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Council Minutes

PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF GRAND FORKS, NORTH DAKOTA
February 2, 2009

The city council of the city of Grand Forks, North Dakota met in the council chambers in City Hall on Monday, February 2, 2009 at the hour of 5:30 o’clock p.m. with Mayor Brown presiding. Present at roll call were Council Members Bjerke, McNamara, Glassheim (teleconference), Gershman, Christensen, Bakken, Kreun - 7; absent: none.

Students from Schroeder Middle School with parent volunteer, Jan Severson, led the council in the pledge of allegiance to the flag.

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.
Congratulations to Roger Pohlman on his promotion to lieutenant and William Wyatt, Jr. on his promotion to sergeant at the Grand Forks Police Department.

ND LEGISLATIVE UPDATE

Pete Haga commented on various bills before the legislature which the City is tracking, those bills are located on our website, www.grandforksgov.com. Testimony was provided on a number of bills last week re. the restriction of incorporating sprinkler systems into building codes, the penalty for killing or injuring a police service animal, and providing comments on three bills that sought to amend the valuation process; and a bill creating a fund re. quiet zones in railroad crossings. Don Shields, public health director, is in Bismarck today providing testimony on Senate Bill 2333, that creates a regional public health network and some impacts to that re. funding and how we provide services in our area. Grand Forks reps. will be in Bismarck tomorrow providing testimony on Bill 2408, which is the proposition to allocate $10 to $20 million to the Base Realignment Impact Committee to help offset the negative impact from the last BRAC round and to create economic opportunities; and a bill to create a certified technology park and that will be an enabling legislation throughout the State to allow communities to designate certain areas for technology parks to help spur technology development and technology companies. On Thursday there will be two landfill related bills and an extraterritorial zoning bill and people from public works and planning department along with Council Member Kreun will be providing testimony.

Council Member Bjerke commented regarding the landfill bill written by Council Member Glassheim, that we should let them know that we strongly support the State siting landfills, not only good for us but for the entire state. Council Member Christensen stated that the City should take a position on that notwithstanding what the League may choose because we have gone through it and that we should support it, and that he would ask Mr. Haga to write a letter in support of it.

Council Member Glassheim stated that he understands why the League and some cities would be hesitant because it does put local property rights against a bigger thing but will give testimony on it and that support would be very useful, that he has met with the Health Department and some people who are involved in it and has asked them to make suggestions about improvements that could be made, that if it doesn't pass will hope that we get a study resolution out of it. He stated he was in a meeting today with Public Service commissioners who stated they have that authority in the siting of pipelines to supercede local determinations because you can't have something block a state-wide pipeline or a regional landfill.

Council Member Christensen stated that House Bill 1340 which was introduced so that the staff of the MPO would qualify for the NDPERS but is concerned that this statute would have unintended consequences because there is lot of language in it that becomes mandatory - that he doesn't know the status of this bill. Mr. Glassheim stated the bill has been introduced and is scheduled for hearing either this week or next, amendments have been drafted but not introduced, and basically it defines the MPO for purposes of PERS and political subdivision which allows them legally to join the PERS Plan. The hearing for this bill is scheduled for Friday.

APPROVE APPLICATIONS FOR ABATEMENT OF
TAXES AT VARIOUS LOCATIONS

Staff reports from the city assessor relating to applications for abatement for 2007 taxes by the following:
Henry Passmore, 2913 Shadow Road
Daniel Nichols, 1801 24th Avenue South
Stanley B. Johnson, 3915 South 112th Street, Unit C
Robert L. Humble, 1801 9th Avenue North
Thomas Aaker, 1503 South 19th Street
William G. Moore, 3801 South 11th Street, Unit C
Nicholas and Florence Ruhland, 1302 Walnut Street
with recommendation to the Board of County Commissioners that these applications be approved as submitted.

It was moved by Council Member Bjerke and seconded by Council Member McNamara that these recommendations 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 Bjerke, McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 7; voting "nay": none. Mayor Brown declared the motion carried.

