Council Minutes

MINUTES/COMMITTEE OF THE WHOLE
Monday, August 23, 2004 - 7:00 p.m.________

The city council met as the Committee of the Whole on Monday, August 23, 2004 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, Gershman (teleconference),
Christensen, Kerian, Kreun - 7; absent: none.

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 held during the past week and upcoming events:

He reminded everyone that this week has been proclaimed Welcome Back Students Week for UND
and Northland Community and Technical College; that today the Chamber of Commerce held a
Chamberfest and was a great success. Last Friday had great time welcoming students with UND
administrators and President Kupchella.
He proclaimed Thursday, August 26, as SEI Day as recognition for a growing company and their
open house and recruitment event this Thursday from 1:00 p.m. to 8:00 p.m. at their downtown office,
and read the proclamation.
Last Thursday Tops in Blue performed at the Alerus and thanked them for putting on an entertaining
show and treating our community to a fun night of entertainment.
This Saturday at the Alerus is the Sioux home football opener and also Military Appreciation Day and
opportunity to let military members and families know how much you support them and appreciate
their efforts.
He thanked First Presbyterian Church for being part of the toy give-away to military member's
children last week, community members and people participated in the Second Annual Biker Run and
collected hundreds of toys through a toy drive and presented them to families who have parents
deployed in Iraq.

2.1 Application for Class 3 (Off- and/or On-sale Beer and Wine) license by River Q, LLC dba Qdoba Mexican Grill, 3551 32nd Ave.S.__________________________
There were no comments.

2.2 Applications for transfer of Class 1 (General On/Off Sale Alcoholic Beverages) licenses by LPO, Inc. at 10 N. 3rd Street and at 9 N. 3rd Street.______________
Council Member Gershman requested that names of businesses to be transferred included in
staff report.

2.3 Resolutions directing Special Assessment Commission to assess special
assessments on an estimated cost basis.___________________________
There were no comments.

2.4 Emergency Management Joint Powers Agreement.
There were no comments.

2.5 World Jr. Hockey Tournament services and Alerus Concert Fund.
Mayor Brown reported they have $300,000 budgeted this year for marketing the community and suggesting that we be allowed to spend up to $200,000 on the World Juniors and $100,000 for the Alerus concert fund, and want to make sure this event has positive impact on the community and causes minimal disruption to our residents daily life, great opportunity and great event and that the City has been working with the World Junior organizers for over a year and important to capitalize on the opportunity and work to insure a safe and positive event for the community and region.

Tanya Kuntz, event manager for the World Junior Tournament, and Cheri Reitmeier, associated with REA, made a brief presentation and update on World Juniors. Ms. Kuntz stated that Mayor Brown and several others traveled to Finland to observe tournament there last year and year prior were in Halifax, Nova Scotia for the event in Canada; and are pleased to bring this event to Grand Forks, and asked for consideration of the monies and that the three main categories for the city undergoing this effort are public safety, transportation and hospitality. She stated it was exceptional to have two gems like the Alerus and Ralph Engelstad Arena in a city our size and have challenges of hosting an international event and bringing our transportation and security together - they have asked USA Hockey and Hockey Canada to work with us, not equipped with adequate hotel space in terms of full service hotels, that getting to Grand Forks via air travel was a challenge and have been working with airlines for over a year to come up with solutions to minimize that challenge. Many have perhaps heard of the summer camp that was here with teams from Finland, Sweden, USA Blue and USA White competing for their spots in the upcoming tournament and were granted that event over Lake Placid and expect more spin-offs of this but addressing some of the security, transportation, hospitality issues that are a challenge.

