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PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF GRAND FORKS, NORTH DAKOTA
November 3, 2008

The city council of the city of Grand Forks, North Dakota met in the council chambers in City Hall on Monday, November 3, 2008 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.

Troop 14, Sacred Heart, led the council in the pledge of allegiance to the flag, under leadership of Mary Kowalski.

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:
This week fire department crews will be walking door to door in one of our neighborhoods to encourage residents to practice fire safety, the area is the area north of DeMers Avenue and east of North Washington Street, that we are concerned about the number of fires lately and whether residents are taking the appropriate precautionary actions such as working smoke detectors and practice fire escape plans.
That if you are not one of the thousands that have voted at the Alerus Center early or through absentee ballots, please exercise your right tomorrow at your regular polling place - every vote is important and many have given much for this right so please exercise it.

YOUTH COMMITTEE REPORT

No report was made.

HOLD PUBLIC HEARING AND APPROVE APPLICATION
BY CONCRETE, INC. FOR FIVE-YEAR PROPERTY TAX
EXEMPTION

The staff report from the city assessor relating to public hearing on a property tax exemption pursuant to NDCC Chapter 40-57.1 (Expanding Business) by Concrete, Inc., 5000 DeMers Avenue, with recommendation to hold public hearing and may grant a 5-year step-down exemption of the proposed new building, 100% - first year; 80% - second year; 60% - third year; 40% - fourth year; and 20% - fifth year.

The deputy city auditor reported that pursuant to the provisions of Section 40-57.1 of the North Dakota Century Code, notice had been given to the public that the city council would meet this evening to consider the application of Concrete, Inc., 5000 DeMers Avenue, for a five-year declining property tax exemption of the property taxes to the proposed 15,000 sq.ft. building for architectural finishing or precast products at this location on Lot A, Block 1, Concrete, Inc. First Resubdivision to the city of Grand Forks, North Dakota, which the applicant will use in the operation of his business and further that no protests or grievances had been filed with her office.

Mayor Brown opened the public hearing and asked if there was anyone present who had comments to make on this matter; there were no comments and the public hearing was closed.

It was moved by Council Member Kreun and seconded by Council Member Gershman that the City of Grand Forks grant the request for an abatement of the real property taxes to be levied and assessed against the Concrete, Inc. project for a period of five years on a declining exemption on the proposed addition; 100% for the first year, 80% for the second year, 60% for the third year, 40% for the fourth year and 20% for the fifth year.

Upon roll call the following voted "aye": Council Members Glassheim, Gershman, Christensen, Bakken, Kreun - 5; voting "nay": Council Member Bjerke - 1. Mayor Brown declared the motion carried.

PUBLIC HEARING ON FINAL 2009 FUNDING ALLOCATION
AND 2009 CDBG ANNUAL ACTION PLAN

The deputy city auditor reported that the 30-day public comment period had ended and that a public hearing had been set for this evening to approve final 2009 funding applications and the 2009 CDBG Annual Action Plan.

Mayor Brown opened the public hearing on this matter, there were no comments and the public hearing was closed.

Council Member Glassheim moved to approve the list before us which includes $175,000 for Public Service programs; $337,000 for Bricks & Mortar and moving the unprogrammed $105,000 into the Primrose Apartments Ltd. rehab of 48 units of affordable rental housing. Council Member Kreun seconded the motion.

Council Member McNamara reported present.

Council Member Bjerke stated that in the future he will meet with Mr. Hoover of Urban Development to review some of the specifics, and keep up with our planning and budgeting and that next year look at some potential ways to spend this money in different areas, that the availability to spend it on water, sewer, streets, open spaces, ADA, crime prevention, etc. and spend in ways to benefit more people.

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

APRPOVE ABATEMENT OF 2007 TAXES ON PROPERTY
AT 210 CIRCLE HILLS DRIVE

The staff report from the city assessor relating to application for abatement for 2007 taxes by Gary Masilko, 210 Circle Hills Drive, with recommendation to Board of County Commissioners that the application be approved as submitted.

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

APPROVE ABATEMENT OF 2007 TAXES ON PROPERTY
AT 1204 OAK STREET

The staff report from the city assessor relating to the application for abatement for 2007 taxes by Alfred Johnson, 1204 Oak Street, with recommendation to Board of County Commissioners that application be approved as submitted.

