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HomeMy WebLinkAboutCouncil Workshop Minutes 02.24.2009MINUTES COUNCIL WORKSHOP FEBRUARY 24, 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 24, 2009. COUNCIL MEMBERS PRESENT: X Emelie Eaton Kate Hart _x_ Chuck Rodgers 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 Carson Bise, Tischler-Bise Carl Anderson, Morrison-Maierle Crystal Bennett, Great West Engineering 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. Lev Halvorson, representing Community Hope, stated that she would like to speak to the council on behalf of Community Hope. Mayor Olson stated that Community Hope is listed later on tonight's agenda, and he asked if her comments would be best served there. City of Laurel Volunteer Ambulance Service: • Appointments of Kris Dahl and Chris Obritschkewitsch Jan Faught introduced Kris Dahl and Chris Obritschkewitsch to the council. Both men are Emergency Medical Technicians, and Jan requested approval of their appointments at the council meeting on March 3rd Morrison-Maierle, Inc.: • Report on the wastewater project Carl Anderson, Morrison-Maierle, stated that Scott Murphy and Stephanie Seymanski presented an update to the council on January 27th. At that meeting, Scott indicated that the Facility Plan Amendment would be delivered to DEQ and the council by February 27th. Morrison-Maierle is on track and in the process of doing the quality assurance on the Facility Plan Amendment. The document will be printed on Wednesday and sent out on Thursday for delivery on Friday. Carl stated that it will be a major milestone. Twelve copies will be distributed possibly on Friday to council and other staff members or possibly on Monday. Council Workshop Minutes of February 24, 2009 The Facility Plan Amendment will identify and crystallize the project based on the work Morrison- Maierle has done to date, including the permit evaluation and their discussions with DEQ. The detail in the document will fully detail what will be designed. Carl spoke regarding discussion of two optional pieces that could be incorporated into this project. Costs for both additional pieces will be included in the document. At the March 10th council workshop, Morrison-Maierle will answer questions and have rate information available for the council. Three options will be presented. The first option would be the project as it was originally envisioned, plus the activated sludge process. The council passed a resolution to add activated sludge to the project. The second option would add UV disinfection as an alternative, and the rate ramifications will be presented. The third option would include some maintenance items that were included in the original Facility Plan. Staff has recently indicated that these items should be done sooner rather than later. The items are lift pump replacements, digester piping renovations, and valve replacements, which are all minor items and not a huge cost. Costs will be presented so the council can decide whether or not to include the maintenance items. Morrison-Maierle will attend the council workshop on March 10th, and the council would make final decisions on March 17th. Carl stated that the maintenance items could be included as a separate bid schedule in the contract documents, which would then allow the council to decide whether or not to include them in the final contract. With the Facility Plan Amendment, the next steps are DEQ review and approval, the SRF loan commitment agreement, and satisfaction of the TSEP Grant requirements. Carl asked Crystal Bennett, of Great West Engineering, to present a schedule for the requirements. Great West is administering the grant portion of the project. Crystal stated that the SRF application would be started once the Facility Plan Amendment is completed. She proposed March 13th for getting the actual application into SRF. However, that might change to March 17t so the council can make the decision about the project. Another week would be needed to finalize the application. SRF review of the financial information would take place after that, and Crystal thinks it could be done by the middle of April. The concern at this point would be the environmental assessment because of the required 30-day comment period. Right now, Crystal thinks SRF will wait to do the environmental assessment until they have reviewed the Facility Plan Amendment and have their comments. There is the potential that it could get pushed up. With that being completed by April 27th and the 30-day comment period done by the end of May, then early June would be the date for the SRF commitment letter. That is what is needed to satisfy the TSEP startup conditions. Once the city has the letter, it has the TSEP Grant. Carl stated that Morrison-Maierle has submitted a question to Michelle Marsh at DEQ. Michelle will review both the Facility Plan Amendment and the Environmental Assessment. Carl stated that they rarely see a review of the Environmental Assessment as a condition for the SRF loan commitment agreement. Carl is trying to get word back from her, which might compress the schedule some. If the Environmental Assessment did not need to be done before the loan commitment agreement, there would be an extra 30 to 45 days in the schedule. If not, Carl stated that it should all be together by early to mid-June. Carl stated that Kurt announced good news at the last council meeting when he and the crew did some investigation and found that the pipe under the interstate was in good shape. Carl stated that it is good to find out what is actually in the ground and that there is not a big problem like they thought. 