PUBLIC HEARINGS

In April, the City and County Commissions conditionally approved the preliminary plat of Skyline Park Addition, Phases 8-16, a 127 lot single family residential subdivision located north of Skyline Education Center. Jim Workman Construction requested to final plat and complete the annexation process for Phase 8, consisting of 15 lots along segments of 4th Street Northeast and 37th Avenue Northeast. Water and sanitary sewer mains, paving, curb and gutter will be installed in the segments of 4th Street Northeast and 37th Avenue Northeast.

A storm sewer main is planned to be installed from the west boundary of the City's Northeast Regional Storm Water Retention Facility, which will be extended through the subdivision for Phase 8.

The Planning Board, during a meeting held May 28, 2002, recommended approval of the final plat of Skyline Park Addition, Phase 8, and annexation of the area contained therein subject to the following conditions: the applicant shall execute an Annexation Agreement acceptable to the City of Great Falls and shall submit the appropriate supporting documents referenced in the Agreement; all applicable fees and charges due as a consequence of either plat or annexation approval shall be paid by the applicant; any errors or omissions on the final plat noted by staff shall be corrected; and final engineering documents for the required public improvements to serve the subdivision were subject to approval by the Public Works Department.

Ordinance 2827 assigns a zoning classification of "A" Residence Use, "A" Area District, to Skyline Park Addition, Phase 8, upon annexation. The property is located north of Skyline Education Center and the subdivision consists of 15 single family lots along segments of 4th Street NE and 37th Avenue NE.

Mayor Gray declared the public hearing open on Resolution 9259 and Ordinance 2827. No one appeared to speak in support of or opposition to the annexation. Mayor Gray closed the public hearing.

Commissioner Beecher moved, seconded by Commissioners Jovick-Kuntz and Rosenbaum, that the City Commission adopt Resolution 9259 and approve the final plat, Annexation Agreement and four easements for Skyline Park Addition, Phase 8.

Motion carried 5-0.

Commissioner Jovick-Kuntz moved, seconded by Commissioner Rosenbaum, that the City Commission adopt Ordinance 2827.

Motion carried 5-0.
 

OLD BUSINESS

Fairgrounds Manager Patty Gumenberg reported that rates for most of the facilities located on the fairgrounds were last raised in 1996. The Four Seasons Arena rates were phased in over a period of 3 years. Rates to use some of buildings have not increased in many years.

Mrs. Gumenberg explained that for ice programs, rates of $38/hour non-prime and $71/hour prime were approved by the City Commission in 1994. These rates were adjusted to meet rising expenses in 2000. At that time, they were set at $71/hour for the larger contracted users with a preset amount of hours and $91/hour for non-contracted users.

She added that costs have continued to escalate over the past several years with substantially large increases in the recent few years for utilities and property and liability insurance. The proposed rate increases were necessary to keep Montana ExpoPark financially solvent. Market surveys were conducted and the proposed rates fell within or below the average ranges. All Montana ExpoPark rates were approved by the Montana State Fair Advisory Board and the Four Seasons Arena Board.

Mrs. Gumenberg added that during the public hearing, several opponents opposed the 41% increased. She explained that this percentage was accurate for those who in the past had taken advantage of the discount allowed for contracted ice or the $71/hour rate. However, for non-contracted users the proposed rates reflected a 21% increase. She said that on the surface this looked like a drastic increase, however other issues needed to factored in. She reviewed the issues as follows:

No substantial rate increases for contracted ice users have occurred since the 1992-1993 season when rates went from $65 to $70 for prime time ice.

When the proposed increase was spread out over the 11 year period of time (from 1993 to 2003), the increase was equivalent to 4% a year.

A substantial user fee increase was something the City tried to avoid in the past. That was why every year the water and sewer rates were evaluated and adjusted accordingly rather than taking large increases at one time.

In FY 2000, the City delayed the needed rate increases and requested the major ice users contract for more ice time instead. However, even with the increased ice time the Fairgrounds Ice Arena lost money. From FY 1996 to FY 2001 the Recreation Ice Fund averaged operating losses of $21,483 a year.

The proposed increases were needed to cover the current expenses of the Ice Arena. Electricity alone in the last two years has gone up over 30%.