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

APPROVE APPLICATIONS FOR EXEMPTION OF
IMPROVEMENTS TO VARIOUS PROPERTIES

The staff report from the city assessor relating to the application for exemption of remodeling improvements to residential or commercial buildings as listed: 4802 4th Avenue North; 2915 South Washington Street (includes addition); and 611 South 15th Street, with recommendation to grant exemptions of increased value for three (3) years.

It was moved by Council Member Bakken and seconded by Council Member Kreun 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 PLEDGED COLLATERAL REPORT

The staff report from the finance department relating to approval of Pledged Collateral Report, with recommendation to approve the Pledged Security Report.

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

APPROVE FEDERAL TRANSPORTATION FUNDING
REQUESTS

The staff report from the city engineer relating to Federal Transportation Funding requests, with recommendation to approve: 2010 Safe Routes to School applications; 2010 and 2011 Transportation Enhancement applications; 2010 to 2014 Railroad Safety applications; and proper City officials to sign Urban Agreement with the NDDOT for 5th Street railroad crossing.

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

APPROVE FINAL REPORT FOR PROJECT NO. 5993,
GRAND FORKS PERIMETER DRAINAGE STUDY

The staff report from the city engineer relating to report for Project No. 5993, Grand Forks Perimeter Drainage Study, with recommendation to approve Final Report for Project No. 5993, Grand Forks Perimeter Drainage Study, prepared by CPS and dated November 2008.

Council Member Christensen stated that we need to start thinking about how we are going to implement the project, whether do a lake or series of holding ponds and if develop a policy if there is going to be development and land dedicated for it or payment in lieu of dedication of land. Mr. Grasser stated that the DOT is ready to implement the next set of regulations, probably March or April, and that this was supposed to be in place last year and need to get this together and that either service/safety committee or council working session within the next month or two have those discussions on those items.

Council Member Kreun stated he would like to have the engineering department bring that information to the service/safety committee, then bring that to work session or committee of the whole, or to the finance committee to see what economic impacts we will have and how we are going to fund it. It was suggested that the matter go to the service/safety committee, then to finance and then either a committee of the whole or work session so public could see that.

It was moved by Council member Christensen and seconded by Council Member Kreun that the recommendation be approved. Carried 7 votes affirmative.

APPROVE CHANGE ORDER NO. 2 FOR PROJECT NO.
6211, 2008 CITY SIDEWALKS

The staff report from the engineering department relating to Change Order No. 2 for Project No. 6211, 2008 City Sidewalks, with recommendation to approve the change order in the amount of $51,550.00.

It was moved by Council Member Bakken and seconded by Council Member Kreun 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.

INTRODUCE XCEL FRANCHISE ORDINANCES FOR
ELECTRIC AND GAS

The staff report from the city administrator relating to Xcel Franchise Agreement, with recommendation subject to the approval of the city attorney adopt the Xcel Gas and Electric Franchise Ordinances.

Council Member Glassheim stated that in the midst of negotiating a 20-year franchise agreement with Xcel, that 20 years is a long time and things are changing rapidly in the electricity industry, the environmental and the conservation areas and that to this point the council has not had much of a discussion of the kinds of items we might want to see in a franchise agreement. He stated he had copies of franchise agreements or proposed agreements in Boulder and Denver, CO, and what they include in their agreements are broader than just the use of right of way, etc. and would like to see the council spend more time discussing the kinds of things we would like to see as negotiating items in the franchise agreement - including requiring certain amounts of contributions to low income weatherization programs or requiring that new smart metering be used in their city, requiring that a certain amount of sales be set aside for burying existing lines, etc. and certain conservation activities be done by the franchise holder. In proposing some of these things, the people that he talked to who are involved in alternate energy and conservation think that Xcel is one of the leading companies in wind energy and in conservation, and this is not any attempt to play gotcha with the company, as they do a good job, but 20 years is a long time and won't have another opportunity to look at these things for 20 years as it is now structured. He stated our current agreement runs out the end of this year and has to be something in place and that he would like this go back to finance committee and have further discussion and whether they can do a one year extension of the existing in order to give them more time because this is more complicated than a two hour meeting.

Council Member Gershman noted that a couple ideas would be to ask of Xcel Energy to supply us with things that they have done in other communities towards the green iniative, etc. that they have had to negotiate. One thing that he would like them to look at, as one of our larger employers, LM Glasfiber, makes wind turbine blades and if Xcel Energy considered making Grand Forks as wind-powered as they could, to set our city apart and utilizing an industry for wind energy and be one of the communities in America that would mostly be powered by wind, that we understand the storage issues, etc. and would like to see if there is some discussion.

