Council Minutes

PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF GRAND FORKS, NORTH DAKOTA
Monday, September 15, 1997

The city council of the city of Grand Forks, North Dakota met in its adjourned session in the council chambers in City Hall on Monday, September 15, 1997 at the hour of 7:00 o'clock p.m. with Mayor Owens presiding. Present at roll call were Council Members Beach, Polovitz, Hamerlik, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Hafner, Hagness - 11; absent: Council Member Bakken - 1; 2 seats vacant.

Mayor Owens announced that anyone wishing to speak to any item may do so by being recognized prior to a vote being taken on the issue.

PRESENTATION BY GOVERNOR SCHAFER

Mayor Owens introduced Governor Edward Schafer.

Governor Schafer reported on the State's efforts on flood recovery, and reported that there are areas within State that are also having problems as well as Grand Forks, and find out how City's efforts are going, efforts of concern, and that his staff, cabinet, etc. are willing and able to assist in any way they can. He stated he wanted to congratulate all in city government and citizens of community for incredible job that's been done here as city continues to recover from this disaster. He reported that 90% of the businesses are up and running, the vast majority of students have returned to schools, UND enrollment is strong, and city deserves credit for a job well done.

Governor Schafer reported on the State-wide disaster recovery and mitigation efforts. He reported that the State has had two state-wide and Presidential disaster declarations this year between January and April, that he activated the ND National Guard which completed two major operations: Operation Snowball for the severe winter storms that shut down good portion of our State, and Operation
Good Neighbor which was involved in our spring flood. He reported that both of those missions were the largest of the National Guard in our State's history, involving over 2,400 soldiers, airmen and women around the State and cost our State about $5.2 million for these operations. He reported they performed countless essential tasks throughout the State, ranging from unclogging our State highway system after severe snowstorms hit,rescuing people from flooded homes, removing dead cattle from the waterways in the western part of the State and providing security to Grand Forks when it was virtual ghost town. He reported that the State also provides a match for most of the FEMA programs that were put in place and the State match for those programs State-wide is expected to be about $17 million. He reported that they came in from Devils Lake this afternoon and on-going flooding in that area has plagued for five years and to describe suffering and loss from that area are almost as difficult as it is to describe magnitude of loss that the spring flood caused in Grand Forks, that the Lake has doubled in size in the last four years and has consumed everything in its way, changing character and face of that area and for Devils Lake no recovery effort yet, but dealing with growing body of water.

Governor Schafer reported that the three-part plan for mitigating the effects of the flood includes raising the protective infrastructure there storing water in the upper basin and securing an emergency outlet. He reported this is a complicated plan and depends on wide variety of people, including federal government, local and state governments, downstream members in Minnesota and Canada. He reported that the road system has been devastated by the flood waters, that millions of dollars are being spent to maintain transportation routes for people throughout the region just to connect critical pathways for education, health care and commerce.

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Governor Schafer reported that in terms of the Grand Forks program, the State is paying 100% of the city-county-school district and park district costs for the FEMA program, that this includes the public assistance program within the city development of manufactured home sites for temporary housing and the individual family-grant programs; that the State is paying $16.5 million for hazard mitiga-tion programs in the city and has granted $2.4 million from our State community block grant program. He reported that the Bank of North Dakota is providing low interest loans to the city to help cover what could be serious cash flow prob-lems, bank loans do include a $25 million line of credit to the City, with about $8 million on that line; lent $8.3 million to the School District and $12 million to the University of North Dakota for cash flow basis while the reimbursements take place. He reported that the Bank of North Dakota has a $35 million disaster loan program for Grand Forks businesses and that provides loans for rebuilding at low interest rates with very flexible payback terms. He reported that in addition to financial assistance the Bank has worked very hard to reduce red tape. He reviewed chart showing programs: FEMA, Corps of Engineers, Federal Highway Administration and State Water Commission show costs for nonfederal and State share, and State's cost for these four programs are est. at about $52 million, and est. State's cost share of flood mitigation efforts will be in that $50 to $60 million range.

