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PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF GRAND FORKS, NORTH DAKOTA
November 5, 2007

The city council of the city of Grand Forks, North Dakota met in the council chambers in City Hall on Monday, November 5, 2007 at the hour of 5:30 o’clock p.m. with Mayor Brown presiding. Present at roll call were Council Members Brooks, McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 7; absent: none.

Sarah Holtman's second grade class from St. Michael's School 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/events during the past week and upcoming events:
He acknowledged the passing of one of our firefighters, Alan Deraney, who served 30 years with us and will be missed.
Congratulations to the Red River tennis team for their feat of 10 state championships in a row, and all the athletes and coaches from the last 10 years can take pride in their efforts.
That he attended the play, Rumors, by Red River Theatre Group, was well done.
That he attended the very informative mayor's summit on Climate Protection on how to accelerate local leadership and how to make a difference at local level; and that they will be working with the EDC, UND, EERC and others to build good paying green collared jobs. The local committee is meeting this Thursday to begin to put together a feasible plan for our community, and that he is looking for recommendations from council members for residents who would like to help us proceed with a feasible effective effort and to get those names to his office.
Next week is National Hunger and Homelessness Awareness Week, that according to a survey this year on one night there were 124 homeless individuals, including 27 children, in Grand Forks; and that he has appointed stake holders group to develop a plan to end long term homelessness within 10 years; some things that can be done are to volunteer at local service agencies or non-profits, donate food to a food cupboard, donate household items to a thrift store, buy and paint a bowl at the Empty Bowl Event coming up next Monday, November 12, and learn more about homelessness by watching the video "Homelessness in the Heartland" that will run every day during the month of November on Channel 2 at 2:00 and 10:00 p.m.
He reminded everyone that Veterans Day is next Sunday and City Hall will observe it on Monday, and next meeting of the committee of the whole is Tuesday, November 13, and encouraged residents to take time to observe Veterans Day, either through an official observation, etc. to honor those who have served our military and our country.

YOUTH COMMISSION REPORT

Mayor Brown announced that he is pleased to announce that the first meeting of the Commission will take place this Wednesday at noon, and congratulated the youth representing our middle and high schools who will reconvene to help provide a youth voice to the community on issues that begins their roles as leaders.


ADOPT RESOLUTION SELLING, ESTABLISHING TERMS
AND DIRECTING ISSUANCE OF DEFINITIVE IMPROVEMENT
WARRANTS ON FUNDS OF PAVING DISTRICTS, SANITARY
SEWER DISTRICTS, STORM SEWER DISTRICTS, WATERMAIN
DISTRICTS AND FANNIE MAE LOAN (2005) AND PROVIDING
FOR AND APPROPRIATING SPECIAL ASSESSMENTS FOR
THE SUPPORT AND MAINTENANCE OF SAID FUNDS

The staff report from the finance and administrative services director relating to award the sale of $6,295,000 Refunding Improvement Bonds, series 2007D, with recommendation to adopt resolution awarding the sale of the Refunding Bonds, Series 2007D.

Brenda Krueger, Springsted, Inc., reported there were resolutions before council this evening for two separate bond issues, that bids were received this morning and that the 2007D Bonds which are Refunding Improvements Bonds refunding various improvement projects around the city, that they received three bids and that the winning bid was submitted by D.A. Davidson & Co., Minneapolis, MN at 4.15% and that the 4.15% true interest rate is about 15 basis points or .15% below what they had anticipated, the market conditions have been favorable and municipal interest rates have been going down since the beginning of September. She stated they were able to reduce the size of this issue by about $85,000 and that was due to several factors, that the underwriter didn't take as much of a profit as anticipated and the other factor is that they took some profit out of their difference between the coupons and the yield and were able to resize it down and that since these bonds are paid by special assessments that is $85,000 less that needs to be assessed.

She stated on the second page is the Temporary Improvement Warrants, 2007E, and that they received one bid today, anticipated receiving more but the bid from Sovereign Securities, LLC, Philadelphia, PA and submitted a true interest rate of 3.89% and that is a few basis points under what anticipated, that she doesn't like coming to you with only one bid, that she feels that this represents market conditions and would recommend that you adopt and award the warrants.

She also commented on the rates received from Moody's Investors Service reaffirmed the City's Double A3 rating and that comments were similar to what has been received in the past, they continue to be impressed with the healthy financial operations and the ample general fund reserves; and also continued to note the sound management strategies, not only at staff level but also at council level, that continue to guide the City through the development and redevelopment and impressed with local efforts. She also noted an additional item, as the City has outstanding 2005A Bonds (Sales Tax Revenue Refunding Bonds that refunded the debt that was issued to finance the Alerus Center) and those bonds were upgraded from an A2 up to A1, that Moody's went back and looked at several factors, 1) continued excellent collections of sales taxes, and that this bond is supported by a 3/4% sales tax, and have also been able to repay the interfund loan to the Water Fund that helped finance the land acquisition for this project, and in addition to that don't anticipate any other debt in the immediate future payable from that same sales tax, and those factors combined felt that this was a stronger credit from what was originally financed the Alerus Center and they upgraded those bonds which makes investors very happy; and recommended award of the bonds to D.A. Davidson and Sovereign Securities by adopting the resolutions.

