Council Minutes

Minutes of Grand Forks City Council/Committee of the Whole
Monday, May 11, 2009 - 5:30 p.m._________________ __

The City Council met as the Committee of the Whole on Monday, May 11, 2009 at 5:30 p.m. in the Council Chambers in City Hall with Mayor Brown presiding. Present at roll call were Council Members Bjerke, McNamara, Glassheim, Gershman, Christensen, Kreun - 6; absent: Council Members Bakken - 1.

Essays were read by 4th Grade students of various schools in the city on My Favorite Older Person.

Mayor Brown commented on various items during the past week and upcoming events:
That Congress and the President of the United States designated May 15 as Peace Officers Memorial Day and the week following is National Police Week and members of the Grand Forks Police Department play an essential role in safeguarding the rights and freedoms of our community; and dedicated the week of May 10 - 16, 2009 as Police Week.
He reported that on May 11, 2009 at 1:55 p.m. police officers responded to a fire in an apartment building at 422 South 5th Street, put out the fire and rescued a woman and child, and pet cat. Congratulations for a job well done.
Thanks to everyone who participated in the cooperation of the Spring Cleanup Week, big thank you to all equipment operators and staff at Public Works.
Good job to Chief Packett and Lt. Schiller and police department personnel involved with keeping order in and around Springfest and for minimizing negative impact and also to Park District and Rhombus for making it successful.
Congratulations to everyone who participated in the Near Northside Neighborhood Treasure Hunt this weekend, and thanked everyone for making that event well organized and successful.
Special thank you to everyone from UND Center for Community Engagement, event took lot of hard work and is grass roots neighborhood building efforts in the Near Northside Neighborhood.
Youth Commission held a middle school dance (Be Free as in be free of drugs and alcohol) last Saturday and thanked the Youth Commission for their leadership and the YMCA, Sound & Light and sponsors for making this possible. They called the dance "Be Free" as in be free of drugs and alcohol, a message that he and Attorney General Stenjhem talked to the Commission about last week.
He thanked the Letter Carriers and other organizations who helped stamp out hunger food drive this past Saturday, largest single day food collection effort in the world and our community stepped up to do our share.
Will Steger, Arctic and Antarctic explorer, will be presenting at the Alerus Center tonight at 7:00 p.m. about his first hand account of the effects of climate change in the polar region and raising awareness about all we can be doing. A Green3 Grand Forks initiative group will also be presenting information on what is being done locally.
He thanked everyone for efforts who made the CVIC rise and shine for breakfast last week

ND LEGISLATIVE UPDATE

Pete Haga reported this will be the last legislative update as session ended last week, and reviewed some of the impacts and that he had provided council members a legislative report that outlines this in more detail. He also acknowledged local legislators, Mayor Brown and council members, city staff, ND League of Cities, University of North Dakota, Grand Forks Public School, Chamber of Commerce, Grand Forks Region Economic Development Corp., some private sector businesses. He reviewed some of the major issues with impacts to the City of Grand Forks: 1) Property tax relief - $295 million and effect in Grand Forks area is est. 15.87% reduction in local property taxes and est. $10.6 million impact total to our residents and $450 less in property tax to the 2009 median value homeowner and a decrease of our effective tax rate from 2.13 to 1.79. 2) Transportation Infrastructure Funding: an increase in city funding, will result in larger amount of funding for transportation issues, from approx. $45 million directed to cities to about $61 million through a formula base, 3) Extraterritorial Zoning: planning tool for orderly growth - result was a reduction in the city extraterritorial zoning authority, now have zoning jurisdiction from 0 to 2 miles and joint zoning jurisdiction from the 2 to 4 miles, and only exception is where a plat or site plan have been presented and that the city can for agreements with county or township that overrule these state laws; 4) Traffic Fine Authority: bill that would increase the state-wide fines bit was killed; 5) Renewal Energy and Energy Transmission: no efforts that affect the City, but several that impact indirectly on different areas within the community that include state energy codes, geothermal, solar, wind, etc.; 6) Water Supply Project: project that will be coming in next few years with legislation and that the State will pay for one-third of that total cost, federal 1/3 and local 1/3; 7) Home Rule Authority: limitation on special assessments on non-profit cemeteries, 8) University Related Support: that City would support where possible benefit to City and University of North Dakota efforts.