Governor Schafer reported that in addition to the financial assistance, the State has worked very hard to reduce red tape, provide technical support to speed up recovery efforts, that General Bjerke is State's coordinating officer and has worked full time on this disaster recovery since January and since April he has spent a majority of his time on Grand Forks issues; and additionally General Sagsveen has been assigned virtually to Grand Forks and every day is dealing with Grand Forks efforts. He reported that Capt. Mark Nelson of the North Dakota Highway Patrol was loaned to the City as acting police chief so Grand Forks could pursue a careful search for a replacement there. He also reported that he had issued a wide variety of executive orders suspending State laws to facilitate prompt reconstruction of damaged facilities, quicker acquisition to the damaged homes and provided State's one-stop shopping center for quick licensing and identification of contractors, etc. to get moving forward.

He reported that each agency in the State government has played a vital role in one way or another to help people in communities to recover from disasters: Department of Corrections for channeling adult offenders in probation program for assistance for sandbagging, North Dakota Development Fund created loan program to help flood damaged businesses, State Bank efforts, State Electrical Board provided additional staff, State Highway Patrol in managed road closures and this is small example of where State agencies involved. He reported that the State has been criticized by some for not doing enough, but there are major differences between North Dakota and Minnesota, that North Dakota has State-owned bank and significant reserves are there to be used to loan State or local agencies money for emergencies, and vast majority of Minnesota's disaster recovery allocations were necessary to provide the State's match for federal programs and North Dakota was already doing this before Minnesota's special session because our Legislature made provisions to allow us to do that after they came out of session. He reported that the State's commitment towards flood recovery is an est. $50 to $60 million, which is $94/per capita in North Dakota, which is four times what Minnesota's contribution is and are proud of taxpayers in North Dakota and their willingness to support these projects. He stated he wanted to open the dialogue to questions and would like to take time to interact a bit on questions they might have.

Council Member Hagness reported that the Flood Mitigation is through the State and whether that is through the Governor's Office or through State Legislation, matching funds for the City of Grand Forks. Governor Schafer reported they don't know what the design of the program is going to be , what total costs are nor what the nonfederal share might be; that they are going to evaluate the State's
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presence and it's going to be huge dollars but nonfederal share could top $100 million and evaluate where State can help and as program gets designed, will make decision whether Governor can make decision or Legislature involved. He stated that he would want to consult Legislature.

Council Member Hagness reported that by February 28 the Corps of Engineers is going to ask for response from City for a dike diversion or whatever issue City takes, going to have to commit ourselves so can be submitted to Congress for FY 1998 and will have to know before that, would that be reason for special session because talking about $116 million. Governor Schafer reported that could be reason for special session and if need to have special session, if can't solve this through the executive branch with the consultation agreement with legislative leaders and have to make changes in State law or statute, will have one. He stated that he and Gen. Sagsveen discussed on way here today, that they are aware of timetable and trying to get feel for the project and get the numbers but will stand with City as work out this project and that whatever needs to be done to move forward if acceptable and committed to by the people of Grand Forks
and will have special session to do it.

Council Member Sande questioned why money is sitting in Bismarck and will any interest on buyout money be allocated to the people of Grand Forks. Governor Schafer reported that the buyout money hasn't been sitting in Bismarck as it's been FEMA dollars and there have been some difficulties in approaching that question, esp. on reimbursement with sewer backup insurance as well as FEMA reimbursements. He reported that he asked Gen. Sagsveen to personally intervene on this issue and that he has two checks here from FEMA totaling about $497,000 on this reimbursement, and will present them today. he reported they were able to solve this by taking the full list of homes, that FEMA was questioning some homes so entire listing was held; General Sagsveen was able to solve this by convincing FEMA to remove the homes in question and reimbursing the others.

Council Member Sande reported that one of her constituents would like Governor Schafer to visit her house on Lincoln Drive in the worst part of the area; Governor Schafer stated he would catch up with her later to get address, that he wouldn't have time to do that today as he has an 8:00 o'clock flight, and if not make call, give her a call.

