Loading...
HomeMy WebLinkAboutCity Council Packet 03.26.2024 - Revised AGENDA CITY OF LAUREL CITY COUNCIL MEETING TUESDAY, MARCH 26, 2024 6:30 PM COUNCIL CHAMBERS WELCOME . . . By your presence in the City Council Chambers, you are participating in the process of representative government. To encourage that participation, the City Council has specified times for citizen comments on its agenda -- once following the Consent Agenda, at which time citizens may address the Council concerning any brief community announcement not to exceed one minute in duration for any speaker; and again following Items Removed from the Consent Agenda, at which time citizens may address the Council on any matter of City business that is not on tonight’s agenda. Each speaker will be limited to three minutes, unless the time limit is extended by the Mayor with the consent of the Council. Citizens may also comment on any item removed from the consent agenda prior to council action, with each speaker limited to three minutes, unless the time limit is extended by the Mayor with the consent of the Council. If a citizen would like to comment on an age nda item, we ask that you wait until the agenda item is presented to the Council by the Mayor and the public is asked to comment by the Mayor. Any person who has any question concerning any agenda item may call the City Clerk -Treasurer's office to make an inquiry concerning the nature of the item described on the agenda. Your City government welcomes your interest and hopes you will attend the Laurel City Council meetings often. Pledge of Allegiance Roll Call of the Council Approval of Minutes 1. Approval of Minutes of March 12, 2024. Correspondence 2. Fire Monthly Report - Feburary 2024. 3. Beartooth RC&D March Correspondence Council Disclosure of Ex Parte Communications Public Hearing Consent Items NOTICE TO THE PUBLIC The Consent Calendar adopting the printed Recommended Council Action will be enacted with one vote. The Mayor will first ask the Council members if any Council member wishes to remove any item from the Consent Calendar for discussion and consideration. The matters removed from the Consent Calendar will be considered individually at the end of this Agenda under "Items Removed from the Consent Calendar." (See Section 12.) The entire Consent Calendar, with the exception of items removed to be discussed under "Items Removed from the Consent Calendar," is then voted upon by roll call under one motion. 4. Claims entered through March 22, 2024. 5. Approval of Payroll Register for PPE 3/17/2024 totaling $226,698.51. 6. Council Workshop Minutes of March 19, 2024. Ceremonial Calendar Reports of Boards and Commissions 7. Budget/Finance Committee Minutes of March 12, 2024. 8. Public Works Committee Minutes of Feburary 26, 2024. 9. Park Board Minutes of March 7, 2024. Audience Participation (Three-Minute Limit) 1 Citizens may address the Council regarding any item of City business that is not on tonight’s agenda. Comments regarding tonight’s agenda items will be accepted under Scheduled Matters. The duration for an individual speaking under Audience Participation is limited to three minutes. While all comments are welcome, the Council will not take action on any item not on the agenda. Scheduled Matters 10. Resolution No. R24-16: A Resolution Of The City Council Approving A Professional Services Agreement Between The City Of Laurel And Raftelis Financial Consultants, Inc. For A Water Rate Study. 11. Resolution R24-17: A Resolution Of The City Council Approving A Professional Services Agreement Between The City Of Laurel And Raftelis Financial Consultants, Inc. For A Wastewater Rate Study. 12. Resolution R24-18: A Resolution Of The City Council Authorizing The Additional Extension Of Approval Of Application For Special Review For J. Johnson Properties Pursuant To Resolution Nos. R22-07, R23-05, And R23-75. 13. Resolution R24-19: A Resolution Of The City Council Approving A Memorandum Of Understanding By And Between The City Of Laurel And Yellowstone County For The Golf Course Road Paving Project. 14. Resolution R24-20: A Resolution Of The City Council Approving Accrued Vacation Pay-Out For City Clerk-Treasurer. 15. Resolution No. R24-21: A Resolution Of The City Council Approving A Commitment Of Funding For The Completion Of The West Railroad Street Project. Items Removed From the Consent Agenda Community Announcements (One-Minute Limit) This portion of the meeting is to provide an opportunity for citizens to address the Council regarding community announcements. The duration for an individual speaking under Community Announcements is limited to one minute. While all comments are welcome, the Council will not take action on any item not on the agenda. Council Discussion Council members may give the City Council a brief report regarding committees or groups in which they are involved. Mayor Updates Unscheduled Matters 16. Closed Executive Session: Litigation Strategy. Adjournment The City makes reasonable accommodations for any known disabi lity that may interfere with a person’s ability to participate in this meeting. Persons needing accommodation must notify the City Clerk’s Office to make needed arrangements. To make your request known, please call 406-628-7431, Ext. 2, or write to City Clerk, PO Box 10, Laurel, MT 59044, or present your request at City Hall, 115 West First Street, Laurel, Montana. 2 File Attachments for Item: 1. Approval of Minutes of March 12, 2024. 3 4 5 6 7 8 9 10 11 12 File Attachments for Item: 2. Fire Monthly Report - Feburary 2024. 13 No of Calls No of Hours 1 5 Extrications 4 Other Rescues 14 6 Public Assist 6 Medical Assist.6 Other calls 14 56 Totals 0 Fire Prevention Total Training 535-YTD Total Maintenance 645 Announcements: Starting to prepare for the 2024 Wildland Season Alarms Wildland Fires Report for the Month of Structure Fires Severity Staffing Major Calls Structure Fires MVAs Total-YTD Respones Laurel Fire Department Community Service Feb-24 Total Hours Staffed N/A Structure Firefighting Conduct all levels of Structure Firefighting to include entry and attack, ventilation, salvage, overhaul, and investigation. A structure fire is a fire involving the structural components of various types of residential, commercial or industrial buildings. Wildland Firefighting Wildfire,brush fire, bush fire, desert fire, forest fire, grass fire, hill fire, peat fire, vegetation fire. Extrications Rescue victims entrapped in automobiles, machinery, farm equipment, buildings, and trenches. Other Rescues Rope Rescue, Water Rescue, Ice Rescue Alarms Any false alarms or malfunctions. Other Calls EMS assist, Industrial or Aircraft firefighting, Vehicle Fire, Hazmat, Spills, Public safety, Investigations, gas leaks, Carbon Monoxide problems, etc. Severity Staffing-Montana DNRC pays up to 8 firefighters to staff the station each day and respond as a Task Force to wildland fires within Yellowstone, Stillwater and Carbon Counties. They can also be called up to respond to fires anywhere in the Southern Zone areas. The 2 State owned type 5 wildland engines assigned to Laurel is used. This as proved to be beneficial to Laurel as means for quick responses to all incidents. 14 File Attachments for Item: 3. Beartooth RC&D March Correspondence 15 Beartooth RC&D Area, Inc. Board of Director’s Meeting Agenda Meeting 1:00 P.M. Thursday, March, 2024 Big Horn County Conference Room 1st Floor 121 3rd Street- Hardin, MT 1:00 pm 2:30 PM Meeting Called to Order Pledge of Allegiance, Introduction of Members and Guests Review Board Minutes Congressional Updates Josiah Porcel (Sen. Tester) Tory Kolkhorst (Sen. Daines) Emily Schneller (Rep. Rosendale) Treasurer/Financial Reports 1. Treasurer Update 2. RC&D Financials 3. RLF Financials Adding Danny Choiriki to Board as Special Appointment/Clarify SBDC Approval Of USDA Signature Authority for Myrna Staff Reports – Program/Project updates 1. Food/Ag Program – Joel Bertolino 2. Revolving Loan Fund – Nan Knight 3. Economic Development/ CRDC – Jacy Head 4. Operations Support- Myrna Lastusky Regional Roundup – News and updates from regional members on projects and activities in key CEDS categories…. (see topics on next page) Next Beartooth RC&D Area, Inc. Board of Directors Meeting May 16, 2024- Big Timber Sweet Grass County, MT Adjourn Chair Chair, All Chair, All Hauge/Knight Chairman Bertolino Knight Head Lastusky Roe et al Action Information Information Action Action Action Information Information Information Information Information Information 16 Page 2 Regional Roundup CEDS SWOT Our goals for the Roundup are to find out what’s happening in the area, keep the conversations focused, inform the others attending the meeting, and to tie it all back to and reinforce the importance of the CEDS. Please help us identify the projects in their area that fit into our CEDS categories: Be thinking about strengths and weaknesses of you r community or our region  Infrastructure  Housing  Transportation  Broadband  Economy  Upturns or downturns in industry sectors  New business openings (or closures)  Communication  Marketing and outreach  Services  Health care  Natural Resources  Agriculture  Energy  Human Capital  Workforce  Education NOTES: ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ________________________________________________________________________ 17 Page 3 1:00 pm 2:30 PM BRCD Meeting January 18th Meeting Called to Order Pledge of Allegiance, Introduction of Members and Guests Review Board Minutes Congressional Updates Josiah Porcel (Sen. Tester) Tory Kolkhorst (Sen. Daines) Emily Schneller (Rep. Rosendale) Treasurer/Financial Reports 4. Treasurer Update 5. RC&D Financials 6. RLF Financials Executive Committee Nominations Staff COLA Staff Reports – Program/Project updates 5. Food/Ag Program – Joel Bertolino 6. Revolving Loan Fund – Nan Knight 7. Economic Development/ CRDC – Jacy Head 8. Operations Support- Myrna Lastusky Regional Roundup – News and updates from regional members on projects and activities in key CEDS categories…. (see topics on next page) Next Beartooth RC&D Area, Inc. Board of Directors Meeting March 21, 2024- Big Horn County, MT Adjourn Chair Chair, All Chair, All Hauge/Knight Chair Chair Bertolino Knight Head Lastusky Roe et al Action Information Information Action Action Information Action Information Information Information Information Information Information 18 Page 4 Beartooth RC&D Board Meeting Minutes January 18, 2024 – 1:00 pm Big Sky Economic Development Conference Room Members Present: Joel Bertolino, BRCD Nan Knight, BRCD Jacy Head, BRCD Myrna Lastusky, BRCD Lorene Hintz, SBDC Kayla Vokral, SBDC Commissioner Don Jones, Yellowstone County Ryan Van Ballegooyen, Billings Job Service Commissioner Steve Riveland, Stillwater County Commissioner Scott Miller, Carbon County Holly Higgins, First Interstate Bank of Hardin Emily Schneller, Congressman Rosendale’s Office Josiah Porcel, Sen. Tester’s Office Danny Choriki, City of Billings Commissioner Don Jones, Yellowstone County Rep. Kerri Seekins-Crowe, Montana Dept. of Labor & Industry Guests: J.B. Farley, AgriOrganics Andy Rahn, Montana Land Source Present on Zoom: Thank you, Sibanye-Stillwater Mine, for the grant to help us purchase our Meeting Owls! Tina Toyne, Big Horn County/City of Hardin EDD Stephanie Ray, Stillwater County Planner Heidi Sparks, Laurel City Council Brent Moore, City of Red Lodge Commissioner Melanie Roe, Sweet Grass County Meeting Called to Order: Ryan Van Ballegooyen called the meeting to order. Pledge of Allegiance, Introduction of Members and Guests Review November Board Minutes (Action): Holly Higgins motioned to approve; Commissioner Miller seconded. Motion carried. Congressional Updates: Josiah Porcel (Sen. Tester)  Fentanyl Act – Sen. Tester unwavering efforts to address border crisis and fentanyl. Some crazy stuff has been happening with it on the Crow Reservation. Senator calls it a national emergency, wants to hold China accountable, and support law enforcement with necessary tools. He wants 19 Page 5 Congress to support his bi-partisan Fentanyl Act to impose economic sanctions on those involved in international fentanyl trafficking. Montana law enforcement are supportive of this legislation.  Colstrip: Senator is working to lower costs by urging Biden admin to reconsider a proposed rule that would increase energy prices and negatively impact grid reliability. Letter signed by Senators Sinema and Mannchen. Called on EPA for final rules for emissions that won’t raise costs for Montanans and keep Colstrip up and running.  Urging congressional leaders to pass his bi-partisan bill to address the acquisition of agricultural land from foreign adversaries. China has tried to purchase land near US military bases and other sensitive areas. We need to stop China, Iran, N. Korea, Russia from acquiring U.S. farmland. Emily Schneller (Rep. Rosendale)  Big news: 20 weeks pregnant – baby boy coming in June!  Budget: Funding for 4 bills was extended until tomorrow.  Congress working to pass a continuing resolution. Senate passed and House will vote tonight. Government shutdown unlikely now. o Congressman Rosendale thinks the Senate should be funded by separate appropriation bills and the budget crisis needs to be addressed – can’t keep kicking the can down the road. He’s also been outspoken about shutting down the government if the southern border is not addressed and shut down. He will not be voting for the continuing resolution. Reach out to Emily with any questions.  Congressman’s Land Act was recently introduced to protect American farmland – similar to what Josiah was saying. Ryan commented on how valuable it is to have our congressional reps at Beartooth Board meetings, hearing what is going on in their world and having them take our concerns back to congressional leaders. Myrna seconded this – said we’ve never had 3 reps who have been so diligent in attending meetings and also offering their support for any of our needs. Treasurer/Financial Reports: Nan Knight RLF Financials (ACTION)  Page 10: Dec 2023 financials for RLF. Between Beartooth and the RLF, we are sitting at 11 bank accounts right now.  In December one Yellowstone County loan was paid off.  We submitted an application for a new $750,000 IRP revolving loan fund in December. We will possibly hear by end of February if we’ll be awarded.  3 potential RMAP loans – 1 in Stillwater, 1 in Yellowstone, 1 in Big Horn County. RC&D Financials (ACTION)  When Nan started at Beartooth, we went to a 4-year comparison for Beartooth books.  2024 budget is already a little different than what is shown on page 11. CRDC contract just came in at $82,000, so our numbers will be a little higher than shown.  1 CRDC dropped out this year, so the money was spread out a bit. We went from $71,000 in the past to $82,000. Holly Higgins motioned to approve the RLF financials. Kayla Vokral seconded. Motion passed. 20 Page 6 Holly Higgins motioned to approve the RC&D financials. Kayla Vokral seconded. Motion passed. Executive Committee Nominations  Ryan, Melanie, and Marissa are willing to keep doing – Ryan as Chair, Melanie as Vice-Chair, & Marissa as Treasurer. Anyone want to be an alternate? We could sure use 1 or 2.  Zoom is an option for meetings  Scott Miller and Holly Higgins volunteered to be alternates. ACTION: Kayla Vokral motioned to keep the current members and approve the 2 new appointees. Lorene Hintz seconded. Motion carried. Staff COLA  Looked at the budget and are trying to keep up with inflation; we have Myrna doing some more difficult tasks than originally intended. Ryan applied his Job Service knowledge with pay scales. Executive Committee reviewed the numbers and recommended approval for an 8% increase. We have been adding programs and funding, so are able to do that with no problem.  Nan: Included in that discussion was to move Myrna to salary of 30 hours/week and prorate her benefits. Her increase will be $2 flat to get her a little closer to where she should be. ACTION: Commissioner Miller motioned to approve these increases. Holly Higgins seconded. Motion carried. Staff Reports – Program/Project Updates Food and Ag Program – Joel Bertolino Page 12:  Growth Through Ag (GTA) grants preliminary applications were due in October. Joel has been working with 3 that made it to the second round and were asked for full applications.  GTA full apps were due on Jan. 8th and all got them in. Interviews will be on Feb. 14th.  RFSI was new funding that Dept of Ag received for increasing food chain stabilit y, and we had 2 applicants for sure. Growth Through Ag (GTA) and USDA Projects:  Yellowstone Pasta – GTA applicant to expand biz  Oswald Farms – received VAPG last year, still working through.  Speedy & Flo’s Sweet Corn – Tina Toyne, Lorene, & Kayla helped them get their full application in for a greenhouse and a retail front in Hardin.  Greycliff Mill – applied to RFSI for funding to expand their food processing and increase equipment.  Yellowstone Valley Farms – Reuben Stahl put in RFSI application; also interested in a REAP application.  Rodi Farms – Carah Ronan referred to us to assist in her RFSI applications to expand fresh flowers/fresh vegetables business near Laurel.  J&D Meats – Hardin  Undammed Distilling – Billings 21 Page 7 Ongoing Projects:  Montana Prime Meats  Primitive Meats  Becky’s Berries FADC Outreach:  Alaskan Seafood Guys – did a visit with Lane Gobbs from MMEC.  Ranch House Meats – visited their new location in Lockwood. Initial Contact:  Monette Farms – Big Horn County. Reference from Danny Choriki.  Stovall Ranch – Yellowstone County. Referral from Dept. of Ag. Economic Development / CRDC – Jacy Head  BSTF – will change to Montana Growth Fund. There will be planning grants and low-interest loans under the MGF. o Stillwater County Industrial/Business Park Feasibility Study was completed and closed on Jan. 10, 2024.  USDA RCDI grants in Carbon and Big Horn: training continues with Angela Getchell and Tina Toyne. We transitioned those over to Myrna in the last quarter.  