May 20, 2009
Commissioners vote to cut fire-service fees to SME By RICHARD ECKE Tribune Staff Writer
All wounds do not appear to be healed over plans for a power plant east of Great Falls.
Great Falls city commissioners Tuesday night voted 4-1 to reduce city fire service charges for Billings-based Southern Montana Electric Generation & Transmission Cooperative, the developer of the Highwood Generating Station.
Commissioners agreed to slash fees from $283,000 to $36,000 annually based on a construction hiatus at the site.
"I think this is a reasonable request," Commissioner Bill Beecher said. "We aren't providing a service at this particular time."
Construction virtually halted Feb. 1. Meanwhile developers must decide whether to switch the plant's fuel source from coal to natural gas, and if they want to reconfigure the plant to a smaller size.
Longtime foes of the plant suggested SME would not be so kind if the city asked to withdraw from its contract to buy electricity from cooperative.
"Now you want to gift (SME General Manager) Tim Gregori $20,000 per month because he asked you to," said Ed McKnight, an unsuccessful candidate for mayor two years ago.
Another plant opponent from Great Falls, Ron Gessaman, urged the city to hold SME to the contract.
"SME is obligated to pay us," he said.
Fire Chief Randy McCamley said the loss of nearly $250,000 per year in fees from SME would not cripple city efforts to hire 16 new firefighters for his department. Federal subsidies and a public safety levy, set for an Aug. 4 citywide vote, could assist in funding those hirings.
Gessaman pointed to city documents from January and May indicating the city was counting on that revenue to help hire extra firefighters.
Commissioner Bill Bronson offered amendments to measuring, stating the move is retroactive to Feb. 1, as SME requested, but the city will not refund any money paid by SME, instead crediting the co-op against future charges.
"If there is going to be any new construction out there at all, I want this agreement renegotiated," Bronson added.
He noted that contracts can be altered if circumstances change.
Commissioner Mary Jolley, who voted no to reducing the payment, said she did not care for the way information about the power-plant project has been presented to commissioners. Jolley has been a longtime opponent of city involvement in the project, as well as the city selling power to area businesses and agencies.
As a result of Tuesday night's action, the new rate for SME for city fire services will be $3,000 per month, plus costs for the city to be called to the plant site for a fire or other emergency.
Also at Tuesday night's meeting, commissioners:
Voted 5-0 to charge groups more money to rent rooms in the Great Falls Civic Center, beginning this summer. Commissioners agreed to raise rental rates to try to bring the city closer to breaking even.
For example, renting the building's Missouri Room will increase from $375 to $425 per day, not counting setup and tear-down costs, while costs to rent the Mansfield Convention Center will increase from $1,675 to $1,820 per day for events with attendance larger than 500 people, not counting various other costs.
An advisory board in February recommended rates be increased. No residents spoke in favor of or against the fee hikes during the meeting.
Agreed to sell property to the lone bidder, Premier Care Pediatrics, in the Medical Tech Park near Benefis East for $195,684. The commission also set a public hearing for June 2 for the proposed sale of an adjoining lot. The medical practice has the opportunity to submit a bid for that piece of property as well.