Council Minutes
PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF GRAND FORKS, NORTH DAKOTA
July 6, 2009
The city council of the city of Grand Forks, North Dakota met in the council chambers in City Hall on Monday, July 6, 2009 at the hour of 5:30 o’clock p.m. with President Gershman presiding. Present at roll call were Council Members Bjerke, McNamara, Glassheim, Gershman, Bakken, Kreun - 6; absent: none.
The Red River Valley YMCA Wahoos (swim team) led the city council in the pledge of allegiance to the flag. The swimmers include anyone that can swim a 25 yd. freestyle from kindergarten through high school, that in August the Red River Valley Y Wahoos will be hosting zones which is a competition that involves swimmers from 9 states that have qualified for that meet and coming to Grand Forks.
President Gershman 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.
Council Member Christensen reported present.
Under Mayor's announcements President Gershman publicly thanked the Sertoma Club for the 4th of July celebration that brought tens of thousands of people downtown, wonderful day and nice representation from the Air Base with patriotic talk by Col. Quinn. This is Sertoma Club's 50th anniversary for sponsoring this event.
HOLD PUBLIC HEARING AND APPROVE APPLICATION
BY PHILADELPHIA MACARONI COMPANY FOR FIVE-
YEAR PROPERTY TAX EXEMPTION
The report from the city assessor relating to public hearing on a property tax exemption pursuant to NDCC Chapter 40-57.1 (Expanding Business) by Philadelphia Macaroni Company, 1801 North 36th Street, with recommendation to hold a public hearing and grant a 5-year step-down exemption of the proposed new building, 100% - first year; 80% - second year; 60% - third year; 40% - fourth year; and 20% - fifth year.
The acting city auditor reported that pursuant to the provisions of Section 40-57.1 of the North Dakota Century Code, notice had been given to the public that the city council would meet this evening to consider the application of Philadelphia Macaroni Company, 1801 North 36th Street, for a five-year declining property tax exemption of the property taxes to the proposed pre-cast construction of 57,000 sq.ft. warehouse with an enclosed dual-track rail siding with capacity to hold 10 railcars on Lot 2, Block 1, Golden Harvest Addition and Lot 3, Block 1 (Philadelphia Macaroni Company is starting process of replatting to consolidate all property into one lot), city of Grand Forks, North Dakota, which the applicant will use in the operation of his business and further that no protests or grievances had been filed with her office.
President Gershman opened the public hearing and asked if there were any comments on this matter.
Klaus Thiessen, Grand Forks Regional Economic Development Association, reported that Philadelphia Macaroni Company is requesting five-year declining tax abatement, they currently employ 100 people and have a payroll of $4 million, that it is a significant investment in their expansion, the project expansion is about $13.8 million, part of that is a warehouse and half of that is for new equipment which would make them more competitive. They are looking for a five-year declining tax abatement, they have 3 plants in the United States, one in Pennsylvania, one in the state of Washington, and the plant in Grand Forks is 3 times the size of the other two plants and is an indication of the company's commitment to their facility here and to grow in Grand Forks.
There were no further comments, and the public hearing was closed.
It was moved by Council Member Glassheim and seconded by Council Member Bakken that the City of Grand Forks grant the request for an abatement of the real property taxes to be levied and assessed against the Philadelphia Macaroni Company project for a period of five years on a declining exemption on the proposed addition; 100% for the first year, 80% for the second year, 60% for the third year, 40% for the fourth year and 20% for the fifth year.
Upon roll call the following voted "aye": Council Members McNamara, Glassheim, Christensen, Bakken, Kreun, Gershman - 6; voting "nay": Council Member Bjerke - 1. President Gershman declared the motion carried.
APPROVE AMENDMENT NO. 1 TO ENGINEERING
SERVICES AGREEMENT FOR PROJECT NO. 6433,
PERMANENT LIFT STATION NO. 37
The staff report from the engineering department relating to Amendment No. 1 to Engineering Services Agreement with Webster, Foster and Weston for Project No. 6433, Permanent Lift Station No. 37, with recommendation to approve Amendment No. 1 in the amount of $132,214.00.
