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PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF GRAND FORKS, NORTH DAKOTA
Monday, March 16, 1998

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, March 16, 1998 at the hour of 7:30 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.

APPROVE MINUTES OCTOBER 20, 1997 AND
FEBRUARY 26 AND MARCH 2, 1998

Typewritten copies of the minutes of the adjourned meeting of the city council held on October 20, 1997 and of the special and regular meetings of the city council held on February 26 and March 2, 1998, were presented and read. It was moved by Council Member Babinchak and seconded by Council Member Beyer that these minutes be approved as read. Council Member Lucke reported that on page 11 of the minutes relative to the motion to approve fee overruns for Water System Concept Plan, Project No. 4654.010 that he did not make motion on this item and should be Council Member Hafner. The matter was so noted, and upon call for the question on approval of minutes, as corrected, the motion carried 14 votes affirmative.

APPROVE FINAL PLAT AND ADOPT ORDINANCE NO. 3700,
TO AMEND STREET AND HIGHWAY PLAN TO INCLUDE THE
PUBLIC R/W SHOWN AS DEDICATED ON THE PLAT OF
STADTER RESUBDIVISION

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 Stadter Resubdivision to the city of Grand Forks, North Dakota", which had been introduced and passed on its first reading on February 17, 1998 and upon which public hearing had been continued until this evening, was presented and read for consideration on second reading and final passage.

The deputy city auditor reported that the required legal notice had been published calling for a public hearing to be held on March 2, 1998 and continued until this evening and further that to date no protests or grievances had been filed with her office.

Mayor Owens called upon the audience to see if there was anyone present who had comments to make on this matter. There were none and the hearing was closed.

The deputy city auditor presented and read the report from the Planning and Zoning Commission that they had considered the matter of the request from CPS, Ltd. on behalf of DBLLS Enterprise and William Rath for final approval of Stadter Resubdivision to the city of Grand Forks, ND, being a Replat of Lots A and B, Block A of the Replat of Block 2, Curran's 2nd Subdivision (located south of 44th Avenue South between South Washington Street and South 16th Street, former Starlite Theatre property),
and recommended final approval and passage of the ordinance amending the Street and Highway Plan.

Upon call for the question of adoption of this ordinance 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.

ADOPT ORDINANCE NO. 3701, AMENDING ZONING
MAP TO INCLUDE WITHIN VERN'S PUD (PLANNED
UNIT DEVELOPMENT) DISTRICT, CONCEPT DEVELOPMENT
PLAN, ALL OF VERN'S 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 A-2 (Agricultural Reserve) District and to exclude from the i-2 (Heavy Industrial) District, and to include within Vern's PUD (Planned Unit Development) District, Concept Development Plan, all of Vern's Addition, Grand Forks County, North Dakota", which had been introduced and passed on its first reading on February 17, 1998 and upon which public hearing had been scheduled for this evening, was presented and read for consideration on second reading and final passage.

The deputy 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 her office.

Mayor Owens called upon the audience to see if there was anyone present who had comments to make on this matter. There were none and the hearing was closed.

The deputy city auditor presented and read the report from the Planning and Zoning Commission that they had considered the matter of the request from Vern Gornowicz for final approval of an ordinance to amend the Zoning Map to exclude from the A-2 (Agricultural Reserve) District and to exclude from the I-2 (Heavy Industrial) District and to include within Vern's PUD (Planned Unit Development) District, Concept Development Plan, all of Vern's Addition, Grand Forks County, North Dakota (located between U.S. Highway No. 2 and the city landfill and between the Grand Forks Gun Club and Swangler Auto Wrecking), and recommended final approval subject to special conditions shown on or attached to the review copy and passage of the ordinance amending the zoning map.

Upon call for the question of adoption of this ordinance 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.

REFER MATTER OF ORDINANCE TO AMEND ZONING MAP
TO INCLUDE WITHIN JOHNSON'S PUD,CONCEPT DEVELOP-
MENT PLAN, AMENDMENT NO. 3, JOHNSON'S 1ST, 2ND, 3RD
AND 4TH ADDITIONS AND KUSTER'S 2ND AND 3RD SUBDIVISIONS
WITH SUBSTANTIAL CHANGE LYING IN LOTS 6 THROUGH 27,
BLOCK 1, JOHNSON’S 4TH ADDITION, BACK TO PLANNING AND
ZONING COMMISSION FOR FURTHER CONSIDERATION
An ordinance entitled "An ordinance to amend the Zoning Map of the city of Grand Forks, North Dakota, to rezone and exclude from the Johnson's PUD (Planned Unit Development), Concept Development Plan, Amendment No. 2, and to include within Johnson's PUD (Planned Unit Development), Concept Development Plan, Amendment No. 3, Johnson's 1st, 2nd, 3rd and 4th Additions and Kuster's 2nd and 3rd Subdivisions to the city of Grand Forks, North Dakota, with substantial change lying in Lots 6 through 27, Block 1, Johnson's 4th Addition", which had been introduced and passed on its first reading on February 17, 1998, and upon which public hearing had been scheduled for this evening, was presented and read for consideration on second reading.

The deputy 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 her office.

Mayor Owens called upon the audience to see if there was anyone present who had comments to make on this matter. There were none and the hearing was closed.

The deputy city auditor presented and read the report from the Planning and Zoning Commission that they had considered the matter of the request from Tim Crary on behalf of Johnson Farms for final approval of an ordinance to amend the Zoning Map to exclude from Johnson's PUD (Planned Unit Development), Concept Development Plan, Amendment No. 2 and to include within Johnson's PUD (Planned Unit Development), Concept Development Plan, Amendment No. 3, Johnson's 1st, 2nd, 3rd and 4th Additions and Kuster's 2nd and 3rd Subdivisions, Grand Forks, ND, with substantial change lying in Lots 6 through 27, Block 1, Johnson's 4th Addition (located west of South 40th Street between 11th Avenue and 15th Avenue South), and recommended denial of the request (that a written letter of protest was received from the property owner at 1203 Russet Circle).

David Broxmeyer, planning office, reported that this proposal would move a strip along South 40th Street from single family into twin homes. Council Member Hagness reported that Mr. Crary had requested approval of a change from single family to twin homes allowing twin home development along South 40th Street and his reasons are: a) that after the letters of zoning change were sent out to the neighborhood he received nothing but favorable comments on how it would be a great buffer from the commercial, that the Planning and Zoning Commission received only one negative call and Mr. Clarence Peterson spoke to that Wednesday night at Planning meeting, and received only one negative call on a follow-up letter from the neighborhood from that same individual; b) that it would be extremely difficult to sell upper end single-family homes along 40th Street with commercial in their backyards; c) the twin homes he is proposing to build would be an excellent break between the more expensive homes in Johnson's Addition and the commercial on South 42nd Street, the twin homes would be priced in the $130,000 to $140,000 range per side so not low cost housing; and that should look at what Mr. Crary is proposing so proper orderly development will be commercial, multi-family and then single-family. Council Member moved an amendment to approve twin homes in the strip along South 40th Street from single-family homes. Council Member Hafner seconded the motion.

Tim Crary reported that he was unable to attend the Planning & Zoning Commission meeting last week and that twin homes won't hurt the value of any of the homes, planning to develop very nice twin homes with price range of $130 to $140,000 and is natural break from single family homes before commercial. Mr. Crary reported that plans before the Aurora went in, density was much higher than what he is asking
for and that he is now requesting change from single to twin homes. He reported that there are 21 lots
and would be looking at rather than 21 lots to 42 homes along that street.

It was moved by Council Member Beyer and seconded by Council Member Hamerlik to refer the matter to Planning and Zoning Commission for further consideration. Carried 14 votes affirmative.

APPROVE FINAL PLAT AND ADOPT ORDINANCE NO.
3702, TO AMEND STREET AND HIGHWAY PLAN TO
INCLUDE PUBLIC R/W SHOWN AS DEDICATED ON PLAT
OF MIGHTY ACRES SECOND 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 Mighty Acres Second Addition to the city of Grand Forks, North Dakota", which had been introduced and passed on its first reading on February 17, 1998 and upon which public hearing had been scheduled for this evening, was presented and read for consideration on second reading and final passage.

The deputy 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 her office.

Mayor Owens called upon the audience to see if there was anyone present who had comments to make on this matter. There were none and the hearing was closed.

The deputy city auditor presented and read the report from the Planning and Zoning Commission that they had considered the matter of the request from Tim Crary on behalf of Bert and Lyle Johnson and Alan Thompson for final approval of the plat of Mighty Acres Second Addition to the city of Grand Forks, ND lying within a portion of the E Half of the Northwest Quarter and the West Half of the NE Quarter of Section 27, Township 151 North of Range 50 West of the 5th Principal Meridian (located south of 49th Avenue South between Chestnut and Cherry Streets), and recommended final approval subject to special conditions shown on or attached to the review copy and passage of the ordinance amending the Street and Highway Map.

Upon call for the question of adoption of this ordinance 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.

ADOPT ORDINANCE NO. 3703, AMENDING ZONING MAP
TO INCLUDE WITHIN MIGHTY ACRES SECOND PUD
DISTRICT, CONCEPT DEVELOPMENT PLAN, ALL OF
MIGHTY ACRES SECOND 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 A-1 (Limited Development) district and the A-2 (Agricultural Reserve) district and to include within the Mighty Acres Second PUD (Planned Unit Development) District, Concept Development Plan, all of Mighty Acres Second Addition to the city of Grand Forks, North Dakota", which had been introduced and passed on its first reading on February 17, 1998, and upon which public hearing had been scheduled for this evening, was presented and read for consideration on second reading and final passage.

The deputy 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 her office.

