JOURNAL OF COMMISSION
PROCEEDINGS
December 21, 2010

Mayor Winters swore in George Littlefield as a representative of Neighborhood Council 4.

Commissioner Jolley moved, seconded by Commissioner Jones, that the City Commission reappoint David Buckingham and Ryan Carroll to the Tourism Business Improvement District Board of Trustees for four-year terms through December 31, 2014.

Mayor Winters asked if there was any discussion amongst the Commissioners or inquiries from the public. Hearing none, Mayor Winters called for the vote.

Motion carried 5-0.

Commissioner Jolley moved, seconded by Commissioner Bronson, that the City Commission reappoint James Morin and Owen Robinson to the Regional Airport Authority Board for three-year terms through December 31, 2013.

Mayor Winters asked if there was any discussion amongst the Commissioners or inquiries from the public. Hearing none, Mayor Winters called for the vote.

Motion carried 5-0.

Commissioner Jolley moved, seconded by Commissioner Jones, that the City Commission reappoint Mayor Winters, Commissioners Jolley, Bronson, Burow, and Jones to the Electric City Power Board of Directors for one-year terms through December 31, 2011.

Mayor Winters asked if there was any discussion amongst the Commissioners or inquiries from the public. Hearing none, Mayor Winters called for the vote.

Motion carried 5-0.

Commissioner Jolley moved, seconded by Commissioner Jones, that the City Commission reappoint John Chase to the Cascade County Conservation District Board for a three-year term through December 31, 2013.

Mayor Winters asked if there was any discussion amongst the Commissioners or inquiries from the public. Hearing none, Mayor Winters called for the vote.

Motion carried 5-0.

Commissioner Bronson moved, seconded by Commissioner Burow, that the City Commission reappoint Terry Hilgendorf for a three-year term through December 31, 2013, and appoint Martin Byrnes and Cheryl Patton for three-year terms beginning January 1, 2011, and ending December 31, 2013, to the Great Falls Planning Advisory Board.

Mayor Winters asked if there was any discussion amongst the Commissioners or inquiries from the public. Hearing none, Mayor Winters called for the vote.

Motion carried 5-0.

Commissioner Burow moved, seconded by Commissioner Bronson, that the City Commission reappoint Joe Fontana to a three-year term through December 31, 2013, and appoint Sue Ferrin and Mary Sheehy Moe to three-year terms beginning January 1, 2011, through December 31, 2013, to the Mansfield Center for the Performing Arts Advisory Board.

Mayor Winters asked if there was any discussion amongst the Commissioners or inquiries from the public. Hearing none, Mayor Winters called for the vote.

Motion carried 5-0.

Commissioner Jones moved, seconded by Commissioners Bronson and Burow, that the City Commission appoint Joseph Allen Leggett to the Native American Local Government Commission for a four-year term through December 31, 2014.

Mayor Winters asked if there was any discussion amongst the Commissioners or inquiries from the public. Hearing none, Mayor Winters called for the vote.

Motion carried 5-0.

Robin Baker, Secretary for the Advisory Commission on International Relationships, reported on the successful recent hosting of five supreme court justices from Kyrgyzstan. She thanked everyone that was involved. Ms. Baker also reported that she recently had dinner with Harold Pereverseff, President of the Lethbridge Twinning Society, and his family in Great Falls. She provided Mayor Winters and City Manager Greg Doyon with items from Mr. Pereverseff that were left during their recent trip to Lethbridge.

Park and Recreation Director Marty Basta reported that the Multi Sports Complex has historically required a General Fund subsidy to balance the operating budget. The $21,669 subsidy requested for the 2011 budget was cut due to budget constraints. Park and Recreation staff was approached by Gary Ehnes, d/b/a New Age Complex, LLC, in July of 2010, expressing an interest in leasing the Multi Sports Complex. The negotiated (3) three year lease agreement with a discretionary (3) year extension with New Age Complex, LLC, would commence on January 1, 2011. It is the intent of this agreement to provide a positive experience for softball players in Great Falls and the region through the successful operation of the City owned Multi Sports Complex. The rental would be $1.00 for the term of the lease. The Lessee would set fees, retain all revenues and be responsible for all expenses related to the operations of the Multi Sports Complex, softball programs, and all additional programs conducted at the sports complex. The Lessee would be responsible for all maintenance and repairs of buildings, equipment and grounds. Additionally, the Lessee would be responsible for payment of all utility costs. The Lessee will provide statistical and financial reports to the Park and Recreation Department for review annually.

