HomeMy WebLinkAboutCouncil Workshop Minutes 02.13.2018 MINUTES
COUNCIL WORKSHOP
FEBRUARY 13, 2018 6:30 P.M.
COUNCIL CHAMBERS
A Council Workshop was held in the Council Chambers and called to order by Mayor Tom Nelson at
6:30 p.m. on February 13, 2018.
COUNCIL MEMBERS PRESENT:
_x Emelie Eaton _x Heidi Sparks
_Bruce McGee x Richard Herr
_x Scot Stokes x Irv Wilke
_x Richard Klose x Bill Mountsier
OTI3ERS PRESENT:
Kurt Markegard, Public Works Director
Travis Jones, KLJ Engineering
Public Input
There were none.
General Items
There were none.
Executive Review
• Resolution—Outfall Easement Amendment
Kurt Markegard, Public Works Director, explained that the previous City Council in Fall of 2017 had
passed a Resolution allowing CHS to place a Wastewater Treatment outfall into the Yellowstone
River. It is located on the other side of the BBWA headgates. The easement failed to have a legal
description attached. When CHS tried to record the easement at the County Courthouse, there was no
legal description. This amendment adds the legal description so CHS can file the easement with the
County.
Mayor Nelson stated that this document has already been signed but still needs to go to Council.
• Resolution—Task Order—Laurel On-Call Professional Services
Kurt Markegard, Public Works Director, explained tha.t this Task Order is not designated to a specific
project, but rather is in place in case the need arises for a small project or event in the case of an
emergent project. This does include any questions that Staff or the Mayor would have in regards to
Engineering Services. It also includes reviewing documents. The City has a Master Service
Agreement with KLJ but not an On-Call Task Order. This Task Order is anticipated to be up to
$3,000 per year, but would only be billed hourly.
Bill questioned if the$3,000 was per year or per month, as the Task Order stated per month.
Kurt stated no it is per year [clarified to per month].
Council Warkshop Minutes of February 13,201$
Mayor Nelsan stated that the City would not be billed anything, this is only an estimate. The estimate
is estimated to be high as to be able to rneet the City's needs.
Travis Jones, KLJ Engineering, clazified that KLJ would anly be working on items that the City
requests in writing.
Mayor Nelson stated that KLJ has worked with many municipalities and has a gaod grasp on what the
needs ofthe City might be and do not anticipate needing to sper�d all ofthose funds. The City has had
an On-Call Task Order in the past;this is not new.
Travis further clarified that this is for projects such as an emergency or a project that does not warrant
an individual Task Order. The City would authorize someane such as the Mayor or Public Warks
Director to place these requests. An example of how this Task Order would be used is the review of a
subdiyision. The City would state the request, the time allatted to complete the request, and KLJ
would proceed within those parameters. Typically the authorized person is the Public Works Director,
who can direct the engineers up to a certain dallar arnount per rnonth, but it needs to be clear and in
writing. Typically each task does not need to go before the Cauncil. This is done so that in the case of
an emergency there is no delay on the Engineers working on the praject.
Mayor Nelson stated that the City has not had to utilize this service very often. �
�
Kurt further explained that all invoices would corne with a statement for that month listing exactly �
what work was completed. These invoices would still need to go to BudgetlFinance far approval.
There would still be oversight by Council on this Task Order.
Bill questioned what the abbreviation TBD stands for.
Travis stated that TBD stands for To Be Determined. This is if the City needs any additional services
nat covered within the Task Order.
Travis also clarified that if KLJ is needed to camplete Planning services while the City is filling the
current Planners position the City will need a resolution stating KL3 is the interim City Planner. This
is beeause the Ci#y Planner is an appointed position and therefore would need to be appointed as such.
There are iterns that the Planner is an authority on and has the ability to sign dacumen#s.
• Resolution—Task 4rder—H2S Remediatian Improvements
Mayor Nelson stated that since there are quite a few new nnembers on the Council, he asked that Kurt
give a brief review of the issue.
Kurt stated that in 2409 the City was able ta obtain funds from #he American Recovery and
Reinvestment Ac#. The City split aut the new Waste Water Treatment Plant ta build a new facility and
rehab the City's lift stations. Twa af the lift stations were the Village Lift station, located east of
Laurel, and Elm, Iocated an Etm Street. Bath are located off af the highway. The Village L'zft station
serviees approximately 300 homes and sends waste through a one-mile long pipe. This is a
pressurized pipe and feeds into a gravity fed manhole at Locust far approximately 1204 feet then into
the Elm Lift Station. The Elm Lift Station is then sending waste under the raikoad tracks then gravity
feeds to the Waste Water Treatment Plant.
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Council Workshop Minutes of February 13,2018
When the Yellowstone River water temperatures are higher the City's water supply has a higher
temperature. Once this water reached the sewer system, the higher temperature interacts with the
bacteria in the wastewater. When it is pumped through the one-mile long pipe, Village Lift Station to
the manhole on Locust, it is creating H2S as a byproduct. This creates a smell on Main Street since
that project was complete. The smell has been an issue since the lift station went online over 20 years
ago. The humidity within the manholes creates sulfuric acid, which causes significant damage to the
infrastructure. This is one suspected reason the Elm Lift Station needed to be replaced, as the metal
was corroded away. The Elm Lift Station has been in service approximately 40 years before it was
replaced but had gone through many pumps due to the corrosive conditions. Wastewater is natural
corrosive.
The City has tried to treat this issue with enzymes, by hanging enzymes in the first manhole, but this '
did not work. They also tried adjusting the float levels within the Elm Lift Station so there would not !
be a waterfall of waste, but rather a constant flow, with the hope that HzS would stay suspended '
within the liquid. However, when the pump would turn on a vortex at the bottom would allow the HzS
to release. '
This Task Order with KLJ is to have them look for possible solutions that will work best for the City.
