PUBLIC HEARINGS

Ordinance 2822 would rezone Lot 1, Block 1, Charles Russell Addition, from "LB" Local Business District to "GC" General Commercial District. The subject property is presently occupied by a convenience store addressed as 3200 10th Avenue South, which the owner desired to remodel and expand to accommodate a casino. This change in land use necessitated a rezoning of the property from "LB" Local Business District to "GC" General Commercial District.

The Planning Board conducted a public hearing on the rezoning request on March 11, 2002. It was brought out in the public hearing that the plans to remodel and expand the building would also modify the vehicular access and parking features and add landscaping to buffer the property from the alley and residential area to the south.

The Planning Staff recommended that the rezoning be denied primarily because a General Commercial District would not necessarily be in the best interests of the occupants of the neighboring apartment complex. Section 76-2-304 Montana Code Annotated lists twelve criteria and guidelines which must be considered in rezoning situations. Staff stated that two criteria "promote health and general welfare" and "gives reasonable consideration to the character of the district" were not being met or fulfilled in conjunction with this rezoning request. Staff also provided a list of conditions in the event the Planning Board opted to recommend approval.

After a lengthy discussion at the conclusion of the public hearing, the Planning Board, on a 6-2 vote, passed a motion, recommending the City Commission rezone Lot 1, Block 1, Charles Russell Addition, from "LB" Local Business District to "GC" General Commercial District subject to the following conditions: 1) the rezoning ordinance prohibit vehicular access to subject Lot 1 from 11th Alley South; 2) development of subject Lot 1 shall be substantially in accordance with the site plan accompanying the rezoning application incorporating revisions to accommodate issues contained in the attached Memorandum from the City Engineer; and 3) prior to issuance of a building permit to renovate/expand the existing structure on subject Lot 1, the City Forester shall review and approve the final landscape plan and the Design Review Board shall review and approve final plans for building and canopy design, exterior lighting and signage.

The conditions for approval provided by staff also included a provision that establishments featuring live musical entertainment be prohibited, but that condition was deleted by the Planning Board. Conditional zoning or restricting potentially incompatible uses in sensitive areas is commonly done in zone changes, allowing a generally acceptable project to proceed but provides protection from certain permitted uses that could negatively impact neighboring land uses.

Mayor Gray declared the public hearing open. Those speaking in support of Ordinance 2822 were as follows: Doug Lorello, CTA Architects and Chris Goodman, Hi-Noon. Both requested favorable consideration of the rezoning request thereby allowing significant improvements to the property and giving the Hi-Noon Corporation an opportunity to run a successful business.

Those speaking in opposition to the Ordinance were as follows: Jean Stone, 3225 19th Avenue South; Jane Meyer, 3417 14th Avenue South; Kathy Schlimgen, 3317 15th Avenue South; Stan Meyer, 3225 19th Avenue South; Don Bedker, 3333 17th Avenue South; George Gallagher; John Stone, 325 19th Avenue South; and Jim Schlimgen, 3317 15th Avenue South. Their comments focused on the level casinos have infiltrated our community and that the proposed development would promote additional traffic congestion at the corner of 10th Avenue South and 32nd Street. They all encouraged the Commission to deny the rezoning request.

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

Commissioner Hinz moved, seconded by Commissioner Rosenbaum, that the City Commission deny Ordinance 2822.

Commissioner Beecher stated he understood the concerns of the owners wanting to maximize the revenue from each of their business properties. He also heard and appreciated the concerns of the neighborhood. However, he added, that this was not a gambling issue – it was a zoning issue and in his opinion a request to rezone property should only be granted if there was good cause. He did not believe a good reason was presented and therefore would support the motion to deny the request.

Commissioner Hinz stated that this was not a social or moral tribunal on gambling. She concurred with Commissioner Beecher in that she saw no compelling reason to support the rezoning request. She added that Noon's retained the opportunity to conduct business in that location – they just could not add gaming machines. She said that, in her opinion, the neighborhood concerns outweighed the motivation for the rezoning request.

Commissioner Rosenbaum stated that the neighborhood concerns overrode the desire of the owner to add gaming machines to his business.

