Council Minutes

PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF GRAND FORKS, NORTH DAKOTA
October 2, 2006

The city council of the city of Grand Forks, North Dakota met in the council chambers in City Hall on Monday, October 2, 2006 at the hour of 7:00 o’clock p.m. with Mayor Brown presiding. Present at roll call were Council Members Brooks, McNamara, Glassheim, Gershman, Bakken, Kreun - 6; absent: none.

Grade 5 of Ben Franklin Elementary School, Alice Smith, teacher, led the council in the pledge of allegiance to the flag.

COUNCIL MEMBER CHRISTENSEN REPORTED
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:
This Thursday will be the 5th Anniversary of the Ralph Engelstad Arena and proclaimed Thursday as celebrating the gift of Ralph Engelstad Day and encouraged community members to take part in this opportunity to celebrate the gift of Mr. Engelstad.
He congratulated Rick Duquette who has been elected to the ND League of Cities Board of Directors.
He read proclamations for International Walk to School Day on October 4; and National Breast Cancer Awareness Month in October 2006.

He welcomed guests from our sister city, Sarpsborg, Norway, Morton Carlson and Miss Sylvie Carlson, they are traveling with a delegation of 5 members but due to travel issues they are the only ones here tonight, both are very involved in the Sarpsburg hockey program and are here to learn about our programs and discuss ways to learn from each other. Mr. Carlson stated they arrived yesterday and had pleasant day here visiting Engelstad Arena and the Innovation Center at UND and shall visit schools. He gave best regards from other members of the delegation and will develop exchange program between the two cities and looks forward to the upcoming exchange programs.

PRESENTATION ON 2020 RENEWABLE ENERGY BALLOT
MEASURE

Mayor Brown called upon representatives to present their information relative to the initiated measure that was adopted by the city council. He stated this is an opportunity to educate the community and provide our elected leadership with information about this important issue; that this measure will be on the ballot in November and information is on the city website.

Presentations were made by proponents of the measure, Matt Shimanek and Dexter Perkins, Citizens for Affordable Renewal Energy (CARE), and by representatives of the utility companies, Nodak Electric Cooperative and Xcel Energy, headed by George Berg, Judi Paukert and Kent Larsen.

Proponents of the measure to establish a mandatory renewable energy requirement for the city of Grand Forks reported that they were asking for 20% of electricity from renewable sources by 2020 and 30% by 2030 and that half of the 20/30% to come from ND in order to keep energy costs down and save money for residents, promote economic development, and that green energy is good for ND as we have largest wind resource in county.

Representatives from the utility companies stated they are developing wind energy in North Dakota, that Xcel Energy is #1 provider in the nation of wind energy for retail customers, with goal of 2,500 megawatts of wind capacity by 2007 which would double their capacity, that 7% of their owned and purchased generating capacity comes from renewable resources. They expressed concern with the mandate that it has no price cap, no protection for consumers, and that utilities are already investing in renewable energy.

Following the presentations questions and comments were made by the city council members: okay if over produce but what happens if under produce; enforcement. Question was asked why this was not done state-wide rather than city by city and Dr. Perkins stated this was grass roots type movement and done city by city (Grand Forks and Fargo) and to continue on for other cities - this was defeated in the State Legislature. Questions were raised if interest by EERC. Questions were asked why going to intercede in market and why put citizens of Grand Forks to be accountable for this variable, and why put citizens in position to absorb cost or benefit in this market. There was some discussion relative to the cost of wind turbines and number of megawatts that would be needed for the city if measure approved..

Mr. Shimanek stated that when they discuss costs and that with the mandate there is no cap to the cost, however, the Public Service Commission does have a say in what utility rates will be, and invited them to come to Fargo on October 12 for the Public Service Commission meeting, that they will be discussing the Fargo measure which is very similar to the one for Grand Forks along with representatives from Xcel and Cass County, and that later this month they will be holding informational meetings in the city of Grand Forks.