The proposed increases do not address the $69,987 loss in the Recreation Ice Fund that the Fairgrounds inherited when management of Recreation Ice transferred from the Park and Recreation Department to the Fairgrounds Department. It also does not include capital funding for needed improvements at the Four Seasons Arena. Most of the capital improvements needed directly tie to Arena Ice. The major improvements of the ice floor and dashers have an estimated cost of $680,000. The new bleachers and ice covering system would be an additional $492,000.

The Great Falls Youth Hockey Association does have an economic impact to the community. The association estimated the impact to be $1.3 million a year. When compared to other events, the estimated impact of one weekend event at the Arena, such as a basketball tournament, is $1 million dollars.

Water usage in the Four Seasons Arena is metered. All water used for the Four Seasons Arena was allocated appropriately. In FY 2002, the Fairgrounds Department noticed increases in water usage throughout the Fairgrounds. Many things were looked at to explain the increase. The Public Works staff, an Engineer out of Denver, and Fairgrounds staff investigated the increased water usage. The Engineer out of Denver had high-tech listening equipment that noted all water leaks. Small leaks were noted. The leaks were fixed. Water usage was still up. The only explanation for the difference in usage was that prior to Fair Week a post indicator valve was opened to provide additional water for the Fairgrounds. The water that came out of this valve was not metered. The valve was not closed completely until FY 2002. The Fairgrounds in the past may have been receiving water that was not metered, nor charged. Mrs. Gumenberg added that there was an error in the information she provided the Commission regarding the budget for water. She said that the information said there was an increase of $60,000 for water. However, it should have read that there was an increase of 60,000 units resulting in a $27,000 increase.

Mrs. Gumenberg explained that during the public hearing, one person stated that the new rates were already implemented. She responded stating that rate increases for the Fairgrounds were not implemented prematurely. There were certain charges that were not approved directly by the City Commission, but the rates were derived from Commission approved rates. The proposed new rates were posted at the arena for public record. Some men's hockey teams have been paying additional money, but the money was going toward their accounts, and their accounts had been charged accordingly. One individual (out of many skating) was charged the proposed rate in error during a public hockey session and the mistake was corrected.

Mrs. Gumenberg reminded the City Commission that the City Manager proposed three alternatives as possibilities to supplement the ice program instead of increasing ice rates.

The first scenario was that the General Fund could be used to supplement the ice program. The General Fund had already been supplementing the ice program for several years. Every time Arena Ice experienced a cash shortage, the General Fund loaned Arena Ice money to cover expenses. A $69,987 loss existed in the Recreation Ice Fund when management was taken over from Park and Recreation by the Fairgrounds. Currently the General Fund does not have excess revenue. If $100,000 a year was used from the General Fund to supplement Arena Ice current programs staff would need to be cut that are paid for from the General Fund. Several scenarios include: 1) Cut two Police Officers for a savings of $101,066; 2) Cut two Firefighters for a savings of $105,438; 3) Cut three Park Division Personnel for a savings of $115,313; 4) Cut subsidy to Swimming Pools for a savings of $128,896; 5) Cut subsidy to the Recreation Fund for a savings of $118,760; or 6) Cut subsidy to the Civic Center Events fund for a savings of $152,500.

All of the above options have long range implications. If police officers and fire fighters were cut, public safety would be affected. If three park division personnel were cut, (the Division has only 10 full time employees now), parks would not be maintained. If the City Commission cut the subsidy to the swimming pools, the Natatorium and Neighborhood Pools would need to be closed. If the subsidy to the Recreation Fund was cut, the Community Recreation Center would need to be closed and the Ice Breaker Road Race may no longer exist. The Multi-Sports complex may also see cuts in services. If the subsidiary to Civic Center Events was cut, the Symphony, Community Concerts and other cultural events would not be as affordable. Also rates in the Civic Center for community events such as the Farmers Market or "Blues and Brews" would dramatically increase. Other options could also be looked at, but the same type of cuts would happen.

