Committee Minutes

MINUTES/URBAN DEVELOPMENT COMMITTEE
Wednesday, June 28, 1995 - 4:00 p.m.

Members present: Beach, Hanson.

1. Matter of report concerning method of operation of detox
center.
Chairman Beach noted that committee had received report/memo from Don Shields, health department, suggesting several ways to approach this under recommendations discussed: 1) council could entertain requests for funding together with an operating plan from groups or corporations, 2) council should not enter into a contractual relationship with any operator of a detoxification facility; 3) council could refer specific requests to the public safety committee for evaluation; 4) a community advisory board could be established to work with the operators of Greater Grand Forks detoxification facility; or 5) receive and file.

John O'Leary reported that he had visited with Mr. Shields, and his recommendation is to receive and file the report pending outcomes on financing and location.

Lloyd Rath, 2442 Glen Circle, chairperson of Grand Forks City Mission Board, stated he knew they had been considered in the past and that he wanted to clarify their stance on that; they would be provider of space but not of services.

Moved by Hanson and Beach to receive and file pending further decision by the council as a whole on location and financing. Motion carried.

2. Request from Grand Forks Sister City Assn. to use building
in City Center Mall. Tim Shea, vice president of Sister Cities Organization for Grand Forks, stated they are currently looking for facility to help in their humanitarian aid project with Ishim, looking for a place to store medical materials as they stockpile until they have enough to supply containers and have an area to electrically convert them so they are appropriate for Ishim. He stated that in the past they were fortunate enough to have donation of a building by U.S.West but due to new regulations for safety and security for their facilities that can't donate any longer, can't have non-employees in their building so are without facility (after incident in Fargo where someone cut phone lines). He stated that in the past three years they have been able to collect and ship over a half million dollars in medical supplies to Russia, supplies that are no longer of value to medical facilities in our area (negative value because of disposal - incinerated or dumped in landfill) because of regulations; so
take them, recycle and send where they can actually save lives and really increase ability for Ishim to provide good medical care. He reported that containers are 20'x8'x8' and send out at least two each year; that when ready for container, write grant and container brought in, load and send out within 24 hour

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June 28, 1995 - Page 2

period; takes 60-90 days to arrive in Ishim so have to be packed quite well. He also reported that they don't store any hazardous materials, and not danger to anyone.

Mr. O'Leary reported that the Mall Authority has offer to lease the back of the Berg building, so that building may not be available because of either the detox or because of rental; that he and staff met with Mr. Jackson and were informed that on July 1, Plunkett's will be vacating adj. building, which is owned by the City and which is about same size (50'x120') with access off hall which exits onto alley in the back. He did state that his office would like to see storefront and other improvements, that front part of the building fairly easy to rent, but back of building much more difficult. He stated that if they wanted to make that building available when Plunkett's vacates for use by Sister City might work well for them; that Sister City group looking for something for nothing or nearly nothing as they don't have any money. Committee asked where they get their funds. Mr. Shea noted they did have $400 which they used for shipping of supplies; but have no funding source for the medical project (Project Ishim) so when need money for shipping, they (he and several others) take from their own pockets. It was noted that the Sister City budget used for other purposes; that this is part of the program but don't go into their budget which is used for cultural exchange, etc. and this project something that a number of people just took on, that Sister City supports it, but unable to support financially and continue with cultural aspects. Mr. O'Leary stated that if they allow Sister City to use the space for this purpose, that it should be with the understanding that they could continue to try to rent it and when that happens Sister City project would have to move. Mr. Shea stated they are to be out of present space by end of June, but U.S.West been very good and willing to work with them; and will probably be shipping another container end of July or in August so have quite large stockpile of materials.

Moved by Hanson and Beach to offer space to the Sister City Program in the rear of the City-owned building being vacated by Plunkett's, contingent upon its availability, and subject to the Mall Authority renting the building.

Mr. Hanson stated he would personally like to commend these people for the job they are doing. Mr. Beach stated it was very humanitarian and commendable that they are not taking from Sister City budget but doing on an individual basis.
The motion carried.

4. Request from Grand Forks Homes for rehab funds for Phase A
(110 Cherry Street).
Joel Manske, Housing Authority, presented proposal for Home funds, and distributed copies of brief summary of history of

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June 28, 1995 - Page 3

Grand Forks Homes and proposed improvements in the amount of $301,600. Several members of the Grand Forks Homes board were present, Jerry Hoeppner, Sally Page and Henry Essinger.

Mr. Manske reviewed proposed improvements, including replacement of heating system, windows, removal of wood siding and sheathing and install extruded styrene foam sheeting and factory-finished siding or drivit compound to mansert area, installation of air-conditioning sleeves, shower units, and A/E services in the amount of $301,600 (roof replaced this spring); and funding sources: HOME Entitlement funds of $207,000 and Project Reserve for Replacement funds of $94,600. He reported they have received specific cost estimates from reputable contractors. He also reported that Phase B will include roofing systems, building exteriors, parking lot, site improvements, etc. It was noted that Phase B predominately family complex; Phase A elderly, disabled or handicapped.

Mr. O'Leary reported they have to come up with match on these projects; that Phases A, B, and C, and Continental Homes as well are properties that have been on tax rolls and will continue to be, and stated they intend to apply for 3-year tax exemption for improvements, which will be used as City match. It was noted that owner equity can't be considered match under the HOME program.

Moved by Hanson and Beach to approve the grant application in the amount of $207,000. Motion carried.

3. Matter of release of funds for Burdick's Acres.
Mr. O'Leary reported that one of the major contractors on the project in Burdick's Acres was Sherlock Homes, and they have been withholding percentage on the project, that most of the work has been completed with only several things left on the punch list, that they met with Mr. Sherlock and that retainage of $45,770.50 is more than they should be withholding given the size and scope of the punch list; in addition there is lien waiver that Mr. Sherlock needs to take care of; and it is staff's recommendation to reduce withholding from 10% to 5%, which would release about $24,000.

Moved by Hanson and Beach to reduce amount of retainage from 10% to 5% on projects awarded to Sherlock Homes. Motion carried.

5. Matter of changing fiscal year for CDBG program.
Mr. O'Leary reported that the fiscal year for CDBG for the past 20+ years has been June 1 through May 31, makes it difficult for auditors and staff in auditing and budgeting processes; that
with Human Needs and Public Service programs being combined, and with federal requirements for a single audit, makes some sense to change the CDBG fiscal year so that it coincides with the City's

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fiscal year of January 1. He stated that they will need to give notice to HUD fairly soon and if committee concurs, they would proceed. Moved by Hanson and Beach to authorize change in fiscal year to coincide with City's fiscal year. Motion carried.

Meeting adjourned at 4:45 p.m.

Alice Fontaine
City Clerk

Dated: 6/29/95.