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Minutes/Committee of the Whole
Monday, December 14, 2009 –following JDA
Page 5 of 5
The City Council met as the Committee of the Whole on Monday, December 14, 2009 at following the JDA Meeting in the Council Chambers in City Hall with Mayor Brown presiding. Present: Council Members Bjerke, McNamara, Glassheim, Gershman, Christensen, Kreun - 6; Absent: Bakken - 1.

Mayor Brown made the following announcements:

1) Great news on December Sales Tax receipts were at a record level of $1.6 million and reinforces the strong economy and continued growth in the City.
2) Tops in Blue gave a great performance this past weekend and thanked the Air Force for bringing that great entertainment option to our community.
3) Reported he attended the NOVAC open house yesterday and discuss steps that can be taken to further support the arts in our community.
4) 2010 City Calendar has been sent to all residents in Grand Forks and contain information on City services and contact information.

1.3 Recognition Presentation re, New Landfill by Burns & McDonnell Engineering Company.

Steve Linneman, Tom Brown, and Chris Sneider of Burns & McDonnell presented plagues and congratulated the City on the completion of the landfill project that has been ongoing for several years. They recognized Todd Feland, Public Works Director, CPS, Ltd., Webster Foster Weston, and Veit as partners, along with Council and other City staff for working diligently and successfully with all interested parties including landowners, State of ND, FAA, and activists. Mayor Brown also thanked Feland and stated that he has put in many hours and shown true leadership in working with the many aspects of this project. Mayor Brown also noted the work of Pete Haga and Council Member Kreun for their testimony at the State level, and Council Member Glassheim for his behind the scenes assistance in his role in the state legislature. Gershman and McNamara also expressed appreciation for the work that Feland has done on this project.

2.1 Application for abatement of 2008 taxes at 1217 Oak Street.

There were no comments.

2.2 Parameters for tax increment financing exemptions.

Bjerke commented that he will be voting no on this next week and wanted to state his reasoning which is that the purpose of imposing taxes is to generate revenue to support City and this goes against that and if taxes are where they should be and are hearing that they are and amenities are available in community then don’t believe that there should be changes to the tax structure such as this and keep it the same for all.

Gershman inquired if perhaps the date that is in the document should be changed from December 31 to a May start date to better coincide with the building cycle, as would give people a little more time to finalize their plans and still get in the three year window. Christensen stated he would like to see the date recommendation of staff and make sure that when we pass the three year exemption, like to see written so best effect possible on projects and don’t have first year wasted due to timing of project completion. Herz commented that could be a concern and could look at that and work with Carsen on making sure the wording reflects the intent of Council.

Kreun inquired whether this would need to be approved and in place before a building permit is taken out on a project in order qualify. Herz replied stated that it would. Christensen stated that we are trying to get this approved and in place as soon as possible in 2010. Gershman stated that the intent of this is to assist development and be a Grand Forks stimulus program.

Christensen also stated for the record that this will not apply to all businesses, due to restrictions in code and for the record those businesses that will not qualify due to the anticompetitive clause are apartment complexes, housing projects, retail stores, shopping centers, motels, hotels, gas stations, bars, retaurants and like projects. The group discussed that the intent is to aid unique opportunities something like corporate office building or complex, in any area in Grand Forks, and not in any particular area. Christensen added that the committee took particular note that there has been a lack of building permits for this type of project and looking for a way to spur that development and pointed out that the exemption being considered is for a limited time, three years, but the building will go on after that and be an addition to the tax base which benefits the community. Herz also pointed out that the exemption being considered is 100% for the first year, 75% for second year and 50% for third year, so start receiving some increased tax revenue as soon as the second year.

2.3 Budget Amendments various departments:
a) Disaster Recovery Fund
b) Economic Development
c) Fire Department
d) Police Department (3)
e) Public Works
f) Urban Development
g) Defined Benefit Pension

There were no comments.

2.4 Liquor license extension – Mooddyz Bar and Casino

Kreun stated that this applicant did appear at Committee and recommendation from committee is to deny extension request as no fees have been paid and there has been no issuance of this license, but that applicant would be able to reapply at a later time and asked City Attorney to provide information to Council on this matter.

