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HomeMy WebLinkAboutCouncil Workshop Minutes 05.25.2010 MINUTES COUNCIL WORKSHOP MAY 25, 2010 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 May 25, 2010. COUNCIL MEMBERS PRESENT: _x Emelie Eaton _x_ Doug Poehls x_ Kate Hart _x_ Mark Mace Chuck Rodgers _x Chuck Dickerson _x Alex Wilkins Norm Stamper OTHERS PRESENT: Sam Painter James Caniglia Kurt Markegard Rick Musson Derek Yeager Public Input (three - minute limit): Citizens may address the Council regarding any item of City business not on the agenda. The duration for an individual speaking under Public Input is limited to three minutes. While all comments are welcome, the Council will not take action on any item not on the agenda. There was none. General items: • Appointment to the Laurel Urban Renewal Agency: o Aletta Zimmerman as Advisory Member for term ending December 31, 2013 The appointment will be on the June 1 council agenda. Public Works Department: • MDT — Update on the 8 Avenue project Kurt Markegard stated that the installation of water, sewer and storm water lines is progressing, along with the curb, gutter and sidewalk. Mike Taylor should be available to give an update at the next council workshop. The contractors are currently working at the intersection of West 2 and 8 Avenue, and paving of the first two blocks should be scheduled in the next few weeks. • Resolution — Release and Reconveyance of Easement and Sewer Pipeline Easement Agreement (Randy Swenson, Tender Nest) Kurt stated that Randy Swenson has spoken to the council previously about going over a utility easement to expand his business. Randy had Qwest, MDU, Cable Montana, and NorthWestern Energy sign off on this. He is asking for the city's consideration to move the easement to a different location on the west side of his property, which would still allow a sewer going to the north to tie in on Valley Drive. Randy Swenson stated his address as 4510 Hiline Drive in Billings. Council Workshop Minutes of May 25, 2010 There was discussion regarding the location of the existing easement and the proposed sewer pipeline easement, the feasibility of a storm drain in the easement, that the proposed sewer pipeline easement does not include the storm drain, and that there would be a better way to provide storm drains. Randy stated that the existing easement has been there since 1965 and has not been used for anything, so the other utilities did not have a problem signing off on it. • Resolution — Agreement for Solar PV for the Water Treatment Plant Kurt explained that Henry Dykema approached the city regarding the installation of solar panels on the pumping building at the Water Treatment Plant. Henry Dykema, 67 Yemeni Road, Red Lodge, gave a brief introduction of his business and the proposal. Henry owns Sundance Solar Systems, which is a solar electric installation contractor, and has been in business since 1994. Projects include the Rural Fire Station in Red Lodge, the Laurel Senior Center, a number of projects in Billings, the 46- kilowatt system on a senior apartment building on Fallon Lane in Billings. When Montana Power Company was deregulated, the metering law required MPC, which later became NorthWestern Energy, to put in a net meter if anyone generated their own electricity from solar PV, wind, hydro or whatever. A net meter has the capability of calculating a kilowatt hour going out as well as the kilowatt hour being consumed in from the power company. Along with the net metering law, the Universal Systems Benefit Program (USB) was created as a funding source for these projects. NWE customers pay a USB fee every month, and the money goes into a pool for low income energy assistance or efficiency. A small portion was mandated by the legislature to fund renewal energy projects, which is the source of money that Henry taps into by writing proposals to NWE every year. Henry explained the USB Program and some of the early projects. Every year he writes proposals for the NorthWestern Energy committee to review. NWE likes to consider public projects for taxpayer - owned facilities which result in a universal benefit to the taxpayers on the NWE grid. Henry tries to come up with creative ideas, including the Park and Recreation building in Billings, low- income senior apartments, non -profit groups, the water treatment plant in Billings, the Helena wastewater treatment plant, a project for Montana Tech, and an 8- kilowatt system for MSU -B in Billings. When the new metal roof was installed on Laurel's water plant, he realized that it was perfectly oriented and with the optimum angle for PV on the roof and it is a visible building from the highway. NWE looks highly on all those features as they look for projects to support and fund that obvious public projects. Henry writes up proposals and the committee reviews them. Once the system was approved, he started the process of contacting the city, and now he is in front of the council that will ultimately make this decision whether to accept it. The city does not have to do it, as he can move it to another facility in the state. There is a December 1 deadline to have the system installed. The system is about 3.4 kilowatts of solar and would be mounted on the roof without having to drill through the roof. The system will make about 400 kilowatt hours a month, which is minimal at about $40 month savings. There is no cost to the city, as it is fully funded by NorthWestern Energy. There is no maintenance. Once all the wires work and it turns on, there are no moving parts. A PV grid type system has solar panels that generate electricity through a chemical process that generates electricity that runs through wires into an inverter, and the inverter turns it into AC current and feeds it into the building. There is the potential that the inverter could fail, but it comes with a ten -year warranty and would be replaced. The worst case scenario for the city is that, if the inverter failed, the city would be no worse off than before it was installed. 