The second scenario, to cut the scope of the ice skating program, would save money. The two full time staff and part time employees could be cut. This would save the Ice Arena approximately $93,781. However, the decrease costs would lead to decreased revenue. The Ice Arena staff runs the Great Falls Figuring Skating Program, Adult Summer League Hockey, Public Skating, Learn to Skate Programs, and the Little Americans Lessons. Fifty-one percent of the total billable ice time, is attributed to City staff. These programs through June 2002 have generated $55,143 in revenue a year. The net savings of these cuts may only be $38,638 or less, depending if part time staff would be needed for scheduling ice events. Besides lost revenue other problems may occur such as scheduling conflicts, billing problems, and an actual decrease in all skating programs not just the ones run by Fairgrounds staff.

One ice floor could be closed. Currently, ice is only being utilized 50% of the time. The savings in utility expenses would be approximately $31,576. Closing one sheet of ice means that ice would only be available for six months out of the year. Contract ice revenue may also decrease by approximately $34,623. However, if the Capital Improvements of approximately $1.1 million that were needed to maintain two sheets of ice were factored in, the City would save a substantial amount of money by closing one sheet of ice. Some of the capital improvements would still be needed but, the major cost of replacing the floor of $550,000 could be deferred. In addition, one maintenance worker may not be needed with a cost savings of approximately $39,000.

The third scenario suggested by the City Manager was to reduce the level of service elsewhere at the Fairgrounds and in effect put the money into ice skating by keeping rates below cost. This could be done. At least three maintenance staff would need to be cut to make up the needed revenue. If actual buildings were closed, the outside area of the Fairgrounds would still need to be maintained which includes 100 acres of land and 35 buildings. This would have to be done with 6.5 maintenance workers. In addition, if maintenance workers were cut, the Fours Seasons Arena would lose services currently provided. Arena Ice is labor intensive. Thirty percent of all direct labor costs of the Fairgrounds are attributable to the Arena Ice program.

Mrs. Gumenberg relayed the following statistics: If programs that the City's General Fund currently subsidizes, (the Swimming Pools and Recreation (Community Recreation Center, Ice Breaker Road Race, Multi-sports Complex)), goes away many people would be affected. For example, the Swimming Pools attendance records for the summer of 2001 showed that over 9,787 people were admitted to neighborhood pools and 23,123 attended the Mitchell Pool.

On average 175 children participate in the many different programs offered at the Community Recreation Center. Some of the programs offered include School's Out Fun Camps, Home School Physical Education, JUMPSTART After School Program, Start Smart Program, KIDS Summer Camp, and Pre-school Creative Movement Class. In addition, there are adult and noon basketball leagues in which 230 adults participate.

Ice Breaker Road Race averages 3,200 to 3,500 participants. This race is considered one of the Top 100 road races in the nation, without a General Fund subsidy may not happen.

Over 150 slow pitch softball teams totaling 2,250 people played games at the Multi-Sports complex. This does not include the spectators and fans.

The City does not subsidize soccer. In fact, soccer participants pay the City for use of City Parks. In 2000, 2,980 children played soccer in Great Falls.

Following Mrs. Gumenberg's report, Mayor Gray asked for direction from the City Commission.

Commissioner Rosenbaum moved, seconded by Commissioners Jovick-Kuntz and Beecher, that the City Commission remove resolution 9256 from the table.

Motion carried 5-0.

Commissioner Beecher moved, seconded by Commissioner Rosenbaum, that the City Commission adopt Resolution 9256.

Mayor Gray asked for comments by the City Commission. Commissioner Rosenbaum stated that the same mill levy has been supporting the Four Seasons for 15 years and that the County Commission should look at increasing it. Until then, he stated, the users of the facility will have to bear the burden of increased expenses.

Commissioner Hinz said that she heard a marketing plan was promised after the rate increase in 1996. Patty Gumenberg stated that a marketing plan was written and implemented. The plan included direct mail marketing and paid advertising and listing in trade magazines. She added that in addition to that the following marketing activities were done: staff followed up on all possible leads; staff provided excellent customer service which led to referrals; staff was aggressive with the use of the City's website for marketing purposes; and staff worked hard to rebuild the customer base lost due to conflicts with the arena during the winter months.

Mayor Gray asked if anyone in the audience wished to address the Commission. He stated that as long as their comments were new and not repetitive of the public hearing, they were welcome to address the Commission.

