Council Minutes
17441
February 5, 2001
PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF GRAND FORKS, NORTH DAKOTA
February 5, 2001
The city council of the city of Grand Forks, North Dakota met in its regular session in the council chambers in City Hall on Monday, February 5, 2001 at the hour of 7:00 o’clock p.m. with Mayor Brown presiding. Present at roll call were Council Members Brooks, Bjerke, Stevens, Hamerlik, Glassheim (teleconference system), Gershman, Lunak, Christensen, Klave, Kreun, Martinson - 11; absent: Council Member Bakken - 1; 1 seat vacant.
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 also noted that we are being televised.
Mayor Brown announced that there was a devastating earthquake in India on January 26, 2001, which measured 7.9 on the Richter Scale, and that the quake has caused thousands of deaths, reports have confirmed over 14,000 deaths, and that as mayor of Grand Forks wanted to appeal to the community to assist the people of India, that the assistance that we received after the flood of 1997 came from all over the world and feels that this is a great opportunity for us to help another community facing a very tragic disaster. Please help make a difference in the lives of people hurting from this disaster, the size of your gift does not matter, what matters is our commitment to helping when help can’t wait; your assistance can be sent directly to the American Red Cross, 1708 River Road Northwest, East Grand Forks, MN
Mayor Brown recognized along with Valley Contracting and CPS, Ltd. were recently given the excellence in concrete 2000 award for the English Coulee bikepath repair project, this project consisted of removing an old asphalt bikepath along the English Coulee and replacing it with concrete. The North Dakota Ready Mix and Concrete Products Association presents this award each year based on project visibility, innovative use of concrete and how well the project shows the utility of concrete; the City recognizes this award and would like to thank Valley Contracting, CPS, Ltd. and the City of Grand Forks staff for their efforts in this project.
Mayor Brown also recognized and welcomed the Boy Scout Troop tonight that is in the audience.
FLOOD REPORT
Al Grasser, acting city engineer, reviewed some of the highlights of the monthly flood protection update: Corps of Engineers: He stated that the Corps of Engineers on the first reach of the levees, Phase I, that a final technical review was submitted and reviewed by the City staff and that project is expected to be advertised and awarded this spring; that Pioneer Construction continues to stockpile and place rock at the Riverside Dam and installing sheet piling; that the English Coulee Diversion Channel is under design and award is scheduled for May of 2001 and is contingent upon final right of way acquisition. The English Coulee pumping station is under design and design review meeting will be held on February 7, construction on this should begin this summer. The Corps has awarded the pump supply contract for both cities to Quality Flow of New Prague, MN, for $1,950,000 including base bid items and options.
City Staff/Consultant updates: He stated that we still have Lift Stations No. 1 and No. 5 under construction, relocation of two sewer forcemains and a watermain for the English Coulee Diversion in preparation of the English Coulee work.
State Appropriations Process: The City staff has testified before the House Environmental and Education Appropriations Sub-committee on January 25 and that is in support of the State bonding and funding for the project, and that will take us out to 2003.
Acquisitions: He stated that re. the Almonte Nursing Home, the court hearing is scheduled for February 13 for the taking of that particular property, staff is also working with the Corps of Engineers to finalize the last two partial takes that are required for Phase I of the levees.
Mr. Grasser noted that on other phases of the project they are planning on initiating property acquisition on Phase II, that will start this spring and trying to avoid having the property acquisition being the limiting factor on our time schedule. He stated that Historical Properties on the council agenda are an agreement to mitigate the 14 historical properties which have been or will be purchased and is expected that this agreement will allow for the timely disposition of these properties. He stated that on the interim flood protection plan, Xcel Energy is completing their work downtown and should finish it this month and will be back in the spring for final cleanup. He stated that the southend update have received the draft of the Barr Phase II Study for the southend alignment alternatives and that is being reviewed by staff and will come back at a later date with the final study. He also stated that the communications survey has been sent out on the Olson-Elmwood area residents to confirm their views expressed at the neighborhood meeting that was held January 9, 2001. He also noted there were several upcoming meetings, that the Greenway public meeting will be held March 13 at 7:00 p.m. at the Phoenix Elementary School and that the Greenway Alliance will be held March 28 at 1:00 p.m. in the council chambers.
Council Member Lunak questioned if the river floods to 44 ft. if we were ready for that. Mr. Grasser stated that they were doing their normal preparations which they do each spring, and will be working with that and taking updated records and statistics and planning and taking the steps.