It was moved by Council Member Kreun and seconded by Council Member Bakken that this recommendation be approved. Upon call for the question and upon voice vote, the motion carried 7 votes affirmative.
AWARD CONTRACTS FOR PROJECT NO. 6433.
PERMANENT LIFT STATION NO. 37
The staff report from the engineering department relating to bids for Project No. 6433, Permanent Lift Station No. 37, with recommendation to award contracts to low bidders as follows: General Work to Northern Plains Contracting in the amount of $893,000.00; Mechanical Work to Custom Aire, Inc. in the amount of $44,350.00; and Electric Work to Falls Electric in the amount of $138,661.00 for Project No. 6433, Permanent Lift Station No. 37, subject to concurrence by city attorney that deduct on face of bid envelope should not be considered.
Howard Swanson, city attorney, stated that based upon discussion at the committee of the whole meeting it is his understanding that the city council is inclined to allow the modification of the bid that appeared on the outside of the envelope by the bidder, RBB Electric, and would suggest that the motion would be to adopt findings, conclusions and award of bid.
Council Member Kreun moved to approve the recommended council action with the adoption of the Findings, Conclusions and Award of Bid, and award bids to Northern Plains Contracting in the amount of $893,000; to Custom Aire in the amount of $44,350.00; and to $134,250 to RBB Electric in the amount of $234,250.00. Council Member Bakken seconded the motion.
Casey Carlson, representing Falls Electric, stated that notation on the outside of the RBB's bid envelope was not read at the bid opening, that they became aware of that when the bid abstract came from Webster, Foster and Weston that there was a note on the outside of the bid, were surprised that it was being considered. He stated they don't have any ill feelings or intent towards RBB Electric but just wanted to make sure this was done fairly and asked for the council's consideration regarding this issue.
Council Member McNamara asked what is the rationale in terms of allowing, after sealing bid, and what is rationale for allowing anything beyond that to occur. Mr. Swanson stated that bidding is intended to be a fail-safe and opportunity for equal bidding and for the City to obtain projects at lowest price, best qualified bidder. In this case there was no question, it was a deduct from what was in the bid on the bid form, was submitted timely, signed by an authorized representative of the bidding firm, was received by the City and in the City's possession. That if you want to hold strict compliance you have that authority, it is a discretionary action.
Council Member McNamara stated he didn't see where a discretion, this is not expressly forbidden as we don't specify it, and would be out of our lane if we didn't accept that, that if it was annotated and signed by one of the principals, and asked where is our discretion, and doesn't see how we could exclude this since we don't specifically prescribe the manner in which the addendum would be submitted. Mr. Swanson stated because our instructions were not particularly clear on how you were to amend the bid, and is appropriate to accept it. That is why in the findings he suggested that if there is any deviation at all, it is a minor irregularity which the council has the authority to waive and are on reasonably safe ground to move in this direction, and is something he will confer with the engineering department for future bids.
Council Member McNamara asked if this is something that will be addressed, bidding requirements, and in a process that is so structured and important to the way the City does business, and will they consider and bring this back to us or somebody to amend the process so little tighter. Mr. Grasser stated they would address that along with their consultants and make sure they are consistent as to how they write that, their preference would be that the entire information be contained within the document, there are certain pieces of information that are prescribed to be on the outside of the document so know you have a responsible document, but certain things that are supposed to be in an outside envelope before you actually open the bid, can tighten this up and do that administratively, write directions more clearly of information that needs to be contained within the bid bond envelope.
Council Member Kreun stated that in the private sector to add or have a deduct on the outside of the envelope is not as uncommon as it would be in the public sector, and suggested not writing it too tight, may not be able to get that reduced bid when those people change their numbers, and may not get the deduction those companies offer.
Upon call for the question and upon voice vote, the motion carried 7 votes affirmative.
