JOURNAL OF COMMISSION PROCEEDINGS
OCTOBER 20, 1998

Regular City Commission Meeting Mayor Bennett presiding

CALL TO ORDER: 6:00 PM

ROLL CALL: City Commissioners present: Joan Bennett, Bill Beecher, Bill Downer, and Randy Gray. Commissioner John Rosenbaum was excused. Also present were the City Manager, City Attorney, Directors of Community Development, Public Works, Fiscal Control, Management Information Services, Park & Recreation, Acting Director of the Fairgrounds, Planning, Fire Chief, and the City Clerk.

PROCLAMATION OF CONGRATULATIONS: Mayor Bennett read a proclamation of Congratulations for Captain Don Licht who was recently named "Fireman of the Year."

PUBLIC HEARINGS

Res. 8976, GF Townsite B127 L5, Cost Recovery. Adopted.

1.

RESOLUTION 8976, COST RECOVERY, GF TOWNSITE ADDITION, BLOCK 127 LOT 5.

John and Jeri Fulbright, owners of the property described as 916 8th Avenue North, were issued a Notice to Abate a Dangerous Building, on July 16, 1997. The Fulbright's did not repair nor demolish the building. City staff, through a proposal process, contracted with Gordon Construction, in the amount of $4,500 to complete the demolition. All the expenses totaled $4,928.23.

Mayor Bennett declared the public hearing open. No one appeared to speak in support of or opposition to Resolution 8976. Mayor Bennett closed the public hearing.

Commissioner Downer moved, seconded by Commissioners Beecher and Gray, that the City Commission adopt Resolution 8976.

Motion carried 4-0.

Res. 8977, West Great Falls Add. B31 L13, Cost Recovery. Continued.

2.

RESOLUTION 8977, COST RECOVERY, WEST GREAT FALLS ADDITION, BLOCK 31, LOT 13.

Cascade County c/o Penny Huntsberger, owner of the property located at 1305 Second Avenue NW, was issued a Notice to Abate a Dangerous Building on June 28, 1996. The property owner did not repair, however, began demolishing the building and left the property more hazardous than when originally condemned. City staff, through a proposal process, contracted with Austin Reid Demolition in the amount of $390 to complete the removal of demolition debris and termination of utilities. All the expenses totaled $748.50.

Mayor Bennett declared the public hearing open. No one appeared to speak in support of Resolution 8977. Bob Emmons, legal counsel for Security Investment, spoke in opposition to the Resolution.

Mr. Emmons requested the City Commission continue action on Resolutions 8977, 8978 and 8979, for two weeks in order for his client to make a settlement offer to Staff. He explained there was not a need to place a lien on the property, that may or may not get paid, when his client was willing to make a settlement offer.

There being no one further to address the Commission, Mayor Bennett closed the public hearing.

Commissioner Gray moved, seconded by Commissioner Downer, that the City Commission adopt Resolution 8977.

Commissioner Gray stated that he did not want to be in the business of bargaining a settlement on the floor. Nor, he stated, did he want to bargain down the costs that were actually incurred by Staff. He added that this issue had been worked on by Staff since 1996 and that there had been plenty of time for the owners to avoid this action.

Dave Gliko, City Attorney, reminded the City Commission that there was an ordinance in effect that established the procedure to recover costs incurred in these types of situations. He advised the Commission that they could waive the established procedure. However, he cautioned them that they may be setting a precedent that could compromise the amount owed the City.

City Manager, John Lawton, stated that if the Commission adopted the Cost Recovery Resolution, the owner had 30 days to pay the amount due before a lien would be placed on the property. He added that Staff would be willing to meet with Mr. Emmons to discuss a settlement offer. However, he advised the Commission that the negotiated amount had to be a good financial deal. He explained that Staff could calculate an amount taking into consideration the average amount of time it takes to get repaid on these types of issues and apply a present value analysis to that amount to determine if it was a good deal.

Commissioner Beecher concurred with the previous statements. He added he would support a two week continuance for Staff to consider the present value function of a settlement offer.

