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Council Minutes

PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF GRAND FORKS, NORTH DAKOTA
September 2, 2008

The city council of the city of Grand Forks, North Dakota met in the council chambers in City Hall on Tuesday, September 2, 2008 at the hour of 5:30 o’clock p.m. with President Gershman presiding. Present at roll call were Council Members Bjerke, Glassheim, Gershman, Christensen, Bakken, Kreun - 6; absent: none.

President Gershman announced that anyone wishing to speak to any item may do so by being recognized prior to a vote being taken on the matter, and that the meeting is being televised.

Brownie Troop 2013 led the council in the pledge of allegiance to the flag, Sarah Martin, leader.

President Gershman commented on various items during the past week and upcoming events:
The Public Safety Training Center is having a grand opening this Saturday, September 13, from 10:00 a.m. to 1:00 p.m. with displays and demonstrations from all three entities - fire, police and mosquito control.

ADOPT ORDINANCE NO. 4248, TO ANNEX BLOCK 1,
STRATA FOURTH ADDITION TO THE CITY OF GRAND
FORKS

An ordinance entitled "An ordinance to annex property platted as Block 1, Strata Fourth Addition to the city of Grand Forks, North Dakota, together with the full width of all platted streets and public rights of way contiguous thereto", which had been introduced and passed on its first reading on August 18, 2008, and upon which public hearing had been scheduled for this evening, was presented and read for consideration on second reading and final passage.

The city auditor exhibited affidavit of publication of notice to the public that this petition for annexation had been filed with the city council and had been published as required.

President Gershman opened the public hearing, there were no comments and the public hearing was closed.

Upon call for the question of adoption of this ordinance and upon roll call the following voted "aye": Council Members Bjerke, Glassheim, Gershman, Christensen, Bakken, Kreun - 6; voting "nay": none. President Gershman declared the ordinance adopted.

ADOPT RESOLUTION VACATING SIDEWALK AND
UTILITY EASEMENT COMMON TO LOTS 12 AND 13,
BLOCK 1 OF REPLAT OF BLOCK 2, SUN-BEAM 5TH
RESUBDIVISION

The city auditor reported that pursuant to instructions by the city council after having received a petition to vacate a 20 foot wide sidewalk and utility easement being 10 feet on either side of the line common to Lots 12 and 13, Block 1 of the Replat of Block 2, Sun-Beam 5th Resubdivision to the city of Grand Forks, ND, the required legal notice had been published calling for a public hearing to be held this evening, and further that no protests or grievances had been filed with the auditor's office.

President Gershman opened the public hearing, there were no comments, and the public hearing was closed.

It was moved by Council Member Bakken and seconded by Council Member Glassheim that we find and determine an insufficiency of protest to the proposed vacation, and introduce and adopt the following resolution, which was presented and read: Document No. 9191 - Resolution. Carried 6 votes affirmative.

HOLD PUBLIC HEARING AND ISSUE FINAL ORDER
FOR DEMOLITION OF SUBSTANDARD BUILDING AT
1711 12TH AVENUE NORTH

The city auditor reported that notice of a public hearing to be held this evening on the matter of substandard building (garage and shed) located at 1711 12th Avenue North, had been mailed to the owner of the property, said property being in substandard condition.

President Gershman opened the public hearing, there were no comments and the public hearing was closed.

Bev Collings, Inspections, reported that they have inspected the structure (garage and shed) at 1711 12th Avenue North and found both to be substandard under items (2), (3), (4), (5), (7), (8) and (9) of Section 10-0401 of the Grand Forks City Code; and that the structures have no value.

Howard Swanson, city attorney, reported that the council would be adopting the findings that the property is substandard and that the cost for repair is greater than 50% of the value of the structures; and with those findings, would be adopting the findings and issuing an order for demolition after a 30-day stay.

It was moved by Council Member Bakken and seconded by Council Member Kreun that we find the structures to be substandard as defined by Section 10-0401 of the Grand Forks City Code, subsections (2), (3), (4), (5), (7), (8) and (9); that a final order of demolition be issued and that the building be demolished by the City of Grand Forks and the cost thereof assessed against the land upon which the building stands or did stand; and subject to findings by the city attorney. Carried 6 votes affirmative.

