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Minutes of the Grand Forks City Council/Finance-Development
Standby Committee Wednesday, September 23, 2009 - 4:00 p.m.

The Finance/Development Standby Committee met on Wednesday, September 23, 2009 at 4:00 p.m. in Room A-101 in City Hall with Chairman Christensen presiding. Present at roll call: Christensen, Glassheim, Gershman.

Also present were Saroj Jerath, Candi Stjern, Emily Fossen, Greg Hoover.

1. Matter of consideration of special assessments on cemeteries based upon North Dakota's
2009 Legislative action through Senate Bill #2441._________________________________
Saroj Jerath, city auditor, stated that based on the recent adoption of the amendment to the NDCC which exempts cemeteries from all special assessments, that our intention is to cancel the uncertified special assessments for the Flood Protection Project and Rehab of Pump Station #182 and #188, cancel unpaid certified special assessments for the same projects which is owed to Grand Forks County and, dependent on council action, to refund prior payments. Amount of refund is $77,880. Project started in 2001. It was noted that the law is vague on the refunding. Ms. Jerath stated that in the city attorney's letter he has explained the law - that an amendment to the legislature requiring repayment of previously paid special assessments was considered by the legislature but the amendment was not adopted; but that we have a request from Calvary Cemetery Assn. for refund.

Chairman Christensen stated the Supreme Court decision was 3 to 2; and that in light of Supreme Court case thought that shouldn't be assessed and would support giving the money back and be done with it. City Auditor Jerath stated that this will not affect property owners because they cannot respread the assessments to other benefited properties; that when we cancel the special assessments we still have to pay the bonds and City has to pick up. First project was done in 2001 and Rehab done in 2008, almost 19 years of assessments and staff recommending to cancel uncertified balance; refund will be paid out of Debt Service Fund or if at end there is a deficiency then have to pay out of special assessment fund which source of revenue is property tax; that may have to increase the mill levy to pick up deficiencies. Original assessments were $193,000 for dike assessment plus $87,000 for rehab projects and $199,000 remains uncertified. Total City's obligation, including refund and uncertified, is $350,000.

Glassheim moved to accept the recommendation and refund prior payments and cancel specials; seconded by Christensen. Motion carried

Father Braun, president of Calvary Cemetery Association, stated that those who paid should be refunded, as those who didn't pay not have to pay anything.

2. Assignment and amendment of existing remarketing agreement for $5 million, the City
of Grand Forks, ND Variable Rate Demand Industrial Revenue Bonds, Series 1999.___
Greg Hoover, Urban Development, reported that this is pro forma issue that there has been a change in remarketing agent for this bond and that had been Wells Fargo and their public service entity is being consolidated with Wachovia and need to sign off on this document so Wachovia can continue to be the remarketing agent. EDC will be considering this in early October - there is agreement between EDC and JDA where EDC agrees to sign the rights to repayment,
where we get the repayment from LM and we pay EDC who then pays the bond; will need a letter from JDA consenting to EDC's going ahead with signing off on this agreement; and if we go forward with this to the council, will also add the JDA at a special meeting on 28th.

The Public Finance Section of Wells Fargo is being consolidated with Wachovia's finance section, and to keep everything on the up and up, we need to permit the agreements. The city attorney finds it acceptable.

Motion by Glassheim and Christensen to move approval of the recommendation. Motion carried.

McNamara reported present.

The committee reviewed information that had been discussed and moved on recommendation for refund of monies to cemeteries; that have no legal obligation because Legislature passed but didn't require paying it back, that was an amendment added to the bill but failed. Mr. McNamara questioned what impact would this have on the special assessment process, Christensen stated that the special assessments against cemeteries are gone and we will have to pay it out of general revenue dollars. Mr. McNamara stated wanted to make sure that the special assessment process hasn't changed based on exceptional legislative action.

Motion by McNamara and Glassheim to adjourn. Motion carried. Meeting adjourned at 4:35 p.m.

Alice Fontaine
City Clerk