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PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF GRAND FORKS, NORTH DAKOTA
Monday, April 20, 1998

The city council of the city of Grand Forks, North Dakota met in its adjourned session in the council chambers on Monday, April 20, 1998 at the hour of 7:30 o'clock p.m. with Mayor Owens presiding. Present at roll call were Council Members Beach, Polovitz, Lucke, Hamerlik, Glassheim, Carpenter, Sande, Klave, Babinchak, Bakken, Hafner, Hagness - 12; absent: Council Members Bouley, Beyer -2.

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.

HEAR BRIEFING RE. DEVILS LAKE

Joe Belford, Ramsey County Commissioner, stated he was here to make council aware of what's going on in Devils Lake and what they hope to accomplish through the process. He stated there is a Red River Basin Board which is a 21-member board, composed of three states and province of Manitoba and meet on a monthly basis (first Thursday of every month), and that their goal and mission is water management throughout the entire Red River Basin.

Mr. Belford summarized the history of Devils Lake flooding and actions taken to date, outlet alternatives that have been evaluated and the proposed emergency outlet plan. Mr. Belford stated he would be around to keep council updated on this matter.

ADOPT ORDINANCE NO. 3708, TO ANNEX ALL OF
MIGHTY ACRES SECOND ADDITION, ALL OF LOT 3,
BLOCK 1, TJ'S SECOND ADDITION AND A 140 FT.
STRIP OF UNPLATTED PROPERTY LYING WITHIN A
PORTION OF EAST HALF OF NW QUARTER OF SECTION 27

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 had been introduced and passed on its first reading on March 16, 1998, was presented and read for consideration on second reading and final passage.

The city auditor exhibited affidavit of publication of notice to the public that this petition for annexation had been filed with the city council and had been published as required.

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 it was moved by Council Member Sande and seconded by Council Member Klave that we find an insufficiency of protest to the annexation. Carried 12 votes affirmative.
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, Glassheim, Carpenter, Sande, Klave, Babinchak, Bakken, Hafner, Hagness - 12; voting "nay": none. Mayor Owens declared the ordinance adopted.

ADOPT ORDINANCE NO. 3709, AMENDING STREET
AND HIGHWAY PLAN TO INCLUDE PUBLIC RIGHTS
OF WAY SHOWN AS DEDICATED ON THE PLAT OF
LeCLERC'S 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 LeClerc's Addition to the city of Grand Forks, North Dakota", which had been introduced and passed on its first reading on April 6, 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 city auditor reported that the required legal notice had been published calling for a public hearing to be held on this matter this evening And further that to date no protests or grievances had been filed with his office.

Mayor Owens called for the public hearing. There were no comments and the public hearing was closed.

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, Glassheim, Carpenter, Sande, Klave, Babinchak, Bakken, Hafner, Hagness - 12; voting "nay": none. Mayor Owens declared the ordinance adopted.

REPORTS OF OFFICERS

The city auditor presented and read the cash balance report as of March 31, 1998. It was moved by Council Member Babinchak and seconded by Council Member Hagness to receive and file the report. Carried 12 votes affirmative.

REPORT OF BOARD OF ZONING ADJUSTMENT

A communication from the secretary of the Board of Zoning Adjustments was presented and read, stating that the Board had held a public hearing in City Hall on Thursday, March 26, 1998, that notice had been published as required and that the following appeals were heard: 1) Curt Siewert on behalf of the City of Grand Forks, 13 South 4th Street, request for variance to the flood proofing requirements to substantially remodel the structure, application for variance was withdrawn; 2) Jerald Notbohm, 702 South 9th Street, request for variance to the garage front setback requirements to erect a detached garage, with variance approved allowing 17 ft. of setback to the drive-in door of an accessory building to build a new detached garage; 3) Frank and Nicole Walski, 1226 Russet Circle, request for variance to the rear yard setback requirements to erect a dwelling, with request held until their next meeting; 4) Tom Corbit, 823 19th Avenue South, request for variance to the impervious surface area and accessory building size requirements to erect a detached garage, with variance approved allowing up to 1,120 sq.ft. of accessory building area and 44% impervious surface area coverage of the property to build a new detached garage; and 5) Gary Malm on behalf of Grand Forks County Commission, 105, 111, 125 and 129 South 4th Street and 300 Bruce Avenue, request for variance to the building height requirement to erect a building, item held until next meeting.

