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MINUTES/URBAN DEVELOPMENT COMMITTEE
Tuesday, October 11, 1994 - 4:00 p.m.

Members present: Beach, Glassheim.

1. Change order request for housing project in Burdick's Resub.
Mr. O'Leary reported that the specs for houses in Burdick's Resubdivision included front and rear steps; that the contractor misread the specs and did not include them when he bid the project, that he believes this was an honest mistake and no fault of the architect or the City, but that it would only be fair to compensate the contractor for part of that cost. He reported that the total cost for the steps is $5,500 and that the staff is recommending a change order of $2,000 with Sherlock Construction absorbing the remaining $3,500.

Jack Sherlock of Sherlock Homes was present, stated he has foundation work, and being there was separate bid for concrete sidewalks, etc. thought it was included with that. Mr. Sherlock stated he agreed with compromise.

Moved by Glassheim and Beach that we approve the $2,000 change order with the understanding that the steps be completed as per plans. Motion carried.

Mr. O'Leary reported that Sherlock Homes has done good job, and that quality of construction top-notch.

2. Bids for expansion of FTZ building.
Mr. Anderson, architect, and Mr. O'Leary presented tabulation of bids for electrical and mechanical contracts for expansion of the FTZ building and reviewed bids with the committee.

Moved by Glassheim and Beach to accept base bid of Alden Braseth, Inc. in the amount of $55,250.00 for mechanical construction, and to accept the base bid of Ron's Electric, Inc. in the amount of $99,800, contingent upon execution of lease with TAG. Motion carried.

Mr. Anderson, architect, asked when the lease would be signed, and Mr. Swanson stated that he didn't know. Mr. O'Leary stated that TAG has been authorized by their Board to enter into lease. It was noted that lease probably signed sometime next week. Mr. O'Leary also stated that TAG is aware price per sq. foot will increase.

Mr. Anderson stated that TAG doesn't want the add alternates, and they are not reflected in contract figures.

Motion carried.

3. Matter of ordinance creating River Forks Commission.
Howard Swanson, city attorney, distributed copies and reviewed ordinance with changes as directed by the committee: 1)

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to insure or provide for surety bonds for its officers and directors; 2) term of members on calendar year basis; 3) under Records and reports: requires filing of audit prior to May 31 of each year, and could be part of City's comprehensive audit; 4) identifies fiscal year of January 1 to December 31 annually for all records and reports.

Mr. Swanson advised that EGF has not seen this draft, they reviewed first draft and agreed to suggested changes; he will send copy to EGF.

He stated next step is that a public hearing be held concerning the adoption of a River Forks Commission and following that public hearing, have first and then second reading of the ordinance. He advised that they could combine hearing and first reading.

Mr. Carpenter stated that membership will be addressed in the joint powers agreement; that Mr. Beauchamp was present and aware of changes. Mr. Swanson stated that ultimate appointment by the mayor, this would be an autonomous body.

Moved by Glassheim and Beach to call for public hearing to be held on November 7 and to introduce ordinance for first reading following the public hearing. Motion carried.

4. Matter of processing flood relief applications.
Mr. O'Leary reported that in going through process of reviewing applications received under Flood Assistance Program that 12 applications received from City employees and one council member; asked for guidance from State and they have indicated that of need to follow local policy and make names public and if individuals need to be identified in public forum that can be done perhaps even in minute.

Mr. Swanson advised that committee identify those applicants that may have potential conflict of interest, determine that there is not an actual conflict of interest for those individuals to be considered and provided that Mr. Beach abstains from any discussion and voting on the issue and that the applications be considered pursuant to the requirements of the program. He stated that for your information these are all City employees, with the exception of Mr. Beach, who is a city council member: Peter Aamold, Barry Arntz, Cheryl Arntz, Darrell Berg, Richard Boy, Thomas Geatz, Vince Liddy, Bev Benda-Moe, Raymond Slominski, Donna Stumphf, Rickey Stumphf and Ted White. He stated that to the best of his knowledge none of those are employees of the Urban Development Office; and that any conflict Mr. Beach might have could be resolved by abstaining from voting. He advised that Mr. Beach not act even on other 12 applications but council act Monday night on that finding. His advise is that committee

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take no action other than hearing comments and take up on council floor as listed agenda item and take up before council meeting. He will put together memo sheet.
Held until 7:15 p.m. Monday, October 17.

