PUBLIC HEARINGS

Planning Director Ben Rangel reported that Resolution 9370 annexes 13.1 acres located east of 29th Street South and south of 15th Avenue South upon which a 100,000 square foot specialty medical building was planned to be constructed. The agreement contains terms and conditions associated with subdivision and annexation.

Great Falls Clinic Realty, LLP submitted applications regarding the following:

1. Amended Plat of Blocks 1 and 3, First Addition to the Great Falls Clinic Addition, located in the NW1/4 of Section 17, Township 20 North, Range 4 East, Cascade County, Montana.
2. Annexation of the unincorporated portion of said Amended Plat to the City of Great Falls.

Applicant was preparing plans to construct a 100,000 square foot specialty medical building upon subject property presently partially occupied by the Clinic Surgery Center at 15th Avenue South and 29th Street South.

On February 23, 2004, staff learned from Great Falls Clinic representatives of the need to create a separate parcel on the amended plat to accommodate the existing out-patient surgery center. A separate parcel needed to be reestablished for financial collateral purposes. As such, the plat that consolidated two former blocks into one parcel and which had previously been approved by the City-County Planning Board was amended to create two parcels. A reciprocal lease agreement would be created to provide for a sharing of access, parking and storm drainage for both parcels. Also, with the added parcel in the Amended Plat, it was staff's conclusion that the results of the Findings of Fact remain unchanged.

Adoption of Ordinance 2869 establishes a City zoning classification upon annexation of the unincorporated portion of the Amended Plat of Blocks 1 and 3, First Addition to Great Falls Clinic Addition, of "C" Residence Use, "C" Area District, inclusive of a conditional use allowing a medical clinic and accessory uses.

Mayor Gray declared the public hearing open. Speaking in favor was Steve L' Heureux, 1826 3rd Avenue South, who stated that the new building would be south of the Clinic Surgery Center and cover over a City block. He also described the conceptual design of the building.

Clayton Braden, 2708 4th Avenue Northwest, suggested the City allow a fifteen percent setback from the curb to allow people to see oncoming traffic.

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

Commissioner Beecher moved, seconded by Commissioner Jovick-Kuntz, that City Commission adopt Resolution 9370 and approve the modified Amended Plat to create two parcels, Findings of Fact and Annexation and Improvements Agreement all related to Blocks 1 and 3, First Addition to Great Falls Clinic Addition.

Commissioner Hinz asked Planning Director Ben Rangel to explain to the public why it was a "C" zoning. Rangel stated that property zoned "C" Residential allows hospitals and clinics as a conditional use. Permitting a building for a specialty clinic within the Amended Plat was not out of character with existing neighboring uses which included an outpatient surgery center and a retirement home.

Motion carried 5-0.

Commissioner Jovick-Kuntz moved, seconded by Commissioner Rosenbaum, that the City Commission adopt Ordinance 2869.

Motion carried 5-0.
 

NEW BUSINESS

Resolution 9365 sets a public hearing for April 6, 2004, to consider the annexation of Skyline Park Addition, Phase 13, consisting of 15 single family lots along the westerly extension of 39th Avenue Northeast and the northerly extension of 4th Street Northeast.

Commissioner Rosenbaum moved, seconded by Commissioner Hinz, that the City Commission adopt Resolution 9365.

Motion carried 5-0.
 

Ordinance 2870 assigns a zoning classification of "A" Residence Use, "A" Area District, to Skyline Park Addition, Phase 13, upon annexation of same to the City. Subject property is located north of Skyline Education Center and the subdivision consists of 15 single family lots along the westerly extension of 39th Avenue Northeast and the northerly extension of 4th Street Northeast.

Commissioner Hinz moved, seconded by Commissioner Rosenbaum, that the City Commission accept Ordinance 2870 on first reading and set a hearing for 7:00 P.M. April 6, 2004, to consider adoption of Ordinance 2870.

Motion carried 5-0.
 

City Manager John Lawton reported that the provisions of Article XI, Section 9, of the Montana Constitution and 7-3-171 through 193, Montana Code Annotated, required a local governing body to call for an election on the question of local government review and the establishment of a study commission.

The Montana State Constitution and the Montana Code Annotated, include provisions that at least every 10 years, the citizens have a right to review their form of government. Citizens may call for a review through a petition process or local governments may place a ballot question on a primary ballot calling for the study commission review.

