Council Minutes
PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF GRAND FORKS, NORTH DAKOTA
August 2, 2010
The city council of the city of Grand Forks, North Dakota met in the council chambers in City Hall on Monday, August 2, 2010 at the hour of 5:30 o’clock p.m. with Mayor Brown presiding. Present at roll call were Council Members Bjerke, Grandstrand, Gershman (teleconference), Sande, Kreun - 5, absent: Council Member Glassheim - 1.
Members of the Listen Drop-in Center led the council in the pledge of allegiance to the flag.
Carla Tice, program director of Listen Drop-in Center, reported this is 20th Anniversary of the American Disabilities Act, and City of Grand Forks has been a friend to the Listen Drop-in Center for the past 40 years. This past year they did their first performing arts to the region, and has been wonderful impact on individuals. She stated that tonight they would like to take time to invite everyone to Listen's 40th Anniversary on August 12 at Town Square where they will be doing a full production of Grease, and tonight will present a short portion of the play.
Council Member Christensen reported present.
Mayor Brown 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.
Mayor Brown commented on various events during the past week and upcoming events:
Congratulations on big weekend of fun and entertainment in Grand Forks and East Grand Forks with the Cats Incredible Tournament, 300 anglers took part in the fishing event, with Tony Weber and John Anderson of East Grand Forks taking honors as they hauled in 10 catfish weighing 83 lbs. The event also featured the Beans on the Bank competition with 18 teams battling for the best chili concoction, and City of Grand Forks team was honored with showmanship award.
Tomorrow will be another big event, Biggest Block Party in Town, with National Night Out celebration which marks America's Night Out Against Crime, event will be at Purpur Arena from 5:00 to 8:00 p.m., free hamburgers and fun for the whole family; and has issued a proclamation that encourages all citizens and organizations to join the fun. Sue Shirek and Joyce Belbas presented information relating to the event.
PRESENTATION OF AWARD
Mayor Brown reported there were two retirements, Police Cpl. Mike Iwan, 25-year veteran of the police force, will be honored Wednesday at the Grand Forks Police Department; and second retirement is Tom Sand, 32 years with the City and last 26 with the Fire Department. Chief O'Neill stated Mr. Sand was excellent firefighter, been a captain for a number of years and thanked him for his 26 years of service to the fire department. Mayor Brown presented a certificate and thanked Mr. Sand for services rendered, and also thanked Ms. Sand.
APPROVE 401 AND 402 DeMERS BUILDING REPAIRS
The staff report from the director of urban development relating to 401 and 402 DeMers building repairs, with recommendation to authorize staff to engage EAPC to prepare plans, specifications, and bid documents to replace the existing panels and all exterior sealant and make minor repairs and to repair the HVAC control system at 401 and 402 DeMers buildings; and to authorize the director of urban development and finance and administrative Services to borrow up to $1.2 million from an internal City find for a period of up to seven (7) years and an annual percentage rate of up to three (3) percent.
Council Member Bjerke stated that the City has spent millions of dollars downtown in an attempt to revitalize it, but should let the free market decide, that the continued spending of money downtown is failed public policy and need to let it develop by itself, don't do this in other areas of the city. The fact that we own office buildings is a failed public policy, and need to get rid of the ones we do have.
Council Member Christensen stated that the recommendation of staff is to hire an architect to prepare the plans and specifications, etc. to take care of the HVAC at 401 and 402 DeMers (Alerus Financial and Social Security building); but if going to make an inter-fund transfer, no sense in paying interest on it unless getting interest and investing some place else at comparable rate.
Council Member Grandstrand questioned when building was bought and rationale used to buy it, grant and loan. Mr. Hoover reported these two buildings were purchased after the flood of 1997 and a number of financing resources, one was a federal community development block grant, EDA money plus money from the State Water Fund, doesn't recall all the particulars but with respect to the EDA loan and CDBG grant that there was at the end of x years which is 2021, and at that time need to proceed rather than get service on the bond that was also used would then go to the loan with the State Water Commission, based on his calculations that would take about 2039 before the entire facilities would be paid off.
