Council Minutes

Minutes/Committee of the whole
Monday, July 25, 2005 - 7:00 p.m.

The city council met as the Committee of the whole on Monday, July 25, 2005 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, 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:
Reminded everyone that there will be ground and aerial mosquito spraying this evening, weather permitting, and a C130 will be expected here next week to assist with our mosquito control efforts.
He joined with Crime Stoppers at the police department and everyone in our region to attend the Community Forum on Methamphetamines as part of the National Night Out, August 2 from 5:00 to 9:00 p.m. at the Alerus Center; meth is a growing problem around the nation and our community is not immune from its affects, best way to make sure we address this problem is through awareness and important to attend the forum to find out about the effects and to show that meth is not welcome in our community; thanks to Crimestoppers and business and media outlets.
That he would like people to participate on the Mayor's Cabinet on Youth and please call 746-2607 if interested in helping get a youth voice to the policy making level..
He stated re. BRAC OEA meeting last week made some good progress, thanks to Mr. Duquette and staff and all the elected officials from the City and County for committing to work together on this effort, that although avoiding closure there will be an impact and important that all community leaders work together.
Thanks to everyone who made their homes and gardens available this weekend for the Grand Forks Horticultural Society's 21st Annual Garden Tour.
He thanked CVIC for asking him to be part of their fundraiser tonight for serving food at Sanders and thanked individuals and businesses that support organizations like this for time, effort and donations.
He thanked John W, Brown for 33 years of dedicated service to this community, most recently as a fire apparatus specialist in the fire department and presented him a certificate as expression of appreciation for services rendered to this community. He recognized Mr. Brown, his wife Sally and grandson, Calvin. Chief O'Neill also recognized Mr. Brown, stated that he is proud of him and what he has done for their department, and publicly thanked him. Council Member Kreun stated he and John went to high school together, honor to have him as a friend and city employee, and appreciate service provided to the city of Grand Forks. Mr. Johnson stated the City has been a great employer.

2.1 Application for property tax exemption for expanding business by Cirrus Design Corporation/Dakota Aircraft, Inc., 1400 South 48th Street.______
Mel Carsen, city assessor, reported several changes in the staff report where there was itemization of tax savings, line d, the taxable value should be $450,000 and not $685,000 and represents a taxable value on the $9 million addition; and line f should be $230,000 tax per year rather than the $35,000+, and not asking for exemption tonight but asking for a) to determine if there are no known competitors and then can speed up the process, and b) to set a public hearing date if you wish to go forward with this.

Council Member Gershman stated he likes the declining exemption which means first year 100%, then 80%, 60%, 40% and 20% and then pay the full tax, and that is consistent with what we have been doing, and would like to see it go forward.

Council Member Hamerlik stated a declining exemption has typically been the 100%, 80%, etc. however, it can be at any level and asked when is that determined; Mr. Carsen stated that if set a public hearing next Monday at the council meeting, then the meeting following that could put that in the report. He stated he assumes it is a declining 100% the first year, etc. and has not heard otherwise but assuming that is what they are asking for.

Council Member Brooks stated the exemption has to do with the addition that Cirrus adding to their facility, and not reducing current taxes but request to exempt some of the taxes for the new addition, but delay the full impact for a few years. Mr. Carsen stated the exemption applies only to the addition and they are currently paying full taxes on their existing facility and the land that they lease. He also stated that the $230,000 is an annual tax assuming 100% exemption for the full 5 years, the exemption at 100%, 80%, etc. is essentially a three-year exemption spread over 5 years.

Council Member Kerian asked what the requirement is for the waiver. Mr. Carsen stated the waiver is a provision in State law that is available to the governing body if they determine that there are no competitors within the municipality, then can make the determination that there are no competitors and speed up the process as don't have to do lengthy notice requirement. He stated that is available only if no competitors.

Council Member Glassheim asked how much new property tax revenue for the addition will the City be getting. Mr. Carsen stated in the first 5-year period it would be approximately $460,000 to all entities (school district, county, park and city).

2.2 Application for Class 3 (Off and/or On-Sale Beer and Wine) license by Maverick Enterprises, LLC dba Vintner's Cellar, 1726 South Washington Street._________________________________________________________
There were no comments.

2.3 Application for Class 3 (Off and/or On-Sale Beer and Wine) license by DBLD, Inc. dba Chips East, 1726 South Washington Street, Units 60-61.
Council Member Kerian stated it has been noted that they are seeking this liquor license
so that they can have smoking with their bingo operation, that Mr. Gibbens very concerned about people with disabilities and that this, as they have heard so much testimony about what smoking does to people, and then to make this move as someone who is also an advocate for disability, that she would not vote against the application but if there is anything that can discourage the people who are involved with this in any way, would hope that they would take another look at this to see if this is the right direction. She stated they need funds but they are dependent on good will in the gathering of their funds and to take this action which actually could cause disability is certainly an unfortunate event for them to take.

