Committee Minutes

MINUTES/FLOOD RESPONSE COMMITTEE
Wednesday, November 5, 1997 - 5:00 p.m.

I. Call to Order:
Members present: Hafner, Glassheim, Bakken, Carpenter.

III. Matter of flood protection study update.
Christi Stonecipher reported that the Corps' contractor, SCH and subcontractors are continuing to do study work in rural areas on diversion, are continuing to do more work on hydraulics on dike plan in town; that City starting series of neighborhood meetings where talking about long-term Corps plan and also short-term flood protection plan which was presented to council on October 6. She reported that the newsletter re. flood protection update at the printers, will be going in the mail tomorrow and will be available at all these meetings; they will be sending newsletter with updates out every two weeks. She reported there is meeting of rural resi-dents on Sunday in Thompson, Chuck Grotte will be representing the City, if need follow-up meeting will arrange later. She stated that they still plan to have preliminary dike and diversion align-ments available sometime in December and will be scheduling several open houses and informational briefings for the officials at that time. She stated in the neighborhood meetings they will emphasis short-term flood protection plan, which includes primary and secondary lines of defense for next year and coming years (will have maps at neighborhood meetings). Info. only.

II. Matter of FEMA update.
Lori Hassel introduced herself to the committee, that she is replacing Steve Pratt as City's liaison to FEMA.

IV. Matter of Change order No. 1 for Proj. 4697, Flood Pumping
Stations at DeMers Ave. and N. Columbia Road.
Al Grasser, asst. city engineer, reported this is in refer-ence to two pump stations bid for flood hazard mitigation, one at DeMers and Riverboat Road, and the other on North Columbia Road. He reported that they have been notified by Molstad Excavating, low bidder in the amount of $329,480 (electrical bid going to Hansen Electric), that he made a mistake in the bid, didn't include price of the pumps, that they reviewed documentation substantiating the fact that he made error in putting bid together, that there are provisions in Standard Specifications for correction of an obvious error and Molstad is asking to be allowed to make correction. He stated they have done this in the past, with correction made before award of bid, but because of fast track nature of this bid, opened in afternoon and went to committee and council the same evening. He stated that Molstad is asking for the material cost of the pumps to be included in the project (no mark-up and no profit); change order in the amount of $76,582 and their recommendation is to approve change order which allows Molstad to recoup those costs. It was also noted that ICS was second low bidder in the amount of $455,700, that even with correction Molstad still low. Mr. Grasser noted if they don't approve change order, wouldn't have for next year in event of another flood, and would have to lease portable
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pumps. Moved by Carpenter and Glassheim to approve the change order in the amount of $76,582.00. Motion carried.

V. Matter of Phase III buyouts.
John O'Leary reported they are in the process of inspecting houses in Phase III, general rule is if property has more than 75% damage on lot smaller than 50 ft. and has assessed valuation prior to the flood of $45,000 or less, will offer buyout and letters will go out this week, if committee in concurrence. He reported that those properties between 50-75% damage are being inspected to determine whether salvageable, if not, then letter go out to them, if salvageable, property referred to Victory Program for assistance in rehabbing of homes. He reported there are approx. 160 houses in Phase III, about half in first category for buyouts. He stated that those between 50-60% are probably rehabable, and Victory volunteers working with those households. He stated it is also intent to contact homeowners who have proceeded with rehab (that at previous council meeting have approved grants up to $15,000 for those homeowners in Phase III who have already accomplished their rehab after the flood), and if they are able to provide receipts and documentation that the houses have been repaired, they will proceed with processing grants up to $15,000 without duplication. Staff doing determination of duplication of program allocations. It was noted that the Council approved $5 million in the cost matrix, that there is $20 million in matrix for rehab and some of that available through Victory Program to buy materials. Mr. O'Leary reported there are enough funds ($5 million) to do first buyout, don't know how many in grey area will be bought out, and if many more candidates for buyout then $5 million not enough and will be able to give firmer number when inspections completed (68 in first category, $4.8 million). Mr. O'Leary reported there are number of home in Phase II that are rehabable and some of these lots candidates for relocating homes out of floodplain or dike alignment. He noted they are inventorying houses and lots, wouldn't put on 50 ft. lots, staff is doing inspection. He reported that staff is doing environmental inspections of housing, winterizing and securing buildings (shutting off water, boarding up windows, etc.) and give them more time to do more detailed strategy on how to relocate houses that are rehabable; they are letting bids for demolition of houses that know will be demolished. Info.only.