He stated information on several other areas of an interim committee system: study between legislative sessions they will be looking at: siting of landfills, certified tech park which is a way to focus efforts on technology research and commercialization. Other areas of impact: Centers of Excellence with University; BRIC funding out of Dept. of Commerce budget $10 million with $5 million directed toward Grand Forks Air Force Base efforts. Housing incentives that were passed providing exemption for builders and for new homebuyers, those are enabling pieces of legislation that the council will have to act on to implement them on local level.

Council Member McNamara reported present.

Mayor Brown thanked Mr. Haga, Council Member Glassheim for his efforts in our behalf and Council Member Kreun as well.

2.1 Application for abatement of 2006 and 2007 taxes by Deanna Asay, 405 N. 5th St.
There were no comments.

2.2 Applications for abatement and settlement of 2008 taxes by Grand Forks Homes, etc. __________________________________________________________________
There were no comments.

2.3 Applications for exemption of remodeling improvements to residential or commercial buildings at various locations.___________________________
There were no comments.

2.4 Budget amendment for City Special Assessment Fund.
Council Member Christensen reported the amendment is to pay special assessments on property that the City acquired out of the general tax dollars, Fund 2145, and that we will have more of these issues in 2010, 2011 and 2012 budgets when finalizing 48th Street. He suggested scheduling a work session as part of the budgeting process so know where that money is coming from because will impact your property tax and should start thinking about how to pay for those tapping fees out of other sources; have much bigger issue as we finalize 48th.

2.5 Budget amendment for Insurance Reserve Fund.
There were no comments.
2.6 Plans and specifications for Project No. 6334, Dist. 464, Shadyridge 8th Addn storm sewer.__________________________________________________________________
There were no comments.

2.7 Plans and specifications for Project No. 6335, Dist. 638, Shadyridge 8th Addn. paving and lighting._________________________________________________
There were no comments.

2.8 Plans and specifications for Project No. 6433, Permanent Lift Station No. 37.
There were no comments.

2.9 Bids for Project No. 6351, 2009 Sanitary Sewer Repairs and Project No. 6352, 2009 Storm Sewer Repairs.____________________________________________________
There were no comments.

2.10 Amendment to Cost Participation, Construction and Maintenance Agreement for Project No. 6341, Intersection of S. Wash. St. and 47th Ave.S. Traffic Signal.____
Council Member Christensen asked if there was some way to get information out through Public Info. Service. Dean Rau, asst. city engineer, reported they could get information out, bid due this week and will be bringing staff report through council after bids are opened, completion is planned for this year.

2.11 Cost Participation, Construction and Maintenance Agreement for Project No. 6413, seal coat on University Ave. from N. 3rd St. to State St.; Project No. 6414, seal coat on Mill Road from Gateway Drive to Urban Limit; Project No. 6415, seal coat on N. 20th Street from Gateway Dr. to University Ave.; Project No. 6416, seal coat on S. 20th St. from 24th Ave.S. to 32nd Ave.S.____________________________________
There were no comments.

2.12 Cost Participation, Construction and Maintenance Agreement for Project No. 6419, Concrete Panel Replacement with mill and overlay on 8th Ave.N. from N. 3rd St. to Columbia Road._________________________________________________________
Council Member Bjerke stated there is a federal cap of $246,000 and asked for estimated cost of the project. Mr. Rau reported he would get that information but that estimated cost would be less than $246,000. Council Member Glassheim reported that items being approved are documents from the State and lot of construction going on that will be paid for primarily by the federal stimulus package.

2.13 Cost Participation, Construction and Maintenance Agreement for Project No. 6435, Concrete Panel Replacement with mill and overlay on 17th Ave.S. from Washington St. to S. 42nd St._________________________________________________________
There were no comments.

2.14 2009 Flood Cleanup and Debris Removal in Greenway.
Council Member Bjerke questioned funding source. Todd Feland, director of public works, reported that FEMA will cover 90%, State from 7% and 3% local share, and not sure if out of the greenway fund or from a different fund. Council Member Glassheim questioned how the alternative bid would be handled as the low bidder was high on the alternative. Mr. Feland stated that plans and specs. indicated that the final bid would be awarded based upon the first three and not the trail repair because not knowing if would have any, and it appears there won't be any trail repair needed and was reason not included as part of the low bid process and will not use the alternate bid.