RECEIVE TABULATION OF BIDS, ESTIMATES OF TOTAL
COST AND AWARD CONTRACT, SEWER PROJECT NO.
6432, DISTRICT NO. 465
The acting city auditor presented and read tabulation of bids which had been received and opened on June 22, 2009 for Sewer Project No. 6432, District No. 465, sanitary sewer on South 48th Street from 17th to 32nd Avenues South, indicating that Molstad Excavating, Inc. was the low bidder based upon their bid in the amount of $557,723.00: Document No. 9221 - Bid Tabulation.
The city engineer's estimate of total cost for Project No. 6432, Sewer District No. 465, in the amount of
$ , was presented and read.
The staff report from the engineering department relating to bids for Project No. 6432, District No. 465, Sanitary Sewer on South 48th Street from 17th to 32nd Avenues South, with recommendation to award contract to low bidder, Molstad Excavating, in the amount of $557,723.00 for this project.
It was moved by Council Member Kreun and seconded by Council Member Bakken that this recommendation be approved and the resolution awarding the contract to Molstad Excavating, Inc. was presented and read: Document No. 9222 - Resolution. Upon roll call the following voted "aye": Council Members Bjerke, McNamara, Glassheim, Christensen, Bakken, Kreun, Gershman - 7; voting "nay": none. President Gershman declared the resolution adopted and the contract awarded.
RECEIVE TABULATION OF BIDS, ESTIMATES OF TOTAL
COST AND AWARD CONTRACT, SEWER PROJECT NO.
6334, DISTRICT NO. 464, AND PAVING/STREET LIGHTING
PROJECT NO. 6335, DISTRICT NO. 638
The acting city auditor presented and read tabulation of bids which had been received and opened on June 19, 2009 for Sewer Project No. 6334, District No. 464 and Paving/Street Lighting Project No. 6335, District No. 638, storm sewer and paving/street lighting in Shadyridge Estates 8th Resubdivision, indicating that United Crane & Excavation, Inc. was the low bidder based upon their bid in the amounts of $179,361.79 and $403,420.90, respectively, with a combined total bid of $582,782.69: Document No. 9223 - Bid Tabulation.
The city engineer's estimate of total cost for Project No. 6334, Sewer District No. 464, and for Project No. 6335, Paving and Street Lighting District No.638, in Shadyridge Estates 8th Resubdivision in the amounts of $ and $ , respectively, were presented and read.
The staff report from the engineering department relating to bids for Project No.6334, District No. 464, Shadyridge 8th Resubdivision storm sewer, and Project No. 6335, District No. 638, Shadyridge Estates 8th Resubdivision paving and lighting, with recommendation to award Alternate A contract to low bidder, United Crane & Excavation, Inc. in the amounts of $179,361.79 and $403,420.90, respectively, with a total bid in the amount of $582,782.69.
Al Grasser, city engineer, explained alternates in the bids, they put this bid together as Alternate A and Alternate B, and because the private contractor is not out of the area yet, they are recommending that they award the bid for Alternate A, which is the smaller project, but that we may bring in change order for the additional work that is shown as being part of Alternate B, but to make sure he doesn't have two contractors in the same area, the motion at this point would be to award Alternate A and that is what they are recommending - Alternate B cost includes Alternate A. Bids are good for 30 days and opened bids middle of June - both set up on 30 day schedule, and being in the middle of July starting to run out of construction time as have to put in the underground storm sewer first and then build paving and that is why looking at second phase of paving being done in 2010 because time of year.
Mr. Swanson stated the difficulty the City has is that we do not have the contracts with the current contractor who is doing the work, we do not have clear cross agreements with the developer or developer's contractor that would indemnify the City for any delay claims that might occur if this award is given and contractor can't move forward within the timeliness and doesn't know the status of the project, has looked at the agreements, both the development agreement as well as the proposed agreement with the bidder, if award the bid, the contractor would expect as soon as contracts are signed to get a letter authorizing him to move forward, and concern is the delay.
