Council Minutes
9
February 7, 2011
PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF GRAND FORKS, NORTH DAKOTA
February 7, 2011
The city council of the city of Grand Forks, North Dakota met in the council chambers in City Hall on Monday, February 7, 2011 at the hour of 5:30 o’clock p.m. with Mayor Brown presiding. Opening the meeting were Allison McCullough and Samantha Krogfoss, students at Holy Family/St. Mary's Elementary School, who were the first and runner up winners of the If I Were Mayor for a Day contest. Present at roll call were Council Members Bjerke, Grandstrand, Glassheim (teleconference), Gershman, Christensen, Sande, Kreun (teleconference) - 7; absent: none.
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.
Boy Scout Troop #1 led the city council in the pledge of allegiance to the flag.
Mayor Brown commented on various items during the past week and upcoming events:
This week is Municipal Government Week, February 7 - 11, 2011 sponsored by the ND League of Cities and proclamation was read by Allison McCullough and Samantha Krogfoss with Mayor Brown proclaiming the week of February 7-11, 2011 as Municipal Government Week in the City of Grand Forks and encouraged all citizens and organizations to join this observation. This year the winners of the Mayor for a Day contest were Allison McCullough, daughter of Mike and Jeanne McCullough, honorary mayor tonight, and Samantha Krogfoss, runner-up, daughter of Ed and Gale Krogfoss, congratulations to their teacher, Ms. Moore, in submitting the two winning essays. Allison and Samantha read their essays for the council. Gifts were presented to the two winners.
Our condolences to the family and friends of Sam Martinson, who was a good and honest man and was concerned about others, he was a pleasure to work with and was here at critical time in our city's history and appreciate and respect his contributions.
FLOOD PRESENTATION
Al Grasser, city engineer, presented information relative to flood outlook for 2011, have 1.5 miles of floodwalls as part of flood protection project, 9 miles of earthen levees as part of the system, 3.75 miles of paved roads as part of tie-back levee and unpaved road sections on northern end of the project, basic design parameters of the project is a 57 ft. event, and freeboard, top of levee is at 60 ft. and added extra 3 ft. to the floodwalls with the idea if needed to add to the levees - floodwalls critical link. Information from the Weather Service is that the spring outlook and temperature projections for the next 3 months is cold and generally wet, we're in a El Nina period which generally reflects cold/wet weather with above average snow, etc. and are projecting to continue that through the northern hemisphere this spring. He stated we are a lot wetter than normal and are projecting wetter conditions into the spring, these will be updated from now about every two weeks.
Fargo has 50% probability is about 37 ft. and 50% chance of exceeding that event - this year Fargo is looking at being able to fight a 42 ft. event which would mean that the top of their levees would be about 44 ft. and they are dealing with 2 ft. of emergency freeboard. For Grand Forks we have identified a low probability event, 63 ft. which would exceed our flood elevations and about 1.5% chance of reaching that point. Options - have a flood protection project at this time, can plan but take no action at this time, that the extra 3 ft. of floodwall height allows for consideration of a 3 ft. clay on the earthen levees which would get the entire system up to potentially 63 ft. He stated the Weather Service when they move from probabilities to an actual flood crest prediction to specific elevation have about 7 to 14 days. During 2009 did analysis and putting 3 ft. of clay on the entire system is est. to take about 20 days. Information is based on the past and have limited ability to project into future - and if talking 60+ event have never experienced anything over 55 ft. Rain and soft conditions will slow response, that on frozen levee in 2 days could take longer or impossible to do during soft/wet conditions when frost is going out of the ground.
Preparations - have dry stockpiles of material at 3 locations, and identified the perimeter where have floodwalls, earthen levees, paved roads, etc. and things can do at each of those locations. He stated he has Mr. Duquette involved in the flood fight issue and designated the incident commander for the EOC for the floodfight. He stated they want to have the response system in operation and some areas are difficult to access, build up the most inaccessible areas first. Some areas they cannot address until the river is at 28 ft. and that has to do with soil stability issues and part of goal is to have sandbagger response, would rather do clay, but if get into short response time period there are some places where sandbags may be only option. He stated they opened up the floodfight bids today which is something they do every year, low bid was Gowan Contracting, and that contract will go Service/Safety first and then to council on February 21, and looking at a team approach to this process where have the city administrator, mayor, city council, State agencies and get everybody involved in what and how going to do it. There are number of engineering things that have to do in going through this process, documentation, etc. and would expect to bring engineering and consulting contracts in on that same timeline, February 21.