Commissioner Gray moved, seconded by Commissioner Beecher, to amend the original motion to read, "that the City Commission grant a two week extension for further consideration of the Resolution 8977."

Motion carried 4-0.

Mr. Lawton clarified that the Commission would only be interested in a settlement offer which may offer less but does not compromise the value of the settlement when time was considered. The Commission concurred with that clarification of the motion.

Res. 8978, GF Townsite Add. Block 459, Lot 2. Continued.

3.

RESOLUTION 8978, COST RECOVERY, GF TOWNSITE ADDITION, BLOCK 459, LOT 2.

Security Investments #1, a limited partnership c/o Penny Huntsberger, was issued a Notice to Abate a Dangerous Building, located at 704½ Fifth Avenue South, on October 3, 1996. The property owner did not repair, however began demolishing the building and left the property more hazardous than when originally condemned. City staff, through a proposal process, contracted with Austin Reid Demolition, in the amount of $3,040 to complete the removal of demolition debris. All the expenses totaled $3,395.75.

Mayor Bennett declared the public hearing open. No one appeared to speak in support of Resolution 8978. Bob Emmons, legal counsel for Security Investments #1, reiterated his comments made regarding Resolution 8977.

There being no one further to address the City Commission, Mayor Bennett declared the public hearing closed.

Commissioner Gray moved, seconded by Commissioner Downer, that the City Commission grant a two week extension for further consideration of the Resolution 8978 subject to the same conditions as on Resolution 8977.

Motion carried 4-0.

Res. 8979, GF 3rd Add. B175 L12, Cost Recovery. Continued.

4.

RESOLUTION 8979, COST RECOVERY, GF 3RD ADDITION, BLOCK 175, LOT 12.

Penny Huntsberger was issued a Notice to Abate a Dangerous Building regarding the property located at 1611 and 1613 Fifth Avenue North, on June 8, 1998. The property owner did not repair, however began demolishing said buildings and left the property more hazardous than when originally condemned. Through a proposal process, Staff retained Austin Reid Demolition in the amount of $1,092.50 to complete the removal of the demolition debris and termination of utilities for 1611 Fifth Avenue North and $1,822.50 to complete the removal of the demolition debris and termination of utilities at the 1613 Fifth Avenue North. The actual costs incurred were $1,445.18 for 1611 Fifth Avenue North and $2,175.50 for 1613 Fifth Avenue North.

Mayor Bennett declared the public hearing open. No one appeared to speak in support of Resolution 8979. Bob Emmons, legal counsel for Penny Huntsberger, reiterated his comments made regarding Resolution 8977.

There being no one further to address the City Commission, Mayor Bennett declared the public hearing closed.

Commissioner Gray moved, seconded by Commissioner Downer, that the City Commission grant a two week extension for further consideration of the Resolution 8979 subject to the same conditions as on Resolution 8977.

Motion carried 4-0.

OLD BUSINESS

NEW BUSINESS

Consent Agenda
Approved as printed.

CONSENT AGENDA

5.

Minutes, October 6, 1998, Commissioner meeting.

6.

Claims over $500.

7.

Contracts List.

8.

Change Order 3, City/County Health Department Medical Building (OF 1195). Change Order with Talcott Construction in the amount of $19,046 for wall coverings and cabinets.

9.

Change Order 1, Fire Station 1 Boiler Project (OF 1206). Change Order with Wadsworth Builders in the amount of $694 for the removal of a section of piping that was not included in the original bid.

10.

Amendment to the Engineering Services Agreement for Great Falls Water Treatment Plant Pump Improvements (OF 1030.4). Amendment to include construction phase services which included oversight and inspection for the pump improvements for a cost not to exceed $11,000.

11.

Agreement, 36th Avenue NE Improvements and Maintenance (OF 1234). The reconstruction of a portion of Central Avenue West from 3rd to 9th Streets presented an opportunity to install streetscape improvements, including trees, grates, and vintage lighting. This agreement provided for $42,000 from Cascade County for the cost of the streetscape improvements. In consideration of the City's participation in the improvement and maintenance of 36th Avenue NE, Cascade County also agreed to provide the City its uncommitted CTEP funds for the streetscape improvements on Central Avenue West.

