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PROCEEDINGS OF THE CITY COUNCIL OF THE
CITY OF GRAND FORKS, NORTH DAKOTA
Tuesday, September 2, 1997

The city council of the city of Grand Forks, North Dakota met in its regular session in the council chambers in City Hall on Tuesday, September 2, 1997 at the hour of 7:00 o'clock p.m. with President Hagness presiding. Present at roll call were Council Members Beach, Polovitz, Hamerlik, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Hafner, Hagness - 11; absent: Council Member Bakken - 1; 2 seats vacant.

President Hagness announced that anyone wishing to speak to any item may do so by being recognized prior to a vote being taken on the matter.

ADOPT ORDINANCE NO. 3672, TO ANNEX ALL OF
BIRKHOLZ 6TH ADDITION TO THE CITY

An ordinance entitled "An ordinance to annex to the city of Grand Forks, North Dakota, all of Birkholz 6th Addition to the city of Grand Forks, North Dakota, less property previously annexed", which had been introduced and passed on its first reading on August 18, 1997 and upon which public hearing had been scheduled for this evening, was presented and read.

The city auditor reported that the notice to the public that this petition for annexation which had been filed with the city council had been published as required and further that no protests had been filed with his office.

President Hagness called upon the audience to see if there was anyone present who had comments to make on this matter. There were none.

Upon call for the question of adoption of this ordinance and upon roll call vote, the following voted "aye": Council Members Beach, Polovitz, Hamerlik Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Hafner, Hagness - 11; voting "nay": none. President Hagness declared the motion carried and the ordinance adopted.

ADOPT FINAL PLAT; AND ADOPT ORDINANCE NO. 3673,
TO AMEND STREET AND HIGHWAY PLAN TO INCLUDE
PUBLIC R/W SHOWN AS DEDICATED ON THE PLAT OF
WHITE PROPERTIES FIRST ADDITION

An ordinance entitled "an ordinance to amend the Street and Highway Plan of the city of Grand Forks, North Dakota, to include the public rights of way shown as dedicated on the plat of White Properties First Addition to the city of Grand Forks, North Dakota", which had been introduced and passed on its first reading on August 18, 1997 and upon which public hearing had been scheduled for this evening, was presented and read for consideration on second reading.

The city auditor reported that the required legal notice had been published calling for a public hearing to be held on this matter this evening and further that to date no protests or grievances had been filed with his office.

President Hagness called for the public hearing; there were no comments and the public hearing was closed.

The city auditor presented and read the report from the Planning and Zoning Commission that they had considered the matter of the request from Jim McMenamy on behalf of White Properties, Inc. for final approval of a plat of White Properties First Addition to the city of Grand Forks, North Dakota (located west of North Columbia Road and north of the former Northern Pacific Railroad right of way known as the Valley Contracting yard), and recommended final approval
subject to special conditions shown on or attached to the review copy and passage 15081
September 2, 1997

of the ordinance amending the Street and Highway Plan. The recommendation had been moved and seconded by Council Members Hafner and Babinchak.

Upon call for the question of adoption of this ordinance and upon roll call the following voted "aye": Council Members Beach, Polovitz, Hamerlik Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Hafner, Hagness - 11; voting "nay": none. President Hagness declared the motion carried and the ordinance adopted.

ADOPT ORDINANCE NO. 3674, TO ANNEX ALL OF
WHITE PROPERTIES FIRST ADDITION, LESS PROPERTY
PREVIOUSLY ANNEXED

An ordinance entitled "an ordinance to annex to the city of Grand Forks, North Dakota, all of White Properties First Addition to the city of Grand Forks, North Dakota, less property previously annexed", which had been introduced and passed on its first reading on August 18, 1997, and upon which public hearing had been scheduled for this evening, was presented and read for consideration on second reading.

The city auditor reported that the notice to the public that this petition for annexation which had been filed with the city council had been published as required and further that no protests had been filed with his office.

President Hagness called upon the audience to see if there was anyone present who had comments to make on this matter. There were none.

Upon call for the question of adoption of this ordinance and upon roll call vote, the following voted "aye": Council Members Beach, Polovitz, Hamerlik Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Hafner, Hagness - 11; voting "nay": none. President Hagness declared the motion carried and the ordinance adopted.

ADOPT ORDINANCE NO. 3675, AMENDING ZONING MAP TO
INCLUDE WITHIN THE WHITE PROPERTIES FIRST PUD
(PLANNED UNIT DEVELOPMENT) DISTRICT, CONCEPT DEVELOP-
MENT PLAN, ALL OF WHITE PROPERTIES FIRST ADDITION

An ordinance entitled "An ordinance to amend the Zoning Map of the city of Grand Forks, North Dakota, to rezone and exclude from the I-2 (Heavy Industrial) District and to include within the White Properties First PUD (Planned Unit Development) District, Concept Development Plan, all of White Properties First Addition to the City of Grand forks, North Dakota", which had been introduced and passed on its first reading on August 18, 1997, and upon which public hearing had been scheduled for this evening, was presented and read for consideration on second reading and final passage.

The city auditor reported that the required legal notice had been published calling for a public hearing to be held on this matter this evening and further that to date no protests or grievances had been filed with his office.

President Hagness call for the public hearing; there were no comments and the public hearing was closed.

The city auditor presented and read the report from the Planning and Zoning Com-mission that they had considered the matter of the request from Jim McMenamy on behalf of White Properties, Inc. for final approval of an ordinance to amend the Zoning Map to exclude from the I-2 (Heavy Industrial) District and to include within White Properties PUD (Planned Unit Development) District, Concept Develop-ment Plan, all of White Properties First Addition to the city of Grand Forks, North Dakota (located west of North Columbia Road and north of the former
Northern Pacific Railroad right of way known as the Valley Contracting Yard), and recommended final approval subject to special conditions shown on or attached to
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September 2, 1997

the review copy and passage of the ordinance amending the zoning map. The recommendation had been moved and seconded by Council Members Beyer and Hafner.

Upon call for the question of adoption of this ordinance and upon roll call vote, the following voted "aye": Council Members Beach, Polovitz, Hamerlik Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Hafner, Hagness - 11; voting "nay": none. President Hagness declared the motion carried and the ordinance adopted.

ADOPT ORDINANCE NO. 3676, AMENDING ZONING
MAP TO INCLUDE WITHIN THE B-3 (GENERAL
BUSINESS) DISTRICT, LOT 1, BLOCK 1, CURRAN'S
3RD RESUBDIVISION

An ordinance entitled "An ordinance to amend the Zoning Map of the city of Grand Forks, North Dakota, to rezone and exclude from the A-2 (Agricultural Reserve) District and to include within the B-3 (General Business) District, Lot 1, Block 1, Curran's 3rd Resubdivision, Grand Forks, North Dakota", which had been introduced and passed on its first reading on August 18, 1997 and upon which public hearing had been scheduled for this evening, was presented and read for consideration on second reading and final passage.

The city auditor reported that the required legal notice had been published calling for a public hearing to be held on this matter this evening and further that to date no protests or grievances had been filed with his office.

President Hagness call for the public hearing; there were no comments and the public hearing was closed.

The city auditor presented and read the report from the Planning and Zoning Commission that they had considered the matter of the request from Dave Beste on behalf of Stone's Communications for final approval of an ordinance to amend the Zoning Map to exclude from the A-2 (Agricultural Reserve) District and to include within the B-3 (General Business) District, Lot 1, Block 1, Curran's 3rd Resub-division, Grand Forks, North Dakota (located northeast of the intersection of 47th Avenue South and South 16th Street), and recommended final approval and passage of the ordinance amending the zoning map. The recommendation had been moved and seconded by Council Members Beyer and Beach.

Upon call for the question of adoption of this ordinance and upon roll call vote, the following voted "aye": Council Members Beach, Polovitz, Hamerlik Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Hafner, Hagness - 11; voting "nay": none. President Hagness declared the motion carried and the ordinance adopted.

CONTINUE PUBLIC HEARING AND SECOND READING OF
ORDINANCE RE. AMENDING ZONING MAP TO INCLUDE
WITHIN COLUMBIA PARK PUD, CONCEPT DEVELOPMENT
PLAN, AMENDMENT NO. 10, WITH SUBSTANTIAL CHANGE
LYING IN LOT 1, BLOCK 1, TO SEPTEMBER 15, 1997

An ordinance entitled "An ordinance to amend the Zoning Map of the city of Grand Forks, North Dakota to rezone and exclude from the Columbia Park PUD (Planned Unit Development), Concept Development Plan, Amendment No. 9 and to include within the Johnson's PUD (Planned Unit Development), Concept Development Plan, Amendment No. 10, with substantial change lying in Lot 1, Block 1, Columbia Park 7th Addition to the city of Grand Forks, North Dakota", which had been introduced and passed on its first reading on June 23, 1997 and upon which public hearing had been continued until this evening, was presented and read for consideration on second reading.

