HomeMy WebLinkAboutCity Council Minutes 08.19.2008MINUTES OF THE CITY COUNCIL OF LAUREL
August 19, 2008
A regular meeting of the City Council of the City of Laurel, Montana, was held in the
Council Chambers and called to order by Mayor Ken Olson at 6:30 p.rn. on August 19, 2008.
COUNCIL MEMBERS PRESENT
Emelie Eaton Doug Poehls
Kate Hart Chuck Dickerson
Gay Easton Norm Stamper
COUNCIL MEMBERS ABSENT
OTHER STAFF PRESENT:
Alex Wilkins Mark Mace
Bill Sheridan Kurt Markegard
Sam Painter James Caniglia
Mayor Olson led the Pledge of Allegiance to the American flag.
Mayor Olson asked the council to observe a moment of silence.
Mayor Olson removed item 10. h. from the council agenda.
MINUTES:
Motion by Council Member Eaton to approve the minutes of the regular meeting of August
5, 2008, as presented, seconded by Council Member Hart. There was no public comment or council
discussion. A vote was taken on the motion. All six council members present voted aye. Motion
carried 6-0.
CORRESPONDENCE:
Laurel Chambex of Commerce: Board Meeting Minutes of July 24, 200$; Agenda of August 14,
2008.
PUBLIC HEARING: None.
CONSENT ITEMS:
• Cler~/Treasurer Financial Statements for the month of July 2008.
• Approval of Payroll Register for PPE 08/10/2008 totaling $x.53,364.14.
• Receiving the Committee Reports into the Record.
--Budget/Finance Committee rrzinutes of August 5, 2008 were presented.
--Council Workshop minutes of August 12, 2008 were presented.
The mayor asked if there was any separation of consent items. There was none.
Motion by Council Member Poehls to approve the consent items as presented, seconded by
Council Member Stamper. There was no public comment or council discussion. A vote was taken
on the motion. All six council members present voted-aye. Motion carried 6-0.
CEREMONIAL CALENDAR: None.
REPORTS OF BOARDS AND COMMISSIONS: None.
AUDIENCE PARTICIPATION (THREE-MINUTE LIMIT): None.
SCHEDULED MATTERS:
Council Minutes of August 19, 2008
• Confirmation of Appointments.
Public Works Director:
Mayor Olson. appoirited Kurt Markegard as the Public Works Director for the City of Laurel.
Motion by Council Member Easton to approve the appointment of Kurt Markegard as the
Public Works Director for. the City of Laurel, seconded by Council Member Dickerson. There was
no public comment or council discussion. A vote was taken on the motion. All six council members
present voted aye. Motion carried 6-0.
Mayor Olson welcomed Kurt Markegard as the Fublic Works Director and stated that his services
will be of value to the city.
Yellowstone Soil Conservation District:
Mayor Olson reappointed Gay Easton to the Yellowstone Soil Conservation District for athree-year
term ending June 30, 2011.
Motion by Council, .Member Hart to approve the reappointment of Gay Easton to the
Yellowstone Soil Conservation District far athree-year term ending June 30, 2011, seconded by
Council Member Dickerson. There was no public comment or council discussion. A vote was taken
an the motion. All six council members present voted aye. Motion carried 6-0.
* Johnson Controls: Performance Contract M&V and Annual Billings Analysis Reports
Craig Wright, Performance Assurance Lead Engineer, introduced Nick Broussard, Performance
Assurance Engineer, who will replace him in the duties to monitor the city's energy savings for the
next two years and perform the utility reporting services. Nick will be recording with Kelly Rhoads
and Mary. Embleton. Craig stated that the purpose of the presentation is to convey the last year's
performance of energy conservation measures that Johnson Controls implemented concluding on
June 16, 2007 and how the measures are performing today.
Craig gave a PowerPaint presentation, a copy of which is attached to the original council minutes.
