Loading...
HomeMy WebLinkAboutCouncil Workshop Minutes 04.28.2009MINUTES COUNCIL WORKSHOP APRIL 28, 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 April 28, 2009. COUNCIL MEMBERS PRESENT: X- Ernelie 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 Derek Yeager Public In Rut 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. There was no public input. Public Works Department: • Resolution - Task order with Great West Engineering to provide milling overlay design and surveying of Alder Avenue from West 7"' Street to East Maryland Lane Kurt Markegard explained that the task order would help repair Alder Avenue. Great West Engineering will provide the surveying and design standards for a milling overlay using the millings from the MDT 2002 Turn Lane Project. The State will actually deliver the millings to the site. Emelie Eaton asked if this section of Alder that was torn up because of the Middle School construction. Kurt explained that it is a portion of that street and it also goes to Maryland. Maryland was a sewer line project for Iron Horse Station Subdivision, and from 7t' Street was a water line project for the school. Alder Avenue is a county road and the annexation will be complete prior to this project. Ernelie asked regarding past discussion about the school providing help with reconstruction of Alder Avenue. Mayor Olson stated that the school has not budgeted for any work at this time. Rather than wait for more deterioration of the road, the city will use the millings from the State project to salvage the road at this point. Council Workshop Minutes of April 28, 2009 Kurt stated that the engineering is a small portion of the project, and the millings are the majority of the cost. A rejuvenator will be used to spray on it to make it pliable again, and city employees will do the work. A chip seal will be done at the end of the project. Planning: • Resolution - Annex East Maryland Lane / Alder Avenue street rights-of-way James Caniglia stated that the resolution is for annexation of East Maryland Lane and Alder Avenue street rights-of-way from 7th Street going north of Maryland to the northern edge of Iron Horse Station Subdivision and portions of Maryland from Alder heading west. The resolution will be on the May 5th council agenda. • Ordinance - New code regarding exemptions for establishments serving alcohol in the Central Business District James explained the ordinance with a new code for exemptions for establishments serving alcohol in the Central Business District. This ordinance goes in conjunction with the ordinance passed recently that allowed brewery distillation in the Central Business District. James has received phone calls from people that want to do that, but the available buildings are located within 600 feet of a church. State law does not allow serving alcohol within 600 feet of a church, but it does allow an exemption within the Central Business District. A couple bars in town would not be allowed to reopen if they were closed for three months or more because they are too close to a church. The ordinance would approve an exemption for the Central Business District in Laurel. James stated that the proposed code is identical to the code in the City of Billings. Mayor Olson stated that the ordinance will have a first reading, public hearing, and a second reading. • Resolution No. R09-43: A resolution of the City Council accepting a contract with Jecyn Bremer and Sara Scott Adamson for the downtown Laurel Historic District inventory and National Register nomination. James stated that the resolution was removed from a recent council agenda because changes were needed to the contract. The contract has been revised, and the contractors have atreed to the changes. The amount of the contract will be $26,000. The resolution will be on the May 5t council agenda. Clerk/Treasurer: • Resolution - Contract for Janitorial Services Mary Embleton stated that the current contract with Laurel Carpet Cleaning will end on May 6th. The department heads who are in charge of buildings wanted to see what services were available and at what price. An RFP was done and one qualified response with Covert Cleaning was received. The proposal is for $2,415 per month. The city currently pays $2,040 per month for cleaning services. The services required have been expanded for the successful bidder. The department heads reviewed the proposal and recommend its approval. Covert Cleaning is a Laurel company. The contract will be a one-year contract with a three-year renewal and also contains a thirty-day convenience clause if one of the parties wants to terminate the contract. Mary stated that the current contractor did not submit a bid. The cleaning contract includes city hall, the FAP complex, the library, and a portion of the