MINUTES OF THE REGULAR MEETING
DILLON CITY COUNCIL
February 20, 2008
COUNCIL
PRESENT: Frank Mastandrea, Tom Straugh, Mike Riley, Jim McIsaac, Richard Achter, David Spehar, Al Lawson, Brittany Kailey, and Mayor Martin Malesich.
STAFF
PRESENT: W.G. Gilbert, City Attorney; John Gutcheck, Chief of Police; Scott Marsh, Fire Chief; Marie Habener, Library Director; Ty Cobb, City Treasurer; Faye E. Jones, City Clerk; and Amber K. Herzog, Deputy City Clerk.
STAFF
EXCUSED: J.S. Turner, Director of Operations.
ABSENT: Virginia Compton, City Judge.
Mayor Martin Malesich called the meeting to order at 7:00 PM. Mayor Malesich asked Councilperson Straugh to lead the pledge of allegiance.
1. The first order of business was the approval of the February 6, 2008 Regular Council Meeting Minutes. Councilperson McIsaac moved to approve, seconded by Councilperson Spehar and approved.
MOTION APPROVED. Note: Councilpersons Straugh and Riley abstained from voting due to absence from the February 6, 2008 meting.
PETITIONS AND COMMUNICATIONS:
1. Letter to the Mayor signed by Frank Mastandrea and Dr. Tom Straugh regarding the refusal to implement policy as set by the City Council. Councilperson Straugh referred to the letter to members of the City Council from the Mayor (Petition and Communication #2) in which Mayor Malesich agreed to any and all public requests on the City Public List Serve with a written request required by individuals, and declared the topic matter resolved. Councilperson Mastandrea continued the issue stating this was the second offense and if it happens again the Council should hire an attorney and charge the Mayor with misconduct because Charter states Council develops policy.
2. Letter to Members of the City Council from the Mayor. (Item discussed above.)
3. Invitation letter from Beaverhead FFA Alumni Assn. To an appreciation luncheon on February 19, 2008 from 12:00 to 2:00 P.M. at the National Guard Armory to recognize important members of the Ag Community.
4. Letter from Robert Peccia and Assoc. regarding Blacktail Creek Project. A public meeting will be held February 27, 2008 at 7:00 P.M. at the Commissioners Meeting Room in the County Courthouse to discuss the Blacktail Creek Project with the engineering firm.
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PUBLIC COMMENT ON PUBLIC MATTERS NOT ON THE AGENDA:
Mayor Malesich asked the citizens present if they wished to address the council. Vicky Thorton, Assistant Manager of the Humane Society asked the Council for a letter of support regarding a grant received for community wide spay and neuter clinic on April 25 – 26, 2008 at the National Guard Armory. Councilperson Lawson moved to send a letter of support, seconded by Councilperson Kailey and unanimously approved.
MOTION UNANIMOUSLY APPROVED.
Councilperson Kailey stated Sam Yetter, Court Clerk, told her about vandalism in the foyer (where the clerk’s desk/computer and files are located) of the City Court office area in City Hall and after a Council discussion regarding security issues Councilperson Straugh moved to suspend the rules in order to make a motion for the evening, seconded by Councilperson Riley and unanimously approved.
MOTION UNANIMOUSLY APPROVED.
Councilperson Kailey moved to close City Hall to all functions immediately until the security issues with the City Court are completely resolved and that all locks be re-keyed, and all personal items be removed from the premises by 4:00 P.M. on Friday, February 22, 2008, seconded by Councilperson Spehar and unanimously approved.
MOTION UNANIMOUSLY APPROVED.
MAYOR’S REPORT TO THE CITY COUNCIL:
1. City Audit Report – Fiscal Year 2004-2005 and Fiscal Year 2005-2006 presented by Robert Denning of Denning, Downey & Associates, P.C.
Mr. Denning stated he was very pleased and thankful for Faye Jones’ cooperation and help with the audit.
a. Transfers between funds: The City uses transfers to reimburse funds.
Recommendation: We recommend that the City only utilize transfers to permanently move money between funds.
b. Exceeding Budget Authority: The City of Dillon exceeded its budget
authority in the Bus Replacement fund by $32,473.
Recommendation: The City should limit expenditures to the amount appropriated.
c. Mill levy limitations: The City levied more mills than it was allowed in
the Group Insurance fund.
Recommendation: We recommend that the City review the mills levied in future years to be in compliance with State Statutes.
d. Capital Asset Reporting: The capital asset depreciation schedule had
several errors. In addition a physical inventory has not been performed in several years.
Recommendation: We recommend that the City perform a physical observation of all capital assets, review the depreciation and related accumulated depreciation schedule and make any necessary corrections.
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e. Budgets-Exceeding cash reserve requirements: The City’s cash reserve
in the Human Service fund exceeded the amount allowed by Statute.
