HomeMy WebLinkAboutCouncil Workshop Minutes 09.26.2006 MINUTES
COUNCIL WORKSHOP
SEPTEMBER 26, 2006 6:30 P.M.
COUNCIL CHAMBERS
A Council Workshop was held in the Council Chambers and called to order by Council President Gay
Easton at 6:30 p. nx on September 26, 2006.
COUNCIL MEMBERS PRESENT:
~x Dick Fritzler
~ Kate HaR
__Kx Gay Easton
~ Jennifer Johnson
~ Doug Poehls
__K_x Mark Mace
_~x Chuck Dickerson
__ Norm Stamper
Mary Embleton
Sam Painter
Perry Asher
Mark Richards
PubUc Input (three-minute llmlt~:
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
Johnson Controls presentation
* Jared Schoeh distributed information to the council and a copy is attached to these minutes.
· The formal contract will be given to Perry by the end of the week.
· Jared explained the status of the work performed to date.
o Meters
· May get more than 5 to 7 percent from initial change out.
o Facilities
· Energy and comfort
o Utilities - two-thirds of project self funds
· Automation frees up worker time.
· Proposed $650,000 down payment (Perry-just water fund)
o Facilities
· Proposed $50,000 down payment
· Includes city hall boiler
· Three-fourths of project self funds
o Combined Utilities and Facilities
· 65 percent self funds - $700,000 down
o Implementation- six-month installation
· Communication with citizens is key.
· Mitigate disruption- schedule appointments
· Johnson Comrols respous~ility and city responsibility
· Questions and Answers
o Mark Mace asked if any other cities our size use this system.
Council Workshop Minutes of September 26, 2006
o Chuck asked regarding the billing system support item.
· Black Mountain Sof~ware is compatible and can be integrated into the system.
· An IT person will be on site as needed during the integration process.
· Project is showcase for Montana.
· Johnson Controls will attend the council workshop on October 10th.
Planning, Board:
· Brookwood Subdivision recommendations
o Mark Richards - concerns done in terms and conditions
o Cal is gone and will present full detail later (October 10t~ council workshop).
o Major concern is safety at Seitz Ronan and Hwy 10 intersection.
· Sight radius and lack of turn lane to subdivision for left-hand turn and speed
limit.
· Notified Yellowstone County of our concerns.
o Water - groundwater recharge
· Separate irrigation system for outside lawn watering - not from wells
o Bike paths and pedestrians - connect to subdivision to the west
o Old beet house - refer to Yellowstone County Historic Society before demolition
· Jenny was contacted by Dave Green, of the Billings Planning Department, who
also serves on the Yellowstone Historic Preservation Board.
· They are going to demolish an historic building near Laurel, and it could be this
house.
· The Historic Preservation Board's new policy is that they might not interfere with
the demolition, but they request that the building is photographed and data
preserved prior to demolition.
o Since the developer is the same for Pheasant Brook and Brookwood Subdivision, Chuck
questioned why the same traffic requirements were not imposed on Pheasant Brook.
· Deal with cumulative effect by addition of more traffic, pcople, and settlement.
· Mark does not know why- perhaps law changes
· Not expose city in safety issues.
Clerk/Treasurer:
· Resolution: Modifying Section 8.2 of the Rules and Regulations Governing Utility Services
o An ordinance, not a resolution, is needed to provide the council the authority to adopt
future technical amendroents to the Rules and Regulations Governing Utility Services
and Streets for the City of Laurel, Montana.
o Any rates, charges, and fees for the city's utility service will be adopted by the council
by resolution.
o The first reading oftha ordinance will be on the council agenda on October 3, 2006.
Administrative Assistant:
· Resolution - Main Street Waterline Project: Addition of decontamination work to city contract
with Gray Construction that will be reimbursed by MDT
o Perry stated that this is not going to happen.
o Tanks were found on Main Street by Big Sky Wooderatters.
o MDT and DEQ wanted it all cleaned up, but they are not interested in doing anything
unless they can get somebody else to pay for it.
o The plan is to install ductile iron through the contaminated soil and PVC through the
remainder of the soil.
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Council Workshop Minutes of September 26, 2006
o Doug asked what DEQ would require in the future.
· Unknown and no guarantee
· Brownfield funding through Beartooth RC&D
* Based on ownership
· Road is concrete - leached under it
o Dick stated that Video L~rary had same issue.
o Mark stated that Beertooth Veterinary removed contamination and paid for it.
