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HomeMy WebLinkAboutCity Council Minutes 01.16.2001HINUTF. S OF THE CITY COUNCIL OF I, AURF. L January 16, 2001 A regular meeting of the City Council of the City of Laurel, Montana, was held in the Council Chambers and called to order by Mayor Chuck Rodgers at 7:04 p.m. on January 16, 2001. COUNCIL MEMBERS PRESENT: Lauren Van Roekel Ken Olson Gay Easton Bill Staudinger Gary Temple Mark Mace Daniel Dart Bud Johnson COUNCIL MEMBERS ABSENT: None Mayor Rodgers asked the council to observe a moment of silence in behalf of the family of Miranda Fenner. MINUTES: Alderman Olson stated that a correction was necessary in the January 2, 2001 council minutes. Under unscheduled matters, a reference to actual man-hours involved in the year's 222 calls incorrectly stated that 600-700 hours were spent. The estimated number of man-hours was 6,700, and the actual total was 6,638 man-hours. A correction will be made to the January 2, 2001 council minutes. Motion by Alderman Olson to approve the minutes of the regular meeting of January 2, 2001, as presented with the correction, seconded by Alderman Mace. Motion carried 8-0. CORRESPONDENCE: Department of Military Affairs Disaster & Emergency Services Division: Letter of December 29, 2000 regarding annual Governor's Conference on Emergency Management. b. Montana Taxpayer: December 2000. Yellowstone County Air Pollution Control Board: Minutes of December 12, 2000; Activity Report for December 2000; Agenda for January 9, 2001. d. MMIA: Risk Management Bulletin of December 22, 20001 e. Montana/Wyoming Association of Railroad Passengers. PUBLIC HEARING - Sewer rate increase. Mayor Rodgers stated that the clerk-treasurer received three letters of protest, and copies were distributed to the council. Mayor Rodgers explained that the new sewer rate for the average consumption for a single family in city (7 units consumption) should be $27.49 instead of $29.49, as incorrectly shown on Exhibit A Mayor Rodgers opened the public heating. Mayor Rodgers asked if there were any proponents. Larry McCann, City of Laurel Public Works Director, presented an update of the program which he previously gave to the City Council. The sewer system consists of the plant, lift stations, collection lines. Using conservative estimates, the value of that infrastructure would be about $10 million for the collection lines and about $8 million for the plant and litt stations. The sewer plant went on line in 1985 and has lost money on a regular basis since that time. There should be $648,000 in reserves, but there is presently only $193,000 in reserves. That figure includes reserves for the plant and the system, and system development fees. System development Council Minutes of January 16, 2001 fees are necessary for development of new areas of service, Last year's budget request for the plant and sewer system was $839,000, but the budget was reduced to $607,000, a substantial reduction in operating funds. Larry McCann introduced Duke Nieskens, Utility Plant Superintendent, to present more information. Coordinating pictures were shown on a screen as Duke presented the information. The design conditions for the treatment plant for the year 2000 were based on the historical wastewater characteristics prior to 1980 and then projected out to the design year 2000. The projected population for Laurel was 7,700. The population is a little lower than the projection, but the annual average for maximum monthly, weekly, daily, and hourly flows is higher than projected. Records show that the design flows have been exceeded since 1990. Major components of the Plant are being taken out of service for inspection and repairs. Due to lack of funds, the repairs have been delayed too long. Sometimes one unit breaks down while another is being serviced, and we cannot stay within our discharge permit requirements while a unit is off line for major repairs. We have problems meeting the federal and state government discharge permits due to excessive flow rates and equipment failures. Regulatory agencies can use an administrative order and daily fines to demand that the problem be rectified. Duke explained that the Methane compressors, Methane trains, Methane pumps, air compressor, air lines, plug valves are obsolete and would require piping changes to accommodate new replacement units. The roof, skylights, screw pumps, chlorination system, potable water supply, head works and service lines are in need of repair or replacement. Some of these items have been put on hold because of budget restraints. Duke further explained the needs and costs involved in maintenance of the various components of the sewer system. Because past rate increases have been minimal, it has been necessary to use reserves to fund the systems operations and maintenance. Without