HOLD PUBLIC HEARING AND ISSUE FINAL ORDER FOR
DEMOLITION OF SUBSTANDARD STRUCTURE AT
512 NORTH 7TH STREET

The city auditor reported that notice of a public hearing to be held this evening on the matter of substandard building (dwelling) located at 512 North 7th Street, had been mailed to the owners of the property, said property being in substandard condition.

President Gershman opened the public hearing, there were no comments and the public hearing was closed.

Bev Collings, Inspections, reported that they have inspected the structure (dwelling) at 512 North 7th Street and found the structure to be substandard under items (2), (3), (4), (5), (6), (7), (8) and (9) of Section 10-0401 of the Grand Forks City Code; and that the repair would require in excess of 50% of the present value to bring it into compliance.

Howard Swanson, city attorney, reported that the council would be adopting the findings that the property is substandard and that the cost for repair is greater than 50% of the value of the structures; and with those findings, would be adopting the findings and issuing an order for demolition after a 30-day stay.

It was moved by Council Member Glassheim and seconded by Council Member Kreun that we find the structures to be substandard as defined by Section 10-0401 of the Grand Forks City Code, subsections (2), (3), (4), (5), (6), (7), (8) and (9); that a final order of demolition be issued and that the building be demolished by the City of Grand Forks and the cost thereof assessed against the land upon which the building stands or did stand; and subject to findings by the city attorney. Carried 6 votes affirmative.

APPROVE INSTALLATION OF SIDEWALKS ON CHESTNUT
STREET BETWEEN 47TH AVENUE SOUTH AND 55TH
AVENUE SOUTH, AND AMEND ORDINANCE ALLOWING
FOR EXEMPTION

The staff report from the engineering department relating to Project No. 6329, sidewalk installation on Chestnut Street from 47th Avenue South to 55th Avenue South, with recommendation from the Service/Safety Standby Committee not to approve a sidewalk list.

Howard Swanson, city attorney, stated he was not present at the meeting of the committee of the whole when this was discussed and did not see in the minutes any discussion of the ordinance that does apply, there is an ordinance which would apply to this project(s) which would require the installation of sidewalks in the neighborhood. He stated he did not know the history as to why this hasn't been installed to this point but under the ordinance certain neighborhoods that have been granted exemptions for a period of time or until a particular project has been completed; and it would be his recommendation that if you are not to install the sidewalks, either on a short term or a permanent basis, that you modify the ordinance to identify it as an exempt area.

Council Member McNamara reported present.

Council Member Christensen moved to amend Section 16-0222, Grandfather Clause, to exempt the area in question from installation of sidewalks until January 1, 2016. Council Member Bakken seconded the motion.

President Gershman stated that he has a petition with 56 signatures in support of the sidewalks.

The city auditor stated that if sidewalks installed in 2015, they would be certified the fall of 2015 with the first payment in February of 2016.

Council Member Kreun stated this area started developing in the early 1970's and wasn't brought in by a particular developer; that when the streets were put in their assessments were higher than normal streets because of the elevations and drainage and situations that were there, that he is a proponent for sidewalks under normal circumstances, but because of the large cost that they had with additional costs for streets, doesn't think it is unfair to give them a two-hear hiatus to catch up and bring it back in 2016 because these sidewalks are also going to cost more than normal sidewalks because of the same reason that the streets were put in, and 2016 isn't out of the norm.

Mr. Lindquist stated he believed that 2016 would be acceptable to a majority of homeowners in the neighborhood.

Council Member Christensen stated to include in his motion, that we exempt them until January 1, 2016 to the intent that if there is additional cost associated with installation of sidewalks attributed to trees being planted or fire hydrants being placed or things the City has done that we should pick up that cost as a community.

President Gershman asked the second, Council Member Bakken, if he would accept that amendment to the motion. He stated that he was going to recommend that the City would mitigate the extra cost, but also stated that he is a firm believer in sidewalks for safety and that perhaps because this issue came from outside of the neighborhood, the reaction is because it was imposed upon you by outside forces; but would hope that if you decide to discuss this further and decide that you want sidewalks sooner than 2016, would encourage you to do that.

Jan Lee stated she is the one that started this and brought in a lot of support and was told would not need a petition, appreciates that the council is in favor recommending now that the sidewalks will go in, and asked the council compromise, do it in 4 years and still comes down to the thing that says sidewalks are not protestable - for the safety of the kids and the people out there, compromise and in 4 years put on one side, and in another 4 years put on the other side or what the neighborhood decides to do.

