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Council Minutes

PROCEEDINGS OF THE CITY COUNCIL

OF THE CITY OF GRAND FORKS, NORTH DAKOTA
April 1, 2002

The city council of the city of Grand Forks, North Dakota met in the council chambers in City Hall on Monday, April 1, 2002 following the Growth Fund meeting at the hour of 7:00 o’clock p.m. with Mayor Brown presiding. Present at roll call were Council Members Brooks, Bjerke, Stevens, Hamerlik, Burke, Glassheim, Gershman, Klave, Kerian, Bakken, Kreun - 11; absent: Council Members Lunak, Martinson - 2.

Mayor Brown announced that anyone wishing to speak to any item may do so by being recognized prior to a vote being taken on the matter, and that the meeting is being televised.

Mayor Brown announced that he had proclaimed April 1-7, 2002 as National Public Health Week in Grand Forks, ND and encouraged all citizens to join in this observation.

Mayor Brown thanked the Greenway State Park Task Force, Council Members Christensen, Gershman and Kerian for volunteering to help our city in that endeavor; and asked for two council members to contact his office to volunteer for the 911 Authority Fee Increase Task Force to help work with that.

FLOOD PROTECTION PROJECT UPDATE

Al Grasser, city engineer, presented the update for the month of April and reported the following:
Technical Work Update: The Corps is finalizing the scope of work for the design engineering for Phase III of the levees.
Flood Protection Projects: negotiations for this work are going on with Stanley Consultants and they have also submitted Phase II, final design review documents, to his office and that is the final step in doing plan review before going out for bids.
Nodak Contracting on Phase I has completed construction on the super structure at Almonte and 8th Avenue South, working at the outlet chamber at 13th Avenue South, the structure on Elmwood and have started some of the work in downtown near DeMers Avenue, tying into the pipes and putting in some of the discharge structures.
The English Coulee Diversion Project has been awarded to Gowan Construction, and will start work this month, and to that end, the contractor, the Corps of Engineers did sponsor a meeting with the neighbors of that project last week informing them of the project scope.
Burlington Northern has designed the bridge for the 69th Street crossing, with the English Coulee Diversion Channel, and is a critical piece for them to get down to Legal Drain 9, materials have been ordered and expecting that project to go on this summer.
Bids were opened on February 8 for the demolition contract for most of the structures and foundations presently scheduled for removal, due to irregularities of those bids, the Corps has decided to cancel that solicitation and will be using an expedited process to get a contractor on board to handle our most urgent needs which are the open foundations, about 13 open right now, and those bids are expected to be in near the first part of April and get construction removal the end of this month or early May. Bids will be accepted around the first of May for the remaining properties for demolition (buildings in addition to foundations). The contractor was working on one building on South 4th Street and was basically in conjunction with getting things ready for the directional drilling contractor to come in and start work on the raw water intake structures.
City Staff and Consultant Updates:
Gowan was authorized by the city council to do additional greenway cleanup in the Koinonia, Belmont and Hughes Court area, and as soon as that work is done United Crane will come in and complete the utility relocates in some of those same areas.
Construction Engineers is working on the raw water intake caisson, the caisson is to full depth and what they are doing now is trimming up the piles in the bottom and will be pouring the floor, and that work should be done this month when the horizontal directional drilling contractor will be coming in and mobilizing this month and starting on the twin 30" pipes over to the Red Lake River.
Federal Appropriations Process - the President's budget is at $30 million and we have the ability to process about $75 million worth of work and that's where we need to be to keep on a schedule of the 2004 substantial completion; we are continuing to work with our Congressional delegation on this issue and helping provide information and probably anticipate another trip to Washington when the actual appropriations process is more fully developed.
Local funding - we have an advance funding issue on tonight's agenda to keep the projects going.
Project Cost Update:
On March 14 the Corps of Engineers gave an updated total project cost that is slightly under $400 million, which is a drop from about $410 million in December - that number probably will bounce around every quarter that we get those numbers based on the latest bid prices that we have received.
English Coulee Diversion Pump Station:
This is one of the critical areas that we need when we do talk about our advance funding, the contract is guaranteed about $4 million worth of work and we need to get that increased to $8 or $9 million range to get the English Coulee closure done by 2004, and if can't get a similar amount of work done this year, that closure will not be completed until at least 2005.
Property Acquisition:
We have purchased the Riverview Apartments on Alpha Avenue, Knutson Apartments on South 4th Street (tenants being relocated at this time) and we picked up Viking Electric in March.
Interim Flood Protection Plans:
This ties in with some of the properties that we have acquired and our plans as we still have some remaining budget from the allocation that the council gave us last fall for interim levees and to keep filling in these gaps as these properties get developed, and removed and add to our continuity for our flood protection project, will have evaluation to see if they come back to council for additional funding.
Southend Update:
There is a new investigation on the southend and the GRR calls for the southend alignment to be on the Merrifield Road which is near the overpass by the Interstate and next to Legal Drain 4; we are in the process of looking at the possibility of shifting that alignment about one-half mile to the north, the things that are driving that is it appears that the Merrifield Road alignment would be very expensive project because of the large ditch work that would need to be done on Legal Drain 4, the extensive rebuilding of the road, repaving, etc., lots of property acquisition, acquiring property on both sides of the road, significant disruption to the property owners because that road would be out of commission for a substantial period of time. There is going to be a meeting with some of the property owners adjacent to Merrifield Road and in that vicinity on April 1, will try to share some of this information with them and get concerns they might have; that we have asked the Corps to try to run some numbers so we can refine our cost estimate and will share that information when it is received.
FEMA Remapping Issue:
They had a meeting with FEMA's Regional director who was in town several weeks ago, an exchange of information, he listened to our concerns and though we don't have any promises one way or the other he is heartened that he was listening and give it some careful thought. Representative Pomeroy was in town last week and he talked about the remapping, that it appears that he may try to make some efforts to cut down the City's local share of the detailed mapping that might have to take place, there is a cost sharing arrangement with FEMA that according to their numbers might be $100,000 FEMA and asking for $100,000 from Grand Forks, and likewise a similar operation for East Grand Forks, and try to make an attempt to see if he could cut down our local share and alleviate some of that financial burden.

