HomeMy WebLinkAboutCouncil Workshop Minutes 07.27.2010 MINUTES
COUNCIL WORKSHOP
JULY 27, 2010 6:30 P.M.
COUNCIL CHAMBERS
A Council Workshop was held in the Council Chambers and called to order by President Doug Poehls
at 6:30 p.m. on July 27, 2010.
COUNCIL MEMBERS PRESENT:
_x_Emelie Eaton _x_Doug Poehls
Kate Hart x Mark Mace
_x Chuck Rodgers x_Chuck Dickerson
Alex Wilkins _Norm Stamper
OTHERS PRESENT:
Sam Painter James Caniglia
Bill Sheridan Rick Musson
Kurt Markegard Chad Hanson, Great West Engineering
Shirley Ewan
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.
Hazel Storck, 512 7t' Avenue: "Ten years ago we were given money for a swimming pool by Mrs.
Billie Riddle and I just wondered where that money is, how much interest are we getting on the
money, and are we ever going to build a new swimming pool in Laurel?"
President Poehls stated that the money is in an account and is gaining interest. At one time, some
interest money was used for maintenance of the current pool. He suggested that Hazel ask the Park
Board regarding a plan for a new pool. The Park Board will meet on Thursday, August 12d, at 5:30
p.m.
Carol Henckel, 415 South Clark in Park City, stated that her husband was Mark Henckel, who wrote
the Outdoors Section of the Billings Gazette. Mark died recently and the three-month anniversary of
his death will be on Thursday. Carol and a youth group from St. Anthony's Church have decided to
go to South Pond to clean up around the pond area and have a BBQ and a little prayer service on
Wednesday. She stated that Mark was instrumental in starting the Leonard Lawver Kid's Fishing Day
at South Pond in Laurel. After Mark's funeral, the family decided to go to South Pond, where they
found a lot of trash. Her daughter-in-law is into saving the earth type things and was appalled by
what she saw, and her one-year-old granddaughter got wound up in fishing line. That is how this all
started, as they decided it would be a nice tribute to her husband because he was into saving the
environment and taking care of Montana's resources.
President Poehls stated that he read and enjoyed Mark's articles for many years, and he told Carol that
it was a terrific idea. Citizens are encouraged to help clean up the parks.
Council Workshop Minutes of July 27,2010
General items
The appointments of Jason Shovar and Dan Achten to the Laurel Fire Department will be on the
August 3`d council agenda.
Bresnan Communications: Franchise agreement
Sean O'Donnell, 6021 Sandalwood in Billings, presented a draft franchise agreement to the council.
A few minor items on the draft agreement are still being reviewed. Several weeks ago, Sean informed
the council that Bresnan has entered into a transaction with Cable Montana to acquire several
properties, of which Laurel is the largest, to begin operating the cable and broadband plans as Bresnan
Communications. Their intent is to enter into a franchise agreement with the city in accordance with
the city ordinance that requires the franchise. Bresnan has worked with Cable Montana and they have
been in contact with legal counsel over time, and this is primarily the agreement that has been worked
through. Sean stated that the agreement calls for a 5 percent franchise fee to be applied to cable
customers' bills against their video services. Bresnan will collect the fee and then remit it to the city,
typically on a quarterly basis. Sean stated that the fee has been historically used for rights-of-way,
maintenance, etc., but how it is used is at the discretion of the city council. One confusing thing is
that the agreement is written to include that Bresnan must remit a payment on any advertising
revenue, any home shopping network revenue, and some other non-direct subscriber revenues. When
they calculate that on a customer's bill, it is more than 5 percent. Typically, around 5.25 to 5.5
percent actually ends up on the consumer's bill. They pay a franchise fee on any advertising sales
revenue, so they have the ability for local businesses to advertise on their platform, as well as any
home shopping network revenues that are generated. Sean stated that Bresnan intends to begin
investing in the Laurel system to significantly upgrade it. The Laurel system will be interconnected
back to the Billings system, which would add a substantial number of high definition channels. There
will also be access to video on demand programming and significantly higher speed internet service
will be provided. Sean estimated that it would take about twelve months to get the property upgraded
in order to offer a significant number of additional services to the citizens of Laurel.
There was discussion regarding the 5 percent franchise fee, which is the Federal maximum allowed.