Resolution 9368 calls for the ballot question to be placed on the June 8, 2004, ballot; and would be worded as follows

Commissioner Beecher moved, seconded by Commissioner Jovick-Kuntz, that the City Commission adopt Resolution 9368.

Mayor Gray asked if anyone had any comments on Resolution 9368. Clayton Braden, 2708 4th Avenue Northwest, asked if the five member commission was chosen by district or at large. He also stated that he was in favor of this review and that the Commission not be selected at large. City Manager John Lawton replied that the City did not have districts and that the review commission would be selected at-large.

Commissioner Jovick-Kuntz asked if the questions and answers on the Local Government review could be put on the City web site.

Mayor Gray suggested that the Neighborhood Councils receive the information pertaining to the review commission with the questions and answers and the election calendar.

Commissioner Hinz asked that because our City Commissioners are elected at large, was the City forbidden to use some type of district election for the study commission. City Manager John Lawton replied that since the City Commission is elected at-large, we don't have established districts. To elect study commissioners from districts would require the City to develop district boundaries.

Motion carried 5-0.
 

City Manager John Lawton reported that the City was reevaluating all of its past practices with respect to electrical energy because of the events taking place since deregulation in 1997. Part of that reevaluation was to critically examine the street lighting system to determine if the value received by Great Falls' citizens was fair and equitable in relation to the amount of money paid. The Street Lighting Districts Ownership Analysis was presented to the Commission at the January 6, 2004, Commission Meeting. It was determined through this evaluation that the citizens of Great Falls were not getting maximum value for their money. City staff considered various alternatives on how to proceed.

One alternative was to terminate the street lighting contracts with NorthWestern Energy Company as the contracts came due. Resolution 9369 begins this process. Of the two hundred eighty-seven (287) street lighting contracts with NorthWestern Energy Company, twenty (20) would expire in the next six months, sixty-eight (68) in the next year, ninety-six (96) in two years, and one hundred three (103) in three years. Each contract would need to be terminated individually with written notification by the City to NorthWestern Energy Company.

After termination of the contracts the City needed to measure the effectiveness of the present system and consider an alternative system or improved system. Major portions of the present system are antiquated, inefficient and unsightly. If the City could have a modern, efficient, aesthetically pleasing system for the same or less money, then it would make sense to improve the existing system and/or rebuild major portions of it.

The City could do this by either negotiating with NorthWestern Energy Company for new street lighting contracts that reflect actual value to customers with options to upgrade the current system or consider the possibility of a City-owned street lighting system. Any negotiated rates between NorthWestern Energy Company and the City of Great Falls would need approval by the Public Service Commission.

Another option, if NorthWestern Energy Company was unresponsive to negotiations, was to ask the Public Service Commission for an investigation and rate reduction based on current rates not being just and reasonable.

The City currently has eighteen street lighting districts which consist of 9,341 lights. Of the 9,341 lights, 8 percent are non-utility owned. The lighting districts have been in existence in one form or another since 1912. Various consolidations have occurred over the years.

When a lighting district was created, the City entered into a contract with NorthWestern Energy Company for poles that would be utility-owned (92 percent of the time). In the contract the City agreed to pay NorthWestern Energy Company for "furnishing, operating and maintaining street light facilities, and for delivering electric energy." A monthly charge, type and number of poles are specified. The monthly charge changed every time a new rate schedule was approved by the Public Service Commission. The majority of the contracts the City entered into were for three years from the date of execution and would renew for an additional three years unless either party gave a ninety-day written notification. State statute stated that a city council shall not let a contract for a period to exceed three years for a lighting district.

Mr. Lawton added that in the past, the districts operated under the assumption that the upfront costs of creating the districts have been less because, with utility-owned poles, ownership was paid back indefinitely. As long as a pole existed, the City pays the Utility an ownership fee for the use of that pole even if the pole had been paid for many times over. But, with the aging light poles and luminaries' it was time to reexamine this basic assumption. The City's street lighting customers pay nearly $600,000 annually, half the total bill for street lighting, for ownership fees. There was no discernable benefit to Great Falls' customers, to the City, or to the lighting system.

Commissioner Jovick-Kuntz moved, seconded by Commissioner Rosenbaum, that the City Commission adopt Resolution 9369 to terminate all street lighting contracts with NorthWestern Energy Company as the contracts become due.

