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HomeMy WebLinkAboutCouncil Workshop Minutes 07.12.2011 MINUTES COUNCIL WORKSHOP JULY 12, 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 July 12, 2011. COUNCIL MEMBERS PRESENT: _x Emelie Eaton _x_ Doug Poehls _x_ Bruce McGee _x_ Mark Mace _x Chuck Rodgers _x_ Chuck Dickerson _x Tom Nelson _x Norm Stamper OTHERS PRESENT: Sam Painter Kurt Markegard Chad Hanson, Great West Engineering 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 • Laurel Ambulance Service Appointments: Heather Fitzhugh, Camille Miller, Brook Murphy The appointments will be on the July 19 council agenda. Executive Review: • Discussion — Water and Sewer Rate Study Mayor Olson asked the council for their comments and questions. Chad Hanson, Great West Engineering, stated that he went through the rate study at the June 28 workshop, gave the council some time for review, and is now back to answer any questions. There was a question regarding the recent request for information about water rates. Mayor Olson stated that copies of any correspondence between council members and/or city staff regarding water and water rates pertaining to bulk water rate users have been requested. Mayor Olson and Chad Hanson have provided copies of their correspondence, and council members should do the same. Sam explained that a request was received for documents pertaining to the water rates after the council decided to have a water rate study done, and the city intends to provide the documents. Council Workshop Minutes of July 12, 2011 Mayor Olson spoke regarding the water rate study. The rate structure and calculations are based on four steps: equivalent dwelling units; base rate; usage charge; and capital improvements surcharge. This is an annual rate increase of $1.00 for capital because of the amount of money needed to complete the water and wastewater projects and to improve the water plant. DEQ's disinfection requirements for emissions of phosphorus and nitrates into the river will go into effect in 2013. There was discussion regarding the process to change the rate structure. The council must approve a resolution of intent to raise the rates, followed by a 30 -day public comment period with a scheduled public hearing, and then the council must pass a resolution to raise the rates. After approval by the council, the current rate structure would be completely replaced with the proposed water and sewer rate structure. The charge of $1.80/1,000 gallons would be replaced with a charge of $2.86/1,000 gallons. However, the base rate would be reduced in order to rebalance the methodology of charging. Doug stated that a resident's bill would actually go down if they only used the first 1,000 gallons billed. Chad stated that resident, non - resident, commercial, and industrial accounts will pay more if they use more water and pay less if they use less water. The goal was to get a more balanced system because 90 percent of the people were using 70 percent of the water and the water treatment plant is expensive. The wastewater treatment plant is also expensive. The more water pumped through the plant, the higher the cost. Table 5.2 in the Water and Sewer Rate Study summarizes the impacts. The typical residential rate using the average usage would go up $9.63 /month, which is less than the $10.00 capital improvement charge proposed. Actually, the rate is going down $.37 /month but then the city needs to start raising capital reserves for the improvements that need to be done. Even though the proposal raised the usage and lowered the base rate, it balanced out pretty close. There was discussion regarding scheduling a public hearing at a council workshop. Chad and Sam will review the statute to determine the appropriate dates for the resolution of intent, the public hearing, and the resolution to increase the water and sewer rates. Notices will be mailed to the city's water and/or sewer customers, as well as the Montana Consumer Counsel. Mayor Olson asked the council to submit any questions regarding the water and sewer rate study to him for further explanation from Chad Hanson. • Discussion — Council's intent for the next Urban Route Project (West Railroad Street) Kurt Markegard, Public Works Director, explained that he and Heidi Jensen recently met with DOT officials to discuss the process for the city to go forward with urban projects. Due to the 8th Avenue ARRA (American Reinvestment and Recovery Act) funding, the city has about $2.2 million in urban funds, with an additional amount of $200,000 per year. The 8th Avenue project took eight to ten years, so Kurt asked the council for direction as to where the council wants the urban funds to be used. The urban routes include 8th Avenue, 12 Street, 1s Avenue, Maryland Lane, East/West Main and Railroad Street. Kurt asked if the council would like West Railroad Street to be the next project. The city cannot get any state pavement preservation funding for West Railroad because it ranks too low on the pavement condition index and is not eligible for pavement maintenance and needs to be reconstructed. It