After further discussion several council members expressed concern about whether to come up with recommendation as to this initiative with no idea of what buying into, everyone embraces concept but concern to mandate not knowing cost, no one against renewable energy but without cost figures, couldn't support that. The council members asked that the city administrator, Rick Duquette, correlate information and bring back to the council for further discussion.

MONTHLY FLOOD PROTECTION UPDATE

Al Grasser, city engineer, stated they are making progress and work has been started at the intersection of Merrifield Road and Belmont Road and will continue for the next 3 weeks, traffic will be detoured around that site. There will be a budget update this quarter. He stated there is $12 million in the 2007 budget and should see substantial completion on the Grand Forks side, there are some issues on the East Grand Forks side where they had slip plain issue and is affecting some of the schedules. Physical ability to fight a flood will be in good shape by the end of this year and will have all the basic components in place for future flood fights.

Council Member Gershman asked if they could move along the certification of the dike knowing that we're protected, that as soon as that is certified many can do away with their flood insurance, and what is the status. Mr. Grasser stated that is in question because of the slip plain issue that developed in East Grand Forks and that we are trying to determine what options are and what timetable may be for the certification; that FEMA is an integral part of that and when expecting what FEMA's turnaround time may be is in question as this is one project. The question was asked that if we are protected that we couldn't get our half certified to relieve our citizens of the flood insurance. Mr. Grasser stated they are exploring some of those options but doesn't have an answer at this time. Council Member Gershman asked for a periodic update on that issue. Council Member Brooks stated in terms of getting our letter of map revision which will get people out of the floodplain, if intent that there will be one letter of map revision for both cities. Mr. Grasser stated that FEMA is looking at this as one project and want to certify it with one letter; and some of that is subject to some challenge and when get to that point pays to push that issue (there is construction work that has to be done, reports from the Corps).

Council Member Christensen stated that they would like to begin the development of the lots from 13th to 17th Avenue South and asked if they could start on that, Mr. Hoover stated they could, and get RFP's out and notify developers when this is out of the floodplain, that there is some money in the greenway flood protection budget and asked those in charge of the greenway to look into finding equipment for cleaning the greenway paths in the winter and asked for report back to the council by the next COW what costs would be for purchase or rental..

Council Member Gershman stated they need to engage the Congressional delegation on that issue because in order to sell those lots which can't happen until the project is certified, that our Congressional delegation was instrumental in getting the money for Grand Forks and East Grand Forks, and for the work that they did to be held up because of problem in another city shouldn't be the case, and encouraged going to the Congressional delegation to get them to work with FEMA.

A short flood protection video update was shown.

Council Member Brooks asked for clarification on one point, that this is one large flood protection project under the Corps of Engineers and where having problem, whether located on the MN side or the ND side is a problem of the whole project and not a problem of Grand Forks or East Grand Forks, that we ran into a stumbling block in this project and doesn't matter which side of the river it's on, but need to get somebody on it and get it moving. Mr. Grasser stated the issues are technical and they haven't got to that point yet and that is why not pushing that issue today.

ADOPT RESOLUTION AUTHORIZING REFUNDING OF
SENIOR HOUSING REVENUE BONDS (4000 VALLEY
The staff report from the finance department relating to public hearing and resolution authorizing the Refunding of Senior Housing Revenue Bonds (4000 Valley Square Project) on behalf of Valley Memorial Homes, with recommendation to set public hearing authorizing the refunding of Senior Housing Revenue Bonds on behalf of Valley Memorial.

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

Motion for the adoption of the foregoing Resolution was made by Council Member Christensen, seconded by Council Member Kreun, and upon a vote being taken thereon, the following voted in favor: Brooks, McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun; the following voted against: none; and the following were absent: none; whereupon the Resolution was declared duly passed and adopted. Document No. 8993 - Resolution.

RECEIVE TABULATION OF BIDS, ESTIMATES OF TOTAL
COST AND AWARD CONTRACT, WATERMAIN PROJECT
NO. 6039, DISTRICT NO. 295

The city auditor presented and read tabulation of bids which had been received and opened on September 25, 2006 for Watermain Project No. 6039, District No. 295, installation of watermain on North 48th Street (1600-1800 blocks), indicating that United Crane and Excavation, Inc. was the low bidder based upon their bid in the amount of $81,377.75: Document No. 8994 - Bid Tabulation

The city engineer's estimate of total cost for Project No. 6039, Watermain District No. 295, in the amount of $120,823.50, was presented and read.