12.

Postpone Bid Award, Rubber Tire Asphalt Roller. Postpone bid award to allow Staff additional time to analyze the bids.

13.

Postpone Bid Award, seven 1999 Police Vehicles. Postpone bid award to allow Staff additional time to analyze the bids.

14.

Postpone Bid Award, 1999 Utility Vehicle. Postpone bid award to allow Staff additional time to analyze the bids.

15.

Bid Award, Platform Hoist. Bid Award to lowest bidder meeting specifications, Electric City Brake of Great Falls in the amount of $59,879.

Commissioner Downer moved, seconded by Commissioner Beecher, that the City Commission approve the Consent Agenda as printed.

Cherry Loney, City/County Health Officer, reviewed the progress of the City/County Health Building construction project.

There being no one further to address the City Commission, Mayor Bennett called for the vote. Motion carried 4-0.

After the vote was taken, Steve Potts, 224 Skyline Drive NE, stated he would like to address the City Commission regarding Item 15. Mr. Potts, attorney, explained that he was representing Mr. Del Bigelow from Bigelow Enterprises. Mr. Potts added that earlier in the day he had a letter delivered to City staff explaining why Mr. Bigelow did not agree with the Staff recommendation to award the bid to Electric City Brake. In the letter, Mr. Potts identified several areas of concern. The first was that three bids were submitted for the product and Staff did not consider one of them because it did not conform to specifications. Mr. Bigelow's bid and the bid from Electric City Brake were considered. Mr. Potts contended that Electric City Brake's bid did not meet specifications either.

Mr. Potts sited, specifically, that Specification Items 12 and 17 were not met by Electric City Brake. Mr. Potts also noted that the product bid by Mr. Bigelow was American made while the product bid by Electric City Brake was made in Italy.

Mr. Jim Rearden, Public Works Director, responded to Mr. Potts concerns. Mr. Rearden stated that Staff prepares specifications in a manner that would attract an optimum number of bidders. He explained that there were certain items on the specification list whereby no exceptions were allowed. He stated that Staff also listed items where exceptions would be considered. He explained that by doing this, many different companies could not only bid, but could submit bids for many different models. Mr. Rearden said that four bids were received for this bid award. Two of the bids were for products that did not meet the specifications where no exceptions would be allowed. Mr. Bigelow's bid, and the bid from Electric City Brake, met the minimum bid requirements. Staff then considered each of the products and made a determination that the areas where Electric City Brake did notmeet the specifications, were acceptable. Mr. Rearden reiterated that exceptions are necessary to allow for multiple bidders and without them, the City could be accused of writing proprietary specifications.

Mr. Rearden stated that Staff recommended the Electric City Brake hoist because of the direct cost savings; Electric City Brake was a local vendor; and the service and warranty work would be provided locally.

Dale Linder, Electric City Brake, offered to answer any questions the City Commission may have had on the hoist he bid. He stated he believed Electric City Brake had the better product.

Commissioner Downer stated that, in his opinion, it came down to the service. He added that in light of the information provided by Mr. Potts, he still would support the vote previously made. The other Commissioners concurred.

CITY MANAGER

Aluminum Rolling Mill.
Report.

17A.

ALUMINUM ROLLING MILL (SMELTER HILL).

Mr. Lawton, City Manager, reported to the City Commission that representatives of Pacific Steel and Recycling and ARCO contacted him to express their intention to demolish the 92,000 square foot aluminum rolling mill building located off Wire Mill Road on Smelter Hill, and perform environmental remediation work on the site. The building occupies a 20-acre parcel, which was acquired by Pacific from ARCO in 1986.

As owner of the property, Pacific did not require any approval from the City to demolish the structure. However, because the City and/or County may eventually own this property along with the 286-acre ARCO site, Pacific and ARCO wanted to cooperate fully with both local governments.

Mr. Lawton explained that City staff acknowledged that the building was privately owned, and the current owners had sole authority and discretion to determine the future of the structure. However, in view of the location of the structure and the interest by Pacific and ARCO to ultimately transfer ownership of the 20-acre parcel to the public, the public interest in the property and structure should be considered and the public should be informed.

