HomeMy WebLinkAboutCouncil Workshop Minutes 10.25.2005 MINUTES
COUNCIL WORKSHOP
OCTOBER 25, 200S 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 October 25, 2005.
COUNCIL MEMBERS PRESENT:
x Dick Fritzler
x Kate Steve*son
_x_ Gay Easton
_x_ Jennifer Johnson
x Doug Poehls
x Mark Mace
Daniel Dart
x Norm Stamper
OTHERS PRESENT:
Perry Asher
Mary Embleton
Jarcd Schoch, Johnson Controls
Alan Anaeth, Johnson Controls
Curt Samuelson, NW Pipe Fittings
Mayor Olson informed the council that John Oakes passed away this morning. John was a Ward
4 alderman for several years and was passionate about his service on the council. Mayor Olson
expressed condolences to the family.
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.
· None
Presentation on automated meter reading system - Jf~hn~on Control~
· Perry Asber stated that the representatives from Johnson Controls would present a
proposal for a program for installing automated meters in the city.
o Sared $choch and Alan Anscth represent Johnson Controls, and Curt Samuelson
represents Northwest Pipe Fittings.
· Jared $choch distributed information about the Infrastructure solutions offered by
Johnson Controls, and a copy of the handout is attached to these minutes.
· Discussion regarding:
o A memorandum of understanding between the city and Johnson Controls would
allow the company to study, design und implement improvements and associated
operational savings across the infrastructure.
o The timefxame necessary to recover the costs can be anywhere from three to five
years up to fifteen years, with thc average being seven to eight years.
o The benefits of thc system continue for approximately fifceen years, and a strategy
for replacement of the meters needs to be projected for that time.
Council Workshop Minutes of October 25, 2005
o The meter reading system would allow the four city crew members to work on
other projects during the three to four days that are currently spent reading meters.
· With the new system, meters could be read by one person in one
afternoon.
o Water meters are warranted for a certain length of time, and the flow of the water
through the meter does came the parts to wear out.
· This necessitates a plan for replacement of meters.
o Mayor Olson mentioned that the cost of the technology has lowered considerably
since Larry McCann started working on this project about five years ago.
o Perry stated that there is a difference of about 50 percent between what the water
treatment plant takes in and what is accounted for with the water meters.
At this time, Mary brought the Memorandum of Understanding to the Mayor, and copies
were distributed to the council prior to the end of the meeting.
The resolution for the Memorandum of Understanding with Johnson Controls will be on
the council agenda on November 1~t for the council's consideration.
Clerk/Treasurer: Quarterly Report
· Mary Embleton distributed copies of the Quarterly Report For Fiscal Year 2005-2006 as
of September 30, 2005, and a copy is attached to these minutes.
· The report included graphs showing the cash, revenue and expense for the General Fund,
Street Maintenance District Fund, Gas Tax Fund, Water Fund, Sewer Fund, and the Solid
Waste Fund.
· In the tax-levied General and Street Maintenance Funds, cash reserves arc being used
became the first tax payments will not be received until December.
· The Street Maintenance Fund will incur expenses for the East First Street prejeet in the
next quarter.
· Gas Tax money is received monthly.
· Water Fund revenues are at 32 percent, which is typical at the end of the summer
watering season.
o Project expenses will show up in the Water Fund on November 1st.
· The Sewer Fund is at about 13 percent of revenue, which is low became no grant monies
have been received yet.
o Grant revenues will be reimbursed after the funds are spent.
o Expenses in the Sewer Fund are also low became the project expenses have not
yet been paid.
· Mary stated that the major funds are in good shape.
· Mary noted that interest rates are up, especially in STIP.
o Investments are earning a better rate than at this time a year ago.
o About 74 percent of the city's investment money is in STIP, and the city will
probably consider moving more money to STIP.
· The city has a large balance in the operating fund in anticipation of the expenses of the
big projects.
· Mayor Olson mentioned that the new color printer makes it possible to provide the
colored graphs in the clerk/treasurer's reports.
o Mayor Olson thanked Mary for the accuracy and the completeness of the report.
