Council Minutes
PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF GRAND FORKS, NORTH DAKOTA
December 15, 2008
The city council of the city of Grand Forks, North Dakota met in the council chambers in City Hall on Monday, December 15, 2008 at the hour of 5:30 o’clock p.m. with Mayor Brown presiding. Present at roll call were Council Members Bjerke, McNamara, Glassheim, Christensen, Kreun - 5; absent: Council Members Gershman, Bakken - 2.
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 items during the past week and upcoming events:
Planning and Zoning Commission meeting has been rescheduled for December 17, 2009 at 5:30 p.m
Thanks to city crews for great job they did cleaning streets in timely and efficient manner after our blizzard Ali.
PRESENTATION OF SECRETARY OF DEFENSE
COMMUNITY DRUG AWARENESS AWARD
Col. Scorsone, 319th Air Refueling Wing, Grand Forks Air Force Base, presented the Secretary of Defense 18th Annual Community Drug Awareness Award to Mayor Brown for drug demand reduction program, the 319th Air Refueling Wing and the cities of Grand Forks and East Grand Forks were specifically recognized by the Secretary of Defense for their outstanding support of drug awareness, and partnering with the University of North Dakota's plan to reduce under-age drinking and binge drinking; and on behalf of the Wing Commander he presented a wing coin from the 319th Air Refueling Wing and offered congratulations.
TABLE SECOND READING OF ORDINANCE TO AMEND
ZONING MAP TO INCLUDE LOTS 1, 2, 3 AND 4, BLOCK 1,
KORYNTA-LEMM SUBSIDIVISION WITHIN I-2 (HEAVY
INDUSTRIAL) DISTRICT
An ordinance entitled "An ordinance to amend the zoning map of the city of Grand Forks, North Dakota, to rezone and exclude from the B-3 (General Business) District and to include within the I-2 (Heavy Industrial) District Lots 1, 2, 3 and 4, Block 1, Korynta-Lemm Subdivision to the city of Grand Forks, North Dakota", which had been introduced and passed on its first reading on October 20, 2008 and that public hearing and second reading of the ordinance had been tabled until this evening, was presented and read for consideration on second reading.
Mayor Brown opened the public hearing, there were no comments and the hearing was closed.
It was moved by Council Member Christensen and seconded by Council Member Glassheim to table second reading of the ordinance until such time as the Planning and Zoning Commission has considered the matter. Carried 5 votes affirmative.
SUSPEND AGENDA TO ADD ITEM
A motion was made by Council Member Kreun and seconded by Council Member Glassheim to suspend the agenda to add an item relating to request for exemption of transient merchants licenses for First Night event on December 31. Carried 5 votes affirmative.
APPROVE BUDGET AMENDMENT, LOAN AND
STABILIZATION FUND
The staff report from the city auditor relating to budget amendment for money moved to Loan & Stabilization Fund for bond closeouts and sidewalk warrants, with recommendation to approve the budget amendment in the amount of $502,154.98.
It was moved by Council Member Glassheim and seconded by Council Member Bjerke that this recommendation be approved. Carried 5 votes affirmative.
APPROVE BUDGET AMENDMENT FOR SPECIAL
EVENTS IN 2008
The staff report from the city auditor relating to budget amendment for Special Events in 2008, with recommendation to approve the budget amendment for Marketplace, World Curling and Obama/Clinton event in the amount of $60,950.50.
It was moved by Council Member Glassheim and seconded by Council Member Bjerke that this recommendation be approved. Carried 5 votes affirmative.
APPROVE LIMOUSINE LICENSE FOR SPACE CRUZ
The staff report from the city auditor relating to application for limousine license by Space Cruz, LLC dba Shuttle 54, 311 7th Avenue North, with recommendation to approve the application for license.
It was moved by Council Member Glassheim and seconded by Council Member Bjerke that this recommendation be approved. Carried 5 votes affirmative.
APPROVE GAMING SITE FOR PRAIRIE PUBLIC
BROADCASTING, INC. AT CANAD INNS
The staff report from the city auditor relating to request from Prairie Public Broadcasting, Inc., 207 North 5th Street, Fargo, ND 58108-3240 for gaming site authorization at Canad Inns, 1000 South 42nd Street, Grand Forks, ND 58201, with recommendation to approve the request contingent upon approval by the city council.
It was moved by Council Member Bjerke and seconded by Council Member Kreun that this recommendation be approved. Carried 4 votes affirmative; Council Member Bjerke voted against the motion.