Staff has identified adding air to the Village Lift Station to prevent the creation of H2S. There are
multiple ways to deal with this issue; the City can treat the smell or use a fog system. However,
treating the smell will not treat the cause, he would like KLJ to focus on treating the cause. Some of
the bacteria within the waste is needed when it gets to the Waste Water Treatment Plant, so the City
must be careful in the remedy they choose to use. By using ehemicals, it kills the bacteria and
prohibits the breakdown of wastewater once it reaches the plant.
The City is very limited on space on Main Street to correct this problem. It would be difficult to put a
treatment system in the middle of the road. There are funds in the budget for improvements on the
Waste Water system. The smell is strongest for about a four to six week period of time when the river
temperature is at its highest.
Irv questioned if this was a chemistry issue.
Kurt stated that every sewer system would have issues with H2S. It is prevalent in long captured lines.
There is no other place for the gas to go within that mile. The same goes if there is a water trap in
your house, to keep the sewer gases out you need to keep the trap wet.
Kurt explained when the City brought the new treatment process online it took the City approximately
six months to build up the proper bacteria levels. They had to truck in the septic matter to be able to
establish the bacteria colony.
Richard Herr questioned when the expected start date would be.
Kurt stated that they would like the project completed by June 30, 2018, which corresponds with the
end of the fiscal year. He stated that he has been busy these past few weeks bring KLJ up to speed on
what the City has been working on the past seven years. KLJ is waiting for these Task Orders to be
signed to investigate further.
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Council Workshop Minutes of FebruarY 13,2018
Richard Herr questioned what approvals the City needs from DEQ and wha.t timeframe wi11 the City
be looking at ta receive approval.
Travis stated that he has tallced to the DEQ regarding this project and the approvals it wauld need to
go thraugh. This instance will nat be a traditional DEQ review as they will not be comparing to their
design regulations. H2S remediation is nat a cornmon practice but is bect>rning a mare cornmon issue.
The DEQ does nat have a set of regulations in which the designs need to meet. Typically when a
project is submitted, they aze checking off specific line items such as pipe diameter, bends, manhole
spacing. They do not have thase requirements to review against. Instead, they will review for health
and safety issues and is this reasonable. The City will not need to prepare a DEQ specific report,
instead what is provided to the City on the project is what they will review, they may provide
comrnents, but do not have a reason to reject the praject. KLJ expects the turnaround time to be less
than 30 days.
Richard Herr questioned.when Council cauld anticipate seeing construct costs for this project. He alsa
questioned ifCauncil will need to approve possible bids.
Kurt stated that yes, the Council appraves anything over $5,000 must go through CaunciL It is highly
suspected that the cost will exceed the $S,p00 small service contract limit and therefore ga through
Council. KLJ will review and make the best recornmendation to solve the problern, even though Staff
has identified the use of air to solve the problern. Have reviewed the use of a fogging system or the
use of carbon drums to remove the HzS from the air. The carban drurns would need to be replaced
every 30 days and are incredibly costly.
Travis clarified that this Task Order was written with the assumption that an air system will be the
best solution to this issue. This Task Order was built to work for the entire life af this project, after the
initial study if another direction is recornmended an arnendrnent will come to the CounciL
Kurt stated that he is under the impression that Council Mernbers want inforrnation sooner. So this ,
has been discusseci at both the Public Works Cammittee and Budget/Finance Cornmittee.
Mayor Nelson remind� Cauncil to review those committee minutes to keep informed on projects that
are coming down the pipeline.
Richard Klase questioned if other municipalities in our area have issues with HzS.
Kurt stated that he is unsure if other municipalities in our area are having the same issues. This
problem is prevalent in warrner climates, such as Las Vegas. Sewer systems are designed according to
the landscapes, in a flat landscape, the use af lift stations are prominent. Pressurized mains typically
have this problem as there is na place for the gas to escape whiie in the pipe.
« Resolution—Task{h-der—Wastewater Treatrnent Plant Screw Press
Kurt stated that this resolution is to deal with sludge at the Waste Water Treatment Plant. The DEQ
requireci the City to produce cleaner water to return to the river. The City spent millions to build a
Bialogical Nutrient Remaval Plant. This cleaned up the water gaing inta the river significantly. The
�ity is using a Biolagical Nutrient Rernoval Plant, the plant is regenerating sludge ta create
nitrification. The City braught in septic hauling stations ta build up the bacteria in the Biological
Nutrient Remaval Plant. The City naw has an abundance of sludge. The drying beds are currently aut
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Council Workshop Minutes of February 13,2018
of the room. The solids are pumped to the drying beds after exiting the digester, once dry those solids
are hauled to the landfill. During inclement weather, there is no drying of those solids in the drying
beds. Rain and snow can extend the drying process by 30 to 45 days. They do try to stir to aid in
drying, and there are some drains that a plugged that help aid in the water removal. The digesters will
need to be brought offline in the near future for maintenance. Without a way to dewater the plant is
running out of room to process waste. The City has a choice to build more drying beds or to invest in
a screw press. A screw press is very similar to a juicer, wet solids come in, and water and dry matter
come out. The sludge needs to be certain consistency to haul to the landfill. This need was identified
last year and budgeted $750,000 for the screw press. There are two options to fit in the existing
building. This equipment needs to be in a heated building as dewatering in freezing temperatures
would cause the same issues as the drying beds. The City has asked KLJ to review the potential
placement in the sludge thickening building. There are some unknowns within this Task Order.
Initially the screw press will be handling the abundance of sludge, however, after the abundance is �
taken care of the sludge consistency may change causing adjustments in the polymer.
