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PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF GRAND FORKS, NORTH DAKOTA
Monday, December 1, 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 Monday, December 1, 1997 at the hour of 7:00 p.m. with Mayor Owens presiding. Present at roll call were Council Members Beach, Polovitz, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Bakken, Hafner, Hagness - 14; absent: none.

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

RECOGNIZE MARK NELSON, INTERIM POLICE CHIEF

Capt. Mark Nelson, North Dakota State Highway Patrol, and Field Representative Doyle Schultz were present. Mayor Owens stated that Capt. Nelson has been our interim chief since the retirement of Chester Paschke; Commander Schultz read a letter of commendation from Col. Hughes stating that letter was on behalf of the North Dakota Highway Patrol and the citizens of North Dakota recognizing Capt. Nelson's outstanding efforts and dedication and duty as commander of the Highway Patrol District 4 while at the same time assisting the mayor and citizens of the city of Grand Forks as their interim police chief.

Mayor Owens stated that Capt. Nelson has done an outstanding job for the city and thanked the Governor and Highway Patrol for allowing him to serve as interim chief, that he is a true professional and presented Capt. Nelson with a small token of appreciation (plaque, with official badge, with sincere appreciation for his dedicated professional services to the city of Grand Forks from August 1997). Capt. Nelson stated that as a member of the community, he was impressed with the police department and personnel they have, that the staff in place allowed him to do both jobs, that one person could not have done both jobs without an excellent staff and thanked them.

Mayor Owens introduced John Packett, new police chief, who will be starting December 15, 1997.

POSTPONE ORDINANCE RELATING TO PENALTIES FOR
PARKING VIOLATIONS

An ordinance entitled An ordinance amending Article ---, Chapter VIII of the Grand Forks city Code relating to penalties for parking violations", which had been introduced and passed on its first reading on November 17, 1997, was presented and read for consideration.

Council Member Sande reported that they do not have the final draft ordinance and would like to hold for two weeks, and moved to postpone ordinance until December 15, 1997; Council Member Glassheim seconded the motion. Carried 14 votes affirmative.

ADOPT ORDINANCE NO. 3688, RE. GRAND FORKS
GROWTH FUND AND ESTABLISHMENT OF DOWNTOWN
DEVELOPMENT COMMISSION

An ordinance entitled "An ordinance amending Section 24-0108 and adopting Section 24-0108.1 of the Grand Forks City Code relating to the Grand Forks Growth Fund and the establishment of the Downtown Development Commission", which had been introduced and passed on its first reading on November 17, 1997, was presented and read for consideration on second reading and final passage.

Council Member Carpenter stated that there is an issue that is not addressed,
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that we have Mall Authority and Parking Authority, and now have the Downtown Development Commission, and asked if there was a way of disbanding those two entities by rolling them into this entity to do all functions.

Howard Swanson, city attorney, stated that the difficulty comes in that the Growth Fund is under North Dakota law, an enterprise and would not have the authority to spread special assessments or the assessments that the Central Business District Authority has for purposes of their parking. He stated they did not find an avenue for the Growth Fund or Jobs Development Authority to undertake that activity as long as a portion of the revenues supporting the Parking Authority came from special assessments. He stated they presented in committee several ideas that would have done away with the special assessments, either for the Mall or the Parking, but at this point he thinks that the committee was of the opinion that they wanted to study those possibilities and move forward with the creation of the commission at this time.

Council Member Carpenter stated that if they have to keep the entities they may want to reconstitute those bodies so have same membership and would know who's accountable for dealing with the downtown.

There was some review of the ordinance requirements. Mr. O'Leary reported that the corporate center would be owned by the Jobs Development Authority (which is the Growth Fund or members of the city council) and won't be under the control of the DDC. Mr. O'Leary stated that from the way he read the ordinance, the DDC would be an independent entity from the JDA. Mr. Swanson stated that it is a separate entity from the Jobs Development Authority but makes recommendations to the Jobs Development Authority, the body in and of itself has no final determination power. Mr. O'Leary stated it is more independent than the relationship that now exists between the Growth Fund Committee and the Growth Fund; Mr. Swanson stated he wouldn't conclude that but think they would be in effect the same schematic position. Council Member Carpenter stated he would like to see the DDC making recommendations and the idea is how to maintain operations and maintenance of the buildings and facilities City would own downtown, and the ultimate decision is the Jobs Development Authority, but not clear as he thought the major function of this would be developing incentive packages to help businesses acquire property or get on the tax rolls and get developed but not one of the activities here, and not sure who is going to be doing that function. He stated that they need to be clear what their responsibilities are, that if expecting them to put together development packages they should know that, and if responsible for recommendations on operations of corporate center, or other properties that City should acquire, want them to be aware.

