Council Minutes

PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF GRAND FORKS, NORTH DAKOTA
Monday, August 3, 1998

The city council of the city of Grand Forks, North Dakota met in its regular session in the council chambers in City Hall on Monday, August 3, 1998 at the hour of 7:30 o'clock p.m. with Mayor Owens presiding. Present at roll call were Council Members Brooks, Lucke, Hamerlik, Bouley, Glassheim, Lunak, Klave, Beyer, Babinchak, Bakken, Hafner, Martinson - 12; absent: Council Members Polovitz, Carpenter - 2.

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 matter.

APPROVE MINUTES FOR MAY 18 AND JUNE 1, 1998

Typewritten copies of the minutes of the adjourned and regular meetings of the city council held on Monday, May 18, 1998 and Monday, June 1, 1998 were presented and read. It was moved by Council Member Klave and seconded by Council Member Babinchak that these minutes be approved as read. Carried 12 votes affirmative.

SUSPEND AGENDA AND CONSIDER MATTER OF
SHANNON WILSON STUDY

Mayor Owens asked because of large number of people in the audience relative to the matter of the Shannon Wilson study to suspend the agenda to hear that matter. It was moved by Council Member Hafner and seconded by Council Member Martinson to suspend the agenda to consider the matter of the Shannon Wilson study. Carried 12 votes affirmative.

Mayor Owens stated that she and staff have worked diligently during the last year to bring this community to where it is today, and proud of what they have done; however, that is not to say that they haven't made some mistakes or changed their minds as a community about how to accomplish their goals. She stated that on the recent issue with the consultants, Shannon and Wilson, there was a communications breakdown, have discussed and learned from that, that this project was handled like other projects over the past many years, however, the engineering department is given a lot of authority on those projects to carry forth with them after the policies and acceptance by the city council. She stated that this project affects many people's lives, are here to help people and never an intention not to get the second opinion from Shannon and Wilson Consultants and now time to move forward. She stated that she talked to Mr. Greg Fisher today from Shannon and Wilson and asked him to come back into the community, get us back on track and have him explain where he is at with the City, that it is a joint effort between the Corps of Engineers, Shannon and Wilson, and the City; he has agreed to come back August 13 and they will set a time for the meeting and everyone will be aware of that. She stated there will be a presentation to city council and she has a letter outlining twenty-one items for the scope of work and the cost of each of those items, and will review and determine where want to go. She stated that reps. of the Corps of Engineers will also be here to work on this as a team; Shannon and Wilson was hired because residents wanted a second person with expertise to review items that the Corps had done; that they are interested in saving homes and giving residents some comfort level that whatever the decisions are, that everything has been thoroughly reviewed and guarantees that. She stated that the one thing prevalent is that the Corps of Engineers is working very hard on the report that goes to Congress for the Water Resource Development Act, and that is what's taking all of their time and that is what the holdup has been, have to pursue funding or won't have a dike. She stated that Mr. Fisher was aware that this was being done and that there are some small things that he can do, and will discuss next week, and want residents here to ask questions and comment. She also stated that the Corps of Engineers do not have to accept what Shannon and Wilson proposed and has to be acceptable to them so people will be aware of that, but believes they are working in mutually agreeable manner at this point.

Tom Hagness stated that when Shannon and Wilson hired the City wanted to know if had a chance to save more homes, that when Shannon and Wilson study put on hold he was on council at that time and not aware of it. He stated that the reason they were put on hold should have been discussed with council, that staff chose to do this even though city council asked that Shannon and Wilson give a second opinion, and that they needed to share information with each other so that public felt confident and trust that the Corps was doing what was best they could do to save as many homes as possible, and because Shannon and Wilson would study and partner in any opinion given, now feels that trust is gone again. He stated that the second opinion wasn't a duplication of what the Corps was doing, but was with the collaboration with the Corps' findings and testings. He stated that he would encourage council to put Shannon and Wilson on again as soon as possible and to work with Mr. Vein and Shannon and Wilson to see that they are all part of the team partnering, and bring back trust and confidence in this project. He offered his services to assist in that process.