APPROVE TRANSFER OF CLASS 2 ALCOHOLIC
BEVERAGE LICENSE FROM 2 DOGS, INC. DBA
COLUMBIA LIQUORS TO VALLEY LIQUORS, INC.
The staff report from the city auditor relating to request for transfer of Class 2 (Off Sale Alcoholic Beverage) license from 2 Dogs, Inc. dba Columbia Liquors, 1950 32nd Avenue South, to Valley Liquors, Inc., with recommendation to approve the request for transfer contingent upon approval by the city attorney and city council and subject to final approval by the police, fire, health and inspections departments.
It was moved by Council Member Glassheim and seconded by Council Member Bjerke that this recommendation be approved. Carried 5 votes affirmative.
AUTHORIZE PURCHASE OF PROPERTY AND
EASEMENTS FOR CONSTRUCTION OF PROJECT
NO. 6144, STORMWATER PUMP STATION NO. 187
The staff report from the engineering department relating to purchase of property and easements necessary for construction of Project No. 6144, Replacement of Stormwater Pump Station #197 located at Columbia Road and 32nd Avenue South, with recommendation to direct city attorney to purchase lands and easements for the appraised value of $126,600.00.
It was moved by Council Member Kreun and seconded by Council Member Christensen that this recommendation be approved. Upon call for the question and upon roll call the following voted "aye": Council Members Bjerke, McNamara, Glassheim, Christensen, Kreun - 5; voting "nay": none. Mayor Brown declared the motion carried.
INFORMATIONAL ITEM - CONCEPT REPORT FOR
PAVING PROJECT NO. 6273, FEDERAL AID PROJECT
An informational item from the engineering department relating to Project Concept Report for Project No. 6273, District No. 637, paving North 51st Street from Gateway Drive to 10th Avenue North, Federal Project #SU-6-986(083)087, was presented to the city council.
APPROVE AMENDMENT NO. 1 TO ENGINEERING
SERVICES AGREEMENT FOR PROJECT NO. 6273,
PAVING DISTRICT NO. 637, FEDERAL AID PROJECT
The staff report from the engineering department relating to Amendment No. 1 to engineering services agreement with Webster, Foster and Weston for Project No. 6273, District No. 637, paving North 51st Street from Gateway Drive to 10th Avenue North, Federal Project #SU-6-986(083)087, with recommendation to approve Amendment No. 1 in the amount of $61,168.00.
It was moved by Council Member Glassheim and seconded by Council Member Bjerke that this recommendation be approved. Upon roll call the following voted "aye": Council Members Bjerke, McNamara, Glassheim, Christensen, Kreun - 5; voting "nay": none. Mayor Brown declared the motion carried.
APPROVE LEASE AGREEMENT WITH PARK DISTRICT
The staff report from the engineering department relating to Park District deeds and leases, with recommendation to approve lease agreement between the City of Grand Forks and the Grand Forks Park District for lease of properties.
It was moved by Council Member Glassheim and seconded by Council Member Bjerke that this recommendation be approved. Upon call for the question and upon voice vote, the motion carried 5 votes affirmative.
APPROVE 2009 SALARY PLAN
The staff report from the director of Human Resources relating to 2009 Salary Plan, with recommendation to approve the 2009 Salary Plan per City Code 6-0302(1) Salary Plan Adoption.
It was moved by Council Member Glassheim and seconded Bjerke that this recommendation be approved. Upon call for the question and upon voice vote, the motion carried 5 votes affirmative.
APPROVE 2008 HOLIDAY BONUS HOURS
The staff report from the director of Human Resources relating to 2008 Holiday Bonus Hours, with recommendation for approval of employee holiday hours of four (4) hours, pro-rated for contracted, classified and benefited non-classified employees to be taken between council approval date and July 1, 2009; time off to be scheduled and approved by department heads.
Council Member Bjerke stated that some people concerned that if the council were not going to meet and to let everyone know that next Monday, the 22nd of December, he will be at his desk in the council chambers from 5:30 to 7:00 p.m. to hear any comments, questions or complaints, etc. and that he was fulfilling his duties as a city council member.
It was moved by Council Member Glassheim and seconded by Council Member Christensen to approve the recommendation. Upon call for the question and upon voice vote the motion carried 3 votes affirma-tive, 2 negative votes - Council Members Bjerke and McNamara voting against the motion Mayor Brown declared the motion carried.
