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HomeMy WebLinkAboutCity Council Minutes 09.19.1995Minutes of the City Council of Laurel September 19, 1995 A regular meeting of the City Council held in the Council Chambers and called to p.m., on September 19, 1995. of the City of Laurel, Montana, was order by Mayor Chuck Rod~ers at ?:00 COUNCIL MEMBERS PRESENT: Gay Easton Donna Kilpatrick Lonnie Kellogg Chuck Dickerson Ron Marshall Albert Ehrlick John Minch COUNCIL MEMBERS ABSENT: Bob Graham INVOCATION: Invocation was given by Alderman Kellogg. MINUTES: Motion bM Alderman Dickerson to approve the minutes of the regular of September 5, 1995 as presented, seconded by Alderman Marshall. carried 7--0. meeting Motion CORRESPONDENCE: Received the quarterly newsletter from MMIA. Received the August minutes and activity report from the Yellowstone County Air Pollution Control Board. CITY CLERK'S & CITY TREASURER'S FINANCIAL STATEMENT: The City Clerk's and City Treasurer's financial statements for the ~nonth of August were presented. Motion by' Alderwoman Kilpatrick that the City Clerk's and City financial statements for the month of August, 1995, be approved? Alderman Ehrlick. Motion carried 7--0. seconded by PUBLIC HEARING - HOUSING PROJECT: Melissa Dickerson, Double Tree, Inc., presented the housing plan for the City of Laurel and is asking the council to approve it. The housing plan lists some basic statistics of the city and refers to housing problems and needs in Laurel. 1. Housing rehabilitation is the largest need in Laurel. Over 63% of the housing stock in Laurel is substandard· There are a lot of elderly, low to moderate income and handicap households in Laurel. 2. Laurel also has a need for new housing construction, both for owner and rental occupancy. There is a need 'to increase the amount of available elderly housin~ opportunities. The existing elderly rental facilities in Laurel are consistently 100% full. Results show that Laurel needs additional rental, properties. Many families are looking for rentals because they cannot locate a suitable or affordable home to purchase. The need for rentals will be reduced~ if the need for single family housing is addressed first. 5. Homebuyer assistance and tenant-based assistance were also shown as a need in Laurel. Priorities for development are as listed: Elderly Housing: development of additional elderly housing and improvement of existing housing occupied by elderly households has been identified as a top priority in the City of Laurel. The first way to address this is with housing rehabilitation. Secondly, with new construction of independent living apartments and congregate (assisted living) facility. Rental Housing: development of additional rental housing and improvement of existing rental housing has ranked as a top priority in Laurel, such as new construction and rental rehabilitation. Some developers have shown an interest in building rental housing but there has been no decision to go forward with 'the lots that are available for multiple family housing. Developing city owned property with zoning for rental housing may be an accomplishment towards that. 3. New Housing Construction: development of affordable sine'lc family boumin-o' Minutes of the City Council of Laurel Page 2 Council Meeting of September 19, 1995 to provide water, sewer and streets to the 15 lots in the city-owned Cherry }{ills subdivision and construct the improvements with city manpower and equipment. There is privately owned land across the platted street of Cherry Hills Subdivision that the city could consider annexing as part of the program. Also, establish and capitalize a homebuyers program to provide downpayment and/or mortgage buydown assistance to income eligible homebuyers. An Affordable Housing Project addresses the priorities compouents will include housing rehabilitation, development Cherry Hills Subdivision to provide lots for new construction~ of a homebayers program for income eligible homebuyers. cited. Project of the city owned and establishment Component 1: Make application to the CDBG program. Application is due October 1995. The CDBG, HOME and HPG funds will finance the rehabilitation of 50 substandard housing units occupied by low and moderate income individuals or families. They would like to focus on elderly and handicapped homeowners. The project area will be open to any elderly or handicapped homeowners within the city limits. Project activities will include the demolition of three severely substandard vacant structures within the city. Demolition of three housing units would provide additional sites for new construction in the city limits. Component 2: The City of Laurel will use manpower and equipment to construct water and sewer lines to the city owned Cherry Hills Subdivisions. This activity will provide for the development of 15 building sites for single family homes. Component 3: Funding for the capitalization of a Homebuyer Program. The anticipated $140,000 in HOME funds will be used for downpayment assistance and mortgage buydowns for low moderate households acquiring homes. Long term mortgages will be provided by local banks and mortgage lenders. Barbara Campbell, Double Tree Inc., spoke on the housing project. The project is in response to the ranking comments from the Department of Commerce after the submission of the first application. They felt the City of Laurel should take a stronger look at what new housing