Mr. O'Leary reported that the purpose of the commission is to make recommendations for, and to accommodate, encourage and assist in the economic, physical, and cultural development of the downtown area of the city. he stated that at the organizational meeting of the DDC they spent about two hours going through a detailed list of duties and the kind of detail that would spell out for the commission's standpoint what duties and responsibilities are going to be, sees the organizational structure of this working in a way similar to what have under the Growth Fund where have the Jobs Development Authority, and under that an advisory committee called the growth fund committee; this would be a second advisory committee independent but advisory to the JDA where they would develop those kinds of policies and recommendations but JDA would be the organization that would be empowered to actually own facilities to administrate the program in the same way the JDA is now responsible to administrate the economic development efforts of the city. He stated they visited with Mr. Swanson whether it would be necessary to go into that detail in this document, and if was consensus of those present that they leave this in a broader nature since don't have good idea yet exactly what the entire scope of the duties are going to be for the DDC, and thinks that over the coming weeks those duties will be hammered
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out and council will be submitted a work program which will spell those out. Council Member Carpenter stated he would like to see activities where talking about recommendations as far as operation and maintenance of the downtown facilities owned by JDA and one re. incentive package for related downtown properties and have those as two additional items listed. Mr. O'Leary stated there was discussion about dragging the DDC into a level of day to day administration, esp. at this time in the organizational process, that there's a lot of daily work involved with the administration of the department authority. He stated that the Mall Authority will self destruct in six months when Mall is dismantled and other part, Parking Authority, will be an important feature of the downtown area in coming years, and with kind of detail Parking Authority routinely gets involved with, would deter the DDC's primary mission which is more of a visionary group and implementor of broader kinds of goals and objectives for where the central business district should be headed. Council Member Glassheim stated that the original consultant proposal saw them as involved with proposing or making financial packages, and maintenance of parking, should they be pre-paring plans and picture views of how that should operate. Mr. O'Leary stated he would see that as something the DDC would be involved with as a deal maker or packager, the conduit to bring ideas and mechanisms to improve the downtown back to the JDA and if Council Member Carpenter would like to see further elaboration in the draft they could do that.

Mr. Swanson reported that the first draft prepared by their office had very detailed and fairly significant listing of duties and responsibilities, but not particularly well received by the study group, and it was their understanding in the redraft that they want to go to a much broader statement, and with respect as to whether this body would be involved in packaging economic packages for downtown, that seems to fall clearly within subsection (1) which on recommenda-tion of the study group, wanted it to be very broad form language; that we can adopt more detailed duties and responsibilities but also need to recall that insofar as this is now being set up under the Jobs Development Authority, the JDA could delegate it's responsibility and it's authority to this body. He stated that it wouldn't be too controversial to comment that quite frankly the main-tenance of the present body of the Central Business District Authority and this body tend to clash to some degree, you have a body with some history that has certain parameters and activities they've undertaken, facing an entirely new body that's exploring their authority in their scope of responsibility and that meetings he has attended of study group there's not a unanimous consensus of exactly what this body will be doing when it comes down to detail, to the management, to the individual responsibilities and that's what discussion centered around in large part of the meetings, but if want to draft in more responsibility can go to what JDA has and include those, but keep in mind that this is in effect a sub-body to that group.

Council Member Beyer stated that part of reason they did not address this, is that they did add sunset clause of December 31, 1999, and part of the rationale of keeping business district with them doing operations and maintenance now through the winter. She stated that the three members of the city council nominated by the president, and questioned if that was to be changed to be nominated by the mayor and approved by the council. Council Member Beyer moved an amendment to the ordinance that the three members be nominated by the mayor and approved by the city council; Council Member Beach seconded the amendment.

Council Member Carpenter stated that they are appointing members of the council and that should be the prerogative of the council through its executive officer, which is the president.

Upon call for the question and upon voice vote, the motion was defeated.

Council Member Carpenter moved an amendment to the ordinance as follows: to add a (2) c. The development of incentive packages to promote and encourage
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redevelopment within the downtown area. Council Member Glassheim seconded the motion. Carried 14 votes affirmative.

Mr. Swanson reported that there was an item that he wanted to point out to the council, that throughout the ordinance it refers to the downtown area, and that is not defined schematically by map or otherwise, whereas the central business district authority is defined by a boundary, and that he believes it was the intention of the study committee to have that undefined in order to have some flexibility and some discretion in determining what areas were to be addressed, and pointed out for their consideration.