Once the screw press is online staff would like to hire a cleaning company to come in and clean the
digesters. There are some known issues that need to be addressed, such as a leaking boiler. The last
time they were taken offline was when an access port was added to the side of the digesters. This
allows staff to access the digesters from the side and not the top. KLJ has been given the prints of the
digesters. The City will also need to replace some pumps that feed to the screw press.
Mayor Nelson stated that he took a tour about five years ago and identified issues that need to be
taken care of and they are finally to the point to bring it to Council. Once it warms up, they will
schedule a time for Council to tour the facilities.
Kurt stated that KLJ has a list of maintenance issues that need to be taken care of. They will work on
putting together a schedule of what needs to be done and on a budget the City can afford. These will
be coming down the pipe. One such project is the Archimedes screws will need to be rehabbed, it is
the most efficient way to move water up so that gravity can feed the rest of the system.
Mayor Nelson reminded Council that as the population of the City grows the plants will need to grow
with them.
Richard Herr stated that the new Waste Treatment Plant had been online for about three years.
Kurt stated correctly.
Mayor Nelson stated that the project that was completed was only in regazds to the discharge into the
river. It was not a complete overhaul of the plant.
Kurt reminded Council that this City has aging infrastructure. This August is the 110 year anniversary
of the City. This City hit a huge boom after World War II. The materials are reaching the end of their
life cycle. At the time the sewer system was built with clay and brick, now there is concrete and PVC.
These products can last a lot longer. There are still wooden waterlines converted to a storm drain that
runs up lst Avenue. This will need to be replaced at some point, and the Council needs to be aware of
those upcoming expenses.
• CouncilIssues
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Council Workshop Minutes of February 13,2018
o Update on 2011 Yellowstone River flooding event
Kurt stated that DES was onsite to go over paperwork on the intake project to move towards close out
of the project. Council did approve a Task Order last week to move forward on the closeout process.
Mayor Nelson stated that the City would not be able to close out as soon as they were expecting. The
City was given a list of paperwork that will be needed in the event of an audit so the City can work on
compiling those documents. There are new requirements for emergencies from FEMA. The City is
working on putting those in place so that the City is prepared if another event were to occur.
Kurt attended the meeting for the Natural Resource Damage Program discussing the allocation of$2.3
million dollars for recreational activities. They currently have over $4 million in project requests that
met the criteria to receive funding. The City had very good representation at the meeting, 5 people
total in attendance. The Lion's group wants to do a paved trail system around South Pond along with
a fishing pier. The Riverside Park Master Plan was considered a shovel-ready project. The
recommendation is that Laurel receives $400,000 for camping at Riverside Park. They asked why the
bathrooms were separate from the camping request. Kurt explained that the boat ramp is used the
most in the park and that if funding for the campground was declined, they did not want the funding
for the bathroom to be declined as well. This is the recommendation from staff, remember that staff
recommended over$4 million in projects with only$2.3 million to allocate. The staff asked the seven
members of the Board to rank their priorities to discuss those rankings on Thursday then to compile a
final recommendation to the Governor.
Richard Klose clarified that while ranking the requests, they can add or subtract from the amount
requested.
Kurt further explained that some projects had some unknowns and therefore may not receive funding.
Mostly over concerns of land accusitions. Laurel was given credit for having a Park Master Plan done
and was considered shovel ready. There was a question if the City could have a match to some or all
of the funds. There are funds set aside for Riverside Park currently. There was a question on how
these funds would be paid out. The project to get water across the bridge and to get electricity at the
campsites did not meet funding requirements for these monies. These will be paid out as a
reimbursement grant. Ultimately how those funds are paid out will be done prior to signing that
contract.
o Gas T�—Amount
Mayor Nelson stated that the Clerk/Treasurer provided information on the new Gas Tax. House Bill
473 has changed how the new Gas Tax will be administered. The new Gas Tax will operate more like
a grant. The City will need to apply for those funds for a specific project. In the event the City does
not use all the funds for the specified project then the City will need to either find another project and
notify the State within 90 days or return the money.
Irv questioned if all Gas Tax will be going through this program or just the new Gas Tax.
Kurt stated that this only applies to the increase in the Gas Tax.
Mayor Nelson stated that these funds would need to be used for street pmjects. There is some
question if these funds can be used for sidewalks. The Clerk/Treasurer will be attending a training in
the next few weeks on this topic.
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Council Warkshop Minutes of Fetsruary l3,201$
All handauts from the ClerklTreasurer are attached to these minutes.
o Merna—Board/Cnmrnittee Minutes
Mayor Nelson explained the memo that will be given to each BoardlCommittee; memo is attached to
these minutes. This process is to improve the cornmunication between the Boards/Con;unittees and
Council. He asked that minutes be sent to the Administrative Assistant within two weeks af the
meeting, so the minutes will be placed on the following Consent Agenda. The Board or Committee
will still approve their minutes at the next scheduled meeting, izz the event, there is an edit those
minutes will go back to the Cansent Agenda labeled as revised minutes of.
These BaardslComrnittees are discussing and recarnmending items to move forward to Couizcil.
There have been many instances where Council has seen the resolution priar to reading the discussion
regarding the resolutian.
o Access to Email
Mayor Nelson asked how Council is accessing their emails. He was under the irnpression that Council
was logging into their email via the website. All Council Members are logging in this way.
Richard Herr stated he is getting quite a few emails from outside the City.
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Mayor Nelsan stated that they should receive an email that is addressed ta their respective addresses.
Mayor Nelson stated that the City is alsa working on cleaning up the spam mail in the inbaxes. The
City is also working an getting the Council emails on a client that will allow the Council Members ta
use an app to access their ernails.