The City of Laurel contracted with Johnson Controls to guarantee $916,425 in project benefits over
twelve years through the implementation of a variety of conservation measures, as well as the
automatic meter reading system that is used throughout the city. The energy conservation measures
consisted of primarily heating ventilation and air conditioning improvements by efficient heating and
cooling controllability and energy efficient equipment upgrades. Lighting and lighting control
upgrades were implemented, such that lights shut off when spaces were unoccupied and more energy
efficient lighting is utilized. Building envelope leakage reductions were also implemented. Some of
the additional guaranteed benefits are derived through agreed upon operations and maintenance
savings, which results from reductions in retrofitting lights and preventative maintenance that would
have been needed. Craig pointed out that primarily two-thirds of the overall project benefits
comprising the $916,425 are through the accuracy improvements in the new water meters that now
read automatically.
Craig presented the year one inspection results which were performed and iden.tifi~d as to whether
the improvements implemented a year ago still have the potential to produce savings. He
highlighted the discrepancies discovered between last year at this time and this year. Some aspects
concerning motion sensors not functioiung properly at the city maintenance shop were identified.
Some occupancy sensors that control lights in the Wastewater Treatment Plant were also identified
as being removed. He stated that the ability to achieve savings on those three items is comprornised
and they should be replaced if the savings is to be reviewed. Programmable thermostats were also
evaluated, and discrepancies were discovered. One programmable thermostat in the city council
chambers was suggested as not functioning properly. It was discovered. that it was in a cooling
mode. Since it is only a heating thermostat, the setting was changed and the occupancy hours were
adjusted. He believes that the changes on the -thermostat will correct matters encountered over the
last winter, but it will need to be checked when the heating system is started. The city hall
- thermostat that controls the rooftop second floor air handler was replaced with anothex
- programmable thermostat, which presumably performs the same functions but personnel needs to be
aware of it.
. ~°
Council Minutes of August 19, 2p08
Regarding the overall year-end performance of the new water meters, it was recognized that, on
average of the 2,600 meters that were installed as part of this performance contract, 109,771. gallons
were measured through each meter, as compared to 107,998 gallons. That is roughly a 1.6 percent
increase of recordable consumption.
Craig showed a graph that was broken out by customer type, including the small, medium, and
heavy commercial users up to those users that have two-inch meters. The larger meters were not
replaced as part of the performance contract. They scrutinized the increase in consumption that was
expected as a result of the meters that were replaced. The checkered bars in each category indicate
the contribution that each meter type had toward the 1.6 percent increase in overall meter use
throughout the year. The graph conveyed that the commercial 1 %-'inch meters contributed the mast
toward the 1.6 percent increase overall, followed by the residential 3/a-inch meters, which constitutes
about 9S percent of the city's meters. Johnson Controls hoped those meters would have a significant
contribution toward the overall increase, followed by the commercial 1-inch meters. If the
commercial 3/4-inch, commercial 2-inch, and residential 1-inch meters had demonstrated increased
consumption last year compared to the base year, which was 2005-2006, it would have been possible
to recognize an even higher increase than the 1.6 percent conveyed. Craig stated that this
information is conveyed on a quarterly basis to Mary Embleton and Kelly Rhoads. They work
through utility bill discrepancies, drastic increases, and drastic decreases that are unusual on a
month-to-month basis. They also .look at rate codes that might be applied incorrectly. Last
November, a $30,000 discrepancy was found in water that was unbilled to the city's largest
customer. The discrepancy was corrected. Craig stated that was a great highlight of the services
Johnson Controls provides.
There was a brief discussion regarding the guaranteed project benefits and the actual $71,032 year
one guarantee. Craig stated that the savings that will be validated this year and every year hereafter
in regards to the performance contract and toward the total $916,425 guaranteed has already been
deemed achieved. The reason is that the methodology agreed upon between Johnson Controls and
the city was one that was very limited in the amount of rigor involved to validate that. That should
never change but hopefully there will be better results, such as the $30,0.00 misapplied bill.