adequate reserves and documentation to substantiate a self-sufficient system, it would be difficult to qualify for any available grants. Since steps have not been taken in the past to make the system self sufficient, this could affect us even after a rate increase. It is necessary to implement rate increases regularly to maintain sufficient funds to operate and maintain the system. Plant expansion will definitely be needed as the community grows. Larry McCann presented a video of jet rodding the lines on 1~ Avenue South. The cost to repair the sewer lines on 1~ Avenue South would be $175,000. He also showed video of the lines at Pennsylvania Avenue, which serves 5th and 6th Streets between Colorado and Wyoming Avenues. There was a big problem at South 3~a, 4th and 5th Streets, Woodland, Yellowstone, and Durland Avenues last summer. In residential areas, the lines could be slip lined at a cost of $80,000 per block. Larry explained that a serious infiltration problem last summer made the city aware of some homemade manholes located on Lindy Lane. The 8th Avenue Project is still progressing. The lines are in bad shape and need to be corrected. If the water and sewer lines were in conflict with the new highway, the state would fund replacement of the lines. The cost for the 8th Avenue Project is estimated to be $500,000. If we have to replace the sewer or water lines in 8t~ Avenue, estimated costs would be $300,000 for either line. Larry emphasized that the costs to maintain the $18 million system can only be ignored for a certain length of time before they start to demand attention. Manholes need maintenance and sewer lines need to be jet rodded on a regular basis. Mayor Rodgers thanked Larry for his presentation. Alderman Temple asked regarding an incremental rate increase. Larry stated that it would take too long to maintain the system through an incremental rate increase. The longer the increase is delayed, the higher the costs would become. The present sewer system budget was based on an 85-cent increase to the sewer rates, a budget that is still $200,000 short of projected needs. The most serious concern is the lack of maintenance for the existing system for an extended period of time. The proposed increase is a 67% increase. Mayor Rodgers asked if there were any other proponents. Council Minutes of January 16, 2001 As financial advisor for the city, Mary Embleton, City of Laurel Clerk-Treasurer, stated that she is in favor of the rate increase. In analyzing the financial figures, she stated that the Sewer Fund has been struggling for a long time. The money used to build the plant was from the sale of revenue bonds, which will be satisfied in 2003. The bonds cost $85,000 in principle and interest payments. The city recently acquired a new jet fodder truck in order tO increase efficiency and maintain the sewer lines. The debt service for the jet fodder truck is $25;000 per year for three years. The city's rate structure should have included money to service the debt as well as to put in a savings account for future maintenance and development. The reserve has been drawn on too often and is now at $97,000. The rates have not kept pace with the obligation of reserving money for the future. This big rate increase is necessary to bring the City of Laurel back to the point where we are in a position to take care of present needs and to save for the future. Mayor Rodgers asked three times if there were any other proponents. There were none. Mayor Rodgers asked if there were any opponents. Buck Brown, 301 Woodland Avenue, stated that he is disturbed by the dramatic increase. He questioned why there has been a lack of maintenance of the system over the past years. Buck is concerned that the increase would be difficult for fixed income residents. Mayor Rodgers asked three times if there were any other opponents. There were none. Motion by Alderman Olson to close the public hearingl seconded by Alderman Johnson. Motion carried 8-0. Mayor Rodgers said that the council could have discussion regarding the sewer rate increase. He stated his appreciation for the work done by the present city staff to make the council aware of the problems and needs. Without a rate increase, the funds are not available to do what needs to be done. The average increase for a homeowner would be about $11.05 per month. Mayor Rodgers mentioned that the council could act on the motion at this meeting or table it until the next council meeting. Alderman Johnson asked regarding the option to make changes to the rate increase. Mayor Rodgers stated that the rate increase could be reduced; however, an additional rate increase would require defeat of this resolution, presentation of a new proposal and another public hearing. Alderman Olson asked regarding the base used to determine this rate