Belgrade City Council

CITY OF BELGRADE COUNCIL MEETING MINUTES COUNCIL CHAMBERS June 17, 2024 7: 00 pm This meeting was open to the public and attended in person. Mayor Russell C. Nelson called the meeting to order. Council Members in attendance were Jason Guffey, Mike Meis, Jim Simon, Kristine Menicucci, Jim Doyle, and Renae Mattimoe. City staff in attendance were City Manager Neil Cardwell, Assistant City Manager( ACM) Greg Tryon, City Attorney Rick Ramler, City Clerk Camille Gregory, Executive Assistant Dana Jambor, Executive Finance Director Charity VanKirk, Chief of Police Dustin Lensing, Director of Information Technology Ryan Curtis, Director of Community Development Jason Karp, Senior Planner Brad Stien, Director of Human Resources Becky Wilbert, Director of Parks and Recreation Steve Klotz, Public Works Director Camaree Uljua, and Library Director Gale Bacon, Fire Chief Jay Whittwer, and Building Inspector Lucas Sobeck. Others in attendance were Judy Doyle, Ron Pierzina, Laura Pierzina, Brad Gjermo, Don Davis, Angie Huang, Jerry Beard, John Rosa, Brian Bile, Austin Coon, Todd Walter, and Brian Viall. PUBLIC FORUM Mayor Nelson called three times for public comment. There being none, the public forum was closed. CONSENT AGENDA Consider Approval of Council Minute Draft( S): 5- 20- 24 and 6- 3- 24. Council Member Mattimoe noted an error in the May 20th minutes where her name appeared in the attendance section. However, she was absent for that meeting and her absence was excused and noted in the minutes as such. She and the Clerk discussed it before the meeting, where it was already corrected. ACTION: Council Member Menicucci moved to approve the consent agenda items as submitted. Council Member Simon seconded the motion. All voted aye, motion carried unanimously. Page 1 of 8  PUBLIC HEARING Discuss and Consider Resolution No. 2024- 09 Approving the Annexation of Property and the Annexation Agreement for Cruiser Lane LLC. Council Member Simon recused himself from this discussion and left Council Chambers at 7: 05 p.m. Director of Community Development Karp explained that this resolution will annex 732 Cruiser Ln. into the city limits of Belgrade. The address is located at the corner of Jackrabbit and Cruiser. He noted this annexation is a standard agreement. The property owners did not wish to speak. Mayor Nelson called two times for public comment. Judy Doyle, residing at 1706 Drummond, asked if this property would be grandfathered in on the water well for irrigation, as other properties of similar size have. Karp confirmed that they will be on well and septic. He stated that as long as the property owners continue using it as it is, they will not have to connect to City of Belgrade' s utilities. Should the property owners decide to connect to the City' s utilities, it is required that they abandon and cap the well. Mayor Nelson called one more time for public comment. There was none. ACTION: Council Member Menicucci moved to adopt Resolution No. 2024- 09, approving the annexation of property and the annexation agreement for Cruiser Lane LLC. Council Member Mattimoe seconded the motion. All voted aye, motion carried unanimously. Council Member Simon reentered the Chambers at 7: 09 pm. Discuss and Consider a Request for a Conditional Use Permit from Burch Tree Realty, Inc. Big Sky Propane) for a Propane Storage Facility at 110 W. Northern Pacific. Senior Planner Stein explained that this permit request was noticed in both the Bozeman Daily Chronicle and the Belgrade News, while notices were also mailed to the adjacent property owners. The requested Conditional Use Permit( CUP) is for the property located at 110 W. Northern Pacific Ave. The site is a zoned innovation district in Belgrade' s Urban Renewal District. Stein also clarified that were the Council to deny this request, Montana rules require that the Council still approve the permit itself and then deny issuing the permit through a vote. Austin Coon, the Applicant and Owner of Big Sky Propane, explained that he and his family have owned and operated a successful propane company in New York for 35 years without any incidents. He attributes that success to their extensive training, rigorous maintenance, and safety culture. Mr. Coon then presented a brief PowerPoint presentation on his business' safety practices Page 2 of 8 and precautions. He assured that first responders would have access to the propane yard and there would be security cameras installed on both ends of the propane yard. Council Member Menicucci and Meis asked several questions about monitoring the propane levels. They expressed concern over possibility that the proposed propane yard' s close proximity to passing trains and the train tracks could cause a fire. They asked if there was a plan for that situation. Mr. Coon explained that the likelihood of such a potential fire causing anything catastrophic is extremely low. He stated they