Council Minutes
PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF GRAND FORKS, NORTH DAKOTA
December 21, 2009
The city council of the city of Grand Forks, North Dakota met in the council chambers in City Hall on Monday, December 21, 2009 at the hour of 5:30 o’clock p.m. with Mayor Brown presiding. Present at roll call were Council Members McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 6; absent: Council Member Bjerke - 1.
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 items during the past week and upcoming events:
Because we are celebrating Christmas and New Year's in the next week or two, everyone needs to check the city calendar for garbage pickup and recycling information as that will change through the holiday schedule.
EMPLOYEE RECOGNITION
Mayor Brown reported there were several city employees who have reached employment milestones and recognized the following employees and thanked them for their dedication:
Donovan Bye, 20 years as equipment operator with Public Works Department;
Debbie Hoverson, 10 years with 911 Center;
Erin Ray, 10 years with police department;
Jeff Aamodt, 5 years in Public Works Department;
Chris Carlson, 5 years with fire department;
Bruce Hecht, 5 years with street department;
Derrik Johnston, 5 years with police department;
Dale Magino 5 years with public works.
HOLD PUBLIC HEARING AND APPROVE REQUEST
FOR TAX INCREMENT FINANCING ON STEP-DOWN BASIS
FOR 5 YEARS
The staff report from the city assessor relating to public hearing re. tax increment financing exemption by BVI, LLC on behalf of AE2S and ICON Architectural Group for proposed office building at 4050 Garden View Drive, with recommendation to hold public hearing and consider a property tax exemption per NDCC Section 40-58-20(11).
The deputy city auditor reported that pursuant to provisions of the North Dakota Century Code Chapter 40-58, Section 40-58-20.1, the city council had called for a public hearing to be held on the request by BVI, LLC on behalf of AE2S and ICON Architectural Group for tax increment financing or partial tax exemption for the project (proposed office building at 4050 Garden View Drive), for a period not to exceed fifteen years and limited to eligible public costs, and that the notice of public hearing had been published as required.
Mayor Brown opened the public hearing.
Jim Porter, 3596 Prairie Drive, expressed concern about setting precedent for this type of funding based upon review criteria, the need for assistance for TIF assistance, doesn't think this company necessarily needs this type of assistance, and the cost to the City of municipal services or infrastructure or the cost that needs to be borne by others for parks, schools and other services. That he has heard the City express concern about future problems for funding city services, etc. because we have cut taxes so low.
Letters supporting the granting of the tax exemption had been received from EAPC and various businesses for tax increment assistance to the proposed project were presented.
Council Member Gershman responded to Mr. Porter's comments, that one of the areas that the city had a shortfall with our budget was in building permits and that the city council is looking at a Grand Forks stimulus package for three years with incentives through the tax code to create more building in the city. Usually what happens in these cases is the money that they don't pay in taxes will be reinvested back in their property and that enhances the value at the end of the tax break. This is an incentive locally that will entice business owners to build and will help our problem that we had this year in balancing our budget.
Mayor Brown closed the public hearing.
Howard Swanson, city attorney, reported that his memorandum had pointed out the various findings that need to be made by the city council, that there are a series of factual findings that need to be made. One, that they have to be consistent with the zoning designation for the area, that the area is either undeveloped or under developed property, that the development would be in the best interest of the city and that the proposed development is considered by the City to be advantageous for economic development purposes, those would be the factual findings and there then would be as part of the motion, motion to approve and thirdly, a provision where you would authorize the appropriate development agreement and attach increment financing agreement.
Council Member Christensen moved that we approve the request for tax increment financing, that we incorporate the findings noted by the city attorney as part of the minutes, and further that the applicant be given a tax increment on a step-down basis of 85% the first year, 80% the second, 75% the third, 60% and then 50%, and the 85% will have them paying more than their current payment on their existing building. Council Member Gershman seconded the motion.
