HomeMy WebLinkAboutCouncil Workshop Minutes 02.10.2009MINUTES
COUNCIL WORKSHOP
FEBRUARY 10, 2009 6:30 P.M.
COUNCIL CHAMBERS
A Council Workshop was held in the Council Chambers and called to order by Mayor Ken Olson at
6:30 p.m. on February 10, 2009.
COUNCIL MEMBERS PRESENT:
X Emelie Eaton
_x Kate Hart
_x Chuck Rodgers
x Alex Wilkins
_x Doug Poehls
_x Mark Mace
Chuck Dickerson
_x Norm Stamper
OTHERS PRESENT:
Sam Painter
Mary Embleton
Bill Sheridan
Kurt Markegard
James Caniglia
Rick Musson
Jan Faught
Public Input three-minute limit :
Citizens may address the Council regarding any item of City business not on the agenda. The duration for an individual
speaking under Public Input is limited to three minutes. While all comments are welcome, the Council will not take action
on any item not on the agenda.
Bill Kampfer, 119 East 5d' Street, stated that he attended the school board meeting last night. He
showed the school board four bags of garbage that he collected in Thomson Park. The superintendent
told Bill that he would address the student body regarding the issue.
Laurel Police Reserve Appointments:
• Justin Bickford, Byron Johnson, Tony Contreraz, Zachary Hurd, and Grant Morrison
Chief Musson introduced the five new police reserves. The appointments will be on the February 17`"
council agenda.
Mayor Olson thanked the police reserves for volunteering their time.
Craig Canfield and Dr. John Smith:
• Presentation regarding the new landing strip at the Airport
Craig Canfield, an engineer with Kadrmas, Lee and Jackson in Billings, has worked with the Laurel
Airport Authority for several years on the airport projects. About a year ago, he completed a planning
project at the Laurel Airport, which updated the airport layout plan and the master plan. The master
plan identifies improvements, capital needs, and some planning issues over a twenty-year period.
Two things that resulted from the planning work were to identify an approximate location for a new
crosswind runway at the airport and some recommendations to upgrade the approaches into the
airport.
The planning study showed the need to update the airport affected area around the airport. Currently,
the Laurel Municipal Code specifies the airport influence area, which protects the airspace around the
Council Workshop Minutes of February 10, 2009
airport two miles off the end of the runway and a mile on each side of the runway. It addresses
heights of towers, trees, terrains, structures, and things that could affect the airspace around the
airport. In 2005, the Montana Legislature updated the Montana Codes to get rid of the airport
influence area and adopt the airport affected area. The goal with the proposed regulation would be to
replace the airport influence area with the airport affected area. The intent is the same, but the
mechanics are a little different in the regulations. It defines a different area and is one that actually
makes more sense. The airport affected area regulation that the Airport Authority is advancing is
provided under MCA Title 67 Chapter 7. The primary purpose of the regulation would be to protect
the public health, the safety and general welfare of airport users and persons in the vicinity and around
the airport. They are trying to protect aircraft and pilots from obstructions that might be in the
airspace and to protect people on the ground that could be affected should certain obstructions be built
in the airspace around the airport.
Craig explained that the airport affected area is an oval shape surface around the airport. It extends
14,000 feet from the end of the runway in both directions and roughly the same distance on the sides
of the runway. It is a bigger area than the airport influence area, but it corresponds directly to federal
aviation regulations, which defines the airspace around an airport. The airport affected area is
adopting federal aviation regulation as the area it is trying to protect. The airport affected area will
also define compatible land uses within the airport affected area. The compatible land uses are
divided into three zones. The first zone is inside the fence of the airport, which is property the airport
actually owns and controls. The second zone is compatible land use underneath the approaches to the
runway, which are the trapezoidal areas off the ends of the runway. This gets specific on heights of
towers, structures, and terrain allowed underneath the approaches. If a tower was to penetrate the
approach surface, the airport affected area provides the mechanics for mitigating it or preventing it
from happening. The third zone is everything that is not under the approaches or inside the fence, but
outside and encompasses the rest of the airport affected area. Any type of residential use would be
acceptable, and public and commercial uses are generally acceptable. The airport affected area tries
to identify an obstruction to airspace or an airspace hazard before it actually happens. It is not the
intent to enact any zoning. The intent is to identify hazards to airspace before they occur. If hazards
occur, the regulations provide the Airport Authority with the mechanics and means to mitigate and
deal with them Montana Code specifically says that this will protect the Airport Authority and the
City of Laurel from potential claims from property owners within the airport affected area due to
normal airport operations.