Mayor Gray asked if there was any comment from anyone.

Mike Schmidt, Director of Operations with NorthWestern Energy, stated the biggest issue was ownership charges that are paid in Great Falls. What goes into ownership charges were property taxes that were paid in the amount of about $120,000. If the City were to take over the lighting districts that would be one source of revenue that would be lost. It was not a subsidy to cover street light installations in faster growing cities. Last year there were eleven poles that were replaced because of hit and run accidents. He estimated the replacement costs of the poles were between $700 and $800 for a thirty-foot pole. Taller poles are higher priced.

The impact of rate payers and residents of Great Falls street lighting rates are included across NorthWestern's whole company, and they are established on historical costs. Should the City take over the lighting, they would lose that economy of scale. Mike Schmidt asked the Commission to delay this vote until NorthWestern Energy had time to discuss the rates.

Commissioner Hinz asked about the $1.1 million of Operation Maintenance Fee in the information that was provided to the Commissioners and about the $1.2 million Mike Schmidt stated NorthWestern paid in property fees statewide. She asked if "system wide" meant Montana. Mike Schmidt stated that it was just Montana.

City Manager John Lawton stated that the City would proceed with entering into new contracts. The City hoped to negotiate with NorthWestern Energy for new contracts that expired with better prices. The City was not planning to take ownership of the lights at this time.

Commissioner Beecher asked if there were any annual figures of replacement values on street lights that have been destroyed. Mike Schmidt stated that he did not have the totals but he could get that information for the Commissioners.

Mike Witsoe, 510 11th Street South, asked the Commission what the City was going to do with the cable and telephone wires that are used on the power poles. Also, how much would it cost to buy the trucks and train new employees? Commissioner Beecher stated that the primary purpose of this Resolution was the negation of the contracts.

City Manager John Lawton stated that this was to begin the process of new contracts and a discussion process. Staff would bring back any information they received to the Commission. The first step would be a discussion with NorthWestern Energy. Second, would be new contracts.

Mayor Gray stated that the City had never had the opportunity to shop the market for better service and that he supported this Resolution.

Motion carried 5-0.
 

CONSENT AGENDA

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

Mayor Gray asked if there were any comments to any of the items on the consent agenda.

Don Henderson, 926 Central Avenue, commented on the current confusion and lack of striping along Central Avenue in downtown Great Falls.

Commissioner Jovick-Kuntz stated that the Commission was aware that there was not enough parking for downtown. One of the reasons the City changed the parking spaces was to make more parking available. Businesses, City staff, the Business Improvement District, and she, had been working on this issue for over a year. She also stated that the construction project would clear up the confusion. There would be permanent markings for parking. City Manager John Lawton concurred.

Public Works Director Jim Rearden stated that permanent markings will be used to identify parking, cross walks, center lines, and stop bars.

Motion carried 5-0.
 

City Manager John Lawton introduced Park and Recreation Deputy Director, Patty Gumenberg to introduce the idea of the community Celebration. This Celebration would revolve around art, music, and food, and would fit with the "Live. Right. Here." promotion. It would be a celebration of the city's accomplishments.

The celebration with a theme of "Celebrate. Right. Here." would be held July 16 & 17, and would coincide with Bluegrass on the Bay. It would include; craft shows, museum activities, entertainment, children's activities, bucket truck rides, skate park demonstrations, water park special promotions, water sports, hot air balloon, horse shoe tournament, displays from MANG, MAFB, Public Works, Fire Department, and petting zoo/pony rides.

The organizers sought commitments from all departments, appropriation of funds for the initial year, and endorsement by the City Commission.
 

Mayor Gray stated how appreciative the visitors from Naryn, Kyrgyzstan, were of the City staff who spent time with them. The City really made a difference in that part of the world.
 

Mike Witsoe, 510 11th Street South, stated that he was impressed with the skateboard park, and it was a great asset to our community. He also reminded the City of the Saint Patrick's Day Parade, March 17, 2004, at 3:30 pm.
 

Clayton Braden, 2708 4th Avenue Northwest, stated that the City needed to take care of a double red line that has not been erased on 13th Street. He also stated he had a concern for the new protection device that City Police were using. He was concerned that 50,000 volts per five seconds could kill a lot of people, especially someone with health conditions.
 

ADJOURNMENT