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HomeMy WebLinkAboutSpecial City Council Minutes 12.17.2004MINUTES OF THE CITY COUNCIL OF LAUREL December 17, 2004 A special meeting of the City Council of the City of Laurel, Montana, was held in the Council Chambers and called to order by Mayor Ken Olson at 5:00 p.m. on December 17, 2004. COUNCIL MEMBERS PRESENT: Dick Fritzler Kate Stevenson Gay Easton Jennifer Johnson Doug Poehls Mark Mace Daniel Dart John Oakes COUNCIL MEMBERS ABSENT: None OTHERS PRESENT: Steve K10tz cai Cumin Sam Painter Debi Meling, Morrison-Maierle Mayor Olson led the Pledge of Allegiance to the American flag. Mayor Olson asked the council to observe a moment of silence. PUBLIC INPUT: None. DISCUSSION REGARDING SID NO. 111 TO PROVIDE STAFF DIRECTION HOW TO PROCEED WITH PREPARATION OF THE PROPOSED RESOLUTION OF INTENT. Mayor Olson stated that the special meeting was called for the city council to discuss SID No. 111. At this time, he allowed the staff to provide information on how to proceed with preparation of the proposed resolution of intent. Steve Klotz distributed the following information:' City of Laurel CTEP Projects, 2005 - Proposed Estimates; Special Improvement District Ownership; Preliminary Engineer's Estimate - Special Improvement District. Copies are attached to these minutes. Steve explained the preliminary engineer's estimate by Morrison-Maierle. Morrison-Maierle prepared the numbers based on the staff's recommendation. The special improvement district construction subtotal is $272,908,00; the work it6m Subt6tal is the subtotal of what the city is funding; the city contribution is $35,000. That number has changed from what was previously presented, and the $35,000 will be funded out of the Street Maintenance Fund. We were taking a ten-year loan out of Street Maintenance to fund the street, curb, and gutter, and that will be increased to pay for the $35,000 city contribution. The amount of the CTEP contribution is $100,000. With the two contributions put toward the special improvement district, the property assessment per square foot of new concrete is $9.99 a square foot. With the numbers presented at the council workshop, the assessment was at $6.95 a square foot. Without the CTEP contribution, the square foot assessment would have been about $14.00. Steve stated that $10.00 a square foot is very, very small. Typically, a SID project that included street, curb, gutter, and sidewalks would be assessed $2.00 a square foot per lot. On the information about Special Improvement District Ownership, the ninth column designated the lot area. The second lot listed has 12,600 square feet. A full SID for the work being done on this project would be about $25,000 for this property, and this particular property would pay an assessment of $1,947.00. That shows how much has been removed and is being taken care of by the city and the CTEP contribution. The CTEP contribution of $100,000 does set a precedence that we are contributing CTEP money towards a project. There are some concerns with that. One concern is of the precedence and the other concern is about the other project(s) that might be cut. The city currently has approximately $194,000 CTEP funds available. Steve explained the information regarding City of Laurel CTEP Projects, 2005 - Proposed Estimates for projects to fund out of CTEP. The priorities could be adjusted very easily. The first priority, Pedestrian Access to South Side, City Entry Sign, South 4th Street and 1st Avenue South, is for curb, gutter, and sidewalk from where the Town Pump leaves off around the city property across the railroad tracks and would join back up with the curb, gutter, and sidewalk rumfing down South 4th Street. Right now there is no pedestrian access coming from the south side to South 1st Avenue. There is access crossing the ~racks going down 5th but there is no access the other way. This project also includes the city entryway sign, the "Welcome to Laurel" sign that had been discussed several Council Minutes of December 17, 2004 years ago. At that time, a rough estimate and design of a planter type "Welcome to Laurel" sign was done by Fisher and Associates. The $30,000 sign is included in the first proposed project. The rough estimate is $52,571 for that project. The next proposed project is at the park on Alder Avenue, Nutting Park. The Alder project was completed with curb and gutter do~vvn the west,side of Nutting