Hal Gershman, 517 Reeves Drive, stated that in the past year and some months, there have been many efforts in building confidence between City, Corps and citizens, that on various occasions the council has hired consultants to work with the Corps to help build that confidence, that as the Corps proceeds in studying the alternatives as proposed by Shannon and Wilson on April 30, that he believes it is critically important to have Shannon and Wilson involved at the very beginning of the study so that they can have input as to the assumptions and criteria that will be used in developing the data that will be used in deter-mining results of the study. He stated that when they heard that Shannon and Wilson was put on hold because duplicating the Corps' work, they became very concerned because they had expected Shannon and Wilson would be involved with that same work to insure that the assumptions and criteria going into the study would have a concurrent second look. He reported that the second to the last paragraph of the July 30, 1998 memorandum from Mr. Grotte to Mayor Owens and the city council stated and he quoted: "Our intentions are to have Shannon and Wilson involved in a technical review capacity to review geotechnical issues as they arise." He stated that he is convinced that a consultant cannot have much effect on the Corps' study after it is completed, and that it is critically important to put Shannon and Wilson back on the study with the Corps, and hopes that the two and one-half months delay has not destroyed that opportunity, and that reinstating Shannon and Wilson tonight is the only way to begin to regain confidence of citizens of city in this very painful process.

Mayor Owens stated that after talking with city staff and council residents can be assured that Shannon and Wilson will be back to do the work that they were hired to do, and council will have to address some of the costs as they proceed.

Mayor Owens stated she has packet of scope of work, and council members will receive copy of that which shows the twenty-one items. Council Member Beyer stated that the original contract was for approx. $80,000. Mayor Owens reported that Mr. Fisher had stated that they will be updating that so that could change.
Mr. Gershman stated that this afternoon he talked with representatives from the Corps of Engineers who stated there is no duplication of work and has no problem with having Shannon and Wilson being involved in all the work they do, that they would just as soon have somebody involved, and suggested that the City should ask the Corps for an opinion to continue the work with Shannon and Wilson in order to compliment the Corps' work for the final dike alignment, that council does have to define scope but Corps is ready to work with the City and have Shannon and Wilson there. He stated it isn't going to do us any good and none of them will believe anything if Shannon and Wilson is going to be given 2-3 days to review documents that deep, will happen as before, don't want that to happen any more.

Debbie Lloyd, 17 Sandy Hills, stated that in regard to expenditures of money, compared cost of consultant fees for this study and consultant fees with a streetscaping project in the downtown area, that she is for jump-starting the downtown, but it's time to put on hold some of the frills aside from basics of what need in our downtown. She stated that if talking $200,000, this is almost half of that amount and affects 195 families, not sure streetscaping really benefits all that many people, and half of that money could be put towards seeing whether save even 25 more homes if the cost ratio benefit is there. Mayor Owens stated that anytime the council reviews consultant fees, you weigh the cost-benefits and believes benefits are there to warrant having comfort when come to the end of this process. She stated they will look forward to having the consultant here on August 13.

ADOPT ORDINANCE NO. 3725, ZONING REGULATIONS
R-5 (MOBILE HOME RESIDENCE) DISTRICT, YARD
REQUIREMENTS, AMENDING PARAGRAPH RELATING TO
DISTANCES BETWEEN UNITS

An ordinance entitled "An ordinance amending the Grand Forks City Code of 1987 as amended; Chapter XVIII, Land Development Code, Article 2, Zoning Regulations; Section 18-0212 R-5 (Mobile Home Residence) District, subsection (8) yard requirements: amending paragraph (A) relating to distances between units", which had been introduced and passed on its first reading on July 6, 1998 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 for the public hearing; there were no comments and the hearing was closed.

The city auditor presented and read the report from the Planning and Zoning Commission that they had considered the matter of the request from residents of Presidents Mobile Home Park for final approval of an ordinance to amend the Land Development Code as it relates to distances between units in an R-5 (Mobile Home Residence) District, and recommended denial of final approval of ordinance thus leaving the minimum spacing requirement at 15 feet. The recommendation had been moved and seconded by Council Members Martinson and Brooks.

