Council Minutes

Minutes/Committee of the Whole
Monday, October 25, 2004 - 7:00 p.m.

The City Council met as the Committee of the Whole on Monday, October 25, 2004 at 7:15 p.m. in the council chambers in City Hall with Mayor Brown presiding. Present at roll call were: Council Members Brooks, Hamerlik, Glassheim, Gershman, Christensen, Kerian, Kreun, - 7; absent: - 0.

Mayor Brown read the following announcements.
1) The rezoning study for the UND area has been established and will begin meeting. Members of the committee are from City Council-Curt Kreun and Dorette Kerian, from Planning and Zoning – Robert Kweit, Gary Malm, and Paula Lee, from UND Student Government Ryan Rauschenberger, and community members Hilary Klinicke and Kim Novak. Mayor Brown thanked them for agreeing to serve on this committee.
2) There is still a need for citizens to serve on the Board of the Grand Forks Convention and Visitors Bureau. He asked that anyone interested please submit their name or nomination to the Mayor’s Office.
3) Mayor Brown offered congratulations to the Center for Innovation and all involved in catapulting UND School of Business to the 14th spot among the top 25 entrepreneurial schools nationwide. Congratulations to Bruce Gjovig and Dean Elbert on that accomplishment! He stated that this congratulations extends into the community, as when UND does well so does the rest of our community and this demonstrates the entrepreneurial efforts that have occurred in the past several years, many with some degree of public support and this reinforces the view that our community is willing and able to look for new and innovative ways to move forward.
4) Congratulations to Rydell Chevrolet on their 50th Anniversary and the great celebration that was held yesterday. Thanks to Wes Rydell for being a strong community partner who has chosen to invest in our community. Over 4,000 people attended the celebration yesterday with the oldest vehicle being from 1932 and also including the original truck sold which was purchased back in 1950 and has been restored.
5) Our community had the privilege of hosting a group of Norwegian dignitaries and teachers last week and this shows we are using the relationships that we have been nurturing to further the growth and opportunities for our community.
6) Wish everyone a Happy Halloween and encourage everyone to exercise caution and have a safe and happy holiday and that safety tips have been posted on the city web site, www.grandforksgov.com.

2.1 Budget Amendment (2004 Special Events and GF Regional Airport).
Council Member Brooks inquired how much of the amount being amended is reimbursable from the federal government or Homeland Security. Chief Packett stated that $44,566.97 is a direct reimbursement from the federal government or event promoters, leaving $34,598.79 which they are unable to bill out to any organization. Chief Packett stated that when the 2004 budget was compiled they did not have a good handle on how the reimbursements would flow, but for 2005 should be closer in the budget. Council Member Gershman stated that an amount is budgeted for special events in 2163. Council Member Brooks inquired what the budget was for these expenses. Jerath stated that the total amount budgeted was $100,000, with 1st quarter expenses of $13,241.87, 2nd quarter expenses of $25,375.16, and this 3rd quarter request of $34,598.79, leaving $26,784.18 for the 4th quarter.

Council Member Hamerlik expressed concern over the continuing decline in the amount being budgeted for the Public Events and Safety Committee which has gone from $165,000 3 years ago to $100,000 last year, and then to $50,000 for next year in order to balance the budget. He expressed that he has a concern for the continuing decline in funding with the increasing amount of events requiring special security, including the upcoming events in December 2004 and January 2005, with which we do have some special help. Council Member Brooks stated that this may be an area where Council needs to look at increasing this amount in 2005 and will probably need to look at bringing a budget amendment forward for an increase in this area as we move forward in 2005.

2.2 Budget Amendment (Police Department)___________ ______________
No comments.

2.3 Create Special Assessment District for Project No. 5672, paving 55th Avenue S. (Belmont Road to Cherry Street)
Council Member Kreun inquired that this questions would pertain to all three of the special assessment districts that are on the agenda for this evening. He stated that he wants to have a clear understanding of how under the current system we are able to recoup our costs for the areas that are now in the district, but outside the City limits, once those properties are annexed into the City. He added that with connection fees there was a policy change made that allowed us to offset and recover our costs at a later date once the property enters the city and wants to make sure there is that ability in these cases as well.

Cindy Voigt, Assistant City Engineer, stated that typically when there is a special assessment district sell bond for whole amount and then when these come into the City create a revised district and bring forward like tapping ones done in the last few months and then are in the city and respread to all the lots and somewhere down the future we are able to pay back the bond fund for those properties. Council Member Kreun asked whether that includes the whole amount, as in the past there had been some cases where the City was not able to recover the whole amount as the property did not come in for say 10 years and then the City ended up not being reimbursed for 10 years of those payments.

Howard Swanson, City Attorney, stated that a future special assessment is held and levied against new properties that are brought in and the City can recoup normal costs and interest that are assigned up front against those new properties and depending on what phase you are in there is the ability to then also issue refunds or credits to other properties in the district whose assessments decrease due to the respreading.