Council Member Brooks stated NDAD has been in town for number of years and has done many
excellent things and have raised considerable funds for the disabled and have an excellent record
and wait to see what they have to say.

2.4 Consideration of bids for Project Nos. 5818, 5819 and 5820, watermain, storm sewer and paving for 44th Avenue South between South Washington and South 16th Streets.____________________________________________
Council Member Kreun stated there is a fact sheet in front of you and that they are calling
this a letter of protest, however, there is only one project that is protestable (paving) but doesn't believe the property transaction or sale has taken place and they just want to delay this for 30 days, bids are valid for 60 days and can accommodate this without creating any problems. Council Member Hamerlik asked if time with our weather won't cause any problems; Council Member Kreun stated they can still do the underground this fall, and completion for the paving is in 2006 and that is the portion that is protestable, and can accommodate this request and still meet timelines according to engineering.

2.5 Bids for Project No. 5663, South End Boat Ramp.
Council Member Kreun stated we picked up some money from the Water Resource
District but also ND Game & Fish contribution amount is $60,000 and that could be increased to $100,000.

2.6 Bids for Project Nos. 5505 and 4769.1, Phase 4, Utility Relocations at RDO Foods and Water Treatment Plant.__________________________________
There were no comments.

2.7 Bids for Project No. 4648.8, Water System Security Improvements (Bid Package 1, Security Fencing).____________________________________
Council Member Brooks stated this is the first of 3 packages on this project, that they had
discussion on this in February (executive session), cost is $650,000 and what is total cost of this project and what part is going to be local cost. Todd Feland, director of public works, stated when they discussed this project earlier total project of $2.3 million; that this bid is under what they had anticipated and if look at some of the field study work and engineering have scaled some of that back and expects less than $2.3 million that council approved under Alternate B. The local share, that we have a federal grant of $854,000 and going to match that with approx. $699,000 and did receive an Emergency Management grant that does not need to be matched at $111,000, and have budgeted in the FY2005 Water Utility budget $200,000 for security projects, and expect to spend $150,000 of that, and depending on where we are at on $2.3 million, we have left unspent a $2.3 million drinking water SRF loan and whatever our balance is when we came in February, that we may spend at that $2.3 million mark up to $522,000 of that loan and turn the rest back - but depending on how the bids come in and expect to spend less than originally intended of that $522,000 and that is the funding breakdown of the entire $2.3 million project. Council Member Brooks stated looking to weigh what our costs are and what security level this is at and who is going to attack the water system in Grand Forks, ND.

Council Member Christensen stated $699,000 is local match for the federal grant, and where getting the $699,000. Mr. Feland stated it is going to be out of the monies that we have out of the project and part of our SRF loan and if take $700,000 to pay over 20 years, part of the intake and clearwell and pump station project, monies that we had left over because those projects came in under budget and federal government, EPA and Department of Health, allowed us to spend money on projects relating to water security and when discussed this in February, did have a long and lengthy debate about why spending the money and what kind of security we were going to add to it and specifically not water treatment related, is it going to provide a better treatment process, no, but adds security to our system and provides a barrier and not doing anything more than find most areas of the country in protecting our water.

Council Member Gershman reminded the council that in February when having discussions that the City of Grand Forks provides the water for the Grand Forks AFB and when question asked why do we need that kind of security, that decision that the City made to try to protect the water supply, not only for ourselves but also Grand Forks AFB, was important and showed the dedication of the City of Grand Forks to the mission and the men and women of the Grand Forks AFB. He also noted that terrorism could happen here and level of threat of methods that terrorists using don't have any bounds.- water is an issue in the entire country and that is why this threat level is the assessment that was put forward by the federal government for cities to look at their threat level and see where they were vulnerable and so that assessment and that we did that, and things haven't gotten any better worldwide.

Mr. Feland stated if looking at the $700,000 match to federal grant of $854,000 the Water Utility Fund brings in on a user utility level about $7 million a year and $700,000 loan at 20 years is probably less than $70,000 or about a 1% total increase on your rates.

Council Member Kerian stated that much of this discussion was held in executive session so that our vulnerabilities were not too widely known, but some of them we found are things that are fairly commonly covered in other cities and the things that we just could have done at other times and hadn't and playing catch-up and important to keep that in mind. She stated a significant piece of this is communication, and questioned whether there are other parts that this will have impact beyond the water systems and help some of our other safety entities, and if there are other sources of revenue that could be built in for that purpose and asked if any other action taken on that.

