CDBG/HOME Administrator Katrina Stark stated the purpose of this Annual Plan community issues public hearing was to allow the citizens, especially lower income citizens of Great Falls, an opportunity to advise the City Commission of the community's issues. Ideas were encouraged as to how federal grant funds could be used to address issues and help eliminate needs. The comments heard at this public hearing would be considered by the City Commission in allocating the 2006/2007 Community Development Block Grant and HOME Grant funds.

Mayor Gray declared the public hearing open. Those addressing the Commission were:

Karen Nebel, 509 1st Avenue North, Neighborhood Housing Services Manager (NHS), stated that their mission was to remove blight in neighborhoods and provide affordable housing for low to moderate income families. Without CDBG/HOME fund, they would not be able to provide the services they do.

Ms. Nebel reported that in the past two years, NHS renovated and sold eight homes, including two high school homes. They started construction of ten mutual self-help houses south of the City. All of these homes were sold to low-to-moderate income families. During the next year, NHS plans to renovate the Boyd Apartments into nine owner-occupied townhomes. In addition, they would continue to construct new homes and major renovations. They were starting to see a ripple effect of their work throughout the neighborhoods they worked in as more and more surrounding homeowners were beginning to fix up their homes.

Owen Robinson, 1029 17th Avenue SW, representing Center Stage Theater, stated that with the recent snow storm, they discovered the roof of their building leaked. He asked the Commission to consider providing CDBG funds for roof repairs at Center Stage. He added that the CDBG program funded the facility when they needed repairs inside the Theater, and they appreciated receiving the grant. He added that the Theater offers a lot to the City with the different performances and they were able to keep costs down for the public to attend.

Darlene Boss, Special Olympics of Montana, stated that both the State of Montana and HUD consider all developmentally disabled adults to be low income because of their limited capacity to earn income. Ms. Boss asked the Commission to keep in mind these individuals as they entered into allocations discussion on CDBG funds.

MaryAnn Cosgrove, Principal of Skyline Alternative High School, stated that they were in need of purchasing a van for the school. Ms. Cosgrove explained that Skyline School serves the entire City and that they were the alternative school. Mayor Gray suggested Ms. Cosgrove meet with CDBG/HOME Administrator Katrina Stark regarding their request.

John Angry suggested repairing the City streets on the south side with CDBG funding.

There being no one further to address the City Commission, Mayor Gray closed the public hearing and stated that according to staff no additional action was required at this time.

Ms. Stark stated that applications for the CDBG/HOME grant funds were available on-line at the City's web site and also in the Community Development office located in the Civic Center. She added that applications would be taken until February 10, 2006.

Community Development Director Mike Rattray reported the owner of the property located at 1418 8th Avenue North (Lot 11, Block 10, GF Bloomingdale 1st Addition) was issued a notice to appear before the City Commission to show cause why he should not be held liable for the costs incurred in clean up of the property which totaled $ 1,517.

Mayor Gray declared the public hearing open. No one appeared to speak in support of or opposition to Resolution 9531. Mayor Gray closed the public hearing.

Commissioner Rosenbaum moved, seconded by Commissioner Beecher, that the City Commission adopt Resolution 9531.

Motion carried 5-0.

Planning Director Ben Rangel reported that the amended plat subdivides the south half of Lot 1, Block 1, Fair Acreage Tracts from two lots into three lots. The process outlined in the new Unified Land Development Code for a variance from the subdivision regulations for lot width required the City Commission to conduct a public hearing.

Neighborhood Housing Services of Great Falls (NHS) owns approximately a half-acre tract of land located at 825 6th Avenue Northwest. They proposed to construct three single-family dwellings for low-income, first-time homebuyers. The first dwelling was now under construction and being built by the CMR High School Advanced Building Trades class. The other two lots would front 6th Avenue NW.

The Unified Land Development Code classifies the area as "R-3" Single-family high density. The Code stipulates that lots in an "R-3" classification be a minimum area of 7500 square feet and 60 feet in width. However, since the applications for the subdivision and variance request were dated September 13, 2004, which was prior to implementation of the new Code on October 6, 2005, the Amended Plat and variance requests were being processed under the provisions of the previous code. The minimum lot area under the previous code for residential purposes was 7200 square feet and the minimum lot width was 60 feet. Therefore, only a variance to the minimum lot width needed to be considered in conjunction with the Amended Plat. The proposed lot widths on the Amended Plat were just over 53 feet for each lot.

On November 8, 2005, the Great Falls Planning Board unanimously passed a motion recommending the City Commission approve the Amended Plat together with the lot width variance and the accompanying Findings of Fact, subject to the following conditions: any errors or omissions be corrected and preparation of a certificate of title by a title company to be filed with the Amended Plat.

