PUBLIC HEARINGS

Public Works Director Jim Rearden reported that City staff determined the need for increases in the rates charged for water, sewer, and storm drain. These proposed increases were necessary to meet existing bond covenants, provide funding for necessary capital improvements, and to maintain the level of service currently provided to the citizens.

On, March 1, 2005, staff made a presentation to the Commission demonstrating the need for the rate increases, as well as the effect on the rate payers, should the increases be adopted. The proposed changes were expected to increase fees as follows: two percent in water, one percent in sewer, and one percent in storm drain. The new rates would take effect ten days after adoption of the resolution.

Mayor Gray declared the public hearing open. Speaking against Resolution 9462 was Herb Sobezcek, 121 11th Street Northeast. He stated that the rates looked good in the presentation but looked different when having to pay the bill. He added that he would compare the rates from his previous statements and bring the results to the Commission. No one spoke in support. Mayor Gray declared the public hearing closed.

Commissioner Rosenbaum moved, seconded by Commissioners Beecher and Hinz, that the City Commission adopt Resolution 9462.

Motion carried 5-0.
 

NEW BUSINESS

Planning Director Ben Rangel reported that Resolution 9473 sets a public hearing for May 17, 2005, to consider annexation of International Malting Company, LLC Addition and segments of U.S. Highway 87 and Bootlegger Trail. Ordinance 2909 assigns a zoning classification of "2nd" Industrial, "D" Area District to subject property.

On November 12, 2003, the Planning Board conducted a public hearing and at its conclusion passed a motion recommending the City Commission approve the Minor Plat of International Malting Company, LLC Addition and the accompanying Findings of Fact, and annex the involved segments subject to the following conditions: applicant pay all fees, any errors or omissions be corrected, preparation of a certificate of title by a title company to be filed with the Minor Plat, and enter into an annexation agreement.

Mayor Gray asked for public comments. Herb Sobezcek, 121 11th Street Northeast, stated that he was concerned about who would maintain Highway 87.

Planning Director Ben Rangel stated the areas of Highway 87 included in the annexation would be maintained by the Montana Department of Transportation.

Commissioner Hinz asked if the rail spur was included in the annexation. Community Development Director Mike Rattray stated that it was not.

Commissioner Hinz moved, seconded by Commissioner Beecher, that the City Commission adopt Resolution 9473.

Motion carried 5-0.

Commissioner Beecher moved, seconded by Commissioners Hinz and Jovick-Kuntz, that the City Commission accept Ordinance 2909 on first reading and set a public hearing for May 17, 2005, to consider adoption of Ordinance 2909.

Motion carried 5-0.
 

Fiscal Services Director Coleen Balzarini reported that Ordinance 2911 established a Tax Increment Industrial/Agricultural District for the initial purpose of acquiring a rail spur by the City from International Malting Company with reimbursement from future tax increments. It also provided that the proposed district could be expanded to accommodate future users and construction of future public infrastructure needs.

International Malting Company ("IMC") is completing construction of a barley malting facility and expected to become operational in June of 2005. IMC is constructing a rail spur to service the facility. The IMC facility is located in an industrially zoned area with potential for future growth, and other industries that may locate in the area may require use of the rail spur. For these reasons, an ownership interest in the rail spur was considered necessary to current and future economic development potential in the area.

MCA 7-15-4288 (4) provides that the cost of acquiring a rail spur may be paid by tax increment financing. The City would issue Tax Increment Bonds for the purchase of the rail spur, and the bonds would be repaid with increments collected.

Commissioner Jovick-Kuntz moved, seconded by Commissioners Beecher and Hinz, that the City Commission accept Ordinance 2911 on first reading and set public hearing and final reading for May 17, 2005.

Motion carried 5-0.
 

Community Development Director Mike Rattray reported that a recent review of OCCGF 5.16, pertaining to the standards for the development of telecommunication facilities and installation of antennas, found that some minor rewording was necessary to ensure the accurate and consistent interpretation and application of the ordinance. Adopting this code change would allow "Public service use or facilities" to be considered exempt from obtaining a permit.