Mr. Lawton added the response regarding the future disposition of the structure was based on the following factors:

The property upon which the structure was located should be under public ownership in order to better assure that environmental remediation was not disturbed in the future;

The property would be better suited for recreation, open space, and non-inhabited uses to be better able to protect the remediated environmental concerns;

There would be fewer environmental issues and concerns if the property were accepted without the building because of the many unknowns associated with the environmental condition of the building and its foundation;

Most viable uses for the property identified in the Master Plan did not depend upon the building remaining;

The historical significance of the structure was not specifically known; and

Other past and present community issues and fund raising activities need to be recognized and considered with regard to the community's ability to fund additional ventures.

Mr. Lawton said that Staff attempted to identify alternatives to demolition which were viable. He added that should the property be transferred to public ownership with the building in its present condition, the City and/or County would assume at least some liability for lead based paint and asbestos even if the remainder of the 20-acre parcel were remediated. Added to this would be the $1.4 million for renovation as was determined in a report by Thomas, Dean and Hoskins. Mr. Lawton stated that if the property were to remain in private ownership, it would most likely continue to deteriorate with no prospects for reuse just as it has since Pacific purchased it from ARCO. Demolition and full environmental remediation of the site was seen as the most effective and most desirable alternative.

In conclusion, Mr. Lawton stated that based on the foregoing factors and related issues, City staff had no objection to the proposal presented by Pacific and ARCO to raze the building, remediate environmental issues, and further consider the transfer of the property to public ownership.

Commissioner Gray clarified that this was strictly an informational report and that the City Commission was not being requested to act. City Manager, John Lawton, stated that was correct.

Commissioner Gray added that personally, he was not inclined to support the City taking ownership of this type of building.

Bon Building.

17B.

THE BON BUILDING.

Mr. Lawton reported that the Phase I Environmental Report for the Bon came back clean. Commissioner Gray requested that Staff develop a policy that whenever the City purchases property that a Phase I Environmental Report be conducted.

ADJOURNMENT

Adjourn

There being no further business to come before the Commission, the regular meeting of October 20, 1998, adjourned at 7:03 p.m.