city shop. The resolution will be on the May 5th council agenda. • Quarterly Report Mary stated that the budget is through 75 percent of the year. She asked the council to review the report in conjunction with the Financial Report distributed recently. The biggest issue is the low 2 Council Workshop Minutes of April 28, 2009 interest rates earned on the city's investments. Interest rates averaged 1.9 percent the year before, and 3 percent prior to that. The decline of interest rates will show up in the revenue projections, which will fall short of what was expected at year end. The operating cash levels this year compared to last year in the water and sewer funds are considerably lower, as that cash was loaned to the TIF District for the storm water project. The other funds either maintained from last year or even increased a bit. Street Maintenance and Gas Tax both increased the cash positions, and that is why there is money for some work this construction season. Garbage gained some ground in the cash position, but it will be depleted once a new garbage truck is purchased. Mary asked the council to contact her with any questions regarding the report. Executive review: • Resolution -- Accepting Master Plan for the Laurel Cemetery Norm Stamper, Chairman of the Cemetery Commission, stated that the Master Plan provides a brief summary of the site, the Master Plan process, the cemetery layout, the Gathering Plaza, the maintenance building and road, the phasing, the irrigation system, and a conclusion. One focus is to improve Laurel's veterans' section to keep it in line with the Veterans' Cemetery across the road. Like any master plan, this is just a plan and can be changed in the future. The plan looks at 75 to 100 years worth of growth to complete it. The preliminary cost estimates for each phase are broken out, so the city can choose what to do next. Phase I deals with the veterans' section, the Gathering Plaza, and a retention pond. Norm commented regarding the high cost of the Gathering Plaza, which includes four columbaria at a cost of $95,000 each. This will need to be sub-phased to get anything started and can be built as time goes on. Money from the sale of the land was set aside for the veterans' section. The Cemetery Commission will meet to decide what to do with the money from the sale of the land set aside for the veterans' section, and a recommendation will be made to the council. Norm spoke regarding the need for a sprinkler system in the cemetery. The Cemetery Commission voted unanimously to accept the Laurel Cemetery Expansion Master Plan. Approval of the plan would close out the contract with Interstate Engineering. • Health Insurance Committee restructure Mayor Olson stated that the information for the proposed restructure was distributed to the council. The committee would include the appointment of two members from Local 303, two members from Local 316, two non-union employees, and two council members by appointment of the Mayor. The role of the Insurance Committee is to make recommendations to the city. The city could accept or reject the recommendation. The change resulted because the city now has two unions that are serviced through the health benefit plan, and both bodies requested equal representation. The restructure of the Health Insurance Committee will come forward for council approval in the Personnel Implementation and Instruction Guide. • Appointment - Full-time Fire Chief Mayor Olson presented the appointment of Derek Yeager as the full-time fire chief for the council's consideration at the May 5`h council meeting. An offer was presented to Derek and he accepted it. Emelie Eaton asked regarding the difference between the appointment as a volunteer fire chief and the full-time appointment. Mayor Olson stated that the council recently approved the job description for a full-time paid fire chief. The structure of the emergency services would change in that the fire chief would be responsible for the management and accountability of the volunteer fire department, the emergency 3 Council Workshop Minutes of April 28, 2009 medical people, and the budgeting for both departments. Mayor Olson asked Bill Sheridan to speak regarding the full-time fire chief. Bill stated that the full-time supervisor position would deal with all of the budget and personnel considerations, evaluations of employees, and negotiations with fire districts. The volunteer fire chief did these things in the past. A full-time fire chief would spend eight hours a day dealing with a variety of things, including negotiations with the districts, contacting the county commissioners to obtain funding for the districts, and the new fire hall structure. Mayor Olson stated that the appointment will be on the May 5"' council agenda. He commented