Council Member Gershman then introduced the following resolution and moved its adoption: Document No. 9121 - Resolution.

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

ADOPT RESOLUTION DIRECTING ISSUANCE OF
$6,210,000 REFUNDING IMPROVEMENT BONDS,
SERIES 2007D AND PRESCRIBING TERMS AND
COVENANTS THEREOF

Council Member Gershman then introduced the following resolution and moved its adoption: Document No. 9122 - Resolution.

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

ADOPT RESOLUTION AUTHORIZING ISSUANCE OF
$4,255,000 TEMPORARY IMPROVEMENT WARRANTS,
SERIES 2007E AND PRESCRIBING TERMS AND
COVENANTS THEREOF

The staff report from the finance and administrative services director relating to award the sale of $4,265,000 Temporary Improvement Warrants, Series 2007E, with recommendation to adopt resolution awarding the sale of $4,265,000 Temporary Improvement Warrants, Series 2007E; calling for the public sale thereof on November 5, 2007.

Council Member Gershman introduced the following resolution and moved its adoption: Document No. 9123 - Resolution.

The motion for the adoption of the foregoing resolution was duly seconded by Council Member Brooks and upon vote being taken thereon the following voted in favor: Council Members Brooks, 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 BUDGET AMENDMENT

The staff report from the finance department relating to budget amendment - to adjust budget to no longer transfer funds from Loan & Stabilization to General Fund for DB pension payment as originally budgeted, with recommendation to approve the budget amendment.

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

ADOPT FINDINGS RE. PROTESTS AGAINST SPECIAL
ASSESSMENTS FOR PROJECTS NOS. 6012, SANITARY
SEWER, AND 6013, WATERMAIN

The staff report from the city attorney relating to adoption of Findings regarding protest against special assessments for Projects No. 6012, Sanitary Sewer, and No. 6013, Watermain, with recommendation to adopt Findings relating to Project No. 6012, Sanitary Sewer, and No. 6013, Watermain.

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

ADOPT RESOLUTION APPROVING PLANS AND
SPECIFICATIONS AND ADVERTISEMENT FOR BIDS,
SEWER PROJECT NO. 6241, DISTRICT NO. 459

The city engineer's estimate of total cost of the construction of sanitary sewer in McEnroe 1st Addition (Garden View Drive) in the amount of $ , was presented and read.

The staff report from the engineering department relating to plans and specifications for Project No. 6241, District No. 459, sanitary sewer for McEnroe 1st Addition (Garden View Drive), with recommendation to approve plans and specifications for this construction and further that the city auditor be directed to advertise for bids on the project.

Council Member Bakken introduced the following resolution which was presented and read: Document No. 9124 - Resolution.

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

ADOPT RESOLUTION APPROVING PLANS AND
SPECIFICATIONS AND ADVERTISEMENT FOR BIDS,
WATERMAIN PROJECT NO. 6242, DISTRICT NO. 299

The city engineer's estimate of total cost of the construction of watermain in McEnroe 1st Addition (Garden View Drive) in the amount of $ , was presented and read.

The staff report from the engineering department relating to plans and specifications for Project No. 6242, District No. 299, watermain for McEnroe 1st Addition (Garden View Drive), with recommendation to approve plans and specifications for this construction and further that the city auditor be directed to advertise for bids on the project.

Council Member Bakken introduced the following resolution which was presented and read: Document No. 9125 - Resolution.

It was moved by Council Member Bakken and seconded by Council Member Kreun that the recommendation be approved and that the resolution approving the plans and specifications be adopted. Carried 7 votes affirmative.
ADOPT RESOLUTION APPROVING PLANS AND
SPECIFICATIONS AND ADVERTISEMENT FOR BIDS,
SEWER PROJECT NO. 6243 DISTRICT NO. 460

The city engineer's estimate of total cost of the construction of storm sewer in McEnroe 1st Addition (Garden View Drive) in the amount of $ , was presented and read.

The staff report from the engineering department relating to plans and specifications for Project No. 6243, District No. 460, storm sewer for McEnroe 1st Addition (Garden View Drive), with recommendation to approve plans and specifications for this construction and further that the city auditor be directed to advertise for bids on the project.

Council Member Bakken introduced the following resolution which was presented and read: Document No. 9126 - Resolution.