There was some discussion re. status of the current ordinance (which had been changed on July 7, 1997 from 20 feet to 15 feet under Ordinance No. 3655). Council Member Glassheim stated that this had been 20 feet spacing for many years which seems for better living circumstances and for better layout and design of trailer parks; his understanding is that residents would be removed if not reduced to 15 ft. and asked why they wanted this changed to 15 ft.

Council Member Hafner stated that council voted to allow the 15 ft., that management of trailer parks rearranged some of the mobile homes and if change it now would be great expense.

Council Member Glassheim asked why stay with the 15 ft. if it makes for more decent housing stock for people at 20 ft. which it had been for many years; and that if someone had redesigned under the 15 ft. ordinance wouldn't that be grandfathered in and be allowed to stay at 15 ft.

Dennis Potter, city planner, reported that on differing setbacks, the mobile home park is really no different than the regular stick-built housing throughout the community, have a wide variety of setback requirements for houses within the city, within the mobile home park originally had 20 ft. and last year there was an issue to reduce to 15 ft. and that was done. He stated that in their research this time around were looking at helping safety issues, the State law which takes into account health and safety issues is 15 ft. and when reduced a year ago were in compliance with State law; and recognized that from living conditions stand-point go down to 15 ft. and the issue of reverting back to 20 ft. when reviewed it there were no health and safety reasons to go back to 20 ft., and staff recommended and Commission supported retaining it at 15 ft. He stated that grand-fathering doesn't work that well because if you have two homes 15 ft. apart, can remain, but if pull one out and want to put a new one in, have to go to 20 ft.

Council Member Glassheim stated that State law permits us to go to 15 ft., however, is that best distance for people to live apart or better to have a 20 ft. separation.

Council Member Martinson stated that the problem that's going to happen in relocating existing mobile homes in parks is that it's very costly item to relocate manufactured home because have to relocate water service, sewer, electrical and becomes a cost to the owners of the park, however, that will go back to the tenants, ie., in a lot rent increase; and that a lot of people that live in manufactured homes today are on a fixed income and to push for a 20 ft. now would mean an undue expense to those people who are on fixed income.

Mr. Swanson advised that the recommendation from all public safety departments were consistent with the 15 ft. separation, and if haven't received communication in the past, may in the future, from manufactured home manufacturers and sellers arguing that the federal law requires manufactured homes to be treated on a similar basis as other homes; in that regard your R-1 Zone requires setbacks as low as 14 ft. between R-1 residents and that was a consideration or portion of the discussion at Planning and Zoning, and that this brought the manufactured homes zones into almost uniformity with R-1 zones. He stated that so council aware of what vote will mean: a yes vote would mean that they were in agreement from changing the setback from the present 15 ft. to 20 feet, a no vote will mean that they are going to retain the 15 ft. setback.

Upon call for the question of adoption of this ordinance and upon roll call the following voted "aye": Council Members Brooks, Lucke, Hamerlik, Bouley, Glassheim, Beyer, Bakken - 7; voting "nay": Council Members Lunak, Klave, Babinchak, Hafner, Martinson - 5. Mayor Owens declared the ordinance adopted.


ADOPT ORDINANCE NO. 3726, CHANGING MEMBERSHIP
OF CENTRAL BUSINESS DISTRICT AUTHORITY

An ordinance entitled "An ordinance amending Section 14-0102 of the Grand Forks City Code relating to the Grand Forks Central Business District Authority", which had been introduced and passed on its first reading on July 20, 1998, was presented and read for consideration on second reading and final passage.

Howard Swanson, city attorney, reported that previously the chair was appointed by the mayor, and request is and draft before council would amend that so the Authority itself would select among its members its chair, and other change in the draft of the ordinance was one massive paragraph and broken into sub-paragraphs for easier reading, and if in agreement that the body itself should select its chair, there should be a motion to amend the ordinance as introduced, otherwise in form for adoption.

It was moved by Council Member Beyer and seconded by Council Member Glassheim to amend the ordinance as recommended. Carried 12 votes affirmative.

Upon call for the question of adoption of the ordinance, as amended, and upon roll call vote, the following voted "aye": Council Members Brooks, Lucke, Hamerlik, Bouley, Glassheim, Lunak, Klave, Beyer, Babinchak, Bakken, Hafner, Martinson - 12; voting "nay": none. Mayor Owens declared the ordinance adopted.