Mr. Feland stated that under Bid Pkg. #3, which is the high-speed radio SCADA and canopy system improvements, those are some of the improvements they wanted to make, not only for water security, but for public safety in general and had discussion with IS Departments and their goal is to include the cost that can clearly be related to water security and improvements of water security related things, and when it comes to the things that are outside water related they are looking at other ways to find monies to finance and fund those activities and that will be part of it when they bring it back.

Council Member Brooks stated that providing water to Grand Forks AFB is a commitment that we have made and our purpose here is to look at costs before making decisions and what looking at here is security plan to safeguard the water system for the city of Grand Forks and our mission is to make sure that our water supply to the Air Base is secure and safe because it is more vulnerable than within the city limits and for a lower cost can we give a higher security level or do we have that same security level at the Base, long way for water to travel from our system out there; and definite that we have to look at that but looking at costs involved and questioning those before we vote.

Council Member Hamerlik stated that since we were in executive session the public probably doesn't realize the amount of discussion we had for Homeland Security in the various proposals/projects that were on the table and this was a prudent way of going with the fencing and is a watered down version of what they were discussing compared to the total projects that were in front of them.

Council Member Glassheim noted that this first package is just fencing for the water plant and various towers. Mr. Feland stated for our identified facilities they wanted to secure and brought the fencing which was a large portion of the cost and lot of people have concerns/issues about that but is a large component of the security and this is the first barrier and most significant cost of all security measures they contemplated - that they started at a $3.5 million project, considered about a $1.8 million project and landed at $2.3 million project that they felt was prudent to secure our system to a level that they were secure with. Council Member Glassheim asked if the other two elements likely to be roughly similar in cost. Mr. Feland stated he expects them to be less and that there is as part of the canopy system some radio studies that they are going to do, some engineering costs and expects this bid to be the largest of the three. Council Member Glassheim stated that the 3rd bid package is the video and so people somewhere can see what is happening in the plant. Mr. Feland stated as part of the discussion when they examined alternatives, those were some of the things that they reduced from $3.5 down to $2.3, and a lot of those are "star-wars" things they eliminated and people didn't feel they needed to do, and this is the scaled down version and brought you the menu in February and chose the middle point of the menu. Council Member Glassheim stated he wanted to register again his February skepticism about the ability of fences to keep out a good terrorist and could figure out how to get by a fence if he wanted to blow something up.

Council Member Christensen stated he also wanted to register his skepticism as to this matter being conducted in executive session in light of the fact that they have public bidding process and the plans and specs. for the public bidding process were issued to the public and not really too much secret about that, and only thing he could see some benefit forward is there maybe some $600,000 or less that will be used for the construction of wireless canopy over the city which would mean that we would have YFi system for our city services so that the police department, fire department and city service providers could have instant communication in a wireless format, that this community may actually get a wireless canopy, hopefully within the next 12 months and joins with his colleague Mr. Glassheim in registering his skepticism also, but majority rules.

Council Member Kreun asked Mr. Feland to explain how the bidding process did take place when there is security involved. Mr. Feland stated as part of the process they did try to pre-select contractors to work on it, it was advertised and they tried to reduce much of the openness within reason; that State law provides that they can hold security plans but State law never provided for contingencies when you actually go to bid a security project.

COUNCIL MEMBER COMMENTS

1) Council Member Brooks stated he had the pleasure of speaking with the West Point group that went through the helicopter training division at Aerospace, they bring two classes through and they are winding up their month-long training session, and pleasure to get out there and see the group and young military leaders that are coming forward, and quite a program they have running.

He also stated he has a request for Mr. Duquette, is looking for a copy of our agreement with the Airport Authority, looking for some history on that, and what the function of the council rep. is as Authority seems to have some questions re. it.

2) Council Member Hamerlik stated thanks to the Department of Finance Administration for 18th national award - Certificates of Achievement for Excellence in Financial Reporting - and mentioned Saroj Jerath, and glad to have that honor.

3) Council Member Gershman stated there has been a lot of discussion recently about the 2:00 a.m. bar closing; that he, Council Members Kerian and Hamerlik have met with the East Grand Forks representatives, one of the things they could consider by council is a resolution stating that the city council will consider a 2:00 a.m. opening if it is initiated and enacted by East Grand Forks, doesn't sense that there is a will on this council to be the initiators of that and would like to put that out for consideration and if there is a consensus to draw up a resolution like that where we would consider if initiated and implemented by East Grand Forks.

ADJOURN

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

Respectfully submitted,



Saroj Jerath
Deputy City Auditor