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Council Minutes

PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF GRAND FORKS, NORTH DAKOTA
November 1, 2004

The city council of the city of Grand Forks, North Dakota met in the council chambers in City Hall on Monday, November 1, 2004 at the hour of 7:00 o’clock p.m. with Mayor Brown presiding. Present at roll call were Council Members Brooks, Hamerlik, Glassheim, Gershman, Christensen, Kerian, Kreun - 7; absent: none.

Several students of the 5th and 6th Grade classes at St. Michael's School, Gerri Lorenz, principal, led the city council in the pledge of allegiance to the flag.

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 commented on various events during the past week and upcoming events:
that he, several council members and staff will be meeting with officials of Hillsboro this Wednesday, and that he looks forward to talking with neighbors in Hillsboro.
he stated with the World Juniors coming soon the big focus is with organizing all the volunteers to do the hundreds of necessary jobs to make the tournament go smoothly, the first major organizational event will be this Thursday at the Ralph at 7:00 p.m., and that there will be people coming from Winnipeg and even farther who are interested in volunteering.
he asked that they think about what difference it can make if we don't vote, and to please vote tomorrow.
that the Finance/Development Standby Committee meeting has been scheduled for Wednesday, November 3, 2004 at 4:30 p.m. in Room A-101.

MONTHLY FLOOD PROTECTION PROJECT UPDATE

Al Grasser, city engineer, reported that they are coming close to end of the construction season, that 3rd Street is planned to be opened by the end of this week, 62nd Avenue South was opened last week. He stated that the historical house relocations at the Campbell site have been completed, making room for the flood protection project. He stated that the federal appropriation process hasn't changed and are running on a continuing resolution and that means that the funding levels are set as in last year's levels and is causing little bit of cash flow concern on contractors as had big month last month in getting work done. He stated there are no changes on the State side but that this is a legislative year. He stated we had significant precipitation over the last weekend, that we are seeing some rapid rises in the river now, last national weather service forecast for Grand Forks was 31 ft. this Thursday and river is up to 25 or 26' now but won't cause any significant problems for the City of Grand Forks, but one project that is suffering is the north end boat ramp project, ramp is under water and that will delay the project. A short video presentation was made.

Melanie Parvey-Biby, greenway coordinator, reported they had received announcement that Steve Mullally, superintendent of Parks for Grand Forks, had received the Trail Worker award for North Dakota, and was recognized for his work as chairman of the Greenway Technical Committee, and appreciate support and guidance he has offered to the committee. She stated that one of the projects that committee has worked on is developing an educational brochure to market the greenway around the region, that over the last year they have printed over 10,000 brochures and distributed them through North Dakota, Minnesota and Manitoba and now working on a condensed version of that brochure because of requests to get them to people in the region. Upcoming events for the greenway include the Veterans Day race on November 11 at Lincoln Drive Park hosted by the Park District and the Family Support Center at the AFB, and Christmas in the Park begins the Friday after Thanksgiving.

Council Member Brooks asked what criteria was for selection of location of the bridges, and whether there will be landscaping. Ms. Biby stated when the original plans were done for the recreation project, the community and the Army Corps of Engineers worked on greenway master plan and looked at all possible locations but what made sense was to tie that trail system together and is north end of the trail system tying to the south end of the trail system and providing a loop system within the two communities. She stated there will be landscaping near pedestrian bridges as well as cleanup of the area.

Council Member Gershman asked for an update on the Columbia Road/32nd Avenue South project. Mr. Grasser stated that the plan is to have that open by the end of this week, basic paving work is about done but they are getting in the signing and striping in order to open up the lanes, the striping going in this fall will be temporary and have to go in next spring for permanent striping.

ADOPT RESOLUTION TO VACATE FRANKLIN AVENUE
BETWEEN SOUTH 3RD AND 4TH STREETS IN VIET'S
ADDITION

The city auditor reported that pursuant to instructions by the city council after having received a petition to vacate all of Franklin Avenue north previously vacated between South 3rd Street and South 4th Street adjacent to Lots 11 and 12, Block 5 and Lots 1 and 2, Block 8 of Viet's Addition, 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 opened the public hearing, there were no comments and the public hearing was closed.

It was moved by Council Member Kreun and seconded by Council Member Kerian that we find and determine an insufficiency of protest to the proposed vacation, and introduce the following resolution which was presented and read: Document No. 8611 - Resolution. Carried 7 votes affirmative.

ADOPT RESOLUTION TO VACATE SERVICE ROAD
ADJACENT TO LOTS 2 AND 3, BLOCK 1, HARTY'S
PROPERTY SUBDIVISION

The city auditor reported that pursuant to instructions by the city council after having received a petition to vacate lands platted as a 33-foot wide service road adjacent to Lots 2 and 3, Block 1, Harty's Property Subdivision, 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 opened the public hearing, there were no comments and the public hearing was closed.

