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PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF GRAND FORKS, NORTH DAKOTA
November 16, 2009

The city council of the city of Grand Forks, North Dakota met in the council chambers in City Hall on Monday, November 16, 2009 at the hour of 5:30 o’clock p.m. with Mayor Brown presiding. Present at roll call were Council Members Bjerke, Glassheim, Gershman, Christensen, Bakken, Kreun - 6; 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.

Mayor Brown commented on various items during the past week and upcoming events:
Congratulations to Alerus Center and staff for hosting the TransSiberian Orchestra concert yesterday, several thousand people attended the event which marks the third time the Orchestra has come to Grand Forks.
On November 19 Grand Forks will become one of the newest cities to join with the fight against homelessness across the nation, that if you are homeless or if feel you may be in danger of becoming homeless, Project Homeless Connect can provide services needed to prevent it from happening. This is a one-day one shop/stop for those in need; that over 30 agencies from throughout the region will have staff on site providing services and a meal will be served and various items including warm clothing will be given away. A grand opening will be held at 9:30 a.m. at Hope Evangelical Church in the Grand Cities Mall located at 1601 17th Avenue South and doors will be open to clients from 10:00 a.m. to 4:00 for that event.
Don't forget St. Vincent de Paul Empty Bowl Project that is going on now at St. Michael's Gym and
for $15 you get a hot meal and a bowl painted by a community member.

Council Member McNamara reported present.

EMPLOYEE RECOGNITION

Mayor Brown reported there were seven city employees who have reached employment milestones and recognized the following employees and thanked them for their dedication:
Stacey Powell, wastewater treatment department for 5 years
Joe O'Neill has worked as construction compliance officer with Urban Development since 1999.
Colleen Peterson has worked for the past 15 years with City's Area Transit
Tim Bach , equipment operator in Public Works for 25 years
Terry Klein with sanitation department for 30 years
Shirley Litchy with water maintenance for 30 years
RaeAnn Burger who works in Human Resources as compensation and benefits administrator has been
with the City for 40 years.

SUSPEND AGENDA TO INCLUDE ADDITIONAL ITEM

Howard Swanson, city attorney, reported there is a conflict between the printed Code and an ordinance that was adopted in September, 2005 that relates to on-sale alcoholic beverages on Thanksgiving Day, and asked that the council consider that as an added item the clarification of that ordinance tonight, was adopted in 2005 but did not appear in our printed Code.
Council Member Gershman asked to be recused from voting on this matter, and it was so moved by Council Member Kreun and seconded by Council Member Bakken. Carried 6 votes affirmative.

It was moved by Council Member Kreun and seconded by Council Member Christensen to amend the agenda to include this item. Carried 6 votes affirmative.

ADOPT RESOLUTION SELLING, ESTABLISHING TERMS AND
DIRECTING ISSUANCE OF DEFINITIVE IMPROVEMENT
WARRANTS ON THE FUNDS OF PAVING DISTRICT NOS.
637 AND 638, SANITARY SEWER DISTRICT NO. 465, AND
STORM SEWER DISTRICT NO. 464, AND PROVIDING FOR AND
APPROPRIATING SPECIAL ASSESSMENTS FOR THE SUPPORT
AND MAINTENANCE OF SAID FUNDS.

Brenda Krueger, Springsted Incorporation, reported the result of the sale this morning of the bids on the City's $2,220,000 Refunding Improvement Bonds that are financing various paving, storm water and sewer improvement that took place in 2009. Three bids were received, winning bid was submitted by Cronin & Company, Inc., Minneapolis, MN with a bid of 3.71% on 20-year bonds; that bids were slightly higher than anticipated but that interest rates have been going up over the last four weeks, but bid is still an excellent rate. She reported they did obtain a slight premium from the winning bid and were able to reduce the par amount down $20,000 so the round figure for the bonds is $2,200,000. Moody's again affirmed your Double A3 credit rating and they also looked at the sales tax revenue bond that supports the Alerus Center and reaffirmed the A1 credit rating on that facility; and look at the historic solid economic stability of the area, the low unemployment rate, both in Grand Forks and the State of North Dakota, and are pleased with the overall performance of the city.

Council Member Gershman introduced the following resolution and moved its adoption: Document No. 9243 - Resolution.