2 Council Workshop Minutes of February 24, 2009 Carl has had recent discussions with Michelle Marsh at DEQ and Paul Levine with the SRF Program. There has been discussion at the SRF level of including the Laurel project in the stimulus package. The criteria are not known at this time, but they are inquiring about Laurel's project. There is a possibility of assistance through the stimulus package recently passed through congress. Assistance through the SRF Program could come in one of two ways. The first is called "principle forgiveness", which means that the city would borrow "X" and have to pay back "Y", which would be a lesser amount and is essentially a grant. The second way to benefit from the stimulus package is with a reduced interest rate. It is possible that the city could receive both kinds of assistance. Morrison- Maierle has provided DEQ with some information for discussion. Mayor Olson stated that the City of Laurel needs to hold a public hearing. There was discussion regarding the date for the public hearing. In order to meet the requirement to advertise twice, the public hearing will be scheduled on the March 17th council agenda. Carson Bise, TischlerBise: • Impact Fees Feasibility Study update Carson Bise, Tischler-Bise, gave a PowerPoint presentation of the Impact Fee Feasibility Analysis Overview. Carson suggested that it would be in the city's best interest to annex developments outside the city limits that receive services such as ambulance and fire protection, etc. He stated that impact fee calculations could be done for parks and recreation, police, library, fire, and ambulance. Impact fees for water and sewer need further review, and Carson did not recommend road impact fees for Laurel. Impact fees are needed to help maintain existing levels of service, to require new growth to pay its equitable share, and to encourage disciplined capital improvement planning. Carson spoke regarding the fiscal impact analysis, economic impact analysis, fiscal impact vs. revenue forecasting, observations, general perceptions, influencing factors, case studies, and the principle sources for funding the gap. Mayor Olson thanked Carson for his presentation and the information. Planning: • Proposed 2009 Inter-Local Agreement and 2009 Bylaws - Laurel/Yellowstone County Consolidated Planning Board James Caniglia stated that the Planning Board will review and comment on the draft documents at next week's meeting. He asked the council for any comments or questions. Mayor Olson stated that a section of the inter-local agreement outlines the funding process for the county to participate in its share of the city-county planning department. He stated that it is a city- county planning board, and the county has some obligation to the revenue needs. Mayor Olson explained the provision in the by-laws that a quorum will be designed by the amount of members seated on the board. This will allow business to be conducted even though board vacancies have not been filled. • Resolution - Accept Bus Transit Grant from MDT James stated that the City of Laurel received a bus transit grant from the Montana Department of Transportation for $34,000 with a $6,000 match, of which $3,000 can be in-kind match. The remaining $3,000 match could come from the CAO and/or planning budgets. The transit study would get demographics of the city, the number of elderly and/or disabled people, how many people would be expected to use a bus if available, etc. A kick-off meeting would include those involved in the 3 Council Workshop Minutes of February 24, 2009 retirement communities, transit officials from Billings, county commissioners, and council members to figure out the needs and costs. The grant would allow the transit study to move forward. The resolution will be on the March 3`d council agenda. • Resolution - Contract with LSC Transportation Consultants for bus transit plan James stated that this item moved forward quickly. Bill and James would like to apply for an actual transit grant, and the application is due March 2°. The grant would help the city start a bus service. If the city receives the grant, it is not obligated to accept the money. The transit study would take about three to four months. If the city felt the need for a bus service after completion of the transit study, it could accept the grant at that time. James stated that transit money is included in the stimulus package, which prompted the decision to move forward quickly. The resolution will be on the March 3rd council agenda. Public Works Department: • Resolution - Moratorium on resale of city water Kurt Markegard explained the resolution declaring a moratorium on all businesses, entities and individuals requesting the city's approval to sell or re-meter city water until a rate study and schedule is developed and adopted by the city council. The city was recently approached about a new business that would take city water and resell it to customers outside the city limits for water. While researching the process for that, Kurt found that recent rules stipulate that the council be asked for permission. Prior to those rules, research showed that applying for a business license was needed. Kurt reviewed the rate structure for re-metering water and determined that it is done from the meter size, which does not take into account the volumetric of the water being resold. It was determined that the city is selling a large amount of water outside of the community. He stated that it is not fair and reasonable that the city is not being reasonably compensated for the reselling of its water. After further investigation, Kurt determined that there is a problem with providing potable water outside the city limits and there are also users inside the city limits that run water through one meter, pay a small base rate, and then re-meter the water to many homes. Apartment complexes, St. John's, and