Looking at beginning levee raising about the first week of March, and with Weather Service saying likely to have cool wet spring and would suggest that our crest would be somewhere in middle part of April and if looking at an early crest would be starting before the first week of March. Targeting priority areas for completion by mid-March, in the Lincoln area and reason that is priority is levees difficult to get at and when built that accessed it from the wet side - that would be priority area #1. Assuming we are doing some work the first or second week of March would evaluate things to determine further action may or may not want to do about the middle of March - would like to produce stockpile of 100,000 sandbags by the end of March - Probabilities now at 1% of 63 ft., based on current conditions and his observation has been that when we get snow your base condition changes and these numbers can keep pushing up, not every one the same. percentage of 60 ft. is something greater than 2 to 3%
Council Member Christensen stated outlining the direction planning on taking, there will be specific points that are going to come to the committees for action; their job is to rely upon staff to monitor this based upon what staff recommends and then be prepared to take action - would like to continue to get updates on this and appoint a group, Mr. Grasser and Mr. Duquette, that Mr. Kreun is chairperson of the Service/Safety Committee but authorize if you have to move fast but if don't, bring back to council for discussion/deliberation and debate. No motion is needed at this time.
Work in 2009 was about $120,000 to put additional dirt on the levee with engineering and construction, another $50,000 to take down, and anticipate we're going to be in another disaster declaration and under those conditions we usually get about 85% to 95% of that project cost covered with federal and/or state money and that is what happened in 2009. There was question as to filling 100,000 sandbags, and Mr. Grasser stated they would be working with Public Works and probably volunteers, in past years did bid the cost of producing sandbags but that cost is high but are looking at volunteer basis this year. It was stated that decision whether send anything to Fargo this year has not been made, but that the City has more sandbag filling machines - have l large spider and have 4 smaller sandbag machines. It was also noted to encourage people to make sure their flood insurance policies are current, as they have to be in place 30 days before they are effective - that people need to think about where they need to be on the insurance, esp. those people who are outside but hesitating to make any recommendations, not to tell people to do or not but need to pay attention to those numbers - the risk is here and these are higher level risks than we have seen since 1997. We are inside the flood protection boundary and have the best insurance rates that we can get, both for the flood protection and Ms. Collings is our floodplain administrator has also done some flood reduction efforts that work within the interior to the city.
AGENDA ITEMS
Mayor Brown stated that he is holding item of presentation of Alternative Roadway Design Configuration for Project No. 5675, 42nd Street and DeMers Avenue Underpass/Overpass for a future meeting.
APPROVE MATTER OF NOTICE AND PROPOSAL TO
AMEND HOME RULE CHARTER, ADOPT RESOLUTION
AND APPROVE HOME RULE CHARTER AMENDMENT BALLOT
The staff report from the city attorney relating to the matter of notice and proposal to amend the Home Rule Charter, proposed resolution and proposed Home Rule Charter amendment ballot, with recommendation for approval.
Howard Swanson, city attorney, reported he had presented staff report, including a resolution and if approved move forward, but pointed out the language with respect to the sum of $20.8 million; there is no present method to immediately shut off the sale tax as soon as a customer pays the $20.8 million, there is a delay from the time that retailers submit their reports and payment to the State, and further delay from when the State reports and pays the amount of taxes to the City and we need to provide the State Tax Commissioner's Office notice before they can terminate the tax and that the language is dependent upon a reasonable forecast or prediction that the finance office will have to be telling you when the approximate amount of $20.8 million would be collected. The other items are self-explanatory except as to the notice and proposal to amend Home Rule Charter, don't know the date of publication which would appear in the ballot and would be an administrative function to fill in that date.