The motion for the adoption of the foregoing resolution was duly seconded by Council Member Bakken and upon vote being taken thereon the following voted in favor: Council Members Bjerke, McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 7; and the following voted against the same: none; whereupon the resolution was declared passed and adopted and was signed by the Mayor and attested by the City Auditor.

ADOPT RESOLUTION DIRECTING THE ISSUANCE OF
$2,220,000 REFUNDING IMPROVEMENT BONDS, SERIES
2009E AND PRESCRIBING THE TERMS AND COVENANTS
THEREOF

Council Member Gershman then introduced the following resolution and moved its adoption: Document No. 9243 - Resolution.

The motion for the adoption of the foregoing resolution was duly seconded by Council Member Bakken and upon vote being taken thereon the following voted in favor: Council Members Bjerke, McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 7; and the following voted against the same: none; whereupon the resolution was declared passed and adopted and was signed by the Mayor and attested by the City Auditor.

APPROVE FINDINGS FOR PERMANENT FLOOD PRO-
TECTION PROJECT, PROJECT NO. 4704.5, DISTRICT NO.
14.5 AND PAVING PROJECT NO. 6152, DISTRICT NO. 632

The staff report from the finance department relating to Findings for Permanent Flood Protection Project, Project No. 4704.5, District No. 14.5 and Paving Project No. 6152, District No. 632, with recommendation to approve Findings for the catch-up assessment for newly annexed property, lot-line changes, and leasehold property, as was approved by the Special Assessment Commission to asses the first and second assessments citywide for flood control to the new properties;; and approve Findings for the paving project on 16th Avenue North and 16th Avenue North Circle.

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 7 votes affirmative.

APPROVE EXEMPTION OF REMODELING IMPROVEMENTS
TO RESIDENTIAL/COMMEERICAL BUILDINGS AT VARIOUS
LOCATIONS

The staff report from the city assessor relating to applications for exemption of remodeling improvements to residential and commercial buildings, with recommendation to grant exemption of increased value for 3 years at the following locations: 1810 9th Avenue North; 2115 South 10th Street; 418 Walnut Street; 1517 North 5th Street; 710 South 167th Street; 803 South 18th Street; 806 South 18th Street; and 2506 South Washington Street.

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

APPROVE APPLICATION FOR ABATEMENT OF 2008
TAXES FOR PROPERTY AT 2218 7TH AVENUE NORTH

The staff report from the city assessor relating to application for abatement for 2008 taxes by Lawrence and Ethel Boehmer, 2218 7th Avenue North, with recommendation to the Board of County Commissioners that the application be approved as submitted.

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

APPROVE APPLICATION FOR ABATEMENT OF 2007
TAXES FOR PROPERTY AT 822 13TH AVENUE SOUTH

The staff report from the city assessor relating to application for abatement for 2007 taxes by Michael Brotherton, 822 13th Avenue South, with recommendation to the Board of County Commissioners that the application be approved as submitted.

It was moved by Council Member Bjerke and seconded by Council Member Glassheim that this recommendation be approved. Carried 7 votes affirmative.
APPROVE APPLICATION FOR ABATEMENT OF 2007 AND
2008 TAXES FOR PROPERTY AT 815 DUKE DRIVE, #207

The staff report from the city assessor relating to applications for abatement for 2007 and 2008 taxes by Donald and Sylvia Brodahl, 815 Duke Drive, #207, with recommendation to the Board of County Commissioners that applications be approved as submitted.

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

APPROVE REQUEST FOR TAX INCREMENT FINANCING
FOR PROPOSED OFFICE BUILDING AT 4050 GARDEN
VIEW DRIVE.

The staff report from the city assessor relating to request by AE2S for tax increment financing property tax exemption for proposed office building at 4050 Garden View Drive, with recommendation to consider possible property tax exemption, and possibly establish hearing date.

Steve Burian, CEO, Advanced Engineering & Environmental Services, Inc. (AE2S), made a brief presentation in support of AE2S and ICON Architectural Group (ICON)'s request for tax increment financing associated with their proposed new corporate office building construction at 4050 Garden View Drive.