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

APPROVE MODIFICATIONS TO 2008 PORTION OF
2007-2008 UNIFIED PLANNING WORK PROGRAM

The staff report from the engineering department relating to request from the Planning and Engineering Departments for approval of modifications for submittal to the MPO to amend the 2008 MPO Work Program, with recommendation to approve modifications for the 2008 portion of the 2007-2008 Unified Planning Work Program.

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

APPROVE ENGINEER'S REPORT FOR PROJECT NO.
6179, SAFE KIDS COALITION, SAFE ROUTES TO
SCHOOL GRANT APPLICATION

The staff report from the city traffic engineer relating to Engineer's Report for Project No. 6179, Safe Kids Coalition, North Dakota Department of Transportation/Safe Routes to School Grant Application, with recommendation to direct staff to submit Safe Routes to School grant application to the Grand Forks-East Grand Forks Metropolitan Planning Organization (MPO) for preparation of the 2008 North Dakota Safe Routes to School Grant Application, and rank as presented in the cost estimate.

Council Member Glassheim stated he raised questions on this two weeks ago and thought that they were going to look at the crossing at North Washington Street and 8th Avenue North, that he hasn't heard anything; and asked whether they could include $5,000 to the application for an unspecified project. Council Member Kreun stated that sometime ago there was a research project on that intersection but didn't pinpoint any crosswalk situation and that it could be brought to the Service/Safety Committee and have the traffic engineer review this but doesn't believe that will affect the plans for the State monies.

Mr. Grasser reported that the application before council has been worked through a number of different organizations, Safe Kids Coalition, School District, and that these are projects that are going to come in multiple years, and this is the second year of a multi-year project and his suggestion is that if they look at a crossing at Washington and 8th Avenue North is that they would consider putting that into next year's program request once they do a thorough evaluation and coordinate with other partners. He stated they could add the $5,000 without the background they have on the rest, that we won't get all of these items as they go through a state-wide competition, that we didn't get all of our requests in 2007 and won't in 2008, and that if don't have background generated on this project his prediction is that it won't go anywhere. Council Member Glassheim withdrew his concern and hopes engineering can look at this and get it organized for next year. It was suggested that the traffic engineer look at this and do preliminary research and could add that next year if appropriate.

Council Member Bakken stated that from past experience they can't put a light at that corner because too close to an existing light, and only thing could do would be to put crossing guards at that area.

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

APPROVE 2009 TRANSPORTATION ENHANCEMENT
PROJECT APPLICATION

The staff report from the engineering department relating to 2009 Transportation Enhancement Project application, with recommendation to direct staff to submit Transportation Enhancement grant application to the Grand Forks-East Grand Forks Metropolitan Planning Organization (MPO) for preparation of the 2008 Transportation Enhancement grant program; and to rank South Washington Street Shared/Use path as Number 1.

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

APPROVE 2009-2013 URBAN AND REGIONAL PROGRAM
PROJECT REQUEST TO STATE

The staff recommendation from the engineering department relating to 2009-2013 Urban and Regional Program Project request to North Dakota Department of Transportation, with recommendation to direct staff to submit Federal Aid Projects requests for construction years 2009 to 2013 to the Grand Forks-East Grand Forks Metropolitan Planning Organization (MPO) for preparation of the 2008 North Dakota State Transportation Improvement Program (STIP), and to rank as in the Regional and Urban Road Summary Years 2009 to 2013 (Draft 10/17/07).

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

APPROVE BIDS FOR PROJECT NOS. 6174.1 AND 6174.2,
DISTRICT NO. 458, REHAB STORM PUMP STATIONS
NOS. 182 AND 188 (STRUCTURE MODIFICATIONS)

The staff report from the engineering department relating to bids for Project No. 6174.1 and Project No. 6174.2, District Nos. 458, Rehabilitate Storm Pump Stations No. 182 and No. 188 (structure modifications bid package), with recommendation to award contracts to low bidders as follows: General Work to Industrial Contract Services in the amount of $1,797,007.99; Mechanical Work to McFarlane Sheet Metal in the amount of $48,900.00; and Electrical Work to Strata Corporation in the amount of $694,955.78. Document No. 9127 - Bid Tabulation

The city engineer's estimate of total cost for Project No. 6174.1 and Project No. 6174.2 in the amounts of
$2,192,350.00, $59,658.00 and $847,846.00, were presented and read.

It was noted that two weeks ago this was brought forward and because of concern on bids, engineering department was asked to see if there were any items that could be removed from the project, and a copy of change order deductions had been submitted by the engineering department.

Mr. Grasser reported that the bids came in higher than anticipated for the main phase of Pump Station 182 and 188, that they discussed this with the consulting engineer, Webster, Foster & Weston, to do value engineering from their perspective, with input from city staff and from the contractor; and came up with a small listing of potential cost savings, that some had to do with construction techniques and reviewed the listing. He stated that the process they would go through if they want to incorporate the change orders is that they would award the project as bid and direction to city staff to prepare the actual deduct change orders.

