Council Minutes
PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF GRAND FORKS, NORTH DAKOTA
February 24, 2000
The city council of the city of Grand Forks, North Dakota met in special session of the city council and joint meeting with the Growth Fund Authority (JDA) in the council chambers in City Hall on Thursday, February 24, 2000 at the hour of 7:00 o’clock p.m. with Mayor Owens presiding for the city council and Chairman Carpenter presiding for the Growth Fund Authority (JDA).
Present at roll call for the Growth Fund Authority (JDA) were Council Members Brooks, Lucke, Bouley, Glassheim, Carpenter, Lunak, Klave, Beyer, Babinchak, Hafner, Martinson, and Mayor Owens - 13; absent: Council Members Polovitz, Hamerlik - 2.
Present at roll call for the city council were Council Members Brooks, Lucke, Bouley, Glassheim, Carpenter, Lunak, Klave, Beyer, Babinchak, Hafner, Martinson - 12; absent Council Members Polovitz, Hamerlik - 2.
CONSIDER MATTER OF COST MATRIX/FINAL
ALLOCATION OF CDBG FUNDS
Mayor Owens reported that the matter of the cost matrix/final allocation of CDBG funds was a city council item.
Joel Scheving, Urban Development, reported that information had been prepared for the Wednesday morning Urban Development Committee meeting and that they reviewed every project on the cost matrix except for the non-southend infrastructure projects, that they covered all the rehab, acquisition, all projects done except for the non-southend infrastructure projects, and what council has before them tonight covers the rest of the infrastructure projects; that staff from finance and urban development and engineering reviewed the contracts for the projects and went through the FEMA allocations with regards to the sewer restoration and came with document that was presented to the council.
Al Grasser, Asst. City Engineer, reported that they have been working with Urban Development but that the last supplement that came out was different than what they had expected and that they cannot verify if these are the right numbers for each project, that they did it on a contractual type basis rather than what engineering was looking at, that these are different and that they hadn’t seen them before.
Mr. Hanson suggested that they could pass the last addendum as contingent upon further review by engineering, and that all of the changes on the last addendum were within infrastructure projects and if there are some deviations they probably can be changed from one sewer project to another sewer project on the cost matrix, that they were trying to bring the cost matrix close to final numbers and using the most current numbers that were being provided to them, and that these are the best and latest estimate of what they feel will be the result of the DSR’s and FEMA projects. Mr. Hanson reported that the purpose of the meeting tonight is to finalize the obligation of the funds; all the funds have to be under contract by the end of work tomorrow; that this is the council’s and City’s worksheet that indicates where those funds are obligated and trying to reflect what’s in the contracts, the contracts are already signed and we can make the change on the cost matrix, that doesn’t affect the obligation, the obligation is already there in the signed contract, and this is trying to reflect to the council where those obligations have been made, and this doesn’t affect the obligation. Mr. Hanson stated that we can change this document but only according to the contracts, cannot change any existing contracts as of tomorrow but can still make changes to this document.
Mr. Hanson reported that because of the reporting system that we have to HUD, the changes that we would make to this document from here would be if we moved it from one sewer restoration to another sewer restoration project, that at the end of March this year we will report to HUD the final obligations by category but that category will consist of a number of projects within it and within the category we can make changes on the cost matrix.
Council Member Bakken asked whether the City would be able to complete all these projects under the deadlines. Mr. Grasser stated that one of the things they did conceptually, separating the last document, that the concept they had before the last change, had money obligated to several CDBG projects, including watermain projects were bid CDBG eligible and allocated somewhere between 50-75% of the total project cost to those watermain projects, and what that does is supplements what would have been local dollars with CDBG, and reason didn’t fund them to 100% is in the off-case that the work didn’t get done, we would have spent the CDBG money upfront and the local money at the end, and then not at risk. He stated he sees one project that is now being funded 100% CDBG, the downtown central business water tower. He stated he is not aware of the philosophy that went behind some of the changes and can’t really speak to the specifics of it, but the concept they had was very comfortable that they could get it spent, thinks they still can particularly if there is some ability to make some adjustments later.
Committee No. 4, Urban Development, reported having considered the matter of cost matrix budget transfers and recommended approval of budget transfers as on the original sheet. It was moved by Council Member Beyer and seconded by Council Member Glassheim that this recommendation be and is hereby approved.
The city auditor stated that in order to approve the additional items for this evening there would have to be an amendment on the floor. It was moved by Council Member Beyer and seconded by Council Member Glassheim to include the additional items of $2,801,717. Carried 12 votes affirmative.