Mayor Olson thanked Craig.for his informative presentation.
• Resolution No. ROS-92: Resolution to vacate a portion of Maple Avenue, a certain
platted street right-of way located within the City of Laurel.
Motion by Council Member Poehls to approve Resolution No. R08-92, seconded by Council
Member Hart. There was no public comment or council discussion. A vote was taken on the
motion. All six council members present voted aye. Motion carried 6-0.
• Resolution No. R08-93: Resolution authorizing the Mayor to sign an agreement to
provide health services with St. Vincent Healthcare of Billings, Montana.
Motion b Council Member Dickerson to approve Resolution No. R08-93, seconded by
Council Member Stamper. There was no public comment or council discussian. A vote was taken
on the motion. All six council members present voted aye. Motion carried 6-0.
• Resolution No. R08-94: A resolution rescinding Resolution No. R07-21 approving Task
Order No. 13 authorizing Morrison-Maierle, Inc. to provide MPDES Discharge Permit
renewal assistance to the City for its Wastewater Treatment Plant.
Motion by Council Member Hart to approve Resolution No. RO8-94, seconded by Council
Member Eaton. There was no public comment or council discussion. A vote was taken on the
motion.. All six council members present voted aye. Motion carried 6-0.
• Resolution No. R08-9S: Resolution selecting COP Construction LLC for the completion
of the South Laurel Storm Water and Sanitary Sewer Improvements Project and to
authorize the Mayor to sign a contract for completion of such project.
Motion b Council Member Stam er to approve Resolution No. R08-9S, seconded by
Council Member Dickerson. There was no public comment or council discussian. A vote was taken
on the motion. All six council members present voted aye. Motion carried 6-0.
Council Minutes of August 19, 2008
At Mayor Olson's request, Bill Sheridan gave an update on the time frame for the project. Bill
stated that COP Construction was one of three and their bid was for $1,300,000, which is more than
the engineer's estimate. COP Construction does an excellent job and has worked with the city on a
regular basis on a variety of projects. The project must be completed by the first part of December,
so COP needs to start the project next month. COP Construction expects to have two full-time
crews, a night crew and a day crew. The project is in a very busy area and businesses will be
interrupted, but the work needs to be done and will open up even mare development on the south
side of Laurel. Bill is hopeful that all of the timelines will be met. He stated that this will start the
process of paving on South First Avenue and eventually through an SID paving on Southeast 4tn,
which is very necessary for the commercial development of the city. Bill explained that the project
has to be done by early December because there is a need for a number of months in which the
compaction and the backfill of both storm water and sanitary sewer trenches need to be put in place
before any pavement will be done by the State Department of Transportation. Next spring, the
Department of Transportation will pave the street and make curb, gutter and sidewalk improvements.
Bill stated that this is a positive step forward that will make a difference for the community.
Mayor Olson stated that council members should be aware that the closing of the street from the
second week of September through the beginning of December will cause concern for the businesses
and the residents who use that route going in and out of the city. During the East First Street project,
the city asked residents to have patience as the project was done in a timely fashion. He hopes that
the community will also accept this challenge and maintain patience during this project.
Council Member Dickerson stated that it had previously been explained that the project would be
done in sections.
• Resolution No. R08-96: A resolution of the City Council submitting to the qualified
electors of the City of Laurel, Montana, a ballot issue requesting voter approval to levy
approximately 49.22 additional mills to raise property tax revenue in an amount of
$325,000 per .year for the next twenty years for the purpose of designing and
- constructing a new fire hall for the City of Laurel.
Motion b Council Member Poehls to approve Resolution No. R08~96, seconded by Council
Member -Stamper. There was no public comment or council discussion.. A vote. was taken on the
motion. All six council members present voted aye. Motion carried 6-0.
ITEMS REMOVED FROM THE CONSENT AGENDA: None.