APPROVE APPLICATIONS FOR EXEMPTION OF
REMODELING IMPROVEMENTS TO RESIDENTIAL/
COMMERCIAL BUILDINGS AT VARIOUS LOCATIONS

The staff report from the city assessor relating to applications for exemption of remodeling improvements to residential or commercial buildings as follows: 1212 University Avenue, 1319 6th Avenue North, 1506 Burke Drive, 2285 Springbrook Court, 1014 Campbell Drive, 1111 Campbell Drive, 1108 South 11th Street, 504 Chestnut Street, 513 6th Avenue North, 716 6th Avenue North, 1906 Chestnut Street, 811 Sunset Drive, 3102 Legend Lane, 815 South 10th Street, 5010 4th Avenue North, 3004 Walnut Street, 3214 Belmont Road, 4306 Cottonwood Street, 4120 Walnut Street, 1511 10th Avenue North, 1206 South 15th Street, and 715 South 25th Street; with recommendation to grant exemptions of increased value for three (3) years.

It was moved by Council Member Bjerke and seconded by Council Member McNamara that this recommendation be approved. Upon roll call the following voted "aye": Council Members Bjerke, McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 7; voting "nay": none. Mayor Brown declared the motion carried.
ADOPT RESOLUTION APPROVING PLANS AND
SPECIFICATIONS FOR PAVING PROJECT NO.
6273, DISTRICT NO. 637, RECONSTRUCTION OF
PORTION OF NORTH 51ST STREET, FEDERAL AID
PROJECT

The city engineer's estimate of total cost to the benefited property owners of the construction of paving of North 51st Street from Gateway Drive to 10th Avenue North in the capped assessment amount of $131,760.00, was included in the engineer's staff report.

The staff report from the engineering department relating to plans and specifications for Project No. 6273, District No. 637, paving North 51st Street from Gateway Drive to 10th Avenue North, Federal Project #SU-6-986(083)087; with recommendation to approve plans and specifications for the project, and authorize installation of 60 ft. wide driveway measured at sidewalk on 51st Street for the southernmost driveway of Forks Equipment located at 5101 Gateway Drive.

Council Member Bjerke introduced the following resolution which was presented and read: Document No. 9201 - Resolution.

It was moved by Council Member Bjerke and seconded by Council Member McNamara that the recommendation be approved and that the resolution approving plans and specifications be adopted. Carried 7 votes affirmative.

APPROVE AMENDMENT TO ENGINEERING
SERVICES AGREEMENT FOR PROJECT NO. 6101

The staff report from the engineering department relating to Amendment No. 1 to engineering services agreement with CPS for Project No. 6101, paving South 48th Street from 17th Avenue South to 32nd Avenue South, Federal Project #SU-6-986(082)086, with recommendation to approve Amendment No. 1 with CPS in the amount of $433,133.00.

It was moved by Council Member Bjerke and seconded by Council Member McNamara that this recommendation be approved. Upon roll call the following voted "aye": Council Members Bjerke, McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 7; voting "nay": none. Mayor Brown declared the motion carried.

APPROVE SPECIFICATIONS FOR PORTABLE CAR
FIRE TRAINER

The staff report from the fire department relating to specifications for portable car fire trainer, with recommendation to approve specifications for portable car fire trainer and allow fire department to begin bidding process.

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

APPROVE RIVERSIDE POOL JOINT POWERS
AGREEMENT
The staff report from the city administrator and the city attorney relating to Riverside Pool Joint Powers Agreement, with recommendation to approve the Joint Powers Agreement and authorize the appropriate city officials to enter into the agreement with the Park District.

It was moved by Council Member Bjerke and seconded by Council Member McNamara that this recommendation be approved. Upon call for the question and upon voice vote, the motion carried 7 votes affirmative.

APPROVE FINAL CONTRACT WITH ND STATE
INVESTMENT BOARD FOR MANAGEMENT OF
DEFINED BENEFIT PENSION PLAN ASSETS

The staff report from the pension and insurance committee relating to matter of approval of final contract with ND State Investment Board for management of DB Pension Plan Assets, with recommendation that council name City of Grand Forks as trustee for the Defined Benefit Pension Plan, approve final contract with the ND State Investment Board (NDSIB) for management of plan assets including the asset allocation, and authorize proper city officials to execute the agreement with the SIB and appropriate trustee documents.

It was moved by Council Member Bjerke and seconded by Council Member McNamara that this recommendation be approved. Upon call for the question and upon voice vote, the motion carried 7 votes affirmative.