After the franchise agreement is finalized, Bresnan would send notification regarding the new charge
to its customers. The charge is typically applied to the bill about sixty days after entering into the
franchise agreement. After the upgrades are completed, the same suite of services will be available to
customers in Laurel and Billings. There was discussion regarding PEG channels (Public Education
and Government),the Community 7 channel, and the possibility for a channel in Laurel.
Sean stated that Bresnan has tried to purchase the properties for several years and is glad to have
finally done so.
Public Works Department:
• 2010 Street Maintenance Project
Kurt Markegard stated the budget process and review of city revenues has identified a sum of
$400,000 for another street maintenance project and would still leave enough reserves to keep doing
street maintenance and other projects. A contractor will be hired to do crack sealing, chip sealing, and
some pavement leveling patching. A resolution is not needed until the bids are received and the
recommended bid is presented to the council.
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Council Workshop Minutes of July 27,2010
Chad Hanson and Kurt will work on the quantities needed for the project. They will determine how
much chip sealing can be done and which streets are good candidates for chip sealing. Once the
quantities are identified, they will measure the width of the streets to determine materials needed for
the project. The city will go out to bid soon, and the project should be scheduled in late August,
September, and October. The best time to do crack sealing is in the fall when the asphalt
temperatures have cooled down so the cracks are opened up more so it takes a bead of the product
into it. Kurt stated that contractors are looking for work and there should be plenty of bidders.
Kurt mentioned that the city is working with the County to get Alder and East 8th Street and Fir
Avenue done this week. As part of the maintenance agreement with Yellowstone County, the city has
been working on the low spot on 120' Street. The crew has removed some of the dirt to allow a place
for the water to run off the road. Most of the citizens on the north end of town use 12`h Street, so
some progress is being made without doing major work.
There was further discussion regarding annexation of several properties on 12`h Street. James
explained that one lot owner wants to build a house, but the cost to hook up the water line is too high.
The current line is not large enough to take on three more residences and it needs to be looped.
• Resolution—Engagement Letter with Dorsey&Whitney
• Resolution—Intent to create SID for SE 4`h Street
President Poehls stated that these two resolutions would be delayed until the August 10`h council
workshop agenda.
Kurt stated that the city is working with Dorsey & Whitney to get an Engagement Letter and
resolution of intent to create the SID for SE 4`h Street. The city's engineering firm has prepared plans
and specs for SE 4`h Street, and Kurt received these tonight. Business owners have been contacted
regarding the need to tie in to the utility systems.
Planning:
• Resolution—Energy Efficiency Block Grant
James Caniglia stated that the grant contract was received recently and is ready for council
consideration. If the council approves, the items can go out to bid next week so some projects can be
completed before winter. The grant was ARRA stimulus funding from the Department of
Environmental Quality. The original application was for$143,000 with an$8,000 match, and the city
was awarded $128,000 instead of the $143,000. After a required energy audit was completed, the
energy auditors concluded that the old boiler should not be replaced but the city should take heat from
the other boiler and trench it over. That is why the grant came out lower. The grant is for$59,500 for
windows, $29,485 for the boiler loop, $34,501 for the temperature control system, $300 for the point
source water heater for the bathroom, and $4,575 for insulation for a total of$128,361.
• Resolution — Alley abandonment (20' alley between Laurmac Subdivision Lot 1 and Ward
Subdivision Lot 13 —Tender Nest)
James stated that Randy Swenson, owner of Tender Nest, already had an easement moved and now
wants an alley abandoned. Randy is expanding a building over the easement that was abandoned and
now wants to expand a different building over the alley. This alley has never been used by the city
and Randy actually received permission to put a fence over the alley. The Public Works Committee
reviewed the request last Monday, and the committee recommended allowing the abandonment of this
alley because it has been deemed that the city does not need it for anything. It is too steep to use for
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Council Workshop Minutes of July 27,2010
garbage trucks. When Randy Swenson had the easement abandoned and moved it west of the
property, the city received another easement with adequate space for possible water and sewer lines.
James stated that it would be an improvement to the area to allow for that expansion and would add
property values to the city.