Mayor Owens called upon the audience to see if there was anyone present who had comments to make on this matter. There were none and the hearing was closed.

The deputy city auditor presented and read the report from the Planning and Zoning Commission that they had considered the matter of the request from Tim Crary on behalf of Bert and Lyle Johnson and Alan Thompson for final approval of an ordinance to amend the Zoning Map to rezone and exclude from the A-1 (Limited Development) district and the A-2 (Agricultural Reserve) District and to include within Mighty Acres Second PUD (Planned Unit Development) District, Concept Development Plan, all of Mighty Acres Second Addition to the city of Grand Forks, ND (located south of 49th Avenue south between Chestnut and Cherry Streets), and recommended final approval subject to special conditions shown on or attached to the review copy and passage of the ordinance amending the zoning map.

Upon call for the question of adoption of this ordinance 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.

APPROVE FINAL PLAT, AND ADOPT ORDINANCE NO.
3704 TO AMEND THE STREET AND HIGHWAY PLAN AND
TO INCLUDE PUBLIC R/W SHOWN AS DEDICATED ON
THE REPLAT OF LOT 3, COUNTRYSIDE SUBDIVISION

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 Replat of Lot 3, Countryside Subdivision, Grand Forks County, North Dakota", which had been introduced and passed on its first reading on February 17, 1998 and upon which public hearing had been scheduled for this evening, was presented and read for consideration on second reading and final passage.

The deputy 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 her office.

Mayor Owens called upon the audience to see if there was anyone present who had comments to make on this matter. There were none and the hearing was closed.

The deputy city auditor presented and read the report from the Planning and Zoning Commission that they had considered the matter of the request from Pribula Engineering and Surveying on behalf of Brian Bohlman for final approval of a Replat of Lot 3, Countryside Subdivision, Grand Forks County, including a variance to Article 9, Subdivision Regulations of the Land Development Code and more
specifically as it relates to Section 18-0907(5)(A) "Minimum Lot Area," (located north of 32nd Avenue South and east of South 83rd Street (approx. two miles west of I-29), and recommended final approval subject to special conditions shown on or attached to the review copy and passage of the ordinance amending the Street and Highway Map.

Upon call for the question of adoption of this ordinance 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.

APPROVE FINAL PLAT, AND ADOPT ORDINANCE NO.
3705 AMENDING THE STREET AND HIGHWAY PLAN
TO INCLUDE PUBLIC R/W SHOWN AS DEDICATED ON THE
PLAT OF SWANGLER'S SECOND 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 Swangler's Second Addition to the city of Grand Forks, North Dakota", which had been introduced and passed on its first reading on February 17, 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 deputy 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 her office.

Mayor Owens called upon the audience to see if there was anyone present who had comments to make on this matter. There were none and the hearing was closed.

The deputy city auditor presented and read the report from the Planning and Zoning Commission that they had considered the matter of the request from Jerome Swangler for final approval of a plat of Swangler's Second Addition, Grand Forks, North Dakota, being a part of the NE Quarter of the SE Quarter of Section 35, Township 152 North of Range 51 West of the 5th Principal Meridian (located approximately one-third of a mile north of U.S. Highway No. 2 along the west side of North 69th Street), and recommended final approval subject to special conditions shown on or attached to the review copy and passage of the ordinance amending the Street and Highway Map.

Upon call for the question of adoption of this ordinance 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.

ADOPT ORDINANCE NO. 3706, AMENDING ZONING MAP
TO REZONE AND EXCLUDE FROM A-2 (AGRICULTURAL
RESERVE) DISTRICT AND TO INCLUDE WITHIN THE I-2
(HEAVY INDUSTRIAL) DISTRICT, ALL OF SWANGLER
SECOND ADDITION; AND TO APPROVE CONDITIONAL
USE PERMIT
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 I-2 (Heavy Industrial) District, all of Swangler Second Addition to the city of Grand Forks, North Dakota", which had been introduced and passed on its first reading on February 17, 1998 and upon which public hearing had been scheduled for this evening, was presented and read for consideration on second reading and final passage.

The deputy 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 her office.

Mayor Owens called upon the audience to see if there was anyone present who had comments to make on this matter. There were none and the hearing was closed.

The deputy city auditor presented and read the report from the Planning and Zoning Commission that they had considered the matter of the request from Jerome Swangler 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 I-2 (Heavy Industrial) District all of Swangler's Second Addition, Grand Forks, North Dakota (located approximately one-third of a mile north of U.S. Highway No. 2 along the west side of North 69th Street), and recommended final approval and passage of the ordinance amending the zoning map.

Upon call for the question of adoption of this ordinance 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.

The Planning and Zoning Commission reported having considered the matter of the request from Jerome Swangler on behalf of Frank Swangler of Swangler Building Movers for approval of a conditional use permit for other industrial activity deemed fitting and compatible to the I-2 (Heavy Industrial) District by the Planning and Zoning Commission as provided for in Section 18-0219(3)(G) of the Land Development Code (located approximately one-third of a mile north of U.S. Highway No.2 along the west side of North 69th Street), and recommended approval of the conditional use permit based upon the attached site plan.

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

Council Member Beyer questioned purpose of conditional use permit; Mr. Broxmeyer reported that the permit is for contractor for house moving, that Mr. Swangler will be moving his operations from along U.S. Highway 2 to North 69th Street, with conditions in the permit to include that all buildings and equipment be set back a minimum of 300 ft. from North 69th Street, and this will be an area about a quarter mile or so north of the Grand Forks Gun Club. Council Member Beyer stated she had concern re. conditional use permits which are not enforced, and suggested that they look at those permits that are being violated.

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

HOLD PUBLIC HEARING ON MATTER OF FY
1998 FEDERAL TRANSIT ADMINISTRATION GRANT
APPLICATION ON ENTITLEMENT FUNDS AND APPROVE
SUBMITTAL OF GRANT APPLICATION

The deputy city auditor reported that notice had been published calling for a public hearing to be held this evening for consideration of the Transit Operating and Capital Assistance under 49 USC 6307 (formerly Section 9) of the Urban Mass Transportation Act of 1964 as amended, and listing the Program of Projects for the City's portion of the Grand Forks, ND/East Grand Forks, MN urbanized area covering the period from January 1, 1998 to December 31, 1998 totaling $486,237 (with the Program of Projects and Budget including a request for $192,237 in FTA Operating Assistance and $294,000 for capital expenditures), and reported that no written comments on the proposed Program of Projects had been submitted to the Transportation Superintendent prior to March 12, 1998.

Mayor Owens called upon the audience to see if there was anyone present who had comments to make on this matter. There were none and the hearing was closed.

It was moved by Council Member Sande and seconded by Council Member Carpenter to approve submittal of the FY 1998 grant application for Entitlement Funding to the Federal Transit Administration and to authorize City officials to execute all proper documents. Carried 14 votes affirmative.

HOLD PUBLIC HEARING ON MATTER OF FY 1998
FEDERAL TRANSIT ADMINISTRATION GRANT
APPLICATION ON DISCRETIONARY FUNDS AND
APPROVE SUBMITTAL OF GRANT APPLICATION

The deputy city auditor reported that notice had been published calling for a public hearing to be held this evening for consideration of the Transit Capital Assistance under 49 USC 5309 (formerly Section 3) of the Urban Mass Transportation Act of 1964 as amended, and listing the Project Budget for the City's request for FTA 49 USC 5309 funds in order to construct a new bus passenger transfer facility to serve as a replacement for the transfer facility that was formerly located at the City Center Mall in downtown Grand Forks and that the City of Grand Forks proposes to request federal funding through a ratio of 80% federal share and 20% local share of the total proposed project cost of $1,500,000, and reported that no written comments on the proposed Project Budget had been submitted to the Transportation Superintendent prior to March 12, 1998.

Mayor Owens called upon the audience to see if there was anyone present who had comments to make on this matter.

Council Member Carpenter questioned funding of entitlement grant application. Mr. Ulland reported that the 1998 FTA legislation, this preventive maintenance will be able to take maintenance department and fund it 50-50 with new line item, so in essence it's new revenue and should reduce local share.

There were no further comments and Mayor Owens closed the public hearing.

It was moved by Council Member Sande and seconded by Council Member Carpenter to approve submittal of the FY 1998 grant application for Discretionary Funding to the Federal Transit Administration and to authorize City officials to execute all proper documents. Carried 14 votes affirmative.

REFER CONSENT AGENDA ITEMS TO COMMITTEE

It was moved by Council Member Hagness and seconded by Council Member Babinchak that the consent agenda items be referred to the proper committee as noted for investigation, consideration and report back. Carried 14 votes affirmative.

Public Safety Committee:
1) matter of letter of intent re. County Office building.
Public Service Committee:
1) matter of consideration of an ordinance concerning connection fees and special assessments.
2) consideration of ordinance relating to eminent domain for public projects and uses.

Flood Response Committee:
1) matter of hiring independent firm, Shannon & Wilson Geotechnical Engineers, to do independent study of flood protection.

COUNCIL MEMBER HAGNESS EXCUSED

REPORTS OF OFFICERS

The city auditor's investment report dated February 28, 1998 was presented and read. It was moved by Council Member Carpenter and seconded by Council Member Babinchak that this report be and is received and filed. Carried 13 votes affirmative.

APPROVE BILLS

Vendor Payment Listing No. 98-04, dated March 16, 1998 and totaling $4,435,041.99, all having been audited by the city auditor for payment in accordance with regulations, was presented and read.

It was moved by Council Member Bakken and seconded by Council Member Sande 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, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Bakken, Hafner - 13; voting "nay": none. Mayor Owens declared the motion carried and the bills ordered paid.