2 Council Workshop Minutes of May 25, 2010 There was further discussion regarding the 10 -year warranty, the solar panels are built to withstand f- inch diameter hail at 100 mph, and whether to consider this at the June 1 council meeting. A resolution will be prepared for the council's consideration on June 1 • Resolution — Jack Roma's request for a right -of -way easement across city property Kurt Markegard stated that the council received a similar request for an easement from Riverside Sand and Gravel across adjacent city property at the container site. With that request, the council agreed to certain stipulations as per Montana Public Works Standards, and the road had to be paved. This request is almost identical to the previous request, and Kurt stated that the requests and requirements should be applied the same. Jack Roma stated that he reviewed the resolution. The first condition requires the Romas to pay a professional surveyor to prepare the easement so it is recordable. The second condition requires the private road to be paved and designed by a professional engineer and constructed pursuant to Montana Public Work Standards. Jack stated that, if this was going to be a full- fledged subdivision, he would agree to put in a paved road, but not for the purpose of one house. He had two contractors from Billings provide cost estimates for the road according to the specifications, and the prices were between $35,000 and $70,000 to put the road in. Jack stated that the cost is not feasible for one house. If there were going to be five or ten houses, the road would have to be built. He plans to locate the house in the lower corner of the property so it would not interfere with a future subdivision. He questioned why he is being forced to put in a road for just one family that would be one of the better roads in Laurel. The property is fenced, so no one should go in there except the homeowner. Kurt previously told Jack that he did not want people driving close to the city's water tank, but people will try to use it if there is a 32 -foot wide paved road. Jack stated that the other conditions are acceptable, but it is not feasible for him to pay $35,000 to $70,000 for the road. Doug asked if the County Road Department has a standard for gravel roads. Kurt explained that the County is trying to move away from gravel roads because of the maintenance costs and the mud and dust issues. In the city limits, parking and car lots have to be paved. He would be an advocate of non -porous pavement in order to keep the mud out of the streets. There are standards for gravel roads in the Montana Public Works Standards. Subdivision regulations do not allow gravel roads in any subdivision. Gravel roads were not allowed across city property at the container site because employees would have to inhale dust all day from truck traffic on a gravel road. It is unfortunate that Jack cannot afford to do that, but the public works department is looking at the health benefits and the standards. Since this is city property, the city will always have exposure, even if there is an easement on the property. In the event of a traffic accident on the road, the City of Laurel still owns the land and would have some exposure. The city's insurance company cannot dictate what the city does, but it could raise the premiums to cover the exposure. The city is trying to mitigate that by ensuring that easements across public property are built to standards. Chuck Dickerson asked if the city would be responsible to develop a road from 5 Avenue north to the ditch if Jack decided to go in from 5 Avenue. Kurt explained that a developer would be responsible to build the road. The road right -of -way is already there to the ditch and the city does not have anything beyond that. There is no road right -of- way on Jack's property and there is no need to go across the ditch. If a road was built across the 3 Council Workshop Minutes of May 25, 2010 ditch, a special improvement district could be created and the surrounding property owners would be assessed for the road improvements. Chuck Dickerson stated that it is private property, so nobody has a reason to go onto private property unless they lived there. He asked if the city would develop 5th Avenue north of l4` Street if there were two homes on each side of what is supposed to be 5 Avenue North and Jack wanted to access the property by putting a bridge over the ditch. Kurt stated that the city could choose to develop it, but how to pay for it would have to be determined. It is road right -of -way and is annexed by one adjoining lot, so each side of the road easement is annexed. Typically, either the developer puts the road in or a special improvement district is formed and the property owners pay for the infrastructure improvements. If a subdivision is developed, the developer would be responsible for the road north of 14 Street. Jack stated that he cannot afford the costs for the road for one house. If he was going to subdivide, he would go ahead with the road. But $50,000 for the opportunity to have his daughter build a house there is out of the question. He has made an offer on nearby property, and if he gets it, he can go through the property and have his own right -of -way. Kurt stated that the council considers the conditions recommended by staff and makes the final decision. Mayor Olson stated