At its November 8, 2010, meeting, the Park and Recreation Advisory Board voted unanimously to recommend that the City Commission approve the proposed lease agreement for the Multi Sports Complex with New Age Complex, LLC.

Mayor Winters declared the public hearing open.

Ron Gessaman, 1006 36th Avenue NE, with regard to the $21,669 subsidy, commented that the 2010 CAFR sets forth that there was a net operating surplus of $5,515, and that $21,669 was added to the end of year total of $58,910. He opined that the City just wants to get out of the business of operating the Multi Sports Complex.

There being no one else to address the Commission, Mayor Winters declared the public hearing closed.

Commissioner Bronson moved, seconded by Commissioner Jones, that the City Commission adopt the Multi Sports Complex Lease Agreement.

Mayor Winters asked if there was any discussion amongst the Commissioners.

Hearing none, Mayor Winters called for the vote.

Motion carried 5-0.

Planning and Community Development Director Mike Haynes reported that Resolution 9908 pertains to annexation of the ±4 acre Montana Eggs property at 1401 Stuckey Road plus the right-of-way along Stuckey Road and the Northwest Bypass needed to achieve contiguity with the existing municipal boundary. Annexation is subject to the annexation agreement.

Ordinance 3060 pertains to assignment of the I-1 (Light Industrial) zoning to the subject property. The City’s I-1 zoning is generally consistent with the County’s I-1 and B-2 zoning districts in the immediate area and is consistent with the existing and proposed use of the property by Montana Eggs.

Montana Eggs is requesting annexation in order to receive water and sewer services that will allow the existing facility to be expanded into a USDA certified egg washing, grading, processing and packaging facility for an estimated 60 million eggs annually.

The previously approved Memorandum of Understanding (MOU), set forth that approximately 2,830 linear feet of water main and 3,040 linear feet of sewer main will need to be constructed to bring services to the Montana Eggs site. The up-front costs for extension of utilities along the NW Bypass and Stuckey Road will be shared by the City and Montana Eggs with the understanding that property owners in that corridor that annex into the City in the future will be required to pay their fair share of the water and sewer main costs.

There are three previous actions on this item - City Commission approved the MOU with Montana Eggs on September 21, 2010, the Planning Board/Zoning Commission recommended approval of the annexation and initial zoning of I-1 on November 9, 2010 and City Commission set this public hearing on November 16, 2010.

Mayor Winters declared the public hearing open.

No one spoke in opposition to Resolution 9908 and Ordinance 3060.

Speaking in support of Resolution 9908 and Ordinance 3060 were:

Brett Doney, Great Falls Development Authority, residing at 3048 Delmar Drive, thanked the Commission for its support of the expansion of Montana Eggs. He reported that Great Falls Development Authority, along with High Plains Financial, approved a bridge loan and SBA 504 loan to help the project. Mr. Doney noted that the City has little I-2 Heavy Industrial zoning, particularly with water and sewer. He encouraged the City to be open to heavy industrial zoning to spur additional development on Stuckey Road.

John Wipf, co-owner of Montana Eggs, thanked the City Commission and City staff for work on this project. He emphasized it was all about food safety. Montana Eggs puts out a good project product now, but will be even better with a USDA station.

There being no one else to address the Commission, Mayor Winters declared the public hearing closed.

Commissioner Bronson moved, seconded by Commissioners Burow and Jones, that the City Commission adopt Resolution 9908 and Annexation Agreement both pertaining to Marks 6A, 7&8, located in NW¼ Section 3, Township 20 North, Range 3 East, Cascade County, Montana, and abutting rights-of-way and segments of the Northwest Bypass and Stuckey Road.