The staff report from the engineering department relating to bids for Project No. 6039, District No. 295, watermain on North 48th Street (1600-1800 blocks), with recommendation to award contract to low bidder, United Crane and Excavation, Inc. in the amount of $81,377.75.

It was moved by Council Member Christensen and seconded by Council Member Kreun that this recommendation be approved and that the resolution awarding the contract o United Crane & Excavation, Inc. was presented and read: Document No. 8995 - Resolution. Upon roll call the following voted "aye": Council Members Brooks, McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 7; voting "nay": none. Mayor Brown declared the resolution adopted and the contract awarded.

APPROVE APPOINTMENT TO MPO EXECUTIVE POLICY
The staff report from Mayor Brown relating to appointment to MPO Executive Policy Board, with recommendation to council to confirm the reappointment of Council Member Christensen as one of the Grand Forks City Council representatives on the MPO Executive Policy Board for a two-year term.

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

APPROVE APPOINTMENT TO SPECIAL ASSESSMENT
COMMISSION

The staff report from Mayor Brown relating to appointment to the Special Assessment Commission, with recommendation to confirm reappointment of Lonnie Laffen to the Special Assessment Commission for a six-year term.

It was moved by Council Member Christensen and seconded by Council Member Kreun to confirm the appointment of Mr. Laffen. Carried 7 votes affirmative.

APPROVE APPOINTMENT TO CIVIL SERVICE COMMISSION

The staff report from Mayor Brown relating to the appointment to the Civil Service Commission with recommendation to approve the reappointment of James Johnson to the Civil Service Commission for a three-year term.

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

APPROVE GF-EGF MPO HUMAN SERVICES COORDINATED
TRANSPORTION PLAN

The staff report from the Grand Forks Public Transportation Department and GF-EGF MPO relating to approval of the GF-EGF MPO Human Services Coordinated Transportation Plan, with recommendation for final approval of the Plan.

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

APPROVE 2007 CDBG, HOME AND ADDI PROGRAMS

The staff report from the Urban Development director relating to 2007 CDBG, HOME and ADDI Programs, with recommendation for the 2007 CDBG, HOME and ADDI Programs, 1) discuss the proposed funding recommendations; 2) open a 30-day public comment period, and 3) set November 6, 2006 as the public hearing date to approve the final funding allocation and the CDBG Annual Action Plan.

Greg Hoover, Urban Development director, reported he had placed memo to the council members this evening and that they are asking the council to substitute the motion in the memorandum for the existing motion in the staff report as follows: Recommended Action: 1) Review the proposed 2007 funding recommendations, 2) review the proposed amendments to the 2006 program year, 3) open a 30-day public comment period, 4) set the city council meeting on November 6, 2006, as the public hearing date to amend the 2006 CDBG Annual Action Plan and approve the 2007 CDBG Annual Action Plan.

He reported that they had tried to find some additional money to finish out the Mission project and that staff found in the 2006 CDBG Plan Amendment, that the funds for 3 projects will not be expended in 2006 (Easter Seals/Goodwill, Storefront Rehab and American Dream/DCA) and would then do Prairie Harvest Youth Home, the CVIC project and the Grand Forks Housing Authority Project in this calendar year and are proposing that the Shelter for the Homeless receive $205,000 and with monies left from this year's allocation of $125,000, would have a total of $330,000 and should be able to do the laundry, toilets and show facilities on all 3 floors and the air exchange system needed to go with that and that should complete the entire project. They have looked at some additional expenses because they have more people staying in the evenings but won't know for sure whether they will be able to do those until they receive their bids on November 2, and the proposal accomplishes everything that the council wanted to do and asked that they substitute the motion in the memo in place of the staff report.

Council Member Christensen stated that they are increasing the 2006 administrative budget by $50,000 which comes from excess program income and questioned need and moved this matter back to the finance/development standby committee so they can review the entire process, Council Member Brooks seconded the motion.