Commissioner Jovick-Kuntz concurred with the other Commissioners. She added that, she too, was concerned about additional traffic congestion if the zone change was approved. She agreed with the other Commissioners that this issue was not a gambling issue, it was a request to change zoning on property.

Mayor Gray stated that he opposed the rezone request because the owner of the neighboring property opposed it. He explained that Mr. Plummer placed a large investment in his property with the understanding of how the land was zoned around him and that unless there was a compelling reason, the City Commission needed to honor that original zoning.

There being no further discussion, Mayor Gray called for the vote. Motion carried 5-0.
 

HUD regulations require one public hearing on the Proposed Consolidated Plan which includes the use of 2002/2003 CDBG and HOME funds. The public is also encouraged to comment on the City's overall Community Development Block Grant & HOME program performance and policies. The City Commission must amend and/or adopt the final Consolidated Annual Plan for submittal to the U.S. Department of Housing & Urban Development in order for the City to continue to receive Community Development Block Grant and HOME funds.

The Consolidated Plan is a comprehensive planning strategy required by the U.S. Department of Housing & Urban Development. The Annual Plan portion of the Consolidated Plan includes the proposed use of CDBG and HOME funds for the approaching fiscal year. Community Development Block Grant and HOME Grant project applications were received in February, 2002. A 30-day comment period beginning April 8, 2002 and ending May 7, 2002 was established to receive citizen views on the Proposed Annual Consolidated Plan, the proposed use of 2002/2003 CDBG and HOME funds, and program performance and policies. A copy of the Proposed Consolidated Plan was available for review in the City Community Development Office, the Great Falls Public Library, Opportunities, Inc., Great Falls Senior Citizen's Center, and the Great Falls Housing Authority.

At the end of the 30-day comment period, the City Commission must accept or amend the Proposed Consolidated Plan and authorize submittal of the Consolidated Plan which HUD must receive on or before May 15, 2002.

Mayor Gray declared the public hearing open. The following appeared to address the Commission regarding the proposed plan. James Parker Shield, DJ Lott, Joe DeFrancisci, Maria DeFrancisci, Chris Grotbo, Don Fish, and Cal Gilbert, all of which requested the City Commission to reconsider funding the Indian Family Health Center. In their comments they stressed that they were not connected to the Native American Center. They also provided information about the efficient and professional manner in which the Indian Family Health Center was operated and that this was a program critical to the health and well-being of the Native American population in Great Falls. They requested the City Commission reconvene the CDC to review the proposed allocations and make another recommendation to the City Commission.

Jan Cahill, Neighborhood Council 4, stated he supported the proposed allocation for Park and Recreation.

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

Commissioner Beecher moved, seconded by Commissioner Rosenbaum, that the City Commission close the public hearing on the Proposed Consolidated Plan, and adopt the Consolidated Plan including the 2002/2003 Community Development Block Grant and HOME program funds as recommended.

Further, that the City Commission direct staff to identify any remaining unused funds from past CDBG projects and any future unused funds from this year's CDBG allocation; with the intent to make such funds available, if needed, to assist the Indian Family Health Clinic in meeting their project objectives. Any such funding would have to be used in accordance with HUD regulations.

Mayor Gray asked Kim Johnson, CDBG Administrator, what the dollar amount was for the unused funds. Mrs. Johnson stated that there was approximately $4000 to $5000 remaining from previous years.

Commissioner Rosenbaum stated that because the CDBG report had to be submitted by May 15, 2002, the Commission did not have the time to reconvene the CDC. He supported reallocating any unused CDBG funds to the Indian Family Health Clinic.

Commissioner Jovick-Kuntz stated that she was convinced there was a need in the community that was met by the Indian Family Health Clinic. She agreed with Commissioner Rosenbaum that reconvening the CDC was not appropriate due to the time constraints. She concluded stating that she was not comfortable with the vagueness of merely allocating unused funds. She added that she would be more comfortable if a specific dollar amount was stated in the motion.

Mayor Gray stated that he questioned the use of CDBG funds to purchase space for the Indian Family Health Clinic – he suggested the City could do better than that. He added that they needed to look for leveraging opportunities in the community – such as partnering with the Benefis Foundation and the City/County Health Department. He stated that the mission of the Foundation was to provide medical service to the people who needed it. He said that he would like to encourage our congressmen to seek a tax incentive to medical providers who donated their services to assist with this cause. He concluded that the case had been made regarding the importance of the Clinic and that the Commission and Staff wanted to partner with the supporters of the program to ensure that their needs were met.

