Council Minutes
PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF GRAND FORKS, NORTH DAKOTA
July 21, 2005
The city council of the city of Grand Forks, North Dakota met in the Grand Forks County Office Building, 6th floor, in a joint meeting with the Grand Forks County Commission on Thursday, July 21, 2005 at the hour of 4:00 o’clock p.m. with Commissioner Murphy presiding. Present at roll call were Council Members Brooks, Christensen, Kerian, Kreun, Gershman - 5; absent: Council Members Hamerlik, Glassheim - 2. County Commissioners present were Kvasager, Malm, Triplett, Yahna, Murphy.
Commission Chairman Murphy noted that all county commissioners are present and a welcome to the representatives from Washington, D.C. and asked members around the table to introduce themselves, Debbie Nelson, Grand Forks County Finance & Tax Director; John Schmisek, Finance Director for City of Grand Forks; City Council Members Brooks; Gershman, Kreun, and Kerian; Rick Duquette, City Administrator for City of Grand Forks; Jim Melland, Grand Forks Region Economic Development Corporation; Asst. County States Attorney Tom Falck, and two representatives with the Defense Office of Economic Adjustment (David McKinnon and Jay Swead).
Chairman Murphy turned the meeting over to Rick Duquette, city administrator for the City of Grand Forks. Mr. Duquette stated that recently he and Commissioner Malm went to Denver to a conference related to base realignments and closures and that it was an eye-opener about the importance of planning for either a base closure or base realignment, that we have received wonderful news in the last few days relating to the Grand Forks Air Force Base, but there is a need for planning and to think about what is happening, even if the base becomes larger, need to plan for that. He stated they met with Mr. McKinnon and Mr. Swead of OEA and they were assigned the file for the Grand Forks Air Force Base and are going to walk through the importance of planning, functions of OEA, what happens at realignment and why it is important to do what we are doing. He stated this is a preliminary meeting and a chance to learn about this and may have many questions abut this today and as time goes on. He stated they have a small group of staff on the ground already working on this in a preliminary sense looking at structures that they may need in the future for planning purposes, how want to work with consultants, how can interface with Department of Defense.
COUNCIL MEMBER CHRISTENSEN PRESENT
Dave McKinnon stated he was here in 1996 when missiles were taken out and tankers came in, and their office was designed specifically to help communities affected by defense program changes, that if they close the base, if close part of the base, then there are economic impacts to the community, if we increase the size of the base that could cause hardship in the community. To deal with community issues that are related to those kinds of changes that the department undergoes and that there are a lot of changes in the way national defense is performed, changes in local situations which happened around 1990 which resulted in closing a number of bases, bomber bases, that were no longer needed, also the reduction of the missile capabilities in the country because that was no longer needed; and they respond to those kinds of churning up that goes on in the community as a result and usually the biggest problem are the ones where the base is actually closed, and you have here what is realignment where people are leaving and not sure what the numbers are right now and the result that is going to have some adverse effects on housing market, schools, businesses and on the community as a whole and individuals and that there are a lot of programs that have been in place for many years to help those individuals that work on the base and might lose their jobs. He stated that in the last several rounds of base realignments and closures only 10% of the work force actually were let go at the end of the process and that is in a period where the Department was experiencing 36% decrease in personnel, military and civilian; that people find other jobs or take early retirements or take separation incentive programs that were designed and those are all still there to help those people. They also help communities that are overly dependent on defense spending and would characterize this community as one that would qualify for that kind of assistance which they can now provide as well. He stated in this type of round the Office decided it was important to get out to communities to prepare them for whatever decisions might be made while this BRAC Commission is deliberating during the summer, that by September they will be pretty much locked in place and no one expects the President would reject the whole list which he can do and that stops everything, and Congress has failed to be able to do that in the past four rounds, the finality about what is going to happen and that your Base was not put on for consideration of closure at this time, but at least there is proposed a significant reduction of personnel and even if that doesn't happen there will still be a dependency of people at the Base and if mission is increased on the Base and that is even more dependency and larger percentage of your population will be related to the Base, and important to think about planning for the diversification of local economy and that is what prepared to do right now is to assist you with funding to look at what will likely impact to happen if the Base recommendation is carried forward and there will be a reduction and how affect schools, small towns around here that have a large number of people that work at the Base; what is characteristics of work force out there, can they be re-employed here and what if significant number of people want to retire or find other branches of federal government and if able to find jobs here and doing preplanning now and going into full score of planning for what will happen if but actually stays as is so get a head of the curve and when those jobs begin to disappear, hopefully new jobs and businesses will be developed in the community to take care of that.