Upon call for the question on adoption of the ordinance, as amended, and upon roll call vote the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Bakken, Hafner, Hagness - 14; voting "nay": none. Mayor Owens declared the ordinance adopted.

REPORTS OF OFFICERS

The city auditor presented the cash balance report as of October 31, 1997. It was moved by Council Member Klave and seconded by Council Member Beyer to receive and file the report. Carried 14 votes affirmative.

APPROVE BILLS

Vendor Payment Listing No. 97-19, dated December 1, 1997, and totaling $3,559,487.80, all having been audited by the city auditor in accordance with regulations, was presented and read.

It was moved by Council Member Carpenter and seconded by Council Member Babinchak that these bills be allowed and that the city auditor be authorized to issue warrants in payment of the same. Upon roll call vote the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Bakken, Hafner, Hagness - 14; voting "nay": none. Mayor Owens declared the motion carried and the bills ordered paid.

APPROVE REALLOCATION OF 1997 RIVER FORKS
COMMISSION FUNDS

Committee No. 1, Finance, reported having considered the matter of reallocation of 1997 River Forks Commission budgeted funds, and recommended to reallocate the $80,000 from River Forks Commission budget and transfer to the general fund.

It was moved by Council Member Hamerlik and seconded by Council Member Bakken that this recommendation be and is hereby approved. Carried 14 votes affirmative.

ADOPT RESOLUTION RELATING TO REFUNDING
IMPROVEMENT BONDS, SERIES 1997C, AND SET
SALE DATE FOR DECEMBER 15, 1997

Committee No. 1, Finance, reported having considered the matter of Refunding Improvement Bonds, Series 1997C, and recommended to adopt the resolution relating to $4,085,000 Refunding Improvement Bonds, Series 1997C, and to set sale date for Monday, December 15, 1997.

It was moved by Council Member Hamerlik and seconded by Council Member Bakken that this recommendation be and is hereby approved. Carried 14 votes affirma-tive.

Council Member Hamerlik introduced the following resolution and moved its
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adoption, which motion was seconded by Council Member Bakken: Document No. 7389 - Resolution.

Upon vote being taken thereon, the following voted in favor thereof: Council Members Beach, Polovitz, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Bakken, Hafner, Hagness - 14; and the following voted against the same: none; whereupon the resolution was declared duly passed and adopted.

ADOPT RESOLUTION RELATING TO $400,000
TAXABLE GENERAL OBLIGATION TAX INCREMENT
BONDS, SERIES 1997D, AND SET DATE FOR
PUBLIC SALE ON DECEMBER 15, 1997

Committee No. 1, Finance, reported having considered the matter of Taxable General Obligation Tax Increment Bonds, Series 1997D, and recommended to adopt resolution relating to $400,000 Taxable General Obligation Tax Increment Bonds, Series 1997D, and set date for public sale on December 15, 1997.

It was moved by Council Member Hamerlik and seconded by Council Member Bakken that this recommendation be and is hereby approved. Carried 14 votes affirmative.

Council Member Hamerlik introduced the following resolution and moved its adoption, which motion was seconded by Council Member Bakken: Document No. 7389.1 - Resolution.

Upon vote being taken thereon, the following voted in favor thereof: Council Members Beach, Polovitz, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Bakken, Hafner, Hagness - 14; and the following voted against the same: none; whereupon the resolution was declared duly passed and adopted.

ADOPT RESOLUTION AUTHORIZING ISSUANCE,
SALE AND DELIVERY OF SENIOR HOUSING REVENUE
BONDS (4000 VALLEY SQUARE PROJECT), SERIES
1997 IN AMOUNT NOT TO EXCEED $26,000,000;
AND PROVIDING FOR THE SECURITY, RIGHTS AND
REMEDIES OF HOLDERS OF SAID BONDS

Committee No. 1, Finance, reported having considered the matter of revenue bonds for Valley Memorial Home project, and recommended to adopt resolution authorizing the issuance, sale and delivery of Senior Housing Revenue Bonds (4000 Valley Square Project), Series 1997, in an aggregate principal amount of not to exceed $26,000,000, authorizing execution and delivery of an indenture of trust, a bond purchase agreement, a loan agreement and any other necessary documents, authorizing the execution and delivery of the bonds, and providing for the security, rights and remedies of the holders of said bonds.

It was moved by Council Member Hamerlik and seconded by Council Member Bakken that this recommendation be and is hereby approved. Carried 14, votes affirmative.