Council Member McNamara stated concerns - that half the company has never been outside of the incubator; that the prime area of the community that should be growing and subsidizing somebody selling land. That because of the price of land, now asking the taxpayers to step in, and that is why the policy made much more sense than the TIF idea because if we offer it to one on an individual case, then the next person that comes before us and asks for the same thing, how say no to anybody - those are his problems with the TIF as it was originally brought to us.
Mr. Swanson clarified the motion, the motion is a tax increment tax exemption and have also included the authorization for City officials to sign the appropriate development agreement and increment agreement.
Council Member Glassheim stated that Mr. Carsen was to check on the taxable status of for profit businesses on the University campus and asked if he had a chance to do that. Mr. Carsen stated he had not had chance to do that.
Council Member Glassheim commented on Mr. McNamara's concerns- what is being proposed here is not in any way opposed to the policy that is being proposed, it fits within the general policy that has been proposed, we are not incentiving the price of land because the price of land is only 10% of the whole project and the building is 90%, this business is the headquarters business which does activities for several states and has employees in other states - which means money is coming into Grand Forks from their activities, rather than going out. This business intends to use the tax increment portion to build more space than they presently need and have us help partially to pay for that because over the next 5 years they will expand employees. Another reason very strong on this is the number and quality of employees. That the project will be on the 42nd Street corridor which we have an interest in seeing developed, having a building there will tend to spur additional development on the same corridor and thinks this is a good deal for the city of Grand Forks and should move forward.
Council Member Bakken agreed, and Council Member Kreun stated we have to look at our long term goals of what this community wants to track and our professional work force, and corporate offices ranks more professional type jobs and pay higher benefit ratio than many of the other jobs do and turn the dollars in the community and not setting a precedent and in 1994 is when some of these TIF's were used to attract corporate offices (Grand Forks Grocery), used it for Lunseth Plumbing, Eco-Lab, etc. and this business fits into that category and this policy was put into effect June 20, 1994 and what we want to do is have corporate offices in Grand Forks and attract that higher paying job, etc.
Upon call for the question and upon voice vote, and the following voted in favor of the motion: Council Members Glassheim, Gershman, Christensen, Bakken, Kreun - 5; voting "nay": Council Member McNamara - 1. Mayor Brown declared the motion carried.
APPROVE ABATEMENT OF 2008 TAXES ON PROPERTY
AT 1217 OAK STREET
The staff report from the city assessor relating to application for abatement of 2008 taxes by Gary Steenerson, 1217 Oak Street, with recommendation to Board of County Commissioners that the application be approved as submitted.
It was moved by Council Member Gershman and seconded by Council Member Bakken that this recommendation be approved and further that we adopt the findings, conclusions and recommendations as prepared by the city attorney. Upon roll call the following voted "aye": Council Members McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 6; voting "nay": none. Mayor Brown declared the motion carried.
REFER MATTER OF PARAMETERS FOR TAX INCREMENT
FINANCING EXEMPTION BACK TO FINANCE COMMITTEE
The staff report from the city assessor relating to parameters for tax increment financing exemptions, with recommendation to adopt amendment to Grand Forks tax increment financing policy.
Mel Carsen, city assessor, reported this matter had been on the committee of the whole agenda and had been referred back to the finance committee along with some direction, and that he and the city attorney had made some changes to the current policy, an amendment (which is the last paragraph on page 4 of that policy). He stated he has some concern as it would seem that this policy would actually limit or restrict the city council from doing what they just did and not sure want to do that.
Council Member Christensen stated that concerns expressed by Mr. McNamara are the concerns that the committee would like to review and that they might want to take back to committee.
It was moved by Council Member Glassheim and seconded by Council Member Bakken to hold this item and refer it back to the finance/development committee for further review. Carried 6 votes affirmat8ive.