Other Items
Mayor Nelsan stated that they is a letter of interest the City received fram Ken Gamer for the City-
County Planning Board. This will be on next week's City Council agenda.
Mayor Nelson asked Council how they would like their Council Packets for Workshops. Choice one
is a hard packet placed in their box on Friday. Choice two is both the hard copy and an email with
dacuments on Friday, with Council Members bringing their packets back to the Tuesday night
meeting. Choice three is to receive the emailed documents on Friday and the hard capy on Tuesday at
the VVorkshop.
Council discussed and decided that their preference was to receive both the emailed docunnents and
hard copy on Friday night, available after 5 p.m.
Mayor Nelson reminded Council that they will anly receive ane hard copy of the Cauncil Packet and
that if they bring the documents hame aver the weekend ta review they will need to bring those
packets with them ta the meeting. He also rerninded Council that this is a new process and to be
patient aver the next few weeks as they iran aut all the details.
Council thanked the Mayar for warking on getting infarmatian ta them saaner so they can be
prepared for Workshop.
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Council Workshop Minutes of February 13,2018
Mayor Nelson stated that at the last Council meeting Bruce made a revision to the Council minutes of
January 16, 2018. However, the edit was actually to the Workshop minutes of January 30, 2018.
Council has the revised minutes in the boxes and will see this correction on the following Consent
Agenda.
Review of Draft Council Agenda for February 20 2018
Emelie stated that the Public Works Committee is listed in red for February 19�h she asked Kurt to
state if the meeting was canceled or moved to the following Monday.
Kurt stated that there are a few items that need to be addressed so they will be meeting on the
following Monday, February 26�'.
The City has not heard if LURA has been canceled for the month of February or if they have moved
their meeting.
Attendance at the February 20, 2018, Council Meeting
All Council Members in attendance plan on attending the Council meeting.
Announcements
Irv reminded Council of the turkey shoot in Riverside Park on February 18, 2018.
Emelie stated that the Mayor had asked each Department Heads to cut their budgets by 10 percent.
The Council budget was cut by 10 percent; they were funds that were in the budget for potential use
but had not been used in four years.
Emelie stated that Budget/Finance has had issues keeping the meeting to one hour. The meeting will
be a two-hour meeting from now on until no longer needed. The meetings will start at 4:34 p.m. on
Tuesdays before City Council.
Mayor Nelson stated that he is cutting his budget by 15 percent to lead by example. There are a lot of
concerns at the State level on finances; this is a proactive move to make sure the City is in a good
position.
Recognition of Employees
• Kyle Bryant 13 years on February 1�` Police
• Jarred Anglin 3 years on February 18`h Police
• Zach Cortese 1 year on February 8�' Police
The council workshop adjourned at 8:11 p.m.
Res ctful 'tted,
Brittney Moor an
Administrative ssi ant
NOTE: TWs 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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Gas Taxes
There are two different gas tax aHocations and neither af them are General Fund revenues.
Fund 2820—Gas Tax(pa�e 110 of the bud�eta
The first gas tax is assaciated with MCA 15-70-101{2}. This ailocation is set for the City af Laurel annually
based an raad mileage. The total amount the City receives annually is then divided into 12 equai
instailments,and deposited eiectronicaliy into the City bank account. For Fiscal Year 2018 the annual
amount was$125,539.44. These monies are posted to fund 2820—Gas Tax. Monies in this fund may be
used for constructian, recanstruction, maintenance and repair of rural roads or city or town streets and
alleys. The City may aiso use these monies as their matching funds for Federal grant funding being used
for construction of raads or streets that are part of the primary or secondary highway system or urban
extensians to those systems. These manies may be used at the discretian af the City as long as they are
used for allowed expenditures.
Fund 2822—H8 473 Gas Tax(pa�:e 112 of the bud�et)
The second,and newest,gas tax is associated with House Bill 473. Fiscal Year 2Q18 is the first year this
gas tax has been available to the City of Laurel. 7he monies associated with this gas tax mus#be used �
far the same expenditures as the first gas tax but obtaining the funding is very different. These manies I
must be requested after March 1,2Q18 and each March 1 thereafter, by resolution. There is also a 59'0 ;
match associated with these monies. The 5/o match from the City can come from any fund,other tl�an i
fund 282Q—Gas Tax. 7he requests for distribution of funds r»ust be made prior to Navember 2 af each �
year. A sample resolutian of distribution is included in this packet. The City must submit an annual
report that provides informatian on appraved prajects,changes to the list o#projects funded and fina!
projeet costs, At the end of a project any unused funds must be remitted back to the department or the
City must notify the department af the intent to use the funds for additional projects within 90 days.
These monies are treated more like grant dollars. All monies pertaining ta this gas tax are posted ta
fund 2821—HS 473 Gas Tax. At this time it is unclear what amaunt the City can request far Fiscal Year
2018. Both the Mayar and 1 will be attending training this month on this gas#ax.
Please see handaut titled "Compliance Supplement for Audits of Local Government Entities"far a
detailed description af both gas taxes.
If you have any additional questions please emaii me cityclerk@laurei.mt.gov call me(406) 628-7431
extension 2 or come by and see me.
