Council Minutes
PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF GRAND FORKS, NORTH DAKOTA
August 31, 1998
The city council of the city of Grand Forks, North Dakota met in special session in the council chambers in City Hall on Monday, August 31, 1998 at the hour of 5:00 o’clock p.m. with Mayor Owens presiding pursuant to call by Mayor Owens, which was served on all members on August 31, 1998. Present at roll call were Council Members Brooks, Polovitz, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Lunak, Klave, Beyer, Babinchak, Hafner, Martinson - 13; absent: Council Member Bakken - 1.
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.
MATTER OF UNALLOCATED FUNDS
The Flood Response Committee recommended that an additional $300,000 be appropriated and allocated as follows: $250,000 to the Dakota Science Center; $225,000 to the Community Violence Intervention Center; $90,000 to the Grand Forks Mission; and $35,000 to the Red River Valley Community Action Agency.
It was moved by Council Member Glassheim and seconded by Council Member Polovitz that this recommendation be and is hereby approved.
Vera Uyehara, 923 Almonte Avenue, Executive Director of the Dakota Science Center, stated that all the funds requested are to make the building safe, secure and sanitary - used for installation of a furnace, water system, power, fire alarm and sprinkler systems, to repair the floors and minimal finishes where walls were torn out because of water damage.
Upon call for the question and upon roll call vote the following voted “aye”: Council Members Brooks, Polovitz, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Lunak, Klave, Beyer, Babinchak, Hafner and Martinson - 13; voting “nay”: none. Mayor Owens declared the motion carried.
MATTER OF SMALL BUSINESS ASSISTANCE PROGRAM
The Flood Response Committee recommended to fund the Small Business Assistance Program at $2 million with program details to be determined.
It was moved by Council Member Carpenter and seconded by Council Member Polovitz that this recommendation be and is hereby approved, and further that the presentation of the details of the program be presented by September 15 in order to move the program at a fairly quick pace.
Council Member Hafner stated that the committee’s minute make it clear that the committee’s intention was that a program be developed by September 15 and the motion did not specify how it was to be done. He stated that any program to be developed would go through staff to make sure it is CDBG eligible.
Council Member Brooks moved an amendment to the motion that the funding be through grants. Council Member Martinson seconded the motion.
Council Member Hafner stated it was premature to decide at this time how the program should work, that in many cases if a small business has already received aid, it is subject to duplication of services; that those businesses could get a grant but it would only subtract from an SBA loan and wouldn’t really help them; but rather what would help would be a low interest or deferred loan. He stated it would be more prudent to wait and have programs developed.
John O’Leary, Urban Development, reported that you cannot change the duplication of benefits, it is in the regulations that you cannot use CDBG funds to replace or duplicate what is available through other resources - SBA, FEMA or other resources. He stated they would draft a program after input by the council members, and submit that to HUD, SBA and the other participating agencies to determine whether or not they perceive it as a duplication of benefits. Council Member Lunak suggested that small business owners along with council people be involved in drafting the program.
It was moved by Council Member Hamerlik to amend the amendment to read “..to include grants or loans.” Council Member Bouley seconded the motion. Carried 13 votes affirmative.
Upon call for the question on the amendment, as amended, and upon voice vote, the motion carried 13 votes affirmative.
Upon call for the question on the original motion, as amended, and upon roll call vote, the following voted “aye”: Council Members Brooks, Polovitz, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Lunak, Klave, Beyer, Babinchak, Hafner and Martinson - 13; voting “nay”: none. Mayor Owens declared the motion carried.
CONSIDER MATTER OF UNIVERSITY VILAGE
The Food Response Committee recommended funding of the University Village project with funds to be taken from excess city sales tax and the Loan and Stabilization Fund.
It was moved by Council Member Carpenter and seconded by Council Member Polovitz that this recommendation be and is hereby approved.
It was moved by Council Member Carpenter and seconded by Council Member Polovitz to amend the motion to delete any reference to the sources and inserting that we request staff to recommend a variety of sources and mixes to the council. Carried 13 votes affirmative.
The deputy city auditor presented information prepared by the city auditor outlining alternate funding sources including $1 million from excess sales tax, $800,000 from the Loan and Stabilization Fund, however, there is a need to use some of those funds annually to cover some shortfalls in tax increment financing bond issues. She also noted that the city auditor is requesting that if the council uses part of these funds, to use not more than $600,000. She stated that the other option is $1.5 million in cash carryover in Highway Users Tax Funds (a minimal amount); and the last option is to use part of CDBG funds in conjunction with any of the above sources.
