HomeMy WebLinkAboutCouncil Workshop Minutes 07.31.2012 MINUTES
COUNCIL WORKSHOP
JULY 31, 2012 6:30 P.M.
COUNCIL CHAMBERS
A Council Workshop was held in the Council Chambers and called to order by Mayor Ken Olson at
6:30 p.m. on July 31, 2012.
COUNCIL MEMBERS PRESENT:
_x_ Emelie Eaton _x_ Doug Poehls
_x Bruce McGee (6:45 p.m.) _x_ Mark Mace
Scot Stokes _x_ Chuck Dickerson
Tom Nelson x Bill Mountsier
OTHERS PRESENT:
Heidi Jensen Monica Plecker
Kurt Markegard Jean Kerr
Public Input (three - minute limit):
Citizens may address the Council regarding any item of City business not on the agenda. The duration for an individual
speaking under Public Input is limited to three minutes. While all comments are welcome, the Council will not take action
on any item not on the agenda.
Doug Ruebke, Billings, Montana, is on the animal control board in Billings and is working with the
Yellowstone County Health Department, but he was not representing either entity at this meeting. He
stated that the health department is updating its 1976 resolution on rabies and the intent is to get
Billings, Laurel and Yellowstone County in the same language to provide uniform control and
enforcement of rabies. He invited the City of Laurel to attend the meeting on August 8 at 3:00 p.m.
Information and contact numbers he provided will be distributed to the council.
General items:
• Appointments:
o Laurel Ambulance Service: Amber Achton and Brook Murphey
The appointments will be on the August 7 council agenda.
Mayor Olson stated that the appointments of Chuck Dickerson to the Public Works Committee and
Tom Nelson to the Budget/Finance Committee would be added to the council agenda.
Executive Review:
• Resolution — Laurel Transit Authority 2012 -2013 Bus Operating Contract
Monica spoke regarding the contract with the Montana Department of Transportation to continue with
the Laurel Transit Authority. The city applied for the maximum amount of the grant, which is
$60,000 with a $40,000 contribution from the city. The grant runs from July 1, 2012 through June 30,
2013. There were no substantial changes from last year's contract.
Council Workshop Minutes of July 31, 2012
There was discussion regarding the service that the grant provides to the community, the $10,000
impact to the General Fund, the Federal Transit Authority's definition of rural communities as being
under 50,000 residents, and the common need for transit systems to have to use General Fund monies.
• Resolution — Intent to levy maintenance assessments for SID No. 114
Monica stated that she has addressed the council previously about the SID in Elena Subdivision and
the council recently passed a resolution of intent to create the district. The SID is for the
improvements and the maintenance costs for the improvements also need to be addressed. Several
steps have to be taken in the coming weeks and the process is on a tight schedule.
This resolution is for the maintenance costs associated with the SID. The resolution of intent passed
last council meeting was just for the improvements, and this resolution is for the maintenance. The
city is not doing a park maintenance district, so this is just a special assessment that is associated with
the SID. It requires a resolution and a public hearing, which is scheduled at a special council meeting
on August 28 The assessment for each property is $210.53, which is $105.27 for each tax period.
If the council approves the resolution of intent to levy, there will be a notice period and then the
council will need to approve a resolution to levy the assessments. Four resolutions are associated
with this SID. The process is under a time crunch because the legislation specifically says that, if the
city is going to levy an assessment associated with an SID, the council must determine that by
resolution by the first Monday in September. That is why a special meeting is needed. Monica
stressed the importance of asking questions regarding the resolutions and assessments and expressed
the need to waive the two -week rule and make a decision after the public hearing. In order to get the
assessments on the tax rolls and have money for maintenance, the resolutions need to be finally
approved.
There was discussion regarding the $847.00/lot assessment for the improvements and the $210.53/lot
assessment for maintenance. The SID for the improvements is for a five -year term and the
assessment for maintenance is an annual cost, which will be determined each year.
There was further discussion regarding the public notice process, the public hearing on August 28
the $100,000 initial costs for the improvements ($80,000) and maintenance ($20,000) for the first
year, and the option for property owners to pay the SID assessment upfront or over five years.
