Minutes

CITY OF TOWNSEND COUNCIL MEETING

Minutes for March 18, 2025

Call to Order:  Mayor Rauser called the meeting to order at 6:30 p.m.  In attendance are Nate Brown, Angie Wintrow, JB Howick, Vivian Boaz, Doug Sitton, Todd Rolfs, Nichole Simon, Misty Masolo, Debi Randolph, Kenneth Nelson,  Jim & Amber Burgess, Chase Ragen,  Eric Crusch, and Kari Williams

Pledge of Allegiance:  The Pledge of Allegiance was recited by all. 

Public Comment:  Mayor Rauser asked for public comment on anything not on the agenda but under the City’s jurisdiction. 

Minutes from March 4, 2025:  JB made a motion to approve the minutes from March 4, 2025.  Vivian seconded the motion.  All in favor, motion carried.

Guest, Chase Ragen:  Chase spoke on the City’s water ordinance that states “Full water rates must be paid for every part of a building in which water is introduced, and for all fixtures or outlets connected with the service pipes; and no deductions will be made for rooms not in actual use, or on the plea that some of the occupants do not use the water, or that some of the fixtures are not used.  The charge for the use of fixtures, as long as the water is turned on, can only cease when they are permanently disconnected from the service pipe.”  He stated that he’d like to come up with a solution on the water rates.  Chase asked what the rates are based on.  Mayor Rauser stated that they are based on current operating costs, project costs, debt service, and future repairs.  Chase asked how much the water project costs.  Mayor Rauser stated that the total is approximately fourteen million dollars,  and part of the funding is a five million dollar loan that will be forgiven and several grants.  Chase stated that the current rates probably won’t be going down anytime soon.  Mayor Rauser stated that she’s been advised by DEQ to give the current rates at least a year before deciding if they can be lowered.  Chase gave a timeline from when he purchased the building from the previous owners, and the utility bill showed that only one unit was being charged. He also stated the City did not give him proper notice that he would be charged for the apartment upstairs of the Betsy.  He stated that he was planning for the increased water rates, but not for being charged for an additional unit.  He stated that he had already entered into a lease agreement with the renters of the upstairs apartment and will not be able to raise the rent until November.  He stated that the current ordinances are vague and contradicting.  He asked if the City is setting up all businesses for success?  Without the businesses, he stated that the employees of those businesses also go away.  He stated that it is professional courtesy to give residents and business owners a ninety-day notice, and that  meters are the way to go for businesses. He also suggested that until meters are in place, the utility bill should be based on the number of people in the household.  Chase requested that the City Council make the ordinances have more clarity.  He’s asked the City to waive the amount he’s being charged for his upstairs apartment until the lease is up so he can adjust the rent accordingly.   JB asked when the rate notices were mailed out.  Mayor Rauser stated that the notice Mr. Ragen is referring to is being charged for an additional unit (apartment) in his building.  Discussion was held amongst council members.  Mayor Rauser stated that our office could have better handled giving notice to Chase on the additional charge for his apartment. 

City resident, Todd Rolfs spoke.  He said after listening to Mr. Ragen’s presentation, he stated that inflation is an ugly word. Anytime there is an increase in living expenses, he makes adjustments and finds solutions.  He stated that being on a fixed income, he has to find solutions.  He stated that he is not blind sided with increased prices anymore because change is constant nationwide.  He made a point by stating that we don’t receive a ninety-day  notice for increased gas prices, or increased grocery prices.  He said whenever inflation kicks in and surprises us, we need to make adjustments accordingly. He said it’s sad that most of this the prices are passed on to the consumer, but that’s the way it is.  He said he makes adjustment with no bellyaching and no whining. 

