Loading...
HomeMy WebLinkAboutCity Council Minutes 08.16.1994Minutes of the City Council of Laurel August 16, 1994 A regular meeting of the City Council of the City of Laurel, Montana, was held in the Council Chambers and called to order by Mayor Charles Rodgers at 7:00 p.m., on August 16, 1994. COUNCIL MEMBERS PRESENT: John Minch Albert Ehrlick Lonnie Kellogg Donna Kilpatrick Gay Easton Chuck Dickerson Ron Marshall (late) COUNCIL MEMBERS ABSENT: Bob Graham INVOCATION: Invocation was given by Alderman Kellogg. MINUTES: Motion by Alderman Ehrlick to approve the minutes of the regular meeting of August 2, 1994, as presented, seconded by Alderwoman Kilpatrick. Motion carried 6--0. Motion by Alderwoman Kilpatrick to approve the minutes of the meeting of August 8, 1994, as presented, seconded by Alderman Marshall. carried 6--0. special Motion CORRESPONDENCE: Received a letter from GeoResearch regarding omitted lab results of the Spring 1994 Assessment Monitoring at the landfill. Received a letter from Montana Department of Transportation regarding the 1996 State Transportation Improvement Program (STIP). They are seeking oral and written comments on the state's program improvements. Received a letter and agenda from the Montana League of Cities and Towns regarding the annual conference on October 5, 6, and 7 in Butte. CITY CLERK & CITY TREASURER'S FINANCIAL STATEMENTS: The City Clerk and City Treasurer's financial statements for the month of July were presented. Motion by Alderwoman Kilpatrick that the City financial statements for the month of July, 1994, Alderman Minch. Motion carried 6--0. Clerk and City be approved, Treasurer's seconded by JIM WORTHINGTON - SUBDIVISION PLAT AMENDMENT/INDUSTRIAL PARK: Jim Worthington, representing SEC Federal Credit Union, spoke regarding a subdivision plat amendment in Laurel Industrial Park~ Lot 6, Block 1. This lot is located in the area of Southeast 4th Street and the south end of Washington Avenue. Jim stated the plat is to divide the existing lot into two tracts, one piece being 3/4 of an acre and the other being 1 1/4 acres. SEG Credit Union would like to develop new office space on Tract 5A and sell Tract 5B. Regarding improvements to the property, Jim said both water and sewer main lines are located on both streets and Lot 5B is served by water and sewer. This lot is also served by power~ gas and telephone services. The property is zoned highway commercial. Jim stated that the plat was presented to the Planning Board last week and the board recommends that the plat be accepted as submitted. Jim said this is a minor plat and it will come back to the council next month for final plat approval. In regards to a question about off street parking, Jim said he has not actually seen the drawing plans, but they are well aware of the city requirements for off-street parking and they feel there would be sufficient parking for any future expansion. It was stated that they will have a drive through window and a lot of the traffic will be handled through the window. Minutes of the City Council of Laurel Page 2 Council Meeting of August 16, 1994 In regard to a question of whether or not the council needs to take any action on this, Cal Cumin stated that the counci'l needs to either approve the plat subject to the conditions of the plat or deny it. Motion by Alderman Kellogg to approve the subdivision plat amendment for Laurel Industrial Park, Lot 5, Block 1, seconded by Alderman Marshall. Motion carried 6--0. At this time~ Chuck Dickerson came to the meeting. WATER SYSTEM LOAN GRANT APPLICATION - BARBARA CAMPBELL: Barbara Campbell, representing Double Tree, Inc., stated they drafted a capital improvements plan and presented it to the committee last Thursday. There are a few corrections to be made but it is close to being finalized. When this is done, it will be brought to the council for approval. Barbara said her reason for being here tonight is to talk to the council about water project improvements at the treatment plant. Double Tree has been in contact with the Water Quality Bureau regarding the pending administrative order on the plant. The city will be receiving an administrative order from the Water Quality Bureau in the near future. Double Tree is in contact with them and keeping them abreast of things that are happening. Tonight Barb said she is presenting a funding package that will work for this particular project. The preliminary engineering report indicates a 2.1 million dollar project to complete the needed improvements to the clear well. Since the city does not have an engineer on board, Double Tree is using these numbers to prepare preliminary applications to Farmers Home Administration. Barb