others pay a base rate for city water and then resell the water to their residents. The city does not receive a reasonable cost associated with that. Kurt did not think it was fair and reasonable to allow any more businesses to start until that classification of users is identified and a reasonable rate structure is in place. Kurt spoke regarding Saddleback Subdivision's water system, Beartooth Pointe Subdivision, the cost to filter and treat the city's water, the current water stand pipe on South 9th Street, and how the Enterprise Fund charges each residential unit for garbage services. A moratorium would provide time to review the fair and equitable rates for this classification of users. The resolution will be on the March 3rd council agenda. • Resolution - Great West Engineering, Amendment No. 1 to Task Order No. 9, for water intake structure lids Kurt stated that the resolution approving Amendment No. 1 to Task Order No. 9 is for professional services between the City of Laurel and Great West Engineering in regard to the water system intake. When the water intake lids came off, the city asked Great West Engineering to do a preliminary engineering report as to what was needed to replace the lids. The city went out to bid for the construction and replacement of the lids. This resolution provides the contract with Great West 4 Council Workshop Minutes of February 24, 2009 Engineering to provide for on-call engineering services for the replacement of the water intake lids during construction. The resolution will be on the March 3rd council agenda. • School site plan Kurt presented an explanation regarding the school site plan for the new stadium and football field. The school district did not submit a final plan for the city's review, and Kurt spoke regarding some of the issues. He explained the need to upsize a 4-inch water line on Wyoming to Pennsylvania Avenue to an 8-inch water line in order to address fire flow and potable water issues for the stadium and the neighborhood. Kurt suggested that the school district and the city should share the cost of this project. There was discussion regarding East 8th Street, which is only half paved and needs to be totally paved. Kurt stated that this is a city issue. Clerk/Treasurer: Mid-Year Budget Review Mary distributed the 2008-2009 Mid-Year Budget Review books to the council for their review. She stated that the 2007-2008 Year-End Financial Report and the Quarterly Report as of September 30, 2008 for Fiscal Year 2008-2009 were also distributed recently. Chief Administrative Officer: • Community Hope Lev Halvorson, the new director of Community Hope, is getting acquainted with all the problems. One problem area is the disposal of items that people drop off at Community Hope at night and on the weekends when no one is there. Community Hope has no control over this when the business is closed. During the day, volunteers can accept what can be used and tell people not to leave other items. However, people leave and then return to dump the items during off hours. Community Hope hires and pays a man to load and haul the excess items to the city dump. Community Hope pays commercial rates for garbage pickup. The garbage is emptied every day and that works well. But the city charges them every time they take garbage to the dump. She calculated that Community Hope paid $2,190.24 for regular garbage pickup from January to December 2008. They also paid $571.50 at the container site, which she objects to as a taxpayer, a citizen of Laurel, and as a volunteer. She pays her personal garbage bill every month and has also taken garbage to the container site and just shown a current water bill and was not charged. Community Hope works on a very low budget, receives no federal or state funds, and operates only on donations. She asked the council to reconsider charging Community Hope to take garbage to the container site. Doug commented that Community Hope originally planned to totally fence off the area so it would not be accessible to drop off items unless it was open. When he goes to the container site, he shows his driver's license or a current water bill and no additional fees are charged. Kurt Markegard stated that solid waste is an Enterprise Fund. It is not taxpayer driven, but it is a taxpayer utility with solid waste fees. Laurel does not have a landfill and therefore has to dispose of the items by hauling garbage to Billings. The city incurs costs of $11.50 per ton to haul garbage to the City of Billings. Right now, Laurel has two classifications, residential and non-residential. Community Hope is a non-residential garbage user and pays a rate comparable to what it receives at the site. Current charges are $194.00 per month for six day a week service at their site. The rate is not set to include service at the container site. Community Hope can use its on-site service as much 5 Council Workshop Minutes of February 24, 2009 as needed for $194.00 per month. Kurt stated that current rates would not allow the city to operate if residential garbage pickup was done 26 times a month. Currently, residential garbage is picked up four times a month at a rate of $11.80. With the Enterprise Fund, the city can operate the container site with the revenue from the residential service. There is no condition for non-residential users to dump solid waste at the container site. Kurt stated that residents could take the garbage to the container site and be charged nothing. If residents take it to Community Hope, they have to get rid of it if they choose not to use it or resell it. The issue is that Community Hope cannot only solicit donations from city residents, which means that donations are received from county residents, too. Kurt explained issues with non-residents dumping