increase. Larry explained that Midwest Assistance and MT Rural Water used different methods based on water line size or cubic usage to determine the increase amount, but both results were similar. The percentage of increase was reflected equally on all users. Alderman Temple stated that, when the proposal was received in September, the council did not anticipate the present problems and increases from the gas and electric utility companies. Because of these rate hikes, he would be in favor of incremental increases for the sewer rates. Mayor Rodgers stated that it is obvious that a decrease would cause the city to determine which project to delay and the length of time needed to get a better footing. If this had been presented in a proper manner ten years ago, the city would not be in the present position. Alderman Mace stated that the collection lines needed to be repaired now. The recent survey indicated that street repair is a top priority to the city's residents, but the sewer lines must be repaired before the streets, curbs, sidewalks and gutters are repaired. Mark emphasized that the present predicament is the result of past failure, but the problem must be addressed now and the present staff is able to do so. There is no alternative but to implement the sewer rate increase in order to resolve the problems. Alderman Johnson stated that one of the protest letters raised questions regarding a broken meter at the railroad and leaning rates for a local administrative building. Bud expressed that he was unsure whether or not to thank or berate the staff for a presentation that should have been done long ago. He came to the meeting with a firm conviction against the rate increase. The convincing information presented tonight caused him to reconsider, and he agreed that the issues must be addressed. He remained unconvinced that the rate increase addressed specifics and requested a plan of action. Council Minutes of January 16, 2001 Alderman Temple suggested that the rate increase should be tabled in order to present additional information to the council. There was discussion regarding scheduling another meeting for that purpose. Motion by Alderman Olson to table the sewer rate increase, seconded by Alderman Temple. This being the public hearing, a motion could not be made at this time. Alderman Olson withdrew the motion, and Alderman Temple withdrew the second to the motion. Alderman Temple asked if the audience had any questions. Buck Brown asked that a plan of action be presented. Alderman Staudinger recognized another audience member to speak. The gentleman asked regarding the possibility that funds have been misappropriated and the need for an audit. Mayor Rodgers responded that audits have been done, but the increases have not kept up with the costs. The gentleman also inquired if state funds were available to relieve the tax and increased burdens for residents. The recent needs assessment survey determined that the city is eligible for grants. Alderman Mace asked Mary Embleton to explain the steps taken to isolate the enterprise funds from the general fund to make them self-sufficient funds. Mary stated that state statutes and regulations require that each enterprise fund, including water, sewer and garbage, must be self-supported by its own separate user fees. Funds cannot be mingled, are audited separately, and are based on user fees. Loans are passed on to the user, and the fund is run like a business. Money made from the enterprise funds must go back into the system because the public owns the system. Loan requirements necessitate cities to show that adequate rates are in place to maintain and operate the system, to pay back any debt service, and to set money aside for the future. CONSENT ITEMS: a. Clerk/Treasurer Financial Statements for the month of December 2000. b. Receiving the Committee Reports into the Record. --Budget/Finance Committee minutes of December 18, 2000 were presented. --City Council Committee of the Whole minutes of January 2, 2001 were presented. --Public Works Committee minutes of January 8, 2001 were presented. --Laurel Airport Authority minutes of September 26, 2000 were presented. --Laurel Airport Authority minutes of October 24, 2000 were presented. --Laurel Airport Authority minutes of November 28, 2000 were presented. c. Resolutions. 1) Resolution No. R01-1: Being a resolution transferring certain insurance funds of the City of Laurel, Montana. RESOLUTION NO. R01-1 BEING A RESOLUTION TRANSFERRING CERTAIN INSURANCE FUNDS OF THE CITY OF LAUREL, MONTANA. 