It was moved by Council Member Kreun and seconded by Council Member Kerian that we find and determine an insufficiency of protest to the proposed vacation, and introduce the following resolution which was presented and read: Document No. 8612 - Resolution. Carried 7 votes affirmative.

APPROVE BUDGET AMENDMENTS
The staff report from the finance and administrative services director relating to budget amendment in the amount of $79,165.76 police overtime for 3rd quarter for 2004 special events, with recommendation to approve the budget amendment. It was moved by Council Member Kerian and seconded by Council Member Gershman that this recommendation be approved. Carried 7 votes affirmative.

The staff report from the police department relating to budget amendment in the amount of $49,512.09, with recommendation to bring unused Department of Justice Block Grant #7 funds into the 2004 budget from cash carryover and add interest earned in 2004. It was moved by Council Member Kerian and seconded by Council Member Gershman that this recommendation be approved. Carried 7 votes affirmative.

HOLD ITEMS RELATING TO CREATION OF SPECIAL
ASSESSMENT DISTRICT FOR PAVING PROJECTS 5672,
5702 AND 5703

The staff report from the engineering department relating to creating special assessment district for Project No. 5672, paving 55th Avenue South (Belmont Road to Cherry Street), with recommendation to create the special assessment district for Project No. 5672, District No. 606.

The staff report from the engineering department relating to creating special assessment district for Project No. 5702, paving 40th Avenue South (South 20th Street to Reummele Road), with recommendation to create the special assessment district for Project No. 5702, District No. 607.

The staff report from the engineering department relating to creating special assessment district for Project No.5703, paving 47th Avenue South (South Washington Street to Cherry Street), with recommendation to create special assessment district for Project No. 5703, District No. 608.

Council Member Kreun stated that the city auditor feels that we can better ourselves financially if we hold this for two weeks, and it was moved by Council Member Kreun that these items be held until the next city council meeting, November 15, 2004. Council Member Gershman seconded the motion. Carried 7 votes affirmative.

APPROVE AGREEMENT WITH XCEL ENERGY FOR
PROJECT NO. 5635, FLOOD PROTECTION PROJECT, PHASE
4, UTILITY RELOCATES

The staff report from the engineering department, relating to utility relocation agreement with Xcel Energy for Project No. 5635, Grand Forks Flood Protection Project, Phase 4, Utility Relocates, with recommendation to approve relocation agreement in the estimated amount of $56,000 with Xcel Energy to relocate their existing facilities as needed for Phase 4 of the flood protection project, contingent upon review of city attorney.

It was moved by Council Member Kerian and seconded by Council Member Gershman that this recommendation be approved. Carried 7 votes affirmative.

RECONSIDER ALLOCATION FOR 2005 CDBG PROGRAM

The staff report from the Office of Urban Development relating to the 2005 Community Development Block Grant (CDBG) Program, with recommendation to reconsider recommended allocation for 2005 CDBG Program.

Howard Swanson, City Attorney, stated that as a result of your motion to reconsider what you have before you is the original motion as if it has not yet been voted upon.

The original motion was as follows:

The staff report from the director of the Office of Urban Development relating to the 2005 Community Development Block Grant Program, with recommendation to approve recommendations of Finance and Development Committee for 2005 CDBG Program.

The staff report from the Finance and Development Committee relating to the 2005 CDBG Program, with the following recommendations:
1. That the Citizens Advisory Committee (CAC) participate in the development of the five-year
consolidated plan.
2. That the Citizens Advisory Committee review and make recommendations for the 2005 bricks and
mortar applications, excluding any City applications.
3. That the 2005 CDBHG funding be allocated as follows:
Program Administration $ 360,000.00
Public Service Program administered by United Way 250,000.00
Promenade infrastructure (prior obligation) 365,000.00
American Dream Homeownership Program 150,000.00
Non-profit Bricks and Mortar Projects 250,000.00
Downtown housing project (if the project does not proceed, funds would
be used for City Bricks and Mortar projects 425,000.00
Total estimated 2005 CDBG Funds $1,800.000.00

Council Member Christensen moved that to the extent that there is an excess of the funds, between the $1.8 and the $2.1 million, that money be used to fund additional Bricks and Mortar for the non-profit corporations. Council Member Gershman seconded the motion. Upon call for the question and upon voice vote, the motion carried 7 votes affirmative.

Council Member Christensen stated that the original motion was to allocate and the conservative set of numbers is 85% of the monies, $1.8 million (actually $1,861,000) and the allocation was (as above) and that is what passed and that the excess monies are the difference between the $1.8 and $2.1 which is about $300,000, and that he didn't want to change the allocation but that only issue would be how they would handle the excess, if we get an excess; and moved that there not be any change of the initial allocation of the $1.8 million and that the only thing to be considered is how we would handle the reallocation of any excess money above $1.8 million. Council Member Kreun seconded the motion.

