Print VersionStay Informed
Minutes of Grand Forks City Council/Committee of the Whole
Monday, April 27, 2009 - 5:30 p.m._________________ __

The City Council met as the Committee of the Whole on Monday, April 27, 2009 at 5:30 p.m. in the Council Chambers in City Hall with Mayor Brown presiding. Present at roll call were Council Members Bjerke, Gershman, Christensen, Kreun - 4; absent: Council Members Glassheim, Bakken - 2.

Mayor Brown commented on various items during the past week and upcoming events:
They have lifted ban on using greenway and stressed that there are areas where on or near paths so please use caution.
Thank you to everyone on the Just Say Hi Walk through University Park area last night and their on-going effort to promote communication and be good neighbors.

Council Member McNamara reported present.

Thanks to council members for joint meeting with UND Student Senate, appreciate hearing their perspective and ideas, and great chance to support them this Saturday for this year's Big Event that takes place and over 500 students signed up to help area citizens and organizations, one more way students have a positive impact on our community.
Welcome to ND Tourism Conference hosted by Grand Forks Convention & Visitors Bureau, Alerus Center and Canad Inns.
Greater Grand Forks Professionals are hosting this year's event at Museum of Arts, and great way to support our young professionals - event is open to everyone and is free.
Next week is Spring Cleanup Week, starts with electronic recycling on Saturday, and following week City will be picking up large throw away items, for additional information please call Public Informational Center.
This week is Home Show and City will be there to answer questions about building inspections and also promote the Green3 effort - stop by to sign up for free energy audit for your home.

Sharyl Simione, Public Information Office, reported on events during Municipal Government Week - April 13-17, 2009 -that Municipal Government Week started in 2002, sponsored by ND League of Cities. Council members are involved to celebrate efforts of local government and services it provides to the community. First event was Mayor for a Day contest that brought in 282 essays from 4th graders. Emily Anderson, Century Elementary, was this year's winner and honorable mention was Kelsey Worth from Twining, Grand Forks Air Force Base. Council Member Terry Bjerke visited Head Start; Council Member Gershman visited Wilder School, and Mayor Brown visited the class of winner of the essay contest.

LEGISLATIVE UPDATE

Pete Haga, Community/Government Relations Officer, reported this is the last week and half of the Legislative session, due to be out May 6. The bills they are looking at are the ET zoning bills, one of the bills was killed by the Senate, the remaining bill is in conference committee, which consists of 3 members from each house, any amendments in committee have to have agreement by two members of each house - some attempts to amend that bill have failed. Another bill they are working with is DOT budget which has some higher amounts and hopes that does proceed through. The quiet zone bill has passed with a reduced amount than originally projected, now a total of about $2.5 million and what they have done is restrict it to $75,000 per railway crossing with a total of $225,000 per city and would be approx. 3 crossing the State would help with, and staff is going to look to see how that is going to be applied to some of the discussions council has had. He stated that ended his update for today.

2.1 Applications for exemption of remodeling improvements to residential or
commercial buildings at various locations.___________________________
Council Member Gershman stated that he had been meeting with Mel Carsen, city
assessor, looking at exemptions and incentives we have for commercial and residential property, and will be coming forward in next few weeks with a proposal to change some of our ordinances that could make it more beneficial for homeowners and businesses to remodel and build - that he plans to bring that to the finance committee first - that this would be like having a stimulus plan. This is taking the City's ordinances and making them more in line with the State ordinance as we are little more conservative than the State.

2.2 Application for Class 3 (Off and/or On Sale Wine and Beer) license at 108 North 3rd Street.__________________________________________________________________
Council Member Kreun reported this matter was brought to committee by Chief Packett,
with concern for downtown areas being congested in evening and some concerns about density of that area and how this license would affect that. The new license applications is a wine and beer license and hours would be from 4:30 to midnight and committee didn't feel there would be extra work for police force, and not have same effect as some of the other establishments. They passed the application on to council for information with vote next week.