APPROVE VARIOUS BUDGET AMENDMENTS
The staff report from the finance department relating to amendment to budget funds from Fund 2106 into Fund 2108 to cover expenses pertaining to the flood fight of 2009; property tax revenue is put into Emergency Levy, Fund 2106, but the expenses for the flood fight were put into the Disaster Recovery Fund, which is Fund 2108, with recommendation to approve budget amendment.
The staff report from the fire department re. budget amendment for Vehicle Fire Training Prop , with recommendation to approve budget amendment in the sum of $117,730.00 including City match of $11,773.00 meeting FEMA match requirements in order to purchase a vehicle fire training prop.
The staff report from the police department relating to budget amendment in the amount of $58,044.26 to bring HIDTA Grant 23593 revenue and expenditure funds into the 2009 budget; budget amendment in the amount of $396,985.44, COPS Interop Comm. Tech. Grant awarded in 2005 and to bring 2009 revenue and expense funds into the 2009 budget; and budget amendment in the amount of $357,926.06 to bring ND Department of Emergency Services grants revenue and expense funds into the 2009 budge6.
The staff report from the public works director relating to Public Works Department 2009 budget amendments: $$250,000 to cover budget shortfall; $795,000.00, funding for significant portion of landfill slope stabilization project, which is in litigation at this time; $180,600.00, funding for MicroBubble Flotation (MBF) Improvements Project, which is funded from the WWTP litigation settlement fund; and $1,778,019, funding for Public Transit rolling stock from FTA ARRA Funds and FY 2006 and 2009 5309 FTA capital funds.
The staff report from Urban Development director re. year-end budget amendment requests: $487,770.00 to increase budget to represent new grants received during year; $250,000, increase budget to represent new grants received during year; $112,020.00, increase budget to represent new grants received during year; $380,000.00, increase budget to represent new grants received during year; and $395,340.00, per staff report.
The staff report from finance department relating to budget amendment, adjust budget to transfer funds from Loan & Stabilization to General Fund for portion of DB pension payment in the amount of $100,000.00.
It was moved by Council Member Gershman and seconded by Council Member Bakken that the budget amendments be approved. Upon call for the question and upon voice vote, the motion carried 6 votes affirmative.
DENY LIQUOR LICENSE EXTENSION FOR MOODDYZ\ BAR AND CASINO
The staff report from the Public Service/Safety Standby Committee relating to liquor license extension by Mooddyz Bar and Casino, with recommendation to deny request for extension by Mooddyz Bar and Casino.
Council Member Gershman asked to be recused from voting on this matter and it was so moved by Council Members Gakken and Kreun. Carried 5 votes affirmative.
It was moved by Council Member Bakken and seconded by Council Member Kreun that this recommendation be approved. Carried 5 votes affirmative.
APPROVE LIQUOR LICENSE EXTENSION FOR LPO,
INC. TO DECEMBER 31, 2009
The staff report from the Public Service/Safety Committee relating to liquor license extension by LPO, Inc.. with recommendation to approve liquor license extension to December 31, 2009.
Council Member Gershman asked to be recused from voting on this matter and it was so moved by Council Members Gakken and Kreun. Carried 5 votes affirmative.
It was moved by Council Member Bakken and seconded by Council Member Kreun that this recommendation be approved. Carried 5 votes affirmative.
APPROVE FEDERAL TRANSPORTATION FUNDING
REQIUESTS - HSIP
The staff report from the traffic engineer relating to Federal Transportation Fund Requests -HSIP, with recommendation to approve 2011 Highway Safety Improvement Program Nomination.
It was moved by Council Member Gershman and seconded by Council Member Bakken that this recommendation be approved. Carried 6 votes affirmative.