Craig stated that the Airport Authority is really a municipal arm under the City of Laurel. His
understanding of the way it worked at other airports is that the Laurel Airport Authority has the ability
to adopt this regulation, enforce the regulation, and administer the regulation under Montana law.
They need to coordinate the adoption of the regulation with the City of Laurel and then take the
current airport influence ordinance off the books and replace it with the new regulation or have
nothing. Most of the Airport is outside the city limits of Laurel. It is his understanding that the City
of Laurel has the ability to regulate the airport because the Airport Authority works under the
umbrella of the City of Laurel. The regulation would be administered by the Laurel Airport
Authority, which would be the enforcement officer. Any permit requests for building would be dealt
with by the Airport Authority. If the Airport Authority denied a certain permit and the property
owner took the denial to the next level, it would go to an appeals board. Craig stated that the appeals
board should be made up of representatives from the Airport Authority, the City of Laurel, the city
planner, and Yellowstone County. The decision of the appeals board would probably be concurred by
the FAA regulations.
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Council Workshop Minutes of February 10, 2009
There was discussion regarding the area of the city's Growth Management Plan, distributing the
airport regulation information to permit applicants and in closing documents, and current and future
obstruction issues. Craig stated that the Laurel Airport Authority would provide the enforcement of
the regulations. It would be the Airport Authority's responsibility to resolve the airspace issues
around the airport. The Airport Authority would like the city planner to sit on the appeals board, but
it would be unreasonable to have the city try to evaluate whether something is an obstruction.
There was discussion regarding the effects on a future reservoir. Mayor Olson stated that the location
of the proposed reservoir is not in this immediate area. There was further discussion regarding
notification of the airport regulations through the DEQ, DNRC, and other agencies. Mayor Olson
stated that it should be the Airport Authority's obligation to ensure that the agencies required for
notification would be notified.
Dr. Smith, chairman of the Airport Authority, stated that, with the airport influence area, it was
handled through the Planning Board. He would like it to continue that the Planning Board would hold
the public meetings rather than the Airport Authority. It is very important and is required in the
airport's grant and in dealings with the State of Montana.
Craig stated that the regulation can be adopted by the Airport Authority, but the hardest part will be to
identify a problem before it occurs. If someone wants to build a tower, they would need to bring it
before the Airport Authority. That could be done in conjunction with the Planning Board so
everyone, not just the Airport Authority, would have a bit more ownership of the issue.
There was discussion regarding presenting the information to the Planning Board. James will set up
the appropriate time.
Dr. Smith stated that he thinks it should be done the way it was done before, and that is the way it was
when he was on the Planning Board. Dr. Smith distributed copies of a summary of the Laurel
Airport's 2007-2008 finances and information.
Planning:
• Presentation of proposed 2009 Inter-Local Agreement and 2009 Bylaws - Laurel/Yellowstone
County Consolidated Planning Board
James Caniglia stated that the 2008 version of the agreement and bylaws was distributed a few
months ago. The revised version has some minor changes. The main revision in the agreement is a
change in financing. Instead of a rotating mill levy, the county would give Laurel a set amount for
planning services every year and would include a yearly inflation adjustment. The current regulations
are from 1975, so an update is needed. James stated that after the council's recommendation, it will
be taken to the county commissioners and then back to the council again. The county commissioners
like direction from the city council before they take any action or form any opinions on things.
There will be further discussion at the February 240' council workshop. The Planning Board received
copies of the agreement and bylaws and will discuss it at the March 5t meeting.
• Resolution - Annex public right-of-way adjacent to RK Development
James stated that the city's annexation policy was changed to include wording to annex the right-of-
way. However, the wording was not included in the resolution of annexation for the TenderNest
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Council Workshop Minutes of February 10, 2009
retirement community that was recently approved. The amended resolution will include the right-of-
way in the annexation. The resolution will be on the February 17th council agenda.
Public Works D artment:
• Discussion - Italian Drain issues
Kurt Markegard has been approached by the landowner between Laurel Ford and Fitchner Chevrolet
requesting permission to move the ditch in order to make better use of the property and sell the
property to a developer for a retail store outlet. The question is regarding who has the authority to
grant permission to move the ditch, whether it is the council or the Italian Irrigation Company. The
city has documentation back to 1933 that it had a Laurel Drain and acquired some easements through
the railroad in order for the city to straighten out the natural drainage from 8th Avenue through town.