COUNCIL MEMBER HAGNESS REPORTED BACK

ESTABLISH PUBLIC HEARING ON APPLICATION BY
CONTE LUNA FOODS FOR PROPERTY TAX EXEMPTION
FOR PROCESSING AREA ADDITION TO EXISTING
FACILITY

Committee No. 1, Finance, reported having considered the application for property tax exemption by Conte Luna Foods Division of Philadelphia Macaroni Company for processing area addition to the
existing processing facility, and recommended to establish date for public hearing on April 20, 1998, or as soon thereafter as possible.

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

It was moved by Council Member Carpenter who noted that we are able to hold public hearing earlier as Conte Luna would like in order to start construction earlier and moved an amendment that the date of the public hearing be changed to Monday, April 6, 1998, the motion was seconded by Council Member Hamerlik. Carried 14 votes affirmative.

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

ESTABLISH SUBCOMMITTEE TO SELECT UNDERWRITER
FOR CORPORATE CENTER BOND ISSUE

Committee No. 1, Finance, reported having considered the matter of selection of underwriter for Corporate Center bond issue, and recommended to establish Council Members Babinchak and Carpenter, the city auditor and Al Erickson of the Springsted firm as the subcommittee for the selection of the underwriter for the bond issue.

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

Gene Schneeweis, 1004 University Avenue, read statement to council regarding the building of a financial center downtown, that the First National Bank is going to be the main tenants, that the First National Bank received $17 million for their loss due to the flood, that the City plans to build center without receiving any return except the old First National Bank building which is going to be developed and profited from; that this building is of historic value to the city and should be rebuilt by the First National Bank, that instead it was given to the City of Grand Forks to be privately developed in disbelief, and calls for the City to get out of direct competition with private enterprise, the City hasn't shown any responsibility in holding down costs in other projects, ie., Aurora, affordable housing being built by Urban Development and Grand Forks Homes, that costs are sky-rocketing and there doesn't seem to be an end in sight. He stated that he had asked Flood Response Committee and asked the First National Bank to put the funds to build building of downtown, not just putting up $17 million in a loan pool to make money off this tragedy, and asked for the citizens and city council to relook and oppose the project because seems to be one-sided down there and asked they send it back to committee for further consideration.

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

ESTABLISH POLLING PLACE FOR JUNE 9 ELECTION

Committee No. 1, Finance, reported having considered the matter of establishing polling places for June 9 election, and recommended approval of the listing of polling places for the election: Document No. 7450 - Listing.
It was moved by Council Member Bakken and seconded by Council Member Babinchak that this recommendation be and is hereby approved.

Howard Swanson, city attorney, reported that the City has received information from the Attorney General's Office which would appear to allow the City to hold a voting location outside the precinct, which the City has done, but there is question whether City can hold a voting place outside the ward; and under the circumstances that the prior polling place is no longer in existence it appears that there would be reason for the City to authorize the polling place to be located outside the ward; and will be receiving further clarification but advise is for council to give approval this evening of the proposed polling places. Mr. Swanson reported that the council's action tonight will make determination that there are not facilities available to hold it within the ward and that there are circumstances warranting moving it outside. He also reported that the same ruling that was used earlier with respect to the special election will be true with regard to those residents that formerly resided within the ward, if presently displaced by virtue of the flood but have an intention to return to their permanent location they may vote within the ward in which their residence was previously located. He reported that there was a written opinion that they provided which will also apply with respect to this election; and not only in the ward in which voting outside the ward but city-wide.

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

APPROVE REQUEST FOR VARIOUS ACTIVITIES DURING
SIXTH ANNUAL GREAT RED RIVER DUCK RACE AND 29TH
ANNUAL SERTOMA FIREWORKS ON JULY 4, 1998

Committee No. 2, Public Safety, reported having considered the matter of Sixth Annual Great Red River Duck Race and 29th annual Sertoma fireworks display activities on July 4, 1998 on banks of the Red River, and recommended to approve activities in request, waive variance to noise ordinance on July 4, 1998 and to coordinate with the police department.

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

INTRODUCE ORDINANCE RELATING TO PAWNBROKERS

Committee No. 2, Public Safety, reported having considered the request that city attorney draft ordinance as part of Chapter XXI, Article 8, Pawnbrokers, that requires the police department to do a background check on pawnbrokers and set criteria for refusal of license, and recommended to approve proposed ordinance relating to pawnbrokers and to introduce for first reading.

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

Council Member Klave introduced an ordinance entitled "An ordinance amending Section 21-0804.1 of the Grand Forks City Code relating to pawnbrokers", which was presented, read and passed on its first reading.


APPROVE APPLICATION FOR ALCOHOLIC BEVERAGE
LICENSE AT 315 DeMERS AVENUE

Committee No. 2, Public Safety, reported having considered the application by CCS Investments, LLC dba Red River Cafe, 315 DeMers Avenue, for Class 4 (Food and Beverage Establishment) license, and recommended to approve application contingent upon review and approval by appropriate city officials.

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

APPROVE REQUEST TO ALLOW SWIS CORP. TO
UTILIZE LANDFILL FOR DISPOSING OF INERT REFUSE
FROM ITASCA COUNTY TRANSFER STATION THROUGH
END OF APRIL

Committee No. 3, Public Service, reported having considered the request from Solid Waste Integrated Systems of Pennington County to utilize City's landfill for disposing of waste from Itasca County Transfer Station, and recommended to allow SWIS Corp. to utilize landfill for disposing of inert refuse through the end of April, with payment of half of the bill on Itasca waste in advance.

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 AMENDMENT NO. 1 TO ENGINEERING
AGREEMENT WITH CPS, LTD. FOR PROJECTS 4706
AND 4707

Committee No. 3, Public Service, reported having considered the matter of agreements for engineering services for various projects: CPS, Ltd., Projects 4706 and 4707, water and storm sewer to serve the new middle school, Amendment No. 1 to include design engineering services, and recommended to approve Amendment No. 1 to the engineering agreement in amounts not to exceed $20,533 for Watermain Project No. 4706 and $12,911 for Sewer Project No. 4707, for a total increase to the agreement of $33,444.00.

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; voting "nay": none. Mayor Owens declared the motion carried.

APPROVE AMENDMENT NO. 1 TO ENGINEERING
AGREEMENT WITH CPS, LTD. FOR PROJECTS NOS.
4713 AND 4714

Committee No. 3, Public Service, reported having considered the matter of agreements for engineering services for various projects, CPS, Ltd. for Projects 4713 and 4714, storm sewer and paving North 55th Street from DeMers to Gateway, Amendment No. 1 to include design engineering services, and recommended to approve Amendment No.1 to the engineering agreement in amounts not to exceed $23,711.00 for Storm Sewer Project No. 4713 and $53,958.00 for Paving Project No. 4714, with total increase to the agreement of $77,669.00.

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; voting "nay": none. Mayor Owens declared the motion carried.

APPROVE AGREEMENT FOR ENGINEERING SERVICES FOR
PROJECT NO. 4710, LAND ACQUISITION FOR
EMERGENCY CLAY BORROW PITS

Committee No. 3, Public Services, reported having considered the matter of agreements for engineering services for various projects, Pribula, Project No. 4710, land acquisition for emergency clay borrow pits, and recommended to approve entering into agreement with Mr. Pribula in an amount of up to $2,500.00.

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; voting "nay": none. Mayor Owens declared the motion carried.

APPROVE AGREEMENT FOR ENGINEERING SERVICES
FOR STUDY OF RELOCATION PIPELINES OF WILLIAMS
PIPE LINE COMPANY

Committee No. 3, Public Service, reported having considered the matter of agreements for engineering
services for various projects, CPS, Ltd. to study relocation of lines of Williams Pipe Line Co., and recommended to approve entering into agreement with CPS, Ltd. in an amount of $8,000.

It was moved by Council Member Hagness 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, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Bakken, Hafner, Hagness - 14; voting "nay": none. Mayor Owens declared the motion carried.

ADOPT RESOLUTION CREATING ASSESSMENT DISTRICT,
WATERMAIN PROJECT NO. 4708, DISTRICT NO. 259

Committee No. 3, Public Service, reported having considered the matter of creating special assessment district for Project No. 4708, District No. 259, watermain on 17th Avenue South from Lynwood Circle to Industrial Park, and recommended that we adopt a resolution creating the special 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 that we declare intent to sell bonds to finance these improvements.

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 Hafner introduced the following resolution creating the assessment district, which was presented and read: Document No. 7451 - Resolution.

It was moved by Council Member Hafner and seconded by Council Member Klave 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.

ACCEPT ENGINEER'S REPORT, WATERMAIN PROJECT
NO. 4708, DISTRICT NO. 259

The deputy city auditor presented and read the engineer's report on Watermain Project No. 4708, District No. 259: Document No. 7452 - Report.

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

ADOPT RESOLUTION TO PREPARE PLANS AND
SPECIFICATIONS, WATERMAIN PROJECT NO. 4708,
DISTRICT NO. 259

Council Member Hafner introduced the following resolution to prepare plans and specifications, which was presented and read: Document No. 7453 - Resolution.

It was moved by Council Member Hafner and seconded by Council Member Klave 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.

ADOPT RESOLUTION CREATING ASSESSMENT DISTRICT,
WATERMAIN PROJECT NO. 4706, DISTRICT NO. 260

Committee No. 3, Public Service, reported having considered the matter of creating special assessment district for Project No. 4706, District No. 260, watermain on South Washington Street from 40th Avenue South to new middle school, and recommended that we adopt a resolution creating the special 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 that we declare intent to sell bonds to finance these improvements.

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 Hafner introduced the following resolution creating the assessment district, which was presented and read: Document No. 7454 - Resolution.

It was moved by Council Member Hafner and seconded by Council Member Klave 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.

