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HomeMy WebLinkAboutCity Council Minutes 02.02.1982Minutes of the City CounCil of LaUrel February 2, 1982 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 Albert Ehrlick at 7:02 p~m., on February 2, 1982. COUNCIL MEMBERS PRESENT: Lonnie Kellogg Bill Brennan Marvin Carter Susan Carter Duane Behm Terry Fink Donald Meyers Bob Gauthier COUNCIL MEMBERS ABSENT: none MINUTES: Motion by Alderman accept the minutes of the regular meeting of seconded by Alderman Brennan. Carried. Behm to January 1'9, 1982, as presented, CORRESPONDENCE: Received the minutes of the meeting of the Interlocal Coopera- tion Commission of January 20, 1982, and the agenda for their meeting on February 3, 19B2. Received a letter from T..Curtis McKenzie, City Engineer, announcing his retirement and that his last day of work will be June 14, 1982. Received a letter of resignation from Richard A. Metzger, Maintenance Director, stating that he will retire effective March 31, 1982. CLAIMS: A copy of the "Statement of Items Released for Payment" for the January claims was presented to the Council for review and approval. Motion by Alderman Gauthier to approve the January claims as presented, seconded by Alderman Fink. Carried. MIKE BLOOM: On the 16th of January, I received a written request from Sgt. Don Lenhardt from the Laurel Police Department. This letter was in reference to a possible grievance that Sgt. Lenhardt feels he has with some scheduling within the structure of the Police Department. On the 20th of January I discussed this with the Mayor and City Attorney, and I would recommend to the Council, as per Sgt. Lenhardt's request, that the Police Committee be advised and Sgt. Lenhardt be allowed to contact the committee with reference to this potential problem. The Mayor~ without any objection from the Council, turned this matter over to the Police Committee for a recommendation. LONNIE KELLOGG - EPA GRANT: We are putting in a new sewer plant, and two gas lines have to be moved. Jim Kaercher of HKM Associates pointed out that Continental and MDU gas lines need to be relocated before construction can begin on the new wastewater treatment plant. If it does not get done this summer, it will delay construc- tion for several months because MDU will only move their line in the summer. Conoco is in the same position. What I am suggesting to the City is that they go ahead and relocate those lines under a force account during the summer. I have talked to the State, and they say we can do this under a force account, but we will have to answer four questions. We will have to show justification for picking one contractor, which is easy for a utility because they won't let anyone else work on their lines. The EPA will reimburse the City at 75% of the contract. Discussion. page 2 Minutes of the City Council of Laurel RESOLUTION NO. 1895 AUTHORIZATION TO RELOCATE MONTANA DAKOTA UTILITIES PIPELINE AND CONTINENTAL PIPELINE COMPANY PIPELINE ON THE NEW WASTEWATER TREATMENT PLANT SITE UNDER STEP III OF E.P.A. FUNDING NO. C300235940. Motion by Alderman Fink that Resolution No. 1895 ib~ passed and adopted, seconded by Alderman Brennan. Carried. AIRPORT AUTHORITY: The Airport Authority would like to apply for assistance in airport road construction as set forth in Section 67-10-211 MCA which states: The department of highways may~ upon written application of the governing body of a municipality, assist the municipality in the location, establishment, construction~ reconstruction, maintenance, and improvement of highways and roads to and from municipal airports and field development of them. The department of highways shall lend its equipment, machinery~ technical services, and supervision to the municipality, under agreements made with each municipality. RESOLUTION NO. 1896 AUTHORIZING THE AIRPORT AUTHORITY TO APPLY FOR SERVICES AS SET FORTH IN SECTION 67-10-211 MCA, ASSISTANCE IN AIRPORT ROAD CONSTRUCTION -- DEPARTMENT OF HIGHWAYS. Motion by Alderman Brennan that Resolution No. 1895 be passed and adopted, seconded by Alderman Meyers. Carried. ORV WILMOT - WIDJAC CORPORATION: Mr. Wilmot presented and reviewed the rate study which he conducted in October, 1981. Terry Fink When you were hired to do this survey was there anything said about inequities in the rates? Some people paying not enough and some people too much based on usage? Orr Wilmot This was certainly discussed and the difficult thing is that this was the first thing that struck me as where an adjustment should be made. Then when I got into ~t and out on the routes and saw what the rate structures were, its pretty difficult when you've got three or four people sharing a con- tainer and there are a few inequities, but on an overall area these are in a minority and it seemed to me it was difficult to make the concession without disrupting the whole overall program. The only way to overcome this would be to issue an individual container to each one of them. Terry Fink But what I am getting at is that you were just to evaluate the garbage system, not go out and make sure that John Doe is paying his fair share. Orr Wilmot I felt that there was certainly no rules and regulations spelled out as to what I was supposed to do. I was to give an impartial evaluation of your present system and