Recommendation: We recommend that the City limit cash reserves in levied funds to ½ of appropriations.
f. City Court – Time Pays: The City Court often allows defendants to pay
their fines over time. The Court does not have policies for the collection of time pays. The Courts’ are not required to provide for time payments. However, if they provide this option then they must accept the fiduciary responsibility of collection.
Recommendation: We recommend that the City Court establish policies for the collection of time pays. These policies include:
1. Methods for writing off uncollectible receivables.
2. A process for sending receivables to collection agencies.
3. Registering with the State for collection through the State tax refunds and drivers license withholding.
4. Issuing warrants for non-payment.
5. Mailing out monthly statements.
g. City Court – Segregation of duties: The City Court does not have a
system that segregates the duties of cash handling from recording original entries. The Court Clerk is responsible for receipting cash, posting original entries, reconciling daily cash, preparing deposits and reconciling the bank statements. The City should strive to increase controls over cash handling to reduce the risk of theft and increase public confidence in the handling of public money. Internal controls in the City Court are weakened in the areas of cash receipting and recording.
Recommendation: We recommend that the functions of cash handling and posting original entries be segregated to the greatest extent possible. The following is a list of suggestions that may improve the segregation of duties weakness in the City Court:
1. Provide a monthly report to the Police Chief of the disposition
of all citations.
2. The judge can perform random (documented) checks of the
system from citations obtained from the Police Chief.
3. The City can separate the cash collections part of the court
system from the accounting functions by having other City staff collect court receipts and report the collections to the court for recording.
h. Water and Sewer cash receipting: The water and sewer clerk receipts
cash, records collections, prepares deposits and makes corrections to customer accounts. A good system of internal control should be established to segregate the functions of cash handling and posting of original entries.
Recommendation: We recommend that the Mayor or the City Clerk monthly review all adjustments to the water and sewer customers for accuracy.
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i. Managements Discussion and Analysis: The MD &A was not included
in the Annual Financial Report (Mr. Denning withdrew this finding).
Recommendation: We recommend that the City prepare the MD&A in future years as required by GASB #34.
j. Police Pension Funding: The current contribution rate to the Police
Pension Trust fund is not adequate to maintain the system on an actuarially sound basis.
Recommendation: We recommend that the City explore all available options to secure additional long term funding for the Police Pension Trust fund and maintain the system on an actuarially sound basis.
Mr. Denning stated once the State received the first two years of the audit, he would submit the next year to them.
2. Klasen – Link Minor Subdivision – water main loop reconsideration. Mayor Malesich stated Mr. Klasen and Mr. Link requested the matter be on the next agenda as they were not able to be present at the meeting. Councilperson Riley stated the Planning Board flat out denied the request from these developers. The issue was dropped by the Council.
3. Fire Hall Report January 2008 Expenditures. Councilperson McIsaac moved to approve, seconded by Councilperson Achter and unanimously approved.
MOTION UNANIMOUSLY APPROVED.
4. Citizen’s Requests’ Report was presented by Mayor Malesich for Council review. Councilperson McIsaac moved acceptance, seconded by Councilperson Achter and unanimously approved.
MOTION UNANIMOUSLY APPROVED.
REPORTS OF OFFICERS AND BOARDS OF THE CITY:
CITY ATTORNEY – W.G. Gilbert, III
City Attorney Gilbert gave a brief review of the cases he has worked on since the last council meeting. He stated the Police Officer’s Association has appealed the judge’s decision throwing the case out of court. The City of Dillon will be served with a lawsuit from James & Betty Stewart for damages regarding an unlawful arrest. Mr. Gilbert will turn this matter over to the insurance company. Mr. Gilbert also mentioned he has numerous DUI cases/trials in the forthcoming weeks.
PLANNING BOARD – Mike Riley, Chairman
1. January 22, 2008 Planning Board Minutes: Councilperson McIsaac moved to accept, seconded by Councilperson Spehar and unanimously approved.
MOTION UNANIMOUSLY APPROVED.
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Chairman Riley reported the zoning scheme is going forward. The growth policy is being updated by a sub-committee. Bozeman City Planner, Chris Saunders, will address planning issues here in Dillon on March 11, 2008 at 6:00 P.M.
2. Planning Board Growth Plan Sub-Committee – Larry Volkening Chair
a. Minutes of the City Planning Board Growth Plan Sub-Committee Meeting for January 28, 2008.
Assignments to committee members were distributed for input on statements,
visions and timelines for future business.
b. Minutes of the City Planning Board Growth Plan Sub-Committee Meeting for February 10, 2008.
The committee continued discussion on the status of the City Growth Plan.
3. Zoning Commission: Public Hearing regarding Idaho Street. Decision will take place on February 26, 2008 at 6:00 P.M. and the recommendation will be forwarded to the Council at the next Regular Meeting.
