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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. 2 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 3 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. 4 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 5 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. 6 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. 7 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 8 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. 9