Council Minutes
17665
July 18, 2001
PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF GRAND FORKS, NORTH DAKOTA
July 18, 2001
The city council of the city of Grand Forks, North Dakota met in special session in the council chambers in City Hall on Wednesday, July 18, 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, Burke, Gershman, Lunak (teleconference system), Christensen, Klave, Kerian, Kreun - 11; absent: Council Member Bakken, Martinson - 2.
Mayor Brown announced that anyone wishing to speak to any item may do so by being recognized prior to a vote being taken on the matter, and that the meeting is being televised.
Mayor Brown stated that tonight they were going to consider the Enterprise Funds, and to discuss the Debt Service Funds, Internal Service Funds and Trust & Agency Funds, Capital Project Funds and Special Revenues, that we need to keep moving ahead, and asked that the city council only speak to an issue twice prior to vote, and would welcome that tonight and to please get their thoughts together before addressing an issue. He stated they would like to see these meeting designed to first consider what was presented last week and make recommendations or amendments to that and once that is completed, to move ahead with discussion on tonight’s budget items.
COUNCIL MEMBER GLASSHEIM REPORTED PRESENT
(TELECONFERENCE SYSTEM)
Mayor Brown stated they were looking for recommendations for changes on the Enterprise Funds.
Council Member Bjerke presented several motions relating to the Public Works Department budget and stated they were for the purpose of saving money or increasing revenue and in some places potential for increased capital cost if make any changes. Mayor Brown stated they would have time between now and the final budget to evaluate.
Council Member Bjerke moved to end the picking up of the grass at curbside as of December 31, 2001 and staff to be instructed to come up with a plan to provide this service utilizing drop-off sites and/or user fees (purchase bags at price and if bags on the curb would be picked up); the plan would show current costs versus the new cost, new revenue and savings. The motion was seconded by Council Member Burke.
Council Member Hamerlik called for the question, seconded by Council Member Christensen. Upon voice vote the motion carried.
Upon roll call the following voted “aye”: Council Members Brooks, Bjerke, Stevens, Burke - 4; voting “nay”: Council Members Christensen, Klave, Kerian, Kreun, Hamerlik, Glassheim, Gershman, Lunak - 8. Mayor Brown declared the motion defeated.
Council Member Bjerke moved to end the picking up of leaves as of December 31, 2001 and staff be instructed to come up with a plan to provide this service utilizing drop-off sites and/or user fees; the plan will show current costs versus new costs, new revenue and savings. The motion was seconded by Council Member Burke.
Council Member Hamerlik called for the question, seconded by Council Member Gershman. Upon voice vote the motion carried
Upon roll call the following voted “aye”: Council Members Brooks, Bjerke, Stevens, Burke - 4; voting “nay”: Council Members Christensen, Klave, Kerian, Kreun, Hamerlik, Glassheim, Gershman, Lunak - 8. Mayor Brown declared the motion failed.
Council Member Bjerke moved to end curbside recycling and apartment complex recycling as of December 31, 2001 and staff is instructed to come up with a plan to provide this service utilizing drop-off sites and/or user fees (i.e., private contracting); the plan will show current costs versus new costs, new revenue and savings. Council Member Burke seconded the motion.
Upon roll call the following voted “aye”: Council Members Brooks, Bjerke, Stevens, Burke, Lunak - 5; voting “nay”: Council Members Klave, Kerian, Kreun, Hamerlik, Glassheim, Gershman, Christensen - 7. Mayor Brown declared the motion failed.
Council Member Hamerlik stated it would seem appropriate that either at this time or later that we do an impact study or look at this to see if there are other ways it can be done, not just rebidding but need to market it more if it’s going to be effective; or if the Mayor would ask staff to do that, that the motion as stated was to save some money, and thinks something can be done but not eliminate recycling. Mayor Brown stated that during budget presentation he has charged the department with that very item and they have six months to come up with a recommendation or plan to present to us.
Council Member Bjerke moved to end the policy of the second garbage truck as of December 31, 2001, and staff instructed to come up with a plan to provide this service utilizing drop-off sites and/or user fees; the plan will show current costs versus new costs, new revenue and savings. Council Member Burke seconded the motion.
