Planning Director Ben Rangel reported that upon adoption Resolution 9518 annexes 7th Supplement to Skyline Heights Addition which consists of 34 single-family residential lots between 9th Street NE and the television facilities of KFBB. Ordinance 2924 assigns a zoning classification of R-2 single-family medium density district, to the property.

In July 2005, the City and County Commissions conditionally approved the preliminary plat of the 7th Supplement to Skyline Heights Addition. Staff reported that the basic conditions in the conditional approval of the preliminary plat were being met. Additionally, the Planning Board, at the conclusion of a public hearing held June 28, 2005, recommended the City Commission approve the annexation and recommended zoning subject to the following conditions being met: the applicant sign the annexation agreement; all applicable fees and charges be paid; any errors or omissions on the final plat noted by staff be corrected; and final engineering documents for required public improvements were approved by Public Works.

Mayor Gray declared the public hearing open. No one appeared to speak in support of or opposition to Resolution 9518 or Ordinance 2924. Mayor Gray closed the public hearing.

Commissioner Beecher moved, seconded by Commissioners Jovick-Kuntz and Rosenbaum, that the City Commission adopt Resolution 9518 and approve the final plat and annexation agreement all related to 7th Supplement to Skyline Heights Addition.

Motion carried 5-0

Commissioner Rosenbaum moved, seconded by Commissioner Hinz, that the City Commission adopt Ordinance 2924.

Motion carried 5-0.

Fiscal Services Director Coleen Balzarini reported that staff received a signed petition from the developer of Meadowlark Addition No. 3 requesting street lights be installed along Beargrass Drive. The petition was for the installation of nine (9) 100 watt HPS street lighting units on 17 foot fiberglass poles with underground wiring. The district would consist of 18 properties.

The special assessment for the installation cost of the improvements would be payable over a term not to exceed 15 years. The estimated annual special improvement assessment would be $74.33 for an average lot of 10,510 square feet. After the street lights are installed there would also be an ongoing estimated annual maintenance assessment of $50.45 for an average lot of 10,510 square feet for energy, transmission, distribution and other ongoing related costs.

MCA 7-12-4301 and 7-12-4333 authorizes the City Commission to create lighting districts and to assess the cost of installing and/or maintaining the district to the owners of the property embraced within the boundaries of such district.

The City Clerk received two valid protests which represented 13 percent of the amount of the assessment to be levied against the parcels. The developer also protested the creation of the lighting district. However, the developer waived his right to protest when he signed the annexation agreement for the subdivision.

Following the public hearing held October 4, 2005, the City Commission voted to continue the public hearing until October 18, 2005, in order for staff to meet with the developer and a home owner in order to address the questions that were brought forth during the hearing.

Following the meetings, staff recommended that the proposed lighting plan be adjusted to reduce the number of lights to 8 rather than 9 and that the lights be realigned to address the concern brought forth by Mrs. Andrea Hedges.

Mayor Gray re-opened the public hearing. No one spoke in support of or opposition to Resolution 9498. Mayor Gray closed the public hearing.

Commissioner Hinz moved, seconded by Commissioner Rosenbaum, that the City Commission adopt Resolution 9498.

Commissioner Rosenbaum reported that the issues that surfaced with this lighting district seemed focused on communication and after meeting with the developer, he appeared to understand the difference between the costs of a City-owned lighting district and those that were previously owned by Northwestern Energy. Mr. Rosenbaum concluded stating that the City was moving in the right direction by owning the poles and lights in lighting districts and the citizens would realize cost savings because of it.

Motion carried 5-0.

Mike Rattray, Community Development Director, reported staff received a complaint regarding the property at 1418 8th Avenue NW on June 28, 2005. Staff inspected the property the next day and determined that the property fit the definition of a nuisance and began the notification process to the owner. The owner did not eliminate the nuisance and staff proceeded with the abatement process. Mr. Rattray noted that this was the fourth time City staff had to clean up this property.

Mayor Gray declared the public hearing open. No one appeared to speak in support of or opposition to Resolution 9517. Mayor Gray closed the public hearing.

Commissioner Jovick-Kuntz moved, seconded by Commissioner Hinz, that the City Commission adopt Resolution 9517.

Motion carried 5-0.

Steve Hester, Assistant Fire Chief, reported that Resolution 9520 designates the National Incident Management System (NIMS) as the basis for all incident management in the City. The Department of Homeland Security Directive (HSPD)-5 has nationally institutionalized NIMS, which has been adopted by the State of Montana. For Great Falls to be prepared to respond to large disasters and to be eligible for federal grants, NIMS must be adopted.