Kurt met with Kelly Brester, the president of the Italian Ditch Company, to discuss who owns the
ditch. They could not come to a consensus as to who actually owns the ditch through town, even
though they run irrigation water through there. The developer and property owner constantly call and
ask what to do. The process to find out who the legal owner is will be long. In 1981, Warren Frank,
who was the president of the Ditch Company, filed a water right claim with the DNRC Water Court
claiming the conveyance system and the irrigation rights to the state. In that, it identified property
that is south of the interstate as irrigation through this conveyance system, which leads Kurt to believe
that through the water court they have ownership of the conveyance system, but also the City of
Laurel because it drains the storm water into it. Kurt approached Kelly about the joint ownership to
find language that would allow the city to get permission with the Italian Ditch Company for this
landowner and developer to move the ditch. The city has an interest in it as storm water. The Ditch
Company has an interest in making sure their irrigation water gets to the fields that have been
historically irrigated for forty to sixty years. The developer would pay for the engineering, the
relocation and the required improvements. The 2007 Storm Water PER stipulated that the ditch from
Burger King to the interstate behind Laurel Ford needs to be heightened by 18 inches on each side of
the bank and widened a little in order to meet ten-year storm flows so that the water does not back up
and flood the property. The culverts underneath the interstate are not sufficient enough, so 18-inch
banks would allow some detention of the storm water backing up and it would not flood the
properties. Kurt thinks this is a good opportunity for the City of Laurel. If the council would allow a
resolution and a letter having the Ditch Company sign off and the city sign off on moving the ditch,
then the city could research records to figure out who actually owns the conveyance system through
the city. In order to give an answer to the landowner, if the city council and the Ditch Company could
give permission through a joint statement and resolution allowing them to move the ditch with the
stipulations that they redo the easement on the plat, meet the current 2007 Storm Water PER by Great
West Engineering, and pay to move the ditch, it would help the city and the landowner and would set
a tone of cooperation to work with the Ditch Company to figure this out. The Ditch Company is
willing to work with the city on this. However, they do not want to be responsible or sued if the ditch
got moved and something got flooded. Kurt stated that it would benefit the area between the ditch
and the interstate because it is not being maintained right now. If it is moved over to the fence, it
would create an area where the businesses would have to maintain it to the ditch.
Clerk/Treasurer:
• Resolution --- Intercap loan for urban pumper fire truck
Mary Embleton stated that the paperwork is finalized and ready to go. The city plans to borrow
$200,000 towards the truck. According to the documents, the interest rate is 4.25 percent, but that is
only good through February 15th. The interest rate is changed every year at this time, so there is no
guarantee on an Intercap loan. Mary has seen it hovering no higher than 5.25 percent. If the
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Council Workshop Minutes of February 10, 2009
resolution is adopted next week, the loan would close on February 276' and the funding for the fire
truck would be issued.
• Resolution - Budget amendment --- Water Fund, Water Plant Project
Mary stated that the water plant project came forward quickly and it was not included in the budget.
That is the purpose of the budget amendment. The construction of this phase of the water plant
project is a $940,000 increase in the expenditure. The revenue bonds show that the proceeds from the
loan are $690,000. The obligation for the reserve that is dedicated toward this project is $250,000.
Mary recommended approval of the budget amendment resolution, which will be on the February 17`h
council agenda.
• Resolution - Dorsey & Whitney, Bond Counsel Acknowledgement Letter
Mary stated that Dorsey & Whitney has been the city's bond counsel over the last several issues of
revenue bonds. The letter outlines the fact that they assisted in the $690,000 bond issue and shows
the breakdown of the Series A and B bonds. Dorsey & Whitney is issuing their bond opinion for a
total amount not to exceed $7,000. The resolution will be on the February 17`h council agenda.
Resolution - Setting up the inter-fund loan between TIFD and water and sewer for the storm
water project
Mary explained that this resolution sets up the inter-fund loan for the storm sewer project. The
figures show that there was not enough budgeted for the project. The cost was estimated at about
$1.26 million for the whole project, and the total costs are about $1.46 million. Mary recommended a
loan total of $1.4 million for the TIF District to pay back the water and sewer. To date, there is about
$125,000 cash from property tax revenue collections in the TIF District that is unobligated at this
time. When Mary crunched the numbers to deal with how much to borrow and how much would be
reasonable to pay back, $1.4 million was about the limit that should be obligated. Sixty percent came
from the water fund and 40 percent from the sewer fund. Mary recommended a ten-year loan and two
annual payments of $77,581.44 at a 2 percent interest rate. Two schedules were attached to the draft
resolution, showing 2 and 3 percent interest rates. Projected revenue estimates will be close to the
$250,000 that Mary initially predicted. If $250,000 is collected every year and $155,000 is paid out
in debt service, it leaves about $100,000 to work with every year. That means that about 62 percent is
dedicated to the debt service, which is not the best scenario. No one predicted that the costs would be
higher for the project. Mary stated that this is just the storm sewer project. The Sewer Fund paid the
costs that were directly related to the replacement of the sewer main, and the Water Fund paid the
additional costs for the fire hydrants.