explained the Farmers Home Administration program and stated Laurel is a grant eligible community. She asked Farmers Home to run a analysis on what level of grants we can receive on a project this size. They will award us between $ 830~000.00 and $ 860,000.00 in grant funds. But, before we could get the grant funds, we would have to incur a debt of 1.4 million plus dollars. They will not give us the grant money unless we dig in our pockets and take on the most amount of debt that they figure we can carry on our system. Barb said the way they figure the amount of debt that Laurel can carry is that they look at the median household income in Laurel, they look at the number of users that we have, whether or not we have existing debt on our system and we do not, what our operation and maintenance are, and what our overall costs are. They back into the amount of the loan and they fix our user rates based on the loan amount. Barb stated that if for some reason the cost would be lower than the estimate, the city would still have to incur the same level of debt and the grant amount would be reduced. You can never reduce your amount of debt. Barb passed out a summary of the project and said that later they will need a motion authorizing the Mayor to begin the paperwork and they will include this summary with the preliminary application to Farmers Home. The motivation to proceed now is that we have an administrative order pending and now is the end of the Farmers Home spending cycle. They receive their new fiscal year money the first of October. If we get the paperwork finalized by that time~ then we would be one of the first ones with our hand out. Barb said she knows that there will be two applications ahead of us. If for some reason the s'tate allocation is exhausted, we would then go into the national pool for funding. The very earliest Laurel could receive funding would be this fall or next spring. Barb said Farm Home works its rate structure on equivalent dwelling users. At an average residential house, the customer uses between 9-10 thousand gallons a month. If you have a nursing home, they may have 20 equivalent dwelling users and a single elderly person that lives alone in a small house may be less than one equivalent dwelling users. The average equivalent dwelling user will pay $ 25.00 per month for just water. Double Tree will set up and propose a rate structure to Farm Home where we may have a base rate of approximately $ 15.00 for six thousand gallons of water and for every thousand gallons above that, the customer will be charged in increments of $ 1.50 or so. This rate structure is proposed to Farm Home, presented to the state and the council needs to approve it. Minutes of the City Council of Laurel Page 3 Council Meeting of August 16~ 1994 Barb said funding through Farm Home is the best deal that we can get right now for financing this project. The time l~mit on this is 40 years at 5.125% interest. The other option is to go straight revenue bond sales. You would have to take the whole project size, which is over 2 million dollars, on a 20 year maximum length issue. Barb said the Farm Home grant is a lot more grant money than she thought Laurel would get. This is a big grant allocation for Farm Home, at this level. This will be one of the biggest in the state~ that she knows of. Lonnie asked what will happen if there are a lot of change orders like there were on the sewer plant project? Barb said one of the good things about Farm Home is that their engineers review the plans. It may be that we would have change orders, but Farm Home would work with us to try and keep the rate level for equivalent dwelling users to $ 25.00. They may expand the grant portion of our money. Double Tree has never had them come back and increase the loan portion. Barb said you may find that it comes in less because engineers typically estimate high and the bids come in at a lower figure. If this happens, it would reduce the grant amount, not the loan amount. Barb said that if something happened in Laurel and we lost a lot of our customers, Farm Home would come in~ reevaluate our rate structure and would forgive part of our debt to get us in a level that we can pay. Barb said there has only been one instance in the history of the program where they have had to forgive part of a loan because they could not pay. The Mayor stated that we need to do something because if we don't start meeting the dates, we could be in for some excessive fines. Barb said they have been called into a community where they are in a fine situation and at this point~ they did have to negotiate the fine. They can levy up to $ 10,000.00 a day in fines and they have this legal