HomeMy WebLinkAboutCouncil Workshop Minutes 08.30.2011 MINUTES
COUNCIL WORKSHOP
AUGUST 30, 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 6:48
p.m. on August 30, 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 _ Norm Stamper
OTHERS PRESENT:
Sam Painter Shirley Ewan
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
There were none.
Executive Review:
• 2011 -2012 Final Budget and Tax Resolutions
Mayor Olson asked if there were any questions or concerns. The council was asked to bring the
Preliminary Budget books back for updates next Tuesday.
Mayor Olson stated that the Budget/Finance Committee wanted to have a balanced budget. This is
Shirley's second budget process in Laurel and his seventh, and it has been the most difficult. Department
heads were asked to cut expenditures and the budget is down to the bare essentials to provide the services
to the public. Cash reserves were at 19 percent last year and are at 25 percent this year. With that 25
percent, the budget also supports a $95,000 contribution to the CIP Fund.
Mayor Olson thanked Shirley for her work on the budget and stated that some of her ideas were
instrumental in recognizing the 25 percent reserves. The city continues to make sure that the citizens'
dollar is being utilized in the best way possible.
The resolutions will be on the council agenda on September 6
• Resolution — Accept Great West Engineering's Water and Sewer Rate Study
Mayor Olson stated that copies of the final Water and Sewer Rate Study were distributed to the council.
The implementation schedule on page 20 is the only change in the study. The recent glitch in the
advertisement to the public caused the city to step back and make sure everything is correct.
Council Workshop Minutes of August 30, 2011
Chad Hanson, Great West Engineering, stated that the implementation schedule is the major difference
between the draft and the final document. Very few comments were received during the review process
with staff and the council. There was a glitch when the sewer rates were copied into the notice, so the city
decided to revise the implementation schedule a little.
Chad stated that the public hearing will be scheduled on October 18 According to the revised schedule,
the new rates would start on November 10 and be reflected on the December 10 bills.
There was a lengthy discussion regarding: future water and sewer rate increases; the capital improvements
surcharge of $4.00 /month for water and $6.00 /month for sewer; the need for an annual review of the base
rates; sewer averaging for the summer months based on actual charges during the winter months;
irrigation meters that do not include sewer charges; the future $6.2 million project in the wastewater
system; the fact that the promotion of water conservation might decrease income but would prolong the
life of the plant; water and sewer charges to CHS Refinery; the fact that CHS takes 50 percent of the
water and pays 30 percent of the bill; contract water sales; possible use of effluent water; some
communities do not use sewer averaging for commercial accounts; and the City of Laurel's rate structure
does not differentiate between residential and commercial accounts.
Mark Mace asked regarding the status of the water meters in the city.
Mayor Olson stated that there are some serious issues with that and he would put the item on the
September 13 council workshop agenda for discussion.
Chad spoke regarding the calculation for the capital surcharge for treatment plant. With a certain loan
amount and a specific number of users, the charge per month could be calculated at between $11 and $12
every time, but it is not a black and white number. When the city actually applies for the loan through
the SRF Program, they will do the debt coverage calculations and inform the city what is need to meet
their requirements. Chad stated that $6.00 /month is a good starting point for the sewer capital
improvements charge.
• Ordinance — Relating to Special Improvement District Revolving Fund
Mayor Olson stated that state statue allows the city to charge at least 5 percent and no more than 10
percent for the creation of each SID to cover those that default on the SID. Since the city has traditionally
charged 5 percent, Dorsey & Whitney, the city's bond counsel, recommended the change.
• Discussion — Easement monies from ExxonMobil
Mayor Olson asked for council discussion. He has asked Shirley to set up funds for the annual $15,000
right -of -way fee and the $1,000 per day park closure fee from ExxonMobil. Shirley has placed the money
in the General Fund under a restricted item.
There was a lengthy discussion regarding: putting the monies in a park maintenance fund; the need to
form a park maintenance fund; putting the monies in the General Fund with a restricted line item; the need
for a master plan for the parks; the city's typical camping revenues of $1,200 per week for 12 weeks each
year; flood damage to the Rod and Gun Club's building; the city's responsibility to fix the building; the
city's insurance carrier, MMIA, is aware of the situation; the timeframe to reopen Riverside Park; the
need to have a specialist evaluate the park prior to opening it; lease negotiations with the clubs at
Riverside Park; FEMA's evaluation of the damage in the park; and ExxonMobil's team for restoration
and compensation for damage done during Exxon's project. Mayor Olson reiterated Governor
Schweitzer's statement that "Exxon is done when we say they are done." There will be further council
2
Council Workshop Minutes of August 30, 2011
discussion regarding the easement monies at a future council workshop after more information is
available.