8ethany Keeler,CferkJTreasurer
Process for Obtaining Local Funds under HB 473
(Bridge and Road Safety and Accountability Act)
HB 473(Rep.Frank Garner),passed by the 65`"Legislature and signed by Governor Bullock on May 3,2017,provides
for a graduated increase in the motor fuel tax by fiscal year 2023 (6 cents in gasoline/2 cents in dieseI). Each fiscal
year, 35% or $9.8 million of the proceeds (whichever is greater) is allocated to the Montana Department of
Transportation (MDT) and the remainder(approximately$21 million by FY2021) is allocated to local governments
through a new a Bridge and Road Safety and Accountability Program (BaRSAA). This guidance document provides
a roadmap of the process local governments will follow to obtain these new BaRSAA funds. '�,
Allocadon of Revenues Collected
The allocation of the motor fuel tax revenues refers to the MDT calculation of and notification to local governments I
of the amounts available for each entity on an annual basis. Under HB 473,MDT will begin to assess the new tax on
July 1, 2017. Fuel that is distributed in a month is reported to MDT on the 25`h of the following month,and the tax on
that fuel is then collected 5 days later. T'herefore, the first allocation of funds by MDT on March 1, 2018 will consist
of the additional motor fuel tax revenues collected for July-October, 2017 ("FY2018 BaRSAA funds"). Every year
thereafter, the allocation will consist of a full 12 months of collections.
MDT will allocate the collected funds to cities, towns, counties, and consolidated city-county governments using the
same ratios used to distribute existing motor fuel tax revenues to local governments through the highway restricted
account as set forth in Section 15-70-101(2)(b), (2)(c), and (3), MCA. The new funds will be held in a separate
BaRSAA account until distributed.
Distribution of BaRSAA Allocation
T'he distribution of BaRSAA funds refers to the actual disbursement of allocated or reserved BaRSAA funds from I
MDT to local governments. Beginning March l, 2018,local governments may request distribution of their allocation
from MDT. Local governments must match all distributions from the BaRSAA account with a minimum 5% funding
match. MDT is currently planning to use the WebGrants online application system to accept requests for distribution
of BaRSAA allocations by local governments.T'his system will allow for electronic entry of the information necessary
for the distribution of funds to local governments.
A request for the distribution of funds must include:
(a) the amount of funding sought(up to but not exceeding the amount allocated for that year;
(b)copy of an adopted resolution to request and accept the funding by the goveming body, identifying the source
of the matching funds for the allocation(a template resolution is attached); and
(c) a description of the project or projects to be funded.
BaRSAA funds can be used:
(a) to pay for the construction, reconstruction, maintenance, and repair of rural roads, city or town streets and
alleys,bridges,or roads and streets that the city,town,county,or consolidated city-county government has the
responsibility to maintain;or
(b)as the match for federal funds used for the construction of roads and streets that aze part of the national,primary,
secondary, or urban highway systems, or roads and streets that the city, town, county, or consolidated city-
county government has the responsibility to maintain. "The local government may request that MDT credit its
BaRSAA allocation towards its local match for a federally funded project administered by MDT.
BaRSAA funds can be used to pay project costs incurred during the same fiscal year in which they are distributed.
BaRSAA funds cannot be used to purchase capital equipment.
Matching local government funds can be obtained from any source except the regulaz gas tax allocation in 15-70-101,
MCA. Potential matching fund sources include local funds shown as a budgeted expense, including general funds;
special district assessments; or state or federal funds, grants,or loans.
9/25/2017
Requests for distribution of FY2018 BaRSAA funds must be made between March 1 and November l, 2018 (every
March 1 to November 1 thereafter for the annual BaRSAA allocation).
Obligation or Saving of BaRSAA Funds
T'he obligation of funds by a local government occurs when the funds are committed to a project, either through a
contract or inclusion as an authorized project expenditure in the adopted annuai budget. Once the local government
obtains its distribution of FY2018 BaRSAA fixnds, it may either obligate the funds or place the funds and the
corresponding matching funds in a restricted asset account within the motor fuel tax apportionment to be carried
forward until the funds are obligated.
Local governments must obligate the FY2018 BaRSAA funds by March 1, 2023 (every March 1 thereafter, 5 years
after each annual allocation is made). The intent of the law is that local governments will use BaRSAA funds in a
timely manner to demonstrate improvements to road infrastructure occurring as a result of the passage of HB473.
Local governments must follow applicable competitive bidding requirements when entering into contracts that exceed
the thresholds provided for in 7-5-2301,MCA and 7-5-4302,MCA(currently$80,000). �
Reservation of BaRSAA Allocallon �
Reserve means a local government's request, by resolution, that allocated BaRSAA funds will not be distributed by
MDT for up to two years. If a city, town,county, or consolidated city-county government is unable to provide the 5%
match required to request a distribution of its BaRSAA funds, it may instead request to reserve the funds. To request
a reservation of funds, the local goyernment must submit a copy of an adopted resolution to request to reserve the
funds. MDT is also currently planning to use the WebGrants online application system to accept requests for
reservation of BaRSAA funds.
Once a local government obtains the required 5%matching funds, it may request distribution of the funds-and any
eligible reserved funds from prior years-beginning the following March 1,as set forth above. The local government
must request the distribution of reserved funds by November 1 of the fiscal year 2 years after the request to reserve the
funds, or its BaRSAA allocation is forfeited and added to the account for allocation among all the local governments
during the next allocation.
Requests for reservation of FY2018 BaRSAA fixnds must be made between September 1,2018 and November 1,2018
(every September 1-November 1 of the fiscal year after the fiscal year in which BaRSAA funds are allocated).
Annual Reports and Remainin�Funds
Local governments must submit an annual report to MDT that provides an update on all approved projects, describes
any changes to the list of projects funded with BaRSAA monies, and final project costs, if known. When a project
funded by BaRSAA monies is completed,the local government will indicate on its final annual report that the project
has been completed.Annual reports for the previous fiscal year will be due to the MDT by December 31 of each year,
to align the BaRSAA reporting deadline with that required for local government annual financial reports to the
Department of Administration in 2-7-503,MCA.
If any BaRSAA funds obligated to a project remain unspent upon project completion,the local government must notify
MDT within 90 days of project completion that the local government intends to use the funds for additional projects
within the 5-year time period for use of the funds, or intends to remit any unused funds to MDT. Funds remitted to
MDT are added to the BaRSAA account for allocation among all the local governments during the next allocation.