Council Member Bjerke stated they had discussed density limits and if pass this application, it will be the fourth new license since July; and will be the 7th license in 3 blocks on N. 3rd Street and 2 more in 2 more blocks and would like discussion unless it is going to be city policy, have an unlimited number of licenses and unlimited number in any area - and that this should be addressed.

Council Member Christensen stated that now anybody can get a license with issuance fee, and when talk about putting limits on licenses, start adding value to the existing licenses - many years ago had situation like that when had x number of licenses and changed that so number was unlimited but at large fee - that when start talking about certain areas in the city, adding value to those that have a license and diminish the value of licenses elsewhere - then start having a monopoly - that should let the market take care of location and risk to invest the money - and is not about restricting competition and would not be in favor of that.

Kym Enlow and Laurie Tweten, applicants for the license, stated that of the number of licenses in that area, 3 of them are restaurants that serve alcohol - and that they are asking for license for wine and beer.

2.3 Requests by applicants to serve alcohol in conjunction with outdoor café seating in front of their business location.____________________________________________
There were no comments. - Council Member McNamara stated that Bonzer's on State
controlled highway and need resolution from the State in order to place outdoor seating at this location. Brad Gengler stated that joint approval is needed, by City and State, City has approved and are still working with Bonzer's on this matter.

2.4 Establish policy and procedures to advance funds to Alerus Center for its operational cash flow needs. ______________________________________
Council Member Kreun reported there were several meetings on this issue with the task
force and that Mr. Newman will be giving an overview of the results of the task force .
Randy Newman, member of Alerus Commission, reported they had several meetings with task force and reviewed highlights of the results - that it is their intention to have a balanced budget, and are going to provide an estimate of the annual cash flows which will be provided in June, and developed a policy and process requesting amendments of the budgeted cash flows. There have been some issues or miscommunication regarding the event fund and that there is not going to be a separate event fund, and reporting would be part of the monthly statement and separate line item; they tried to enhance the financial reporting system and will continue to provide a monthly balance sheet and income statement - financial statements will be provided on line on city's website, and have created a system of signoffs involving all the people reviewing the financial statements. Account titles and categories have been reviewed, tried to make them simpler and more understandable and will be a description of each of them that does accompany the financial statements. They are meeting with Brady Martz, who conducts the audit of the City, that being a separate enterprise zone; and develop a scope of engagement for 2009 and working with them so there will be a separate management letter that will be presented to the Commission.

He stated they would like the council to understand two important facets of the Alerus Center: the arena which seems to get the most attention and have announced a 10-year contract with UND; mission to the taxpayers and citizens of the region is to provide for their entertainment, concerts and that is the area that they have the most competitive challenges - Convention Center because of the outside people in Grand Forks is the largest economic development contributor to Grand Forks - that it is important promoter for Grand Forks and region and brings many people into Grand Forks. They intend to support and recommend and encourage the council that they amend the Home Rule Charter which would allow them and City to access funds needed for the operation of the Alerus Center and that they will be working with the council in recommending these improvements to the council

Council Member Christensen stated that he along with Council Members Gershman and Kreun were appointed to the task force and have had several meetings - there have been a lot of traction and media attention to this matter. There were some funding shortfalls and it was thought that we could cover from the excess sales tax that was being collected, they reviewed that along with bond counsel and that we may have to amend our Home Rule Charter. That in the interim what has transpired in the last 120 days is we will have a much better transparency, that the Alerus facility is an enterprise fund - and Alerus Commission is working hard to deliver more on convention facility - and will be giving us their budget by June 1.

Council Member McNamara stated the most concern about this were relative to transfers at the Alerus, there was a whole series of transfers that took place that weren't clearly visible, and that has been taken care of - and was important to right the record and understandable so know where the Alerus is so could take care of it.

Council Member Bjerke expressed concerns re. subsidies for the Alerus Center - the citizens voted for a building and are paying for the building and for any capital items (carpets, lights, etc.), citizens voted to give a quarter per cent sales tax and is now up to almost $400,000/year for an operational subsidy - give you a building, maintain your building in A-1 condition and beyond and give you $400,000/year and are getting a subsidy in cash, and that they want additional money to cash flow and questioned how much more and on Monday night will be voting no.