CRDC should be set until it sunsets.  Helping Hands Food Bank – waiting on DEQ for release status and next steps in qualifying them for the PetroFund.  Rocky Fork Inn site in Red Lodge: Waiting on FEMA to complete buyout process so we can move forward with the disposal and demo of the building.  Lodge Grass Lumberyard site: Priority site identified in our Brownfields grant. Pursued with DEQ’s assessment funds instead our Beartooth’s. Working with them on that.  Community-wide Brownfields Assessment Grant – RFP released for hiring contractors/Qualified Environmental Professionals (QEPs); need to create a Brownfields Steering Committee. If anyone is willing to be involved in that, please reach out to Jacy. Our Brownfields region is the 5-county region excluding Billings (BSED also has a Brownfields program).  DEQ Brownfields Collaboration – Beartooth is 1 of 3 selected to be a sub-recipient to one of DEQ’s new capacity-building grants. The scope of work will align with our Community-wide Brownfields Assessment grant. Will provide more funding to get boots on the ground.  RCAC Building Rural Economies (BRE) Program – recently awarded this 3-year grant as a sub- recipient. Target communities are Columbus and other communities in Stillwater and entire region. RCAC is a nationwide organization, and Amity Rembold with them is a great trainer and will be working with us to roll this out. Contracts will happen in February. o Identify and implement comprehensive community economic development activities. o Bridge project planning and implementation to create momentum needed for success. o Train and support local entrepreneurs working to start or expand businesses o Access capital for economic development and entrepreneurship  DOC-Business Attraction: still working on Project Quartz and Black Diamond, who are both looking at the Hardin Industrial Park for their business.  MEDA Spring conference in Red Lodge – April 24-25 at Roosevelt Center. 22 Page 8  Trainings in upcoming year – work with SBDC on training collaborations. Lorene and Kayla are setting up some trainings throughout our area.  Additional clients assisted (Nov 2023-Jan 2024): o Roman Theater o City of Red Lodge o Sandstone School Operations Support – Myrna Lastusky  Beartooth Annual Impact Report for 2023 – pass out copies  Montana Disaster Recovery Grant program through Montana Community Foundation – 2 copies of our final report if anyone wants to see all the good that money did throughout our region.  RCDI-RL: Working on housing in Carbon County – lots of changes and will update another time.  RCDI-BHC: Tina is doing great work. Submitted a CDBG grant for a housing needs study, working on a wayfinding project, and lots more. Regional Roundup: Commissioner Melanie Roe, Sweet Grass County:  A lot of property on the west end of town where we could do housing has been sold. No one seems to know who bought it, but they bought several large parcels – some is zoned residential, some business. Not sure what will happen with that.  To the northeast of town, the Heritage folks were going to put in a subdivision. That should happen in March and will help ease the burden on our housing market. We all have a housing shortage with no place for workers to live.  Lot of things moving under the surface. Brent Moore, City of Red Lodge:  Red Lodge Mountain finally getting some snow.  New mayor and several new councilmembers, new PW Director, looking for a new Planning Director – lots of change in terms of leadership, and we’ll see where that takes us. Tina Toyne, Big Horn County/City of Hardin Economic Development:  3 Brothers is now The Outlaw Café, and Allen (owner) has the theater up and running. Great for the community to have an option for entertainment.  J&D Meats decided to stop their lunch. They were providing a one-option lunch each day and stopped for now. Hope it comes back.  CDBG Planning Grant for a county-wide housing needs assessment – waiting to hear back.  Wayfinding Grant was received awhile back – but Drew and Tina are working on a RFP.  Business Attraction work that Jacy mentioned.  Had a site visit from HUD-LISC to interview 15 stakeholders regarding their needs. Will be meeting with them in early February to hear their thoughts. Commissioner Steve Riveland, Stillwater County:  Working to finish up some major road projects with an EDA grant. 23 Page 9  New Stillwater County Pavilion is open and doing a lot of events – had a winter festival there before Christmas. Have an ice skating rink there.  Steph is kicking off an ADA-compliant courthouse project to put in an elevator.  80 megawatt wind farm will be starting in April. Holly Higgins, First Interstate Bank of Hardin:  Lady wants to put some mobile homes in a tract of land to bring some more homes in if that goes through.  Big Horn River is flooding due to ice jams, so quite a few fields are flooded out.  Bear’s Truck Stop closed. Neither Holly nor Tina know what is happening.  Love’s Truck Stop has the RV spots just about finished; includes a basketball court, etc. Kayla Vokral / Lorene Hintz, Small Business Development Center:  Rocky Mountain Vista College is opening a vet school; partnering with the zoo. Rocky Mountain College has a pre-vet program and this will help funnel those kids locally.  Doing trainings, partnering with Beartooth to do some financial trainings.  Just got board approval for True Space Academy. Headquartered out of Denver, but the CEO is from Helena, Montana. Notable exits from Xerox and Travelocity. He studied 3000 businesses for 10 years to find formula for productive business growth. His data is backed by Gallup (to have it backed by Gallup, you have to go to court to get it approved). Working with him and learning about his program, we feel very confident in bringing it here. o Costs $5500 per business - 6 month academy, assessment of team, and working through the formula for their business. o Any existing businesses of 3+ years, $500K+ revenue in growth mindset – pass on to Kayla o Launch date is Feb. 22nd  Launching our Founders Meeting. Next Thursday is a presenter who created an AI platform that will go through applications and different tasks. The AI will read questions out loud, then the applicant responds verbally to it, and it gets phone screenings out of the way.  Ag Appreciation Banquet next Friday (per Ryan V). Danny Choriki, City of Billings:  Major focus in City is around public safety – several hearings on the issue. Focus last Monday was on Prevention. Danny’s biggest takeaway is there are a whole bunch of programs out there that are disconnected and may not even know the other exists. Pre-Covid people had a “rolodex” of contacts to reach out to, but that is no more. The City is looking at options for updating technology and communications between entities.  Talk about asking County Commissioners to increase the mill levy for mental health. $300 million the State needs to do something with. Huge gap. And having mental health issues just taken to the county jail is not a good long-term solution.  School District – new superintendent has many new ideas to broaden opportunities for high school students in terms of careers. One option is to take Washington School (downtown/midtown area) and turn from elementary into high school and have it focus on Information Technology and Communications Technology. Kind of like having more specialized career centers.  County put out an architect to look at a plan for what the City Council asked for, which was a municipal holding center at the County Jail. Architect said it will cost 3.3 million. We need to find the money if we are going to do it. City and County are actively working together on this project. 24 Page 10 Commissioner Don Jones, Yellowstone County:  Picking up where Danny left off on the County Jail project . . .  Looking at 72-hour hold and must see a judge before you are released.  County has to pay all medical expenses when we put someone in jail.  Hope this will be a deterrent.  Will have 30-40 beds for these short-term holds to slow criminals down a little bit. Quick release times are very dispiriting to the police when the crooks beat them out the door.  Probably 12-18 months before we do it. Cost will be close to $5 million with architectural fees and everything else put together.  Also looking at expanding long-term beds in the County Jail – will hire a consultant to look at what we need. Short-term beds will always be a need, and the arraignment court will process those people out and figure out what to do with them.  Building will go up quickly. Not cheap but well worth it. Will be connected on one of current jail facilities.  Will be located as part of the County Jail.  Might make it 2 stories – add a second floor now and then build it out later on.  Commissioner Miller offered any help Carbon County can give.  Our biggest liability is our jail – there are a lot more mental health issues that end up in the jails. Rep. Kerri Seekins-Crowe, Department of Labor:  As an engagement specialist for Dept of Labor, Kerri is very focused on the re-entry side for prisoners.  Have become grant manager for the Proud To federal grant – hoping the processes on the federal side will also help on State side.  Will help Dept of Labor, Dept of Corrections, Parole, Dept of Education . . . helping with pre-release, continuum of care, education. Our community colleges are doing a great job in helping not just re- entry but the general public.  Have stackable credits or shorter-term training to get people in the workforce more quickly – CAN, welding construction.  Proud To grant – apprenticeship is the big focus. Goal is to put into place processes that we can also use in the State as they come out of Dept of Corr. Recidivism rate is 34%, but some of that stat is people going in and out with pre-release, Beta program, etc.  Housing and Mental Health are big issues, but not dealing with at this moment – just focusing on training and jobs right now.  What she is asking is to find businesses who will be sponsors for apprenticeships from the justice system. Many employers are reluctant to hire someone from justice system. Understand that, but we are also struggling with workforce, community stability, family stability, especially in Billings and Great Falls.  Will help businesses to understand education-wise how we can help and support them.  When someone is preparing for release, there will be a process for accountability. When someone is done with DOC, they are dropped, no longer their problem. So how can DOL provide wraparound services? Education – continuum of care as we deal with housing, mental health, social services, etc.  Please send Kerri names of companies that might be willing to speak with her about this. Even ones that are NOT willing to participate, Kerri would like to speak with them to see what part of it won’t work for them or what didn’t work well in the past.  Trying to provide possibilities for people who are just getting out of prison. 25 Page 11  Give businesses Kerri’s number: 406-208-6587 Kerri Seekins-Crowe – any company who is willing to talk about the program with Kerri.  Several minutes of discussion in the room – what has worked in other states, what has been tried before, other needs that can’t be addressed with this particular program, etc.  Ryan: These programs have been shown to work for a long time – just have to figure out a system that can work. It definitely takes a community. One of Montana’s challenges is we have a lack of Economies of Scale, so it’s a real challenge here. But there are some great jobs with short-term training (like CNAs now). Scott Miller, Carbon County Commission:  Red Lodge airport has 6, possibly 7, new hangars coming in. Airport is growing. There is now fuel available at the airport.  Good relationship with the newly elected officials in Red Lodge. Airport Board and Fair Board and City and County all now get along.  Red Lodge Rodeo Committee – of 700 rodeos in the PRCA, Red Lodge is the #1 rodeo. Millions of dollars and more cowboys coming, stands will get bigger.  Bridges: Brent’s firm really helped us and we have people driving across bridges again. Cost $7 million, and FEMA should be reimbursing us. Pretty much recovered from the floods.  Bridger: New truck stop coming in and will hire more people. Will have a restaurant, convenience store, and semi parking.  Oswald Meats and Carbon County Meats are both killing it – nothing but good news coming out of them. Beartooth has really helped both of them.  Fromberg: County is helping the Fromberg City Council put in a $700,000 project on the river to help protect the bridge and the water pumps that are down there, which in turn will protect the town. We are putting in about 50-80 feet of riprap in the river to protect it. Project will kick off soon.  Tomahawk Bar in Fromberg: 2 guys from the mine bought it and it’s opened up and the restaurant is packed every night.  3 bars/restaurants – Roberts, Joliet, and Edgar Bar – all changed hands recently or are being sold and bought. Business is good.  Lot of housing and subdivisions going in, going from 80 acres to 20 acres to 10 acres and planting houses – so a lot of people moving in; sanitarian is very busy. County is growing.  If you know any nurses, our County Health Dept is hiring.  The Health Department, schools, senior centers are all doing great in Carbon County. Next Beartooth RC&D Area, Inc. Board of Directors Meeting: March 21, 2024 – Big Horn County Meeting adjourned at 2:27 pm. 26 Page 12 Revolving Loan Fund Books- December 2023 Loan Client Review County # of loans $ Loaned out Big Horn 2 $199,558.92 Stillwater 1 $143,209.43 Yellowstone 11 $755,236.48 Carbon 3 $366,769.68 Sweet Grass 2 $143,544.47 Total: 18 $1,608,318.98  One Yellowstone county loan paid off this month.  New IRP Loan fund application submitted to USDA  Two potential RMAP loan Bank Balances as of December 31, 2023 Total available for lending Bank of Joliet- RMAP $ 158,737.65 $ 153,671.64 $300,000 (still waiting to be drawn down) Bank of Joliet – RMAP LOAN LOSS $ 2,500.94 $ 0.00 Bank of Joliet EDA $ 9,608.29 $ 9,608.29 Bank of Joliet-CDBG $ 96,985.09 $ 96,985.09 Bank of Joliet- IRP $ 163,347.04 $ 163,347.04 Bank of Joliet-Fromberg $ 31,477.49 $ 31,477.49 Available: $ 455,089.55 Restricted Accounts Principal amounts paid back FIB – SSBCI 2.0 $ 148,621.00 $ 2015.59 BOJ- SSBCI 2.0 $ 79,651.50 $ 1,906.06 27 Page 13 Beartooth RC&D Budget Comparison 2023 Income 2024 Income INCOME Budget Actual Budget Actual Budget Actual Budget Actual AG-FOOD AND AG CENTER85,007 73,538 45,000 70,057 AG-FOOD AND AG CENTER45,000 48,706 AG-FOOD AND AG CENTER 60,000 60,000 AG-MCDC 1,000 500 0 Specialty Crop Block 35,000 31,286 Specialty Crop Block 58,166 58,166 BOARD - EDA SPONSOR DUES55,907 54,614 56,979 56,844 BOARD - EDA SPONSOR DUES56,979 55,711 FARM TO SCHOOL 1,200 1,200 BOARD-INTEREST INCOME 400 300 400 845 BOARD-INTEREST INCOME 400 736 REAP 5,000 5,000 BOARD-FOUNDATION MONEY3,700 3,373 3,300 3,830 BOARD-FOUNDATION MONEY3,300 3,641 BOARD - EDA SPONSOR DUES 56,979 56,210 RLF-STAFF REIMBURSE 18,000 18,000 0 RLF-STAFF REIMBURSE 15,000 5,066 BOARD-INTEREST INCOME 750 750 RLF-ORIG FEES 5,000 7,500 6,152 RLF-ORIG FEES 5,000 2,764 BOARD-FOUNDATION MONEY 3,300 3,300 CRDC 71,907 71,844 71,000 71,844 CRDC 71,000 71,844 RLF-STAFF REIMBURSE 15,000 15,000 CGWG/ fuels 6,147 EDA - GRANT 70,000 70,000 RLF-ORIG FEES 5,000 5,000 MISC GRANT ADMIN $10,750 12,750 BSTF ADMIN $4,000 RLF- RMAP 12,500 12,500 EDA - GRANT 70,000 70,000 70,000 70,000 RCDI ( Big Horn) 2,500 2,444 BROWNFIELD 19,250 19,250 SW-GRANT 224,357 RCDI (Red Lodge)4,000 1,592 CRDC 50,000 71,000 BSTF 44,220 Pass- Through 115,634 EDA - GRANT 70,000 70,000 EDA-CARES ACT 200,000 100,000 other Admin 2,500 BSTF ADMIN $1,950 1,950 Pass- Through 73,102 RCAC 25,000 25,000 Total Income 321,671 748,393 285,429 452,674 312,179 411,921 RCDI ( Big Horn) 2,800 2,800 RCDI (Red Lodge)2,800 2,800 Pass- Through 389,695 0 409,926 EXPENSES Expenses for 2023 Expenses for 2024 TOTAL STAFF EXPENSE 256,044 245,234 231,429 233,496 TOTAL STAFF EXPENSE244,441 241,301 TOTAL STAFF EXPENSE 245,441 COMMUNICATIONS 6,000 7,194 4,500 7,167 COMMUNICATIONS 7,000 7,300 COMMUNICATIONS 9,000 EQUIPMENT & VEHICLE 8,520 4,970 4,500 9,581 EQUIPMENT & VEHICLE 6,000 5,370 EQUIPMENT & VEHICLE 7,000 CONTRACTUAL 21,220 442,632 21,100 195,509 CONTRACTUAL 25,000 126,784 CONTRACTUAL 30,000 SUPPLIES 9,800 10,908 5,000 10,559 SUPPLIES 7,000 14,853 SUPPLIES 8,000 TRAVEL 10,140 1,534 7,800 3,756 TRAVEL 5,500 9,838 TRAVEL 15,500 OTHER 8,430 10,618 10,000 12,515 OTHER 11,500 9,265 OTHER 13,500 Total Expense for the year320,154 723,091 284,329 472,583 EXPENSE TOTAL 306,441 414,711 EXPENSE TOTAL 328,441 0 Net Income 1,517 25,302 1,100 -19,910 5,738 -2,789 61,254 0 The above income figures currently include both "net income" and "pass-through" funds. We are working on the ability to state these amounts independently to provide a more accurate picture of the budget. Statement Ending: 08/31/202312/31/2023 Checking Account:$79,322.56 Savings Account:$65,316.89 Building Account:$4,494.13 2024202120222023 28 Page 14 Revolving Loan Fund Books- February 2024 Loan Client Review County # of loans $ Loaned out Big Horn 2 $197,586.53 Stillwater 2 $191,424.62 Yellowstone 12 $814,755.15 Carbon 3 $364,957.38 Sweet Grass 2 $141,215.25 Total: 21 $1,709,938.93  Closed one new RMAP loan in February.  One potential new RMAP loan and two others in the pipeline.  