President Hagness called for the public hearing; there were no comments and the public hearing was closed.
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The City Planning and Zoning Commission reported having considered the matter of the request from Wally Rodgers on behalf of Americinn Hospitality, L.L.C. for final approval of an ordinance to amend the Zoning Map to exclude from Columbia Park PUD (Planned Unit Development), Concept Development Plan, Amendment No. 9 and to include within Columbia Park PUD (Planned Unit Development), Concept Development Plan, Amendment No. 10, with substantial change lying in Lot 1, Block 1, Columbia park 7th Addition, Grand Forks, ND (located in the northeast corner of 19th Avenue South and South 29th Street), and recommended to table and con-tinue the public hearing until September 15, 1997.

It was moved by Council Member Babinchak and seconded by Council Member Beyer that this recommendation be and is hereby approved. Carried 11 votes affirma-tive.

HOLD PUBLIC HEARING RE. CREATING OF A
DEVELOPMENT OR RENEWAL AREA FOR THE USE
AND BENEFIT OF ECOLAB, AND OF A RESOLUTION
CREATING A DEVELOPMENT OR RENEWAL AREA
WITHIN THE CITY PURSUANT TO NORTH DAKOTA
URBAN RENEWAL LAW ON BEHALF OF ECOLAB, INC.
AND REFER BACK TO COMMITTEE

The city auditor reported that the city council had at its meeting on August 4, 1997 granted preliminary approval of request by Ecolab/Stauss Development for tax increment financing with provisions to be reviewed and established by staff and to call for a public hearing for September 2, 1997, and that notice had been made for the purpose of conducting a public hearing on the creation of a development or renewal area within the city, the designation of certain commercial properties therein and the approval of agreements between the City and David J. Parker, as trustee of the D. J. Parker, Inc., its assessors or assigns as the owner of the commercial properties to be developed for the use and benefit of Ecolab, all in accordance with the North Dakota Urban Renewal Law, NDCC, Chapter 40-58, as amended. The proposed development or renewal area is generally described as fol-lows: An approximate two and one-half acre site located at the northeast corner of the intersection of South 31st Street and South 36th Avenue and is legally described as Lot 1, Block 2, Perkins Third Addition for the site development and improvement thereof with a building, including roadways, parking areas, walkways, site drainage, utilities and landscaping and all interested persons may submit their views in writing before the time specified for such public hearing. He reported that no written protests or grievances had been filed with his office.
President Hagness called for the public hearing; there were no comments and/or grievances made and President Hagness closed the public hearing.

It was moved by Council Member Hafner and seconded by Council Member Beyer that an insufficiency of protest be filed. Carried 11 votes affirmative.

The city auditor reported that there were two resolutions for consideration of council: one creating a development or renewal area within the city pursuant to ND Urban Renewal Law on behalf of Ecolab, Inc. and also the initial resolution authorizing issuance of general obligation tax increment bonds up to $400,000.

Council Member Carpenter questioned whether this matter would be sent back to the finance committee for further consideration as they didn't have final numbers at there last meeting. Council Members Carpenter and Babinchak asked that this matter be sent back to committee and continue the public hearing to September 15, 1997. Carried 11 votes affirmative.

APPROVE APPLICATION FOR MOVING PERMIT TO MOVE
BUILDING TO 2609 6TH AVENUE NORTH

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September 2, 1997

The city auditor reported that the notice of public hearing on the application by Terrance R. Brenna to move a building from 2030 2nd Avenue North to 2609 6th Avenue North to be used as a garage, had been published and posted as required.

President Hagness called upon the audience to see if there was anyone present who had comments to make on this matter. There were none.

It was moved by Council Member Glassheim and seconded by Council Member Hamerlik that we declare an insufficiency of protest against the application. Carried 11 votes affirmative.

Committee No. 3, Public Service, reported having considered the application for moving permit by Terrance R. Brenna to move garage from 2030 2nd Avenue North to 2609 6th Avenue North, and recommended to approve application subject to meeting Code requirements.

It was moved by Council Member Hafner and seconded by Council Member Beyer that this recommendation be and is hereby approved, and further that Mr. Brenna be and is hereby authorized to move the building. Carried 11 votes affirmative.

APPROVE APPLICATION FOR MOVING PERMIT TO MOVE
BUILDING TO 2308 6TH AVENUE NORTH

The city auditor reported that the notice of public hearing on the application by Bob Brunn to move a building from 132 4th Street NW, East Grand Forks, MN to 2308 6th Avenue North to be used as a garage, had been published and posted as required.

President Hagness called upon the audience to see if there was anyone present who had comments to make on this matter. There were none.

It was moved by Council Member Beyer and seconded by Council Member Sande that we declare an insufficiency of protest against the application for moving permit. Carried 11 votes affirmative.

Committee No. 3, Public Service, reported having consider the application for moving permit by Bob Brunn to move garage from 132 4th Street NW, East Grand Forks, to 2308 6th Avenue North, and recommended to approve application con-tingent upon meeting Code requirements.

It was moved by Council Member Hafner and seconded by Council Member Beyer that this recommendation be and is hereby approved, and further that Mr. Brunn be and is hereby authorized to move the building. Carried 11 votes affirmative.

HEAR APPEAL TO DENIAL OF LICENSE (CONSTRUCTION
WORK PERMIT)

An appeal by Tracy Clary to the denial of a construction work permit by the special licensing office had been requested.

Committee No. 3, Public Service, reported having considered the matter of appeal to denial of license (construction) by Tracy Clary, and recommended to concur with the city attorney in denying the license.

It was moved by Council Member Klave and seconded by Council Member Hafner that this recommendation be and is hereby approved.

The city attorney reported that after reviewing criminal history report and
comparing it to the policy on issuance of licenses/permits, he denied the license and made recommendation to the committee to deny; that in reviewing criminal history review whether theft or burglary offenses or offenses for personal harm
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offenses within the last five to seven years, and this applicant had a series of charges and convictions within that time period, with last conviction June 1997.

Tracy Clary, 701 South 10th Street, stated he wants to work and this is only work he knows how to do, that he hasn't been in any trouble in past four years (last conviction just caught up with him).

Lisa Boldstad, Mr. Clary's supervisor, J & S Construction, Grand Forks, that they would like to have him back to work, one of their best workers, but on job site was courteous and polite to people on job site, worked two and one-half weeks.
Council Member Hamerlik questioned whether workers need license. Mr. Swanson reported that Mr. Clary is applying for a work permit, which has been done since April in conjunction with Attorney General's Office and Secretary of State, etc. and begin issuing work permits to those individuals who go through criminal review process, and have not chosen to issue permit to him, however, that doesn't mean he cannot work for that company or in Grand Forks, but won't issue permit that he has passed review by the City of Grand Forks. Ms. Boldstad stated that she was not aware that an individual could work without a permit. Mr. Swanson stated that the only license they are required to have is a contractor's license which requires bond, workers compensation, insurance, etc., and are finding that most residents are asking to see identification cards from workers as well, that the City does not have ordinance prohibiting him working for this company or any other company without that card providing that he is a Grand Forks resident.

Council Member Beach asked that if work permit not necessary to be employee, what is purpose of the permit. Mr. Swanson reported that the work permit is an identification card only and is identification that worker has gone through criminal background check and an attempt by City, Attorney General's Office and Secretary of States Office to avoid transients coming in to be sure reputable employees. He reported that the actual issuance of permits is being reviewed, staff has dwindled significantly and is something that will be under considera-tion. He also reported that this is for contractors or transient merchants; and that this is providing service for employers and community. He stated this is an i.d. card indicating that the individual does not have a criminal history and residents can rely on that.

After further discussion, and upon call for the question, the motion carried 10 votes affirmative; Council Member Glassheim voted against the motion.

REFER CONSENT AGENDA ITEMS TO COMMITTEE

It was moved by Council Member Hafner and seconded by Council Member Hamerlik that the consent agenda items be referred to committee as noted for their consideration. Carried 11 votes affirmative.

Finance Committee:
1) matter of Comprehensive Annual Financial Report for year ended December 31, 1996.

