HomeMy WebLinkAboutCouncil Workshop Minutes 04.25.2006 MINUTES
COUNCIL WORKSHOP
APRIL 25, 2006 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 April 25, 2006.
COUNCIL MEMBERS PRESENT:
_x_ Dick Fritzler _x_ Doug Poehls
x Kate Hart x Mark Mace
_x_ Gay Easton _x_ Chuck Dickerson
Jennifer Johnson _x_ Norm Stamper
OTHERS PRESENT:
Mary Embleton
Keith Molyneaux
Perry Asher
Larry McCann
Rick Musson
Scott Wilm
Jason Ness
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 wdl not take action
on any item not on the agenda.
· None
Fire Department:
· Chief Scott Wilm and Jason Ness
o Jason Ness started servkng on thc fire department in October 2001 and on the ambulance
service in November 2001.
o In January 2005, he was called to active military duty and was stationed in Ft. Riley,
Kansas. He returned home on Easter Sunday, April 16th.
o Mayor Olson welcomed Jason back and thanked him for his volunteer service to the City
of Laurel.
Police Department:
· Resolution- Comr~t for phone system for the FAP
o Rick presented the resolution to purchase phone equipment for the FAP.
o The phone system at the FAP is outdated and updating will provide voice mail.
o Two quotes were received:
· ABTelcom - $7,879.12
· Connect Telephone - $15,671.30
o Rick recommended the quote from ABTelcom.
o The current phone system in the FAP has ABTelcom equipment.
o The equipment purchase could come out of the building maintenance fund.
o Discussion regarding cell and digitalphone service relating to 911 calls
o The resolution will be on the May 2na council agenda.
Council Workshop Minutes of April 25, 2006
Clerk-Treasurer:
· Budget amendment resolution- Building Department
o Mary explained that the Building Department will be moved to its own fund, as
recommended by state statute and the BARS manual.
o Revenues and appropriations will be increased accordingly because of future
development.
o This year's budget will be amended in anticipation of changes in revenues and
appropfiatiom.
o The General Fund will transfer approximately $20,000 in revenue and $28,000 in
appropriations to about $120,000 in revenues and about $77,000 in appropriations in the
fund.
o This should take care of some issues that were not anticipated when the budget was
adopted last July and some issues that are in the works through the end of the fiscal year.
o The building department revenues will be specifically identified in this special revenue
fund and will be easier to identify and manage.
o One correction is needed to the attachment.
· Den'~lition permits are not allowed in the Building Department Fund and will
stay in the General Fund.
o Mary recommended approval of the budget amendment, which will also include any
excess cash that has been generated by the Building Department this fiscal year.
o The actual expenses, revenues, and cash will be moved by a journal voucher in April
business so that the new fund will begin in May.
o Revisions will be made in allocation of time for public works and building department
employees for the 2006-2007 budget.
o The resolution will be on the May 2"a council agenda.
· Resolution - E-911 equipment
o The serial numbers for the E-911 equipment were received today.
o The Intercap loan papers will be prepared by the end of the week and could go forward
to the council on May 2"a or wait until May 16th.
o The loan closing is scheduled for May 19th.
o Installation of the E-911 equipment will begin the end of May, and the funding will be
available to pay for it.
o Mayor OLson said that the resolution would come forward on May 16th.
Public Utilities Denartment:
· Resolution- TSEP application
o Larry McCann stated that the State requires the resolution for the grant application,
which is due on May 5th.
o The city council adopted the Wastewater Facilities Plan in 2003.
o Since some work has been completed, the chapter of the plan that states what will be
worked on will be updated in this grant application.
· The East First Street project addressed some of the monthly lines.
o The grant application is due May 7, 2006 and the legislature will decide in 2007.
· If Laurel is successful, the design would proceed, and the project would begin in
2008.
o The last two parts of Phase I and Phase 3 of the Wastewater Facilities Plan will be
addressed, including:
· Rebuilding both lii~ stations, which are over twenty years old
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Council Workshop Minutes of April 2S, 2006
· Fixing the hydraulic problem at the sewer plant.
