Council Minutes

Minutes of Grand Forks City Council/Committee of the
Whole - Monday, January 22, 2007 ­­­­­_______________

The city council of the city of Grand Forks sitting as the Committee of the Whole met in the council chambers in City Hall on Monday, January 22, 2007 at the hour of 7:00 p.m. with President Gershman presiding. Present at roll call were Council Members Brooks, McNamara, Glassheim (teleconference), Christensen, Kreun, Gershman - 6; absent: Council Member Bakken - 1.

President Gershman stated that Sam Silverman who passed away this past weekend was fascinating individual and wonderful man, and extended sympathy to his family.

Randy Newman, chairman of the Alerus Center Commission, thanked those who had invited them here to present some exciting news about the Alerus Center and its economic impact on the region and the city of Grand Forks, and introduced members of the Commission who were present (David Evensen, Phil Harmeson), Dr. J. Lloyd Blackwell, researcher for the project and Dr. David Flynn who is the Bureau of Business and Economic Research at the University of North Dakota; Charlie Jeske, executive director of the Alerus Center; and Julie Ward, director of sales and marketing at the Alerus Center.

He stated that Dr. Blackwell who is the author of the report and will discuss the study's methodology and conclusions and Julie Ward to share how the Alerus Center intends to use the formulas that were developed by Dr. Blackwell's study to better manage the Alerus Center. He stated he has an invitation for the council and media to a working dinner next month, Tuesday, February 20, at 5:30 at the Alerus Center, and at that time would like to present and discuss their 2006 financials and further discuss their balanced performance model which addressed a number of things that they hold themselves accountable for with the performance of the Alerus Center, and share future issues that might affect the Alerus Center.

He stated the study was requested by the Alerus Center Commission and funded by the Mayor of Grand Forks; that the reason for the study was because of number of concerns over use of national multiplier to calculate the economic impact of the Alerus Center which is owned by the citizens of Grand Forks, and was to develop and economic impact model that was unique to our region and takes into consideration the diverse entertainment and convention uses of the Alerus Center and gives staff a tool to use to maximize the economic benefit that the Alerus Center brings to our region.

Dr. Lloyd Blackwell, professor of Economics, presented Final Report, The Alerus Center Visitor Study, and noted that there has been an Alerus Center problem, that the AC seems to be losing money because AC operations reports do not capture the impact of the AC visitors spending outside the facility. The study shows estimates that AC visitors spent $1.8+ million inside the AC and $14.5+ outside; that the AC actually earned a substantial profit in the year that they studied (September 1, 2004 through August 31, 2005) and in every year since it has been opened. He stated they would focus on the AC as a city-owned business and have several ways of looking at this, which are included in the full study. He stated how do they find the things that need to predict impacts - data collected from this period, AC patrons were surveyed for selected events, surveyed vendors, organizers, had attendance and financial information from AC. They were concerned with hotels and motels, eating and drinking places, other entertainment, retail stores, service stations, car rental, etc. They reviewed details of analysis, multiplier impacts; and details of economic impacts. He stated conclusion was that we don't appear to have lost money on the Alerus Center; that the BBER is confident the impact of the AC on Grand Forks can be increased by making it even more profitable.

Julie Ward, director of sales and marketing, reviewed how formulas will be used; determining the potential economic impact of an event will become a part of the criteria and will be taken into consideration when approving the funds usage. The new economic impact formulas will help change the way they interpret the success or failure of an event and will serve as a tool when choosing which events to book. She noted that conventions are not traditional moneymakers for facilities, but due to overnight stays and visitor spending, they can have a significant economic impact on the community. She noted that updates to the study will be necessary in order to maintain the current level of confidence in the formulas.

There was a general question and answer period for the council following the presentation.

President Gershman thanked Commission members and staff who work very hard and take this very seriously.

2.1 Amend City Code relating to issuance of reserve revenue bonds.
The city auditor stated that over past year and half have been talking about the joint facility in
Industrial Park for both public safety and for mosquito control, and if they decide to go ahead with the mosquito control portion of this project, they would do revenue bonds using mosquito fees, this puts the ordinance in place that will allow us to use those fees to pay debt, doesn't obligate us to do it nor require that the building be built, but puts this process in ahead of time. 2.2 Required amendment to Defined Contribution Pension Plan. ment, doesn't see that it should come before council for ratification because there is no alternative to ratifying it and suggested that if council agrees, that this become an administrative matter on those mandated by the federal government.. The city auditor stated that if they would proceed with that, they would need to ask our pension counsel to amend the defined contribution plan to allow this type of change to be approved administratively; and that he will bring that up to the Pension and Insurance Committee when they meet. Council Member Kreun suggested that after bringing that up to the Pension Committee, to bring recommendation back to the council. 2.3 Airport Authority ordinance (Info. provided at meeting). 7 members, 5 outside members, and 1 member from city council and 1 member from county commission, and at that time the County Commission did not wish to appoint a commissioner and therefore the council did not appoint a council person so only 5 members on the Authority Board which causes problems as at times only 3 members present and if serious issue to be decided many times reluctant to do that and other times did not make a quorum; that he approached Airport Authority with idea of going back to 7 members. He stated he feels they should be outside members and Council Member Brooks who is liaison to the Authority feels they should be from the council and commission. The Airport Authority does not take a position on that and are comfortable with a council person and a commissioner, and the County Commission is comfortable with whatever the council decides.