MDT is required to establish a website where the projects funded with BaRSAA allocations will be identified for each
local government. To facilitate this transparency of information, MDT is currently planning to use the WebGrants
online application system to accept annual and unspent funding reports.
9/25/2017
#�
A RESULUTION REQUESTING DISTRIBUTIQN UF
BRIDGE AND ROAD SAFETY AND ACCOUNTAElILITY PROGRAM FUNDS
WHEREAS, the Bridge and Road Safety and Accauntability Account ereated by HB 473 ,
requires the Mantana Department of Transportatian to allocate acerued fiznds to cities, towns, !
caunties, and cansolidated city-caunty governments for construction, reconstruction, '
rnaintenance, and repair of rural raads, city or town streets and alleys, bridges, or roads and
streets tha.t the city, town, county, ar cc�nsolidated city-county government has the respansibility �
to maintain; and,
WHEREAS, a city, tawn, cc>unty, or consolidated city-county government that requests
funds under the Bridge and Road Safety and Accountability Account must match each $20
re�uested with$1 of local governrnent rnatching funds; and,
f
WI3EREAS, a city, town, county, ar consolidated city-county government requesting '
distribution af allocated funds may rnake such a request ta the I7epartrnent of Transpartation
between March 1 and Novernber 1 af the year the funds were allocated; and,
WHEREAS, a descriptian of the projects to be funded (or the money used to match
federal funds) are detailed in Appendix A [attach project list)]; and,
WHEREAS, the local rnatch far the allacated funds are identified in Appendix B [attach
copy of approved road/bridge expenditures from current year operating budget}.
THEREFORE,NOW BE IT RESOLVED THAT:
l. [CitylToxm] of requests distribution of its share of the
allocated Bridge and Road Safety and Accountability funds to be used for the projects identified
in Appendix A.
2. That , the [znsert nameltitte of
person autharized] of the [CirylTown] of is hereby empowered and
authorized to execute such further dacuments as may be necessary to facilitate the distribution of
said funds.
Adopted this day of ,2d18.
Mayar
ATTEST:
Clerk af the [City17'awn] of
� CUMPLIANCE SUPPLEMENT FOR AUDITS OF LOCAL
Gt3VERNMENT ENTITIES
' GASOLINE TAX APPORTIQNMENT
� . «
REVISION DECEMBER 2017 REF:TRA1
INFC}RMATI4N CONTACT:
Mantana Department of Transportation{MDT)
Ed Ereth{4Q6}444-6111
Cantents �
PROGRAMOBJECTIVES............................................................................................................ 2
PROGRAMPROCEDURES.......................................................................................................... 2
ALLOWED USE UF GAS(?LINE TAX APPORTIONMENT MONIES..................................... 2
RESTRICTI4N 4N PURCHASE CtF CAPITAL EQUIPMENT.................................................. 3
BIDDINGREQUIREMENT.......................................................................................................... 4
ADDITICINAL ALLC?CATI4N C}F GAS TA�—SPECIAL ROADISTREET ALLOCATION
PRQGRAM.....................................................................................................................................4
Montana Campliance Supplement
� 'Rev-December 2017 7RA1-Gasoline Tax ARportionment Pa�e 2 of 6
See MACo's website at http://www.mtcounties.org(. See "Recent Resaurces"in the right-hand
side-bar ta link to the county fuel tax allocations.
PROGRAM OBJECTIVES
The State distributes a partion of the gasaline taxes callected by the State to counties, cities,
towns,and consolidated city-county gavernrnents to be used far construction,reconstruction,
maintenance, and repair of rural roads and city or town streets and alleys.
MCA 15-'70-101(2)
PROGRAM PRQCEDURES
The funds are distributed monthly by Montana Department of Transportation{MDT)to counties, i
cities and tawns, and consalidated city-cou�ty gavernments. MCA 15-70-101 specifies the total
amount to be distributed annually, as well as the method of allocatian(based on raad mileage, �
population, and land area).
Note: At the same tirne that MDT distributes these gasaline tax apportionments(MCA 15-70-
101),MDT also distributes fuel allocations for State public transportation funds (MCA 7-14-
102}. In the payrnent message section of the warrant,the total amount is separated by each of the ;
allocations.
See http•//www mdt rnt�ov/business/fuelta�allacations.shtml far additianal information.
Local governrnents rnay use fund 2820 and revenue accaunt 335040 far balances and revenues
received from the standard MDT Gas T�Allocation Program.
ALLC)WED USE OF GASOLINE TAX APPORTIONMENT MONIES
All funds allocated to counties, cities, and towns,and cansolidated city-county governments
must be used for the following: ,
1. construction,reconstruction,maintenance, and repair of rural roads ar city or town streets ,
and alleys, or '
2. for the sl�are that the city,town, caunty, or consalidated city-caunty governments might
atherwise expend for proportianate matching of federal funds allacated for the
construction of roads or streets that are part of the primary ar secondary highway system
or urban extensions to those systems.
MCA 15-'70-101(4)
A city may use its gas tax allocation to construct streets and highways, and because a highway is
defined as including "drainage structures",the city may use its share of gasaline tax allacation
for construction of storrn sewers and drains in and under city �treets for removal of runoff water.
Montana Campiiance Supplement
� � � Rev-December 2017 TRA1-Gasoline Tax Apportionment Pa�e 3 of 6
The city may also place the money allocated in a sinking fund used to pay general obligation
bonds sold ta finance canstructian of those sewers, as the only statutory xestrictian an the use of
the funds is that the funds must be used exclusively for city streets. Nar do the statutes governing
municipal financing prohibit the use of such maney in a sinking fund for general abligation
bonds.