Council Member Hamerlik offered the following resolution and moved its adoption: Document No. 7390 - Resolution.

Council Member Bakken seconded the above resolution, and, upon vote being taken thereon, the following voted in favor: Council Members Beach, Polovitz, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Bakken, Hafner, Hagness - 14; and the following voted against the same: none; whereupon the resolution was declared duly passed and adopted.
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APPROVE AMENDMENT TO THE CONTRACT FOR
SERVICES RE. CONTINUING DISCLOSURE BETWEEN
CITY AND SPRINGSTED INCORPORATED

Committee no. 1, Finance, reported having considered the matter of amendment to the contract for services relating to continuing disclosure between the City and Springsted Incorporated, and recommended to approve the amendment to the contract.

It was moved by Council Member Hamerlik and seconded by Council Member Bakken that this recommendation be and is hereby approved. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Bakken, Hafner, Hagness - 14; and the following voted "nay": none. Mayor Owens declared the motion carried.

APPROVE AWARD OF BIDS FOR SIDEWALK WARRANTS

Committee No. 1, Finance, reported having considered the matter of award of bids for sidewalk warrants, and recommended award to Norwest Investment Services at 5.97%.

It was moved by Council Member Hamerlik and seconded by Council Member Bakken that this recommendation be and is hereby approved. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Bakken, Hafner, Hagness - 14; and the following voted "nay": none. Mayor Owens declared the motion carried.

APPROVE CHRISTMAS BONUS FOR EMPLOYEES

Committee No. 1, Finance, reported having considered the matter of Christmas bonus for employees, and recommended to give employees four hours vacation leave which is to be used by September 1, 1998, upon approval of the supervisor and/or department head.

It was moved by Council Member Hamerlik and seconded by Council Member Bakken
that this recommendation be and is hereby approved. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Bakken, Hafner, Hagness - 14; and the following voted "nay": none. Mayor Owens declared the motion carried.

RECEIVE AND FILE MATTER OF TRAFFIC LIGHT
AT 28TH AVENUE SOUTH AND COLUMBIA ROAD

Committee no. 2, Public Safety, reported having considered the matter of traffic light at 28th Avenue South and Columbia Road, and recommended to receive and file.

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

Council Member Hamerlik stated that committee minutes stated there would be a study on this matter, but that this should be done. Council Member Beyer advised that study was to be done through MPO and that they are looking at all traffic patterns since flood and study due to be back soon. Mr. Vein reported that even when we do the study and if approved, signal wouldn't be installed until next year.

Upon call for the question and upon voice vote, the motion carried 14 votes affirmative.

APPROVE BUDGET AMENDMENTS
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A request for budget amendment for the Health Department in the amount of $1,217.00 for 1996 carry-over income over expenditures for Food Management certification classes, and a request for budget amendment for the Health Department in the amount of $2,935.00 for 1997 Food Manager certification class income, were presented and read.

It was moved by Council Member Beyer and seconded by Council Member Sande that these budget amendments be approved. Carried 14 votes affirmative.

APPROVE REMOVAL OF PARKING ON SOUTH 38TH
STREET

Committee No. 2, Public Safety, reported having considered the matter of street parking on South 38th Street in vicinity of Menard's/National Muffler, and recommended removal of parking on both sides of South 38th Street from 32nd Avenue South to South 30th Street, and the paved section of South 42nd Street from South 38th Street to the west.

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

Council Member Hafner stated that he had referred this matter to the committee, with intentions to limit parking from 32nd Avenue to where South 38th Street starts and was because of congestion in the curvature of the road, that committee extended that westward to Amundson's which he isn't sure is necessary. Council Member Hafner moved an amendment to the motion to delete on South 38th Street from 32nd Avenue South to where the curve ends on both sides of the street. Council Member Babinchak seconded the motion. Carried 14 votes affirmative.

Upon call for the question on the motion, as amended, and upon voice vote, the motion carried 14 votes affirmative.

AUTHORIZE ADDITIONAL POSITIONS FOR STREET
DEPARTMENT, AND TO AMEND 1998 BUDGET

Committee No. 3, Public Service, reported having considered the matter of snow removal (additional positions for street department), and recommended to authorize two additional full-time equipment operator III positions, and to amend the 1998 budget in an appropriate amount, including fringes, using carryover funds.

It was moved by Council Member Hafner and seconded by Council Member Klave that this recommendation be and is hereby approved. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Bakken, Hafner, Hagness - 14; and the following voted "nay": none. Mayor Owens declared the motion carried.