Due to funding availability with USDA, BRCD IRP application wasn’t selected this cycle. BRCD will resubmit next cycle. Bank Balances as of February 29, 2024 Total available for lending Bank of Joliet- RMAP $ 105,010.27 $ 105,010.27 $300,000 (still waiting to be drawn down) Bank of Joliet – RMAP LOAN LOSS $ 2,500.94 $ 0.00 Bank of Joliet EDA $ 9,849.22 $ 9,849.22 Bank of Joliet-CDBG $ 108,297.26 $ 108,297.26 Bank of Joliet- IRP $ 170,805.13 $ 135,805.13 Bank of Joliet-Fromberg $ 31,477.49 $ 31,477.49 Available: $ 390,439.37 Restricted Accounts Principal amounts paid back FIB – SSBCI 2.0 $ 148,621.00 $ 2,714.66 BOJ- SSBCI 2.0 $ 79,651.50 $ 4,025.24 29 Page 15 February 2024 Beartooth Books 2024 Income Budget Actual AG-FOOD AND AG CENTER 60,000 15,000 SPECIALTY CROP BLOCK 58,166 14,542 FARM -TO- SCHOOLS 1,200 3,751 REAP 5,000 BOARD - EDA SPONSOR DUES 56,979 43,521 BOARD-INTEREST INCOME 750 BOARD-FOUNDATION MONEY 3,300 RLF-STAFF REIMBURSE 15,000 RLF-ORIG FEES 5,000 500 RLF-RMAP TA 12,500 BROWNFIELD 19,250 1,377 CRDC 71,000 17,961 EDA - GRANT 70,000 17,500 BSTF ADMIN $1,950 1,950 RCAC 25,000 RCDI ( Big Horn) 2,800 448 RCDI (Red Lodge)2,800 460 Pass- Through 24,377 Restricted SSBCI 1,223 410,695 142,609 Expenses for 2024 TOTAL STAFF EXPENSE 261,534 42,120 COMMUNICATIONS 8,000 5,916 EQUIPMENT & VEHICLE 6,000 798 CONTRACTUAL 25,000 12,119 INSURANCES 7,000 666 RENT/ UTILITIES 10,000 500 SUPPLIES 10,000 3,400 TRAVEL 15,000 942 OTHER 10,000 42 EXPENSE TOTAL 352,534 66,502 76,107 Statement Ending: 02/29/2024 Checking Account:$110,005.75 Savings Account:$65,316.89 Building Account:$4,488.53 2024 30 Page 16 Beartooth RC&D Staff Project Update March 2024 FOOD AND AG DEVELOPMENT CENTER PROJECTS Beartooth FADC Beartooth FADC staff assisted businesses with the GTA and Resilient Food Systems Infrastructure (RFSI) applications that were due January 8th. Beartooth FADC staff has been on regular meetings and trainings on becoming a technical assistance provider for USDA Rural Energy for America. An in person training will be held in April for all Food and Ag Centers in Livingston. Beartooth FADC has begun work on reaching out to local school leaders with information on Farm to School programs and is planning on developing a pilot harvest of the month with a local school. Growth Through Ag Projects and USDA Projects Beartooth FADC has worked with several businesses on Growth Through Ag other grants some of these will have an opportunity to be granted funding and we will continue to assist them in completing their business expansion projects. – Yellowstone Pasta Location- Billings, MT Contact-Henry Kennah Henry is a former chef for Jakes in Billings that started making fresh pasta using Montana hard red durum wheat. He was referred to us by our partners Kayla and Lorene at SBDC who are assisting him with business planning. Beartooth FADC worked with Henry to develop a Growth Through Ag grant and loan application to expand, their application was successful and they will receive $50,000.00 for this project Speedy and Flo’s Sweet Corn Location- Hardin, MT Contact-Flo Ramirez Beartooth FADC worked with Tina Toyne of Big Horn County Economic Development to assist Flo Ramirez and his wife. They started growing fresh produce and sweet corn for local sales over ten years ago on a one-and-a-half-acre garden plot. Their business has grown and they now raise 25 acres of sweet corn and have a 4-acre garden, they sell all of their fresh produce at locations in Hardin, several in Billings, Joliet, Miles City and Absarokee as well as in northern Wyoming. Beartooth FADC assisted Flo in developing his application for the GTA program for the development of their greenhouse, they were successful and will receive $50,000.00 for this project. 31 Page 17 Greycliff Mill Location- Big Timber MT Contact- Daniel Seylor Beartooth staff has been in communication with Greycliff mill in Big Timber to discuss funding sources for their value added ag operation. The value added business mills local grains used in the breads that are served at their restaurant and coffee shop, they plan to use local milk to make a line of cheeses and grow sweet corn, beans, apples and berries which will be utilized to be sold fresh and in jams. Beartooth visited with the business about using the RFSI funding to expand their food processing through purchasing equipment for their food processing business. Yellowstone Valley Farm Contact-Reuben Stahl Location-Laurel Reuben Stahl has a family greenhouse business growing basil and selling to FSA and Sysco, he would like to add another greenhouse to keep up with increased demand this last year. Beartooth staff visited Yellowstone Valley Farms and discussed the Rural Energy for America Program for funding to improve the energy efficiency of his greenhouse operations to lower the businesses energy bills. Beartooth RC&D assisted Reuben with developing RFSI application and will assist when he is interested in a USDA REAP application for his greenhouse expansion. Rodi Farms Location- Laurel, MT Contact-Carah Ronan Carah was referred to us to assist her in applying for RSFI funding to expand her business of fresh cut flowers and some fresh vegetables she operates on her families grain farm near Laurel, MT. Their business was not successful in with their application but we have assisted them in developing an Impact Grant for Women owned businesses. Grindy’s Cheese Balls Location- Billings, MT Contact- Jacob and Cindy This business began in 2021 based on a family recipe Jacob and Cindy have grown the business using their own recipes and local ingredients when available. They are now needing more funding for larger equipment to build their capacity for larger orders and have worked with Beartooth FADC and MMEC on their plans they are now working with Beartooth RLF on financing. Stovall Ranch and Yellowstone Feeders Location- Yellowstone County Contact- Turk Stovall The Stovall family are generational beef producers in Yellowstone County they have grown their operation to include two sizeable Feedlots and sell Certified Angus Beef as well as having their own branded beef 32 Page 18 products sold direct to consumer. Beartooth FADC talked with the business about the potential use of the REAP program for their expansion plans as well as USDA VAPG for their direct beef sales business. They are also looking at the USDA Supply Chain Guaranteed Loans. Georgette’s Galettes Location- Billings, MT Contact- Marc Leberger Marc has a business making Belgian style treats called Galettes he is looking to expand his business and purchase equipment, we looked at a couple of grant options he is most interested in applying for the GTA Business and Marketing grant. On Going Projects Oswald Farms Location- Joliet, MT Contact- Melissa Oswald Oswald Farms operates a generational ag operation that raises cattle feeds them, has them processed at a local USDA plant and sells their own branded beef products to local restaurants and locally through Facebook. They have developed their own retail location to sell their meat products and other local foods and it is located near the intersection of highway 310 and 312 both heavily traveled roads. Beartooth FADC has been working with USDA personnel with the business to apply for a Value Added Producer Grant for $250,000.00 to expand their direct to consumer beef business. Oswald Farms application has been selected for funding these operating funds will help them grow their direct beef sales business and their new retail store Becky’s Berries- Absarokee, MT Contact- Becky Stahl Location-Absarokee Beartooth FADC has been assisting Becky with locating specialized assistance in recipe development for a new line of products she is currently working on. They have now completed their recipes for a line of mustards and we are now helping them on developing a process for filling and packaging the products. Beartooth FADC has worked with MMEC to get resources to visit Becky to talk about the equipment and design for implementing this new process. On March 18th MMEC and Beartooth FADC set up a tour of Kings Cupboard Chocolates in Red Lodge with Becky to look at their process and equipment to see how it could work for her operation. Beartooth FADC Outreach Kings Cubboard Chocolates- Red Lodge, MT Grindy’s Cheese Balls- Billings,, MT Initial Contact Stovall Ranch- Yellowstone County Marc Leberger/ Georgette’s Galettes 33 Page 19 03/21/2024  Economic Development: CRDC / EDA PPG / EPA Brownfields o Next reporting period will include: -USDA RCDI Quarter reports (2)- will be submitted in April 2024 -CRDC Quarter report- will be submitted in April 2024 -EDA Partnership Planning Grant report- summer 2024 -EPA Brownfields ACRES Quarter report- will be submitted in April 2024 o Helping Hands Food Bank in Hardin- the board decided to move forward with Tetra Tech as they move forward with more testing and cleanup o Former Rocky Fork Inn site in Red Lodge- awaiting the FEMA buyout to be completed; may require another assessment depending on timing o Lodge Grass Lumberyard- the Phase II assessment and cost estimate draft has been distributed for comment o Community-Wide Brownfield Assessment Grant- 3 Qualified Environmental Professionals have been chosen for the program; task assignments will soon be assigned o DEQ Brownfields Collaboration- BRCD has been selected to be a sub recipient to one of DEQ’s new capacity building grants; it offers funding (salary of ½ a position), training, and support to enable them to engage the communities they work in on environmental topics; the grant lasts for three years with initial funds being received in spring 2024 o RCAC Building Rural Economies (BRE) Program- recently awarded this three-year grant as a sub recipient; doing onboarding meetings with RCAC staff o DOC-Business Attraction – still working on Project Quartz and Black Diamond; new Project Sentinel o MEDA Spring Conference in Red Lodge- April 24-25th at the Roosevelt Center; assisting Allison Corbyn with trainings and tours o Trainings in the upcoming year- work with SBDC on training collaborations o Additional Clients that were worked with (Jan. 15-Mar. 13 2024): City of Red Lodge/Mayor Westwood RL Pea Cannery Tom Fischer/ Old Hospital Quincy Dabney/Town of Lodge Grass Ford Hedge property in Edgar Town of Roberts Beau Simone Bill Foisy/BRTA Crazy Mountain Music Monte Koch Frequently Used Acronyms 34 Page 20 BIA – Bureau of Indian Affairs BLM – Bureau of Land Management BRCD – Beartooth RC&D BSEDA – Big Sky Economic Development Association BSTF – Big Sky Trust Fund CDBG – Community Development Block Grant CRDC – Certified Regional Development Corporation CEDS – Comprehensive Economic Development Strategy CTEP – Community Transportation Endowment Program EDA – Economic Development Administration EDD – Economic Development District FADC- Food and Ag Development Center GIS – Geographic Information Systems GPS – Global Positioning System GTA- Growth Through Ag Grant and Loan HOME – Montana Home Investment Partnerships Program HUD – US Department of Housing and Urban Development IRP – Intermediary Relending Program LESA – Land Evaluation Site Assessment MBOI – Montana Board of Investments MDOA- Montana Department of Agriculture MDOC – Montana Department of Commerce MDOL – Montana Dept. of Labor MDOT – Montana Dept. of Transportation MDFWP – Montana Dept. of Fish, Wildlife and Parks MEDA – Montana Economic Developers Association MMEC- Montana Manufacturing Extension Center NADO – National Association of Development Organizations NHS – Neighborhood Housing Services NRCS – Natural Resource Conservation Service RBDG – Rural Business Development Grant RC&D – Resource Conservation & Development RCDI – Rural Community Development Initiative RD – Rural Development (a division of USDA) RCPP- Regional Conservation Partnership Program REAP- Rural Energy for America Program RLF – Revolving Loan Fund RMAP- Rural Micro entrepreneur Assistance Program SBA – Small Business Administration SBDC – Small business Development Center SSBCI- State Small Business Credit Initiative TIFD – Tax Increment Finance District TSEP - Treasure State Endowment Program USDA – United States Department of Agriculture USFS – United States Forest Service LSL- Lead Service Lines 35 Beartooth Resource, Conservation and Development Area, Inc. Citizens Building Stronger Communities Business Plan 2013 36 37 Beartooth Resource and Development Area, Inc. Planning a Bright Future Page 1 ______________________________________________________________________________________________________________________ ________________________________________________________________________________________________ What is an RC&D? Established in 1969, the Beartooth Resource Conservation & Development Area, Inc. (RC&D) serves as a regional entity for the cooperative efforts of 5 counties in south central Montana in rural and economic development. The leadership of this non-profit corporation is comprised of elected officials and community leaders from the counties, incorporated towns and cities, conservation districts and tribal governments. The RC&D began as an unique partnership with the USDA Natural Resource Conservation Service (NRCS). Beartooth RC&D was initially formed to serve Stillwater and Carbon Counties. During the years Beartooth RC&D has expanded to include Yellowstone, Sweet Grass and Big Horn Counties. In February of 1996 the Economic Development Administration of the US Department of Commerce designated Beartooth RC&D as the Economic Development District for the region. RC&D’s take on a variety of forms, each with its own set of programs and services tailored to the needs of the region served. Beartooth RC&D provides programs and services in three distinct areas: Economic Development (Business), Resource Management (Conservation), and Public Infrastructure/Housing Services (Community). This is accomplished through complex network of partnership and funding sources, allowing us to create custom solutions for citizens and businesses in our area. Our Recent Evolution In 2011, the NRCS experienced significant funding reductions. One consequence of this was the elimination of funding and administrative support for RC&D offices nationwide. For Beartooth, this change required a rapid adjustment to its staffing levels, program scope and operating model in order to remain viable as a stand alone organization. Quickly we found new office space in Joliet, Montana; critical duties were re-distributed among remaining staff to ensure continuation of service levels and support for existing projects; and with the support of our Board of Directors, Beartooth staff has successfully transitioned away from NRCS support. A year after this separation we continue to carry a full (and growing) portfolio of projects across our five county region. This transition, while challenging, brings new opportunities for Beartooth. Our transformation to a private non-profit organization opens doors for lines of service that were not previously possible, including some fee-for-service activities which may be essential to compensating for the loss of some federal funding and administrative support. This planning document describes our current organizational status, and identifies Beartooth’s future direction as an RC&D. In it we re-commit to many vital objectives that have been our core business for years. We also account for opportunities to approach our work differently, offer new services, and expand the value we deliver to the Beartooth region as we move forward. This vision of our future will guide our decisions over the next five years. Beartooth RC&D Area, Inc. -- Business Plan 2013 38 Beartooth Resource and Development Area, Inc. Planning a Bright Future Page 2 ______________________________________________________________________________________________________________________ ________________________________________________________________________________________________ Mission Statement: Our mission is to serve as a regional vehicle to improve the economic and social condition through the conservation, utilization and development of the natural and human resources of the area. Business Philosophy: Beartooth Resource Conservation and Development Area, Inc. serves Big Horn, Carbon, Stillwater, Sweet Grass and Yellowstone Counties. Our vision is for a strong, healthy economy for the area that offers opportunities for growth, while protecting unique resources in the region. We partner with other local and neighboring resource providers in economic development, workforce, community planning, higher education, and others to provide comprehensive service delivery to the citizens of south central Montana. The region’s Comprehensive Economic Development Strategy (CEDS) first published in 2000 provides a summary of the demographics, conditions, economic drivers, and goals and objectives for moving the entire region forward. One of Beartooth RC&D’s primary purposes is to keep this document current to the needs and issues that must be addressed to maintain a vibrant, diverse economy. The Board also approves an annual work plan to guide the staff and help prioritize workload which includes specific objectives, each with benchmarks and deliverables. Organizational Plan: Beartooth RC&D is a 501(c)(3) non-profit organization governed by a Board of Directors representing local government officials, other planning organizations, higher education, workforce development, and business interests in the region. The Board makes decisions related to mission, policy, budget, and projects requiring material commitment of staff time and resources. An Executive Committee oversees operations, staffing decisions, and short term financial issues. The staff consists of an Office Manager/Economic Development Director, Bookkeeper/RLF Manager, Ag Program Manager, Housing Program Coordinator, Forester, and Special Projects Coordinator. Location: Our office is currently located at 110 South Main Street in Joliet, MT which is centrally located in the region. We have also remained in Joliet with respect to our existing staff members as well as to remain grounded in a small, rural community which well represents our service priority. Recently we have been exploring an opportunity to transition to office space in Joliet that would improve the working environment for staff and make it possible to expand services to our clients by hosting projects, meetings, training or other specialized services. Business Hours: The office is open typically between 8am and 5pm weekdays, though the staff often works away from the office. Very little client business is handled from the office location. 