| Regular City Commission Meeting | Mayor Morris Presiding |
CALL TO ORDER: 7:00 PM
MOMENT OF SILENCE
Moment of silence in memory of Laura Bachmeier. Ms. Bachmeier worked in the Community Development Department until she died in a car accident on October 23, 1994.
ROLL CALL: City Commissioners present: Gayle Morris, Joan Bennett, Bob Deming, Vicki Everson and John Gilbert. Also present were the City Manager, City Attorney, Directors of Community Development, Public Works, Finance, Park & Recreation, Fairgrounds, Planning, Acting Fire Chief, Police Chief, and the City Clerk.
PROCLAMATIONS:The Finance Department received a petition signed by 100% of the property owners, requesting lighting in 3rd Alley SW between 11th and 12th Streets SW. The estimated annual costs for the entire district, including the City's 10% administrative charge are $104.02. A one time charge of $5.00 per lot will be added to the first assessment payment to cover the cost of setting up the district.
Mayor Morris declared the public hearing open. No one appeared to speak in support of or in opposition to Resolution 8689. Mayor Morris declared the public hearing closed.
Commissioner Everson moved, seconded by Commissioner Deming, that the City Commission adopt Resolution 8689.
Motion carried 5-0.
Ruth Scribner submitted an application to annex an unplatted tract of land at 2315 Fifth Avenue Southwest. Ms. Scribner is currently having a manufactured house located on the property and wanted to annex in order to obtain City water service. On October 4, 1994, the City Commission adopted Resolution 8681, setting the public hearing on the annexation.
Mayor Morris declared the public hearing open. No one appeared to speak in support of or in opposition to Resolution 8691. Mayor Morris declared the public hearing closed.
Commissioner Gilbert moved, seconded by Commissioner Bennett, that the City Commission adopt Resolution 8691.
Commissioner Deming noted that the applicant met all the conditions recommended by the Planning Board.
Motion carried 5-0.
On October 4, 1994, the City Commission adopted Resolution 8683 setting the public hearing for November 1, 1994 to consider the annexation of 1,798.15 acres owned by the City at the International Airport (including 19.89 acres contained in the former Robertson parcel) and 42.64 acres comprising a portion of U.S. Highway 91 Ulm North Frontage Road. The Notice of passage of Resolution 8683 was published October 26 and will be published on November 2 as required by statute. City Staff recommended the City Commission open and continue the public hearing until November 15.
Mayor Morris declared the public hearing open. No one appeared to speak in support of Resolution 8692. Clayton Braden, 2708 4th Avenue NW, spoke in opposition to the proposed annexation.
Commissioner Deming moved, seconded by Commissioners Bennett and Everson, that the City Commission continue the public hearing on Resolution 8692 until November 15, 1994.
Motion carried 5-0.
Staff advertised for bids to lease the old Boston Heights Fire Station for ambulance service October 11, 1994. The bid opening was held October 21, 1994, with no bidders responding. Staff knew of at least one bidder interested in the building who did not see the advertisement. Therefore, staff proposed to rebid the lease with the bid opening November 4, 1994.
Mayor Morris declared the public hearing open. No one appeared to speak in support of or in opposition to the proposed lease.
Commissioner Deming moved, seconded by Commissioner Gilbert, that the City Commission continue the public hearing until November 15, 1994.
Motion carried 5-0.
The property owner of Poulsens BMC is remodeling the commercial building at 825 Ninth Street Northwest. The building permit was issued August 1994, and the project will be completed in January 1995, at an estimated cost of $870,000. The applicants requested approval of the tax benefits.
Commissioner Bennett moved, seconded by Commissioner Everson, that the City Commission adopt Resolution 8687.
Commissioner Deming briefly explained what Remodel Tax Benefits were.
Motion carried 5-0.
In a letter dated August 31, 1994, Blessed Trinity Catholic School submitted a formal request to install two temporary safety gates across portions of 1st Alley South between 28th and 29th Streets. The purpose of the request was to provide increased safety for students crossing the alley to access the playground area during school hours.
There wasn't a set procedure in OCCGF that allowed for placement of fences or gates on public right of way, including streets, avenues, alleys, etc. Consequently, roadway closure procedures in accordance with State Statute were followed, although the proposed restrictions (closure) on the use of the alley are only for specified periods of time.
Commissioner Everson moved, seconded by Commissioner Deming, that the City Commission adopt Resolution 8690.