Mr. Grasser stated that rather than going through the greenway report, they would like to share a greenway video, which was presented.

HOLD PUBLIC HEARING ON PROPERTY TAX EXEMPTION
PURSUANT TO NDCC 40-57.1 EXPANDING BUSINESS BY
MnDAK CONCRETE, INC., 5000 DEMERS AVENUE, AND
APPROVE EXEMPTION

The staff report from the city assessor relating to the public hearing on a property tax exemption pursuant to NDCC Chapter 40-57.1, expanding business by MnDAK Concrete, Inc., 5000 DeMers Avenue, with recommendation to hold the public hearing and consider whether to grant a partial or complete exemption of the proposed new building.

Mayor Brown opened the public hearing, there were no comments and he closed the public hearing.

The city auditor reported that his office has not had any communication from the Park District or the School District and they were notified.

Council Member Kreun stated they have talked about economic development and try to lure outside companies to our community and sometimes overlook the good companies that we have in our midst and that Concrete, Inc. is one of those and has been in this community for over 100 years and has never been before the council for any assistance; and each application and company will have to be evaluated and stand on its own merits to determine the benefits to this community and that MnDAK Concrete does pass that test; and moved to grant the 5 year 100% exemption for the proposed 48 sq. ft. free standing building. Council Member Gershman seconded the motion.

It was noted that the approximate tax abatement for 5 years for this property would be approx. $57,195/year for a total of $285,975. Council Member Hamerlik asked what the amount that possibly would be for the total special assessment for flood control. The city auditor stated he would not be able to give an accurate number at this time, but can provide that information to him.