39 Beartooth Resource and Development Area, Inc. Planning a Bright Future Page 3 ______________________________________________________________________________________________________________________ ________________________________________________________________________________________________ Regional Service Provider We serve the region as the federally recognized Economic Development District, state recognized Certified Regional Development District, state Food and Ag Development Center, and Montana Cooperative Development Center, and the region’s Neighborworks Montana homeownership counseling provider. Product & Services: Our primary services include planning and development of business, community, and conservation related projects. The major programs we deliver within these focus areas are shown in the diagram at the right. This service mix and areas of emphasis have evolved over time based upon funding sources and local needs. Due to similar program delivery in our larger municipality by a partner organization, we tend to focus on projects in rural and underserved areas. Strengths: The Beartooth RC&D Board and staff are strategically experienced and positioned to facilitate discussion and implementation of economic development issues and objectives for the communities scattered across our broad, diverse five county region. The Board meetings, held in different communities every other month of the year, provide opportunity to tour recent projects and share current issues and experiences as well as provide a forum for discussion and strategic planning. Between meetings the Board and staff work hard in the various cities and towns to generate additional discussion and promote forward thinking and progress toward the guiding principles and objectives listed in the CEDS. RC&D SERVICES (What We Do) Business Services Client Base Financial /Planning (loans & grants) Business Plan Counseling Resource Network Referrals Strategic/Expansion Planning Administration/Facilitation Individual Businesses (existing or potential) Community Services Client Base Financial Planning/Expansion (loans & grants) Homebuyer Education/ Credit Counseling Business Recruitment/Retention Infrastructure Projects Administration/Facilitation Town Councils Chambers of Commerce State/Local/Tribal Legislators County Commissions Local Ec. Dev. Partners Non Profit Organizations Interest Groups / Taxpayers First Time Homebuyers Banks Conservation Services Client Base Landowner Education Fire Mitigation/Planning Food/AG Counseling Water Quality/Quantity Administration/Facilitation Local Govt.. Conservation Districts Service Providers/Contractors Landowners/Producers Individual Businesses Wildfire Mgmt. Entities 40 Beartooth Resource and Development Area, Inc. Planning a Bright Future Page 4 ______________________________________________________________________________________________________________________ ________________________________________________________________________________________________ Income and Expenses: Our operations are funded primarily by state and federal grant programs that aim to provide economic and community development to local served communities, as well as conservation projects such as our fuels mitigation and wildfire education programs. Each county provides matching funds either directly from county government or through shared arrangements with municipalities. The RLF also generates limited income in the form of fees and interest. We have recently targeted specialized services to local businesses and government that can be provided on a fee-for- service basis to diversify income opportunities. Additionally we would like to take advantage of fundraising efforts. Organizational expenses are primarily for staff salaries to deliver critical services required by state and federal grant programs as prioritized by the Board of Directors. Additional expense areas include office rent, utilities, insurance, vehicle/travel, and training. The chart below illustrates the relationship and approximate proportion of funding sources and expense types in the organization budget. It is important to note the significant amount of funds illustrated at the bottom that are “pass-through”, which do not contribute support for our operating costs. Economics: At present we are quite dependent on state and federal grant programs to fund the organization. Many of these sources are relatively long-standing programs that appear to be stable 41 Beartooth Resource and Development Area, Inc. Planning a Bright Future Page 5 ______________________________________________________________________________________________________________________ ________________________________________________________________________________________________ within the current political environment, but may be subject to change depending on the level of austerity adopted at the federal level in future years. Local matching funds are also somewhat dependent on budgeting cycles and availability of local government funding. Although the RLF is an income source, it does involve high-risk loans which introduce some uncertainty on fund performance. Consequently we regard this program primarily as a service rather than an income-generating activity. In 2012 we began to investigate opportunities to diversify our income stream through fee-for-service arrangements that do not compete with private consulting and business service-related firms. Financial Management: Beartooth RC&D continues to refine its fiscal policies in order to maintain adequate checks and balances in its management of incoming and outgoing funds. The organization undergoes an A-133 audit each year and has maintained high standards of fiscal responsibility. Customer Targets: Our primary customers are small businesses and individuals located in or looking to locate in our region. We also provide limited grant writing and administration services to local governments for facilities and infrastructure projects. Our Housing Program Coordinator serves potential first time homebuyers as well as individuals needing credit counseling or personal financial planning. The Forester assists landowners with fuels mitigation planning and implementation as well as timber management planning. Information/Outreach: The organization has printed and distributed regular newsletters in the past, but found this a less than effective way to communicate our activities. We report to our counties, cities, and towns with a highlighted project format annually at local government meetings. We also provide progress reports at Board meetings in spreadsheet and narrative formats. Numerous reports are also required by funding agencies for projects and work plans. We put significant effort into face meetings with constituents and local government officials. Our web presence today is basic, with general organizational and event content maintained by our own administrative staff. Liability and Insurances: Beartooth RC&D carries or provides a number of insurance, investment or liability coverage as a part of its corporate model, as follows:  Liability coverage for Directors and Officers – this coverage applies to all staff, directors and the Board against any legal actions or lawsuits arising from business conducted on behalf of the RC&D ($2 million per incident, $5 million per year cap)  Vehicle coverage – for the company vehicle (full coverage, $500 deductible)  Commercial Business Owners Insurance – provides property loss protection on contents from fire, flood, theft, etc. Also covers accidental injuries (i.e. falls) for people not covered by workers compensation  Health Insurance – offered for all full time employees (up to $450 per month for self acquired insurance plans)  Fidelity Bond – RLF Loan Fund bond for fund manager/bookkeeper ($40,000) – Required by EDA RLF rules  401k Bond – bonds Marvin Carter as the Administrator of our 401k plan (up to $200,000) - Required under IRS rules 42 Beartooth Resource and Development Area, Inc. Planning a Bright Future Page 6 ______________________________________________________________________________________________________________________ ________________________________________________________________________________________________ Where are we headed? The preceding information explains the origin, structure and role of Beartooth as an organization, and our current scope of operations and capacity for work. This section defines the opportunities and direction that the Board of Directors and staff believe are possible and in the best interest of the region that we serve. Our goals for the next five years at Beartooth fall into three categories: Funding, Facilities, and Services. Funding Our longstanding reliance on state and federal grant programs for income presents a risk that needs to be addressed. Beartooth survived the discontinuation of NRCS support in 2010, however this is a harbinger of future changes that we need to anticipate. Augmentation of these revenue streams will improve our stability and create contingencies in the event some of these programs are no longer funded. In addition, to implement expanded service goals, we may need additional discretionary funding that is not directly tied to grant administration. New fundraising strategies: most non-profit organizations employ fund-raising methods involving direct donation, annual or semi-annual events, charitable promotions and peer partnering to generate income for operations. Beartooth needs to include these strategies in its funding model. In 2012 we took a first step by soliciting donations from past clients we have helped. The yield was modest but encouraging, and suggests that some effort to develop a more formal and sophisticated campaign would be worth the effort and well-received in certain quarters of client base. Target: identify donation levels and mechanisms for 2013 and 2014? Fee for service opportunities: in concert with a facility expansion discussed below, incorporation of new services provided on a fee basis has the potential to augment Beartooth’s income while broadening its appeal to the business and conservation communities in the region. Concepts include thematic seminars, training and facilitation for interest groups in the area. Target: fee incomes for 2013 and 2014? Organizational Cost review: while the RC&D budget is already lean, an objective review of all costs with an eye toward elimination of services or activities that no longer make sense might be in order. The Staff and Executive Committee will perform expense reviews in conjunction with budget preparation to insure cost-effectiveness. Target: semi-annual cost reviews. 43 Beartooth Resource and Development Area, Inc. Planning a Bright Future Page 7 ______________________________________________________________________________________________________________________ ________________________________________________________________________________________________ Facilities In 2011, the discontinuation of NRCS funding forced the relocation of Beartooth’s operation to rented space. We were fortunate to find affordable and functional space in Joliet, however the existing facility lacks infrastructure for meetings and private counseling space. Recently Carbon County began work on a new building in Joliet to consolidate services, and when complete it will leave vacant an office on Main Street which Beartooth can obtain through a rental agreement at little or no direct cost. This space offers many advantages over current facility, including dedicated office space for staff, a large meeting room, improved phone and network wiring, and additional space to support business incubation. We intend to pursue this opportunity to transition to new office space, which will open doors for expansion of our services. Target: relocation to new office space by Summer, 2013 coupled with specific facilities plan for 2013/2014. Services In conjunction with relocation to improved office space in Joliet is a key feature of our 2013 business plan is creation of additional services designed to generate income for Beartooth. The facility we are considering will be more suitable for our business with private office space for client meetings, and a large meeting room for staff and board activities. It appears we can obtain the space without significant financial burden, allowing us to continue our focus on service delivery at current budgeted levels. In addition, we will have the opportunity to leverage the new office environment to expand our offerings. Here are a few possibilities we have discussed: Business incubation – by providing low cost or grant-subsidized start-up office space and infrastructure (computer, telephone, print/fax/email) to newly formed area businesses. Training/Counseling services – targeting needs for new or existing small businesses in the area with specialized, short duration training or counseling to fill knowledge gaps and enhance critical skills. Our goal: aid in the survival and expansion of our local small businesses, especially new enterprises. First Time Homebuyer and Credit counseling services: providing individual counseling for first- time homebuyers, credit repair and budgeting assistance. Partnership support – by becoming a satellite location for key RC&D partner organizations that need temporary workspace or meeting room facilities in our area, thus tightening our network of providers resources to benefit all RC&D clients. Target: detailed proposals for additional service levels - revised income projection by fall, 2013, or sooner. This deliverable should include a skill bank analysis to determine staffing adjustments needed for implementation. 44 Beartooth Resource and Development Area, Inc. Planning a Bright Future Page 8 ______________________________________________________________________________________________________________________ ________________________________________________________________________________________________ ------------------------------------------------------------------------------------------------------------- 45 File Attachments for Item: 6. Council Workshop Minutes of March 19, 2024. 46 47 48 49 50 File Attachments for Item: 7. Budget/Finance Committee Minutes of March 12, 2024. 51 52 53 File Attachments for Item: 8. Public Works Committee Minutes of Feburary 26, 2024. 54 55 56 57 58 59 60 File Attachments for Item: 9. Park Board Minutes of March 7, 2024. 61 62 File Attachments for Item: 10. Resolution No. R24-16: A Resolution Of The City Council Approving A Professional Services Agreement Between The City Of Laurel And Raftelis Financial Consultants, Inc. For A Water Rate Study. 63 R24-16 Approve Professional Services Agreement for Water Rate Study RESOLUTION NO. R24-16 A RESOLUTION OF THE CITY COUNCIL APPROVING A PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF LAUREL AND RAFTELIS FINANCIAL CONSULTANTS, INC. FOR A WATER RATE STUDY. BE IT RESOLVED by the City Council of the City of Laurel, Montana, Section 1: Approval. The Professional Services Agreement with Raftelis Financial Consultants, Inc. (hereinafter “the Professional Services Agreement) for a Water Rate Study (hereinafter “Water Rate Study”), a copy attached hereto and incorporated herein, is hereby approved. Section 2: Execution. The Mayor is hereby given authority to execute the Professional Services Agreement on behalf of the City. Introduced at a regular meeting of the City Council on the 26th day of March, 2024, by Council Member ________________. PASSED and APPROVED by the City Council of the City of Laurel the 26th day of March, 2024. APPROVED by the Mayor the 26th day of March, 2024. CITY OF LAUREL ___________________________ Dave Waggoner, Mayor ATTEST: _______________________________ Kelly Strecker, Clerk-Treasurer APPROVED AS TO FORM: ______________________________ Michele L. Braukmann, Civil City Attorney 64 Page 1 of 15 PROFESSIONAL SERVICES AGREEMENT BETWEEN CITY OF LAUREL, MT AND RAFTELIS FINANCIAL CONSULTANTS, INC. This Consulting Agreement (“Agreement”) is entered into this day of , 2024 (hereinafter referred to as the effective date of the agreement) by and between, City of Laurel, MT (the “Client”) and Raftelis Financial Consultants, Inc., 383 North Carona, Suite 244, Denver, CO 80218 (“Raftelis”). Witnesseth WHEREAS, Raftelis is engaged and experienced in public finance, management, and pricing, and service delivery, and WHEREAS, The Client desires to hire Raftelis and Raftelis agrees to provide services to the Client, NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree to the terms and conditions set forth herein. Article 1 – Statement of Work Raftelis shall provide professional consulting services to prepare Water Rate Study for Client. Raftelis will perform the services as set forth in its proposal sent to Client dated March 7, 2024 and included herein as Attachment A, the “Scope.” Article 2 – Time for Completion This Agreement will commence upon approval by the Client and remain in effect for a period of one year. Further renewals of this Agreement are at the option of and shall be mutually agreed to by the Parties. Article 3 – Compensation Client shall pay to Raftelis the sum not to exceed $39,560, which includes professional fees and direct expenses incurred in performing the scope of services, as well as an hourly technology expense reimbursement, outlined in Attachment B. The parties understand that this sum is based upon the scope of work contained herein at Raftelis’ current standard hourly rate schedule included in Attachment B. Any expansion of the scope of work by the Client shall involve discussion of and agreement about additional fees and time by both parties. Raftelis shall submit invoices to the Client on a monthly basis for services rendered to the date thereof. Such invoices shall be supported by appropriate documentation; at a minimum, the task