Ms. Reitmeier, chairperson of community events, reported on some of the things they are doing within the community - that in addition to the summer camp where players attended the Farmers Market; they will have a booth at the Chamber Ice Cream Social event on August 30, and participate in the French Fry Feed on September 9. She stated they are trying to recruit for volunteers, need about 1500 more volunteers and would like people to contact Gerilyn Reitmeier, who is volunteer coordinator, and looking for people to do everything. She stated some organizations interested in showcasing their organization during the event (Lions Christmas in the Park event will have an international theme this year in celebration of World Juniors, that the Empire Theatre has offered them their facility for one full day and will have hockey movies at no charge for children, PG movies), and to make people explore the city a little more is their goal; they have a voluntary informational meeting scheduled for November 4, carnival type atmosphere where can get people's talents matched up with things they need, and have something at the Alerus Center from December 31 through January 2, Fanfest, where the Stanley Cup is going to be - family oriented event and fun things for the families to do. Motor Mania will be part of that event and hope to make annual reoccurring theme.

Ms. Kuntz stated utilizing both facilities during the event and have prepared some information packets for council, highlighting current volunteer list as far as game schedule and various things associated with the tournament, the CVB has acted as central housing bureau and have high interest of people wanting to host their homes for rent which helps in terms of hotel space, CVB has offered help in assistance with people hosting their homes. The Chamber has been assisting in getting people together to talk about community events and have come up with a calendar which the CVB is going to make available to every hotel and restaurant and make sure people staying at hotels know what is happening, and distributed packets to council members. It was noted that volunteers can call 701-777-0832 to offer their services, asking for 25-hour commitments across the 11-day tournament and have to be 16 years of age or older.

Council Member Kerian stated in addition to the funds that our safety, security and transportation people are being utilized to work on this. Ms. Kuntz stated they have integrated effort on behalf of all sectors giving advise, opinions and plan addresses the issues from a business standpoint of getting people out into the community and getting economic impact to happen.

Council Member Brooks questioned funding and extra cost the City occurs when events like this happen, and if this is where those dollars are going to come from for additional security, overtime for police, fire, etc. Pete Haga stated the point was to figure out what services needed, price tag for those services and where money was to come from instead of reacting to that at a later time. Ms. Kuntz stated they went before the Special Events funding and were denied and this was one of the areas referred to because of the enormity of the event.

Council Member Brooks stated he had gone to Northwest headquarters re. Airport Authority and discussed items related there, but one of the things that came up was a concern re. airlines and how to be able to fly all these people in for this event, and were informed that Mike Stromberg and staff at REA had contacted them sometime ago and have kept them posted as to exact numbers and what is happening with this; Northwest is tracking this and as people make their reservations and can react as they fill up and bring in larger planes, etc. and that Northwest has done a coordinated effort with REA staff and feels confident that they will be able to meet the needs that we have here. Ms. Kuntz stated they will have trickle in effort from mid-December and will be challenge to get everyone out after the tournament. Council Member Brooks stated Northwest is looking at that too and working on that.

Council Member Gershman advised that the money is from economic development monies, 2163, to promote city and economic development and that this is not coming from property taxes. Council Member Kreun noted that these are in-kind services that we will be paying for and City setting aside that funding in 2163 to pay our staff to do these tasks.

Julie Rygg, executive director of Convention & Visitors Bureau, reported on what the CVB has been doing on the hospitality level because part of these funds are for hospitality and are at a level that the CVB could not do, and when USA Hockey here for initial site visit sponsored community luncheon at the Alerus, have given $15,000 sponsorship to World Juniors, helped secure matching funds from State of MN for advertising improvements, coordinated and ran housing bureau which ended on August 1, they have booked hotel rooms for group tours, media, scouts, teams and worked with REA on getting those rooms taken care of, assisting people with World Junior website for them to get their homes available for rent on the website and for people who are looking to rent homes and for those not using website staff is helping them, coordinating and hosting familiarization tours for hospitality staff in Grand Forks and have two set up in November, compiling event booklets for entire hospitality industry in Grand Forks giving information about advance happening with the Juniors , ticket information, information about participating countries and teams, transportation schedules and information that staff will know so answer questions for people coming to the community; that they worked with REA marketing director to make sure welcome banners in mall, airport and hotels, offered to do VIP gifts in hotel rooms, continue to promote the event in their monthly ad in Winnipeg Free Press. TV plus as doing promotions in Grand Forks Herald wrap - continue to update event in bi-monthly letter, hosted meetings for hotels, restaurants and bars and coordinated those with REA staff. have link on homepage of website directly to the World Junior site. They are working with city staff on hospitality side of this request, getting bids for banners, etc, printed an additional 25,000 copies of their visitor guide this year for the World Juniors this year and including World Junior promotional info. in all inquiries that go out from their office.