Council Member Bakken stated he always thought that having some wind energy here with LM Glasfiber would be good idea for the city and power some of the city buildings off of wind energy, and that he doesn't have a problem with the 20-year contract but would like to see if we can't revisit it every 5 years because we have change in council.

Rick Duquette, city administrator, pointed out that Mark Nisbet, principal manager for the State of North Dakota for Xcel was present and if some questions related to their record, he is available this evening. Research that he has done related to this is that he and Howard Swanson prepared for the discussions with Xcel, echo what Mr. Glassheim commented on and there was an announcement last week related to wind energy in North Dakota and seems like much of that is already in process. He stated he would like the recommendation to send this back to finance for review.

Mark Nisbet, Xcel Energy, stated they are very proud of their environmental record and commitment to wind and in the 150 megawatt wind farm that they just announced last Friday; Mr. Glassheim mentioned some of the things that are done - typically in MN have stuck to a more traditional franchise and in addressing these issues in a policy fashion, talking about where they can go and which areas the energy audits that they are doing at a greatly reduced rate for any gas customer and they work with Kent Keyes and his group as far as low income for free energy audits and have worked on a state-wide level and actually put in place in front of the Public Service Commission an energy efficiency program that they are working on; many of the things mentioned are on-going and they tend to listen to what the consumers are saying, and are the leading provider of wind to customers in the United States and they would sit down and look to discuss any of these ideas but that they would like to get the actual franchise wrapped up.

Council Member Bjerke stated he is concerned when communities start doing this because then the company is forced to placate different communities across the state or the region: 1) costs go up and we are going to pay the cost - 2% will bring more than enough money because our electricity and natural gas costs will go up; 2) would be interesting in finding out the cost of wind energy vs. nuclear, coal, etc. and put all the facts on the table, and find out the subsidies for wind energy at the federal, state and local levels also; that; that Xcel not going to pay for it, the people who get the products pay for it and whatever we do we pass it on to the taxpayers.

Council Member McNamara stated that relative to the timeframe of the agreement, what would compel the City to sign a 20-year commitment and what do we get back for that 20-year commitment as opposed to a series of 5-year agreements with options that would be reviewable and why lock ourselves into financing for 20 years. Mr. Duquette stated there is a give and take on both sides of the agreement, on one hand have capital planning and investment that are made by the energy companies and we have a unique situation in Grand Forks where Xcel has a certain area for its electric and its gas is growing outside of that area, Nodak's area for the electric is growing on a regular basis because they have area outside Xcel, Territorial Integrity Act, and their part of that is the capital planning piece, our part is the stable revenue profile over 20 years where we can make plans 5, 6, 7 years out as it relates to that. In his opinion it is important for municipality to be involved in that give and take with an energy company or any other franchise, for long term planning purposes for them.

Mr. Duquette stated our specific benefit is revenue and growing revenue because as municipalities continue to grow these companies continue to make capital investment into that growth and we gain more revenue from the franchise fee as they grow. We gain a 2% fee annually from their gross revenue and those revenues grow each year and our fee gets bigger. Mr. McNamara stated that wouldn't change if we had a series of 5-year reviewable agreements or 5-year agreements with an option. Mr. Duquette stated that is the other side of the equation he is describing, is a company willing to make the capital investments and take the risk for that not knowing in 6 years they may be out.

Mr. Duquette stated he would like the council to introduce these ordinances, that in the last section of the franchise agreement he and Mr. Swanson along with the Xcel attorneys have crafted an amendment to this franchise agreement and any time in that 20 years, we can amend this franchise agreement and ideas related to technology, changing times, new advents coming our way, we have the ability as a municipality to amend this franchise agreement.

It was moved by Council Member Christensen and seconded by Council Member Glassheim to approve the recommendation and to refer to the finance committee. Carried 7 votes affirmative.

Council Member Christensen introduced an ordinance entitled "An ordinance granting to Northern States Power Company, a Minnesota corporation, d/b/a Xcel Energy its successors and assigns, permission to construct, operate, repair and maintain in the city of Grand Forks, North Dakota, an electric distribution system and transmission lines, including necessary poles, lines, fixtures and appurtenances, for the furnishing of electric energy to the city, its inhabitants, and others, and to use the public ways and public grounds of the city for such purposes", which was presented, read and passed on its first reading.