It was stated by Council Member Gershman that in a competitive climate cannot raise rates to increase revenue and in competitive climate with Winnipeg, Fargo- there was a sense that the Alerus Center was not going to be doing concerts and wants to make it clear that the Alerus Center will continue to be in concert business - amendment to the Home Rule Charter will solve some of the problems and will be asking to amend the Charter so that it conforms to the bond covenants - and will allow the Alerus Center to access the excess sales tax for capital improvements and for operations, and wouldn't have to take any more money from 2163, economic development, and would allow the City to create an endowment fund with the excess sales tax revenue, as generating more tax revenue than the bond payment, and would allow us to create an endowment of $60 to $70 million by the time the bonds are paid in 2029, that we could sunset that sales tax and have the interest from that endowment to take care of future operations and capital improvements for the Alerus Center - that now they cannot access that money for operations. Another thing is to take a hard look at the second recommendation, which are building improvements, that every 7 years need to renovate not only for quality of furnishings, wall coverings but also goes into the mechanical and technology that you need in today's market. The Alerus Center is the finest facility between Minneapolis and far west, and capitalize on those strengths - Alerus Center has been open for 8 years and by time get improvements completed, it will be 9 and continue to promote the best facility in the region.

Council Member Kreun stated that the 2163 fund is not the general fund and people of Grand Forks are not supplementing the Alerus Center out of their general taxes they pay in February, but from the sales tax; and that over 120 days started the long range planning process to accommo-date and alleviate some of those concerns and that is why talking about changing the Home Rule Charter.

Council Member Bjerke stated that people put 3/4 percent into the building and quarter percent into operations - - the bond covenants were written after the vote and bond covenants were written wrong and didn't follow the Home Rule Charter. Mr. Gershman stated that the bond covenants, even though written after the vote, give us an opportunity because we can codify that and will have the revenue so the Alerus Center can live within their means - Alerus Center not going away and wants to be proud of it and maintain activities there.

It was stated the Council Member McNamara that whenever take capital money and diverting to operations, sends up a yellow flag, question becomes how much and how far into the red and assumes that is what the debate would be - great building and has to be maintained, planned for future expansion and none of that would come from burden on the taxpayer - looking forward to the debate and approach with great caution.

2.5 Create special assessment district for Project No. 6335, Dist. No. 638, Shadyridge 8th Addn. paving and lighting. __________________________________________
Council Member Christensen stated we are creating a special assessment district, and
asked what is difference between tapping fee and if assess each lot owner. Al Grasser, city engineer, stated they usually do tapping fees on future assessments districts because if think it is something that is going to happen in not too distant future - 5 to 10 years and easier to bring them in when do the annexation. In this particular case they made an effort to put in a tapping fee on one lot and that this parcel might be a long ways out and in that instance made sense to do the tapping on that. Grasser stated the only reason this isn't an assessment district is that it is not in the city limits - that the front end money or 50% on lots, and that the developers have installed sewer and water at their cost and in essence that constitutes the up-front money requirement because they are not asking the City to contribute to that, and that the City would special assess storm sewer and paving. Existing home now have assessments for sanitary sewer and water and will be adding paving on top of that.

2.6 Create special assessment district for Project No. 6334, Dist. No. 464, Shadyridge 8th Addn. storm sewer.__________________________________________________
There were no comments.

2.7 Bid for engineering department bucket truck vehicle.
There were no comments.

2.8 Bids for Project No. 6354, 2009 Watermain Replacement Project.
There were no comments.

2.9 Bids for Project No.6429.1 - Micro-surfacing of GF US2 Business Loop (N. 5th St. and DeMers Ave.) from Gateway Dr. to Sorlie Bridge._______________________
There were no comments.

