Charlie Zitnik with D.A. Davidson led a discussion on street project financing options at the Nov. 23 meeting of the Gallatin Board of Aldermen.
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Zitnik confirmed that since the street project doesn’t involve the water system, USDA approval isn’t required to obtain financing. He did state that if a major street resurfacing project is planned, continued maintenance is needed since streets have a short life.
The board agreed to have Mr. Zitnik run financing terms for a $75,000 annual payment for seven years funded through the transportation sales tax. The funding would be used to resurface West Grand and possibly East Berry and Corrine. Only using $75,000 of the transportation tax would allow for the remaining transportation tax funds to be used for chip/seal and hot mix projects.
Zitnik said that other cities have proposed by ballot measure to remove the “sunset” portion of sales tax for their citizens to vote on. If the sunset were removed it could help secure longer funding terms for projects.
Other funding needs were disclosed. Discussion was held on a possible option of rolling in the dump truck financing and AMI metering financing with the street resurfacing project. Mr. Zitnik requested the board state the timing needed for financing. He said if the board didn’t need the street or AMI meter system financing immediately that it would be in their best interest to wait until the financing is needed to avoid interest payments at this time.
The board agreed to move forward with H.L. Sinkhorn for tree trimming services since no other bid has been received. The board only agreed to $20,000 of tree trimming which was budgeted in 2020.
Public Works Director Morey stated he has contacted Rural Water to assist in researching the water issue on Cedar Street. Crews have dug up Cedar Street several times but haven’t been able to locate the root cause of the water in the street. Rural Water will use correlators to help identify the original source of the water flowing in the street.
Mid-States is currently still in town taking down old cable lines and installing new fiber lines, and their tree trimmers are now addressing problem areas. Morey stated there are 8 to 10 different small areas in town that our electrical crew will need to repair before Mid-States can move into that area; however, the City of Gallatin can bill Mid-States for the work that is performed in those areas.
Morey provided two AMI system metering bids for the board to consider. Details of the cost and different methods of data collection for the two systems were discussed. Morey stated we have hired People Service to utilize their valve exerciser to address a few areas in town. Alderman Lockridge is recommending that the board move forward with the dump truck and AMI financing options and the board wait to consider the street project financing for West Grand specifically.
The council directed Administrator Lance Rains to start seeking CDBG Grant Funds for a large street project in the future.
Police Chief Mark Richards provided a few updates regarding property complaints throughout the town and submitted an activity report dated Oct. 26, 2020, for the board to review: two welfare checks, two domestic disturbances, three animal control, one peace disturbance, two property damage, one suspicious person circumstance, one dog at large, four medical assists, two harassments, two juvenile problems, two suspicious activity, one fire, one citizen assist, one theft, one civil standby. There are no dogs in the pound.
The council approved accounts payable in the amount of $41,799.45.
In old business, Administrator Rains, Public Works Director Morey, and Alderman McCann performed two interviews for engineers to upgrade the 2400 Electrical System. Discussion was held on the engineers. Rains recommended the board consider working with the larger engineering firm in order to establish a relationship for other possible projects in the future; for example, a pole replacement program to replace the electrical poles through town that were installed 30 years ago. The council unanimously accepted Finley Engineering to upgrade the 2400 system at the estimated amount of $14,750.
The council also unanimously accepted the 2021 health, dental, vision and life insurance quotes with Heritage Companies/Todd Childers.
The board agreed to postpone discussion of the dump truck financing options until the next meeting.
In new business, Bill No. 2020-20, Ordinance No. 1249-20, was read twice by Mayor Barb Ballew. It is an ordinance establishing rules related to multiple unit commercial structures to be billed for utility cost of service. The council unanimously voted to approve bill No. 2020.
Regarding cost of service rates for commercial and residential, the council unanimously approved the billing of all apartments at Rest Easy Apartments as residential users across all utilities; furthermore, pointing out that all residential users in the City of Gallatin are to be charged the current cost of service for electric, water, and sewer as follows:
Current Rates as of November 2020
- Electric Cost of Service – Residential $10.00
- Electric Cost of Service – Commercial $20.00
- Water – First 1,000 Gallons $38.95
- Over 1,000 Gallons $7.25 per 1,000 Gallons
- (Multi-unit cost of service – additional $31.70 per unit)
- Sewer – First 1,000 Gallons $25.50
- Over 1,000 Gallons $4.50 per 1,000 Gallons
- (Multi-unit cost of service – additional $21.00 per unit)
The board held a closed session to consider the hiring, firing, disciplining or promoting of particular employees.
The meeting adjourned at 9:23 p.m.
The above are the unapproved minutes of the regular meeting held on Nov. 23, at the Gida Board Room. In attendance were Mayor Barbara Ballew, Board President Carol Walker, Aldermen Steve Evans, Dan Lockridge, Dan McCann, City Administrator Lance Rains, City Clerk Hattie Rains, Public Works Director Mark Morey, Police Chief Mark Richards, and Charlie Zitnik with D.A. Davidson.