Council Minutes

MINUTES/COMMITTEE OF THE WHOLE
Monday, September 8, 2003 - 7:00 p.m.______

The city council met as the Committee of the Whole on Monday, September 8, 2003 at 7:00 p.m. in the council chambers in City Hall with Mayor Brown presiding: Present at roll call were: Council Members Brooks, Hamerlik, Glassheim, Christensen, Kerian, Kreun - 6; absent: Council Member Gershman - 1.

Mayor Brown announced that when addressing the committee to please come forward to use the microphone for the record, and advised that the meeting is being televised live and taped for later broadcast.

Mayor Brown commented on various events of the past week and upcoming events:
1) Sons of Norway and Rotary for pancake feeds on Saturday morning.
2) thanked Dr. Schultz for inviting him to greet those participating in the Prostate Cancer Awareness Walk to honor prostate cancer survivors and increase awareness of prostate cancer. September is Prostate Cancer Awareness Month.
3) he thanked those who organized and worked and took part in Tour of the Trails yesterday; thanked Bike & Ski Shop, the Park District and commendation to Sgt. Mark Ellingson and Master Police Officer Donnie Bryant (bicycle patrol who rode with them and kept tour safe), thanked Council Members Kerian and Kreun who were tour leaders with him.
4) he issued an early welcome and word of support for those organizing or watching this weekend's upcoming Special Olympics Soccer and Bocce ball tournament.
5) he stated it was great to see good story on the mosquito crews this weekend.

COMMITTEE OF THE WHOLE DISCUSSION ITEMS

2.1 Resolutions authorizing bond sales:
a) Refunding Improvement Bonds, Series 2003A (Dike Improvements)
b) Refunding Improvement Bonds, Series 2003B___________________
Allen Erickson, Springstead, made a brief presentation relating to the bond issues, that
there were two issues before council for setting sale at regular meeting next week and are recommending that the City go to market with these on October 20, will take bids on that day. The 2003A issue is for dike financing, this is the 6th in a series of financings to do the dike, first issue was in 1999, and this particular issue relies upon repayment from special assessments against benefit of properties, they anticipate one final issue to complete the project, probably sometime next year. He stated page 7 is the model that they started working with Mr. Schmisek in 1998 and this is basis of going to Moody's to talk to them prior to issuing any of the dike debt and discussing with them what they thought the initial impact would be on the City's credit rating, and when looking at the model they had more confidence in the ultimate result, that the City has kept its bond rating and everything working very well. He stated that the key ratios have improved every year since they started this model and now based on the fact that property values and population have grown a little faster than they anticipated, interest rates on debt have been far lower than anticipated and all key ratios look better than anticipated and Moody's is very happy about that as well.

He stated the other improvements on Series 2003B $4.5 million and would sell them the same day and page 15 lays out exact projects that involve that particular issue and the properties that would be benefited and assessed for them.

Council Member Hamerlik stated that if we know the amount for the 7th round and if we know the amount and the way the market is going, and if we could advertise and get the same rate but not draw it down and have to pay the interest, etc. if that has been considered. The city auditor stated they would have a problem with IRS regulations as far as arbitrage requirements and selling bond issues that you can't spend down in a given period of time and this bond issue will take us into 2004 and if sold more would get out past the 24 month timeline and would end up owing IRS money. Mr. Erickson stated there are a couple issues there, one is arbitrage regulations, impact planning they have done for the issues and models, other is they are reasonably sure what the estimate of the costs are going to be but being last issue want to make sure that have right dollar amount because that will be the final one and will close out the project and don't want to either over or under issue in that particular case.

2.2 Amendment No. 1 to engineering services agreement with CPS Ltd. for Project No. 5547, paving additional parking lot at Alerus Center.__________________________
Council Member Hamerlik questioned why the first portion had a cost of $29,600 based on 500-car parking and the other $45,000 for a 380-car lot. Cindy Voigt, asst. city engineering, reported that the engineering estimate for projects typical of this is not on the number of cars and not on the engineer's estimate; the original contract for the design and bidding phase based on an estimate, that they estimated a certain cost per space and was under $30,000 and council didn't see that agreement, but the construction phase is for surveying, construction inspection and contract administration and even though the number of lots was smaller, there would still be a fixed time to spend because the lot is larger, takes longer to stake and longer to construct - the $45,000 is for both lots.

Council Member Kerian asked if they estimate the total engineering costs for all phases of the project and if that info.is brought to council. Ms. Voigt stated they estimate that on their internal city projects and on the projects they have consultants because they need a budget for that and don't see it until the amendment comes through.