· We can get the water into the plant through the grit chambers, but once
we lift the water and take it to the basin, there is a hydraulic problem.
· The hydraulic problem is partially created because the plant cannot handle
the excessive flows going through it, which is millions of gallons over
design.
· The Phase 3 rebuilding of the RBC's and adding phosphorus and nitrate removal
in the process will be inchidad.
· Discussion regarding TMDL's required by the State of Montana:
* The State h~as not set the TMDL's, which designate what can he put in the
Yellowstone River and is needed before going to final design on the
project.
· The State has agreed to meet with the city but has not said they will give
the results of their meeting in writing.
· Lewistown put $8 million into their sewer plant and then the State
lowered the allowed discharge levels.
· A sewer rate increase would he needed with this project as the Sewer Fund
cannot support this without one.
· This $3 million is only a dent in an $8 million project, which needs to be spread
over twenty years.
· With Laurel's current growth, this cannot be delayed for ten years.
o Discussion regarding the summer sewer average
o Discussion regarding getting the State to put the TMDL limits in writing
o The resolution will be on the council agenda on May 2ha.
Administrative Assistant:
· Cost Allocation System
o Perry gave a presentation on the proposed cost allocation system.
o The $13 million budget was divided into line and overhead departments.
· The overhead departments are council, mayor, financial and legal.
· The line departments are judicial services, streets, police, fire, animal control etc.
o The system provides a way to calculate and spread the cost of the overhead departments
amongst the line departments.
o The General Fund would receive an additional $155,875 fi'om other funds with this
system.
o Mayor Olson would like to implement the system in the 2007-2008 budget cycle.
· It would allow rate studies to be completed and rate increases to be done by that
time.
· It would be more accurate to base the system on actual expenses rather than
budgeted appropriations.
o The auditors have included cost allocation for administrative fees in the audit findings
for the past seven years.
Funding alternatives for the East First Street project
o Perry presented information on the funding altematives for the East First Street project,
and a copy of the information is attached to these minutes. · The information is as of January 1, 2006.
· There was a cash reserve in the Street Fund of $333,955.
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Council Workshop Minutes of April 25, 2006
· There were estimated additional revenues of $212,170.
· An additional $150,000 in expenditures was estimated.
The alternatives are:
· $330,000 loan from the General Fund
· $330,000 Intereap loan
o A loan from the General Fund would basically deplete the excess cash reserves.
o As the total budget in the General Fund increases, the amount needed to keep in
contingency also increases in order to maintain the necessary 20 percent.
o By taking $330,000 out of cash reserves now, the contingency would drop below 20
percent.
o Perry explained the Intercap loan.
· The annual payments for a five-year Intercap loan would be $74,000 with 4
percent interest.
· Payments for a three-year Intercap loan would be $118,000 per year with 4
percent interest.
· The difference between a three-year and five-year Intercap loan would be:
· $37,644 more per year
· Interest savings of $13,781 for athre~-year plan
o Perry stated that the five-year loan is a better alternative because it does not cost virtually
anything and leaves the city with more money each year for projects.
Resolution - Contract with KC Interiors for carpeting in the council chambers
o Carpeting will be installed in the lobby and the council chambers.
o Contract is for $3,843.00.
o Resolution will be on the council agenda on May 2~a.
Resolution - Development Agreement with School District No. 7
o The council previously approved Resolution No. R06-22, which approved a
Development Agreement with School District No. 7 for the Laurel Middle School.
o The school district negotiated to have the section regarding East Seventh Street
Improvements deleted from the agreement.
o The resolution approving the agreement will be on the council agenda on the May 2
council agenda.
Resolution - Project Development Agreement with Johnson Controls for the automated meter
reading system and facilities analysis
o Perry explained the funding mechanism.
o The agreement includes the sum of $93,677, which is the cost of everything Johnson
Controls is doing in this stage of the program.