VI. Matter of demolition of bought out properties.
Mr. O'Leary reviewed report prepared by Dennis Borowicz, who has inventoried houses and secured them for the winter (all util-ities shut-off), that City has initiated its buyout program and has acquired 61 properties to date, with 17 already demolished because of unsafe conditions; and listed information re. procedure each house goes through once it is bought out (inventories, utilities shut-off, etc.). He reported that Mortenson will be handling the administration of the demolition of these properties, and will bid 20-25 houses per package, that it is not intention to burn
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buildings but have debris hauled to the landfill. Info. only.

VII. Matter of property insurance for buildings to be bought out
by City.
Doug Johnston, Froehlich, Paulson & Moore, stated he wanted to bring to committee's attention that some of the properties in commercial area downtown, that once insurance companies know they are vacant buildings in the buyout and condition they are in, only one market that will provide basic fire and extended coverage endorsements, would like committee take under advisement to make recommendation to council that since property going to be bought out, that the value of that property isn't reduced by subsequent losses, and property owners wouldn't have to buy expensive insur-ance and City wouldn't have to deal with insurance company in AZ in buying that property; asked that value of property be established and not reduced by any subsequent loss. Committee stated that if building going to be bought out makes sense, but if not then City assuming risk of current owner. Moved by Bakken and Glassheim to refer this matter to the Tri-chairs. Motion carried.

VIII. Matter of public safety communications and 911 infrastructure
repairs and costs. Pete Eggimann, PSAP, reported they are in the process of putting radio/telephone equipment back in place in the 911 Communi-cations Center, the radio consoles in place but some base stations that need to be replaced, and are advertising at this point and asking for quotes on base station equipment; last big item they need to put in place is telephone equipment and have 3 quotes in hand; that the $128,000 quote includes some equipment that would be used in the police building and not strictly 911. He noted that the other two quotes, for $116,545 and $120,300, do not include any equipment for the rest of the building. He reported that they operate out of two budgets, one budget is divided into percentages based upon amount of use in the communications center (City's portion is 70%, County 18% and UND 10-11% and small percentage from the 911 surcharge money); the other budget they operate out of is supported by 911 surcharge money (this fund is one they normally fund replacement equipment from and is what they have done for consoles). He reported they don't have sufficient cash carryover nor is there anything left over in 911 surcharge to adequately address these items; that if they have to fund from this budget, would have to eliminate other things - rural signing, etc. and would eliminate everything for a number of years down the road. It was noted that FEMA would assist in the amount of $78,000, but that they are appealing that, that David Griffith participating in the appeal and are in the first step of that appeal.

Moved by Carpenter and Glassheim to allocate up to $100,000 of CDBG funds to cover difference in cost of equipment. Motion carried.

IX. Matter of voucher program.
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Jerry Hamerlik, council member Second Ward, explained request, that this past weekend two citizens contacted him and showed him copy of voucher system, two page memorandum, that intent of program was that those who were bought out were going to receive $10,000 or $15,000 if purchased or built elsewhere in the city, that the intent of the memorandum and attachments was to make sure there wasn't a duplication of benefits and was very clear, but something else has to be done. He stated that the 2-page memo tells what can't do - can't buy home, can't buy land, etc.; and these individuals misinterpreted and were afraid they didn't qualify; and asked Mr. O'Leary if willing to explain further, either through another memorandum, etc. Mr. O'Leary reported that last week they sent letter out to everyone participating in the buyout, informing them of the voucher program (cover memo outlining program and 3-4 page explanation of the program), and part of the reason for confusion, is City's attempt not to duplicate other federal programs; and will continue efforts to clarify program to everyone involved. He stated that if you're participating in the buyout program and if buy another house in Grand Forks, you're eligible for $10,000 voucher if buy existing house and eligible for $15,000 voucher if buy a new house; that the conditions between HUD and SBA that if you received an SBA loan and received voucher prior to closing on your property, SBA will consider it a duplication of benefits and have tried to make that clear. He stated it's in best interest of City and homeowner to understand that if you use this $10,000 to buy another house, SBA will declare it a duplication of benefits. Mr. O'Leary stated intent was to help homeowner and to encourage people to purchase another house in Grand Forks, only those participating in buyout received letter. He stated that they stressed a lot of negatives in the letter because they wanted to make sure that the families understood that if money used to buy real estate would be a duplication of benefits, can use for almost anything except buying real estate, copy of letter distributed. He also reported that they will give another memorandum at the time they close on their property. He noted that for those individuals not using SBA funds to buy property (using equity in their houses and going through private lender), they can use money to do real estate transaction even though they don't get money until after closing on their new house. He stated they wanted to make sure that people not making themselves ineligible. Hamerlik asked if something can be done to assist those who are counting on the $10-15,000 to apply to their house even though not receiving until after purchase, including in their budget for use in making pay-ments after purchase. Mr. O'Leary stated they could do follow-up memo.