Sandy Glas, chair of the Event Center Commission, and Charlie Jeske, executive director of the Alerus Center., stated they made presentation to the council re. strategic planning for the Alerus Center and first in planning is programming, and in order for Alerus to be successful, it needs to be able to provide a good base of programming, increasingly event promoters are asking venues to share in event risk, that we need to be competitive in seeking events and bringing them to our community, and do in a way to make that risk manageable, and are proposing an event fund that will help to attract and manage those events.

Council Member Glassheim stated that he was on a radio program today, and that people were saying that an attitude of making profit should dominate the event center and that if need for additional funds perhaps the tickets should reflect that so income goes up in order to cover costs, and wondered if a 50-cent ticket might not be help in establishing this fund or if that was discussed. It was noted that the arena side is subsidizing the convention side - that the revenues from the arena events are off-setting expenses on the convention side. Council Member Glassheim asked whether 50 cents would go a long way towards setting this fund up. Mr. Jeske stated the finance committee with the Alerus Commission is looking at a couple options - that being one of them, and hope to make this fund large enough to create a large enough pool that they can go after large events or/concerts because the risk protection, some events getting pretty costly.

Mr. Jeske stated that the whole industry has changed, it used to be that guarantees were minimal and a percentage deal on the backside, and about 10-12 years ago several creative agencies wanted to be guaranteed a price of their coming in plus being paid on the backside and once started drove price to the guarantee where we are now, what happened last summer in the industry and now soft market and promoters pressured by agencies to do this guarantee, and coming back to the venues and third party to share that risk for that protection.

Council Member Brooks stated were committed to the Alerus and it has tremendous potential but this motion should this pass next week the City becomes partner in that risk venture, and that the Alerus is a convention center, that our motion contains the word "$100,000 concert fund" and we are going to restrict what using it for, but rather $100,000 to the Alerus fund, whether convention and concert fund. Mr. Jeske stated at Commission meeting there was discussion to call it concert/event fund.

Council Member Hamerlik asked if they tack 50/cents onto a ticket as suggested, what would be approximate amount that would staying in Grand Forks out of the 50 cents. Mr. Jeske stated 50/cents would probably add anywhere from $50 to $75,000/year-the facility fee doesn't go to the promoter but stays with the building; and negotiate a facility fee with each concert - are looking at all options.

2.6 Create special assessment district for Project No. 5150.1, Dist.. 409.1, storm sewer on S. 38th Street from 36th Ave.S. to Southend Drainway)._____________________________
Council Member Christensen asked for explanation of the project. Cindy Voigt, asst. city
engineer reported that this project was a future special assessment district and that a large portion of that project is now within the city limits - created the future assessment district and that when property annexed, create a special assessment district so they can pay their share of the project. The map in the staff report shows area that will be special assessed during 2004; portions of the project are still outside the city limits. There is no tapping fees, only future assessments. Council Member Christensen asked when we levy the special assessments if that will come out of the City's special assessment fund. Ms. Voigt stated the City bonded this project years ago and has been paying for it - now can special assess these properties and start collecting our monies back. Council Member Kreun stated when we carry that money, there is a cost to that money involved and asked if we assess the cost of that money. The acting city auditor reported that we haven't been. It was noted that we have been paying that down as a City and they pay the reduced special assessment fee without a cost of money attached to that.

2.7 Application to move wastewater storage building from 2302 State Mill Road to 950 N. 47th St. (public works site).__________________________________________________
Council Member Hamerlik asked for layout and location of the building and asked if turning the Interstate into another Highway 2. Ms. Voigt presented map on overhead showing location of the building (in the far west corner of the lot); and that they have bids out for a sand/salt building which will be a tall structure along the Interstate, 8 ft. walls and big canopy, and from Interstate see 45 ft. panel. Council Member Hamerlik stated they added building not long ago and now adding two more buildings, and concerned about how it looks from the Interstate.