Council Member Gershman stated we should mention in Finance committee that we should be paying cash out of economic development fund and not go for a loan and agrees with that, and moved that we pay cash for these improvements out of the 5996 Account. Council Member Christensen seconded the motion.
Mr. Hoover stated that in the staff report they indicated they would like to have the opportunity to determine the financing source at the time of bid award and know exactly how much money it is going to cost and whether we have the cash flow out of 5996 to fund the improvements, and if don't, will have to borrow some money; that he cannot tell you this evening that we do or do not have all the money in that fund to do that and still cash flow operations.
Council Member Kreun stated that if they look at the recommendation from committee, the motion should recommend approval of the contract with EAPC and that funding will be determined at the time of bid award. He asked Mr. Gershman if that change would be acceptable - it was acceptable to Mr. Gershman and to Mr. Christensen.
Council Member Sande stated he agrees with Mr. Bjerke's comments, doesn't like the concept of the City owning property but realizes that there were some things that needed to be done post-flood and took steps to revitalize downtown but seriously should start looking at divesting ourselves of these properties and doesn't know how long that plan should take because there are some grants in place that would have to be paid back if we were to sell these buildings, but should start looking long term of notifying people that are in these facilities, because he feels we should be out of office building ownership industry.
Upon call for the call question and upon voice vote, the motion carried 6 votes affirmative.
APPROVE 2011 CDBG AND HOME PROGRAMS
The staff report from the director of urban development relating to the 2011 CDBG and HOME Programs, with recommendation to authorize staff to proceed with the 2011 CDBG and HOME Programs per the budget schedule and process.
Mr. Hoover reported that after last Monday's finance and development committee there was a consensus that his staff would work with Mr. Glassheim to fashion an allocation system that would address the comments that had come up in staff, and after communicating with the chairman, Mr. Christensen, who concurred with that and are presenting that revised budget for your consideration this evening.
The revised program allocation accepts a non-competitive set-aside which they have had in the past for CDBG and a competitive side-aside. The non-competitive set-aside would be administration of $330,000 which is down from $23,000 from what we had initially proposed. The American Dream Program which remains as they initially suggested at $200,000 and would have City infrastructure projects, $125,000 that would be under the MUNI Program and then another $30,000 that would be sidewalks in the LMI areas, again reminding must meet national objective and that is why the funds would be used in a LMI area, and are also requesting a set-aside of $225,000 for repairs at the HVAC for the 201 South 4th building, that was an issue of some contention during the past reviews of this, but these are improvements that are needed to address HVAC issues that are affecting current tenants on the second and third floors at the building; we would then ask for competitive program for non-profits, $150,000 for public services, that is what we have done in the past and it continues to go down as our funding dwindles, and then Bricks and Mortar of a competitive program for non-profits. Going back to the 201 building as we talked about in committee, one of the possible tenants in that building would be Center, Inc. and they would have to propose a project that would come through this process and that it would be competitively reviewed and ranked by the Citizens Advisory Committee, both recommendations for the non-profits Bricks and Mortar and Public Services would then go to the finance and development committee, and from there would come with their recommendation to the council. He stated that if this was acceptable, they would have the council agree to the timeline that was in the staff report plus this revised budget.
Council Member Bjerke stated under the CDBG and HOME Program, have the American Dream program, and asked where the money for American Dream would be spent. Mr. Hoover stated that program is a down-payment closing costs assistance that goes directly to first-time home owners that are purchasing properties in the City of Grand Forks and are low and moderate income people and used in conjunction with a loan from a private financial institution to get them the down payment costs and some of the closing costs to reduce the overall cost of the house to them.
