PUBLIC HEARINGS

City Manager John Lawton reported the financial condition of the City Golf Courses had presented the City with a unique opportunity. The City Commission was asked to conduct a public hearing on Resolution 9352 to hear comments regarding the following proposed fees. He also stated that to put this in context, the golf fee proposal was just one part of a global solution to various golf problems. There are several issues at the golf courses, particularly at Eagle Falls. 1) Four holes that still need to be completed; 2) Financial pressures that have built up over the years for a variety of reasons that would not go away even with the golf fee increase that was being proposed. Lawton also stated that the parking and entryway to Eagle Falls was not in keeping with the image and service the City wanted to present. The City had discussed a development project that would help the City finish the golf course. It would help the City pay down the debt so the City would not have the same kind of pressure for fee increases in the future.

Patty Gumenberg, Deputy Park and Recreation Director reported the following fee increases.

Resolution 9352 would repeal Resolution 9284 and set new fees for the 2004 golf season.

Last year the average number of rounds played by members was 47. The value of a full adult membership was $1,175 (47 x $25). The value of a yearly trail fee was $564 (47 x $12).

City Manager John Lawton stated that negative cash flows continue to increase in the Golf Course Fund, bond revenue covenants have not been met, and all available cash reserves for operations, equipment replacement, and current debt service are depleted. The General Fund loan to the Golf Course to cover negative cash was over $500,000 compared to the General Fund loan at June 30, 2002 in the amount of $303,500. As of September 30, 2003, it was necessary for the General Fund to provide additional cash support to the Golf Course to total $806,871. Much of the increase in the cash deficit as of September 30th was due to payment of the current year bond payment. This deficit would continue to increase until March when membership payments began to flow in to the fund.

The Golf Course had significant cash flow problems that could not be repaired in the short term. It was originally thought that an operating transfer from the General Fund could be used to accomplish two objectives. 1), provide a source of revenue that could be applied to the revenue covenant calculation, and 2), provide actual cash to improve the fund's long running negative cash balance condition. Unfortunately, the revenue covenants do not allow the inclusion of revenues from sources other than operating or interest earnings to be included in the calculation. So, objective number one could not be accomplished.

Over the last four seasons there had been a natural reluctance by the City Commission, the Golf Advisory Board, and the golf users to approve proposed fee increases. It may have been based on the idea that the reduction in customer base was due to the recent construction, the quality of the customer service, and the overall ongoing condition of the courses. Course construction had been completed on all but four holes, and management had improved service and course conditions, which should result in an increased use of the facilities, with a corresponding increase in collected revenues.

The steps management took to meet these requests included an emphasis on customer service training and implementation, and additional maintenance staff was hired earlier than in previous years to spruce up the course quickly at the beginning of the season. In addition, the weather this year was significantly better than last golf season. As a result, there was an increase in attendance and the related revenues at the courses. There were also increases in the expenses to meet the service and course condition expectations. The net result was actually a further decline in financial position compared to previous years.

The proposed fees were approved by the Golf Advisory Board at their meeting on November 3, 2003. The Park and Recreation Board approved the proposed fees at their November 10, 2003 meeting and recommend to the City Commission that they approve the rates following the public hearing on December 16, 2003.

Mayor Gray declared the public hearing open. Speaking in favor of the Golf Fee increase was Kris Jupka, 817 5th Avenue North, member of the Golf Advisory Board for six years. She had been a part of the whole change that had gone on at Eagle Falls. She stated that unfortunately the Golf Advisory Board had to pay the higher priced fee as well as everyone else. She also stated that during the reconstruction of the course, things happened that were beyond anyone's control. Word is getting out that because of the renovation and the hard work everyone had put into the golf course the people are actually talking about coming to Great Falls to golf. They are scheduling tournaments for 2004. This benefits all of us. The golf fee increase is just a little part of the process to bring it all in line. She agreed that the golfers are still getting a good deal. Two eighteen hole golf courses for a lesser fee than what a lot of cities pay for one golf course.