Park. The proposed project would install the sidewalk adjacent to that curb and gutter. Some additional curb and gutter replacement is needed. In the Alder project, the elevation of the street right next to the park was raised to allow for the storm drain. The ditch elevation is so high that we had a really tall invert over the top of that and the curb and gutter drops very steep and then goes back in. The curb and gutter work in the proposed project would correct that by bringing the slope back for the curb and gutter so it flows evenly all the way down. That project would be about $23,377. The last proposed project is removal and replacement of curb, gutter, and sidewalk on the north side of Thomson Park, right across the street from the school. The curb and gutter is shot and the sidewalk is in rough shape. The numbers reflect curb and gutter replacement, as well as sidewalk on that side and curb and gutter only on the south side of the street. There is a little bit of sidewalk, curb, and gutter on the far end on 1st Avenue that needs to be replaced. Thomson Park is a big park, and that is why the number is so high. Those are the three proposed projects for the CTEP funds. There could be more projects and the priority could be shifted. At our current funding of the CTEP balance, the first two projects could still be done, including the Welcome to Laurel sign, which is a priority for a lot of people. At the council workshop, there were some questions regarding the annual and monthly costs to the property owners in the SID, especially those with a fixed income. The largest assessment is $3,000 a year, which is Schessler's property. Nathan Tubergen estimates that the bond will sell at about six percent over a twelve-year period. At $3,000 annually, that is $250 a month. Some of the more typical assessments are $283 annually, which breaks out to about $20 a month over the twelve-year period. There is the option to change the SID from twelve years to fifteen years. Typically, the increased interest paid would offset the benefit of lowering the price. There may be between a ten and fifteen percent reduction, which would equal about $20 a month for twelve years on the assessments of around $300 a year, and there may be $42 savings a year for three additional years of payments. Steve said that the period would likely stay at twelve years. The special improvement district total would be $160,!98.80. The assessment of the individual properties was shown on the sheet entitled "Special Improvement District Ownership." Alderwoman Johnson asked if businesses and residents could write off the SID assessment on income taxes. Steve stated that he thought the businesses could write it off as a business cost. Steve clarified that the list of proposed CTEP projects included the estimated Cost for each of the three projects. If SID No. 111 is approved with CTEP funding of $100,000, it would still be possible to fund the first two projects of $52,000 and $23,000 as discussed. Additional CTEP funds are available each year. Alderwoman Stevenson stated that the council did not discuss the difference in this project in the amount of use this street gets and the benefit it has to the entire community. It is not like other streets that are not an arterial street. This one is an arterial street and more people benefit from that than just the residents. Alderwoman Stevenson thinks that the use of the funds is quite prudent in this instance, and it seems to make sense to get it done. She liked the presentation and the use of the funds this way. When broken down into twelve-year totals, it is not exorbitant at all. She just spent $9,000 on concrete work this year on her sidewalk and would have liked to have an SID at these rates. If anybody goes out and prices:this, they know what kind of bargain they would get for it, and it is well worth it. Alderman Poehls also liked the presentation and agreed that it is an excellent use of funds. He had not thought about the arterial issue with the CTEP funds, and he thinks it makes sense to set a precedence of using CTEP funds on arterials. Even if the figures were doubled, it would still be a doable issue. Alderman Poehls stated that the council needs to buckle down and make the decision. Council Minutes of December 17, 2004 . Mayor Olson mentioned that, when the two-cent assessment for street maintenance came forward, he was looking for something to meet the community's