Council Member Carpenter reported that City would like to see special session, and supports excess sales tax generated coming back to the city of Grand Forks but if have to wait until the winter of 1999 to find out if the Legislature actually approves that, City won't be able to make any commitment on that money now because if the Legislature doesn't follow through in 1999 on Governor's recommendation the City will have to repay that money with property tax dollars which they can't afford to raise at this time. He stated he would like to urge Governor Schafer to consider the fact of an earlier special session or one that occurs in conjunction with the need for flood protection because we can't commit to spending that money that would have to be repaid by property tax dollars if don't get Legislative approval in 1999. He reported that the City has had to reduce its 1998 general fund budget by over $1 million and spending down reserves, etc. and would be nice to have that commitment in effect so won't impact long term future of the City by cutting back maintenance and appropriate capital acquisitions because we don't now have money. Governor Schafer reported that he doesn't hear lot of people saying that we ought to have special session and the other issue that he disagrees with is knowing what's happening today, that if they had a special session which costs $65,000/day with a minimum of three days according to the Constitution, $150,000 just to start, what kind of monies you going to be assured of and you'll have no better way to plan knowing what money comes in than do right now. He reported that the increased sales tax revenues are approx. $700,000 and est. that this could be by end of biennium $6 million, but not sure, and this is reason why they set up program to lend the community $25 million for cash flow purposes and should time come when they know
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exactly how much money is generated by the tax, they can use that money to reimburse the loan program. He stated he would urge City to continue with its programs, that they provided the financial capability of the City to do so and whether they reimburse those with sales tax dollars or other ways, need to move forward with these programs. He stated he was convinced that through legislative action they can pass this legislation and if he puts this legislation in his executive budget recommendation, that his recommendations for the last three sessions have been within one-half of one percent of his recommendations to the legislature, and thinks that's an important message. He reported that he also thinks that they better be prepared if had special session right now to face the State-wide impact of getting this done, because have huge livestock losses, agriculture losses and have had huge impacts on Devils Lake area, had drought in northwestern area, and is not convinced he could convince full body of legislators to pass this tax, but if known how much it is, etc. can reimburse City and work hard to get done. Council Member Carpenter stated he didn't agree but that funding they have used is credited more for specific projects than on-going and didn't know that special session has to be tied to the sales tax revenue but the dollar amount commitment from the State for general revenue to the City to assist over the next couple years would be appropriate even if not tied to the sales tax and that the City needs in excess of $1 million/year for the next three years to recuperate from the lost property tax revenues and also for School District which has taken significant hit and would say that the community of Grand Forks and School District and park District would need $5 to $10 million over the next three years to recuperate and continue to provide quality services that we have. Governor Schafer stated they would prefer to know exactly how many dollars working at and will go to bat and try to get that money reimbursed to the City on the increase sales tax, that they have had advantage of Bank of North Dakota to lend the City the money to get to these projects and will be there in partners with the City making sure it gets done.

Mayor Owens reported that this has never been an issue of party, been about people hurting and that's how he dealt with it and appreciates that. She stated that she realizes that they are dealing with an entire State and that we are part of it, that they have not denied any requests that the City has made and know that he addressed anything presented to him and trusts that he will continue to do that and if possible, help. She stated they appreciated his being here this evening and knowing that we have your continued support to recover; and that the city appreciates what he has done for us.

Governor Schafer stated he appreciated the opportunity to leave City with an invitation and that is if they have any follow-up thoughts, questions, ideas, please call them, drop them a note, and that they have committed General Sagsveen to be liaison with the City but want to have continued interaction and if any-thing from State, please feel free to be involved. He presented checks to the City.

