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HomeMy WebLinkAboutCity Council Minutes 02.17.1998Minutes of the City Council of Laurel February 17~ 1998 A regular meeting of the City Council of the City of Laurel, Montana, was held in the Council Chambers and called to order by Mayor Chuck Rodgets at 7:03 p.m., on February 17, 1998. COUNCIL MEMBERS PRESENT: Gary Temple Miles Walton Norman Orr Bud Johnson Dirk Kroll Ken Olson Gay Easton William Staudinger COUNCIL MEMBERS ABSENT: None INVOCATION: Invocation was given by Alderman Kroll. MINUTES: Motion by Alderman Orr to approve the minutes of the regular meeting of February 3~ 1998, as presented, seconded by Alderman Johnson. Motion carried. CORRESPONDENCE: Received a memo from the Montana League of Cities & Towns regarding a pilot program for the purchase of electricity. Received the January minutes and activity report from the Yellowstone County Air Pollution Control Board. CITY CLERK-TREASURER'S FINANCIAL STATEMENTS: The City Clerk-Treasurer's financial statements for the month of January were presented. Motion by Alderman Johnson that the City Clerk-Treasurer's financial statements for the month of January, be approved, seconded by Alderman Orr. Motion carriedl JERRY THOMAS - TRADEPORT AUTHORITY: Jerry Thomas, Director of Montana Tradeport Authority, gave a presentation on the Tradeport Authority. It is an organization that is supported by property taxes in Yellowstone County. They focus in four primary areas. The first is business development. They represent an area of eleven counties and provide technical assistance and training to businesses in finance, marketing~ organizational development~ and business strategies. They work with about five hundred businesses a year. They provide a tax incentive program. This is where they assist businesses that are looking to expand and modernize. By investing a minimum of one hundred fifty thousand dollars in plant expansion or equipment modernization, they can take advantage of some tax savings. For one to five years they get fifty percent of property tax savings and years six through ten they get an incremental ten percent increase in their taxes until after ten years then they are back up to a hundred percent taxation rate. This has been more successful in Yellowstone County then all the other counties in the state combined. As a result of the tax incentive, the businesses actually employ more people to meet the demands of new marketing to successfully support the investment they need in structure and equipment. They are not putting their money into the property taxes but actually re-investing the money into their businesses. Their marketing efforts are successful and they increased their employment opportunities. This has been one of the better tax incentive programs in the state and certainly has shown the success to prove it. They have an engineer on staff who can provide assistance to the manufacturing business in south central and eastern Montana. He goes to the manufacturing business and will analyze the plant layout, the cost accounting structure, the software, etc. to help the business become more successful. They have been advocating the mini micron film more in the area of business expansion. It is a legislative bill that was passed a couple of legislative sessions ago and offers a significant income tax incentive and a financing incentive to a business that is willing to look at expansion. They are now looking for expansion of at least fifty new employees. If this criteria is met, the benefits could equate to getting into a facility for nothing. In other words, what is paid on the cost of a facility to lease it is passed back directly in the dollar for dollar income tax credit. The second area they focus on is called government marketing assistance. They help businesses secure government contracts. These contracts range from asphalt Minutes of the City Council of Laurel Page 2 Council Meeting of February 17, 1998. They work with the business through the full phase of that endeavor. They will help in the search for potential contracts to bid on, help to get the solicitation and to work through the solicitation if there has been a proposal and then offer assistance if they are successful in negotiating a contract with the federal, state or local governments, if they choose. This is a state wide program. They support all the counties in the state and have two sub-offices, one in Great Falls and one in Kalispall. The third area they are involved in is community development. They help in applying for funds for certain aspects of community development. It could be the Community Development Block Grant Program outside the city of Billings, because they are an entitlement city, DNRC Grant applications, HUD Housing applications, Community Transportation Enhancement Program, etc. They have been successful in writing grants for Zoo Montana, affordable housing projects, housing revitalization projects for the board in the Ballantine area, to study water and sewer systems development in the Huntley and Shepherd areas, and the fire station development in the Lockwood area. They have grant writers on staff to help communities write grants. They have provided assistance in grant writing to the Chief Joseph Visitor Center. The fourth area is called projects. It is a catchall for activities that they are involved in and can support various types of things. It is geared towards identifying and targeting certain business industries and doing project development. Examples are the Laurel Airport Authority with the development of the asphalt roadway system for hanger development, the American Bowling Congress to bring the international bowling event to Metra Park in the year 2002, the Motor Coach Convention, the Gold Wing Convention, and the Tradeport Transtech Center on the west end of Billings, north of the future Shiloh interchange. It is a one hundred four acre site that is being developed with water and sewer lines with the assistance of the City of Billings and they hope to have the