APPROVE REQUEST FOR ADDITIONAL COST
ESTIMATES FOR REPAIR OF SMILEY WATER TOWER

The staff report from the director of public works and water utility superintendent for consideration of engineering services agreement for Project No. 6399, North End Water Tower Rehab and Smiley Tower Alternative Evaluation.

At the request of Hazel Sletten, water utility superintendent, Wayne Gerszewski, Advanced Engineering, reviewed the various options for the overall project, North End Water Tower Reconditioning and addressed the Smiley water tower coating conditions, etc. Estimated construction cost for each of the 5 alternatives along with estimated contingencies and associated engineering fees and total cost of each of the options, including design and bidding.

Option A - North End WT reconditioning and leaving Smiley as is - Estimated construction cost, $385,000, estimated contingencies (10%), $39,000, estimated engineering fees, $57,750 for total cost of $481,750.
Option B - North End WT reconditioning w/Smiley WT demolition - $475,000, $8,000, $62,250 for total cost of $585,250. He stated they estimated taking Smiley water tower down at $90,000 with approx. $9,000 in contingencies and engineering fees $62,250 and difference between $57,000 and $62,000 would be engineering fees for adding Smiley demolition to the project, $5,000 (5% of the est. construction cost of Smiley portion of the option. It was noted that if you subtract $385,000 from $475,000, get $90,000 construction dollars plus $5,000 in engineering fees.
Option C - North End WT reconditioning w/Smiley WT short-term coating - $570,000, $57,000, $67,000 for total cost of $694,000.
Option D - North End WT reconditioning w/Smiley WT long-term coating repairs - $745,000, $74,000, $72,150 for total cost of $891,150.
Option E - North End WT reconditioning w/Smiley demolition and Purpur WT smile face application - $503,000, $50,000, $65,000 for total cost of $618,000.

Council Member Kreun reported this has been before service/safety committee at least two times before this, have analyzed cost each time and have gone through process of whether we should keep the water tower, demolish it or rehab it, and the committee recommended each time to demolish it, and moved that we approve the engineering service agreement with the understanding that we recondition the north end water tower with demolition of Smiley water tower - Option B. Council Member Bjerke seconded the motion.

Gordon Iseminger, 2420 9th Avenue North, stated a number of reasons for keeping the Smiley water tower, as well as Jerry Waletzko, 5041 West Elm Court, who also spoke in favor of retaining the water tower.

Council Member McNamara asked what the pressing need is that we would do away with Smiley; have a number and why not offer that number to a group and if they can match it or get whatever amount of money that is needed beyond that, to partner with them to create something - needs to hear pressing need to tear it down.

Council Member Gershman stated concern of leaving the tower as it is deteriorating and doesn't like public structures to look bad, commentary on the community, and the option for him is either to do something with the tower or for it to come down. He also stated he didn't think there was a hurry because nothing will happen until spring and would like to get actual bids on the water tower. One alternative for funding would be to use Beautification funds as they did when purchasing Christmas lights, saved Beautification money for two years to do that, get the bids and if decide to keep the tower, can use the Beautification money, $100,000/year

Council Member Bjerke stated that if not going to tear it down, have the finance department create a new account number - Save Smiley Fund - see how much money comes in; but need to make a decision on this - either tear it down or commit and fix it and spend the money.

Council Member Kreun stated the tower is deteriorating, that if we go ahead and do this and later have to do the underpass and widening for that bridge on Washington and that it is in the way, who will pay us back when we have to move it or tear it down at that point in time.

Council Member Bjerke called for the question.

Upon roll call vote the following voted "aye": Council Members Bjerke, Bakken, Kreun - 3; voting "nay": Council Members McNamara, Glassheim, Gershman, Christensen - 4. Mayor Brown declared the motion failed.

Council Member Christensen moved that we will open a fund - 2163A, which will be a supplementary fund for economic development for any money that comes into the city to save Smiley; that there is nothing urgent about this but have opportunity to address this and get some hard costs and moved that we ask Advanced Engineering Services to give us costs including alternatives of reconditioning the Smiley water tower with the plans and specifications for the north end water tower. Council Member Gershman seconded he motion

Mr. Gerszewski stated that the north end water tower could come out of service at anytime so it could take place over this summer, the Smiley water tower with the paragon falcon nest becomes empty the end of July or first part of August and is time that you would actually do that work. It was stated that in the package one of the options is North End Water Tower Reconditioning with Smiley short term coating, and the other one is D with the long term repairs and that is what looking at to get the economy scale.