SET PUBLIC HEARING ON SUBSTANDARD BUILDINGS
AT 1524 NORTH 5TH STREET
The staff report from inspections department relative to substandard dwelling, sheds and lot at 1524 North 5th Street, with recommendation to set public hearing and find the dwelling, sheds and lot to be substandard and required the owner to bring property into compliance by demolishing the dwelling and shed.
It was moved by Council Member Glassheim and seconded by Council Member Christensen that the recommendation be approved and the public hearing scheduled for January 20, 2009. Carried 5 votes affirmative.
APPROVE APPOINTMENTS TO GF EVENTS
CENTER COMMISSION
The staff report from Mayor Brown relating to appointments to the Grand Forks Events Center Commission, with recommendation to approve reappointment of Randy Newman as a public at large representative, David Evenson as a public at large representative, Darrell Larson as a public at large representative, Sheila Gerszewski as a public at large representative and Curt Kreun, city council representative to the GF Events Center Commission for three year terms.
It was moved by Council Member Glassheim and seconded by Council Member Bjerke that this recommendation be approved. Carried 5 votes affirmative.
APPROVE CHANGE IN RATE OF RETURN ASSUMPTION
FOR DEFINED BENEFIT PENSION PLAN
The staff report from the Pension and Insurance Committee relating to matter of change in rate of return assumption for Defined Benefit Pension Plan, with recommendation that the council approve the change to 7.25% for the rate of return assumption used in the Defined Benefit Pension Plan.
The city auditor reported this is being brought back to discuss the allocation model and who the City would have manage its Defined Benefit Pension Plan for the more mature employees in the City's employment, those hired prior to January 1, 1996. Originally the Pension Committee had recommended an assumed interest rate for the Plan of 7.75% and after looking at the potential for the asset model and what the average earnings could be, the recommendation is to change the assumption in the Defined Benefit Plan to 7.25%.
Council Member Christensen stated the consensus was to lower it and in lowering it each quarter point we increased the probability and will have to contribute another $150,000/year and that in 2010 our contribution will be in the area of $2.6 million because we have the $1 million contribution and then the unfounded liability that we have been funding at $1.3 million but with this additional $300,000 it will probably be about $2.6 for 3 to 5 years until they see how this works out.
Council Member McNamara stated this has been problematic and the unfunded liability is one of the things when they do planning and the way the council attempts to manage money, this is one of the things that has to be accounted for in that box and by lowering the assumed rate of return, we go a long way to solidifying our role as a City in that we make sure we fund it to the extent that we should, that we will look at this for a few years to see if we need to tweak it further, but the last variable we are looking at is the asset allocation and as soon as we get that back this will be where it ought to be and will be very solid and we are all very comfortable where it is at right now.
It was moved by Council Member Christensen and seconded by Council Member Kreun that this recommendation be approved. Upon call for the question and upon voice vote, the motion carried 5 votes affirmative.
APPROVE 8TH AMENDMENT TO THE DEFINED
CONTRIBUTION PENSION PLAN
The staff report from the Pension and Insurance Committee relating to matter of 8th Amendment to the Defined Contribution Pension Plan, with recommendation that council approve the 8th Amendment to the Defined Contribution Pension Plan
It was moved by Council Member Glassheim and seconded by Council Member Bjerke that this recommendation be approved. Upon call for the question and upon voice vote, the motion carried 5 votes affirmative.
APPROVE 10TH AMENDMENT TO THE DEFINED
BENEFIT PENSION PLAN
The staff report from the Pension and Insurance Committee relating to matter of 10th Amendment to the Defined Benefit Pension Plan, with recommendation that the council approve the 10th Amendment to the Defined Benefit Pension Plan.
It was moved by Council Member Glassheim and seconded by Council Member Bjerke that this recommendation be approved. Upon call for the question and upon voice vote, the motion carried 5 votes affirmative.
APPROVE CONTRACTING WITH ND STATE BOARD
OF INVESTMENTS FOR MANAGEMENT PLAN ASSETS
AND TRUSTEE SERVICES
The staff report from the Pension and Insurance Committee relating to matter of change in asset allocation and method of investments, with recommendation that the council approve contracting with the ND State Board of Investments for management of plan assets and trustee services, pending their acceptance and authorize staff, in consultation with the Pension committee to negotiate a contract which will set the asset allocation at a level to meet the expected rate of return of the plan, with an anticipated allocation near the 60-40 mix favored from the Asset Liability Study.