needs are in the community. There appears to be a strong need for rental housing. It was found that the demand for rental hoasing ]s due to a demand for more houses to purchase. After looking at construction activity over the last three years, there is an increase in building permits and this is depleting the number of available building sites. The appropriate response would be to provide and make more lots available for new constraction. The average selling price in the first six months of 'this year is about $85,000.00, which appeals to an affordability limit of low to moderate income people. The pricing isn't way out of reach of their limit of affordability. It is being proposed to put a component in the project for f~rst time home bayers or a homebuyers assistance program. The program provides young families with downpayment assistance or mortgage buydowns to help them get into their first home. Local banks are willing to participate in the program. By adding this component, it will make the application very competitive. In comparison with the project submitted last year, which had just, housing rehabilitation as the only component, we now are addressing housing rehabilitation assistance and the development of new housing by providing additional lots and also helping home buyers. The committee does not feel the city should be in competition with private developers and home builders. The city is a local government and rather than compete with them~ by building houses and selling them on the open market~ why not participate with them. We could make lots available to them, look at zoning requests and other items that are governmental functions rather than compete with them. A private sector is ~ctive in construction business in this area and with assistance from the city, this can all pull together. Alderman Marshall questioned the project funding proposed to facilitate the project strategy which includes City of Laurel (in kind/ of $251,900 and asked what services would be required from the city? Barbara Campbell explained that it was discussed at the advisory committee that the city use its crew and manpower to install water and sewer in the Cherry H~lls Subdivision under Jim's direction. They received estimates from two engineering firms for the cost, if it was bid out. They have written an in-kind value for that contribution and in addition they have allowed any time the crew may run a dumpster through the project and haul out debris. This amount of money 'the city won't have to budget, with the exception of the cost of the physical pipe for the water and sewer main lines. Alderman Kellogg mentioned that at one time, a couple of developers were interested in the lots and asked Jim how this would affect it? Is the city going Page 3 Council Minutes of the City Council of Laurel Meeting of September 19, 1995 Jim stated that at this time the developers have decided it is not financially feasible for them to put in the water~ sewer, street, curb, and gutter with the limited number of lots. With the water and sewer installed, the council can set the price for the lots to ensure all city costs are recovered. The lots would sell easier and attract developers. Alderman Kellogg still questioned if the developer can't sell fifteen lots and make a profit? then how can the city put ii1 all the improvements and sell in order to return their costs? Jim explained if the city schedules the under ground work into yearly maintenance activity than the only cost to the city is materials. If a contractor does it~ than it is the cost of materials, labor~ profit~ interest, and etc. It was also explained that only the main lines would be laid. The service lines would be put in by the contractor as the lots are sold. Alderman Kellogg expressed his concern of the government subsidizing the developers. The city would be doing this in this case. Barbara Campbell stated that other cities do sabsidize developers. The city would be able 'to recover the material cost, the value of the land plus the benefit of water and sewer hookup to the city's main lines. The city can ]put it in cheaper than the developer. Its an odd number of lots for a general contractor or a developer. The lots could pay for themselves, if they are sold as one entity or sold to more than one contractor or developer. There is time to develop the component because the application won't be submitted until next August. The property across the street from Cherry Hills Subdivision is not in the jurisdictional boundary but was platted at one time and could be replatted. She agrees and doesn't foresee where the developers pocket should be padded by the city. The city will be able to develop the last piece of ground into an available fifteen lot subdivision and make the lots available for sale. At this time, a private developer wouldn't consider the lots because there aren't enough to make it profitable for' them. This may be the only way to get them developed. Individual home buyers could purchase lots instead of a developer purchasing all of tbem. It is worded in the application that 'the lots would be made available to the open market and to people who participate in the first time homebuyers program. Alderwoman Kilpatrick asked how the project activities will include the demolition of three severely substandard vacant structures? Barbara stated there are different ways such as the fire department doing a practice run by collapsing the