He stated that they approached the City about options they may have and worked closely with staff, and looking at different options were directed towards the TIF approach which allows them to do the tax abatement - and in looking at the eligible costs they have for the abatement, would be similar to a 5-year abatement for their property taxes, and would like to appeal to move forward with that process this evening if possible.

In answer to the attorney's question of who owns the structure or developer in purposes of application. Mr. Burian stated they are considering doing a condominium approach for the building with two different entities, one is BVI. LLC (Advanced Engineering is owned by a holding company called Advanced Elements, Inc and Advanced Elements has another subsidiary called BVI, LLC which owns all the real estate, and BVI would own the two top floors of the condominium and ICON Architectural Group; would own part of the bottom floor and would share part of the bottom floor and would be a dual approach between BVI and ICON in terms of the names on the request. Developer would be AE2S and ICON.

Council Member Gershman stated the request caused him to think about a broad based policy for new construction that applies to the entire city for similar projects, to use that as a three-year window for stimulating construction in our community, and if were to get together under the finance committee or work session with Mr. Carsen and were able to come up a policy similar to what we did for renovations and expansions of existing businesses.

Mr. Swanson stated in order to do a tax increment financing there are certain factual findings the city council has to make or act upon an application, have to make certain findings that the proposed project, on a project by project review, is either located in an urban renewal district, which has been previously designated or subsequently designated by council, or in an area of undeveloped or under developed properties - but doesn't think it would meet the threshold requirements of a tax increment financing by saying our policy is that any development within the limits of the city within the next 3 years would be TIF, won't make the requirements that way - but each and every application has to be reviewed on its own, there are publication requirements, the City would not be in a position to adopt a blanket type policy giving advanced approval. He stated if you wish to act on this request, only thing could do tonight would be to establish what notice requirements have to be given, establish a hearing date and determine whether or not you would forward it to Planning and Zoning Commission or to Planning and Zoning director for determination of compliance; and final decision if you move forward is whether you would or would not grant the TIF in form of a tax exemption would not be able to be acted upon until after you hold a public hearing.

Council Member Kreun stated he would like to know what the timing would be, what the requirements would be and that the decision would not be made tonight but would still like to go forward with this process and will give us the information we need to make that determination. Council Member Christensen seconded the motion.

Mr. Swanson reviewed information that needs to be included in the notice of public hearing - needs to include the date of the public hearing, Statute requires a minimum of 15 days notice before holding the public hearing, and have to have direct mail notice to known competitors of the enterprise and that the potential competitors would include all engineering firms, all architectural firms within the city of Grand Forks.

Mr. Burian stated they would have liked to broken ground this fall and were prepared to do so, but at the same time realized that this needs to run its process and are at the point now where realistically would likely be spring. Mr. Carsen stated that the application might have to be approved before they could break ground. Mr. Swanson agreed with that comment.

Mr. Swanson stated the obligation to publish and obligation to give direct notice is on the applicant, not on the City, that the details of the motion would be to set a public hearing, direct the applicant to mail notice of the application and public hearing to all engineering, architectural firms located in Grand Forks and further publish in the Grand Forks Herald on one occasion at least 15 days prior to the date of the hearing a public notice - December 21. Council Member Christensen stated that was his second to Mr. Kreun's motion.

Bakken asked if have to go through the same procedure with a 5-year step-down. Mr. Swanson stated the application for a TIF can be an entire exemption or partial exemption, and that decision wouldn't be made until after your public hearing and no requirement in the notice that you give an indication as to what exemption might be.

Council Member McNamara stated he has concerns, that he likes Mr. Gershman's idea that the more information that is being given shouldn't give anyone a competitive advantage, this is difficult issue and hopes we take our time because 42nd Street is not a renaissance zone, not a blighted area, but is one of the prime areas of the city to develop, and hope we follow Mr. Gershman's advise to make sure that what we come up with is consistent and fair to everybody that will come before us.