Mayor Winters asked if there was any discussion amongst the Commissioners.

Hearing none, Mayor Winters called for the vote.

Motion carried 5-0.

Commissioner Bronson moved, seconded by Commissioner Burow, that the City Commission adopt Ordinance 3060.

Mayor Winters asked if there was any discussion amongst the Commissioners.

Hearing none, Mayor Winters called for the vote.

Motion carried 5-0.

City Manager Greg Doyon reported that Ordinance 3062 modifies the Official Code of the City of Great Falls to permit the sale of fireworks within the City limits prior to the New Year’s holiday, and clarifies when fireworks may be discharged. He reported that the Police and Fire Departments concerns regarding amending the Ordinance were that the original guidelines established in the Ordinance were adopted after a lengthy discussion; there may be confusion by the public when they can discharge for the New Year’s holiday; typically, firework stand owners do not educate the public about the appropriate times allowed to discharge fireworks, so there may be enforcement issues if the Ordinance is adopted. Mr. Doyon also reported that permits and inspections would be performed for each holiday.

Mayor Winters declared the public hearing open.

No one spoke in opposition to Ordinance 3062.

Speaking in favor of Ordinance 3062 was:

Mike Maeder, 2407 Central Avenue West, expressed appreciation for the proposed Ordinance coming in line with the sales of fireworks allowed by the State for the New Year’s holiday.

There being no one else to address the Commission, Mayor Winters declared the public hearing closed.

Commissioner Jolley moved, seconded by Commissioner Burow, that the City Commission adopt Ordinance 3062.

Mayor Winters asked if there was any discussion amongst the Commissioners.

Commissioner Bronson expressed concern that fees may not adequately cover the cost of personnel inspecting the stands. He summarized a response to his questions from Mr. Doyon that it may not be enough based on the process by which Planning and Community Development and the Fire Department permit and inspect the fireworks stands. The fee is based on square footage. The administrative fee in Planning and Community Development covers 50% of the fee, the remainder is transferred to the Fire Department in a specific line called “Fire Inspection Services,” which is a non-recurring internal service charge. The Fire Department sends out either the Fire Marshal or the Fire Inspector. The inspection typically lasts one hour. Mr. Doyon did not have an exact percentage on cost per inspection for the GFFR portion. If there is enforcement action or re-inspection, the City does not charge again. Mr. Doyon preferred that the Commission make a policy statement tonight in support of this change, and then address the fee issue during the budget process. Commissioner Bronson pointed out that, even if the Commission adopted Ordinance 3062 tonight, there is a 30 day waiting period before it goes into effect. Therefore, its provisions would not apply to this year’s fireworks sales. The Commission needs to decide if it would prefer to wait to address this during the budget process or wait until questions are resolved before considering passing an Ordinance like this.

Commissioner Jones concurred with Commissioner Bronson. As there is no urgency, he believes this Ordinance should be put on hold until all the questions are answered and then be readdressed at a later time.

Commissioner Jolley expressed she was not in favor of putting this on hold. She attended the hearing and heard the pros and cons when the fireworks ordinance was passed. She pointed out that the City allows the shooting off of fireworks on the New Year’s holiday and should allow the purchase of fireworks. The Commission can address the costs in detail during the budget process.

Commissioner Burow concurred with Commissioner Jolley.

Mayor Winters called for the vote.

Motion failed 3-2 (Mayor Winters and Commissioners Bronson and Jones dissenting).

Commissioner Bronson moved, seconded by Commissioner Jones, that the City Commission postpone indefinitely any further consideration of Ordinance 3062.

Mayor Winters asked if there was any discussion amongst the Commissioners.

Commissioner Jolley inquired if the Commission was postponing Ordinance 3062.

Commissioner Bronson responded that he indicated, if it was the desire of the Commission, that it could come back and revisit this at another time as an alternative motion.