Mayor Olson stated that MDT required the storm water project in order to protect their roads.
Currently, the City of Laurel does not have a storm water district. He feels hesitant regarding having
a TIFD with a 62 percent debt service. He stated that the formation of a storm water district needs to
be considered in order to allow the use of TIFD funds for other projects in this area.
Chief Administrative Officer:
• Resolution - Maintenance Shop Superintendent job description
Bill Sheridan stated that the resolution creates the job description, but it does not mean that the
position will be filled. The resolution and job description will be on the February 17`h council agenda.
• Ordinance - Judge's salary
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Council Workshop Minutes of February 10, 2009
Bill stated that the ordinance increasing in the judge's salary would be on the February 17th council
agenda.
Executive review:
• Letter to Governor Schweitzer regarding adding the Eighth Avenue Project to the Economic
Stimulus Package list
Bill stated that a letter was written to Senator Baucus in hopes that he would see the 8th Avenue
project as an important and necessary improvement. The city wanted to get this to Mr. Baucus, who
seems to have some interest and strength in providing for the funding for these kinds of projects in the
stimulus package. Bill has tried to make contact with Governor Schweitzer's office and will continue
to do so.
Mayor Olson stated that the letter to the governor is being prepared. He spoke regarding the stimulus
package. The 8th Avenue project is getting considerable priority for its completion and its lack of
funding. Mayor Olson stated that it is probably the most shovel-ready project Laurel has that does not
have funding. Some easements are a consideration, but otherwise it is ready, which is what is needed
for the stimulus package.
• Discussion - Policing and patrolling parks and enforcement policy
Mayor Olson stated that staffing is always an issue for policing and patrolling parks.
Chief Musson explained that staffing is an issue and policing the park is not the department's highest
priority. The police department is aware of the issues at Thomson Park and tries to address them
when possible. Surveillance cameras, which have been used sporadically in the past, would provide
protection of the city's grounds and property and safety of citizens.
There was discussion regarding the use of community service workers to cleanup the park. Finding
supervisors makes it difficult, but it is a possibility that should be considered.
• Appointments:
o Big Sky EDA Board, Ex-Officio Member: Alex Wilkins
The reappointment will be on the February 17th council agenda.
o Laurel Urban Renewal Agency: Advisory Members
Mayor Olson asked that names be submitted for the advisory members.
Other items:
Mayor Olson stated that the city has submitted a letter of intent to annex Riverside Park to the
Planning Board.
Kurt stated that filter replacement is being done at the Water Treatment Plant. It was last done in
1978. Kurt suggested that the Public Works Committee and the council tour the facility to view the
project. The filter media has been removed, the underdrain system has been removed, and the
contractor is prepping to install the new underdrain system Both systems will be completed by
March 31 ". The tour was scheduled for Tuesday, February 24th, at 5:30 p.m.
Kurt explained Change Order No. 1 for the water project. The change order is necessary in order to
rehabilitate the surface wash agitators in each of the filters. The change order includes the material
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Council Workshop Minutes of February 10, 2009
and labor necessary to replace all of the nozzles, the swivels, and vertical pipes in each agitator. The
resolution will be on the February 17`x' council agenda.
Mayor Olson stated that he will ask staff to prepare a moratorium for the council's consideration. The
city has recently received requests for the opportunity to resell water. With review of the draft water
rate study, staff has determined that the resale of water has not been addressed. Mayor Olson would
like staff to prepare a moratorium for council's consideration to provide time to develop a process and
standard for the resale of water. This will be presented at the next council workshop.
Mayor Olson stated that an incident involving an ambulance attendant and a fireman is still under
investigation.
Doug Poehls recently contacted Kurt Markegard about insulation and sheeting on the road by Asphalt
Supply. Gary Colley and Chris Rosenberg gave Doug a copy of the letter sent to Montana Rail Link
giving thirty days to address the issue. Doug thanked staff for their work.
Emelie requested that a discussion regarding the speed limits on East Railroad to Shannon Road be
placed on the February 24`h council workshop agenda.
Review of draft council agenda for February_ 17, 2009:
There were no changes.
Attendance at the February 17, 2009 council meeting:
All present will attend.
Announcements:
Norm Stamper mentioned that the Boy Scouts have community service requirements. He will contact
the scout master regarding picking up litter in the parks as part of those requirements.