Council Member Glassheim stated he would like to have some limiting conditions on setting a precedent and limiting conditions so that when future applicants come, we have a general idea of what we are willing to do and for what reason, and if they can have limiting conditions and that would be precedent. Mr. Swanson stated he interpreted Mr. Gershman's comments to indicate that you wanted to adopt a policy that would create a blanket approval of all TIF applications or projects without going through the individual analysis and public notice, etc. and that would not be what you can do - you have to address them on a case by case basis and if you want to adopt general guidelines as to whether a certain physical areas of a community that you want to encourage with these type of developments or applications or if you want to identify parameters which will or will not be entertaining those - could do that but each application has to be judged on its individual merit and whether or not it meets the criteria of the statute.
Tthere has to be certain findings and two of the threshold findings is that either have to be within a designated urban renewal district, which is essentially, downtown area; or have to be within an area that is designated as underdeveloped or undeveloped. In addition to those findings and that after the notice, have to make certain findings as to competitive advantage for the developer or the project developer.

Council Member Glassheim asked the chairman of the finance committee whether we can get together and lay out some clear parameters. Christensen stated they can add that to the finance/development agenda for Wednesday.

Mr. Swanson stated the motion is as follows: is to set a public hearing for December 21, 2009, direct the applicant to provide mailed notice to the engineering and architectural firms located in the city of Grand Forks and to require publication of notice of public hearing. Upon call for the question and upon voice vote the motion carried 7 votes affirmative.

Mr. Swanson stated the last item is the determination of whether the Planning and Zoning Commission will review the compliance with the long range plan or from the Planning Director, that is a discretionary decision for the council to make, that would need to occur in advance of the public hearing. It was moved by Council Member Kreun that Mr. Gengler, planning director, would be in charge of that, seconded by Council Member Christensen. Upon call for the question of this matter going to the planning director, and upon voice vote, the motion carried 7 votes affirmative.

INTRODUCE ORDINANCE AMENDING SALE OF
STOLEN, LOST, ABANDON OR UNCLAIMED PROPERTY

The staff report from the city attorney relating to ordinance amending sale of stolen, lost, abandon or unclaimed property, with recommendation to introduce ordinance and give preliminary and final approval.

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

Council Member Glassheim introduced an ordinance entitled "An ordinance amending Section 10-0204 of the Grand Forks City Code relating to sale of stolen, lost, abandon or unclaimed property", which was presented, read and passed on its first reading.

APPROVE APPLICATION FOR TAXICAB LICENSE

The staff report from the finance department relating to application for taxicab license by Ali Dualeh Hassan, Cab Co. Yellow, 2015 South Washington Street, with recommendation for approval of the application for license, subject to meeting Code requirements.

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

APPROVE FEDERAL TRANSPORTATION FUNDING
REQUESTS

The staff report from the engineering department relating to Federal Transportation funding requests, with recommendation to approve: 2011 Safe Routes to School Applications and appropriate signatures; and 2011 Transportation Enhancement applications.

Council Member Bjerke asked that the motion be split.

It was moved by Council Member Bjerke and seconded by Council Member Gershman to approve the 2011 Safe Routes to School Applications. Carried 7 votes affirmative.

It was moved by Council Member Gershman and seconded by Council Member Kreun to approve the 2011 Transportation Enhancement applications. Upon call for the question and upon voice vote, the motion carried 6 votes affirmative; Council Member Bjerke voting against the motion.

AWARD BID FOR HAZARDOUS MATERIALS
VEHICLE FOR REGIONAL RESPONSE

The staff report from the fire department relating to awarding of bid for hazardous materials vehicle for regional response, with recommendation to award bid to Heiman, Inc. for $421,833.00 base bid (with discounts) to purchase hazardous material vehicle to support statewide regional response. Monies are from Department of Homeland Security (DHS) FY 2007/2008 State Homeland Security Grant Fund. The City of Minot plans to purchase a vehicle using this bid.

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

APPROVE FINAL PLAT OF REPLAT OF LOT 1, BLOCK
1, PERKIN 9TH RESUBDIVISION

The staff report from the Planning and Zoning Commission relating to request from Lexington Townhomes, Inc. for final (fast track) approval of the Replat of Lot 1, Block 1, Perkins 9th Resubdivision to the city of Grand Forks, ND (located at 2825 36th Avenue South), with recommendation to give final approval to the replat, subject to the conditions shown on or attached to the review copy.