He stated they have had an extensive tour of your flood protection system and gave them a chance to look at the city, that he was here in 1996 and things have changed a lot here and a lot of new development and some as a result of the flood but was impressed with what a nice community this is and the assets that you have here with the University and the agri-business and the Base, which are the three principals in the local economy. He stated their program is one where assign program managers and he and Jay have been assigned because their Director felt that it was important to put a number of people on this project because of the potential impact and actual figures say 7.4% of workforce could be off if this goes forward and they will work with communities here for a period of time, several years, or more if necessary. He stated they are also the staff of a Presidential Committee called the President's Economic Adjustment Committee which has been in existence since 1971, and is designed to pull together the major departments and agencies of the federal government with commitment that they will apply their technical and financial resources to recover from the likely effects of these defensive program changes, and that means that they work with the Dept. of Labor very closely, Dept. of Commerce and Economic Development Adm. and each one of them is assigned a liaison with that agency that they work with day to day with communities all around the country to see that their resources are there, their technical expertise brought to where necessary to those communities that need it. Grand Forks is in a different category than where the Base is actually going to close and something in the papers about the possibility that the Air Force might not need all of the property with the new mission, that he doesn't know the results of any surveys they may have done on that, and if property available that will necessitate a different kind of structure to deal with the issues because there are many legislative timeframes that have to be met, and actions that have to be taken if the property is no longer needed by the Air Force, and that will take a planning activity to look at that, and that is a short term process if that would happen, and would have to begin that and would be wise to begin that as soon as the Air Force was in a position would tell you that property made available because need to develop plan for that property within 21 month period, that there is very elaborate legislative process for disposing of federal property.
Council Member Gershman stated on that particular issue, does the County need to accept the Base but resources of County and City. Mr. McKinnon gave a brief description of federal process, that by December which will be decision date of Congress to override the recommendations and from that point forward if the Air Force has property available will have to screen other federal agencies for their interest in that property and that is in first six months, and by June of next year they will declare in the federal register and local newspapers that so many acres of property at GFAFB is available for other public and private use; you will need to have an organization which they call a local community development authority to perform the functions and legislative requirements for local organization to outreach the homeless providers at that point and to other interested parties that could acquire property under what is called a public benefit program for education and health, airports, water and sewer systems, highways, parks, conservation, whole range of things that have been in place for many years and this can be public entities, City or County, that this property lies in the County so County would have zoning and development controls unless some special entity was created for that purpose. A non-profit education or health care institutions can also request property at that point, and the idea is to look at those needs and decide how much for public use and how much sold for private use and can be required by government for economic development and used or resold or directly put on the market for private sector to bid on certain parts of the property. Long standing process and not sure how the military is going to do this this time and federal regulations procedure and what emphasis they might put on - the Air Force would have the final decision making authority over who that property goes to, whether federal agency and federal agency has to buy it at market value, and within a year or by next December all of the interest in that property would have to have been undercovered as well as looking at what's the market type of development and best use for that property and that property controlled by local governments, and probably do lion's share of the investment into it unless private - and Air Force has to make decision and do that in national departmental policy act context by doing environmental assessment or environmental impact statement on how they plan to dispose of the property, who its going to go to, for what purposes, etc. and that results in record of decision.
Council Member Christensen asked how they determine fair market value of the property? Mr. McKinnon stated they would have to ask the Air Force that, they will hire appraiser based on local comparables, based on use of the land for that property. He stated the only source of money to assist City in buying the property, maybe Economic Dev. Adm. and not sure whether this area would quality for some of their agricultural. They would during planning process is identify key issues that might come up, every place is different, identify how approach that and identify the resources you will need and where those will come from, that they act on your behalf with those agencies, they work with them in Washington or regional level to make sure that your needs are going to be met.
Council Member Gershman stated that they said that federal agencies have the first look at property, if there have been cases where those agencies come in and strip the building and take out key infrastructure of the building and community left with the shell. Mr. McKinnon stated they can't do that and have to demonstrate that there is a bonefide need for the use of it and budgeted for it and can pay fair market value for it and will accept the property as is. During the process of federal screening the local community must be involved in that. He stated that the County doesn't have the authority to zone the property until it becomes non-federal, and part of the planning process would want to zone that property so it gets developed the way you want it developed, either that or acquire it yourselves.
Council Member Kreun stated if they are giving us criteria to help us find programs and grants and if the realignment takes place and there is not much change in the Base, if that is going to be a hindrance to us. Mr. McKinnon stated regardless of what happens if nothing changes here, they would be available to help because this area is significantly dependent on jobs from the Base; and if want our money or technical advise, you want our coordination from the federal agencies for that, then would purpose on what needs to be done in Grand Forks and East Grand Forks and greater area here, then will help promote business development, building on programs that are already in existence.