Mr. Bjerke asked if the MetroPlains civic parking lot, $190,000 and asked for explanation. Mr. Hoover stated that this was part of the project that was approved by council when the MetroPlains project went through, and is a 17-year loan but cannot tell you off hand what the interest rate is but it is very low and this is to make that project affordable so they can use their tax credits and build that project. Funds would go back to the HOME Program.
After further comments Council Member Christensen stated would get a report of the permitted uses for these funds, $330,000 for 2011 administration, from Urban Development Office. He moved approval of the revised program allocation; Council Member Sande seconded the motion.
Upon call for the question and upon voice vote, the motion carried 5 votes affirmative; Council Member Bjerke voted against the motion.
ALERUS CENTER MANAGEMENT AGREEMENT
The staff report from the Alerus Commission relating to Alerus Center Management Agreement, with recommendation by the finance/development committee to approve the management agreement, subject to the deletion of the sentence at the top of page 9, first paragraph, "Manager shall be authorized to move cash from the Box Office Account into the Operating Account, as appropriate, to meet the cash flow needs of the Center, thereby reducing the need to make cash calls from the City to meet cash flow needs."
There were several questions by Council Member Bjerke relating to various items in the agreement. Howard Swanson, city attorney, stated that the contract is between the Commission and VenuWorks, not between the City of Grand Forks or city council, the Commission is part of the City, but there is no distinction as far as the agreement is concerned between the Commission and the City.
It was moved by Council Member Kreun and seconded by Council Member Christensen to approve the recommendation of the committee to approve the management agreement, subject to change in the agreement. Upon call for the question and upon voice vote, the motion carried 5 votes affirmative, Council Member Bjerke voting against the motion.
APPROVE CHANGE ORDER AND BUDGET AMENDMENT
FOR PROJECT NO. 6555, CITY HALL CARPET REPLACEMENT
The staff report from the director of Human Resources and the engineering department relating to Change Order and budget amendment for Project No. 6555, City Hall Carpet Replacement, with recommendation to approve change order to add new carpet in finance, information center, and Inspections Departments in the amount of $47,999.60; and to approve associated budget amendment.
It was moved by Council Member Bjerke and seconded by Council Member Sande that this recommendation be approved. Carried 6 votes affirmative.
APPROVE APPOINTMENTS TO VARIOUS BOARDS
AND COMMITTEES
The staff report from Mayor Brown relating to appointment of a city council member to the various boards and committees was presented to the city council. It was moved by Council Member Bjerke and seconded by Council Member Sande to confirm the following appointments:
Library Board - Council Member Glassheim
Pension & Insurance Committee: Council Member Grandstrand
MPO Executive Policy Board: Council Member Grandstrand
Grand Forks Planning & Zoning Commission: Council Member Sande will change to the city council representative with new appointment of Bill Hutchison
Grand forks County Planning Commission: Council Member Grandstrand
Pension & Insurance Committee: Council Member Christensen
Grand Forks Airport Authority: Karl Bollingberg
Upon call for the question and upon voice vote, the motion carried 6 votes affirmative.
APPROVE REPAIR OF MENARD'S WATER TOWER
The staff report from the water utility superintendent relating to repair of Menard's water tower, with recommendation to accept low bid of $33,000 from General Construction Services, Inc.
It was moved by Council Member Kreun and seconded by Council Member Sande that this recommendation be approved. Upon call for the question and upon voice vote, the motion carried 6 votes
affirmative.
APPROVE BIDS FOR PROJECT NO. 6604, TRAFFIC
SIGNAL FIBER OPTIC INTERCONNECT ON PORTION
OF COLUMBIA ROAD
The staff report from the engineering department relating to bids for Project No. 6604, Traffic Signal Fiber Optic Interconnect on Columbia Road (17th to 24th Avenues South) and 32nd Avenue South (31st - 38th Streets), with recommendation to award contract to low bidder, Strata Corporation, in the amount of $55,800.00 and to return non-conforming bid unopened to bidder.
It was moved by Council Member Kreun and seconded by Council Member Sande that this recommendation be approved. Upon call for the questions and upon voice vote, the motion carried 6 votes affirmative.