Council Member Martinson questioned that now that the Barr Study is done, will the City and staff be working with the County Commissioners to come to some type of resolution on what is going to happen in the Burke Addition. Mr. Grasser stated that the document we have now is a draft, that they are reviewing it and are making some technical comments, may go back and ask them to add in a little bit more analysis as the draft doesn’t take into account the elevation change that the new Corps model has done, and get that incorporated so when have discussions with council and neighborhood groups and County Commission have accurate numbers in evaluating the alternatives. Mr. Grasser stated that will probably be set back and include in Phase III. Council Member Christensen asked when they would begin the construction of the dike as it currently is situated without the Barr report, going down County Road No. 8; Mr. Grasser stated that would be scheduled in the 2003 to 2004 timeframe. Information.
ADOPT ORDINANCE NO. 3878, ANNEXING LOTS 1,
2, 3 AND 4, BLOCK 1, PERKINS 6TH RESUBDIVISION,
A PORTION OF LOT 1, BLOCK 1, SOUTHERN ESTATES
2ND ADDITION, AND UNPLATTED PROPERTY IN E ½
SE ¼ OF SECTION 20-151-50 TO THE CITY OF GRAND
FORKS, LESS PROPERTY PREVIOUSLY ANNEXED
An ordinance entitled “An ordinance to annex to the city of Grand forks, North Dakota, Lots 1, 2, 3 and 4, Block 1, Perkins 6th Resubdivision, a portion of Lot 1, Block 1, Southern Estates 2nd Addition to the city of Grand Forks, North Dakota, and unplatted property in the E ½ SE ¼ of Section 20-151-50 to the city of Grand Forks, North Dakota, less property previous annexed”, which had been introduced and passed on its first reading on January 16, 2001, and upon which public hearing was scheduled for this evening, was presented and read for consideration on second reading and final passage.
The city auditor exhibited affidavit of public notice that this petition for annexation had been filed with the city council and had been published as required.
Mayor Brown called up on the audience to see if there was anyone present who had comments to make on this matter. There were none.
Upon call for the question of adoption of this ordinance and upon roll call the following voted “aye”: Council Members Brooks, Bjerke, Stevens, Hamerlik, Glassheim, Gershman, Lunak, Christensen, Klave, Kreun, Martinson - 11; voting “nay”: none. Mayor Brown declared the ordinance adopted.
REFER EVENTS CENTER CORE COMMITTEE SUNSET
DATE BACK TO COMMITTEE
Council Member Hamerlik asked that the item relating to the Events Center Core Committee sunset date be sent back to committee for further discussion; Council Member Klave agreed; and the matter was returned to committee for further consideration.
COUNCIL MEMBER BURKE REPORTED PRESENT
APPROVE PLANS AND SPECIFICATIONS FOR PROJECT
NO. 5200, 2001 FLOOD PREPARATION
Committee No. 3, Public Service, reported having considered the matter of plans and specifications for Project No. 5200, 2001 Flood Preparation, and recommended to approve plans and specifications for Project No. 5200.
It was moved by Council Member Klave and seconded by Council Member Stevens that this recommendation be and is hereby approved. Carried 12 votes affirmative.
APPROVE PLANS AND SPECIFICATIONS FOR PROJECT
NO. 5196, 2001 CITY SIDEWALKS
Committee No. 3, Public Service, reported having considered the plans and specifications for Project No. 5196, 2001 City Sidewalks, and recommended to approve plans and specifications for Project No. 5196.
It was moved by Council Member Stevens and seconded by Council Member Klave that this recommendation be and is hereby approved. Carried 12 votes affirmative.
APPROVE AMENDMENT NO. 2 TO ENGINEERING
SERVICES AGREEMENT FOR PROJECT NO. 5064, PHASE
III LANDFILL CLOSURE
Committee No. 3, Public Service, reported having considered Amendment No. 2 to engineering services agreement with Webster Foster & Weston for Project No. 5064, Phase III Landfill Closure (including proposed 2001 rate schedule), and recommended approval of Amendment No.2.
It was moved by Council Member Klave and seconded by Council Member Stevens that this recommendation be and is hereby approved. Upon roll call the following voted “aye”: Council Members Brooks, Bjerke, Stevens, Hamerlik, Burke, Glassheim, Gershman, Lunak, Christensen, Klave, Kreun, Martinson - 12; voting “nay”: none. Mayor Brown declared the motion carried.
