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.
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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
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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
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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
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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
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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.
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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.
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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