garbage at various businesses in the city. Other businesses have also asked for rate reductions because people fill their containers with trash. Town Pump has five garbage containers in which travelers dump their trash, and other gas stations and businesses have the same issues. Kurt stated that the garbage fund, which is an enterprise fund, has to be reimbursed for the expenses to haul the garbage to Billings. He cautioned the council regarding reducing garbage fees at the landfill for non-residential users because then other businesses would make the same request. Kurt stated that the department has to be financially responsible and revenues need to meet expenses. Ms. Halvorson stated that Community Hope is not a business. Kurt stated that the city only has two classifications, non-residential and residential. If council chose to do anything, a different classification would be needed. Ms. Halvorson stated that Community Hope is recognized as a second Laurel city dump. There was council discussion. The Public Works Committee will investigate the garbage issue and other irregularities in the rules governing solid waste at the meeting on March 91h. Mayor Olson mentioned the citywide cleanup scheduled on May 2"d and 3rd. During last year's cleanup event, county residents dropped off garbage for which the city ratepayers paid to transport to the City of Billings landfill. This year, garbage will only be accepted from residents in the city limits. Executive review: • Resolution - AFSCME Local 316 contract Mayor Olson stated that the 316 contract has been ratified by the 316 Local. Legal counsel reviewed the contract and expressed concern regarding one item. Article XII - Sick Leave, Section 4, states: "An employee who terminates employment with the city is entitled to a lump sum payment equal to one fourth (1/4) of the pay attributed to the accumulated sick leave. The pay attributed to the accumulated sick leave shall be computed on the basis of the employee's salary or wage at the time the employee terminates their employment with the Employer. If an employee dies while still with the employer, all accumulated sick leave will be paid to employee's spouse or designated beneficiary in a lump sum." Sam Painter stated that copies of the existing contract and the proposed changes negotiated between the two teams were distributed to the council. The proposed changes have not been incorporated into this contract, but the union met and ratified all of the changes. When reviewing the changes, Sam noticed one provision in Section XII. He stated that it is an oddity, is different from any other contract, and is different from what the State of Montana does with sick leave. Basically, this provision would make employees' accumulated sick leave a death benefit for a spouse. Sam has 6 Council Workshop Minutes of February 24, 2009 never seen it used like this and does not think it is a good provision for the city to get into. He asked the council to review it and talk to staff about the financial implications that could result. As he understands it, an employee's sick leave is paid out at a quarter percentage when they terminate or die. An employee does not get the entire sick leave as some sort of a bonus or insurance policy. He stated that the city already provides a death benefit for its employees. He asked the council to consider that provision. Sam did not have any opinions with the other proposed provisions. Since the union ratified the contract, the city is obligated to consider it next week and either approve it or disprove it. Sam recommended that the council consider it, read the provision, and determine the possible financial impact on the city because he does not think it is in the city's best interest. If the council rejects the offer, it would go back to the negotiating team. The resolution will be on the March 3`d council agenda. • Laurel Urban Renewal Agency: Advisory Members Mayor Olson stated that the Laurel Urban Renewal Agency will submit a list of names for the four advisory members on the board. Advisory members do not have voting rights. The Laurel Urban Renewal Agency has met, appointed the chairman and recording secretary, and is gathering information to understand the charge from the council. • Water Task Force Mayor Olson stated that he intended to appoint a water task force to review the issues with the moratorium. However, he decided to charge staff with the task of presenting a recommendation for the council's consideration. If council members want to be involved, they should notify Bill Sheridan. Appointments: o Police Sergeant Mayor Olson stated that the offer letter will be drafted and presented to the successful candidate. o Planning Board: Greg Nelson to the Member-at-Large term ending 06/30/2010 The appointment will be on the March 3`d council agenda. • Council issues: o Speed limits -- East Railroad to Shannon Road (Emelie Eaton) Emelie Eaton distributed copies of a letter she wrote to a constituent regarding the discrepancy in the speed limits on East Railroad to Shannon Road. James Caniglia stated that he will discuss some street annexation issues with the county commissioners on Monday. Currently, East Railroad is owned by the county and the city. An update will be presented at the council workshop on March I Otn Other items Chuck Rodgers stated that Aviation and Technology Week has been tentatively scheduled for May 3- 7, 2010. Jack Bayne has resigned from his position, and the committee is looking for additional help. Meetings are scheduled on March 1 lth at 1:30 p.m. at the Laurel Middle School and on March 19th at 7:00 p.m. at the school administration building. 