APPROVE FINAL PLAT; AND ADOPT ORDINANCE NO. 3677,
AMENDING ZONING MAP TO INCLUDE WITHIN JOHNSON'S
PUD (PLANNED UNIT DEVELOPMENT), CONCEPT DEVELOP-
MENT PLAN, AMENDMENT NO. 10, WITH SUBSTANTIAL
CHANGE LYING IN LOT 1, BLOCK 1, COLUMBIA PARK 7TH
ADDITION

An ordinance entitled "An ordinance to amend the Zoning Map of the city of Grand Forks, North Dakota to rezone and exclude from the Columbia Park PUD (Planned Unit Development), Concept Development Plan, Amendment No. 9 and to include within the Johnson's PUD (Planned unit Development), Concept Development Plan, Amendment No. 10, with substantial change lying in Lot 1, Block 1, Columbia Park 7th Addition to the city of Grand Forks, North Dakota", which had been introduced and passed on its first reading on June 23, 1997, and upon which public hearing
had been scheduled for this evening, was presented and read for consideration on
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second reading and final passage.

The city auditor reported that the required legal notice had been published calling for a public hearing to be held on this matter this evening and further that to date no protests or grievances had been filed with his office.

Mayor Owens called upon the audience to see if there was anyone present who had comments to make on this matter. There were none.

The Planning and Zoning Commission reported having considered the matter of the request from Wally Rodgers on behalf of Americinn Hospitality, L.L.C. for final approval of an ordinance to amend the Zoning Map to exclude from Columbia Park PUD (Planned Unit Development), Concept Development Plan, Amendment No. 9 and to include within Columbia park PUD (Planned Unit Development), Concept Development Plan, Amendment No. 10, with substantial change lying in Lot 1, Block 1, Columbia Park 7th Addition, Grand Forks, ND (located in the northeast corner of 19th Avenue South and South 29th Street), and recommended final approval subject to special conditions shown on or attached to the review copy and passage of the ordinance and refer to public safety committee a request considering the removal of street parking along the north side of 19th Avenue South between South Columbia road and South 29th Street.

It was moved by Council Member Hagness and seconded by Council Member Beyer that this recommendation be and is hereby approved. Carried 11 votes affirmative.

Upon call for the question of adoption of this ordinance and upon roll call vote, the following voted "aye": Council Members Beach, Polovitz, Hamerlik, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Hafner, Hagness - 11; voting "nay": none. Mayor Owens declared the ordinance adopted.

COUNCIL MEMBER HAMERLIK EXCUSED

ADOPT ORDINANCE NO. 3678 TO AMEND STREET
AND HIGHWAY PLAN TO INCLUDE PUBLIC R/W
SHOWN AS DEDICATED ON THE PLAT OF BIRKHOLZ
6TH ADDITION TO THE CITY OF GRAND FORKS, ND

An ordinance entitled "An ordinance to amend the Street and Highway Plan of the city of Grand Forks, North Dakota, to include the public rights of way shown as dedicated on the plat of Birkholz 6th Addition to the city of Grand Forks, North Dakota", which had been introduced and passed on its first reading on September 2, 1997 and upon which public hearing had been scheduled for this evening, was presented and read for consideration on second reading and final passage.

The city auditor reported that the required legal notice had been published calling for a public hearing to be held on this matter this evening and further that to date no protests or grievances had been filed with his office.

Mayor Owens called upon the audience to see if there was anyone present who had comments to make on this matter. There were none.

The Planning and Zoning Commission reported having considered the matter of the request from Wayne N. Stark on behalf of 1600 Central Avenue partnership for final approval of the plat of Birkholz 6th Addition to the city of Grand Forks, North Dakota (located in the northeast corner of the intersection of South 42nd Street and 24th Avenue South), and recommended final approval subject to special conditions shown on or attached to the review copy and passage of the ordinance amending the Street and Highway Map.

It was moved by Council Member Hagness and seconded by Council Member Babinchak that this recommendation be and is hereby approved. Carried 10 votes
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affirmative.

Upon call for the question of adoption of this ordinance and upon roll call vote, the following voted "aye": Council Members Beach, Polovitz, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Hafner, Hagness - 10; voting "nay": none. Mayor Owens declared the ordinance adopted.

ADOPT ORDINANCE NO. 3679, GRANTING EXTENSION
TO FRANCHISE AGREEMENT WITH NODAK ELECTRIC
COOPERATIVE FOR ELECTRICAL DISTRIBUTION SYSTEM

An ordinance entitled "An ordinance granting an extension to the franchise agreement between the city of Grand Forks and Nodak Electric Cooperative for an electrical distribution system", which had been introduced and passed on its first reading on September 2, 1997, was presented and read for consideration on second reading and final passage.

