HomeMy WebLinkAboutCouncil Workshop Minutes 09.11.2007 MinUTES
COUNCIL WORKSHOP
SEPTEMBER 11, 2007 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 September 11, 2007.
COUNCIL MEMBERS PRESENT:
Emelie Eaton
x Kate Hart
_x_ Gay Easton
Vacant
_x_ Doug Poehls
x Mark Mace
Chuck Dickerson
Norm Stamper
OTHERS PRESENT:
Sm Painter
Steve Klotz
James Caniglia
Rick Musson
Jan Faught
Kurt Markegard
Mayor Olson asked the council and audience to stand and observe a moment of silence in respect for
the events of September 11, 2001.
Public lanut (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.
Josh Middleton, Superintendent of Laurel Public Schools, expressed thanks to the city and the
council. Tho school district has had a lot of changes over the last few years, and specifically this fall
with the new middle school and the grade leveling. Josh had previously asked the council to consider
making Sixth Street a through street and putting stop signs on the north and south of Sixth Street. He
stated that this has worked really well, and he appreciated tho work of the council and the city.
School has started and a lot of the work went into preparing the streets this summer. With the new
middle school, the district is looking at some of the foot and automobile traffic areas, and has had
communication with the city regarding crosswalks and signs. Josh thanked the public works
department, Chief Musson, and the school resource officers for making the first few weeks a very
smooth transition.
Laurel Volunteer Ambulance Service:
· Appointment of DJ Poolet as an Ambulance Attendant
Jan Faught stated that DJ Poolet has served as an ambulance reserve since April and has met the
requirements to become an attendant. Jan introduced DJ to the council and asked for consideration of
the appointment. The appointment will be on the council agenda on September 18, 2007.
Bi~ Sky EDA, Steve Zeier:
· Presentation on Urban Renewal Plan for Tax Increment Finance Districts
Council Worlohop Minutes of September 1 I, 2007
Mayor Olson introduced Steve Zeier, of Big Sky Economic Development Authority. Steve
distributed three handouts of information regarding tax increment finance districts to the council, and
copies are attached to these council workshop minutes. Steve stated that Big Sky EDA has been
investigating the possibility of a tax increment finance district for the City of Laurel.
One of the handouts was a graph which gave a basic visual of how a tax increment finance district
works. A geographic boundary would he delineated within the municipality of Laurel, and a base
taxable value would be established and remain in effect for fifteen years. The increment that is
realized by private development within that district is allocated to another fund. The fund can then be
spent within the district for improvements of public infrastructure, including water, sewer,
westewater, storm water, curb, gutter, and sidewalks. This is local dollars and it does not increase
property tax bills. That is a very comn~n question amongst potential TIF Districts. It is not an
increase, but it is a reallocation of tax dollars. A TIF District could capture local dollars that would
normally go to other taxing entities, such as the State of Montana.
A second handout was a pie chart of property tax mill levies for 2005-2006 for School District No. 7.
Big Sky EDA had a whopping four percent, which were 2.76 mills levied against the entire county.
The dollars go into the EDA budget, which is a public/private partnership between the EDA and EDC.
The Economic Development Corporation is a private arm end Economic Development Authority is
the public urm~ The 2.76 mills funds economic development activities in the county. The City of
Laurel levied 24½ percent in the sample pie chart. With a TIFD, all of the dollars that go to the State,
the City of Laurel, Yellowstone County, and the School District are put into a different fund to be
eligible for activities within that particular district. One of the main advantages is that Laurel will
soon have a large increase in its tax base on the south part of Laurel.
There was discussion regarding a TIF District in the City of Billings, the boundaries for a TIF
District, the length of the term, the exclusion of county property t~om a district, and possible
opposition to a TIF District by other taxing jurisdictions. The idea for a TIFD came from the MEDA
Community Assessment that was held in Laurel about a month and a half ago and from a conversation
between Mayor Olson and the Executive Director of the EDA. However, tax increment finance
districts have been discussed in Laurel for quite some time. Steve talked to the Planning Board last
week and some members were aware and understood the process.
There was further discussion regarding setting taxable values. Any development that occurs within
the proposed district between January 1, 2007 and January 1, 2008 would be considered an increment
because the taxable base is set on January 1~t. The increased tax dollars generated by Wal-Mart could
be captured if a tax increment finance district is in effect by the end of the year.
There was discussion regarding poss~le problems which could be encountered, the fact that taxpayers
would not see any significant change on the tax bills but would see the effect and benefit of
infrastructure improvements.
Mayor Ohon asked for an explanation of a TIFD dollar and what a TIFD dollar can and cannot
purchase.
Steve explained that, according to statute, the city can have the ultimate authority on those dollars or
the council could appoint and create an urban renewal agency, which would be a separate legal entity
but still under the umbrella of the city. He did not think that was wise in this situation, and stated that
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Council Workshop Minutes of September 11, 2007
the best way to control local dollars is by a local council, in his opinion. The city would provide, as a
function of the urban renewal plan, a basic idea and framework of how to spend the dollars. By
statute, TIFD dollars can be spent on anything concrete and tangible in tho ground. Whether or not
personnel are included is still a matter of conjecture.