Todd Feland, Public Works Director, reviewed history of the second truck (a side-load truck) which goes around neighborhoods every other week following the recycling timeline, which was started after the flood would follow the recycling timeline, so every other week on the recycling day to pick up inert materials (ie., wood, brick, small items) truck with 2 people, costs between $100,000-$110,000 to operate; that Council Member Bjerke would like a system where residents would call sanitation and ask for pickup, and could do that as part of the basic fee or as part of a fee base system. Council Member Gershman asked if it would be possible for the second truck to go and write up items on a slip for that particular residence with a charge. After further discussion it was moved by Council Member Kerian to table this matter to September 1, 2001, and let staff get more information, seconded by Council Member Christensen. Upon voice vote the motion carried.
Council Member Bjerke moved a motion to end the night bus service, and end the night Dial-a-Ride services (from 6:00 to 10:00 p.m.) as of December 31, 2001 with staff instructed to schedule a public hearing, if needed, and with staff to issue a report showing cost savings. The motion was seconded by Council Member Burke.
Council Member Hamerlik reported that they had a Public Transpiration meeting for several hours today struggling through the route system, and committee of the whole considering it next week and the following week will have at the council meeting as to the preferred route; and that this fits in with that general pattern, not specifically with routes, but has to do with cost savings, public transportation and doesn’t think we should jump ahead with this until that is pulled together and all should be considered at one time.
Council Member Christensen stated he would hope the message we are getting that these are issues that we should address as a council, that these are policy matters, that there are efficiencies that could be achieved, that staff should look at these things and come back to us. Mr. Feland stated that the last time the council voted on the night service it was approved, that the motion was to re-examine it on October 1, 2001, and would end unless the city council proceeded forward and do have an ending date and will have to come back to Public Transportation Committee to re-discuss it and city council will have to act to move it forward
Mayor Brown stated he agrees with quality of life issues with the city, that’s what we want and how we treat the less fortunate, public transportation, leaf pickup, grass pickup, all of those things make a quality of life, that it’s $8.00/year to have your grass picked up, that they are starting a survey through Public Information where survey the community to prioritize services, what is essential, what can live without and come back to council with information.
After further discussion Council Member Kerian called for the question, Council Member Christensen seconded the motion. Carried 12 votes affirmative.
Mr. Feland asked if the mover would change his motion “..if we can instruct staff to set a public hearing on the possible elimination of the night service bus”. Council Member Bjerke stated his motion stands as made.
Upon roll call the following voted “aye”: Council Member Brooks, Bjerke, Stevens, Burke - 4; voting “nay”: Council Members Kerian, Kreun, Hamerlik, Glassheim, Gershman, Lunak, Christensen, Klave - 8. Mayor Brown declared the motion defeated.
Council Member Christensen stated that the process is to come up October 1, 2001, and idea to let the public know and will take more than just the riders to tell us because of few people each night, and might be less expensive way of doing this, taxicabs or dial-a-ride. Council Member Hamerlik asked that the city auditor review the voting procedures when we can add, when preliminary budget is approved, secondary that can’t add in, deletions. The city auditor stated that when the council has finished the preliminary work on the budget and the budget is presented to the city council for preliminary adoption, at that point in time you cannot add to the budget, at the final adoption you may subtract from the budget but cannot add after moving through the preliminary adoption.
Council Member Bjerke moved to end the tripper service with the exception of the handicapped service as of December 31, 2001, schedule public hearing if needed, with staff instructed to issue a report showing savings, with plan to liquidate extra buses, parts, etc. and that staff also issue a report and a briefing on the handicapped service, and according to the information he has, he finds it interesting that the School Board believes it is the parents’ responsibility to get their children to school but the city council believes it is the city government’s responsibility, and should follow the lead of the School Board. Council Member Burke seconded the motion.
Council Member Hamerlik stated that the motion is very cumbersome and has a lot of parts to it and would seem that rather than voting it down, it would be wise to follow suggestion to wait for four weeks to make legitimate decision, and moved that we table the question for four weeks so that staff could come up with some figures/statements about the motion as stated. Council Member Christensen stated he would second the motion but not with a four week delay, and would like the public transportation department to meet with the School District and determine how this could be transitioned because if cut it on December 31, then the parents will pick it up on January 1 and would hope that the PTA’s would get together so that there’s some dialogue and if decide to do this that the public is forewarned. Council Member Hamerlik changed the motion from four weeks to October 1. Council Member Christensen seconded the motion.
Upon roll call the following voted “aye”: Council Members Gershman, Christensen, Klave, Kerian, Kreun, Hamerlik, Glassheim - 7; voting “nay”: Council Member Lunak, Brooks, Bjerke, Stevens, Burke - 5. Mayor Brown declared the motion tabled.
Council Member Bjerke moved that the balance of the Sanitation Fund cash carryover as of December 31, 2001 be placed in a restricted reserved fund for the new landfill. Council Member Stevens seconded the motion.