Council Member Christensen brought up that in May there was a revision of the code done for infrastructure connection fees to allow us to recover our costs for areas outside the city limits at the time they come into the City limits. Voigt stated that pertains only to those connection fees, and not to the current projects which are being done as future special assessments.

The group reviewed a map of the project and discussed the differences between the connection fee ordinance revision that was done in May and the way that future special assessments are handled. Swanson stated that the section of ordinance that was referred to by Council Member Christensen only pertains to those charges being levied as a connection fee and does not pertain to these projects that are before us at this time which are being done as future special assessments. He stated that the future assessments are covered by Section 40-23.19 of Century Code, which provides for a reduction in the amount of special assessments if there is determined depreciation of the project. The amendment that the City of GF sought and was successful in getting eliminated a requirement that previously existed as to how that depreciation was calculated. He continued that now the governing body determines a reasonable depreciation for each particular type of project, whether it be roadways, sewers, etc., so in answer to the question, yes the City can recover those dollars including interest cost assuming that there is not a depreciation of the project prior to the implementation of the new special assessments. Council Member Christensen stated that the tapping fee process was changed for depreciation to better our chance of recouping our costs in those unannexed areas and inquired whether we need to develop a process for depreciation for future special assessments. Swanson answered that the depreciation schedule that was adopted was not specific to connection fees, but was rather a policy on depreciation in general and as such could be used for future special assessments. Swanson continued that the intent of the policy that the process being referred to in this item is a future special assessment and there would be a downside to viewing it as a connecton fee in that those are tied to be paid at the time of a building permit being issued, with limited ability to spread an often times rather large bill out over a short period of time, whereas with future assessment can be spread over a longer time. Swanson stated that the revision of the depreciation schedule gives us a better chance of recouping our full amount in the previously unannexed areas. Swanson stated that the items on the agenda today are only to approve the creation of a special assessment district and letting those property owners know that sometime in the future their property may be assessed for this improvement. Council Member Kreun stated that his concern is whether the policy change that was done has achieved what we desired in terms of recouping our costs. Swanson stated that he does believe that the City is in a better position now that they were before the changes were adopted and that he is not aware of any additional legislation on city or state level which would be necessary to meet our needs.

Al Grasser, City Engineer, stated that he will provide for the Council a copy of the depreciation schedule that was adopted last spring. He added that, philosophically, with each project they debate the pros and cons of whether to use a connection fee or a future special assessment in a given area. One determining factor is often the timeline as to when the properties will be coming into the City, if the development appears likely to occur within 5-10 years, then the future assessment process typically is more efficient and easier to track. He added that typically if development were projected to occur 20 or more years out then they would look at a conncetion fee as a better choice.

Council Member Brooks reiterated that his main concern is whether all charges and interest costs associated with the unannexed land are being recouped. Council Member Christensen stated that the ordinance passed provides for charging of the actual interest rate plus 1.75%. Swanson stated that only applies to the connection fees, as when it is a special assessment the state usury laws apply and this would be too high an addition. Swanson added that the connection fees are governed by the City Code that was updated in May and can not be special assessed, however the items on the agenda this evening is governed by state special assessment code and that if council would like to propose adding ordinance to cover these under Home Rule they could instruct him to pursue that, but his feeling is that would not be necessary to accomplish what we are looking to.

2.4 Create Special Assessment District for Project 5702, paving 40th Avenue South (S 20th Street to Reummele Road)
No comments.

2.5 Create Special Assessment District for Project 5703, paving 47th Avenue S. (S. Washington Street to Cherry Street) ______________ __
Council Member Kerian inquired what the process was for all of these projects, and in particular if all property owners, including those out of the City limits received notice of these projects. Voigt stated that the standard process will commence, the special assessment commission will review the project and assign benefit, public meetings will be scheduled, and individual notices will be sent to all property owners notifying them of the project and their estimated share of the cost.

2.6 Utility Relocation Agreement with Xcel Energy for Project No. 5635, GF Flood Protection Project.
No comments.


INFORMATIONAL ITEMS

No comments.

CITIZEN REQUESTS

No comments.

ADMINISTRATIVE COORDINATOR COMMENTS

No comments.

MAYOR AND COUNCIL MEMBER COMMENTS

1) Council Member Kreun invited everyone to attend an open house public information meeting at the Alerus Center tomorrow, October 26 from 4:30 to 7:00 p.m.at the Alerus Center to hear information on the proposed underpass. Council Member Kreun also stated that he was very disheartened to hear of the damage to the Japanese Garden that has occurred on three occasions and encouraged anyone with information on the vandalism to contact the Police Department.

2) Council Member Gershman extended a congratulations to Rydell on their open house and also to the UND Business School for their success in being ranked 14th in nation for entrepreneurship. He also expressed appreciation to Chief Packett and members of the Police Department for their response to constituent reports of an individual living in the Greenway and also for following up with the constituent so they knew how the situation was resolved.

ADJOURN

It was moved by Council Member Gershman and seconded by Council Member Kerian to adjourn. Carried 7 votes affirmative.

Respectfully submitted,



Saroj Jerath
Deputy City Auditor