structure with heavy equipment then doing a practice burn and hauling away the debris. In cases~ where buildings are too close to do this, then the demolition is bid out to demolition contractors. The home is privately owned and the owner is contacted and asked if they wish to participate in the project. A release is signed and there is a contract with the city. The home owner may pay for' a share of the cost depending ou their income. There are always old abandoned homes in older neighborhoods. If the project is identified or inspected as having hazardous materials~ then the easiest way is to bid it out to a demolition contractor who takes care of disposing the materials. Motion ~CL Alderman Dickerson to close the public hearing for the housing project, seconded by Alderman Marshall. Motion carried 7--0. Motion by Alderman Marshall to approve the revised Housing Plan for the City of Laurel as presented to the council, seconded by' Alderman Dickerson. ~otion carried 7--0. RESOLUTION AUTHORIZING THE MAYOR TO SUBMIT A CDBG GRANT: RESOLUTION NO. R95-44 AUTHORIZING THE MAYOR TO SUBMIT A CDBG GRANT TO RENOVATE SUBSTANDARD HOUSING Motion by Alderman Dickerson that Resolution No. R95-44 be passed and adopted, seconded by Alderman Marshall. Motion carried 7--0. Page 4 Council Meeting of September 19~ 1995 Minutes of the City Council of Laurel RESOLUTION TO PARTICIPATE IN THE AFFORDABLE HOUSING PROJECT: RESOLUTION NO. R95-45 AUTHORIZING THE CITY TO PARTICIPATE IN THE AFFORDABLE HOUSING PROJECT WITH THE USE OF CITY EQUIPMENT AND EMPLOYEE TIME Motion by Alderman Marshall that Resolution No. 295-45 be passed and adopted, seconded by Alderman Dickerson. Motion carried 7--0. REVIEW OF THOMAE LUMBER LOADING ZONE: The police department and the city has received no complaints regarding the Thomae Lumber loading zone. Alderman Dickerson asked Paul Thomae if all the fork lifts are in compliance with the markings on them that were requested? Paul replied yes. Motion by Alderman Marshall to review Thomae Lumber loading zone in another year, seconded by Alderman Dickerson, Motion carried ?--0 NEW RATES - LAUREL VOLUNTEER AMBULANCE: RESOLUTION NO. R95-46 A RESOLUTION ESTABLISHING RATES FOR SERVICES, EQUIPMENT AND SUPPLIES FOR THE LAUREL VOLUNTEER AMBULANCE SERVICE Motion by Alderman Dickerson that. Resolution No. R95-46 be passed and adopted, seconded by Alderman Minch. Darrell McGillen asked if the rates for services rendered apply to the departments within the city, such as the City of Laurel Volunteer Fire Department~ when the ambulance is assSsting irt a fire and a fireman is hurt? Don Hac. kmann replied that. in tlhis situation, the bill would be filed with Workmen~s Compensation. Darrell McGillen asked if the Fire Department requested a standby, would that be $36.00 under treated/not transported? Alderman Ehrlick said this is the intent of the committee to charge and doesn't. consider any in house rates. Vote was taken on the motion. Motion carried 7--0. APPROVE COST ESTIMATE OF WATER PROJECT: Jim Flisrand presented the Water Plant Steering Committee minutes of September 14th to finalize the cost estimate of the water plant reservoir and construction project. Jim pointed out the construction additives were included in the total project cost. The intent is to get the bids out and for Morrison and Maierle to continue with the final design and to begin development of the rate structure. The total cost of the project that has been accepted by the Steerlng Committee is $3,643,235. The committee is proposing these figures to the council for approval which addresses all the concerns of the water plant and reservoir with current cost and estimates at this time. Alderman Marshall mentioned that the preliminary increase on the water rate 52% based on 3.2 million, and questioned whether the rate: will be affected a higher cost of the project at 3.6 million? was with Jim says it will be higher, based on what was originally intended for the restructuring. The percentage of cost relating to businesses, commercial and industrial varies. One additional cost was for an addition of a 1400 foot water line. This line would have 'to be repaired in a few years. By including it in the costs at this time, it can be completed now and save on cost in the future. Another addition to the cost is the chlorine scrubber included in the estimate. If the city decides that the chlorine scrubber will not be included in the scope of work, then $152,000 can be subtracted from the total cost, as noted on the cost estimate. Page 5 Council Meeting of September 19, 1995 Minutes of the City Council of Laurel the bridge renovation will include raising of the bridge. This would make it difficult for a semi-tractor to get down into the water plant location. The committee is trying to cover all bases and this would also be a safety factor for trucks entering the water plant. Jim was asked how any cost changes will he handled and addressed as far as total project cost. When the waste treatment plant was completed, the city was hit with cost changes. When the plant, was constructed, it was advertised, bids were received~ contracts awarded~ and construction was started, but there were unexpected costs that were not. anticipated in the preliminary design. Hopefully everything has been covered with this estimate. However, with any construction project there may be changes. It is the engineer's wish to have everytbSng covered up front and hopefully