• Laurel Urban Renewal Agency recommendations:
o Up to $30,000 in water line upgrades for the new movie theatre
o $4,000 to Laurel Town Square Mural Project for public improvements
o $4,000 for match reimbursement to Planning for work title search and surveying of
proposed Historic District
James stated that two representatives from the Laurel Urban Renewal Agency (LURA) attended
tonight's meeting. Since the by-laws state that LURA makes recommendations, Shirley McDermott
and Daniel Klein were there to present those items.
Shirley stated that LURA had three recommendations. The first one should have been presented some
time ago because LURA recommended approval of up to $30,000 for water line upgrades for the new
movie theater. The bill is about $28,000, so it more than covers the recommendation. She explained
that this is probably one of the best projects LURA could recommend because getting a new movie
theater was the number one request during the surveys LURA conducted.
The mural project is LURA's second recommendation. Dan Klein stated that the mural project is
underway at this point. The request for $4,000 is for assistance to help complete the project and the
improvements in that public arena.
Shirley stated the third recommendation to approve reimbursement to Planning for work on the title
search and surveying of the proposed Historic District.
Daniel explained that Montana Code Annotated 7-14-4704 references improvements to public
assembly facilities and improvements to structures or buildings that abut public areas, so that would
cover the mural. MCA 7-15-4233 covers the planning of the Historic District for surveys, searches,
and the work necessary to undertake the project.
Shirley asked regarding the process to present recommendations from LURA. The recommendations
are included in the minutes, but they are not always presented in a timely manner.
President Poehls stated that tonight's format is a good process. LURA should inform the mayor or the
city of the recommendation, provide the paperwork, and schedule the presentation on a council
workshop agenda.
Mark thanked the committee for their work and the fact that LURA wants to make Laurel better.
Shirley thanked Mark, and stated that LURA has sent a couple of new programs to the mayor and the
city attorney that they hope to present before the next construction season.
Emelie asked if LURA is a recommending body to the council and whether LURA needs council
approval for expenditures.
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Council Workshop Minutes of July 27,2010
President Poehls stated that was correct.
Emelie stated questions about the last two items. Montana Code was quoted, but the City of Laurel
passed an ordinance in 2007 specifying that monies were to be spent regarding public infrastructure
and facilities. Ordinance No. 007-11, concerning the creation of an Urban Renewal Area, defines a
blighted area and goes through the construction aspects of it. She questioned what painting a mural
on the wall or paying for the matching aspect of a grant has to do with fighting blight.
James stated that the awning would be a public improvement. The project has to do with a wall and a
sign that abut a public area and were not in good standing. He stated that it can be viewed that the
wall and sign were blight and that the Urban Renewal Agency was helping to remove that blight and
improve the public space.
Emelie asked regarding the matching aspect of the grant.
James stated that the title work and surveying for the grant is clearly allowed. It is very specific in the
Urban Renewal Agency and TIFD language that it can be done. It is important in regards to the TIF
District because the city needs to know which vacant buildings are salvageable and which buildings
are not salvageable in the proposed historic district. Through the grant and the surveying of the
buildings, there is a clearer picture of which buildings can be saved and which ones cannot. The
removal of blight is one of the most important aspects of the TIF District. Now that the surveying has
been done, the Urban Renewal Agency and city council could have that information. James
mentioned that the paint store on Pennsylvania, behind the Hurzler Hotel, was the only building that
was deemed unsalvageable. Many people were surprised that the old hardware store was deemed
salvageable.
Emelie spoke regarding the matching aspect of the grant. The grant was applied for over a year ago.
There had been some effort to find matching grants from individuals and organizations throughout the
community, and she wondered why that was abandoned in favor of requesting TIF money.
James stated that it was not abandoned and he received monies from a couple different groups.
Emelie stated that she was involved with several organizations that recently discussed whether or not
there was going to be any collection, so obviously the effort that had been put into collecting the
match from different organizations was not followed through. That is why she asked why it is easier
to ask for TIFD money than to follow up with the public involvement.
James stated that the Centennial Committee had allocated money that has not been received yet. The
other two organizations, the Museum Board and the Chamber of Commerce, allocated funds. He has
one to collect.
