At the December 6, 2005, Commission meeting, 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.

At the public hearing held December 6, 2005, the City Commission voted to continue the public hearing in order to give Staff time to address issues that were brought forth by those addressing the Commission.

Planning Director Rangel reported that Staff researched the issues brought forth and recommended the following: Since two off-street parking spaces were required and after observing 6th Avenue NW at various times on various days, no parking problems were apparent in that only three to five parked vehicles were on the avenue. Additionally, it appeared the creation of the third lot, which would be allowed through the lot width variance, was reasonable, since it would be comparable in size and width to the majority of existing residential lots in the vicinity and would not be out of character with the neighborhood or contrary to the public interest. As such, Mr. Rangel recommended the Amended Plat and variance be approved.

Mayor Gray reopened the public hearing. Those addressing the Commission were:

Clayton M. Braden, 2708 4th Avenue NW, was curious why staff was applying the previous code to this situation. Additionally, he was concerned about the setback requirements and why one of the homes was under construction before variance request was considered by the City Commission. Planning Director Rangel replied that the former code was applied in this case because the variance application was filed when the former code was in effect. Community Development Director Rattray reported that the house under construction met the set back requirements without the action at this meeting. However, building permits for the other two homes would not be issued until the variance request was acted on by the City Commission.

Sheila Rice, Neighborhood Housing Services, apologized to the City Commission for not meeting with the neighbors prior to this variance request. She added that it did not occur to her that the neighbors would have concerns about it. She said that she met or tried to meet with the neighbors these past two weeks in order to resolve the issues brought forth at the December 6th Commission meeting. She said that apparently parking was a concern especially during the state fair. However, she replied, that each of the homes would have two off-street parking spaces so the construction of the homes would not detrimentally impact the neighborhood. She said that another neighbor was concerned about foot traffic. Ms. Rice offered to pay fifty percent for a fence along the property line which would alleviate this concern. The same neighbor was also concerned about the driving habits of the students constructing the homes. Ms. Rice explained she passed that concern on to the instructors and while the intent was to have construction sites close to the high school so students could walk to them, the reality was that most students choose to drive. Ms. Rice stated that it was important to be able to build three homes on these lots because it would keep the homes more affordable. Finally, one of the neighbors expressed concern over the fact that low-income families would be moving into the neighborhood.

Bob Mehlhoff, Neighborhood Council 2, stated that the amended plat and variance should not be a problem and from the standpoint of the Neighborhood Council, would be an improvement to the area.

There being no one further to address the City Commission, Mayor Gray closed the public hearing.

Commissioner Hinz moved, seconded by Commissioners Beecher and Rosenbaum, that based on the additional information received since the December 6, 2005, Commission public hearing, the City Commission approve the Amended Plat of the South half of Lot 1, Block 1, Fair Acreage Tracts together with the requested lot width variance and the accompanying Findings of Fact.

Motion carried 5-0.

Resolution 9536 sets fees for building, plumbing, electrical and mechanical permits. The proposed fee schedule represents a 4 percent increase and would become effective January 1, 2006. An increase in fees was necessary to cover the cost of service.

Mayor Gray declared the public hearing open. No one spoke in support of or opposition to Resolution 9536. Mayor Gray closed the public hearing.

Commissioner Rosenbaum moved, seconded by Commissioners Beecher and Jovick-Kuntz, that the City Commission adopt Resolution 9536.

Motion carried 5-0.

Resolution 9539 vacates 25th Street South and 17th Avenue South bordering the west and south boundaries of the Youth Detention Center. The accompanying Amended Plat of Lot 1, Block 1, Forest Glen South Minor Subdivision and the Amended Plat of Lot 2, Block 1, Sand Hills Park Addition, reflect the disposition of the involved rights-of-way upon abandonment.

The roadway segments were dedicated and annexed as part of the Knight Addition in 1992. The involved segments were never improved to City standards. With the advent of the platting and development of Forest Glen South Minor Subdivision, it was determined the rights-of-way serve 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 subject 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.

Mayor Gray declared the public hearing open. No one spoke in support of or opposition to Resolution 9539. Mayor Gray closed the public hearing.

Commissioner Jovick-Kuntz moved, seconded by Commissioners Hinz and Beecher, that the City Commission adopt Resolution 9539 and authorize the appropriate City officials to execute the two involved amended plats.

Motion carried 5-0.

Finance Director Coleen Balzarini reported that the Tax Increment Industrial Infrastructure project proposed was the acquisition of a newly constructed rail spur for the Central Montana Agricultural and Technology Park from International Malting Company (IMC). MCA 7-15-4288(4) allows the cost of acquiring a rail spur to be paid by tax increment financing.

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 IMC, 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.

Mayor Gray declared the public hearing open. No one spoke in opposition to Resolution 9541. Clayton M. Braden, 2708 4th Avenue NW, spoke in support. There being no one further to address the City Commission, Mayor Gray closed the public hearing.

Commissioner Hinz moved, seconded by Commissioner Jovick-Kuntz, that the City Commission adopt Resolution 9541 approving The Industrial District Rail Spur Project as a Tax Increment Industrial Infrastructure Project.

Motion carried 5-0.

Junkermier, Clark, Campanella, Stevens, P.C., Certified Public Accountants, conducted the City's FY 2004-2005 annual audit. Based on the Independent Auditor's report, the general purpose financial statements present fairly, in all material respects, the financial position of the City as of June 30, 2005, and the results of its operations and the cash flows of its proprietary fund types ended in conformity with generally accepted accounting principles.

MCA 2-7-515, requires the City Commission to notify the Montana Department of Administration within 30 days of receipt of the audit report as to what action was planned on any deficiencies and recommendations noted by the independent auditor.

The auditors issued a separate Audit Management Letter. The letter commented on internal control recommendations related to the operations of the City that could adversely affect the City's ability to record, process, summarize, and report financial data and describes the auditor's FY 2004-2005 recommendations, status of prior year recommendations, and the City's response/disposition to each of the recommendations.

Loran Stensland, lead accountant from JCCS on the City's audit, reviewed the Comprehensive Annual Financial Report (CAFR) document.

Commissioner Beecher moved, seconded by Commissioners Hinz and Jovick-Kuntz, that the City Commission accept the FY 2004-2005 Comprehensive Annual Financial Report and Independent Auditor's report as presented as well as approve the responses to the Audit Management Letter recommendations as presented, and authorize staff to submit the responses to the State of Montana, Department of Administration and other government agencies as necessary.

Mike Witsoe, 510 5th Street South, asked if copies of the CAFR were available to the public. Finance Director Coleen Balzarini stated they were.

Commissioner Beecher emphasized that the City has earned the Certificate Achievement for Excellence in Financial Reporting award consecutively since 1994 which was a tremendous accomplishment. He added that this year City staff prepared the financial statements which not only saved money, but also was a substantial undertaking in which they did an outstanding job.

Motion carried 5-0.

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

Motion carried 5-0.

Tia Dear was appointed for a three-year term to the Civic Center Advisory Board on January 7, 2003. Ms. Dear submitted her resignation therefore it was necessary to appoint a new member.

Commissioner Hinz moved, seconded by Commissioner Rosenbaum, that the City Commission appoint Carl Donovan for a three-year term through December 341, 2008.

Motion carried 5-0.