SUSPEND AGENDA AND CONSIDER ITEM RELATING TO SMALL BUSINESSES
Mayor Owens again asked the council to suspend the agenda and to consider an item relating to small businesses. It was moved by Council Member Hafner and seconded by Council Member Lunak to suspend the agenda. Carried 12 votes affirmative.

Council Member Lunak reported that there were some businesses on South Washington and weren't on the agenda tonight and presented number of letters from businesses on South Washington to the mayor and council members, and wanted to tell them there are several programs in the making now but one from Urban Development will be drafted and done by the end of the week and Council Member Hamerlik has proposal and to let people know that working and trying to make things happen for the small businesses.

Council Member Hamerlik stated that it would seem reasonable for those people in the audience and others to tell them what process is going to be, that deadline is 5th of this month and will go to Flood Response and after that it will be either at a council meeting or committee of the whole, but Flood Response will meet on August 12 and that's time to be in support of or against. Council Member Hafner reported that Flood Response Committee did ask Terry Hanson of Urban Development to work on a proposal for a program for small businesses and that Mr. Hanson met with several businessmen for input, and are listening and will wait to see what proposal is. Mayor Owens reported these will be put in with requests for the August 12 meeting of Flood Response at 4:00 p.m.

COUNCIL MEMBER HAFNER EXCUSED

DETERMINE INSUFFICIENCY OF PROTEST ON PAVING
PROJECT NO. 4498, DISTRICT NO. 555
The city auditor reported that the period for filing protests on the resolution of necessity for the improvements in and for Paving District No. 555, Project no. 4498, paving on 6th Avenue North from North 53rd Street to North 55th Street, had expired on July 30, 1998, and that he had received no written protests.

Mayor Owens call for the public hearing to see if there was anyone present who had comments to make on this matter. There were none.

Council Member Martinson introduced the following resolution as to protests which was presented and read: Document No. 7602 - Resolution.

It was moved by Council Member Martinson and seconded by Council Member Klave that we do hereby find and determine an insufficiency of protest against Paving District No. 555, Project No. 4498, 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.
4498, DISTRICT NO. 555

The city auditor presented and read tabulation of bids which had been received and opened on Monday, July 27, 1998 for Paving Project No. 4498, District No. 555, paving 6th Avenue North from North 53rd to North 55th Streets, indicating that Valley Contracting Company was the low bidder based upon their bid in the amount of $64,713.80: Document No. 7603 - Bid Tabulation.

The city engineer's estimate of total cost on Paving Project No. 4498, District No. 555, in the amount of $82,500.00, was presented and read.

Committee No. 3, Public Service, reported having considered the matter of consideration of construction bids for Project No. 4498, District No. 555, paving 6th Avenue North from North 53rd to North 55th Street, and recommended to accept the low bid of Valley Contracting Company in the amount of $64,713.80.

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

Council Member Lunak introduced the following resolution which was presented and read: Document No. 7604 - Resolution.

It was moved by Council Member Lunak and seconded by Council Member Klave that this resolution awarding the contract for Paving Project No. 4498, District No. 555, to Valley Contracting Company be and is hereby adopted. Upon roll call the following voted "aye": Council Members Brooks, Lucke, Hamerlik, Bouley, Glassheim, Lunak, Klave, Beyer, Babinchak, Bakken, Martinson - 11; voting "nay": none. Mayor Owens declared the resolution adopted and the contract awarded.

DETERMINE INSUFFICIENCY OF PROTEST ON PAVING
PROJECT NO. 4801, DISTRICT NO. 557

The city auditor reported that the period for filing protests on the resolution of necessity for the improvements in and for Paving District No. 557, Project No. 4801, paving in Mighty Acres Second Addition, had expired on July 30, 1998, and that he had received no written protests.

Mayor Owens call for the public hearing to see if there was anyone present who had comments to make on this matter. There were none.

Council Member Glassheim introduced the following resolution as to protests which was presented and read: Document No. 7605 - Resolution.

It was moved by Council Member Glassheim and seconded by Council Member Babinchak that we do hereby find and determine an insufficiency of protest against Paving District No. 557, Project No. 4801, as no protests were filed and further that the resolution be and is hereby adopted. Carried 11 votes affirmative.