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Council Workshop Minutes of October 25, 2005
· Mary mentioned that the Quarterly Report does not reflect the changes that will result
fi:om approval of the union contract, which will be approved retroactive to July 1 st.
Certified Taxable Value
· On October 20th, the city received notification that its certified taxable value had
decreased by over $14,000, which is roughly $15 a mill.
o That is a cause for concern when the city is struggling to keep the mill value up.
· Mary distributed information to the council, and the information is attached to these
minutes.
o The first sheet was the 2005 Certified Taxable Valuation Information received on
August 2''d.
o The second sheet was a copy of the Taxing Jurisdiction Change in Valuation.
o The third sheet was the October 20, 2005 letter regarding notification of change in
valuation.
o The fourth sheet was the 2005 Certified Taxable Valuation Information received
on October 25t~.
· The Department of Revenue explained that the change was mainly due to centrally
assessed properties.
· The Central Assessed Division of the Department of Revenue in Helena is charged with
trying to place a value on all of the properties in the State of Montana that cross taxing
jurisdictional lines, such as railroads and utilities or any company that operates all over
the state.
o The major corporations have attomeys and bookkeepers on staff to argue and
challenge the values set by the Department of Revenue.
o The request for a review and filing a tax appeal all takes time.
o Three main corporations, Northwestern Energy, Williston-Basin, and a 360
corporation, had changes in value.
· A similar incident happened a few years ago because TouchAmerica was going bankrupt
and now NorthWestern Energy is going bankrupt.
· The City of Laurel requested recertification.
o Initial estimates showed that there would be about a $2,500 loss in revenue, but
the city would lose the ability to levy the maximum mills.
o Norm Klein recommended that the city request recertification, and it was received
today.
· The Taxable Value of Newly Taxable and Eliminated Property changed by
$20,000.
· With the new value of the mill and the change in the Taxable Value of
Newly Taxable and Eliminated Property, Mary was very relieved to find
out that it will have very little effect on the city.
· Under the old value, the city could levy a total of 136.93 mills.
· Under the new value, a total of 136.81 mills are needed to raise the same
amount of revenue.
· There was a lengthy discussion regarding this issue with suggestions to write a letter to
Governor Schweitzer, contact the League of Cities and Towns, and discuss it at the joint
meeting with the county commissioners.
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Council Workshop Minutes of October 25, 2005
· Mayor Oison removed the Purchasing Policy and the policy change for change orders
from the council workshop agenda.
Attorney:
· Resolution- 2005-2007 Union Contract
o A draft copy of the union contract, a bullcted list of the contract changes, and the
draft resolution to approve it were distributed to the council.
· Sam explained that the union contract went to mediation, the union
recently ratified it, and the council must now review it and make a
decision to approve or reject it.
o The annual wage increases and the creation ora Police Officer Step System were
two major issues in the contract.
· If approved, the union contract would be retroactive to July 1, 2005.
o Sam encouraged the council to contact him or other members of the committee
with any questions regarding the contract.
o Discussion regarding the Police Officer Step System
· The police officers wanted the Step program based entirely on length of
service.
· The city wanted the program based on length of service plus training or
education~
· The program is explained in the draft of the union contract.
· The Step Program would be retroactive to July 1
o The resolution will be on the council agenda on November 1st.
· Resolution - Purchasing Policy
o The Purchasing Policy was removed from the council workshop agenda.
· Emergency Ordinance - Adopting the 2003 Editions of the IBC, IRC and International
Existing Building Code, the Uniform Plumbing Code, along with the 2003 Edition of the
International Energy Conservation Code
o State of Montana notified the city that it was reviewing its files in regards to the
building codes, residential codes, etc. that the State requires the city to adopt.
o The State determined that Laurel did not adopt the codes properly.
o Sam explained that Title 15 in Laurel's code book has building and construction
codes, some of which are required by the State for adoption and some of which
are specific to Laurel.
· The State and City of Lanrel codes cannot be included in the same section
of the code book.