AWARD BID FOR PROJECT NO. 6409, REPLACEMENT
OF UNDERGROUND STREET LIGHT ELECTRICAL
CONDUIT
The staff report from the traffic engineer relating to bids for Project No. 6409, Replacement of Underground Street Light Electrical Conduit on 1st Avenue South/South 5th Street and Fallcreek Court/Rider Road, with recommendation to award contract to low bidder Strata Corporation for Project No. 6409, Alternates A, C & D in the amount of $34,097.50; and low bidder Bergstrom Electric for Project No. 6409, Alternates B & E in the amount of $16,193.00 for a total of $50,290.50 as determined by the December 17 bid opening.
It was moved by Council Member Gershman and seconded by Council Member Bakken that this recommendation be approved. Upon call for the question and upon roll call vote, the following voted "aye": Council Members McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 6; voting "nay": none. Mayor Brown declared the motion carried.
APPROVE AGREEMENT FOR ENGINEERING SERVICES
FOR PROJECT NO. 6272, DISTRICT NO 99, STREET
RECONSTRUCTION
The staff report from the engineering department relating to Construction Engineering Services Agreement for Project No. 6272, District No. 99, Cherry Street Reconstruction from 17th Avenue South to 25th Avenue South, with recommendation to approve agreement with CPS for construction administration engineering services in the amount of $203,415.00 for Project No. 6274, District No. 99.
It was moved by Council Member Gershman and seconded by Council Member Bakken that this recommendation be approved. Upon call for the question and upon roll call vote, the following voted "aye": Council Members McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 6; voting "nay": none. Mayor Brown declared the motion carried.
RECEIVE TABULATION OF BIDS, ESTIMATES OF TOTAL
COST AND AWARD CONTRACT FOR PROJECT NO. 6272,
DISTRICT NO. 99
The deputy city auditor presented and read tabulation of bids which had been received and opened on November 20, 2009 by the NDDoT in Bismarck for Project No. 6272, District No. 99, reconstruction of Cherry Street from 17th Avenue South to 25th Avenue South, indicating that Opp Construction, LLC was the low bidder based upon their bid in the amount of $1,489,922.55: Document No. 9245 - Bid Tabulation.
The engineer's estimate of total cost for Project No. 6272, District No. 99, in the amount of $1, 454,238.00, was presented and read.
The staff report from the engineering department relating to consideration of bids for Project No. 6272, District No. 99, Cherry Street Reconstruction from 17th Avenue South to 25th Avenue South, with recommendation to award contract to low bidder, Opp Construction, LLC in the amount of $1,489,922.55 for Project No. 6272, District No. 99, Cherry Street Reconstruction from 17th Avenue South to 25th Avenue South, contingent on NDDoT concurrence.
It was moved by Council Member Gershman and seconded by Council Member Bakken that this recommendation be approved and the resolution awarding the contract to Opp Construction, LLC was presented and read: Document No. 9246 - Resolution. Upon roll call the following voted "aye": Council Members McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 6; voting "nay": none. Mayor Brown declared the resolution adopted and the contract awarded.
ACCEPT HAZARDOUS MATERIALS PREPAREDNESS
GRANTS FOR FIRE DEPARTMENT
The staff report from the fire department relating to hazardous materials preparedness grants (HMEP) for fire department, with recommendation to accept 2010 North Dakota Department of Emergency Services HMEP Planning Grant for $23,900 and HMEP Training Grants for $19,280 to be used by the fire department.
It was moved by Council Member Gershman and seconded by Council Member Bakken that this recommendation be approved. Carried 6 votes affirmative.
APPROVE 2010 SALARY PLAN
The staff report from the Human Resources director relating to 2010 Salary Plan, with recommendation to approve and adopt the 2010 Salary Plan as per City Code 6-0302(1), based on the approved 2010 budget.
It was moved by Council Member Gershman and seconded by Council Member Bakken that this recommendation be approved. Upon call for the question and upon voice vote, the motion carried 6 votes affirmative.
APPROVE CHANGE TO PENSION PLAN RE.