Council Member Glassheim stated that he has no problem with the total dollars that are going to support this company, it will come back in property taxes by expanded employees and in sales taxes as well; however, the property tax for the past few years and for the next year or two or three is under tremendous stress in the city of Grand Forks and while he has supported the original idea of the 100% and the declining balance for companies and is concerned with getting sufficient funds into the General Fund and keeping the property tax level while keeping services level and his interest is in finding some other way to provide a similar kind of support to this company; and suggested to give a 50% property tax exemption for 5 years and a $30,000 grant out of the Growth Fund for 5 years which comes to approximately the same amount of money and if they want to pay the General Fund with sales tax dollars with that grant; or that we go more than 5 years, a payment in lieu of taxes and go 10 or 11 years at 50%- that either of those would mean is that more money would be coming into the city general fund faster and would be establishing that as something we would like to do more of;

COUNCIL MEMBER CHRISTENSEN REPORTED PRESENT

and the reason he is more interested in giving the grant out of the Growth Fund is that over the next 1, 2 or 3 years, the Growth Fund will be in good shape and more income than there has been over the past decade per year without hindering economic development, and moved to amend the motion to give a 50% property tax exemption for 5 years and recommend to the JDA that we grant $30,000 per year for 5 years to this company. The motion died for lack of a second.

Council Member Gershman stated he is pleased that this company is expanding in Grand Forks, this will increase the employment base, that there has been some concern of the precedent setting of the 5 year 100% but we do have examples of that and the important thing we have to consider is what is best for the business because either way its good for the city, and asked if there was a better business reason to have the exemption in the 5 years than over 10 years..

Jim Melland, Economic Development Corporation, stated that the company in doing their planning for this proposal and for their expansion took into consideration their business needs, what is driving this is a productivity issue and a cash flow issue, that there are some accounting differences and tax differences in accepting grants as opposed to taking a straight abatement of an expense and is more beneficial from that perspective for the company to take the tax abatement than to try to split it up someway with a grant that would come into the corporation and be taxable.

He stated that this company has grown substantially in the last 8 years and has done it by investing in themselves over time, and now at a point where they actually cannot bid some projects because they don't have the fiscal plant to put the forms in to manufacture the products they need to bid on some of these jobs, the 5 year period and the abatement they are requesting over that period of time fits into the model of how their business looks to accelerate in the next 5 years and allow them the time with limited expenses to get the productivity into the new facility, to get the new skilled people up to speed so their manufacturing gets to the fine tuned state and they are able to take advantage of the business opportunities that are coming their way.

Council Member Burke stated he thought Council Member Glassheim was on the right track in getting Growth Fund dollars involved in this, and perhaps can deal with this in the next couple of months, and that would be if and when we do abatements like this for the purposes of economic development, we reimburse the General Fund and various other funds from the Growth Fund. He stated we tax the people of Grand Forks and the people who spend money here, saying that we are dedicating a portion of that sales tax to economic development and then turn around and in the name of economic development, we give abatements not from the Growth Fund but from the General Fund which is funded in part mostly by property taxes, and other funds that also collect property taxes, and we are going to be forced to raise property taxes or at least not have those funds available to spend and also paying for economic development out of property tax funds as well; would seem to be more proper if this is an economic development effort that we reimburse the General Fund and the other funds for the lost property taxes. He questioned the $286,000 mentioned in the staff report and if that is the impact on the city budget or if that is for all of the taxing entities. Mr. Carsen stated that the $286,000 is the total amount, not just the City portion but also the School District and the Park District, and impact on city would be 25% of that.

Council Member Klave stated that relative to Council Member Hamerlik's question regarding special assessments the exemption does not mean they are exempt from special assessments; the city auditor stated they would continue to pay their special assessments. Council Member Klave stated that the expansion of this business we have a building and piece of property in our community that will be here for a lot longer than the 5 years that has a value of approximately of $2.2 million that will be on our tax rolls.

Council Member Hamerlik stated his question relative to the special assessment was not whether or not they would be taxed or special assessed, but if that amount that would be abated approximately that of what would be owed under special assessments; and stated that we should have an option and moved to amend the motion to include that it be on a graduated scale for the 5 year period 100%, 80%, 60%, 40% and 20%. Council Member Burke seconded the motion.

Upon call for the question on the amendment and upon voice vote, the motion was defeated.