It was moved by Council Member Hagness and seconded by Council Member Babinchak to receive and file. Carried 12 votes affirmative.

APPROVE BILLS

Vendor Payment Listing No. 98-06, dated April 20, 1998, and totaling $3,380,709.48, all having been audited by the city auditor for payment in accordance with regulations, was presented and read.

It was moved by Council Member Glassheim and seconded by Council Member Hafner 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, Glassheim, Carpenter, Sande, Klave, Babinchak, Bakken, Hafner, Hagness - 12; voting "nay": none. Mayor Owens declared the motion carried and the bills ordered paid.

APPROVE APPLICATIONS FOR 3-YEAR REMODELING
EXEMPTIONS

Committee No. 1, Finance, reported having considered the applications for three-year remodeling exemptions for the following properties: 1) 409 Gateway Drive, Kevin Frohlich, A-1 Vacuum, and recommended approval of the application.

It was moved by Council Member Babinchak and seconded by Council Member Bakken that this recommendation be and is hereby approved. Carried 12 votes affirmative.

Committee No. 1, Finance, reported having considered the application for three-year remodeling exemption for property at 3527 11th Avenue North, Elizabeth Brocker, and recommended approval of the application based upon pre-flood 1997 value.

It was moved by Council Member Babinchak and seconded by Council Member Bakken that this recommendation be and is hereby approved. Carried 12 votes affirmative.

Committee No. 1, Finance, reported having considered the application for three-year remodeling exemption for property at 322 North 20th Street, Kenneth and Marion Sobolik, and recommended approval of the application.

It was moved by Council Member Babinchak and seconded by Council Member Bakken that this recommendation be and is hereby approved. Carried 12 votes affirmative.

Committee No. 1, Finance, reported having considered the application for three-year remodeling exemption for property at 1432 Walnut Street, Lynus and Deborah Sevigny, and recommended approval of application based upon pre-flood 1997 value.

It was moved by Council Member Babinchak and seconded by Council Member Bakken that this recommendation be and is hereby approved. Carried 12 votes affirmative.

REVIEW MATTER OF GUIDELINES FOR THREE-YEAR
EXEMPTION OF IMPROVEMENTS TO PROPERTY

Committee No. 1, Finance, reported having considered the matter of guidelines for the three-year exemption of improvements to property, and recommended that policy guidelines include change as follows: that all applications received prior to February 1, 1999 would use February 1, 1997 pre-flood value.

It was moved by Council Member Babinchak and seconded by Council Member Bakken that this recommendation be and is hereby approved. Carried 12 votes affirmative.

ACCEPT OFFER TO PURCHASE LOT B, HARTY'S
2ND ADDITION (4330 GATEWAY DRIVE)

Committee No. 1, Finance, reported having considered the offer to purchase Lot B, Harty's 2nd Addition (4330 Gateway Drive), and recommended to accept the offer of Terry Rogers for this property in the amount of $19,000.

It was moved by Council Member Babinchak and seconded by Council Member Bakken that this recommendation be and is hereby approved. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Glassheim, Carpenter, Sande, Klave, Babinchak, Bakken, Hafner, Hagness - 12; voting "nay": none. Mayor Owens declared the motion carried.

APPROVE BUDGET AMENDMENTS

Requests for budget amendments for the Public Library in the amount of $200,329.00, prior year's cash carryover; for Public Library in the amount of $17,775.00 to reflect unanticipated revenue from LSCA grant funds; for Public Transportation in the amount of $40,629.00 to purchase automated dispatching equipment (ADA requirement) FTA 80% and State aid 20%; for Greater Grand Forks Youth Committee in the amount of $20,000.00 to reflect grant monies, were presented and read. It was moved by Council Member Babinchak and seconded by Council Member Bakken that these budget amendments be and are hereby approved. Carried 12 votes affirmative.