· DEQ usually requires property owner to fix.
o Sam suggested that perhaps DEQ is allowing city's project to go forward and the
problem may be fixed in the future.
o Tanks were removed and bole was filled with gravel.
o The state may not know the extent of the contamination.
o Jenny statedthat "out of sight, out of mind" is scary.
o Perry can get more information.
o The project needs to go forward.
o Mark Richards suggested providing notice.
o Sam stated that the DEQ has the information on record.
Executive review:
· Discussion of council's role in land use planning
o The discussion was tabled.
· Resolution- Johnson Controls contract
o The contract with Johnson Controls will be presented at thc October 10~h council
workshop.
· Resolution- Purchase of cemetery land
o The resolution approving a buy/sell agreement for the purchase of property for
development of a Veterans' Cemetery will be on the council agenda on October 3, 2006.
· Resolution - SID No. 111
o The resolution was not ready for the council workshop but will be on the October 3ra
council agenda.
· Resolution - Quit Claim Deed for Mathis Subdivision Third Filing Park
o The resolution will be on the council agenda on October 3, 2006.
Review of draft council agenda for October 3, 2006 · The contract with Johnson Controls will be on the council agenda on October 17, 2006.
· An ordinance is needed for the cbanges in the Rules and Regulations Governing Utility Services.
· The resolution for the Main Street Waterline Project was removed l~om the council agenda.
Announcements: · Jennifer will not attend the council meeting on October 3rd and the council workshop on October
l0~.
· Doug attended the railroad quiet zone meeting in Billings last Wednesday morning and received
additional information.
· Mary mentioned that the League of Cities and Towns is next week in West Yellowstone.
· Mayor Olson asked her to distribute packets of information on the proposed resolutions from the
League of Cities and Towns.
· Perry stated that the projects are moving forward as quickly as possible.
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Council Workshop Minutes of Sept~mbe~ 26, 2006
· Gay stated that the Homecoming Parade on Friday will start at the miler rink and go down Main
Street to First Avenue, tums left and goes to the high school.
· Because of the project, the parade should go down West First Street. Perry will contact the high
school regarding this.
Attendance at the October 3r~ council meeting:
· Jennifer will not attend.
Other items:
· Resolution - amending Resolution No. R05-94 relating to the city's $866,000 Sewer System
Revenue Bond (DNRC Revolving Loan Program), Series 2005, increasing the principal amount
of the bond by $519,000 so th. at the aggregate principal amount of the authorized amended and
restated Series 2005 Bond is $1,385,000.
o Mary stated that this item was received too late to be listed on the agenda.
o The resolution is related to the trunk line replacement project.
o The State DNRC has been working with MaeNan Ellingson at Dorsey & Whitney to
amend the city's existing $866,000 bond resolution for the sewer trunk line and East
First Street projects.
o Since the trunk line bids came in higher, it was determined that the city needed to borrow
an additional $519,000.
o Our rates and charges are already in place to be able to handle the increased debt.
o Dorsey & Whitney prepared an amendment to the existing bond resolution, which is
more cost effective and efficient than doing another bond resolution for the extra
$519,000.
o The financing will be in place before the project begins.
o Mary recommended approval of this resolution at the council meeting on October 3~.
· Mark Maco asked Perry regarding the status oftha Asphalt Supply Company.
o Perry explained that it has gone into escrow and the bank is trying to locate the owner. If
the city went in and mitigated the problem, there is no placo to send the bill at this point.
o There was further discussion regarding the railroad's respous~ility as the ultimate
landowner.
o Perry will talk to Gary about the issue.