After some discussion it was moved by Council Member Christensen and seconded by Council Member Kreun to approve the recommendation and award project as bid, Document No. 9128 - Resolution, with direction to city staff to prepare actual change order to delete exterior pipe stub installation in the amount of $75,000. Upon roll call the following voted "aye": Council Members Brooks, McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 7; voting "nay": none. Mayor Brown declared the motion carried. (It was noted by the city engineer that the last item on the listing has already been incorporated in the next phase of bidding.)

APPROVE ENGINEERING SERVICES AGREEMENT FOR
PROJECT NO. 6240, PHASE VIII LANDFILL CLOSURE

The staff report from the public works director relating to Engineering Services Agreement with CPS, Ltd. for Project No. 6240, Phase VIII Landfill Closure, with recommendation to approve engineering services agreement with CPS, Ltd in the amount of $171,177.00.

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 Brooks, McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 7; voting "nay": none. Mayor Brown declared the motion carried.

CITY COUNCIL STRUCTURE

The matter of city council structure was presented to the council, and it was moved by Council Member Brooks and seconded by Council Member Gershman to refer this matter to a work session of the council on Wednesday, November 14, 2007. Carried 7 votes affirmative.

APPROVE BILL LISTING AND ESTIMATE SUMMRY

Vendor Payment Listing No. 07-21, dated November 2, 2007, totaling $1,493,266.01 and Estimate Summary dated October 31, 2007, totaling $2,601,939.85, were presented and read.
It was moved by Council Member Brooks and seconded by Council Member Glassheim 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 Brooks, McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 7; voting "nay": none. Mayor Brown declared the motion carried and the bills ordered paid.

APPROVE MINUTES OCTOBER 15 AND 22, 2007

Typewritten copies of the minutes of the city council meeting held on Monday, October 15, 2007 and of the special meeting held on Monday, October 22, 2007, were presented and read. It was moved by Council Member Brooks 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 Brooks congratulated the Red River Tennis team.

2) Council Member Glassheim reported that he rode along with the police patrol on Friday night from 10:00 p.m. to 4:00 a.m., that they had a few stops, an arrest, loud party ordinance violations, and that he was very impressed with the professionalism of the people, they used discretion on some things that needed arrest and/or warning and all people they encountered were treated with respect, quite interesting event and was impressed and in good hands.

3) Council Member Bakken stated that he saw article in today's paper on property taxes in MN cities, and asked if staff could break down the city of Grand Forks and what our numbers are (leave out the School District, Park and County) and how we stand up against it as a city. The city auditor will bring a report. Council Member Brooks stated that in MN about half of the property taxes don't go to School but to County, as School is funded, and that those numbers include the entire property taxes in EGF (County, School, City and a couple specials which involve Water Shed District and NW Regional Development Commission for this area of northwest MN).

4) Council Member Kreun reported there is a Service/Safety Committee tomorrow afternoon at 4:00 p.m.

5) Council Member Gershman reported that in January or February the council had a meeting with the County Commissioners, Mr. Duquette, Mr. Schmisek, Mr. Rohde and Mr. Kreun, and at that time he suggested that it may be the time for the City and the County to begin a serious discussion about consolidation of services over a lengthy period of time to make sure that it works. He stated that around the country those cities and counties that have tried to do it too quickly have failed, and those who have taken a long time, i.e., 10 year transition, using attrition and starting with easy departments or easy projects are the ones that seem to have worked, that he spoke with the Mayor and Mr. Duquette and Vice President Glassheim and would request that Mr. Duquette be the point person to start putting together a committee to start looking at this (county commissioners and city council persons) to begin to flush this out to see if can proceed, has potential to save citizens in the county and city a lot of money, and asked with consensus of mayor and city council to have Mr. Duquette put that together and would like the process to begin.

Council Member Bakken reported that he read item regarding a visa program that people from other countries can get a visa in this country in a short period of time by investing in a business, minimum investment is $500,000 and they become a minority partner in whatever business they invest in and get a US visa for them and their family, and there is a limited number of them but have to do some leg work and have to be set up for it and might be something we would want to look into because get some investments for some of our businesses here through a program that is already in effect.

Council Member Gershman stated that when looking at Northland Mission, that 70% of the people at the Northland Mission are working - working homeless and important for people to know. Mr. Kreun stated that he was just at a housing conference and that is one of the issues that they want to go with is housing for the homeless, small efficiency type things and that they would pay rent and that was one of the topics, working homeless and housing issue.

ADJOURN

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

Respectfully submitted,



John M. Schmisek
City Auditor

Approved:
________________________________
Michael R. Brown, Mayor