Mike Cotter, stated that the economic impact for youth hockey alone was $1.3 million. He added that he wrote two letters to City staff regarding this issue and did not receive a reply. He reiterated the points he made that were left unanswered: How much of the wages incurred at the Fairgrounds were applied to the Four Seasons? The rates were increased in 2000 when ice users were required to contract at $71/hour for prime-time ice. It has been 24 months since the last rate increase, not 6 years as staff reported. He stated that now staff requested a 41% increase in rates. The Commission should consider that with the mill levy dedicated to the Four Seasons and with reasonable rates, the Four Seasons should break even. Mr. Cotter suggested that City staff subscribed to the Arthur Anderson method of accounting.

Donna Garton, 2604 4th Street NE, stated that the purpose of the Four Seasons, in 1977, was for an ice facility. She stated that earlier she contacted the City's Risk Specialist, Kelly Audet, for an explanation of the insurance rate increases. She stated that Mrs. Audet explained that the insurance rates only increased 7%. She added that Commissioner Rosenbaum stated on August 6, 2002, that businesses should increase their prices 7% each year to offset inflation and other cost increases. She asked that the City Commission reject this resolution and consider a 7% increase instead. Ms. Garton also recommended that a way the Four Seasons could generate additional income was to provide concessions during practice times. She stated that most of the time she feeds her children fast food on their way to practice. She suggested that if the concession stand was open, she would have her children eat there. She added that if the Fairground staff did not want to operate the concessions then, that one of the teams could operate it in order to generate additional revenue to be used to offset ice user fees.

Joe McMahon, suggested that if the City could come up with money to assist with horse racing then money should be available to ease the burden of the proposed rates. He asked if the insurance increase at the Four Seasons was due to old equipment.

Drew Garton, 2604 4th Street NE, explained that hockey has taught him about life and team work and it would be sad if he had to quit because he couldn't afford it.

Eric Ray, stated that the City stopped chasing rainbows because they found their pot of gold with the ice users. He said that the PowerPoint presentation provided by Staff explaining the need for the rate increases was full of lies and innuendos and that the Commission should vote no for the rate increases until the real facts regarding the expenses were known.

Bill Ramsey, chairman of the Fair Advisory Board, asked that when the emotion was taken out of this issue, it all boiled down to being able to pay the bills associated with the use of the Four Seasons. He added that the Fairgrounds staff was exceptional and always provided accurate and timely information. He suggested that if someone wanted information regarding the operation of the Four Seasons, that information was public and all they had to do was ask for it.

Kelly Audet, City of Great Falls Risk Specialist, explained that the Special Events Liability Insurance increased 7%. However, other insurances necessary for the operation of the Four Seasons increased as well. She added that the information provided by Mrs. Gumenberg was accurate.

Tonya Scheff, 325 34th Avenue NE, reviewed many of the fund raisers conducted by the hockey organizations to help offset user fees.

Martin Tripplett, 625 Carol Drive, stated that the new rates would mean an increase to his organization of $20,000 per year. He asked what would happen if his organization just used $20,000 less in ice time? He also expressed concern about scheduling ice events and practice time since they don't have a contract in place. Mrs. Gumenberg stated that she was aware of those concerns and as soon as the rates were set by the City Commission, she would begin working on the contracts.

Paul Stevens, 820 3rd Avenue North, suggested that if the cost increases at the Four Seasons were primarily with utilities, that the City just not charge the Four Seasons for them. He explained the City managed both entities anyway and that through accounting procedures the problem could go away.

There being no one further to address the Commission, Mayor Gray asked the Commission for their comments.

Commissioner Beecher stated that he was satisfied that the financial information provided was accurate. He explained that the Commission received monthly data from the Fairgrounds and spends 5 days each year reviewing the budgets for all the City departments. He said the simple truth was the City does not have the funds it takes to meet everyone's needs and while no one likes to see fees increase, the Commission had a fiduciary responsibility to balance the budget.

Commissioner Jovick-Kuntz stated that this was a tough decision. She has a child in the hockey program and does not want to see the price increase. However, as a Commissioner, she has no choice but to balance the budget and would support the motion to adopt the resolution.

Commissioner Hinz stated that the testimony before the Commission focused on ice user fees. However, all the fees for the use of the fairgrounds were increasing. Yet, the Commission did not hear one negative comment from other users of the fair. She concluded stating that there have been no other workable ideas or suggestions presented that would balance the budget other than to increase the rates.