Angie stated that she’d just like to point out that in reference to what was said earlier about  all of the places that we don’t know about that and that are doing the same thing with water usage.  The City has had several duplexes with one service pipe going to their residence, and we need to take into consideration that we have folks who are doing the right thing and following the ordinance properly, who are doing it the right way, and who are paying their bills.  She stated that when she made the comment previously that the council should use caution to think about the ordinance, and not making any rash decisions, it’s because we’ll be setting a precedent to have all of those people come forward and ask for the same exact thing.  Doug stated that we need to be fair and consistent with everyone.  There’s going to be a lot of situations where the ordinance isn’t going to make sense.  He said to Chase that “you’re right, and that proper notice is just common sense.”  He said that we need to start dialing in on what is fair and consistent.  Mayor Rauser stated that she will respond to this, and until such time the ordinance is revised,  this office is responsible for implementing  them.  That means that as properties become known and there are questions about how they should be billed versus how they have been, that needs to be looked at in light of the ordinance.  So, until such time as the ordinances change, that is where we are.  Any of us within a city, county, government, school district, or business, is subject to laws, rules, and regulations.  The council has been reviewing its ordinances, and of all of them, the water ordinance is one that was reviewed most recently.   Doug stated that with the water project, it’s time to review the water ordinance because based on what’s going on with the water system and the future of Townsend, there’s going to be times that it will be conflictive.  Mayor Rauser stated that she will reiterate that we have the bond issued for the water system, the debt service, the project itself, and future repairs, replacements, and reserves that at this time are all contingent on a certain revenue stream.  Looking at the entire rate structure at this time is not what we should do given the bond covenants.  The water rates are subject to review on an annual basis in terms of the coverage.  Any significant change to the rate structure that has an adverse effect on the revenue stream, is going to create problems for the City.  Vivian asked how we are going to do better.  Mayor Rauser stated that we will reach out to the property owner and have a face-to-face visit.  Some of the situations that we have will lend themselves to a metering right away.  The meters are not as expensive as we once thought, at approximately $200. 

Chase requested to have the utility services waived for eight months for the apartment above the Betsy considering the lease does not expire until November.  Vivian stated that three months would take care of the ninety-day notice he thinks should take place.  JB asked Chase if a waiver of three months would be a good compromise.  Chase asked if the council would consider four months. There was a misunderstanding of JB thinking it was just a waive for the water, however it was clarified that Chase was requesting the entire utility bill.  JB made a motion to waive four months of the utility bill for the one apartment upstairs of the Betsy.  Vivian seconded the motion.  At this point, the owners of the Fish Tale questioned their bill.  That was clarified after the clerk printed out their bill and gave it to them.  Mayor Rauser called for a vote.  All in favor were JB, Vivian, Doug, and Nate. All opposed was Angie, who voted no.  Motion carried.  Mayor Rauser stated that in terms of how water is getting to all of the buildings, the City will need to look at this and get it cleaned up.  This is an issue from Spruce Street down to the Betsy building, with one curb stop.      

Water Meter Information:  The meter prices are much lower than anticipated.  The price is approximately $200 per meter.  The meter from Northwest Pipe Fittings is the meter the City has been using.  Mayor Rauser stated that she’s not sure how much installation of the meter will cost.  JB asked if our ordinances permit to have the water meter installed inside a building.  Mayor Rauser referred to Eric to answer this.  Eric said that the meter has to be permanent and easily accessible.  The short answer is that having a meter reader on the outside of the building is the best and simplest way for his crew to get a reading.  JB asked if the total cost will be approximately $200 for the meter and approximately $150-$200 for the plumbing and installation?  Mayor Rauser said this depends on what service lines need to be addressed for each individual building, because what we have in this situation is several buildings being served by a single curb stop.  JB stated that we’ve had three different situations, and all of these could have been solved by installing a meter.  This is the best way for property owners to receive a fair and accurate water rate.  Mayor Rauser stated that it is in our ordinances to authorize our public works director to install a meter if the City has a reason to believe the amount of water being used is excessive.  Once a meter is stalled, it is a permanent meter, and that property cannot go back to a flat rate.  JB asked why we couldn’t T-off of the water when it enters a building/duplex and have two meters at the T so that each unit is being separately monitored.  Eric stated that we wouldn’t have any control past the curb stop, and that is where the meter should be.  Mayor Rauser read water ordinance 4.16.050 item #6, the City requires and will only read one meter for a single point of delivery of service for each consumer to whom a meter rate applies.                A consumer owning a multiple tenant building may install secondary meters (sub meters) to monitor consumption for each tenant, in such case, the consumer shall be responsible for reading secondary meters and billing tenants individually based on such readings.  Mayor Rauser stated that the reluctance of installing meters is because we all use far more water than we think we do.  Doug stated that with a metered rate, we could go to “budget billing” to accommodate for excess water used for watering lawns.  JB asked if Mayor Rauser will research to see if the City could still make the bond payments on the water project if everyone were to go to a metered rate.

