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HomeMy WebLinkAboutCouncil Workshop Minutes 05.10.2011 MINUTES COUNCIL WORKSHOP MAY 10, 2011 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 10, 2011. COUNCIL MEMBERS PRESENT: _x Emelie Eaton _x_ Doug Poehls x Kate Hart x Mark Mace _x_ Chuck Rodgers _x_ Chuck Dickerson _x Tom Nelson _x Norm Stamper OTHERS PRESENT: Sam Painter 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 no public input. General items: • Appointments o Laurel Ambulance Service: Alycia Roberts The appointment will be on the May 17 council agenda. o Laurel Airport Authority: Alfred Koelzer to fill a term ending June 30, 2015 The appointment will be on the May 17` council agenda. Executive Review: • Resolution - Zoning variance for storage units at 215 South Fourth Street (PH - May 17, 2011) Ron Elkin, a real estate broker for NAI Business Properties, spoke regarding the zoning variance. Mr. Elkin distributed copies of documents relating to the requested zoning variance. The handouts included the brochure used to sell the property, information showing why community commercial zoning would be appropriate zoning for the current usage of the property, and a plat map showing how the property would be zoned if and when it is completed. The existing house and garage will remain as a residential zoning and the areas with the two separate storage units would be zoned commercial. The first four lots are the house and garage and the remaining lots are the storage units. Mr. Elkin provided a brief history. The Siegel family moved into the house long ago and raised three children there. Mr. and Mrs. Siegel are deceased, and the three children are still alive. One of them, his client, is a resident of Seattle now but was forced to come back in November to try to save the mini- storage operation. They have resided here since then but are anxious to sell the property and return to Seattle. The original 23 units were built in 1977 and Laurel did not adopt a zoning ordinance until two years thereafter in 1979, and the property was grandfathered in. In 2002, the second phase Council Workshop Minutes of May 10, 2011 containing 28 units was built. This is when the zoning should have been corrected, but a building permit was issued and the property was built. Mr. Elkin has a buyer for the property, but the lender on the acquisition has requested that the zoning be corrected to reflect the current usage. He does not think there will be any impact on any of the surrounding neighbors. This is simply a zoning mistake that has existed since 1979. If the zoning is changed, the sale will go through and his client can return to Seattle. • Resolution — Allocate LURA funds for downtown sidewalk improvement project Mayor Olson stated that the city planner has worked on this project. Funding for the downtown sidewalk improvement project would come from the TIF District, CTEP funds and the match through MDT. At this time, the TIFD is requesting the council's consideration for the expenditure of funds of $40,000+ to help fund the sidewalk project. The final cost of the project will be once the State reviews the project, engineering fees are assessed and the costs of construction and materials are set. The resolution is needed to authorize the project to go forward. • Discussion — CAO contract Mayor Olson stated that the first CAO had a two -year term, and he asked for the council's consideration to increase the contract to a three -year term. A three -year contract would allow the successful candidate more time to become familiar with the workings of city government and then go forward to be a positive impact on the community. Mayor Olson explained that the interview committee included three business people, two council members and the mayor. Four of the five candidates were closely ranked in the process, and the committee gave him the leeway to negotiate with the top three candidates to find a successful candidate. The field has been narrowed to one candidate, and a background check will be done soon. As soon as a person has been selected, Mayor Olson will introduce the individual to the council and staff. July 5 is the proposed date for the CAO to start the contract, as that is the beginning of the fiscal year and would allow appropriate time for someone to move their family. Doug stated that he thought a three -year contract would be appropriate. • Report on discussion with Mayor Tom Hanel, City Administrator Tina Volek and Public Works Director