillar, Inc. will supply tile ROCE units and Burns Mci-1,orinell Engineering Corlspany, Inc. was selected as the Erigineeri�ng,
Procurernent, arid Construction (EPS i coniraotofr. Burns & McDonnell has a solid reputation as a superior EPC contractor,
pafticularly for RICE facilities,
'-I-I-ie Cater R - - uni.ts are highly ly reliable and ell icientoJlh low emissions, The selected engines are Capable of rapid
ramping and multiple daily starts and sloi:)s. _,-I-fese units have"h- "exibility to provide power on-deniand, bpseioad power,
flexible capacity, and regulation services. These charact-ristics will facilitalle ffie integration of existing and new Interniittent
renewable energy resources inic, our portfOlio,
The 50 rnegawaft battery energy storage systiern, is expelcted to be available to serve NorlhVIVestern Energy's Montana
customers by the end of 2023.
"The energy storage proj-ect will provide 'he opportuinity, to store sorne excess energy frol-ii the grid to use when custorner
dernand is high," NorthVkfesi.ern, Eiiergy Director Long-l7e1',-n Resources Bleal-i La-Fave said. "Today, NorthWestern Energy most
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frequently has excess energy on the grid irorty `,�,Jnd resources. Now we will h1ave the opportunity to store a portion of that
excess energy to irnprove matching the gieneration with custorner dernand and higner market pricing."
he five-year 1,00 niegawatt power l)UrChase agreernenivvith Powerex, the rnarketing entity for BC Hydro, will provide our
custof
-ners wilh, capacity rnainly frorn the BC Flydro yMm sestarting in Jan, 1 2023" said LaFave. "Our Montana customers
require this capacity as soon as, it is avaiiable, This market product' can be delivered on Our existing transmission assets."
NorthVVestern Energy is still short oi tue calpacity resources needed to produce energy reliably at the times when Our Montana
custorners require it the most.
"The 2020 RFP process provided Eiji opportunity to see what projects and technology are available," said NorthWestern Energy
President and Chief 0,perating Officer Brian, Bird. "NorthVVeste'rn Energy's new Laurel Generating Station will be able to provide
on-dernand capacity for long durations, With that asset added to Our Montana portfolio, NorthWestlern Energy can consider
other, shorter duration capacity projects in future RFPs,"
"Developing a diverse pWfiolio of resources capable of producing the energy our Montana customers need any time they need
it is the responsible path forward as we all work together toward an affordable, reliable and cleaner energy future," said Rowe,
Follow Lis on Facebook or on Twitter (@NVVEinfo),
About Nortifflestern Energy (NYSE: 'NWE
NorthWestern provides ele ctricity and /or natural gas to approximately 743,000 cusionicrs in Montana, South Dakota, and
Nebraska, VVe have generated and distributed eleciricityin South Dakota and distributed natural gas in South Dakota and
Nebraska since 1923 arid have generated and and distributed natural gas in Montana since 2002. More
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information on NorthWestern is available on 'he comoanv's websle at tAjw,,iv,,riorthester neriei-gy.coiii.
investor Relations Contact: Media Contact:
Travis Meyer Jo Dee Black