Council Minutes

Minutes/Committee of the Whole
Monday, December 8, 2008 – 5:30 p.m.
The City Council met as the Committee of the Whole on Monday, December 8, 2008 at 5:30 p.m. in the Council Chambers in City Hall with Vice President Glassheim presiding. Present: Council Members Bjerke, McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 7; Absent: None.

2.1 Budget Amendment for money moved to Loan & Stabilization Fund for bond closeouts and sidewalk warrants.

Bjerke requested a description of the purpose of the Loan & Stabilization Fund. John Schmisek, Director of Finance, explained that it is intended to help smooth large swings from the budget and is typically used to fund large one-time expenditures for unexpected items but could be used for anything at the Council’s discretion. He explained that the funds that are held in this account come from excess dollars left in bond funds once the bonds have been paid off. Bjerke asked whether this is then another reserve fund for the Council to use in the event of emergency and if so, would point out that still feels there are too many reserve accounts and the Council should look at eliminating some. Schmisek stated that yes, it could be used to cover any expenses at the discretion of the Council.

Christensen asked whether any excess funds from the Alerus bonds would also go here. Howard Swanson, City Attorney, replied that the Alerus bonds are handled differently due to their definition and would remain in a separate fund to be used only for needs at the Alerus Center.

Glassheim asked if there was any recommendation for specific items that the Loan & Stabilization Funds should go to cover. Schmisek stated that since there is no guarantee of when or if there would be more revenue coming into the fund, would recommend that it not be used for recurring items, but for one time needs such as unanticipated replacement of a fire truck, or possibly for a one time contribution to the pension plan.

2.2 Budget Amendment for Special Events in 2008.

Bjerke inquired why these were not covered in 2163 fund. Schmisek replied that they are going into that fund, just were unanticipated events that came up after the budget for the fund was already set and are coming from cash carryover for that fund. He added that these are over and above the amount that was already set aside for allocation to other groups and if took them out of that allocation there would have been hardly any left to fund the community events.

2.3 Application for taxi license by Space Cruz, LLC dba Shuttle 54.

There were no comments.

2.4 Request from Prairie Public Broadcasting, Inc. Fargo, ND for gaming site authorization at Canad Inns, 1000 S. 42nd St.

There were no comments.

2.5 Request for transfer of Class 2 (Off Sale Alcoholic Beverage) license from 2 Dogs, Inc., dba Columbia Liquors, 1950 32nd Ave S to Valley Liquors, Inc.

Bjerke inquired is there was any update related to the memo that Swanson had distributed. Swanson stated that he did receive an update today and that fixtures and furniture are now owned by 2 Dogs, but upon issuance of the license to Valley Liquors, Valley Liquors will be purchasing them from 2 Dogs and will be sole owner of them.

2.6 Purchase of property and easements necessary for construction of Project No. 6144, Replacement of Stormwater Pump Station #187 located at Columbia Road and 32nd Ave S.

There were no comments.

2.7 Project Concept Report for Project No. 6273, Dist. No. 637, pacing N. 51st St from Gateway Dr. to 10th Ave. N., Federal Project #SU-6-986(083)087. (Info Only)

There were no comments.

2.8 Amendment No. 1 to Engineering Services Agreement with Webster Foster & Weston for Project No. 6273, Dist. No. 637, paving N. 51st St. from Gateway Dr. to 10th Ave. N. Federal Project.

There were no comments.

2.9 Park District deeds and leases.

Al Grasser, City Engineer, pointed out terms in the agreement including that the initial term is 5 years, automatically renewed up to 3 times with each renewal being for 5 years, for an overall total of 20 years; the Park District is responsible for insurance and any taxes on properties. Kreun commented that have been working on these leases for a number of years and great job by staff and legal counsel for getting them all consolidated and in easier to reference format. Christensen also expressed thanks to Bartholomew for his work on getting the plat information included in the information for Council so that they could better see the areas included. In response to questions, Grasser explained that on the Lincoln sledding hill, item 2b, third point, the City is going to take responsibility for paying any specials that come up on that; on Sunbeam Trailhead, 2a – we will own the trailhead and therefore will take responsibility for capital needs, however the Park District will cover repairs less than $200 and basic maintenance and management of the facility.

2.10 2009 Salary Plan.

Daryl Hovland, Human Resources Director, informed the Council that based on the safe work habits and adoption of safety plan by the City employees, the City received a decrease of $500,000 in their workers comp premium again this year and wanted to note that to Council. Hovland continued that have also, with the approval of Council, brought in the NDPERS pension plan as an alternative for City employees this year and is an enhancement for employees. Hovland noted that as we have been with the PFP plan for a few years now are starting to see the salaries stabilizing and coming closer to the market for most positions, which is freeing up more dollars to go towards the performance part of the allocation. Hovland briefly reviewed the highlights of the plan and comparatives used for the Council. Hovland thanked Christensen and Gershman for their work on the PFP system.