APPROVE AMENDMENT NO. 2 TO ENGINEERING
SERVICES AGREEMENT FOR PROJECT NO. 5142,
LAGOON OUTFALL RESTORATION
Committee No. 3, reported having considered Amendment No. 2 to engineering services agreement with Webster, Foster & Weston for Project No. 5142, Lagoon Outfall Restoration (to include proposed 2001 rate schedule), and recommended approval of Amendment No. 2.
It was moved by Council Member Klave and seconded by Council Member Stevens that this recommendation be and is hereby approved. Upon roll call the following voted “aye”: Council Members Brooks, Bjerke, Stevens, Hamerlik, Burke, Glassheim, Gershman, Lunak, Christensen, Klave, Kreun, Martinson - 12; voting “nay”: none. Mayor Brown declared the motion carried.
AUTHORIZE ENTERING INTO AGREEMENT WITH WEBSTER,
FOSTER & WESTON FOR ENGINEERING SERVICES FOR
PROJECT NO. 5230, 2001 TELEMETRY UPGRADE
Committee No. 3, Public Service, reported having considered the engineering service agreement on Project No. 5230, 2001 Telemetry Upgrade, and recommended approval of entering into agreement with Webster, Foster & Weston for engineering services on Project No. 5230 (agreement on an hourly, not to exceed contract of $73,140.00).
It was moved by Council Member Klave and seconded by Council Member Stevens that this recommendation be and is hereby approved. Upon roll call the following voted “aye”: Council Members Brooks, Bjerke, Stevens, Hamerlik, Burke, Glassheim, Gershman, Lunak, Christensen, Klave, Kreun, Martinson - 12; voting “nay”: none. Mayor Brown declared the motion carried.
AUTHORIZE ENTERING INTO TWO-WAY AGREEMENT
FOR PROJECT NO. 5234, SANITARY SEWER
Committee No. 3, Public Service, reported having considered the request to enter into two-way agreements with P.D. Sproule and the Park District for Project No. 5234, Sanitary Sewer at 2375 Bacon Road, and recommended to authorize staff to enter into the two-way agreements for Project No. 5234.
It was moved by Council Member Klave and seconded by Council Member Stevens that this recommendation be and is hereby approved. Upon roll call the following voted “aye”: Council Members Brooks, Bjerke, Stevens, Hamerlik, Burke, Glassheim, Gershman, Lunak, Christensen, Klave, Kreun, Martinson - 12; voting “nay”: none. Mayor Brown declared the motion carried.
APPROVE AMENDMENT NO. 12 TO ENGINEERING
SERVICES AGREEMENT FOR IN-KIND SERVICES
Committee No. 3, Public Service, reported having considered the matter of Greater Forks Engineering Group (GFEG) in-kind services engineering agreement Amendment No. 12, and recommended to approve Amendment No. 12 to the GFEG agreement in the amount of $25,855.98.
It was moved by Council Member Klave and seconded by Council Member Stevens that this recommendation be and is hereby approved. Upon roll call the following voted “aye”: Council Members Brooks, Bjerke, Stevens, Hamerlik, Burke, Glassheim, Gershman, Lunak, Christensen, Klave, Kreun, Martinson - 12; voting “nay”: none. Mayor Brown declared the motion carried.
DIRECT THAT ALLEY WEST OF 1130 HAMMERLING
AVENUE REMAIN OPEN
Committee No. 2, Public Safety, reported having considered the request to have the alley closed west of 1130 Hammerling Avenue, and recommended that the alley to stay open for access to waterlines.
It was moved by Council Member Martinson and seconded by Council Member Klave that this recommendation be and is hereby approved. Carried 12 votes affirmative.
APPROVE BUDGET AMENDEMENTS
Committee No. 2, Public Safety, reported having considered the budget amendment for Maternal and Child Health Grant in the amount of $500, and recommended to approve the budget amendment of $500 to the Maternal and Child Health Grant to support department strategic planning activities (new 2001 revenue).
It was moved by Council Member Martinson and seconded by Council Member Klave that this recommendation be and is hereby approved. Carried 12 votes affirmative.
Committee No. 2, Public Safety, reported having considered the budget amendment for Health Department ($1,308), and recommended to approve budget amendment of $1,308 to support the health department office equipment needs (new 2001 revenue).