monitor the levels remotely, so there would not be anyone onsite. Mayor Nelson asked if the yard would be fenced off. Coon confirmed that the yard would be fenced off and locked during the evening. Council Member Simon asked why the fire safety analysis wasn' t provided to the Fire Department. Mr. Coon explained that he provided an analysis that had been done for his other facilities, but that the analysis for this proposed facility cannot be fully completed until the bulk plan is done. City Manager Cardwell asked how many delivery trucks would be servicing the yard and how often bulk transport would happen. Mr. Coon said they would start with four trucks, with two initially serving Belgrade. The bulk delivery would be shipped in from an outside transport supplier. In the winter, the bulk delivery would come every day. Senior Planner Stien mentioned that two public comment letters were provided in the council packet. Mayor Nelson called for public comment. Todd Walter, of Brick and Mortar Real Estate, got up and spoke. He explained that when he sold the property in question to Big Sky Propane, he did so believing the property was still zoned for industrial and commercial use. He stated that the zoning had changed to a business district without his knowledge since then. Mayor Nelson called a second time for public comment. Don Davis, Louisiana St., stated that he is concerned with the lot being so close to family- oriented neighborhoods and being near places where children play and walk their dogs. He feels that the residents impacted by the propane yard should receive a report of the environmental impact findings. Brian Viall, an engineer with AE2S, explained that he has been working with the City of Belgrade' s Public Works Department on the City' s water and wastewater engineering needs. He then explained that he did not have any direct experience with NFPA58 codes, but he suggested the Council consider that if the proposed propane yard is relying on any chemical or foam fire suppressants, there could be a potential Per- and poly- fluoroalkyl substances ( PFAS) in those Page 3 of 8 suppressants. Mr. Viall noted that PFAS is a growing concern in the drinking water industry, especially when your water supply relies entirely on ground water. He did mention that there are PFAS free foams that can be considered. Mayor Nelson called a third time for public comment. Brad Gjermo, CEO of Rocky Mountain Supply, stated that he welcomes Big Sky Propane. However, he warned that he had been a part of a propane explosion that resulted from a delivery truck in the past. He noted that this particular explosion had happened in the countryside, so it did not impact any residents, and everyone was safe. However, he did want to warn that propane hazards can come from trucks as well as the yard itself. He also wanted the Council to consider what the presence of a propane yard that close to the railroad could do to property values, especially when the yard would not have an onsite office. Mayor Nelson called a final time for public comment. There being none, public comment was closed. Mayor Nelson then asked inquired whether the Applicant or City of Belgrade staff knew how far Rocky Mountain' s offices would be from the tanks. Stein stated he did not know the exact distance, but he estimated it was within 400 feet. Mr. Coon then noted that the letter said it was 300 feet. Council Member Meis asked if the changes in zoning district instigated the need for a CUP in this case. Karp mentioned that the zoning change took effect in August 2023, but what triggered the CUP process was that the location was strictly for propane storage. ACTION: Council Member Meis moved to grant the Conditional Use Permit request of Big Sky Propane( Burch Tree Realty, Inc.) and that it does meet the requirements of the Belgrade Zoning Code pursuant Section 10. 6. 12 H. Conditions and Safeguards for approval, with the Planning Board and Staff recommended conditions. Council Member Doyle seconded the motion. There was a roll call vote: Council Member Guffey: " No. The public safety factor and the factor that we already have two propane facilities in the downtown corridor is my decided vote. We don' t need a third propane tank there." Council Member Meis: " For. Yes." Council Member Simon: " No. My reason is that I don' t think it' s harmonious with our growth policy and what we are trying to do with the downtown core. We spent a lot of time in the Urban Renewal District trying to improve that part of town. I believe there are better places. You can go across on the west side of Jackrabbit. We' ve got lots of land over there that could be a great place for a tank farm and there' s already a propane facility over there as well. That' s my reasoning." Council Member Menicucci: " No. For the same reason, Jim said. We did our planning and the Urban Renewal section to revitalize the downtown. I just don' t think it meets