X. Matter of Central Business District Rehabilitation Grant
Program.
Glassheim stated this was inquiry as to status of the program. Mr. O'Leary distributed final draft of the commercial rehab grant program. He stated that they allocated $5 million to
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this program with graduated steps of $10, $20, $50 per sq.ft., there have been some contacts to the office about 8-10,000 sq. ft.
structures which mean they could put as much as half million into a single building and whether council wishes to do that, if that's best way to administer program is one of the questions they had for committee. He reported that he has suggested change - to cap the amount of money to any single storefront at $250,000. He noted that there are probably 10-12 buildings downtown that involve 8400 sq.ft., and difficult in downtown location to get 8400 sq.ft. of active commercial space because of cost, however, if divided 8400 into several bays, is a realistic possibility. Hafner stated that he is reminded by those not downtown that they're not receiving anything, want to encourage but not over-grant. Mr. O'Leary stated they have taken liberty to amend/clarify regulations, that it has to be active sq.ft. in retail. Carpenter stated that when originally talked about, this was to rehab about 100,000 sq.ft. downtown and that's where $5 million total allocation came from. Mr. O'Leary stated that he was hoping if dropped cap to $250,000 and by ratcheting down cost per sq.ft. for lesser uses, ie., office space, would be able to rehab into broader area in central business district (ie., old fire hall, etc.) He also noted that council approved 15% match for retail space, but a $ for $ match for office space, and no match for non-transactional establishments, and it's staff suggestion that they have some uniformity between the three categories and have 15% for all of them; that wouldn't change retail space, drop match for office/businesses from $ to $ to 15%, but increase non-transactional establishments from zero match to 15%. Glassheim expressed concern if reduce to $250,000, could spend all on 20 operations and possibly encourage small retail and make pool rather than first in first out, no choices, and perhaps time period for application and reduce cap to $150,000. It was noted there is no sunset on this program as $5 million get expended. Mr. O'Leary reported there is lot of interest in this program, liked Carpenter's suggestion to expend $2.5 million on first in, and pool $2.5 million and start processing aps. and get funds out. Mr. O'Leary stated that there is one part not included in the ap - downtown design guidelines, and have asked consultant to assist, uniform storefronts, consultant has draft, and suggested setting up a 3-person design panel to work in conj. with staff, panel review or make modifications and through historical review process, provide assistance and what guidelines are.

Mr. O'Leary stated they would be requesting business plan for new business, some history for existing aps, staff review and make recommendation re. dollar amount of assistance, applicants need to comply with guidelines. Hafner stated they should include match for non-transactional establishments as well.

Carpenter moved adoption of the administrative guidelines with change that would require 15% match for non-transactional establishments and allocate money in two separate pools, $2.5
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million for immediate potential award and $2.5 million for which they would take aps. until February 28, 1998, with award soon
thereafter; Glassheim seconded the motion. Motion carried.

Glassheim questioned whether they should lower the $250,000 cap; Mr. O'Leary stated remote to expend on one building and have ability to focus resources on target industries and that $50 sq.ft. ceiling also.

XI. Matter of cost matrix allocations for central business
district.
Glassheim stated he was uncertain whether attempt to get certain amount packaged/targeted for the downtown area in the cost matrix so everyone knows upfront what's what, or let things come in piecemeal, that funding for general improvements should be higher, thought 15%-20% of funds should be for CBD, have approved $19 million, should be somewhat higher and should adopt so that DDC knows amount of funding available.