Upon call for the question and upon voice vote the following voted "aye": Council Members McNamara, Glassheim, Gershman, Christensen - 4; voting "nay": Council Members Bjerke, Bakken, Kreun - 3. Mayor Brown declared the motion carried.

Council Member Glassheim moved that we refer to the Events Committee consideration of ways of marketing and branding Smiley, whether it is torn down or not, and that they come back with some recommendations to council. Council Member Gershman seconded the motion

After further discussion and upon call for the question, the following voted "aye": Council Member Glassheim - 1; voting "nay": Council Members Bjerke, McNamara, Gershman, Christensen, Bakken, Kreun - 6. Mayor Brown declared the motion failed.

APPROVE AMENDMENT TO CONSULTING SERVICE
AGREEMENT FOR PROJECT NO. 6324

The staff report from the director of public works relating to Amendment No. 1 to consulting services agreement for Project No. 6324, Landfill Preliminary Design and Permitting Agreement, with recommendation to approve Amendment No. 1 to consulting services agreement for Project No. 6324, Landfill Preliminary Design and Permitting Agreement with Burns & McDonnell Engineering Company, inc. in he amount of $225,000, Amendment No. 1 will increase the not exceed agreement amount to $875,000. If needed, authorize the use of Water Enterprise Fund cash funds for interim financing for the new landfill permitting process. If used, the Water Enterprise Fund cash funds will be reimbursed, once a new landfill project is fully developed and defined, with Sanitation Revenue Bond and/or other financing proceeds related to the entire new landfill project.

It was moved by Council Member Bjerke and seconded by Council Member McNamara that this recommendation be approved. Upon roll call the following voted "aye": Council Members Bjerke, McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 7; voting "nay": none. Mayor Brown declared the motion carried.

APPROVE CONSULTING SERVICES AGREEMENT FOR
PROJECT NO. 6423, NEW LANDFILL FINAL DESIGN

The staff report from the director of public works relating to consulting services agreement for Project No. 6423, New Landfill Final Design, with recommendation to approve consulting services agreement with Burns & McDonnell Engineering Company, Inc. for Project No. 76423, New Landfill Final Design in the amount of $220,000. The Public Works Department will have Burns & McDonnell Engineering Company, Inc. commence design activities on the new landfill upon review of the status North Dakota Department of Health (NDDH) new landfill permitting process and upon concurrence of the Service/ Safety Standby Committee. If needed, authorize the use of Water Enterprise Fund cash funds for interim financing for the design activities. If used, the Water Enterprise Fund cash funds will be reimbursed, one a new landfill project is fully developed and defined, with Sanitation Revenue Bond and/or other financing proceeds relating to the entire new landfill project. Because the new landfill has Wastewater and Stormwater components, a proportional share of the design and construction costs will be apportioned to the Wastewater and Stormwater Enterprise Funds.

It was moved by Council Member Bjerke and seconded by Council Member McNamara that this recommendation be approved. Upon roll call the following voted "aye": Council Members Bjerke, McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 7; voting "nay": none. Mayor Brown declared the motion carried.

APPROVE AGREEMENT FOR CONSULTING SERVICES
FOR PROJECT No. 6421, RECONSTRUCTION OF PORTIONS
OF NORTH 69TH STREET AND 54TH AVENUE NORTH

The staff report from the director of public works relating to consulting services agreement for Project No. 6421, reconstruction of North 69th Street between 27th and 54th Avenues North and 54th Avenue between North 55th and 69th Streets, including grading, drainage, roadway construction and other related work, with recommendation to approve consulting services agreement with CPS, Ltd. for Project No. 6421, reconstruction of North 69th Street between 27th and 54th Avenues North and 54th Avenue between North 55th and 69th Streets, including grading, drainage, roadway construction and other related work in the amount of $270,150. The Public Works Department will have CPS, Ltd. commence design activities on the roadway reconstruction upon review of the status North Dakota Department of Health (NDDH) new landfill permitting process and upon concurrence of the Service/Safety Standby Committee. If need, authorize the use of Water Enterprise Fund cash funds for interim financing for the design activities. If used, the Water Enterprise Fund cash funds will be reimbursed, once a new landfill project is fully developed and defined, with Sanitation Revenue Bond and/or other financing proceeds related to the entire new landfill project. Because the roadway reconstruction will benefit the Sanitation, Wastewater, and Water Division, the design and construction costs will be shared among the three divisions.