2) Resolution No. R01-2: A resolution approving the bid for a police car from Laurel Ford. RESOLUTION NO. R01-2 A RESOLUTION APPROVING THE BH) FOR A POLICE CAR FROM LAUREL FORD. The mayor asked if there was any separation of consent items. There was none. Council Minutes of January 16, 2001 Motion by Alderman Johnson to approve the consent items as presented, seconded by Alderman Staudinger. Motion carried 8-0. SClt~DULED MATTERS: a. ConfirmatiOn of ApPointments. None. Resolution No. R01-3: A resolution increasing City of Laurel wastewater rates and charges to all users. RESOLUTION NO. R01-3 A RESOLUTION INCREASING CITY OF LAUREL WASTEWATER RATES AND CHARGES TO ALL USERS. Motion by Alderman Olson to table Resolution No. R01-3, seconded by Alderman Temple. Motion carried 7-1, with Alderman Mace voting nay. Alderman Johnson asked regarding a date for an interim meeting to discuss the aspects of the sewer rate increase. Larry McCann will make a presentation at a special Public Works Committee meeting scheduled for January 30th at 5:00 p.m. in the council chambers. This would be an informational meeting and no council action would be taken. c. Cai Cumin: TCSP Grant report. Alderman Johnson presented the report on the TCSP Grant and stated that serving on the Oversight Committee has been an educational process. At the most recent meeting, the Director of the Missoula Transportation Management Authority presented the Park and Ride service program that is provided in the Missoula area. The transportation issue between Laurel and Billings has been discussed in the past, and it was interesting to see how such a service was started in the Missoula area. Alderman Johnson stated that the TCSP process is about defining transportation infrastructure and incorporating principles of long-term community sustainability into a planning process that involves community members. A Smart Growth column in the Laurel Outlook has generated education and interest throughout the community. Ken Olson, Cal Cumin and Ann Cossitt spent two days showing the film "Subdivide and Conquer" to the high school students. The process has allowed some of the land uses to be digitized and included in the GIS system in cooperation with the county. The idea of providing a buffer, or a green belt, between Laurel and Billings is another consideration. Issues such as land trust, subdivision regulations, zoning regulations, building codes, and renovations in the downtown area are additional considerations for the committee. The Laurel Revitalization League has had ties with the Oversight Committee. Thanks to Cai Cumin's work, our community was one of thirty-five communities to receive the grant. The Oversight Committee meets on the second Thursday of each month at 7:00 p.m. in the council chambers. The committee's financial statement is presented at each meeting. Cal Cumin mentioned that it has been great to work with the Oversight Committee, which includes three City Council members, the Laurel Revitalization League, two representatives from the State of Montana Highway Department, representatives from First Avenue and some downtown businessmen. UNSCHEDULED MATTERS: a. Ordinance No. O00-6. The ordinances allowing Thomae Lumber's loading zones on Wyoming and Washington Avenues were rescinded through Ordinance No. 000-6 at the January 2, 2001, council meeting. The Council Minutes of January 16, 2001 ordinance would become effective in thirty days, and Alderman Olson stated that additional time is needed to work out a solution regarding the loading zones at Thomae Lumber. Motion by Alderman Olson to suspend the implementation of Ordinance No. 000-6 rescinding repealing previous Ordinances 822 and 1080 with an extension of a maximum Of 90 days, seconded by Alderman Temple. Alderman Mace asked Alderman Easton if this extension would allow enough time for Thomae Lumber to complete the construction of fencing, approach, sidewalk, curb and gutter which was discussed at the previous Public Works Committee meeting. If an agreement were reached soon, enough time would be available. A vote was taken on the motion. Motion carried 8-0. b. Public Official of the Year. Alderman Olson recently attended a banquet where Mayor Rodgers was honored as Public Official of the Year. He extended his congratulations to the mayor and thanked him for the many hours of service to the community. c. Workshop. The workshop for the council and department heads is scheduled for Saturday, January 20th, at 8:00 a.m. in the Fire Hall. d. Meeting with Brent Olness. A special Budget/Finance Committee meeting is scheduled for Monday, January 29th, at 6:30 p.m Brent Olness, the auditor, will conduct the exit interview at that time. All members of the council and the public are invited to attend this meeting. There being no further business to come before the council at this time, the meeting was adjourned at 8:39 p.m Cindy AllenCSecretary Approved by the Mayor and passed by the City Council of the City of Laurel, Montana, this 6th day of February, 2001. Charl~s~J. Rodgers, M~'yo-r ~ ~' Attest: Mary K. ~nblet0n, Clerk-Treasurer 6