Todd Feland, director of public works, reported their backyard is on the Interstate and this is nice
building and fairly far away from the Interstate and plan is to clean up backyard, planted some trees in
the last year and trying to put materials indoors and have added a lot of flood protection stuff, temp.
walls, etc. and this building will move some of the stuff we have in our public works building and put
it in this heated building and also to clean up our area - goal to make it look better.

2.8 Final certification of infrastructure connection fees (tapping) for Project No. 4708, watermain on 17th Ave. S. from S. 34th St. to Industrial Park._________________
Council Member Christensen asked if passed tapping fee policy that requires the payment of
interest and now bringing these projects in and spreading specials and if it wouldn't be more prudent to have the interest charged on the specials, and if have policy that affects everybody and this is land not annexed, it seems should be using that method of tapping fees, special assessments and interest and if we could do it. Mr. Swanson stated that is something they could look at, however, this is a tapping fee that was set up in the 1990's and would have been adopted and established under the policies then effective. Council Member Christensen stated that the policy then and bringing this in under our current policy - Mr. Swanson stated they would have established the tapping fees at the time the area was created in 1998, and would look to see if the new policy can apply, but is skeptical. He stated that the new policy now applies at the time those tapping zones are created, not at the time the cost is actually spread.

Council Member Brooks stated these were established before and can't make any changes now but
any areas from here forward could look at a change in our policy. Mr. Swanson stated the creation of
the tapping zone and the initiation and have already taken those steps to make that change.

Council Member Kreun asked if the same policy be brought in on future special assessments as far as
interest goes. Mr. Swanson stated there is different legislation that applies to special assessments and
what costs can be attributable there - you have two different procedures because the tapping fees is
more advantageous and other is special assessment. Under prior years' action before recent amend-
ment to the Century Code, you could not get the interest but had to depreciate the capital investment
of the project, but that has been changed so have more option of recouping not only actual construc-
tion costs but your carrying costs. He stated he thinks there is a staff report and some prior actions
this body has taken on that.

2.9 Final certification of infrastructure connection fees (tapping) for Project No. 4463, storm sewer on S. 42nd Street from DeMers Avenue to 17th Ave.S.______________
There were no comments.

2.10 Amendment to construction phase engineering contract with Webster, Foster & Weston for Project No. 5382, TCSP Greenway Trail Enhancement.________________________
Council Member Brooks stated there is a proposed breakout of the amendment, $14,500
relates to repairing unacceptable work and asked if we are paying for that. Mark Walker, asst. city engineer, explained that the $14,500 is not relative to the construction cost, relative to the re-inspection costs for the engineering firm to re-inspect the work, tests had to be done on the concrete, etc. There were approximately 37 locations where pavement was removed and replaced. He stated that the specifications they were working with are DOT specs. and they indicate that if there is unacceptable work the contractor is required to remove it and replace it at his expense, which he did, but not plus engineering fees. He stated the contract was set up that if contractor goes beyond the completion date, he is required to pay liquidated damages and contractor went 17 days beyond the completion date and charged him $400/day which is liquidated damage established by the DOT, and that amounts to $6800 and will be used to pay for part of the funding of this engineering amendment.

Council Member Gershman stated that under DOT regulations we don't have much recourse, but about $55,800 including the $6800 that this contractor cost the City. Mr. Walker stated the DOT specifications don't allow us to recoup anything beyond the liquidated damages, have reviewed that with them and our understanding of what we can do. Mr. Swanson stated he has not reviewed the DOT contract, however, his understanding from prior involvement with DOT contracts, Mr. Walker's comments are accurate.