Council Member Hamerlik declared the item to be controversial and asked that it be referred to the proper committee or council and that this is the improper time to discuss it. Council Member Carpenter disagreed because the motion was made and the discussion occurred within the context of the item of unallocated CDBG funds so consideration at this time is appropriate since it was a proposal made under the CDBG and we have determined a different source to do it. He stated that if we are unable to consider this, he would recommend not considering allocating any funds today because it would be unfair to the University Village project to approve the others and not have acted on this one; that if council is not receptive to doing it with other sources of funds, it should then be voted on as part of this proposal as well.
Council Member Polovitz moved to amend the motion that we fund the University Village with $1 million excess sales tax, $795,995 from Loan Stabilization Fund and $5 from CDBG. The motion was seconded by Council Member Hafner.
It was noted that the amendment was over what the University was asking for; Council Member Polovitz stated he was trying to make a point and asked if it has been ruled whether this is controversial. Mayor Owens stated that CDBG was included so we should discuss it; and Council Member Hamerlik stated that if the last motion would be withdrawn, he would be in favor of voting on the matter so that the intent of funding will come from elsewhere and refer it to the full council or finance committee; and withdrew his statement on controversial subject. Council Member Polovitz withdrew his amendment and the second agreed.
Council Member Brooks moved an amendment to the motion that this request be funded by CDBG funds and should there be other funds found later on that they be substituted for the CDBG funding. The motion died for lack of a second.
Council Member Glassheim moved that we not fund the University Village from CDBG, that we favor spending $1.592 million for the University Village and that we refer the matter back to the finance committee for determining the sources of funding. Council Member Klave seconded the motion.
Upon call for the question on the amendment and upon voice vote, the motion carried with Council Member Babinchak voting against the motion.
Upon call for the original motion, as amended, and upon roll call vote, the following voted “aye”: Council Members Brooks, Polovitz, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Lunak, Klave, Beyer, Babinchak, Hafner and Martinson - 13; voting “nay”: none. Mayor Owens declared the motion carried.
CONSIDER MATTER OF INFRASTRUCTURE
The Flood Response Committee recommended that all of the proposals and requests not be funded and all additional revenue that is left of CDBG other than the $2.3 million and potentially the $1.6 million or some portion thereof be allocated to the infrastructure proposals with the specific amounts for each line item to be determined at a later date.
It was moved by Council Member Polovitz and seconded by Council Member Hafner that this recommendation be and is hereby approved.
It was moved by Council Member Polovitz and seconded by Council Member Hafner to amend the motion to include $2 million for the County Parking Ramp. Carried 13 votes affirmative.
Council Member Bouley moved to amend the motion to include the South Middle School project in the amount of $363,000; Council Member Lunak seconded the motion. Upon roll call the following voted “aye”: Council Members Brooks, Lucke, Hamerlik, Bouley, Glassheim, Lunak - 6; voting “nay”: Council Members Polovitz, Carpenter, Klave, Beyer, Babinchak, Hafner, Martinson - 7. Mayor Owens declared the motion defeated.
Council Member Brooks moved to amend the motion that we establish a $4 million contingency budget. Council Member Lunak seconded the motion. Upon roll call the following voted “aye”: Council Members Brooks, Lucke, Hamerlik, Lunak, Martinson - 5; voting “nay”: Council Members Polovitz, Bouley, Glassheim, Carpenter, Klave, Beyer, Babinchak, Hafner - 8. Mayor Owens declared the motion defeated.
Upon call for the question on the original motion, as amended, and upon roll call vote, the following voted “aye”: Council Members Polovitz, Hamerlik, Bouley, Glassheim, Carpenter, Klave, Beyer, Babinchak, Hafner - 9; voting “nay”: Council Members Brooks, Lucke, Lunak, Martinson - 4. Mayor Owens declared the motion carried.
ADJOURN
It was moved by Council Member Hamerlik and seconded by Council Member Lunak that we do now adjourn. Carried 13 votes affirmative.
Respectfully submitted,
Saroj Jerath
Deputy City Auditor
Approved:
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Patricia A. Owens, Mayor