APPROVE CIP COST SHARING POLICIES
The staff report from engineering department relating to CIP Cost Sharing Policies, with recommendation to approve the new CIP policies.
Al Grasser, city engineer, reviewed various concerns of the city and of particular concern are the funds of 2169 and Highway Users accounts, that in looking at projects that they are asking for federal funding, are seeing that the fund for City's share will go in the red about 2014 if we do not add some special assessments to projects that currently by practice have not been special assessed (reconstruction of major roads i.e., Washington Street, etc.), however, other roads like 47th Avenue South, Cherry Street, etc. have been special assessed but picked up the local share of special assessments has allowed us to use that fund to do all the project development costs (up-front costs) so has allowed us to keep that moving but we do need to switch back as started getting into some of the larger projects, i.e., Columbia Road projects, etc. and with those if we want to extend the life of our fund, need to get back into some of the special assessments.
During work sessions we produced two scenarios, one is without bringing in the piece that would typically not be assessed, our 2169 fund would go into the red at about 2014, and if bring in some level of special assessments to these projects, it would extend that to 2016 timeframe. We still don't have a fully sustainable funding scenario for the project but it buys us some more time.
The important thing in the policy is that we want to make sure that we're not over extending and hitting people overly hard for special assessments, policy is that we would review those things and would limit the special assessments on the major streets to the same level as what you would equivalently get for a three-lane section such as 47th Ave.S, and trying to level that playing field so everybody has some level of exposure to assist the city in keeping those fundings going. There was some discussion at the committee meeting on how do we make this more sustainable, how do we get rid of the special assessments - and that is making a more sustainable self funding system when we talk about trying to get into that process this winter looking at other funding sources, etc. how much money we need, what funding sources might be available to take us away from the special assessment process; the city council in the last number of years has made good progress at bringing up the level of funding that the City does contribute, at most of the projects the City is contributing 70 or 80% of the cost of most of these projects for rehab and reconstruction and have had good public response and cooperation on those projects, when they see they're paying 20 cents on the dollar for a project, makes it much more palatable, still sometimes expensive, but it seems to have garnered a lot more community support. They have made progress so would like to go further.
Council Member Grandstrand stated that this process makes special assessments more fair, and in the long run what looking at doing is getting rid of special assessments or reducing them even more than they have been reduced already.
It was moved by Council Member Kreun and seconded by Council Member Bjerke that the recommendation be approved. Carried 6 votes affirmative.
ADOPT RESOLUTION SUBMITTING NOTICE OF
INTENT TO CREATE THE DOWNTOWN QUIET
ZONE AND THE GLASSTON QUIET ZONE
The staff report from the engineering department relating to Resolution to submit a Notice of Intent to create The Downtown Quiet Zone and The Glasston Quiet Zone, with recommendation to approve the resolution authorizing the Mayor to sign Notice of Intent and adopt Resolution for Downtown and Glasston Quiet Zones.
It was moved by Council Member Kreun and seconded by Council Member Sande to approve the recommendation. Carried 6 votes affirmative.
APPROVE AWARD OF BID FOR PROJECT NO.6459,
36 INCH OUTFALL REPAIR, AND APPROVE BUDGET
AMENDMENT
The staff report from the director of public works and engineering department relating to 36-inch outfall repair project bid and associated budget amendment for Project No. 6459, with recommendation to approve Lametti & Sons, Inc. bid of $286,000.00 as the lowest and best bid for the 36 inch outfall repair project; and approve associated budget amendment of $369,492.00 for televising, cleaning, engineering consulting services, construction, and three percent project contingency related to the repair project.
It was moved by Council Member Kreun and seconded by Council Member Sande that this recommendation be approved. Upon call for the question and upon voice vote, the motion carried 6 votes affirmative.