COMMUNITY ANNOUNCEMENTS (ONE-MINUTE LIMIT): None.
COUNCIL DISCUSSION:
Council Member Eaton stated that the Yellowstone County ITistoric Preservation Board would meet
on September 16~h at 8:00 a.m. on the fourth floor of the Billings Parmly Library. The Board met
today at the Pictograph Caves, which was a nice setting for this time of the year.
Council Member Eaton stated that she attended the Montana History Initiative in Helena last May.
The tourism districts were formed, and the Custer County Tourism area group will have a training
session on November 7t" and 8`~' in Forsyth. She will provide some material for that meeting.
Council Member Eaton stated that the local artist that designed the proposed sign far Riverside Park
has redesigned the sign. Council Member Eaton asked if a presentation could be made at the August
26`'' council workshop. The item will be on the agenda.
Council Member Stamper has received the next rendering of the Cemetery Master Plan. He stated
that a Cemetery Commission meeting will be scheduled to review the plan. At that meeting, the
Cemetery Commission will discuss speeding up the process to get the plan finished far the city's
veterans' section.
Council Member Dickerson stated that the Centennial Committee met last week and agreed to
contribute funding for the sign in Riverside Park.
Council Member Dickerson asked that an update regarding the status of the right hand only turn lane
on First Avenue South off the interstate be added to the August 26`h council workshop agenda.
4 ~ti
Council Minutes of August 19, 2008
Council Member Poehls stated that he received a comment from Cenex about the fire district
contract the day after the council approved the cantract. Cenex and their attorneys want the three
words included in the contract that were removed from the contract prior to council approval. The
verbiage daes not affect the contract. Council Member Poehls stated that this will be on the next
council agenda as an amended motion.
Council Member Poehls stated that the Emergency Services Committee will meet on Monday,
August 26`x', to discuss the mutual aid contract with Cenex and to review the dog ordinance.
Mayor Olson thanked the department heads for their work during the centennial celebration. He
expressed appreciation to Bill and TCurt for attending the planning meetings and for their service
during the events. He asked Bill to pass on his appreciation to the city staff.
UNSCHEDULED MATTERS:
Mayor Olson stated that Council Member Wilkins submitted a letter requesting permission to be out
of the city for an extended period of time while serving with_the National Guard.
Motion by Council Member Dickerson to allow Council Member Wilkins an extended
absence from. the Laurel City Council, seconded by Council Member Poehls. There was no public
comment or council discussion. A vote was taken on the motion. All six council members present
voted aye. Motion carried 6-0.
Bill Sheridan stated that the leak detection system company found six leaking water pipes. This
information will allow the city to proceed with street improvements.
ADJOURNMENT:
Motion by Council Member Stamt~er to adjourn the council meeting, seconded by Council
Member Dickerson. There was no public comment or council discussion. A vote was taken on the
motion. All six council members present voted aye. Motion carried 6-0.
There being no further business to come before the council at this time, the meeting was adjourned at
7:14 p.m.
~~ ~~
Cindy Alle ,Secretary
Approved by the Mayor and passed by the City Council of the City of Laurel, Montana, this 2°d day
of September, 2008.
Kenneth E. Olson., Jr., Mayor
Attest:
Mary K. E leton, Clerk-Treasurer
August 19, 2007
City Of Laurel
Performance Contract Results Overview
CraiS . , ..~...