The city auditor reported that last week when this matter was presented they had the allocation in for a 60-40 mix (60% equities and 40% fixed income) with the provision that the Pension Committee was going to meet again to discuss who would the asset managers be and who would be doing the investing for us, and read the recommendation from the Committee - "…It is a recommendation that the council approve contracting with the North Dakota State Board of Investments for management of plan assets and trustee services pending their acceptance and authorize staff in consultation with the Pension Committee to negotiate a contract which will set the asset allocation at a level to meet the expected rate of return of the Plan with an anticipated allocation near the 60-40 mix favored from the asset liability study."
Council Member Christensen reported that after that meeting they received some information from the State as to various asset allocations of the NDPERS which is 65-35, City of Fargo 65-35, City of Bismarck 65-35; and City of Minot 55-45; and that they will meet again before they finalize the asset allocation and discuss a 60-40 allocation or a 65-35 allocation, recognizing this is a 5 to 20 year issue and probably would be in his opinion prudent to allocate 65-35, and we will come out much better with that type of allocation and probably decrease the probability that we will have to continue to fund at the excess level that we are.
It was moved by Council Member Christensen and seconded by Council Member McNamara that this recommendation be approved. Carried 5 votes affirmative.
TABLE 2009 CHEMICAL BIDS APPROVAL
The staff report from the superintendent of water utility relating to 2009 chemical bid approval for Water/ Wastewater Treatment Plant, with recommendation to approve recommended bids per summary.
It was moved by Council Member Kreun and seconded by Council Member Glassheim to table this matter until January 5, 2009. Carried 5 votes affirmative.
TABLE WASTEWATER/STORMWATER DIVISION
TRUCK WITH JETTER
The staff report from the director of public works relating to Public Works Department - Wastewater/Stormwater Collections Division truck with jetter, with recommendation to approve bid of Wastewater/Stormwater Collections Division truck with jetter as the lowest and best bid: Flexible Pipe Tool Co., $133,113.00.
It was moved by Council Member Kreun and seconded by Council Member Glassheim to table this matter until January 5, 2009. Carried 5 votes affirmative.
INTRODUCE ORDINANCE RELATING TO GREENWAY
DEFINITIONS AND MOTOR VEHICLES
The staff report from the greenway manager/specialist re. introduction of ordinance amending Sections 14-0402 of the grand Forks City Code relating to greenway definitions and Section 14-0413 of the Grand Forks City Code relating to motor vehicles in the greenway, with recommendation to grant preliminary approval of the ordinance relating to motor vehicles.
It was moved by Council Member Glassheim and seconded by Council Member Bjerke that this recommendation be approved. Carried 5 votes affirmative.
Council Member Kreun introduced an ordinance entitled "An ordinance amending Section 14-0402 of the Grand Forks city Code relating to greenway definitions; and section 14-0413 of the Grand Forks City Code relating to motor vehicles in greenway", which was presented, read and passed on its first reading.
APPROVE BUDGET AMENDMENT, PUBLIC WORKS
The staff report from the director of public works relating to Public Works Department budget amendment, with recommendation to approve budget amendments as follows: Water Enterprise Fund, $130,000 for chemicals; Water Enterprise Fund, $740,000 for water treatment plant rehabilitation; Wastewater Enterprise Fund, $200,000 for pump station 336 rehabilitation; Wastewater Enterprise Fund $40,000 for WWTP Attorney fees; and Sanitation Enterprise Fund, $1,051,925.00 for landfill development costs.
It was moved by Council Member Glassheim and seconded by Council Member Bjerke that this recommendation be approved. Carried 5 votes affirmative.
APPROVE MUNICIPAL PARKING SYSTEM
The staff report from the director of urban development relating to municipal parking system, with recommendation from finance/development committee that it approve the system, subject to review of a report accounting for a projected budget shortfall, a budget amendment transferring up to $210,000 in excess sales tax revenue to the municipal parking budget.
It was moved by Council Member Christensen and seconded by Council Member Bjerke that this recommendation be approved. Carried 5 votes affirmative.
APPROVE REDEVELOPMENT OF 1506 CHESTNUT
STREET AND WALNUT PLACE
The staff report from the director of urban development relating to redevelopment of 1506 Chestnut Street and Walnut Place, with recommendation to approve proposal and convey 1506 Chestnut Street to Andy Swanson at a purchase price of $36,800, and approve proposed phased redevelopment of three lots immediately to the west, 410, 416 and 422 Walnut Place, to return the lot at 1431 Walnut that was previously purchased from the City and instead purchase 410 Walnut Place, provide a $10,000 retainer for the purchase of 416 and 422 Walnut Place; and that 416 Walnut Place would be purchased and redeveloped upon the sale of 410, and 422 would follow upon the sale of 416. Mr. Swanson will develop design proposals for committee's review and forward to the council and city attorney.