Council Member Brooks stated he feels City should have voting member on the Board as there are 4 mills, property tax dollars, designated for the Airport Authority, that we are elected by taxpayers to oversee their tax dollars and we have no vote in those 4 mills and that there should not be a liaison but should be council person on the Authority, needs to be more people on the Board and have county and city as voting members. Council Member McNamara asked for rationale for appointing a person who is not elected relative to argument about the mill levy. President Gershman stated when he was on the Airport Authority, there was a concern by the County Commission that by having an elected official on the Board could politicize the Airport Authority. After further discussion it was decided to follow the existing ordinance which allows for the 7
members, including 1 from city council and 1 from the county commission.

2.4 Project No. 6062, request for qualifications of consulting engineering services for 2.5 Engineering services agreement for Project No. 6105, Menards Water Tower
Reconditioning.____________________________________________________ 2.6 Lease agreement with Park District for Lincoln Drive park area of the Greenway.____________________________________________________ and Zoning defining the land that was being redirected into the flood protection project and when that is completed that we would bring back a longer term lease, they had discussed a long term lease with 5-year increments so if changes have to be made, and that this can be done this year.

Council Member Christensen stated this activity will be referred to the finance/development as the City has fund that is designed to pay for the maintenance of the greenway, etc. and that before getting into any long term leases with another entity for the maintenance of the park area, we still have to figure out the Riverside Park and the pool. He stated he spoke with those people today and will get a partial report within a week on Riverside area and functionality of the pool and the balance of report within 3 weeks; that there needs to be discussion of on-going maintenance of the greenway, areas that the Park District will have and sources of funding. Council Member Kreun stated that the Park District is already doing some of the maintenance and have taken over some of these areas and that is why we have the lease so not all our responsibility as they will take over some of the cost of maintenance. 2.7 2007 Special Events program. Potato Bowl Parade was incomplete (economic impact form) and did not have rep. before committee to testify because individual was out of town; however, they did address the economic impact in narrative form and application put aside. He stated options for the council - can decide to leave the recommendations of the committee, can change it or send it back to the committee to review; there is a possibility and should know in couple days if one of the events is going to take place or not, and if that event doesn't happen, there will be funds available for this event but also for others.

Council Member Brooks stated that the application was incomplete and reps. have since talked to them and feel that we need to go back and take a look at that, review it, and thinks the committee could do that and still get it back to council as there are two weeks before next council meeting and would ask council to allow them to do that. Council Members McNamara, Glassheim and Christensen agreed to look at this a second time. There were members of several organizations in the audience and it was asked that staff send out recommendations to all the applicants so they are aware and to come to the committee meeting if they wish..

CITIZEN REQUESTS

Ted Kreis, rep. of Potato Bowl Committee and works for Northern Plains Potato Growers Assn., stated he was here to apologize for not having a rep. at the first committee meeting, and to tell them how important the Potato Bowl is to this community, biggest community event held here, and attracts approx. 10,000 people to 3 events, parade, french fry feed and football game, and thanked council for reconsidering their request. President Gershman stated they will notify every organization of the committee meeting.

MAYOR AND COUNCIL COMMENTS

1) Council Member Brooks stated he will not be able to be at the finance committee scheduled for Wednesday, nor will Council Member Glassheim. He also stated an update on the salvage yards, that the subcommittee met and will continue looking at in terms of trying to get something done with the fence; and heard discussions here re. moving the whole thing and with help of Mr. Hoover will look at impact can have by getting some Brownfield money to take care of that.

2) Council Member McNamara echoed comments about Sam Silverman, and when first met him, he had missed the presentation but was very interested in what was going on in Iraq and talked about experiences in WWII and how much they affected him and shaped him and echo comments - what a delightful man he was and salute a fellow veteran and a great part of this community.

3) Council Member Glassheim asked if council people and staff would be willing to meet on Saturday so he could be present when finance committee meets in the next couple months. Council Member Christensen stated he would like to have this meeting on Wednesday and is just a question of trying to get some input from council as to what issues they think might exist for discussion in developing the budget and asked for an e-mail as to what thoughts would be, will enter it into the record and was trying to get ahead of the budgeting process. Glassheim stated that if just gathering information but if discussing other issues would like to be present if can.

4) President Gershman stated they needed another press release out on motorized vehicle ordinance, that in the greenway yesterday he stopped two guys on all-terrain vehicles in the greenway, but need periodically to get that out.

ADJOURN

It was moved by Council Member Brooks and seconded by Council Member McNamara that we adjourn. Carried 6 votes affirmative.

Respectfully submitted,


John M. Schmisek, City Auditor