• Resolution — Authorizing the issuance of SID No. 113 bonds
Mayor Olson stated that SID No. 113 is for the street work on SE 4 Street. The total cost of the SID is
$336,000 for the mill and overlay on the street, plus the city's $60,000 leveling course. The property
owners are ready for the project to go forward.
• Resolution — Revise city attorney's contract
Mayor Olson stated that the revised contract is for $43,000 per year, or $3583.33 per month, for 36 hours
of civil services per month. The city attorney will probably attend council workshops and not attend
council meetings. If his services are needed during a council meeting, he could be reached by phone. The
new prosecutor's contract begins on Tuesday, September 6
• Resolution — Bradford Roofing contract
Mayor Olson explained the scope of the work and the bid for $7,110 for roof repairs to city hall. There
was discussion regarding the amount of vibration caused by the fire siren, methods to notify the fire
department, the suggestion of mounting the siren on a pole structure, and the request for the Emergency
Services Committee to discuss the issue. The roof repairs should be completed this fall.
• Resolution — Drug Enforcement Administration, State and Local Task Force Agreement
Mayor Olson stated that the annual agreement is for the Laurel police officer that works with the DEA in
Billings.
• Council Issues:
o Footbridge landscaping (Chuck Rodgers)
Chuck recently received a quote of $765.00 for 17 feet of rolled pipe to extend the existing railing at the
footbridge. There was discussion regarding: the need to identify a funding source for the project; the
suggestion to get the County involved; the fact that the County turned over the maintenance and operation
of the bridge to the City of Laurel; the need for a pedestrian crossing, a wheelchair ramp and signage at
this location; and the suggestion to ask the owners to give the narrow property to the City of Laurel for a
park. Mayor Olson will contact the County Commissioners and update the council at the September 13
council workshop.
o Pool endowment (Emelie Eaton)
Emelie stated that there is a communitywide question as to how the money can be used and clarification is
needed.
Sam recently contacted the attorney for the estate but has not received a response. The council will be
informed after the information is received.
o Status of enhancements at Murray Park, tree replacement and roofing over the generator
(Chuck Dickerson)
Two bids were received for the fencing over the generator at Murray Park. A small service contract will
be prepared for the lower bid of $2,475 so the fencing should be installed soon. The replacement tree will
be planted when the weather cools down, and the tree will be chosen from the Tree Board's list of trees.
o FAP building improvements (Emelie Eaton)
3
Council Workshop Minutes of August 30, 2011
Mayor Olson explained that the new ambulance building is a $360,000 construction project. Funding was
provided from monies not spent for the CAO position and monies that the police, fire, ambulance and
library departments donated from last year's budget. The city has to fund the remaining $208,000.
Ambulance charges for services were adjusted in order for the ambulance department to make monthly
payments for twelve years. The city will fund the remaining $208,000 through a loan from the Garbage
Fund. An alternative bidding process was used for the project. Bids are due to High Tech on Friday, and
city representatives will meet with the architect next week to determine the guaranteed maximum price
for the project. The successful bid will be presented to the council prior to the start of the project.
o Council Retreat / General Fund
Mayor Olson asked if the council would like to schedule a council retreat for discussion regarding options
to fund the General Fund. There was discussion. Mayor Olson will contact Dan Clark at the Local
Government Center regarding a retreat.
The League of Cities and Towns Conference is scheduled on October 5 6 and 7th in Billings. Mayor
Olson, Mark Mace and several staff members will attend the conference. Mayor Olson encouraged the
council to attend.
Other items
There were none.
Review of draft council agenda for September 6, 2011
There were no changes.
Attendance at the September 6, 2011 council meeting
All council members present will attend.
Announcements
Doug stated that the pavement on West Railroad Street looks great.
Mark received a call from Kay Spooner, a resident at Spruce Grove, regarding the tall weeds in the
retention pond behind the Rock Church. She wanted to know who to contact regarding this issue. Mayor
Olson will forward the concern.
Mayor Olson stated that he heard kudos today for the Laurel Fire Department's work on the Molt fire.
MDT has requested the council to submit questions by September 13 for their response at the council
workshop on September 27
The council workshop adjourned at 8:35 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