REPORTS OF OFFICERS

The city auditor's investment summary for period ended August 31, 1997, was presented and read. It was moved by Council Member Sande and seconded by Council Member Klave that this recommendation be and is hereby received and filed. Carried 11 votes affirmative.

APPROVE BILLS

Vendor Payment Listing No. 97-13, dated September 2, 1997, and totaling
$846,357.22, all having been audited by the city auditor for payment in
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accordance with Regulation No. 2, was presented and read.

It was moved by Council Member Carpenter 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 Beach, Polovitz, Hamerlik, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Hafner, Hagness - 11; voting "nay": none. President Hagness declared the motion carried and the bills ordered paid.

INTRODUCE ORDINANCE EXTENDING FRANCHISE
WITH NODAK ELECTRIC COOPERATIVE TO OPERATE
ELECTRICAL DISTRIBUTION SYSTEM

Committee No. 1, Finance, reported having considered the request from Nodak Electric Cooperative for extension of franchise for an electric distribution system, and recommended that we extend the franchise agreement with Nodak Electric Cooperative for a period of twenty years according to the terms of the ordinance and at the same rate, and introduce ordinance for first reading.

It was moved by Council Member Hamerlik and seconded by Council Member Babinchak that this recommendation be and is hereby approved.

Council Member Hafner asked to be excused from voting on this matter. It was moved by Council Members Beach and Glassheim to excuse Council Member Hafner from voting on this matter. Carried 10 votes affirmative.

Upon call for the question and upon voice vote, the motion carried 10 votes affirmative; Council Member Hafner excused from voting on this matter.

Council Member Beyer introduced an ordinance entitled "An ordinance granting an extension to the franchise agreement between the City of Grand Forks and Nodak Electric Cooperative for an electrical distribution system", which was presented, read and passed on its first reading.

SET PUBLIC HEARING ON MATTER OF FINANCING FOR
GRAND FORKS MERCANTILE EXCHANGE (BALTIC, LLP)

Committee No. 1, Finance, reported having considered the matter of financing for Grand Forks Mercantile Exchange (Baltic, LLP), and recommended that we give preliminary approval and authorize staff to finalize negotiations with property owners, and to establish public hearing for September 15.

It was moved by Council Member Hamerlik and seconded by Council Member Babinchak that this recommendation be and is hereby approved. Carried 11 votes affirmative.

INTRODUCE ORDINANCE AMENDING CITY CODE
RELATING TO EXEMPT STATUS OF VARIOUS POSITIONS

Committee No. 1, Finance, reported having considered the matter of exempt status of engineers, and recommended to change the Project Engineer I, Project Engineer II and Sr. Project Engineer from exempt status to non-exempt status, and introduce the ordinance for first reading, and further to include the positions of MIS Manager, Asst. Director of Human Resources, Environmental Coordinator and Asst. Director of Public Works to exempt status, and introduce ordinance for first reading.

Committee No. 3, Public Service, reported having considered the matter of exempt status for various positions, and recommended to change ordinance to include positions in exempt status and delete positions from exempt status as noted and to recommend preliminary approval.
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It was moved by Council Member Hamerlik and seconded by Council Member Babinchak that these recommendations be and are hereby approved. Carried 11 votes affirmative.

Council Member Sande introduced an ordinance entitled "An ordinance amending Section 6-0416(1)(A) of the Grand Forks City Code relating to overtime compensation", which was presented, read and passed on its first reading.

APPROVE REQUEST FROM CENTRAL HIGH SCHOOL
TO HOLD BONFIRE/PEP RALLY ON RIVERFRONT
PARKING LOT

Committee No. 2, Public Safety, reported having considered the matter of request from Central High School to hold bonfire/pep rally on September 17 on riverfront parking lot (behind Lola's), and recommended to approve the request.

It was moved by Council Member Beyer and seconded by Council Member Glassheim that this recommendation be and is hereby approved. Carried 11 votes affirmative.

AUTHORIZE LEFT-TURN AND SENSORS AT 32ND
AVENUE SOUTH AND SOUTH 38TH STREET

Committee No. 2, Public Safety, reported having considered the matter of difficulty in making left turns at 32nd Avenue South and South 38th Street, and recommended to approve installation of a left-turn protected permissive signal light and the appropriate traffic sensors to provide exclusive green time to the east bound left turn traffic movement at this intersection.

It was moved by Council Member Beyer and seconded by Council Member Glassheim that this recommendation be and is hereby approved. Carried 11 votes affirmative.

APPROVE CONTRACT FOR GRAND FORKS SUBSTANCE
ABUSE AND TRAFFIC SAFETY FOR PERIOD ENDING
SEPTEMBER 30, 1998

Committee No. 2, Public Safety, reported having considered the matter of contract for Grand Forks Substance Abuse and Traffic Safety for period October 1, 1997 through September 30, 1998, and recommended to approve the contract as presented.

It was moved by Council Member Beyer and seconded by Council Member Glassheim that this recommendation be and is hereby approved. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Hamerlik, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Hafner, Hagness - 11; voting "nay": none. President Hagness declared the motion carried.

APPROVE GRANT AGREEMENT WITH ND STATE DEPARTMENT
OF HEALTH FOR HEALTH COMMUNITIES GRANT

Committee No. 2, Public Safety, reported having considered the matter of grant agreement with ND State Department of Health for Healthy Communities grant agreement, $4,200, and recommended approval of the grant agreement.

It was moved by Council Member Beyer and seconded by Council Member Glassheim that this recommendation be and is hereby approved. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Hamerlik, Glassheim, Carpenter,
Sande, Klave, Beyer, Babinchak, Hafner, Hagness - 11; voting "nay": none. President Hagness declared the motion carried.

APPROVE BUDGET AMENDMENTS
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A request for budget amendment for the police department in the amount of $3,000 to reflect unanticipated communications and electronics repairs, was presented and read. It was moved by Council Member Beyer and seconded by Council Member Glassheim that this amendment be approved. Carried 11 votes affirmative.

A request for budget amendment for the police department in the amount of $1,220.00 to reflect flood relief donation was presented and read. It was moved by Council Member Beyer and seconded by Council Member Glassheim that this amendment be approved. Carried 11 votes affirmative.

A request for budget amendment for the police department in the amount of $11,834.45 to reflect revenue received from insurance payments for damaged police vehicles, was presented and read. It was moved by Council Member Beyer and seconded by Council Member Glassheim that this amendment be approved. Carried 11 votes affirmative.

A request for budget amendment for the health department in the amount of $2,105.00 to reflect additional Families First monies, was presented and read. It was moved by Council Member Beyer and seconded by Council Member Glassheim that this amendment be approved. Carried 11 votes affirmative.

A request for budget amendment for Communicable Disease in the amount of $5,265.00 to reflect 1996 cash carryover from unexpended grant funds, was presented and read. It was moved by Council Member Beyer and seconded by Council Member Glassheim that this amendment be approved. Carried 11 votes affirmative.

A request for budget amendment for the fire department in the amount of $8,290.00 to reflect cash carryover to purchase vehicle for fire marshal for inspection purposes, was presented and read. It was moved by Council Member Beyer and seconded by Council Member Glassheim that this amendment be approved. Carried 11 votes affirmative.

A request for budget amendment for the health department in the amount of $12,090.00 to reflect new grant from North Dakota Department of Health for Women's Way Program (Breast and Cervical Cancer Screening), was presented and read. It was moved by Council Member Beyer and seconded by Council Member Glassheim that this amendment be approved. Carried 11 votes affirmative.

APPROVE REVISED POTATO BOWL USA PARADE ROUTE

Committee No. 2, Public Safety, reported having considered the matter of Potato Bowl USA parade on September 20, and recommended approval of a revised Potato Bowl parade route, which starts in East Grand Forks across Sorlie Bridge to North 3rd Street, on North 3rd Street to University Avenue, and on University Avenue to the University of North Dakota.

It was moved by Council Member Beyer and seconded by Council Member Glassheim that this recommendation be and is hereby approved. Carried 11 votes affirmative.

APPROVE TRAFFIC SIGNS FOR TEMPORARY BELMONT
SCHOOL

Committee No. 2, Public Safety, reported having considered the matter of signs at temporary Belmont School, and recommended to approve additional traffic changes near temporary Belmont School on 7th Avenue South and South 10th Street,
including installation of stop sign in the alley just east of Williamson Field, no parking on the south side of 7th Avenue South between 9th and 11th Streets, installation of school crossing flashers, and installation of temporary school zone signs until flashers installed.