COUNCIL MEMBER HAFNER REPORTED BACK

RECEIVE TABULATION OF BIDS, ESTIMATE OF TOTAL
COST AND AWARD CONTRACT, PAVING PROJECT NO.
4801, DISTRICT NO. 557

The city auditor presented and read tabulation of bids which had been received and opened on Monday, July 27, 1998 for Paving Project No. 4801, District No. 557, paving in Mighty Acres Second Addition, indicating that Valley Contracting Company was the low bidder based upon their bid in the amount of $159,544.00: Document No. 7606 - Bid Tabulation.

The city engineer's estimate of total cost on Paving Project No. 4801, District No. 557, in the amount of $203,000.00, was presented and read.

Committee No. 3, Public Service, reported having considered the matter of consideration of construction bids for Project No. 4801, District No. 557, paving in Mighty Acres Second Addition, and recommended to accept the low bid of Valley Contracting Company in the amount of $159,544.00.

It was moved by Council Member Lunak and seconded by Council Member Klave that this recommendation be and is hereby approved. Carried 12 votes affirmative.

Council Member Lunak introduced the following resolution which was presented and read: Document No. 7607 - Resolution.

It was moved by Council Member Lunak and seconded by Council Member Klave that this resolution awarding the contract for Paving Project No. 4801, District No. 557, to Valley Contracting Company be and is hereby adopted. Upon roll call the following voted "aye": Council Members Brooks, Lucke, Hamerlik, Bouley, Glassheim, Lunak, Klave, Beyer, Babinchak, Bakken, Hafner, Martinson - 12; voting "nay": none. Mayor Owens declared the resolution adopted and the contract awarded.

DETERMINE SUFFICIENCY OF PROTEST ON PAVING
PROJECT NO. 4823, AND TERMINATE THE PROJECT
The city auditor reported that the period for filing protests on the resolution of necessity for the improvements in and for Paving District No. 558, Project No. 4823, construction of pavement on North 6th Street from Fenton Avenue to Conklin Avenue, had expired on July 30, 1998, and that he had received written protest totaling 50% of the property in the assessment district.

Mayor Owens called upon the audience to see if there was anyone present who had comments to make on this matter.

John Disse, 1620 North 6th Street, stated he was trying to get this assessment stopped in his neighborhood, the bid came in high, that he has three lots in the neighborhood and would end up paying for 25% of the cost, that his house valued in the high $30's, that this would be hardship on him if project goes through, would cost $18,000 to get road paved; that he is accepting job in Miami or in final hiring stages with the federal government with INS and needs to sell his home, and if assessment goes through, not likely that paving will increase value of his property anywhere near the $18,000 range. He stated he has vacant lot adjacent to his home that is valued at $5,000 and assessment for the property would be $6,000, that his house sits on two lots, and bring his payments up over $150/mo. He also reported that his neighbor across the street is Mark Brundin who was unable to be here, that he is handicapped and couldn't sit through this meeting, that he is on fixed income and bring his payments up $118/mo and cannot afford that. He also stated that the three property owners who signed the protest are shouldering 65% of the cost of the project but only 50% of the property area. He stated that there is concern in council re. affordable housing, that neighborhood has affordable housing now but if assessments go through, won't be as affordable to live there; that the street is fully functional, not very well traversed, no trucks, and little bit of dust which they can put up with for having affordable housing.

Council Member Hafner moved to terminate the project, and Council Member Martinson seconded the motion. Carried 12 votes affirmative.

Committee No. 3, Public Service, reported having considered the matter of consideration of construction bids for Project No. 4823, District No. 558, paving North 6th Street (Fenton to Conklin Avenues), and recommended to accept the low bid of Valley Contracting Company in the amount of $56,212.00, subject to final protest.

It was moved by Council Member Klave and seconded by Council Member Lunak that this recommendation be and is hereby approved. Upon call for the question and upon roll call vote, the following voted "aye": none; voting "nay": Council Members Brooks, Lucke, Hamerlik, Bouley, Glassheim, Lunak, Klave, Beyer, Babinchak, Bakken, Hafner, Martinson - 12. Mayor Owens declared the motion denied.