Monica explained that the $80,000 is specifically for the improvements, which includes grading,
tilling, and seeding and installation of the sprinkler system. The council approved the resolution of
intent for the SID and the resolution to create the SID will be presented at the council workshop on
August 14 after the protest period has ended. The project will go out for bid since it will be over
$50,000.
• Status of City's Comprehensive Growth Policy (Tom Nelson)
Mayor Olson moved this item up from the council issues on the agenda.
Monica stated that review of the Growth Management Plan began in March. Copies of a timeline for
review were distributed to the council. The review committee has completed four chapters and will
continue to review all nine chapters. There was a hitch with Yellowstone County regarding mapping
and some of the costs the city was going to incur, so staff has been working with the Realtors
Association to go after grant funds. The group decided to move forward without the mapping
component and to focus on the text and the maps will be added in a second review. The council will
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Council Workshop Minutes of July 31, 2012
have opportunity to review the plan in the final stages next year at this time. The Planning Board will
review the plan, hold a public hearing and then make a recommendation to the city council. The
council will also hold a public hearing.
Monica encouraged a council member to be involved in the review process.
Mayor Olson stated that the current Growth Management Plan was adopted in 2000 and has not been
updated since, which made it necessary to start the process over. With Monica's experience in growth
management plans, he believes the city is on the right path to get a product that will serve the city for
future growth management decisions.
• Discussion — Collection of the sewer portion of the TIFD loan
Heidi explained a handout regarding the TIFD loan. She stated that a large sewer improvement
project is needed at the sewer treatment plant. The city asked the state revolving fund (SRF) for a
loan but the city did not qualify as the city had more debt than money. After many revisions to the
sewer budget to reduce expenditures, increase revenues, and make the numbers balance, the public
works director, clerk/treasurer and Heidi realized that the TIFD had taken out a sizeable loan from the
sewer fund to complete improvements on First Avenue. The resolution states that if the TIFD has
enough money, the city could ask for a balloon payment, which would decrease the city's debt enough
to become eligible for the SRF loan. Mayor Olson, Shirley and Heidi explained the situation to
LURA and LURA voted unanimously to go forward with the balloon payment. The handout was
given to LURA as an explanation of their current balance and how it would affect them long term. It
would be a one -time payment, would not cover the full loan from the city, and would reduce the
amount the TIFD pays in the future. It would cut their normal cash flow next year from $631,000 to
$310,000, and it would reduce their principle significantly so the interest and balance would decrease
faster.
Heidi stated that LURA is working on a five -year plan. LURA has received a lot of support from the
city, as three staff members and the mayor attend most of the meetings.
Mayor Olson explained that the TIFD (Tax Increment Finance District) became a reality in 2007. The
$1.4 million project was a TIFD project but the TIFD did not have the money for the project. At that
time, it was suggested that 40 percent of the $1.4 million be borrowed from the sewer fund and 60
percent from the water fund. Every six months, the TIFD pays $77,000 back to the water and sewer
funds for the loan. Mayor Olson commended Heidi, Kurt and Shirley for coming up with this way to
alleviate the needs in the sewer fund.
• Budget Reports
Heidi presented the proposal for the 4000 Capital Projects Fund. The first capital project is for the
fire department, and the $14,479 appropriation would actually come out of the fire department's
reserves. It is not exactly a capital improvement out of the CIP fund, but it is a capital improvement
and must be listed in the 4000 fund. There were requests from every department, but staff had to
decide the best use for the funding.
The next proposed CIP allocation is $140,000 to the cemetery improvements. Heidi spoke regarding
the past bids for the sprinkler system and the need to earmark the funding in case bids are too high
again.
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Council Workshop Minutes of July 31, 2012
Mayor Olson mentioned today's press release that the VA plans to open eight National Veterans
Burial Grounds, with one being located in Laurel, Montana. That might present opportunities for
partnership, so the council would be prudent to consider the staffs recommendation to place this in a
restricted fund.
The next proposed CIP allocation is $40,000 for a Transportation Plan for the City of Laurel. The
plan would provide guidance as to where roads should go for growth. Transportation Plans are
supposed to be done every ten years, and the city's last plan was done in 1972.