/S/
Mayor Joan Bennett

/S/
Peggy J. Bourne, City Clerk

1998 Commission Minutes
Commission Minutes listing page

	PUBLIC HEARINGS
Res. 8976, GF Townsite B127 L5, Cost Recovery. Adopted.	1. RESOLUTION 8976, COST RECOVERY, GF TOWNSITE ADDITION, BLOCK 127 LOT 5. John and Jeri Fulbright, owners of the property described as 916 8th Avenue North, were issued a Notice to Abate a Dangerous Building, on July 16, 1997. The Fulbright's did not repair nor demolish the building. City staff, through a proposal process, contracted with Gordon Construction, in the amount of $4,500 to complete the demolition. All the expenses totaled $4,928.23. Mayor Bennett declared the public hearing open. No one appeared to speak in support of or opposition to Resolution 8976. Mayor Bennett closed the public hearing. Commissioner Downer moved, seconded by Commissioners Beecher and Gray, that the City Commission adopt Resolution 8976. Motion carried 4-0.
Res. 8977, West Great Falls Add. B31 L13, Cost Recovery. Continued.	2. RESOLUTION 8977, COST RECOVERY, WEST GREAT FALLS ADDITION, BLOCK 31, LOT 13. Cascade County c/o Penny Huntsberger, owner of the property located at 1305 Second Avenue NW, was issued a Notice to Abate a Dangerous Building on June 28, 1996. The property owner did not repair, however, began demolishing the building and left the property more hazardous than when originally condemned. City staff, through a proposal process, contracted with Austin Reid Demolition in the amount of $390 to complete the removal of demolition debris and termination of utilities. All the expenses totaled $748.50. Mayor Bennett declared the public hearing open. No one appeared to speak in support of Resolution 8977. Bob Emmons, legal counsel for Security Investment, spoke in opposition to the Resolution. Mr. Emmons requested the City Commission continue action on Resolutions 8977, 8978 and 8979, for two weeks in order for his client to make a settlement offer to Staff. He explained there was not a need to place a lien on the property, that may or may not get paid, when his client was willing to make a settlement offer. There being no one further to address the Commission, Mayor Bennett closed the public hearing. Commissioner Gray moved, seconded by Commissioner Downer, that the City Commission adopt Resolution 8977. Commissioner Gray stated that he did not want to be in the business of bargaining a settlement on the floor. Nor, he stated, did he want to bargain down the costs that were actually incurred by Staff. He added that this issue had been worked on by Staff since 1996 and that there had been plenty of time for the owners to avoid this action. Dave Gliko, City Attorney, reminded the City Commission that there was an ordinance in effect that established the procedure to recover costs incurred in these types of situations. He advised the Commission that they could waive the established procedure. However, he cautioned them that they may be setting a precedent that could compromise the amount owed the City. City Manager, John Lawton, stated that if the Commission adopted the Cost Recovery Resolution, the owner had 30 days to pay the amount due before a lien would be placed on the property. He added that Staff would be willing to meet with Mr. Emmons to discuss a settlement offer. However, he advised the Commission that the negotiated amount had to be a good financial deal. He explained that Staff could calculate an amount taking into consideration the average amount of time it takes to get repaid on these types of issues and apply a present value analysis to that amount to determine if it was a good deal. Commissioner Beecher concurred with the previous statements. He added he would support a two week continuance for Staff to consider the present value function of a settlement offer. Commissioner Gray moved, seconded by Commissioner Beecher, to amend the original motion to read, "that the City Commission grant a two week extension for further consideration of the Resolution 8977." Motion carried 4-0. Mr. Lawton clarified that the Commission would only be interested in a settlement offer which may offer less but does not compromise the value of the settlement when time was considered. The Commission concurred with that clarification of the motion.
Res. 8978, GF Townsite Add. Block 459, Lot 2. Continued.	3. RESOLUTION 8978, COST RECOVERY, GF TOWNSITE ADDITION, BLOCK 459, LOT 2. Security Investments #1, a limited partnership c/o Penny Huntsberger, was issued a Notice to Abate a Dangerous Building, located at 704½ Fifth Avenue South, on October 3, 1996. The property owner did not repair, however began demolishing the building and left the property more hazardous than when originally condemned. City staff, through a proposal process, contracted with Austin Reid Demolition, in the amount of $3,040 to complete the removal of demolition debris. All the expenses totaled $3,395.75. Mayor Bennett declared the public hearing open. No one appeared to speak in support of Resolution 8978. Bob Emmons, legal counsel for Security Investments #1, reiterated his comments made regarding Resolution 8977. There being no one further to address the City Commission, Mayor Bennett declared the public hearing closed. Commissioner Gray moved, seconded by Commissioner Downer, that the City Commission grant a two week extension for further consideration of the Resolution 8978 subject to the same conditions as on Resolution 8977. Motion carried 4-0.