that, when he served on the Emergency Services Committee, the target date of 2010 was when the City of Laurel could be forced to go from a Class 3 city to a Class 2 city. This would be required if the city's population went over 7,500. One thing to consider was a paid fire department, consisting of the fire chief and as many assistant chiefs as the council deems necessary. He stated that Laurel is at the point where, even though it might not reach 7,501, the city's needs are rapidly reaching the point where it needs to address the position of a paid chief. • Council Issues: o Citywide Cleanup in Laurel (Emelie Eaton) Bill Sheridan stated that last year's centennial cleanup event was successful. Vi Hills has been the driving force behind the events, and she has asked people to volunteer this year. The city sent out 175 courtesy notices about violations, advertised in the newspaper, and distributed fliers. So far 65 volunteers are signed up to help and the Montana Army Reserve will participate. Kurt Markegard explained that the city partnered with Bright n' Beautiful this year to make it one community event. Chris Rosenberg has done an excellent job of working with Vi Hills, organizations, and businesses. Chris got the event advertised on Channel 9. With the Great American Cleanup in Billings last week, the Billings' landfill will accept waste from the City of Laurel free of charge. Kurt plans to write a letter of appreciation to the City of Billings after the event is over. Gary Colley also participated in the planning of the event. Kurt mentioned that 175 courtesy violation letters have been sent out to encourage people to address the issues. Kurt stated that the City of Laurel has costs associated with the event. County residents should transport garbage directly to the City of Billings landfill. This week is alley cleanup week. The south side was picked up on Monday, the west side will be done on Wednesday, and the east side will be done on Thursday. o Financial plan for full-time paid fire chief and fire hall (Emelie Eaton) Emelie asked regarding the financial plan for a full-time paid fire chief. Mary Embleton explained that Miral Gamradt reviewed the administrative charges and the city's total financial picture. While doing so, he realized that the General Fund struggles with the restrictions that are mandated in Helena. Fire services are a General Fund function, along with police protection, administration, council, mayor, clerk/treasurer, parks, and cemetery. Miral came up with the idea of a rental charge for the use of the water and sewer lines in the city streets to assist in the General Fund functions, because the General Fund owns the streets and the water and sewer funds own the lines. The positive aspect is that it gives the city flexibility in the General Fund to be able to do things. Cities struggle to find money for parks, cemetery, fire, and police protection. Impact fees would be 4 Council Workshop Minutes of April 28, 2009 one way to do it, and this rental fee was in addition to that. Miral developed this to give flexibility, as was explained before the council adopted the rental fee allocation. The city is looking to the future and will probably be looking at a 2"d class city status soon. It is better to be proactive than reactive in dealing with this. Hence, coming forward with a paid fire chief will start that, as it is easier to evolve into something than to have it mandated and have to react. The city is looking to the future with the fire hall, too. Mayor Olson asked if the discrepancies in the audit helped with the current way the administrative charges were allocated. Mary stated that the current way the administrative charges were allocated used a figure of dispatch services in the mix in the formula. It was not a realistic percentage of their budget. To make it realistic, it would have shorted what the city was accustomed to receiving to help pay for administrative charges from water, sewer, garbage, streets and building codes. The rental fee will help make up the shortage and give flexibility to go forward. Emelie asked if there was enough money to pay a full-time fire chief at this time. Mary stated that there is enough money. Derek Yeager spoke regarding the new fire hall. The city has basically three options of preparing a timeline. He will prepare a general briefing sheet for the next council workshop. One option is the stimulus package that has been submitted. The second option is a grant that is forthcoming from FEMA. The Assistance to Firefighters' Grant Foundation is a branch of FEMA that deals specifically with firefighter and emergency service grants, and it is a $210 million nationwide competitive process with a $5 million cap on each project. Derek is preparing for the opportunity to apply for