PUBLIC HEARINGS

OLD BUSINESS

OF1176.1 Financial Advisor for the Bond Issue. Approved.

D.A. Davidson subsequently resigned as Financial Advisor.

D.A. Davidson and Co. submitted a proposal to provide financial advisory services related to the issuance and sale of water and sewer revenue bonds to finance construction of the sanitary sewerage solids handling system at the wastewater treatment plant. The agreement outlines the services to be provided. Services include items such as the review of financial information for the issuance and payment of debt, method and timing of bond sale(s), consultation with bond counsel, preparation of bond prospectus, assistance in the sale and delivery of bonds, and preparation of application materials for bond ratings and/or bond insurance with coordination of presentations to rating agencies and insurers. The cost proposed for this service was $14,000 for a single bond sale. If it was determined that multiple issues present a favorable option then the fee will be $9,000 per sale. Costs of advertising, printing, distributing of Official Statements, paying agent, registration charges, and bond counsel would be the responsibility of the City. D.A. Davidson & Co. shall be responsible for costs incurred in the performance of its obligations, including travel expenses and related costs. This amount is payable solely upon the sale of the bonds. D.A. Davidson & Co. are the sole in-state providers of financial advisory services in Montana.

The financial advisor cost is part of the cost of issuance for the bonds. That cost is capitalized into the bond issue and paid back through debt service. There would also be costs of issuance under the SRF borrowing. An exact comparison is not possible at this time because not all costs are yet known.

On June 5, 2001, the City Commission approved Resolution No. 9161, entering into a Commitment Agreement with Department of Natural Resources and Conservation (DNRC) to finance the project through the State Revolving Fund (SRF). On October 16, 2001, the City Commission awarded a construction contract to Sletten Construction for $9,297,000, which was under the "Engineer’s Estimate" of $10,000,000 to $11,000,000. It was determined that Sletten Construction was the responsive and responsible bidder. This determination was based on the recommendations of Neil Consultants, and further confirmed by the City Engineer and the City Attorney in relation to bid laws contained within Montana State Statutes.

On November 15, 2001, the City Manager sent a letter to DNRC terminating the Commitment Agreement. The termination was precipitated by DNRC’s inability to provide financing of the project without the Department of Environmental Quality (DEQ)’s approval of the contract award. DEQ reviews SRF funded projects on behalf of the Federal Environmental Protection Agency (EPA) which participates in the funding. As a result of this review process, DEQ requested the City Commission take additional official action regarding the reasoning for the selection of the project contractor. Staff has taken the position that this additional action is unnecessary since the bid was properly awarded on October 16. In addition, upon awarding the bid, a binding contract was consummated and would not legally permit further consideration of such bid award as suggested by the DEQ. On November 21, 2001, DNRC acknowledged receipt of the termination of the Commitment Agreement.

It should also be noted that Dorsey & Whitney, LLC have agreed to act as bond counsel for this financing.

Commissioner Beecher moved, seconded by Commissioner Rosenbaum, that the City Commission accept the proposal from D.A. Davidson to serve as the Financial Advisor on the Bond Issue for the Waste Water Treatment Plant.

Motion carried 5-0.
 

NEW BUSINESS

The current contract for parking services expires on December 31, 2001. Staff solicited proposals in early September. Proposals were due on November 13, 2001 and three proposals were received.

The request was structured for a three-year proposal with an option for an additional three years.

To compare prices, the 2001 cost for the service is $224,640.00. The 2002 cost under the new contract would be $225,800.00 for an increase of approximately 1%. The new contract provides for 4% increases in the second and third years. The optional three years also have annual 4% increases.

Commissioner Hinz moved, seconded by Commissioner Rosenbaum, that the City Commission accept the proposal from APCOA for parking enforcement/services.

Motion carried 5-0.
 

ORDINANCES/RESOLUTIONS

Ordinance 2813 amends the size of the Civic Center Advisory Board from a nine member board to one that is not less than five or more than seven members for the composition of the Civic Center Advisory Board.

Commissioner Jovick-Kuntz moved, seconded by Commissioner Beecher, that the City Commission accept Ordinance 2813 on first reading and set a final reading for December 18, 2001.

Motion carried 5-0.
 

Ordinance 2814 re-establishes the Commission salary by ordinance as required by the City Charter.

Commissioner Rosenbaum moved, seconded by Commissioner Beecher, that the City Commission accept Ordinance 2814 on first reading and set a final reading for December 18, 2001.

Motion carried 5-0.
 

CONSENT AGENDA

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

Motion carried 5-0.
 

BOARDS AND COMMISSIONS

Staff recommended the City Commission appoint citizens to the committee from the following groups: Two sign industry representatives, two business representatives, and two citizens interested in improving the visual quality of Great Falls.

The Planning Board appointed Greg Madsen, and the Chamber of Commerce has appointed Tom Alfrey. The Design Review Board Civic Center Advisory Board will appoint its representative at the next meeting.

City staff serving on the Committee includes: Cheryl Patton, Assistant City Manager; Mike Rattray, Community Development Director; Bob Horne, Planning Director; Jon Thompson, City Forester; and Kim Thiel, Neighborhood Council Coordinator.

The current Sign Code, adopted in the mid 1970's, has been amended in part from time to time. However, there has not been a major review in over 20 years. The current code's main intent was to address safety issues. This was reflected in both the purpose of the code and in its regulations.

Commissioner Hinz moved, seconded by Commissioner Rosenbaum, that the City Commission appoint: Gary Walrack, Ty Rembe, Dave Pierce, Chuck Olson, Jenny Yoneji and Stuart Nicholson to the Sign Code Review Committee.

Motion carried 5-0.
 

The terms of Randy Kuiper and Judith Sargent expire on December 31, 2001. Mr. Kuiper was appointed on August 15, 2000, to fill the remainder of a vacated term, and Ms. Sargent was appointed on March 20, 2001, to fill the remainder of a vacated term. Therefore, both Mr. Kuiper and Ms. Sargent were eligible to be reappointed. The Civic Center Advisory Board recommended their reappointment.

Commissioner Jovick-Kuntz moved, seconded by Commissioner Beecher, that the City Commission re-appoint: Randy Kuiper and Judith Sargent.

Motion carried 5-0.
 

ADJOURNMENT