Dave Mumford Mayor Olson, Doug Poehls and Kurt Markegard recently met with the Billings' officials to discuss water issues between Laurel and Billings. The City of Billings might build a plant between Laurel and Billings, drill a well and use the water for sale to residents between Laurel and Billings. The City of Billings wanted to know Laurel's thoughts. At the meeting, Mayor Olson made the statement that Laurel would be willing to talk with Billings if there was a shared resource that could be a benefit to Laurel. Further discussion at the meeting included thoughts of Laurel pumping water to the site, putting a plant on the Big Ditch to draw water during the summer and shutting the plant down during the winter when demand is lower, the possibility of the city providing refined water from the water plant, and the ideas of a shared reservoir system and a regional water center. Discussion at the meeting included how to establish a regional water system without impacting the people that have already spent money to build the plants and everyone agreed that Laurel and Billings will probably grow together in the next twenty years. Emelie asked how this would benefit or hinder the discussion regarding a water tower north of Laurel. 2 Council Workshop Minutes of May 10, 2011 Mayor Olson stated that it would allow two different water towers which would benefit Laurel. One would be a co -cost between the City of Billings and Laurel. Laurel's soft match would be the water and the City of Billings' hard match would be money. A water tower that would facilitate better water flow for Laurel would address fire flow issues at the airport and could help stimulate growth at the airport. A second reservoir would give the fire flow required to support major hotel/motel development at the new interchanges. Mayor Olson suggested that a larger group of people is needed to address the future water considerations. • Council Issues: o Fencing over the generator at Murray Park (Chuck Dickerson) Chuck Dickerson stated the need for protection and signage for the generator at Murray Park. Mayor Olson stated that the Public Works Department plans to put fencing over the generator. He will talk with the Public Works Director regarding the suggestion for signage. o Contracts for Riverside Park (Chuck Rodgers) Chuck Rodgers asked about the status of leases for the clubs at Riverside Park. Mayor Olson explained that the City of Laurel currently has leases with the Laurel Jaycees and the Laurel Rifle Club. There was discussion regarding the outdoor shooting range, which was phased out in the fourth year of the city's lease with the Rifle Club. Mayor Olson stated that work will continue to fmalize the leases for the remaining clubs that use Riverside Park. o Emergency Services Committee discussion regarding the effect of allowing fireworks on homeowners' insurance (Emelie Eaton) Emelie asked regarding the Emergency Service Committee's discussion about possible changes in insurance rates if fireworks are allowed in the city. Doug will contact some cities to find some information and Tom will contact his insurance agent. o Update on discussion with Yellowstone County regarding differences in speed limits on East Railroad Street (Emelie Eaton) and possible need for speed limit signs by Wal- Mart (Chuck Dickerson) Emelie spoke regarding the differences in speed limits on East Railroad where half of the road is in the county's jurisdiction and the other half is in the city's jurisdiction. Mayor Olson stated that the county planned to pave East Railroad Street from Big Sky Nursery to South First Avenue this week. The weather has set the schedule back, but the project should get started soon. At a recent joint meeting, Commissioner Kennedy suggested that the city take over the road so it is in the city's jurisdiction. Mayor Olson suggested that the city should annex the road after the project is completed in order to provide additional urban funds and give the city jurisdiction of the entire road. There was discussion regarding the lack of speed limit signage on Bernhardt Road. Mayor Olson mentioned that the department heads discussed the issue today and will review the need for a speed limit sign. However, additional signage will not be installed on East Railroad until the entire street is in the city's jurisdiction. Other items 3 Council Workshop Minutes of May 10, 2011 • Resolution — Agreement with High Plains Architects for Professional Services for the Laurel Renewal Agency Mayor