Laurel City Council Workshop - August 4, 2026

The Laurel City Council held a workshop on Tuesday, August 4, 2026, at 6:30 PM in the Council Chambers. The meeting covered a wide range of topics including a progress update on the MLUPA growth policy, reconstruction options for West 7th Street, stormwater strategies for West Railroad Street, a bulk water agreement with CHS (refinery), a budget training session, a discussion on adding timestamps to council minutes, and a legal briefing on a pending lawsuit against the state regarding a proposed facility. Public comments were heard on the MLUPA survey and the lawsuit.

Consent Calendar

• No consent calendar items were acted upon; the meeting was a workshop format without formal votes.

Public Comments & Testimony

• Jen Lorenz (916 Fifth Avenue) expressed concern that the MLUPA survey is not reaching digitally-disconnected residents and offered Laurel Care’s help to facilitate community meetings. She also expressed concern about the timeline and asked the city to educate the community on MLUPA.
• Shelley White (512 Wyoming Avenue) criticized the MLUPA survey as being too generic and inaccessible to older residents who do not use QR codes. She noted the survey lacked depth on current infrastructure needs (streets, sewer, water).
• Shelby Grag (932 First Avenue) echoed concerns that the MLUPA survey is vague, uses too much free text, and suggested adding multi-select options. She also noted that one farmers market appearance is insufficient for public engagement and requested paper copies for the elderly.
• Laura Kirshman (939 West Fourth Street) supported adding timestamps to city council minutes, stating it would help the public quickly find specific discussions in recorded meetings.
• Shelley White (again) and Laura Kirshman also commented on the lawsuit discussion, stressing that emergency services should not be picked and chosen, and that the city must be part of the process to ensure proper procedure.
• Jen Lorenz (again) urged the council to intervene in the lawsuit to give Laurel a voice and prevent being bullied by the state.

Discussion Items

1. Council Member Banks Absence

• Council Member Banks informed the council he will be out of town visiting family in Japan for two weeks, exceeding 10 days. No further action was taken.

2. Resolution to Reschedule Council Meeting on Election Day

• A resolution authorizing the mayor to reschedule a city council meeting that falls on Election Day was discussed. No decision was made, but it was acknowledged.

3. MLUPA Project Progress Update

• Mayor and staff met with Interstate Engineering (Brett Moore and Megan Bixler) on July 29. The project is gathering public comment via a short survey (about 10 minutes) available through QR codes. As of the meeting, approximately 130 responses had been received (up from 30).
• Staff is distributing postcards with QR codes to businesses; the survey is also available at the water office.
• The next planning board meeting (in two weeks) will be dedicated to MLUPA. Growth areas being studied include Cherry Hills, the old middle school/high school property, and recent annexations.
• The mayor stressed that growth boundaries must be realistic and that the plan should focus on achievable, fundable items rather than glossy documents.
• A public commenter (Jen Lorenz) offered to help facilitate meetings but had not been contacted by the engineers. Council members agreed to provide paper copies of the survey for residents without internet access.
• Councilmember Laura noted that PowerPoint presentations from stakeholder meetings are now available on the website, though a link for public comment was requested and not yet added.

4. West 7th Street Reconstruction Options

• Public Works Director Matt presented two options for West 7th Street between First and Second: (A) full reconstruction with water/sewer, curb, gutter, sidewalk – estimated $800,000; (B) mill and overlay with fabric – estimated $150,000. The latter would not address underground utilities.
• Council discussion favored option B to show immediate progress on a heavily traveled street while preserving funds for other priorities (West Railroad, stormwater). Councilmember McKay noted the $800k would consume nearly three-quarters of the annual street maintenance budget (~$1.1M).
• The mayor emphasized that the workshop is for discussion; a formal proposal would come later.

5. West Railroad Street Stormwater Discussion

• The West Railroad project (First Avenue to South Pond) is a $10 million project with the state paying $5M. The city’s $5M share does not include stormwater improvements, which would be extra to run a line down Yellowstone Street.
• One option presented: repave the road without curb and gutter, avoiding stormwater costs entirely, but this would leave no sidewalk improvements. Councilmember Banks stressed the need for a sidewalk on the north side (from First to railroad crossing).
• It was noted that a portion might still be eligible for TIFF funds, but the state would only participate in a full project. No decision was made.