Commissioner Hinz encouraged Mr. Lott to apply during next year's CDBG application period.

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

At this point in the meeting Mayor Gray turned the gavel over to Mayor Pro-tempore Beecher. Mayor Gray stated he needed to attend a public hearing being held by the Public Service Commission in another area of town.
 

OLD BUSINESS

NEW BUSINESS

ORDINANCES/RESOLUTIONS

The three honored Neighborhood Councils formed park development subcommittees at the request of residents near the parks. These groups embraced the idea of raising additional capital improvement dollars through fund-raisers, in-kind donations, and grants in order to leverage the available funds and provide amenities in their parks. The three park subcommittees raised in excess of $70,000 toward improvements. Additionally, these three groups provided inspiration to other councils for projects to come, all of which will contribute to the continued beauty of our park system in Great Falls.

Commissioner Jovick-Kuntz moved, seconded by Commissioner Rosenbaum, that the City Commission adopt Resolution 9232.

Motion carried 4-0.
 

The City Manager is authorized by the City Charter and by City Ordinance to transfer, eliminate and add to departmental functions. During the past year, City Manager John Lawton made several changes to the administrative structure of the City. Ordinance 2825 was written as a housekeeping ordinance in order for the City's code book to accurately reflect the current structure of the City.

Commissioner Jovick-Kuntz moved, seconded by Commissioner Hinz, that the City Commission accept Ordinance 2825 on first reading and set the final reading date for May 21, 2002.

Motion carried 4-0.
 

Adoption of Resolution 9230 sets a public hearing for June 4, 2002, for consideration of annexing a 3.959 acre tract of State land located immediately east of Market Place Subdivision. The State Department of Natural Resources and Conservation will be leasing subject property to a party planning on constructing a 98 room Hampton Inn on the site.

The State of Montana Department of Natural Resources & Conservation (DNRC) submitted applications for annexation of approximately 4 acres in the W 2 SE 3 of Section 15, Township 20 North, Range 3 East; and rezoning the area from the current County "R-1" Suburban Residential District to the City "GC" General Commercial, "C" Area District.

The land to be annexed is located south of the I-315 Interchange between 14th Street Southwest and the Burlington Northern Santa Fe Railroad. DNRC is in the process of securing a lessee who will develop the site.

The abutting portion of 14th Street Southwest is improved to city standards and contains water and sanitary sewer mains and paving, curb and gutter. Reimbursement is owed to the City for the sanitary sewer main and reimbursement is owed to Macerich Management Company, the developers of Market Place Subdivision, for the water main and roadway improvements.

The Planning Board, on June 26, 2001, conducted a public hearing on the annexation. At the conclusion of the public hearing, the Planning Board passed a motion recommending the City Commission annex the subject 4 acre tract of land subject to the following conditions being fulfilled by the applicant: 1) payment of all applicable fees owed as a condition of annexation approval; and 2) entering into an agreement with the City agreeing to the typical terms and conditions associated with annexation.

Commissioner Hinz moved, seconded by Commissioner Rosenbaum, that the City Commission adopt Resolution 9230 expressing intent to annex a 3.969 acre tract of State land on 14th Street Southwest and setting a public hearing on the annexation on June 4, 2002.

Motion carried 4-0.
 

Ordinance 2824 assigns a zoning classification of "GC" General Commercial, "C" Area District, with limitations to a 3.959 acre tract of State land located immediately east of Market Place Subdivision.

Commissioner Rosenbaum moved, seconded by Commissioner Hinz, that the City Commission accept Ordinance 2824 on first reading and set a public hearing for June 4, 2002, to consider adoption of Ordinance 2824.

Motion carried 4-0.
 

Adoption of Resolution 9226 authorizes the issuance and fixes the terms and conditions of $8,030,000 Water System Revenue Refunding Bonds, Series 2002A. The resolution also creates special funds and accounts and pledges certain revenues as security for such bonds and any additional bonds issued in the future. Remaining payments related to the $3,000,000 Water System Revenue Bond (DNRC Drinking Water Revolving loan program), Series 2000, are now repayable solely from Water Fund Revenues.

