PHILIPSBURG TOWN COUNCIL MEETING MINUTES
MARCH 19, 2024
6:00 PM Philipsburg Town Hall
Council in Attendance: Mayor Daniel Reddish, Carl Sundstrom (online), Jason White, Gary Fujinami, Scott Lyons, Loraine Dell-Bishop, John Laigaie. Others in attendance: Deputy Clerk Cyndia Reddish, Special Projects Maureen Connor (online), Crew Foreman Ed Roseboom, Amelia Wood (online)
Minutes of Prior Meeting
Councilman Lyons made the motion to approve the minutes from March 5, 2024, with an edit from Councilman Sundstrom, Councilman Fujinami seconded the motion, and it was approved unanimously.
Bills Payable
Councilman Fujinami made a motion to approve Triple Tree Engineering Invoice #00001 for $5,507.50, Councilman Laigaie seconded the motion, and the motion passed unanimously.
Councilman Laigaie made a motion to approve HDR Engineering Invoice #1200602738 for $2.366.90 and $2,222.86, Councilman Fujinami seconded the motion, and the motion passed unanimously.
Councilman Fujinami made a motion to approve HDR Engineering Invoice #1200602740 for $6470.07 and $6,354.84, Councilman Laigaie seconded the motion, and the motion passed unanimously.
Councilman Fujinami made a motion to approve Ricoh Invoice #CON-10375226-002-02222024 for $104.79, and HDR Invoice #1200602742 for $1,765.49, Councilman Laigaie seconded the motion, and the motion passed unanimously.
Foreman Roseboom explained the installation procedure to install this second steel tank, fill it and use it while draining the old tank and repairing that, then there will be two useable tanks.
Claims Approval List
Councilman Sundstrom questioned the Montana Department of Revenue gross receipts for holding. Mayor Reddish explained that it has to do with straightening out taxes, Maureen Connor said construction projects get taxed and this is paid out of the grant money.
Councilman Sundstrom questioned the claim from Reed Speegle for $730, Mayor Reddish said this was for the end of year finance report and Mr. Speegle will work through the auditing period.
Councilman Sundstrom questioned the penalty fee FY23 $95 claim, Mayor Reddish said the fee was not able to be waived so it would be processed within the next couple weeks. Councilman Lyons made a motion to approve the claims, Councilman Fujinami seconded the motion, and it was approved unanimously.
Statement of Expenditures
Councilman Dell-Bishop said the Parks Repairs 3% was coded wrong. Mayor Reddish said because it was running through the grant systems was why it looks the way it does. Folding it into the regular budget will get amendments to it eventually.
Councilman Fujinami made a motion to approve the financials, Councilman White seconded the motion, and it was approved unanimously.
Payroll Summaries
Review of three payroll summaries:
Councilman Sundstrom asked about a garnishment, Mayor Reddish said it was for an employee. Councilman Sundstrom made a motion to approve 2/20/24 payroll summary, Councilman Lyons seconded the motion, and it was approved unanimously.
Councilman Dell-Bishop made a motion to approve the 3/5/24 payroll summary, Councilman Lyons seconded the motion, and it was approved unanimously.
Councilman Lyons made a motion to approve the 3/18/24 payroll summary, Councilman Dell-Bishop seconded the motion, and it was approved unanimously.
Journal Vouchers
Council acknowledged that the totals match. Councilman White made a motion to approve the Feb/24 – Mar/24 Journal Vouchers, Councilman Lyons seconded the motion, and it was approved unanimously.
Sewer Lagoon Update
Regarding change order, Mayor Reddish said the wages correction modification will not affect or cost the town anything. Councilman Lyons made a motion to approve the change order, Councilman Fujinami seconded the motion, and it was approved unanimously.
Regarding second change order, Mayor Reddish said the excavator is onsite, DEQ and Town gave permission to go ahead with only 180 days to complete, Town needs to sign the Notice to Proceed to start the clock ticking.
Mayor Reddish asked for a water update. Foreman Roseboom said that the pump is failing before the project to replace it could start, so the pump will need to be rebuilt. Ms. Connor said she talked to the grant manager who thinks town will cover the cost of the rebuild.
Foreman Roseboom said the Broadway/N. Montgomery plans will be ready to go next week.