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It was moved by Council Member Beyer and seconded by Council Member Glassheim that this recommendation be and is hereby approved. Carried 11 votes affirmative.

APPROVE CERTIFICATE OF SUBSTANTIAL COMPLETION,
CHANGE ORDER AND FINAL ESTIMATES FOR PROJECT
NO. 4045, PHASE I, WATER TREATMENT PLANT
MODIFICATIONS

Committee No. 3, Public Service, reported having considered the matter of Project No. 4045, SWTR, Phase I, water treatment plant modifications: a) certificate of substantial completion for contractors; b) change order for Lunseth Plumbing; and c) final estimates for Innes Construction and Hanson Electric, and recommended approval of the certificate of substantial completion; approve change order for Lunseth Plumbing in the amount of $11,840.00; approve change order for Innes Construction in the amount of $3,002.30; and to approve final pay requests from Innes Construction and Hanson Electric.

It was moved by Council Member Klave and seconded by Council Member Hafner that this recommendation be and is hereby approved. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Hamerlik, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Hafner, Hagness - 11; voting "nay": none. President Hagness declared the motion carried.

APPROVE QUIT CLAIM DEED 800 BLOCK OF
1ST AVENUE NORTH (SPUR TRACK EASEMENT)

Committee No. 3, Public Service, reported having considered the matter of quit claim deed for releases of any interest to spur track easement as it relates to Lot 4, Block 2, Renewal Resubdivision, 800 block of 1st Avenue North, for and in consideration of the sum of $1.00, grantee Kenneth C. Inman, and recommended to approve and authorize proper City officials to execute the quit claim deed contingent upon review and approval by the city attorney.

It was moved by Council Member Klave and seconded by Council Member Hafner that this recommendation be and is hereby approved. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Hamerlik, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Hafner, Hagness - 11; voting "nay": none. President Hagness declared the motion carried.

AUTHORIZE PRELIMINARY STUDY TO DETERMINE
MAGNITUDE OF SUMP PUMPS DRAINING INTO
SANITARY SEWERS

Committee No. 3, Public Service, reported having considered the matter of sump pumps draining into sanitary sewer (illegal pumping into sewers), and recommended a preliminary study to determine magnitude of the problem, and further that the City use part-time employees to start the project.

It was moved by Council Member Klave and seconded by Council Member Hafner that this recommendation be and is hereby approved. Carried 11 votes affirmative.

AUTHORIZE SOLICITING OF PROPOSALS TO REVIEW
STORM WATER DRAINAGE ON 10TH AVENUE NORTH (COLUMBIA
ROAD AND COULEE TO WASHINGTON)

Committee No. 3, Public Service, reported having considered the matter of review of storm water drainage on 10th Avenue North - Columbia road and Coulee to Wash-ington (backup around University/13th Avenue North areas), and recommended to solicit proposals to do the study.

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It was moved by Council Member Klave and seconded by Council Member Hafner that this recommendation be and is hereby approved. Carried 11 votes affirmative.

ACCEPT BID FOR TRAFFIC PAINT

Committee No. 3, Public Service, reported having considered the matter of bids for traffic paint, and recommended to accept the bid of Diamond Vogel for 1155 gal. white traffic paint in the amount of $9,216.90 and 1,000 gal. yellow traffic paint in the amount of $7,850.00, for a total of $17,066.90, to be delivered in 55-gal. drums.

It was moved by Council Member Klave and seconded by Council Member Hafner that this recommendation be and is hereby approved. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Hamerlik, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Hafner, Hagness - 11; voting "nay": none. President Hagness declared the motion carried.

ACCEPT BID FOR SNOWBLOWER

Committee No. 3, Public Service, reported having considered the matter of bids for snowblower, and recommended to accept the bid of Stewart & Stevenson for the tractor-mounted blower in the amount of $145,900.00.

It was moved by Council Member Klave and seconded by Council Member Hafner that this recommendation be and is hereby approved. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Hamerlik, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Hafner, Hagness - 11; voting "nay": none. President Hagness declared the motion carried.

APPROVE COMPOSTING STUDY

Committee No. 3, Public Service, reported having considered the matter of composting study, and recommended to approve funding and proceed with the study with KBM, Inc. in the amount of $524,299.00.

It was moved by Council Member Klave and seconded by Council Member Hafner that this recommendation be and is hereby approved.

Jim West, KBM, Inc., reported they have proposed a wastewater treatment solution for the city of Grand Forks and part of that is to deal with sludge which is wastewater to compost that with materials that are currently organic materials that are going into the sanitary landfill waste, that part of the study deals with going into three 100 groups in the city across economic lines and try to source separate the organics from other materials that are in the solid waste materials that now go to the landfill. He stated they are building a pilot composting operation in the Industrial Park that's under contract with a local firm in the amount of $160,000, and the study includes facility and working with the North Dakota State University on agronomy testing of the materials as it applies to agricultural land, and study of up to $124,000 if it takes that amount of money to put the study together. He reported they will be doing the separation source work for at least two years and will be on-line composting for 110 days/year for two years and third year conclusions of the agronomic testing to give summary as to benefits to the community and to agriculture on pulling whole project together.

Mr. West also reported they are dealing with ammonia coming off wastewater
lagoons, and also phase of potential ammonia and gases coming off the landfill if were to take sludges that come off the wastewater treatment and bury in landfill. He noted that they are going into local communities within the city of Grand Forks to develop three one-hundred group areas to determine source separating, the implication of that is see how much machinery they would have to
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have in a complete facility, to reduce cost of public service to a community relative to waste products and what's done with it. He reported that in the facility plan proposed 16 months ago, that they estimated product worth $20/ton, but main part of the study is to prove agriculturally that is possible and to build sustainability between city and agricultural base, and if can end up generating revenue for that compost material and proving that market, and would be able to bring revenue back into city coffers from what is disposal problem. He noted that this study will determine cost of the plant. It was noted that cost of the study is built into our rates.

Upon call for the question and upon roll call vote, the following voted "aye": Council Members Beach, Polovitz, Hamerlik, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Hafner, Hagness - 11; voting "nay": none. President Hagness declared the motion carried.

ADOPT RESOLUTION CREATING ASSESSMENT DISTRICT,
SEWER PROJECT NO. 4469, DISTRICT NO. 386.1

Committee No. 3, Public Service, reported having considered the matter of creating special assessment district for Project No. 4669, Southend Drainway, Phase 1B, Chestnut to Ulland Park, and recommended that we adopt a resolution creating the assessment district, approving the engineer's report, including estimate of cost, an assessment district map, and further that we pass a resolution instructing the city engineer to prepare detailed plans and specifications, and further that we intend to sell bonds to cover the cost.

It was moved by Council Member Klave and seconded by Council Member Hafner that this recommendation be and is hereby approved. Carried 11 votes affirmative.

Council Member Klave introduced the following resolution creating the assessment district, which was presented and read: Document No. 7352 - Resolution.

It was moved by Council Member Klave and seconded by Council Member Hafner that this resolution be and is hereby adopted. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Hamerlik, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Hafner, Hagness - 11; voting "nay": none. President Hagness declared the motion carried and the resolution adopted.

ACCEPT ENGINEER'S REPORT, SEWER PROJECT
NO. 4669, DISTRICT NO. 386.1

The city auditor presented and read the engineer's report on Sewer Project No. 4669, District No. 386.1: Document No. 7353 - Report.

It was moved by Council Member Klave and seconded by Council Member Hafner that this report be and is hereby approved. Carried 11 votes affirmative.

ADOPT RESOLUTION TO PREPARE PLANS AND
SPECIFICATIONS, SEWER PROJECT NO. 4669, DISTRICT
NO. 386.1

Council Member Klave introduced the following resolution to prepare plans and specifications, which was presented and read: Document No. 7354 - Resolution.

It was moved by Council Member Klave and seconded by Council Member Hafner that this resolution be and is hereby adopted. Upon roll call the following voted
"aye": Council Members Beach, Polovitz, Hamerlik, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Hafner, Hagness - 11; voting "nay": none. President Hagness declared the motion carried and the resolution adopted.


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APPROVE PLANS AND SPECIFICATIONS FOR PROJECT
NO. 4439, LIFT STATIONS NO. 38

Committee No. 3, Public Service, reported having considered the matter of plans and specifications for Project No. 4439, Lift Station No. 38, and recommended to approve plans and specifications, and to authorize call for bids.

It was moved by Council Member Klave and seconded by Council Member Hafner that this recommendation be and is hereby approved.