Council Member Bakken agreed with Council Member Christensen's last motion, but to change that to existing trees, not future trees.

Pat Budge, 4805 Chestnut Street, stated that big concern is the filtration from Mighty Acres on Chestnut Street relative to speeding, and the safety issue is his backing out of his driveway at 7:30 a.m. when they are talking on their cell phones and late for work, same thing at 5:30 and would address the council to see if they can't get a speed limit imposed on that area. Council Member Kreun stated that before adding that to a motion to have the traffic engineer look to see what the posted speed should be. He also stated that when the street was put in, that if they wanted sidewalks, would have to petition for them and that should be in the record someplace.

It was noted by Council Member Glassheim that it is not a question of whether people don't want sidewalks in front of their house, cities have sidewalks and they connect - and is for everybody who might use it, and that is why we require them and that is why it is State law that you can't protest them.

The city auditor read the motion: To introduce an amendment to the ordinance, Section 16-0222, to allow an exemption for this area until January 1, 2016, with extraordinary costs of installations for current in place obstructions to be paid for by the City.

Jan Lee stated that if going to 2016, if setting a precedent. Council Member Kreun stated at that time extraterritorial zoning was not in place and under those guidelines and as long as have those zoning territorials in place, this won't happen and that is why a proponent of normal situations in development and organized development within the structure that we have in place today - that will not be a precedent or an excuse used not to have sidewalks.
Other individuals from the Chestnut Street neighborhood also spoke.

Norm Enerson, 5110 Chestnut Street, stated that bicycles are not allowed on city sidewalks, and sometimes sees sidewalks as being a hazard when vehicles backing out of driveways. Mr. Swanson stated depending upon the zone, not allowed but there are certain areas that are designated both as bikeways, sidewalks and also pedestrian ways, but depending upon the definition, do have a Code that limits the ability to use bicycles on sidewalks.

Walter Mytych, 5011 Chestnut, stated that deferment was given to them with the assumption that property owners when they decided they wanted sidewalks, that they would have them; that the size of sidewalks that they are required to build are not wide enough for pedestrian traffic and bicycles - people in Mighty Acres less than 100 yds. from a bike path and a walkpath.

Pamela Russell, 4917 Chestnut Street, proposed that when sidewalks installed, to do them all at one time because construction creates a safety factor.

Mr. Swanson stated that portion of the motion tonight with respect to the cost of paying for the removal of any trees or utilities, etc. is not a binding decision or action that this body can take on a future council, so the record should reflect that the council at the time that special assessments are acted upon or project acted upon, would have the proper jurisdiction to make that decision, action tonight would be in effect a recommendation to that body for their consideration at that time.

Council Member Glassheim asked if pedestrians have a right to walk in what should be the sidewalk easement or public land. Mr. Swanson stated if there is an easement or public dedication, the public would have the right to use it whether concrete there or not.

Upon call for the question by Council Member Christensen and upon voice vote, the following voted "aye": Council Members Bjerke, McNamara, Gershman, Christensen, Bakken, Kreun - 6; voting "nay": Council Member Glassheim - 1. President Gershman declared the motion carried.

Council Member Glassheim introduced an ordinance entitled "An ordinance amending Section 16-0222 of the Grand Forks City Code relating to the grandfather clause for installation of sidewalks", which was presented, read and passed on its first reading.

Lee Lindquist stated they appreciate action the council has taken and in light of some of the extenuating circumstances, and even some of the safety issues, they all appreciate your listening to people within the neighborhood and if they decide they want to move ahead with sidewalks before that date, knows that he and others would gladly support that, but that the initiative should come from people within the neighborhood.

Council Member McNamara asked if there was anything they could do relative to the terms and extend the assessment period. The city auditor stated that normally sidewalks are done on a 5-year assessment, and are allowed to take this out to a 10-year assessment to help minimize the impact.

APPROVE ORDINANCE CHANGES REFLECTING UTILITY
RATE INCREASES FOR SANITATION AND WATER
ENTERPRISE FUNDS
The staff report from the director of public works relating to FY2009 Sanitation and Water Enterprise Funds rate changes, with recommendation to approve the FY 2009 Sanitation and Water Enterprise Funds utility rates effective on the utility bill issued in February 2009 as per draft ordinance.