Res. 8979, GF 3rd Add. B175 L12, Cost Recovery. Continued.	4. RESOLUTION 8979, COST RECOVERY, GF 3RD ADDITION, BLOCK 175, LOT 12. Penny Huntsberger was issued a Notice to Abate a Dangerous Building regarding the property located at 1611 and 1613 Fifth Avenue North, on June 8, 1998. The property owner did not repair, however began demolishing said buildings and left the property more hazardous than when originally condemned. Through a proposal process, Staff retained Austin Reid Demolition in the amount of $1,092.50 to complete the removal of the demolition debris and termination of utilities for 1611 Fifth Avenue North and $1,822.50 to complete the removal of the demolition debris and termination of utilities at the 1613 Fifth Avenue North. The actual costs incurred were $1,445.18 for 1611 Fifth Avenue North and $2,175.50 for 1613 Fifth Avenue North. Mayor Bennett declared the public hearing open. No one appeared to speak in support of Resolution 8979. Bob Emmons, legal counsel for Penny Huntsberger, reiterated his comments made regarding Resolution 8977. There being no one further to address the City Commission, Mayor Bennett declared the public hearing closed. Commissioner Gray moved, seconded by Commissioner Downer, that the City Commission grant a two week extension for further consideration of the Resolution 8979 subject to the same conditions as on Resolution 8977. Motion carried 4-0.
	OLD BUSINESS
	NEW BUSINESS
Consent Agenda Approved as printed.	CONSENT AGENDA 5. Minutes, October 6, 1998, Commissioner meeting. 6. Claims over $500. 7. Contracts List. 8. Change Order 3, City/County Health Department Medical Building (OF 1195). Change Order with Talcott Construction in the amount of $19,046 for wall coverings and cabinets. 9. Change Order 1, Fire Station 1 Boiler Project (OF 1206). Change Order with Wadsworth Builders in the amount of $694 for the removal of a section of piping that was not included in the original bid. 10. Amendment to the Engineering Services Agreement for Great Falls Water Treatment Plant Pump Improvements (OF 1030.4). Amendment to include construction phase services which included oversight and inspection for the pump improvements for a cost not to exceed $11,000. 11. Agreement, 36th Avenue NE Improvements and Maintenance (OF 1234). The reconstruction of a portion of Central Avenue West from 3rd to 9th Streets presented an opportunity to install streetscape improvements, including trees, grates, and vintage lighting. This agreement provided for $42,000 from Cascade County for the cost of the streetscape improvements. In consideration of the City's participation in the improvement and maintenance of 36th Avenue NE, Cascade County also agreed to provide the City its uncommitted CTEP funds for the streetscape improvements on Central Avenue West. 12. Postpone Bid Award, Rubber Tire Asphalt Roller. Postpone bid award to allow Staff additional time to analyze the bids. 13. Postpone Bid Award, seven 1999 Police Vehicles. Postpone bid award to allow Staff additional time to analyze the bids. 14. Postpone Bid Award, 1999 Utility Vehicle. Postpone bid award to allow Staff additional time to analyze the bids. 15. Bid Award, Platform Hoist. Bid Award to lowest bidder meeting specifications, Electric City Brake of Great Falls in the amount of $59,879. Commissioner Downer moved, seconded by Commissioner Beecher, that the City Commission approve the Consent Agenda as printed. Cherry Loney, City/County Health Officer, reviewed the progress of the City/County Health Building construction project. There being no one further to address the City Commission, Mayor Bennett called for the vote. Motion carried 4-0. After the vote was taken, Steve Potts, 224 Skyline Drive NE, stated he would like to address the City Commission regarding Item 15. Mr. Potts, attorney, explained that he was representing Mr. Del Bigelow from Bigelow Enterprises. Mr. Potts added that earlier in the day he had a letter delivered to City staff explaining why Mr. Bigelow did not agree with the Staff recommendation to award the bid to Electric City Brake. In the letter, Mr. Potts identified several areas of concern. The first was that three bids were submitted for the product and Staff did not consider one of them because it did not conform to specifications. Mr. Bigelow's bid and the bid from Electric City Brake were considered. Mr. Potts contended that Electric City Brake's bid did not meet specifications either. Mr. Potts sited, specifically, that Specification Items 12 and 17 were not met by Electric City Brake. Mr. Potts also noted that the product bid by Mr. Bigelow was American made while the product bid by Electric City Brake was made in Italy. Mr. Jim Rearden, Public Works Director, responded to Mr. Potts concerns. Mr. Rearden stated that Staff prepares specifications in a manner that would attract an optimum number of bidders. He explained that there were certain items on the specification list whereby no exceptions were allowed. He stated that Staff also listed items where exceptions would be considered. He explained that by doing this, many different companies could not only bid, but could submit bids for many different models. Mr. Rearden said that four bids were received for this bid award. Two