CONTINUE PUBLIC HEARING ON DETERMINATION
OF PROTESTS ON PROJECT NO. 4795, PAVING
DISTRICT NO. 556

The city auditor reported that the period for filing protests on the resolution of necessity for the improvements in and for Paving District No. 556, Project No. 4795, paving North 53rd Street between 10th Avenue North and 12th Avenue North, and 12th Avenue North from 53rd to 55th Streets, had expired on July 30, 1998 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.

The city auditor reported that they would need to continue the public hearing and protest until August 17, 1998 as bids have been postponed to August 10, 1998.

It was moved by Council Member Glassheim and seconded by Council Member Babinchak to continue the public hearing on the protest until August 17, 1998. Carried 12 votes affirmative.

REPORTS OF OFFICERS

The city auditor's statement of changes in cash balances as of June 30, 1998 was presented and read. It was moved by Council Member Glassheim and seconded by Council Member Brooks to receive and file the report. Carried 12 votes affirmative.

The city auditor's investment report as of July 30, 1998, was presented and read. It was moved by Council Member Glassheim and seconded by Council Member Babinchak to receive and file the report. Carried 12 votes affirmative.

APPROVE BILLS

Vendor Payment Listing No. 98-13, dated August 3, 1998, and totaling $2,078,522.15, all having been audited by the city auditor for payment in accordance with regulations, was presented and read.

It was moved by Council Member Bakken and seconded by Council Member Klave 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 Brooks, Lucke, Hamerlik, Bouley, Glassheim, Lunak, Klave, Beyer, Babinchak, Bakken, Hafner, Martinson - 12; voting "nay": none. Mayor Owens declared the motion and the bills ordered paid.

CONSIDER MATTER OF COMMUNICATION FROM RESIDUAL
MATERIALS, INC. RE. LAND TRANSFER, AND ASK
FOR FURTHER INFORMATION

Committee No. 1, Finance, reported having considered the matter of communication from Residual Materials, Inc. 222 Red Dot Place, re. land transfer, and recommended that we ask proper agencies to review and come back with prudent proposal.

Committee No. 3, Public Service, reported having considered the matter of land swap, wastewater/storm sewer yard west of proposed levee (Residual Materials), and recommended to send the matter back to staff for further consideration.

It was moved by Council Member Brooks and seconded by Council Member Hamerlik that these recommendations be and are hereby approved. Carried 12 votes affirmative.

DECLARE CERTAIN COMPUTER EQUIPMENT AS SURPLUS

Committee No. 1, Finance, reported having considered the request to declare computer equipment excess property, and recommended that the listed equipment be declared surplus since it has had opportunity to be reused within the city.

It was moved by Council Member Brooks and seconded by Council Member Hamerlik that this recommendation be and is hereby approved. Carried 12 votes affirmative.

APPROVE BUDGET AMENDMENT

A request from the Municipal Court for budget amendment in the amount of $40,000, prisoners board during flood which were not presented until late in the year, was presented and read. It was moved by Council Member Brooks and seconded by Council Member Hamerlik that this budget amendment be and is hereby approved. Carried 12 votes affirmative.

AUTHORIZE REINSTATEMENT OF ORDINANCES
SUSPENDED DURING FLOOD EMERGENCY

Committee No. 2, Public Safety, reported having considered the matter of reinstatement of suspended ordinances: Article 8, Parking, on-street, parking of trucks and motor homes, parking in excess of 24 hours, and portions that have been repealed, limited time parking, daily parking restrictions; Property Offenses: depositing litter and that vehicles be covered during hauling trash, the matter of abandoned property that allowed people to place property on berms without City considering it to be abandoned, noise control ordinance, and all in effect during cleanup and rehab operations: Health and Sanitation re. garbage, etc., and recommended to reinstate the ordinance that apply to this committee.

Committee No. 3, Public Service, reported having considered the matter of reinstatement of suspended ordinances: Chapter XIII, Health and Sanitation, Articles 4, 5 and 6 re. sanitation department; Chapter XV Waterworks & Sewerage System; Chapter XVI, Streets and Sidewalks; Chapter XIX, Buildings and Building Regulations, and recommended to authorize reinstatement of ordinances.