ACCEPT ENGINEER'S REPORT, WATERMAIN PROJECT
NO. 4706, DISTRICT NO. 260

The deputy city auditor presented and read the engineer's report on Watermain Project No. 4706, District No. 260: Document No. 7455 - Report.

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

ADOPT RESOLUTION TO PREPARE PLANS AND
SPECIFICATIONS, WATERMAIN PROJECT NO. 4706,
DISTRICT NO. 260

Council Member Hafner introduced the following resolution to prepare plans and specifications, which was presented and read: Document No. 7456 - Resolution.

It was moved by Council Member Hafner and seconded by Council Member Klave 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.

ADOPT RESOLUTION CREATING ASSESSMENT DISTRICT,
SEWER PROJECT NO. 4713, DISTRICT NO. 392

Committee No. 3, Public Service, reported having considered the matter of creating special assessment district for Project No. 4713, District No. 392, storm sewer on North 55th Street from DeMers to Gateway, and recommended that we adopt a resolution creating the special 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 that we declare intent to sell bonds to finance these improvements; and with change in the engineer's report to change tapping fee on the assessment district map to a future assessment district.

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 Hafner introduced the following resolution creating the assessment district, which was presented and read: Document No. 7457 - Resolution.

It was moved by Council Member Hafner and seconded by Council Member Klave 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.


ACCEPT ENGINEER'S REPORT, SEWER PROJECT
NO. 4713, DISTRICT NO. 392

The deputy city auditor presented and read the engineer's report on Sewer Project No. 4713, District No. 392: Document No. 7458 - Report.

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

ADOPT RESOLUTION TO PREPARE PLANS AND
SPECIFICATIONS, SEWER PROJECT NO. 4713,
DISTRICT NO. 392

Council Member Hafner introduced the following resolution to prepare plans and specifications, which was presented and read: Document No. 7459 - Resolution.

It was moved by Council Member Hafner and seconded by Council Member Klave 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.

ADOPT RESOLUTION CREATING ASSESSMENT DISTRICT,
SEWER PROJECT NO. 4669.2, DISTRICT NO. 386.2

Committee No. 3, Public Service, reported having considered the matter of creating special assessment district for Project No. 4669.2, District No. 386.2, Southend Drainway Phase 2A, and recommended that we adopt a resolution creating the special 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 that we declare intent to sell bonds to finance these improvements.

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 Hafner introduced the following resolution creating the assessment district, which was presented and read: Document No. 7460 - Resolution.

It was moved by Council Member Hafner and seconded by Council Member Klave 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.

ACCEPT ENGINEER'S REPORT, SEWER PROJECT
NO. 4669.2, DISTRICT NO. 386.2

The deputy city auditor presented and read the engineer's report on Sewer Project No. 4669.2, District No. 386.2: Document No. 7461 - Report.
It was moved by Council Member Hafner and seconded by Council Member Klave that this report be and is hereby approved. Carried 14 votes affirmative.

APPROVE CHANGES IN TAPPING FEE POLICIES

Committee No. 3, Public Service, reported having considered the matter of tapping fee policies, and recommended to approve changes in the tapping fee policies: that tapping fees will be collected by the City Inspection Department on the lot or lots to which a building or site improvement permit is issued; or where at council's recommendation the tapping fee could be collected when the utility is connected.

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 PLANS AND SPECIFICATIONS FOR WATERMAIN
REPAIR PROJECT NO. 4758

Committee No. 3, Public Service, reported having considered the matter of plans and specifications for various projects: Project No. 4758, watermain repair at South 5th Street under RR tracks, and recommended to approve plans and specifications for project with funding from CDBG funds and if problem to take inter-connect portion or estimated $6,000 out of Watermain Replacement Funds, and to authorize call for bids.

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; voting "nay": none. Mayor Owens declared the motion carried.

ADOPT RESOLUTION APPROVING PLANS AND
SPECIFICATIONS AND ADVERTISEMENT FOR BIDS,
SEWER PROJECT NO. 4463, DISTRICT NO. 387

The city engineer's estimate of total cost of the construction of storm sewer on South 42nd Street from DeMers to 17th Avenue South 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. 4463, District No. 387, storm sewer on South 42nd Street from DeMers to 17th Avenue South, 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 Hafner and seconded by Council Member Klave that this recommendation be and is hereby approved. Carried 14 votes affirmative.

Council Member Hafner introduced the following resolution which was presented and read: Document No. 7462 - Resolution.

It was moved by Council Member Hafner and seconded by Council Member Klave that this resolution be and is hereby adopted. Carried 14 votes affirmative.
AWARD CONTRACT FOR SIDEWALK PROJECT NO. 4720

The deputy city auditor presented and read tabulation of bids which had been received and opened on March 2, 1998 for Sidewalk Project No. 4720, sidewalk removal and installation for 1998, indicating that Sherlock Construction was low bidder based upon their bid on a unit cost basis: Document No. 7463 - Bid Tabulation.

Committee No. 3, Public Service, reported having considered the consideration of bids for Project No. 4720, 1998 sidewalk repairs, and recommended to reject the bid of R & H Landscaping and to return their bid unopened.

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.

Committee No. 3, Public Service, reported having considered the matter of construction bids for Project No. 4720, 1998 sidewalk repairs, and recommended to accept the low bid of Sherlock Construction in the amount of $139,906.00 on a unit cost basis.

It was moved by Council Member Hafner and seconded by Council Member Klave that this recommendation be and is hereby approved and the contract awarded to Sherlock Construction. 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 contract awarded.

AWARD CONTRACT FOR PROJECT NO. 4721, 1998
CONCRETE STREET REPAIRS

Committee No. 3, Public Service, reported having considered the matter of construction bids for Project No. 4721, 1998 concrete street repairs, and recommended to accept the low bid of Opp Construction in the amount of $293,195.00.

It was moved by Council Member Hafner and seconded by Council Member Klave that this recommendation be and is hereby approved and the contract awarded to Opp Construction, LLC. 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 contract awarded.

AWARD CONTRACT FOR PROJECT NO. 4722, 1998
ASPHALT STREET REPAIRS

Committee No. 3, Public Service, reported having considered the matter of construction bids for Project No. 4722, 1998 asphalt street repairs, and recommended that we accept the low bid of Valley Contracting Company in the amount of $53,380.00.

It was moved by Council Member Hafner and seconded by Council Member Klave that this recommendation be and is hereby approved and the contract awarded to Valley Contracting Company. 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 contract awarded.

AWARD CONTRACT FOR PROJECT NO. 4724, 1998
ADA CURB RAMPS

Committee No. 3, Public Service, reported having considered the matter of construction bids for Project No. 4724, 1998 ADA curb ramps, and recommended to accept the low bid of R & H Landscaping, Frazee, MN in the amount of $49,650.00.

It was moved by Council Member Hafner and seconded by Council Member Klave that this recommendation be and is hereby approved and the contract awarded to R & H Landscaping.

It was reported that the City had taken approach whereby the City dedicated approximately one mill of property taxes or about $50,000 to do the work over a period of time, and City about halfway done with the curb ramps.

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 contract awarded.

AWARD CONTRACT FOR PROJECT NO. 4671, REHAB
OF LIFT STATION NO. 21, TO SMITH CONSTRUCTION
COMPANY

Committee No. 3, Public Service, reported having considered the matter of construction bids for Project No. 4671, Rehab Lift Station No. 21, and recommended to accept the low bid of Smith Construction Company for Schedule A, general and electrical contracts, in the amount of $280,267.00.

It was moved by Council Member Hafner and seconded by Council Member Klave that this recommendation be and is hereby approved and the contract awarded to Smith Construction Company. 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 contract awarded.

AWARD CONTRACT FOR PROJECT NO. 4654, CLEANING
BRICK SEWERS

Committee No. 3, Public Service, reported having considered the matter of construction bids for Project No. 4654, clean brick sewers, and recommended to reject the bids of Pipe Services Corporation, Carver, MN and Municipal Pipe tool Co., Inc., Hudson, IA who did not have contractor's license in bond envelope and to return bids unopened.

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.

Committee No. 3, Public Service, reported having considered the matter of construction bids for Project No. 4654, clean brick sewers, and recommended to accept the low bid of Spruce Valley Corporation, Middle River, MN in the amount of $117,280.00.

It was moved by Council Member Hafner and seconded by Council Member Klave that this recommendation be and is hereby approved and the contract awarded to Smith Construction Company. 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 contract awarded.

AUTHORIZE PURCHASE OF LAND FOR SOUTHEND
DRAINWAY, PHASE 2

Committee No. 3, Public Service, reported having considered the matter of land purchase from Park District for Southend Drainway, Phase 2, and recommended to authorize purchase of the 6.85 acres west of South Washington Street at a price of $10,000/acre, accept donation of permanent easement of 1.9 acres, and acceptance of construction easement, and rental of stockpile of 6 to 8 acres at an agricultural rate of up to period of five years.

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; voting "nay": none. Mayor Owens declared the motion carried.

APPROVE ANNEXATION POLICY, REFER TO CITY
ATTORNEY FOR REVIEW AND INCORPORATION INTO
PROPER CODES FOR FURTHER REVIEW BY COMMITTEE

Committee No. 3, Public Service, reported having considered the matter of annexation policy, and recommended adoption of policy and to refer this matter to the city attorney for review and incorporation into proper Codes and acceptance by the council: Document No. 7464 - Policy.

It was moved by Council Member Hafner and seconded by Council Member Klave that this recommendation be and is hereby approved. (It was noted by Council Member Hagness that this will be referred to the city attorney for his review and brought back to committee.) Carried 14 votes affirmative.