Swanson stated that payment of fees is not determining factor in that fees are due at time the license is issued, not approved, however applicant has a year from application date to put the license into use and an existing licenseholder has a year in which their license can be inactive, and in the case of Mooddyz that year has passed, the license has not been issued, there has been no construction activity at the location, and they do not have a date by which they will be in operation, so given that level of uncertainty, the license approval from a year ago would be deemed null and void and applicant would have ability to come back and reapply once some work has progressed. In contrast, the request for extension under 2.5 there has been a building permit issued, work has been ongoing and are planning to have the license issued and in use within the next several weeks. Swanson added that the payment or lack thereof should not be the deciding factor. Kreun thanked Swanson and reiterated that the Committee has recommended denying this request.

2.5 Liquor licenses extension – LPO, Inc.

Bjerke stated that at Committee the licensee stated that he would be paying the appropriate fees shortly and asked whether that had happened. Haga stated that his understanding is that the transfer fee, 2009 and 2010 license fees have been paid and license is making its way through City departments for required approval and issuance shortly.

2.6 Federal Transportation funding requests.

Grasser stated that staff report was not specific in the request that would be made and will be an updated staff report for the Council meeting next week and are looking at a $200,000 request for 2011 HSIP program before the countdown hits.

2.7 Bids for Project No. 6409, replacement of underground street light electrical conduit.

There were no comments.

2.8 Construction Engineering Services Agreement for Project No. 6272, Dist. No. 99, Cherry Street reconstruction from 17th Ave. S. to 25th Ave. S.

There were no comments.

2.9 Bids for Project No. 6272, Dis. No. 99, Cherry Street reconstruction from 17th Ave. S. to 25th Ave. S.
There were no comments.

2.10 Hazardous Materials Preparedness Grants (HMEP) for Fire Department.

There were no comments.

2.11 2010 Salary Plan.

Hovland thanked the Council for their continued support of the salary plan and stated that the salary plan has been completed and as presented includes any market adjustments for positions as determined by the market study which was conducted, that there were some entry level positions in police and fire that fall below the market and will be brought up to 80% of the midpoint as per the design of the plan. He continued that recently we have been successful in recruiting to fill open positions in the Engineering Dept. from Virginia, Montana, and Bismarck, ND, which reinforces that this plan is keeping us competitive in the marketplace.


2.12 Reemployment of retired employees on a part-time basis.

Bjerke inquired whether this also pertains to employees that are now under the NDPERS plan. Hovland stated that this only applies to individuals in the DB plan and NDPERS employees are covered under the NDPERS code as set in State Code and can work up to 1,367 hours before having their pension benefit affected.

Gershman inquired whether the employee would be able to accrue more pension if they return to work. Hovland explained that the employees will be treated as part-time contracted seasonal employees and the 1,000 hour cap keeps them under the threshold for the plan so they do not accrue any additional benefit.

2.13 2009 employee holiday hours.

Bjerke commented that feels City employees have good salary, benefits and job security and with economy the way it is we should be leading by example and not in favor of going ahead with this and will be voting no next week. Gershman responded that most employers do recognize their employees in some way during the holidays and feels it is appropriate to do same for our employees that have helped deliver a good year for the City.
Christensen asked the Auditor to explain any cost associated with this item. Jerath explained that there are no checks written for this, rather employees are given 4 hours vacation to use. Gershman replied that generally with our staff they work together and pick up the slack when someone is gone so all the work gets done and no disadvantage to the City by approving this item. Bjerke suggested then perhaps Council should just add four more permanent vacation hours to all employees and then not have this discussion every year.

2.14 Bids for Project No. 6555, City Hall carpet replacement.

There were no comments.

2.15 Polling sites for June 8, 2010 and November 2, 2010 elections.

There were no comments.

2.16 Appointments to boards/organizations:
a) Health Department
b) Public Library Board
c) Emergency Management Board
d) Pension and Insurance Committee
e) Convention and Visitors Bureau

There were no comments.

2.17 Public Works Department – Sanitation Division collection truck bid and used landfill water truck.

There were no comments.

2.18 2010 chemical bid approval for Water/Wastewater Treatment Plant.

There were no comments.

2.19 Municipal Parking System.

There were no comments.

2.20 Modification to Corporate Center Taxable Industrial Development Revenue Note, Series 1999.

There were no comments.

3.1 Information Items.

There were no comments.

4. Citizen Requests

There were none.

5. City Administrator Comments

There were none.

6. Council Comments.

There were none

7. Adjournment.

Motion by Council Member Gershman, Second by Council Member Kreun to adjourn meeting at 6:45 p.m.

Respectfully submitted,


Saroj Jerath, CPA
Director of Finance and Administrative Services

SLL