APPROVE VARIOUS EASEMENTS

Committee No. 3, Public Service, reported having considered the matter of alleyway and utility easement for alley relocation to accommodate the Belmont School reconstruction at Belmont School, south of 4th Avenue South between Belmont Road and Chestnut Street, for and in consideration of the sum of $1.00, and other good and valuable considerations, Grand Forks Public School District no. 1, grantor, and recommended to approve and to authorize proper City officials to execute the easement.

It was moved by Council Member Hafner and seconded by Council Member Klave that this recommendation be and is hereby approved. Carried 14 votes affirmative.


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INTRODUCE ORDINANCE RE. WASTEWATER USER
CHARGES, RATES AND FEES

Committee No. 3, Public Service, reported having considered the matter of proposed ordinance change, excess flow charge, and recommended to approve the proposed ordinance change and to introduce the ordinance for first reading.

It was moved by Council Member Hafner and seconded by Council Member Klave that this recommendation be and is hereby approved. Carried 14 votes affirmative.

Council Member Klave introduced an ordinance entitled "An ordinance amending Section 15-0301 of the Grand Forks City Code relating to wastewater user charges, rates and fees", which was presented, read and passed on its first reading.

MATTER OF CLARIFICATION OF ICC PHYSICALS

Committee No. 3, Public Service, reported having considered the matter of clarification of ICC physicals, and recommended to approve the proposed policy with the addition of having forms completed by one's own physician.

It was moved by Council Member Hafner and seconded by Council Member Klave that this recommendation be and is hereby approved. Carried 14 votes affirmative.

APPROVE PROPOSED STEP INCREASE POLICY

Committee No. 3, Public Service, reported having considered the matter of proposed step increase policy, and recommended approval of the proposed step increase policy as presented. (All full-time classified employees hired prior to December 31, 1996 shall receive their step increase on January 1, 1998. January 1st of each year shall be the new anniversary date for potential future step increases. Employees hired or promoted to a higher pay grade in 1997 shall be ineligible for a step increase on January 1, 1998, rather the actual date of hire or promotion shall be their anniversary date.)

It was moved by Council Member Hafner and seconded by Council Member Klave that this recommendation be and is hereby approved. Carried 14 votes affirmative.

APPROVE MATTER OF ANNUAL PERFORMANCE EVALUATIONS

Committee No. 3, Public Service, reported having considered the matter of annual performance evaluations, and recommended to approve for 1997 with understanding that go back to established policies for 1998.

It was moved by Council Member Hafner and seconded by Council Member Klave that this recommendation be and is hereby approved. Carried 14 votes affirmative.

APPROVE SELECTION OF CONSULTANT FOR FLOOD
RECOVERY PROJECTS

Committee No. 3, Public Service, reported having considered the matter of consultant selection for flood recovery projects; and recommended to approve consultant selection as follows: Webster, Foster & Weston for televising and cleaning sewers and restoration of sewers; Advanced Engineering for water treatment plant protection; and KBM, Inc. for pumping stations; and further to accept approval of contracts as follows: Project No. 4654.154; Webster, Foster & Weston in the amount of $70,000; Project No. 4687, Webster, Foster & Weston in the amount of $90,000; Project 4654.350, Webster, Foster & Weston in the amount of $150,000; Project 4703, Advanced Engineering, $20,800; Project 4697, KBM, Inc. in the amount of $36,890; and Project 4698, KBM, Inc. in the amount of $45,000; contingent upon approval of the contracts by the city engineer and by the city attorney.
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The Flood Response Committee reported having considered the matter of engineering consultant selection, and recommended to approve the consultant selection as follows: Webster, Foster & Weston to sewer consultants; Advanced Engineering to water treatment plant flood protection; and KBM, Inc. for pump stations.

It was moved by Council Member Hafner and seconded by Council Member Klave that these recommendations be and are hereby approved. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Bakken, Hafner, Hagness - 14; and the following voted "nay": none. Mayor Owens declared the motion carried.

REJECT ALL BIDS FOR LANDFILL COMPACTOR AND
AUTHORIZE REBIDDING OF EQUIPMENT

Committee No. 3, Public Service, reported having considered the matter of bids for landfill compactor, and recommended that we award to low bidder, Butler Machinery Company, for $322,615.00.

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

Council Member Hagness moved an amendment to the motion to accept the bid of Krider Equipment Co., Inc. for the Bomag BC670RB for $275,631.65** for safety reasons, and which is best bid for the City; Council Member Lucke seconded the motion. (**bid should be $327,033 as $275,631.65 is using point evaluation system and Butler's figure using point evaluation system would be $232,815).