Committee No. 4, Urban Development, reported having considered the matter of reinstatement of suspended ordinances, and recommended to receive and file.

Committee No. 1, Finance, reported having considered the matter of reinstatement of suspended ordinances: Chapter XIV, Grand Forks Central Business District; issues re. water rates, wastewater rates, etc.; and recommended to reinstate suspended ordinances under our responsibility as drafted in consort with others by the legal counsel.

Committee No. 1, Finance, reported having considered the matter of reinstatement of suspended ordinances, and matter of Section IV Additional Authorization to Suspend Ordinances, and recommended to suspend Section IV of Ordinance No. 3644, additional authorization to suspend ordinances.

It was moved by Council Member Brooks and seconded by Council Member Hamerlik that these recommendations be and are hereby approved. Carried 12 votes affirmative.


APPROVE CONTRACT WITH U.S.WEST RE. INTERNET
SERVICES

Committee No. 1, Finance, reported having considered the matter of contract with U.S. West re. internet services, and recommended to approve installation subject to review by legal counsel.

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

Mr. Swanson, city attorney, reported that after the committee took action on this matter, he reviewed the proposed agreement by U.S. West, and that he has four basic concerns or objections to the agreement: 1) requires binding arbitration under certain rules that the City has typically not agreed to, the contract includes the limitation of warranty and includes the limitation of damages, and also provides the cohesion agreement or contract with U.S. West; however, there appears to be no other option for service provider that the City is in a position to accept, and his recommendation other than noting those concerns he has is to move forward and approve the contract.

Upon call for the question and upon voice vote, the motion carried 12 votes affirmative.

CONSIDER MATTER OF REQUEST FROM METRO PLAINS
FOR FINANCING FOR REHAB OF SOUTH JR. HIGH
SCHOOL INTO SENIOR APARTMENTS TO PLANNING,
SET PUBLIC HEARING FOR SEPTEMBER 8, 1998

Committee No. 4, Urban Development, reported having considered the matter of request for inclusion into rental rehab program by MetroPlains Development, Inc. for South Junior High School building, and recommended to deny the funding from the flood rental rehab program.

Committee No. 4, Urban Development, reported having considered the matter of request for inclusion into rental rehab program by MetroPlains Development, Inc. for South Junior High School building, and recommended that the council allocate $363,000 loan from the matrix at this time.

Committee No. 3, Public Service, reported having considered the matter of easement for alleyway and utility easement for rehabilitation of South Junior High School, 1224 Walnut Street, for $1.00, grantor, MDI Limited Partnership, City of Grand Forks, grantee, and recommended to approve exchange that it will be a like exchange, quit claim deed for quit claim deed, and enter into agreement with MetroPlains that they will do snow maintenance on the alleyway, pending review and approval by the city attorney re. potential easements.

Committee No. 1, Finance, reported having considered the matter of request from MetroPlains for tax increment financing for rehabilitation of South Junior High into senior apartments, and recommended to refer to Planning and Zoning Commission and set public hearing for September 8.

It was moved by Council Member Brooks and seconded by Council Member Hamerlik that these recommendations be and are hereby approved.

Council Member Beyer reported that MetroPlains applied to Urban Development for flood rental rehab and motion was to deny it as they missed the application deadline, weren't existing units at the time. She stated that the second motion which she voted against was to allocate at this time $363,000 out of the matrix and has not been there before and that she thought it should be put back with the rest of the applications.

Council Member Lunak reported that this building is in his district, that there has been fire and vandalism, and that the sooner they move on with this project and that $363,000 coming out of the matrix is small and would like to see this approved.

Council Member Hamerlik asked that they vote on each item separately; Mr. Swanson stated he wouldn't disagree and that there are separate action sheets from three committees and could move to divide the question.

It was moved by Council Member Hamerlik and seconded by Council Member Babinchak to divide the question. Carried 12 votes affirmative.