Ms. Connor said the three projects need to be advertised: Broadway/N Montgomery, Silver Springs, and the tank.
Resort Tax
Mayor Reddish said an email was sent out to postpone Monday meeting due to lack of regular staff present, and wants more details planned out and finalized. Suggested to reschedule regular course of meetings on the ordinance part. Mayor Reddish requested to be more informed of schedules and work meetings and to create an agenda. Thursday meeting at 9:00 am is still on.
NEW BUSINESS
Great West Amendment #2
Change order regarding treatment system allows contractor to purchase from Nexom. Ms. Connor said $63,000 paid part and is reimbursed from the State. Ms. Connor recommended keeping straight payments and supports the change order. Councilman Lyons made a motion to approve the amendment change order, Councilman Fujinami seconded the motion, and it was approved unanimously.
Nexom Change Order
Master Services Agreement carries up to the project, actual project management budgeted for out of Grants, total of $729,900. Councilman Fujinami made a motion to approve the change order, Councilman Lyons seconded the motion, and it was approved unanimously.
Regarding the lagoon project Foreman Roseboom said the engineer will be working on the DOT required signage entering Highway 1. Mayor Reddish said the sheriff has been informed about increased traffic.
Bank Accounts
Mayor Reddish said the Town Clerk has reviewed all the Town bank accounts and found that updates to the names on the accounts were necessary. Take old Councilmembers and Judge Fratzke off the accounts and add all new Councilmembers: Carl Sundstrom, Jason White, Gary Fujinami, Scott Lyons, Karen Lorraine Dell-Bishop, John Laigaie, and Mayor Daniel Reddish (Saving **6289, Checking **5588, Checking **6274, Checking **6688, CD ****16157,CD****-16154). Close Checking account **6274, Checking account **6688, Savings account **6289, and cash in both CDs. Councilman Lyons said there is a CD up for renewal at the end of March that should be changed to a new CD with a better interest rate. The town has approximately $117,000 sitting in five accounts. The state will not allow the town to put up for collateral on a loan, consequently a loan for $30,000 would have a 10% interest rate. The money in the five inactive accounts would be better utilized by pooling them into a money market account that gives 4.45% interest. Councilman Lyons also said the Town could establish a $30,000 line of credit at 7.5% interest along with the money market account and this would be more useful than getting a loan. Councilman Lyons recommends closing the three checking accounts and two CDs at the end of March and putting the total into one money market savings account at 4.45% interest. This will allow town access to cash for emergency issues in the interim until getting reimbursement from outside sources. An example of this is being able to pay contractors in a timely manner. Ms. Connor said it is hard for small towns to save enough money to match grant funds, and said this creates a known cash reserve which can be up to 30% of the general fund. Councilman Lyons stated to approve the closing of these three checking accounts and two CDs, and put the money into a high yield money market savings account as long as this does not break any limit rules, and establish a maximum line of credit. A motion was made by Councilman Dell-Bishop and seconded by Councilman Fujinami, and was approved unanimously.
NON-AGENDA ITEMS
Councilman Dell-Bishop asked about Chris Walden’s brown water issue and Foreman Roseboom said it was caused by galvanized pipes within
Walden’s house.
Councilman Sundstrom asked Foreman Roseboom about the value of taking water samples upstream and then downstream in Drummond. Foreman Roseboom said the samples are taken monthly above the lagoons and quarterly below the lagoons for the past five to seven years. Nutrients are higher above the lagoons. Ms. Connor mentioned septic leeching from Rumsey and Georgetown, samples have been continuing for a long time.
Councilman Lyons asked for the status of a small leak at the top of Easy Street. Foreman Roseboom said the leak was running at 8-12 gallons/minute and the crew will get to it when the ground thaws.
Mayor Reddish said closing is today on PSC requirement submittals, three lines response.
Foreman Roseboom said Tyler Gentry is graphing water usage during May to September for the past three year period. The amount of water produced is 1.23 million gallons. This costs 2 cents per gallon to treat. 1.23 million gallons at 2 cents/gallon totaled $125,000 for May-September period. Ms. Connor asked if there was tracking for the other months September – April and requested graphing for all months.
ADJOURN
Councilman Lyons made a motion to adjourn the meeting, Councilman Dell-Bishop seconded the motion, and it was approved unanimously.