Council Member Christensen questioned why they wouldn't ask for a bid in its entirety (design and bidding, construction estimate) so that they get one figure so don't keep coming back for project amendments, and doesn't want to get into it this evening, and this is maybe a policy question that should be considered. Ms. Voigt stated that is question for Mr. Swanson re. bidding of engineering services, doesn't think the law allows for that.

Al Grasser, city engineer, stated that is reason why they don't ask for all of that upfront - they had a base bid and an alternate bid and easier for everyone to pin down their costs if after the City determines the scope. He stated that the staff report notes that they don't bid engineering services but do qualification based selections, and have a pre-qualified list that they select engineers from which saves time on each project. Council Member Christensen stated this is something they should think about or consider. Mr. Grasser stated it is the City's policy that dictate that these things keep coming back, that change orders used to come back and changed our policies on how we addressed and handled that - that there are other ways of handling this, such as allowing the engineers to enter into an agreement for engineering services based on a percentage of the contract bid that the contractor bid, and difficulty they have in trying to nail down the engineering up front is most of the time don't have a good handle on the full extent of the scope of the project, and that is why handling them this way.

Council Member Kreun stated this is an agreement in hourly, not to exceed that amount, and if they don't spend the total amount of time on it, that bill will be less than the total amount; and if we ask for a complete bid, no matter what happens we will pay that amount; that if we go back and look over a long period of time, will find that our quotes in this kind of situation, usually come under the amount that they brought in. Council Member Christensen stated if that is the case perhaps could have a survey of contracts to see if that bears a statistical analysis and if it does, continue on the same track and if it doesn't, should consider a different method of bidding.

2.3 Project Concept Report for Project No. 5287, Johnson's Linear Park bikepath.
There were no comments.

2.4 Price quotes for fire department physicals.
There were no comments.

2.5 Bioterrorism Grant ($46,177) and budget amendment, new revenue.
There were no comments.

2.6 Grand Forks Renaissance Zone Project GF-9.
There were no comments.

2.7 Request for proposals for sale/relocation of 1508 Lewis Blvd.
Council Member Brooks stated recommendation is to reject the proposals, what was basis for rejecting. Greg Hoover, Urban Development, stated in discussion they talked about lack of specificity in the meeting of requirements as far as description of the moving of the building, signed commitments from subcontractors for certain purchase price, etc. and once determined that this was no longer a project that needed to be done immediately for the dike project, felt it in the best interests of the city to reject these bids and go out in the spring.

2.8 Request from David J. Parker for final approval (fast track) of plat of Perkins 9th Resubdivision (being a Replat of Lot GG of a Replat of Lot 1, Block 1, Perkins Fifth Addition and Lots H and L, Block 1 of a Replat of Lots 2 and 3, Block 1, Perkins Fifth Addition) (loc. at 36th Ave.S. and S. Columbia Road)_____________________
There were no comments.

2.9 Request from WWC Holding Co., Inc. dba Western Wireless for conditional use permit for Lot 2, Block 2, English Coulee 2nd Addn. for the purpose of constructing a wireless communication tower. (loc. at 3100 DeMers Avenue)_____
There were no comments.

2.10 Request from Bill Kvasager and Jill Stein for conditional use permit for private riding stable in A-2 (Agricultural Reserve) Dist. as required by Section 18-0207 (3)(B) Commercial or Private Riding Academies and Stables on Lot 1, Block 3, Lunski Subdiv. (loc. at 7026 17th Avenue South.)__________________________
There were no comments.

2.11 Petition from Menard, Inc. to vacate utility easement lying within Lots C and D, Replat of Lot A, Block 1, Columbia Park 14th Addn. (loc. in 3700 block of 32nd Ave. S.)______________________________________________________________
Council Member Hamerlik stated when the new building was built, part of the old building was to come down, that there is a gap between the two buildings of about 30 ft. and if that is all the farther that will be or if more is to come down and if so, when. Dennis Potter, city planner, stated in terms of the existing building there is an additional 30 ft. that will come down off the east end either this fall or next spring and will be a 60 ft. wide gap between the two buildings, that the front part of the old building will come off and what will remain will be converted into retail space, that farther down on the agenda there is an item relating to initial approval on replatting of property to create three additional plats of land that will be outlots for development. Council Member Kreun stated the easement runs down the middle of the new building and this is housekeeping issue on this item.

2.12 Request for preliminary approval of ordinance amending City Code, Chapter XVIII, Land Development Code, Article 2, Zoning, Section 18-0211 R-4 Multiple-Family Residence, High Density District, subsection 3, Conditional Uses (allowing existing neighborhood convenience grocery and automobile service businesses)___
Council Member Kerian stated at Planning & Zoning meeting there was some additional writing that needed to be done on this and some consulting with Mr. Swanson; Mr. Potter stated they will have that when get back to Planning & Zoning in October.