everything has been covered with this estimate. Morrison and Maierle has tried to look at all aspects and concerns. Motion by Alderman Dickerson 'to approve the total project cost with additives of $~,643,2~54, seconded by Alderman Easton. Motion carried 7--0. Jim Flisrand has asked for authorization from the council to acquire financing to take care of engineering costs until the bonds are sold. This project was originally going to be completed this fall, but because of a number of issues it will be bid this spring. The engineers have been working on this project for several months. There are low interest loans available to begin payments on the cost that the engineers are accruing. Jim is asking for approval for Don Hackmann and himself to be able to work with D. A. Davidson for a low interest loan and begin payment to the engineers. The money would be borrowed and paid back when the bonds are sold. Motion by Alderman Dickerson to give approval for Jim and Don to work with D. A. Davidson for preliminary funding on the project, seconded by Alderman Minch. Motion carried 7--0. COMMITTEE REPORTS: --Ambulance Committee minutes of August 24, 1995 were presented and reviewed. Motion by Alderman Easton to enter the Ambulance Committee minutes of August 24, 1995, into the record, seconded by Alderman Dickerson. Motion carried 7--0. --Budget/Finance Committee minutes of September 5, 1995 were presented and reviewed. Motion by Alderwoman Kilpatrick to enter minutes of September 5, 1995, into the record, Motion carried 7--0. the Budget/Finance seconded b~ Alderman Committee Ehrlick. --City Council Committee of the Whole minutes of September 5, 1995 were presented. Motion by Alderman Dickerson to enter Whole minutes of September 5, 1995, into KJlpatrick. Motion carried 7--0. the City Council Committee of the the record, seconded by Alderwoman --City-County Planning Board minutes of September 14, reviewed. 1995 were presented and Cal Cumin noted the proposed changes for the Laurel Zoning Ordinance and stated there would be a public hearing before the council at a later date. Motion by Alderwoman Kilpatrick to enter the City-County Planning Board minutes of September 14, 1995, into the record, seconded by Alderman Dickerson. Motion carried 7--0. --Garbage Committee minutes of September 18, 1995 were presented and reviewed. Motion by Alderman Ehrlick to enter the Garbage Committee minutes of September 18, 1995, into the record, seconded by Alderman Marshall. Alderman Dickerson asked what the placement of ninety gallon containers 1100 block of First Avenue? committee's decision was regarding the in the 900 block of 10th Avenue and the Jim Flisrand explained that in areas of town where there isn't an ailey~ ~he three hundred gallon containers are set on the sidewalks in front of the residence which isn't a good idea. Ninety gallon containers can be used in these areas. It will be a new policy to use three hundred gallon containers where Minutes of the City Council of Laurel Page 6 Council Meeting of September 19, 1995 Alderman Kellogg asked if this applied to mobile home courts also, which have three hundred gallon containers? Jim said the discussion of the committee was for in town but of course Village Subdivision should be considered. Alderman Ehrlick commented on the abandoning of the existing wells at the landfill. The we]is that are sticking up out of the ground could cause the city to be liable. By removing the wells, the city is not responsible for existing wells the state originally required. JSm stated that they hope to have the container site built with concrete stations, for operation through the winter months. --Laurel Local Governmental Review Commission minutes of August 24, 1995 were presented and reviewed. These minutes are for' informational purposes only. Alderman Marshall noted the commission will be mailing out a questionnaire, similar to the one attached to the minutes, with the October water bills. Motion by Alderman Marshall to enter the Laurel Local Governmental Review Commission minutes of August 24~ 1995, into the record~ seconded by Alderman Dickerson. Motion carried 7--0. --Police Committee minutes of September 8, 1995 were presented and reviewed. Motion by Alderman Marshall to enter the Police Committee minutes of September, 8~ 1995, into the record, seconded by Alderman Kellogg. Motion carried 7--0. --Public Utilities Committee minutes of September 11, reviewed. 1995 were presented and Jim Flisrand explained the good will policy. Marly cities through out the state have a good will program. The purpose of it is to assist the property owner that has had damage. It does not cover all the cost of the damages but is a good will in assisting in the clean up costs. There are different policies for the committee to look at. The amounts vary as to what the city may want to pay and then will need to budget for it~ which isn't budgeted for this year. A resolution would be needed to adopt t]he policy but at. this time it would be premature. It would have to be determined if the cost would be a lump sum in all cases or an evaluation of the damage~ where the committee determines the cost paid to each separate claim. Alderman Kellogg mentioned the concern whether this would be in competition with insurance companies as there are policies that cover that activity. Jim Flisrand noted he would have to get information as to how insurance companies or how other cities handle