Mayor Gray declared the public hearing open. Speaking in support of the amended plat of Fair Acreage Tracts was Dave Anderson, Construction Manager from Neighborhood Housing Services (NHS). Mr. Anderson stated that it has always been a struggle for NHS to provide adequate building sites for the high school program close to the high school and encouraged the City Commission to approve the variance request. He added that sites close to the high school were important because it reduced the amount of travel time for the students allowing them to spend more time doing construction.

Mayor Gray complimented Mr. Anderson and the Neighborhood Housing Service for the program.

Those speaking in opposition were Sheila Morgan and Ken Ouellette, 803 and 807 6th Avenue NW. Mrs. Morgan stated that she had a petition with thirteen signatures from neighbors who opposed the amended plat. Mr. Ouellette stated that he called the City regarding the property a year ago and was told that it was impossible to divide it into three lots. He added that there was not enough room for parking and adding three more homes would cause congestion on the streets.

Mr. Ouellette explained that Phyllis Hemstad was the previous owner of the property and listed the property for sale. When he inquired about the property she told him that it could be divided into three lots. Mr. Ouellette was interested in purchasing the property but when he contacted the City and was told that it could not be divided into three lots he was no longer interested. Mr. Ouellette and Ms. Morgan's main concern was there was not enough area for parking as it was and adding three more homes would cause congestion and inconvenience.

Commissioner Jovick-Kuntz asked if Neighborhood Housing owned this property. Commissioner Rosenbaum stated that Neighborhood Housing did own the property. He added that the variance and amended platting processes were set forth by State statute.

Commissioner Hinz asked Mr. Ouellette and Ms. Morgan if they were comfortable with the two homes but not three homes. Ms. Morgan stated they would be more comfortable with only two homes.

Mayor Gray suggested tabling this item until December 20, 2005, and direct staff to look into the concerns. Mr. Rangel stated that he would look into the issues and provide the Commission with a report.

Commissioner Beecher asked if these concerns were brought up at the Planning Board meeting. Mr. Rangel stated that no one spoke in opposition to the variance request when it was presented to the Planning Board.

Mike Witsoe, 510 5th Street South, stated he too was concerned about parking and believed that one off-street space per lot was not adequate.

Commissioner Hinz moved, seconded by Commissioner Beecher, that the City Commission continue the public hearing to December 20, 2005, while staff looked into the issues.

Motion carried 5-0.

In the summer of 2005, the City Commission approved retaining Chapman & Cutler, LLP and Dorsey & Whitney, LLP as co-bond counsel to assist the City in financing its portion of the Highwood Generating Station, Unit 1.

The contracts and fee proposal outline the scope of services and the methodology for payment of those services since work commenced and pending receipt of the final financing proceeds which were anticipated in December 2006. Bond Counsel services are eligible costs to include in the financing of the project. At the time of the original bond counsel selection, it was anticipated that the firms would provide services based on a fee system with one component that reflected time devoted to initial research and development and a second component contingent upon a bond issue.

The engagement letters contain standard language regarding scope of work, duties, and responsibilities of bond counsel in a local government financed project. The fee proposal, as presented, occurs after the first component, time devoted to initial research and development, has been essentially completed. The creation of the non-profit corporation, Electric City Power, Inc., and the adoption of the related articles of incorporation and by-laws were included in this first component.

Each firm would provide itemized quarterly billing statements. The City will pay an initial amount up to $20,000 to each firm in December 2005, with an additional amount of up to $25,000 to each firm prior to the issuance of bond proceeds. The hourly amount billed would be at 50 percent of the actual hourly rate. Assuming the bond financing was carried through to completion, the firms would each receive 110 percent of total hourly fees incurred, plus 100 percent of actual expenses, less all fee and expense amounts paid previously. In the event financing was not successfully completed, the final amount due would be adjusted dependent upon the conditions present at the time of discontinuation.

Commissioner Beecher moved, seconded by Commissioners Jovick-Kuntz and Rosenbaum, that the City Commission approve the engagement letters and fee proposal of Chapman and Cutler, LLP and Dorsey and Whitney, LLP for services as co-bond counsels related to the City of Great Falls' share of construction financing for Highwood Generating Station, Unit 1.

Motion carried 4-1 (Commissioner Hinz dissenting).

Fiscal Services Director Coleen Balzarini reported that the Tax Increment Industrial Infrastructure project proposed to acquire a newly constructed rail spur for the Central Montana Agricultural and Technology Park from International Malting Company (IMC). 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 purchase of the rail spur, and bonds would be repaid with increments collected.