what we are Page 4 of 8 looking for in the downtown area. I know that the same, there is other lands that you can purchase, and it would be fine there, but we are trying to revitalize the downtown, not industrialize it." Council Member Doyle: " I would say ' No' for the same reasons. It doesn' t fit there. It doesn' t fit the growth policy." Council Member Mattimoe: " I also vote ' No.' My reason is outlined in section 1D: would not be hazardous or disturbing to existing or future neighborhood uses. And again, to reiterate, I think that' s not what we are looking for, for our downtown core neighborhoods." Motion Failes 5 - 1. Council members voting " aye": Meis. Council Members voting " no": Guffey, Simon, Menicucci, Doyle, and Mattimoe. Council members Absent: None. Discuss and Consider Approval of the Proposed Changes to the Utility Rate Structure and Increased Utility Rates. Executive Director of Financial Services VanKirk presented a brief PowerPoint presentation on the need to raise the water and sewer rates in Belgrade. It also addressed what that process looks like. Mayor Nelson asked where this rate increase puts Belgrade, relative to the rest of the cities in Montana. VanKirk said Belgrade' s current utility rates are the fourth lowest in Montana. Assistant City Manager Tryon noted this was true, but stated the proposed rate increase would make Belgrade' s rates the second or third highest. However, Tryon also noted that almost every other city is doing a rate study of their own and many may increase their own rates and put them back ahead of Belgrade. City Manager Cardwell pointed out that the current utility rates were established before Covid and before the large increase in inflation. When the current utility rates were set, the average public works technician in Belgrade was making less than $ 15 per hour. Since that time the City of Belgrade has had to raise pay for these employees significantly, to stay competitive with other city governments and with the significant increase in the cost of living in the Gallatin Valley in recent years. Cardwell noted that the utility rate increase that the City of Belgrade is proposing would still be significantly lower than the current average utility rates for large cities in Montana. He further that it was advised recently discovered that the City of Bozeman will soon be proposing a 25% or greater increase in their utility rates. Cardwell also noted many other cities are doing their own studies and could soon raise their rates as well, which would mean many other cities will soon have higher rates than what Belgrade is currently proposing. Council Member Simon asked what months the City used to average the sewer rates. VanKirk explained that the range between November and February was used to average the sewer Page 5 of 8  rates. She stated that after they run the process, they run reports for outliers with exceedingly high rates. They then check those high rates/ averages to see if those customers had a malfunctioning meter or an incorrect month was substituted for that account. Mayor Nelson called for public comment. Angie Huang, owner of the Quality Inn in Belgrade, stated that she is not using the City of Belgrade' s water but is using their sewer. She said she is concerned about the proposed 25% increase in rates for this year. She further noted that a 15% increase next year would be hard on small business owners like herself, and she hopes the City will consider slowing down the increase. Assistant City Manager Tryon confirmed that Bozeman' s rates are higher than Belgrade' s. He also said it looks like Bozeman' s rates will stay higher, based on what they are predicting for their rate increase. Mayor Nelson called a second time for public comment. Don Davis, who lives on Louisiana St., stated he is concerned about the rate increase' s impact on people who live on a fixed income. John Rosa, owner of several properties in Belgrade, asked if the rates in Bozeman are lower or higher so he could compare. He also stated he wanted to know if his sewer is metered. VanKirk confirmed Rosa' s property is metered, but it is sewer- average. Jerry Beard, residing at 301 MeCewen Dr., stated he believes the rates are higher than they need to be. Mayor Nelson called a last time for public comment. There was none ACTION: Council Member Meis moved to approve and adopt Resolution 2024- 10, raising rates as stated for users of the municipal water and wastewater systems, with new rates taking effect on July 1, 2024. Council Member Guffey seconded the motion. All voted aye, motion carried unanimously. The Council briefly discussed the need for this increase and how it will help with the City' s staffing problems. They also acknowledged that they, as Belgrade residents, would also be affected by this increase. Discuss and Consider Approval of the Fiscal Year 2025 Preliminary Operating Budget. Executive Director of Financial Services