5. Matter of bids for group home at 415 North 3rd Street.

Joel Manske announced that he had received call from Senator Dorgan, and that Housing Authority has been awarded $1.9 Million rehab grant for Grand Forks Homes, 800 block of 4th Avenue South, 66-unit family housing complex ($20,000 rehab per unit.

Mr. O'Leary reported that this house at 415 North 3rd Street is owned by the Grand Forks Housing Authority and leased to Northeast Human Services Center as a group home for the chronically mentally ill homeless individuals, currently there are 7-9 residents; Northeast Human Services provides staffing and minimal operation and maintenance funds. He reported that Housing Authority leased for cost of debt service and never had any money to put into the house. He reviewed work that needs to be done: kitchen, bathrooms, electrical, plumbing, facia and soffits on outside need painting, etc.; and stated that City allocated $10,000 from CDBG funds, $10,000 in Housing Authority funds, and they have $30,000 in HOME monies; they hired architect for $5,000 and bids came in higher than anticipated. He reported that the applicant has requested an amendment to their grant, to increase CDBG allocation from $10,000 to $25,000.

Joel Manske, Housing Authority, stated many of the residents lived in Mission and didn't receive services, group home gets them off the street and reduces population of mentally ill at Mission. He reported that NE Human Services pays $500/mo plus utilities, and NE charges residents daily service for board and counseling service. Terry Hanson also reported that there is no more debt on the house, paid off two years ago this December, and Housing Authority received that revenue, and used to maintain structure. It was also noted that the garage needs to be demolished and parking for staff put in across back.

Moved by Glassheim and Beach that we allocate $15,000 from Housing Authority Rehab account for the improvement of 415 North 3rd Street. Motion carried.

6. Matter of scheduling hearings for CDBG and Community Needs
applications.
Mr. O'Leary reported that after last meeting Mr. Glassheim had suggested amending committee's previous action re. consolidation of the Human Needs and Public Service application process and reviewed proposed schedule which would accomplish this consolidation: Week of Oct. 14-18, application forms be sent out and public notice published; November 11, applications due at

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Urban Development; week of Nov. 14-18, applications processed and copies; week of Nov. 21-25, Urban Development Comm. reviews applications; Nov. 29, public hearing on Public Service and Human Needs applications; Dec. 13, public hearing on Community Needs aps.; and Dec. 19, city council final action on Human Needs, Community Needs, and Public Service applications. He reported that this process doesn't involve Citizens Advisory Comm. for this one year; however, they would meet in March to deal with Bricks and Mortar Projects. He also reported they don't know how much they will be getting in CDBG funds. Moved by Glassheim and Beach to adopt the revised funding schedule. Motion carried. (comm. only)

7. Matter of Pro Mark funding.
Mr. O'Leary reported that there will be a requesting coming in from Pro Mark to amend the way Growth Fund and council approved their funding; ie., Pro Mark reimbursed as jobs created. He reported that they are going to be requesting that part of money be released in January, and reps. will be coming to Grand Forks on Monday to present to committee and council at same time.

There was some discussion re. funding, $440,000 for 5 years, with $2,000 per job credit; with creation of 40 jobs first year. Mr. O'Leary stated they are hiring people as fast as they can and training, that they will be at 40 people by January 1. Mr. O'Leary also stated he does not want to defend Pro Mark request until he actually sees request.

Mr. Beach stated that minutes reflect that they are: 1) concerned about the possibility of advancing money beyond number of jobs created; 2) concerned about whether January 1 be the trigger date for coming years, and 3) concerned about guarantee if advance money prior to original schedule and then they don't perform.

Mr. O'Leary stated he would like to see them forward request and have before weekend. Mr. Beach questioned why this has to be done this Monday, why not wait until November. Information only.

8. Bids for rehabbing property at 415 N. 3rd Street.
Mr. O'Leary presented tabulation of bids received for rehabbing of this property and reviewed with the committee. Moved by Glassheim and Beach to accept the low bids as follows: general contract, Glenn Hansen, dba G.H.C. in the amount of $43,371.00; mechanical contract, Braseth Plumbing, $9,495.00; and electrical contract, Wm. Sullivan Electric, $4,051.65. Motion carried.

Meeting adjourned.

Alice Fontaine, City Clerk
Dated: 10/12/94.