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HomeMy WebLinkAboutBudget/Finance Committee Minutes 11.02.2010 MINUTES BUDGET/FINANCE COMMITTEE November 2, 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 Mayor Kenneth Olson 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 October 19, 2010 meeting were presented and approved via motion by Doug, seconded by Chuck, and passed unanimously. Doug made a motion to approve the claims, in the amount of $476,496.81, 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 PPE 10/17/2010 were reviewed. The Payroll Register for PPE 10/17/10 totaling $161,309.41 was reviewed by the Committee. Motion was made by Chuck, seconded by Doug to recommend council approval of the payroll register. Motion passed unanimously. Clerk/Treasurer's Comments: Shirley handed out the amendment amounts for the budgets that overspent their authority in fiscal year 09 -10. The resolution will be presented at the next council workshop. Chuck inquired as to why the Gas Tax amendment was more than what was overspent. Shirley explained that the books were not closed and there will be some adjustments to that fund. The Mayor took this opportunity to explain to the Committee that Fund 7120 — Fire Disability funding problem will not be going away. The amount that should be kept in that fund is 4% of the taxable valuation for the city and the reserves are far from that amount. He and the clerk have discussed this matter and she has informed him that by 2016 the fund will be depleted if the City does not fund it. The Mayor has asked Shirley to check with Columbia Falls to see how they are funding their volunteer pension fund. Some possible ways of funding it include getting the funding back from ISO or putting a ballot issue before the citizens of Laurel. Ken will keep the Committee informed. The City is currently supporting the fund with 2 mills. Each retiree gets $130 - $145 per month. Mayor's Comments: Ambulance Space Consideration: Randy Hafer will be meeting with the Mayor on Thursday at 10:00 a.m. The Mayor has indentified $150,000 that could be used to enlarge the FAP building. It's possible that the addition could cost twice that amount and the Council will have to consider the funding for the balance of the project. The Mayor stated that possible funding would be through borrowing from other funds or private funding. The matter will need to be discussed with Department Heads. Chuck asked about private 1 Budget/Finance Committee November 2, 2010 funding. Would it be possible to have some construction company, i.e. High Tech Leasing, build the addition as well as fund the project? The Mayor stated that would be something the City could look into. Purchase of Land from Yellowstone Bank: The Mayor stated that, after further consideration of buying the land from the Bank with $20,000 down and financing the balance, it would be beneficial to the City to have the Enterprise Funds purchase the land outright. He has spoken to Kurt in the matter and he is in agreement. The land is being purchased for easement and solid waste purposes, and if the General Fund needs part of the property in the future, it could purchase a portion or lease a portion of the land from the Water /Sewer /Solid Waste Funds. Technical Edge/CSA Server: The City has chosen to purchase the server from DELL Computers rather than have a consultant purchase them. This way the City will get the government discount and Technical Edge will install and configure the programs. Per the City Attorney, service contracts do not have to go out for RFPs (request for proposals). The City will need to revisit Technical Edge's contract soon, as it expires in 4 months. West Main Sidewalk SID & overlay: This project is being done through the State and the contractor is Riverside Sand and Gravel. The Mayor has heard concerns in regards to three areas where the sidewalks have been placed. He will be addressing these problems with Stefan Streeter. Mark asked if the pink markings along that area were problems that need to be addressed. The Mayor is not sure but will inquire when he speaks to Mr. Streeter. Wastewater Plant Upgrade project: Phase 2A1 is about complete. The State has sent another non - compliance letter to the City in regards to nitrate and phosphate violations. Great West Engineering is working towards a phase schedule that the City could take to DEQ to show that we are working on the matter. The total project is $6.2 million and there is no way the City can afford that all at once. Just to do the "phase in" could cost the residents an additional $7.00 /month on their base rate for sewer. At the League of Cities and Towns meeting, DEQ stated that if they are unable to get results from the cities that the EPA will move in and demand results. Police Labor Union: The Union will be meeting with management next Tuesday. The comparisons that the City has received from other communities are not fair comparisons. Doug asked if the City had given the Union all of the information that they had requested. The Mayor stated that most of it has been released. Chuck asked if the City planned on replacing Bill's position. The Mayor stated that due to the fact that he is able to spend more time at the City, it would be prudent of the City to wait until next budget year to replace the position. He realizes that when he steps down there will definitely be a need for a new CAO (Chief Administrative Officer) and the City will need to keep that position in the budget. The CAO's budget authority balance can't be used as a COLA for the Union as it would be gone forever and the City needs to replace the CAO position. East Main Project East Main is close to being done. The Mayor will address this project with Stefan Streeter. Sewer Lift Stations — East Main 2 Budget/Finance Committee November 2, 2010 Morrison - Maierle are out of the loop now as their contract did not address the gas fumes. Great West is addressing the odors and has the levels down to 10 -12 parts /million. They will be installing scrubbers to keep the odor down. Cast Iron Water Mains The City is still working on identifying these mains. This will be placed under future meetings from now on. Water Meters The water meters issue is being addressed. The City will still receive $35 for every meter that the City replaces and if the faulty meter trend continues, Neptune will replace all of the meters at no cost to the City. The meters have to reach a 15% failure rate before they will replace all meters. Water meters will be moved to future meetings. Other: Mark would like to see a "Book of Projects" started. The book would show all projects that the City has started, when done, the project leader, the cost, the location, the contractor, the engineer, etc. He would also like to see a book showing what suppliers we use and what we buy from them. The next regular Budget/Finance meeting will be Tuesday, November 16 at 5:30 p.m. Next agenda: The meeting adjourned at 6:20 p.m. Respectfully submitted, t �<< ( t LL � i ,,,, Shirley Ewan, Temporary City Clerk/Treasurer 3