Mayor Winters called for the vote regarding the alternative motion of postponing Ordinance 3062 indefinitely.

Alternative Motion carried 5-0.

Fiscal Services Director Coleen Balzarini commented that the Tribune article misrepresented the City’s financial condition. It states that the City sported a deficit as of June 30th in the amount of $3.6 million. Ms. Balzarini clarified that is actually a deficit in the Electric City Power fund that is an accumulative deficit from 2005 through June 30, 2010. In reality, the City increased its net asset value by $4,780,000. The City is now worth $200,189,440. The General Fund increased its net asset value by $1.2 million dollars and now has a fund balance of $4.7 million dollars, which is in excess of 20% of the budgeted expenditures for the year. This meets and exceeds the City Commission’s goal of 17%. In 2010, the City put over $12 million dollars into infrastructure and equipment. The City is better off financially in 2010 than in 2009.

Ms. Balzarini recognized Melissa Kinzler as the Interim Finance Officer. She noted that Ms. Kinzler and the accounting staff, in conjunction with all the departments, make this a successful report.

Because the CAFR was reviewed more extensively during the Work Session, Loran Stensland, representing Junkermier, Clark, Campanella and Stevens (JCCS), briefly summarized the auditors’ results found on page 192 of the CAFR. Seventeen federal funding programs were tested this year as opposed to a typical year of five. He reported that JCCS’s opinion was a clean audit opinion for the year ending June 30, 2010. There were no findings, questioned costs, or issues of non-compliance. The City of Great Falls qualified as a low-risk auditee.

Mr. Stensland explained that, in the letter issued by JCCS, it notes that the City was not technically in compliance with the covenants of the West Bank Renewal Tax Increment bonds as of June 30, 2010. He reminded the Commission that those bonds had just been issued. He would expect that to turn around during a full fiscal year of activity.

Regarding Electric City Power, the City is not in compliance with Ordinance 2925.

Regarding the Golf Course revenue bonds, the City is in compliance with the rate covenant this fiscal year.

Commissioner Jones moved, seconded by Commissioners Bronson and Burow, that the City Commission accept the FY 2009-2010 Comprehensive Annual Financial Report (CAFR), responses to the Audit Management letter recommendations as presented, and authorize staff to submit the related reports to other government agencies and financial institutions as necessary.

Mayor Winters asked if there was any discussion amongst the Commissioners. Hearing none, Mayor Winters asked if there were any inquiries from the public.

Kathy Gessaman, 1006 36th Avenue NE, commented that she hopes this is the last year to see the comment regarding non-compliance of Ordinance 2925. She pointed out that the electric fund’s operating loss for this year is $1,145,670.

Ron Gessaman, 1006 36th Avenue NE, referred to page 54 of the CAFR regarding the electric fund and commented he was baffled how to repay a debt when there are no positive operating funds.

Mr. Gessaman also commented that the unfunded actuary liability for post retirement benefits in the amount of $3,011,242 was almost as bad as Social Security.

Commissioner Jolley explained that would only be if everyone retired tomorrow. She commented that it does look bad and that it didn’t have to be shown in the past.

Mr. Gessaman read item 18, page 74 of the CAFR. He requested an explanation of what the majority portion of that action was concerning the Seibel Soccer Park.

Mr. Gessaman also noted that on page 154, Benefis wasn’t listed as a principal taxpayer, but was receiving a substantial portion of the taxpayers’ money associated with Electric City Power.

Ms. Balzarini responded that, as a principal taxpayer, Benefis is a non-profit corporation. They do pay property taxes, but not necessarily on all of their holdings. On the other hand, Benefis is a major employer within the City of Great Falls. It depends on the tax category they are in pursuant to State statute.

Regarding Seibel Soccer Park, Ms. Balzarini responded that she believes the majority portion is in excess of $100,000 that is still in dispute. The Public Works Department and City Attorney are working through that issue.

Motion carried 5-0.