VanKirk gave a brief PowerPoint Presentation on the Preliminary Operating Budget. She explained that this resolution is just to adopt the operating budget, not a final budget. Council Member Meis asked if there was a difference in the residential and commercial property per- lot fee. VanKirk answered that there is not. The Council asked if there was a way to Page 6 of 8 change that. Cardwell said there is, but the City will have to look into a long- term answer on that issue, as current fees were set when Belgrade was much smaller. There was a brief discussion about whether the City could implement some kind of local option sales tax to help offset the cost of street maintenance. Cardwell explained that they cannot legally implement one until the law is changed. Public Works Director Uljua confirmed that the level of service is slowly declining due to a lack of staff. Mayor Nelson called three times for public comment. There was none. The Council had a brief discussion about which option to choose. Council Member Simon asked if the amount could be lowered. Cardwell said he would comment on that in his managers' report. ACTION: Council Member Meis moved to approve the preliminary budget for Fiscal Year 2025 with option C, two Employees for the Street Maintenance Fund. Council Member Menicucci seconded the motion. All voted aye, motion carried unanimously. REPORTS Mayor Nelson reported that he would not be at the August 5th meeting. He asked Meis if he would stand in, and Meis confirmed that he would. City Attorney Ramler reported that this will be the last meeting he' ll attend as the City Attorney. He stated he appreciated the good run he' s had collaborating with the City. City Manager Cardwell turned some of his time over to the Director of Public Works Uljua. She provided an update on one of MDT' s projects, the Belgrade Intersections Improvements Project. She stated a well- attended open house was held on June 11th, 2024, at the River Rock Community Center. The Project will address seven intersections, five of which are inside the Belgrade city limits, with other two others that are on Amsterdam Road near River Rock. Improvements will include upgrading signals, improving the ADA sidewalk features, adding turn lanes, and installing a mini roundabout. All of the intersection improvements will be completed in 2028, except for the Jackrabbit and Amsterdam intersection. Uljua noted that MDT worked with Barnard to move that timeline up to 2025. Uljua also informed the Council that BNSF would be doing some railway improvements on the Jackrabbit Ln. and Main St. intersection. She noted these improvements will be done during the day, likely causing significant delays at that intersection on June 19th and 20th. Drivers are cautioned to use an alternate route. Cardwell then spoke, informing the Council that the City will be focusing on a local occupancy tax instead of a local option sales tax. Cardwell also mentioned that this would be the last time the current Belgrade Library Director, Gale Bacon, would be attending a Council meeting as the Library Director. Bacon thanked Page 7 of 8 the City for supporting her and said she would miss everyone. The public was informed there would be a goodbye party for Director Bacon at the Belgrade Community Library from 4 pm to 6 pm on June 21st, 2024. FOR YOUR INFORMATION Council Member Mattimoe advised that she went to the Parks Board meeting, which was very well attended. She mentioned there might have been some misunderstanding on the website regarding public comment on the master plan. She hoped they were able to answer everyone' s questions. Council Member Doyle advised that he had attended the Senior Center Board meeting, where they discussed space and using the school gym for fitness classes. He also mentioned that the Senior Center is still busy with Meals on Wheels and discussed their upcoming events. Council Member Menicucci mentioned that the Water Quality Board will discuss their budget at their upcoming meeting. Council Member Simon attended the Fire Board meeting. H said they discussed trying to get MDT to put some warning lights up in front of the station on Airway Blvd. for the engines exiting the fire station. He also mentioned that the new Fire Chief Jay Whittwer was in attendance, and this was his first meeting. Whittwer laid out his one- hundred- day plan at the meeting. Council Member Meis mentioned that the Gallatin Urban Transportation District would hold its meeting on June 19th, 2024, at 3: 30 pm at the HRDC building. He noted anyone was welcome to attend. Council Member Guffey thanked the City staff for their hard work on the budget and congratulated Gale on her retirement. Mayor Nelson mentioned that the weeds in the Belgrade Plaza are growing strong. ADJOURN Council Member Simon moved to adjourn the meeting at 9: 14 pm. Russell C. Nelson, Mayor Attest: Can' ilte• Gr& ry City lerk x:'; 11 Page 8 of 8 i r l