Council Member Sande stated the resolution as well as the notice, etc. specifically states that the tax to be imposed for a period of 30 months beginning October 1, 2011, until the sum of $20.8 million has been remitted, whichever comes first, but based upon the odds of obtaining $20.8 million in 30 months is very small, and what happens if we don't collect $20.8 in revenues in 30 months, and how make up the difference. Mr. Swanson stated that based upon the matter before you your tax would terminate at whatever collections you would have acquired as of March 31, 2014; and would not be true to the sales tax because the authority of the levy of sales tax would have expired.
Council Member Sande stated that he would recommend that they change that wording in the resolutions and notices to $20.8 million collected. Council Member Christensen seconded the motion.
After some discussion relating to comments that people would like a date to be capped and rather than eliminated the date completely, Council Member Sande stated he would retract his original motion and change it to 36 months.
Council Member Gershman stated after hearing that the finance department could make a forecast at a reasonable time as to when you would think you would hit the $20.8, and if that is at 32 months that we would be able to administratively terminate the tax by giving the State notice. Mr. Swanson stated you would actually be terminating the tax by the adoption of an ordinance and that is function of the council and will be an administrative function.
Upon call for the question of the amendment to the motion, and upon voice vote, the motion carried 6 votes affirmative, Council Member Bjerke voted against the motion.
Council Member Sande moved approval of the proposed resolution, proposed notice and proposal to amend Home Rule Charter and the proposed ballot with the change instead of the 31st day of March, 2014, would be the 30th of September, 2014: Document No. - Resolution/Notices. Council Member Gershman seconded the motion
Mr. Swanson stated the language change on the resolution would simply change the 31st day of March, 2014 to the 30th day of September, 2014, the language or at such time as it is reasonably expected that the sum of $20.8 million of sales tax proceeds will be remitted is the first of either of those events; and that language change appears in all three of those documents based on that amendment.
Council Member Gershman stated that if the bids come in under budget, could the council take action at that point to say we're going to pass a resolution that when we hit that amount that we will not collect any more tax. Mr. Swanson stated this amendment only gives him the authority to act, the council will need to have it again assuming it is passed to adopt an ordinance, that ordinance could have a smaller dollar amount, could have a shorter period of time. He stated he doesn't know the timeline for the project is, but would have to adopt the ordinance before implementing the sales tax, that under this proposal you would need to be implementing your sales tax and adopt the ordinance prior to October 1, 2011, as he heard in the presentation doesn't believe they would have any bids by that time. He stated your ordinance could be changed, Home Rule authority gives you the maximum authority and ordinance can be within those parameters. Mr. Gershman stated that there is a possibility and so public understand that whenever bids come in we can make the amendment or ordinance change and amend our Home Rule Charter to end the tax when the auditing department assumes that we're going to get there. Mr. Swanson stated that the finance report that you would get would not be in the course of a budget but be in the course of a quarterly report following receipt of remittance from the Tax Commissioners Office.
Council Member Glassheim questioned why couldn't we put in the Home Rule Charter amendment not to exceed $20.8 million. Mr. Swanson stated the reason you cannot specifically state an exact number is that you have no mechanism and State has no mechanism to terminate that tax whenever an individual taxpayer may have paid that last dollar or penny of sales tax, can't be as precise to say exactly $20.8 million, it also requires you to give a 90-day notice to the Tax Commissioner before they will terminate the tax, and has attempted to do here and explained it in the staff report is to identify that that has to be based upon a reasonable expectation of whatever limit you've picked when that would be received by the City.
Mr. Glassheim asked if you can retain the reasonably expected and also say not to exceed $20.8 million, and to do it for less. Mr. Swanson stated his concern is that you will have a delay before you can terminate your collections, want to assume that you've collected $20.8 million + $2.00, and have now exceeded the authority established in the Home Rule Charter, but don't have a mechanism to be absolutely precise to the penny, believes that the report you get quarterly demonstrate the sales tax will come in at different amounts each month and will vary from month to month, etc. and interprets this $20.8 as intending to be a cap and a max. but doesn't know how you can be as precise as suggesting. He stated that in a tax situation like a sales tax, the collection occurs at the retailer and the tax would have been collected at the retailer and remitted to the State and ultimately to the City, under that scenario what happens to any additional tax dollars that are already collected and remitted. In the case of what the state legislature does, it goes into the surplus of the general fund, but here this is a dedicated sales tax and don't have the option of doing that.