Swimming Pool Cover Quotes:  Mayor Rauser stated that Eric has received two quotes.  One quote is for approximately $7000, and the other is double that.  One of the things for Council to consider is to decide if we have the available budget and budget flexibility to acquire this prior to June 30th  or get it ordered with a delivery date after July 1, to come out the 2026 budget.  Council requested Eric to find out if the cover could be ordered now with a delivery date after July 1st. 

Consideration of Snowplow Acquisition/Snow Removal Vehicle Usage Agreement:  Eric stated that the Snowplow is in excellent condition, however the City has no place to store it, so he doesn’t think it’s a feasible purchase.  Discussion was held regarding the use of the county snowplow if Townsend receives eighteen inches of snow or more.  Council asked Eric his thoughts.  Nate stated that plowing pushes snow up to people’s vehicles and the taller drifts to make it impossible for vehicles to get out.   Eric said that he completely agrees with that.  Discussion was held.  Mayor Rauser stated that after the discussion the agreement will stand as is, but that the emergency route will be reviewed. 

Water Usage and Grading Agreement:   Mayor stated that this is an agreement we had with the county last year as well.  This states that the City will  provide water to the county road department in exchange for grading services on Railroad Ave and Harrison St.  The county road department estimated a cost for grading services of  $35,572.23.  Mayor Rauser stated she did not have a chance to visit with TJ Graveley to see how he identified the per unit amount versus the city water of $4900.  Based on what is shown, it is a good deal for the City.  Vivian made a motion to continue the agreement through the remainder of the year 2025.  Nate seconded the motion.  Comment from the public, Misty Masolo, deputy public works director for the county, stated that TJ would like the effective date to start in Aprill this year versus last year’s effective date of June.  Vivian revised  the motion to continue the Water Usage and Grading Agreement with the county for 2025 with a revised effective date of April 1, 2025.  Nate seconded the motion.  All in favor, motion carried.  Eric mentioned that with the water project going on, there will be days that water is not available and asked if that needs to be part of the contract.  Mayor Rauser stated that we’ll just work together on that and won’t need to be part of the contract. 

Gravel:  Eric stated that we don’t have the capability to haul gravel from Graymont’s plant down to the City’s stockpile, so Eric is hoping the county can do that for them.  This is not an agenda item, so Mayor Rauser and Eric will discuss this prior to it being on a future agenda. 

Growth Policy:  Ange spoke on this.  Jeremy from WWC Engineering has provided the Planning Board with a copy of the Growth Policy.  The Planning Board had a public hearing last Thursday (March 13th) with public comment received from Mayor Rauser.  The planning board sent the recommendations from Mayor Rauser to Jeremy, so we are currently waiting for the revised document.  Once we have the revised document, it will be on the agenda for Council’s approval and to set a public hearing date.    