Mr. Walker stated that the $54,000 and some of that work not attributed by the contractor, that $4500 were some things the City added to the contract and that the $9,000 indicated for future payroll subcontractor close-out, don't anticipate using all that funding, that funding is something used on an as needed basis. It was noted that the total contract was $545,000 or $600,000. Mr. Bergum, WFW, stated they are required to take low bidder and was lot lower than what thought engineering-wise should have been, and the costs recouping now are costs that if rejected him as low bidder, would have ended up paying.

Council Member Christensen asked what retainage is on project; and Mr. Bergum stated DOT standard is 4% on that and liquidated damages held back. Mr. Walker stated $11,000 is current retainage and $6800 being withheld for liquidated damages, and still holding those amounts. Council Member Christensen stated they should review the contract.

2.11 Bids for Project No. 4948.7, Residuals Storage Ponds Slope Protection.
No comments.

2.12 Matter of request from Building Inspections Division and Fire Department for ordinance to amend Sections 19-0101 through 19-0519 and Article 2, Section 12-0201 of the Grand Forks City Code relating to adoption of the Building, Fire, Mechanical, Electrical and Plumbing Codes._______________________________________________
Council Member Kerian asked what impact ordinance would have on residents. Bev Collings,
Inspections, stated regulations haven't changed in the construction of new homes and she didn't
believe there was anything in this Code to impact residents for building a new home or remodeling a
home. She noted that the City was under Uniform Building Code for approx. 50 years - that there
were a number of other Codes, and that they came together with an International Code and won't
notice a significant difference in building a home or remodeling.

Council Member Glassheim questioned if there was a change in fees. Ms. Collings stated we
have not changed fee schedule since in 1998 or 1999, that fees based on value of work so don't
need to increase building permit fees because value of work goes up with value of construction
materials and labor - and are current rates. She stated the building fee for the Inspection Office is
the building permit fee, that fees for mechanical, plumbing, electrical are minor to that fee - and
building permit fee goes up with the value of the building and if building costs more to build, fees
automatically go up. She stated in 1998 or 1999 they looked at first cost fees

2.13 Sole source bid request by police department for advanced robotic equipment.
No comments.
2.14 Downtown Study Group Report.
Mayor Brown thanked Lonnie Laffen for chairing the Downtown Study Group and
thanked members for their work in this report. Keith Lund, Urban Development, reported that the Group after visioning exercised and surveying downtown merchants, property owners and residents, developed their mission statements and recommendation, and listed recommendations:
1) dedicate resources to facilitate downtown development, both human and financial, with special emphasis placed on creation of housing due to the strong demand for downtown residential units.
2) establish a central point of contact for developers looking to downtown for business opportunities.
3) develop, manage and market events downtown and in Community Green to increase the cultural, recreational and economic vitality of downtown.
4) establish a central agency to coordinate downtown and community events within the current city structure.

Council Member Brooks stated recommendations are there but dollar amounts have not come forward - and that as he hears comments and this is another task force for downtown and have to find some solution down there - that there are other areas in the city that need assistance (North Washington, South Washington) - but can't continue to circulate downtown and dollars coming back from program income from other areas of the city and have to redirect them back to the areas they cane from and cannot ignore the other areas of town that need to do some things.

Council Member Glassheim asked if accept this report and that one of the primary findings of it has to do with the low vacancy rate for apartments and high demand for that, and his question is if they accept this are they accepting any dedication of funds from CDBG and what will we be approving.
Mr. Lund stated assuming they approve the report, it is the concept of dedicating resources in the report, that this report does not specify particular dollar amounts and does not specify a funding source - that they have talked about CDBG funds and primary sector businesses have received Growth Fund assistance and not dedicating any particular dollar amount or pool of money for development but only encouraging city staff to work to identify the resources that will bring development downtown.

Council Member Glassheim asked for review of requirements that are attached to these funds in terms of low and moderate income vs. other kinds of projects - limited or bound in the use of these funds or at discretion. Mr. Lund stated that CDBGF must meet one of there national objectives: benefit to low and moderate income individuals, to eliminate or prevent slum and blight or to address an urgent community need (flood of 1997) - that CDBG funds cannot be used to construct new housing but can be used for pre-development activity such as acquisition, site clearance and when interject those dollars need to have a low and moderate income component so your development mirrors the percentage of the contributions that CDBG funds to the entire budget of the project - Growth Fund assistance is reserved for primary sector businesses and the City's economic development dollars are more flexible but governed by City Code - and these are resources he would anticipate when looking at projects downtown.