The recommendation for two members to serve on the Community Planning Board was broke with a tie by President Riley. The recommendations are: Margareta Knopik and Kelly Rowe.
The Council discussed the adoption of general building codes and Councilperson Riley moved to refer the matter with alacrity to the Health & Welfare Committee for recommendation, seconded by Councilperson Straugh and unanimously approved.
MOTION UNANIMOUSLY APPROVED.
DIRECTOR OF OPERATIONS – J.S. Turner
Zoning Compliance Certificates Applied for:
1. #1986-Zone A- Kelly Rowe Investment Properties – 935 S. Atlantic St.
3 – 40’x56’ Multi-Family Buildings and 6 – 20’x22’ garages.
Zoning Compliance Certificates Issued: None
Variance Applied For:
1. #1986-Zone A- Kelly Rowe Investment Properties – 935 S. Atlantic St.
3 – 40’x56’ Multi-Family Buildings and 6 – 20’x22’ garages.
POLICE CHIEF – John Gutcheck
Officer Activity Report for the month of January 2008: Chief Gutcheck presented the report to the Council. Councilperson McIsaac moved to accept, seconded by Councilperson Straugh and unanimously approved.
MOTION UNANIMOUSLY APPROVED.
Chief Gutcheck informed the Council about an incident that involved discharge of firearms, officers on administrative leave and attending critical incident
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debriefing/counseling. No officers were injured and the apprehended suspect was hit in the calf.
FIRE CHIEF – Scott Marsh – No report
CITY COURT - Judge Virginia A. Compton – The January 2008 Judge’s Report was presented; Councilperson McIsaac moved to approve, seconded by Councilperson Lawson and unanimously approved.
MOTION UNANIMOUSLY APPROVED.
TREASURER – T. P. Cobb
1. Cash Report for January 2008.
2. Investment Report for January 2008.
Councilperson McIsaac moved to approve the Cash & Investment Reports, seconded by Councilperson Straugh and unanimously approved.
MOTION UNANIMOUSLY APPROVED.
Councilperson McIsaac commended Mr. Cobb on the job well done in regard to his efforts to assist the auditor.
LIBRARY BOARD – Marie Habener
Councilperson Riley stated the Library Board had voted to not move forward with the solar panel project due to risk factors verses cost.
STANDING COMMITTEES:
JUDICIARY – Chairman Mike Riley – No report.
FINANCE – Chairman Jim McIsaac – Mentioned they had a meeting that day with the auditor and will have a report next meeting.
CITY HALL – Chairman Dick Achter – They had a meeting Tuesday, February 19, 2008 and toured the facilities. A report will be forthcoming.
FIRE AND ORDER – Chairman Frank Mastandrea – No report. Would like the Police Retirement matter on the next agenda.
PARKS AND PLAYGROUNDS – Chairman Al Lawson – No report. Looking into redesigning the entrance to Vigilante Field with faux rock.
CEMETERY – Chairman David Spehar – No report.
HEALTH AND WELFARE – Chairman Brittany Kailey – No report. Requested the Codes from J.S.
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STREETS AND ALLEYS – Chairman David Spehar – The January 28, 2008 Meeting Minutes were presented and moved for approval by Councilperson McIsaac, seconded by Councilperson Riley and unanimously approved.
MOTION UNANIMOUSLY APPROVED.
During the Street & Alley meeting, a motion was passed unanimously for the City Attorney to write an ordinance establishing speed restriction of 15 mph a block around the schools along Thomsen and Center.
WATER AND SEWER – Chairman Tom Straugh – The February 8, 2008 Meeting Minutes were presented and moved for approval by Councilperson McIsaac and seconded by Councilperson Spehar and unanimously approved.
MOTION UNANIMOUSLY APPROVED.
During the Water & Sewer meeting, a motion was passed unanimously to defer water rate adjustment action until sufficient detail and scope was obtained. A unanimous motion was passed to work out a contract to examine and clean the sewer lines near wells 3 and 4. A unanimous motion was passed that Mr. Gilbert be directed to continue working towards permitting for well 5. A unanimous motion was passed to provide potential annexation notices to the owners of properties utilizing City utilities inviting them to the next Water and Sewer Committee meeting. A unanimous motion was passed requesting Mr. Gilbert to bring proposed ordinances to the next committee meeting.
There being no further business the motion to adjourn was made by Councilperson McIsaac, seconded by Councilperson Riley and unanimously approved.
MOTION UNANIMOUSLY APPROVED.
The meeting adjourned at 9:38 P.M.
The above minutes were transcribed from a tape recording of the actual meeting and such minutes include the substance of all matter proposed, discussed or described.
Approved by:
_____________________________
Faye E. Jones, City Clerk
ATTEST:
________________________
Martin R. Malesich, Mayor
Submitted by:
_____________________________
Amber K. Herzog, Deputy City Clerk