Council Member Christensen stated this has to do with the rezoning of the area for the M & H Gas Station on N.5th Street, land to the south of or behind the station, and asked if the residents know what is coming and how do they give notice to those residents that there might be an expansion of that facility. Mr. Potter stated they have had one meeting with the neighborhood where they invited everyone within 400 ft. radius of the site, and if this proceeds then once M & H comes back in for the conditional use permit, then back out to noticing the neighborhood again. He stated they are proposing to amend the ordinance to establish a conditional use permit process for them to be able to do the expansion and renovation and doing a double protection in the neighborhood by doing it through a conditional use permit. Council Member Christensen asked if conditional use permits are ever pulled, how could you pull permission to do it and might be something they might want to think about. Mr. Potter stated they could talk about that between now and when they get back in October.

2.13 Request from CPS, Ltd. on behalf of Marvin and Violet Birkholz, for preliminary approval of plat of Birkholz Homestead Addn. (loc. in 3600 block of 18th Avenue South)._______________________________________________________________
There were no comments.

2.14 Request from CPS, Ltd. on behalf of Steve Adams for preliminary approval of ordinance to amend zoning map to include within Southern Estates PUD, Concept Development Plan Amendment No. 3, Lots 1-21, Block 6, Columbia Park 29th Addn. (loc. east of Pembrook Drive and Haleigh Drive.)_______________________
There were no comments.

2.15 Request for preliminary approval of ordinance to amend zoning map to include within R-2 (One and Two Family Residence) District, Lots 1 through 24, Blk. 18, Lindsay's Addn. (loc. at 1023 Almonte Ave.)_______________________________
There were no comments.

2.16 Request from CPS, Ltd. on behalf of Menard Inc. for approval of preliminary plat of Columbia Park 30th Resub. (loc. in 3700 block of 32nd Avenue S.)___________
There were no comments.

2.17 Request from ICON Architectural Group on behalf of Mikkelson Consolidated for preliminary approval of ordinance to amend zoning map to include within the Village PUD, Concept Development Plan, Amendment Number 3, Lots G, 4-11, 15 and 16, Block B, Village Resubdivision Addn. No. 2 (loc. between University Avenue and 5th Avenue N. west of North 42nd St.)___________________________________
Council Member Brooks stated this was passed to exclude Amendment No. 2 and include Amendment No. 3 and what this involves. Mr. Potter stated this will change the zoning, that Amendment No. 2 is current zoning, B-3, amend that out and put in Amendment No. 3 which will be B-1 commercial area that allows ICON to have R-4 apartment density and preserve the ability to do some mixed use commercial, not significant change.

2.18 Appointment to City Planning and Zoning Commission (Dr. Lyle Hall, School Board representative)________________________________________________
There were no comments.


INFORMATION ITEMS

3.1 Deacons Greens shared use path.
No comments.

CITIZEN REQUEST

There were no comments.

ADMINISTRATIVE COORDINATOR COMMENTS

There were no comments.

MAYOR AND COUNCIL MEMBER COMMENTS

1) Council Member Brooks stated the timeframe they are working on with bringing back information re. water park business plan, have 2 weeks left. Mr. Duquette stated presentation will be September 22, which is committee of the whole meeting.
Council Member Brooks stated that Mr. Duquette sent out e-mail today that he had contacted the city administrator in Crookston re. problems they are having and thanked him for making that contact and offering our services as a city to one of our neighbors.

2) Council Member Hamerlik asked if there is in Code re. bonus points earned re. attendance by employees at meetings (Healthy Cooking for Hunters and Anglers), and asked if that policy giving time off to go to meetings when even on company time. Don Shields, Health Department, stated in 1993 the city council did pass an ordinance/resolution that granted bonus vacation hours for employees to participate in wellness activities - 4 hours per year for vacation bonus hours and could be a mix of number of things - sometimes lunch and learn series, hours associated with the annual wellness fair. Council Member Hamerlik stated that even though they are working and if they attend, they get time off; Mr. Shields stated yes.

Council Member Brooks stated they have discussed this before and the reason and basis is that the City gains from the fact - there is less sick hours used through a wellness program. Mr. Shields stated the intent of the program is to encourage people to take walk breaks, flu shots, blood pressure checks, etc. and ideas that keep our employees healthy, keep them on the job and with that reduce the sick time and encourage people to have health behaviors and reduce City costs. Council Member Brooks stated this is reason why he would like to see them get reports from Human Resources in terms of sick time used and vacation time used so they can see the benefits - need reports to see that these program are working. Council Member Hamerlik stated he wasn't sure that we save money, could be opposite - and that there are some people who are not able to go between 11:00 and 12:00 (firemen, police, etc.) and do they get extra time. Mr. Shields stated there is a variety of wellness activities that go on through the year, not everybody can participate and even if participated in all of them there is a max. of 4 hours, and quite often held around the lunch period so that people take their lunch hour to go.