It was moved by Council Member Martinson and seconded by Council Member Klave that this recommendation be and is hereby approved. Carried 12 votes affirmative.
Committee No. 2, Public Safety, reported having considered the budget amendment for Health Department ($300), and recommended approval of the budget amendment of $300 to support the health department strategic planning activities.
It was moved by Council Member Martinson and seconded by Council Member Klave that this recommendation be and is hereby approved. Carried 12 votes affirmative.
APPROVAL OF PLEDGED COLLATERAL REPORT
Committee No. 1, Finance, reported having considered the approval of pledged collateral report, and recommended approval of the pledged security report.
It was moved by Council Member Bjerke and seconded by Council Member Hamerlik that this recommendation be and is hereby approved. Carried 12 votes affirmative.
AWARD CONTRACT TO GRAND FORKS TAXI TO
PROVIDE NIGHT DIAL-A-RIDE SERVICE
The Public Transportation Committee reported having considered the award of contract to Grand Forks Taxi to provide Night Dial-a-Ride service, and recommended to approve bid selection of Grand Forks Taxi (at $14.00 per hour).
It was moved by Council Member Martinson and seconded by Council Member Hamerlik that this recommendation be and is hereby approved. Upon roll call the following voted “aye”: Council Members Brooks, Bjerke, Stevens, Hamerlik, Burke, Glassheim, Gershman, Lunak, Christensen, Klave, Kreun, Martinson - 12; voting “nay”: none. Mayor Brown declared the motion carried.
ACCEPT BID FOR LONG DISTANCE SERVICE
Committee No. 1, Finance, reported having considered the bid for long distance service, and recommended to approve acceptance of the McLeod bid (with a 60-month agreement with current savings of approx. $700/month).
It was moved by Council Member Gershman and seconded by Council Member Bjerke that this recommendation be and is hereby approved. Upon roll call the following voted “aye”: Council Members Brooks, Bjerke, Stevens, Hamerlik, Burke, Glassheim, Gershman, Lunak, Christensen, Klave, Kreun, Martinson - 12; voting “nay”: none. Mayor Brown declared the motion carried.
AUTHORIZE ENTERING INTO NEGOTIATION WITH
FIRMS FOR ENVIRONMENTAL IMPACT STATEMENT
TO BRING CONTRACT BACK TO COUNCIL IN MARCH, 2001
Committee No. 3, Public Service, reported having considered the matter of environmental impact statement (EIS) at Turtle River Township landfill site, and recommended to authorize Jay Fiedler, representing the City of Grand Forks, Howard Swanson, city attorney’s office, Charles Grotte, engineering department, and Todd Feland, public works department, to review, evaluate and rank the engineering firms and enter into negotiations with firms in order to bring back a contract to the city council in March of 2001.
It was moved by Council Member Klave and seconded by Council Member Stevens that this recommendation be and is hereby approved. Carried 12 votes affirmative.
APPROVE CHANGE OF TRUSTEE FOR CITY OF GRAND
FORKS SENIOR HOUSING REVENUE BONDS (4000 VALLEY
SQUARE PROJECT) SERIES 1997
Committee No. 1, Finance, reported having considered the change of trustee for $25,000,000 City of Grand Forks, North Dakota, Senior Housing Revenue Bonds (4000 Valley Square Project) Series 1997, and recommended approval of the request to remove First Trust National Association as trustee, now known as US Bank, and substitute Wells Fargo as successor trustee.
It was moved by Council Member Gershman and seconded by Council Member Bjerke that this recommendation be and is hereby approved. Upon roll call the following voted “aye”: Council Members Brooks, Bjerke, Stevens, Hamerlik, Burke, Glassheim, Gershman, Lunak, Christensen, Klave, Kreun, Martinson - 12; voting “nay”: none. Mayor Brown declared the motion carried.
APPROVE 2001 RATES FOR ALL EXISTING AGREEMENTS
WITH GREATER FORKS ENGINEERING GROUP
Committee No. 3, Public Service, reported having considered the matter of Grand Forks Engineering Group (GFEG) 2001 rates for basic services, and recommended to approve 2001 rates to be applied to all existing agreements.
It was moved by Council Member Klave and seconded by Council Member Stevens that this recommendation be and is hereby approved. Upon roll call the following voted “aye”: Council Members Brooks, Bjerke, Stevens, Hamerlik, Burke, Glassheim, Gershman, Lunak, Christensen, Klave, Kreun, Martinson - 12; voting “nay”: none. Mayor Brown declared the motion carried.