Mr. O'Leary reported that there are several line items done on estimates, that potential of 46 buildings eligible under acquisi-tion program and having buildings appraised, based $6 million on what they thought buildings worth early on, and suspect higher; CBD general improvements at $3 million; when they came up with $19 million budget, it's preliminary. He stated he is interested in what allocated in downtown projects, and DDC would like firm budget. He reported that Dick Olson and his office did good job in leveraging $5 million for Corporate Center into a $16 million project at little risk to the City and contributes to the tax base, don't know future parking requirements which is dependent upon sq. ft. of office, etc., and may be need for additional money, and will know better in coming weeks. Mr. O'Leary stated his suggestion is to perhaps come back when DDC appointed and ask them to come up with a firm program on general improvements in downtown area and that will give better focus of what needed, also cost of Corporate Center. Glassheim stated that in matrix only $13 million unal-located; Mr. O'Leary reported that includes number of projects not approved by council. Glassheim stated $13 million remaining in contingency and asked if this would be used up by other projects and not know how much available for downtown except for $19 million allocated. Mr. Schmisek reported there is $13 million in con-tingencies and $l4.3 not included in matrix. Info. only.

XII. Matter of VICTORY Program update.
A rep. of WRC reported that for the month of September and part of October, 5900 hours of volunteer labor, completed 11 homes, worked in 3 churches and in process of completing daycare for Holy Family Catholic Church; have had 250 volunteers coming into town, most responded after council provided housing; using skilled people and that's why don't get through as many homes as some others, but when leave a home it's completed, have commitment from 60-70 MINUTES/FLOOD RESPONSE COMMITTEE
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volunteers before Thanksgiving to be here, all skilled people, can't vouch for other organizers, tabulated quite few hours into the community. The rep. reported they receive work recommended for construction that has gone through case work, has office at Victory office, all relief organizations in town are working in that fashion, going through case work. Committee thanked him for the report and for what they are doing.

XIII. Other business:
a) Richard Fuller, 1117 29th Avenue South, submitted draft of proposal to provide comprehensive, reliable and timely "snapshot" re. flood recovery to individuals and businesses considering locating into this city, information for residents of the city, and suggested putting on web-site, E-mail, etc. Hafner noted that we have web-site in the city, and hope that we can accommodate this.

Committee referred the matter to the Tri-chairs.

Tom Mulhern, Public Info Center, reported that Pete Haga of Info. Center working with Corey Stevens, Economic Development, and two students from UND to update flood page on city's web-site to get information out nationally about recovery, so that is in process right now. Information.

b) Tom Hanson, Webster, Foster & Weston, presented the matter of change order from Hansen Electric in the amount of $8,500, for Lift Station #83 (S. Wash. St. underpass), to lower electrical service and put underground because of problems with getting equip-ment (cranes) in and getting into problems with RR. He stated they will try to get FEMA funding. Moved by Bakken and Carpenter to approve the change order. Motion carried.

c) Kevin Dean, Info Center, reported that Info Center con-ducted informal survey of approx. ten contractors in the area, and they have determined that there are still approx. 125 furnaces yet to be installed, that is down considerably from couple months ago, and contractors saying approx. another week to ten days to complete that work. Committee asked if there were any out there that they didn't know about, and Mr. Dean stated that if anyone knows of anyone, to please call the Info Center.

d) Matter of bids for removal of debris on burned out pro-perty - with power to act. Mr. O'Leary reported that Curt Siewert has been working with Mortenson in doing this in a different way, that they had a flat bid from contractor for $290,000+ to remove debris from those sites, that Mr. Siewert suggested that the Office of Urban Development propose to have the debris removed by the fol-lowing method: that all quotes would be taken from local contrac-tors at hourly rates and for all equipment, and would be accepted on lowest rate and on availability of equipment, that the debris would be hauled to landfill and the returning truck would load clay MINUTES/FLOOD RESPONSE COMMITTEE
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from the Congressional Resub. (because of streets being con-structed) and haul back to site. Mortenson would be contracted
with to manage the project, and believes City can do for lesser amount.

There was some discussion re. Guard doing this project, and Mr. O'Leary noted that the Guard has looked at and has some reserva-tions whether they have capability to do. Bakken suggested whether getting Guard involved, drivers/trucks. Mr. O'Leary stated that would leave door open for Guard to get involved. Mr. Swanson advised that committee doesn't have to accept or reject offer from National Guard.

Moved by Bakken and Glassheim to adopt plan as proposed by Urban Development. Motion carried.

Moved by Glassheim and Bakken to adjourn; meeting adjourned at 6:40 p.m.

Alice Fontaine
City Clerk

Dated: 7/10/97.