For a number of years, the City's emergency responders have used a structured command and control system during emergencies. City emergency responders adopted the Incident Command System (ICS) that ensured incident commanders did not get overwhelmed, that responders on scene were accounted for, and that ensured strategy and tactics worked toward a common purpose.

NIMS was developed by Homeland Security to provide a consistent nationwide template enabling federal, state, local, tribal governments, private-sector and non-governmental organizations to work together effectively and efficiently to prepare for, prevent, respond to, and recover from domestic incidents, regardless of cause, size, or complexity, including acts of catastrophic terrorism.

Past incidents like the bombing of the Murrah Federal Building in Oklahoma City, the 9-11-01 World Trade Center attack and Hurricane Katrina demonstrated a need to have a single command system. In the coming months, City staff will receive NIMS training. Additionally, the Cities Emergency Operations Plan (EOP) will be changed to reflect NIMS use during disasters. Once the training is completed and the EOP has been drafted, the City will conduct drills and exercises to ensure the plan works.

Commissioner Rosenbaum moved, seconded by Commissioner Hinz, that the City Commission adopt Resolution 9520.

Motion carried 5-0.

Fiscal Services Director Coleen Balzarini reported that the original inter-local agreement, under which the Montana Municipal Insurance Authority (MMIA) currently operates, was created in 1986 and addressed the formation of the MMIA and its initial operations. Over time, the MMIA has expanded the services provided to the membership and adjusted operations to meet the members changing needs. Thus, the MMIA Board of Directors determined it was time to revise the Agreement. The Revised Agreement better reflects the current operations of the MMIA and incorporates several operational changes.

Commissioner Beecher moved, seconded by Commissioner Jovick-Kuntz, that the City Commission adopt Resolution 9521.

Motion carried 5-0.

Fiscal Services Director Coleen Balzarini reported that staff received a signed petition from the developer of the Eagles Crossing Phase I Addition requesting street lights be installed. The petition was for the installation of twenty-one (21) 150 watt HPS street lighting units on 20 foot steel poles with underground wiring. There are sixty (60) properties within the Eagles Crossing Phase I Addition.

The special assessment for the installation cost of the improvements shall be payable over a term not to exceed 15 years. Staff estimated the annual special improvement assessment (inclusive of capital, financing, operations and maintenance costs) to be $141.51 for an average lot of 14,070 square feet. Property owners may prepay the assessment as provided by law.

After the payment of construction costs are satisfied, staff determined that the ongoing estimated annual maintenance assessment would be approximately $60.85 for an average lot of 14,070 square feet which included energy, transmission, distribution and other ongoing related costs.

Commissioner Hinz moved, seconded by Commissioner Rosenbaum, that the City Commission adopt Resolution 9524.

Motion carried 5-0.

In a report to the City Commission, staff stated that they continued work relating 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 is estimated at $500,000,000. Staff anticipated the City's plant ownership participation to be 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 reimburse or finance costs for items such as a coal test burn, detailed system impact study, engineering support for the EIS (Environmental Impact Statement), permitting, air monitoring, site survey and boiler contract.

Upon adoption of Resolution 9523, staff will seek proposals from banking institutions and underwriters to obtain financing for the first phase of the costs amounting to $1,500,000. It was anticipated that an additional financing request would occur in FY 2007 for the remaining $500,000 for a total of $2,000,000 in interim financing.

City Manager John Lawton introduced the item to the City Commission. He emphasized that this was the next step which was financing some of the development costs. He added that the City had not come to a "point of no return" with this project. The $2 million would simply help fund the next phase of the project which was necessary in order to provide the answers to questions that would arise during the Environmental Impact Statement phase.

Mr. Lawton stated that there has been concern voiced about potential environmental issues with the use of coal. He pointed out that 1) the proposed plant would be among the cleanest coal fired plants in the country; 2) it would meet all the federal requirements; and 3) those associated with the plant were not in a position, at this point in time, to know exactly what pollutants and to what levels the plant would emit except to say that all federal requirements would be met. He explained that it was too early in the process to have this type of data. He reminded the City Commission that the purpose for this project was to provide stable electric rates far into the future for the City and its residents.

Fiscal Services Director Coleen Balzarini stated that the City has used this funding mechanism in the past. She added that the City must meet certain criteria which included: the dollar amount of the bonds must be less than 10 percent of the last two budgets; and the debt service must be less than 2 percent of the revenues. She said these bonds would not increase taxes and the City would be reimbursed once financing for the construction of the plant is in place.