Emelie stated that she has trouble understanding why there was an effort made to match the grant
money and nothing was ever done because there apparently appeared to be this pot of money. She
does not understand why the city is suddenly referring away from the ordinance that very specifically
states that "the city council hereby declares property located within the Renewal Area, as described in
Attachments A and B as having deficiencies regarding public infrastructure and facilities". Now the
city is expected to pay off the match. She does not approve of it. With regard to the itemized items,
she does not understand why council is being asked to pay for a mural at this point when the mural
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Council Workshop Minutes of July 27,2010
has already been started. It was advertised in the paper as being a Laurel Alive project, not a LURA
project. She stated that nothing was mentioned up to this point with regard to tax money funding that
project.
James stated that it has been Laurel Alive's intention and goal to do private fundraising for the mural
project. Laurel Alive raised a significant amount of money for the project, and it was decided to go
ahead and start the project before all the money was raised in hopes that people would donate when
they saw the mural. Laurel Alive has received a majority of the money needed to pay the artist.
Laurel Alive is looking at doing an awning on top of that next year. James is currently working on an
$8,000 grant from the Montana Arts Council for the awning. The Urban Renewal Agency had that on
their agenda as a public improvement in an area that can be deemed as blight, and that is why it was
brought to the council tonight. Laurel Alive has financial resources, but the mural project is almost a
$40,000 project and getting all the funding needed is pretty difficult. James hopes everyone has seen
the mural and thinks it is a great improvement for the downtown area.
Sam stated that these are recommendations from LURA to the city council, and the council needs to
take a second action to approve or disapprove them He suggested that, when recommendations are
received, the city should request the city attorney's office to do a first analysis to determine if the uses
are legal. If they are not, he suggested that the council not approve them If the uses are legal, the
second analysis is to put the resolution together and have the council debate the issue to decide
whether or not it wants to fund them Sam suggested that he should review the recommendations and
write a memo to LURA and the council regarding the legality first. Then the recommendations
should be discussed at another council workshop.
There was further discussion. Sam will review the recommendations, write a memo, and then the
items will be discussed at the August 100' council workshop. If the water line recommendation has
not already been approved, a resolution will be prepared for the council's consideration next week.
James stated that LURA has worked closely with Steve Zeier and Big Sky Economic Development
Agency, who are the TIFD experts in Yellowstone County. BSEDA was supportive of the projects
and provided the codes LURA needed for reference.
President Poehls stated that nothing here is really negative, but the city and council need to figure out
how to work out the details with the process.
Shirley mentioned that Mayor Olson told her that some of LURA's projects should be above ground,
not just on infrastructure, so people recognize that money spent above ground beautifies Laurel to
make it a better city in which to live.
• Discussion—Medical Marijuana
James stated that the six-month moratorium was effective on March 160, and would expire on
September 16'1'. He previously presented the proposed zoning and business licensing regulations.
The business licensing regulations still need to be finalized. James asked for council direction. The
council could extend the moratorium for another six months. MCA 76-2306 provides the ability to
extend the interim ordinance for one year, which would be an extra six months from September, and it
would take about thirty days to provide notice and publication of the public hearing. James stated that
it might be a wise decision to wait and see what the legislature is going to do.
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Council Workshop Minutes of July 27,2010
President Poehls recommended setting a public hearing for September 7fl', which gives enough time to
give notice for a public hearing. The council would have to vote that night after the public hearing on
whether to extend the moratorium.
Sam explained the requirement for 15 days' notice of the public hearing published in the paper. If the
hearing is set on September 7t', the notice would be published in the Laurel Outlook on August 18t'.
Sam stated that this should be on next week's council agenda so the council can determine the
direction regarding the medical marijuana issue. If the council wants to proceed and set the hearing
date, the city can proceed down that road. If the council is not interested in extending the ordinance,
no hearing date should be set and staff would need to work on getting the business licensing and the
zoning in place. Staff needs some direction of which way to go.
There was discussion regarding extending the moratorium, the length of moratoriums, the
legislature's responsibility on the issue, the petition that did not get the requisite number of signatures
to repeal the law, the possibility that the legislature will revisit and refine the law to impose more
restrictions and clarify some of the provisions, the fact that Laurel can regulate the businesses more
stringently than the State does, and the need for a public hearing on the proposed zoning and business
licensing ordinances.
Sam will review the timeframe for publishing notice and setting a public hearing and prepare a memo
for the council regarding the issues.