property available for development in the next couple of months. The Tradeport Authority is looking to change their scope more to the area of business development, not so much in project development, but in business recruitment activities, business expansion and retention efforts, more clearly identifying the needs of businesses and to focus on areas where they can help encourage growth in those businesses. Their primary focus will be on general development and primarily in the area of higher paying general development. They want to do anything to encourage the development of job training aspects, to the development of better coordinated incentives, to bring businesses into the area, and work more with local governments and packaging incentive deals on a pro-active basis after they have targeted businesses or industries that they want to recruit into the area. This is an area they have never had involvement with in the past, intending to leave it up to the Chambers of Commerce. They feel now, if this area is going to have any success in recruitment, they will have to step in and play a more active role in the area. The Tradeport Authority is doing a reorganization, focusing more on the business development aspects and probably less on the community development aspects. They feel if they can properly identify the needs of business, properly plan and encourage their growth and expansion, that it will give an incentive for the communities to take it upon themselves to look at how they can better develop some of their community development aspects. This is not to say they will completely ignore community development. Community development is a very important part and a component of that common development, but they need to focus more on job development, how they can encourage businesses to expand and hire more people, and to raise the standard of living of the citizens of the county. This will be their primary strategy. Jerry Thomas spoke on CTEP, Community Transportation Enhancement Program, which is a funding source for municipalities in county governments on a project by project basis. As communities and local governments got involved in the projects, they found that the process they need to go through to secure the dollars was not structured well. There was an ongoing process in following through and submitting information to the Department of Transportation in Helena, then having information sent back and requesting new information. The process of moving a project through became very time consuming. Tradeport felt it would be best to help the municipalities and their projects by consolidating some of the funding sources and contract it to an individual or project manager to run those projects through the system. The project manager would become familiar and involved with this cumbersome process and there would be one contact person with the Department of Transportation so these projects could move through more quickly. The City of Billings and Yellowstone County have contributed $10,000.00 each and the Tradeport is asking for $1~000.00 from the City of Laurel and $500.00 from the Laurel Chamber of Commerce. One hundred percent of the funds sent to the Tradeport are used as a basis for contractinff. Minutes of the City Council of Laurel Page 3 Council Meeting of February 17, 1998. Jerry strongly encourages Laurel to fund it because it is a very important and worthwhile project. He feels that in the future, some form of federal highway funding will continue to support Community Transportation Enhancement Projects. JULIE JONES, DOUBLE-TREE - HOME HOUSING PROJECT UPDATE: Julie Jones, Double-Tree, gave an update on the homebuyer project. Fourteen homes under the homebuyer assistance program have been closed and two are scheduled to be closed soon. There is enough funding left to assist twelve to fourteen more applicants. The average assistance per household through the HOME grant program has been $17,500.00. The overall average left to assist the remaining households will be $12,000.00 to $14,000.00. Eight households were assisted within the 0-50% low to moderate income. The rest of the funding will assist those in the 51-80% low to moderate income, which seven have been assisted. The Montana Board of Housing initially set aside $750,000.00 for the program and in December it was granted an additional $250,000.00 to be set aside with an average interest rate of 6%. To date, $857,500.00 has been used. Eight applicants in the 0-50% low to moderate income range were able to obtain thirty year mortgages at 4.5%. One applicant obtained a mortgage at 6%, and six more at 6.875%. In order to maintain an average of 6%, the remaining households will obtain thirty year mortgages from MBOH at 6.5%. A total of twenty-eight to thirty homebuyers will be assisted through the program. She is anticipating that the project will be closed June 30, 1998. AWARD/REJECT BIDS FOR WATER PROJECT: Motion by Alderman Johnson to postpone the bids for the water project until on or before March 3, 1998, seconded by Alderman Temple. Motion carried. A Water Task Force Meeting will be held Thursday, February 19, 1998, at 7:00 p.m. ORDINANCE NO. 098-1 (second reading) IT IS HEREBY ORDAINED BY THE CITY COUNCIL FOR THE CITY OF LAUREL, MONTANA, THAT THE LAUREL MUNICIPAL CODE IS HEREBY AMENDED. SECTION 2.08,140 Public Hearing: No Comments. Joe Leckie, City Attorney, commented that this ordinance is different from the the previous ordinance (first reading) because it had been mis-numbered. Motion by Alderman Walton to close the public hearing, seconded by Alderman Johnson. Motion carried. Motion by Alderman Johnson that Ordinance No. 098-1 (second reading) be passed and adopted seconded by Alderman Temple. A roll call vote was taken and all aldermen present voted, "Aye". Motion carried. Alderman Johnson suggested that a consent agenda be used at the next council meeting. The Mayor will ask if there are any separations. In this case, the items on the agenda are arranged in an alphabetic order. If a council member wishes to pull an