Council Member Hafner asked to be excused from voting on this matter. It was moved by Council Member Hagness and seconded by Council Member Babinchak that Council Member Hafner be excused from voting on this matter. Carried 9 votes affirmative.

Upon call for the question of adoption of this ordinance and upon roll call vote, the following voted "aye": Council Members Beach, Polovitz, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Hagness - 9; voting "nay": none; Council Member Hafner excused from voting. Mayor Owens declared the ordinance adopted.

ADOPT ORDINANCE NO. 3680, AMENDING SECTION
6-0416 (1)(A) OF THE CITY CODE RELATING TO
OVERTIME COMPENSATION

An ordinance entitled "An ordinance amending Section 6-0416 (1)(A) of the Grand Forks City Code relating to overtime compensation", which had been introduced and passed on its first reading on September 2, 1997, was presented and read for consideration on second reading and final passable.

Upon call for the question of adoption of this ordinance and upon roll call vote, the following voted "aye": Council Members Beach, Polovitz, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Hafner, Hagness - 10; voting "nay": none. Mayor Owens declared the ordinance adopted.

COUNCIL MEMBER BEYER EXCUSED

HOLD PUBLIC HEARING ON APPLICATION FOR TAX
EXEMPTION, DESIGNATION OF CERTAIN COMMERCIAL
PROPERTIES AND APPROVE AGREEMENTS WITH BALTIC, LLP

The city auditor reported that a public hearing had been scheduled for this evening for the purpose of conducting a public hearing on a tax exemption within the city, the designation of certain commercial properties therein and the approval of agreements between the City and Baltic, LLP, its successors or assigns, as the owner of the commercial properties, all in accordance with the North Dakota Urban Renewal Law, NDCC, Chapter 40-58, that the proposed develop-ment or renewal area is Lot 2, Block 1, Baltic First Resubdivision (located at the intersection of 2nd Avenue North and North 3rd Street), and that the activities and services of the industrial or commercial enterprises proposed for the development or renewal area may compete with activities and services of other business enterprises within the city, and further that to date no protests or grievances had been filed with his office.

Mayor Owens called upon the audience to see if there was anyone present who had
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comments to make on this matter. There were none.

It was moved by Council Member Glassheim and seconded by Council Member Sande to declare an insufficiency of protest on the application for tax exemption. Carried 9 votes affirmative.

Howard Swanson, city attorney, reported that this matter has previously been before the council and the council has approved the tax increment district calling for the sale of general obligation bonds, and what is being proposed is that the council approve and authorize proper City officials to enter into an agreement which would substitute increment tax exemption for the sale of the bonds. Mr. Swanson reported that the City will not be selling the general obligation bonds but for the same period of time that the bonds would be outstanding they will receive a tax exemption and is the same as what we have done in other tax increment areas (can either publicly sell the G.O. bonds or give tax exemption and removes from obligation of the City and it will have benefit of whatever exemption might be in existence for the term not to exceed 15 years.) He also noted that the exemption is only on the increment, that tax will still be paid on the existing value prior to improvement.

COUNCIL MEMBERS HAMERLIK AND BEYER RETURNED

It was moved by Council Member Hafner and seconded by Council Member Glassheim to approve and authorize proper City officials to enter into an agreement which would substitute increment tax exemption for the sale of the bonds. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Hamerlik, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Hafner, Hagness - 11; voting "nay": none. Mayor Owens declared the motion carried.