Commissioner Beecher moved, seconded by Commissioner Rosenbaum, that the City Commission adopt Resolution 9523.

Mayor Gray asked if anyone in the audience wished to address the Commission regarding this issue.

Ron Mathsen, 122 Treasure State Drive, stated he was concerned about the project and the correlating debt. He applauded the City for establishing a stable energy source. However, he was concerned that this plant was not using the most current technology available and that there was no public input in the decision to build this plant. The plant would use a dirty fuel that required a lot of abatement. He suspected that coal fired kilowatt hours could not be sold in the future and that the City should look more closely at this technology before committing this amount of funding to it.

Stuart Lewin, 615 3rd Avenue North, stated that the City had moved too far along in the process without properly including the general public in the dialog. He cautioned the Commission from committing any additional resources to the project without first securing the Environmental Impact Statement and reviewing it with the public. He asked the Commission to stop looking at a dirty antiquated technology and begin looking at new environmentally safe energy options. He suggested that the City Commission give the proposed $2 million in bonds to Great Falls residents who wanted to retrofit their homes with solar energy technology. He suggested that the City was "married" to coal developers" and the public would learn in the future how dangerous energy produced from coal was.

Mike Whitsoe, 510 11th Street South, stated he was representing a group called "Concerned Voters of Great Falls and Cascade County." He requested the City Commission postpone action on this item until after the general election on November 8, 2005. He added that he did not support the Commission approving the bonds for a project he believed would not be constructed due to environmental issues.

Fiscal Services Director Coleen Balzarini reminded the Commission that the City could not proceed with the Environmental Impact Statement process without the funding from these bonds. It was this financing that would produce answers to a lot of questions that were being asked.

Commissioner Beecher stated that coal was a very important part of the City's energy future. He added that 112 coal plants were under construction in the country. He was convinced that every effort was being made to incorporate the best technology into the proposed plant and that the City needed to spend money now so answers to the questions could be provided.

Commissioner Rosenbaum stated that when it came to energy, the City had to take charge of its own destiny. He added that the Environmental Impact Statement was made up of conditions that would have to be met before the plant could produce power. He added that this decision did not commit the City to the construction of this plant. The bonds would help fund answers that were needed in order to continue moving forward with the project.

Mayor Gray stated that the business of the rural electric associations was not to sell or use coal. They were in the business of selling power. The rural electric associations provide power to over half the population of Montana and that they knew the business of procuring and selling power. He added that the transition from coal based power to hydrogen based power was going to take over 40 years and that the City could not wait to stabilize its energy source and the cost of its energy. He added that the City Commission had done an admirable job in conducting the due diligence for this project and believed it was something that should move forward.

Commissioner Hinz stated that she was torn philosophically with this project. She was reminded of the "rape of the great plains" and believed that coal generated power was as step backwards. She said she would not support the adoption of this resolution.

Motion carried 4-1 (Commissioner Hinz dissenting).

Coleen Balzarini, Fiscal Services Director, reported that Ordinance 2925 would provide for the creation and organization of a non-profit corporation to be known as "Electric City Power, Inc." to own, operate and take all other actions necessary or desirable in connection with the municipal electric utility of the City, including the provision of electricity supply services to consumers and others located within or outside of the City.

The non-profit corporation would operate for the primary purpose of securing and providing reliable, long-term supplies of electricity to the City, its residents and electric consumers. The proposed ordinance identified and defined the duties and obligations conveyed to the non-profit Board as well as the duties and obligations retained by the City Commission. It included items such as the purpose, powers, rules of operation, and tax-exempt obligations of the non-profit corporation and its board.

The ordinance was carefully written to ensure that ultimate authority for ratemaking and the appointment and removal of governing board members remained with the elected City Commission.

Creation of the non-profit corporation would enable the City Commission to establish a board of directors comprised of individuals with the expertise deemed valuable to the successful operations of Electric City Power. It would also enable Electric City Power to develop a comprehensive financing package which may include a negotiated revenue bond component. The amended ordinance would continue the current Electric City Power operations including the purchase of electricity in wholesale markets and the distribution of that electricity to serve its own needs, the needs of other governmental users, large commercial users, and to small commercial and residential customers at some time in the future, when the appropriate licenses are in place to do so.

Commissioner Hinz moved, seconded by Commissioner Rosenbaum, that the City Commission accept Ordinance 2925 on first reading and set the final reading and public hearing for November 1, 2005.

Motion carried 5-0.

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

Motion carried 5-0