The last proposed 4000 CIP allocation is $80,000 for the FAP offices. Heidi handed out a map to
show proposed plans that Don Seyffarth prepared for the old ambulance space. She explained the
proposal, which includes a Sally Port, ADA accessible restrooms, a detective room, a fire office, an
office for the fire chief a storage room and a storage room with lockers for the police officers and the
police reserves. Heidi stated concerns regarding MOSHA violations, transporting of prisoners, fire
safety issues and storage issues. She explained the estimated costs for construction to create a secure
space for the Sally Port and to update duct work and electrical work in an older existing building.
The 4001 CIP Fund includes the Sidewalk Program for $39,860. There has been an overwhelming
response to the program, which is going forward and the owners of the properties that have been
chosen are very excited.
The 4001 CIP Fund also includes the $80,000 SID project in Elena Subdivision for the installation of
grass and sprinklers.
Heidi asked Kurt to present the water fund budget.
Kurt explained that the water fund budget, as previously presented, did not include $200,000 for water
line replacement and $150,000 for construction of the water fill station. Those two items have been
added to the water fund budget. An additional $10,000 has been added for the expenses occurred
during the water line break on South First Avenue last week.
There was a question and discussion regarding the construction company's duty to pay some of the
costs of the waterline break on South First Avenue.
Heidi stated that the city has to have money in the line item to pay for the upfront costs that were
incurred. The investigation process will determine who is responsible for the costs, but the city needs
the money to be able to pay the costs.
Heidi spoke regarding the ROW fees charged to the sewer fund. Since 2008 -2009, the water and
sewer funds have paid a right -of -way fee back to the general fund. The ROW fees started at $62,000
and have increased every year. However, by cutting this year's ROW rent of $137,500 in half to
$68,750 and having the TIFD repay part of the loan, the city could meet the guidelines for the SRF
loan. The general fund will take a $68,750 hit this year by not receiving the additional funds for the
right -of -way fee, but there is no other way to get the loan unless the city wants to address sewer rates.
Kurt spoke regarding the $6.00/EDU sewer rate, the change in charging wages and personnel in the
water and sewer departments (75 percent /water and 25 percent /sewer), the significant increase of
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Council Workshop Minutes of July 31, 2012
$2,400 in chemical costs to treat hydrogen sulfite issues at the Village Lift Station, and the line item
to replace the 1999 utility truck.
Great West and the city met recently to go over the plans for the sewer plant project, which will go
out to bid this fall in order to meet the June 2013 deadline for ultraviolet.
Doug Poehls left at 7:32 p.m.
• Resolution — Accept bid for chip seal on SE 4 Street and citywide chip and crack seal project
Kurt explained that a citywide pavement condition index (PCI) of the streets in town was done last
year and the streets were ranked by condition for alligator cracking, crack seal, potholes, raveling, etc.
The city went out to bid for chip sealing and crack sealing and Hardrives submitted the lowest bid for
$175,000. Since the bid came in under the engineer's estimate of $234,451 and the city has set aside
extra funds for street maintenance, city staff will review the streets that need to be addressed. The
contractor has agreed do more streets at the bid price while doing the project. A reconciliation change
order would be presented to the council for Hardrives to complete additional chip sealing while the
contractor is mobilized for the SE 4 Street project.
There was discussion regarding the MicroPave program and PCI, pavement condition index.
• Resolution — Accept quote for sewer line replacement on 11 Street and Montana
The resolution was removed from the council workshop agenda.
• Ordinance — Contractor's business licenses (LMC 5.08.040)
Heidi explained that, when the contractor's license was updated in 2010, it was changed to require
commercial or comprehensive general liability insurance, commercial automobile liability insurance
and proof of workers' compensation insurance. All three items were required before the city would
issue a business license to contractors. It has been difficult to get the contractors to provide these
items. Although the intent of the council was to provide the most protection for the homeowner, it
has become a hindrance for the city. Surrounding cities do not have these requirements. If the
homeowner wants to know whether a contractor has liability insurance, auto insurance or worker's
comp insurance, they need to ask before they hire them.
Heidi stated that, since the city wants to encourage business and contractors in town, the best way
would be to list what a contractor is and require them to get a standard business license. Information
regarding the process to get a business license could be added to the city's website. She stated that
removing these three items would be in the best interests of city staff and the homeowners.