Mr. Swanson stated this policy is not adopted by ordinance. Mr. Shields stated by resolution in the spring of 1993.

4) Council Member Glassheim presented several items - that we moved an 8 or 12-plex because of dike activities on North 6th Street and there were plans about trees, screening and commitments made to the council, doesn't know if tree plantings have been properly done but weed activity has not been done and asked if somebody could check that to make sure that they comply.

5) Council Member Glassheim stated they have the annual report and budget from the Alerus Center, that it anticipated a net gain at the end of the year, but asked what is the operating transfer, about $224,000. The city auditor stated that the operating transfer may be the dollar amount they have to transfer after their previous year where they had an operating loss and will do more research and give you a memo of clarification. Council Member Glassheim asked if we had money set aside from Economic Development in case of a loss; the city auditor stated they don't have in the budget a specific dollar amount set aside but have a footnote in the 2163 fund for the usage of contingency money that the council, at their discretion, can use for Alerus deficit, use it for seed money, enrollment fund, economic development but don't have specific dollar amount set aside any longer.

Council Member Christensen stated that the operating transfer that the city auditor is suggesting -when they were in the budgeting process, he inquired about what appeared to be $643,000 item where they had an operating loss and in our audit, they reviewed that and the Alerus Fund owes 2163 or general fund $643,000 and if they are projected to have an operating profit of $223,910 which would go to pay down that deficit, and in the June 30 numbers have an operating revenue over expense deficit, not counting the signing as of June 30 of $193,500 and unless that is made up between now and year end, will have another deficit added to that $643,000 but will have to take the money from 2163 to cover it and should stay on that because this marketing plan reflects a balance of a profit of $156,000 but if have loss he suggested of $200,000 and look to revenues, they are down about half million in projected revenue, and will have to see how this comes in going forward because it could affect our 2163 projections for 2004 because there is nothing in 2163 to pick it up right now other than the $1.3 million that is free to allocate. The city auditor stated he will review that and give it to him.

6) Council Member Glassheim stated he had talked with someone who was unable to get the budget on the net; the city auditor stated he has visited with IS and it should be on very shortly if not yet.

7) Council Member Glassheim stated concerns with our process in committee of the whole, committees deal with each item, and our process was that if you didn't have any questions when the item came up, wouldn't go into it, now not going into most items on committee of the whole either and that about 2/3rds of our items have no council review, can read material but not presented by staff and if they are comfortable with that, that's fine but is little uneasy that nothing explained between staff and council directly - and if want to continue it that way or not. Mayor Brown stated they will do what the council wishes, and to give him feed back.

8) Council Member Christensen stated he received the Pension & Insurance Committee agenda and item 4 on the agenda is discussion on ordinance defining voting requirements for pension and insurance committee, and asked if there is a proposed ordinance that will be discussed. Council Member Hamerlik stated that that they reduced the size of the pension committee to 2 employees and 2 council people plus the mayor or designate and that is 5 members, have another place in the Code that says that in order to pass something have to have 4 people in favor of it so there is a question if 3 should be the number or not because it may be advantageous or disadvantageous to one or the other, and Mr. Swanson was contacted about it and is a matter of whether or not a motion needs 3 votes or 4 votes out of the 5, and because they have had a resignation and vacancy not filled, there are only 4 members now and have to have 100% participation and that could happen in the future.

9) Council Member Kerian stated that the Mayor had asked for feedback and would appreciate if the city auditor would read each item.

10) Council Member Kreun stated that the only comment he has had on the committee of the whole from the public is that sometimes people (had only 4 people with comments) hesitate to come to the meeting to present some of the information that they would like to present on an item because it is intimidating to come in front of the full council and would rather go back to smaller group; and relating to the item of not discussing each item, each of the council members should read the background material and if have questions, bring it up and staff would be glad to bring it forward and that is individual situation.

Mayor Brown stated that last week had the Potato Bowl and also had a change of command ceremony at the Air Force Base and need to welcome Col. Mark Ramsey and his wife Patty to our community, and wanted to thank President Kupchella of UND for including us in the Potato Bowl parade.

ADJOURN

It was moved by Council Member Kreun and seconded by Council Member Christensen that we adjourn. Carried 6 votes affirmative.

Respectfully submitted,



John M. Schmisek, City Auditor