the grant when it is available next month. The third option would be to approach the public and request a mill levy. Derek and the ambulance service director, Jan Faught, are discussing ways to ensure the current plan will work for both services for the present and into the future. The floor plan is basically the same as previously proposed, with some minor changes for the ambulance service. Derek stated that it would be wise to consider utilizing volunteer services as much as possible in the future simply because there is the means to do so. Volunteers desire to continue to participate and be the primary service source. Therefore, the floor plan has not changed that much, except to facilitate the co- location with the medical service. If the city receives grant money or stimulus money or prepares to go back to the public, it would be Derek's desire to get several heads together to make sure the city has a solid plan. Other items Doug Poehls stated that Scotty Snowden can no longer serve on the Emergency Services Committee. The vacant position will be advertised in the newspaper. Mark Mace asked regarding the repairs on South First Avenue. Kurt walked the project last week with COP Construction and identified the areas that were deficient. The DOT helped identify what was acceptable and what needed to be repaired. The contractor cut out the asphalt section today and will put in flowable fill on Thursday or Friday and pave four inches over the top of it. The State of Montana says that will be acceptable to them prior to them milling and overlaying the street. There are some concrete and other asphalt issues on Southeast 4d' Street, and 5 Council Workshop Minutes of April 28, 2009 those issues are being addressed this week. Substantially, the project is complete and it is just the warranty work being done now. Three of the manholes in the inlets were not grouted properly and are being completed this week. The 2002 Turn Lane Project will be let in May and construction will begin in June or July. The curb, gutter, and sidewalk project on the west side of South First Avenue will be done this summer. Kurt and Sam are preparing the agreements for the landowners to sign to pay their portion of the 15 percent match for the 85 percent CTEP grant. Eleven parcels are included in the project. Kurt stated that the business owners are in favor of this project. Norm Stamper spoke regarding the city being proactive. He thinks that a lot of the city's past problems have been reactive. While reacting to one problem, another problem occurs and is addressed. The council brought in the Administrative Assistant and then the CAO, and there were questions and complaints about how to pay for those. That is a reasonable question for the citizens to ask. The council has to be held accountable and responsible for the money, but he thinks the foresight and proactive stance on the streets and the full-time fire chief is encouraging. Norm thinks this is a reaction to the passage of the city charter and having a chief administrative officer. Mayor Olson spoke regarding the street maintenance program. He stated that a plan was needed for the project, and the plan has been developed by staff and the city's professional engineer. He also stated that the council needs to accept the recommendation of the staff and engineer for the street maintenance project. To enter into a political arena with that would have been a mistake, and he hopes the council sees it in the same manner. Mayor Olson stated that the Department of Natural Resources and Conservation has a Renewable Resource Grant and Loan Program. James Caniglia spoke regarding the DNRC Renewable Resource Grant Loan Program Project Planning Grant Application. It is a no match grant to address the city dump that was in use in Riverside Park until 1955. The $25,000 grant would review the problem and how to fix the situation. The EPA recently did an analysis of the pollutants at the dump site, and James has a CD of the information. DEQ has indicated to James that Laurel is in a good position to get the grant. The EPA and DEQ have told the city that this is not a problem that must be fixed immediately, but DEQ said "it is likely that the DEQ will require cleanup of these wastes as well as stabilization of the bank to prevent further erosion at some point in time." If Laurel is required to address it immediately, the plan would be in place and the city would not have to pay for the plan. The city is being proactive and trying to get this situation addressed. The grant is due May I" and is available on a first-come, first served grant. Mayor Olson signed the grant application for James to submit. Mayor Olson spoke regarding correspondence for the stimulus package and the sewer project. Mary Embleton has been tracking the