Gary Stenson, MetroPlains Development, St. Paul, stated that he had met with several council members at the three committees they attended last week, and that they had started talking with city staff last fall when they knew building might become available, that they acquired the building and in discussions talked about using same format and allocations that they did for St. Anne's, which is now Riverside Manor. He stated that what they have here is less City involvement and have been able to raise some additional funding, either from private sources, etc. and now is a $4 million project and have a first mortgage of $1.6 million and are asking for $363,000 from the City, originally started at $400,000. He stated that at meeting several weeks ago with City staff and mayor, etc., it was suggested that they use the Rental Rehab Program and that the one they applied for. He reported there is also $145,000 in affordable housing grant that they submitted application through First National Bank in Grand Forks, and that was denied by the Federal Home Loan Bank Board (as they had 114 applications in Des Moines region and did not feel there was enough support from a financial standpoint). He stated there is private investment of about $1.8 million going into the project and that money is raised through the Housing tax credits and Historic tax credits. He stated that the timing problem is that the Housing tax credits are through the North Dakota Housing Finance Agency, that each State gets $1.25 per capita and they have an allocation round and award those credits, and credits have been awarded out of the 1998 allocation and under the terms of the Federal Tax Credit Program, 10% of the project funds have to be expended in the year the tax credits are awarded, so with the $4 million project, they have to spend over $400,000 before the end of the year so timing is crucial otherwise tax credits go back to North Dakota Housing Finance Agency and put into next year's allocation or put into other projects that didn't qualify in initial go around. He stated that the building is most difficult one to be done, starting with Ryan Hotel which did in 1981, never had a fire in a building like have had in this, and first time installed security systems, hired security patrols, have to get this building going now, and can't wait. Mr. Stenson stated perhaps half million in damages to the building, whole interior of the building is black with smoke and soot, and to clean and seal is expensive part. He reported they purchased building at auction in February and closed on with School District in March.

Bob Siedel stated he lives across the street from the school and would like to see this project go ahead and people in neighborhood very supportive of this project.

Upon call for the question on the motion from Urban Development re. matter of request for inclusion into the Rental Rehab Program by MetroPlains Development for South Jr. High School building and to deny the funding from the Flood Rental Rehab Program, which had been moved by Council Members Glassheim and Beyer, the motion carried 12 votes affirmative.

Upon call for the question on the motion from Urban Development recommending that the council allocate $363,000 as a loan from the matrix, which had been moved by Council Members Glassheim and Lunak.

Council Member Hamerlik moved to table this motion, Council Member Lunak seconded the motion. Upon voice vote, the motion was defeated.

Upon call for the question on the motion to allocate $363,000, moved by Council Members Glassheim and Lunak.

Council Member Hafner asked Mr. Stenson where their investment is in the program. Mr. Stenson stated there is a limited partnership that will own the property and will put up about $1.8 million, and the way the $1.8 million under current housing programs, housing tax credits gets repaid over 10 years in federal income tax credits, and also historic tax credits in year placed in service. MetroPlains does not have $2 or $3 million in federal income tax liability and do about 8 or 9 projects each year. Council Member Hafner asked if there was any investment from MetroPlains. Mr. Stenson stated that MetroPlains is committed to the $1.8 million and when project completed they will bring in an investor that will become a limited partner, somebody that can use the tax credits. He stated that investor is usually a large corporation (NSP, Cargill, etc.) Mr. Stenson stated they have $1.8 million and some of that will come back in tax credits and that is how raise equity in doing housing tax deals. He stated the other choice would be if investor put $1.8 million in, would need a return on that investment at 10% interest and would be $180,000/year in interest, how would get additional $180,000 in rent, rents are capped on all but 15 of the apartments. He stated that this is the way the transactions get done all over the country to provide affordable and market rate housing.

The city auditor reported that the motion is an allocation of $363,000 as a loan from the matrix and not an award at this time, and will have other actions coming up that send this matter to Planning and Zoning that requires them to determine that this is a slum and blighted area and then is eligible for a tax exemption and a public hearing set for September 8.

After further discussion and upon roll call vote, the following voted "aye": Council Members Hamerlik, Bouley, Glassheim, Lunak, Brooks - 5; voting "nay": Council Members Lucke, Klave, Beyer, Babinchak, Bakken, Hafner, Martinson - 7. Mayor Owens declared the motion defeated.