APPROVE AMENDMENT NO. 14 TO ENGINEERING
SERVICES AGREEMENT, PROJECT NO.4719
Committee No. 3, Public Service, reported having considered the matter of Amendment No. 14 to engineering services agreement with Webster, Foster & Weston for Project No. 4719, Sewer Restoration, and recommended approval of Amendment No. 14 with Webster, Foster & Weston for Project No. 4719, Sewer Restoration (allowing Webster, Foster & Weston to charge for remaining project work to be performed using 2001 rate schedule).
It was moved by Council Member Stevens and seconded by council Member Klave that this recommendation be and is hereby approved.
Council Member Brooks questioned the number of amendments to the engineering services agreement; Mr. Grasser stated that the details they are covering, that it is all the sewer restoration areas, these were broken up into different areas and different scopes under different points in time, and yet all similar types of work and rather than re-write the agreement that would almost be verbatim from the previous ones, they were changed by amendment and this amendment primarily regards changing their hourly rate to bring in their 2001 rate schedule. He stated this could have been one project but because of the complexities in trying to allocate dollars to FEMA, to CDBG and some local, it was better from an accounting standpoint to take what could have been one project and break it up into a number of small projects because they could more precisely track the dollars in each area and maximize the federal participation.
Upon roll call the following voted “aye”: Council Members Brooks, Bjerke, Stevens, Hamerlik, Burke, Glassheim, Gershman, Lunak, Christensen, Klave, Kreun, Martinson - 12; voting “nay”: none. Mayor Brown declared the motion carried.
TABLE MATTER OF AMENDMENT NO. 1, PROJECT NO.
5140, UPGRADING LIFT STATION 24; AND MATTER OF
ENTERING INTO AGREEMENT FOR UPGRADING LIFT
STATIONS 19 AND 25, PROJECT NO. 5229
Committee No. 3, Public Service, reported having considered Amendment No. 1 to engineering services agreement with WFW for Project No. 5140, Upgrade Lift Station 24, and recommended approval of Amendment No. 1 with Webster, Foster & Weston.
Committee No. 3, Public Service, reported having considered engineering service agreement for Project No. 5229, Upgrade Lift Stations 19 and 25, and recommended to approve entering into agreement with Webster, Foster & Weston for engineering services on Project No. 5229.
It was moved by Council Member Klave and seconded by Council Member Stevens that these recommendations be and are hereby approved.
Council Member Burke stated that during their budget study group one of the subjects that came up was whether or not they needed to rehab two lift stations every year, that both of these items deal with lift stations to be rehabbed as the City has done on a regular basis and asked for explanation of whether these are part of the regular rehab program or whether they want to hold until they decide whether they want to continue to do that. Mr. Grasser stated that both of these items are both upgrades to lift stations that are in the budget (either last year’s or this year’s).
After further discussion it was moved by Council Member Burke and seconded by Council Member Christensen to table these two items be tabled and discussed at the next committee of the whole meeting.
Council Member Kreun suggested that they not postpone this at this particular time, disagreeing on the timeframe because it is very important that these are analyzed prior to that because it is very serious situation if one of these goes down, because if it does go down and is not properly handled have basements full of sewage, to analyze first and then make decision to extend any of this work.
It was noted that point of information - a motion to table is not debatable.
Upon call for the question and upon voice vote, the motion carried.
APPROVE CHANGE ORDER FOR PROJECT NO. 4784
SOUTHEND WATER TOWER
Committee No. 3, Public Service, reported having considered Change Order No. 1 for the general construction contract, Project No. 4784, Southend Water Tower Project, and recommended to approve Change Order No. 1 for the general construction contract in the amount of $18,047.59, Project No. 4784, Southend Water Tower.
It was moved by Council Member Klave and seconded by Council Member Stevens that this recommendation be and is hereby approved.
Council Member Gershman questioned a portion of the change order covering work that was not done properly, if there was a performance bond and whether the City should even negotiate with the original contractor for payment of that work. It was noted that the additional costs incurred since the existing tee which the contractor connected to was not properly thrust blocked by the previous contractor that placed the tee); and that Mr. Grasser and the consulting engineer, Charlie Vein, Advanced Engineering, would research this matter, and take the proper action.