stimulus funding and the legislation involved with it. On last week's final listing, Laurel did not receive any funding for the water project. The ARRA money was awarded to projects that were quick and easy, basically replacement of distribution lines. Laurel made the last cut for the sewer project, with an award of just under $200,000 for a $2 million phase I project and $4 million for the second phase. She wondered if it was worth it to accept it. Mary explained that the DEQ sent a letter and needs to know by tomorrow whether Laurel will accept the money. There are some strings attached to stimulus money. Two of the main things that cause 6 Council Workshop Minutes of April 28, 2009 concern include the "Buy American" clause and the requirement to pay Davis-Bacon wages. Morrison-Maierle analyzed the cost to benefit ratio if the city accepted this small portion on this project. In talking with DEQ this morning, Mr. Abrahamson encouraged the city to accept it now. That would not obligate the city to accept it later, but will keep the options open. If some entities choose not to accept the funding, it would filter down to Laurel. A maximum of $750,000 was funded toward each project. Laurel received what was left after other entities got their share. Scott Murphy also had a conversation with Mr. Abrahamson today. He found out that Virginia City was awarded $750,000 for its $388,000 project. That was a mistake, and Laurel will immediately receive the difference. Mr. Abrahamson has not had great response from the communities on the list regarding accepting the money. For every community that does not accept the money, the difference will come to Laurel. Laurel could see at least $550,000 and up to the maximum of $750,000. That would make it worth it to accept it, even though there will be some cost increases by splitting up the project. Scott Murphy estimated a 2 to 3 percent increase overall on the portion of the project by splitting it. At this point, staff recommends that the city have the mayor sign this and send it tomorrow. There was further discussion regarding the maximum funding of $750,000, the Buy American issue, and principle forgiveness. Of the $750,000, about $390,700 would be grant money and the difference would be a low interest loan. The bottom line is that it equates to an overall ease of the burden on the ratepayers, who are the ones that pay for the projects. Mayor Olson will sign the document. Mayor Olson stated that the County Commissioners invited the City of Laurel to attend a joint meeting. Discussion items will include funding for the City-County Planning Board, funding for the Laurel Library, the proposed interchange west of Laurel, the fire hall building, fire districts and fire service areas. The date of the meeting will be confirmed soon. Mark asked that annexation of full streets also be discussed at the meeting. Other discussion items should be submitted soon. Mayor Olson stated that the Planning Board recommended denial of the annexation of Riverside Park. The issues need to be addressed and reviewed further. Review of draft council agenda for May 5, 2009 A motion authorizing the Mayor's signature on the letter from DEQ will be added to the council agenda under scheduled matters. Emelie asked if the public hearing would provide an opportunity for the public and the staff to present information regarding the annexation of the street right-of-way adjacent to 2057 East Maryland Lane. Staff will present the County's intent to remove the RSID from the property owner's taxes if the street is annexed. Sam stated that the property owner requested a meeting with the County Commissioners and the City of Laurel to review the issue. He said that the meeting would not be held prior to the public hearing, and a report would be given at a later time. Attendance at the May 5. 2009 council meetini All present will attend. 7 Council Workshop Minutes of April 28, 2009 Announcements Norm mentioned that the Cemetery Commission would meet on Wednesday, April 20', at 5:30 p.m. to review the cemetery regulations, policies and procedures. The council workshop adjourned at 8:02 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 CITY HALL 115 W. 1st sc. City of Laurel PUB WORKS: 6284796 PWD FAX: 628-2241 P 0. BOX 1? WATER OFFICE: 628-7431 WTR FAX: 628-2289 Laurel, Montana 59044 MAYOR: 628-8466 Quarterly Report as of March 315 2009 For Third Quarter Fiscal Year 2008-2009 9 M- T L Clerk/Treasurer DEPARTMENT Introduction: The third quarter financial reports for fiscal year 2008-2009 are provided herein. These reports compare the budget to actual revenues and expenditures. This report is intended to provide a quick overview of each fund's activity in comparison to the budget and amount of time elapsed since the fiscal year began. We