6. Pedestrian Crossing SE 4th Street

• The crossing has been repaired and the project is complete. The city paid for the repair as insurance did not cover damage.

7. CHS Bulk Water Agreement

• The city is negotiating a 10-year contract with CHS (refinery) for raw/settled and finished water. Key terms include a 3% annual increase for raw and settled water, and finished water will follow the city’s rate structure. A minimum annual purchase requirement is included for the first time.
• The existing contract expires in September 2026. The agreement has been reviewed by the city attorney; final edits from CHS are pending. It will come before the council in three to four weeks.

8. CHS Stormwater Partnership Discussion

• CHS proposes a new stormwater outflow under I-90 to the west, which would divert city stormwater away from the refinery. CHS would pay for most of the project, and the city would gain a new outlet and additional inlets along Woodwin and Yellowstone streets.
• The project is mutually beneficial: CHS avoids treating city water, and the city increases stormwater capacity.

9. Budget Training

• Finance Director Kelly presented a detailed training on the city budget, covering mills, fund structure (general fund, enterprise funds, special revenue, debt service, capital projects), how to read the budget book, and common misconceptions.
• Key points: property tax growth is limited; enterprise funds (water, sewer, garbage) must be self-supporting; one-time money should not fund ongoing costs; the council controls spending through the adopted budget.
• The budget for FY 2025-2026 is being prepared; mill values were received the same day. The goal is to present a balanced budget to council by August 25 for adoption at a regular meeting, avoiding a special meeting.

10. City Council Minutes – Timestamp Discussion

• The city clerk proposed adding timestamps to the official minutes that link to the corresponding video recording. The format would change slightly, but the required content would remain. Council and the public expressed support for the convenience. No formal action needed.

11. Liz Forester Presentation / Lawsuit Discussion

• City Attorney Ryan Addis briefed the council on a lawsuit filed by Laurel Care against the state of Montana challenging the environmental assessment (EA) for a proposed 32- to 64-bed facility. The lawsuit alleges inadequate EA and lack of public participation (violations of MEPA and the Montana Constitution).
• Key factual assertions in the EA that the city may wish to challenge: (1) that sufficient water capacity exists because of the Loves latecomer agreement – the city has not confirmed capacity and is currently modeling; (2) water demand figures appear inconsistent with DEQ circulars (2,000 gpd claimed vs. ~4,680 gpd typical for 32 beds).
• Addis suggested two experienced land use attorneys (Susan and Terra from Bozeman/Livingston) who could potentially represent the city if it chooses to intervene. Intervention would focus on clarifying the record regarding water capacity and emergency services, not on opposing the facility itself.
• Council discussion centered on whether the city has standing, potential liabilities, and the desire to assert its interests after feeling “bullied” by the state. No decision was made; the council will consider hiring the recommended attorneys for further review.
• An injunction hearing is scheduled for August 10 at 1:15 PM in Yellowstone County Courthouse (Room 606). Council members were advised they may attend but should not speak.

Key Outcomes

• MLUPA Survey: The city will produce paper copies of the survey for distribution to residents without internet access. Staff will continue distributing postcards with QR codes.
• West 7th Street: General consensus favored the $150,000 mill-and-overlay option, with possible spot repairs to water lines if needed. A formal proposal will be brought to a future meeting.
• West Railroad Street: No decision; further public works committee discussion needed.
• CHS Bulk Water: Final agreement expected at council in 3-4 weeks.
• CHS Stormwater: Conceptual support; more details to follow.
• Budget: Council will receive the budget book and proposed budget by approximately August 25 for review, with adoption expected at the regular council meeting before September 3.
• Minutes Timestamp: Change approved for implementation; clerk will begin adding timestamps.
• Lawsuit Intervention: Council will continue to evaluate. The attorney was directed to gather more information from the recommended land use attorneys. No formal vote was taken.
• Meeting Changes: Starting next meeting, the council will adopt a new sequence for decision items, including explicit statements on ex parte communications and conflicts of interest under each item.