Mayor Olson stated that the council is in the preliminary phase of education about tax increment
finance districts. He thanked Steve for the presentation.
Police Detmrtment:
· Resolution- Laurel Middle School SRO contract
· Resolution - Laurel High School SRO contract
Chief Musson stated that the two contracts are one-year contracts with the school district for SRO
funding and operation~ The school district will pay 70 percent and the city will pay 30 percent for
both officers. The school district wants to continue with one-year contracts because of funding issues,
particularly for the middle school SRO. When Rick spoke to Josh Middleton tonight, he indicated
that the school district is ready to sign the contracts. The resolutions will be on the September 18th
council agenda.
Public Works Department:
* Resolution - Change order for Small Services Contract with Concrete R Us
Steve Klotz explained the charade order for the contract with Charlie White, Concrete R Us, for the
work across the street. The project includes the approach next to city hall, the approach across the
street, the entrance to the perking lot, and the curb end gutter along the 100 block of West First Street.
The bank participated in the project by replacing the sidewalk. As the project progressed and the final
elevations for the flow and curb line were laid out, it ended up pretty flat for the last five feet of curb
and gutter prior to going into the storm drain on the comer of First Avenue and West First Street. The
change order is to take out a portion of the ramp, install a new ramp, and get the flow to go across in a
steeper manner. Steve did not want to leave anything flat there so water would pool up where the
handicap ramp cut was in the flow line, and that is why the change order is needed. Steve indicated
that he will visit with Sam to see ifa contingency could be included in small contracts up to a certain
amount to allow for change orders. The resolution will be on the September 18a council agenda.
· Resolution- Canyon Creek Crossing Agreement
Steve explained the easement agreement with the Canyon Creek Ditch Company. A letter from the
Canyon Creek Ditch Company was attached to the draft resolution. The crossing has been in place
for a long time. During the recent trunk line project, the city recrossed the line with a different
configuration of pipe that was there previously. The city started visiting with the Ditch Company at
that point regard~g who was there first, the city or the ditch company. Some research was done and
the letter informs the city that the Ditch Company was there first. The resolution and agreement will
be on the September 18~ council agenda.
Clerk/Treasurer:
· Tax resolutions
Mayor Olson stated that the tax resolutions will be on the September 18a~ council agenda.
Executive review:
* Ordinance - Temporary use permit
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Council Workshop Minutes of Soptember 11, 2007
Mayor Oison stated that the main issue is the change in the bonding requirements for t~l~tJorary use
permit. A bond will be allowed rather than cash. The first reading of the ordinance will be on
Septernber 18~.
· Resolution - Revisions to code enforcement job description and hiring additional staff
Mayor Oison stated that the city is going forward with the opportunity to increase the code
enforcement division and has advertised for a code enforcement officer. The drai~ job description will
be attached to the applications so applicants will have an understanding of the job requirements. Four
responses have been received so far. Mayor Olson is still reviewing whether the building department
will be a separate department or remain under the public works department. The resolution will be on
the September 18~ council agenda.
· Discussion - Laurel City Track Route
Mayor Olson stated that the truck route issue has been ongoing for the last several months and a draft
product has been completed. He has asked the staffto submit vendor names and addresses to send the
proposed draf2 to for input. The staffwill review the responses to detemfine what would be best for
the City of LaureL The final dratt will be presented to the council in the future.
· Ward 4 council seat vacancy
Mayor Olson stated that two letters of interest were received for the Ward 4 council vacancy. The
letters are from Lisa Scribner and Alex Wilkins. As has been the practice of prior appointments for
elections to the council by council members, both candidates will have an opportunity to introduce
themselves and make a statement at the next council meeting. The council will vote by paper ballot,
the mayor will read the results with the name of the person selected and the council person who made
that selection. It will be a recorded vote for the proceedings.
· Council issues:
o Report on patcher machine (Council Member Mace)
Kurt Markegsrd stated that the city crew is patching again after a brief hiatus to complete the school
routes. The city ordered $6,300 worth of product, which should be enough to get through the rest of
the winter. The crew has been dealing with complaints and issues of large potholes by filling them at
the beginning and end of the day. At the present time, Village Subdivision, parts of the south side,
and moat of the east side have been completed, and the crew is working on the avenues on the west
side.
o Report on traffic light at SE 46 and S. 1't Avenue (Council Member Dickerson)
Steve recently visited with Wal-Mart and the contractor that is installing the traffic lights. The traffic
lights have been installed with black bags over them. September 24~ is the target date for the traffic
lights to be operational, pending that everything goes right with the contractor. Although they are
under no timeframe within this month to have it done, Wal-Mart wants to get the store opened and
that is one of the off'site improvements that must be completed. Later this month when the water flow
will be small enough in the Italian Drain, they will do the additional work needed on the southeast
comer. The State will do the adjustment on the traffic signals in order to time it with the signal off
the interstate ramp.
o Request for street closure and use of city buildings for filming crew
Mayor Oison stated that Intrepid Films submitted a letter of request, which was distributed to the
council. Originally, they requested the area around the Cosner CPA building and the parking lot
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Council Workshop Minutes of September 11, 2007
across the street. Since then, they have also requested use of the mayor's office and the area south of
the mayor's office, as well as an area in the FAP building. The filming should be done during the
week of September 24a'. Further information will be given to the council when it is available.