Commissioner Gilbert explained that Blessed Trinity contacted the Police Department and sanitation services, who did not oppose the closure. Commissioner Gilbert also explained that the closure will only be during school hours as a safety precaution for students.
Motion carried 5-0.
Resolution 8693 authorizes the issuance of Tax Increment Industrial Infrastructure Development Bonds, Tax-Exempt Series 1994A and the Tax Increment Industrial Infrastructure Development Bonds, Taxable Series 1994B, issued pursuant to Montana Code Annotated, Title 7, Chapter 15, Parts 42 and 43, as amended, and a Trust Indenture agreement between the City of Great Falls and First Trust Company of Montana, as Trustee. The proceeds of the Series 1994 Bonds will be used to finance a portion of the costs of various infrastructure projects undertaken by the City in the American Ethanol Industrial Infrastructure District.
Commissioner Deming moved, seconded by Commissioner Bennett, that the City Commission adopt Resolution 8693.
City Manager, John Lawton, explained that Mr. Bob Mease and Mr. Tim Babcock were in the audience and were prepared to answer any questions the City Commission many have regarding the ethanol project or American Ethanol, Inc.
Mr. Lawton explained two late developments regarding this bond issue. First, that the City Commission was asked to authorize the issuance of these bonds at this time because of possible results should CI-67 be approved by the voters. Mr. Lawton added that Staff was not proposing to circumvent the intent of CI-67, but to avoid delays that will occur due to issues not specifically addressed in CI-67. He stated that because CI-67 is unclear on several areas, courts would need to clarify its meaning through court decisions. And until the court decisions were rendered, obtaining legal opinions on bonds would be difficult to get and without legal opinions, bonds could not be sold.
Secondly, Mr. Lawton added, that originally, American Ethanol proposed to repay the bonds in a 20 year period of time. This would have required them to use approximately two-thirds of the tax increment to meet the debt service. However, American Ethanol now proposed to repay the bonds in a 10 year period of time which will use all of the tax increment to meet the debt service.
Commissioner Everson asked if the ethanol plant went out of business within five years, how that would affect the City's bond rating. Mr. Lawton explained that it would not affect the City's bond rating at all. Mr. Lawton read Article 4.1 from the Resolution which states:
The series 1994 Bonds and any Additional Bonds which may at any be issued as provided in the Indenture, and all obligations of the City under the Indenture to pay any amount to any person, are payable solely from the Tax Increments received by the City and resulting from the extension of ad valorem taxes levied against the taxable property within the District. Neither the Series 1994 Bonds nor any Additional Bonds nor any other obligation of the City under the Indenture shall be deemed a general obligation of the City or a pledge of its full faith and credit, which have not been pledged to the payment thereof.
Mr. Lawton concluded, that paragraph within the Resolution protects the City's bond rating.
Mayor Morris asked Mr. Lawton why cities are involved with the Tax Increment process. Mr. Lawton stated that Great Falls is involved with this process for two reasons. 1) This is the only economic development tool in the State of Montana. Because of the fractured tax system, the tax increment option is the "deal maker" to entice manufacturers to locate in the State. 2) A significant portion of these bonds to be issued are tax-exempt which makes them more marketable.
Commissioner Deming stated his constituents support this resolution.
Commissioner Gilbert stated that after researching the financing for the ethanol project he felt that the players involved were not rookies and that City's interests were well protected.
The Mayor called for the vote. Motion carried 5-0.
Mayor Morris enumerated Consent Agenda items as follows:
Commissioner Gilbert moved, seconded by Commissioner Everson, that the City Commission accept the Consent Agenda as printed minus item 16.
Motion carried 5-0.
Contract in the amount of $426,500 to Cascade Electric, Inc.
Commissioner Deming moved, seconded by Commissioner Bennett, that the City Commission award a contract to a Cascade Electric, Inc., in the amount of $426,500 for the Water Treatment Plant Electrical Modifications (OF 1030.1) and the City Manager be authorized to sign the contract documents.
Commissioner Gilbert stated that he would abstain due to a potential conflict of interest.
Motion carried 4-0-1 (Commissioner Gilbert abstaining).
There being no further business to come before the City Commission, the regular meeting of November 1, 1994, adjourned at 8:16 p.m.
/S/
Gayle Morris, Mayor
/S/
Peggy J. Bourne, City Clerk