ADOPT RESOLUTION VACATING VARIOUS EASEMENTS
AND 7TH AVENUE NORTH AND SUNLAND WEST AVENUE
R/W AS PLATTED AND DEDICATED ON THE PLAT OF
SUNLAND WEST SECOND RESUBDIVISION AND ALL OF
10TH AVENUE NORTH BETWEEN NORTH 52ND AND 55TH
STREETS

The city auditor reported that pursuant to instructions by the city council after having received a petition to vacate all utility easements, sidewalk and utility easements, 7th Avenue North and Sunland West Avenue rights of way as platted and dedicated on the plat of Sunland West Second Resubdivision and all of 10th Avenue North being bounded on the west by the extension of the east right of way line of North 55th Street and bounded on the east by the extension of the west right of way line of North 52nd Street as platted and dedicated on the plat of Rydell-West Subdivision, the required legal notice had been published calling for a public hearing to be held this evening, and further that no protests or grievances had been filed with the auditor's office.

Mayor Owens called upon the audience to see if there was anyone present who had comments to make on this matter. There were no comments and the hearing was closed.

It was moved by Council Member Sande and seconded by Council Member Polovitz that we find and determine an insufficiency of protest to the proposed vacation. Carried 11 votes affirmative.

Council Member Hagness introduced the following resolution which was presented and read: Document No. 7364 - Resolution.

It was moved by Council Member Hagness and seconded by Council Member Babinchak that this resolution be and is hereby approved. Carried 11 votes affirmative.

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DETERMINE INSUFFICIENCY OF PROTEST ON
PAVING PROJECT NO. 4660, DISTRICT NO. 552

The city auditor reported that the period for filing protests on the resolution of necessity for the improvements in and for Paving District No. 552, Project No. 4660, paving portions of 11th Avenue South, South 40th Street, 15th Avenue South, South 38th Street and 14th Avenue South, had expired on September 11, 1997, and that he had received no written protests.

Mayor Owens called upon the audience to see if there was anyone present who had comments to make on this matter. There were none.

Council Member Beyer introduced the following resolution as to protests which was presented and read: Document No. 7365 - Resolution.

It was moved by Council Member Beyer and seconded by Council Member Hafner that we do hereby find and determine an insufficiency of protest against Paving District No. 552, Project No. 4660, as no protests were filed, and further that the resolution be and is hereby adopted. Carried 11 votes affirmative.

RECEIVE TABULATION OF BIDS, ESTIMATE OF TOTAL
COST AND AWARD CONTRACT, PAVING PROJECT NO.
4660, DISTRICT NO. 552

The city auditor presented and read tabulation of bids which had been received and opened on September 8, 1997 for Paving Project No. 4660, District No. 552, paving on portions of 11th Avenue South, South 40th Street, 15th Avenue South, South 38th Street and 14th Avenue South, indicating that Nodak Contracting was the low bidder based upon their bid in the amount of $457,025.00: Document No. 7366 - Bid Tabulation.

The city engineer's estimate of total cost on Paving Project No. 4660, District No. 552, in the amount of $581,000.00, was presented and read.

Committee No. 3, Public Service, reported having considered the construction bids for Project No. 4660, District No. 552, paving Johnson's 4th Addition, and recommended that we accept the low bid of Nodak Contracting in the amount of $457,025.00.

It was moved by Council Member Hafner and seconded by Council Member Hagness that this recommendation be and is hereby approved. Carried 11 votes affirmative.

Council Member Hafner introduced the following resolution which was presented and read: Document No. 7367 - Resolution.

It was moved by Council Member Hafner and seconded by Council Member Hagness that this resolution awarding the contract for Paving Project No. 4660, District No. 552, to Nodak Contracting be and is hereby adopted. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Hamerlik, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Hafner, Hagness - 11; voting "nay": none. Mayor Owens declared the resolution adopted and the contract awarded.

ADOPT FINAL BUDGET FOR THE CITY OF GRAND
FORKS FOR 1998 AND ANNUAL TAX LEVY

The city auditor reported that a notice calling the attention of the general public to the fact that the final budget of the City of Grand Forks, North Dakota for the year ending December 31, 1998 would be presented to the city council on Monday, September 15, 1997 at 7:00 o'clock p.m. at which time anyone interested might be heard, had been published as required; and presented the final budget of the City of Grand Forks for the period ending December 31, 1998.
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Mayor Owens asked for comments from the audience and from the council; there were no comments and the hearing was closed.