It was moved by Council Member Glassheim and seconded by Council Member Bjerke that this recommendation be approved. Carried 5 votes affirmative.
APPROVE YEAR-END BUDGET AMENDMENTS BY
URBAN DEVELOPMENT
The staff report from the director of urban development relating to year-end urban development budget amendment requests, with recommendation to increase and transfer $200,000 for council approved beautification projects; to increase budget to match expenses on Promenade Construction Affordable Housing Project and HIP program through FNMA of $1,284,189.
It was moved by Council Member Bjerke and seconded by Council Member Christensen to approve the budget amendment relating to the Promenade Construction Affordable Housing Project and HIP Program. Carried 5 votes affirmative.
It was moved by Council Member Christensen and seconded by Council Member Kreun to approve the transfer of $200,000 for beautification projects. Carried 4 votes affirmative; Council Member Bjerke voting against the motion.
APPROVE POSTPONING COMMITTEE OF THE
WHOLE MEETING SCHEDULED FOR DECEMBER 22
The matter of postponing the committee of the whole meeting scheduled for December 22, 2008 until Monday, January 5, 2009 was presented to the city council.
It was moved by Council Member Glassheim and seconded by Council Member Kreun to postpone the committee of the whole meeting scheduled for December 22, 2008 to January 5, 2009. Carried 5 votes affirmative.
REFER MATTER OF PROTESTS OF SPECIAL
ASSESSMENTS FOR CEMETERY PROPERTY TO
FINANCE COMMITTEE
The matter or protests of special assessments for cemetery property was presented to the city council.
Mr. Swanson stated this is procedural motion and asked the city council to officially refer the protests to the finance/urban development committee for their consideration and subsequent report to the committee of the whole. The motion was so moved by Council Member Glassheim and seconded by Council Member Bjerke. Carried 5 votes affirmative.
APPROVE EXEMPTION OF TRANSIENT MERCHANTS
LICENSES FOR FIRST NIGHT
The staff report from the Information Center relating to transient merchant license exemption for First Night Greater Grand Forks, with recommendation to approve that the 2008 First Night Greater Grand Forks vendors (performers and artists) are exempt from purchasing transient merchant licenses.
It was moved by Council Member Glassheim and seconded by Council Member Bjerke that this recommendation be approved. Carried 5 votes affirmative.
APPROVE BILL LISTING
Vendor Payment Listing No. 08-24, dated December 11, 2008, totaling $888,178.05 was presented and read.
It was moved by Council Member Bjerke and seconded by Council Member Christensen 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, Christensen, Kreun - 5; voting "nay": none. Mayor Brown declared the motion carried and the bills ordered paid.
APPROVE MINUTES DECEMBER 1, 2008
Typewritten copies of the minutes of the city council held on Monday, December 1, 2008 were presented and read. It was moved by Council Member Bjerke and seconded by Council Member Kreun that the minutes be approved as read. Carried 5 votes affirmative.
COMMENTS BY MAYOR AND COUNCIL
1) Council Member Kreun reported that the service/safety committee meeting scheduled for Tuesday, December 16, is cancelled.
COMMENTS BY CITY AUDITOR
Mr. Swanson stated that this is Mr. Schmisek's last meeting and that it has been a pleasure working with him and acknowledged his last meeting.
Mr. Schmisek, city auditor and director of finance/administrative services, commented relat
ing to his
service of 37.5 years working for the citizens of Grand Forks, that the city is in strong financial condition, and key to this is the reserves they have, but over the next few years with the economy as it is, some of the reserves will be spent down but that is why you have reserves - build reserves during strong economy and use they during a weak economy, so that you don't have to raise mill levies. He stated his thanks to mayor and council members, employees, and department heads. Mayor Brown thanked Mr. Schmisek for his service of 37.5 years to the city and look forward to working with him in the future as county commissioner.
ADJOURN
It was moved by Council Member Bjerke and seconded by Council Member Glassheim that we adjourn. Carried 5 votes affirmative.
Respectfully submitted,
John M. Schmisek
City Auditor
Approved:
________________________________
Michael R. Brown, Mayor