Council Member Christensen moved an amendment to the motion to approve the change order, that staff begin process along with the city attorney to recoup the amount of $5,517.25 (additional costs), and when negotiations are complete a report be made back to the council. Council Member Gershman seconded the amendment. Upon call for the question on the amendment, and upon voice vote the motion carried.
Upon call for the motion, as amended, and upon roll call the following voted “aye”: Council Member Bjerke, Stevens, Hamerlik, Burke, Glassheim, Gershman, Lunak, Christensen, Klave, Kreun, Martinson - 11; voting “nay”: Council Member Brooks - 1. Mayor Brown declared the motion carried.
APPROVE REQUEST FROM NDDOT FOR REIMBRUSE-
MENT TO MPO FOR CONCEPT REPORT AT 32ND
AVENUE SOUTH AND COLUMBIA ROAD
Committee No. 3, Public Service, reported having considered the matter of request from North Dakota Department of Transportation for reimbursement to MPO for concept report at 32nd Avenue South and Columbia Road, and recommended that the City pay the MPO the amount of $10,886.96 for the North Dakota Department of Transportation in return for credit in the amount of $12,000 in the city urban fund account.
It was moved by Council Member Klave and seconded by Council Member Stevens that this recommendation be and is hereby approved.
Council Member Brooks asked if they were going to be looking at that intersection with some additional lanes, etc. Mr. Grasser reported that this was some of the early work that was done and as they went through the traffic analysis, etc. it was determined that at some place they crossed a line where this started to get into the scope of an actual report, and at that point in time they terminated that work, and the State asked the City to pay for the work that was done.
Upon call for the question and upon roll call vote, the following voted “aye”: Council Members Brooks, Bjerke, Stevens, Hamerlik, Burke, Glassheim, Gershman, Lunak, Christensen, Klave, Kreun, Martinson - 12; voting “nay”: none. Mayor Brown declared the motion carried.
DESIGNATE THE EVENT CENTER COMMISSION TO
BE LEAD GROUP FOR THE ALERUS HOTEL NEGOTIATIONS
The Events Center Core Committee reported having considered the designation of lead group for Alerus hotel negotiations, and recommended to designate the Events Center Commission to be the lead group for the Alerus hotel negotiations and report to the mayor and city council.
It was moved by Council Member Klave and seconded by Council Member Hamerlik that this recommendation be and is hereby approved.
Council Member Glassheim questioned whether the city council would have final approval on the hotel or will the new team be making final decisions. Council Member Hamerlik stated that this was a separation who is to move forward and be responsible for those negotiations, the Core the Events Center Commission, it specifically states in the agreement that the Commission will report back to the council with their findings and the council will be involved. He stated that no timetable has been set, that they are waiting for the study which will be another 2 to 4 weeks and then will have a better handle on the timetable.
Council Member Brooks asked if plans for recommendation for hotel do come back, if it would include some financial information. Council Member Hamerlik stated that is one of the reasons why the study is being completed and that would be a part of any negotiations and cannot be answered definitely at this time. Council Member Christensen stated they may be premature until they get the study before paying additional funds (item on tonight’s agenda) or suggest that a certain group has ultimate negotiating authority. Council Member Hamerlik stated that the Commission is going to put forth a plan and that is what requesting to see who is going to put forth a plan to come.
Upon call for the question and upon voice vote, the motion carried 12 votes affirmative.
APPROVE CHANGE ORDER NO. 5, PROJECT NOS.
4814 AND 4816, 2000 FORCEWMAIN AND WATERMAIN
Committee No. 3, Public Service, reported having considered Change Order No. 5, 2000 Forcemain and Watermain, city Project Nos. 4814 and 4816, and recommended to approve Change Order No. 5 for Project Nos. 4814 and 4816, 2000 Forcemain and Watermain Relocations with Industrial Contract Services in the amount of $47,250.00.
It was moved by Council Member Stevens and seconded by Council Member Klave that this recommendation be and is hereby approved.
It was noted that this change order is on the main forcemain that runs from the northend of town and shutting down these lines and draining them, etc. and if not done at this time, would be more expensive to hire someone else to do it later.
Upon roll call the following voted “aye”: Council Members Brooks, Bjerke, Stevens, Hamerlik, Burke, Glassheim, Gershman, Lunak, Christensen, Klave, Kreun, Martinson - 12; voting “nay”: none. Mayor Brown declared the motion carried.