Council Member Hamerlik called for the question. The city auditor stated they would need some flexibility in case revenues do not come in the way anticipated.
Council Member Hamerlik noted that the question had been called; Council Member Christensen seconded the motion. Carried 12 votes affirmative.
Upon roll call the following voted “aye”: Council Members Bjerke, Stevens - 2; voting “nay”: Council Members Kreun, Brooks, Hamerlik, Burke, Glassheim, Gershman, Lunak, Christensen, Klave, Kerian - 10. Mayor Brown declared the motion defeated.
Council Member Bjerke moved that the balance of the Waterworks Fund cash carryover as of December 31, 2001 will be placed in a restricted reserved fund for the new water plant. Council Member Stevens seconded the motion.
Council Member Lunak called for the question, seconded by Council Member Gershman. Carried 12 votes affirmative.
Upon roll call vote the following voted “aye”: Council Members Bjerke, Stevens - 2; voting “nay”: Council Members Brooks, Hamerlik, Burke, Glassheim, Gershman, Lunak, Christensen, Klave, Kerian, Kreun - 10. Mayor Brown declared the motion defeated.
The city auditor stated that after the preliminary budget we cannot increase the budget based on the current revenue as anticipated in the budget, however, if there is unanticipated revenue that would off-set an increase in expenditures, that would be treated as they treat budget amendments
Council Member Stevens stated he wanted to take you back on your charge to the department heads last Monday night, that by giving the wage increases that you expected efficiency from the department and moved that we look at a 3% efficiency (cost deduction of operating expenses) for each department in the Enterprise Funds for the 2002 budget. Council Member Brooks seconded the motion
Mr. Feland stated that would include the Waterworks, Sanitation, Stormwater and Wastewater and Public Transportation and maybe a couple non-public works funds included. Council Member Hamerlik stated that under the Enterprise Funds there’s Job Development Authority, the Alerus Center and if intent was to cut the operating 3% in each of them or totally on those.
Council Member Stevens stated he was talking about the Public Works Department (Water, Sewer and Bus in the operating expenses) being able to show the Mayor that the council is really sincere about making the efficiencies and he might on his own change the percentage but the effort has to be made in some and something has to be shown.
Council Members Bjerke and Brooks called the question. Carried 12 votes affirmative.
Upon roll call the following voted “aye”: Council Members Bjerke, Stevens - 2; voting “nay”: Council Members Hamerlik, Burke, Glassheim, Gershman, Lunak, Christensen, Klave, Kerian, Kreun, Brooks - 10. Mayor Brown declared the motion defeated.
DEBT SERVICE FUNDS - DISCUSSION
Mayor Brown asked for comments; there were no comments made.
INTERNAL SERVICE FUNDS AND TRUST & AGENCY
FUNDS - DISCUSSION
Mayor Brown asked for comments; there were no comments made.
CAPITAL PROJECTS FUNDS - DISCUSSION
Mayor Brown asked for comments; there were no comments made.
SPECIAL REVENUES - DISCUSSION
Mayor Brown asked for comments.
Council Member Lunak stated there are some funds being transferred to the General Fund and asked if that would mean less funds for capital projects. The city auditor stated that one of the transfers is an additional $600,000 from Highway Users Fund; that there’s a $3.8 million fund balance and the transfer lowers that fund balance to $3.2 million; that they looked at the capital improvement projects for the next five years and could do that, that is not something they can continue to do, it was recommended as a one-year deal and can’t continue to do it; and won’t have to replenish that fund.
Council Member Bjerke stated he would like to review some items and would have motions at next week’s meeting:
1) that on CDBG we currently use $50,000/year out of Highway Users Fund to do ADA curb cuts and that he will be making a motion to take $50,000 out of CDBG money to spend $100,000/year on ADA curb cuts which will make it go twice as fast, that he has talked with Mr. Grasser and that he thought the $100,000 figure would be appropriate and as much as his staff could handle; and in the long run will be able to use those funds for road projects versus curb cuts; that we can’t go down to zero and use all CDBG funds because that is against federal regulations;
2) that he would request that the Mayor ask staff of Urban Development to look at CIP information to see if there is anything they could come up for ideas as far as spending CDBG monies on infrastructure;
3) that under infrastructure funds there is $86,071 going into parking lots, that the issue had been raised as to privatizing that and would hope that by next week would have some information as far as privatizing that system.
4) that we could reduce the amount of money we spend on Beautification and take $50,000 out of that Fund and put it into the Highway Users Fund, so could use for projects.