REEMPLOYMENT OF RETIRED EMPLOYEES ON
PART-TIME BASIS
The staff report from the Human Resources director relating to reemployment of retired employees on a part-time basis, with recommendation to approve a design change to the City of Grand Forks, North Dakota Pension Plan (1998 Restatement) allowing a participant who has commenced retirement benefits to return to work for the City on a part-time basis without suspending his/her retirement benefits. The participant cannot work more than 1,000 hours in a Plan Year.
It was moved by Council Member Gershman and seconded by Council Member Bakken that this recommendation be approved. Upon call for the question and upon voice vote, the motion carried 6 votes affirmative.
APPROVE 2009 EMPLOYEE HOLIDAY HOURS
The staff report from the Human Resources director relating to 2009 employee holiday hours, with recommendation to approve four (4) holiday hours for City employees, pro-rated for contracted, classified and benefited non-classified employees to be taken between council approval date and July 1, 2010. Time off is to be scheduled and approved by department heads.
It was moved by Council Member Gershman and seconded by Council Member Bakken that this recommendation be approved. Carried 6 votes affirmative.
HOLD AWARD OF CARPET BIDS FOR CITY HALL
The staff report from the director of Human Resources and the engineering department relating to bids for Project No. 6555, City Hall carpet replacement, Phase I, with recommendation to award contract including base bid work and all alternative bid work to low bidder, Burris Carpet Plus/Valley Interiors for Project No. 6555, City Hall Carpet Replacement, Phase I.
Council Member Gershman stated he would caution you with the carpet squares, that he has used them in his business and what happens is as they sit for years the color changes because of lighting, and when replace them doesn't look good because of colors change, etc., would be better off having a quality roll carpet, would have problems with the squares. Mark Walker, asst. city engineer, reported they have had discussion and because of easier installation, etc. but would take that under advisement.
It was moved by Council Member Christensen and seconded by Council Member Gershman to hold award of bids for further consideration. Carried 6 votes affirmative.
APPROVE POLLING PLACES FOR PRIMARY AND
GENERAL ELECTIONS
The staff report from the mayor's office relating to polling site for the June 8, 2010 and November 2, 2010 elections, with recommendation to approve list of polling sites: Document No. 9247 - Listing.
It was moved by Council Member Gershman and seconded by Council Member Bakken that this recommendation be approved. Carried 6 votes affirmative.
APPROVE VARIOUS APPOINTMENTS
The staff report from Mayor Brown relating to appoint to Board of Health, with recommendation to approve reappointment of Michael McNamara as the city council representative on the Board of Health.
The staff report from mayor Brown relating to Grand Forks Public Library Board appointment, with recommendation to confirm the reappointment of Michael McNamara as the city council representative to the Grand Forks Public Library Board for a term of three years.
The staff report from Mayor Brown relating to appointment to Emergency Management Board, with recommendation to approve reappointment of Curt Kreun as the city council representative on the Emergency Management Board for a one-year term.
The staff report from Mayor Brown relating to Pension and Insurance Committee appointment, with recommendation to confirm the reappointment of Mike Flannery as a participating member of the pension plan for a three-year term to the Pension and Insurance Committee.
The staff report from Mayor Brown relating to appointment to the Convention and Visitors Bureau, with recommendation to confirm the reappointment of Dana Sande for a three-year term to the Convention and Visitors Bureau.
It was moved by Council Member Gershman and seconded by Council Member Bakken to approve and confirm the appointments and noted. Carried 6 votes affirmative.
ACCEPT BIDS FOR SANITATION TRUCK AND
COMPACTOR
The staff report from the director of public works relating to Public Works Department- Sanitation Division collection truck bid #2009-63, and used landfill water truck, with recommendation to approve bids of front load truck and compactor, and side load truck and compactor as follows: Front load compactor, $87,458 to Olympic Sales; front load truck, $121,954 to Sanitation Products, Inc.,; side load compactor, $115,909 to Sanitation Products, Inc.,; side load truck, $117,898 to Sanitation Products, Inc.; landfill water truck, $17,500, City of Warren, MN; for total expenditure of $460,719.