of the bids were for products that did not meet the specifications where no exceptions would be allowed. Mr. Bigelow's bid, and the bid from Electric City Brake, met the minimum bid requirements. Staff then considered each of the products and made a determination that the areas where Electric City Brake did notmeet the specifications, were acceptable. Mr. Rearden reiterated that exceptions are necessary to allow for multiple bidders and without them, the City could be accused of writing proprietary specifications. Mr. Rearden stated that Staff recommended the Electric City Brake hoist because of the direct cost savings; Electric City Brake was a local vendor; and the service and warranty work would be provided locally. Dale Linder, Electric City Brake, offered to answer any questions the City Commission may have had on the hoist he bid. He stated he believed Electric City Brake had the better product. Commissioner Downer stated that, in his opinion, it came down to the service. He added that in light of the information provided by Mr. Potts, he still would support the vote previously made. The other Commissioners concurred.
	CITY MANAGER
Aluminum Rolling Mill. Report.	17A. ALUMINUM ROLLING MILL (SMELTER HILL). Mr. Lawton, City Manager, reported to the City Commission that representatives of Pacific Steel and Recycling and ARCO contacted him to express their intention to demolish the 92,000 square foot aluminum rolling mill building located off Wire Mill Road on Smelter Hill, and perform environmental remediation work on the site. The building occupies a 20-acre parcel, which was acquired by Pacific from ARCO in 1986. As owner of the property, Pacific did not require any approval from the City to demolish the structure. However, because the City and/or County may eventually own this property along with the 286-acre ARCO site, Pacific and ARCO wanted to cooperate fully with both local governments. Mr. Lawton explained that City staff acknowledged that the building was privately owned, and the current owners had sole authority and discretion to determine the future of the structure. However, in view of the location of the structure and the interest by Pacific and ARCO to ultimately transfer ownership of the 20-acre parcel to the public, the public interest in the property and structure should be considered and the public should be informed. Mr. Lawton added the response regarding the future disposition of the structure was based on the following factors: The property upon which the structure was located should be under public ownership in order to better assure that environmental remediation was not disturbed in the future; The property would be better suited for recreation, open space, and non-inhabited uses to be better able to protect the remediated environmental concerns; There would be fewer environmental issues and concerns if the property were accepted without the building because of the many unknowns associated with the environmental condition of the building and its foundation; Most viable uses for the property identified in the Master Plan did not depend upon the building remaining; The historical significance of the structure was not specifically known; and Other past and present community issues and fund raising activities need to be recognized and considered with regard to the community's ability to fund additional ventures. Mr. Lawton said that Staff attempted to identify alternatives to demolition which were viable. He added that should the property be transferred to public ownership with the building in its present condition, the City and/or County would assume at least some liability for lead based paint and asbestos even if the remainder of the 20-acre parcel were remediated. Added to this would be the $1.4 million for renovation as was determined in a report by Thomas, Dean and Hoskins. Mr. Lawton stated that if the property were to remain in private ownership, it would most likely continue to deteriorate with no prospects for reuse just as it has since Pacific purchased it from ARCO. Demolition and full environmental remediation of the site was seen as the most effective and most desirable alternative. In conclusion, Mr. Lawton stated that based on the foregoing factors and related issues, City staff had no objection to the proposal presented by Pacific and ARCO to raze the building, remediate environmental issues, and further consider the transfer of the property to public ownership. Commissioner Gray clarified that this was strictly an informational report and that the City Commission was not being requested to act. City Manager, John Lawton, stated that was correct. Commissioner Gray added that personally, he was not inclined to support the City taking ownership of this type of building.
Bon Building.	17B. THE BON BUILDING. Mr. Lawton reported that the Phase I Environmental Report for the Bon came back clean. Commissioner Gray requested that Staff develop a policy that whenever the City purchases property that a Phase I Environmental Report be conducted.
	ADJOURNMENT
Adjourn	There being no further business to come before the Commission, the regular meeting of October 20, 1998, adjourned at 7:03 p.m.

JOURNAL OF COMMISSION PROCEEDINGSOCTOBER 20, 1998

PUBLIC HEARINGS

OLD BUSINESS

NEW BUSINESS

ADJOURNMENT

JOURNAL OF COMMISSION PROCEEDINGS
OCTOBER 20, 1998