APPROVE CHANGE ORDER FOR PROJECT NO. 4687,
STORM SEWER CLEANING PROJECT

Committee No. 3, Public Service, reported having considered the matter of change order for storm sewer cleaning project, Project No. 4687, and recommended to approve change order in the amount of $2,235,395.61 to Viking Pipe Services Co., Inc. and extension of completion date to September 30, 1998.
The Flood Response Committee reported having considered the matter of change order for sewer cleaning and televising Project No. 4687, and recommended to receive and file.

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; voting "nay": none. Mayor Owens declared the motion carried.

APPROVE AMENDMENT NO. 1 TO ENGINEERING SERVICES
AGREEMENT FOR PROJECT NO. 4654.501, TELEVISING
SEWERS

Committee No. 3, Public Service, reported having considered the matter of Amendment No. 1 to Project No. 4654.501, engineering services for brick cleaning sewers, and recommended to approve Amendment No. 1 to the engineering agreement with Webster, Foster & Weston, to increase fees from $70,000 to $110,000.00.

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; voting "nay": none. Mayor Owens declared the motion carried.

APPROVE MEMORANDUM OF AGREEMENT FOR CORPORATE
PARK

Committee No. 4, Urban Development, reported having considered the matter of Corporate Park Memorandum of Agreement to the Programmatic Agreement between the Department of Housing and Urban Development, the City of Grand Forks, the Advisory Council on Historic Preservation and the North Dakota State Historic Preservation Officer, regarding HUD disaster assistance to Grand Forks, and recommended approval of the Memorandum of Agreement.

It was moved by Council Member Polovitz and seconded by Council Member Bouley 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 STANDARD MITIGATION MEASURES AGREEMENT
RE. REMOVAL OF FLOOD-DAMAGED PROPERTIES IN
PHASE 1 BUYOUT IN THE CITY

Committee No. 4, Urban Development, reported having considered the matter of Standard Mitigation Measures Agreement between the Federal Emergency Management Agency, the City of Grand Forks, North Dakota, and the North Dakota State Historic Preservation Officer pursuant to Stipulation IV-F-1 of the Programmic Agreement regarding FEMA-1174-DR-ND relating to removal of flood-damaged properties in the Phase 1 Buyout in the city of Grand Forks, and recommended to approve the agreement.

It was moved by Council Member Polovitz and seconded by Council Member Bouley 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.

INTRODUCE ORDINANCE TO ANNEX ALL OF MIGHTY
ACRES SECOND ADDITION, LOT 3, BLOCK 1, TJ'S
SECOND ADDITION AND PORTION OF UNPLATTED PROPERTY

The City Planning and Zoning Commission reported having considered the matter of the request from Tim Crary on behalf of Bert and Lyle Johnson and Alan Thompson for approval of an ordinance to annex to the city of Grand Forks, ND all of Lots 12 through 17, Block 1, Lots 6 through 17, Block 2 and Lots 8 through 20, Block 3, Mighty Acres Second Addition to the city of Grand Forks, ND, being bounded on the north by the north line of Mighty Acres First Addition located one-half block south of 49th Avenue South, on the south by the south line of the southend drainway and on the east by the west line of Julien's No. 2 Subdivision, located one half block west of Chestnut Street, and recommended introduction and approval of the ordinance to annex all of Mighty Acres Second Addition, all of Lot 3, Block 1, TJ's Second Addition to the city of Grand Forks, ND and a 140 ft. wide strip of unplatted property lying within a portion of the East Half of the NW Quarter of Section 27, Township 151 North, Range 50 West of the 5th Principal Meridian, more specifically described as lying west of and adjoining the west right of way line of Cherry Street being bounded on the north by the westerly extension of the south boundary line of Mighty Acres First Addition to the city of Grand Forks, ND and bounded on the south by the northerly lot line of Lot 3, Block 1, TJ's Second Addition to the city of Grand Forks, ND containing 33.6 acres more or less, and the date of the public hearing will be set for April 20, 1998.

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

Council Member Hagness introduced an ordinance entitled "An ordinance to annex to the city of Grand Forks, North Dakota, all of Mighty Acres Second Addition, all of Lot 3, Block 1, TJ's Second Addition and a 140 foot wide strip of unplatted property lying within a portion of the East Half of the Northwest Quarter of Section 27, Township 151 North, Range 50 West of the 5th Principal Meridian, more specifically described as lying west of and adjoining the west right of way line of Cherry Street being bounded on the north by the westerly extension of the south boundary line of Mighty Acres First Addition to the city of Grand Forks, North Dakota, and bounded on the south by the northerly lot line of Lot 3, Block 1, TJ's Second Addition to the city of Grand Forks, North Dakota, containing 33.6 acres more or less", which was presented, read and passed on its first reading.

REFER REQUEST TO ANNEX ALL OF STADTER RESUB-
DIVISION AND OTHER PROPERTIES BACK TO PLANNING
AND ZONING COMMISSION

The Planning and Zoning Commission reported having considered the matter of the request from DBLLC Enterprise and William and Helen Rath and others for approval of a resolution to annex all of Stadter Resubdivision and other properties to the city of Grand Forks, North Dakota (located south of 44th Avenue South between South Washington Street and South 16th Street (former Starlite Theatre property), and recommended introducing and approval of the resolution to annex based upon Option 1 with the exclusion of the Gransberg property and exclusion of the Krile property if Mr. Krile does not receive a notification of the proposed annexation prior to council action and to set the date of the public hearing for April 20, 1998. Mr. Krile has since been personally contacted by telephone on March 5, 1998 and was also mailed a certified letter. Mr. Krile had indicated that he would not object to the annexation of his property and would like to petition to have it rezoned from A-2 (Agricultural Reserve) District to B-3 (General Business) District, and that this seems like a reasonable request from a planning standpoint.

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

Glen Gransberg, Leeds, ND who had made comments earlier re. their opposition to the annexation, stated that Option 5A as presented this evening by the engineering department excluded their property and had no further comments. Mr. Vein noted that this property is not included in Option 5A.

It was moved by Council Member Hagness and seconded by Council Member Beyer to amend motion to include Option 5A.

Ken Vein, city engineer, reported that the motion has been amended for a recommendation for Option 5A and that the basic difference between Options 5 and 5A is the elimination of any of the annexations on 47th Avenue South, the elimination of any annexation north of 40th Avenue South and elimination of annexation along west side of Columbia Road; and his recommendation before council is one that engineering and public works committee have looked at and is following policies that were looked at and established within the existing Land Development Code and proposed for modification, and it would look at having the maximum amount of properties adjacent to the development included in the annexation as they have grown and the extension of any infrastructure throughout these annexed areas is installed would have a mechanism for assessing those improvements to those adjacent properties. He stated that in the past several years have gotten into a policy of creating tapping fee areas for those areas adjacent to the city limits and the amount of money and expenditures that the City has put towards tapping fees has significantly increased and is having a direct effect on the rate structure for those utilities, whether sanitary sewer, storm and water, and in some cases streets where have not had funding mechanism for doing this. He stated that there is no incentive for the property owner adjacent to develop as the City is installing infrastructure at no cost to those property owners and City bearing entire burden. He stated that is why looking at and expanding annexation policies so that they will annex these properties and look at development happening in more of an orderly development so the annexation recommended fits within the guidelines of that policy, and also looking at the protest of the property owners fits within the protest and engineering would recommend that type of annexation occur.

Yvonne Jacobson, Detroit Lakes, MN stated that her father, Francis Curran, and she and her brothers have property that is involved, that she has letters for the council and that they are surprised by Option 5A, that they attended Planning and Zoning Commission meeting who recommended Option 1 and that's option that was recommended and now have another option that takes another strip of the farm and would wish that they had time to look at this and consider. She stated that they do object to the annexation of portions of the Curran farmland, that the City choose to place the new school a mile from the city limits and now expects farm-land owners to pay for the infrastructure necessary for that school, that the School has off-site money from FEMA that could be used for water, sewer, etc., that the assessments would be terribly burdensome if part of their property annexed, the property owners are burdened with assessments and the City forces the property owners to develop the land before ready to do so. She noted that this farmland has been in their family for over 100 years and do not see reason for property to be annexed, leap-frog over farmland and object to annexation in any way. She stated they would like more time to consider and asked that they accept the Planning and Zoning Commission recommendation.
Mr. Broxmeyer reviewed annexation process; that there was a small committee set up of three members from Planning & Zoning and two from staff, they reviewed five different options and out of that came two recommendations, Option 1 or Option 5, but Option 5A is slightly different. He reported that Planning and Zoning recommended Option 1. It was noted that the Planning and Zoning Commission has not seen Option 5A, but difference is that they are reducing the area by eliminating the Gransberg area, the area along 47th and some right of way along South Columbia Road. It was also noted that if the council gave approval to this matter this evening, it would not go back to Planning and Zoning Commission; final decision on determination of protest would be made by this body.

Al Grasser, asst. city engineer, reported that the annexation in Option 5 included more area than Option 5A, and all of the property owners affected by 5A were impacted by Option 5, so no upward additional annexation surprises, only removals of annexation in 5A. He reported that the decision seemed to be tied to the development of the middle school but that's not entirely correct, but really looking at developing a policy they can apply uniformly throughout the city for all future annexations, because when an annexation comes in, depending upon what's being developed, need to provide different utilities and want to have logical, consistent method of applying annexations and development in the city. He also stated that the providing of a watermain to the middle school is a non-issue at this time, primarily because basically have created a future assessment district assessment for the watermain, and future assessment district for the watermain was previously approved. He stated that if this matter sent back to Planning and Zoning, he didn't think there would be any immediate impact on the School.

Patrick Curran, representing his brother and sister are in partnership with the 76 acres just east of Hwy. 81 and south of the city, that they appreciate cooperation of the Planning and Zoning Commission in receiving minutes, etc. but still would prefer Option 1 if at all possible because of impact to them.