· Sam needs to renumber the codes, and separate the State codes and City of
Laurel codes into separate chapters in the code book.
o The pmcoss to adopt an ordinance takes time, so adoption of the emergency
ordinance would allow the codes to be adopted immediately, without notice, and
to be effective for ninety days upon adoption.
o The emergency ordinance will be on the council agenda on November 1, 2005.
o Completed draft copies of the ordinances will be distributed to the council prior to
the council meeting.
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Council Workshop Minutea of October 2S, 2005
Ordinance - An ordinance amending Title 15 of the Laurel Municipal Code for the
purpose of updating the codes adopted by and enforceable by the City of Laurel in
accordance with the requirements of the State of Montana.
o This ordinance will adopt the codes in the normal ordinance process.
o The ordinance will be on the council agenda on November 1, 2005.
Ordinance -An ordinance modifying Title 3, Chapter 3.08 of the Laurel Municipal Code,
to cemply with both changes in State law and the City's adoption of a Purchasing and
Procurement Policy.
o The legislature raised the statutory limit for purchases from $20,000 to $50,000
and construction projects from $25,000 to $50,000, requiring the City of Laurel to
publicly advertise all purchases of goods or services which exceed $50,000.
o The ordinance reflects the current bid evaluation process and review of contracts
by the city attorney.
o The ordinance will be on the council agenda on November 1, 2005.
Executive review:
· Policy change for change orders
o This item was removed from the council workshop agenda.
· Police Commission appointment - Brett Lund
o Mayor Olson will appoint Brctt Lund to complete the term vacated by Charlie
Pratt, who moved to Billings.
· Resolution - Accepting a grant from the Montana Department of Transportation for
monies to be spent on the Selective Traffic Enforcement Program (STEP) and authorizing
the Mayor to sign said grant.
o The STEP grant pays for DUI overtime hours for the police department on
holidays.
o This is the third time the city has participated in the grant.
o City of Laurel recovered over $5,000 last year.
o With the new grant agreement, the city would be reimbursed for the fuel costs for
the police vehicles.
o The resolution will be on the council agenda on November 1, 2005.
Review of draft council agenda for November 1~ 2005
· The second readings of Ordinances No. O05-11 and O05-12 are on the November
council agenda.
Announcements
· Discussion regarding the Laurel Drag Free Coalition and the Drug and Alcohol Task
Force.
· Doug Poehls attended the YMCA's Battle of the Bands fundraiser last weekend.
· Kate Stevenson thanked the council for allowing her to be gone during October.
Attendance at the November 1st eouneil meetins,
· All council members present will attend the October 27th joint meeting and the November
1't council meeting.
5
Council Workshop Minutes of October 25, 2005
Other items
· Mayor Olson mentioned that, at the council meeting on Octoberl 8th, a motion was made
to amend the October 4~ council minutes.
The minutes were amended to read "assisted living" facility instead of "nursing
home" facility.
o However, the facilities were referred to as ''nursing home" facilities during the
October 4th council meeting.
o Minutes are written to reflect what was said and done, not what was intended or
should have been said.
The council workshop adjourned at 8:18 p.m.
Respectfully submitted,
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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City of Laurel
Quarterly Report
For Fiscal Year 2005-2006
As of Septetnber 30, 2005
Introduction: The first quarter financial reports for fiscal year 2005-2006 are provided
herein. These reports compare the budget to actual revenues and expenditures. Tiffs
report is intended to pr6vide ~luick 6verview of each fund's aeti~tity in comparison to
the budget and amount 0ftime elapsed since the fiscal year _began. We are now at 25%
of the year expired. Any funds showing revenues at more than 25% are better than
projected. Any funds showing expenditures at less than 25% are better than projected.