5) that relating to Economic Development money, he will be making motions concerning both UND monies, Arts Funding and Special Events.
6) that relating to EDC funding, he asked if that program could be funded with program income that Urban Development receives versus taking it from the 1% sales tax - and asked Mr. Scheving to find out and bring back next week.
7) that he would ask the Mayor to instruct Chief Packett by next Wednesday to consider the $160,000 for special services, and to ask UND if they would be willing to have their police officers assist with traffic control at the Engelstad Arena so that the City could save some money; and also if Chief Packett could check to see if Ralph Engelstad Arena would be willing to pay all or any of the cost of the off-site police officers.
Council Member Burke questioned purpose of the General Fund Stabilization Loan Fund. The city auditor reported that is a fund that was set up several years ago to assist the General Fund in buying capital items that perhaps could not be funded through mill levies. He stated that money is generated as special assessment bond issues are paid off and if there is cash in those funds or if there are still receivables to come to those funds, State Statutes had said that money should be transferred to the General Fund; that the problem with that in trying to rely on any continuing source of revenues, there is no way of projecting that so the council had set up a method where the money would go to the General Fund and then put into this fund and held for the council to make a decision on a capital project that would benefit the General Fund. Council Member Burke asked if they were spending money out of that fund this year; and it was noted that nothing is budgeted this year.
Council Member Burke questioned why PSAP and E-911 are two different funds. The city auditor reported that E-911 is funded strictly by the surcharge on the telephone, and Public Service Answering Point (PSAP) is funded by charges to the E-911 Fund plus charges to our police department, fire department, the various users of the PSAP. He stated that only a portion of the E-911 money will go to the PSAP, other portions of the funding is used for the County (signing, locators in the County) for emergency services. Council Member Burke asked if we are paying money to put signs in the County; the city auditor stated that there is a portion going to that and would research that.
Council Member Burke stated that the use tax was approved early last year and went into effect July 1, 2000 and asked if the referendum specified that the proceeds would go to debt retirement on the dike project; and understood that it was hard to identify our use tax revenues; the city auditor stated he believed it would be used for the flood control project but would research that and that it is hard to identify our use tax revenues - that they had to take an estimate from the State Tax Commissioner’s Office as to what we would raise and back into percentage splits based on what we are collecting to come up with that dollar amount. Mr. Burke asked if the State was able when it collects sales tax and use tax to discern between the two; the city auditor stated it isn’t and that we have lived with the State Tax Commissioner’s estimates and we have to take the amount that we collect month to month and take the percentages as we have billed sales tax and use tax dollars up, there’s no good breakout on it. Mr. Burke asked if we have any debt associated with the dike that is tied to the use tax; the city auditor stated not at this time, that would be the anticipated bond issue this year for portions of the flood control project and a portion would be funded by sales tax and use tax dollars. Council Member Stevens stated that when he was paying use tax it was distinguished from the sales tax on the report form and that he thinks the Tax Department could get it out if they wanted to. Council Member Christensen stated that is right as he is
researching the issue for constituents and can get that information.
Council Member Gershman stated one of the things that Council Member Bjerke mentioned was the University Research funds, events money, arts money and recruiting money and we need to discuss that tonight, and that we have people from the University of North Dakota here. He stated there was an article in the paper today where he was quoted as saying that he would reduce the $200,000 in the budget to $140,000 and using the $60,000 that is the carryover to bring it to replenish the fund to $200,000, and that he will make that motion next week.
Dr. Bill Sheridan, Biology Department University of North Dakota, stated that he and the other faculty members at the University much appreciate the support that has been provided by previous councils and would like to propose what he thinks is a compromise that would be fair and reasonable and that the essential features are: that they would like to have $200,000 of city money available on January 1, that money would be a challenge to the University to raise a 3 to 1 match of $600,000 next year. That they have $60,000 still sitting on the table at City Hall, that he presented the city auditor with a letter on 21st of June, and stated that they anticipate that they will request release of the remaining $60,000 of city funds this fall when they will be able to come to council with the required $180,000 match by the University; and proposes to the council to consider that they will make every effort to come to the City before the end of December with a full $180,000, if they succeed they will release the $60,000 and would appreciate the council’s support with new funds to the extent of $200,000, but if they fail to come forward with the necessary match, they would be agreeable to subtracting that amount of money they could not match from the new money the City would provide, and if completely fail and don’t come forward with any money to match the $60,000, they would only receive $140,000 of new funds and carry over the $60,000 that they did not release by matching, and no matter how it worked out the University would have $200,000 at the beginning of 2002, and the City would be challenging UND to raise the necessary match of $600,000 next year to release whatever money is there; and asked city council to have faith in their efforts and will make their very best effort to match the full $60,000. Mayor Brown stated it was his impression that the City put the $200,0000 up there to challenge UND to match that and to take it away would be wrong because that would be our agreement at the beginning of the year and agreement would go to the end of the year and if the money is still on the table it can be rolled over but we should not adjust those funds now.