Public Works Director Jim Rearden reported that this item is an Interlocal Agreement between Cascade County, Montana Department of Transportation and the City of Great Falls. The Agreement outlines responsibilities of each of the parties for development and implementation of the Montana Pollutant Discharge Elimination System permit related to Storm Drainage issued by the State Department of Environmental Quality (DEQ). This agreement is the second five-year iteration and is in effect for the new storm water permit cycle, which is in place through December 31, 2015. The entities work together to implement and enforce a storm water program for the Great Falls urbanized area. Goals for six minimum control measures are established, and an annual report of progress in each of those areas is submitted to the State.

This agreement is required by the Federal Phase II Storm Water Program and by the State DEQ.

Commissioner Bronson moved, seconded by Commissioner Burow, that the City Commission approve the Interlocal Agreement between the City of Great Falls and Cascade County and the Montana Department of Transportation for Montana Pollution Discharge Elimination System Storm Water Permit and Storm Water Management Program, and authorize the City Manager to execute the Agreement.

Mayor Winters asked if there was any discussion amongst the Commissioners or inquiries from the public. Hearing none, Mayor Winters called for the vote.

Motion carried 5-0.

Public Works Director Jim Rearden reported that this item is an Agreement between Benefis Healthcare and the City of Great Falls. The Agreement outlines responsibilities of each of the parties for the cost share of infrastructure installed as part of the Great Falls Orthopedics Institute development. This agreement addresses two items: (1) City reimbursement to Benefis for costs to complete infrastructure improvements on the west half of 25th Street South between 13th and 14th Avenue South and adjacent to the Soroptimist Village. Per the Soroptomist Village annexation, which was done in the 1960’s, they were not required to pay for any abutting improvements after a 10 year sunset clause expired. Funds for this reimbursement are from Street and Water funds designated for Unscheduled Development; and (2) for the City to endeavor to collect reimbursement for Benefis from the future developers of currently undeveloped and un-annexed property which abuts 25th Street South and 15th Avenue South.

Commissioner Burow moved, seconded by Commissioner Jones, that the City Commission approve the Agreement between the City of Great Falls and Benefis Healthcare for reimbursement of public improvements costs incurred in conjunction with the Great Falls Orthopedics Institute Development, and authorize the City Manager to execute the Agreement.

Mayor Winters asked if there was any discussion amongst the Commissioners or inquiries from the public. Hearing none, Mayor Winters called for the vote.

Motion carried 5-0.

Mayor Winters opened the meeting to Petitions and Communications. He shared correspondence he received regarding support of a City flag, selecting a name for the west side, and a Christmas card from President Obama.

City Manager Greg Doyon cautioned the public to stay away from the minor flooding areas. He commented that the City 7 channel service will be enhanced and not reduced. The equipment has been ordered and, hopefully, next month citizens will see some of those changes. Mr. Doyon briefed the Commission about his and Commissioner Jones’ attendance at the Southern Board meeting. In a non-public session, which they did not attend, the Board approved a 4½% rate increase to its members effective the December billing cycle. During discussion, the Chairman requested a joint discussion about a proposal to formulate a new cooperative for ECP’s customer base.
He prepared a memorandum and would explain further at the ECP Board meeting.

Mr. Doyon will be out of the office next week. Planning and Community Development Director Mike Haynes will be Acting City Manager on Monday, December 27th, and the Deputy City Manager will be back on Tuesday to fill in for him.

He thanked Ms. Balzarini for her years of service, and wished her well in her new job.

He also thanked staff for their work on the CAFR.

Mr. Doyon concluded by wishing everyone a Merry Christmas.

The Commissioners wished everyone a Merry Christmas.

Mayor Winters commented that this concludes a full year of this Commission working together. The Commission has worked well together, has been proactive and pro-City of Great Falls. He expressed that it has been a pleasure working with City staff, and he wished Ms. Balzarini well in her new adventures.

There being no further business to come before the regular Commission meeting, Commissioner Bronson moved, seconded by Commissioner Jones, that the regular meeting of December 21, 2010, be adjourned at 8:30 p.m.

Motion carried 5-0.

Minutes Approved: January 4, 2011