The following major funds are included:
General Fund(*) '
Street Maintenance Fund(*)
Gas Tax Fund
Water Futid
Wastewater Fund
Solid Waste Fund
It is important to remember that not all revenues and expenditures occur evenly
throughout the year. This is especially true in those funds that receive their revenues
from tax collections, designated above with (*). Taxes are collected in two large
installments: taxes due in November are paid to the city in December, and taxes due in
May are paid to the city in June. Cash reserves play an important role in these funds, as it
is these reserves that allow the city to carry through the months when little or no revenue
is received, yet monthly expenditures still occur.
The city also has money invested in various institutions. The city is limited to investing
in instruments that are backed by very secure assets, as provided by state law and as
outlined in the city's investment policy. The following is a list of the city's investments:
Institution APY $ Term
Montana Board oflnvestroents 3.686% $4,008,063.86 month
First Citizen's Bank 1.77% 100,000.00 month
Yellowstone Bank 2.32% 1,035,504.75 month
Western Security Bank 2.75% 100,000.00 year
Laurel Federal Credit Union 1.05% 100,000.00 month
SEG Credit Union .85% 100,000.00 month
Interest rates have gone from an average of 1.2 % last year to around 2.07% this year.
The city's operating cash is handled by Yellowstone Bank~ and this money also earns
interest (.25% APY) on an average balance of $839,345. With the credit unions earning
such low rates of interest, it would be prudent to move these dollars to abetter interest-
earning account, such as STIP.
Quarterly Financial Report
Ending September 30, 2005
Page 2
GENEIML FUND(*):
The total revenue for the General Fund as of 9/30/05 is $476,850, which is 18% of the
budget. Included in this figure is tho first quarterly payment of FY'06 Entitlement
revenues from HB124. The General Fund cash balance is $849,877 as of 9/30/05.
The General Fund exp~ditur~ are a~ $693,192 or 24% of the budget. However,
revenues are exceeded by expenditures by $216,343. Last year, the deficit was $153,554
at this same time of the fiscal, y~ar. The reserve balance will carry the fund until
December revenues are received.
STREET MAINTENANCE. FUND(*):
Revenues as of 9/_30/05 for this fund are at 3% of budget for a total of $25,344.
Expenditures for the same period are at $89,502 or 9% of budget. Revenues are
exceeded by expenditures by $64,158. The reserve balance will carry the fund until
December revenues are received.
GAS TAX FUND:
This fund is utilized along with the Street Maintenance Fund for street work. The annual
revenue, received monthly, is determined by the state, based on the number of miles of
street and alley within city limits. As of 9/30/05, a total of $33,500 or 25% of budgeted
revenue has been received. A total ors 135,658 or 28% of budget has been expended as
of 9/30/05. Revenues are exceeded by expenditures by $4,275.
tF~4 TER FUND:
Revenue for this fund totals $678,716 or 32% as of 9/30/05. Expenditures so far this year
total $308,257 or 1 I% of the budget. Revenues exceed expenditures by $370,459.
SEtFER FUND:
The Sewer Fund has collected revenues at 13% of budget, or $324,571. This is below the
norm of 25% due to the TSEP and DNRC revenues that have not been received as yet, for
the second phase project (trunk line to plant) slated to begin this fall. The expenditures
are at 7% of budget, or $198,627. This is also due to the projects. Currently, revenues
exceed expenditures by $125,944.
GARBAGE FUND:
As of 9/30/05, revenues total $169,806 or 29% of budget. Expenditures are at 19% of
budget, or $135,864. Revenues exceed expenditures by $33,943 as of 9/30/05.
If you have any questions after reviewing this report, or any of the monthly financial
statements, please feel flee to call me at 628-7431 ext. 3
Respectfully submitted,
Mary IC Embleton, CMC, Clerk/Treasurer
10/24/05
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MONTANA .:
Form AB-72T . . ·
2005 Certifiod TaXable Valuation Inform
Coun~of Yellowstone ' I F'ITV ~, ,..~.
· · 'i': ' · . . L_~', , urJ.AURE[
Taxing Jurisdiction: City of Laurel ~
1. 2005 Total MarketValde ......... ]..] ..................... : ........ : ..........
