Fiscal Services Director Coleen Balzarini reported that the City, in an effort to find more cost effective electrical supply, joined the Southern Montana Electrical Generation and Transmission Co-operative in the fall of 2004. On October 1, 2004, the City contractually began supplying electricity to Great Falls Public Schools, the Great Falls Airport Authority, Federal Express, Great Falls Housing Authority and Montana Air National Guard through December 31, 2008, and to its own facilities, including the wastewater treatment plant which is operated by Veolia Water. This group of customers has been referred to as “Block One Customers.” There has proven to be a cost effective savings for the customers and extensions of these contracts have been requested. In October 2006, the City Commission approved the purchase of additional power to accommodate this request. The recommended rates will extend the contracts for service through June 30, 2011. The rates for the City-owned facilities have been authorized administratively and included in the budget process for Fiscal Year 2008.

Mrs. Balzarini added that the May 2007 Northwestern Energy default price for electricity was $55.12 while the rates proposed in Resolution 9648 ranged from $42.91 to $52.37. Additionally, this resolution would sunset the “water credit” that was established in the previous rate resolution. She reminded the City Commission the intent of the Water Credit program was to cover the difference between the offering price to customers and the final contract price from supplier. It created a cushion for imbalance purchases and applied to Block 1 customers only.

Mayor Pro-Tempore Hinz declared the public hearing open. No one spoke in support of the Resolution. Those speaking in opposition to Resolution 9648 were as follows:

Mary Jolley, 1910 2nd Avenue North, asked what the actual price of electricity would be if the water credit amount was added to it. She also stated that the public notice was confusing because for some of the Block 1 customers these rates would go into effect in 2008 while for other Block 1 customers these rates were effective July 1, 2006. She questioned how Veolia could be in the Block 1 customers where rates were set administratively in 2006. She suggested that there should have been two resolutions to address each effective date. Finally, she stated that according to the Water Services Agreement with SME, the amount owed by the City for the water credit would be due and payable within 60 days. She expressed concern about this because that amount is over $1 million dollars and the ordinance creating Electric City Power requires it to be self-sufficient.

Fiscal Services Director Coleen Balzarini explained that the cost per megawatt hour for the water credit was $5.70.

City Manager John Lawton reminded the Commission that the water credit was not an obligation of the taxpayer it was an obligation of Electric City Power and the payback Ms. Jolley referred to for the water credit was set up to be amortized over time. He added that Veolia operated the waste water treatment plant on a cost plus contract which meant that costs for electricity were passed directly on to the City.

Ron Gessaman, 1006 36th Avenue NE, stated the $55.12 default rate used by the City was a residential rate, not a commercial rate. He said that Northwestern Energy offered lower rates for commercial entities and suggested the City use those rates in comparisons. Finally, he asked that the Commission consider removing all the members of the Electric City Power Board.

There being no one further to address the City Commission, Mayor Pro-tempore Hinz declared the public hearing closed.

Commissioner Beecher moved, seconded by Commissioner Rosenbaum, that the City Commission adopt Resolution 9648, establishing Electric City Power Utility Rates through June 30, 2011.

Commissioner Rosenbaum stated that all Electric City Power customers were customers because they did their due diligence and chose us.

Motion carried 4-0.

Public Works Director Jim Rearden stated that staff proposed that all sanitation rates increase by approximately 4.5 percent and that those rates go into effect June 6, 2007. The increase requested was necessary to cover rising costs of fuel and equipment. He explained that staff worked hard to reduce costs by deferring equipment purchases, reconfiguring routes and maintaining staff levels although the customer base increased by about ten percent.

Mayor Pro-Tempore Hinz declared the public hearing open. No one spoke in support of or opposition to Resolution 9657. Mayor Pro-Tempore Hinz closed the public hearing.

Commissioner Jovick-Kuntz moved, seconded by Commissioner Rosenbaum, that the City Commission adopt Resolution 9657 as amended, establishing Sanitation Service Rates for Fiscal Year 2008.

