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'~-
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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