that, if the council denied the request, Jack could not present the same request to the council in the future. Jack asked if the condition regarding paving the road could be changed. Mayor Olson stated that condition was a recommendation from staff. If a council member wants to change the condition, they could present an amendment at the time of the council vote. In the case of land use requests, the request could not be presented to the council until a year had passed. For any other items, subsequent requests cannot be presented in the same form as presented when it was originally denied. Sam stated that the council could reconsider the request, but it would have to be brought back to the floor by a council person from the prevailing side to reconsider the vote. The allowable length of time to reconsider a vote needs to be reviewed. There was further discussion regarding a future subdivision and requirement for a paved road, annexation of the future subdivision, and allowing a gravel road until the property is subdivided or more houses are built. If the council chose to allow a gravel road until more than one house is built or the property is subdivided, the stipulation would be in the easement document and the resolution. If Jack sold the property and a different developer took it, and the city had assigned the right -of -way, the right -of -way could be revoked if the subdivider refused to put in the road. It was suggested to delay the council's consideration of the resolution and allow for more discussion and to address the concerns at the June 8 council workshop. • Resolution — Solid waste services for SID's Bar and Grill 4 Council Workshop Minutes of May 25, 2010 This item was removed from the council workshop agenda. • Resolution — Amendment No. 1 to Task Order No. 12, Seventh Street Ditch Improvements Kurt stated that ARRA funding was received from the State of Montana for the Seventh Street ditch improvements. On Washington Avenue, storm water drains were extended away from the storm water inlets, tying into the irrigation ditch via the storm drain system that eventually goes to the Nutting Drain east of Laurel. Sidewalk was installed on the east side of Washington to provide a viable access to cross the ditch. Storm water improvements were done on Alder, as the old storm water infrastructure was not adequate. When it rained, Nutting Park would flood, as well as down Alder to the Co-op. Because the ditch is so shallow, a siphon pipe had to be built under another irrigation canal. The new siphon allows the storm water to come down the ditch, go underneath Alder and then continue on. Kurt stated that Great West Engineering is requesting additional payment for the project. Chad Hanson, Great West Engineering, stated that the Alder Avenue intersection was not very straightforward. Since two irrigation ditches cross, designing the siphon versus a normal culvert was much more complicated. He is asking for $10,000, which will not cover everything they are over budget on this project. The project was funded by ARRA through House Bill 645. Because it was done right and good bids were received, the project is $12,000 under the amount of ARRA funding received. After the additional $10,000 is added to the engineering portion of the project, there is still over $2,000 for contingency to close out the project. There were some issues with the concrete, and the contractor had to tear it out and redo it. When the concrete work is done, the contractor will repave on Washington Avenue. Chad expects the project to be finished by the end of the week. The siphon on Alder works great, as proven during the recent rain events. Mark Mace publicly thanked Chad and Kurt for holding firm on the concrete issues with the contractor. • Resolution — HVAC modification for the Water Treatment Plant This item was removed from the council workshop agenda and should be presented soon. • Resolution — Utilities Helping Utilities agreement (Water & Wastewater Agency Response Network — WARN) This item was removed from the council workshop agenda and should be presented soon. • Resolution — Asphalt replacement at the WWTP This item was removed from the council workshop agenda. • Resolution — Intent to create SID on West Main, 1 to 8th Dorsey & Whitney prepared the resolution to create an SID on Main Street from First to Eighth Avenue for the State project scheduled to start on July 7 The resolution of intent is for the matching CTEP funds to pay for a portion of the sidewalk project. The State will pay for the curb and gutter, the storm water, and the ADA, and the city will pay for the sidewalk and the CTEP match. The resolution is in draft form and should be finalized for the June 1 Sc council agenda. Chad Hanson explained the SID boundaries and the inclusion of First and Second Avenues in the project. MDT's plans identified which sidewalks needed to be addressed, and sidewalk that is new or in good condition will not be replaced. Parcels that have sidewalk to be replaced will be assessed 5 Council Workshop Minutes of May 25, 2010 based on the exact measurements of the sidewalk. The original MDT project was from Third to Eighth Avenues until the city pointed out that two blocks would not be done. MDT agreed and added the extra two blocks in the overlay, so Main Street will be new from 8 Avenue to the other end of town. For the sidewalk improvements, only the identified parcels have any improvements in front of their businesses or land. Kurt explained that the sidewalks from First to Third on the north side of Main Street were done in a previous project. On the south side of Main from First to Third, there is not additional right -of -way. This is railroad property