Council Member Christensen suggested that the City's share should come from the Greenway Fund, that they have a special levy of $1.15 per household and this is purpose to use that fund; and asked what is plan for replacement of young trees that were destroyed. Mr. Feland reported that the Greenway staff has been working with the Park District Forestry Department on that plan and is part of the rehab. of the greenway and continue partnering with Park District. He stated they do have $10,000 in line item for cleanup in Greenway Fund and use that as part of the city match. He stated that FEMA funds do not replace trees so will look at alternative sources, and provide update.

2.15 Wastewater Division lagoon rehabilitation material bid.
There were no comments.

2.16 Fargo Metropolitan Area Transit/Grand Forks Cities Area Transit Joint Validating Bus Farebox, Revenue and Data Collection System bid.________________________
There were no comments.

2.17 Public Transit vehicle lift bids via State of MN Cooperative Purchase Agreement.
There were no comments.

2.18 Grand Forks Taxi, Dial-A-Ride/Senior Rider contracted service provider, transfer in ownership.___________________________________________________________
There were no comments.

2.19 Neighborhood Stabilization Program (NSP).
Council Member Bjerke asked for explanation on foreclosure and repair of houses, and selling to people and explain process and second mortgage to recapture. Greg Hoover, urban development, reported that after these properties have gone through foreclosure, discount and at that point will renovate them, determine final cost, the applicant will have to be at 50% of median income or less, will go to a bank and figure out how much they are able to pay on a mortgage as long as that payment is not more than 30% of their annual adjusted gross income. The second mortgage will stay on that property through ownership and if property should be sold before the end of the term of the loan, the money from the proceeds of the subsequent sale will come back, clear off the first mortgage and any amount left over will repay the second mortgage that we have on there.

Mr. Bjerke stated concern re. loaning money to people who can't pay it back and
if we are going to have a plan to maintain the house when it needs repair; that the private sector is capable of buying foreclosed houses, fixing them up and putting them back on the market, has had enough of the government being in the housing business and would rather it stay in the private sector. Council Member Gershman stated a big difference with this program, what got us into the problem were the variable rates that shifted in a couple years and that this is a fixed rate - and payment is 30% of their income, and this is not the same scenario as somebody taking an inflated home with a variable rate that is going higher on them in a couple years.

Council Member Christensen stated the issue is that money has been allocated to the City (its share of State money) and this money has to be dealt with before you can access the rest of the money, and asked who will do repairs to the homes; Mr. Hoover stated they haven't decided whether they will either use staff or staff from Red River Community Action Agency to go in, do an assessment of property and repairs that need to be done, work write up will be made available to the homeowner and the homeowner then will work with contractors to get bids on those projects and then we will do the repairs or reimburse the contractor on that project, and will do as much energy efficiency as can and try and access for other federal funds that are available to reduce that cost that we would normally put in. It was noted they can take up to 10% or $120,000 for administration but doubts that they would use that entire amount because their objective is to get as much into the properties as possible. Quarterly updates will be made to council as to progress of this portion of the NSP project.

It was reported that there is 16 months left to allocate the other $3.4 million, and that a proposal was presented at the last finance/development meeting from Northeast Human Services/Prairie Harvest but Mr. Christensen thinks it is important that the council meet in another session to get information as to what type of projects would be available to use the other $3.4 million and would ask that be an item put on their agenda for the next finance/development committee meeting. One of the things discussed at the finance meeting was to use this money for a Brownstone II behind Kelly's Bar on city-owned land and build out that area of the Near Northside but don't want this to be the one project that becomes the project because council who sets policy should be given the menu of what to do with this money and would like to start that at the next finance meeting or when Mr. Hoover is ready to present information.

Mr. Hoover stated that he didn't know whether they would be ready for the next meeting, did have conversations on Friday with MetroPlains, developers of The Current, and talked about a number of possibilities and they are going to be working on those, coming back to us, and thinks there is a round of tax credit applications through the State, those applications are due the end of July and may have something on a fast track or potential developers may want to wait and develop that a little bit more and bringing a more complete project forward rather than just a concept and go for tax credits in 2010, that doesn't mean that we can't go out and entertain requests from other developers also. Mr. Christensen stated this is called economic stimulus and would rather take a project so that we could be proactive and get RFP's out for projects so that people can either start their construction in the fall of 2009 or spring of 2010, this money unallocated and projects haven't been identified.