2~ 2005 Total Taxab e Value ..... ~;,,, .... ' ..i ':~..,.. ' · ' '
3. 2005 Taxable Value Of Newly Taxable and Eliminated Prope :....~.'
a) .Newly Taxabie.Property as identified.in Tax Policy
and Research fi'PR) spreadsheet .....................
' ' b 2005 TaXable Value of Eliminated Property ..... - ............... :: .......
4. 20'05 Taxable Value ~f Net and Grass proceeds' :
(Class 1. and Class 2 properties] ........................ ~,...:..~ ..... ~...
Tax Increment Curren{ Taxable :' Base Taxable Value
DistriCt Name· ' ' Value
$
$
178,613,57R
$ 232,730
225,89¢.
Incremental Value ·
Preparer
*Note: This .is the value to be used'by local governments in calculating the mill levy par
1'5-10-420, .MCA. 'It is the sum of Items 3(a) and 3(b). '
...................................... :. ...................................... _~ ......... - ......... -~: ........
For Information Purposes. Only
20OStaxable value:of'centrally assessed property having a marketvalue'of:$.'~ million- or more;
which has transferred-to a different ownership 'in'compliance with15-10.202(2), MCA..
1. Value included:in "newly taxable:' property
Il. '?omi value exc~usire of"newl~; taxable~ 'property $
$. 0
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Oct 20 05 01:43p STATE OF MONTANA DEPAR 4068964070 p.2
REVENUE
MONTANA
Form AB-72
08-05
Taxing Jurisdiction Change in Valuation
- Datei October20, 2005
To:
Taxing Jurisdiction CiTY OF LAUREL
County
YELLOWSTONE
Re: Change in valuatio~for the 2005 tax year
The change in value for this taxing jurisdiction is (+ or -)'$
in taxable value.
-14,435
The above information indicates how much the valuation has changed in the above listed taxing
jurisdiction. This change has occurred since the valuation in that jurisdiction was placed on the
tax roll on the first Monday of August. If you have questions,
please contact Jody Richards at (406) 896-4026
If you believe this valuation change may have an impact on your revenue collections, complete
the "Request for Re-certification of Taxable Valuation" (below the solid horizontal line), and
submit the form to the Department of Revenue employee whose name you see on the
"Prepared by" line. If you donot request a m-certification of'taxable value, the law provides for
the use of the orJqinal taxable value we provided on the first Monday in Auqusl
Prepared by ~ ~ '~/~ on /~/'~_~--
d 0 Department of Revenue / /
,~Ba Request for Re-certification of Taxable Valuation
sed on the valuation change shown above, I, the undersigned hereby request the
Department of Revenue to re-certify the taxable valuation for this taxing jurisdiction.
' 'gnat~ of Taxing JurisdictiOn Official / ' Date z
438
Oat 2p 05 01 ;44p STATE OF MONTANA DEPAR 4068964070 p.3
Dan Bucks
Ofrec~r
October 20, 2005
Montana Department of Revenue
Brian Schweitzer
Governor
To:
County Commissioners
County Treasurers
County Clerk and Recorders
County Su perintendent of Schools
From: Dolores Cooney, Adrni'r~istrator
Randy Wilke,* Deputy Director
Re: Notification of Change in Valuation
Attached are the "Taxing Jurrsdiction Change in Valuation (AB-72)" forms for the various
jurisdictions impacted by the recant revisions and settlements on Centrally Assessed
Property. The values indicated on these documents are a summation of all value
changes that have occurred in the jurisdiction since the odginal certification of values
was completed August 1, 2005.
We'll be notifying each of the jurisdictions where the value change has been determined
to be over the value of one mill, based on the original certified values. Not all
jurisdictions have had a change in value to that degree.
We ap0k)gize for the timing of this notification, but felt it was imperative that we notify
you of the changes in values as we became aware of them, Al~ough the total dollar
amount of change may be significant, you may find that the value change, by fund, may
not be sufficient to warrant the need to request a re-certification of value, and to reopen
the budget and mill levy setting process. However, in some instances you may
determine that re-certification of values Js appropriate. Please know that we're ready to
assist you after you make that decision. If you determine that a recertification of value
is not needed, you'rl be able to refy on the certified values turned over on August 1.