Upon call for the question on the original motion and upon roll call vote the following voted:"aye": Council Members Gershman, Christensen, Klave, Kerian, Bakken, Kreun, Brooks, Stevens, Hamerlik, Burke, Glassheim - 11; voting "nay": Council Member Bjerke - 1. Mayor Brown declared the motion carried.

HOLD PUBLIC HEARING AND CONTINUE SECOND
READING OF AN ORDINANCE TO ANNEX SPECIFIC
LOTS IN BLOCKS 1, 2 AND 4, BELMONT ESTATES
FIRST ADDITION UNTIL APRIL 15, 2002

An ordinance entitled "An ordinance to annex to the city of Grand Forks, North Dakota, Lots 1 through 16, Block 1, Lots 1 through 10 and Lots 18 through 24, Block 2 and Lots 1, Block 4, Belmont Estates First Addition to the city of Grand Forks, North Dakota, less all that portion previously annexed by Resolution Nos. 4532 and 7037 and Ordinance No. 3732", which had been introduced and passed on its first reading on March 18, 2002, and upon which public hearing had been scheduled for this evening, was presented and read for consideration on second reading.

Mayor Brown opened the public hearing, there were no comments and the public hearing was closed.

Dennis Potter, city planner, asked that they extend the public hearing and second reading of the ordinance until April 15 meeting so that the Planning and Zoning Commission can complete their review of the plat and the planned unit development.

It was moved by Council Member Gershman and seconded by Council Member Brooks that the public hearing and second reading of the ordinance be continued until April 15, 2002. Carried 12 votes affirmative.

ADOPT RESOLUTION VACATING NUMEROUS STREETS,
AVENUES, INTERSECTIONS AND ADJOINING 10-FOOT
WIDE UTILITY EASEMENT AS PLATTED AND DEDICATED
ON THE PLAT OF COLUMBIA PARK 26TH ADDITION

The city auditor reported that pursuant to instructions by the city council after having received a petition to vacate the numerous streets, avenues, intersections and adjoining 10-foot wide utility easement as platted and dedicated on the plat of Columbia Park 26th Addition to the city of Grand Forks, North Dakota, the required legal notice had been published calling for a public hearing to be held this evening, and further that no protests or grievances had been filed with his office.

Mayor Brown called upon the audience to see if there was anyone present who had comments to make on this matter, there were none, and the public hearing was closed.

It was moved by Council Member Kreun and seconded by Council Member Bakken that we find and determine an insufficiency of protest to the proposed vacation. Carried 12 votes affirmative.

Council Member Kreun introduced the following resolution, which was presented and read: Document No. 8148 - Resolution.

It was moved by Council Member Kreun and seconded by Council Member Bakken that this resolution be and is hereby adopted. Carried 12 votes affirmative.

DETERMINE INSUFFICIENCY OF PROTEST ON STREET
LIGHTING DISTRICT NO. 138, PROJECT NO. 5333

The city auditor reported that the period for filing protests on the resolution of necessity for the improvements in and for Street Lighting District No. 138, Project No. 5333, street lighting on Nordonna Circle, had expired on March 28, 2002, and that he had received no written protests.

Mayor Brown called upon the audience to see if there was anyone present who had comments to make on this matter. There were none.

Council Member Kreun introduced the following resolution as to protests, which was presented and read: Document No. 8149 - Resolution.

It was moved by Council Member Kreun and seconded by Council Member Klave that we hereby find and determine an insufficiency of protest against Street Lighting District No. 138, Project No. 5333, as no protests were filed, and further that the resolution be and is hereby adopted. Carried 12 votes affirmative.

DETERMINE INSUFFICIENCY OF PROTEST ON STREET
LIGHTING DISTRICT NO. 136, PROJECT NO. 5331

The city auditor reported that the period for filing protests on the resolution of necessity for the improvements in and for Street Lighting District No. 136, Project No. 5331, street lighting on Mighty Acres Drive, had expired on March 28, 2002, and that he had received no written protests.

Mayor Brown called upon the audience to see if there was anyone present who had comments to make on this matter. There were none.

Council Member Kreun introduced the following resolution as to protests, which was presented and read: Document No. 8150 - Resolution.