Council Member Christensen introduced an ordinance entitled "An ordinance granting to Northern States Power Company, a Minnesota corporation, d/b/a Xcel Energy its successors and assigns, permission to erect a gas distribution system for the purposes of constructing, operating, repairing and maintaining in the city of Grand Forks, North Dakota, the necessary gas pipes, mains and appurtenances for the transmission or distribution of gas to the city and its inhabitants and others and transmitting gas into and through the city and to use the public ways and public grounds of the city for such purposes", which was presented, read and passed on its first reading.

APPROVE APPOINTMENTS TO VARIOUS BOARDS
AND COMMITTEES

The staff report from Mayor Brown relating to the Grand Forks Public Library Board appointment, with recommendation to reappoint Richard Fiordo and the appointment of Lila Christensen to the Public Library Board for a term of three years.

The staff report from Mayor Brown relating to appointment to the Civil Service Commission, with recommendation to reappoint Bev Bredemeier to the Commission for a three year term.

The staff report from Mayor Brown relating to Downtown Design Review Board appointment, with recommendation to approve appointment of Paul Helje and the reappointment of Doug Herzog 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 Joe Simon as the public representative jointly appointed by the Grand Forks County Commission and the Grand Forks City Council for a two-year term.

The staff report from Mayor Brown relating to appointment to MPO Executive Policy Board, with recommendation to confirm the reappointment of Doug Christensen as one of the Grand Forks City Council representatives on the Board for a two-year term.

The staff report from Mayor Brown relating to the appointment to Grand Forks City Planning & Zoning Commission, with recommendation to confirm reappointment of Dana Sande, at large representative and appointment of Jim Galloway, at large representative, for five-year terms.

Council Member Bjerke moved approval of the appointments with exception of Downtown Design Review Board. Council Member Gershman seconded the motion. Carried 7 votes affirmative.

Council Member Gershman moved approval of the appointments of the Downtown Design Review Board. Council Member Glassheim seconded the motion.

Council Member Kreun stated that this comes up frequently and should have one of the members from the Board to explain why this is in place, and what they actually do. He suggested that Jim Galloway come and give a history of the Review Board.

Upon call for the question and upon voice vote, the motion carried 6 votes affirmative; 1 vote against the motion by Council Member Bjerke. Mayor Brown declared the motion carried.

COMBINE GREENWAY/BIKEWAY PEDESTRIAN PATH
GROUP WITH GREENWAY USERS GROUP

The staff report from the Mayor's Office relating to Greenway/Bikeway-Pedestrian Path Users Group, with recommendation to concur with merging the bikeway and pedestrian path users function into the existing Greenway Users Group.

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

APPROVE REDEVELOPMENT OF 1500 BLOCK OF
CHESTNUT STREET (WEST SIDE)
The staff report from the director of urban development relating to redevelopment of 1500 block of Chestnut Street (west side), with recommendation to approve proposals and convey lots per review committee's recommendation - to Corey and Peggy Vreeland with a lot bid of $40,100.

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

APPROVE PARKING AT THE CURRENT

The staff report from the director of urban development relating to public parking at The Current, with recommendation to approve release MDI Limited Partnership #110 (MDI) from Obligation 1(F) of Project Agreement dated July 26, 2006 for a period of two years after which a review be conducted to determine whether release should be permanent.

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

APPROVE BILL LISTING

Vendor Payment Listing No. 08-21, dated October 30, 2008, totaling $1,374,102.66 and Estimate Summary dated October 31, 2008 in the amount of $1,157,451.61were presented and read.

It was moved by Council Member Gershman 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 OCTOBER 20, 2008

Typewritten copies of the minutes of the city council held on Monday, October 20, 2008 were presented and read. It was moved by Council Member Bjerke and seconded by Council Member Glassheim that these minutes be approved as read. Carried 7 votes affirmative..

COMMENTS BY MAYOR AND COUNCIL

1) Council Member McNamara stated that as he represents one of the older sections of town, that the Grand Forks fire department is going to go door to door to begin an effort to raise awareness of fire safety and encourage everybody to take that very seriously and test your smoke alarms and when fire department comes by to let them in your house and let them take a look, as we have had too many fires this short fall/winter season.

ADJOURN

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

Respectfully submitted,



Saroj Jerath
Deputy City Auditor

Approved:
________________________________
Michael R. Brown, Mayor