· If the city pulled out when Johnson Controls finished with this part of the
program, the maximum cost would be $93,677.
· In the current process, Johnson Controls will pull and test 200 meters; if they find
no reason to continue, the city would be responsible to pay the cost, which would
not be the whole $93,000.
· If things go as they expect, the $93,677, which is the cost of this part of the
program, will be rolled into the payback that the city will realize from savings for
the rest of the program.
o Mary mentioned that a facilities analysis of the boilers, lights, windows, etc., is also
being done.
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Council Workshop Minutes of April 25, 2006
Discussion regarding replacement of water meters:
· All water meters will be replaced in the City of Laurel, and a radio transmitter
will read the meters monthly.
In their initial evaluation, Johnson Controls has determined that there is a large
difference between the billed water and the water that is processed through the water
plant.
The resolution will be on the council agenda on May 2nd.
Resolution - Storm water preliminary engineering contract
o The City of Laurol applied to the State of Montana for a Preliminary Engineering Grant
from TSEP in May 2005.
o The city received the grant, went out for requests for proposals, and received four
proposals.
o A committee (Perry, Larry, Mary and Steve) reviewed the proposals and recommends
Montana Engineering and Administration (ME&A).
· Since ME&A completed Laurel's flood study and has done some irrigation ditch
issues, they have a good feel for the city's storm water issues.
· The next step in the process, afler council's approval of the recommendation,
would be to discuss price for a storm water facility study.
o The Wastewater Facility Plan is done, the Water Facility Plan is progressing, and a storm
water facility plan is needed so that the council and staffwill continue to go in the same
direction in future years.
o The resolution will be on the council agenda on May 2"d.
Ordinance - No skateboarding in city park picnic shelters and at the library
Park issues
o Perry explained that, afler staffdiscnssion regarding the park issues, there was a general
sense that staffwould like moro time to review the issues before making a
recommendation to the council.
o Sam would prefer to address all of the park issues at the same time.
o The issues will be brought to the council in the future.
~ Discussion regarding allowing the Park Board to consider these issues
· Mayor Olson stated that the formation of a Park Board has not been completed
yet.
· The council could decide whether or not to wait on these issues in order to have
them come before the Park Board.
o Mayor Olson stated that additional time for review would allow staffto drafl an
ordinance that will meet the needs of the city.
Executive review:
· Project HELP - scheduled for May 1-6, 2006
o The group will work from 6.'00 to 8:00 p.n~ in the evenings and the council could work
together some evening.
o Project HELP has requested additional garbage cans and additional police patrol.
o The barricades are up, the wood chips are on the street, the lumber has been delivered,
the surveying has been completed, and the elevations have been marked so holes can be
drilled and posts can be set to the proper elevation.
o Members of the council plan to participate in the project.
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Council Workshop Minutes of April 25, 2006
· City-County Joint Meeting
o A joint meeting with the City of Billings, Yellowstone County Commissioners, School
District No. 2, and the City of Lanrel is scheduled for Thursday, May 4th, at 6:00 p.m.
· Reservations need to be made by Thursday, April 27*.
o Discussion regardi~4; speed limits on West Ninth Street, Valley Drive, East Maryland
Lane, and Ridge Drive.
· Speed limit issue will be submitted for the joint meeting agenda.
o Discussion regarding putting the following items on the joint meeting agenda:
· Twelfth Street storm water issue
· Staffis trying to find more information and is not ready to bring it
forward.
· Alder Avenue annexation
· Mayor wants staffto talk to the county staffregarding options about Alder
Avenue.
Resolution - City attorney contract extension
o Mayor Olson reed a letter fi.om Elk River Law Office regarding extension of the contract
to June 30th.
· The current t~nas and conditions will apply.
o A new agreement will be considered for implementation in the new fiscal year beginning
July 1, 2006.
o Discussion regarding:
· The overage clause in the current contract
· The process for the city attorney contract
o The resolution will be on the council agenda on May 2nd.
