Committee Minutes

MINUTES/FLOOD RESPONSE COMMITTEE
Wednesday, December 10, 1997 - 5:00 p.m.

I. Call to order: Hafner, Bakken, Polovitz, Carpenter, Glassheim.

II. Matter of FEMA update.
Lori Hassel, FEMA, reported she is going to be leaving town for three weeks and introduced Phil Forness, reservist from South Dakota, telephone numbers will be the same.

III. Matter of non-profit update.
Cynthia Bates Schaefer, R.A.F.T., reported this is a consor-tium of non-profit agencies, Salvation Army, United Lutheran Disaster, United Methodist Committee and Relief and Catholic Family Services, that have banded together in the past six months to pool their resources and provide both construction and casework ser-vices. She stated she is a case consultant for the caseworkers. This is program that will be providing workers for the Phase III program, at the present time, working with old and new applicants who have basic unmet needs because of weather disasters in both North Dakota and Minnesota. It was noted that Victory is a separate organization and provide casework for Victory clients.
She stated that this is a program and communities who suffer future
disasters to see how these communities have worked so coopera-tively. Committee thanked her for their work.

Glassheim present.

IV. Matter of awarding contracts for abatements of bought out
properties.
Dennis Borowicz, Urban Development, that one of his responsi-bilities is management of the inventory being bought out by the City, one of the processes to initiate the involvement re. demoli-tion is to abate environmental hazards and are in the process of doing that and are on Phase I properties (first 90 homes that have been bought out) but did run into situation where there were two addendum to the bid package and are to be included on the outside of the bids; Mr. Swanson reviewed and suggested he bring the bids to this committee, open bids and then award contracts. He also presented bid tabulations from the 3 bid contractors to this point, and would like to deal with those. Moved by Glassheim and Bakken to waiver the minor irregularity and to open the two bids. Motion carried. (Staff will open bids and bring back to committee)

V. Matter of flood protection study update.
Ken Vein, city engineer, reported he doesn't have anything additional to add since review this noon and distributed copies of proposed draft for the Grand Forks/East Grand Forks permanent flood protection project decision making process timeline coming into February, when trying to make decision on February 12 on Corps report. He reported that they will have an update on January 7 and 8 re. release of south end levee alignment. He reported that in February will be doing a joint meeting of both cities re. release of final report, with recommendation on February 17, with question
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and answer sessions for public on February 19, 24 and 25, with final decision on February 26. He stated that this is the process they are going to be pursuing and allow committee to put into their committee here; Lisa will be here from Corps for several weeks; but this is decision making process. Glassheim questioned whether there should be more time with Grand Forks on decision on February 25 and final decision on February 26. Mr. Vein reported that don't want both counties in on both meetings; he also noted that the City of East Grand Forks has already endorsed this plan. Mr. Vein reported there will be major players in every part of this. Information only.

VI. Matter of RFQ for evaluating infrastructure needs in downtown.
Mr. Vein reported that they have been looking at redevelopment in the downtown location, need to go back in and analyze existing watermain, sanitary and storm sewers for contemplated facilities; need to get authorization to hire engineering consultant to do this for the City and use CDBG funds under administrative section in looking at redevelopment of the downtown area, put request out and bring back to committee for final section by the council. He stated they would have to run sizing for new construction, sizing for new construction, hydraulic analysis, and are looking to be done rather quickly; want to make sure underground analysis appro-priate and adequate before redoing paving, etc.

Moved by Glassheim and Bakken to authorize staff to proceed with authorization for RFQ, and to present to committee for selection of the consulting engineer. Motion carried.

IV. Matter of awarding contracts for abatements of bought out
properties.
Mr. Borowicz submitted applications where he had checked off the low bidders and are looking for approval to award the low bids. He reported that one of the bid requirements put into the bid package was any violations, bidding bonds that were required be submitted. Moved by Bakken and Glassheim to accept the low bids as follows: Package 1, 2 and 3: EAS in the amounts of $12,916, $16,400 and $13,146; and Package 4 and Package 5: MAAC Metro in the amounts of $19,750 and $14,900 (for residential environmental abatement). Motion carried.