Council Member Beach questioned cost of tapping fees to the City; Mr. Swanson reported that there will not be special assessment but paid at time of develop-ment, annexation or actually tapping into the infrastructure. It was noted that the carrying charge comes out of rate structure of appropriate enterprise fund. Council Beach stated it was good to remind themselves that it is not a free process but a cost that the City bears.

Upon call for the question and upon voice vote, the motion carried 11 votes affirmative.

ADOPT RESOLUTION APPROVING PLANS AND
SPECIFICATIONS, AND ADVERTISEMENT FOR BIDS,
SEWER PROJECT NO. 4682, DISTRICT NO. 390

The city engineer's estimate of total cost of the construction of sanitary sewer on 24th Avenue South from 40th to 42nd Streets in the amount of $ , was presented and read.

Committee No. 3, Public Service, reported having considered the matter of plans and specifications for Project No. 4682, District No. 390, sanitary sewer on 24th Avenue South from 40th to 42nd Street, and recommended that we pass a resolution approving the plans and specifications for this construction and further that the city auditor be directed to advertise for bids on the project.

It was moved by Council Member Klave and seconded by Council Member Hafner that this recommendation be and is hereby approved. Carried 11 votes affirmative.

Council Member Klave introduced the following resolution which was presented and read: Document No. 7355 - Resolution.

It was moved by Council Member Klave and seconded by Council Member Hafner that this resolution be and is hereby adopted. Carried 11 votes affirmative.

ADOPT RESOLUTION APPROVING PLANS AND
SPECIFICATIONS, AND ADVERTISEMENT FOR BIDS,
WATERMAIN PROJECT NO. 4683, DISTRICT NO. 257

The city engineer's estimate of total cost of the construction of watermain on 24th Avenue South from 40th to 42nd Streets in the amount of $ , was presented and read.

Committee No. 3, Public Service, reported having considered the matter of plans and specifications for Project No. 4683, District No. 257, watermain on 24th Avenue South from 40th to 42nd Street, and recommended that we pass a resolution approving the plans and specifications for this construction and further that the city auditor be directed to advertise for bids on the project.

It was moved by Council Member Klave and seconded by Council Member Hafner that this recommendation be and is hereby approved. Carried 11 votes affirmative.

Council Member Klave introduced the following resolution which was presented and
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read: Document No. 7356 - Resolution.

It was moved by Council Member Klave and seconded by Council Member Hafner that this resolution be and is hereby adopted. Carried 11 votes affirmative.

RECEIVE TABULATION OF BIDS, ESTIMATE OF
TOTAL COST, AND AWARD CONTRACT, WATERMAIN
PROJECT NO. 4658, DISTRICT NO. 255

The city auditor presented and read tabulation of bids which had been received and opened on Monday August 25, 1997 for Watermain Project No. 4658, District No. 255, watermain in Johnson's 4th Addition, indicating that Robert Gibb & Sons, Inc. was low bidder based upon their bid in the amount of $66,311.00: Document No. 7357 - Bid Tabulation.

The city engineer's estimate of total cost on Watermain Project No. 4658, District No. 255, in the amount of $ , was presented and read.

Committee No. 3, Public Service, reported having considered the matter of bids for Project No. 4658, District No. 255, watermain in Johnson's 4th Addition, and recommended to accept the low bid of Robert Gibb & Sons, Inc. in the amount of $66,311.00.

It was moved by Council Member Klave and seconded by Council Member Hafner that this recommendation be and is hereby approved. Carried 11 votes affirmative.

Council Member Klave introduced the following resolution which was presented and read: Document No. 7358 - Resolution.

It was moved by Council Member Klave and seconded by Council Member Hafner that this resolution awarding the contract for Watermain Project No. 4658, District No. 255, to Robert Gibb & Sons, Inc. be and is hereby adopted. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Hamerlik, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Hafner, Hagness - 11; voting "nay": none. President Hagness declared the motion carried and the resolution adopted.

RECEIVE TABULATION OF BIDS, ESTIMATE OF
TOTAL COST, AND AWARD CONTRACT, SEWER
PROJECT NO. 4659, DISTRICT NO. 389

The city auditor presented and read tabulation of bids which had been received and opened on Monday August 25, 1997 for Sewer Project No. 4659, District No. 389, storm sewer in Johnson's 4th Addition, indicating that Molstad Excavating, Inc. was low bidder based upon their bid in the amount of $128,550.00: Document No. 7359 - Bid Tabulation.

The city engineer's estimate of total cost on Sewer Project No. 4659, District No. 389, in the amount of $ , was presented and read.

Committee No. 3, Public Service, reported having considered the matter of bids for Project No. 4659, District No. 389, sewer in Johnson's 4th Addition, and recommended to accept the low bid of Molstad Excavating, Inc. in the amount of $128,550.00.

It was moved by Council Member Klave and seconded by Council Member Hafner that this recommendation be and is hereby approved. Carried 11 votes affirmative.

Council Member Klave introduced the following resolution which was presented and read: Document No. 7360 - Resolution.

It was moved by Council Member Klave and seconded by Council Member Hafner that
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this resolution awarding the contract for Sewer Project No. 4659, District No.
389, to Molstad Excavating, Inc. be and is hereby adopted. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Hamerlik, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Hafner, Hagness - 11; voting "nay": none. President Hagness declared the motion carried and the resolution adopted.

ACCEPT BIDS AND AWARD CONTRACT FOR SANITARY
SEWER, WATERMAIN AND STORM SEWER IN CONGRESSIONAL
2ND RESUBDIVISION, PROJECTS NOS. 4672, 4673 AND 4674

Committee No. 3, Public Service, reported having considered the matter of bids for Project No. 4672, sanitary sewer in Congressional 2nd Resubdivision, Project No. 4673, water in Congressional 2nd Resubdivision, and Project No. 4674, storm sewer in Congressional 2nd Resubdivision, and recommended that we accept the low bid of Molstad Excavating, Inc. in the amount of $1,464,890.00.

It was moved by Council Member Klave and seconded by Council Member Hafner that this recommendation be and is hereby approved. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Hamerlik, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Hafner, Hagness - 11; voting "nay": none. President Hagness declared the motion carried.

ACCEPT BIDS AND AWARD CONTRACT FOR SANITARY
SEWER, WATERMAIN AND STORM SEWER IN CONGRESSIONAL
1ST RESUBDIVISION, PROJECTS NOS. 4677, 4678 AND 4679

Committee No. 3, Public Service, reported having considered the matter of bids for Project No. 4677, sanitary sewer in Congressional 1st Resubdivision, Project No. 4678, water in Congressional 1st Resubdivision, and Project No. 4679, storm sewer in Congressional 1st Resubdivision, and recommended that we accept the low bid of ICS, Inc. in the amount of $741,885.00.

It was moved by Council Member Klave and seconded by Council Member Hafner that this recommendation be and is hereby approved. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Hamerlik, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Hafner, Hagness - 11; voting "nay": none. President Hagness declared the motion carried.

APPROVE CHANGE IN USE OF HUMAN NEEDS FUNDS

Committee No. 4, Urban Development, reported having considered the matter of request for change of use of Human Needs funds by Red River Valley Community Action Agency, and recommended approval of the change in use of Human Needs funds.

It was moved by Council Member Polovitz and seconded by Council Member Beach that this recommendation be and is hereby approved. Carried 11 votes affirmative.

RECESS

President Hagness called a five-minute recess at 7:55 p.m. The council reconvened at 8:00 p.m. with all members present.

RECONSIDER MATTER OF DEVELOPMENT/RENEWAL
AREA FOR USE AND BENEFIT OF ECOLAB AND
ADOPT RESOLUTIONS AUTHORIZING ISSUANCE OF
GENERAL OBLIGATION TAX INCREMENT BONDS, AND
RESOLUTION CREATING A DEVELOPMENT/RENEWAL
AREA WITHIN THE CITY PURSUANT TO THE NORTH
DAKOTA URBAN RENEWAL LAW ON BEHALF OF ECOLAB, INC.

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September 2, 1997

Council Member Carpenter asked for reconsideration of the issue relating to the consideration of a development or renewal area for the use and benefit of Ecolab; Council Member Sande seconded the motion. Carried 11 votes affirmative.

Council Member Carpenter stated that because of timeframes may have to move quicker on this matter than anticipated and because of Ecolab's commitments.

The city auditor reported that there were two resolutions for consideration of council: one creating a development or renewal area within the city pursuant to ND Urban Renewal Law on behalf of Ecolab, Inc.