Approval of funding for new planner position
o The council previously approved the City Planner II job description.
o Discussion regarding the need for a full-time planner vs. part-time planner
o Mayor Olson has asked Cal to extend his contract, which ends June 30t~, for six months
from July to December 2006.
· Revisions to the city's development regulations are due in October.
· If the city finds the funding and a new planner, Mayor Olson encouraged the
council to maintain both the new planner and Cal for that period of time because
oftbe changeover and the added workloed.
o The budget for the city planner position will be presented for the council's decision in
the budget, which must be approved by the second week in August.
o Discussion regarding the interview/hiring process for the city planner position
o Suggestion to include grant writing in the City Planner II job description
o Discussion regarding opportunities for full-time vs. part-time planner:
· Language regarding the planner's availability to the city at a particular time each
week could be incorporated into a contract.
o Dick questioned whether there is anticipated growth in the future that has not been
wimessed in the past.
o The current part-time position does not include an hourly prevision or a requirement for
time spent at the city on a regular basis.
o Mark stated that Cai has mentioned the need for a full-time planner.
o Kate agrees that a full-time planner will be needed eventually.
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Council Workshop Minutes of April 25, 2006
o
· She said that the ability to do grant writing would be a nice feature and should be
incorporated into the job description.
· Cai knows the city and the issues, and she would like to have the current planner
and the new planner work together for a length of time.
Mayor Olson explained that the city is now positioning itself so it can react more wisely
and have better information to make a decision when the need or opportunity arises.
Discussion regarding a walk-through of the East First Street project
o Atter discussion, the council scheduled a special council workshop for Wednesday, April
26th, at 6:00 p.m.
o Notice will be posted and the newspaper will be informed.
o Discussion regarding the inconvenience for the business owners during the project
Review of draft council agenda for May 2, 2006
· Public hearing - Ordinance No. 006-04 (First reading - 04/18/2006)
o The resolution for the TSEP grant will be added to the council agenda.
Announcements
· Doug mentioned that the pool contract with the YMCA needs to go forward.
· Norm mentioned that the businesses in the Ben Franklin building have been greatly affected by
the East First Street project.
o There was further discussion about the installation of the curbs, gutters, sidewalks, and
the street in the project.
· The Arbor Day celebration is scheduled for Friday, April 28th, at 1:00 p.m
Attendance at the May 2"a council meeting, · All present will attend.
Other items
· Chuck questioned a statement in and the approval of some recent Budget/Finance Committee
minutes.
o Mary explained th~at the committee approves the minutes prior to placing them on the
council agenda to accept them into the record.
The council workshop adjourned at 8:20 p.m.
Respectfully submitted,
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.
Loan - Three Year ,back
Remaining Expenses
~ Loan
Loan From General Fund
Remainder
Balance
Remaining E. 1st St. Expenses
Annual Debt Service
Other Projects
$ 330,000 $ - $ - $
$ $ -$ - $
$ 327,484 $ - $ - $
$ 327,484 $ - $ - $
$ $ 118,000 $ 118,000 $ 118,000
$ 68,641 $ 278,125 $ $
Difference in payments per year
Interest Savings for 3-year plan
$ 37,644
$ 13,781
City of Laurel
2006 Wastewater PER Update
and TSEP Grant Application
Piffr
HOUNDARY
..-, ? , ?1a?T= aim
A
' Z3
_r ?