Proposed Fireworks Ordinance-Draft:  Mayor Rauser stated that the council needs to take a look at this and decide if it’s ready to go before a public hearing.  Vivian stated that the committee wanted the city attorney to review it as well, but to get Council’s feedback prior to sending it to the attorney.  Angie asked about the wording “consenting adult.”   She also asked about the language of “use of fireworks without a permit.”  JB stated that there is a section that describes the use of fireworks without a permit, and that within the dates and times of the proposed ordinance, then the language  “use of fireworks with a permit” is for use of fireworks outside of the proposed dates and times allowed.  Angie stated that the wording is confusing.  Angie also asked about the need for liability insurance.  JB stated that if someone is requesting the use fireworks outside of the dates and times of the ordinance, they need a permit and liability insurance. Angie questioned the language of the need for a supervising adult within ten feet of a minor.  Doug asked who is going to enforce that.  Discussion was held and several council members found issues with the draft ordinance.  Angie also stated that she has an issue with the section that states, “It shall be unlawful to discharge any fireworks on or within 35 feet of any private, building, or structure without the owner’s consent”.  Angie stated that is literally every street in the City, so why even have a firework’s ordinance?  JB stated it’s an excellent question. He said this effort is based on a resident in Ward I who complained that the fireworks being lit by his neighbors, on the other side of the street, were causing his windows to rattle.  Nate asked about all of the other residents.  Why base an ordinance on one person?   JB stated that they had a survey with 85 respondents.  Mayor Rauser asked if they have the survey available, and JB stated it’s not here tonight.  Mayor Rauser stated that the survey would be helpful to the council.  Mayor Rauser stated she has a few suggestions with wording, and the ordering of the sections. Nate asked if Sheriff Rauser should be here to weigh in on this, since his department will be the ones having to police the ordinance.  JB stated that they’ve asked Sheriff Rauser several times to comment on this, he has not done this.  Mayor Rauser gave several more suggestions for the draft ordinance.  She suggested the committee reviews the referencing of the laws and regulations to which the ordinance is referring.  Doug asked who would know all of these rules and regulations.                                                                         

Mayor Rauser stated that it’s Montana Statutes and Administrative Rule, and we are responsible for knowing what they all say.  To help the public out, the section’s Title could be inserted in here so that the reader has an opportunity to understand the subject matter.                    Mayor Rauser stated that her general sense of this is that it is a lot of pages to state there will be no fireworks set off within the city limits.  JB stated that it’s not the intent.  The current ordinance states no sales of fireworks within the city limits, and here is when they can be set off.  This draft goes way beyond that, and the survey results will help put this in context.   This has been tabled to allow the committee to make some revisions. 

Public Comment:  Todd Rolfs asked if the vendors that are selling fireworks could also sell  firework permits. JB stated that all of the vendors selling fireworks are outside of the city limits, and the county does not have a fireworks ordinance. 

Debi Randolph stated that if she can help with getting Sheriff Rauser involved with this fireworks ordinance process she’d be happy to persuade him.  She also stated that once everything is finalized, there needs to be a short, sweet checklist that can be handed out to the public, because no average person is going to understand this. 

Mayor Rauser stated that her suggestion to the council is to let the fireworks committee take the comments from tonight’s meeting and bring the draft ordinance back in a couple of weeks for the council’s consideration.  This was agreed upon. 

Street Project/Ally Work Update:  Mayor Rauser stated that during the course of the discussion of the pre-construction meeting, the alley work between S Pine and  S Spruce will be removed from this year’s work schedule.  JB stated that the design the engineer proposed was not going to work in the alley behind his business.  JB stated that they put in a small french drain, and to date they have not had water get past that lot.  Mayor Rauser stated that the alley was approximately $100,000 in work, so the money saved will be used to fix unexpected street issues.  Mayor Rauser stated that we can make a change order to the contract in order to move forward with this project.   Angie made a motion to complete a change order to the Street Project/Alley Work and exclude the alley work between S Pine and S Spruce and replace it with some needed street work on S Oak.    JB seconded the motion.  All in favor, motion carried. 

MCR Grant Update:   Mayor Rauser stated that our request for re-direction from the Architectural Review to the Inventory Reviewhas been approved and we are waiting on the new contract to move forward with that. 

Pending Business:

  • Ordinance Review- Angie asked if the council would like her to move the Water Ordinance to the top of the list for review.  JB stated that it would be good in light of the current issues. 
  • Events Committee/Ordinance-Angie stated that they met a few weeks ago and received input from the Rotary.  JB has a revised draft they need to review. 
  • Telecommunications Franchise Committee/Ordinance
  • Garbage Cans on Broadway
  • Sewer Ordinance

Public Comment: 

Mayor Rauser stated that budget meetings will begin in April this year.  The water project bond closing takes place on March 19th. 

Round Table:

  • Eric reported the Big Sky Big Leadership group is working on the tennis courts, and he’s sat in on some meetings.  Eric also stated that there is a Street Sweeper coming up for sale.  He finished by stating that the Water Project is going well.   

Adjournment:  Nate made a motion to adjourn the meeting.  Doug seconded the motion.  All in favor, motion carried.