It was moved by Council Member Klave and seconded by Council Member Hamerlik to declare an insufficiency of protest on the budget. Carried 11 votes affirmative.

It was moved by Council Member Beyer and seconded by Council Member Carpenter to approve the adoption of the resolution of annual appropriation bill and tax levy and to introduce the following resolution adopting the budget: Document No. 7368 - Resolution.

Upon call for the question of adoption of the resolution and upon roll call the following voted "aye": Council Members Beach, Polovitz, Hamerlik, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Hafner, Hagness - 11; voting "nay": none. Mayor Owens declared the motion carried and the budget adopted.

REPORTS OF OFFICERS

The city auditor presented the cash balance report for the period ending July 31, 1997. It was moved by Council Member Beyer and seconded by Council Member Babinchak to receive and file the report. Carried 11 votes affirmative.

REPORT OF ZONING ADJUSTMENTS

A communication from Bev Collings, secretary, Board of Zoning Adjustments, was presented and read stating that the Board had held a public hearing in City Hall on Thursday, September 4, 1997, that notice had been published as required and that the following appeals were heard: 1) Dale and Tammy Jo Griggs, 1602 2nd Avenue North, request for variance to the accessory building requirements, with variance approved allowing 1,056 sq.ft. of accessory building area; 2) James Cooley, 1111 Walnut Street, request for variance to the accessory building requirements to erect an addition to an existing garage, with variance approved allowing 1144 sq.ft. of accessory building area; 3) Patricia Deraney, 1704 11th Avenue South, request for variance to the accessory building and side yard set-back requirements to construct an addition to the home, with variance approved allowing no less than two feet separation between existing detached garage and new addition to home and no less than a two foot and six inches side yard setback to the new addition; and any required fire separation must be installed on the required walls of the existing garage and new addition to the home; 4) John Herz, 1019 22nd Avenue South, request for variance to the accessory building require-ments to erect an addition to the house, with variance approved allowing no less than nine feet between the existing detached garage and the new addition to the home, because the existing detached garage is only 3 feet to the side property line, and any required fire separation must be installed on the required walls of the existing garage and new addition to the home; 5) Jerry Bolessi on behalf of McDonalds Corporation, 1125 South Washington Street, request for variance to the impervious surface area and landscaping requirements to erect a restaurant, with variance approved allowing the parking setback to be no less than two feet and to eliminate the landscaping/bufferyard requirements on the side and rear yards; and 6) Duane St. Yves, 2113 11th Avenue North, request for variance to the accessory building requirements to erect a new detached garage, with variance approved allowing 1,029 sq.ft. of accessory building area to construct a new detached garage.

It was moved by Council Member Polovitz and seconded by Council Member Glassheim that this report be and is hereby received and filed. Carried 11 votes affirmative.

APPROVE BILLS

Vendor Payment Listing No. 97-14, dated September 15, 1997, and totaling
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$5,464,432.79, all having been audited by the city auditor for payment in accordance with regulations, was presented and read.

It was moved by Council Member Carpenter and seconded by Council Member Sande that these bills be allowed and that the city auditor be authorized to issue warrants in payment of the same. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Hamerlik, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Hafner, Hagness - 11; voting "nay": none. Mayor Owens declared the motion carried and the bills ordered paid.

APPROVE ANNUAL AUDIT FOR 1996

The Finance Committee reported having considered the matter of Comprehensive Annual Financial Report for year ended December 31, 1996, and recommended to approve the Comprehensive Annual Financial Report and to approve payment on the contract subject to final review by the State Auditor's Office.

It was moved by Council Member Babinchak and seconded by Council Member Carpenter that this recommendation be and is hereby approved. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Hamerlik, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Hafner, Hagness - 11; voting "nay": none. Mayor Owens declared the motion carried.

AUTHORIZE CALL FOR SPECIAL ELECTION IN WARDS
2 AND 3 FOR NOVEMBER 4, 1997

The Finance Committee reported having considered the matter of process for calling for special election, and recommended that we call for special election in both Wards 2 and 3, with petitions to be submitted by September 30 and call for election on November 4.