VII. Matter of purchase of land in the Industrial Park.
Dick Olson, Grand Forks Development Corporation, asked commit-tee to consider the purchase of some additional land in the Indus-trial Park, that they thought they had purchased the last that was available (93 acres) but since then found that Mr. Dunlevy willing to sell 20-30 acres of land (probably closer to 30 acres), and would close out all of the property that is not wet or in pretty bad shape in the Industrial Park area. He stated that since 1994 built buildings in excess of $20 million, yielding about $500,000/ annual in tax revenues to the City, very successful park for the
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City and think to have obligation to the tenants that things not industrial to the park not be built out there. He stated that the Development Corporation bought land, took care of carrying costs, nobody but City rebating taxes, that if buy land and taxes go up, it means that the price the City has to recover for that land goes up every year, only reason to have land in the Park is for economic incentive. He stated that if City buys and sells, works out well for us, that Noah's Ark, etc.; thinks the price is right - that they paid $12,700 for last parcel bought (93) acres and now $13,500 for this property, would like to purchase between 20-30 acres at $13,500, purchase has to be concluded and recorded by the end of the year to get this package put through, they are prepared to buy the land and let the City run through in the normal process and then purchase from them. He stated this is an important enough piece of land to take the risk, $270,000 for the 20 acres, and if 30 acres, $405,000. He noted the land they are looking at is between 10th and 11th Aves. John O'Leary, Urban Development, reported that the Tri-chairs looked at this and concur with recom-mendation that this is wise decision, price is right, access to rail spur and because Industrial Park becoming boxed in, and makes sense for the JDA to purchase. He reported this is not in the cost matrix but if choose to purchase, it would be staff's recommenda-tion to transfer money into this account for purchase of this land in Industrial Park and that money could come out of contingencies. Mr. Olson reported that if Development Foundation buys, they pay taxes but City had been giving them some of the tax money back and City picking up payback for everyone else. It was noted that if the City buys the land, no taxes, but taxes when tenant comes in.

It was noted that money could go back into the BG funds, which will be JDA, and can ask for the money to be returned to the City or other development purposes, at City's discretion. He stated that 51% of the funds need to be used for low and moderate income, but law says 50% and that possibly could be waived from 71% to 51%.
It was noted that the property assessed at $12,700.

Moved by Bakken and Glassheim to approve purchase of the 20-30 acres of land at $13,500/acre with funding from the CDBG Community Development Supplemental appropriations. Motion carried.

VIII. Matter of CBD acquisition policy for the balance of Phase A, B and C.
Mr. O'Leary reported that there are number of parcels in down-town business district that are damaged by the flood, most of which are not historical buildings, but well over 50% because of flood-waters and are in the process of having all of those properties appraised, have discussed targeted areas for rehabbing buildings in Phase I and Phase II, and this is a request for a policy for purchase of buildings destroyed by the flood. He stated that he thought it would be a prudent thing to do because property owners cannot fix without floodproofing them and that's not possible
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because they are low and incurred lot of damage. He reported that as they have these building appraised there's period of time which as appraisals come in, and to let property owners know if City going to buy and how to establish market prices. He reported that there are two options: 1) to offer the pre-flood appraised value, no matter if it is higher or lower than the true and full value as determined by the city assessor's office value; or 2) offer the higher of the pre-flood appraised value or the true and full value as determined by the city assessor's office. He reported that the Tri-chairs looked at this and recommended Offer 2), which is to offer the higher of the pre-flood appraised value. He reported that both offers would be as determined by the city assessor's office and the other if through appraisal; this would be the same as with residential properties.

Moved by Polovitz and Bakken that we approve recommendation 2).

Mr. O'Leary reported that Phase A, B and C more physical district, more district in rehab areas as well as area on North 3rd Street; property owners could object and take post-flood value and go through condemnation process. Mr. O'Leary showed map of area in the district (everything within boundaries along 3rd Street and not in rehab area). He also noted that properties have to be 50% damaged or else would be eligible for rehabbing program. He noted this is a voluntary acquisition program. He stated that if they don't do something with those building, if property owners walk away then waiting for five years. This will allow property owners know what city is doing, that city doing appraisal of all building with more than 50% damage in the CBD, the property owners would be provided with appraised number, compared with taxable value and formal offer made to the property owners; and do not have an appellate procedure.