performed, the individuals working on such task, the level of each such individual, and expenses incurred. Each invoice 65 Page 2 of 15 will contain all hours and expenses from Raftelis for the month. Upon receipt of monthly invoice, the Client will remit payment of same amount to Raftelis within 30 days. Article 4 – Additional Services At the Client’s request, Raftelis may submit proposals for additional professional services. Each proposal submitted shall detail: (1) scope of work for the additional services, (2) period of services to be performed, and (3) method and amount of compensation. The Client shall provide written acceptance and authorization to Raftelis prior to the commencement of work on any proposed additional services. Each proposal for additional services accepted and approved by the Client shall become part of this Agreement and shall be governed by the terms and conditions contained herein. Article 5 – Place of Performance Raftelis shall be responsible for maintaining its own office facilities and will not be provided with either office facilities or support by the Client. Article 6 – Indemnification Raftelis hereby agrees to indemnify and defend the Client, its officers, d irectors, managers and employees ("Indemnified Party or Parties") and to hold the Indemnified Parties harmless against third party claims, costs and expenses, including reasonable attorney's fees, action, or demands against the Indemnified Parties and against damages for injury to or death of any person and for loss of or damage to all property caused by the negligent acts, errors or omissions of Raftelis in performing this Agreement, except to the extent the claims, demands, liabilities, cost and expenses are caused by the negligent acts, errors or omission of an Indemnified Party. Article 7 – Insurance Raftelis shall maintain the types and levels of insurance during the life of this Agreement as specified below. The Client will be named as additional insured on Raftelis’ Certificates of Insurance and Raftelis will provide the Client with these Certificates of Insurance. Commercial General Liability Insurance – $1,000,000 for each occurrence and $2,000,000 in the aggregate Comprehensive Automobile Liability Insurance – $1,000,000 combined single limit each occurrence- hired and non-owned only Workers Compensation Insurance – Statutory limits Professional Liability Insurance – $5,000,000 occurrence and $5,000,000 in the aggregate 66 Page 3 of 15 Excess or Umbrella Liability – $5,000,000 occurrence and $5,000,000 in the aggregate Article 8 – Confidential Information Raftelis acknowledges and agrees that in the course of the performance of the services pursuant to this Agreement, Raftelis may be given access to, or come into possession of, confidential information from the Client, of which information may contain privileged material or other confidential information. Raftelis acknowledges and agrees, except as required by judicial or administrative order, trial, or other governmental proceeding, that it will not use, duplicate, or divulge to others any such information marked as "confidential" disclosed to Raftelis by the Client ("Confidential Information") without first obtaining written permission from the Client. All tangible embodiments of such information shall be delivered to the Client or the destination of such information by Raftelis requested by the Client. The Client acknowledges Raftelis has the right to maintain its own set of work papers which may contain Confidential Information. Article 9 – Independent Contractor Status It is understood and agreed that Raftelis will provide the services under this Agreement on a professional basis as an independent contractor and that during the performance of the services under this Agreement, Raftelis’ employees will not be considered employees of the Client within the meaning or the applications of any federal, state, or local laws or regulations including, but not limited to, laws or regulations covering unemployment insurance, old age benefits, worker’s compensation, industrial accident, labor, or taxes of any kind. Raftelis’ employees shall not be entitled to benefits that may be afforded from time to time to Client employees, including without limitation, vacation, holidays, sick leave, worker’s compensation, and unemployment insurance. Further, the Client shall not be responsible for withholding or paying any taxes or social security on behalf of Raftelis’ employees. Raftelis shall be fully responsible for any such withholding or paying of taxes or social security. Article 10 – Reliance on Data In performance of the services, it is understood that the Client and/or others may supply Raftelis with certain information and/or data, and that Raftelis will rely on such information. It is agreed that the accuracy of such information is not within Raftelis' control and Raftelis shall not be liable for its accuracy, nor for its verification, except to the extent that such verification is expressly a part of Raftelis' Scope of services. Article 11 – Standard of Performance Raftelis will perform the services under this Agreement in accordance with the standard of professionals in its industry prevailing at the time and place the services are performed. Raftelis' opinions, est imates, projections, and forecasts of current and future costs, revenues, other levels of any sort, and events and estimates of cost-justified system development fees shall be made on the basis of available information and Raftelis’ expertise and qualifications as a professional. Raftelis will perform the Scope of services in 67 Page 4 of 15 conformance with the professional standards in its field of expertise prevailing at the time and place the Scope of services are performed. Raftelis does not warrant or guarantee that its opinions, estimates, projections or forecasts of current and future levels and events will not vary from the Clients' estimates or forecasts or from actual outcomes. Raftelis identifies costs, allocates costs to customer classes and provides rate models. It does not establish rates, which is the legislative responsibility of the Client. Article 12 – No Consequential Damages To the fullest extent permitted by law, neither party shall be liable to the other for any special, indirect, consequential, punitive or exemplary damages resulting from the performance or non- performance of this Agreement notwithstanding the fault, tort (including negligence), strict liability or other basis of legal liability of the party so released or whose liability is so limited and shall extend to the officers, directors, employees, licensors, agents, subcontractors, vendors and related entities of such party Article 13 – Termination of Work This Agreement may be terminated as follows: 1. By Client. (a) for its convenience on 30 days’ notice to Raftelis, or (b) for cause, if Raftelis materially breaches this Agreement through no fault of Client and Raftelis neither cures such material breach nor makes reasonable progress toward cure within 15 days after Client has given written notice of the alleged breach to Raftelis. 2. By Raftelis. (a) for cause, if Client materially breaches this Agreement through no fault of Raftelis and Client neither cures such material breach nor makes reasonable progress toward cure within 15 days after Raftelis has given written notice of the alleged breach to Client, or (b) upon five days’ notice if Work under this Agreement has been suspended by either Client or Raftelis in the aggregate for more than 30 days. 3. Payment upon Termination. In the event of termination, Raftelis shall be compensated for all work properly performed prior to the effective date of termination. 68 Page 5 of 15 Article 14 – Notices All notices required or permitted under this Agreement shall be in writing and shall be deemed deliverable when delivered in person or deposited in the United States mail, postage prepaid, addressed as follows: If for the Client: If for Raftelis: Name Raftelis Financial Consultants, Inc. 383 North Carona Suite 244 Denver, CO 80218 Title Address Article 15 – Ownership of Work Product All documents, data, compilations reports and studies prepared by Raftelis in performing the Scope of services shall be the property of the Client; provided that any use other than as contemplated in this Agreement or any alteration or modification of the Work Product shall be at the sole risk of Client, and Client shall indemnify, defend and hold Raftelis harmless from any claim, demand, liability, cost or expenses incurred by Raftelis from such use or modification. Nothing contained herein shall be deemed an assignment, transfer, or divestiture its use by Raftelis of any of its trade secrets, know- how or intellectual property. Article 16 – Compliance with Applicable Laws Raftelis is an equal opportunity employer and complies with all federal, state, and local fair employment practices laws. Raftelis strictly prohibits and does not tolerate discrimination against employees, applicants, or any other covered persons because of race, color, religion, national origin or ancestry, gender identity, sexual orientation, marital status, sex, pregnancy, age, disability, past, current, or prospective service in the uniformed services, or any other characteristic protected under applicable federal, state, or local law. All Raftelis employees, other workers, and representatives are prohibited from engaging in unlawful discrimination. This policy applies to all terms and conditions of employment, including, but not limited to, hiring, training, promotion, corrective action, compensation, benefits, and termination of emplo yment. Any act of discrimination committed by Raftelis in the course of its performance under this Agreement, or failure to comply with these statutory obligations when applicable, shall be grounds for termination of this Agreement. 69 Page 6 of 15 Article 17 – General Provisions A. Entire Agreement: This Agreement represents the entire and sole agreement between the Parties with respect to the subject matter hereof. B. Waiver: The failure of either Party to require performance by the other of any provision hereof shall in no way affect the right to require performance at any time thereafter, nor shall the waiver of a breach of any provision hereof be taken to be a waiver of any succeeding breach of such provision or as a waiver of the provision itself. All remedies afforded in this Agreement shall be taken and construed as cumulative; that is, in addition to every other remedy available at law or in equity. C. Relationship: Nothing herein contained shall be construed to imply a joint venture, partnership, or principal-agent relationship between Raftelis and the Client; and neither Party shall have the right, power, or authority to obligate or bind the other in any manner whatsoever, except as otherwise agreed to in writing. D. Assignment and Delegation: Neither Party shall assign this Agreement or any rights, duties, or obligations hereunder without the express written consent of the other. Subject to the foregoing, this Agreement shall inure to the benefit of and be binding upon the successors, legal representatives, and assignees of the Parties hereto. E. Severability: If any provision of this Agreement is declared invalid or unenforceable, such provision shall be deemed modified to the extent necessary to render it valid and enforceable. In any event, the unenforceability or invalidity of any provision shall not affect any other provision of this Agreement, and this Agreement shall continue in force and effect, and be construed and enforced, as if such provision had not been included, or had been modified as above provided, as the case may be. F. Governing Law: This Agreement shall be governed by, and construed in accordance with, the laws of the State of North Carolina. G. Paragraph Headings: The paragraph headings set forth in this Agreement are for the convenience of the Parties, and in no way define, limit, or describe the scope or intent of this Agreement and are to be given no legal effect. H. Third Party Rights: Nothing in this Agreement shall be construed to create or confer any rights or interest to any third party or third-party beneficiary. It is the intent of the parties that no other outside, non-party claimant shall have any legal right to enforce the terms of this Agreement. 70 Page 7 of 15 IN WITNESS WHEREOF, the Parties have executed this Agreement by their duly authorized representatives. By: Signature Title Date Raftelis Financial Consultants, Inc. By: Signature Vice President Date This is to certify that an appropriation in the amount of this contract is available therefore and that _________________________ has been authorized to execute the contract and approve all requisitions and change orders. By: Signature Title 71 ATTACHMENT A STATEMENT OF WORK/ENGAGEMENT LETTER Water Rate Study Scope of Work Task 1.0 – Project Management and Project Initiation We will facilitate an on-site kick-off meeting, potentially over the course of one and one-half days, with staff to review and validate data, and gather any outstanding items or questions. We will also use this meeting to discuss study objectives and other project management items. We anticipate covering the following:  Data Request: Prior to the meeting we will submit a data request list for the information needed for this study. Gathering this information prior to the kick-off meeting will allow us to review and aggregate our list of questions and clarifications. We will also be able to show how this data will be used in the models.  Project Management: Finalize scope, milestones, and deliverables, set up regular project conference calls, and determine primary points of contact. Finalize project goals and objectives to establish guiding principles for the study against which we will measure results.  Rate Structure Pricing Objectives: Review pricing objectives identified in the RFP and rank them in order of importance. Determine how well the existing rate structure meets those objectives and identify potential rate structure changes that align with those objectives. Typical pricing objectives are listed to the right. Many of these are ‘standard’ or ‘must haves’ such as defensibility and revenue sufficiency however others can be ranked in order of importance. We will also develop measurable criteria to benchmark the objectives against the alternatives Task 0 Deliverables:  On-site Project Kickoff meeting  Revised data request list (if needed)  Memo summarizing project management items  Listing of ranked pricing objectives by staff Task 2.0 – Financial Plan Task 2.1 – Customer Demand and Revenue Projections Raftelis will develop customer characteristic profiles for the customer classes. The analysis will include: 72  Analysis of annual and monthly billed water consumption of each customer class for the past three fiscal years  Development of bill frequencies for each class. For the classes with tiered structures, we will calculate the amount of volume billed in each tier and use that as the basis for demand projections. Volumes by tier will be adjusted if it is anticipated that demand will continue to decrease.  Development of a use per account based on historical data and a projected use per account based on planning data from the City. Task 2.2 – Financial Planning Projections The financial planning task will include the development of forecasted revenues, O&M, debt service, and capital expenditures along with project bond or loan issues with any rate increases required to meet these requirements and financial metrics. A primary consideration in developing an ‘optimal’ financial plan is minimizing annual revenue increases through balancing the use of reserves, existing rate revenue, revenue bonds, grants, etc. This balance is subject to the constraints of meeting the City’s target reserve policies, debt service coverage, and other financial policies requirements on any proposed debt. This approach is an iterative process. For example, issuing debt to fund a capital project may keep revenue increases low however, new debt payments may decrease the coverage below the target level. As a result, a revenue increase may be needed to meet to maintain compliance with the target. The revenue generated from the increase now may meet debt service coverage and produce an ending balance more than the target reserve. This excess can be used to partially fund the capital project which, in turn, could reduce the proposed loan amount. through the study period. The graphic below illustrates the requirements needed to build a sound financial plan. 73 The financial plan activities will include:  A forecast revenue under existing rates using the demands projections in Task 2.1, and other operating and non-rate revenues for each utility.  Review existing financial plans, budgets, actuals data, and capital improvement plan programs  Review and discuss with City staff growth assumptions and type of growth anticipated  Develop historical billing analysis to validate water revenue projections  Forecast operations and maintenance (O&M), repair and replacement (R&R) capital, expansion capital (based on master plan results or other engineering reports), and existing and proposed debt service  Incorporate new positions, changes in operating efficiencies, inflation, etc.  