NEW BUSINESS

Community Development Director Mike Rattray reported that the City negotiated the purchase of ten acres of undeveloped land between 26th Street South and approximately 23rd Street. The ten acres are adjacent to the twenty-five acres being purchased by Centene Corporation. The intent was to provide land to create a medical technology park.

The purchase price for the property was $200,000. The three property owners, John Sheffels, Rod Spencer and Robert Dean, have been community-minded and supportive of the efforts to attract the Centene project and assisted the City in beginning to develop a medical technology park for Great Falls. The purchase price represented a cost of $.46 per square foot that would be considerably enhanced upon the completion of the public improvements scheduled in conjunction with the Centene development.

Commissioner Beecher moved, seconded by Commissioner Hinz, that the City Commission approve the purchase agreement which provides for the purchase of Lot 3, Medical Tech Park Minor Subdivision from John H. Sheffels, The Spencer Trust and Robert W. Dean Revocable Trust for $200,000 and authorize the City Manager and staff to execute the necessary documents.

Commissioner Beecher stated that this was a good investment and would bring employment into this area.

Motion carried 5-0.
 

City Manager John Lawton stated that Southern Montana Electric G&T had been actively searching for favorable long-term electricity contracts on behalf of the City since April of 2004. The successful results of this search would allow the City to stabilize their electricity supply rates from October 2004 through December 2008. It was necessary to enter into a contract with SME G&T to finalize the terms of the power supply agreement. The contract would allow the City to provide enough electricity to supply the needs of the City, School District, Airport Authority and associated facilities at a peak demand rate that was ten percent lower than current default rates.

On Friday, September 17, Southern Montana Electric G & T announced that they would sell five megawatts of electricity to the City in the amount of $36 per megawatt hour for a five-year period. The City presently pays $41.798.

The City would resell the electricity to the School District, Airport Authority and associated facilities at $37.60 per megawatt hour. The difference would go to recoup capital costs the City has paid to date. During the contract period, the City would recoup part, but not all, of these costs.

The School District and the Airport Authority were prepared to go through the necessary steps to authorize power purchase agreements with the City. Similarly, these agreements would have to be approved by their respective boards. An application submitted by the City last week was currently under review by the PSC to authorize the City to be an aggregator of electrical demand; and staff was developing "all requirements contracts" to be signed between the City and its new customers.

Commissioner Jovick-Kuntz moved, seconded by Commissioners Hinz and Rosenbaum, that the City Commission authorize the City Manager to execute a wholesale power purchase contract with SME G&T.

Stuart Lewin, 615 3rd Avenue North, stated that he was for the adoption and that he was a supporter for public power. He stated that he thought the coal plant was a poor idea and suggested to the Commission that the City needed to get power from PP & L by condemning the dams.

Motion carried 5-0.
 

Planning Director Ben Rangel stated that the combined project would include a new segment of River's Edge Trail, connecting the paved trail just east of the Wastewater Treatment Plant with the nearly completed segment of Trail located just east of the 15th Street North Bridge. This new trail would extend eastward under the Eagle Falls Memorial Bridge, behind the bulkhead of the Historic 10th Street Bridge, parallel to North River Road and then under the 15th Street Bridge.

The project also included the first phase of the sewer main extension project to the Agri-Business Park. Both the trail and sewer line partially follow the same alignment, so the projects have been combined to save on construction costs as well as to reduce the amount of disruption to either, should they have been constructed separately.

A bid opening for the combined trail and sewer main project occurred on September 8, 2004, with five bidders responding. The lowest responsible bid was from United Materials of Great Falls, Inc. in the amount of $1,384,137.95, which was $85,283.95 or 6.6 percent above the Engineer's Estimate. This was considered to be an acceptable difference. The design engineer, Neil Consultants, Inc., recommended award of the bid. The difference between the Engineers's Estimate and the low bid price was attributable to higher steel and oil prices and the fact that there was considerable construction work underway in the area or anticipated in the near future. A re-bid would not be expected to result in lower bids.

Commissioner Hinz moved, seconded by Commissioners Beecher and Rosenbaum, that the City Commission award the bid for the project titled, "West Bank Trail Connection/Agri-Business Park Sewer Main Extension-Phase 1" to United Materials of Great Falls, Inc., in the amount of $1,384,137.95 and authorize the City Manager to execute the necessary documents, contingent upon Montana Department of Transportation concurrence.

Motion carried 5-0.
 

City Manager John Lawton reported that pursuant to MCA 7-14-1101 (1), the City Commission may determine to exercise any and all of the powers granted to a Port Authority. Adopting Resolution 9425 would authorize City Commission to exercise Port Authority Powers.

Port Authorities have the ability to buy, sell, and lease land; develop commercial and industrial parks; and engage in other economic development activities. It may be necessary to exercise these economic development powers in conjunction with and on behalf of the Great Falls Development Authority.

A separate agreement would be necessary between the Development Authority and the City Commission to appoint GFDA as the administration and management agent for the Port Authority. GFDA would staff the Port Authority and would be financially responsible for its activities.

On November 19, 1996, the City Commission adopted Resolution 8841, thereby establishing a Port Authority for the purpose of stimulating commerce, developing employment opportunities and increasing taxable valuations in Great Falls. However, the appointment of Port Authority Commissioners has lapsed from and after July 1, 2003. Therefore, it was deemed most expedient for the City Commission to assume any and all of the powers granted to such Port Authority pursuant to 7-14-1101(1) MCA to provide an immediate and continuing governing body to exercise such functions. Resolution 8841 which provided for Port Authority Commissioners must be repealed, in part, to eliminate all reference to such Port Authority Commissioners and direct the Great Falls City Commission to exercise any and all powers granted to Port Authorities by 7-14-1101, et seq. MCA.

Commissioner Beecher moved, seconded by Commissioners Hinz and Rosenbaum, that the City Commission approve Resolution 9425 authorizing the City Commission to exercise any and all powers of the Port Authority and reaffirming Resolution 8841 except the repeal of any reference to Port Authority Commissioners contained therein.

Motion carried 5-0.
 

CONSENT AGENDA

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

Motion carried 5-0.
 

Community Development Director Mike Rattray reported that Larry Lindseth, owner of the property at 202 2nd Avenue South, requested a variance to OCCGF 15.11.200. This section of the "interim" sign code sets the area limitation for wall signs at a maximum of 200 square feet. Mr. Lindseth wanted to install new wall signage totaling 89.25 square feet and keep the existing 200 square feet of wall signage. If approved, 289.25 square feet of wall signage would be allowed on the multi-tenant property.

The Ale House wanted to install 89.25 square feet of new wall signage. However, the "interim" sign code limited the premises to a maximum of 200 square feet of wall signage. Currently, there was approximately 200 square feet of wall signage on the building's north frontage. In asking for the additional wall signage, Mr. Lindseth would agree to install only 100 of the allowed 200 square feet of pole sign face permitted on the site. Presently, the wall signage limitation was a disincentive to the new business that must rely on signage to help the public/customer locate the new restaurant site. A review of the historical variance file found no similar variances in the immediate area.

The Board of Adjustment heard the request on Thursday, September 9, 2004. Staff reviewed the application, and the square footage requirements for signs per the "interim" sign code. After the discussion, the Board of Adjustment voted unanimously to recommend the approval of the variance.

Commissioner Rosenbaum moved, seconded by Commissioner Beecher, that the City Commission approve the variance as recommended by the Board of Adjustment.

Motion carried 5-0.
 

ADJOURNMENT