Performance Assurance Lead Engineer
Nick Broussard
Performance Assurance Engineer
Littleton, Colorado
Johnson /i~j~~l
Controls
Performance Contract ~~er~ie~nr
Project Commencement: January 29, 200
Completion: June 16, 2007
$916,425 in Guaranteed Project benefits
over 12 years. $71;032 =Year 1 Guarantee
^ Utility Cost Avoidance from:
^ Heating Ventilating & Air Conditioning (HVAC}
Optimization
^ Efficient heating cooling conirollabiiity
^ Energy Efficient Equipment Upgrades
^ Lighting & Lighting Control Upgrades
^ Building Envelope I, eakage Reductions
p ~ } p
^ O erations & Maintenance O&M and Ca itai
Cost Avoidance
^ New Water Meters & Automated Meter
Reading {AMR}:
^ 213 of overall project benefits
® Utility Cost Avoidance
^ O~MICapital Avoidance
® AIVI R
Johnson `,~j~~~
Controls
YEAR 1 Inspection Results
Changes from last year, which wilt result in reduced energy savings:
^ LIGHTING CfJNTROL
^ City Maintenance Shops -Problems reported with East Truck Bay motion sensor shutting off
lights.
^ VNaste Water Treatment Plant -Remaining 2 of 4 origiinally installed motion sensors replaced
with manual switches.
^ PROGRAMABLE THERMOSTATS
^ City Council -Problems reported with thermosta# not shutting off pump, con#rolling heat to
space.
^ Placed scat in heating mode. Discovered in cooling r-node upon inspection.)
^ Extended occupancy hours From x.30 AM to 10.00 PM, 7 days a week
^ City Hall -New thermostat installed by city in place of previously installed JCI thermostat.
Johnson 'l~j~(~
Controls
Performance Year 1 ~2007106~ Aso base Year ~200~106~:
Comparison of City-Wide ~illeol Consumption -OVERALL
July 2007-June 2008 Overall Average Meter Consumption
vs. July-June of the base Year
Meters 2" & Smaller}
120000 --- ~-- ----- ---- -- - ----- - -
-;
100000 ~ -
3 _ _ .. {, _
80000 .~ -- - -,
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60000 -
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sue{ ,£:
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20000 ~ ~ ~: ~
,
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_
_
Overall AvglMtr
®July-June 08 ~ 109771
^ July-June Base Year 107998
Johnson ~~~~~
Controls
Performance Year 1 ~2007108j vs. Base Year ~200510fi~:
City-Vllide Billed Consumption -METER SIZEIR-~TE CODE SPECIFIC
July 2007- June 2008 Average Meter Consumption by Rate Code
vs. Juiy~lune of the Base Year
(Meters 2" & Smaller}
250fl00Q
Rate Code
,#
F~:t-- ~~~__ -1
T(~f~_r
1. ~
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Johnson 'IJ~{~
Controls
Performance Year 1 ~200~108} Vs. Base Year ~200510fi}:
METER sIZEIRATE CODE SPECIFIC Contribution to OVERALL Consumption
July 2007-June 2008 -4~erage IUieter Consumption by Rate Code
vs. Julytilune of the Base Year
Meters 2" & Smalie~-}
2500000 --- -
=?''
2000000 - ~ ` . `~'= ~` ° ~ ^-
s. ~ _
~ 1500000
O
[; 1000000 -
500000
0
COM- 0.75 I COM- 1.00
~ Julytilune 08
^ Julytilune Base Year
~, Contribution by Meter Type
191216 269491
117210 227600
X6.9°/0 21.1 °/o
COM- 1.50 COM- 2.00
836fi07 2026415
469210 2099337
63.0°/0 -11.7°/0
Rate Code
~~ -_ ~
r~~ ~ _
90.0°/0
,~
. ~~ t `~
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i ~
75.0°/0
, ~
:r,
.~ ~ ' - 64.0°~0 0'
^~~ 45.0% ~
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- - 30.0°/0 0
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15.0°/0 :~
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- -15.0°/o C)
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-30.0°/0
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-45.0
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RES-0.75 RES-1.00 -
88493 77590
86666 216920
42.4°I° ~ -8.0°I°
Johnson ',~~~~
Controls
Billing Review Service Highlights
Caught $30,000 in underbilled water
use by the city's largest customer!!!
Johnson %I~j~(~
Controls
Johnson '/~~~1
Controls