It was moved by Council Member Kreun and seconded by Council Member Klave that we hereby find and determine an insufficiency of protest against Street Lighting District No. 136, Project No. 5331, as no protests were filed, and further that the resolution be and is hereby adopted. Carried 12 votes affirmative.
CLOSE PUBLIC COMMENT PERIOD, HOLD HEARING
AND APPROVE ANNUAL REPORT

The staff report from the Office of Urban Development relating to the item to close public comment period and hold public hearing on 2001 Consolidated Annual Performance Evaluation Report (CAPER), with recommendation to close the public comment period and hold public hearing on 2001 Consolidated Annual Performance Evaluation Report (CAPER).

Mayor Brown opened the public hearing, there were no comments and he closed the public hearing.

Terry Hanson, Office of Urban Development, stated that they need to close the public comment period, that there have been no comments received by his office, and to approve the annual report as presented for submission to HUD.

It was moved by Council Member Bakken and seconded by Council Member Kerian to close the public comment period, and to approve the 2001 Consolidated Annual Performance Evaluation Report. Carried 12 votes affirmative.

AWARD CONTRACT FOR PROJECT NO. 5290, 2002
ASPHALT STREET REPAIRS

The staff report from the engineering department relating to the consideration of bids for construction of City Project No. 5290, 2002 Asphalt Street Repairs, with recommendation to award contract to low bidder, Nodak Contracting, in the amount of $48,750.00.

It was moved by Council Member Brooks and seconded by Council Member Gershman that this recommendation be and is hereby approved. Upon roll call the following voted "aye": Council Members Brooks, Bjerke, Stevens, Hamerlik, Burke, Glassheim, Gershman, Christensen, Klave, Kerian, Bakken, Kreun - 12; voting "nay": none. Mayor Brown declared the motion carried and the contract awarded.

RECEIVE TABULATION OF BIDS, ESTIMATES OF TOTAL
COST AND AWARD CONTRACT, STREET LIGHTING
PROJECT NO. 5331, DISTRICT NO. 136, AND STREET
LIGHTING PROJECT NO. 5333, DISTRICT NO. 138

The city auditor presented and read tabulation of bids which had been received and opened on March 11, 2002 for Street Lighting Project No. 5331, District No. 136, and for Street Lighting Project No. 5333, District No. 138, street lighting on Mighty Acres Drive and on Nordonna Circle, respectively, indicating that Nodak Contracting, A Division of Strata Corporation, was the low bidder based upon their bids in the amounts of $11,500.00 and $3,625.00, for a total bid of $15,125.00: Document No. 8151 - Bid Tabulation.

The city engineer's estimates of total cost on Street Improvement Project No. 5331, District No. 136, in the amount of $14,600.00 and on Street Lighting Project No. 5333, District No. 138, in the amount of $4,600.00 were presented and read.

The staff report from the engineering department relating to consideration of bids for City Project No. 5331, District No. 136, and for Project No. 5333, District No. 138, 2002 residential street lighting on Mighty Acres Drive and on Nordonna Circle, with recommendation to award contract to low bidder, Nodak Contracting, in the amounts of $11,500.00 and $3,625.00 for a total of $15,125.00.

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

Council Member Brooks introduced the following resolution, which was presented and read: Document No. 8152.

It was moved by Council Member Brooks and seconded by Council Member Gershman that this resolution awarding the contract for Street Lighting Project No. 5331, District No. 136, and for Street Lighting Project No. 5333, District No. 138, to Nodak Contracting be and is hereby adopted. Upon roll call the following voted "aye": Council Members Brooks, Bjerke, Stevens, Hamerlik, Burke, Glassheim, Gershman, Christensen, Klave, Kerian, Bakken, Kreun - 12; voting "nay": none. Mayor Brown declared the resolution adopted and the contract awarded.