It was moved by Council Member Hamerlik and seconded by Council Member Bouley to send
the matter back to the Planning Commission for further consideration. Carried 14 votes affirmative.

GRANT PRELIMINARY APPROVAL OF LeCLERC'S
ADDITION AND SEND BACK TO PLANNING AND ZONING
COMMITTEE FOR FURTHER CONSIDERATION

The Planning and Zoning Commission reported having considered the matter of the request from CPS, Ltd on behalf of Allen Thompson, Bert and Lyle Johnson and Ray and Myrna LeClerc for preliminary approval of the plat of LeClerc's Addition, Grand Forks, North Dakota, being a portion of the Northwest Quarter of the Southeast Quarter and the Southwest Quarter of the Northeast Quarter of Section 27, Township 151 North, Range 50 West of the 5th Principal Meridian, including a variance to Subdivision Regulation Section 18-0907 (2)(L)2 relating to right of way access to collector streets (located south of 55th Avenue South between Belmont Road and Cottonwood Street), and recommended denial of the request for preliminary approval because the subdivision plat includes a cul-de-sac street rather than a through street and for other reasons as listed and attached hereto.

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

Council Member Hagness reported that there was a denial from Planning Commission, that this could be referred back to Planning for reconsideration as he had received a letter showing a different plot plan
without the cul-de-sacs.

Mr. Broxmeyer stated he would prefer preliminary approval of the Planning recommendation and that way the process would not slow down for final approval subject to further design, and that they could work out details for Planning and Zoning.

Council Member Hagness moved to send this matter back to Planning and Zoning Commission as they have a new plan that will be acceptable and wants Planning and Zoning Commission to see that, Council Member Hamerlik seconded the motion.

Mr. Swanson reported in answer to question whether they could give preliminary and final approval at once, that there is a fast track method available. Mr. Broxmeyer stated that the only problem he would see with fast track method is that they do not permit fast tracking if there's any dedicated right of way, and in this case there is along Cottonwood Street.

After further discussion Council Members Hagness and Hamerlik withdrew their motion.

Council Member Beyer moved to give preliminary approval to the motion and to send back to Planning and Zoning Commission, Council Member Glassheim seconded the motion.

Council Member Hagness stated that this was with the understanding that Mr. Broxmeyer makes a recommendation to Planning and Zoning for the new plan that Mrs. LeClerc has submitted.
Mr. Broxmeyer reported he had received a copy of the new plan.

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

APPROVE CONTINUED ASSOCIATION WITH EQE
CONSULTANTS TO IMPLEMENT PLAN DEVELOPMENT
PROCESS FOR LONG TERM RECOVERY AND
RECONSTRUCTION AND REBUILDING PLAN

The Flood Response Committee reported having considered the matter of technical assistance requirements with EQE, and recommended to approve continuing technical assistance with EQE for the amount of $15,570 with the understanding that funding attempts from HUD would still be pursued.

The Flood Response Committee reported having considered the matter of EQE Consulting Services, and recommended approval of continued association with EQE Consultants to implement a plan development process for long term recovery and reconstruction rebuilding plan.

It was moved by Council Member Carpenter 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, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Bakken, Hafner, Hagness - 14; voting "nay": none. Mayor Owens declared the motion carried

APPROVE TECHNICAL ASSISTANCE REQUIREMENTS
WITH CAMIROS

The Flood Response Committee reported having considered the matter of technical assistance requirements with Camiros, and recommended to approve continuing technical assistance with Camiros for the amount of up to $85,000 with the understanding that funding attempts from HUD would still be pursued.

It was moved by Council Member Carpenter 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, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Bakken, Hafner, Hagness - 14; voting "nay": none. Mayor Owens declared the motion carried

APPROVE COMMERCIAL REHAB GRANT APPLICATIONS

The Flood Response Committee reported having considered the matter of Commercial Rehab Grant applicants, and recommended approval of four rehab grants: 1) Bonzers and LTD Properties for $192,431, 2) Caulfield Studios, Inc. for $140,000, 3) LTD Properties, Inc. and Victorian Rose Antiques for $31,970, and 4) Unique Impressions Salon for $28,326.

The Flood Response Committee reported having considered the matter of Commercial Rehab grant for Scott's Music, and recommended approval of grant request for internal rehab in an amount up to $112,180, plus $10,000 for external rehab, for a total of $122,180.

It was moved by Council Member Carpenter and seconded by Council Member Glassheim 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; voting "nay": none. Mayor Owens declared the motions carried

ESTABLISH DEADLINE FOR SUBMISSION OF COMMERCIAL
REHAB GRANT PROGRAM APPLICATIONS IN ZONE 3

The Flood Response Committee reported having considered the matter of establishing a deadline for submission of Commercial Rehab Grant Program applications in Zone 3, and recommended that a deadline of April 1, 1998, be established for Commercial Rehab Grant Program applications in Zone 3 and that, after this deadline, any unexpended funds for Zone 3 be transferred to Zone 1.

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

RESERVE COMMERCIAL REHAB FUNDS FOR POTENTIAL
REHABILITATION OF CERTAIN PROPERTIES IN ZONES
1 AND 2 OF COMMERCIAL REHAB DISTRICT

The Flood Response Committee reported having considered the matter of reserving Commercial Rehab funds to be used for the potential rehabilitation of certain properties in Zones 1 and 2 of the Commercial Rehab District, and recommended that a total of $995,000 in Commercial Rehab funds be reserved for the potential rehab of certain properties ($735,000 for the rehab of four properties in Zone 1 and $260,000 for the rehab of the Metropolitan Opera House in Zone 2).
It was moved by Council Member Carpenter 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, Lucke, Hamerlik, Bouley, Glassheim, Carpenter, Sande, Klave, Beyer, Babinchak, Bakken, Hafner, Hagness - 14; voting "nay": none. Mayor Owens declared the motion carried.

APPROVE INTEREST SUBSIDY PROGRAM

The Flood Response Committee reported having considered the matter of Interest Subsidy Program, and recommended approval of the Program as proposed.

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

SEND MATTER OF CBD VOLUNTARY ACQUISITION
POLICY BACK TO COMMITTEE

The Flood Response Committee reported having considered the matter of downtown owner requests for CBD Voluntary Acquisition Policy, and recommended that any buildings on the National Register, or determined to be eligible and inside the Rehab Grant Program boundaries, will not be allowed to be a part of the Voluntary Acquisition Program.

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

Council Members Hafner and Bakken asked that this matter be sent back to committee for further consideration.

RECEIVE AND FILE MATTER OF REQUESTS FOR
REIMBURSING DEMOLITION COSTS FOR EMPTY LOTS

The Flood Response Committee reported having considered the matter of downtown owner requests for reimbursing demolition costs for empty lots, and recommended to receive and file.

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

APPROVE FUNDING FOR WATER SYSTEM EMERGENCY
REPAIR

The Flood Response Committee reported having considered the matter of allocation of funds from Water System Emergency Repair, and recommended approval of funds in cost matrix line item for Water System Emergency Repair be moved from "proposed but not allocated" to "allocated".

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


AMEND PHASE II ACQUISITION PROGRAM TO ALLOW
NEGOTIATION OF INDEFINITE CLOSING DATES

The Flood Response Committee reported having considered the matter of indefinite closing dates in Phase II, and recommended to authorize an amendment of Phase II Acquisition Program to allow for indefinite closing dates to be negotiated.

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

Mr. Swanson reported that they will negotiate closing dates on Phase II, however, for everyone to be
aware there is a CDBG deadline for expenditure of the funds and any closing date will have to occur on or before that date which was three days from the award of the funds.

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

AWARD CONSTRUCTION OF PROJECT FOR DEMOLITION
AND SITE PREPARATION, ETC. FOR CORPORATE CENTER
AT 401 DeMERS AVENUE

The Flood Response Committee reported having considered the matter of Mortenson update - demolition and site preparation for ramp and foundation work and structural steel supply for 401 DeMers, and recommended awarding Magnus Trucking and Construction for the demolition/site preparation for the ramp in the amount of $56,425; Meide & Sons, Inc. for 401 DeMers foundations at $588,700; and to Fargo Tank & Steel for structural steel supply for $374,977.

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

Council Member Glassheim reported that Flood Response met today and amended the Meide portion of the bid award and moved that amendment that the contract be awarded to Meide & Sons, Inc. as indicated contingent upon co-payees for first tier subs and suppliers. Council Member Hafner seconded the motion.

Gene Schneeweis, 1004 University Avenue, questioned if federal funds that are being used to purchase property and bids, if there are regulations to operate and use that money and if in line with the amount of bids and land that is being purchased, that the appraisals for the land was $86,000 and being purchased for $189,000. Mr. Schneeweis asked if this money is being used out of federal funds, and he was told yes.

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

Upon call for the question on the motion, 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 motion carried.
APPROVE VOLUNTARY ACQUISITION PHASE IV
EXPANSION

The Flood Response Committee reported having considered the matter of additional Voluntary Acquisition, Phase IV, and recommended approval of Phase IV expansion using same past practice, valuations as of February 1, 1998 when available, taxes pro-rated to closing, flood insurance premiums refunded for five years and time-line guidelines to be determined by funding
source.

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

John Preibe, 83 Sloping Hills Cove, commented on importance of proceeding with the Phase IV Voluntary Acquisition, that he just recently took job transfer to Watertown, SD, and will be leaving next month, that his property is on the wet side of the proposed dike and that he has listed property on the real estate market but doesn't really see that as an option, and would like to see Phase IV go forth as quickly as possible. He also suggested that possibly the City could look at acquiring the properties without coming up with full value of the property itself.