Council Member Hagness stated that the sealed hub design frame reduces the risk of debris build-up that has caused fires as recent as last Saturday in the Caterpillar 816 at the landfill; that they have had several fires in Caterpillar equipment at the landfill this past year, and other safety reasons is that Caterpillar machine used at Grand Island, Nebraska and rep. stated that he was told by Caterpillar that nothing can be done to fix that machine that has caused landfill operators to have problems because of constant vibrations of the Cat 826 machine that was competitive bid here. He stated that Bomag was designed to be compactor and has an enclosed chassis and debris cannot get into it, that landfill operators pushing into 4 ft. of debris and present equipment gets debris into cavities and takes whole day to clean out when it has to be serviced; that Bomag is stable and safe operation on slopes and for safety reasons is best bid for the City.

There was discussion re. additional information that was to have been provided to council members relative to this matter; that Charles Grotte, asst. director of public works, stated information dated November 26, 1997 had been sent re. bid documents, results of bids and evaluation points, etc., and stated that if concerns re. safety and if some overriding factor had been added and not previously evaluated should reconsider bids and suggested that they accept the low bid of Butler Machinery or send back to staff to look into safety issues.
Council Member Hamerlik moved a substitute motion to rebid this equipment; Council Member Babinchak seconded the motion.

Mr. Swanson stated that this motion calls for all bids to be rejected and to rebid and because adverse should be treated as a substitute motion, that if this motion passes it will cease action on the matter this evening, and if fails council would be back to the amendment by Council Member Hagness.

Upon roll call vote on the motion to reject bids and to rebid this equipment, the following voted "aye": Council Members Beach, Hamerlik, Glassheim, Sande, Klave, Beyer, Babinchak, Hafner - 8; and the following voted "nay": Council Members
Polovitz, Lucke, Bouley, Carpenter, Hagness, Bakken - 6. Mayor Owens declared
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the motion carried and that bids will be rebid.

ACCEPT BIDS FOR CIVIC AUDITORIUM

The Flood Response Committee reported having considered the matter of bids for renovation of civic auditorium, and recommended acceptance of bids as follows: #1 General Construction, Baukol Builders, $548,816, plus Alt. #2 of $90,790; #2 Mechanical Construction: Klemetstrud Plumbing & Heating, $510,000 plus Alt. #2 of $84,400; #3 Electrical: Fritz Electric, $289,900 plus Alt #2 deduct of $13,000 and #3 of $7,500.

It was moved by Council Member Bakken and seconded by Council Member Polovitz that this recommendation be and is hereby approved. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Bakken, Hafner, Hagness - 14; voting "nay": none. Mayor Owens declared the motion carried.

AUTHORIZE PROCEEDING WITH PHASE III BUYOUT
PROGRAM

The Flood Response Committee reported having considered the matter of Phase III buyout program (homes that sustained 75% or greater damage, that have a pre-flood assessed value of less than $45,000 or are on a lot of less than 50 ft. will be offered a buyout option from the City using CDBG funds, homes not falling within criteria described would be looked at on case by case basis), and recommended to authorize legal department and Urban Development to proceed with program as described.

It was moved by Council Member Bakken and seconded by Council Member Polovitz that this recommendation be and is hereby approved. Carried 14 votes affirmative.

PROCEED WITH DEMOLITION OF BOUGHT OUT
PROPERTIES

The Flood Response Committee reported having considered the matter of demolition of bought out properties, and recommended to proceed to provide $5.383 million
in funds from part II to Part I of cost matrix ($1.5 million CDBG and $3,883. million FEMA) to allow staff to award bid and proceed with demolition of property.

It was moved by Council Member Bakken and seconded by Council Member Polovitz that this recommendation be and is hereby approved. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Bakken, Hafner, Hagness - 14; voting "nay": none. Mayor Owens declared the motion carried.

APPROVE FUNDING FOR RELOCATION OF TENANTS
IN SPECIFIC PHASES OF BUYOUTS

The Flood Response Committee reported having considered the matter of relocation of tenants and recommended to approve $1 million for relocation of tenants in Phase I, IA, II and III.

It was moved by Council Member Bakken and seconded by Council Member Polovitz that this recommendation be and is hereby approved. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Bakken, Hafner, Hagness - 14; voting "nay": none. Mayor Owens declared the motion carried.

MATTER OF STAFFING NEEDS
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The Flood Response Committee reported having considered the matter of request for additional custodial staff at City Hall, and recommended to hire two positions from CDBG part-time employee funds.