Olson stated that the resolution is for High Plains Architects to be selected as the architects for LURA. The agreement delineates the $80/hour fee for professional services for assistance with the Facade and Technical Assistance Programs. The council previously authorized a resolution allowing LURA $10,000 for professional services (Resolution No. R11 -20). • Resolution — Memorandum of Understanding with Local 316 Mayor Olson explained that the Memorandum of Understanding with Union 316 addresses a condition that currently exists for employees that want to bid to a position that requires a license and a cut in pay. If an employee bids a position that requires a license, they have one year to get the license. If they fail to get the license after one year, by contract the employee would be terminated. It is a tough decision for the individuals to make. The city recognizes the issues and would like to present the council with the Memorandum of Understanding to the contract. The current contract has a provision that if negotiations continue beyond June 30 the current contract remains in effect until a new contract is approved. Review of draft council agenda for May 17, 2011 • Public Hearing: Zone change variance from Residential Limited Multi- Family to Community Commercial at 215 South 4 Street, Laurel, Montana • Ordinance No. 011 -06: An ordinance amending Chapter 8.16 titled "Fireworks" located at Title 8 of the Laurel Municipal Code. (First reading — 04/05/2011; PH — 05/03/2011; Second reading — 05/ 17/2011) The Poppy Day Proclamation will be on the council agenda. Attendance at the May 17, 2011 council meeting All council members will attend. Announcements Doug stated he planned to attend the joint meeting tomorrow night, but he decided to attend the VIP Dinner for Aviation and Technology Week instead. Chuck Dickerson mentioned the Arbor Day celebration on Saturday at 1:00 p.m. at the cemetery. Norm stated that the VIP Dinner for Aviation and Technology Week is at 5:30 p.m. on Wednesday at St. Anthony's Parish Hall. There will be a slideshow presentation and Brigadier General Stovall will be speaking. On Wednesday, a bus will leave the old middle school at 8:45 a.m. for a VIP tour to the Billings and Laurel airports to view the aircraft. Aviation and Technology Week is going well. The council workshop adjourned at 7:36 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. 4 FOR SALE Mixed Use Income Investment Property 215 South 4 Street, Laurel, Montana ?,, c . ,r S 1 �.- a : 1! 1 : - J le J- �' ■ - 3o- : v J ii ,, . i...41 E fir• <. I � - • 1,533 Square Foot single family residence - " ;, 1 • 1,600 Square Foot garage /shop with two % ?/ % 12'x12' overhead doors. One bedroom & 1.>� 11�� `\\ bath apartment within garage. i ` -3 • 51 mini - storage units in two separate � � ` " sr.. buildings t ' , , , • j Total site just over 2 acres ' ^ • Mini - storage one of three serving Laurel , - — area. \- • Rents significantly below competition _� �� "`` W • No marketing, no signage currently • Income and Expense Proforma on reverse. ', ----AD"- RD -AD � \fca , �' / ' • • Asking Price: $468,900 (see reverse) „ r� = , ; 364 ,,�p s � � � ' !HI Jig , ___. Fk F• \ • !O. 1LCON0> f7 RLtT. Sr y +'j _ M a .-- ; •:- ; Ar ; ' r--t_ \\ .:,,_ 1- NAI Business Properties _ °- _ r _ , °.JTRLLT a Commercial Real Estate Services, worldwide. i D x of 2s I ' 17 : ' LE: , i i :, , , l ' E4Pt , 4 CONTACT Ron Elkin I i r v I s v. o z Fvue 5Ta6` ., Local 256.5000 TF 800.900.2201 ' I !' ° _ a i _ , aa[ - 1 . b 1� 4 O 0 2C :r. r7— www.businessprop.com i il d Z L° o z W I I 1 `,J 1' F z 1- �--- Information shown herein was provided by the Seller /Lessor and /or other third parties and has not been verified by the broker unless otherwise indicated Income Expense Proforma 215 South 4th Street, Laurel, MT MINI - STORAGE INCOME & EXPENSE PROFORMA A. Building #1 (built 1977) 3 Units (9'x12') @ $40 /month $ 1,440 3 Units (12'x12') X $50 /month $ 1,800 17 Units (14'x22') @ $75 /month $ 15,300 23 Units $ 18,540 B. Building #2 (built 2002) 8 Units (8'x10') @ $35 /month $ 3,360 20 Units (12'x20') @ $60 /month $ 14,400 28 Units $ 17,760 C. Total Gross Income $ 36,300 10% Vacancy Factor $ 3,630 $ 32,670 D. Additional Income: Yard Storage @ $150 /Month $ 1,800 $ 34,470 E. Operating Expenses NWE - Electricity $ 230 Property Taxes $ 4,196 Insurance $ 1,500 Management $ 3,000 $ 8,926 F. Net Operating Income $ 25,544 Capitalized @ 9.15% $ 279,000 II RESIDENCE WITH GARAGE AND APARTMENT Comparative