Identify the projects eligible for bond or state loans based on timing, duration, and the amount of the project. Raftelis can present financial plan alternatives considering specific projects financed through revenue bonds, state loans, etc. Task 2 Deliverables:  Two (2) virtual meetings to present draft and draft-final results to all internal stakeholders and develop various scenarios to meet revenue requirements  Technical memorandum summarizing the results of the water financial planning analysis Task 3.0 – Cost of Service Analysis Raftelis will start with industry-accepted cost-of-service principles and customize our analysis to account for the specific requirements of this study. The cost-of-service analysis will provide the City with a defensible justification explaining the reason why the costs are assigned in the manner they are. Raftelis will need this information to evaluate the level of the current and proposed rates. The cost-of-service analysis is a multi-step process. It includes determining the revenue requirement, assigning the revenue requirement to various facilities (functional areas), and further allocating those costs based on their design criteria or function in the system. Those costs are then distributed to customer classes based on their water demands as well as accounts or equivalent meters. Raftelis will use the cost allocation process based on the industry standard methodologies published in the AWWA’s Manual M1, Principles of Water Rates, Fees. The figure below illustrates the four primary steps we will use to complete the cost- of-service analysis for each utility. Task 3.1 – Test Year Revenue Requirement Raftelis will develop a separate test-year revenue requirement as the basis for our cost of service analysis. The test year revenue requirement will be based on the City’s forecasted financial plans. The revenue requirement is the amount of revenue required from rates to meet annual expenditures such as operating, capital, debt service, and changes in reserves, and is net of other operating and non -operating revenue. Raftelis will develop a revenue requirement and a cost of service analysis for each utility. 74 Task 3.2 – Functionalize Revenue Requirements As a first step in the water cost of service process, Raftelis will allocate the test -year revenue requirement to the appropriate functional cost categories. O&M expenses are often listed functionally in the budget and capital expenditures are typically organized based on the type of facility. Debt service can be functionalized based on the project the proceeds are intended to fund. During the initial phases of the study, Raftelis will work with City staff to determine the appropriate functional categories and factors to use in the analysis. Task 3.3 – Allocate Functionalized Costs to Cost Components After assigning the water utility revenue requirement to functional categories, Raftelis will allocate the costs according to the type of service they are incurred to provide. Cost allocation involves assigning the functionalized costs from Task 3.2 to the design parameter used to size and construct that facility. For example, distribution mains are typically designed to meet maxim um hour demands. Under the base extra-capacity methodology, those costs would be allocated to the base, maximum day, and maximum hour. This allocation is based on water production ratios of maximum day and hour demands to average day demands. Conversely, source of supply costs are associated with annual water supply requirements. Those costs would be allocated to the base or average day component. Some costs can be directly assigned such as billing or meter costs. Task 3.4 – Customer Class Water Demand Factors, System Demand Factors Raftelis will develop customer characteristic profiles for the customer classes within each utility. Building on the analysis in Task 2.1, this analysis will include:  Development of peaking factors for each customer class. To the extent that the City had AMI meters, we can use a statistical sample to estimate peaking factors. We will examine multiple years to ensure the values used are representative of a typical year.  We will use the data from Task 4.1 to project the number of accounts, equivalent meters, and bills. 75 We will also evaluate system historical water production which is used to allocate the functionalized costs in Task 3.3. We will develop a test-year value for peak day demand and peak hour ratios. Raftelis will use the base-extra capacity method with non- coincidental class peaking factors for cost allocation. This is the preferred method used in industry. This ensures that all classes are paying their proportionate share of peaking costs regardless of when peaking occurs. Changes in class peaking factors can have a profound effect on the distribution of costs to customer classes. Task 3.5 – Distribute Costs to Customer Classes The distribution of allocated costs to customer classes is the final step in determining class cost of service. This essentially distributes the costs associated with average day, peak day and customer costs based on each classes proportionate contribution based on their specific demands. Raftelis will allocate costs from Tasks 3.3 and 3.4 to each customer class based on their proportionate share of demand characteristics or units of service. For example, if the residential class’ maximum day demands represent 50% of the total demand, we would allocate 50% of the maximum day costs to the residential class. In a similar manner, if the commercial class represents 10% of total bill, Raftelis would allocate 10% of the billing costs to the commercial class. Task 3 Deliverables:  Three (3) virtual meetings to present draft and draft-final results to all internal stakeholders  Technical memorandum summarizing the results of the water cost of service analysis Task 4.0 – Rate Design The rate design task will identify the volume- (variable) and customer-related (fixed) costs to be recovered through rates. Water rates recover the costs to treat, store, and distribute water to customers. Customer- related costs typically include meter reading and maintenance and administrative costs. Raftelis will calculate the test-year rates under the current structure for each utility. Raftelis will also develop test-year rates for any rate structure alternatives. Rate structure alternatives will be based on the results of the pricing objectives identified in Task 1. We will complete the following tasks:  Calculate the cost of service rates under the current rate structure.  Evaluate the current rate structures’ ability to meet the pricing objectives from Task 1. This will serve as the baseline for comparing other rate structure alternatives. 76  Create alternative rate structures based on the pricing objectives identified in Task 1. This may include adjusting the tier thresholds, pricing ratios, or the addition of new tiers.  Evaluate and rank these alternatives against the rate structure objectives. Rate structure alternatives include: o Drought pricing o Seasonal rates o Changes to the existing customer class rate structures  Develop monthly bill impacts and customer bill impacts. Customer bill impacts will evaluate each customer’s 12 months of bills under existing rates and the proposed rate structure. This will show the average monthly change for customers and will provide a realistic picture of how the entire class of customers will be affected.  Develop a water utility bill comparison under the City’s existing and proposed rate alternatives compared against up to 7 peer utilities task 4 Deliverables:  Two virtual meetings to present draft and draft-final results to all internal stakeholders.  On-site meeting to review cost of service results  Technical memorandum summarizing the results of the rate design alternatives Task 5.0 – City Council Meetings and Reports Task 5.1 – Draft and Final Reports Raftelis will prepare a report documenting the Rate Study to serve as a part of the City’s administrative record. The purpose of this report is to document the methodology used to calculate the City’s water and wastewater rates. The report will include an executive summary highlighting decisions reached during the development of rates. The main body of the report will summarize the underlying model assumptions, the long-term financial plans, the cost of service analyses, proposed revisions to rate structures, proposed rate derivation, and customer impacts. Raftelis will provide a draft report to City staff and the City’s attorney for review and comment. We will then incorporate any revisions into the final report. Task 4.2 – Council Presentations Raftelis will attend up to two City Council meetings to present initial and final results of the study. Task 4 Deliverables:  Two virtual meetings to review comments and edits to the draft reports.  Draft and final reports  Attendance at up to two (2) City Council meetings 77 Proposed Fee The table below lists the tasks and hours by Raftelis consultant to complete the efforts in this scope of work. This fee assumes this study will proceed concurrently with the wastewater rate study to save on meeting costs and other overlapping, similar tasks. The fee will require adjustment should the studies be completed at separate times. TC AR NB Total Labor Total Expenses 1. Project Management and Project Initiation 1 12 12 24 $1,130 $7,730 2. Financial Plan 2 5 2 28 35 $0 $8,680 3. Cost of Service 2 5 2 28 35 $0 $8,680 4. Rate Design 2 5 2 26 33 $0 $8,220 5. Council Meetings and Reports 2 2 8 12 20 $930 $6,250 8 3 35 6 106 147 $320 $320 $230 $11,200 $1,920 $24,380 $37,500 $37,500 $2,060 $39,560 Hourly Billing Rate Total Professional Fees TC - Todd Cristiano AR - Andrew Rheem NB - Nicki Bartak - - - - Total Fees Total Expenses Total Fees & Expenses Tasks Web Meetings In-person Project Meetings Hours Total Fees & Expenses Total Meetings / Hours 78 Raftelis’ 2024 Standard Hourly Billing Rates Position Hourly Billing Rate* Chair/Chair Emeritus $500 Chief Executive Officer/President $450 Executive Vice President $400 Vice President $360 Senior Manager $320 Recruiter $295 Principal/Senior Advisor $295 Manager $285 Senior Consultant $250 Executive Coach $250 Consultant $220 Creative Director $220 Associate Consultant $185 Graphic Designer $160 Analyst $135 Administration $100 Technology/Communications Charge** $10 PRMG – Executive Vice President $375 PRMG – Vice President $340 PRMG – Senior Manager $305 PRMG – Manager $270 PRMG – Senior Consultant $240 PRMG – Consultant $210 PRMG – Associate $175 PRMG – Administration $100 Technology/Communication Charge** $10 * These rates will be in effect for calendar year 2024 and will then increase annually by 3% unless specified otherwise by contract. ** Technology/Communications Charge – this is an hourly fee charged monthly for each hour worked on the project to recover telephone, facsi mile, computer, postage/overnight delivery, conference calls, electronic/computer webinars, photocopies, etc. *** For services related to the preparation for and participation in deposition and trial/hearing, the standard billing rates listed above will be increased by an amount up to 50%. 79 File Attachments for Item: 11. Resolution R24-17: A Resolution Of The City Council Approving A Professional Services Agreement Between The City Of Laurel And Raftelis Financial Consultants, Inc. For A Wastewater Rate Study. 80 R24-17 Approve Professional Services Agreement for Wastewater Rate Study RESOLUTION NO. R24-17 A RESOLUTION OF THE CITY COUNCIL APPROVING A PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF LAUREL AND RAFTELIS FINANCIAL CONSULTANTS, INC. FOR A WASTEWATER RATE STUDY. BE IT RESOLVED by the City Council of the City of Laurel, Montana, Section 1: Approval. The Professional Services Agreement with Raftelis Financial Consultants, Inc. (hereinafter “the Professional Services Agreement) for a Wastewater Rate Study (hereinafter “Wastewater Rate Study”), a copy attached hereto and incorporated herein, is hereby approved. Section 2: Execution. The Mayor is hereby given authority to execute the Professional Services Agreement on behalf of the City. Introduced at a regular meeting of the City Council on the 26th day of March, 2024, by Council Member ________________. PASSED and APPROVED by the City Council of the City of Laurel the 26th day of March, 2024. APPROVED by the Mayor the 26th day of March, 2024. CITY OF LAUREL ___________________________ Dave Waggoner, Mayor ATTEST: _______________________________ Kelly Strecker, Clerk-Treasurer APPROVED AS TO FORM: ______________________________ Michele L. Braukmann, Civil City Attorney 81 Page 1 of 15 PROFESSIONAL SERVICES AGREEMENT BETWEEN CITY OF LAUREL, MT AND RAFTELIS FINANCIAL CONSULTANTS, INC. This Consulting Agreement (“Agreement”) is entered into this day of , 2024 (hereinafter referred to as the effective date of the agreement) by and between, City of Laurel, MT (the “Client”) and Raftelis Financial Consultants, Inc., 383 North Carona, Suite 244, Denver, CO 80218 (“Raftelis”). Witnesseth WHEREAS, Raftelis is engaged and experienced in public finance, management, and pricing, and service delivery, and WHEREAS, The Client desires to hire Raftelis and Raftelis agrees to provide services to the Client, NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree to the terms and conditions set forth herein. Article 1 – Statement of Work Raftelis shall provide professional consulting services to prepare Water Rate Study for Client. Raftelis will perform the services as set forth in its proposal sent to Client dated March 7, 2024 and included herein as Attachment A, the “Scope.” Article 2 – Time for Completion This Agreement will commence upon approval by the Client and remain in effect for a period of one year. Further renewals of this Agreement are at the option of and shall be mutually agreed to by the Parties. Article 3 – Compensation Client shall pay to Raftelis the sum not to exceed $39,795, which includes professional fees and direct expenses incurred in performing the scope of services, as well as an hourly technology expense reimbursement, outlined in Attachment B. The parties understand that this sum is based upon the scope of work contained herein at Raftelis’ current standard hourly rate schedule included in Attachment B. Any expansion of the scope of work by the Client shall involve discussion of and agreement about additional fees and time by both parties. Raftelis shall submit invoices to the Client on a monthly basis for services rendered to the date thereof. Such invoices shall be supported by appropriate documentation; at a minimum, the task performed, the individuals working on such task, the level of each such individual, and expenses incurred. Each invoice 82 Page 2 of 15 will contain all hours and expenses from Raftelis for the month. Upon receipt of monthly invoice, the Client will remit payment of same amount to Raftelis within 30 days. Article 4 – Additional Services At the Client’s request, Raftelis may submit proposals for additional professional services. Each proposal submitted shall detail: (1) scope of work for the additional services, (2) period of services to be performed, and (3) method and amount of compensation. The Client shall provide written acceptance and authorization to Raftelis prior to the commencement of work on any proposed additional services. Each proposal for additional services accepted and approved by the Client shall become part of this Agreement and shall be governed by the terms and conditions contained herein. Article 5 – Place of Performance Raftelis shall be responsible for maintaining its own office facilities and will not be provided with either office facilities or support by the Client. Article 6 – Indemnification Raftelis hereby agrees to indemnify and defend the Client, its officers, d irectors, managers and employees ("Indemnified Party or Parties") and to hold the Indemnified Parties harmless against third party claims, costs and expenses, including reasonable attorney's fees, action, or demands against the Indemnified Parties and against damages for injury to or death of any person and for loss of or damage to all property caused by the negligent acts, errors or omissions of Raftelis in performing this Agreement, except to the extent the claims, demands, liabilities, cost and expenses are caused by the negligent acts, errors or omission of an Indemnified Party. Article 7 – Insurance Raftelis shall maintain the types and levels of insurance during the life of this Agreement as specified below. The Client will be named as additional insured on Raftelis’ Certificates of Insurance and Raftelis will provide the Client with these Certificates of Insurance. Commercial General Liability Insurance – $1,000,000 for each occurrence and $2,000,000 in the aggregate Comprehensive Automobile Liability Insurance – $1,000,000 combined single limit each occurrence- hired and non-owned only Workers Compensation Insurance – Statutory limits Professional Liability Insurance – $5,000,000 occurrence and $5,000,000 in the aggregate 83 Page 3 of 15 Excess or Umbrella Liability – $5,000,000 occurrence and $5,000,000 in the aggregate Article 8 – Confidential Information Raftelis acknowledges and agrees that in the course of the performance of the services pursuant to this Agreement, Raftelis may be given access to, or come into possession of, confidential information from the Client, of which information may contain privileged material or other confidential information. Raftelis acknowledges and agrees, except as required by judicial or administrative order, trial, or other governmental proceeding, that it will not use, duplicate, or divulge to others any such information marked as "confidential" disclosed to Raftelis by the Client ("Confidential Information") without first obtaining written permission from the Client. All tangible embodiments of such information shall be delivered to the Client or the destination of such information by Raftelis requested by the Client. The Client acknowledges Raftelis has the right to maintain its own set of work papers which may contain Confidential Information. Article 9 – Independent Contractor Status It is understood and agreed that Raftelis will provide the services under this Agreement on a professional basis as an independent contractor and that during the performance of the services under this Agreement, Raftelis’ employees will not be considered employees of the Client within the meaning or the applications of any federal, state, or local laws or regulations including, but not limited to, laws or regulations covering unemployment