The Flood Response Committee reported having considered the matter of reallocation of one trade inspector position to one office clerk position at a grade 10 ($1368-1847) per month, and recommended approval of reallocation of one trade inspector to two office clerks.

The Flood Response Committee reported having considered the matter of reallocation of Emergency Management Office for hiring two additional staff: 1 special projects coordinator and 1 secretary, and recommended to approve request.

It was moved by Council Member Bakken and seconded by Council Member Polovitz that this recommendation be and is hereby approved. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Bakken, Hafner, Hagness - 14; voting "nay": none. Mayor Owens declared the motion carried.

APPROVE ENCROACHMENT AGREEMENT WITH GRAND
FORKS HERALD EXPANSION

The Flood Response Committee reported having considered the matter of encroachment agreement with Grand Forks Herald, and recommended to approve the encroachment agreement with Grand Forks Herald building, 5" into right of way, and to grant encroachment agreement subject to hold harmless agreement.

It was moved by Council Member Bakken and seconded by Council Member Polovitz that this recommendation be and is hereby approved. Carried 14 votes affirmative.

APPROVE NEGOTIATED SETTLEMENTS FOR
ACQUISITION OF PROPERTIES IN DOWNTOWN
BUSINESS DISTRICT FOR CORPORATE CENTER

The Flood Response Committee reported having considered the matter of review of negotiated settlements for acquisition of properties in downtown business district for Corporate Center, and recommended approval of both acquisition prices: 407 DeMers Avenue - S.B. Investments, a negotiated price of $379,720.00; and 16 South 4th Street - a negotiated price of $185,000 plus $5,000 ceiling on expenses which includes expenses associated with transfer of property as well as environmental studies done by current owners.

It was moved by Council Member Bakken and seconded by Council Member Polovitz that this recommendation be and is hereby approved. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Bakken, Hafner, Hagness - 14; voting "nay": none. Mayor Owens declared the motion carried.

APPROVE PROGRAM MANAGER IN URBAN DEVELOPMENT
FOR DOWNTOWN PROGRAMS

The Flood Response Committee reported having considered the matter of program manager for downtown programs, and recommended one staff person for downtown program in Urban Development Office (Grade 20).

It was moved by Council Member Bakken and seconded by Council Member Polovitz that this recommendation be and is hereby approved. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Bakken, Hafner, Hagness - 14; voting
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"nay": none. Mayor Owens declared the motion carried.

HOLD PUBLIC HEARING ON 1997 CDBG SUPPLEMENTAL
DISASTER FUND ANNUAL ACTION PLAN

The Flood Response Committee reported having considered the matter of 1997 CDBG Supplemental Disaster Fund Annual Action Plan, and recommended to forward to the city council for approval.

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

Mayor Owens reported that there is a public hearing on this matter, and opened the hearing. There were no comments and the hearing was closed.

Upon call for the question on the motion for approval, the motion carried 14 votes affirmative.

APPROVE CONSTRUCTION MANAGEMENT SERVICES FOR
DOWNTOWN FINANCIAL CENTER

The Flood Response Committee reported having considered the matter of construc-tion management services for downtown financial center, and recommended to accept the cost of M.A. Mortenson of 2.5% of the total proposal cost with a cap of 5.5% construction cost, and if M.A.Mortenson does not accept this proposal or for any other reason they do not accept this proposal, the second choice would be Grosz-Anderson.

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

Council Member Klave questioned if second choice were made what were terms of construction cost and whether committee has taken into consideration all the other projects that Mortenson have on the table now, and whether overworked. Mr. O'Leary reported that the terms would be the same: basic fee of 2.5% is acceptable with a total cap between direct and indirect cost not to exceed 5.5%, and committee did look at amount of work that Mortenson's has.

Upon call for the question and upon roll call the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Bakken, Hafner, Hagness - 14; voting "nay": none. Mayor Owens declared the motion carried.

APPROVE APPOINTMENT OF DDC COMMITTEE

Mayor Owens announced the appointment of members to the DDC Committee of Mike Maidenberg for a one-year term, Steve Hess for a two-year term, Don Olson for a three-year term and the Mayor; and appointment by Council Member Hagness, who is president of the city council, of the following council members to the committee: Council Members Glassheim for a three-year term, Beach for a one-year term and Beyer for a two-year term; and advisory staff of John O'Leary, John Schmisek, Ken Vein, Dick Olson, Howard Swanson and Gary Christianson.

It was moved by Council Member Carpenter and seconded by Council Member Klave that these appointments be approved. Carried 14 votes affirmative.