this is what I have intended to do. My first inclination was to get into restructuring a whole new program and then I saw the fact that you were operating under very good conditions with very few inequities in your program. Why disturb something that is working well? In my estimation you have a good program and I don't think the inequities are out of bounds. If you have a barbershop paying $7.00 a month, that certainly is not excessive. page 3 Minutes of the City Council of Laurel Terry Fink I mean the bigger ones. The have one paying less now than before we he is not paying enough, but why should to complain are the ones that feel they have a good system too. barbershop is paying the minimum. We increased the rate, and he knows that he complain. Only ones that are going are paying too much. I feel that we Orv Wilmot In this whole spread the ratio seems to be very equal. I couldn!t find anyone that stood out. Now, maybe you have knowledge that I don't know or didn't see. Some of those increased were very strong. There is only one way to do this. If you are going to go back to that individual usage deal then you have got to go in there and distribute containers to everybody -- no sharing of containers and they will all be charged on a per pick up basis and a container cost. That is the most equitable way. Everybody is paying for his own container. But when doing this the City is faced with restructuring the whole program involving the expense of another $15,000 to $20,000 in containers and holding public hearings. I would be happy to discuss it with you in detail checking out further any pertinent cases. Terry Fink I Wish that I knew you were doing the survey, because I would have liked to got with you; and I would like to get with you before you leave. Lonnie Kellogg What is the rate based on after you have done the whole survey? How are we basing the rates? Usage, volume or both? Orv Wilmot Your original rate structure was set up on a combination based on volume and usage. In checking I found that in the majority of the cases that it was very well done and pretty well received. There is going to be some in- equities. Duane Behm He is making reference, Lonnie, to the survey I made for a we~k back in March or April of 1980 when I rode the truck and looked in each con- tainer before the operator picked it up. Where some of them are sharing you can't really determine how much you put in or someone else. But in a lot of the commercial area you can~ because they have their ownc~nta£ne~s or_ sometimes two or three and on up to five and six. He had that survey made available to him and he rode the truck himself while he was here and compared my notes to what he saw. Orv Wilmot I did that. You may have reference to maybe two or three instances. My point was that I felt the system was working well the way it was, except that there wasn't an equal spread between cost factors. Your eost factors were greater in the commercial area than the charges.Your time studies show that you spend more time collecting commercial waste than residential. T.erry Fink What I am getting at is that somebody is paying too much and some- body is not paying enough. It would probably equal out anyway and I think we have a good garbage system but that was the problem we had was setting these rates up. That was the reason I thought the survey was going to be for was riding the truck for a month in the commercial district, seeing how much each store generates, then figure out how much each one is to be charged. Then once you get the rates set and if you have to go up 68%, that's all right. But what I have been after for a year and a half is to get the rates set up to where they are fair to everybody. Orr Wilmot Then you are going to have to go back to individual usage. There is no way that you can use the shared program like you're doing and get the length out of it and have it 100% equal, because you're resting upon the judgement of a committee or someone on an individual how much does he use something. page 4 Minutes of the City Council of Laurel You can't say this guy throws in 30 gallons and this other guy throws in 60 gallons and this guy throws in 5. Terry Fink The minimum these people share one container and they pay the minimum. But these big outfits~ there is ~no reason why we couldn't figure out how much a big grocery store is generating. He should be set aside from the other ones and figured out on usage, because he generates a lot of garbage. Duane Behm Terry~ and a half ago. Terry Fink That's I think I went through that whole thing with you a year right and you never showed me nothing. Duane Behm Well, I suggest that we cQntact the chamber and have each business bag their garbage and you ride the truck for a week or two and each business mark their bags and you take your survey and see what they do contribute. Orv Wilmot What you are looking at is the actual time involved with that truck pulling in and dumping a container. I was interested ~n how long it spent at Safeway and where your big groups were. Those containers are placed in a very advantageous location -- they are placed right. The truck swings in, picks those up and is out of there in a reduced time. He could p±ck up one more container in another 30 seconds. His actual dumping time was from lB to 20 