PUBLIC HEARINGS

The analysis for the financing needs in Water, Sewer, and Storm Drain Funds showed the need for rate increases in FY 2001. A combined rate increase of 5.72% was recommended. The Storm Drain rates were based on the existing rates and the rate structure established in 1989. The proposed Water and Sewer rates were based upon a full rate study conducted by Black and Veatch, Management Consultants, which showed that Malmstrom Air Force Base and Black Eagle had not been billed their fair share of water and sewer costs since the existing rate structure was established by the Public Service Commission in 1992. The proposed structure would phase-in rates over a three-year period of time for Black Eagle and Malmstrom Air Force Base until they pay their proportionate share.

Mayor Gray declared the public hearing open. No one spoke in support of the proposed rate increases. Those speaking in opposition were as follows:

Sister Johnelle Howanach who testified that she understood the need to raise rates if it was to keep up with inflation. However, when she read that some of the need for the rate centered around the construction at the Waste Water Treatment Plant she became concerned. She added that the Tribune reported the construction was needed to eliminate odors in the Riverview area. Sister Howanach stated that if the construction was absolutely necessary she supported it, but if it was to just eliminate some odors, she did not support it.

Warren O'Keefe, 2413 16th Street NW, asked the Commission to delay action on the rate increases until April 6 or until the voters knew what the outcome for the bond issue would be as well as the school district bond levy. He reminded the Commission that property owners will be faced with new levies for the library this year as well and didn't want the impact of all these increases to be due at once.

John Augre (sp), stated he was upset because of the recent increases in gas and electricity and it was difficult for the average citizen to keep up. He added that the proposed water rate increase wasn't that bad until it was added in with all the other increases.

Bob Mitchell, 113 Riverview D, stated that the City was asking people to pay more for less. He asked to see a financial statement for the utilities and suggested that the City get that information out to the general public. City Manager John Lawton stated Staff would send Mr. Mitchell the information he requested.

Ron Gessman, 1006 36th Avenue NE, stated that since 1987 the rate payers have experienced a 7% compounded rate increase. He also pointed out there was an error in the Public Notice that was mailed to the residents and suggested if there was a mistake in that, there may be mistakes in the calculations used in the proposed increase.

Sandy Mares, 429 19th Street SW, stated that the billing structure was very complex and suggested that Staff should make an effort to educate the public on it. She added that the City could use the message line on the bill to remind people of the months used when calculating the sewer charges. She asked the Commission to be prudent when setting the schedule for replacement of pipes and other infrastructure suggesting that the City stretch out the life of each pipe a little longer.

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

Commissioner Hinz moved, seconded by Commissioner Jovick-Kuntz, that the City Commission postpone action on Resolution 9135 until April 3, 2001.

Commissioner Rosenbaum stated that it was critical the Commission keep the infrastructure in good repair and fixing an old system was more expensive than replacing it.

City Manager John Lawton stated that much of the cost for water and sewer was driven by federal standards. He added that if the City didn't comply it would face higher costs in fines.

Commissioner Beecher stated that the Commission's primary responsibility was to see that the four cornerstones to a good community foundation were strong. Those cornerstones included police and fire service and water and waste water treatment. He added that while he empathized with the testimony, the Commission was charged with the responsibility of protecting the citizens through sound infrastructure.

Mayor Gray stated that it was essential the Commission maintain excess capacity in the infrastructure in order assist economic development activities.

There being no further discussion, Mayor Gray called for the vote.
Motion carried 4-1 (Commissioner Beecher dissenting).

NEW BUSINESS

This contract was for the emergency retrofit of the HVAC system in the Four Seasons Arena. The existing system could fail and exhaust carbon monoxide into the arena. To ensure the public was protected, carbon monoxide levels were being monitored with a detector in the Four Seasons Arena.

Due to the long lead time for equipment purchase, an abbreviated bidding period was used for this project. Proposals were solicited from three local HVAC contractors. B&B Heating submitted the lowest bid. State law provides for an abbreviated bidding and award procedure when an emergency exists and upon a super-majority vote of the governing body.

Commissioner Beecher moved, seconded by Commissioner Rosenbaum, that the City Commission waive the customary bid requirements, award the contract in the amount of $124,100 to B&B Heating & Air Conditioning for the emergency retrofit of the heating, ventilating and air conditioning system in the Four Seasons Arena and authorize the City Manager to sign the contract documents.

Motion carried 5-0.

CONSENT AGENDA

Commissioner Hinz moved, seconded by Commissioner Beecher, that the City Commission accept the Consent Agenda as printed.

Motion carried 5-0.

PETITIONS AND COMMUNICATIONS

ADJOURNMENT