The council workshop adjourned at 8:05 p.m.
Respectfully submitted,
l?Q¢v
L-C.tL?
Cindy Allen
Council Secretary
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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a ,
Laurel Airport 07-08
Most recent Improvements
Broom attachment for loader snowplow $14,000
Funded by
FAA $12,600
Local 1,400
Master Plan Update AIP 10
FAA $93,000
Local 4,950
Automated. Unicorn AIP 11
FAA $85,500
State Grant 2,250
Local 2,250
Runway Maintenance and Signs AIP 12
FAA $94,240
Local 4,960
LPV Survey
FAA $113,525
Local 5,975
Cultural Resource Inventory
FAA $5,415
Local 285
Environmental Assessment AIP 13
FAA $166,250
Local 8,750
Total Value of the Airport $3,149,162.
Size of Airport: 255 acres -- longest runway 5200 feet
Number of based aircraft: 85 single engine, 3 multi-engine, 2 Helicopters
Amount of pavement: 1,650,000 sq. ft.
Number of operations on the Airport:
Northern Skies Aviation
3,086 Helicopter operations
5,340 Fixed Wing operations Mult- 925
Rocky Mountain College
500 Fixed Wing operations
Others
7,000 Fixed Wing operations
Number of businesses at the Airport: 7
Number of Full-time and Part-time Employees at the Airport: 28
Approximate Payroll: $547,550.
Products made at the Airport: $553,000
2 24/7 fuel systems Gallons sold: NS 80,914. SOME 23,700
Total sold 104,614
_ A a
Northern Skies Aviation 80 total students, 24 Fixed Wing students
56 Helicopter students
Private Hangars on the Airport:
22 Large
1 Multi-unit (10)
1 Multi-unit (8)
1 Multi-unit (5)
6 Single-unit
1 Airport Support Building
Market Value of Hangars: $12,423,260
Taxable Value of Hangars: $ 41,480
Airport Funded by:
General Fund (City of Laurel) $25,310
Land Lease $26,523
Local Gas Tax $ 5,231
Fire Assessment $ 2,920
Farming $ 840
Airport Authority Owns:
1 Pilots Lounge
1 Equipment Storage Bldg.
1 Snow Plow (Truck Type)
Loader type snow plow
Broom Attachment
1 Large Mower 18ft
1 Small Tractor with mower A (new $17,487.)
Fuel Sales
Northern Skies 80,914. gals Tax 3,600.
SOME 23,700. gals Tax 1,185
Total 104,614 Tax $5,23I
a ?•
4.21 PM ?, Laurel Municipal Airport Authority
01,23109 Balance Sheet
Casa, Basis As of' January 23, 2009
Jan 23, 09
ASSETS
Current Assets
Checking/Savings.
Checking-Westarn Security 23,781.10
SAVINGS
DONATIONS 1,099.08 .
EQUIPMENT RESERVE 3,755.57
HANGER DEVELOPEMENT-GAS & EL... 5,281.48
PARK DEVELOPEMENT 8;000.00
RUNWAYITAXIWAY PAVEMNT MAINT 3,000.00
SAVINGS - Other 11,952.23
-
Total SAVINGS .. 31,088.36
,... SAVING&WS,
Crt of Data -12 MO 48,922.37
CrL of Dep. '- 39375 9MO 43,445.14 -
CrL. of Dep. - 39376 9MO 43.676.14
Total SAVINGS-CDS 136,043.65
Total Checking/Savings 190,913.11
Accounts. Receivable
Accounts Receivable -8.23
Total Accounts Receivable -8.23
Total Clrrrent-AssWs 190,904-88
Flied Assets
Building
Original Cost -12,211.00
Total; Building 12,211.00
Equipan®M ..... ..
Original Cost 233,463.00 ..
Equipment - Other 17,467.00
Total Equipment 250,950.00
Intangible .
Original east: 44,317.00
Total. Intangible 44,317.00
Land and Impreervvements
Depreciation. -805,418.00
...Original Cost- 3,954,580.00:.
Total Land and.lmprovements 3,149,162.00
Total. Fixed Assets. 3,456;640.00
TOTAL ASSETS 3,647,544.88
LIABILITIES & EQUITY
Liabilities
Long Term Liabilities
NIP 27,400.00
Total Long Term Liabilities 27,400.00
Total. Liabilities 27,400.00
Equity.
Rebkwd Earnings 3.580,961.88
Net-Income 39,183.00
Total Equity 3,620,144.88
TOTAL. LIABILITIES .& EQUITY 3,647,544.88
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