right. In response to a question, Barb said authorizing Double Tree to proceed with Mayor to sign the necessary documents. she needs a motion from the council the application and to authorize the Motion by Alderman Marshall to authorize Double Tree, Inc. to proceed with the application and to authorize the Mayor to sign the necessary documents, seconded by Alderman Ehrlick. Joe Leckie asked, in terms of signing, if this commits us or can the city back out at any time. Barb said we can back out up until we have expended their money. Barb explained the procedure that is required to obtain these funds. She said we cannot pay any invoices on this project without going through Double Tree and Farm Home. They will not reimburse us for any costs that they have not previously approved. It was stated that the user rates are set after construction is over and the project is completed. If we get an obligation of funds this fall, we could be under construction this spring. The proposal for the rate structure is in place earlier, but you do not actually raise the rates until construction is completed. Barb said that for something like this, we do not have to hold hearings before the PSC, even though the increase would be over 12%. Montana law provides that local governments who incur a debt to make an improvement to a water/sewer system, do not have to take it to the Public Service Commission for hearings. We do, however, have to notify them and the Lieutenant Governor's Office. Barb said Farm Home requires that they be paid monthly. you hold back some reserve every month in case you are This would be a loan through Farm Home but they secure They may or may not sell them on the secondary market. They also require that short at any given time. it through revenue bonds. When Double Tree is ready to do the full application, they ask the bond counsel for a preliminary bond opinion. Minutes of the City Council Page 4 Council Meeting of August 16, 1994 of Laurel More discussion about the rate structure and Barb stated that if the city should need a rate increase to help meet the budget, we can still, by law, increase it to a maximum of 12%. Barb suggested that if there are problems with our rate structure, now is the time to look at it and fix it so we can cover ourselves better. We should be able to accumulate a set amount of reserve and they have a formula for doing this. Barb said that if Laurel, at any given time, users, we can prepay these loans. has a significant increase in Barb said she would like to see the office co~vert to usage measured in thousands of gallons instead of hundreds of cubic feet, but they will c6~ert it to whatever they have to. It was stated that our computer program requires that we use water measured in hundreds of cubic feet. At this time a vote was taken on the motion. Motion carried 7--0. ENCROACHMENT PERMIT - COAST TO COAST: This item was tabled until the September AMENDING ORDINANCE - CIVIL DEFENSE PLAN: This item was tabled until SALARY OF CITY JUDGE: the September 6th council meeting. 6th council meeting. ORDINANCE NO. O94-19 (first reading} SALARY OF THE CITY JUDGE Motion by Alderman Marshall that Ordinance No. 094-19 (first reading} be passed and adopted, seconded by Alderman Easton. A roll call vote was taken and all aldermen present voted, "YES" except Alderman Minch and Ehrlick who voted, "NO". Motion carried 6--2. ESTABLISHING VOLUNTEER AMBULANCE COMPENSATION: RESOLUTION NO. R94-41 ESTABLISHING VOLUNTEER AMBULANCE SERVICE COMPENSATION Motion by Alderman Kellogg that Resolution No. R94-41 be passed and adopted, seconded by Alderman Minch. Motion carried 7--0. JOB DESCRIPTION - DIRECTOR OF PUBLIC WORKS & ASSISTANT DPW: ORDINANCE NO. O94-1-~ (second reading) AMENDING SECTION 2.48.020 OF THE LAUREL MUNICIPAL CODE, JOB DESCRIPTION FOR THE DIRECTOR OF PUBLIC WORKS Public Hearing: No comments. Notion by Alderman Kellogg to close the public hearing, seconded by Alderman Ehrlick. Motion carried 7--0. Motion by Alderman Ehrlick that Ordinance No. O94-17 (second reading} be passed and adopted, seconded by Alderwoman Kilpatrick. A roll call vote was taken and all aldermen present voted, "YES'~. Motion carried 7--0. ORDINANCE NO. O94-~q~ (second reading} AMENDING SECTION 2.62.020 OF THE LAUREL MUNICIPAL CODE, JOB DESCRIPTION FOR THE ASSISTANT DIRECTOR OF PUBLIC WORKS Public Hearing: No comments. Motion by Alderman Marshall to close the public hearing, seconded by Alderman Dickerson. Motion carried 7--0. Minutes of the City Council of Laurel Page 5 Council Meeting of August.16, 1994 Motion by Alderman Dickerson that Ordinance No. O94-18 (second reading} be passed and adopted, seconded by Alderwoman Kilpatrick. A roll call vote