It was moved by Council Member Bjerke and seconded by Council Member Bakken that this recommendation be approved. Carried 7 votes affirmative.

Note: The ordinance will be introduced on September 15 (included in ordinance amending various sections of the City Code relating to establishment of various fees and charges.)

AWARD BIDS FOR PROJECT NO. 6312, LAGOON
OUTFALL REPAIR AND METERING

The staff report from the director of public works relating to bids for Project No. 6312, Lagoon Outfall Repair and Metering, with recommendation to award the work for Schedule B-General to Berger Enterprises in the amount of $65,613.55, and Schedule B-Electrical to Bergstrom Electric in the amount of $5,300.00.

It was moved by Council Member Bjerke and seconded by Council Member Bakken that this recommendation be approved and the bids awarded. Upon call for the question and upon voice vote, the following voted "aye": Council Members Bjerke, McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 7; voting "nay": none. President Gershman declared the motion passed and the bids awarded.

AWARD BIDS FOR PROJECT NO. 6311, REHABILITATION
OF PUMP STATION 36

The staff report from the director of public works relating to bids for Project No. 6311, Rehabilitation of Pump Station 36, with recommendation to award the work for Schedule B-General to ICS, Inc. in the amount of $119,500.00, and Schedule B-Electrical to Rick Electric in the amount of $80,250.00.

It was moved by Council Member Bjerke and seconded by Council Member Bakken that this recommendation be approved ands the bids awarded. Upon call for the question and upon voice vote, the following voted "aye": Council Members Bjerke, McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 7; voting "nay": none. President Gershman declared the motion carried and the bids awarded.
AUTHORIZE PURCHASE OF ADA VAN FOR DAR/
SENIOR RIDER

The staff report from the director of public works relating to State of Minnesota Cooperative purchase venture for DAR/Senior Rider ADA Van, with recommendation to authorize Public Transportation to purchase a 2008 Chevrolet/Braun Entervan via the State of Minnesota Cooperative purchase venture in the amount of $35,539. The replacement ADA van is for the Dial-A-Ride (DAR)/Senior Rider service and is funded in part via a Federal Transit Administration (FTA) New Freedoms Grant in the amount of $22,942 with the remaining $12,597 as local match.

It was moved by Council Member Bjerke and seconded by Council Member Bakken that this recommendation be approved. Upon call for the question and upon voice vote, the following voted "aye": Council Members Bjerke, McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 7; voting "nay": none. President Gershman declared the motion carried.

APPROVE RENAISSANCE ZONE PROJECT GF-43

The staff report from the urban development director relating to Grand Forks Renaissance Zone Project GF-43, with recommendation to approve Grand Forks Renaissance Zone Project GF-43 and authorize staff to submit the project to the North Dakota Department of Commerce, Division of Community Services for action.

It was moved by Council Member Bjerke and seconded by Council Member Bakken that this recommendation be approved. Upon call for the question and upon voice vote, the following voted "aye": Council Members Bjerke, McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 7; voting "nay": none. President Gershman declared the motion carried.

APPROVE RESOLUTIONS DSIRECTING SPECIAL
ASSESSMENT COMMISSION TO ASSESS CERTAIN
PROJECTS ON ESTIMATED COST BASIS

The staff report from the finance department relating to directing Special Assessment Commission to assess special assessments on an estimated cost basis, with recommendation to direct that special assessments be levied for the payment of the entire cost of said work, and that the city auditor be directed to so notify the chairman of the Special Assessment Commission:

Watermain Project No. 6192, District No. 298 - $ 97,045.00 - Document No. 9192 - Resolution
Paving Project No. 6244, District No. 633 - 326,438.00 - Document No. 9193 - Resolution
Sewer Project No. 6174, District No. 458 - 3,862.593.00 - Document No. 9194 - Resolution

Council Member Bjerke introduced the resolutions certifying the total cost of the projects with estimated costs and directed that the special assessments be levied for the payment of the entire cost of said work and that the city auditor be directed to notify the chairman of the Special Assessment Commission, seconded by Council Member Bakken, which were presented, read and adopted. Carried 7 votes affirmative.