seconds on the gruncher. He is a good operator. He was moving right down there, especially those big spots. Your people have worked to get those containers placed well.. I think that with the number of containers they have and with him coming in and out of there that it seems to me that the distribu- tion is pretty accurate. You have done a good job placing your containers around town. You've got a good efficient system. My first remark when I came here and met with the committee was, before I had ever heard of the time that was spent on how you come up with this formula was well, it's diffieult because what you are doing is using a person's analysis of the volume. So consequently there is always an area of argument when you get into a situation like that. My first recommendation was that it didn't seem like the way to do it. I spent half a day going over it. Then I went out On the routes and I was amazed on how well it was done. I am not trying to give accolades to Duane, Dick, or anyone else, but that's the cold hard facts. I wasn't going to come in here and ride the truck BO days for $2,000.00 and I felt with the information you had, and you have a wealth of information, you had about $5,000 to $10,000 worth of work that somebody had put in on this thing. They had put in a lot of time, the breakdowns were all there, and I authenticated that information. I was satisfied that it was good. One of the things I would do, Terry, if you are concerned about equality of the larger areas~ is to run a time control on those, and break it out that way. It would be very easy to do. Terry Fink You mean I ~hould go and run a survey of my own? Orr Wilmot Not necessarily. You've only got four or five offenders. It would just take BO minutes to run a time study. Terry Fink Then bring it back to the Garbage Committee? They aren't going to take my word. I've tried that before. Orv Wilmot OK After the meeting you tell me who they are and I will do it. page 5 Minutes of the City Council of Laurel Mr. Wilmot stated that the automated system is moving very rapidly and probably within the next decade you will see 80 to 90 percent automated. What's happening in the automated system is the fact that it's reduced your industrial insurance claims to practically nothing. Don Meyers How many cities our size are going to private haulers and getting rid of the whole works? Orr Wilmot There is a general trend to seek information on the private haulers. There are a lot of different ways the cities can do this. A question was asked, "How do the rates compare?" Orv Wilmot I live in Juanita, Washington, and I pay $6.50 a month on a 30- gailon can emptied once a week. The lowest rate in the whole area is $5.50. Then it's usually $1.50 more for each additional container. Your people have on an average of 75 to 100 gallons of usage, twice a week. The cost factors are there. Another factor is the cost of disposal. Some cities are running $30 a ton disposal costs. Each household produces about a ton of garbage a year. So $30 to $35 a ton for disposal is another $3.00 a month for disposal without any collection. Don Meyers Do other cities keep their dump manned all day 8 hours a day? Orr Wilmot I think that all landfills should pay for themselves. The people that use it should have to pay for that facility. There are different types- of rules and regulations. This is something you could look at, by setting certain hours. A good time to have it open is on Saturdays for at least 4--6 hours. For years the cities have been assuming the costs of landfills and they weren't paying their own way. You would have no problem cutting back in some of those areas. We have to pay for the services that we enjoy. There is just no other way. I think you should give some serious thought to once a week collection on residences. In the five-state area that we work in, we don't have one city that collects garbage more than once a week except Laurel. What you have to do is add a few more containers. You have two different things to face here. One is to equalize that collection rate and to go into a program of conservation. How do you hold that budget line? Motion by Alderman Marvin Carter to accept Orv Wilmot's report and turn it over to the Garbage Committee, seconded by Alderwoman Sue Carter. Carried. Orr Wilmot presented his report on the incinerator and steam generation plant. The first thing that every jurisdiction has to consider when they are talking about disposal is what are the economic values. Why are we looking at this? The cheapest way to get rid of garbage is dump it on the ground and cover it up. The only thing, is that over the past years things are changing. We are running into leasing problems, landfill acreage is harder to obtain and land is becoming restrictive. In order for us to do an economic analysis we had to take a look at what the advantages and disadvantages would be at looking at an alternate incineration and the sale of the energy~ ~ .