AGO #19, Vol. 40
,
If a city contracts for street canstructian work ta be paid exclusively from gasoline tax revenue
received from the state, the indebtedness is considered part of the city's general debt limitation
under'7-7-4201 unless the conditions af some specific exception are otherwise met.
AGO#120, Vol. 42
Suggested Audit Pracedure
Test disbursements of gasoline tax moneys to determine if the funds were used only for the
purposes described above.
Note: State law does not specify a fund in which gasoline tax moneys should be deposited,
although the expenditure restrictions require that the local government dacument the appropriate
expenditure of these moneys. BARS Special Revenue Funds No. 2820 (Gas Appartionrnent
Tax) or No. 2I I O (Caunty Road) should be used.} �
�
RESTRICTION t3N PURCHASE C1F CAPITAL EQUIPMENT
Gasoline tax maneys may not be used for capital expenditures, exCept that towns and third-class �
cities, as defined in MCA 7-1-4111, may each year expend na more than 25%of the funds I
allocated to that town or third-class city for the purchase of capital equipment and supplies to be
used far the maintenance and repair of the tawn's ar city's streets and alleys.
MCA 15-70-1 O l(4) & (8}
Capitai Reserve for Towns & 3r� Class Cities: The gaverning bady of a town or third-class
city ma�place all or a part of the 25°fo in a restricted asset account within the a� s tax
�partionrnent fund that is carried farward until there is a need far the expenditure.
MCA 15-70-101(4}
Saggested Audit Pracedures
Test expenditures in counties, first and second-class cities, and consolidated gavernments ta
determine that no gasoline tax moneys were used for the purchase af capitai equipment.
Test expenditures in third-class cities and towns ta determine that not mare than 25%af the
fiands ailocated to the city or tawn were used far the purchase of capital equipment and supplies
ta be used far the maintenance and repair of streets and alleys.
If a third-class city or town did nat expend the entire 25°lo af its annual aliacation on capital
autlay during the year, determine that any remaining ba�ance of that 25°lo was transferred ta a
Montana Campiiance Suppiement
' � Rev-December 2017 TRA2-Gasoline Tax Apportionment Pa�e 4 of 6
restricted cash account. Any unexpended balance not restricted in this mannex may not be used
in subsequent years for capital purposes.
BIDDING REQUIREMENT
If a contract for maintenance, constructian,reconstruction,or repair of roads, streets or alleys is
in excess of the amounts pravided in 7-5-2301 and 7-5-4342—see below and is ta be paid with
gasaline tax rnaneys,the contract must be awarded to the lowest responsible bidder according to
applicable bidding procedures.
MCA 15-70-101(5)
Contracts in excess of$80,000 must be let ta the lawest respansible bidder after advertisement
for bids.
MCA 7-5-2301(county); MCA 7-5-43Q2 (municipalities)
Note: The court construed the provision to mean that the lacal governrnent may do the wark
itself or contract it out by bid.Numerous other statutes relating to construction and repair af
roads authorize ihe lacal government to do the work itself. It would nat be reasonable ta assurne
that only construction and repair funded by gas tax dollars rnust be contracted out, Attempts to
require this by legislation in 1979 and 1985 failed, and the failure is significant. Finally,the
entities administering that provision have for 12 years interpreted it to mean that a lacal
governrnent may do the wark itself and must follow the pravisian only if the work is cantracted '
out. Mont. Contractors' Ass'n, Inc. v. Dept. af Highways, (1986). '
Suggested Audit Procedures
If a contract for maintenance, construction, recanstruction or repair of roads, streets, or alleys is '
in excess of the bidding threshold amount currently in effect and is paid with gasaline tax
moneys, review bidding pracedures and determine that funds were disbursed to the lowest bidder
accarding to applicable bidding procedures. �
'
Obtain the tatal cost for selected projects to determine if proper bidding procedures were
fallawed for projects that are in excess of the bidding threshold amount currently in effect, and
that the above bidding requirement was nat circumvented by dividing single projects costing in
excess of that amount into smaller projects costing less than that amount. �
ADDITIONAL ALLUCATIUN tJF GAS TAX- SPECIAL I20ADJSTREET
ALLOCATION PROGRAM
Effective July l,201'7: Gas Tax Raad Construction and Maintenance Match Pragram:
(1) There is a local gavernment road construction and rnaintenance match program to provide
funding to cities,towns,counties,and consolidated city-caunty governments for
construction,recanstruction,maintenance,and repair of rural raads,city or town streets and
alleys, and bridges as provided in this sectian.
(2) The department of t�anspartation shall allocate funds provided for in 15-70-127(2)(b)
collected between January 1 and Decembex 31 of the previous year. The first allocations
must be made by March 1, 2018, and allocations rnust be rnade each March 1 thereafter. The
Montana Campiiance Supplement
�- ' Rev-December 2017 TRA1-Gaso{ine Tax Appartianment Pa�e 5 af 6
funds provided for in 15-70-127(2)(b)are statutorily apprapriated,as provided in 1'7-?-502,
to the department and must be allocated to cities,towns,counties,and consolidated city-
county governments in the same proportion and using the same ratios pravided foar in 15-'70-
101(�)(b)� ��)(�)�an�(�)•
(3) A city,tawn, coiu�ty,or cansolidated city-caunty gavernnxent that requests funds under this
section shall match each$20 requested witla:$1 of local government matching funds. The
funds distributed in 15-70-101(2)may not be used as rnatching funds. The matching funds
must be used along vuith the requested funding far construction,reconstruction,maintenance,
or repair of rural raads, city or tawn streets and alleys,or bridges.