After further discussion and upon call for the question, the motion carried.

IX. Matter of proposed single family rehabilitation program.
Mr. O'Leary reported that in the past have approved Phase I, II and III and rehab of buildings throughout City and have partnered to contract with volunteers; have been told that volun-teer organizations bringing in from all over the country to fix homes, and don't have resources to purchase different materials; that this is a chance for small expenditures to continue helping citizens by providing some mechanics is how put volunteer agencies. He reported they have proposal to accomplish that - that this is property outside the flood plain with 50% or more damage to their homes and providing grants up to $15,000 for homes salvageable; there are families out there receiving assistance from floodplain and these are families outside the floodplain where working to repair essential workspace. This proposal would provide help to
the volunteer agencies to buy materials to pass materials onto the
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individual families with whom they are working; that Keith Lund is working with the rehab families on Phase III and drafted up this policy which is cost effective way to accommodate need for materials, fiscal note $3 million, with $2,000 in materials to any one family, the impact would be to 1500 to 2000 households. He reported that the acquisition of materials through somewhat like voucher program and volunteers go out to household, determine what's needed, submit a materials listing to staff who would develop cost estimate, the materials could be recognized through the warehouse or purchase from local supplier. He reported that materials would be delivered to the house and hopefully address the needs of those families for essential living spaces. He stated he didn't know whether monies available or not.

Mr. O'Leary reported they have one more issue to cash flow of the warehouse itself, to set aside up to $200,000 out of the $3 million, things they would normally use: sheet rock, drywall screws, glue, etc.; if family was qualified by the volunteers and volunteers qualified to do work as they do now (prioritize, duplication of benefits, etc.) then the family would proceed with working to get houses rehabbed, and as drop dead date is September 30, 1998, is that during course of the summer work down in the summer with huge amount of inventory, but can work with volunteers as to need for work. Bakken reported that this the volunteers negotiated price of vendors and may not make house a whole house but put walls back up, so liveable but not liveable 100%.

Mr. O'Leary reported that this program would not go ahead with rehab as if rehab completed, volunteers trying to leverage work that is free, may not be fair to everyone. These folks outside the floodplain and less than 50% damage; and is part of the Victory program.

Moved by Glassheim and Bakken that we approve the single family housing rehab program. Motion carried.

X. Matter of Office of Urban Development staffing needs.
Mr. O'Leary reported that this request is for two positions: 1) someone to help process the rental rehab applications (have over 200) and individual who worked for DAP program and her time has run out, can get another DAP program but would then have to retrain, etc. and would like to keep this person on until rehab program wrapped on and requesting that position be extended until they finish the program; the second program is running warehouse has been hired by the City to do other duties, and number two person qualified and capable and would to put that person on during the time that the warehouses being managed. He noted positions are Project Delivery Assistant I for rental rehab program, and the other is Warehouse Manager. He noted that both positions had gone through interview process and change in funding than new employees; Mayor and Human Resources also approved.
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Moved by Polovitz and Bakken to approve the staffing needs. Motion carried.

XI. Other business:
a) Matter of SSRI Needs.
Joel Manske, director of Housing, reported he had brought this matter to committee couple months ago re. demographic studies and market analysis where hired Social Science Research Institute to complete for them and staff had some questions about budget justi-fications and cost of study, and the committee asked for better justification. He reported that Mr. Fontaine's salary of $38,000 is down to an appropriate $17,000 but they didn't include in their budget justification 3 research associates who were part of the demographic study and numbers now appear to be accurate. He reported that the study is very much in demand; and asked committee to authorize $76,000 for the study immediately following the flood.
He reported he will have reports ready for the council members.

Mr. O'Leary reported that the report is laced with information very specific with names and addresses so don't compromise confiden-tiality who responded to the report; the report they will receive will be without names/addresses, etc. and that information avail-able upon request.