There was discussion regarding penalties and the enforcement issues, as well as the opportunity for
further discussion during the ordinance change process.
• Ordinance — Home occupation business licenses (LMC 17.52.030)
The ordinance was removed from the council workshop agenda.
• Council Issues:
o Update of speed limit issue on East Railroad Street (Scot Stokes)
Heidi explained that the issue has become more convoluted than expected. The city approached the
state and found out the request had to be on a state board's agenda. Staff tried twice to get on that
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Council Workshop Minutes of July 31, 2012
agenda and was finally on the agenda. Now the state has decided that the traffic study done on the
road was not adequate and they are going to conduct their own study on East Railroad Street with a
date to be determined. Unfortunately, there is no quick resolve to the East Railroad Street issue.
There was a suggestion to put an article in the newspaper and in the city's newsletter to update the
public regarding the status of the speed limit on East Railroad Street.
Other items
Heidi spoke regarding past discussion about public hearings and council decisions and the topic of the
ordinance to make resolutions be a two -week process. Council Member Poehls had asked for an
attorney's opinion, which was provided today. There has been discussion about whether the
ordinance should be changed so the council can hold a public hearing and then vote on the issue on
the same night, instead of waiting until the next council meeting. There has also been discussion
regarding ex parte communications. Heidi stated that the attorney's opinion stated support for an
ordinance change. The attorney feels that the public would have the ability to have their voice heard,
and the council would have the ability to extend the hearing or postpone the vote for any reason. It
would require a majority vote to extend a public hearing, whereas the current process requires a
unanimous vote to waive the two -week rule.
There was discussion regarding the issue, a question regarding the opportunity to delay the vote, and
the opportunity for further discussion at the next council workshop. A draft ordinance will be
prepared for the council's review at the August 14 council workshop.
Heidi stated that the city attorney would provide an update on the Neptune water meters and ask the
council how they would like him to proceed at the council workshop on August 14
Heidi reported on today's conference call with FEMA representatives. The Category B project
worksheet for the emergency work on the exposed waterline has been approved. Funds in the amount
of $26,000 will be transferred to the State DES this week and could be in the city's bank account by
the end of the week. The project does not need to go out to bid, but the city will solicit bids. The city
will send the information to contractors and keep track of who was contacted. As long as three
contractors are contacted and the project is under $50,000, the emergency work can be done. FEMA
also talked about the permanent fix to the bank. Great West will finish the proposal soon, forward it
to the city for review, and then send it to FEMA. The next conference call is scheduled on August
14 as the review should be done and a decision made.
Last Friday, the city received an extension from the Army Corps for the mitigation credits in the
amount of $50,000 required by July 31 In a letter received on July 27 the Army Corps stated that
they understood the situation with FEMA and funding. Since no construction had been done on the
project, they would wait on the mitigation credit and would reevaluate it once FEMA had determined
the amount of bank they are willing to repair. FEMA has received the $36,000 from Fish Wildlife
and Parks for the boat ramp, which is being included in the design. FEMA is encouraged that the city
is on an expedited track and should be able to do construction this low water season.
Review of draft council agenda for August 7, 2012
Two appointments will be added to the council agenda.
Attendance at the August 7, 2012 council meeting
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Council Workshop Minutes of July 31, 2012
All council members present will attend. Doug Poehls will chair the meeting, as Mayor Olson will
not attend.
Announcements
Emelie asked for an update on the water fill station.
Heidi stated that the preferred location is still on railroad property. The city attorney forwarded the
lease request to MRL, who forwarded it to the BNSF legal team. The water fill station is included in
the budget, even though a location has not been determined. There will be further discussion
regarding extension of water and sewer lines to that facility and storm water runoff as the project
moves forward.
There was discussion regarding the project, the council's past request to move forward with the water
fill station, the lease with the railroad, questions about finding a different location, and the city's
desire to move forward with the lease if it is available.
Mayor Olson mentioned that the Elected Officials meetings are scheduled in Kalispell on October 3`
4 and 5 The agenda is not available yet, but registrations need to be submitted as soon as possible.
The council workshop adjourned at 8:07 p.m.
Respectfully submitted,
.61,:etzily OJJ2e—,---/
Cindy Allen
Council Secretary
NOTE: This meeting is open to the public. This meeting is for information and discussion of the Council for the
listed workshop agenda items.