7 Council Workshop Minutes of February 24, 2009 Chuck stated that the city needs to review the need for a paid fire chief. Mayor Olson stated that staff will be directed to prepare a job description for a full-time fire chief. Mayor Olson stated that a resolution authorizing the Mayor to sign a construction agreement with the Montana Department of Transportation for the 8th Avenue Project from West Main Street to West 9th Street would be on the March 3rd council agenda. Bill Sheridan explained that the shovel-ready project is being considered as part of the economic stimulus package. Mayor Olson stated that Miral Gamradt has completed a review of the city's administrative charges. This item will be on the March 10th council workshop agenda for council discussion. Kurt explained the issue regarding the drain ditch at Fitchner Chevrolet, where Tractor Supply Company plans to build. Kelly Brester, the president of the Italian Ditch Company, submitted conditions to allow moving the ditch and the city also has conditions that must be met. A list of the conditions required by the Italian Ditch Company and the City of Laurel has been prepared for council consideration at the March 3rd council meeting. Mayor Olson stated that an offer letter will be given for the Utility Plants Superintendent position. The citywide cleanup is scheduled for May 2nd and 3rd for residents within the city limits. Residents outside the city limits should haul garbage directly to the Billings landfill. The Bright n' Beautiful and the City of Laurel events will be held on the same dates. Mayor Olson thanked Bill and Kurt for tonight's tour of the water treatment plant. Review of draft council agenda for March 3 2009 The conditions to move the Laurel Drain/Italian Ditch Company will be added to the council agenda. Attendance at the March 3 2009 council meeting All present will attend. Announcements There were none. The council workshop adjourned at 9:16 p.m. Respectfully submitted, 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. 8 Dear XXXX: I have driven East and West along Railroad Street until it turns into Shannon Road and then merges into East Main Street at the top of the overpass. The following is what I have found. Heading East As you turn off First Avenue South there is a 25 mile per hour sign posted behind the storage building east of the grain elevator There is a 35 mile per hour sign posted on the property just east of the Wal Mart property. It is an empty lot or farm land. There is a 20 mile per hour "corner" sign posted just east of the greenhouse property Traffic then would resume to 35 miles per hour, the last posted speed limit. There is a second 20 mile per hour "corner" sign posted at the intersection of Strauch and Shannon Road. Traffic would once again resume to 35 mph. There is a 30 mile per hour "S" type curve sign posted prior to going over the irrigation ditch. Traffic would resume to 35 miles per hour until the stop sign at the intersection of East Main and Shannon Road. Going West from East Main Street to Shannon There are no signs stating a speed limit until the 30 mile per hour "S" curve going over the irrigation ditch. There are no speed limit signs between that "S" curve until the 20 mile per hour "corner" sign at the intersection of Strauch and Shannon. There is a 35 mile per hour speed limit sign posted mid-way through the corner after Shannon turns into East Railroad Street. There is a 25 mile per hour "corner" sign posted by the greenhouse property. There is a 35 mile per hour speed limit sign at the east end of the Big Sky Greenhouse property. There is a 25 mile per hour speed limit sign posted about mid way past the "Convoy" parking lot. There is another 25 mile per hour speed limit sign posted by a railroad property road which is directly across from the Auto Connection on Main Street. There is a STOP sign at the intersection of First Avenue South and East Railroad Street. In response to your comments to me= 1. Yes, it does appear that along the back of Wal Mart there is a discrepancy in the speed limits between east and west bound traffic. The east bound traffic has clearly posted 25 mile per hour speed limit signs between the grain elevators and the property to the east of Wal Mart. West bound traffic however, is still under the last posted speed limit signs which were the 35 mph sign posted mid way through the corner after the intersection with Strauch and the 35 mph sign at the east end of the Big Sky Greenhouse property. Those instructions do not change until the 25 mph speed limit sign posted midway past the convoy parking lot and repeated at the sign posted across from the Auto Connection on Main Street. 2. With regard to your question regarding whether these are City speed limits or County speed limits I am not certain but I suspect Shannon Road (the eastern most half of the road in question) is controlled by the County. There is railroad property on the north side and farm land on the south side. Regarding the western half of East Railroad Street (everything from Strauch Road to First Avenue South) I will have to inquire at a Council meeting. Clearly the north side is dominated by BN and MRL property, but there are houses; convoy and empty lots along that stretch as well. The southern side is dominated by the highway, then Big Sky Greenhouse, then farmland then Wal Mart;' the fiberglass business, Fox Lumber and the grain elevator among other buildings. I do not know how much of that property has actually been annexed into the City. 3. Yes, clarification of what is City land and what is County land is needed before a decision can be made regarding whether the City Police or the County Sheriff Department patrols this area and who is responsible for posting the speed limit signs. I will share any information regarding this situation as it is available to me. Emelie Eaton Ward One Councilwoman