item from the consent agenda, it can be pulled and placed on the regular agenda. The consent agenda is then passed by a motion and the separated item becomes a topic of discussion. The intent is to provide a procedure for the council to take care of routine business, allowing a method to separate items that may need further discussion. RESOLUTION NO. R98-5 BEING A RESOLUTION APPROVING AN AGREEMENT BETWEEN THE CITY OF LAUREL AND THE LAUREL LIONS CLUB, SAID AGREEMENT RELATING TO MAINTENANCE OF FACILITIES AT SOUTH POND Cal Cumin has provided a maintenance agreement between the City of Laurel and the Laurel, Lions Club. It is agreed that the city be responsible for and maintain the irrigation system, mow the lawn, control the weeds, and maintain the restroom facilities to be constructed at South Pond in compliance w4~h the Minutes of the City Council of Laurel Page 4 Council Meeting of February 17, 1998. It is understood that the Lions will provide general maintenance on the site to include picking up litter, repainting structures as needed, and generally keeping a watchful eye on the area. Cal feels it needs to be in writing that this is their project and there is a certain amount of responsibility. Motion by Alderman Temple that Resolution No. R98-5 be passed and adopted, seconded by Alderman Staudinger. Alderman Walton questioned if the maintenance agreement should be clarified, pertaining to the part that reads "generally keeping a watchful eye on the area". He is not sure where this project will be in the future and wondered whether the agreement should be more specific or it may come back to haunt them. Cal said the binding contract that reads the "maintenance will be taken care of" has been submitted to the state. This agreement is between the council and the Lions Club in doing specific maintenance. It depends on how specific one wants to get. Joe Leckie said as a practical matter, the council is going into this agreement with the Lions Club on good faith that they will make an effort. If they do not, what can the council do? This agreement specifies their responsibilities and if they do not to live up to them, the city can approach them about it or the most the city can do is maybe take down a sign that reads the Lions Club contributes to the area. Alderman Walton was also concerned if the agreements of the organizations who are renting city buildings at Riverside Park would be the same. Joe replied that it is a different matter, they have the privilege of renting the buildings and if they do not fulfill the maintenance agreements then they will be asked to leave. A vote was taken on the motion that Resolution No. R98-5 be passed and adopted. Motion carried. RESOLUTION NO. R98-9 ALLOCATING ADDITIONAL MATCHING CTEP FUNDS FOR SOUTH POND PROJECT Motion by Alderman Johnson that Resolution No. R98-9 be passed and adopted, seconded by Alderman Orr. Motion carried. RESOLUTION NO. R98-10 A RESOLUTION APPROVING AMENDMENT #1 TO THE DOUBLE-TREE, INC., CONSULTING AGREEMENT Motion by Alderman Easton that Resolution No. R98-10 be postponed until on or before March 3, 1998, seconded by Alderman Staudinger. Motion carried. COMMITTEE REPORTS: --BudRet/Finance Committee minutes of February 3, 1998 were presented. Motion by Alderman Johnson to enter the Budget/Finance Committee minutes of February 3, 1998, into the record, seconded by Alderman Orr. Motion carried. --City Council Committee of the Whole minutes of February 3, 1998 were presented. Motion by Alderman Johnson to enter the City Council Committee of the Whole minutes of February 3, 1998, into the record, seconded by Alderman Walton. Motion carried. COMMENTS FROM THE AUDIENCE: None MAYOR'S COMMENTS: Mayor Rodgers announced the City Council/County Commissioners planning meeting on Wednesday, February 25, 1998 at 6:00 p.m. at the Owl Junction Cafe. Alderman Johnson announced the Water Task Force meeting on Thursday, February 19, 1998 at 7:00 p.m. in the Council Chambers. APPOINTMENTS: Mayor Rodgets appointed seven new Police Reserve Officers. They are Kristine Minutes of the City Council of Laurel Page 5 Council HeeLing of February 17, 1998. Motion by Alderman Krolt to confirm the appointment of the seven new Police Reserve Officers, seconded by Alderman Staudinger. Motion carried. Mayor Rodgers reappointed Marvin Carter to the RC&D Committee. Motion by Alderman Johnson to confirm the reappointment of Marvin Carter to the RC&D Committee, seconded by Alderman Walton. Motion carried. Mayor Rodgers appointed Dave Gauslow as the Emergency Disaster Coordinator in Laurel. Motion by Alderman Johnson to confirm the appointment of Dave Gauslow as the Emergency Disaster Coordinator in Laurel, seconded by Alderman Walton. Motion carried. Mayor Rodgets appointed Pat Campbell, 220 4th Avenue, Committee. to the Street and Alley Motion by Alderman Temple to confirm the appointment of Pat Campbell, 220 4th Avenue, to the Street and Alley Committee, seconded by Alderman Johnson. Motion carried. Alderman Johnson would like to be removed from the Street & Alley Committee. Recyclin~ - High School Alderman Staudinger commented that he received a phone call from a person at the high school who is in charge of the recycling. She had read in the Outlook and understood that the City of Laurel was going to get out of the recycling business. Alderman Johnson replied that at the City Council Committee of the Whole meeting on February 3, 1998, he suggested that the Street and Alley Committee should Feview and recommend a policy regarding the recycling program with the school district. He also got a call and feels when they read the paper they got the wrong idea. There is a Street and Alley Committee meeting scheduled to look at the status of the recycling program. There being no further business to come before the council at this time, the meeting was adjourned at 7:57 p.m. Donald L. Hackmann, Clerk-Treasurer Approved by the Mayor and passed by the City Council of the City of Laurel, Montana, this 3rd day of March, 1998. Donald L. Hackman~urer h~a/rles Rodge~J~rs, M~r