On February 19, 2002, the City Commission adopted Resolution 9216, authorizing staff to proceed with creating separate water and sewer funds for debt issuance purposes and to proceed with the issuance of refunding bonds to retire outstanding water and sewer system bonds issued in 1992 and 1996. The Mayor, City Manager and City Controller reviewed and approved the refunding pricing on April 16, 2002, and the Commission adopted Resolution 9224, accepting the form, terms, and security of the refunding bonds. This refunding will provide net savings in the amount of $491,019 over the next 14 years.

Commissioner Jovick-Kuntz moved, seconded by Commissioner Rosenbaum, that the City Commission adopt Resolution 9226.

Motion carried 4-0.
 

Adoption of Resolution 9227 authorizes the issuance and fixes the terms and conditions of $6,470,000 Sanitary Sewerage System Revenue Refunding Bonds, Series 2002A. The resolution also creates special funds and accounts and pledges certain revenues as security for such bonds and any additional bonds issued in the future.

On February 19, 2002, the City Commission adopted Resolution 9216, authorizing staff to proceed with creating separate water and sewer funds for debt issuance purposes and to proceed with the issuance of refunding bonds to retire outstanding water and sewer system bonds issued in 1992 and 1996. The Mayor, City Manager and City Controller reviewed and approved the refunding pricing on April 16, 2002, and the Commission adopted Resolution 9224, accepting the form, terms, and security of the refunding bonds. This refunding will provide net savings in the amount of $603,156 over the next 10 years.

Commissioner Hinz moved, seconded by Commissioner Rosenbaum, that the City Commission adopt Resolution 9227.

Motion carried 4-0.
 

As part of the issuance process related to the proposed Series 2002B Sanitary Sewerage System Revenue bonds, the City is required to pass Resolution 9228 to authorize the issuance and fix the terms and conditions of the series 2002B bonds. This debt commitment is obligated to the same terms and conditions as other sanitary sewerage debt obligations authorized by Resolution 9227.

Resolution 9227 authorized the issuance and fixed the terms and conditions of the 2002A Sanitary Sewerage System Revenue Refunding Bonds, created special funds and accounts, pledged certain revenues as security for such bonds, and any additional bonds.

The City has ongoing capital project needs requiring the issuance of Sanitary Sewerage Revenue Bonds in the amount of $12,100,000. A rate study and financing analysis conducted by Black and Veatch provides assurances that current rates are capable of supporting this debt issuance. The Black and Veatch study also addresses proposed future rate increases and the ability to fund additional debt commitments over the next five years.

On June 6, 2000, the Commission approved Resolution 9083 authorizing a Commitment Agreement for the issuance of Revenue Bonds through the Drinking Water State Revolving Fund Program. On October 16, 2001, the Commission awarded a construction contract to Sletten Construction Company for the WasteWater Treatment Plant Solids Handling Project, (O.F. 1176.1). On February 19, 2002, the Commission approved Resolution 9216, which, among other things, reaffirmed the intention of the City to issue these bonds through a program administered by the Department of Natural Resources and Conservation of the State of Montana (DNRC) and the Department of Environmental Quality (DEQ). This program provides a funding source for sanitary sewer construction projects at competitive interest rates. The interest rate charged for this financing is 4% plus a one-time origination fee of 1%. Administrative fees under the DNRC program are comparable to Issuance Costs related to a traditional bond financing.

Dorsey & Whitney will serve as bond counsel to DNRC. In this capacity, they prepare necessary ordinances and resolutions for approval by the City Commission and the DNRC. They will also provide assurance that the procedures used to issue the bonds are in compliance with rules and regulations regarding the issuance of tax exempt revenue bonds, and also in compliance with existing parameters of any outstanding Sewer Revenue Bonds of the City.

Commissioner Rosenbaum moved, seconded by Commissioners Hinz and Jovick-Kuntz, that the City Commission adopt Resolution 9228.

Motion carried 4-0.
 

