Committee Minutes

MINUTES/FLOOD RESPONSE COMMITTEE
Thursday, May 29, 1997 - 5:00 p.m.

Members present: Hafner, Bakken, Glassheim, Polovitz.

1. Matter of additional temporary authority for Tri-Chairs and Flood Response Committee.
2. Matter of temporary relaxation of certain City bidding re-
quirements.
John Schmisek, city auditor, presented proposal involving these items, and stated that he found that during flood certain authorities given, and if wish to move quickly for flood recovery items only asked for approval of proposal covering purchases and bidding requirements. John O'Leary spoke in favor of the proposal. Mr. Swanson advised that the Governor has waived bidding require- ments by executive order, not sure how long they will have that ability, once Governor determines emergency over and reinstates statutes, wont have this type of timeline, and has no problem with the recommendation. Mr. Schmisek stated this will be on-going and will report to council what is being spent.

Moved by Glassheim and Polovitz that we approve purchasing authority for flood recovery items only as follows: 1) Tri-Chairs up to $50,000; 2) Flood Response Committee up to $250,000; and 3) City Council over $250,000; and approve bidding requirements for flood recovery items only as follows: 1) bidding minimum timelines of 24 or 48 hours are allowed; and 2) competitive quotations are allowed; with a three-month sunset requirement, that expenditures by the Chairs be reported at next available council meeting and that items re. bidding be contingent upon the Governor's continuing state of emergency declaration. Motion carried.

3. Matter of the temporary modification of the Planning and Zoning
process.
Mr. LeClerc, acting city planner, reported that Commission could meet twice each month, first and third Wednesdays; that they have changed Code to allow some administrative actions (review and approval of detailed dev. plans in PUD's, site plans, fast track method for minor subdivision plats, etc.), that he doesn't anticipate much of a bottle-neck on Planning items, mainly they are looking at subdivision plats and possibly some rezoning, but not sure how fast they would be coming in, and that would require some notification to property owners, etc. and that is required by State law. He stated they are short one staff person and no overtime in their budget; but are making attempt to keep up with things. He also noted that items they deal with have long term effect on the city. Glassheim stated that things they are concerned with now are developing new areas of land, platting new subdivision, rezoning, and asked if that could be changed. Mr. LeClerc stated that there are lot of subdivision plats approved and lots approved which are zoned, that City doesn't own any of the land and it's landowner or developers call as to what they want to do. Mr. Vein stated that they wanted some general discussion as to what the committee saw as a goal to proceed, need Mr. Swanson's input; but if City were to
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develop a new subdivision, would want to do it quickly and would want process in place. Mr. Swanson advised that steps are being taken and is being looked at. Held in committee.

4. Matter of tax exemptions for new construction.
Mr. Schmisek reported that this had been changed on April 7 when council discussing affordable housing issue, that the way it was approved was on a city-wide basis, on a graduated scale for the two-year tax exemption of $75,000 for houses up to $100,000 value, and $50,000 exemption on houses from $100,001 to $125,000, and the Tri-Chairs are recommending to eliminate the property tax exemption on new constructions because they believe they need to rebuild the tax base as quickly as they can, that they are looking at other programs that will help individuals moving into low or moderate income housing, so their recommendation is to eliminate the two-year tax exemption. Mr. Swanson advised that they cannot do retroactively, and for convenience sake to set specific date. Mr. Hafner asked if they could put together some figures as to what it could cost City so they will understand why this is being done. Glassheim asked how council would respond to the emotional argument, that now rebuilding because of flood, and ask for break. Mr. Schmisek stated that city government needs to continue to operate, these people continue to pay taxes or that would be passed onto neighbors or others in the community. Mr. Swanson advised that the City did reduce building permit fees for flood damaged buildings.

Moved by Glassheim and Polovitz that we eliminate all property tax exemption for new construction beginning after June 10, 1997. Motion carried.

5. Other business:
Member Glassheim presented several items and asked committee to think about and consider at later time:
a) would like Tri-Chairs to consider program assisting small businesses who want to get back in business, pay portion of existing rental - pay difference between rental - past and new.

b) Score Volunteers want to help with Small Business loans program.

c) State Legislative council is meeting Tuesday, June 3, and he is encouraging City to have representative there; Governor with Emergency Commission will report on losses, damages and needs state-wide, and to make sure that City's (and private) losses, etc. are included in that report; and any proposals the City might wish him to present.

d) to submit proposals in writing to him, requesting things they would like State to do for Grand Forks so that he can present - needs to articulate what City might need: things that might help which do not need State to pay us money, and things that State MINUTES/FLOOD RESPONSE COMMITTEE
May 29, 1997 - Page 3

might do to help us which would require State to pay us money. He stated he wanted those to present so show that they do need a special session, even without tax increase. He did not think it advisable to have delegation there.

e) plan for housing and sequence of time-frame, no sense of any new areas opening up and decisions made, stick-built housing or manu- factured homes.

f) Polovitz brought up matter of debris - litter on Interstate from 32nd to Gateway and to landfill is horrendous. Mr. O'Leary reported that kids doing good job on 32nd Ave.S. but leery about putting them on Interstate. Mr. Swanson stated they would need to coordinate with DOT, they may want to do some type of clean-up. It was noted that trucks not tieing up loads; and Mr. Vein stated trucks not properly covered, speed, etc.

g) Glassheim asked for copies of earlier Corps studies to review.

h) Glassheim stated that he would like to look at manufactured home, whih could be put on lot for $45,000; that some residents not able to afford stick-built houses. There was some discussion re. mobile homes and manufactured homes. Some committee members felt that there are some well-built manufactured homes, and are willing to look at. Mr. Vein stated some concern about labor force some place else, some benefit to make stick built homes more affordable (need to take plumbers, mech.installers, etc. into consideration). Mr. O'Leary questioned whether subsidize now or 10 years from now, alternative is to subsidize in more permanent kind of housing stock, lot of good manufactured homes that are attractive and hold value, etc. and should be looking at those. Committee stated they would like to look at.

6. Scheduling of next meeting:
The committee schedule a meeting for Monday, June 2, at 4:30 p.m. to consider Phase I of the buy-out program for recommendation to council Monday evening. The committee scheduled their regular meeting for Thursday, June 5, at 5:00 p.m.

Mr. Vein suggested that council continue to hold their meetings at 5:00 p.m. rather than 7:30; but to go to 7:00 p.m. if not at 5:00. Committee stated that they would rather have entire council consider rather than this committee making a recommendation.

Moved by Polovitz and Bakken to adjourn; meeting adjourned at 6:25 p.m.

Alice Fontaine
City Clerk

Dated: May 30, 1997.