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Cash %4ii for the Tax Increment Financing bastr kt
2012-2013
Normal
Requesting Debt Sery
6/30/2012 `: egunn ng Cash BaDarace $ 398,810.00 $ 398,810.00
7/31/2012 Storm Water Pymt
Total Pymt Sewer $ (188,270.00) $ (26,997.00)
Request Total Pymt 5 238,854.00 Water $ (40,496.00) $ (40,496.00)
Normal Pymt 5 77,582.00 Int Pymt 5 (10,088.00) $ (10,088.00)
7/31/2012 Cash B ance $ 159,956.00 $ 321,229.00
11/30/2012 Tax Revenue $ 193,589.00 $ 193,589.00
11/30/2012 Cash Balance $ 353,545.00 514,818.00
1/31/2013 Storm Water Pymt
Sewer 5 (188,270.00) $ (27,267.00)
Total Pymt Water $ (40,496.00) $ (40,496.00)
Request Total Pymt . Int Pymt $ (7,801.00) $ (9,413.53)
Normal Pyi»t $ 77.177.00
1/31/2013 Cash Balance $ 116,978.00 $ 437,641.47
5/31/2013 Tax Revenue $ 193,589.00 $ 193,589.00
6/30/2013 Cash Balance $ 310,567.00 $ 631,230.47
South Laurel Storm Water Project
Loan Payment Schedule
Principle $ 1,400,000.00 Rate 2% # of Pymts Principle Pymt
20 $ 77,581.44
Pvmt Due Date Principle Interest Balance
1 7/31/2009 $ 77,581.44 $ 14,000.00 $ 1,322,418.56
2 1/31/2010 $ 77,581.44 $ 13,224.19 $ 1,244,837.12
3 7/31/2010 $ 77,581.44 $ 12,448.37 $ 1,167,255.68
4 1/31/2011 $ 77,581.44 $ 11,672.56 $ 1,089,674.24
5 7/31/2011 $ 77,581.44 $ 10,896.74 $ 1,012,092.80
6 1/31/2012 $ 77,581.44 $ 10,120.93 $ 934,511.36
7 7/31/2012 $ 228,766.00 $ 9,345.11 $ 705,745.36
8 1/31/2013 $ 228,766.00 $ 7,057.45 $ 476,979.36
9 7/31/2013 $ 39,748.28 $ 4,769.79 $ 437,231.08
10 1/31/2014 $ 39,748.28 $ 4,372.31 $ 397,482.80
11 7/31/2014 $ 39,748.28 $ 3,974.83 $ 357,734.52
12 1/31/2015 $ 39,748.28 $ 3,577.35 $ 317,986.24
13 7/31/2015 $ 39,748.28 $ 3,179.86 $ 278,237.96
14 1/31/2016 $ 39,748.28 $ 2,782.38 $ 238,489.68
15 7/31/2016 $ 39,748.28 $ 2,384.90 $ 198,741.40
16 1/31/2017 $ 39,748.28 $ 1,987.41 $ 158,993.12
17 7/31/2017 $ 39,748.28 $ 1,589.93 $ 119,244.84
18 1/31/2018 $ 39,748.28 $ 1,192.45 $ 79,496.56
19 7/31/2018 $ 39,748.28 $ 794.97 $ 39,748.28
20 1/31/2019 $ 39,748.28 $ 397.48 $ 0.00
•
City of Laurel
Growth Management Plan
Project Timeline
Q Meeting Planning Department
1.1 Kickoff
1.2 Form Working Group J
Draft #1
2.1 History
2.2 Natural Features
2.3 Demographics
2.4 Housing
2.5 Economy • •
2.6 Transportation
2.7 Utilities
2.8 Community facilities
Existing Land Use and Future
2.9 Land Use
Draft #2 (Include Mapping)
3.1 Demographics /Housing
3.2 Housing /Economy
Transportation /Utilities /Com
;r.
3.3 munity Facilities ..
Existing Land Use and Future
3.4 Land Use
PLANNING BOARD DISCUSSION /PUBLIC HEARING /ADOPTION
4.1 Planning Board Discussion
4.2 Public Hearing
4.3 City Council
4.4 Public Hearing
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