AUTHORIZE PURCHASE OF PROPERTY FOR LANDFILL

The staff report from the director of public works relating to the matter of acquisition of property, with recommendation to authorize the expenditure of $330,000 for the purchase of Mr. and Mrs. Klein's property and relocation benefits; that the City of Grand Forks will be responsible for necessary closing costs related to the purchase of the property; that Mr. and Mrs. Klein would be allowed to reside on the premises for a period of 120 days from the date of final payment without rent and property taxes; that Mr. and Mrs. Klein would be responsible for all utilities, insurance, and maintenance of residence; that Mr. and Mrs. Klein would be allowed to take personal furnishing to include furniture, washer and dryer, refrigerator, ands range; and if able to move and can appropriately restore the residence, Mr. and Mrs. Klein may take the hot tub from the basement of the residence.

Todd Feland, director of public works, reported they have come to the conclusion of the $330,000 with the items detailed in the staff report and that the Klein's have asked that the unpaid special assessments of $6,363.34 be paid on the house at 573 Evergreen Drive that they are looking at purchasing.

It was moved by Council Member Kreun and seconded by Council Member Glassheim that this recommendation be approved, and further that the unpaid special assessments on the house at 573 Evergreen Drive be paid in the amount of $6,363.34. Upon call for the question and upon voice vote, the following voted "aye": Council Members Bjerke, McNamara, Glassheim, Gershman, Christensen Bakken, Kreun - 7. President Gershman declared the motion carried.

APPROVE PRELIMINARY BUDGET FOR 2009

The staff report from the finance department relating to the preliminary budget of the City of Grand Forks for 2009 was presented to the city council for consideration. The city auditor reported that the Mayor's 2009 budget which was considered at the work session on August 20, 2008, that Council Member Glassheim did make a motion to recommend to the city council that 6 mills be reduced from the dike bond with the General Fund being increased by 3 mills and 3 mills being reduced from the budget and returned to the taxpayers, and to refer to the finance committee items discussed at the work session and to discuss other potential efficiencies, and seconded by Council Member Kreun, with the motion being carried 5 to 1. He noted that since this is the preliminary approval of the budget, the public hearing will be held on September 15 and once the preliminary budget is approved, it can be decreased but not increased at the final hearing. The city attorney advised that they would need a motion on the floor as the work session does not automatically move forward.

Council Member Bjerke reported he has several line items as follows:
1) Re. Smiley water tower and the $386,000 to rehab the water tower, and moved to delete this project from the budget and that Smiley will stay as is until such time as the public works director informs the city council it has become a safety issues. Council Member McNamara seconded the motion.

After some discussion Council Member Bjerke moved to amend his motion to delete this project from the budget and demolish and sell remnants for scrap as soon as possible. Council Member McNamara did not accept the amendment to the motion, as he supports eliminating the funds but has seen the hysterical nature of what happens when you get near Smiley, but to leave it alone and at the time it does become a safety issue and would not second the amendment. Council Member Bakken seconded the amendment to the motion.

Council Member Christensen stated that the money is in the budget to renovate Smiley but wouldn't be spent until they authorize it, and that it is in the proposed budget and if we do not want to renovate Smiley, but thinks there should be some community conversation prior to tearing it down.

Council Member Kreun stated that there has been a group that has been informally gathered to try to raise donations to facelift it, but haven't been able to do that but discussion has taken place within the community and thinks the cost is extremely high and doesn't think this is a quick decision, but methodical decision and thinks it has become a safety hazard and an eyesore, and would propose to demolish it. Council Member McNamara stated he would feel more comfortable if this were to be discussed by the committee and brought to the council as a separate issue - supports tearing it down but would like to see the numbers to include an estimate of what the City would recoup.

Council Member Bjerke moved to withdraw his second motion and substitute the third motion to delete this project from the budget, refer it to the service/safety committee and to bring back to the city council within 60 days the cost of this project, the cost to tear it down and projected cost of what to sell it for. Council Member Bakken accepted the amendment to the motion.

The city auditor reported that they then would not have the money in the budget and would have to wait until 2010 to do the project if it were to be demolished; and stated that the normal process on capital projects that are included in the budget but not guaranteed to be done until they come back as a one-time item to the council and the council has the discretion to refer every item to the committee for analysis and referral.