Mr. Hoover reported that the $50,000 had been budgeted in the city budget but when it was sent to HUD the $50,00 was not included and not sure why that happened, and this is bringing budget up to what they had first budgeted. He explained that they are not making a final decision this evening, but are opening a 30-day comment period on the amendment and are also opening a 30-day comment period on the 2007 Program and will not be making a decision until after the public hearing on November 6, and urged council to pass this motion; and that in the meantime if they want it to go back to finance/development committee for further explanation can do that but assures council that the monies are there and the only change is that they have identified, that they have tried to address the council's concerns and urged council to go forward so that it doesn't put them off schedule.

Council Member Brooks stated they can pass the motion tonight and get it to comment period and the committee can meet and discuss it and asked that motion be modified to pass the motion and that the committee meet later. Council Member Christensen moved that they proceed with the comment period on November 6 and that the committee will review and come back with a recommendation to the council as to allocation of the funds.

Mr. Hoover stated that because of their timeline is going into the paper and out to the public, that they will be notifying all the people who are involved and the only thing they are asking for now is to open the public comment period, set the hearing date, that they will come back to the finance/development committee and review this in detail, and not committing to anything at this point.

The proposal was reviewed as to publications and recommended allocations - that for 2007 it will be Shelter for Homeless, $205,000, nothing for Prairie Harvest Homes (that will come out of the 2006 amendment); that there will be 3 projects in 2007 - Shelter for the Homeless, $205,000; St. Vincent de Paul (storage facility), $45,000, Northern Valley Dental Alliance, $37,000, and will have an amendment that will appear that will say that Easter Seals/Goodwill is being reduced by $40,000 and they are in agreement with that, Storefront Rehab will be reduced by $68,300, and American Dream/DCA (down payment closing costs assistance) will be reduced by $9,000; and on the plus side of the ledger, Prairie Harvest Homes project will be increased by $66,000, CVIC project will be expended out of 2006 money at $4,700.00, and Grand Forks Housing Authority roof project, $46,600, will be funded out of 2006 project rather than 2007. The deducts total $117,300 and add on's total same amount.

Council Member Christensen stated that the projects that didn't get funded and where they were ranked. Mr. Hoover stated in 2007 there are two projects not getting fully funded, first is Northern Valley Dental Alliance where they reduced that by $79.00 and the other is St. Vincent de Paul where they requested $90,000 for two garages and based on former motion reduced that to $45,000 and the only people not getting the full money they requested is $79.00 for Dental project and $45,000 for St. Vincent de Paul for storage. Council Member Christensen stated that if they pass this motion this evening, urban development will publish those 6 items and $50,000 increase in budget on 2006 amendment.

Joanne Brundin, director of St. Vincent de Paul, asked to be able to attend the committee meeting as she has questions regarding the ranking of programs, that programs ranked lower than St. Vincent's are being funded as well as bringing in a program that did not submit the grant application. Notice will be given to Ms. Brundin of the committee meeting. Council Member Gershman reported he had toured the facility and stated that they have a legitimate need.

Upon call for the question and upon voice vote, the motion carried 7 votes affirmative.

APPROVE BILL LISTING AND ESTIMATE SUMMARY
Vendor Payment Listing No. 06-19, dated September 29, 2006, and totaling $1,320,977.77, and Estimate Summary in the amount of $2,283,350.12, were presented and read.
It was moved by Council Member Gershman and seconded by Council Member Brooks that these bills and estimates 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, McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 7; voting "nay": none. Mayor Brown declared the motion carried and the bills ordered paid.

APPROVE MINUTES SEPTEMBER 18, 2006

Typewritten copies of the minutes of the city council meeting held on Monday, September 18, 2006 were presented and read. It was moved by Council Member Brooks and seconded by Council Member Bakken that these minutes be approved as read. Carried 7 votes affirmative.

ADJOURN

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

Respectfully submitted,



John M. Schmisek
City Auditor

Approved:
______________________________________
Michael R. Brown, Mayor