Gershman pointed out that for the last 3 years have kept the number of city employees constant or declining, yet the City has continued to grow and shows the commitment of employees as they are producing more with less personnel and shows work ethic of the employees. Council Members expressed appreciation to the employees for their efforts as well as for the safe work habits that they have chosen to adopt so that the City continues to save money on their work comp premiums.

2.11 2008 Holiday Bonus Hours.

Hovland explained that the last several years the City has approved 4 hours off for employees as a holiday bonus and that the employees schedule this time off with the supervisors in a way that does not create overtime or problems with the operation of the department and have until July 1 to use the hours. Bjerke stated that he feels there is a cost to this item as people are getting time off from work but are still being paid and wants Council to consider this and maybe in the economic times we are in need to start thinking about some of these and if should continue with business as usual or start looking at changing or eliminating some of these past practices. Christensen commented that most businesses do recognize their employees at the holiday time and does show good will to the employees who work hard for the city. Kreun agreed and stated that while there may be a “cost” to the City, it has been shown that if you treat your employees well and show you care about them, they will respond with good performance.

2.12 Substandard dwelling/sheds/lot at 1524 N. 5th Street.

Bev Collings, Building and Zoning Administrator, stated that this item is on the agenda for the purpose of calling for the Public Hearing. Swanson stated that at the December 15 Council meeting the Council would call the hearing and soonest could be would be January 5. Glassheim noted that there were some citizens in the audience that wished to speak to this item.

Dawn Bauer, 1524 ½ N 5th St., stated that she has been trying to start cleaning up the property, but did not receive the key until November 6 and since has been sick since then, as have some friends that were going to help with the cleanup, cleanup has also been hindered by the fact that she is not working and has no income or permanent residence and no phone and trying to transport items from the site to a location 40 miles away, but with no money hard to pay for gas and keep making trips back and forth. She asked the Council to allow more time so that she can complete the clean up and wants the opportunity to salvage what she can and also place where her mother passed away and hard for her to go through all items when she has been sick.

David Fisher, 1625 20th Ave S #106, stated that he has been an acquaintance of the family for several years and is willing to work with Bauer to assist with the clean up and show that they are making some progress. He stated that with Council’s permission would like to work as a go between with the City for Bauer and has a phone so could help with contact. He stated that he is also indigent and has no income, but have made contact with some people to assist them in the cleanup.

Glassheim advised that at the meeting on the 15th will be setting a public hearing to demolish the home and encouraged them to work with building inspections on this issue. Bauer stated that having no income and no phone has hindered her ability to keep in contact and that she did not receive notice of this meeting until this afternoon because of that and is asking for more time to accomplish the cleanup and to demolish the house themselves as have no money to hire someone to do this. Collings stated that they can choose to demolish it themselves, but must be done in a timely manner and that is willing to work with them on a plan to accomplish the demolition. She stated that there are some items that will require a contract such as disconnection of sewer and water.

Christensen inquired as to legal ownership of the property. Bauer stated that it was her mothers home. Christensen asked whether probate had been started and if there was any insurance on the property. Bauer stated that there was not insurance and did not understand probate and the process that needed to be completed. Christensen recommended that she contact the Law School at UND, as they offer legal aid to low income individuals and see if they would be able to assist her in the probate and also represent her in the demolition matter. He added that with insurance they would have had funds to cover the cost of the demolition and cleanup. He stated that Bauer needed to work with Inspections to come up with a plan for resolution on this and need to find a way to maintain contact.

2.13 Appointment to GF Events Center Commission.

Christensen commented that he has no objection to any of the proposed appointees, but wondered if this would be a time to relook at the makeup and function of the commission and see whether a 7 person is still appropriate or if a 5 person could function more efficiently. Kreun commented that the Commission has also brought this up and feels a review is appropriate, but would require ordinance change and will be working with Duquette and Swanson to bring something back to Council on this at a future meeting.

2.14 Matter of change in rate of return assumption for Defined Benefit Pension Plan.
Schmisek reviewed the three types of pension that the City offers, Defined Benefit Plan for those employees hired prior to January 1, 1996, Defined Contribution Plan for those hired after January 1, 1996 but before July 1, 2008, and the newly offered participation in the state NDPERS plan. Bjerke stated that he has a concern with any plan that puts the City on the hook to cover pension costs that can escalate in the future and not sure why would decide to go back to participate in defined benefit plan after getting out of one. McNamara asked how the db plan performance is looking given the market conditions. Schmisek responded that he would anticipate that by yearend could be down by 25% and perhaps see the unfunded liability go to 50% from this year’s 72% funded.