He stated he has discussed this with colleagues and had several different drafts of the language but his concern was not to mislead anyone to suggest that the City can automatically stop the collection at the retailer at a precise point, part of the difficulty is the City does not administer the sales tax and so have multiple delays, delay in the retailer's reporting the tax collection to the Tax Commissioner after 3 months, have further delay on giving notice to Tax Commissioner to turn off the tax, and that is why it has to be based on some type of projection.
He stated under Mr. Gershman's scenario that if the revenues are greater than what might be expected, the city council acts through the ordinance that is adopted which lies underneath the Home Rule Charter, and that ordinance can be acted upon by the city council to terminate the tax but again must understand that even that action requires additional notice to be given to the Tax Commissioner's Office so that they can change their tax rates and communicate that information back to the retailers, so the council does have the authority to act within the parameters of the Home Rule Charter.
Council Member Grandstrand read information from the Grand Forks Library Needs Assessment prepared by library consultant in November, 2009 and received in November/December of this past year, new building and new site - and reminded everyone that this is a 50-year decision, cannot change and make adjustments and is big decision and people could be saying they would have done differently if had the option to do so, and that because of the switch of location after the survey, the probability increased because of the high tax, 1% instead of 3/4%. There are other projects in the future, water treatment plant, roads and eventually need money to pay for those things and that might come in the form of a sales tax, and if it fails, it will probably come back at some point - could do the right thing now and open back up to the public to give them some time to suggest additional sites, narrow it down to three, but let people give input and let them choose between 3 sites and put that site as one that will come forward or can agree as a council or with the library board to do this and let the vote happen on these, can either put the vote back or let this vote happen - either way would be acceptable and would be avoiding some problems. That we were explained or told by the consultants and by the Library Board that visibility was an important issue and if that is as important as they say it is, that this issue will be back whether it is in 25, 35 or 40 years, and if it cuts 10 years off the life of this building, that is an extra $4 million in today's dollars and more in tomorrows, and for discussion, moved that we push the date to the mayoral election is 2012. Mayor Brown stated the motion died for lack of a second.
Council Member Grandstrand then moved to reopen the looking for the site in process and open it back up to the public or to say we have council support for that before we go forward on the May 3 date. Mayor Brown stated the motion died for lack of a second.
Council Member Glassheim stated that the location of the library is quite good if think about it and within the next decade expects that the current site for the library will be exactly the middle of town - north and south - east and west - and really very well located for the purposes of growth of the city.
Upon call for the question, as amended, and upon voice vote, the motion carried 5 votes affirmative, with Council Members Bjerke and Grandstrand voting against the motion.
APPROVE PLEDGED COLLATERAL REPORT
The staff report from finance department relating to Pledged Collateral Report in accordance with the North Dakota Century Code requiring that pledges made by designated depositories of the public funds be approved semi-annually, that documentation and records were reviewed by a city council member, Council Member Glassheim, with recommendation to approve the pledged collateral report.
It was moved by Council Member Gershman and seconded by Council Member Sande that this recommendation be approved. Carried 7 votes affirmative.
APPROVE EXEMPTION OF TRANSIENT MERCHANT
LICENSES FOR GRAND CITIES ART FEST
The staff report from the public information office relating to transient merchant license exemption for Grand Cities Art Fest event for 2011, with recommendation to approve that 2011 Art Fest event vendors (artists only) are exempt from purchasing transient merchant licenses.
It was moved by Council Member Gershman and seconded by Council Member Sande that this recommendation be approved. Carried 6 votes affirmative, Council Member Bjerke voting against the motion..