was taken and all aldermen present voted, "YES". Motion carried 7--0. COMMITTEE REPORTS: --Budget/Finance Committee minutes of August 2, 1994 were presented and reviewed. Motion b~v Alderwoman Kilpatrick minutes of August 2, 1994, into the Motion carried 7--01 to enter the Budget/Finance Committee record, seconded by Alderman Ehrlick. --~et/~nance Committee minutes of August 16, 1994 were presented and reviewed. Motion bx Alderwoman Kilpatrick minutes of August 16, 1994, into the Motion carried 7--0. to enter the Budget/Finance record, seconded by Alderman Committee Marshall. --City Council Committee of the Whole minutes of August 2, 1994 were presented. Motion by Alderman Marshall to enter the City Council Committee of the Whole minutes of August 2, 1994, into the record, seconded by Alderwoman Kilpatrick. Motion carried 7--0. --City-County Planning Board minutes of August 11, 1994 were presented and reviewed. Motion by Alderman Ehrlick to enter the City-County Planning Board of August Il, 1994~ into the record, seconded by Alderman Marshall. carried 7--0. minutes Motion --Public Utilities Committee minutes of August 10, 1994 were presented and reviewed. Motion by Alderman Marshall to of August 10, 1994, into the record, 7--0. enter the Public Utilities Committee minutes seconded by Alderman Minch. Motion carried In regard to the drying beds, the Mayor stated that he is still waiting to hear from one person. The others contacted are not interested, COMMENTS FROM THE AUDIENCE: GARDEN CLUB - HELP NEEDED Gail Brice, on behalf of the Laurel Garden Club, stated that the club has spent a lot of time, beautification projects for the city. spoke to the council. She money and energy in doing Gail stated the club put in the honeysuckle hedge in Firemen's Park and trees around the shelter in Thomson Park. When they planted the trees, they were assured that the trees would indeed be watered by the city and there was irrigation put in along the hedge. The trees in Thomson Park are very stressed from the frost and other conditions and they are not receiving the water they need. Gail said these trees, along with a lot of the large trees, are dying. The irrigation for the hedge in Firemen's Park has not worked properly for some time. Gall said they have come before Mr. Worthington and the Parks Committee several times regarding this and the club was even willing to pay for piping and they were told this was not necessary, it would be done. Gail said she is here tonight to make the council aware of the problems. In looking through their books since 1986, the Garden Club has spent a few dollars short of $ 4,000.00 on plantings, shrubs and trees or pruning. This does not include the countless hours that are spent planting, weeding and taking care of the plants. She said the group Js tired of knocking their heads against a wall. They desperately need cooperation and need to see that something is being done by the city to help preserve what they are doing. They don't want to put their time and effort into fruitless projects. Minutes of the City Council Page 6 Council Meeting of August 16, 1994 of Laurel The Mayor thanked Gall for coming forward and commended the group for the marvelous job they have done in beautifying our parks. He stated he was not aware that we are not getting enough water to the trees in the park. In regard to the irrigation system in Fireman's Park, Chuck said it is scheduled to be moved out from the hedge this fail. He said we only have two people in the parks department and they have a lot of ground to cover. Gall said she understands this but the trees don't care if there are two or ten, if they don't get the water, they will be dead. The trees need the help now! Chuck stated that we budgeted for a complete sprinkler system for Firemen's Park and hope to be able to put it in this fall. More discussion and it was stated that whenever portable pipes are laid for watering, the water is not reaching the hedge. Edna Schwenneker inquired whether'the portable pipe could be laid by the hedge periodically and really soak it to relieve the stress until the irrigation project can be completed. Alderman Minch will relay the message to Bill Feller tomorrow. SIGN OUT POLICY & PROCEDURE MANUAL Ron Marshall stated there was a lot of time and expense put into the policy and procedures manual. This will be passed out to all employees of the city and he feels that everyone should sign for it. When the time comes that they would not be reelected or would terminate employment~ the book should be returned. Ron also suggested that a monetary value should be placed on it and if it is not returned by the last day of work, hold the money, say $ 25.00, out