It was moved by Council Member Gershman and seconded by Council Member Bakken to approve the recommendation. Upon roll call the following voted "aye": Council Members McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 6; voting "nay": none. Mayor Brown declared the motion carried.
APPROVE 2010 CHEMICAL BID
The staff report from the superintendent of water utility relating to 2010 chemical bid for water/wastewater treatment plant, with recommendation to approve bids as specified.
It was moved by Council Member Gershman and seconded by Council Member Bakken to approve the recommendation. Carried 6 votes affirmative.
APPROVE DISPOSAL OF CAULFIELD STUDIO APPEAL
OF 2010 PARKING ASSESSMENT
The staff report from the director of Urban Development relating to Municipal Park System, with recommendation to dispose of Caulfield Studio's appeal of its 2010 parking assessment as follows: 1) approve a credit of ten off-street parking spaces; deny any change in the formula for square footage.
It was moved by Council Member Gershman and seconded by Council Member Bakken to approve the recommendation. Carried 6 votes affirmative.
APPROVE MODIFICATION TO CORPORATE CENTER
TAXABLE INDUSTRIAL DEVELOPMENT REVENUE NOTE
The staff report from the director of Urban Development relating to modification to Corporate Center Taxable Industrial Development Revenue Note, with recommendation to approve the Note modification proposed in this report, authorize the Urban Development director to sign the proposal; and direct the city attorney to prepare the appropriate modification documents.
It was moved by Council Member Gershman and seconded by Council Member Bakken that this recommendation be approved. Upon call for the question and upon voice vote, the motion carried 6 votes affirmative.
APPROVE REQUEST BY POLICE DEPARTMENT TO
DECLARE PERSONAL PROPERTY AS SURPLUS AND
ACCEPT PRIVATE SALE
The staff report from the police department relating to declare police department property surplus and approval of private sale, with recommendation to declare property as surplus and approve private sale of 1982 GMC step van to Devils Lake Police Department in the amount of $1,000; and approve private sale of remainder of salvaged squad #13, 2007 Ford Crown Victoria police interceptor to B & B Auto Salvage in the amount of $450.00.
It was moved by Council Member Gershman and seconded by Council Member Bakken that this recommendation be approved. Carried 6 votes affirmative.
INFORMATIONAL ITEMS
The Statement of Changes in Cash Balances as of November 30, 2009, was presented and read for council's information.
APPROVE BILL LISTING
Vendor Payment Listing No. 09-24, dated December 16, 2009, totaling $1,712,267.27, were presented and read.
It was moved by Council Member Bakken and seconded by Council Member Kreun that these bills be allowed and that the city auditor be authorized to issue warrants in payment of the same. Upon roll call the following voted "aye": Council Members McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 6; voting "nay": none. Mayor Brown declared the motion carried and the bills ordered paid.
COMMENTS BY MAYOR AND COUNCIL
Several members of the city council wished staff, employees and everybody in the city Happy Holidays.
Council Member Gershman reported that the lights downtown, one of the banners by Subway to the First National Bank and some of the lights on the rooftops are out and asked staff to check those.
APPROVE POSTPONING COMMITTEE OF THE
WHOLE MEETING SCHEDULED FOR DECEMBER 28
The matter of postponing the committee of the whole meeting scheduled for December 28, 2009 until Monday, January 4, 2010 was presented to the city council.
It was moved by Council Member Gershman and seconded by Council Member Glassheim to cancel the committee of the whole meeting scheduled for December 28 and to hold committee of the whole and the city council meetings on January 4, 2010. Carried 6 votes affirmative.
ADJOURN
It was moved by Council Member Gershman and seconded by Council Member Glassheim that we adjourn. Carried 6 votes affirmative.
Respectfully submitted,
Candice Stjern
Deputy City Auditor
Approved:
________________________________
Michael R. Brown, Mayor