Harry Birkenbuel, 3517 15th Avenue South, spoke against the trail fee increase. He stated there were a lot of places with thirty-six holes that are cheaper than Great Falls. Whitefish has thirty-six holes at a cost of $350 per year. Their cart fees and storage fees are $165 per year. Buffalo Hills' fees are $400 for 27 holes and the trail fee and storage fee is $220. Mr. Birkenbuel stated he was for the golf course fee increase if it takes another $50-$100 per year. That did not bother him. He stated he would like to know what direction the City was going. Was the City going to hold the golf course hostage until the City built the new housing development? Or was the City going to go ahead and finish the golf course? Harry Birkenbuel also informed the Commission that there were 125 members that just quit the Country Club. They would be willing to come over to the City golf courses, but not on a course that was half done. Mr. Birkenbuel said he was behind the City if the City kept improving the golf course. He stated that he never understood the bid with Canada and it ended up costing more and fewer holes were completed. Mr. Birkenbuel said that if the City would give a date of completion for the golf course that would bring more golfers in. The golfers do not want to pay a membership fee for a golf course that was not complete. The City had to have a plan.

Mayor Gray asked City Manager John Lawton if there was any relation between the financing package that includes some increase in fees, and development of some lots and some other cash generating prospects. Will the sale of any of the lots determine when the golf course would be completed?

City Manager John Lawton stated no. The City did not know for sure how the City was going to finance the development work at the golf course. The City did have some ideas to use the SID mechanism. When the City puts in the infrastructure, the financing for the infrastructure for the residential lots would also finance the completion of the four holes. This would be treated as infrastructure for the residential homes. He also stated that rather than hold the golfer's hostage, the City would pay the ransom fee up front. The City hopes to finish the four holes in conjunction with construction of the infrastructure for the golf course development.

The package that the City had for the parking improvements was a combination of funds that could not be used for the golf course operation or construction. Mr. Lawton also stated that the completion of the four holes would make the lots more saleable, which would bring more money and create more value.

Mayor Gray asked Park and Recreation Director Jerry Sepich if there had been any dialog between the Park and Recreation Department and the general golfing population on the issues of the renovation costing more and not being completed. Mayor Gray also advised Harry Birkenbuel to present his information to the Golf Advisory Board. The Commission relies on the Golf Advisory Board and what they recommend.

Park and Recreation Director Jerry Sepich stated that he did not know specifically if they have had any public testimony. It had been discussed many times at the Golf Advisory meetings and those are open to the public. They also made a presentation to the City Commission regarding the renovation project. When they originally proposed the renovation and the fees were increased the first time, it was under the assumption the City was going to complete nine holes of the golf course. The remaining nine holes were going to be completed based upon what the City anticipated to be additional revenue. At that time memberships dropped off. The City currently has fourteen holes completed.

Don Clayton, member of public golf in Great Falls for over twenty years, spoke against the golf fee increases. He had some deep concerns about raising membership fees. He felt this increase would leave the City where they were in 2002. He also stated that public golf was in fact a retail entity. Golf had an inventory of products that was intended to sell to the public. The City has a great product, but since it was owned by the government the City was operating it with a government mind-set. Mr. Clayton said the City needed a retail mind-set. He felt this needed to be dealt with as any retail business would. Anytime the City increased the rates, the golf course had a decrease in members. The year the City did not increase the golf rates there was an increase in membership. Mr. Clayton feels that the City needed to table the fee proposal. Don Clayton had two proposals; 1) keep golf fees constant. 2) Increase in fees after March 1, 2004. Give members last year's fee amount up until March 1, 2004 any purchase after this date would be at the increased rate. He felt that the City had done a great job on the work that has been done.

Kevin Fisher stated that he had concerns about the golf fees and other issues several years ago when the repairs first started. He joined the Golf Advisory Board four years ago to see what was going on. He stated he learned a lot by joining the Golf Advisory Board. This year alone the USGA had more than ten major tournaments throughout the United States. There was only one of the courses that did not have a significant amount of ground under repair. A lot of problems at the City's golf course are due to the carelessness of the golfers not following the rules and generally poor behavior on the golf course. He also stated that he had played golf in thirty-nine states. The rates for the City's golf courses are cheap. He stated that last year he played approximately one hundred rounds. After paying his membership fees, that was about four dollars and fifteen cents a round. Mr. Fisher stated that golf was down everywhere across the United States according to the National Golf Foundation. California was down ten percent and Florida 7.9 percent. Golf was a luxury and it directly reflects the economy. Our economy is down and golfing was down.