Sales Market Analysis (Prepared by Daniel Klein, Realtor @ A Haus of Realty, Inc., December 30, 2010): $189,900 III COMBINED VALUE /ASKING PRICE $ 468,900 RMH RESIDENTIAL MANUFACTURED HOME: A zone intended to provide stable environments for individual manufactured homes, manufactured home parks and compatible accessory uses. RP RESIDENTIAL PROFESSIONAL: A zone intended to accommodate limited commercial and professional offices as would be compatible with adjoining residential districts and consistent with the objectives of the Comprehensive Plan. NC NEIGHBORHOOD COMMERCIAL: A zone for commercial centers and limited retail activities conducted in a unified development designed to serve the surrounding neighborhood with shopping facilities consisting of convenience retail and personal service establishments which secure their principal trade by supplying the daily needs of the neighboring population. Only uses serving the above purpose without undue detriment to surrounding residences should be permitted. CC COMMUNITY COMMERCIAL: The Community Commercial zone is intended primarily to accommodate community retail, service and office facilities offering a greater variety than would normally be found in a neighborhood or convenience retail development. Facilities within the classification will generally serve the community, and is commensurate with the purchasing power and needs of the present and potential population within the trade area. It is intended that these business facilities be provided in business corridors or in islands (thirty (30) acres) centrally located in the trade area rather than a strip development along arterials. HC HIGHWAY COMMERCIAL: The Highway Commercial zone is intended to provide areas for commercial and service enterprises which are intended primarily to serve the needs of the tourist, traveler, recreationist or the general traveling public. Areas designated as Highway Commercial should be located in the vicinity of, and accessible from interstate interchanges, intersections on limited access highways, or adjacent to primary or secondary highways. The manner in which the services and commercial activities are offered should be carefully planned in order to minimize the hazard to the safety of the surrounding community and those who use such facilities. 1 CBD CENTRAL BUSINESS DISTRICT: The Central Business District classification is intended to primarily accommodate stores, hotels, governmental and cultural centers and 1 service establishments at the central focal point of the city's arterial and transportation system, where the C.B.D. can conveniently serve the population of the entire urban area with a varied and specialized selection of goods and services. In order to protect the public interest and welfare and facilitate an attractive, efficient and prosperous C.B.D., the emphasis is on larger scale building and specialty shops. CI CONTROLLED INDUSTRIAL: The Controlled Industrial zone is intended to accommodate a variety of business, warehouse and light industrial uses related to wholesale plus other business and light industries not compatible with other commercial zones, but 22 1 1 TITLES AND ii DESCRIPTION OF INDUSTRIES T W : - . - 4 C .N O y 7 F., W E O C C U N 'O 1 SR -SPECIAL REVIEW w ", E o c o y o 1 o 0 A - ALLOWED a z �� xu d A u " = " 4 �'u II 42 MOTOR FREIGHT io TRANSPORTATION AND WAREHOUSING: Offices only A A A A A A A A 421, 423 Trucking terminal EN and maintenance facilities (except below): A A A 4215 Courier services, except by air (without ii truck terminal facilities) A A A A 422 Public warehousing ti I (except below): A A 4225 General 1 warehousing and storage .\ A A A SR 4226 Special warehouse and storage 4) —> A 43 U.S. POSTAL SERVICE: II Without truck terminal facilities A A A A A A A A A With truck terminal ii facilities A A A A 44 WATER TRANSPORTATION: Offices only A A A A A A A A II 45 TRANSPORTATION BY AIR: A Offices only A A A A A A A A A 4513 Air courier services II (without truck terminal facilities) A A A A A 46 PIPELINES, EXCEPT NATURAL GAS: SR SR SR SR SR SR SR SR SR Offices only A A A A A A A A 47 TRANSPORTATION II SERVICES: Offices only A A A A A A A A Warehouses, terminals A A _ A _ li 1 1 ._, 38 _. . . .__ ars'*'^- ter_ LI_ _ W I ' \ N �. - MA P } . � \ � ' �' . � "' I , /LOW I I , , - _ _ jl ,... . . .-- , W J —. - -J e i . a LAUREL �nIC9N7 8NA i � - � p'` 1 sr.. y .e a >, dora. , P r ,r /i � ' i' -o' 1 Fe.l ry /906. ..i27.... 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