Council Member Bjerke withdrew his previous motions and moved to refer this project to the service/safety committee where the director of public works will bring forth the cost to either rehab or the cost to demolish and amount for selling the scrap, and to be done within 60 days and back to the city council. Council Member McNamara seconded the motion. Carried 7 votes affirmative.

2) Council Member Bjerke stated that the item re. 15th Avenue South road project by LM Glasfiber, majority of the people using that road will be from LM Glasfiber, fund coming out of Highway Users tax vs. economic development, and moved to refer this item to the finance committee to determine the proper funding source for this project and return with a recommendation to the city council within 60 days. Council Member McNamara seconded the motion. Carried 7 votes affirmative.

3) Council Member Bjerke stated the South 48th Street project is a federal aid street project in the amount of $1.2 million in 2009 and $7.9 million in 2010 and questioned funding source for that project vs. economic development - that in the Industrial Park we are building roads to land we don't own and moved to refer this to the finance committee to discuss the following items: where is the location of the industrial park, do we have an update on land acquisition if we are going to go at this site, need to determine the appropriate funding for the roadwork, whether it should be the federal aid street project money or economic development or attempt to recapture through special assessments and tapping fees and return to city council within 120 days. Council Member Christensen seconded the motion. Carried 5 votes affirmative, with Council Members Bakken and Kreun voting against the motion.

4) Council Member Bjerke stated re. airport - that our police department is providing security for the airport and are not being fully reimbursed, approx. $40,000/year is coming from the City and moved to refer this matter to finance committee to meet with Airport Authority or designated representative to determine a plan to reimburse the City 100% for security costs at the airport effective January 1, 2009. Council McNamara seconded the motion.

Council Member Bakken stated most of the officer work we do at the airport is overtime work, and if actually hired two more full-time officers we would come out better on it and have two more officers on the force and didn't think we would get more money from the Airport as it is federal dollars.

Council Member Gershman stated that we should be very cautious as we go forward and not segment our city, that we have the Alerus Center and economic development that bring people to town - that we have to build roads, they spend money so have restaurants, etc. airport brings thousands of people to the city and hopes this is not retribution, that we are in this together and this is a city and a region that needs to work together.

Council Member Glassheim asked if the airport is city property or separate entity. Mr. Swanson stated that the Airport Authority is a separate legal entity and the property is owned by the Airport Authority but is within the city limits; that the terminal was transferred at the time the Airport Authority was created which was in the latter 1980's.

Upon call for the question of the motion to refer the funding of police services at the airport to the finance committee to meet with the Airport Authority to determine a full reimbursement opportunity from the Airport by January 1, 2009 and to bring recommendation back to the city council, the following voted "aye": Council Members Bjerke, McNamara, Glassheim, Gershman, Christensen - 5; voting "nay": Council Members Bakken, Kreun - 2. President Gershman declared the motion carried.

5) Council Member Bjerke asked that executive orders be made by President Gershman to instruct Mr. Duquette and appropriate city staff to create a buy-out plan targeting positions to be eliminated and have that information brought back to the city council within 90 days.

President Gershman stated that he has been in discussion with Mr. Duquette for several months and this is already in motion but his recommendation is different, that we use an early buy-out for those who wish to take it and do a study of paying their health insurance and if we need to hire people in those positions at less money to see if we have a savings for the City. It has to be understood that every position when somebody retires is analyzed by city staff very carefully before that position is advertised. He noted that Mr. Bjerke's motion is to have that job done and not be replaced, but his recommendation which he will do on executive order is to instruct staff to come to council with a plan and it could be outside consultants to see how many people would be interested in an early buy-out, that we would pay their health insurance until 65 when Medicare starts to see if there is a savings by hiring people that don't have the same grade level, thinks perhaps 45 to 50 people might take that, and if that meets with your proposal. Mr. Bjerke stated that he believes that if you go to department heads, thinks that there are positions that could be eliminated right now - President Gershman stated he is looking at a larger picture where we could save hundreds of thousands of dollars possibly; and referred this to Mr. Duquette.

6) Council Member Bjerke stated that the city staff is gathering information concerning the Alerus sales tax in reference to the potential improvements and request what would be necessary to shift some of the sales tax away from the Alerus to other project/property taxes, that if the City chose to try to move that money, would like to know in detail what would be required of us.