Council Member Glassheim stated there would be proposals in the future to move forward with something relative to this and asked if staff will be able to provide choices, that there are x amount of dollars to flow in the community in the next several years, whether staff can provide some options for the use of that money - that low and moderate housing throughout the northend has been discussed earlier and hopes that when presented with something, it is a number of items that would compete for the potential funding available.

Council Member Hamerlik stated that the recommended action is to accept the Downtown Study Group's final report, and next part of the recommendation is to adept the mission statement and approve recommendations - if approve the recommendations, does that mean we are going to establish a person to coordinate downtown development, manage events at central point downtown and have to do with activities rather than proposal - that the dollar amounts are not there, but reluctant to say we're going to approve these recommendations and go ahead with that - doesn't buy into that at this time. Mayor Brown stated he already sees us doing that as a city, sees establishing a central point for developers, see it managing the market events downtown, using existing staff; defining roles and making people accountable and responsible for this plan. Mr. Lund stated that there is one additional Community Development Specialist position in the 2005 budget that was put in the budget before the findings and recommendations and before the task force began their work.

Council Member Kerian stated a focus is one of the things we need and knowing where you can go for downtown activities and development is an important step for us, that the amount of retail space that is available is little less and need more housing downtown, but one concern that she didn't see in the recommendations is the amount of office space and would look at that as well. Mr. Lund stated recommendation 2 would encompass that and support all downtown development, commercial, residential and retail.

Council Member Christensen stated that the report is merely a report with recommendations and will be received and filed and can then move towards implementation of the recommendations made by the Group, whether or not all of the recommendations will be implemented or not goes with the number of votes and how people championed their various positions. He stated we have an opportunity as a community to gather up the CDBG money that is being repaid from all areas of the community and perhaps finish that which was started - that we have areas in the downtown that facilitate housing, that infrastructure already there, land there and let us not think we should turn our back on the downtown but let us finish what was started - that he has his own ideas and does have an agenda and will be articulating that soon - and would hope to approach these issues and develop a better downtown for all of us.

Mr. Lund reported that the Downtown Leadership Group will be sunsetting at the end of the year and thanked that Group, all the current and former board members, they marketed the downtown as a destination as to itself and DLG was responsible for creating ArtFest and Farmers Market, and special thanks to Michael Maidenberg, former member of DDC and DLG and instrumental in creating the DLG and securing Knight Foundation Grant Funds for the Group, and special thank you to Trai Dockter, who was hired as executive director of the DLG, and pleased to hear that she will continue to be an advocate of downtown and supervise the planning of the 2005 ArtFest and board member of Friends of Downtown.

MAYOR AND COUNCIL COMMENTS

1) Council Member Brooks reported that the Gateway Committee is meeting and next meeting scheduled for September 14 and are moving forward and trying to develop some ideas.
He stated that the Fargo Forum had interesting editorial yesterday related to the Alerus and the Fargodome, and the two facilities working together when it comes to concerts, and while working on getting our two facilities here to work together, and some day work with Fargo and whatever makes Valley strong is good for all of us.
He questioned status of Human Resource director position. Mayor Brown stated they are coming down to the final 3 interviews in the next 10 days and moving forward.

2) Council Member Hamerlik stated the Fargo Forum did have an article and was surprised at the errors in it.

3) Council Member Gershman stated he appreciated proclamation on SEI and would like to add thanks to Job Service and that the Economic Development team worked very hard in doing lot of footwork and background work with SEI and Job Service- and also thanked Trai Dockter for her services to the city.

ADJOURN

It was moved by Council Member Hamerlik and seconded by Council Member Kreun to adjourn. Carried 7 votes affirmative.

Respectfully submitted,



Candi Stjern
Acting City Auditor