could take eight to ten years for the DOT to prepare the plans and identify the engineers to start working on another project. MDT's Red Book goes out five years, but the project is 2 Council Workshop Minutes of July 12, 2011 not in there yet. Kurt stated that staff would like the council to approve a resolution of intent for the use of the $2.2 million urban funds as a future project. There was a lengthy discussion which included: whether the $2.2 million would be sufficient for the West Railroad Street project; the additional $200,000 /year that accumulates in the city's urban funds; the ability to borrow urban funds up to five years in advance; the possibility of including curb, gutter, and sidewalk construction on East Railroad in the project; the need to identify a project using the available funding; the possibility of identifying West Railroad as the city's primary concern and East Railroad as a secondary concern if funding is available; concerns and issues regarding the proposed west Laurel interchange; constructing an underpass /overpass on West Railroad to address the south side access issues; MDT's decision to not include an elevated construction over the railroad in the first phase of the interchange project; the suggestion to write a letter of appeal to MDT regarding Laurel's needs for emergency services accessibility and development in the area of the interchange project; the railroad no longer plans to build the refueling stations; LURA's proposal for parking on the south side of Main Street; and the suggestion for railroad and MDT representatives to meet with the council. Kurt suggested scheduling DOT representatives to attend a council meeting for further explanation of the urban funding process. Mayor Olson stated that representatives would be scheduled to attend a council workshop in the near future. • Resolution — Release funds from the TIF District fund for facade improvements for Laurel Movie Haus (Riley Cooke) Mayor Olson stated that Riley Cooke approached LURA for grant funds for a facade improvement project for the Laurel Movie Haus. LURA's sub - committee of Dean Rankin and Linda Frickel heard the request and would like the council to approve it. The council discussed the grant request for $6,229.28 at length, and there were some questions regarding the total cost of the project versus the funding requested. It was understood that the requested amount is half of the cost of the project. Sam stated that, in order to get a grant, the applicant has to match one -to -one. If the applicant is applying for $6,000, he would have to match the $6,000, and thus the project would have to be a $12,000 project. If that is wrong, LURA needs to clarify that the total project is $6,000 and the applicant is seeking $3,000 in grant funds. Mayor Olson will ask the city planner for further clarification and email the information to the council. Council Issues: • Discussion regarding Pacific Steel/car crusher (Doug Poehls) Doug stated that a constituent contacted him about the possibility of encouraging Pacific Steel to locate their car shredder /crusher business in Laurel, since it was recently turned down by the County Commissioners because it was too close to a residential area in Billings. The individual wants to know if the City of Laurel would be willing to write a letter of interest to Pacific Steel to see if they would be interested in locating in Laurel, specifically down by the rail yard or on privately owned land between the interstate and the rail plant. The car crusher /shredder, according to the individual, would be the only one in the State of Montana and would employ about eighteen people. 3 Council Workshop Minutes of July 12, 2011 There was discussion regarding possible locations for the business in heavy industrial or light industrial zoning areas. Emelie recently asked some residents about the idea and could not find anybody who objected to it. One person said that, because of the proximity to Laurel, any objections would be addressed by the Laurel City- County Planning Board. Chuck Dickerson stated that it is worth pursuing. Tom spoke regarding considerations for water services, additional services, and possible annexation for tax purposes. Norm stated that the city could contact Pacific Steel, as it sounds like it would be worth pursuing. Kurt suggested that Big Sky EDA could assist the city. Mayor Olson stated that Big Sky EDA has offered its services to the City of Laurel through Steve Zeier. Mayor Olson suggested that the council could form a task force to find additional information to present to the council. Emelie and Doug agreed to be on the task force. Mayor Olson suggested that Heidi Jensen, city planner, also serve on the task force. With the council's consideration, he would like to be on the task force. Doug suggested that the individual that approached him about it might want to be on the task force. Doug asked that a motion to form a task force be placed on next Tuesday's council agenda. Other items • Resolution — Memorandum of Understanding with Yellowstone County Council on Aging Mayor