are now at 75% of the year expired. Any funds showing revenues at more than 75% are better than projected. Any funds showing expenditures at less than 75% are better than projected. The following major funds are included: General Fund(*) Water Fund Street Maintenance Fund(*) Wastewater Fund Gas Tax Fund Solid Waste Fund It is important to remember that not all revenues and expenditures occur evenly throughout the year. This is especially true in those funds that receive their revenues from tax collections, designated above with (*). Taxes are collected in two large installments: taxes due in November are paid to the city in December, and taxes due in May are paid to the city in June. Cash reserves play an important role in these funds, as it is these reserves that allow the city to carry through the months when little or no revenue is received, yet monthly expenditures still occur. The city also has money invested in various institutions. The city is limited to investing in instruments that are backed by very secure assets. State law provides that acceptable securities include direct obligations of the United States, or instruments that are guaranteed by the United States, or their successors, or general obligation bonds of the state or of any county, city, school district, or other political subdivision of the state. The following is a list of the city's investments: Institution APY $ _ Term Montana Board of Investments 1.026% $5,000,000.00 month Western Security Bank 1.50% 100,000.00 month Yellowstone Bank 1,00% 1,693,504.75 month Avanta Federal Credit Union .45% 100,000.00 month SEG Federal Credit Union .45% 100,000.00 month Interest rates have gone from an average of 1.9% last year to around .89% this year. The city's operating cash is handled by Yellowstone Bank, and this money also earns interest (.25% APY) on an average balance of $504,602. Please refer to the financial charts attached to the March 31, 2009 Financial Reports, distributed on or before April 17, 2009, when reviewing this summary report. City of Laurel is an EEO Employer Equal Housing Opportunity Quarterly Report for 3" Quarter FY2009 presented at April 28, 2009 council workshop meeting GENERAL FUND(*): The total revenue for the General Fund as of 3/31/09 is $2,097,691, which is 65% of the budget. Included in this figure are three quarterly payments of FY'09 Entitlement revenues from HB124. The General Fund expenditures are at $2,307,318 or 66% of the budget. Therefore, revenues are exceeded by expenditures by $209,627. Last year, the deficit was $195,192 at the third quarter mark. The General Fund cash balance is $737,037 as of 3/31/09. STREET MAINTENANCE FUND(*): Revenues as of 3/31/09 for this fund are at 64% of budget for a total of $370,100. Expenditures for the same period are at $197,834 or 24% of budget. Revenues exceed expenditures by $172,266. The cash balance as of 3/31/09 is $610,330. GAS TAX FUND: This fund is utilized along with the Street Maintenance fund for street work. The annual revenue, received monthly, is determined by the state, based on the number of miles of streets and alleys within city limits. As of 3/31/09, a total of $97,758 or 74% of budget has been received. A total of $59,880 or 18% has been expended as of 3/31/09. Revenues exceeded expenditures by $37,878. The cash balance is $234,465. WATER FUND: Revenue for this fund totals $2,040,883 or 68% of budget as of 3/31/09. Expenditures so far this year total $2,637,693 or 51% of the budget. Revenues are exceeded by expenditures by $596,810. Operating cash had a balance of $206,925. Total loan to TIFD for the storm sewer project to date is $807,216. SEWER FUND: The Sewer fund has collected revenues at 17% of budget, or $1,021,474. The expenditures are at 22% of budget, or $1,382,057. These are well below the benchmark of 75% due to the Phase II project which was budgeted for both revenue and expenses this fiscal year. This project (plant improvements and lift stations replacement) will go to bid this fall. Revenues are exceeded by expenditures by $360,583. Operating cash balance is $627,906 as of 3/31/09. Total loan to TIFD for the storm sewer project to date is $538,144. GARBAGE FUND: As of 3/31/09, revenues total $539,535 or 78%ofbudget. Expenditures are at 38%ofbudget, or $335,583. This is due to the budgeted purchase of a new collection truck, which has not occurred this year as yet. Revenues exceeded expenditures by $203,952 as of 3/31/09.' The March 31, 2009 cash balance is $773,106. If you have any questions after reviewing this report, or any of the monthly financial statements, please feel free to call me at 628-7431 ext. 2. Respectfull submitted, Mary Embleton, CMC Clerk/Treasurer Quarterly Report for 3b Quarter FY2009 presented at April 28, 2009 council workshop meeting 2