Mr. Swanson stated that the sales tax for the debt retirement, the capital improvements and the operational portions are in Home Rule Charter, to alter either the amount or the scope of expenditure that those funds can be used for would require a public vote, that vote can be brought about by two ways: 1) either by petition of the public, or 2) by action of the city council; and that would be placed on either a special election or a general election and would have to have a majority approval to pass; the caveat he would give you is that you cannot eliminate or reduce the amount of the sales tax that is governed by the bonds or is part of the bond covenants, those covenants will supercede the provisions of the Home Rule Charter until such time as that bond is paid off. He stated if he were looking to either eliminate that sales tax or to take that sales tax and use the proceeds from that tax for other purposes, it requires public vote amending the Home Rule Charter.

Council Member Bjerke stated that as part of that that the city auditor would have some bond covenant type information to relate to us and ask him to do that when he brings forth the rest of that information. President Gershman stated he would caution that we would have to be very careful when looking at an entity that is the single largest investment the citizens of Grand Forks have, which is the Alerus Center, and personally believes it is being run exceptionally well and is an important economic engine for our community, that it is a business and you need to have money to continue to maintain and improve that business - hospitality business - and need to renovate every 6 to 7 years or before the public sees it and that we are probably past that curve, 8 years, and would be very cautious of raising expectations that there are hundreds of thousands or millions of dollars that could be transferred to the City, because he thinks it is important to continue to improve the Alerus Center and continue to strengthen it and need to maintain it in a stellar condition.

Council Member Bakken stated that as buildings get older they get more expensive and we are going to have to maintain that building, the repairs and upkeep are going to climb with it and will probably have to add to it and expand it for Division I, a lot of things that come into this beside the amount of money.

Council Member Christensen stated the community conversation should begin as part of these 120 day report as how or what to do about a library, library has been around for long time, and will have to determine how we are going to fund that as a community - right now it is property tax - there are some needs in this community and have to start figuring out as a community how are we going to pay for those things, probably not going to be property tax, or either redirecting one of these taxes or an increase in a sales tax or do without, and want to maintain as much of a position futuristic attitude as possible when address these issues.

Council Member Glassheim moved to approve the preliminary budget, reducing the dike bonds by 6 mills, putting 3 of those mills into the General Fund and returning 3 mills to the public; and that we refer ideas for potential efficiencies to the finance committee for study and report back. Council Member Kreun seconded the motion. Upon call for the question and upon roll call the following voted "aye": Council Members Glassheim, Gershman, Christensen, Kreun - 4; voting "nay": Council Members Bjerke, McNamara, Bakken - 3. President Gershman declared the motion carried and the preliminary budget approved.

APPROVE BILL LISTING AND ESTIMATE SUMMARY

Vendor Payment Listing No. 08-17, dated August 28, 2008, totaling $1,222,852.56 and Estimate Summary dated August 31, 2008 totaling $1,762,702.69, were presented and read.

It was moved by Council Member Bakken and seconded by Council Member Bjerke that these bills be allowed and that the city auditor be authorized to issue warrants in payment of the same. Upon roll call the following voted "aye": Council Members Bjerke, McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 7; voting "nay": none. President Gershman declared the motion carried and the bills ordered paid.

APPROVE MINUTES AUGUST 18, 2008

Typewritten copies of the minutes of the city council held on Monday, August 18, 2008 and of the special meeting of the city council held on Monday, August 25, 2008, were presented and read. It was moved by Council Member Bjerke and seconded by Council Member Bakken that these minutes be approved as read. Carried 7 votes affirmative.

COMMENTS BY MAYOR AND COUNCIL

1) Council Member Bakken asked Chief Packett look into the cost of having two additional officers on the force instead of paying overtime at the airport, and to bring that forward for consideration prior to adoption of the budget. President Gershman stated that if there is other overtime that we are doing in the city that could be mitigated by additional officers.

2) Council Member Kreun stated he is proposing to have two service/safety meetings on September 9 and on September 16 at 4:30 p.m. if that is acceptable to committee members as there are issues that they need to address. Committee members agreed.

ADJOURN

It was moved by Council Member Bjerke and seconded by Council Member Bakken that we adjourn. Carried 7 votes affirmative.

Respectfully submitted,

John M. Schmisek
City Auditor

Approved:
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Harold A. Gershman, President of the Council