Council Member Hamerlik stated that the materials that Dr. Sheridan handed out in addition to his letter, if they were primary for salaries; Dr. Sheridan stated that well over half of the seed monies were invested in 18 faculties went for salaries and wages. Council Member Hamerlik stated for 2002 we have a policy that personnel dollars are not carried over in our own budgets, and if we were to move forward with this, would be proper for us to have a sunset at the end of 2002 and not have any carryover money. Dr. Sheridan stated the other half of the seed money would be used for a great variety of research expenses including the purchase of chemicals, film, and wide range of expenditures that modern scientific research require but a major part of scientific research involves people and these people are graduate students at the University who live here, spend these monies in our local community.
The city auditor reported there are two different pools of money that UND is getting; one was approved for research program that this is and another $100,000 that was approved for recruitment money, and have had money in the budget for the last two years and this is third year they are asking for; and have also had recruitment money in the budget for 3 years and they are requesting a fourth year. Money was first provided in August, 1999, that $100,000 was appropriated for the last half of 1999 and it was in September that former Mayor Owens put in $200,000 into the budget for the following year, 2000.
There was considerable discussion re. priorities of money for economic development funding and benefit to the community. Dr. Sheridan stated that approx. half of the research grant awards are spent on personnel costs for new graduate students, and highly skilled technicians and it is apparent by increasing the scope of research at UND; the City partnership with the UND and the Foundation can help grow Grand Forks in the surrounding region. Mayor Brown stated if they bring back information that they are doing that it will change the minds of some people who disagree with you presently.
Council Member Christensen called attention to Special Enterprise Funds, Economic Development, and questioned if the cash carryover of $960,000 includes the money we reserved for the Alerus, (it does) and that we have Special Services, $160,000 for the Alerus and the Engelstad and special events, UND recruiting, funding of arts, and how much left for economic development for project; that he wants the council to think about allocating some money from the Enterprise Fund because we have the power to use some of those monies in addition to the sales tax dollar, and would like to protect as much as possible for deals in economic development.
Joel Scheving, Urban Development, stated that during the economic development presentation they put together a cash flow projection on the Growth Fund and the JDA, the cash projection given at that meeting if no deals were made between now and the end of the year, the combined total of those two funds would be approx. $4.3 million range, but as of December 32, 2002, with no deals and no Alerus contingencies it would be about $6.3. Mr. Scheving stated that some of those dollars are tied to EDA which right after the flood we received a $2 million EDA grant, the City put in approx. 10% and spent that and its coming back and can be creative and make economic development (essential growth fund activities).
Council Member Brooks stated if we fund this we need a funding source, on-going revenue source.
UND Recruitment Funds. There were no comments.
Bob Boyd, Vice President for Student and Outreach Services for the University of North Dakota, introduced the new Associate Vice President for Enrollment Management, Alice Hoffert, and expressed his appreciation for the support given to the area of retention and recruitment in the last 3 years, and has borne some fruit - that in the last 2 years we’ve had 661 more students than had in 1998, 441 increase last year, and if take all of the increases of all of the other campuses, our increase was the greatest increase, and was due to the support and cooperation they’ve had from the City; and expressed appreciation for that and would be happy to respond to any questions they might have tonight or next Wednesday.
Alice Hoffert stated that it is her privilege to be in this new position, that when they recruit and retain students in terms of economic development and in terms of those dollars being turned over, and estimate that an undergraduate student and out of state undergraduate students spends about $10,000/year at this institution and if bring in 10 students from out of state, that’s a return on this original amount; that the funds the City provides gives them the opportunity to be much more creative and to try some new things; and thanked the council for that opportunity, and are available to answer any questions or provide any information they can, and best information are the continuing numbers of increases in students, both undergraduate and graduate students.
ADJOURN
It was moved by Council Member Kreun and seconded by Council Member Hamerlik that we do now adjourn. Carried 12 votes affirmative.
Respectfully submitted,
John M. Schmisek
City Auditor
Approved:
-_____________________________________
Michael R. Brown, Mayor