Other items:
· Change in form of government
Mayor Olson has been unable to contact Ken Weaver or Judy Mathre regarding scheduling a public
meeting, but he will continue to try to contact them. The certificates have been published in a
pamphlet form and will be mailed to the voters in the City of Laurel. Additional copies will be
distributed in different areas of town. Mayor Olson stressed the importance of face to face contact
with people and public forums for education oftbe issue. The ballots will be mailed to the electorate
on October 12th.
Mark Mace stated that the Budget/Financo Committee would like the council to consider a resolution
for the agreement with TischlerBise relating to the impact fee feasibility study. Mayor Olson stated
that the resolution would be on the September 18th council agenda.
Review of draft council agenda for September 18, 2007:
· Ordinance No. O07-09: Ordinance emending a section of the "Laurel Subdivision Ordinance"
located at Chapter 16 of the Laurel Municipal Code. Second reading.
Mayor Olson stated that the ordinance for the time limit for subdivision plats will be on the
September 18th council agenda.
The opportunity for the applicants for the Ward 4 council vacancy to address the council will be on
the September 18th council agenda under Scheduled Matters. Both candidates will be informed of
this.
Attendance at the September 18th council meeting:
Doug PoeMs will not attend the meeting.
Announcements:
There were none,
The council workshop adjourned at 7:45 p.rr~
Respectfully submitted,
Deputy Clerk
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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Tax Increment Financing
Proposed Laurel TIF District
What is Tax Tncrement Financing?
· Authorized under the Montana Urban Renewal Law, specifically
MCA 7-15-4282
· Allows a community to direct the increment in property taxes
within a designated blighted geographic area to public
improvements
· A base year is established from which incremental increases in
property values are calculated
Steps to creating a TTF District as part of an Urban Renewal
Plan in a municipality.
1. Establish the boundaries of the proposed district. Determine where
the need for public improvement exists and show blight.
2. Begin development of the Urban Renewal Plan. Plan must contain
the provision for Tax Tncrement Financing as well as llF Bonding.
3. Urban Renewal Plan must be approved by the Planning Board and
comply with the Growth Policy
4. Urban Renewal Plan must be approved by the City Council and
Council must pass a resolution of blight and Resolution of Intent to
Create a 'IIF District. Public Hearing must be set.
5. Notify all property owners within the proposed district of public
hearing not less than 10 days prior to hearing.
6. Conduct first reading of ordinance creating T~F, 14 days after the
submission of the Urban Renewal Plan.
7. Conduct Second reading of ordinance establishing TTF
8. District becomes effective 30 days after second reading.
Eligible Activities
MCJ~. 7-15-7288:
(:L) Land acquisition;
(2) Demolition and removal of structures;
(3) Relocation of occupants;
(4) the acquisition, construction, and improvement of infrastructure,
industrial infrastructure, or aerospace transportation and technology
infrastructure that includes streets, roads, curbs, gutters, sidewalks,
pedestrian malls, alleys, parking lots and offstreet parking facilities,
sewers, sewer lines, sewage treatment facilities, storm sewers,
waterlines, waterways, water treatment
facilities, natural gas lines, electrical lines, telecommunications lines,
rail lines, rail spurs, bridges, spaceports for reusable launch vehicles
with associated runways and launch, recovery, fuel manufacturing,
and cargo holding facilities, publicly owned buildings, and any public
improvements authorized by parts 41 through 45 of chapter 12, parts
42 and 43 of chapter 13,
and part 47 of chapter 14 and items of personal property to be used in
connection with improvements for which the foregoing costs may be
incurred;
(5) Costs incurred in connection with the redevelopment activities
allowed under 7-15-4233;
(6) Acquisition of infrastructure-deficient areas or portions of areas;
(7) Administrative costs associated with the management of the
industrial district or the aerospace transportation and technology
district;
(8) Assemblage of land for development or redevelopment by private
enterprise or public agencies, including sale, initial leasing, or
retention by the municipality itself at its fair value;
(9) The compilation and analysis of pertinent information required to
adequately determine the infrastructure needs of secondary, value-
adding industries in the industrial district or the needs of an aerospace
transportation and technology infrastructure development project in
the aerospace transportation and technology district;
(10) The connection of the industrial district or the aerospace
transportation and technology district to existing infrastructure outside
the industrial district or the aerospace transportation and technology
district;
(ll) The provision of direct assistance, through industrial
infrastructure development projects or aerospace transportation and
technology infrastructure development projects, to secondary, value-
adding industries to assist in meeting their infrastructure and land
needs within the industrial district or the aerospace transportation and
technology district; and
(12) The acquisition, construction, or improvement of facilities or
equipment for reducing, preventing, abating, or eliminating pollution.
®nwa ®lqexe.I.