Christensen stated that the change to NDPERS was made for the benefit of our employees, as no one is a expert at managing investments and NDPERS is a good solid plan and then have those that are experts working with the investments and while not every business has that opportunity, should take advantage of it since it is open to us for our employees. He continued that based on the performance of the state plan would like to see our DB Plan have the assets managed by the state investment board rather than having committee of novices try to decide what would be best managers to have in charge of those funds. He also noted that some of the plans that are in trouble have had elements in them that we don’t have such as paying people when on strike and not working and not talking that with our plan.

Glassheim pointed out that this item does not concern joining the plan, as we are already in it, just in making a change in one of the assumptions related to the plan we already offer. Bjerke stated he just wants to point out that he is against this type of plan where taxpayers have to pay for it.

McNamara noted that we have made up a lot of ground in the last couple of years and this assumption does affect the amount of the City’s annual contribution to the plan and as the rate of return assumption goes down, the required contribution will increase, but does provide the City with a better idea of what will have to be done to fund the plan in the long term and that we are also working on a plan to decrease the management fees associated with the assets of the plan to compensate some for that as described in item 2.17 of this agenda.

Gerhsman stated that he concurs with Christensen in that cities where the plans are in trouble have been in riskier investments than we have been and overall our plan has been holding up well. Schmisek added that another factor that has hurt some plans has been the guarantee of health insurance for life to retirees, which is something that we do not have tied to our plan. Gershman stated that even if we are lower this year, as the market starts settling and coming back will also see improvement in the plan and have plan in place so not time to panic.

Christensen commented that Bjerke has brought up the thought the City may have too many reserves, but that would be a source to use to fund unanticipated events such as the pension needs and has suggested this for years. He noted that part of our plans problem was that there were a number of years that the City did not put in the recommended contribution amount and are now catching up with that through the plan that is in place and do have time to rebuild the funding before the plan is closed and should be able to fund without needing to bond to cover the remaining costs.

2.15 Matter of 8th Amendment to Defined Contribution Pension Plan.

Schmisek commented that the venue listed will be amended to state North Dakota so matches with Defined Benefit Plan.

2.16 Matter of 10th Amendment to Defined Benefit Pension Plan.

There were no comments.

2.17 Matter of change in asset allocation and method of investment.

There were no comments.

2.18 2009 Chemical Bid for Water/Wastewater Treatment Plant.

There were no comments.

2.19 Public Works Dept. – Wastewater/Stormwater Collection Division truck with jetter.

Kreun commented that the truck being replaced in 26 years old.

2.20 Proposed ordinance amending Section 14-0402 of the Grand Forks City Code re. to Greenway
definitions and Section 14-0413 re. to motor vehicles in the Greenway.

Gershman stated that he was happy to see this addition to the ordinance and hopes that we encourage this through group events.

2.21 Budget Amendment for Public Works Dept.

There were no comments.

2.22 Municipal Parking System
Bjerke inquired if the cost of the lights and cameras was part of this amendment. Hoover stated that it is not, this is for operations and maintenance. Bjerke asked what the solution is to remedy the shortfall for the long-term so that we don’t have to do this every year. Hoover replied that in January he will be bringing to Finance Development Committee a proposal for a change in the method of assessment.

Hoover explained that typically they prepare the budget, subtract what they have for revenue from reserved spaces, and assess the rest to the businesses based on the formula in code. The shortfall has come in as some businesses are not paying their assessments. The only option if they choose not to pay is to send them to collection, except for bars, with which we can also withhold the issuance of their liquor license until they pay. He continued that the proposed change will make the assessment to the property owner, rather than the business tenant. The owner will then have the option of how they wish to pass it on to the tenant and in the event of nonpayment, the amount could be special assessed. Hoover stated that another part of the proposal will be an increase in the fees, as currently has been several years, and maybe since before the flood when any increases were made. Hoover stated that they are also reviewing the 2009 budget to look for ways to decrease expenditures which will lessen or eliminate any shortfall. Bjerke clarified that they are looking at ways to balance the fund. Hoover stated that they are attempting to do that and if can not come up with a workable solution, maybe also need to explore privatizing the management of the parking.

Gershman suggested phasing in the rate change and then indexing it so that the increases are gradual and consistent rather than doing large changes periodically. He also suggested being more aggressive in the collection of these fees and press when they are behind the first quarter, as its easier to collect before the amounts get so large.

McNamara asked for a brief review of how the problem came about. Hoover reviewed briefly that the fund initially started from some cash transferred from the downtown parking authority when they were dissolved after the flood and the deficit each year gradually ate those funds away. McNamara asked why this was not zeroed each year. Hoover stated that was his responsibility and had not paid close enough attention to it until 2007 when came to Council and began to explain the problem. McNamara stated that he would hope the plan that comes to Finance Development Committee is a fully integrated plan. Hoover stated that plan to be brought will include not only the budget, but also capital plan and sense of future actions needed for the municipal parking system. McNamara asked whether Urban Development had time to manage the system or if it needed to be placed elsewhere. Hoover stated that it took time to bring this to Council, but with new plan will have the time to manage it going forward.