Olson stated that the MOU is between the City of Laurel and the Council on Aging to provide reimbursement for bus transit services. Corrections will be made so the contract and resolution refer to the Yellowstone County Council on Aging, instead of the Yellowstone Council on Aging. • Resolutions for SID No. 113 Mayor Olson stated that progress has been made on the storm water connections on SE 4 Street. The city needs to move forward with the proposed creation of SID No. 113 in order to complete the overlay project by the end of the season. A Letter of Engagement from Dorsey & Whitney is needed for them to prepare the resolution of intent for the creation of SID No. 113. Mayor Olson contacted Dorsey & Whitney today, and staff will contact them tomorrow regarding the documents needed. Copies of the resolutions for the Letter of Engagement and the resolution of intent to create SID No. 113 will be distributed as soon as possible. There was a brief discussion regarding the ExxonMobil oil spill and the positive economic effects for Tractor Supply and ACE Hardware. 4 Council Workshop Minutes of July 12, 2011 Review of draft council agenda for July 19, 2011 The motion to form a task force regarding the possibility of encouraging Pacific Steel to locate in Laurel and the two resolutions for SID No. 113 will be added to the council agenda. Attendance at the July 19, 2011 council meeting All council members will attend. Announcements Doug, Tom and Emelie talked after last Tuesday's council meeting. Since Tom feels he might be overburdened with committees, he might want to have Emelie replace him on the Budget/Finance Committee. Doug has not made that proposal yet and will talk to Mayor Olson about it. Mark stated that the Public Works Committee meeting was cancelled last night and all information and items will go on the August agenda. Chuck Dickerson asked staff to check MCA regarding requirements for "no smoking" signage on public buildings and city hall in particular. Norm commented about the work being done on North Harrison Avenue in Butte. It is a mess now but will be nice when it is done. Norm stated that the Park Board has a vacancy for a council member and a vacancy for a public member. A lady from Elena Subdivision attended the Park Board meeting and might be interested in the position. Mayor Olson asked that she submit a letter of interest to serve on the Park Board. Chuck Dickerson stated his interest in filling the council position on the Park Board. Tom attended the recent meetings regarding the ExxonMobil oil spill. The meetings were informative and included the different agencies participating in the cleanup and the oversight. Some questions have been raised on issues that will be addressed in the future. Mayor Olson stated that Laurel was well represented at the meetings. On Wednesday, July 13 there will be a public informational meeting sponsored with cooperative efforts between the EPA and ExxonMobil. Chuck Rodgers stated that the Cemetery Commission did not meet last night but will meet next month. Emelie asked that someone from the Laurel Historic Preservation Society be contacted before the siren tower is moved in order to document it and write an article for the next book. Emelie stated that someone approached her recently about the Rod and Gun Club. They were politicking for a renewed lease with no changes. They indicated that there was significant damage to the wooden floor they built in the building. Emelie stated that she does not know how the task force is proceeding, but representatives from the organization are preparing their arguments. 5 Council Workshop Minutes of July 12, 2011 Mayor Olson stated that damage and concern for a city -owned building at Riverside Park should be documented and submitted to MMIA. Mayor Olson stated that the city planner informed him that the Park Board discussed the Elena Subdivision Park Maintenance District and would like discussion regarding the creation of it on the next council workshop agenda. Norm explained that the designated parkland areas in Elena Subdivision are just high weeds and nothing has been done. The Park Board is looking at the creation of a park maintenance district to put in topsoil and sprinkler systems. Heidi asked the Park Board for a recommendation that council allow her to proceed to have Dorsey & Whitney assist with the formation of the park maintenance district. Mayor Olson stated that the park maintenance district presentation would be scheduled on July 26 Mayor Olson stated that a MDT representative contacted him prior to tonight's meeting. The MDT office in Billings is also the official office of the Governor for the Silvertip spill response. On Wednesday morning at 9:30 a.m., Governor Schweitzer will make a statement and the Laurel City Council was invited to attend the informational meeting. Mayor Olson recently signed a contract with Butch Branstetter for $1,000 to repair the stucco on the outside of the council chambers building. The council workshop adjourned at 8:21 p.m. Respectfully submitted, aye 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. 6