Council Member Gershman stated that assuming for discussion that the transition to UAV's and transition out of the tankers neutralizes itself and UAV mission becomes as large as we hope it will and haven't had an economic impact from that, we still have access to your office because we have been put on the realignment. Mr. McKinnon stated that there are 3,000 + jobs out there that significant portion of those and dependent on that and willing to figure out ways so that more jobs are created in the private sector than the public sector -
Council Member Kreun stated he touched a little on the makeup of that overall group that would be in control of the economic portion of - is that elected body or staff. Mr. McKinnon stated they feel that elected government bodies, lets see who makes an application and oversees the overall economic effort - the overall economic adjustment effort would certainly expect that the City and County would get together on this and either appoint people to some small group of people who would be hired to develop grant applications and oversee whatever consultant work so done with that, potential for having augmenting staff.
Council Member Brooks stated he wondered when bring into play the East Side of the River because impacts small towns, Emerado but also impacts Crookston and East Grand Forks and at some point have to bring that in, and his concern is unless we involve them, leaving people on the east side of the Red hanging. Mr. McKinnon stated definitely need to involve EGF as this whole area is an economic region and forget state lines and would say that both states labor groups need to get together to see if there is an opportunity or cost-sharing and coordinated. Council Member Brooks stated that we are taking the lead but are being watched very closely by those communities in MN, need to address that. Mr. McKinnon stated that normally they deal with one entity, one organization whether it includes bi-state involvement.
Mr. Duquette stated that in the packet information there is an idea based on development between County Adm. and Economic Development Corp. as potential structure and this structure follows a lot of what we actually did behind the flood where we had decision making group of elected persons, had staff members, city staff, county staff and EDC, and literally hiring professionals, consultants, architects, engineers, planners to help us handle these resources if we get resources, and one of the first steps we want to get to is an analysis of the actual impacts of this and what will happen to jobs out there and who is impacted and this is a structure that we can talk about more and involve in work later on, and this is a idea that was developed from our interaction with the NAID Conference. Mr. McKinnon stated one of the things they will look for in a grant application, that their grant process is all on the web, but they will look at the grant application for the endorsement of whatever group that will work on this from the local governments, City, County, East Grand Forks, and this is organizational structure they want to deal with, and endorse whoever would be the grantee, grantee is going to have to be either the City or the County, probably not East Grand Forks, and State also - State becomes grantee because jurisdictional problems.
Mr. Duquette stated as they move forward need to have further discussion about what looks like - redevelopment issue - and what does this look like as far as working together on a structure, how staff it, and who is sub-grantee, who is administering the grants and who has fiscal responsibility to watch the money and report back to federal government. Mr. McKinnon stated they follow the same rules that all government agencies do, we follow your procurement regulations, hiring practices, etc. come fall, and we know more about this. It was asked if we need a joint authority to make the grant application just to assess the impacts. Mr. McKinnon stated no, can use an existing method but City or County would have to be the grantee; and talked about earlier creating special authority and one level of government being the grantee on behalf of something that is fine with them.
Mr. Swead stated to keep in mind that while the Air Force has not or may not surplus any of their property, they may, and if they do so you need to think about the framework that is in here and how you are going to look at putting together a group, and may have different group that provides input on zoning, housing related issues, etc., that you may consult with State, may have a local private company which you may contract with, and those are things you can start thinking about now, if the Air Force never surpluses any property you have nothing to worry about, should they, you have already begun thinking about it and know where to go from there.
Mr. Duquette stated that today they spent about two hours together with city's staff , county staff and EDC staff and working through a lot of this, and doing it again tomorrow morning at 9:00 a.m. and more staff work and detailed work and finding out more about the grant process and some of mechanics on how it gets done. He stated he has one question and want to look at some of the impact and doing analysis of the impact and begin that part of the process and who would be applying for money, grants, to hire professionals to help us, and do we want to delegate a sub-grantee today to do that part, whether County or City or EDC, but has to be a governmental function.
There was some discussion as to which agency making the grant, and it was suggested that they have EDC in both entities; however, Mr. Melland stated they doesn't have staff to do this and from his perspective he thinks this needs to be flushed out with joint group that you have established, and thinks the question is that you can only make the grant to one entity and the working group tomorrow is going to start working on how to manually get in and write these grants, not what to put in it, just get the authority to do it and maybe expedient to decide which entity would be the one. Mr. Duquette stated the sub-grantee and talking about somebody receiving the money and doing the responsibilities with those dollars and coming back and reporting on how doing that, etc. and why not use this existing body of commissioners and council members at this point in time and he and Ms. Nelson will get together and with Jim Melland of EDC tomorrow and come back with a recommendation to this body of who does the mechanics of receiving the money and at this point will use this body and give recommendations on how will analyze the impacts and will come back and talk about that and who they may suggest that we hire. He stated that if it comes down to either Ms. Nelson or himself recommending to the council and commission, the money goes in her checking account or his checking account.
Mr. Duquette thanked representatives of OEA for coming here.
ADJOURN
It was moved by Council Member Brooks and seconded by Council Member Christensen to adjourn. Motion carried 5 votes affirmative.
Respectfully submitted,
John M. Schmisek
City Auditor
Approved:
__________________________________
Harold A. Gershman, President of Council