APPROVE AMENDMENT TO ENGINEERING SERVICES
AGREEMENT FOR PROJECT NO. 5675, 42ND STREET/
DeMERS AVENUIE UNDERPASS/OVERPASS
The staff report from the engineering department relating to Amendment No. 1 to Engineering Services Agreement with Kadmas, Lee & Jackson, Inc. and budget amendment for Project No. 5675, 42nd Street and DeMers Avenue Underpass/Overpass, with recommendation to approve Amendment No. 1 in the amount of $154,888.41, and approve budget amendment for Project No. 5675.
It was moved by Council Member Gershman and seconded by Council Member Sande that this recommendation be approved. Upon call for the question and upon voice vote, the motion carried 7 votes affirmative.
APPROVE PROJECT CONCEPT REPORT FOR PROJECT
NO. 6605, WASHINGTON STREET SHARED USE PATH,
FEDERAL PROJECT NO. TEU-6-986(103)107
The staff report from the engineering department relating to Project Concept Report for Project No. 6605, Washington Street Shared Use Path, Federal Project No. TEU-6-986(103)107, with recommendation to approve the Project Concept Report contingent upon approval by the North Dakota Department of Transportation, concur that the project should continue to be advanced, concur with the project concept as proposed, concur in 100% City funding for the local share, and select Alternative B, Construction of Shared Use Path along west side of South Washington Street from 47th Avenue South to 55th Avenue South.
It was moved by Council Member Christensen and seconded by Council Member Kreun that this recommendation be approved. Upon call for the question and upon voice vote, the motion carried 6 votes affirmative, Council Member Bjerke voting against the motion.
APPROVE CITY TRANSIT FACILITY RENEWAL
AND UPGRADE MASTER PLANNING PROJECT
The staff report from the director of public works and the public transportation superintendent relating to City Transit Facility Renewal and Upgrade Master Planning Project, with recommendation to approve professional services agreement with EAPC in the hourly not to exceed amount of $51,900.00 for professional services for the Transit Facility Renewal and Upgrade Master Planning Project, subject to the city attorney's review and approval of agreement.
It was moved by Council Member Gershman and seconded by Council Member Sande that this recommendation be approved. Upon call for the question and upon voice vote, the motion carried 7 votes affirmative.
APPROVE AGREEMENT FOR PROFESSIONAL SERVICES
FOR SANITATION DIVISION BALER AND ASSOCIATED
EQUIPMENT REPLACEMENT
The staff report from the director of public works relating to 2011 Public Works Sanitation Division baler and associated equipment replacement agreement, with recommendation to approve professional services agreement with Burns & McDonnell Engineering Company, Inc. in the hourly not to exceed amount of $125,465.00 for professional services for the 2011 Public Works Sanitation Division baler and associated equipment replacement, subject to the city attorney's review and approval of agreement.
It was moved by Council Member Gershman and seconded by Council Member Sande that this recommendation be approved. Upon call for the question and upon voice vote, the motion carried 7 votes affirmative.
APPROVE AGREEMENT FOR PROFESSIONAL SERVICES
FOR BALING FACILITY, LANDFILL SCALE AND ASSOCIATED
FACILITIES MASTER CAPITAL IMPROVEMENT PLAN
The staff report from the director of public works relating to Baling Facility, Landfill Scale and Associated Facilities Master Capital Improvement Plan Agreement, with recommendation to approve professional services agreement with Burns & McDonnell Engineering Company, Inc. in the hourly not to exceed amount of $88,924.00 for professional services for the Public works Baling Facility, Landfill Scale, and Associated Facilities Master Capital Improvement Plan Project, subject to the city attorney's review and approval of agreement.
It was moved by Council Member Gershman and seconded by Council Member Sande that this recommendation be approved. Upon call for the question and upon voice vote, the motion carried 7 votes affirmative.
APPROVE EAST GRAND FORKS/GRAND FORKS
WASTEWATER INTERCONNECT PROJECT
The staff report from the city administrator and the director of public works relating to East Grand Forks/Grand Forks Wastewater Interconnect Project, with recommendation to approve the City of Grand Forks with the City of East Grand Forks to proceed with the following actions: 1) request AE2S to update and finalize the cost of service and rate making for the East Grand Forks wastewater interconnect with Grand Forks; 2) request the Grand Forks City Attorney's Office to draft a wastewater interconnect intergovernmental agreement between the Cities of Grand Forks and East Grand Forks; and 3) request the Grand Forks Public Works Department with review and assistance from the North Dakota Department of Health to initiate the drafting of an industrial pretreatment permit with the City of East Grand Forks.