AUTHORIZE PURCHASE OF MOSQUITO CONTROL BIDS

The staff report from the Health Department relating to mosquito control bids, with recommendation to approve purchase of mosquito control products to bidders as outlined in the 2002 mosquito control chemicals, to accept the ATV lease bid from Acme Rents for the 2002 season at $1,000/month or $500.00/month ATV, and to authorize permission to negotiate directly with Rydell Chevrolet for lease vehicles, and to recommend further evaluation of the variable flow pumping systems and of the ultra low volume sprayer before purchasing

It was moved by Council Member Brooks and seconded by Council Member Gershman that this recommendation be and is hereby approved. Upon roll call the following voted "aye": Council Members Brooks, Bjerke, Stevens, Hamerlik, Burke, Glassheim, Gershman, Christensen, Klave, Kerian, Bakken, Kreun - 12; voting "nay": none. Mayor Brown declared the motion carried.

APPROVE POLLING PLACES AND SET HOURS OF
ELECTION FOR JUNE 11, 2002

The staff report from the finance department relating to the election polling places, addresses and hours of election for the joint primary/city biennial election to be held on June 11, 2002, with recommendation to approve the polling places and set the hours of the June 11, 2002 election from 7:00 a.m. to 8:00 p.m.

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

RECEIVE AND FILE COMMUNICATION FROM STARLITES
CENTER FOR THE ARTS

The staff report from the administrative coordinator relating to the communication from the Starlites Dinner Theatre relating to their withdrawal from the agreement for lease of the civic auditorium, with recommendation to receive and file.

It was moved by Council Member Brooks and seconded by Council Member Gershman to approve the recommendation and to receive and file the communication. Carried 12 votes affirmative.

APPROVE CLASSIFICATION OF POSITIONS AND ELIMINATION OF CERTAIN POSITIONS

The staff report from the administrative coordinator relating to non-classified positions, with recommendation to approve the classification of 14 positions. 1 position grant/contract related and the elimination of 12 positions.

Rick Duquette, administrative coordinator, stated several questions were raised last week as to what they would do with particular positions if persons in those positions left employment with the city between now and end of the transition period and whether or not these positions could be transitioned out earlier than the end of the year; that he met with respective department head in affected departments, that the department head in Inspections has recommended that position remain until the end of the year to allow the transition as that position is working quite a bit on flood projects. He stated that the department head in Public Works has asked that at the very earliest the end of October and that position remain to accomplish the transition. He stated with regard to filling a position once someone leaves, it comes down to an individual position of evaluation were that to happen.

Mr. Duquette stated there is a change recommended for classified positions, the Mayor has asked him to have the Public Information specialist half-time position be placed on that classified listing. Mayor Brown stated in this classified position their thinking was contract positions for department heads and the rest of the City's staff would be classified and that it makes sense to keep things consistent, that he was pleased tonight with what they saw from the Public Information Department and feels this position is very important to the successful communication of our city government with our citizens and that is why he proposed that change.

Mr. Duquette stated it is really important to thank Human Resources, the Finance Department, Mr. Swanson from the City Attorney's Office and the department heads; that they have arrived at a good process to better define our work force, better define where we're hiring staff and at the end of this year will have eliminated a two-tiered system in our personnel with permanent part-time situation.

Gary Johnson stated he works for the street department and asked what will happen to the job he is in, that he has been working with the city for the past 6 years. Mr. Duquette stated he believed that Mr. Johnson will have an opportunity to apply for the positions being classified, that his position is one of the positions that will be eliminated by the end of the year, and anticipating 4 openings. Mr. Duquette stated he respects Mr. Johnson's position and will be taking every step we can to meet his needs for the testing process and those procedures and is satisfied with the work done by Human Resources. Mr. Johnson submitted letter to the council members.

Mr. Swanson stated that last week there was a question whether a position was going to be hired as a classified or non-classified position and that he had suggested that hiring under a non-classified position may not be an option for you - that he has had the opportunity to review the amendments to the Code that were recently adopted and while theoretically it may be an option, that if you attempt to hire somebody in a non-classified position and not under a contract you can provide them with no benefits whatsoever. He stated that he initially indicated he had some concerns as to whether or not they were limited or restricted in the number of days, that does not hold true, that you could hire somebody in a non-classified position for more than the temporary or emergency time period, however, they are restricted as to what benefits they would receive.