needs. In the needs assessment survey, that particular street was the third street that the public wanted to see fixed. The first street was 1st Avenue, which is being addressed. The second street was 8th Avenue, which is on the path to future completion. He believes the council is taking the direction of the community when they had an opportunity to bring forward what they want to see completed, which was work on East 1st Street. Mayor Olson takes the needs assessment survey as a mandate from the public, and he supports the proposed program to do it. Alderman Easton stated that setting a precedence to install handicapped comers and alleys, as mandated by ADA, would not hurt any other project. If it is done on every street project, it would take some relief away from the comer property owner. He feels comfortable about using the CTEP money for this project and thinks it is money well spent. Mayor Olson asked the council to present a motion directing staff and the city attorney to work with Dorsey & Whitney to prepare the resolution of intent in accordance with $9.99 square foot assessment. Motion by Alderman Poehls to direct staff and the City Attorney to work with Dorsey & Whitney to prepare the resolution of intent in accordance with the $9.99 per square foot assessment, seconded by Alderman Dart. Alderman Oakes questioned whether some of the assessments would be paid off over a period of twelve years and asked if most of the money would not be received for several years. Steve explained that the city would have all of the money and the bond woUld be paid back over the twelve years, basically like a loan. A roll call vote was taken on the motion. All eight aldermen/women present voted aye. Motion carried 8-0. ADJOURNMENT: Motion by Alderman Easton to adjoum the council meeting, seconded by Alderman Poehls. A roll call vote was taken on the motion. All eight aldermen/women present voted aye. Motion carried 8-0. There being no further business to come before the council at this time, the meeting was adjourned at 5:25 p.m. ' Cindy Allen, 8~cretary Approved by the Mayor and passed by the City Council of the City of Laurel, Montana, this 4th day of January, 2005. Kenneth'E. Ols~, Jr., Mayor Attest: Mary K. ~(~bl~ton, Clark-T~easurer'~- 3 Cit~ of La.rel CTF_F l%ojeet,, 2oo5 - Fro?os~cl [st~mat~5 C~ ~t~ 5is~, (~ti~t~, ~i~h~a ~ )oooo 20000 Trees, ]nst~ll, (perTre~) o 5oo o ~ngln~ering ~ 10% NA NA Alder Tho~pso~ f~& (.J nlts (~.[ nit Cost 5~z5 ~+ o 6 I~F5o 19 0 ~-o 0 50000 o 500 NA NA +550 ,~16o gc~-z o o 2-500 2125 55550 o 27550 o o 0 $89,Zi0 I st Street Improvemeets Montana vTMI Project No. 0703.011.07 .J J MOP, PJSON Preliminary Engineer's Estimate - Special Improvement District [em No. 1 2 3 4 5 6 7 Unit Unit Price Special Improvement D~strlct: 2,939 SY Concrete Flatwork Removal 918 LF Concrete Saw Cut 16,724 SF Concrete Sidewalk, 4-inch 773 SF Concrete Sidewalk, 6-inch 560 SF Concrete Sidewalk, 8-inch (Colored) 3,654 SF Concrete Alley Apron, 8-inch 6,226 SF Concrete Driveway Apron, 6-inch 18.00 6.00 4.00 6,00 7.00 6.00 6.oo Total Price 52,902.00 5,508.00 74,896.00 3,865.00 3,920.00 21,924.00 37,356.00 Work Items Subtotal $ 200,371.00 LS Mobilization/Demobilization LS Taxes/Bonds/Insurance $ 20,038.00 $ 7,013.00 Construction Subtotal $ 20,038.00 $ 7,013.00 $ 227,422.00 Engineering Design Construction Engineering Contingency . Special Improvement District - Construction Sl:hfnf=! $ 20,468.00 $ 13,646.00 $ 11,372.00 $ 272,908.00 C-1 1,394 SY C-2 918 LF C-3 5,165 SF C~4 773 SF C-5 550 SF C-6 3,654 SF C-7 3,747 SF Concrete Flatwork Removal Concrete Saw Cut Concrete Sidewalk, 4-inch Concrete Sidewalk, 6-inch Concrete Sidewalk, 6-inch (Colored) Concrete A~ley Apron, 6-inch Concrete Driveway Apron, 6-inch 18.00 6.00 4.00 5.00 7.00 6.00 0.00 Work Items Subtotal CTEP Contribution City Contribution Special Improvement District - Subtotal (After City of Laurel & CTEP Contributions) Contribution to Revolving Fund 8% Bond Counsel $5,000.00 Accounting 5% Miscellaneous $3,500.00 Special Improvement District - Total Property Assessment per Square Foot of New Concrete $ 25,092.00 $ 5,508.00 $ 20,660.00 $ 3,865.00 $ 3,920.00 $ 21,924.00 $ 22,482.00 $ 103,451.00 $ (100,000.0( $ (35,000.0£ $ t37,908.0{~ $ 6,895.40 $ 5,000.00 $ 6,895.40 $ 3,500.00 $ t60,198.80 $ 9.99 Comments 10% 0f Work Items Subtotal 3.5% of Work Itams Subtotal 9% of Consb~c~on Subtotal 6% of Construction Subtotal 5% of Construction Subtot, Ed