(4) A city,tawn, county,or cansolidated city-county government rnay request a distribution af
allocated funds by submitting a request to the department of transportation between March 1
and November 1 of the year the funds were allocated. The request must include:
(a) the amount af funding saught, which may not exceed the arnount allocated for that
year;
(b) a copy of an adapted resolufion ta request and accept the funding by the governing
bady of the city,town,county, or consalidated ciry-caunly governrnent. The
resolution rnust identify the source of the matching funds required under subsection I
�3�' �
(c) a description of the project ar projects to be funded,which must be for co�struction,
reconstruction,maintenance, or repair af rural roads, city or town streets and alleys,
or bridges, as a match for federal funds used for the construction of roads and streets
that are part of the national,pnamary, secondary, or urban highway systems, ar roads ;
and streets that the city,town, county, or consolidated city-county governrnent has the
respansibility to maintain.
(5) A city,town, county, ar cansoiidated city-county government receiving funds under this
section shail award construction prajects that exceed the threshalds provided for in'7-5-2301
and 7-5-4302 in a competitive bid process. ;
(6) Except as provided in subsection(9),�he department of transporta.tian shall distribute the i
funds to the city,town, county, or cansolidated city-county governrnent far any request for
funds that meets the requirements af subsectian�4}. �
(7) Funds nat distributed pursuant to this seetion must remain in the aceount provided for in 15- !
70-i2� and be used for the locai government raad canstruetion and maintenance match �
pragram in future years.
(8} A city,#own, county,or cansolidated city-county government that receives funding
distributed under this sectian rnay place all or a part af the funds and the corresponding
matching funds in a restricted asset accaunt within the gas tax apportiantnent fiznd that is
carried forward until there is a need far the expenditure. The city,tawn,county,ar
consolidated city-county gavernment shall obligate the funds by March 1, S years after the
year in whieh the funds were distributed or would have been distributed if not reserved
pursuant to s�bsectian(9}. Funds not obligated within the 5-year periad must be reri�rned to
the department and deposited in the account pr4vided for in 15-'74-127 and used as provided
in 15-10-12'7{2}(b).
{9} The share af funds allocated to a city,town, county, or consolidated city-county govenzment
as provided in subsectian{2)may be reserved far the city,tgwn,county,or consolidated city-
county govern�cnent for up to 2 years if the city,town, county, or consolidated city-county
gavernment is unable to match the funds as required by subsection{3). Ta reserve the funds,
Montana Compliance Supplement
� ' � Rev-December 2017 TRA1-Gasoline Tax Apportionment Page 6 of 6
the city,town, county, or consolidated city-county government shall adopt a resolution as
provided in subsection(4)(bj and submit a request to reserve the funds by November 1 of the
year after the year in which the department allocated the funds. If the city,town, county, or
consolidated city-county govemment does not request distribution of the funds by November
1 of the fiscal year 2 years after the request to reserve the funds,the funds must be deposited
in the account provided for in 15-7U-127 and used as provided in 15-70-127(2)(b).
(10) A city,tawn, county,or consolidated city-county government sha11 submit an annual
report to the department providing information on approved projects, changes to the list of
projects funded, and final project costs.
(11) Within 90 days of completion of a project, a city,town, county,or consolidated city-
county government shall notify the department of the intent to use the funds for additional
projects within the time period provided for in subsection(8)or to remit any unused funds to
the department. The unused funds must be deposited in the account provided for in 15-70-
127 and used as provided in 15-70-127(2)(b).
MCA 15-70-130
See http://www.mdt.mt.gov/roadbrid�e/and http://www.mtcounties.or�/resources/fiscal-
information-forms/bridge-and-road-safety-and-accounta.bility-act-barsaa for additional
information.
Local governments may use BARS fund 2821 and BARS revenue account 335041 for balances
and revenues received from the Special Road and Street Maintenance and Construction
Allocation/matching Program
Montana Compliance Supplement
CITY HALL •
��5 W.�s�.�t. f I�+�.ur�' _„��M��—
PUB WORKS:628-4796 �� �
� �
PWDFAX:62$-2242 P,�. B07C l� ��
WATER QFFICE:628-7431 Laurel,Montana 59044
WTR FAX:628-2289
MAYOR:628-8456
DEPARTMENT
MEMORANDUM ;
To: City Council I
Fram: Mayor Thamas Neisan
Date: February 23,2028 �
Re: CommitteeJBoard Minutes '
�
Recently t have reviewed the Cammittee/Board minutes that are"outstanding."Outstanding is defined '
as the meeting has occurred,but has not been sent to Council via the Consent Agenda. It has been I
brought to my attention same Comrnittee/Boards are waiting until their next meeting ta approve the
minutes before submitting them for the Consen#Agenda.This practice delays Council from seeing those
minutes for approxtmately a month and a half,to facilitate the prornpt communication from each '
Committee/Baard,the following requests are made: '
1, Committees/Baards submit their minutes to the Administrative Assistant within two weeks '
after the meeting. ,
2. The Administrative Assistant will place these minutes on the follawing Consent Agenda. '
3. Committees/Boards will still take the minutes to thei�following meeting for approval.
4. In the event,the Cammittee or Board corrects those minutes will be placed on the Consent
Agenda listed as the"revised minutes of(Cammittee/Baard Namej."
This memo will be distributed to each af the Committees and Baards. Please assist in the implantation af
this process within the Committees/Boards in which yau reside on.
tf yau have any questions ar concems, please feel free to contact me at City Nal1.
Dated#his 13t"day of February 2Q18.
---~� �..'7'�--~`����'��"'1...-
�,_-..>
Thomas C. Nelson, Mayor
TCN/bm
City af Laurel is an EEO Emplayer
Equal Housing Qpportunity