Council Member Glassheim stated that Mr. Christensen's motion only wants a different allocation of the surplus and the motion has no figure in it for the surplus or targeting of it, the motion is just that we reconsider it and what is before us. Council Member Christensen stated that he didn't want to change any of the original allocation but just the surplus, if any, that we get and how that would be allocated.

Council Member Brooks stated what we have before us is the original proposal with its recommendation and we passed that original motion but added to it that any additional funds that come in be directed to the non-profits, and as reconsider it is hearing we wish to go with the recommendation as written in the staff report and add to that recommendation that any additional funds that come in be brought forward for the council to determine spending. Council Member Christensen stated that we had two motions and passed the one for $1.8 million and then had a second motion that was to handle the surplus and the surplus is all that we would like to talk about this evening, how to reallocate the surplus. if we get a surplus.

Council Member Christensen withdrew his motion.

Mr. Swanson stated that withdrawal of the motion is appropriate, however, he believes the motion to reconsider was for the entire CDBG allocation and was not limited to surplus, and have two options, can vote on the original motion by reconsidering it as if never voting on it, and that motion is subject to amendment. He stated it was difficult in giving guidance as he was not here at that meeting, that when you move to reconsider you consided the entire CDBG allocation and is not limited to surplus and not limited to the base allocation and have that entire matter before you and if any uncertainty it would be clearest as if the motion be restated including any amendments to identify what you would like to do with the base allocation as well as what do with any surplus allocation.

Council Member Kreun withdrew his second to the motion.

Council Member Kreun moved the original motion for the CDBG funding he would like to put into place the program administration at $360,000; Public Service Program administered by United Way, $250,000; Promenade infrastructure, $365,000; American Dream Homeownership Program, $150,000; Nonprofit Bricks and Mortar Projects, $250,000; Downtown housing projects, $425,000, totaling $1.800,000, (projected amount is $1.861 between $2.135 and difference could be close to $300,000); and if that $300,000 or any portion of it becomes available, the first $100,000 would go to the Bricks and Mortar portion of the nonprofit and remainder would be brought up and used for city infrastructure projects to benefit the low and moderate income people. Council Member Christensen seconded the motion.

Council Member Kerian asked what are the factors that go into the difference between the 85% and 100% and would decide if there would be more than the 85%. Greg Hoover, Urban Development, stated they look at 100% collection of the loans they have out that are due and the projected sales of land, those things can vary and may have people that get behind in their payments and land that doesn't get sold because we have to be very cautious about the caps they have on the program and are always conservative in their estimate and why go with the 85% as opposed to 100% because if did not realize that income would be over cap and have to come to council and asked for general funds to pay back the federal government and staff didn't think that was prudent thing to do.

Council Member Glassheim stated in the staff report attached to the Downtown housing project there is a note and if the note is included in the motion, (Note: if the project does not proceed, funds would be used for City Bricks and Mortar projects) and thought that was part of proceedings but if specifically is without stating it. Council Member Kreun' stated the plan is not to change anything except potential excess payments. Council Member Glassheim stated that under the motion, if the $425,000 project doesn't make, that $425,000 would go to city bricks and mortar; Council Member Kreun stated it would.

Council Member Glassheim moved to amend the motion to read that up to $300,000 of surplus funds would go to the nonprofits. Council Member Kerian seconded the motion.
Council Member Glassheim stated that the $425,000 set aside for Downtown Housing Project that there is no plan and nothing in writing, speculative idea, and have set aside monies as if a hard and fast project; and is likely to go to city projects. He stated we have applications from the nonprofits in the city that amount to $1.6 million and out of that have appropriated $250,000 and pretty meager and should beef it up. He stated that $150,000 of the $1.6 million in requests are targeted for the Shelter for the Homeless, Phase III, and that two years ago they wanted to upgrade their facilities and spread it over 3 years and now applying for Phase III for $150,000 and if give them that amount that leaves $100,000 to deal with $1.5 million in requests; more than half of the unanticipated funds are committed to the Downtown Housing Project or to city projects, and thinks the remaining should be left for the nonprofits if it comes in, and urged vote for the amendment.

Council Member Gershman stated we put out requests for proposals all the time and only way to develop a project is to have some funding that is set aside to see if generate some interest, and is to take this one time windfall we have over the next 5 years to see how we can regenerate that money so it can continue to produce income for the city so we can continue to help these worthy organizations. He stated if we don't get any proposals the council has taken a position and it goes back into Bricks and Mortar.

After further discussion Council Member Hamerlik and Christensen called for the question. Upon voice vote the motion carried.