Council Member Carpenter introduced the following resolution (Initial Resolution Authorizing Issuance of General Obligation Tax Increment Bonds) and moved its adoption: Document No. 7361 - Resolution.

Dana Marsden, 3749 20th Avenue South, assistant controller for Ecolab Pest Elimination based in Grand Forks, said reason they want to emphasize this approval is that they cannot begin construction of the facility until public hearing is closed and because of the season believe it's important that they start construction as soon as possible and there are some executives in St. Paul waiting for result of this meeting tonight, and is important to deliver that message tonight or project may suffer some risk. He stated that he is asking that the appropriate resolutions be approved simply to allow them to proceed with construction. Mr. Swanson reported that this resolution creates the district which is first step before moving forward with any tax increment financing. He stated that the second estimate will get into more of the details.

The motion for the adoption of the foregoing resolution was duly seconded by Council Member Beyer, and upon vote being taken thereon, the following voted in favor: Council Members Beach, Polovitz, Hamerlik, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Hafner, Hagness - 11; and the following voted against the same: none; whereupon the resolution was declared passed and adopted and was signed by the mayor and her signature attested by the city auditor.

The city auditor presented the initial resolution authorizing issuance of general obligation tax increment bonds up to $400,000.

Council Member Carpenter introduced the following resolution (Resolution Creating a Development or Renewal Area within the City pursuant to the North Dakota Urban Renewal Law on behalf of Ecolab, Inc.) and moved its adoption (and that all appropriate documents first be executed): Document No. 7362 - Resolution.

The motion for the adoption of the foregoing resolution was duly seconded by Council Member Beyer and upon vote being taken thereon, the following voted in favor: Council Members Beach, Polovitz, Hamerlik, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Hafner, Hagness - 11; and the following voted against the same: none; whereupon the resolution was declared passed and adopted and was signed by the Mayor and her signature attested by the city auditor.

Mr. Swanson reported that there is under North Dakota law a sixty-day period for additional protest to the issuance of bonds that can be issued, and Ecolab should be aware that funding won't be available for at least sixty days.

APPROVE RECOMMENDATION TO STATE HEALTH
DEPARTMENT TO WITHDRAW ITS PERMIT FOR BURNING
AT LOCATION IN RESIDENTIAL DISTRICT WITHIN
THE CITY

The Planning and Zoning Commission reported having considered the matter of request from South Belmont Road property owners to stop the industrial land use (hauling and burning of demolished flood damaged structures) in a residential
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district (Shady Ridge Estates property) within the city limits (located north of Adams Drive and west of Desiree Circle, and recommended that the use of the air-curtain destructor and burn pit at this location is inconsistent with the permanent zoning and recommended to the State Health Department that it withdraw its permit for operation of an air-curtain destructor and burning at the location and further request post-event sampling and testing.

It was moved by Council Member Sande and seconded by Council Member Hafner that this recommendation be and is hereby approved.

Mr. Swanson reported that this operation is not a city operation, operation conducted under purview of Army Corps of Engineers and under permit issued by the State Health Department, it would be up to contractor to meet requirements of State Health Department would issue. He reported that the finding by the Planning and Zoning Commission is not prevention of a burning but only at this site and would have the availability to relocate facility. He reported that the majority of the demolition that Army Corps of Engineers responsible for has been completed, but not aware of burning.

Upon call for the question and upon voice vote, the motion carried 11 votes affirmative.

APPROVE FINAL PLAT OF BFM 6TH RESUBDIVISION

The Planning and Zoning Commission reported having considered the matter of the request from Paul H. Marchell on behalf of First State Bank of Buxton, North Dakota for final approval of the plat of BFM 6th Resubdivision, being a replat of a portion of BFM 4th Resubdivision to the city of Grand Forks, North Dakota (located in the northwest corner of 32nd Avenue South and South 25th Street), and recommended final approval subject to special conditions shown on or attached to the review copy.

It was moved by Council Member Sande and seconded by Council Member Hafner that this recommendation be and is hereby approved. Carried 11 votes affirmative.

APPROVE FINAL PLAT OF BALTIC FIRST RESUBDIVISION

The Planning and Zoning Commission reported having considered the matter of the request from Steve Melby on behalf of Baltic Avenue Partnership and Grand Forks Chamber of Commerce for final approval of the plat of Baltic First Resubdivision (being a Replat of a portion of Auditor's Resubdivision No. 17 and the Original Townsite) to the city of Grand Forks, North Dakota (located northeast of North 3rd Street between 2nd and 3rd Avenues North), and recommended final approval subject to special conditions shown on or attached to the review copy.

It was moved by Council Member Sande and seconded by Council Member Hafner that this recommendation be and is hereby approved. Carried 11 votes affirmative.

APPROVE MINOR SUBDIVISION OF REPLAT OF
LOTS 2 AND 3, BLOCK 1, MEDVUE ESTATES 6TH
RESUBDIVISION

The City Planning and Zoning Commission reported having considered the matter of the request from Branden Bartholomew on behalf of tracy Doe for final approval (fast track) of a minor subdivision being a Replat of Lots 2 and 3, Block 1, Medvue Estates Sixth Resubdivision to the city of Grand Forks, ND (located in the 2800 block of Knight Drive), and recommended final approval subject to special conditions shown on or attached to the review copy.

It was moved by Council Member Sande and seconded by Council Member Hafner that this recommendation be and is hereby approved. Carried 11 votes affirmative.
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September 2, 1997

APPROVE FINAL PLAT OF REPLAT OF PORTION OF
COLUMBIA MALL 5TH RESUBDIVISION

The City Planning and Zoning Commission reported having considered the matter of the request from KBM, Inc. on behalf of Metropolitan Life Insurance Company for final approval (fast track) of Columbia Mall 5th Resubdivision to the city of Grand Forks, ND, being a replat of a portion of Columbia Mall Addition (located in the northwest corner of 32nd Avenue South and the westernmost access road into Columbia Mall), and recommended final approval subject to special conditions shown on or attached to the review copy.

It was moved by Council Member Sande and seconded by Council Member Hafner that this recommendation be and is hereby approved. Carried 11 votes affirmative.

INTRODUCE ORDINANCE AMENDING STREET AND
HIGHWAY PLAN TO INCLUDE THE PUBLIC R/W SHOWN
AS DEDICATED ON THE PLAT OF BIRKHOLZ 6TH ADDITION

The City Planning and Zoning Commission reported having considered the matter of the request from Wayne N. Stark on behalf of 1600 Central Avenue partnership for preliminary approval of the plat of Birkholz 6th Addition to the city of Grand forks, North Dakota (located in the northeast corner of the intersection of South 42nd Street and 24th Avenue South), and recommended preliminary approval subject to special conditions shown on or attached to the review copy, to introduce the ordinance amending the Street and Highway Plan and to set the date of the public hearing for September 15, 1997.

It was moved by Council Member Sande and seconded by Council Member Hafner that this recommendation be and is hereby approved. Carried 11 votes affirmative.

Council Member Beyer introduced an ordinance entitled "An ordinance to amend the Street and Highway Plan of the city of Grand Forks, North Dakota, to include the public rights of way shown as dedicated on the plat of Birkholz 6th Addition to the city of Grand Forks, North Dakota", which was presented, read and passed on first reading.

AUTHORIZE ADDITIONAL DEBRIS REMOVAL

The Flood Response Committee reported having considered the matter of debris removal and recommended that we go ahead with a second pass through the city.

It was moved by Council Member Polovitz and seconded by Council Member Glassheim that this recommendation be and is hereby approved. Carried 11 votes affirmative.

The Flood Response Committee reported having considered the matter of debris removal and recommended that we accept staff recommendations as follows: 1) the City authorizes the debris removal contractor to begin the final pass through the city on September 8; 2) for non-flood related debris, a notice be given that to remove debris, the owner will need to contact sanitation or a private hauler and pay appropriate fees; 3) the City set dates by which flood debris be deposited for final pass; after which all debris will be subject to fee removal by the sanitation department (September 8 was chosen); and 4) begin media notification of the item for public dissemination.

It was moved by Council Member Polovitz and seconded by Council Member Glassheim that this recommendation be and is hereby approved.

It was reported by Al Grasser, asst. city engineer, that they will break city into three areas to do removal.

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September 2, 1997

Upon call for the question and upon voice vote, the motion carried 11 votes
affirmative.