It was moved by Council Member Christensen and seconded by Council Member Kreun that this recommendation be approved and the resolution awarding the contract to United Crane & Excavation, Inc. for Alternate A was presented and read: Document No. 9224 - Resolution. Upon roll call the following voted "aye": Council Members Bjerke, McNamara, Glassheim Christensen, Bakken, Kreun, Gershman - 7; voting "nay": none. President Gershman declared the resolution adopted and the contract awarded.
AWARD BIDS FOR PROJECT NO. 6155, ENGLISH COULEE
BIKEPATH
The staff report from the engineering department relating to bids for Project No. 6155, English Coulee Bikepath from University to 6th Avenue North, with recommendation to award contract to low bidder, Strata Corporation, in the amount of $64,242.50 for this project.
It was moved by Council Member Kreun and seconded by Council Member Bakken that this recommendation be approved and the contract awarded to Strata Corporation. Upon roll call the following voted "aye": Council Members Bjerke, McNamara, Glassheim, Christensen, Bakken, Kreun, Gershman - 7; voting "nay": none. President Gershman declared the motion carried and the contract awarded.
APPROVE BUDGET AMENDMENT, FIRE DEPARTMENT
The staff report from the fire department relating to budget amendment with recommendation to approve the budget amendment to purchase hazardous material response equipment to support statewide regional response in the amount of $225,591.25, monies from Department of Homeland Security FY2007 State Homeland Security Grand Fund, to transfer grant funds into 2009 budget.
It was moved by Council Member Kreun and seconded by Council Member Bakken that this recommendation be approved. Carried 7 votes affirmative.
TABLE REQUEST TO APPOINT ALTERNATE MUNICIPAL
JUDGE
The staff report from the Municipal Court for nomination by Judge Henry J. Eslinger to appoint Al Boucher as alternate judge, with recommendation pursuant to NDCC 40-18-03 to approve appointment of a second alternate judge in the event the first alternate judge is not available.
Council Member Christensen suggested that not sure if have process for the appointment of an alternative municipal judge, but reason for discussion is that perhaps could have people who might be interested in applying for the alternative municipal judge position in the city if knew if was vacant; no problem with Mr. Boucher being appointed, but advertise the position and get some resumes and bring recommendations forward. He stated we have a position that is open and requires specific skill set and wondered if wouldn't want to seek applications to see if anybody else would be interested but in interest of procedural due process and semblance of fair play, and wanted to know if council wanted to consider this or not.
Mr. Swanson stated it was his understanding based upon discussions with municipal court clerk that Judge Eslinger has asked for a second alternate to be appointed behind Judge Widdel, as there have been times when Judge Widdel was not available; primary municipal judge is Judge Eslinger who was elected and first alternate judge is Judge Jack Widdel who has served in that capacity for long time. The recommendation came from Judge Eslinger for Mr. Boucher, and was not originated in the Mayor's Office or City Attorney's Office and would have no objections if council wanted to advertise an opening for second alternate judge, the Statute which is 40-18-03 simply says that the governing body may appoint an alternate judge to serve when the municipal judge is unable to serve due to temporary absence, interest, disqualification or ability.
Mr. Swanson stated if council wants to go through selection process, would suggest that the motion be to table this to your first meeting in August and authorize City officials to advertise a call for qualifications. The city council is the appointing authority and cause the procedure - Judge Widdel served prior to Judge Eslinger being on the bench. The alternate judge gets an hourly type grade.
It was moved by Council Member Christensen and seconded by Council Member Kreun to table this matter until first meeting in September and bring back to city council with recommendation as to process we should follow.
Upon call for the question and upon voice vote, the motion carried 7 votes affirmative.