Gershman stated that we do need to work on collections, as it is an insult to those that pay regularly to see some get by without paying. He asked when the last time the Attorney’s office had been contacted to pursue collection of delinquent accounts. Swanson replied that he does not remember in the last several years any requests to pursue parking accounts.

Christensen stated that the process pre-flood is antiquated and now that we are out of recovery mode it’s a good time to address items like this and knows there have been problems with charging and setting up these charges including maybe working with building owners that’s easiest way, particularly in getting information as to when there is a change in use within a building and when those adjustments need to be made. He added that should be some excess money now that we have cameras and no need for guard expense. He also suggested that we need to get more aggressive with the ticketing and make it cost more for people to park improperly on the street than to utilize the ramp, which may include a review of the parking limits for on-street parking, with potential reduction to 90 minutes from the current 2 hours. He stated that the problem that we are facing is not only in Grand Forks, but other cities also addressing this issue as well and noted that Fargo is also seeing the same issue.

Glassheim stated that understands the funding problem, but that also can’t make it too expensive, and if can’t get the costs down, perhaps the City also needs to look at sharing this cost across the whole city.

2.23 Redevelopment of 1506 Chestnut St. and Walnut Place

Bjerke inquired whether the City wants to remain tied to Fannie May given the recent issues they have had. Hoover stated that the projects that the City has done have all gone very well and that are no longer with them and remaining will be paid off in April 2009. Kreun noted that through the programs they have offered through the Housing Authority have been able to construct and provide housing stock for those in the working class and has worked very well in the last several years.

2.24 Yearend Urban Development Budget Amendments.

There were no comments.


3 Information Items.

There were none.


4. Citizen Requests

There were none.


5. City Administrator Comments.

There were none.

6. Mayor and Council Member Comments

Glasshem noted that Grand Forks welcomed the first UAS to the community this week and will be the start of a great opportunity for the community.

Bjerke stated that he wants to make clear that he is not anti-employee, just concerned that shouldn’t just keep doing everything business as usual and wants items to be considered and discussed to determine whether they should continue and if in the best interest of the City to continue. He also noted that when makes his comments, while they may be critical of items, does not intend them to be personal and hopes that no one takes it that way. He just gets frustrated sometimes because some items take so long to get resolved.

Christensen noted that County tax bills are out and people should see that most entities have a decrease in their levies compared to last year and overall the bill has gone down and that is all due to the diligence of elected officials listening to the citizens, but encouraged them to continue to challenge the entities to look for even more ways to bring down the levies and continue the savings.

Bakken noted that in regards to the tax bill, this is the first year the County taxes are more than the City taxes and that change has come about gradually over the last three years and personally feels that he receives more direct services from the City than the County.

Bakken congratulated Glassheim on his selection to represent the state at the presidential inauguration in January.

Kreun state that on Wednesday he met with FLA class at Central and 2 members of that class are in the audience tonight and appreciate the interest of the youth in their local government and anxious to come back and meet with them now after the meeting to see what they thought.

Kreun stated that last Friday was first annual Festival of Lights at the Alerus Center and nice display of holiday trees, refreshments and fireworks and hope to make this an annual event and build next year to include a supper and auction of trees with revenue donated to the symphony. He noted that have had very busy month at the Alerus Center with Neil Diamond, Trans Siberian Orchestra, Festival of Lights, Disturbed, and Michael W. Smith and looking ahead to January with James Otto and championship rodeo already scheduled.

Swanson noted that Christensen had received protest from cemetery association on special assessments and will be placing on the agenda for December 15 to have that item referred to the Finance Development Standby Committee for review.

Swanson also asked that if anyone notices errors in the city code books that they notify him so they can be included in the technical correction that is being worked on.

Gershman stated that agrees with Bjerke’s frustrations for how long some things takes and wants to also share that he does not take comments personally and is good to hear opinions of Council Members.

Gershman noted that the holiday lights are up and look very nice, but would be nice to see something also on at City Hall.

Gershman encouraged Planning & Zoning to look at fast track for projects that come up as part of the stimulus package to facilitate faster progress on the project.

Gershman stated that the last couple of years have postponed the meetings around the holiday and would suggest not holding the Committee of the Whole on December 22, but rather postponing it and holding it on January 5, with a Council meeting to follow with only noncontroversial items on the agenda at that time. Consensus was to proceed with this and place on the December 15 agenda for a vote.

7. Adjournment.

Motion by Council Member Gershman, Second by Council Member Bjerke to adjourn meeting at 7:25 p.m.

Respectfully submitted,


Emily Fossen, CPA
Accountant

SLL