Council Member McNamara reported present at 6:35 p.m.

Council Member Glassheim stated to look at a variety of possible projects that we can choose from, there was Northeast Human Services and Prairie Harvest and occupancy would be for employable emotionally disturbed. Mr. Hoover stated the project on the main floor would be Prairie Harvest offices and above that 17 to 24 single room occupancy (SRO) units for clients of Northeast Human Services and Prairie Harvest and not exclusive to them.

Mr. Glassheim stated that 25% of those funds have to be used for under 50% of median income and the Division of Community Services directed us to use the funds, implement plans and long term homelessness, not sure if that is an absolute requirement or preference and guidance but looking at possibilities as well, whether we can do two different projects or whether it needs to be one massive project with $3.4 million, but need to talk about that, so whether going to be building more middle class housing or people below that and will be one of the items that we need to be discussing.

Council Member Christensen stated placement of these projects is still an issue that the council should weigh in on because the placement of these projects are more in the core area of the downtown and have to be aware of how we are building out our downtown. If we were to do a development home type project and other areas where it could be located which aren't in that portion of the downtown is the land that is across from the water plant, vacant lots there on South 4th Street and has been bare ever since the pump station was constructed after the flood rehab. and would be an ideal spot if that is where the council decides to locate a development home type project in this area. Not against that project, was somewhat surprised that staff had proposed that project in the parking lot location - he would like all the data, know the data is and what the requirements are and what our options are before we focus on a project and get ourselves positioned as to that project.

2.20 Petition from Development Homes to vacate public utility and roadway easement within Lot 2, Block 1, Perkins Sixth Addn. for the purpose of construction of enhanced service apartments.____________________________________________
Brad Gengler, city planner, spoke to this item and to item 2.21 - part of the request is for vacation of portion of an easement and following item agenda is for a replat for some Development Homes property on Columbia Road. Development Homes is in the process of planning for a 6-unit structure to be located on the west side of the existing facility. The vacation came out of Planning and Zoning with a recommendation for approval and re. the plat, there was some minor points of contention have to be resolved, that on the easterly side of this plat there is 50 ft. of dedicated R/W from the centerline of Columbia Road, staff had proposed that we take an additional 20 ft. of R/W in conj. with this plat so that 20 ft. would be coming to the west, and someday would like to have a min. of 140 ft. of R/W on some of these larger corridors, hindsight has taught us that a very extensive lesson of having to come in after the fact and acquire property over the years for various street projects, etc. An individual from Development Homes is here to speak to the issue, that it came out of P & Z Commission as approval of the plat and preliminary approval of a Street and Highway ordinance, however, the Board of Dev. Homes has not been able to meet to discuss this additional R/W dedications off of Columbia.

Sandy Marshall, CEO of Development Homes, stated that she just learned today about this contingency as part of the approval for the replat and their next Board meeting is not until Tuesday, May 26 and thinks this is significant issue that would require the full Board to consider whether or not they would be in agreement with the easement requirements or if other alternatives to that.

Council Member Christensen stated that next meeting they will table this until they come back with your position; Ms. Marshall stated there is a time sensitivity to the issue and they have been awarded a grant to build this facility through HUD and the next step in that grant in order to get into ground by fall, would be to send in their application for firm commitments of those grant dollars which they hope to do by the end of May. Council Member Gershman suggested that they call a special Board meeting before next Monday, rather than wait. Ms. Marshall stated she would attempt to do that.

Al Grasser, city engineer, stated what they pointed out to the Planning and Zoning Commission is that the latest studies they have from the MPO indicate that South Columbia Road is going to end up being a four-lane multi-road section, they looked at the existing width on S. Columbia Road and are probably going to be in situations where they may end up having to pick up additional rights in order to install the proper facilities. On the west side of Columbia Road there is a major watermain, major storm sewer and a major power line, and as try to work the road and bikepaths, etc. in they will be tight on R/W, as much of the land on this part of Columbia Road is undeveloped and after discussions with the Land Use Committee they have identified we should be picking up more R/W on these major corridors in order to fit these roads and transportation systems in.
Staff looks at the request to vacate and if find that the request can be accommodated without undue problems to the city would be happy to recommend accommodating that but when recognize that there may be a shortfall it is incumbent upon them to point those out; however, everything they are asking for is contained within those existing easements already which do have some restrictions on the property, the additional R/W will give us additional opportunity to fit in things like bikepaths, etc. and that is basis of discussion from staff's side.