this. Alderman Dickerson stated he would like to go on record, prior to adopting the minutes, that even though the city has an obligation to the decision of Alexsis, he does not agree with it. Alderman Minch would like to go on record that he does not agree with Alexsis~ decision for the damage of sewage cost of the homes on Locust Avenue. Therefore~ he doesn't agree with the discussion that was held on the sewage backup on Locust Avenue as stated in the Public Utilities Committee minutes. Motion by Alderman Dickerson to enter the Public Utilities Committee minutes of September 11, 1995, into the record, seconded by Alderman Easton. Kristine Kerr~ 703 Locust Avenue~ has asked that the Public Utilities Committee minutes be amended to state that Jim Flisrand indicated the next step would be for them to get an attorney. Alderman Marshall stated it was indicated that Kristine Kerr and Lis Keller would need to get an attorney. Motion by Alderman Marshall to insert the indication that Kristine Kerr and Lis Keller would need to get an attorney as the next step, into the minutes. After a discussion, Alderman Marshall withdrew his minutes that it was indicated that Kristine Keri' and get an attorney as the next step. motion to enter into the Lia Keller would need to Page 7 Council Meeting of September 19, 1995 Minutes of the City Council of Laurel Alderman Dickerson withdrew his motion to enter the Public minutes of September 117 1995, into the record, Alderman second. Utilities Committee Easton withdrew his Motion by Alderman Dickerson to enter tbe Public Utilities Committee minutes of September 11, 1995, into the record with an amendment that it was suggested to Kristine Kerr and Lia Keller that the next option would be to seek legal counsel, seconded by Alderman Marshall. Motion carried 7--0. --Water Plant Steering Committee minutes of September 14, 1995 were presented. Jim had previously reviewed the minutes as he explained the intent of the meeting was to finalize the cost estimate~ as attached to the committee minutes~ and accept Morrison and Maierle's cost estimate of tile water project. Motion by Alderman Dickerson to enter the Water Plant minutes of September 14, ].995~ into the record, seconded Motion carried 7--0. Steering Committee by Alderman Hinch. COMMENTS FROM THE AUDIENCE: Kristine Kerr, 703 Locust Avenue, stated she didn't understand where to go from here and asked if the next Public Utilities Committee would be discussing the good will policy? Jim Flisrand stated he would have it on the ageuda for the next Public Utilities Committee and have the various program policies from other cities. They' would be looked at to see if the city can identify lts own policy. It may take several meetings, but at sometime the city could look into establishing a policy and then it would have to go to the budget committee. The next Public Utilities Committee meeting would be held October 16, 1996 at 7:30 p.m. Kristine Kerr commented to Joe Leckie that she has spoke to an attorney and was advised that the council of the City of Laurel could go against Alexsis' decision and reimburse for damages. However~ at the last meeting Joe stated that if the city goes against Alexsis~ decision~ it could result in possibly voiding any kind if insurance coverage. Joe Leckie replied that if the City Council agrees to reimburse the expenditures then they can run the risk of loosing insurance with MMIA. The council cannot tell MMIA to pay her claim. If the council took the wrong kind of action, they could void MMIA's obligation to pay any claim they have. If the city does not cooperate with MMIA~ then we loose that coverage for her type of claims. Kristine Kerr stated, "Well 'they aren't going to pay anyway. They have made that perfectly clear." It has been suggested to her that additional recourse is to hire an attorney and take the city to court. She is hoping for recourse in between, possibly before hiring an attorney such as the council agreeing ~o pay it out of the budget~ because MMIA has turned her down three times. Alderman Dickerson replied that the city cannot do this because the city would be liable for future claims of the same kind. Mr. Kerr remarked that they worked several hours cleaning their basement because of a switch malfunction and yet they for all the costs. sewage drainage in are held responsible Jim has explained at the Public Utilities Committee the elevation of the manhole being higher than the overflow at the lift station. The council sympathizes with both families, but the city can take no further action and they were given direction to the next option. Murray Heights Bridge: Alderman Dickerson asked Jim if there has been any progress on the bridge or triangular piece of land. Jim replied Mr. Murray was in to visit him and it was discussed about purchasin~ or acquiring the triangular piece of property from him on the south side and a small piece on the north side. He wants the city to proceed on it and wishes to give it to the city. Jim will visit with Joe Leckie on this. APPOINTMENTS: None Minutes of the City Council of Laurel Page 8 Council Meeting of September 19, 1995 There being no further business to come before the Council at this time, meeting was adjourned at 8:24 p.m. P~-~-~ ~'~ ~---~ ~/,~ ,~.1/,_~ Donald L. Hackmann, City Clerk the Approved by the Mayor and passed Montana, this 3rd day of October, Donald L. Hackmann, City Clerk by the City Conncil of the City of 1995.