Mr. Swanson stated that if you hired them in a non-classified position without a contract they would be entitled to no benefits. Mayor Brown stated they are proposing this half time position in Public Information be classified and it is not his desire to eliminate the position. Council Member Christensen stated that it would be his position that the administration would explore before creating another position at this time, cooperation, conciliation and working with the CVB, the Alerus Commission, the Chamber and all the other organizations re. coordination of events and sponsoring events rather than just creating this position. Mayor Brown stated this is not created as an events coordinator, this is made permanent because of the job of office of public information in preparing news media reports, making videos, news releases, designing and creating public displays (like Home Show flood protection update) open house, business after hours and handling public requests for information, researching those request and responding in a timely manner. Council Member Christensen stated they have gone from zero positions to 2 1/2 positions.

Council Member Brooks stated he would hope that Human Resources becomes an advocate for these people whose positions are being eliminated and works with them in finding other positions.

Mr. Duquette stated they have 12 positions to be eliminated, 4 positions are vacant, that there is 1 position in Inspections where they are recommending that position work to the end of the year and the other 7 positions with public works and the department head is recommending no earlier than the end of October for the transition of those positions.

Mr. Duquette stated that when positions vacated in the civic auditorium they used a re-assignment register, which gave those classified employees a priority for positions that opened that they were qualified for. Council Member Burke stated they had a program that they put together for other flood employees and if we can do that again with these employees. Mr. Duquette stated it is very important to the timing of these employees departing to have process in place so that these employees could be considered internal applicants if they are still employed by the City when they advertise for those classified positions, that allows them opportunity for those positions, if they separate from the City before the city council allows us to hire those positions they are on the outside and important that we transition towards the end of the year and get those positions filled at that time.

Council Member Bakken moved that we approve the recommendation to approve the classification of 15 positions and the elimination of 12 positions. Council Member Kerian seconded the motion.

There was some discussion as to whether they should give special consideration in keeping employees who are to be eliminated on the register for a period of time after elimination. Mr. Swanson stated when the council revised the civil service code last fall was to give the preference in the form of the reassignment register and that any present employee would be able to go on the re-assignment register, that does not extend to anybody on a re-employment register - they are two distinct, if on a re-employment register and your position is vacated or terminated you have no further priority - if you are placed on the reassignment register the top ranked person goes forward and under the present Code the council couldn't do what you are suggesting and if dealing with employees that have never held a classified position. Council Member Hamerlik stated we should try to find a way to do it, not just cancel these people out, but that these people could be included in the first go around. Mr. Swanson stated they
could adopt ordinances to change it but need to know that by doing that you affect the entire Civil Service Code that was modified after quite a bit of study, can't just change one aspect of the register without having an effect upon the other register.

Mr. Duquette stated they have 6 to 9 months to deal with this issue and see how things progress with those positions that are being eliminated and those employees that would be eliminated towards the end of the year and allow him, the city attorney and Human Resources to look at this issue to see if there is a better option to bring forward to help these employees towards the end of this process.

Council Member Bjerke stated they are giving those employees 9 months to find another job, but remember this is taxpayers money and have an obligation to the citizens of Grand Forks and also to the employees and if we don't need these positions and if they can be terminated in 6 months, that's what we should do. Mayor Brown stated they are studying the elimination of these positions and it may come back that we need more positions and this is in transition and we are evaluating the services and how we provide those services.

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

APPROVE AWARD OF CONTRACT FOR WAGE AND
SALARY STUDY

The staff report from Human Resources relating to the contract to Public Sector Personnel Consultants to conduct wage and salary study, with recommendation to award the contract to conduct a wage and salary study to Public Sector Personnel Consultants in the amount of $40,000.00.

It was moved by Council Member Gershman and seconded by Council Member Kerian that this recommendation be and is hereby approved, and further we approve the budget amendment request in the amount of $40,000, that previously had been set aside in a reserve account for the study into the current budget to cover the costs of the wage study. Upon roll call the following voted "aye": Council Members Brooks, Bjerke, Stevens, Hamerlik, Burke, Glassheim, Gershman, Christensen, Klave, Kerian, Bakken, Kreun - 12; voting "nay": none. Mayor Brown declared the motion carried.