Hafner reported that this information can be gleaned out of it, and if willing to pay SSRI would they make that information available, so personal information not jeopardized. Mr. O'Leary reported they have completed that process and will compromise jeopardizing and available on Monday. Mr. Swanson reported that the City could charge cost for reproduction costs.

Moved by Glassheim and Polovitz to approve the payment of the study and to include making information available in summary franchise. Motion carried.

b) Glassheim presented request from realtors re. information; Mayor Owens reported had met with Joe and herself and Joel giving her response and making sure everyone on council gets information.

c) Glassheim reported he had attended meeting re. participation and public participation and disturbed that minutes are not avail-able to the public over the internet and not refer to look at something like that, and whether some supplemental money might be not be used or to set up process to use.

Howard Swanson reported that he has requested that we move forward and place entire City Code on electronic format through out pub-lished and the publisher will make Code available; and he also suggested the transfer of minutes onto an electronic storage
capacity, how quick can get minutes on Code publisher, may be longer term item that what he is looking at. He reported that code MINUTES/FLOOD RESPONSE COMMITTEE
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published in 1987 and wasn't available at that time, but is now and are out of Code books and it was his recommendation to go elec-tronic. He stated that they would take one step further and explore the establishment of minutes on electronic data. Glassheim stated that if have home page, it's his understanding that it's not complicated or expensive once have physical minutes typed to place on the home page, but need a person to do it, but need to make city position available for that kind of position. Information only.

d) John O'Leary reported that the Committee had approved a program re. rehab grant application to assist businesses that had been damaged by the flood based on a $50-20-10 per sq.ft. and not sure what information they wanted. Gary Christianson has been working and bringing forward information here tonight, and would like guidance of what level of info. they would like. (brief description of business, how long in operation, numbers of employees, descrip-tion of improvements, etc.) and make sure propensities to proceed for an extended period of time, some of it is confidential with personal financial statements, etc. Hafner stated he would like to see summarization from staff.

Gary Christianson reported they had received approx. 17-18 aps., many in different stages of completion, some exciting applications, and these are 3 completed basic requirements and met all require-ments and bring to committee and would still have to submit all guidelines (bonds, receipts, etc.): 1) McConn & Fisher Partnership, 315 1st Avenue North based on 2323 sq.ft. at $20/sq.ft. for $46,460 for internal improvements and up to $6,740 for external improve-ments for a total of $53,200; 2) Doug Norby, 18 S. 4th Street based on 2100 sq.ft. @$50/sq.ft. for $105,000 in internal improvements; and 3) North Valley Arts Council for improvements to Empire Theatre, 415 DeMers Avenue for 10,000 sq.ft. at $50/sq.ft. for a max. of up to $250,000 in internal and external improvements. He reported these were going to DDC for comments and then inhouse review. Committee stated they would like more summary: number of employees, how long in business and more information on jobs. Polovitz questioned whether review of storefronts, etc. and Mr. O'Leary reported that everyone of the storefront applications improvements will be reviewed by State and local historical societies, etc. It was noted that those on renovations and meet review criteria would be eligible for retroactively and both McConn & Fisher and Norby have done and have submitted receipts, etc. for match. Carpenter questioned whether they were going to pay $105,000 for internal improvements and then have to acquire property and pay for those improvements a second time; Mr. Christianson stated City wouldn't pay for pre-flood assessed value. Hafner stated that should pay for this and then if property bought out, then not pay for additionally. Mr. Christianson stated that if Mr. Norby had known that property would be bought out, would not have made improvements; Carpenter stated he wasn't comfortable with this.
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Moved by Bakken and Polovitz to hold this matter for one week. After further discussion Mr. O'Leary reported that this body stops at $250,000 so that if that amount this body could approve, and suggested that the North Valley Arts Council could be acted upon and that would exceed their authority with others to be brought back to committee next week. It was also noted that North Valley Arts Council is out of the matrix now.

Moved by Glassheim and Carpenter to hold the Norby and McConn & Fisher applications and to approve the North Valley Arts Council recommendation in the amount of $250,000. Motion carried.

Moved by Polovitz/Bakken to adjourn; meeting adjourned at 6:35 p.m.

Alice Fontaine
City Clerk

Dated: 12/10/97.