It was the intent of Chapter 5.16 to prevent overly restricting the development of needed telecommunications facilities and important amateur radio installations, yet encourage managed development of telecommunications infrastructure. The code was meant to simplify and shorten the process for obtaining necessary permits for telecommunication facilities while at the same time protect the legitimate interests of Great Falls citizens. This recommended change would allow public service facilities to place receive and /or transmit telemetry station antennas without a permit when utilizing them for their own use in providing public services of the OCCGF, pertaining to the standards for the development of telecommunication facilities and installation of antennas.

Commissioner Hinz moved, seconded by Commissioners Beecher and Rosenbaum, that the City Commission accept Ordinance 2911 on first reading and set final reading for May 3, 2005.

Motion carried 5-0.
 

Fiscal Services Director Coleen Balzarini reported that adoption of Resolution 9474 authorized the issuance of bonds in the amount of $630,000. These bonds would finance offsite roadway, storm drainage, sewer, and water utility improvements to portions of 26th Street South and 23rd Street South, also known as the Medical Technology Park.

On January 14, 2005, staff received a request from Centene Corporation, the first tenant of the Medical Technology Park, to begin processing a special improvement district. This financing would improve offsite infrastructure including roadways and utilities in the area. The total cost of the improvements and issuance cost is $630,000. Centene and the Great Falls Port Authority, the benefiting property owners, would be financially responsible for these improvements. The construction contract was awarded to Philips Construction, with construction set to begin May 1, 2005. The Centene building is scheduled to be occupied August 1, 2005.

Commissioner Beecher moved, seconded by Commissioner Rosenbaum, that the City Commission adopt Resolution 9474, Resolution relating to $630,000 Special Improvement District No. 1301 Bonds; authorizing the Issuance and Calling for the public sale thereof and authorizing the pledge of the revolving fund to the security thereof.

Motion carried 5-0.
 

Inspection/Zoning Official Jeff Jenkins asked the City Commission to consider new sign fees in addition to raising existing fees. Recent evaluation of City procedures on permitting and inspecting signs and sign structures, and the increased demand for regulation created with the revision of the sign ordinance, indicated that revenues were not commensurate with the cost. The current fee schedule had not been updated since 2001.

Staff recommended the following:

Commissioner Beecher moved, seconded by Commissioner Jovick-Kuntz, that the City Commission adopt Resolution 9475.

Motion carried 5-0.
 

Fiscal Services Director Coleen Balzarini reported that staff continues work related to the financing, construction, and partial ownership in a 250 MW Coal Fired Electric Generation Facility near Great Falls. The total construction cost of the facility was estimated at $500,000,000. The City anticipated plant ownership participation in the 17 percent to 26 percent range. The next phase in the development process required the City to seek financing for approximately $2,000,000 which would fund the City's pro-rata share of $12,000,000 in necessary Permitting and Procurement Support. The outcome from this phase of the process would finance costs for items such as a coal test burn, detailed system impact study, engineering support for EIS, permitting, air monitoring, site survey and boiler contract.

The City was seeking proposals from banking institutions to obtain interim financing for the $2,000,000. Approval of this resolution acknowledges payment from existing City funds to Southern Montana Electric Generation and Transmission Cooperative, Inc., which would be reimbursed upon receipt of the interim financing.

The intent is to build a 250 MW electric generation plant using the most environmentally compliant coal fired electric generation facility technology currently available. The electricity from this plant will be used by the members of SME G&T to replace existing long-term federal power supply contracts which would terminate beginning in 2008, and to provide stable, reliable prices to the City of Great Falls in place of the current default supply electricity currently available to the City.

Commissioner Rosenbaum moved, seconded by Commissioner Beecher, that the City Commission adopt Resolution 9476.

Motion carried 5-0.
 

CONSENT AGENDA

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

Motion carried 5-0.
 

ADJOURNMENT