AUTHORIZE ENGINEERING DEPARTMENT TO PROCEED
WITH ALL FLOOD HAZARD MITIGATION PROJECTS

The Flood Response Committee reported having considered the matter of flood hazard mitigation projects, and recommended that they give the engineering department authority to proceed on all of these projects and to try and get as many as they can get done before April of 1998.

It was moved by Council Member Polovitz and seconded by Council Member Glassheim that this recommendation be and is hereby approved. Carried 11 votes affirma-tive.

APPROVE ARCHITECTURAL AGREEMENT FOR SENIOR
CITIZENS CENTER

The Flood Response Committee reported having considered the matter of architectural agreement for Senior Citizens Center, and recommended that we approve the architectural contract with Schoen associates, Inc. for the Senior Citizens Center for the hourly fees and terms as presented.

It was moved by Council Member Polovitz and seconded by Council Member Glassheim that this recommendation be and is hereby approved. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Hamerlik, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Hafner, Hagness - 11; voting "nay": none. President Hagness declared the motion carried.

AUTHORIZE PROCEEDING WITH VOLUNTARY
RELOCATION PROGRAM

The Flood Response Committee reported having considered the matter of voluntary relocation program, and recommended that we proceed with program as presented with a $60,000 cap.

It was moved by Council Member Polovitz and seconded by Council Member Glassheim that this recommendation be and is hereby approved. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Hamerlik, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Hafner, Hagness - 11; voting "nay": none. President Hagness declared the motion carried.

AUTHORIZE PURCHASE OF BUILDING TO SERVE AS
FAMILY CENTER FOR "FIRST SEASON PARK" RESIDENTS

The Flood Response Committee reported having considered the matter of authoriza-tion to purchase building to serve as a family center for "First Season Park" residents, and recommended that we proceed with the purchase and allocate up to $1.55 million for the purchase and renovation of the building.

It was moved by Council Member Polovitz and seconded by Council Member Glassheim that this recommendation be and is hereby approved.

Terry Bjerke, 5356 5th Avenue North, stated he didn't think it was responsibility of government to be entertaining people, esp. FEMA money which should be for disaster, that the more land and buildings the City acquires, the more land, etc. off the tax roles, and private citizens have more taxes to pay. He also noted that the more land and buildings acquired mean more maintenance; that as Park and School also acquires more land, more maintenance which affects citizens; that private citizens are concerned about potential property taxes in near future, esp. after seeing federal government money gone. He stated that this building
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September 2, 1997

is only going to be for that purpose for approx. one year and asked whether City
bus could provide transportation to those people, and can't people provide their own entertainment. He stated he didn't think this was necessary project for the government to be involved in, and asked what the building would be used for in the future; that he doesn't think this is a wise use of money.

Council Member Beyer stated that she thinks this is a necessity; that the building is located in the Industrial Park and when not needed, that building could be sold to private business, etc. Council Member Glassheim reported that he understood intent is that building would become new industrial space on lease basis for businesses coming in.

Upon roll call the following voted "aye": Council Members Beach, Polovitz, Hamerlik, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Hafner, Hagness -11; voting "nay": none. President Hagness declared the motion carried.

AUTHORIZE PROCEEDING WITH VOUCHER PROGRAM

The Flood Response Committee reported having considered the matter of voucher program, and recommended that we proceed with program as presented, except change the deadline date to August 30, 1998.

It was moved by Council Member Polovitz and seconded by Council Member Glassheim that this recommendation be and is hereby approved.

Jerry Tuchscherer, rep. Grand Forks Board of Realtors, asked that the council create an equitable system and that he wanted to raise some questions in the council's minds. He stated that the voucher system as drafted is $15,000 for new homes and $10,000 for existing houses; and asked if those who have already purchased homes qualify. (It was noted that they will qualify). He stated that the concern that he has is that there are 8,000 other home owners who had damages to their property, had to borrow to equity in their property, they are having challenges, but need to look at balance of 8,000 home owners and find out what needs they have and if there is something that can be done for the whole community. He stated that another thing they have to look at is inventory and what's going on in the housing market. He reported they have 291 homes for sale which is largest inventory of houses for sale for ten years, that 56 under $60,000, 134 houses from $60,000 to $100,000, and 101 over $100,000, and what is happening to market today, that in last two weeks 20% of existing homes for sale
dropped in price, that he went to assessing department and asked if they dropped value of existing properties, what happens to tax base - $28 million tax base and in order to replace that, have to build 210 homes at $130,000/ea. and concern is to monitor what's going on with existing housing inventory so don't destroy existing market. He stated that by destroying existing market they could fall into this, if own home for short time period have 5-10-15% equity and during flood borrowed from SBA to pay for repairs, so now have zero equity or no equity, and if existing values drop even more, creates tough situation for lot of people.

Mr. Tuchscherer stated he also wanted to discuss rental market, no discussion in voucher system to help non-owner occupied, all assistance is for owner-occupied, but maybe should be considered in the voucher program; should talk and keep investor's money in town or say goodbye. He stated that if they look at $15,000 voucher system times 600 potential buyouts, that's $9 million, and had $3 million for 8,000+ units, what's equitable.

Mr. Tuchscherer stated the last item he wished to bring up was the infrastructure system, that it costs money for that, but engineering department stated that if they want to start new lot or development in town, where would you go?; that currently entire infrastructure of the city or majority is in use or under development plans, and approx. 100 lots for sale, so have to look at
infrastructure system, that need to look at infrastructure system and need to
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September 2, 1997

work with free enterprise system, private builders and developers have special skills and tasks that can be used for benefit of city and if work together as team and do equitably, Grand Forks has chance to grow and prosper.

Upon roll call the following voted "aye": Council Members Beach, Polovitz, Hamerlik, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Hafner, Hagness - 11; voting "nay": none. President Hagness declared the motion carried.

MATTER OF NATIONAL LEAGUE OF CITIES
CONVENTION

President Hagness reported that the National League of Cities Convention will be held in Philadelphia on December 2-6, 1997 and that they need to decide which two council members will be attending the Convention, Council Members Hamerlik and Carpenter both suggested that they would be able to attend, and Council Member Beach also volunteered to attend. The members' names will be forwarded to the Mayor's Office for decision as to who will attend.

APPROVE APPOINTMENTS TO HISTORIC PRESERVATION
COMMISSION

President Hagness announced the appointment of the following individuals to the Historic Preservation Commissions for two-year terms expiring in July, 1999: Alan Dostert, Beth Bouley, Marsha Gunderson, Tracy Doe, Ted Jellif, David Thompson and Council Member Beach; and also to appoint Dale Sickels to fill the unexpired term of Lonnie Laffen, and asked for concurrence in these appointments. It was moved by Council Member Babinchak and seconded by Council Member Klave that these appointments be and are hereby approved. Carried 11 votes affirmative.

APPROVE ESTIMATES, VARIOUS PROJECTS

Estimate Summary Nos. 303 and 304, dated August 31, 1997 and totaling $2,662,825.44 for construction projects, and $988,337.74 for flood bills, totaling $3,651,163.18, were presented and read.

It was moved by Council Member Beyer and seconded by Council Member Klave that these estimates be and are hereby approved and that the city auditor be and is hereby authorized to issue warrants in payment of the same.

Council Member Babinchak asked that she be allowed to abstain from voting on any payments to Duckstad Contracting. It was so moved by Council Member Beyer and seconded by Council Member Glassheim. Carried 10 votes affirmative.

Upon call for the question and upon roll call vote, the following voted "aye": Council Members Beach, Polovitz, Hamerlik, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak (except any estimates from Duckstad Contracting, Inc.), Hafner, Hagness - 11; voting "nay": none. President Hagness declared the motion carried.

APPROVE CERTIFICATES OF COMPLETION, VARIOUS
PROJECTS

A communication was presented and read from the city engineer certifying that the contractor had successfully completed the construction of Sewer Project No. 4523 Project No. 377, in a satisfactory manner, and recommending acceptance by the council.

It was moved by Council Member Sande and seconded by Council Member Beyer that this recommendation be and is hereby approved. Carried 11 votes affirmative.


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September 2, 1997

APPROVE VARIANCE TO NOISE ORDINANCE FOR SIGMA
CHI FRATERNITY ON SEPTEMBER 5, 1997

The city auditor presented and read communication from Sigma Chi Fraternity for variance to the noise ordinance on September 5, 1997 for non-alcoholic rush function with a live band for a period from 6:00 p.m. to 11:00 p.m., with a security detail on duty for the duration of the function. It was moved by Council Member Hafner and seconded by Council Member Glassheim that this request be approved. Carried 11 votes affirmative.