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

INTRODUCE ORDINANCE RELATING TO SALE OF
ON-SALE ALCOHOLIC BEVERAGES ON THANKSGIVING
DAY

Howard Swanson, city attorney, reported that in September, 2005 the city council adopted an ordinance extending the on and off sale hours of alcoholic beverages to 2:00 a.m. and also allowed the on-sale service of alcohol on Thanksgiving Day as allowed by State law, that in January, 2007 the city council acted to remove a sunset provision on the 2:00 a.m. opening but did not bring forward the change for Thanksgiving Day; and that today he rendered an opinion to the Chief of Police that the official ordinance does allow the service of on-sale alcohol on Thanksgiving Day, and asked that the city council introduce an ordinance for first reading authorizing the service of on-sale alcohol on Thanksgiving Day as consistent with State law.

It was moved by Council Member Christensen and seconded by Council Member Kreun to introduce the ordinance for first reading.

Council Member Gershman asked to be recused from voting on this matter, and it was so moved by Council Member Bakken and McNamara. Carried 6 votes affirmative.

Upon call for the question and upon voice vote, the motion carried 5 votes affirmative, Council Member Bjerke voting against the motion and Council Member Gershman recused.

Council Member Glassheim introduced an ordinance entitled "An ordinance amending Section 21-0221 of the Grand Forks City Code relating to sale of on-sale alcoholic beverages on Thanksgiving Day", which was presented, read and passed on its first reading.

INFORMATIONAL ITEM

The Public Health Emergency Readiness (PHER) Phase III H1N1 Grant was presented to the city council.

APPROVE BILL LISTING

Vendor Payment Listing No. 09-22, dated November 12, 2009, totaling $1041,155.04 was presented and read.

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

APPROVE MINUTES

Typewritten copies of the minutes of the city council meetings held on Monday, November 2, 2009 and special meeting held on November 9, 2009, were presented and read. Council Member Bjerke noted correction in the minutes of November 9, 2009 showing that Council Member Christensen was absent from the meeting when he was not; and it was moved by Council Member Bjerke and seconded by Council Member Kreun that the minutes be corrected and approved. Carried 7 votes affirmative.

COMMENTS BY MAYOR AND COUNCIL

1) Council Member Bjerke stated that he had sent Mr. Duquette his listing of questions and comments re. Alerus Commission and suggested plan after council meeting to try to resolve some of these issues. Council Member Gershman stated that he plans to request that Mr. Christensen of finance committee put on the agenda for Wednesday, the creation of the Alerus Center task force, and that the task force would be made up of the city council and look at four outside members for different perspective; and important that every council member be part of the task force. The matter was added to the finance committee agenda.

2) Council Member Bakken stated the matter of federal budget deficits was brought up, and noted that there are 3 dozen state governments that are running deficits, that we are fortunate in the state of North Dakota due to the oil patch; that state pension funds lost $800 billion and consensus on state funds is that long term problem most pension funds won't be able to grow their way out of, and might be something we should consider going forward. He stated he didn't think next year would make it better, and we want to be very careful that we don't slide into the same category, same for our bonding and ability to bond and careful on that when we do the next budget process. Right now we are doing fairly well but do have some declining numbers.

He stated we have a lot of complaints on the Alerus Center but that the civic auditorium lost $250,000/year and didn't create any economic impact for the city; the Alerus Center brings a lot of people to town, and remember what our goal is and what it is supposed to do - the real goal is economic impact and to reduce our property taxes.

3) Council Member Kreun stated that oil keeps the state running, that sales tax is higher in the state budget than the oil tax, and 52% of the taxes come in the Red River Valley where 48% of the population is, and that together with oil and sales tax we have a very good mix in our state.

Council Member Christensen stated re. previous comments that he has been on the Pension Committee for several years, and the problem for our employees is that we were substantially underfunded before March, 2009 and we are assessing that by putting more money from our general revenue or sales tax or from enterprise funds towards the pension. That he would like a meeting or two after a city council meeting to focus on this issue, that within 7 years 25% of our employees are drawing a pension, it is a pressing problem for this council and future councils - that problem will have to be solved at the same time as having to solve funding of a new water treatment plant, have three issues that we could spend this planning portion before budget to solve and set some guidance, that we only have three sources of revenue - property tax, sales tax and/or increase user fees - these are the issues for this council to plan.

ADJOURN

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

Respectfully submitted,


Saroj Jerath , City Auditor
Approved:
________________________________
Michael R. Brown, Mayor