The property owner is renovating the building at 500 10th Avenue South (Bison Motors). The building permit was issued January 10, 2002, and the project will be completed in July 2002, at an estimated cost of $857,000. The applicants requested approval of the tax benefits and Resolution 9229 was prepared to comply with the requirement that all applications be approved by resolution. Approval of the application will allow for the taxes generated from the expansion to be added to the existing taxes over a five-year period in increments of 20 percent each year. MCA 15-24-1501 provides the local government option of giving Tax Benefits for the Remodeling, Reconstruction or Expansion of Existing Buildings or Structures. The law governing this incentive was amended in 1985 requiring that each local governing body (City and County) approve the Tax Benefit on a project by project basis. If one local government body approves the tax benefit and the other does not, the benefit will apply only to the mills levied by the approving governing body. In addition, tax benefits do not include any relief from state-wide levies and local government approval of the application must be by resolution.

The City Commission's policy regarding the approval of remodeling tax benefits was established in the late 1980s and requires that all property taxes on all property owned by the applicant be current and that the applicant be allowed to take advantage of only one City program available to provide local development assistance. This policy came about as a result of concern that certain projects were taking advantage of extremely low interest rate, City sponsored new construction or rehabilitation loan programs designed to improve building conditions, improve blighted areas and expand the tax base. After receiving the low interest loans, some developers were then applying for the reduction in property taxes, which had the net effect of canceling some of the benefits the City was supposed to derive from making the original loan.

In applying this policy to the application received from the current owners, we find that all property taxes are current and that the applicants have not received City financial assistance from other programs.

Commissioner Rosenbaum moved, seconded by Commissioner Jovick-Kuntz, that the City Commission adopt Resolution 9229.

Motion carried 4-0.
 

On April 2, 2002, the City Commission adopted Ordinance 2819 establishing a procedure for the removal of abandoned and junk vehicles. The Ordinance stipulated that the City Commission determine and fix the administrative fee, an amount to be assessed as administrative costs under this chapter. Said administrative fee shall be in addition to the actual costs incurred regarding towing, storage and disposal of the vehicle. The administrative fee shall be set by resolution. Staff recommended that the fee be set at $50 to offset costs incurred to enforce this ordinance.

Commissioner Jovick-Kuntz moved, seconded by Commissioner Hinz, that the City Commission adopt Resolution 9231.

Motion carried 4-0.
 

CONSENT AGENDA

Commissioner Jovick-Kuntz, seconded by Commissioner Rosenbaum, that the City Commission approve the Consent Agenda as printed.

Motion carried 4-0.
 

BOARDS AND COMMISSIONS

Robert Harris was appointed to the Historic Preservation Advisory Commission in April of 1999. Mr. Harris was interested in serving another term. He also serves on the Advisory Commission on International Relationships. Kenneth Robison was appointed in May of 2001 to fill the remainder of a three-year term. Mr. Robison was interested in and eligible for reappointment. Sandra French resigned her position; therefore, it was necessary to appoint one new member to fill the remainder of her term.

Commissioner Jovick-Kuntz moved, seconded by Commissioner Rosenbaum, that the City Commission reappoint Robert Harris and Kenneth Robison to another three-year term through April 30, 2005, and appoint Katrina Stark to fill the remainder of the term expiring April 30, 2003, vacated by the resignation of Sandra French to the Historic Preservation Advisory Commission.

Motion carried. 4-0.
 

O.P. Morrow was appointed to the Golf Advisory Board in 1997 as an at-large representative. Mr. Morrow was eligible for and interested in reappointment. The terms of Lance Olson (Men's Association) and Bob Lander (Malmstrom League) expired on April 30, 2002. Mr. Olson was not eligible to be reappointed, and Mr. Lander was not interested in reappointment.

Openings were advertised and applications were received for the Men's Association; however, no Malmstrom League representative applications were received. It was recommended that the Commission appoint the replacement to the Men's Association at this time and continue to seek applicants from MAFB.

Commissioner Jovick-Kuntz moved, seconded by Commissioner Hinz, that the City Commission reappoint O. P. Morrow as the At-Large representative for another three-year term expiring March 31, 2005, and appoint Dennis Secord, the Men's Association representative for a three-year term beginning April 1, 2002, and expiring March 31, 2005, to the Golf Advisory Board.

Motion carried 4-0.
 

CITY MANAGER

ADJOURNMENT