ACCEPT PRELIMINARY BUDGET FOR 1998

The Committee of the Whole reported having considered the matter of preliminary budget for 1998, and recommended to accept the budget as submitted.

It was moved by Council Member Hagness and seconded by Council Member Hamerlik that this recommendation be approved.

The city auditor reported that since the committee of the whole made their recommendation, there have been several proposed changes as follows:

1) a decrease in the health insurance premiums for the health department of $10,049
2) elimination of the Youth Commission from Mayor's budget - $37,000
3) addition of data input position in engineering department - $5,460
4) addition of maintenance for Emergency Management - $7,414; with a decrease in the General Fund of $34,175
5) increase operating transfers out for sanitation for landfill project of $760,000 (with funds coming from reserve account)
6) decrease in landfill capital project for 1998 - $1,740,000
7) increase Debt Service (anticipated new issues) - $399,249
for change in expenditure total from $147,313,494 at Committee of Whole meeting to $146,698,568

It was moved by Council Member Carpenter and seconded by Council Member Beyer that the budget be amended to include these items. Carried 11 votes affirmative.

Council Member Carpenter reported he had expressed concern at the committee of the whole meeting re. depletion of cash balance, affect on 1998 and 1999 budgets and potential of increase in mill levy of one or two mills, thinks that appropriate to do and would minimize some of the damage to the cash balance and reduce what could be dramatic increases down the road, that the School District is not going to be increasing mill levy this year, County may not, and would be appropriate if City increased mill levy by about two mills this year, which would have an impact of $4-5.00 on $90,000 house on individual taxpayer but can help us in making up in small bites. Council Member Carpenter moved an amendment to the budget to increase the General Fund mill levy from 79.01 to 81.01 with the proceeds to increase ending cash balance. Council Member Sande seconded the motion.

Council Member Hamerlik expressed concern that everyone expending additional out of pocket expenses and in another year or two may not experience same expenses, and as we try to encourage people to remain in Grand Forks, seems maybe let that go one year and may not need to increase that much. Council Member Carpenter reported that those paying this amount would be people whose value of their homes did not go down because they suffered damage, but would be paid by those whose property value didn't go down, because those with damage will receive property damage and taxes would be down from previous year. He reported that if the City didn't start to meet that deficiency, will be coming in 1999 or 2000 where have to cover $500,000 shortfall and have to start building back cash balance because bonding agencies aren't going to continue to allow us to stay down at 10% for on-
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going period of time, have to fund shortfall and cash balance, which is going to be significant. He started that $4.45 on $90,000 house is prudent start to keep City's financial status in good shape.

Council Member Beach reported that others than home owners pay taxes, businesses and rental places as well, and would like to hold this year, and build up balance in future years. Council Member Hamerlik started that this year's taxes won't be much difference, but next year's may.

After further discussion and upon call for the question, the motion carried.

Council Member Glassheim asked for explanation of cut in Community Relations Officer, Youth Commission and also zero expenditures for Mall expenses. It was noted that the Mayor had made the proposals to cut the Community Relations Officer and Youth Commission and was made after discussion with Budget Framework Committee and in looking at trying to maintain budget with basic city services, and the reason that there is not a Mall Authority budget is because no value and no ability to assess and collect from properties; if Mall remained and an assessment of operating costs, could amend budget to cover that.

Council Member Glassheim stated they were cutting services when needed most, and moved that we restore as follows: $50,000 to Human Needs, $30,000 to Promotions, $20,000 to the Bus and $15,000 to the Youth Commission from internal rearrange-ment of the budget; the motion died for lack of a second.

The city auditor reported that in the 1999 projected budget, may put back Human Needs and Promotions in that budget, that one of the reasons in looking at the CDBG funds and there are always requests that come for these additional amounts, and one of the line items is a public service amount in the amount of half million dollars that these entities would be able to apply for, and the funding of Youth Commission in the 1997 budget was subject to review for 1998 and subject to their funding through alternative grants and was not unan-ticipated deduction in the budget. He stated that they have been instructed to contact other foundations or were hoping to propose some other alternatives for funding these entities.

Upon call for the question on the motion to approve the preliminary budget, as amended, and upon roll call vote, the following voted "aye": Council Members Beach, Polovitz, Hamerlik, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Hafner, Hagness - 11; voting "nay": none. President Hagness declared the motion carried and the preliminary budget approved.

POSTPONE VICTORY REHAB PROGRAM AND HOME IMPROVEMENT
PROGRAM TO SEPTEMBER 15, 1997 MEETING

The Flood Response Committee reported having considered the matter of Victory Rehab Program and the Home Improvement Program, recommended to give preliminary approval in concept and direct staff to provide detailed draft of documents.

It was moved by Council Member Glassheim and seconded by Council Member Polovitz that this recommendation be and is hereby approved.

Council Member Carpenter expressed some concerns about programs re. costs associated with the Home Improvement Program of the program, that they are anticipating 1800 homes at a max. of $15,000/ea. which is over $27 million plus an additional outside improvements program of $2500 and talking significant amount of money but not sure what other demands on the CDBG funds are going to be, and if an appropriate level of funding for this part of housing, and not ready to commit this amount of money to this program, but concerned about total fiscal note and whether best usage of the funds.

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John O'Leary, executive director of Urban Development, reported that if they divide this proposal into two categories: first one are all those who have signed up for voluntary acquisition who are not in the 100-year flood plain, that they have attempted to deal with that group of individuals by following a flow chart, first having City do an inspection of the homes to see if they are rehabable or not, if it is repairable refer client to Victory group which is the volunteer group, they would figure out work write-up so proceed on work and on those can't do, would refer back to the City; if house not repairable, would proceed with acquisition of the property with property owner to have lot, etc. and if didn't want to rebuild on same lot, eligible for voucher system which was approved earlier tonight. He reported that the other program is a program designed to assist lower income families and individuals with cost associated with repairing their homes; he stated they won't know fiscal note which is much larger, and also difficult to know that until advertise program and get people signed up for this program but need to know what program is going to cost. He reported that individuals have until September 12 on first program to sign up (those with more than 50% more damage to their homes), and believes program before council addressed that group pretty adequately - if repairable, try to fix, and if not repairable, give fair buyout offer, acquire lot and allows home owner to move on or gives them opportunity to rebuy lot. He reported that this group includes about 100+ and may increase, that they will advertise this week, but feels is a number they can manage.

There was some discussion re. acquisition of lot, buying only house and not lot, but Mr. O'Leary stated Mr. Swanson has some concerns re. mortgages, etc. and would follow same guidelines as for other buyout programs. Mr. Swanson reported that along with concerns raised by Mr. O'Leary, acquiring structure as well as lot, and then returning lot under our Code the sale of City property has to be done by public sale, and questioned why purchase lot if property owner rebuild on same lot, and could be predetermine whether property owner would want to rebuild on the same lot.

After further discussion it was moved by Council Member Beyer and seconded by Council Member Hafner to postpone this matter until the September 15 council meeting. Carried 11 votes affirmative.

RECEIVE AND FILE MATTER OF LETTER RE.
WESTSIDE DIVERSION

Mrs. Sue Ellen Bateman, Route 1, County Road 32, presented letter concerning the westside diversion and read letter asking that it be entered into the record: Document No. 7363 - Communication.

It was moved by Council Member Beyer and seconded by Council Member Babinchak to receive and file the communication. Carried 11 votes affirmative.

REFER VARIOUS ITEMS TO COUNCIL/COMMITTEE

Various items were presented to the council and or referred committee as follows:
1) Council Member Glassheim presented communication re. charges for industrial dumpster for flood clean-up from Fine Print of Grand Forks, Inc.; President Hagness referred this matter to the public service committee for consideration.
2) Council Member Glassheim presented matter of lot sold by Habitat and use of funds; President Hagness referred the matter to the urban development committee for consideration.
3) Council Member Glassheim presented matter of request for two lots for Habitat for 1998; President Hagness referred the matter to the urban development committee for consideration.
4) Council Member Glassheim asked for process for calling for election; President Hagness referred the matter to the finance committee.
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ADJOURN

It was moved by Council Member Hamerlik and seconded by Council Member Beach that we do now adjourn until Monday, September 15, 1997 at 7:00 p.m. Carried 11 votes affirmative.

Respectfully submitted,



John M. Schmisek
City Auditor

Approved:

Thomas M. Hagness, President of
Council and Acting Mayor