IMC completed construction of a barley malting facility. IMC was also 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, public ownership interest in the rail spur was considered necessary to current and future economic development potential in the area. Ordinance 2911, adopted May 17, 2005, established a Tax Increment Industrial/Agricultural District for the initial purpose of creating a financial package to enable the acquisition of a rail spur by the City from International Malting Company, with reimbursement from future tax increments. Other components of the financing package included a HUD Grant (approximately $297,600) and a Montana Board of Investment Loan in the anticipated amount of $583,310. The district may be expanded to accommodate future users and construction of future public infrastructure needs.

Commissioner Hinz moved, seconded by Commissioners Jovick-Kuntz and Rosenbaum that the City Commission adopt Resolution 9533, and call for a public hearing on December 20, 2005, to approve the Tax Increment Industrial Infrastructure Project.

Motion carried 5-0.

Fiscal Services Director Coleen Balzarini reported that this Resolution formalizes the City's intention to participate in the development of the Highwood Generating Station. It also authorizes the City Manager to take all actions necessary in connection with this participation. Such actions included management and administrative services, preparation of a development agreement between the City doing business as Electric City Power and Southern Montana. The agreement addressed points such as ownership rights, duties, and responsibilities of each of the parties. It also addresses plant operations, transmission needs and City services to the plant upon annexation.

Some of the benefits that the citizens of Great Falls would derive from participating in this project as a part owner include stabilizing the price volatility of electricity, thereby mitigating the economic development impacts that volatility have on attracting, retaining and growing the Great Falls community.

It was intended that this facility would be annexed in order to avail itself to City services such as fire and police protection, water and wastewater services. Therefore, there would also be a significant increase in property tax dollars to the taxing jurisdictions, as well as construction and operating jobs as a result of this plant construction.

Commissioner Jovick-Kuntz moved, seconded by Commissioner Rosenbaum, that the City Commission adopt Resolution 9537.

Commissioner Hinz explained the reason she was going to vote against the motion was that she did not believe a coal generating plant was the way to go.

Motion carried 4-1 (Commissioner Hinz dissenting).

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 is estimated at $500 million. The City anticipates plant ownership participation of 25 percent. The next phase in the development process required the City to seek financing for approximately $2 million which would fund the City's pro-rata share of $12 million in necessary Permitting and Procurement Support. The outcome from this phase would reimburse or 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.

On October 18, 2005, the City Commission authorized staff to negotiate and award the sale of bonds. Staff negotiated with First Interstate Bank and awarded the sale based on a twenty year term, and a rate of 6.79 percent for 5 years. The rate thereafter would be based on the spread between this rate and the five year constant maturity rate determined at the time of closing. This sale was based on interest only payments for the first two years, and a balloon payment at year five. There was a penalty for early redemption. It was anticipated that an additional financing request would occur in FY 2007 for the remaining $500,000 for a total of $2 million in interim financing.

Commissioner Beecher moved, seconded by Commissioner Jovick-Kuntz, that the City Commission adopt Resolution 9534.

Motion carried 4-1. (Commissioner Hinz dissenting).

Planning Director Ben Rangel reported that Resolution 9535 sets a public hearing for December 20, 2005, to consider vacation of 25th Street South and 17th Avenue South bordering the west and south boundaries of the Youth Detention Center, respectively.

The segments of 25th Street South between 15th and 17th Avenues South and 17th Avenue South between 25th and 26th Street South were dedicated and annexed to the City as part of the Knight Addition in 1992. The involved segments of 25th Street South and 17th Avenue South requested to be vacated have not been improved to City standards. With the advent of the platting and development of Forest Glen South Minor Subdivision, it was determined retention and eventual improvement of the right-of-way served no practical and functional purpose. Upon vacation, the portion of 25th Street South shall become a part of Lot 2, Block 1, Sand Hills Park Addition, which is owned by the City, and the portion of 17th Avenue South shall become a part of Lot 1, Block 1, Forest Glen South Minor Subdivision, which is owned by Forest Glen, L.L.C. Twenty foot easements will be retained through the vacated portion of 17th Avenue South to accommodate the existing south sewer interceptor and a proposed bike/pedestrian path.

Commissioner Jovick-Kuntz moved, seconded by Commissioners Hinz and Rosenbaum, that the City Commission adopt Resolution 9535.

Motion carried 5-0.

Commissioner Rosenbaum moved, seconded by Commissioner Beecher, that the City Commission approve the Consent Agenda as printed.

Motion carried 5-0.

Mike Witsoe, 510 11th Street South, complimented Commissioner Jovick-Kuntz on the Parade of Lights and the Christmas Stroll.

He also asked staff if the public was allowed to skate on the pond at Gibson Park and if there was a warming house. Acting Park and Recreation Director Patty Rearden stated that they monitor the ice and public skating was allowed when certain condition were met. She added that the public restrooms were heated and that there was no warming house.

Mr. Witsoe also reminded the public to shovel their sidewalks.