There being no one further to speak in support or opposition, Mayor Gray declared the public hearing closed

Commissioner Bill Beecher commented that the City had to implement the fees from a couple points of view. The City had subsidized the golf course substantially through the general fund in the last couple of months. To do any more would not be responsible in his opinion. Commissioner Beecher said that the City does have a plan that the City Manager had outlined that would move the City towards being able to stabilize the costs at the golf course and complete the four remaining holes. The City had to raise the fees because the golf courses have ongoing increases, such as electricity.

Commissioner Hinz stated she liked the idea of keeping the full membership the same as last year up until March 1, 2004. She also stated that tabling would be the way to go and consider the alternatives brought before them. Commissioner Jovick-Kuntz agreed.

Commissioner Beecher moved, seconded by Commissioner Rosenbaum, that City Commission approve Resolution 9352 Golf Fees.

Motion carried 3-2. (Commissioners Hinz and Jovick-Kuntz dissenting).
 

Park and Recreation Director Jerry Sepich reported as required by Title 3, Chapter 12, OCCGF, before final consideration of lease of City property, the City Commission shall hold a public hearing to receive comments regarding such leases.

All leases were for three years including minor modifications from previous leases. Specifically the leases are as follows: Americans Little League was for use of Veterans Memorial park for $200/year; Westside Little League was for use of Grande Vista park for $200/year; Riverside Little League was for use of Sacajawea park and park land known as Smith/Peretti property for $250/year.

The leagues were responsible for the maintenance and upkeep of the fields, however, the City agrees to pay the water costs for irrigation, up to an amount not to exceed $1,500 annually for each league.

Current leases with the Little League organizations expire December 31, 2003. The leases would continue to allow the leagues to provide an opportunity for many youth in our community to participate in the sports of baseball and softball.

The Park and Recreation Board approved the leases at their November 11, 2003 meeting.

Mayor Gray declared the public hearing open. No one spoke in support or opposition. There being no one to address the Commission, Mayor Gray declared the public hearing closed.

Commissioner Jovick-Kuntz moved, seconded by Commissioner Beecher, that the City Commission approve the leases with the Americans Little League, Westside Little League, and Riverside Little League.

Motion carried 5-0.
 

Park and Recreation Director Jerry Sepich reported as required by Title 3, Chapter 12, OCCGF, before final consideration of the lease of City property, the City Commission shall hold a public hearing to receive comments regarding such leases.

The leases with the soccer organizations were for three (3) years. One modification that was made in the proposed leases was language allowing the organizations to cancel the leases by giving the City ninety (90) days written notice. This provision was added because of uncertainty of future usage as a result of the new soccer complex. The yearly rental for both organizations is $700 per year.

Current leases with the soccer organizations expire December 31, 2003. The lease would continue to allow the leagues to provide an opportunity for many youth in our community to participate in the sport of soccer.

The Park and Recreation Board approved the leases at their November 11, 2003 meeting.

Mayor Gray declared the public hearing open. No one spoke in support or opposition. There being no one to address the Commission, Mayor Gray declared the public hearing closed.

Commissioner Hinz moved, seconded by Commissioner Jovick-Kuntz, that the City Commission approve the leases of City parks with Great Falls Youth Soccer Association and the Electric City Soccer Club.

Motion carried 5-0.
 

NEW BUSINESS

Public Works Director Jim Rearden reported Ordinance 2867 makes minor updates to OCCGF Title 10 pertaining to One-Way Streets and Alleys. It was requested by the Great Falls Business Improvement District that the code be updated to accommodate current needs. With the parking changes downtown and in order to allow more efficient delivery of products and goods to the downtown businesses, staff recommended that the one-way designation for First Alley North and First Alley South be rescinded.

Ordinance 2646 had designated First Alleys North and South from Park Drive to 7th Street as one-way alleys, First Alley North being Eastbound and First Alley South being Westbound. Ordinance 2867 would return these alleys to two-way traffic

Commissioner Jovick-Kuntz moved, seconded by Commissioner Rosenbaum, that the City Commission accept Ordinance 2867 on first reading and set the final reading for January 6, 2004.

