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HomeMy WebLinkAboutBudget/Finance Committee Minutes 09.07.2010 MINUTES BUDGET/FINANCE COMMITTEE September 7, 2010 5:30 P.M. COUNCIL CONFERENCE ROOM MEMBERS PRESENT: Kate Hart,Chairman Mark Mace, Co-Chairman Chuck Dickerson Doug Poehls OTHERS PRESENT: Shirley Ewan Bill Sheridan Mayor Kenneth Olson City Attorney Sam Painter Jan Faught Chairman Kate Hart called the regular meeting of the Budget/Finance Committee to order at 5:30 p.m. There was no public in attendance. The minutes of the August 17"'and 24"', 2010 meetings were presented and approved via motion by Doug, seconded by Mark, and passed unanimously. Doug made a motion to approve the claims for Council consent;Mark seconded the motion, all in favor, motion passed. There were no purchase requisitions presented to the Committee. The Comp/OT reports for August 21 st were reviewed. The Payroll Register for PPE 8/21/10 totaling$168,806.83 was reviewed by the committee. Motion was made by Doug, seconded by Mark to recommend council approval of the payroll register. Motion passed unanimously. Clerk/Treasurer's Comments: The Bresnan Franchise Fee was discussed. It was the consensus of the Budget/Finance Committee that their recommendation to the Council would be to charge the 5%and accept the revenue into the General Fund. Shirley let the Committee know that there are 7 new lights being put on 8'Avenue and that these would be included in the light district. She showed the committee a map of the participants in the light district and the areas that were not in the district due to no street lights in their area. Shirley also explained to the Committee that 2 changes have been made in the budget, the first being an increase to the light district#2 for the additional lights put in on 8`h Avenue and the second an increase in the appropriation to SID#111 to pay bonds early. Shirley stated that there is a "mandatory bond redemption"clause in the SID agreement that states that,if there is additional cash in the bond account, the bonds must be called and paid prior to their maturity date. Mayor's Comments: TIFD uQdate: Doug stated that he attended the workshop in Billings in regards to TIFs last Monday. Currently there are no county TIFs,but a certain group from the County is proposing that the Tax Increment Financing Districts support a percentage of the school districts in their TIF area. The County is suggesting that by giving the school district a percentage of the TIF revenue,they would be supporting low income school districts as well as blighted areas. Doug told the group that TIF 1 Budget/Finance Committee September 7,2010 districts need to be cautious in making commitments to the school districts,as there may not be enough revenue for the TIF district to cover their bond commitments for infrastructure projects that they plan on supporting. Chief Administrative Officer Comments: West Main Sidewalk SID&overlay: Bill stated that the project is almost complete. Shirley stated that she has calculated the SID at the amount that was given to her by Great West Engineering and the amounts have been added to the tax rolls as assessments. If the SID is not completed by the end of September,these assessments will have to be removed from the tax rolls. The participants need to be given 30 days to pay their full assessment up front. If the assessments are removed, they will not be put back on the tax rolls until 2011. Per the Mayor's request, Shirley will check with Riverside Sand and Gravel to find out exactly when the project will be completed. Wastewater Plant Upgrade project: The upgrade is complete per Bill. There is however,a 72 page reconciliation report with an additional change order cost of around$13,000 that needs to be gone through. Due to the size and content of the repor,t Mayor Olson suggested that a phone conference, with the engineer, contractor and the City, occur to go through all questionable items. Other than the 72 page reconciliation report, Bill said that the upgrades went well. Police Labor Union: Sam stated that the City is now in mediation with the Union. He is currently waiting for 1 more contract from a comparable City in Montana. He has received 1 comparison as of today's date. If an agreement is not made after comparing like cities, the next step will be arbitration. Sam feels that the contract may be up to 2 months before finalization. Bill stated that the City was not able to provide raises to City employees this year and that the Union has done very well in the previous contract. Mayor Olson mentioned that Whitefish also put a freeze on raises this year. East Main Project Bill stated that the lift station, alley and roadway are complete. Sewer Lift Stations—East Main Bill stated that the City still has concerns in regards to the Elm Street Lift Station as the smell in that location has not diminished. The City has met at with the engineers,at least 3 times,to try to solve the problem. Bill feels that maybe the engineers don't know what the problem is or how to fix it,but the City should not sign off on the project until the lift station is fixed. Chuck stated that the Council should have a letter drafted and all of the members sign the letter stating that the City would not sign off on the project until the problem is fixed. Doug suggested that the City Attorney send a letter on behalf of the Council, as it would have more clout. Sam will send a letter. Cast Iron Water Mains The City has placed a temporary line to the Nursing Home to provide them with enough pressure for the fire sprinkler system. The line is above ground so the project needs to be done prior to winter weather. Shirley stated that Great West is writing an invitation to bid legal ad and should have it to the City by next week. The City will get it in the paper immediately so the project will get started and done prior to cold weather. Water Meters Bill stated that the Neptune water meters are still failing and the warranty period is about over. He said that the vendor,Northwest Pipe,has been good about replacing them,but the manufacturer seems to be the problem. Bill told the Committee that he would like Sam to write a letter to the 2 Budget/Finance Committee September 7,2010 company explaining the problem and demanding an extension of the warranty or a complete replacement of all of the meters. Other: Discuss purchase of land from Yellowstone Bank Bill stated that Sam is working on a buy/sell agreement. Possible Purchase of Modern Auto Modern Auto is offering to sell their building and land to the City for use by the Ambulance Department. The cost of the building is$149,000 with$75,000 down by October 12t', 2010. Jan showed pictures of the interior of the building and stated that the building is in good condition and could easily be adapted to the Ambulance needs. Jan feels that this would be an excellent opportunity for the City and would like to see the Council approve the sale. Mike Penne, owner, has informed Jan that the building was a garage and that there were fuel tanks under the property. Mr. Penne stated that the tanks have been removed but that he has no proof of such. Chuck asked if the property east of the building was part of the transaction. Jan stated that it was and that the area could be used for parking for the crew. Bill stated that he believes this is a good deal and that the City would be wise to purchase the property but wonders how to pay for it. One idea that he is working on is the grant system provided by Senator Tester for fire departments. Most fire departments in the State also provide ambulance service. He will have James, City Planner, look into that option. Jan also suggested a fund raising campaign to purchase the building. The Mayor agrees that this would be an excellent opportunity and supports the purchase of the building. His one concern is the October 12t'deadline. He also mentioned that this building is located in the TIF district and would be taken out of the taxing jurisdiction if the City purchased the property. The Committee's consensus was that this should be looked into and that they would like further discussion at the next Budget/Finance meeting on September 21, 2010. The next regular Budget/Finance meeting will be Tuesday, September 21 st,at 5:30 p.m. For next agenda: Purchase of the Modem Auto Building. The meeting adjourned at 6:20 p.m. Respectfully submitted, 4 L,) ct j Shirley Ewan, Temporary City Clerk/Treasurer 3