insurance, old age benefits, worker’s compensation, industrial accident, labor, or taxes of any kind. Raftelis’ employees shall not be entitled to benefits that may be afforded from time to time to Client employees, including without limitation, vacation, holidays, sick leave, worker’s compensation, and unemployment insurance. Further, the Client shall not be responsible for withholding or paying any taxes or social security on behalf of Raftelis’ employees. Raftelis shall be fully responsible for any such withholding or paying of taxes or social security. Article 10 – Reliance on Data In performance of the services, it is understood that the Client and/or others may supply Raftelis with certain information and/or data, and that Raftelis will rely on such information. It is agreed that the accuracy of such information is not within Raftelis' control and Raftelis shall not be liable for its accuracy, nor for its verification, except to the extent that such verification is expressly a part of Raftelis' Scope of services. Article 11 – Standard of Performance Raftelis will perform the services under this Agreement in accordance with the standard of professionals in its industry prevailing at the time and place the services are performed. Raftelis' opinions, estimates, projections, and forecasts of current and future costs, revenues, other levels of any sort, and events and estimates of cost-justified system development fees shall be made on the basis of available information and Raftelis’ expertise and qualifications as a professional. Raftelis will perform the Scope of services in 84 Page 4 of 15 conformance with the professional standards in its field of expertise prevailing at the time and place the Scope of services are performed. Raftelis does not warrant or guarantee that its opinions, estimates, projections or forecasts of current and future levels and events will not vary from the Clients' estimates or forecasts or from actual outcomes. Raftelis identifies costs, allocates costs to customer classes and provides rate models. It does not establish rates, which is the legislative responsibility of the Client. Article 12 – No Consequential Damages To the fullest extent permitted by law, neither party shall be liable to the other for any special, indirect, consequential, punitive or exemplary damages resulting from the performance or non- performance of this Agreement notwithstanding the fault, tort (including negligence), strict liability or other basis of legal liability of the party so released or whose liability is so limited and shall extend to the officers, directo rs, employees, licensors, agents, subcontractors, vendors and related entities of such party Article 13 – Termination of Work This Agreement may be terminated as follows: 1. By Client. (a) for its convenience on 30 days’ notice to Raftelis, or (b) for cause, if Raftelis materially breaches this Agreement through no fault of Client and Raftelis neither cures such material breach nor makes reasonable progress toward cure within 15 days after Client has given written notice of the alleged breach to Raftelis. 2. By Raftelis. (a) for cause, if Client materially breaches this Agreement through no fault of Raftelis and Client neither cures such material breach nor makes reasonable progress toward cure within 15 days after Raftelis has given written notice of the alleged breach to Client, or (b) upon five days’ notice if Work under this Agreement has been suspended by either Client or Raftelis in the aggregate for more than 30 days. 3. Payment upon Termination. In the event of termination, Raftelis shall be compensated for all work properly performed prior to the effective date of termination. 85 Page 5 of 15 Article 14 – Notices All notices required or permitted under this Agreement shall be in writing and shall be deemed deliverable when delivered in person or deposited in the United States mail, postage prepaid, addressed as follows: If for the Client: If for Raftelis: Name Raftelis Financial Consultants, Inc. 383 North Carona Suite 244 Denver, CO 80218 Title Address Article 15 – Ownership of Work Product All documents, data, compilations reports and studies prepared by Raftelis in performing the Scope of services shall be the property of the Client; provided that any use other than as contemplated in this Agreement or any alteration or modification of the Work Product shall be at the sole risk of Client, and Client shall indemnify, defend and hold Raftelis harmless from any claim, demand, liability, cost or expenses incurred by Raftelis from such use or modification. Nothing contained herein shall be deemed an assignment, transfer, or divestiture its use by Raftelis of any of its trade secrets, know- how or intellectual property. Article 16 – Compliance with Applicable Laws Raftelis is an equal opportunity employer and complies with all federal, state, and local fair employment practices laws. Raftelis strictly prohibits and does not tolerate discrimination against employees, applicants, or any other covered persons because of race, color, religion, national origin or ancestry, gender identity, sexual orientation, marital status, sex, pregnancy, age, disability, past, current, or prospective service in the uniformed services, or any other characteristic protected under applicable federal, state, or local law. All Raftelis employees, other workers, and representatives are prohibited from engaging in unlawful discrimination. This policy applies to all terms and conditions of employment, including, but not limited to, hiring, training, promotion, corrective action, compensation, benefits, and termination of emplo yment. Any act of discrimination committed by Raftelis in the course of its performance under this Agreement, or failure to comply with these statutory obligations when applicable, shall be grounds for termination of this Agreement. 86 Page 6 of 15 Article 17 – General Provisions A. Entire Agreement: This Agreement represents the entire and sole agreement between the Parties with respect to the subject matter hereof. B. Waiver: The failure of either Party to require performance by the other of any provision hereof shall in no way affect the right to require performance at any time thereafter, nor shall the waiver of a breach of any provision hereof be taken to be a waiver of any succeeding breach of such provision or as a waiver of the provision itself. All remedies afforded in this Agreement shall be taken and construed as cumulative; that is, in addition to every other remedy available at law or in equity. C. Relationship: Nothing herein contained shall be construed to imply a joint venture, partnership, or principal-agent relationship between Raftelis and the Client; and neither Party shall have the right, power, or authority to obligate or bind the other in any manner whatsoever, except as otherwise agreed to in writing. D. Assignment and Delegation: Neither Party shall assign this Agreement or any rights, duties, or obligations hereunder without the express written consent of the other. Subject to the foregoing, this Agreement shall inure to the benefit of and be binding upon the successors, legal representatives, and assignees of the Parties hereto. E. Severability: If any provision of this Agreement is declared invalid or unenforceable, such provision shall be deemed modified to the extent necessary to render it valid and enforceable. In any event, the unenforceability or invalidity of any provision shall not affect any other provision of this Agreement, and this Agreement shall continue in force and effect, and be construed and enforced, as if such provision had not been included, or had been modified as above provided, as the case may be. F. Governing Law: This Agreement shall be governed by, and construed in accordance with, the laws of the State of North Carolina. G. Paragraph Headings: The paragraph headings set forth in this Agreement are for the convenience of the Parties, and in no way define, limit, or describe the scope or intent of this Agreement and are to be given no legal effect. H. Third Party Rights: Nothing in this Agreement shall be construed to create or confer any rights or interest to any third party or third-party beneficiary. It is the intent of the parties that no other outside, non-party claimant shall have any legal right to enforce the terms of this Agreement. 87 Page 7 of 15 IN WITNESS WHEREOF, the Parties have executed this Agreement by their duly authorized representatives. By: Signature Title Date Raftelis Financial Consultants, Inc. By: Signature Vice President Date This is to certify that an appropriation in the amount of this contract is available therefore and that _________________________ has been authorized to execute the contract and approve all requisitions and change orders. By: Signature Title 88 ATTACHMENT A STATEMENT OF WORK/ENGAGEMENT LETTER Wastewater Rate Study Scope of Work Task 1.0 – Project Management and Project Initiation1 We will facilitate an on-site kick-off meeting, potentially over the course of one and one-half days, with staff to review and validate data, and gather any outstanding items or questions. We will also use this meeting to discuss study objectives and other project management items. We anticipate covering the following:  Data Request: Prior to the meeting we will submit a data request list for the information needed for this study. Gathering this information prior to the kick-off meeting will allow us to review and aggregate our list of questions and clarifications. We will also be able to show how this data will be used in the models.  Project Management: Finalize scope, milestones, and deliverables, set up regular project conference calls, and determine primary points of contact. Finalize project goals and objectives to establish guiding principles for the study against which we will measure results.  Rate Structure Pricing Objectives: Review pricing objectives identified in the RFP and rank them in order of importance. Determine how well the existing rate structure meets those objectives and identify potential rate structure changes that align with those objectives. Typical pricing objectives are listed to the right. Many of these are ‘standard’ or ‘must haves’ such as defensibility and revenue sufficiency however others can be ranked in order of importance. We will also develop measurable criteria to benchmark the objectives against the alternatives Task 0 Deliverables:  On-site Project Kickoff meeting  Revised data request list (if needed)  Memo summarizing project management items  Listing of ranked pricing objectives by staff Task 2.0 – Financial Plan Task 2.1 – Customer Demand and Revenue Projections 1 Hours and expenses for this task split equally between water and wastewater project fee. 89 Raftelis will develop customer characteristic profiles for the customer classes. The analysis will include:  Analysis of annual and monthly billed water consumption of each customer class for the past three fiscal years  Development billed volume per account based on historical data and a projected use per account based on planning data from the City. Task 2.2 – Financial Planning Projections The financial planning task will include the development of forecasted revenues, O&M, debt service, and capital expenditures along with project bond or loan issues with any rate increases required to meet these requirements and financial metrics. A primary consideration in developing an ‘optimal’ financial plan is minimizing annual revenue increases through balancing the use of reserves, existing rate revenue, revenue bonds, grants, etc. This balance is subject to the constraints of meeting the City’s target reserve policies, debt service coverage, and other financial policies requirements on any proposed debt. This approach is an iterative process. For example, issuing debt to fund a capital project may keep revenue increases low however, new debt payments may decrease the coverage below the target level. As a result, a revenue increase may be needed to meet to maintain compliance with the target. The revenue generated from the increase now may meet debt service coverage and produce an ending balance more than the target reserve. This excess can be used to partially fund the capital project which, in turn, could reduce the proposed loan amount. The graphic below illustrates the requirements needed to build a sound financial plan. The financial plan activities will include:  A forecast revenue under existing rates using the demands projections in Task 2.1, and other operating and non-rate revenues for each utility. Financial Planning Process 90  Review existing financial plans, budgets, actuals data, and capital improvement plan programs  Review and discuss with City staff growth assumptions and type of growth anticipated  Develop historical billing analysis to validate wastewater revenue projections  Forecast operations and maintenance (O&M), repair and replacement (R&R) capital, expansion capital (based on master plan results or other engineering reports), and existing and proposed debt service  Incorporate new positions, changes in operating efficiencies, inflation, etc.  Identify the projects eligible for bond or state loans based on timing, duration, and the amount of the project. Raftelis can present financial plan alternatives considering specific projects financed through revenue bonds, state loans, etc. Task 2 Deliverables:  Two (2) virtual meetings to present draft and draft-final results to all internal stakeholders and develop various scenarios to meet revenue requirements  Technical memorandum summarizing the results of the wastewater financial planning analysis Task 3.0 – Cost of Service Analysis Raftelis will start with industry-accepted cost-of-service principles and customize our analysis to account for the specific requirements of this study. The cost-of-service analysis will provide the City with a defensible justification explaining the reason why the costs are assigned in the manner they are. Raftelis will need this information to evaluate the level of the current and proposed rates. The cost-of-service analysis is a multi-step process. It includes determining the revenue requirement, assigning the revenue requirement to various facilities (functional areas), and further allocating those costs based on their design criteria or function in the system. Those costs are then distributed to customer classes based on their wastewater flow and strength characteristics as well as accounts or equivalent meters. Raftelis will use the cost allocation process based on the industry standard methodologies published in the Water Environment Federation (WEF) Manual of Practice No. 27, Financing and Charges for Wastewater Systems. Task 3.1 – Test Year Revenue Requirement Raftelis will develop a separate test-year revenue requirement as the basis for our cost of service analysis. The test year revenue requirement will be based on the City’s forecasted financial plans. The revenue requirement is the amount of revenue required from rates to meet annual expenditures such as operating, capital, debt service, and changes in reserves, and is net of other operating and non -operating revenue. Raftelis will develop a revenue requirement and a cost of service analysis for each utility. Task 3.2 – Functionalize Revenue Requirements As a first step in the wastewater cost of service process, Raftelis will allocate the test-year revenue requirement to the appropriate functional cost categories. O&M expenses are often listed functionally in 91 the budget and capital expenditures are typically organized based on the type of facility. Debt service can be functionalized based on the project the proceeds are intended to fund. During the initial phases of the study, Raftelis will work with City staff to determine the appropriate functional categories and factors to use in the analysis. Task 3.3 – Allocate Functionalized Costs to Cost Components After assigning the wastewater utility revenue requirement to functional categories, Raftelis will allocate the costs according to the type of service they are incurred to provide. Cost allocation involves assigning the functionalized costs from Task 3.2 to the design parameter used to size and construct that facility. Raftelis will allocate the functionalized costs based on the type of service they provide. Some costs the utility incurs are a function of the water quantity discharged by a customer, while other costs are associated with addressing wastewater strengths. Customer service, billing, and metering costs are generally a function of the number of customers served and the size and type of meter or service. As with the functionalization process, Raftelis will work with City staff to determine the specific allocation factors that best represent wastewater utility system cost drivers. Task 3.4 – Customer Class Wastewater Flow and Loading Characteristics and System Flow Characteristics Raftelis will develop customer characteristic profiles for the customer classes. Building on the analysis in Task 2.1, this analysis will include:  Raftelis will determine billable flow volume, BOD, TSS, equivalent meter, and bills by customer class  We will use the data from Task 2.1 to project the number of accounts, equivalent meters, and bills. We will analyze treated influent data for the last three years to estimate projected flows and strength discharged to the treatment plant. These units serve as the denominator in developing the unit costs of service for each cost component (Flow, BOD, and TSS) Task 3.5 – Distribute Costs to Customer Classes The distribution of allocated costs to customer classes is the final step in determining class cost of service. This essentially distributes the costs associated with flow, BOD, TSS, and customer costs based on each classes proportionate contribution based on their flow and strength requirements. Raftelis will allocate costs in Task 3.3 and 3.4 to each customer class based on their proportionate share of service characteristics or units of service calculated in Task 3.3. For example, if the residential class’ billable flow represents 50% of the total contributed flow, Raftelis would allocate 50% of the flow costs to the residential class. In a similar manner, if the commercial class represents 10% of total BOD, Raftelis would allocate 10% of the BOD costs to the commercial class. Using the BOD and TSS cost allocations developed 92 in Task 3.4, Raftelis will calculate the unit cost of BOD and TSS on a dollar per pound basis for extra strength customers. Task 3 Deliverables:  Three (3) virtual meetings to present draft and draft-final results to all internal stakeholders  Technical memorandum summarizing the results of the wastewater cost of service analysis Task 4.0 – Rate Design The rate design task will identify the volume- (variable) and customer-related (fixed) costs to be recovered through rates. Wastewater-related costs recover the costs to collect, treat, and discharge wastewater. Customer-related costs typically include meter reading and maintenance and administrative costs. Raftelis will calculate the test-year rates under the current structure for each class. Raftelis will also develop test-year rates for any rate structure alternatives. Rate structure alternatives will be based on the results of the pricing objectives identified in Task 1. We will complete the following tasks:  Calculate the cost of service rates under the current rate structure.  