and a building and a loading dock are in the way. The project includes new curb in that section, which will be assessed to the railroad properties on the south side from First to Third Avenue. The resolution of intent will be on the June 1S council agenda. • Discussion — 2010 street maintenance project Kurt explained the 2010 street maintenance project for the city to address the street conditions. Kurt worked with Chad to prepare the bidding documents and advertise for bids to do chip seal, crack seal, some pothole repair and leveling of the streets. Kurt will present information regarding the streets included in the project to the council prior to going to bid. The pavement management process reviews the rating of the streets. Any street below a 45 or 50 would not be best served by more maintenance money but needs an SID for street replacement. Some streets need water line replacement prior to fixing the streets, so some patching will be needed. The 2010 project will be preservation crack sealing, preservation chip sealing, and leveling and pothole repair. There was discussion regarding street sweeping the streets following the street maintenance project and the need to inform the public regarding the schedule for the project. Police Department: • Resolutions — SRO Agreements Rick Musson stated that the school budgeted for the School Resource Officer agreements for another year. The resolutions will be on the June 1 council agenda. • Speed limit signage on East Railroad Street Rick stated that a gentleman recently complained that the speed limit should be 35 mph, but Rick is not agreeable to that. With the current 25 mph speed limit, people travel over 35 mph. If the speed limit changes to 35, drivers will go 45 mph. If the council wants the speed limit to change, a traffic study needs to be done to determine the correct speed limit. Rick's recommendation is to keep the 25 mph speed limit and to install four new signs and replace one sign. There was discussion. It was suggested to see if the County would share the costs to have a traffic study done. Kurt spoke to Del Henman today about East and West Railroad and how it differentiates. Del, the Road and Bridge Superintendent for Yellowstone County, will take the issues to the County Public Works Department tomorrow. Wal -Mart paid for the gravel walkway on East Railroad Street. With the ditch on one side and the gravel walkway on the other side of East Railroad, Mark Mace stated that 35 mph would be too fast. This item will be on the June 8 council workshop agenda for further discussion. 6 Council Workshop Minutes of May 25, 2010 o Speed limits on West Railroad Street (Emelie Eaton) Emelie Eaton stated that the speed limit changes to 60 mph approximately half a block beyond South 8 Avenue. She thinks the County should be asked to lower the speed limit. There was discussion regarding accidents on the S curve, the increased use of the park at South Pond, and the need to address this issue. Kurt stated that the County will pave from the greenhouse on Juniper east on Railroad Street past the overpass in June. Next year's project, which has been nominated and accepted by the DOT for pavement preservation, will be an overlay from First Avenue to Juniper. Chief Administrative Officer: • Presentation by Neptune Technology Group — Brad Dreyer This item was removed from the council workshop agenda. Executive Review: • Council Issues: o Viability of a sidewalk replacement program (Mark Mace) Mark Mace stated that the city needs a program to address sidewalk issues. He thinks residents would fix their sidewalks before the city has to force them to do so. Kurt stated that specific standards are needed for a sidewalk replacement program. The council needs to adopt standards for the program, an evaluation of sidewalks needs to be completed, and the funding options need to be determined. Hardin has a successful sidewalk replacement program. Kurt will meet with Debi Meling, an engineer for the City of Billings, regarding the program in Billings. Kurt is working with the Department of Transportation on sidewalk replacement on state routes through the city. The sidewalk in front of the Trading Post will be replaced as part of the state project. Kurt will report back to the Public Works Committee, which will propose standards for a sidewalk replacement program. o Update on the asphalt plant (Doug Poehls) Doug stated that the last information from MRL was they had a contractor to tear down the asphalt plant, there was material in the tanks, it was too cold to remove the material, so they were going to wait until warmer weather. Kurt stated that someone in the audience wanted to speak about this. Ryan Wood stated that he has been in meetings with Joe Gentri at MRL to potentially enter into a long -term lease of land in return for the demolition of the location, but there is no signed contract yet. Ryan stated that his issues are whether this property is in the city limits, as a map of the TIF District did not distinguish the land. Doug stated that it is Light Industrial zoning in the city limits. Ryan explained that taking on the land has a liability to his companies to potentially generate tax revenue for the City of Laurel and Yellowstone County. There are other issues he needs to address pertaining to that, mainly that the property is not included in the TIF District. Substantial upgrade would be needed to get the land into useable condition. If and when he goes to demo the land, 90 percent of the stuff deemed as junk would be gone. A couple buildings are actually in decent shape. 