Mr. Swanson reported that members of the public sector must be members of the city council and if remaining term and council member not re-elected or does not run for re-election, he would be resigning from and an appointment made to serve balance of that term.

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APPROVE ESTIMATES, VARIOUS PROJECTS

Estimate Summary No. , dated November 30, 1997, and totaling $197,266.20 for CDBG related projects; $993,821.49 for City projects; $599,896.11 for flood recovery projects, including FEMA, for a total of $1,790,983.80, were presented and read.

It was moved by Council Member Sande 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 to be excused from voting on any payments to Duckstad Contracting, and it was so moved by Council Members Beyer and Klave. Carried 13 votes affirmative.

Upon roll call the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak (with exception of payments to Duckstad Contracting), Bakken, Hafner, Hagness - 14; voting "nay": none. Mayor Owens declared the motion carried.

APPROVE CERTIFICATES OF COMPLETION, VARIOUS
PROJECTS

Communications were presented and read from the city engineer certifying that the contractors had successfully completed the construction of the following projects in a satisfactory manner, and recommending acceptance by the council: Project No. 4262, 1995 concrete street repairs; Project No.3947, English Coulee Pedestrian Bikeway Path from 17th Avenue South to DeMers Avenue; Project No.4250, Pedestrian Bikeway Path from South 29th Street to 32nd Avenue South; Project No. 4603, Watermain District No. 251; Project No. 4576, watermain replacement on 10th Avenue North.

It was moved by Council Member Carpenter and seconded by Council Member Sande that these recommendations be and are hereby approved. Carried 14 votes affirmative.

REFER VARIOUS ITEMS TO COMMITTEE

Various items were presented to the council for discussion and/or referral to committee:

1) Council Member Bouley reported that pipes broke in abandoned house and partial building filled and seepage entered into neighbor's basement and he's requesting payment from city on some items that were damaged; Mayor Owens asked that a written letter be sent to the city auditor.
2) Council Member Beyer presented matter of bidding procedures, whether required to put out for bids and meet with Legislature to convey changing Code. Mr. Swanson stated it would be highly unlikely that they could pass legislation eliminating bidding requirements on equipment, and with respect to the issue tonight, you have within your authority the ability to accept a piece of equipment that is not the low bid providing that this body agrees that there is a rational basis to distinguish low bid from the high bid, but comes down to decision of council as to whether you will accept the higher bid and can articulate a basis as to why accepting it. He stated that body of legislature would be body of choice to end/fix frustration is far from reality. It was suggested that a department head write specs. with review by Mr. Grotte so get consistent specs.

CHANGE TIME OF COUNCIL MEETINGS

Council Member Hamerlik presented matter of time of city council meetings and
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questioned whether time should be changed from current 7:00 meeting time to 7:30 as in the past. Mr. Swanson reported that council can establish its own meeting time. A show of hands was 8 to 6 to change time to 7:30 p.m.

Council Member Carpenter moved to schedule city council meetings at 7:30 p.m., the motion was seconded by Council Member Hamerlik. Carried 14 votes affirmative.

ADOPT RESOLUTION CALLING FOR THE CANCELLATION
OF TAXES ON PROPERTY ACQUIRED IN PHASE I AND
PHASE II FROM AND AFTER APRIL 17, 1997

Mr. Swanson reported that he met with Mr. Carsen, city assessor, re. tax issues
relating to property being acquired in Phase I and Phase II; that the county auditor has requested that this body adopt a resolution calling for the cancellation of taxes as of April 17, 1997 on all properties acquired by the City in Phase I and Phase II; as the program that was approved does pro-rate the taxes to that date but the county auditor wanted a separate resolution calling for the cancellation, so suggested motion of adoption of a resolution calling for the cancellation of taxes on property acquired in Phase I and Phase II by the City from and after April 17, 1997.

Council Member Beyer introduced the following resolution calling for the cancellation of taxes on property acquired in Phase I and Phase II by the City from and after April 17, 1997: Document No. 7391 - Resolution.

It was moved by Council Member Beyer and seconded by Council Member Babinchak that this resolution be and is hereby adopted. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Bakken, Hafner, Hagness - 14; voting "nay": none. Mayor Owens declared the motion carried and the resolution adopted.

ADJOURN

It was moved by Council Member Hamerlik and seconded by Council Member Beach that we do now adjourn until Monday, December 15, 1997 at 7:30 p.m. Carried 14 votes affirmative.

Respectfully submitted,



John M. Schmisek
City Auditor

Approved:

Patricia A. Owens, Mayor