Mayor Stewart noted that the Community Development Block Grant Funds are available for projects such as housing and neighborhood renewal, planning grants for long-term community projects and for public facilities projects. Currently, the City of Cut Bank is seeking funding improvements to the water distribution system. At this time, Mayor Stewart introduced Dave Aune from Great West engineering.

Mr. Aune gave a detailed presentation on the funding strategy associated with improvements to our water distribution system and the current condition of the lines within the city and replacement priorities. Mr. Aune said the project will be done in four phases which would be an ongoing project for years. A map with the priorities of water distribution line replacement was handed out.

The following is a list of reasons for the replacement of the City’s water lines:

• Lines are nearly 100 years old – most constructed in 1914
• Undersized, 40% of the lines are less than required four inch diameter
• Minimum size by State standards is six inches
• Heavily corroded cast iron or steel pipe – 76% of the lines are steel or cast iron
• Higher treatment, supply and pumping costs
• Higher water purchase cost
• Decreases community growth potential
• Leakage will increase with no repair
• Forty-six (46) leaks in the last five year with as many as fourteen (14) in one year
• Frequent pipe failure leads to increases in annual maintenance costs, service disruption, repair frequency and service will increase in time
• Inadequate fire flows: residential flows ¼ to ½ of required, downtown is marginally adequate, industrial areas ½ or less required, hospital inadequate
• Low system pressure: poor performance household plumbing, reduced level of service
• Backflow contamination due to low pressure: serious public health concerns, chemical and biological concerns
• Low flow velocities – corrosion: inadequate flushing and cleaning, biofilm growth which reduces flow further and increases the rate of corrosion
• Reduced chlorine effectiveness
• Public health risks
• Department of Environmental Quality – meeting standards
• Contamination of soil more likely

Councilperson McCauley asked Mr. Aune if the water pressure increases in the replacement lines would effect other parts of the community adversely. Mr. Aune said it would not be a problem, if anything it would improve other parts of the community whose lines still need to be replaced.

City Attorney Smith asked Mr. Aune how many communities have been able to take on a project like this and not have any increase in water rates. Mr. Aune answered none. Mr. Aune said Cut Bank is in a unique position because of the managing the infrastructure and fiscally responsibility going along with it. Mr. Aune noted most of the communities are not in the position of being able to offset the financial portion of seeking grants. Mr. Aune said at some point there obviously will have to an increase in water rates, but in the mean time maximizing the monies the City does have to move forward.

Mayor Stewart said for this first phase of the improvements, the City does not anticipate having to borrow funds because of the fiscal responsibility of Superintendent Suta in handling the water fund.

Attorney Smith asked the replacement time on the new PVC pipes. Mr. Aune said at least 100 years. The concept of replacing water lines through a long process will be a benefit for many generations to come.

Councilperson Eaton noted his concerns about raising water rates in order to participate in the Rocky Boy Water Project along with future increases to fund the water line replacement program. Mr. Aune said the savings in the operation and maintenance costs in decreasing the water leakage will help to alleviate some of the financial pressures.

Councilperson Shock asked Mr. Aune if he knew of any updates on the Rocky Boy Project. Mr. Aune said he not familiar enough to speak to the issue.

Mayor Stewart asked the audience for other projects the public may be interested in pursuing besides the water line replacement. Mayor Stewart asked for a show of hands on the priority of the water line replacement. All present at the meeting raised their hands. When asked to vote on other items; housing needs was second on the list, economic development was third and revitalization was fourth.

Mike Koepke from the Cut Bank Development Corporation read the following letter into the minutes:

March 3, 2008

City Council:

Infrastructure is a key to the success for Cut Bank moving forward in a positive direction. We have some good things going to happen in Cut Bank and the surrounding area.

Housing: Cut Bank needs low-income housing and/or moderate income housing currently. We need affordable housing to meet the needs of the people that will be coming to this area.

We need to be able to capitalize on the additional Border Patrol coming to the area (100 more employees to Sweetgrass, these jobs make $48,000 to $80,000) not all of them will want to live there. We need moderate-income housing construction.

Wind generation construction (10-12 permanent employees per 100 mega watts of transmission line constructed, MATL, plus construction crews to erect generators) these new workers will need housing. If we can capture 25% of these workers, it would be a large boost to Cut Bank’s economy. A positive, clean community and good school may help encourage some families to live here.

Revitalization: Revitalizing our neighborhoods is important. Making our older homes look inviting and have them leaving a positive impression to onlookers is important. Many of our homes need a facelift. They are still in good shape.

Water: Water is the lifeline for everyone. With the potential of more people coming to the area, water is an even bigger concern.

The Cut Bank Airport is seeing potential growth. The Airport needs potable water to meet their needs and also for fire protection for the Airport.

The City of Cut Bank has its needs for fire protection and supply.

Economic Development: The development of the infrastructure of Cut Bank is vital to the economic development of this area.

Thank you for your time and consideration.

Mike Koepke, Executive Director

Stephen Vaile recently relocated to Cut Bank for potential business opportunities and noted his concern for economic development. He noted he would like to open a computer repair business. Mr. Vaile lived in the area forty years ago and upon returning was disappointed in the decline of the City. Mr. Vaile volunteered his efforts in any way that would benefit the economic growth of Cut Bank. Mayor Stewart thanked him for his concerns and efforts to volunteer for economic development. Mr. Vaile asked about the City Business License and what benefit he would receive from it. Mayor Stewart said the license was put into place to assist in tracking the transient businesses coming through the City. In addition, the Mayor noted the community receives much of the money back in the form of a large donation to the Chamber of Commerce and various other area projects.

There being no further business to come before this public hearing, Mayor Stewart closed the hearing at 7:27 PM.