Mr. Swanson reported that if Phase IV is adopted, there are a number of changes to that document that will need to be made, and if Program approved tonight those changes would be implemented for Phase IV. He also noted that salvage policies will be same as what exists.

Mrs. Johnson stated that the salvage policy is that "no salvage except as authorized by the City", that today she talked with Travis Maruska, Urban Development Office, who stated that in the prior buyouts most of the homes were so damaged that if there was anything anybody could take they let them have it. Mr. Swanson stated that would be an extreme over generalization; and that the Office of Urban Development does handle salvage requests, have a number of properties that have closed and have had salvage garages and salvage accessory buildings, salvage woodwork and appliances, so to say they were simply included would be incorrect. Phase I properties were substantially damaged, however, in other phases they have closed, many properties had significant salvage; and have charged those people current value for taking out of their homes, and policy applied based upon what value of that particular item of salvage has on overall structure. Mrs. Johnson stated that some houses have new furnaces, etc. and that City should really look at salvage policies when getting into these new homes. Mr. Swanson reported they have had no problem with salvage policy; and that he understands that many homes in Phase IV do not have the damage as homes in Phase I had, however, homes in other areas City has acquired, many had minimal basement flooding which is similar to properties that fall in Phase IV. He stated that the salvage policy for Phase IV is not any different than what is applied in other phases. Mr. Swanson also reported that they have done on a case by case basis determined what items property owners wish to salvage, determine what impact item has in the overall value of the home, if an item that is truly valued at replacement cost, that's what's been used; property damaged or slightly damaged for salvage has been approved at a lower value and policy could be changed to say that. Mr. Swanson stated he would submit to council and ask how many council members have received complaints since the acquisition program was initiated in regard to the salvage issue and that would demonstrate the reasonableness of the staff in dealing with salvage issues; that they heard lot of complaints before program implemented about how difficult policy was, but when comes down to an application it has worked very well.

Doug Sprehe, 610 Plum Avenue, raised question re. people in Phase IV that want to relocate in Grand Forks, relative to denial of a building permit or denial of access to home, and that by not qualifying for either one of those did not qualify for the programs under SBA; but for future of the 300 homes that may want to take part in those that if it would be possible for the City to revise their policy and deny a building permit based on location, wet side of the dike, footprint of the dike, but not deny him access to his home because would like to continue to live there until he finds another home, but would help SBA process go easier; and better to change policy at this level rather than force SBA to change theirs. Mr. Swanson reported that he has made request to SBA to examine their policies with respect to relocation, however, to adopt a policy denying building permits when they are otherwise provided for in your City Code will constitute a civil rights violation, which would be enforceable in litigation or otherwise; that council has no legal basis to deny a building permit from one property owner seeking to get a building permit and otherwise meets Code. He stated it may be an easy way out to seek solution but produces a number of implications that are negative to the City; that he doesn't know what the answer will be from the SBA to the request but are attempting to work through those processes at this time.

Council Member Hamerlik reported that they received summarization of Phase IV as distributed by Mr. Swanson prior to their meeting, it seems appropriate to move through that and accept it, however, there is not a date which has to do with the specific date in which the time of appraisal is, and he indicated that Council Member Carsen would speak to that. Mr. Swanson reported that the reason there is no date is because the assessor's office, when they have compiled their information for prior offers have completed new appraisals of the properties. He reported he met with Mr. Carsen and discussed the recommendation from the Flood Response Committee using the true and full value for purposes of taxation as of February 1, 1998, Mr. Carsen felt that if his office were going to be involved in the determination of value, that they should be allowed to make their appraisals as they have been in prior Phases.

Mel Carsen, city assessor, reported he had some concerns re. February 1, 1998 date; one is the post-flood value, which includes the loss in value from any damage that exists in the property; second problem with February 1 date is that it's very difficult to get a good handle on market values on homes in that area of town post-flood, very few sales because of lack of market, and thinks it might be better to set a date pre-flood and that would treat the same as all other buy-out plans have had to date and would value property without any damage but pre-flood. He stated another way could do it is with pre-flood value with an inflation adjustment to bring to some other date. He stated at any rate there should be a date certain set as far as valuation, otherwise, on an appeal especially an appraiser would have to know what date he's appraising the property at and becomes very critical because if set certain date, you cannot use sales or information that might affect or influence the market after that date, or use information up to that date. Council Member Hagness questioned whether improvements post-flood be added to the valuation, and Mr. Carsen stated that would be proper, value of the property as it exists if they have made improvements, but use valuation date pre-flood or April 17, 1997. Council Member Beyer stated another reason for doing pre-flood valuation is that if have to buy home, it will be pre-flood and questions raised if spend flood insurance, is it deducted and council stated if spent on rehabbing that it would not be deducted, and to keep consistent with what said to this point and with other programs, should do the pre-flood date that council had discussed at the beginning.

John Butz stated that banks will not give mortgage on property on wrong side of the dike so no sales and post-flood value hard to find but have to figure out way but going to be expensive to buy back in as value would have gone up but can't wait on this much longer - looking at rent and mortgage.

Mrs. Johnson questioned how long Phase IV buyout be in effect; Mr. Swanson reported that he had advised Flood Response Committee that it would be limited time program but no time table has been set, would expire once the acquisition program started for the levee construction, if that is approved; and as identified in agenda item re. closing dates in Phase II acquisition program, the CDBG funds do carry an expenditure date so program would have to be concluded on or before that expenditure date or three years from the date the original CDBG grant was awarded, and would be in advance of any true formal acquisition program sponsored by the Army Corps of Engineers.

Council Member Klave agreed that they should go to the value pre-flood because that was discussed with a lot of the residents immediately after the flood and there also was discussion that if they used their flood insurance for basic minimums to get back into their house that it wouldn't be deducted and has to be kept in the consideration. Mr. Swanson reported that if that were the intent of this body it would require an amendment because the Flood Response Committee's motion did not include a pre-flood value.

It was moved by Council Member Klave and seconded by Council Member Beyer to include pre-flood values plus compensation for renovation (with receipts) of their house.

Mr. Swanson stated that their might be some confusion with regard to the receipts and improvements from flood insurance, and also that duplication of benefits policies apply and that is what council is discussing, that will apply by virtue of federal law regardless of what council does, and what they are attempting to do is provide property owner with the higher of pre-flood value or post-flood value given any improvements that have occurred; and that is original recommendation out of his office and would be based upon higher of pre-flood or post-flood value as determined by independent appraisal, and was changed at Flood Response.

There was discussion relative to the motion. Mr. Swanson reported that Phase IV is a substantially different acquisition program because of the nature of the property they are acquiring; that by virtue of Phase II all of those properties had to be substantially damaged, also Phase III, of more than 50% of the value, and Phase IV has no reference whatsoever to damage, but purely by location and may find some homes that have no impact on value due to damage, or find other homes that have appreciated either because of repairs or otherwise; and intent of Phase IV was to provide a benefit and was to encourage those people that would like to get some of the paperwork out of the way and move forward, and have at least 8 requests in their office; Mr. Carsen is telling council that he would like to have some flexibility in determining the offer price rather than tied to the true and full value. By experience they know the damage of the home is more likely there will be an appeal on the price, and the more likely you will occur two separate appraisals, and Mayor's committee will attest to that; the less damage the more likely going to have current date appraisals and were attempting to recognize and accommodate when made recommendations on Phase IV. Council Member Hafner stated that their goal is to pay a fair price, but if go with Council Member Klave's amendment, could pay more than what the house is worth - pre-flood would be the value of the house so if add improvements, should only pay for those which are greater than what it was originally.

Council Member Klave stated that was the intent of his motion; that his motion was to pay the higher of the two values when assessed by the assessing department, pre-flood plus improvements.

Doug Christensen stated that this discussion points out problem that exists with this policy and should be pursued with all vigor and haste, that motion is attempting to give those who are affected a fair value of their homes, that there is debate as to what should or shouldn't be included, but what doing tonight is going to impact seriously upon the proposed southend development. He said that he heard Mr. Swanson say that CDBG money has to be spent by sometime three years from May or June of 1997, or committed. He noted that there has been discussion as to other sources of funding but there's 50 people in his subdivision who are on the line or wrong side of the dike, and people in other areas who are on the line or wrong side of the line, and these people have to know if they're going to have any walking around money to buy a house in a new addition; that if they don't re-create the market with some degree of specificity and some degree of certainty within next 3 to 6 months, that subdivision isn't going to take off. He suggested that he agrees with Mr. Carsen's proposal, pre-flood value with some inflation factor for comparable homes throughout the city, going to have to blend some of the relocation act to this policy so that people who opted out for this voluntary policy feel they're being treated fairly, but if take a little time and develop policy that will help a lot of people make some decisions where they're going to be 18-24 months from now, and would suggest that elicit the comments of one or two individuals from the affected areas as to how they see the policy affecting them before enacting this policy. He suggested that rather than adopting this policy tonight refer back to committee, and allow them to spend more time on this with Mr. Carsen's assistance and with a few of the affected homeowners and come back in two weeks with a policy, and shouldn't have to be adopted with amendments because going to affect people and golf course subdivision.

Council Member Beyer supported the adoption of the policy, that this is voluntary and the policies for the dike line acquisition and those affected properties are coming out within the next week, and that gives them a Phase IV, which they can review and also look at dikeline policy and choose for themselves.

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

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

APPROVE APPOINTMENTS TO RIVER FORKS COMMISSION

Mayor Owens announced the appointment of the following individuals to the River Forks Commission: Kathleen Lander for three-year term expiring December 31, 2000; Linda Magness to fill unexpired term ending December 31, 1999; and Cheryl Smith to fill unexpired term ending December 31, 1998; and asked for concurrence in these appointments.