1. Review Recent Wastewater
Planning and Project History
2. Review Growth Projections
and Current WWTP Conditions
3, Discuss Needs for a
Preliminary Engineering Report
Update
4. Review 2006 TSEP Grant
Application
Wastewater Facilit
2001-2003
PER completed in 2003
2022 pop, of -8100 (lower bounds)
Outlined phased improvements
over an 8-10 year period:
? Collection system projects aimed at
flow reduction
WWTP projects aimed at upgrade
capacity improvement
Collection system projects aimed
replacement and reliability
Project - 2003-05 (Phase 1A)
*Applied for CDBG Grant in 2003
*Awarded $500,000 CDBG Grant in
2003
*implemented Project in 2004
?Sewer improvements on Alder
and near RR
? WWTP Drain Pump Station
? WWTP effluent flow
measurement
x Project - 20D4
• Applied for TSEP Grant in 2004
? Replacement of major trunk
mains into the WWTP
Awarded $500,000 TSEP Grant and
$100,000 DNRC Grant in 2005
• Bid project in early 2006
? Bids exceeded budget by
$100,000
Plan to rebid the project in
August 2006 for Oct-Dec
construction
#-
Proi
wAO% ww
and
WWTP capacity, permit
compliance, safety and aging
facility issues
It has been four years since
development of priorities and a
Facility Plan Update was needed
? Update cost estimates
? Review regulatory changes
Population Projection - 2006 Facility Plan Update
Yellowstone
County
City of Laurel
@ 5% of Yellowstone Co
City of Laurel
wl Allowance for
Significant Development
2000(act) 2005 2010 2015 2020 2025
129,352 136,970 145, 068 1529960 161,314 1709188
69255 69849 79253 79648 89066 8,509
"Lower Bounds"
69255 89075 109610 135093 149457 15,002
"Upper Bounds"
• WWTP designed for population of 7000 people
,
WWTP Conditions
Regular summertime permit
violations
Unsafe headworks conditions
Unable to comply with new MDEQ
regulations
Disinfection (certain)
Nutrients (potentiaHj()
Lack of capacity for anticipated
20-year growth
20 year old facility in need of
overhaul
Collection System Conditions
Several Pump Stations
rehabilitation
Main/Elm Street
Village Sub
need
Replacement of "1-month Lines
Annual Rehabilitation Program
Sewer Lines
Project Component Cost
Replace the Main/Elm Street Lift Station $333,000
Rehabilitate the Village Sub Lift Station $87,000
Grit Removal and Headworks Facility
Improvements $300,000
Primary Clarifiers Hydraulic Improvements $301000
Plant Water Systems Improvements $1859000
Expand the Existing RBC System with Geo-Reactor® Units $2,290,000
Sub-Total $3,2257000
Total Construction Cost (Projected to
summer 2008) 1 $35585,000
Engineering 1 Administration (-20%) 2 $715,000
Total Project Cost $4,300,000
Aff
2006 Grants.
Treasure State Endowment
Program - $750,000 due May 5
2007 Grants:
• STAG and WRDA through State's
Congressional Delegation
X0.5-2.0 million possible
'-ISE 1B AND PHA SE 2 SC
a
HEDUL-
Task Description Phase 1B Phase 2
1. Final Facilities Plan Approval April 2004 May 2006
2. Submit TSEP Grant Application May 2004 May 2006
(completed)
3. Submit SRF Loan Application NA At any time
4. Preliminary Notice of Oct. 2004
Grant/Loan Award
(completed) October 2006
5. Completion of Final Plans and Dec. 2005
Specifications
(completed) December 2007
6. Advertise and Receive Bids for August 2006 6 months after
Construction authorization
7. Award Construction Contract September 1 month after
2006 bid opening
8. Begin Construction October 2006 2 months after
bid opening
9. Complete Construction December 2006 1 year after
start
10. One Year Certification December 2007 1 year after
completion
PHASE 2 PROJECT FU NDING
S TRA TEG Y A ND EFFE C T
TSEP and
TSEP Grant STAGIWRDA
only Grant
Total Project Cost $4,300,000 $4,3002000
Total Grants $750,000 $1,7509000
Total Cost to be Financed $3,550,000 $2,550,000
Loan Conditions
Annual Interest Rate 4.0% 4.0%
Term (Years) 20 20
Coverage 125% 125%
Annualized Capital Cost $326,500 $234,500
Annual O&M Increase $445600 $449600
Total Increase - yearly $371,100 $279,100
No. of Customers 2635 2635
Average Cost Per User $11.75/month $8.80/month
City of Laurelm 2006 Wastewater PER
Update and TSEP Grant Application
Questions and Comments?
40
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