Todd Feland, director of public works, asked for approval of the three points in the recommendation that they would like the City of Grand Forks to proceed with; that this is working in conjunction on some cost of service rate making information and working with Simplot on some of our wastewater modeling and would incorporate this into that plan. East Grand Forks has passed a motion and Mr. Duquette, city administrator, has stated that if they want to work on their side; and suggested on our side that the council leadership with Finance chair Mr. Christensen and Service/Safety chair Mr. Kreun work with East Grand Forks representatives and staff along with our consultants to try to finalize the issues, this is not a done deal but that East Grand Forks has asked to work towards the interconnect and they are making motions with their regulatory body, Minnesota Pollution Control Agency, that they need to change their plan of action and are beginning that process. This is the second phase of the program as have done some reconnaissance on this plan.
It was moved by Council Member Grandstrand and seconded by Council Member Gershman that this recommendation be approved. Upon call for the question and upon voice vote, the motion carried 7 votes affirmative.
INFORMATIONAL ITEMS
The Portfolio/Management Summary for period ending December 31, 2010 was presented for council's information.
APPROVE BILL LISTING AND ESTIMATE SUMMARY
Vendor Payment Listing No. 11-02, dated February 1, 2011, totaling $1,918,175.91,and Estimate Summary dated January 31, 2011 in the amount of $923,853.64, were presented and read.
It was moved by Council Member Gershman and seconded by Council Member Grandstrand 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, Grandstrand, Glassheim, Gershman, Christensen, Sande, Kreun - 7; voting "nay": none. Mayor Brown declared the motion carried and the bills ordered paid.
APPROVE MINUTES VARIOUS DATES
Typewritten copies of the minutes of the city council held on November 8, 2010 (special); November 15, 2010; December 6, 2010; December 13, 2010 (special); December 20, 2010; January 3, 2011; and January 18, 2011 were presented and read. It was moved by Council Member Bjerke and seconded by Council Member Sande that the minutes be approved as read. Carried 7 votes affirmative.
COMMENTS BY MAYOR AND COUNCIL
1) Council Member Bjerke presented request for information from Mr. Shields relating to Community Health Center, how started, where we are at and where we're going, and placed on the Service/Safety Committee agenda. The second item with reference to the library, refer to the Finance Committee the ballot issues as has questions re. proper procedures in the future.
2) Council Member Christensen stated he was not aware of what supposed to address re. the ballot because they did that at council last meeting and tonight. That he would like an update on our pension put on the agenda, and would like the pension committee to meet as soon as possible and would ask Mr. Hoover to get copies of the Federal Gazette article that had been e-mailed to pension committee so they have that as information in the report, one item is that Fargo is 56% funded, and that we told our actuaries to use an assumption of 7 1/4 %, the mean in the area is 8%, that we are working harder to fund it but wants to see where we are at because there are some places we can go where we can put the adjustment on the staff and in the budgeting process for an increase of contributions if we find ourselves somewhat short.
3) Council Member Sande stated he is looking forward to participating in city government week by serving lunch at Century Elementary School on Wednesday afternoon.
4) Council Member Kreun stated that it has been a long time that they have been working on the wastewater interconnect project and thanked Council Member Gregoire of City of East Grand Forks for following up on this and working very hard, have been in contact back and forth, and will continue to do that to make this project a win/win for both communities.
5) Council Member Gershman stated that during city government week he is serving lunch at Wilder School on Thursday. He also thanked Council Member Kreun who has worked very hard on the issue of the wastewater interconnect project with East Grand Forks.
ADJOURN
It was moved by Council Member Gershman and seconded by Council Member Sande that we adjourn. Carried 7 votes affirmative.
Respectfully submitted,
Saroj Jerath
City Auditor
Approved:
________________________________
Michael R. Brown, Mayor