It was moved by Council Bouley and seconded by Council Member Glassheim that these appointments be and are hereby approved. Carried 14 votes affirmative.

APPROVE APPOINTMENT TO CIVIL SERVICE COMMISSION

Mayor Owens announced the appointment of Fred MacGregor as member of the Civil Service Commission for a three-year term expiring December 8, 2000. Mr. Swanson reported that the situation with the Civil Service Commission is unique and difficult right now, that last week the Commission heard portions of an appeal by an employee that is appealing from a disciplinary action of the Mayor, the hearing took considerably longer than anticipated and as a result it was continued to April 9, that by confirming appointment of Mr. MacGregor as a civil service commissioner would remove Sally Page from hearing the appeal of Cheryl Westphal and further require that the proceeding that occurred last week perhaps be restarted, and advised council to either table the confirmation of the appointment of Mr. MacGregor to the Civil Service Commission until the conclusion of that proceeding, or appoint Mr. MacGregor on a provisional basis specifically providing that Ms. Page will continue to act as a Civil Service Commissioner for purposes of consideration and decision on the appeal of Ms. Westphal only.

It was moved by Council Member Hagness and seconded by Council Member Hamerlik to approve the appointment of Mr. MacGregor with Ms. Page to continue to act as special civil service commissioner only for the purposes of continuing her role in considering and deciding the appeal of Ms. Westphal and all other matters with regard to the position would be carried on by Mr. MacGregor, and upon the final consideration and action of the Civil Service Commission on the appeal of Ms. Westphal, Ms. Page's role on Civil Service commission will automatically be terminated. Carried 14 votes affirmative.

AUTHORIZE ATTENDANCE OF FLOOD RESPONSE
COMMITTEE'S CHAIR TO ATTEND CHAMBER OF
COMMERCE TRIP TO WASHINGTON, DC

Mayor Owens reported that Chamber of Commerce had planned a trip with local business community members and representatives of local government to Washington, D.C. to visit with Congressional people and officials in Washington re. concerns of our community, and was cancelled because of the flood. She reported that she and Council Member Hagness as president of the council were scheduled to attend, that there is funding for Tri-chairs to attend this meeting, and would like to include Council Member Hafner who is chairperson of the Flood Response Committee also to attend this meeting. It was moved by Council Member Glassheim and seconded by Council Member Bakken to authorize Council Member Hafner to attend the meeting. Upon call for the question on the motion, 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 motion carried.

REFER VARIOUS ITEMS TO COMMITTEE

Various items were presented to the council and/or referred to committee as follows:

1) Council Member Bakken reported that they have phase where City is paying for $2,000 worth of material with volunteers doing work, and appears to be some confusion with the public that they feel they don't qualify, and need to encourage people to request this as majority will qualify, need to contact United Way for this program.

APPROVE CHANGE ORDER FOR HOUSING DEMOLITION

The Flood Response Committee reported having considered the matter of change order for housing demolition, and recommended to approve change order in the amount of $3,750 for property at 401 South 3rd Street adjacent to the water treatment plant to Gowan Construction for this residential demolition.

It was moved by Council Member Glassheim and seconded by Council Member Beyer that this recommendation be and is hereby approved. Upon call for the question on the motion, 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 motion carried.

REFER MATTER OF NORTHEAST HUMAN SERVICES
RELOCATION BACK TO COMMITTEE

The Flood Response Committee reported having considered the matter of Northeast Human Services relocation, and recommended to allocate $700,000 from the cost matrix of CDBG funds toward the cost of Northeast Human Services building.

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

Council Member Hamerlik stated this is a controversial item; Mr. Swanson advised that this is deemable to be controversial because it does not appear on the city council agenda, and without the unanimous consent the item cannot be acted upon by the body until your next meeting or a special meeting. Council Member Hafner reported that it was the intention of the committee to have this item discussed tonight and brought back to Flood Response on Wednesday, with possible action on Friday. Council Member Hamerlik stated he would yield half way on this, so that if someone in the audience only fair to allow them to speak, but shouldn't get into discussion here by council as they will do that on Wednesday or at a special meeting.

Mr. Swanson reported that procedurally this item is not on the agenda, under council's rules if not unanimously approved for discussion, there is no further discussion and is referred back to committee if there has been no action or if action taken by committee is held for your next meeting. He stated that at this point the committee has made a recommendation, and if two committee members wish to take back to committee that opens it back up for committee to make whatever recommendation; to call for special meeting Mayor or members of the council can call special meeting and identify in that call the agenda item. He stated that Council Member Hamerlik is suggesting that he has withdrawn his declaration of controversial item for purposes of allowing some limited discussion tonight, he has the ability or anyone else on council has ability to at that point to declare it controversial and you cannot act on it.

Council Member Glassheim stated his intention was to have informational presentation so that council aware and have some discussion, but not to act on tonight.

Mayor Owens called for discussion.

Council Member Glassheim reported that the request is for $700,000 from the CDBG supplemental to write down the construction costs of the Northeast share of going into the County building and adding two floors to that building, that without this amount it looks like it will not happen and advantages of it are that there's been cooperation between County, City and State to this point, and this would be further evidence of cooperation and extremely consumer friendly to the clients and capstone to the redevelopment of the southend of downtown by bringing in 140 jobs and 150 clients per day.

Murray Sagsveen reported that on February 1 Governor Schafer appointed him State Health Officer, and requested that Carol Olson, director of Human Services, take the lead on this project, that the State has been very supportive of this project for a number of reasons, that it could provide one-stop shop for all clients rather than at separate locations, provide better working conditions for the State employees, co-location could result in a cost savings for both of the parties, the County and State, and Governor Schafer also believed that relocation could jump-start the City's efforts to rebuild the downtown and that they have been very pleased that the negotiations have progressed to the point that they have in just a few months. He summarized the efforts that the State has made to make this project a success; that the Governor agreed to pick up 100% of the County's cost-share for the non-federal FEMA cost share much as the City, that State has put $450,000 in general fund matching money into this project and FEMA will put in $4,050,000 million and comes to $4.5 million; that Governor Schafer has set aside $3,010,000 in State CDBG money that has come to the State, so of the $10 million that went to the State CDBG money, the Governor has set aside 30% of that money for this project and is large project and significant effort, and from the beginning they have tried to make this a rent-neutral transfer from the existing landlord to the County building but if that's not possible, Carol Olson is considering the possibility of increasing their request to the Legislature for additional rent to make it cash-flow, and Governor has already put $3,460,000 on the line to make it go.

Council Member Hafner asked what matrix would look like if State not involved in this. Gary Malm, Grand Forks County Commissioner, reported that they tried to use every method possible to bring this into scale of economy and bring cost down; if take State out, savings aren't as great because they will lose some of that money, but didn't know amount of dollars; that if take them out, isn't like taking one-third of the building out. He stated that State has gone extra step have tried to put all together and now know figures need to put together to provide what you want and is $700,000. He stated that parking problem is one of the things they don't know costs because haven't been able to deal with that; will have figures for Flood Response on Wednesday.

Council Member Babinchak questioned how much of the $8.225 County share is contributed to Northeast Human Services to get them into the building, City share $700,000. Mr. Malm stated that the County would issue revenue bonds to take care of it through NE Human Services rental and not subsidizing anybody, but trying to be revenue neutral.

Jim Kobetsky, Schoen Associates, stated it would be impossible to know costs by Wednesday's meeting, impossible to break out.

Council Member Hafner asked if State not involved, could it cost County more money than they think it would cost; Mr. Kobetsky stated they would direct architect to design to budget, etc.

Bob Sanderson, regional director of Northeast Human Service Center, pointed out that the $700,000, if City decided to allocate, would not get them to budget-neutral, the State would still be paying about $116,000 more in rents than existing rent, the hope has always been to get to budget-neutral and are going to try to continue working toward that goal and would need the $700,000 to make this work. He stated it is advantageous to people they serve in the city but also aware that Grand Forks is going to have to look for lot of money in the next Legislative Session and this is another thing people will look at if there's a great increase in the rents, but going to try to keep paring this down and doesn't know what will happen if that doesn't work out, that part's still being studied.

Council Member Glassheim and Council Member Hafner asked that this go back to Flood Response Committee for further discussion, and asked that Mayor call a special meeting.
REFER VARIOUS ITEMS TO COMMITTEE

2) Council Member Glassheim reported that the Empire Theatre would have its grand opening on Friday, March 27.
3) Council Member Lucke asked for copies of the current cost matrix.
4) Council Member Beach announced that he will not be re-running for council
seat, that it's been 12 years, and has reviewed his situation carefully and time to put aside. He stated he will miss all of them, but believes it's time.
5) Mr. Swanson reported that the Attorney General's Office and State Bar Association will be holding a consumer forum on April 6 at 7:00 p.m. at Red River High School.

VIDEO PRESENTATION ON FLOOD AND RECOVERY

John French thanked Mr. Swanson for opportunity to put this together; Jeff Anderson edited the video.
The video was presented.

Mr. Swanson thanked Mr. French, that he had asked Mr. French to help document what the community went through and accomplished what asked to do, that what's important for community is to document historically in written and audio form, video form and this was attempt to do that. He stated that this video will be available for departments, council members, etc. who wish to show it at events or presentations, etc. and shows community coming back to its feet.

Mayor Owens reported that May 17 has been set as community thank you day, and on April 19 there will be an all faiths community service at the Chester Fritz at 4:00 p.m. which will be televised.

ADJOURN

It was moved by Council Member Hagness and seconded by Council Member Bouley that we do now adjourn. Carried 14 votes affirmative.


Respectfully submitted,



Saroj Jerath
Deputy City Auditor

Approved:
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Patricia A. Owens, Mayor