Motion carried 4-0.

Chief Prosecuting Attorney Kory Larsen reported that an ad hoc committee was formed following the adoption of the new animal control ordinance to research and recommend the animal control fees to the City Commission. After several meetings, the committee proposed fees which were designed to reach the goals of encouraging owners to spay/neuter their pets and to register animals for a “lifetime” rather than annually. Additionally, the ad hoc committee felt that responsible pet owners should be rewarded and that senior citizens should receive some type of a discount. The committee worked hard to ensure that the fees assisted animal control in cost recovery but were not too high which would discourage compliance with the ordinance. The proposed fees were as follows:

Mayor Pro-Tempore Hinz declared the public hearings open. No one spoke in opposition to Resolution 9659. Those speaking in support of it were:

Bob Mehlhoff, Neighborhood Council 2, stated he was on the ad hoc committee and thought the fee structure was fine. However, he recommended the City Commission consider lower lifetime fees for anyone who had registered a pet in the past for the first year these new fees were in place. He also suggested the ad hoc committee meet again in a year to review the Resolution and to make any changes that may be necessary.

Sue Ann Strickland, Neighborhood Council 2, concurred with Mr. Mehlhoff. She also suggested that vets be required to issue a tag for Parvo vaccinations and suggested a sliding scale for the fees.

Rick Kavulla, Neighborhood Council 4, asked the City Commission to publicize the ordinance and fees and perhaps set up a “hot-line” to answer questions.

There being no one further to address the City Commission, Mayor Pro-Tempore Hinz closed the public hearing.

Commissioner Rosenbaum moved, seconded by Commissioners Beecher and Jovick-Kuntz, that the City Commission adopt Resolution 9659.

Commissioner Rosenbaum stated that he wanted to give the fees recommended by the ad hoc committee a chance. He suggested revisiting the fees in about a year and make any adjustments at that time.

Commissioner Jovick-Kuntz concurred and asked if the Tribune would print a story about the fees and if the City could put the information on the City’s website. City Clerk Peggy Bourne stated that this information would be included on the City’s website.

Motion carried 4-0.

Planning Director Ben Rangel reported that Michael L. and Diane J. McPherson, 2001 5th Avenue SW, submitted a petition to abandon the diagonal segment of Sunset Road extending between 20th Street SW and 5th Avenue SW. The small triangular parcel (Lot 6) located at the northwest corner of the intersection of 20th Street SW and 5th Avenue SW was owned by Cascade County which has provided an affidavit expressing no objection to the abandonment of the involved segment of Sunset Road.
Some area residents provided testimony that the narrowness, the angular configuration and the blind corners associated with the involved section of Sunset Road create a traffic hazard for both vehicles and pedestrians.

Upon abandonment, the northerly half of the vacated right-of-way would revert to and become a part of the abutting Lot 4 currently owned by the McPherson’s and the southerly half would revert to and become a part of the abutting Lot 6 which is owned by Cascade County. Mr. Rangel concluded, stating that a traffic count had not been done for this small right-of-way section.

Commissioner Rosenbaum moved, seconded by Commissioner Jovick-Kuntz. that the City Commission adopt Resolution 9667.

Motion carried 4-0.

Cal Gilbert was appointed to the Housing Authority Board for a five-year term through May 31, 2007. Mr. Gilbert was not eligible for reappointment; therefore, it was necessary to appoint one member to the Housing Authority Board.

Commissioner Jovick-Kuntz moved, seconded by Commissioner Beecher, that the City Commission appoint Howard Corey to the Great Falls Housing Authority Board for a five-year term through May 31, 2012

Motion carried 4-0.

There being no further business to come before the Commission, Commissioner Beecher moved, seconded by Commissioner Rosenbaum, that the regular meeting of June 5, 2007, be adjourned at 8:45 p.m.

Motion carried 4-0.