Howard Swanson, city attorney, stated discussion applies to item 2.21 which deals with fast track approval of a replat; that on item 2.20 by State law you must publish and hold a public hearing, and no reason to delay next Monday because would only be setting public hearing, doesn't know whether 2.20 has to be completed before Development Homes can submit an approval but final approval of the vacation of the utilities will be very close to any final approval of a traditional replat, whether you fast track or otherwise, may not be ultimately affecting their timeline.

2.21 Request from CPS, Ltd on behalf of Development Homes for final (fast track) approval of Replat of Lot 2, Blks. 1, Perkins Sixth Addn. (loc. at 3880 S. Columbia Road)________________________________________________________________
There were no additional comments.

2.22 Request from CPS, Ltd. on behalf of Duane and Darlene Anderson and U.S.Bank for final (fast track) approval of Replat of Lot 7, Blk. 2, Blair-Satrom-Baukol Addn. (loc. at 2202 and 2206 Fallcreek Ct.)_________________________________________
There were no comments.

2.23 Request from CPS, Ltd on behalf of SAJ, LLP for final (fast track) approval of Replat of Part of Blk. 3, Westward Acres Subdiv. (loc. in 2100 blk. of DeMers Ave.)
There were no comments.

2.24 Request from Milt Gowan, Gowan Construction, for approval of conditional use permit (CUP) for Lot A, Blk. 1, Vern's Addn. (loc. at 1601 N. 73rd St.) for purpose
of installing three underground fuel tanks.__________________________________
There were no comments.

2.25 Request from Webster, Foster, Weston on behalf of Muriel I. Saumur for preliminary approval of plat of Grand Forks Border Patrol Station Addn. (loc. at 1816 17th Street NE)____________________________________________________
Council Member Glassheim asked if this property is in a section that is controlled by township or by city. Mr. Gengler stated this is in the area that is qualified under the provisions of any plat or site plan that had been submitted to the city prior to May 1 and remains under City jurisdiction. Mr. Gengler stated this was submitted in April but they have been working with GSA on Border Patrol for many months; and has confirmation from GSA that this property will be privately owned and leased back to the Border Patrol which put in separate class and will pay their share of county and/or township taxes. The Planning staff has had some talks with he property owner across the street and his contact information was given to the developing team that is out of New York for them to get in contact with him for more of a one on one, and that was intentions and not sure if made contact.

2.26 Request from Webster, Foster, Weston on behalf of Muriel I. Saumur for preliminary approval of ordinance to amend zoning map to exclude from A-1 (Agricultural Preservation) Dist, and to include within Grand Forks Border Patrol Station Planned Unit Development (PUD), Concept Development Plan, all of Grand ­
Forks Border Patrol Station Addn. (loc. at 1816 17th Street NE)._________________
There were no comments.

SUSPEND AGENDA

It was moved by Council Member Kreun and seconded by Council Member Christensen to table Item 2.27 to the conclusion of the special council meeting and recess the committee of the whole meeting until after the special council meeting. Carried 6 votes affirmative.

2.27 Matter of Negotiation for Acquisition of Property (City Council may convene in executive session pursuant to North Dakota Century Code Section 44-04-19.1 and 44-04-19.2 for discussion on negotiation strategies and instructions regarding potential acquisition of property)

RECONVENE COMMITTEE OF THE WHOLE MEETING AND
ADJOURN INTO EXECUTIVE SESSION

Mayor Brown called the committee of the whole meeting back to order.

It was moved by Council Member Gershman and seconded by Council Member Glassheim to adjourn into executive session at 7:03 p.m. Carried 6 votes affirmative.

RECONVENE INTO REGULAR SESSION AND ADJOURN

The committee of the whole reconvened in regular session at 7:43 p.m. with all members present except for Council Member Gershman who left during the executive session.

It was moved by Council Member Bjerke and seconded by Council Member Kreun to adjourn. Carried 5 votes affirmative.

Respectfully submitted,



Saroj Jerath
City Auditor