Commissioner Rosenbaum stated that perhaps a joint market feasibility study and audit could be conducted with Cascade County. He added that there were a lot of suspicions regarding the bookkeeping practices for the Four Seasons and he wanted to put them to rest. He concluded that the City was in a difficult position right now with the uncertainty of the future management of the fairgrounds. However, the budget must be balanced and increasing the rates was the only way to do that.

Mayor Gray stated he supported the motion because the Commission's fiscal responsibility was serious business. He noted that the ice program was the most heavily subsidized sport activity in Great Falls. He suggested that they look to the business community for more sponsors of their program. He also noted that their participant numbers were decreasing. He said that he puts great stock in the recommendations from the advisory boards. In this case the Fair Board and the Four Seasons Board reviewed the rates and recommended the Commission approve them. He said that one basketball event has the same economic impact that a season for youth hockey had and it was imperative the Commission looked at that as well. And, while the Four Seasons may have been built as an ice facility, it's use now is as an all-purpose facility that was paid for by all the taxpayers in Cascade County.

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

NEW BUSINESS

The project will replace existing security fence along the north side of the Fairgrounds. The Contractor will install new sidewalk including ADA (Americans with Disabilities Act) compliant handicap ramps, landscaping, and new irrigation.

The funding for the project is a cooperative effort between the State of Montana and City of Great Falls. The State's participation is 86.58% and the City's participation is 13.42% of the project. The work is located in the State's right-of-way, along the Northwest Bypass from Sixth Street Northwest to Third Street Northwest, and provides an opportunity to make some very desirable repairs and improvements to the Fairground property.

The main items include: replacing 2200 lineal feet of aging fence from the North entrance gate to Third Street Northwest, with a new 8 foot high chain link security fence; installing approximately 13,440 square feet of sidewalk along the Northwest Bypass; installing new driveways and handicap ramps to meet ADA requirements; and installing new landscaping, and an irrigation system. These items will improve pedestrian travel, beautify the area, and help to insure the security along the north boundary of the Fairgrounds property.

City staff designed the project and insured that Federal regulations were met. City County Planning and Montana Department of Transportation personnel provided assistance with plan review and project administration. City staff will perform inspection and administration duties.

Mayor Gray asked if Cascade County resumed management of the Fairgrounds whether they could provide this type of funding for these needed improvements. City Manager John Lawton explained that CTEP funding was available to Cascade County, but they do not receive as much as the City does. He added that the City has allocated a significant amount of CTEP money to the fairgrounds because it is a highly visible area of town. He reminded the City Commission that not only do they allocate CTEP funds, but they allocate the match for those funds as well.

Commissioner Jovick-Kuntz moved, seconded by Commissioner Beecher, that the City Commission award a contract to Williamson Fencing in the amount of $159,801 for the Fairgrounds Sidewalk and Landscaping Improvements; CTEP Project No. STPE 5206(F) – OF 1126.7 and authorize the City Manager to execute the construction contract documents.

Motion carried 5-0.
 

ORDINANCES/RESOLUTIONS

DA Davidson & Co. presented a proposal to refund the 1993 Tax Increment Urban Renewal Bonds. Compensation for this underwriting was proposed at 1% of the principal amount of the bonds. This compared to 1.15% for the recently issued water and sewer bonds, which was a larger transaction and was insured. The Tax Increment refunding bonds will be rated but not insured. The timing of this transaction closely follows another major bond issue (water and sewer bonds) which presents a time savings to the City.

Refunding the 1993 bonds will save the Tax Increment District approximately $53,000 annually in debt payments per year through 2009 when the debt will be fully repaid. These Bonds are callable by the City on February 15, 2003. Unless market interest rates fall substantially from current, historically low levels, available savings will fall with the passage of time. Estimated savings are net of all financing expenses.

It should be noted, the 1998 Tax Increment Bonds issued to finance the City-County Health Department do not appear to be good refunding candidates at this time.

Commissioner Rosenbaum moved, seconded by Commissioner Beecher, that the City Commission adopt Resolution 9258.

Motion carried 5-0.
 

CONSENT AGENDA

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

Motion carried 5-0.
 

CITY MANAGER

ADJOURNMENT