Motion carried 5-0.
 

CONSENT AGENDA

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

Motion carried 5-0.
 

Acting Planning Director Ben Rangel reported the preliminary plat of 6th Supplement to Skyline Heights Addition consisted of 11 single family residential lots along the southerly extensions of 11th and 12th Streets Northeast located immediately west of the television facilities of KRTV and KFBB. The subdivision would also add 1.47 acres to Skyline Heights Park.

Gene Shumaker and Joe Aline have submitted applications regarding the following:

1. Preliminary Plat of 6th Supplement to Skyline Heights Addition, located in the NE ¼ of Section 36, Township 21 North, Range 3 East, Cascade County, Montana.
2. Rezoning the area within the Preliminary Plat upon annexation to the City from the current County "A" Agricultural District to the City "A" Residence Use, "A" Area District.

The Planning Board conducted a public hearing on the preliminary plat on November 25, 2003. No public comment has been received regarding the subdivision and no citizens spoke during the Planning Board hearing.

At the conclusion of the public hearing, the Planning Board passed a motion recommending the City and County Commission approve the preliminary plat of 6th Supplement to Skyline Heights Addition and the accompanying Findings of Fact subject to the following conditions being fulfilled by the applicant:

1. The final plat of 6th Supplement shall incorporate correction of any errors or omissions noted by staff.
2. The final engineering drawings and specifications for the required public improvements to serve 6th Supplement shall be submitted to the Public Works Department for review and approval prior to consideration of the final plat of the Addition. Said documents shall include provisions for temporary turnarounds to accommodate emergency and service vehicles at the south terminus of 11th and 12th Streets Northeast.
3. An Annexation Agreement shall be prepared containing terms and conditions for annexation of 6th Supplement including agreement by applicant to install, within two years of the date of annexation of 6th Supplement, the public improvements referenced in Paragraph 2) above.
4. All applicable fees owed as a condition of plat or annexation approval shall be paid in conjunction with the consideration of the final plat and annexation for 6th Supplement, including:

   a)	final plat	$ 200.00
   b)	annexation agreement fee	200.00
   c)	annexation resolution fee	100.00
   d)	storm sewer fee ($250/acre)	to be determined
   e)	recording fees for annexation document ($6 per page)	to be determined

5. Identifying the planned location of a secondary public access to Skyline Heights Park either along its east or south boundary.

Commissioner Jovick-Kuntz moved, seconded by Commissioner Beecher that the City Commission approve the preliminary plat of 6th Supplement to Skyline Heights Addition and the accompanying Findings of Fact subject to fulfillment of conditions stipulated by the Planning Board.

Motion carried 5-0.
 

Mayor Gray stated the City-County Planning Board has two members whose terms expire on December 31, 2003. William Bronson was appointed to the City-County Planning Board on January 15, 2002. Mr. Bronson is eligible for and interested in reappointment. John Kelly was appointed to the Board in January of 2002. Mr. Kelly is not interested in reappointment; therefore, it is necessary to appoint one new member to fill his vacancy. The City is currently seeking applications to fill his term.

Commissioner Beecher moved, seconded by Commissioner Hinz, that the City Commission reappoint William Bronson to the City-County Planning Board for a two-year term, designated as an "official" member, expiring December 31, 2005.

Motion carried 5-0.
 

Mayor Gray stated the terms of Robert Kampfer and Arleen Heintzelman expire on December 31, 2003. Mr. Kampfer was appointed to the Civic Center Advisory Board in 2001 and was eligible for and interested in reappointment. Ms. Heintzelman was not interested in reappointment; therefore, it was necessary to appoint one new member to fill her vacancy.

The Civic Center Advisory Board was created in 1997. The Board acts in an advisory capacity to the City Commission and the City Manager on all matters related to the successful operation of the Civic Center facilities. The Board consists of five to seven members with an attempt to have representation from the areas of performing arts, conventions and meetings, and civic leaders.

Commissioner Hinz moved, seconded by Commissioner Beecher, that the City Commission reappoint Robert Kampfer for a three-year term through December 31, 2006, and appoint JoAnn Roach to the Civic Center Advisory Board for a three-year term, ending December 31, 2006.