After you've had the opportunity to review the valuation changes, if you would want a
recartification of values, please complete the bottom portion of the enclosed form and
return it to the local Property Assessment Division Office. The staff in the local office
has completion of the recertificati0n process as their highest priority.
If you have any questions about completion of the form, please contact the local
Property Assessment Division Office. If you have any questions about the change in
Customer Sen/ice I406] 444-69C0 · TDD (406} ~.4~.~2830 · w'vvw.rnt, gov/revenue
Oot 20 05 01:44p STATE OF MONTANA DEPAR 4068964070 p.4
values on the Centrally Assessed property, please contact KoW Hofland, (444-2569) or
Gene Walbom (444 0908) and they will be happy td discuss those changes with you.
Cc:
Local Property Assessment Office
Regional Managers/Area Managers
Enclosures
2005 Certified Taxable Valuation Inform;
(Pursuant to 15-10-202, MCA)
County of Yellowstone
· Taxin, g Jurisdiction: City of Laurel
1. 2005 Tota~ Market Value .......................................................... $
2. 2005 Total Taxable Value .........................................................$
3. 2005 Taxable Value of Newly.~'.axable and Eliminated Property ........ $
a) Newly Taxable P~opedy as identified in Tax Policy
and Research (TPR) spreadsheet ....................................
b) 2005'Taxable value of Eliminab;d Property ............................. $
4. '2005 Taxable Value of Net and Gross Proceeds (Class 1 and Class 2 properties) ..........................................
Tax Increment Current Taxable Base Taxable Value
District Name, Value
MONTANA
Form AB-72T
L1i OCT 2 5 5
C!TY LAUREL
174,841,853
5,870,50q.
212.712 *
205 876
e,83,6
Incremental Value
'Note: This is the value ~ be used by local governments in calculating the mill levy per
15-10.-420, MCA. It is the sum of Items 3(a) and 3(b).
For Information Purlaoses Only
2005 taxable value of centrally assessed property having a market value of $1 million or more,
which has transferred to a different ownership in cc~mpliance with 15-10-202(2), MCA.
I. Vatue included in "newly taxable" property
$ 0
II. Total value exclusive of "newly taxable" property $
440T
CONTRACT CHANGES
Annual wage increases, 3%, 3.5% and 4.0
Creation of a Police Officer Step System (years of Laurel Service and education)
Language change for. consigency Employer instead of City
Reco~n~i~e seniority and winimum qualifications for new or vacated positions or special
duty ass'~l~ments in Police Depamnent
Article VIX Section 5, lan~age change for clarification
Article VII Section 7 Seniority applies to overtime ~and call-outs, not vacation selection
Article V~I Section 3, standard lunch hour is ll:00 to 11:30 a.m.
Article VIII Section g, established Police Officer shift bid schedule
Article IX Section 3, payment of unused leave once per year by separate check on first
payday in December
Article IX Section 5, established Police Call out for City Court. City must notify if case
continued or cancelled one day prior to trial or City must pay 2 hours regular pay
Article X Section I and Section 6, removed Employee's Birthday as a Holiday and
clarified how the acr~rmflation and pay of holiday pay is calculated, in accordance with
Mont~nz Law
Article XI Section 5, established process for employees seelfing leave and employer
~antin~ leave, created de~dllnes
Article XII Section 9, clarified employee benefits are calculated in accordance with State
Law when an employee is on Work Comp. Leave
Artide xm' Section 6, Personal Leave, provided an additional personal day, trading for
birthday
Article XV, removed requirement for specific type of insurance, replaced with comparable
insurance available through MMIA
· Health insurance coauibutions remain the same
Retroactive to July 1, 2005
Addendum B, modified the probationary status pay to 95% pay until after probation
period, use to be 90% for 6 months, then 95% for next 6 months
Adopted now pay scale with separation between officers and operators