7 Council Workshop Minutes of May 25, 2010 His proposal is still in draft form to MRL to lay the tanks down and dispose of them properly. He did not see the previous contractor's issues with the material in the tanks and the weather. He said that there are two methods for removal and disposal of asphalt, which is actually easier to handle in the winter months but can be done at any time. He will meet with Cenex this week. If an agreement is reached, it would be his responsibility to dispose of materials in the tanks and to address the issues. Ryan stated that the city wants MRL to dispose of the material, and he will potentially facilitate that in return for the long -term lease of the land. He asked regarding the benefits the city had to offer if he brought one of his three small companies to that location. One of his companies fabricates oil and gas type materials, piping, vessel fabrication, and generates relatively high paying jobs. Since it is zoned Light Industrial and Schessler Ready Mix is next door, the use of the land would be similar in nature. Ryan stated that it would take time to tear the facility down and should be leveled to the point of useful land with between 70 to 90 percent of the equipment on site disposed of within a year. Doug is not opposed to the Light Industrial zoning, but wishes it could be a city park. His concern is the safety and health issues that need to be addressed. Ryan asked what the City of Laurel could offer an incoming business. Mayor Olson stated the importance of small businesses. James Caniglia stated that the Department of Revenue sets the taxes and the City of Laurel cannot impose tax breaks. There are very large minimums for job creation for tax breaks, and it takes dozens of new job creations to get tax breaks. When talking to potential business owners, James encourages them to contact Big Sky EDA and Beartooth RC &D. Beartooth RC &D can assist with drawings and plans for building at a very low cost through the State. Big Sky EDA can help get low interest loans for potential new businesses. Ryan stated that the only thing the City of Laurel directly has to offer is the TIF District. Mayor Olson stated that staff is available to help answer future questions. Other items Doug informed the council that he will meet with Cindy Fox soon, and Cindy requested that a mediator, Rob Griggs, attend the meeting. Doug will give her his thoughts and methodology, but told her that he cannot speak for the council. • Resolution — painting the head works at the WWTP Kurt explained that part of the wastewater treatment improvements at the head works building included a fine screen, a washer, grit remover, a grit washer, electrical, and HVAC to take bad fumes out of the building and put in fresh. It was explained that some of the piping inside had to be repainted and some of the coatings down in the grit chamber needed to be recoated to preserve the existing concrete. At one point, the general contractor, ESI, and the superintendent, informed the city that would be sandblasting and have the coatings guy here. When they leave the building, it will be almost 100 percent complete except for painting. The original paint is in there. He met with the coating contractor and there were concerns about the condition of the epoxy painting on the inside of it. It has to be durable paint because it deals with methane and the gases that come into the sewer treatment plant. The contractor attended the meeting to explain the issue. 8 Council Workshop Minutes of May 25, 2010 Tim Poley, of Engineered Structures in Boise, Idaho, stated that the issue is at the head works facility. Phase 2A2 will work with the secondary treatment facility. They are 98 percent complete with the actual design to update the antiquated equipment currently under the building to the new high quality equipment. He gave the analogy of spending $10,000 on new hardwood floors and marble but only spending $100 to fix the underlayment. The gases present in the environment deteriorate the concrete and cause issues. The contractors used project funding by reducing one area of the painting/coatings contractor's scope of work by applying a product in the grit chamber to only the areas that needed the coating. This offered a deductive change order to the contract for the value of $6,000. An additive change order of $6,230 is needed in order to spend the dollars in the needed area. The net change of approximately $230 would apply the funds to the best location in the facility. If the council proceeds with the change, the head works will have a new life cycle of 25 to 30 years. If the council does not proceed, Tim thinks the structure will crumble around the highly expensive material for which the city spent nearly $.5 million. He stated that $230 is a good deal to preserve the integrity of the structure that houses all the specialized equipment. The change order will be ready on Wednesday. Review of draft council agenda for June 1, 2010 Mayor Olson stated the resolution for Jack Roma's request would be removed from the agenda. A resolution for the change order to paint the head works will be added to the agenda. The resolution for solar PV will also be added to the agenda. Attendance at the June 1, 2010 council meeting Kate and Doug will not attend the meeting. Announcements Chuck Dickerson asked that discussion regarding. development of a park area and construction of the wall in Elena Subdivision be added to the June 8 council workshop agenda. Mayor Olson stated that discussion regarding Yellowstone Bank's recent proposal would be on the June 8 council workshop agenda. Mayor Olson stated he should know by Friday if there is a successful applicant for the clerk/treasurer position. The council workshop adjourned at 8:56 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. 9