The city auditor read the amendment and upon roll call the following voted "aye": Council Members Glassheim, Kerian - 2; voting "nay": Council Members Gershman, Christensen, Kreun, Brooks, Hamerlik - 5. Mayor Brown stated the amendment failed.

Upon call for the question on the original motion which was read by the city auditor as follows: That the allocation of the $1.8 million would be $360,000 for program administration; $250,000 to Public Service administered by United Way; $365,000 for Promenade Infrastructure; $150,000 for American Dream Homeownership Program; $250,000 for Nonprofit Bricks and Mortar Projects; and $425,000 for Downtown Housing project and if the project does not proceed funds would be used for city Bricks and Mortar projects and if excess funds become available the first $100,000 would go to nonprofit Bricks and Mortar and remainder to city infrastructure for LMI people.

Council Member Glassheim stated that these are Community Development Block Grant funds and they are targeted for low and moderate income people and that is one reason why try to keep them that way, and that the $425,000 going to help some developer make an apartment, and hopes not use that as an argument.

Council Member Christensen stated that the $425,000 is seed money, that EDC and Urban Development Office are working on various projects to attract outside investors to invest in our community and they are focusing on the downtown to see if we can develop some housing in the only area that qualifies for LMI
and try to lever this money and get it back and then regrant it in its traditional fashion, but only trying to use this money in an interim to get some housing here and refocus our efforts on completing the downtown; and that Urban Development staff is working with the development community to attract an RFP and expect will have that within 45 days and give it a chance.

Upon call for the question and upon roll call vote, the following voted "aye": Council Member Gershman, Christensen, Kerian, Kreun, Hamerlik; voting "nay": Brooks, Glassheim - 2, Mayor Brown declared the motion carried.
APPROVE BILL LISTING AND ESTIMATE SUMMARY

Vendor payment listing 04-21, dated October 29, 2004 and totaling $1,482,839.59 and Estimate Summary in the amount of $1,685,114.11, was presented and read.

It was moved by Council Member Gershman and seconded by Council Member Kreun that these bills be allowed and that the city auditor be authorized to issue warrants in payment of the same. Upon roll call the following voted "aye": Council Members Brooks, Hamerlik, Glassheim, Gershman, Christensen, Kerian, Kreun - 7; voting "nay": none. Mayor Brown declared the motion carried and the bills ordered paid.

APPROVE MINUTES OCTOBER 18, 2004

Typewritten copies of the minutes of the city council meeting held on Monday, October 18, 2004 were presented and read. It was moved by Council Member Gershman and seconded by Council Member Glassheim that the minutes be approved as read. Carried 7 votes affirmative.

MAYOR AND COUNCIL COMMENTS

1) Council Member Brooks reported that the Gateway Committee continues to meet, they meet two times each month; that the Salvage Yard Committee will be meeting Thursday to look at conditional use permits, and will bring back to city council in December. He noted that tomorrow is election day and asked that citizens go out to vote.

2) Council Member Christensen thanked staff for good job in embracing various projects and presenting options to city council.

3) Council Member Kerian reported that the Rezoning Study Committee will meet tomorrow at 4:30 p.m. in Room A101, that this is an organizational meeting to decide what issues are and how to tackle it.

4) Council Member Kreun stated there were a lot of kids out on Halloween, fun to watch and see them, kids well mannered and thanked kids in the community.

5) Council Member Gershman reported he had the honor of representing the city in attending the Airlift Tanker Assn. meeting last week in Dallas, Texas, there were 3500 Air Force men and women from around the world and 12 leadership awards given out and that Capt. Jeffrey Johns of the 319th Maintenance Squadron of Grand Forks Air Force Base received the award as support officer of the year. There were 63 men and women from Grand Forks Air Force Base and represented us well. He stated the seminars were extremely educational. He stated out of the entire U.S. only 3 cities sent representatives and Grand Forks was the only city that stayed the entire time and that this was noticed by many of the generals and colonels in the audience. He stated that one of the speakers was the Chairman of the Joint Chiefs of Staff, General Meyers, and other speakers, and that everyone of the speakers including the chairman of the Joint Chiefs of Staff opened up for questions from the 3500 men and women, and he was impressed with the candor of the questions. He stated on a personal observation that John Marshall represents us very well and knows many people in the Air Force, and the number of people he knows in the high regard with which he is held is something to witness. He stated it was moving to see the commitment to our country by the men and women of the Air Force at this convention, they sacrifice every day and many times put their lives on line so we can enjoy our freedom and one of our greatest freedoms is the right to vote and tomorrow one way to honor these men and women in our military is getting to the polls and exercise the right they protect.

ADJOURN

It was moved by Council Member Kreun and seconded by Council Member Christensen that we adjourn. Carried 7 votes affirmative.

Respectfully submitted,

John M. Schmisek
City Auditor

Approved:
___________________________________
Michael R. Brown, Mayor