Motion carried 5-0.
 

Mayor Gray stated that Iva "Boots" Wiseman was appointed to the City-County Health Board on September 21, 1999, to fill the remainder of a three-year term. Ms. Wiseman is eligible for and interested in reappointment. The City-County Health Department is also in support of her reappointment.

The term of Alan Frohberg expires on December 31, 2003. Mr. Frohberg is not eligible for reappointment. After advertising the vacant position, no applications were received. The City of Great Falls and City-County Health Department would continue to seek interested citizens to replace Mr. Frohberg.

The Board consists of seven members, two appointed by the City Commission with members serving a three-year term. The City-County Health Board was concerned with the operation and management of the City-County Health Department.

Commissioner Beecher moved, seconded by Commissioner Rosenbaum, that the City Commission reappoint Iva "Boots" Wiseman to the City-County Health Board to a three -year term, expiring December 31, 2006.

Motion carried 5-0.
 

Mayor Gray stated that Robert Mease was appointed to the Advisory Commission on January 15, 2002. Mr. Mease has resigned from the Commission; therefore it is necessary to appoint one member to fill the remainder of his term. On October 21, 2003, by Ordinance 2863, the size of the Advisory Commission on International Relationships was increased by four members, making it necessary to appoint additional members to the Commission. Three applicants have expressed interest in serving on this commission. The ACIR members had interviewed each of the applicants and requested that the City Commission appoint all three applicants to serve the Advisory Commission on International Relationships.

In addition, due to the expansion in size of the Advisory Commission and that the ACIR By-Laws indicate an April date for election of officers, the ACIR members also respectfully requested that the City Commission realign existing members to the requested terms in order to provide for balanced, staggered terms of service and to accommodate the annual election of officers in April of each year. International programs are growing for many reasons. Rapid changes in communications technology, globalization of the marketplace, and political changes in the last decade have all contributed to an increasing awareness these trends will accelerate in the future. Communities, as well as individuals, businesses, and institutions will need to learn to participate in the "global village," or be left behind economically or in other ways. In order for the City to take a leadership role in nurturing and coordinating some of the international efforts, the Advisory Commission on International Relationships was created by Ordinance 2788 on November 8, 2000, and amended by Ordinance 2863 on October 21, 2003. The Commission provides support, coordination, and exchange of information for international programs in the community. The Commission consists of nine to eleven members.

Bob Harris, Chairman of the ACIR Commission requested that the Commission authorize the appointments. He stated they are comfortable with the new appointments. They have made reasonable contact with them. Lisa Thibault was present and he stated that she speaks a number of languages including Russian. They do a lot of work in that area so she would be very helpful. The Advisory Commission and International Relationships have a few things they are working on that would hopefully expand their activities. Bob Harris stated that it was possible that they would do another hosting about the end of January 2004. They have put in a bid with AED and they are waiting to see what will happen.

Commissioner Hinz moved, seconded by Commissioner Jovick-Kuntz, that the City Commission authorize the following with regard to the Advisory Commission on International Relationships: Appoint Lisa Thibault to fill the remaining term of Bob Mease, through March 31, 2006; Appoint Judith L. McKay to a three-year term, through March 31, 2006; Appoint Lori Larson to a two-year term, through March 31, 2005; and, realign the following existing board member terms as follows: Bob Harris, through March 31, 2004; Lee Neibuhr, through March 31, 2004; Ryan Miller through March 31, 2004; Ella Mae Howard, through March 31, 2005; Sara Hopkins Schoenenberger through, March 31, 2005; Aart Dolman, through March 31, 2006.

Motion carried 5-0.
 

Steve Ortez, Westside of Great Falls, stated he liked the way the town was. He had been in construction for over thirty years and had always found work. He liked the goal the City had; you take what you have and make it better. For instance the golf course, the City was not just going out and building a new golf course. The City was making the golf course they have better. Mr. Ortez also stated that he would like to see more business go into the downtown area. He also asked about any fee going into effect at the Broadwater Bay. Was the City going to charge for the use of the park?

Park and Recreation Director Jerry Sepich, stated that the City was looking at the possibility of charging a launching fee. There are concerns about the safety of the public and boaters
 

ADJOURNMENT