AUTHORIZE PURCHASE OF POLICE VEHICLES
Committee No. 2, Public Safety, reported having considered the matter of police vehicle purchases, and recommended approval of purchase (3 Crown Victorias from Hansen Ford @$22,143.80, totaling $66,431.40; 2 Chevy Impalas from Rydell Chevrolet @$18,995.00, totaling $37,990.00; and 2 Ford Expeditions from Hanson Ford @$27,386.00, totaling $54,772.00, for a grand total of $159,193.40).
It was moved by Council Member Martinson and seconded by Council Member Klave that this recommendation be and is hereby approved.
Council Member Gershman asked if the department had done an analysis of leasing of vehicles rather than purchasing. Chief Packett reported that they had, that they do lease two Explorers that they have in the fleet and that the total cost to the City would be about $1,000 more per vehicle by leasing them rather than purchasing outright, the cash flow at the time made sense for them to lease those two vehicles but at the current time due to the size of the fleet and number of vehicles they have, found that it wasn’t conducive right now to lease any more.
Chief Packett reported they currently have 51 vehicles, 23 marked, 28 unmarked, and of that try to replace one-third of the fleet each year, and under this recommendation they would go from 5 to 6 4-wheel drive vehicles within the fleet. Council Member Burke noted they are purchasing 3 Ford Crown Victorias and 2 Chevrolet Impalas which are similar sized cars. Chief Packett stated that the Impalas are downsized, not quite as heavy duty package, felt it would be conducive now to move slowly to see how a couple test vehicles would work out for a year and if worked out, then could downsize some of our fleet next year. He also reported that they reviewed State bid and also put out local RFP’s, compared the two and with negotiations with local dealers who allowed trade-in of $26,000 which the State bid did not allow and were able to cut some costs off the State bid cost.
Upon call for the question and upon roll call the following voted “aye”: Council Members Brooks, Bjerke, Stevens, Hamerlik, Burke, Glassheim, Gershman, Lunak, Christensen, Klave, Kreun, Martinson - 12; voting “nay”: none. Mayor Brown declared the motion carried.
APPROVE LIQUOR LICENSE FOR BRANIGAN’S, 3451
32ND AVENUE SOUTH
Committee No. 2, Public Safety, reported having considered the application for Class 4 liquor license for Branigan’s Development Corp. USA dba Branigan’s Restaurant and Bar, 3451 32nd Avenue South, and recommended approval contingent upon the approval of the city attorney and the fire and health departments.
It was moved by Council Member Martinson and seconded by Council Member Klave that this recommendation be and is hereby approved. Carried 11 votes affirmative; Council Member Bjerke voted against the motion.
APPROVE LIQUOR LICENSE FOR ALERUS CENTER,
1200 42ND AVENUE SOUTH
Committee No. 2, Public Safety, reported having considered the application for Class 8 liquor license for Alerus Center (Compass Facility Management, Inc. dba Alerus Center) 1200 42nd Avenue South, and recommended to approve the liquor license.
It was moved by Council Member Martinson and seconded by Council Member Klave that this recommendation be and is hereby approved.
Howard Swanson, city attorney, stated that this Class 8 liquor license for the Alerus Center is approved, there will be some clarification required in the agreement with Compass and the City that will be going to the Commission very shortly, the Attorney General’s Office has some concern that we clarify that there are no funds from the sale of alcohol that are being returned to the City or the City’s General Fund and will need to expressly state that in the management agreement, otherwise the application appears in order.
Upon call for the question and upon voice vote, the motion carried 11 votes affirmative; Council Member Bjerke voted against the motion.
TABLE UTILITY ANNUAL CASH FLOW ANALYSIS
The CIP Committee reported having considered the utility annual cash flow analysis, and recommended to approve the utility annual cash flow analysis and the cash-driven steady rate adjustment for the Waterworks, Wastewater, and Stormwater Utilities.
It was moved by Council Member Kreun and seconded by Council Member Klave that this recommendation be and is hereby approved.