It was moved by Council Member Bjerke and seconded by Council Member McNamara that this recommendation be approved. Upon call for the question and upon voice vote, the motion carried 7 votes affirmative.

INDUSTRIAL LAND ACQUISITION

The staff report from the urban development director relating to industrial land acquisition, with recommendation to approve purchase of property from Lois Maier and from Johnson
Farms according to the terms and conditions set forth in the draft purchase agreement attached hereto:
1) the purchase price is $20,000 per acre ($1,425,400 to Maier for approximately 71.2 acres and $1,252,800 to Johnson Farms for approximately 57.6 acres).
2) earnest money of $10,000 for each purchase agreement;
3) the City's purchase is contingent upon obtaining adequate financing by sale of bonds at terms and conditions acceptable to the City;
4) the City and seller agree to jointly enter into separate leases to allow tenant farming operations on the respective properties through December 31, 2009;
5) stipulation that the acquired property will be annexed into the city with provisions that:
a) the property Maier owns between South 42nd Street and I-29 will not be included in this
annexation; however, it will be subject to future annexation according to City policies and
ordinances;
b) Johnson Farms is retaining a 1,000-foot-deep parcel along 32nd Avenue South which will be
subject to an annexation agreement which calls for (1) annexation within seven years or when the
property is developed, whichever comes first; (2) inclusion of a waiver by the seller to protest
annexation; and (3) provision for a "tapping fee" upon the property for the initial construction of
South 48th Street.

It was moved by Council Member Kreun stated this is part of acquisition for the property to work with expanding the industrial park, and moved to authorize the proper City officials to enter into the purchase agreement for the acquisition of property as described in the staff report with deletion of the bond financing contingency subject to final approval of the purchase agreement and closing documents by the city attorney. The motion was seconded by Council Member Gershman.

Council Member Kreun stated they wanted to make sure that it doesn't have to be part of the motion but the intent of the city council is to transfer what property is needed for right of way and utilities to the JDA at a future date. Council Member Gershman agreed.

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

APPROVE BILL LISTING AND ESTIMATE SUMMARY

Vendor Payment Listing No. 09-03, dated January 29, 2009, totaling $1,757,946.26 and Estimate Summary dated January 31, 2009 in the amount of $337,567.56, were presented and read.

It was moved by Council Member Kreun and seconded by Council Member Bjerke 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, Gershman, Christensen, Bakken, Kreun - 7; voting "nay": none. Mayor Brown declared the motion carried and the bills ordered paid.

APPROVE MINUTES JANUARY 20, 2009

Typewritten copies of the minutes of the city council held on Tuesday, January 20, 2009 were presented and read. It was moved by Council Member Bjerke and seconded by Council Member Gershman that the minutes be approved with a correction in votes cast for approval of Project Concept Report for Project No. 6273, as 4 votes affirmative and 1 negative vote. Carried 7 votes affirmative.

CITY ADMINISTRATOR COMMENTS

Rick Duquette, city administrator, announced that in discussions with the Mayor that he will assemble the city council towards the end of February to begin discussions related to our budget and get the process started earlier this year to see what is happening with some of the priorities from the council and mayor, what our revenue and expenditure picture looks like because of unique national economy circumstances.

COMMENTS BY MAYOR AND COUNCIL

1) Council Member Bjerke stated that he hoped we would start a Smiley fund and would like to hear at first council in month and update on how much we have.

2) Council Member Kreun announced that the Service/Safety Standby Committee would be meeting tomorrow, February 3, at 4:30 p.m. in Room A101.

3) Council Member Gershman stated that about a week ago he met with Mr. Duquette and the Mayor about early budget sessions with the city council, that the Mayor was very gracious in being willing to allow the council to be involved at the very beginning of the process, that Grand Forks is not in crises by any means but that it will be very beneficial for all of us to work together. He thanked Mayor Brown for that.

ADJOURN

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

Respectfully submitted,

Saroj Jerath
City Auditor

Approved:
________________________________
Michael R. Brown, Mayor