AUTHORIZE CITY TO PARTICIPATE IN FY2003
NORTH DAKOTA INTERSTATE SECURITY AND SAFETY
PROJECT

The staff report from the Grand Forks/East Grand Forks MPO relating to the matter of authorization to be a participant in the FY2003 North Dakota Interstate Security and Safety Project application, with recommendation to authorize the City of Grand Forks to be a participant in the application.

It was moved by Council Member Klave and seconded by Kerian that this recommendation be and is hereby approved. Carried 11 votes affirmative, Council Member Bjerke voted against the motion.

AUTHORIZE ADVANCE FUNDING FOR CORPS OF
ENGINEERS FLOOD PROTECTION PROJECT

The staff report from the engineering department relating to the matter of advanced funding for Corps flood protection project, with recommendation to authorize up to $5 million of City flood protection funds to advance fund the Grand Forks Phase I levees, the English Coulee Diversion, and the English Coulee Pump Station parts of the Corps of Engineers flood protection project.

Council Member Hamerlik stated that we need to go forward with this realizing that the $5 million is not extra money and asked how much extra will this be costing the City of Grand Forks if we do this. The city auditor stated that the only extra cost would be interest earnings that we would lose if we kept some of these funds in the estimated time period, that is short term money and our ability to earn on that because of what we can invest in is about a 2 or 2.5% rate and depending on how those funds would go out, estimating potential loss of $16,000 to $24,000 of income and the other side of that is we are using funds that we had sold bonds for in our lands, easements, rights of way and demolition aren't going as quickly as we thought and within those bond covenants we have to spend money at a certain rate also or enter into arbitrage restrictions, that talking $16,000 to $24,000 but it is intended to save $10 to $15 million of the flood insurance premiums to the city; that we would apply to the State for their 45% on this share so about $2.75 million will come from the City; and the cost of not getting this money we would have a flood remapping go in before the project was completed, and if we can't keep contracts going, have some possibility of demobilization of contractors and remobilization and not sure how to put a number on that, would have to buy out the contract, etc. and could be a wash.

Council Member Burke asked if the City would be eligible to be reimbursed by the federal government for these funds, if we spend our money on the federal portion; the city auditor stated not spending on federal portion. Mr. Grasser explained what the Corps is asking us to do, that every year we have to put a certain amount of money in escrow as local responsibilities of the project, some of that is 5% cash payment, part of it is the City's responsibility, things that are identified that are City costs, etc. come out of that escrow account, and what we are going to be doing is putting more money into that escrow account earlier on and the Corps can actually draw from that to help cash flow their contracts so we're not actually paying for the federal share, but advancing our local share. Council Member Burke stated that if this project is under-funded and at some point we are going to have to come up with extra cash to get it done, if federal government end up funding it out into FY2005 and FY2006, rather than 2004 we had hoped and wouldn't be reimbursed until later on. Mr. Grasser stated it wasn't a question of reimbursing - that what we are doing is that it would take a few more years to eat up the escrow and depends on how much is being funded, but we aren't advancing the federal dollars but advancing our local share earlier on and eventually will eat that up; and the advance funding is for this fiscal year but do tie together pretty heavily, this is to keep us on schedule this year. Council Member Burke stated that the President's budget is for the next construction season, from October on, and if we have to come up for cash for that, then we would be considering more money; Mr. Grasser stated that would be another issue, the question would come up if we want to advance funds again, and are not anticipating to do that now but if live within the President's fiscal budget, there will be ramifications to the schedule.

Council Member Christensen stated that if the City's share is $52 million that it's just when we spend it, and once we spend our $52 million we have contributed our share. Mr. Grasser stated that's his understanding - that it is intertwined with the federal budget but just a question of when you put your money up, and to keep it on track, and we're putting our cash up first to keep it on track and expecting that we will get the money in the next two funding rounds and have to spend the $52 million and just a question of when doing it.

It was moved by Council Member Christensen and seconded by Council Member Kreun to approve the recommendation.