The council workshop adjourned at 7:47 p.m
Respectfully submitted,
Clerk/Treasurer
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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,JI HNSON
CONTROLS
Ob!ective
· Provide Mayor and Council enough time and information
to make an informed decision on moving forward with
this project
Aaenda
· Review project structure and process
· Project scope, benefits and economics
· Contract obligations
· Next steps
Jt~HNSOix
CONTROLS
Infrastructure
· Facilities
· Utilities
· Public Works
· Parks & Recreation
· S~eets & Traffic
· Real Estate
State of Montana Performance Contracting statute Title 90, Chapter 4, Part 11
allows customers bo:
1. Select a firm to study design and implement mprovements and associated
operational say ngs across the infrastructure
2. Utilize operational savings streams to pay for capital improvements up front
3. Use a mutually agreed upon guaranteed performance management
program to ensure savings are real and are available to pay for financing
over time
Real Savinqs
Energy
Water conservaUon
· Water revenue
· Alternative energy
· Operations &
Maintenance
........ ILHsNsON
Where we are today
· Water meter replacement and automation
- Tested 70+ water meters
- ?7%. in.accuracy in existing meters based on AWWA
stanoaros ano measurement
- $60 - 78K in annual savings opportunity (with upside)
- Automation technology competitively selected
· NW Pipe & Neptune water meter systems
- 3-6 month installaUon
· Community communication program
· System-wide replacement
· Meter and billing system support
· Analyzed all facility efficiency opportunities
- More than 75 total opportunities evaluated
- Ce-selected scope of projects to implement
- 18.6% energy cost reduction opportunity
- Focused on updating systems and saving budget dollars :
dl~lHN~Dh
CONTFL~L$
· Water Meter Replacement & Automation - Replace all residential and commercial water meters 3 inches or less
- Add automated meter reading technology to all meters
· Benefits - At lea~ 5% increased accuracy of meter reads and related water revenue
- Automate water meter reading system
- Allow meter reading and hilling teams to focus on other tasks for City
- Better monitor and report on water distribution system use
- Provide citizens proactive information on leakage, bade'low and usage
- 62% financed project paid for by savings
· Economics - $1.381vl project cost
- $650K down payment
- $10K annual contribution
- $60K guaranteed savings
- ].2 year financing term at 4.2% interest rate
· Facilities reviewed - City Hall and Council Chambers
- Fire Ambulance Police (FAP)
- Maintenance Shops
- Library
- Wastewater Treatment Plant
· Facilities improvements
- Lighting upgrades
- Thermostat upgrades
- Increased HVAC and lighting system control and automation
- insulation upgrades in FAP
- City Hall boiler replacement
J~tHNSC)t~
CONTROLS
· Benefits - Decrease facility energy costs by up to 18.6%
- Upgrade systems with new technology
- Replace some outdated equipment
- Increase occupant comfort
- 75% financed project paid for by savings
· Economics - $220K project cost*
- $IK electric utility rebate
- $50K down payment
- No annual contribution
- $11K guaranteed energy and maintenance savings
- 12 year financing term at 4.2% interest rate
J~HNSOI,
CONTROLS
· Economics - $1.6H project cost (guaranteed maximum price)
- $:LK electric utility rebate
- $700K down payment
- $70K+ guaranteed savings
- ~.2 year finandng term at 4.2% interest rate
· Benefits - "Finding a Way of Doing More with Less" - ~5% financed project paid for by savings
- At least S% increased accuracy of meter reads and related water revenue
- Allow meter reading and billing teams to focus on other tasks for City
- Up to ~.8% reduction in energy costs
- Upgrade systems with new technology
- Replace outdated equipment
- Be~er monitor and report on water distribution system use
- Provide citizens proactive information on water leakage, backflow and usage
- More comfortable City facilities for citizens and employees
· 6 month installation
- 3 - 6 month water meter project installation
- 2 - 3 month facility improvement installation
· Installation team structure
- .ICI prime contractor and project manager
- Water meter installer foremen and crews
- Billing support team (both JCl and installer) to ensure smooth
billing system transition
- HVAC, electrical and related facility installers
- .1CI performance management and service team to support
throughout installation and ongoing
· Keys to success
- Communication, coordination and adaptability
- Proven installation process
- Professional installers
- High quality systems and technology
-JCI Guarantees the Outcome
· _ICI guarantees - Water meter accuracy and any related revenue
pick-up from this accuracy
- Energy savings
·.lCI does not guarantee - Water revenue
- Weather conditions
- Consumer behavior
Jt~HNSOh
CONTROLS
· City & .1CI agree to use following savings categories
- Avoided cost and maintenance repair savings
- Energy savings
- Water meter accuracy and associated revenue savings
· City & 3C! agree to measure and assure project
performance
- Utilizing [PMVP Option A for 3 years · One time pre and post measurements
· Annual bill and rate check to update report
· Host cost effective method for this project
- Providing water meter billing system support and training for
the first year after the project ~s complete
· City responsible for
- Tracking and managing its budgets to ensure savings are
~Etu .m.d and used to pay back necessary annual funding
Obligations
Jt~HNSO~
CONTROLS
1, Decision to move forward
Finalize and approve contracts
· Performance contract
· Financing contract
3. Implementation · Finalize installation plan details and schedule
· Order equipment
· Create customized citizen communication plan
· Installation
4. Performance management
See You at Montana League of Cities and Towns
Ji~HNSON
CONTROLS I