Council Member Kreun reported this is a long range plan for Grand Forks and is a lot of money over a long period of time and sometimes a misunderstanding of what this includes - that this is the rate study and its recommendation that we utilize a rate of 3.1% in our water utility, stormwater and wastewater department, but wanted to review the projects that are included in this: the raw water intake, our transmission lines, our water treatment plant, our clearwell and our wastewater, and even our lime and sludge plant and are over a 10-year period of time. He stated that this rate is $2.13 which will start in 2002 and will increase 3.1% the year after that, and 3.1% the year after that, etc. for about 10 years. He stated that the other funding for the projects is what they had asked for a couple weeks ago and they come from about four major funds at this particular time: grants from the US EPA, State level match which the State is matching our levee and the Corps match, and some State Revolving Loan Funds, and also from our special assessments that are coming in. He stated that one of the things that is asked all of the time is how is this going to be paid for, and these are the funds and that you won’t see any extra taxes on your tax statement as far as special assessments because these are included in the special assessment levy that was passed a while back. He stated this is a very important portion as far as Grand Forks water utilities go.
Council Member Lunak questioned who set the rates. Council Member Kreun stated that the $2.13 - that there are three different scenarios and can be to help build all of these particular amenities, that they could just take the money that was needed at that particular time and charge the rates at that time which could be a high rate and some time a low rate and that didn’t seem too fair to businesses or to residential customers and that was not an option; the other option was to prepare yourself for down the road and raise the rates and basically keep them somewhat higher so that they had enough money for expenditures down the road and that wasn’t necessarily fair either because then charging people now for usage of the plant that’s going to be used 40-50-60 years from now; that they choose the middle rate schedule at 3.1% to keep it fair and equitable, and if a few years in the future and find that it is more money than we actually need, can adjust the entire program up or down.
Council Member Lunak stated it was his understanding that Advanced Engineering set the rates. Council Member Kreun stated they were the ones that made the presentation but didn’t set all of the rates, did a lot of the research, that there were other firms that were involved, to actually give us that information but it came from estimated costs, and the numbers have been thrown around from $100 million to $146 million but some of that is projects that have been completed and that is just a gauge at this time. He stated that we (CIP) set our rates but information to determine what was involved as far as setting the rates; we chose what we wanted to do.
There was some discussion as to holding this matter for 2 weeks. Council Member Kreun stated that if they delay this, but need that information to go to the State Revolving Loan Fund to get that proper information started.
Council Member Christensen stated that perhaps we should look at the projects as part of our budgeting, what is absolutely necessary, when should we implement it, how do we impose this rate, or use some other sources of funding to keep the cost of the project down; and that shouldn’t be setting rates or a policy of how we’re going to set rates for the next 10 years to fund $125 to $150 million worth of projects, need to slow this down.
Council Member Kreun stated all those items were discussed at the CIP meeting, which everyone was invited to attend, and also are looking at other agencies that have funding through this process, that all of the questions they are asking were discussed in depth at a couple of the CIP meetings.
Todd Feland, public works department, stated that due to some of the concerns and don’t have all of the information are planning a presentation, water utility specific related to all the projects that coming down the line in the next 10 years and perhaps at that meeting can re-discuss some of the rate information, that the information related to the projects is going to be water utility specific but at that time can discuss the rate model and cash flow model, and even with decisions that could be made today, like delaying lift station rehabs, is going to affect the rates too, and must keep in mind that rates are made on a year to year basis even though we have a 5-year CIP and go out 10 years, decisions are still made on a year to year basis on rates and on individual budgets and what capital improvement items show up in those budgets; and that it may be a good time to a) discuss capital projects and corresponding costs related to those projects at the next committee of the whole meeting.
Council Member Gershman moved that this item be presented at the committee of the whole meeting. The motion was seconded by Council Member Christensen. Carried 12 votes affirmative.
Council Member Klave questioned that the information relative to this item be sent to council members prior to the committee of the whole meeting; Council Member Bjerke also asked for information as to why they are spending this money.
DECLARE PROPERTIES SURPLUS AND AUTHORIZE
DISPOSAL OF FLOOD PROTECTION PROJECT PROPERTIES
Committee No. 3, Public Service, reported having considered the declaration of surplus property and authorize the disposal of flood protection project properties, and recommended to declare all structures that need to be removed for the flood protection project surplus and authorize city staff to dispose of property, via sale or demolition as deemed appropriate, to include all structures currently owned by the City and those to be acquired for the project, as they become City property, to be subject to city attorney’s review.
It was moved by Council Member Klave and seconded by Council Member Stevens that this recommendation be and is hereby approved.
Council Member Kreun stated he would like to change a portion of the recommendation, that the last sentence of the recommendation to include all structures presently owned and expected to be purchased, and that he has a listing of properties to be attached.