Evaluate the current rate structures’ ability to meet the pricing objectives from Task 1. This will serve as the baseline for comparing other rate structure alternatives.  Create alternative rate structures based on the pricing objectives identified in Task 1. This may include adjusting the tier thresholds, pricing ratios, or the addition of new tiers.  Evaluate and rank these alternatives against the rate structure objectives.  Develop monthly bill impacts and customer bill impacts. Customer bill impacts will evaluate each customer’s 12 months of bills under existing rates and the proposed rate structure. This will show the average monthly change for customers and will provide a realistic picture of how the entire class of customers will be affected.  Develop a wastewater utility bill comparison under the City’s existing and proposed rate alternatives compared against up to 7 peer utilities task 4 Deliverables:  Two virtual meetings to present draft and draft-final results to all internal stakeholders.  On-site meeting to review cost of service results  Technical memorandum summarizing the results of the rate design alternatives Task 5.0 – City Council Meetings and Reports Task 5.1 – Draft and Final Reports 93 Raftelis will prepare a report documenting the Rate Study to serve as a part of the City’s administrative record. The purpose of this report is to document the methodology used to calculate the City’s wastewater rates. The report will include an executive summary highlighting decisions reached during the development of rates. The main body of the report will summarize the underlying model assumptions, the long-term financial plans, the cost of service analyses, proposed revisions to rate structures, proposed rate derivation, and customer impacts. Raftelis will provide a draft report to City staff and the City’s attorney for review and comment. We will then incorporate any revisions into the final report. Task 5.2 – Council Presentations Raftelis will attend up to two City Council meetings to present initial and final results of the study. Task 5 Deliverables:  Two virtual meetings to review comments and edits to the draft reports.  Draft and final reports  Attendance at up to two (2) City Council meetings 94 Proposed Fee The table below lists the tasks and hours by Raftelis consultant to complete the efforts in this scope of work. This fee assumes this study will proceed concurrently with the water rate study to save on meeting costs and other overlapping, similar tasks. The fee will require adjustment should the studies be completed at separate times. TC AR NB Total Labor Total Expenses 1. Project Management and Project Initiation 1 12 12 24 $865 $7,465 2. Financial Plan 2 6 2 28 36 $0 $9,000 3. Cost of Service 2 6 2 28 36 $0 $9,000 4. Rate Design 2 6 2 24 32 $0 $8,080 5. Council Meetings and Reports 2 2 8 12 20 $930 $6,250 8 3 38 6 104 148 $320 $320 $230 $12,160 $1,920 $23,920 $38,000 $38,000 $1,795 $39,795 Hourly Billing Rate Total Professional Fees TC - Todd Cristiano AR - Andrew Rheem NB - Nicki Bartak - - - - Total Fees Total Expenses Total Fees & Expenses Tasks Web Meetings In-person Project Meetings Hours Total Fees & Expenses Total Meetings / Hours 95 Raftelis’ 2024 Standard Hourly Billing Rates Position Hourly Billing Rate* Chair/Chair Emeritus $500 Chief Executive Officer/President $450 Executive Vice President $400 Vice President $360 Senior Manager $320 Recruiter $295 Principal/Senior Advisor $295 Manager $285 Senior Consultant $250 Executive Coach $250 Consultant $220 Creative Director $220 Associate Consultant $185 Graphic Designer $160 Analyst $135 Administration $100 Technology/Communications Charge** $10 PRMG – Executive Vice President $375 PRMG – Vice President $340 PRMG – Senior Manager $305 PRMG – Manager $270 PRMG – Senior Consultant $240 PRMG – Consultant $210 PRMG – Associate $175 PRMG – Administration $100 Technology/Communication Charge** $10 * These rates will be in effect for calendar year 2024 and will then increase annually by 3% unless specified otherwise by contract. ** Technology/Communications Charge – this is an hourly fee charged monthly for each hour worked on the project to recover telephone, facsi mile, computer, postage/overnight delivery, conference calls, electronic/computer webinars, photocopies, etc. *** For services related to the preparation for and participation in deposition and trial/hearing, the standard billing rates listed above will be increased by an amount up to 50%. 96 File Attachments for Item: 12. Resolution R24-18: A Resolution Of The City Council Authorizing The Additional Extension Of Approval Of Application For Special Review For J. Johnson Properties Pursuant To Resolution Nos. R22-07, R23-05, And R23-75. 97 R24-18 Authorize Extension of Special Review Approval Pursuant to Resolution Nos. R22-07 and R23-05 and R23-75 RESOLUTION NO. R24-18 A RESOLUTION OF THE CITY COUNCIL AUTHORIZING THE ADDITIONAL EXTENSION OF APPROVAL OF APPLICATION FOR SPECIAL REVIEW FOR J. JOHNSON PROPERTIES PURSUANT TO RESOLUTION NOS. R22-07, R23-05, AND R23-75. WHEREAS, the City of Laurel (hereinafter “the City”) previously approved the Application for Special Review (hereinafter “the Application”) for J. Johnson Properties (hereinafter “the Applicant”), pursuant to Resolution No. R22-07, on February 8, 2022; WHEREAS, the City thereafter approved an extension of approval of the Application, pursuant to Resolution No. R23-05, on January 24, 2023; WHEREAS, the City thereafter approved an extension of approval of the Application, pursuant to Resolution No. R23-75, on September 12, 2023; WHEREAS, the approval of the Application was subject to conditions that have not yet been completed by the Applicant; WHEREAS, the conditions included that “[c]onstruction of any improvements to the site and building must be completed within twelve (12) months of special review approval”; WHEREAS, the conditions also specified that the Applicant could request an extension, if necessary; WHEREAS, the Applicant needs additional time to complete the conditions, and the Applicant has requested an additional six (6) month extension from the City; and WHEREAS, the City is agreeable to the Applicant’s request, by way of formally extending the provisions of Resolution Nos. R22-07 and R23-05 and R23-75 for an additional six (6) months from the date of this Resolution. NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Laurel, Montana that the terms and conditions of Resolution Nos. R22-07 and R23-05 and R23-75 are hereby extended by six (6) months from the date of this Resolution to allow the Applicant time to meet the conditions for approval of the Application for Special Review. Introduced at a regular meeting of the City Council on the 26th day of March 2024 by Council Member _____________________. PASSED and APPROVED by the City Council of the City of Laurel, Montana on the 26th day of March 2024. 98 R24-18 Authorize Extension of Special Review Approval Pursuant to Resolution Nos. R22-07 and R23-05 and R23-75 APPROVED by the Mayor on the 26th day of March 2024. CITY OF LAUREL ___________________________ Dave Waggoner, Mayor ATTEST: _______________________________ Kelly Strecker, Clerk-Treasurer APPROVED AS TO FORM: ______________________________ Michele L. Braukmann, Civil City Attorney 99 100 101 102 103 104 105 106 107 File Attachments for Item: 13. Resolution R24-19: A Resolution Of The City Council Approving A Memorandum Of Understanding By And Between The City Of Laurel And Yellowstone County For The Golf Course Road Paving Project. 108 R24-19 Approve MOU for Golf Course Road Paving Project RESOLUTION NO. R24-19 A RESOLUTION OF THE CITY COUNCIL APPROVING A MEMORANDUM OF UNDERSTANDING BY AND BETWEEN THE CITY OF LAUREL AND YELLOWSTONE COUNTY FOR THE GOLF COURSE ROAD PAVING PROJECT. BE IT RESOLVED by the City Council of the City of Laurel, Montana, Section 1: Approval. The Memorandum of Understanding by and between the City of Laurel and Yellowstone County for the Golf Course Road Paving Project (hereinafter “the MOU for the Golf Course Road Paving Project”), a copy attached hereto and incorporated herein, is hereby approved. Section 2: Execution. The Mayor is hereby given authority to execute the MOU for the Golf Course Road Paving Project on behalf of the City. Introduced at a regular meeting of the City Council on the 26th day of March, 2024, by Council Member ________________. PASSED and APPROVED by the City Council of the City of Laurel the 26th day of March, 2024. APPROVED by the Mayor the 26th day of March, 2024. CITY OF LAUREL ___________________________ Dave Waggoner, Mayor ATTEST: _______________________________ Kelly Strecker, Clerk-Treasurer APPROVED AS TO FORM: ______________________________ Michele L. Braukmann, Civil City Attorney 109 1 | P a g e 2024 Golf Course Road Paving PROJECT MEMORANDUM OF UNDERSTANDING (MOU) Between Yellowstone County and the City of Laurel SECTION I: PARTIES This Memorandum of Understanding (MOU), has been made and entered into by Yellowstone County, (County), and the City of Laurel, (City). SECTION II: PURPOSE The county is asphalt overlaying a portion of Golf Course Road, a portion of Golf Course Road is in the city limits. The city would like to have their portion of Golf Course Road overlayed as well. The county will send out an invitation for bid for the paving project. The project will include the county’s portion and the city’s portion of Golf Course Road. The city has agreed to pay the county for the portion of Golf Course Road that is in the city. A general map of the project is shown as Exhibit A. The City and the County agree via this MOU to pay their proportionate share of this Project. SECTION III: RESPONSIBILITIES County Responsibilities: The County shall solicit invitations for bid, award the project to the lowest responsible bidder, enter into a contract with the contractor for the project. Once the project is completed the county will pay the contractor for the entire project. Developer Responsibilities: Upon successful completion of the Project, the city shall reimburse the County for the cost of their portion of the project. SECTION IV: INDEMNIFICATION The County agrees to hold harmless and indemnify the City from and against all claims, losses damages, or liability, resulting from the negligence of the County or its employees and agents in the performance of this MOU. The City agrees to hold harmless and indemnify the County from and against all claims, losses damages, or liability, resulting from the negligence of the Developer or its employees and agents in the performance of this MOU. 110 2 | P a g e SECTION V: MISCELLANEOUS Any claims or disputes arising out of this MOU, its performance that is not disposed of by agreement of the parties, shall be submitted to mediation for resolution of the disagreement. If mediation fails the dispute shall be submitted to arbitration before a single arbitrator according to the rules and practices of the American Arbitration Association and the findings of the arbitrator shall be binding on all parties to this MOU. Any costs associated with medication and arbitration shall be born equally by both parties. SECTION VI: TERMINATION AND DURATION Both parties are bound by the terms of this MOU until the Project is completed and the Project has been closed out. The Project will end when the Project has been closed out. ___________________________________ __________________________ John Ostlund Chairman Authorized representative Yellowstone Board of County Commissioner City of Laurel ___________________________________ ________________________________ Date Date 111 File Attachments for Item: 14. Resolution R24-20: A Resolution Of The City Council Approving Accrued Vacation Pay- Out For City Clerk-Treasurer. 112 R24-20 Approve Accrued Vacation Pay-Out RESOLUTION NO. R24-20 A RESOLUTION OF THE CITY COUNCIL APPROVING ACCRUED VACATION PAY-OUT FOR CITY CLERK-TREASURER. WHEREAS, the City of Laurel (hereinafter “the City”) has utilized the services of employee Kelly Strecker, the City’s Clerk-Treasurer, this previous year; WHEREAS, the Clerk-Treasurer has not been able to, because of the demands of the Clerk-Treasurer position, utilize her accrued vacation time; WHEREAS, the Clerk-Treasurer will lose her accrued vacation time, if not paid out by the City of Laurel; WHEREAS, because of the demands upon her position the previous year, and the needs of the Clerk-Treasurer Department, the City believes it is justified to pay out the accrued vacation time for the Clerk-Treasurer; and WHEREAS, the total amount of accrued vacation time to be paid out to the Clerk- Treasurer is one-hundred (100) hours of accrued vacation time. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Laurel, Montana, that the Mayor is authorized to pay-out accrued vacation time for the City Clerk- Treasurer of one-hundred (100) hours. Introduced at a regular meeting of the City Council on the 26th day of March 2024 by Council Member ________________. PASSED and APPROVED by the City Council of the City of Laurel the 26th day of March 2024. APPROVED by the Mayor the 26th day of March 2024. CITY OF LAUREL ___________________________ Dave Waggoner, Mayor 113 ATTEST: _______________________________ Kelly Strecker, Clerk-Treasurer APPROVED AS TO FORM: ______________________________ Michele L. Braukmann, Civil City Attorney 114 File Attachments for Item: 15. Resolution No. R24-21: A Resolution Of The City Council Approving A Commitment Of Funding For The Completion Of The West Railroad Street Project. 115 R24-21 Approve Commitment of Funding for West Railroad Street RESOLUTION NO. R24-21 A RESOLUTION OF THE CITY COUNCIL APPROVING A COMMITMENT OF FUNDING FOR THE COMPLETION OF THE WEST RAILROAD STREET PROJECT. BE IT RESOLVED by the City Council of the City of Laurel, Montana, Section 1: Approval. The Montana Department of Transportation Memorandum regarding estimated costs of completion for the West Railroad Street Project (hereinafter “the MDT Memorandum”), a copy attached hereto and incorporated herein, is hereby approved. Section 2: Execution. The Mayor is hereby given authority to execute the MDT Memorandum on behalf of the City. Section 3: City Obligations. The City hereby agrees that it will commit to a funding addition up to and including the amount of $2,737,319.00 for the completion of this project. The City further understands and agrees that payment is not required until an estimated sixty days before bid letting. Introduced at a regular meeting of the City Council on the 26th day of March, 2024, by Council Member __________. PASSED and APPROVED by the City Council of the City of Laurel the 26th day of March, 2024. APPROVED by the Mayor the 26th day of March, 2024. CITY OF LAUREL ___________________________ Dave Waggoner, Mayor ATTEST: _______________________________ Kelly Strecker, Clerk-Treasurer 116 R24-21 Approve Commitment of Funding for West Railroad Street APPROVED AS TO FORM: ______________________________ Michele L. Braukmann, Civil City Attorney 117 118 119 R24-21 Approve Commitment of Funding for West Railroad Street RESOLUTION NO. R24-21 A RESOLUTION OF THE CITY COUNCIL APPROVING A COMMITMENT OF FUNDING FOR THE COMPLETION OF THE WEST RAILROAD STREET PROJECT. BE IT RESOLVED by the City Council of the City of Laurel, Montana, Section 1: Approval. The Montana Department of Transportation Memorandum regarding estimated costs of completion for the West Railroad Street Project (hereinafter “the MDT Memorandum”), a copy attached hereto and incorporated herein, is hereby approved. Section 2: Execution. The Mayor is hereby given authority to execute the MDT Memorandum on behalf of the City. Section 3: City Obligations. The City hereby agrees that it will commit to a funding addition up to and including the amount of $2,737,319.00 for the completion of this project. The City further understands and agrees that payment is not required until an estimated sixty days before bid letting. Introduced at a regular meeting of the City Council on the 26th day of March, 2024, by Council Member __________. PASSED and APPROVED by the City Council of the City of Laurel the 26th day of March, 2024. APPROVED by the Mayor the 26th day of March, 2024. CITY OF LAUREL ___________________________ Dave Waggoner, Mayor ATTEST: _______________________________ Kelly Strecker, Clerk-Treasurer 120 R24-21 Approve Commitment of Funding for West Railroad Street APPROVED AS TO FORM: ______________________________ Michele L. Braukmann, Civil City Attorney 121