Upon call for the question on the motion as amended, and upon roll call the following voted “aye”: Council Members Brooks, Lucke, Bouley, Glassheim, Carpenter, Lunak, Klave, Beyer, Babinchak, Hafner, Martinson - 12; voting “nay”: none. Mayor Owens declared the motion carried.
AUTHORIZE RESOLUTION CONCURRING WITH SENATE
BILL 2188 AND AUTHORIZE SIGNING OF CONTRACT WITH
STATE WATER COMMISSION
Chairman Carpenter reported they need to consider to waive the notice requirements for the JDA meeting. It was moved by Council Member Beyer and seconded by Council Member Babinchak to waive the notice requirements for the Growth Fund Authority (JDA) meeting this evening. Carried 13 votes affirmative.
Chairman Carpenter presented the matter relating to the State issuing bonds to provide the State’s share of money for our flood protection project, and that the city attorney had previously sent council members a memo regarding this matter.
It was moved by Council Member Babinchak and seconded by Council Member Bakken to authorize the pledge of revenues from the Corporate Center, subject to all Federal requirements, the pledge is to the State Water Commission in accordance with 1999 Senate Bill 2188; and to authorize proper officials to provide certification of all requirements under 1999 Senate Bill 2188 and execute such agreements, certifications, and other documents necessary to effectuate and comply with City requirements under the listed State legislation.
John O’Leary, Urban Development, reported that the pledge of the bonds doesn’t go into effect until after the debt is retired, the debt is an 18 year debt, and at that point whatever program income again subject to Federal regulations, there is HUD money in that project and also EDA money, both of those revenue sources have specific regulations about allowing a lien to be put on the building now or later and how the proceeds of those buildings are going to be used. He stated that in CDBG requirements, 70% of the proceeds have to be used to benefit low and moderate income people and in EDA requirements, the program income has to be used to promote economic development efforts, and the question is whether or not EDA is going to allow us to do that. He stated that liens are for the useful life of the facility, and that they are still under discussions with EDA on what the useful life is. It was noted that if the Federal agencies permitted it, it could take all rental income in years 20 through 40.
Upon call for the question and upon roll call vote, the following voted “aye”: Council Members Brooks, Lucke, Bouley, Glassheim, Carpenter, Lunak, Klave, Beyer, Babinchak, Bakken, Hafner, Martinson, Owens - 13; voting “nay”: none. Chairman Carpenter declared the motion carried.
Mayor Owens presented the matter of consideration by the city council .
The city auditor presented the matter of resolution concurring with Senate Bill 2188 and authorization to sign contract with the State Water Commission..
It was moved by Council Member Babinchak and seconded by Council Member Bouley to authorize entering into an agreement with the State of North Dakota for receipt of funds for the acquisition, design and construction for flood control and reduction project; to authorize the pledge of revenues from the Corporate Center, subject to all Federal requirements, the pledge is to the State Water Commission in accordance with 1999 Senate Bill 2188; and to authorize proper officials to provide certification of all requirements under 1999 Senate Bill 2188 and execute such agreements, certifications, and other documents necessary to effectuate and comply with the city requirements under the listed State legislation. Upon roll call the following voted “aye”: Council Members Brooks, Lucke, Bouley, Glassheim, Carpenter, Lunak, Klave, Beyer, Babinchak, Bakken, Hafner, Martinson - 12; voting “nay”: none. Mayor Owens declared the motion carried.
CANVASS RESULTS OF THE SPECIAL CITY ELECTION
HELD ON FEBRUARY 22, 2000
Mayor Owens appointed the members of the city council as the canvassing board to canvass the results of the votes cast in the special city election held on Tuesday, February 22, 2000.
The city auditor reported that his office had received returns from the precincts of the various wards of the city on the results of the special city election held on Tuesday, February 22, 2000, and presented certificates of the canvass of ballots from the election boards of the several precincts of the city with instructions to confirm the numbers on those sheets with the vote tabulation summary. He reported that there were absentee ballots that were received and needed to be counted and instructed council members on the count of the ballots; and that when they have completed the verification to sign and date the canvass certificates they have reviewed.
The canvassing board submitted the following report: Document No. 7930- Report.
It was moved by Council Member Lucke and seconded by council Member Babinchak that the canvass of the ballots of the several precincts of the wards of the city be and are hereby verified and adopted as the officials canvass of the votes cast in the special city election. Carried 12 votes affirmative.
ADJOURN
It was moved by Council Member Lunak and seconded by Council Member Hafner that we do now adjourn as both the Growth Fund Authority (JDA) and as the city council. Carried 13 and 12 votes affirmative.
Respectfully submitted,
John M. Schmisek
City Auditor
Approved:
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Patricia A. Owens, Mayor