~ Every ton of garbage is equal to the heating value of 64 gallons of fuel oil. Every ton of garbage will produce 6,000 pounds of steam and produce 450 KW of electricity. page 6 Minutes of the CitY Council of Laurel We talked to the tank company and Cenex to establish whether or not we could sell any steam if we did generate it. We were met very graciously with the refinery. Mr. Wilmot talked about the plant which is about ready to open in Livingston. Don Meyers asked how close the plant should be located to the user. Orv Wilmot said that in Pocatello, Idaho, they are running 1,800 feet and Livingston' we're running about 1,500 feet; Burley, Idaho, about 1,500 feet. You can push that steam a long ways. You have a friction loss, so it may increase the size of the line. Mr. Wilmot reviewed his cost figures which he presented in a written report. Yellowstone County was contacted to see what their disposable situation is and I find that they are pretty wei1 insulated with day-to-day costs. Some- thing is going to happen in Billings, either they are going to go into an incinerator program or do something with their landfill. Information was presented from a construction company who would be interested in building the facilities and picking either an operating position or a lease baok to the city providing all of the funding for the whole package and also the operation. If you were to pursue that method, what the city would probably do is probably form an energy recovery company, like Park County did, and then you would enter into a contract where they would guarantee to dispose of your garbage. After we establish whether or not we want to go into phase II and really bear down on this thing and get the signed committments from the steam users, power buyers and financing people and a signed guarantee that the manufacturers will furnish the equipment, we're at the point to make a final decision. But prior to that time we would certainly want to visit some ongoing plants. If Laurel was of the intent to go ahead on this, we would ask then to sign a contract with us going through phase II. At the end of phase II, we would have phase III and phase IV, which is putting it out for bid and then con- struction. The time table on this usually runs 18 months to 2 years, depending on the funding. JIM NEALY, sanitarian with the City/County Health Department reported on the garbage situation with the county and the attempt to establish the solid waste district county wide (a letter was received regarding this district and entered into the record 12/1/81 and also referred to the Garbage Committee}. This district is for disposal only, not collection. There was discussion by the Garbage Committee present and the City Council of whether we should participate in the proposed county-wide disposal district. Mr. Nealy indicated that Laurel would still maintain their own collection system and landfill. It was determined that there wouldn't be any advantage for Laurel to belong to this disposal district. Motion by Alderman Marvin Carter to keep and maintain our present garbage system and not to participate in the proposed county-wide disposal district, seconded by Alderman Kellogg. Carried. Motion by Alderman Marvin Carter that when supervisors sit on committees, they also have voting powers on that committee, seconded by Alderman Brennan. Carried. page 7 Minutes of the City CoUncil of Laurel TERRY FINK PARK AND RECREATION COMMITTEE: Motion by Alderman Fink to enter into the record, the Park & Recreation Committee minutes of January 27, 1982, seconded by Alderman Kellogg. Carried. Discussion regarding ice skating rinks. CURT McKENZIE - INSURANCE COMMITTEE: If we go out to bid again, the specifi- cations need to be reviewed. It was indicated by the agents involved with last years bid, that the City would be money ahead if we stayed with last years bid and just adjust it by the underwriter's quote. If the quote were too high, then go out for bid. Don Meyers indieated that we aren't tied with anything for three years with these people. If the rate went up too much, we could just advertise again. There is no insurance company that is going to give you a three-year policy for the price. Motion by Alderman Meyers to take Curt's recommendation of waiting until we see how much the rates will increase when notified in March, then review the situation before making a decision, seconded by Alderman Gauthier. Carried. BOB GAUTHIER FINANCE COMMITTEE: The committee met today to review the claims and also received a copy of 'the mid-year review of the budget. A copy is available for council members if they would like one. MAYOR'S COMMENTS: Reminded the council of a.special meeting on February 9th regarding the floodplain. Don Meyers requested a council meeting as a committtee as a whole before the council meeting on February 16th. The mayor announced the appointment of Hal Dantic to the Folice Committee, instead of the Public Buildings Committee, Ken Olson, Jr. to the Fire Committee and Curt Riemann to the Garbage Committee. Motion by Alderman Meyers to approve the above mentioned appointments, seconded by Alderman Brennan. Carried. Bob Gauthier requested that the Finance Committee and the Budget Committee be combined. Motion by Alderman Meyers that the Budget and Finance Committees be com- bined into one committee, seconded by Alderman Marvin Carter. Carried. There being no further business to come before the Council at this time, the meeting was adjourned at 9:0~ ~ld~L~ Ha~km~~~DO~na~ Approved by the Mayor and passed by the City Council of the City of Laurel, Montana, this I6th day of February, 1982. Alb~ert S. Ehr]~iek, Mayor