APPROVE BUDGET AMENDMENT, SOLE SOURCE
LETTER AND PURCHASE OF TRAFFIC SIGNAL
CONTROLLERS FOR CITYWIDE TRAFFIC SIGNAL
COORDINATION PROGRAM
The staff report from the engineering department relating to budget amendment of $40,000, sole source letter and purchase of traffic signal controllers TSP traffic keys and auxiliary equipment for the citywide traffic signal coordination program, with recommendation to approve budget amendment of $40,000, sole source letter and purchase of traffic signal controllers and equipment for the citywide traffic signal coordination program.
It was moved by Council Member Kreun and seconded by Council Member Sande that this recommendation be approved. Carried 6 votes affirmative.
DECLARE FIRE TRAINING TOWER AS SURPLUS, AND
ALLOW SALE FOR SALVAGE
The staff report from the fire department relating to declaring fire training tower surplus property and allow sale for salvage, with recommendation to declare the property surplus and advertise for salvage sale.
It was moved by Council Member Kreun and seconded by Council Member Sande that this recommendation be approved. Carried 6 votes affirmative.
APPROVE BUDGET AMENDMENTS FOR FIRE
DEPARTMENT
The staff report from the fire department relating to fire department budget amendment with recommendation to bring in, from the 2009 budget, unused 2008 Homeland Security Grant funds in the amount of $252,556.80 to complete purchase of Haz-mat response vehicle. It was moved by Council Member Kreun and seconded by Council Member Sande that this recommendation be approved. Carried 6 votes affirmative.
The staff report from the fire department relating to fire department budget amendment, with recommendation to approve a budget amendment to purchase hazardous material response equipment to support statewide regional response (total of $157,415) monies from Department of Homeland Security (DHS) FY 2008 State Homeland Security Grant Fund. It was moved by Council Member Kreun and seconded by Council Member Sande that this recommendation be approved. Carried 6 votes affirmative.
AWARD BID FOR QUICK RESPONSE ASSESSMENT
TEAM SUV FOR FIRE DEPARTMENT
The staff report from the fire department relating to awarding bid t=for quick response assessment team SUV for fire department, with recommendation to accept and award bid for quick response assessment team SUV to Rydal's Chevrolet for a total price, including selected options, of $50,766.66.
It was moved by Council member Kreun and seconded by Council Member Sande that this recommendation be approved. Carried 6 votes affirmative.
APPROVE BILL LISTING AND ESTIMATE SUMMARY
Vendor Payment Listing No. 10-15, dated July 28, 2010, totaling $2,259,282.37 and Estimate Summary dated July 31, 2010 in the amount of $1,282,725.83, were presented and read.
It was moved by Council Member Grandstrand and seconded by Council Member Sande that these bills and estimates 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, Grandstrand, Gershman, Christensen, Sande, Kreun - 6; voting "nay": none. Mayor Brown declared the motion carried and the bills ordered paid.
APPROVE MINUTES JULY 6 AND 19, 2010
Typewritten copies of the minutes of the city council held on Tuesday, July 6, 2010 and on Monday, July 19, 2010 were presented and read. Council Member Bjerke noted a correction to the July 19 minutes to include a council vote to a motion relating to a plat of Replat of Lots 10, 11 and 12, Block 36, Budge & Eshelman's Third Addition. It was moved by Council Member Bjerke and seconded by Council Member Sande that the minutes be approved as corrected. Carried 6 votes affirmative.
COMMENTS BY MAYOR AND COUNCIL
1) Council Member Gershman stated that they need to get a better system, that he is using a hard-line phone and there were echoes, etc. He also stated that he has started to form the task force for getting rid of special assessments, are now gathering information and going to be moving forward at how to unwind special assessments in Grand Forks and what best practice is.
ADJOURN
It was moved by Council Member Bjerke and seconded by Council Member Sande that we adjourn. Carried 6 votes affirmative.
Respectfully submitted,
Saroj Jerath
City Auditor
Approved:
________________________________
Michael R. Brown, Mayor