It was moved by Council Member Babinchak and seconded by Council member Carpenter that this recommendation be and is hereby approved.

The city auditor reported on status of petitions, received today, for Third Ward with 138 signatures on the petitions calling for an election to fill Council Member Bruce Hanson's seat, and of those signatures only three would be technically valid.

Mr. Swanson reported that the city auditor provided him with copies of the petitions and the vast majority of those signing the petitions did not include within the petition their full address, omitted the city of Grand Forks, and despite that technical glitch it appears that the motion passed by the finance committee would still call for and provide for an election, but based upon prior rulings from his office on previous petitions submitted to the City, it does require the identification that the address is within the city of Grand Forks for each individual signing the petition and consistent with Secretary of State's rulings.

After some discussion Council Member Hamerlik stated that if no outcry for an election in Ward 2, and as four months have gone by, moved to delete Ward 2 from the motion; Council Member Polovitz seconded the motion.

The city auditor reported that he had received communication from James Garlough that he was interested in running for seat in Ward 2.

There was discussion re. length of terms for vacant seats in Wards 2 and 3; Mr. Swanson reported that if they called for special election, that election would be to serve the balance of the remaining term, whether held this fall or next June. Mr. Swanson reported that the council has the authority to call for a special election without petition, and under terms of Statute those terms would
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September 15, 1997

come forward next June but only to fill balance of those terms. He also noted that the 15-day time period for citizens to call for an election has expired unless council were to appoint a member to serve until next election, that appointment would trigger new 15-day period to submit petitions, and would require council to call an election, however, the members of the ward may submit a non-binding petition to persuade council to call for an election. He also reported that any election must be held more than six months before your next regularly scheduled election. Mr. Swanson advised that if they don't act this evening, wouldn't provide sufficient time for Ward 2.

After further discussion and upon call for the question on the amendment, and upon roll call vote, the following voted "aye": Council Members Polovitz, Hamerlik, Beyer 3; voting "nay": Council Members Beach, Glassheim, Carpenter, Sande, Klave, Babinchak, Hafner, Hagness - 8. Mayor Owens declared the amendment defeated.

Upon call for the question on the original motion and upon roll call vote, the following voted "aye": Council Members Polovitz, Hamerlik, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Hafner, Hagness, Beach - 11; voting "nay": none. Mayor Owens declared the motion carried.

APPROVE REQUEST FROM THE EDGE TO HOLD
OCTOBERFEST IN DOWNTOWN ON SEPTEMBER 26-27

The Public Safety Committee reported having considered the request from The Edge to hold Octoberfest on September 27 in downtown Grand forks and blocking of North 3rd Street, 100 block, and recommended approval of the request for September 26 and 27, including use of city parking lot, establishing beer garden and with noise variance to 12:30 a.m., subject to coordinating the event with the police department.

It was moved by Council Member Glassheim and seconded by Council Member Sande that this recommendation be and is hereby approved.

Council Member Sande reported that it has come to her attention that The Edge didn't get building permit and owner has number of other buildings downtown, no objection to approving this request, but wants council to be aware of this and not dealing with owner on other issues, and are requesting him to get building permits.

Upon call for the question and upon voice vote, the motion carried 11 votes affirmative.

APPROVE REQUEST FROM HAPPY HARRY'S BOTTLE
SHOP TO MOVE LICENSE TO NORTHWEST CORNER OF
GATEWAY DRIVE AND NORTH COLUMBIA ROAD

Committee No. 2, Public Safety, reported having considered the request from Happy Harry's Bottle Shop, 2215 Gateway Drive, to move license to northwest corner of Gateway and North Columbia Road, and recommended approval of the request to move the location of the retail liquor license.

It was moved by Council Member Glassheim and seconded by Council Member Sande that this recommendation be and is hereby approved. Carried 11 votes affirma-tive.

AUTHORIZE EMERGENCY REPAIRS AT WATER RECLAMATION
PLANT

Committee No. 3, Public Service, reported having considered the matter of emergency repairs at water reclamation plan, and recommended approval of request