APPROVE REDEVELOPMENT PROPOSAL FOR
CITY-OWNED LOT
The staff report from the director of urban development relating to redevelopment proposal for City-owned lot, with recommendation to approve proposal and convey lot per review committee's recommendation. (The review committee recommended that the current proposal by Tom and Beth Bock for construction in 2010 of a
+
3600 s.f. two-story house
for their personal residence at 1518 Chestnut Street at an estimated cost of $225,550, bid for the lot is $35,500. )
It was moved by Council Member Kreun and seconded by Council Member Bakken that this recommendation be approved. Carried 7 votes affirmative.
APPROVE BILL LISTING AND ESTIMATE SUMMARY
Vendor Payment Listing No. 09-13, dated July 1, 2009, totaling $5, 076,808.30 and Estimate Summary dated June 30, 2009 in the amount of $1,365,706.43, were presented and read.
It was moved by Council Member Bjerke and seconded by Council Member Kreun 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 Bjerke, McNamara, Glassheim, Christensen, Bakken, Kreun, Gershman - 7; voting "nay": none. President Gershman declared the motion carried and the bills ordered paid.
APPROVE MINUTES JUNE 15 AND JUNE 22, 2009
Typewritten copies of the minutes of the city council held on Monday, June 15, 2009 and of a special meeting held on Monday, June 22, 2009, were presented and read. It was moved by Council Member Bjerke and seconded by Council Member Bakken that the minutes be approved as read. Carried 7 votes affirmative.
COMMENTS BY MAYOR AND COUNCIL
1) Council Member Glassheim asked for briefing by administration on whether there are any plans to move ahead with the quiet zone activity, there is some money available by the Legislature and would like to begin to move forward but will take some staff work to decide what going to do. He stated that there is an item on Service/Safety Committee agenda re. Riverside pool, that the citizens would like to know about when that might be opened this year as want to plan a festivity for the opening.
2) Council Member Christensen stated there is an item on the agenda for the Service/Safety Committee re. new landfill update, landfill methane project grant proposal review, and heard Mr. Feland on the radio saying that we spend $700,000/year for electricity for wastewater treatment plant, and that when get report, what is the estimated quantity of the methane gas in the landfill, quality and accessibility, and how long will it last; that there are a lot of projects coming up in the public service sector - fixing up their building, this project, the landfill, roads, and at some point should have committee of the whole meeting to get briefed on all the expected projects in the next 3 to 5 years, and determine how pay for them.
Mr. Feland stated they had a grant a few years ago with the Dept. of Energy and assisted with EERC, there was a draft feasibility study which meant you didn't want to rely upon it but when council selected the list of the energy block grant, one of the component parts of the $75,000 towards the methane feasibility study and that $75,000 is a risk analysis document and feasibility study which will tell us in a definitive way about the quantity of gas, the quality of gas and feasibility from a cost asset of whether to do this project - have estimates of 15 to 20 years of methane in the landfill and estimates of an 8-year payback and the $75,000 study is to define that. He stated that with the American Renewal & Recovery Act or the stimulus plan there were potential construction dollars with 50/50 grant with the Dept. of Energy where they would pay for projects like a landfill methane project and our goal was if get a 50% grant that is subsidized by the federal government, then found out late last week that it is only for private entities and not for governmental entities, and will not be able to submit that grant but going to have a brief presentation about the potential opportunity for the city. He stated the question we have and concerns are things that would be studied and that the $75,000 was to answer all those questions.
3) Council Member Kreun stated Service/Safety Committee will meet tomorrow at 4:30 p.m. and reason they do these things is to find out the feasibility to see if cost analysis is correct and will bring back to council. He stated they received a letter from the Alerus Commission asking the mayor to appoint a committee to look at the two issues - the land around the Alerus and the Home Rule Charter, and asked President Gershman to pass that on to the mayor and that a recommendation come back to council. Council Member Bjerke asked if council would vote on mayor's recommendation, wants details.
ADJOURN
It was moved by Council Member Glassheim and seconded by Council Member Bakken that we adjourn. Carried 7 votes affirmative.
Respectfully submitted,
Candi Stjern for
Saroj Jerath, City Auditor
Approved:
______________________________________
Harold A. Gershman, President of City Council