of the last paycheck or hold the whole paycheck until it is returned. The Mayor stated Ron made a good point and thanked him for bringing it up. COMMUNITY SERVICE & MINORS Chuck Dickerson stated that, in the past, minors who have had infractions the law were required to do community service. This was kind of done away because the police officers did not have the time to supervise the kids. with with Chuck feels there are a lot of things that the kids are getting out of and it is just getting passed off. He was wondering if the council members could start a program where each one could donate two hours a month of their time to help supervise these youths. A schedule could be set up with the judge so he could schedule the kids during the hours that the council members have available. In regard to a question about liability, Chuck said the kids are restricted to certain types of activities and he doesn't feel there would be a problem. Other council members said that even in the simplest type of jobs, could happen. something Joe Leckie said that these individuals, working in non-compensated type jobs, are still considered employees for worker's compensation purposes and are covered. If the city sponsored the program, the city's worker's comp. program would have to cover them. In regard to how the Beta Alternative program is run, Joe said he is not sure and this would have to be checked into. Edna Schwenneker commented that in the past the Garden Club participated in this program but the youth got to the point where they were telling them when they would come and what time they would come. Edna feels that if they are in trouble and need to work off a fine, they should not be able to do it at their convenience, but rather at the convenience of the person supervising them. The Mayor asked the council to think about it and get whatever information they can and it can be discussed at the next meeting. John Minch commented that he has two children of his own and it would be hard to give up time with them to take on someone else's kids. APPOINTMENTS Page 7 Council Meeting of August 16, 1994 Minutes of the City Council of Laurel The Mayor stated that Marvin Carter is a member of the Beartooth Resource Conservation and Development Area and he has agreed to serve for another year. Motion by Alderman Marshal] to confirm the Mayor's appointment of Marvin Carter to the Beartooth Resource Conservation and Development Area for a one year term, seconded by Alderwoman Kilpatrick. Motion carried ?--0. The Mayor appointed Marvin Carter to the Board of Adjustments for another year. Motion by Alderman Dickerson to Carter to the Board of Adjustment's Marshall. Motion carried 7--0. confirm the Mayor's appointment of Marvin for a one year term, seconded by Alderman The Police Commission has conducted interviews for the relief dispatcher part-time patrolman position. They are recommending that Mitchell Conners be hired, contingent upon successfully completing a background check, psychological evaluation and a physical exam. It was stated that he already has his police schooling but he does need some update on Montana law enforcement, which would be about a week long class. Motion by Alderman Ehrlick to accept the Police Commission's recommendation to hire Mitchell Connors as relief dispatcher/part-time patrolman contingent upon successfully completing a background check, psychological evaluation and a physical exam, seconded by Alderman Marshall. Motion carried 7--0. The Mayor stated he received a letter from Cheryl Marshall stating she wished to step down as Director of the Laurel Volunteer Ambulance and will be resigning from the service as well. Motion by Alderman Ehrlick to accept the resignation of Cheryl Marshall as Ambulance Director, seconded by Alderwoman Kilpatrick. Motion carried 7--0. This issue was referred to the Ambulance Committee for further action. MAYOR'S COMMENTS: The Mayor stated he needs one or two councilmen to meet with him and Jim Kaercher of HKM to discuss the water treatment project. They will meet at noon tomorrow at the Locomotive. Ron Marshall and Gay Easton volunteered to attend the meeting. The Mayor stated he received a 13 page fax from GeoResearch just prior to the council meeting. The council discussed the drilling, monitoring, and testing that is being required and deadlines that the state has given us. There being no further business to come before the council at this time, the meeting was adjourned at 8:30 p.m. Sharon Herman, Deputy City Clerk Approved by the Mayor and passed by the city council of the city of Laurel, Montana, this 6th day of September, 1994. Charles Rodgers, Maior~ ATTEST: Donald L. Hackmann, City Clerk