2.10 Bids for Project No. 6458, 2009 Riverside Pool flood cleanup.
Council Member Bjerke stated that the City is paying flood insurance policy and would
like information that the cost of the insurance policy should be paid for funds for Riverside pool and not from City expenses - would like to see policy cost and where being paid from; that cleanup costs shouldn't be coming from Flood Disaster Recovery Fund, and should come from pool money - would like discussion. He stated that opening the pool the first week of August and close pool the third week of August - costs for opening the pool - need discussion.

Mark Walker, asst. city engineer, reported the premium for flood insurance was little bit over $4,000/year and cost included in the budget, est. that little over $950,000 for the project, and flood insurance is part of that. If there is a desire to continue to carry insurance on the facility, that premium will have to be paid for and come from some account, and didn't know that premiums in future years will be same as for this year. He talked with Bill Palmiscino from Park Dist. re. opening the pool end of July or first part of August, contractor has been delayed for substantial amount of time but thinks can open end of July - Park Board's wishes would be open up pool if that is the desire of City to do so, and if didn't want to open it up this year, just leave it closed - but advantage to opening pool for short period of time so can work bugs out of the system and if find any flaws, fix under warranty. In staffing, the Park Dist. intends on hiring additional lifeguards and using them at Elks and at Y.

Council Member Gershman stated there was some discussion from Neighborhood Assn. whether
pool should be opened and they will have a meeting and relay on Park District and Mr. Walker when at that point.

Council Member Christensen stated they allocated money to do renovation of the pool and that
money was part of the Flood Protection Project, funding any losses that occur once operational is something they should discuss as Mayor prepares his budget for 2010 as they will have to set aside a contingency or reserve to deal with pool.

2.11 Bids for Project No. 6273.1, Dist. No. 637, paving N. 51st St. from Gateway Dr. to 10th Ave.N.___________________________________________________________
There were no comments.

2.12 Construction Engineering Services Agreement for Project No. 6273.1, Dist. No. 637, paving N. 51st St. from Gateway Dr. to 10th Ave.N.____________________________
There were no comments.

2.13 Application for moving permit to move garage from Hwy. 2 West to 318 N. 7th St., with public hearing on May 4._____________________________________________
There were no comments.

2.14 Redevelopment proposals for City-owned lots.
There were no comments.

2.15 Engineering Services Agreement for Project No. 6449, Wastewater Treatment Plant Micro Bubble Flotation (MBF) Inlets Improvement____________________________
There were no comments.

2.16 Matter of Negotiations for Acquisition of Property (City Council may convene in executive session pursuant to North Dakota Century Code Section 44-04-19.1 and 44-04-19.2 for discussion on negotiation strategies and instructions regarding potential acquisition of property)_________________________________________
It was moved by Council Member Christensen and seconded by Council Member Bakken to suspend agenda to move this item to the end of the agenda. Carried 5 votes affirmative.

3. INFORMATION ITEMS

3.1 Statement of Changes in Cash Balances as of January 31, 2009.
3.2 Statement of Changes in Cash Balances as of February 28, 2009.
3.3 Statement of Changes in Cash Balances as of March 31, 2009.
Informational items.

CONSIDER MATTER OF NEGOTIATIONS FOR ACQUISITION
OF PROPERTY AND MOVE INTO EXECUTIVE SESSION

It was moved by Council Member McNamara and seconded by Council Member Bjerke to adjourn into executive session pursuant to NDCC Section 44-04-19.1 ands 44-04-19.2 to allow for discussion on negotiation strategies and instructions regarding potential acquisition of property. Carried 5 votes affirmative. Time was 7:00 p.m.

COMMITTEE RECONVENES FOLLOWING EXECUTIVE SESSION

The city council reconvened at 7:57 p.m. following the executive session with all members present, with the exception of Council Member Kreun who left during the executive session.

ADJOURN

It was moved by Council Member Gershman and seconded by Council Member Bjerke to adjourn. Carried 4 votes affirmative.

Respectfully submitted,



Saroj Jerath
City Auditor