Executive Review:
• Discussion—Proposal from Yellowstone Bank
President Poehls stated that Yellowstone Bank gave the city a proposal to purchase property located
on the south side of Solid Foundations. The city and the bank are still in negotiations. Bill Sheridan
recently expressed appreciation to officials at Yellowstone Bank for keeping the south entrance open.
Council Issues:
• Procedure for recommendations from boards, commissions, committees (Emelie Eaton)
Emelie stated that the council recently received a handwritten note from the Tree Board that should
have been addressed under Reports of Boards and Commissions at last week's council meeting. The
Tree Board was apprised of what would be in the budget for parks, trees, and for meeting the Tree
City USA status. The Tree Board intended the notice to be heard under the Reports of Boards and
Commissions, where it should have properly been received, and not just as part of the minutes that are
in the consent items. Emelie asked how to present recommendations from boards, committees, and
commissions.
There was a lengthy discussion. President Poehls stated that, while Mayor Olson is absent, he and the
council secretary review the agenda on Wednesdays and set the agenda on Thursday mornings. He
stated that recommendations from boards and commissions should be submitted to him or the council
secretary.
Other items
President Poehls stated that the Emergency Services Committee recommended requesting the
Budget/Finance Committee to put a line item in the budget for emergency services for a $5,000
stipend for a medical director to cover insurance and liability issues. This will be presented at the
August P Budget/Finance Committee meeting.
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Council Workshop Minutes of July 27,2010
Chuck Rodgers spoke regarding situations at the underpass and Main Street for crossing the street.
He has seen several pedestrians try to come from the west to the east fighting traffic or go from the
south to the north or north to the south on the west side. He observed a couple times in the last two
days a young lady with a baby stroller with two little infants in it trying to rush across the highway to
the other side. He stated that it is a growing concern and he asked city staff to see if a flashing sign
could be put up there.
President Poehls stated that it is a State highway, so staff will be directed to contact the State to see
what can be done about the situation.
Chuck Dickerson spoke regarding the status of Murray Park since the new generator was installed.
He was told that the area would be taken care of, but grass has not been planted yet and it is the end of
July. He requested an update at the August 10'h council workshop.
Chuck Dickerson requested that the park maintenance agreement in Elena Subdivision be on the
August 10'l'council workshop agenda. The last time the council discussed this issue, it was stated that
the residents had to come to the city to request that a park maintenance district be set up. The
Subdivision Improvements Agreement done on February 21, 2006, stated that "maintenance of the
park shall be performed by the city through a park maintenance district formed prior to filing the final
plat. All of the property within the subdivision second filing shall be included within the park
maintenance district formed to maintain the park." Chuck stated that the resolution was approved on
September 7, 2004, so a park maintenance district has been established. He wants to know what the
procedure for the city to notify those people that there is a park maintenance district and what they
need to do to get it developed.
Chuck Dickerson stated that a slight hole is forming in the roadway going south of town underneath
the underpass. He asked for an update at the August 101'council workshop.
Review of draft council agenda for August 3 2010
• Set public hearing date for additional water rate hearing
President Poehls state that the public hearing date for the additional water rate hearing would be set
for September 21 s`
Emelie asked for clarification, as she thinks it is the council's intention to simply comply with
notifying the Montana Consumer Counsel and hosting another public opportunity for input.
Sam explained that the intention is to allow the notice to be provided to the Montana Consumer
Counsel and allow him to appear to provide whatever evidence he may have that is different or new.
The Counsel already has all of the evidence presented at the first hearing. If there is new evidence
that has not been presented yet, the council can take that as well. There was discussion at a previous
council meeting about having the right to cross examine, the right to do depositions, and the right to
do interrogatories. Sam stated that those do not apply under this statute. Basically, the council would
have the public hearing to gather evidence in order to make a decision. Staff will most likely
introduce its position again with a couple of minor changes, but it will be similar to the first hearing.
Sam stated that only deficiency was the notice to the Consumer Counsel.
Attendance at the August 3 2010 council meeting
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Council Workshop Minutes of July 27,2010
All council members present will attend.
Announcements
Chuck Rodgers stated that the Cemetery Commission would meet on Thursday, July 29`h. at 5:30 p.m
The council workshop adjourned at 7:58 p.m.
Respectfully submitted,
Cindy Allen C/
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.
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