APPROVE REQUEST FROM EMPLOYEE FOR LEAVE
OF ABSENCE

Committee No. 1, Finance, reported having considered the matter of employee request for leave of absence and recommended approval of leave of absence without pay for Margaret Emanuel in order that she may receive pay from other employer during her 30-day leave of absence (with no cost to the City of Grand Forks).

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

Council Member Beach stated that this might be setting bad precedent, that employee not risking much at all by trying out another job and have City as a back stop, and urged council to reject the motion, and asked for a roll call vote on the matter after discussion. It was noted that the ordinance allows department head to give 30 days and mayor can grant 60 days leave without pay and all this is doing is to give this individual the opportunity that when she goes to the other position an opportunity to earn pay; that there will be no cost to the City. Council Member Polovitz asked what impact would be on other employees in the department, if employee can leave for 30 days and not have impact. Council Member Hamerlik stated that the employee is allowed to take 30 days without pay, so impact will still be there, and only thing City doing is to allow that employee to collect pay at the other job and not collect any pay from the City so impact on the employees will be the same whether we grant it or not. There was some discussion re. holding job for this employee and guaranteeing re-employment; that if have valued employees don't want to create further incentives for them to leave.

Upon call for the question and upon roll call vote, the following voted "aye": Council Members Hamerlik, Glassheim, Carpenter, Babinchak, Bakken, Hafner, Hagness - 7; voting "nay": Council Members Beach, Polovitz, Lucke, Sande, Klave - 5. Mayor Owens declared the motion carried.

APPROVE LETTER OF INTENT RELATIVE TO EXCHANGE
OF SPACE BETWEEN CITY AND COUNTY FOR HEALTH
DEPARTMENT AND SHERIFF'S OFFICE

Committee No. 2, Public Safety, reported having considered the matter of letter of intent re. County Office Building (proposal to locate health department in the new office complex and Sheriff's Office to occupy equivalent amount of space in current Police Building/Law Enforcement Center), and recommended to request Mayor's Office to draft letter of intent that City is willing to make this exchange of space in the County Office building and Police Department building, send it on to council for approval and forwarding to the County.

It was moved by Council Member Glassheim and seconded by Council Member Sande that this recommendation and Mayor's letter be and are hereby approved. Carried 12 votes affirmative.

APPROVE VARIANCES TO NOISE ORDINANCE

Committee No. 2, Public Safety, reported having considered request for variance to noise ordinance: UND Squires Hall staff during Karoke Program April 30, 1998, and recommended approval of request for variance to noise ordinance until 12:30 a.m.

It was moved by Council Member Glassheim and seconded by Council Member Sande that this recommendation be and is hereby approved. Carried 12 votes affirmative.

Committee No. 2, Public Safety, reported having considered the request for variance to noise ordinance by Sigma Chi Fraternity (bands) on April 24, 1998, and recommended to grant request for variance to noise ordinance until 12:30 a.m.

It was moved by Council Member Glassheim and seconded by Council Member Sande that this recommendation be and is hereby approved. Carried 12 votes affirmative.

Committee No. 2, Public Safety, reported having considered the matter of request for variance to noise ordinance, Rio Bravo Cantina for Cinco De Mayo celebration on May 5, and recommended to grant request for variance to noise ordinance until 12:30 a.m.

It was moved by Council Member Glassheim and seconded by Council Member Sande that this recommendation be and is hereby approved. Carried 12 votes affirmative.

AUTHORIZE FOUR-WAY STOP AT CAMPBELL DRIVE
AND CHERRY STREET

Committee No. 2, Public Safety, reported having considered the request for four-way stop at Campbell Drive and Cherry Street, and recommended to install four-way stop at Campbell and Cherry Street and to do a traffic count in three years.

It was moved by Council Member Glassheim and seconded by Council Member Sande that this recommendation be and is hereby approved. Carried 12 votes affirmative.

APPROVE BLOCKING OF STREETS FOR CONSTRUCTION
PROJECTS

Committee No. 2, Public Safety, reported having considered the request to use one-half block on Bruce Avenue and parking Area on South 4th Street during construction of a 6-story county office building across from the courthouse, and recommended approval of the request.

It was moved by Council Member Glassheim and seconded by Council Member Sande that this recommendation be and is hereby approved. Carried 12 votes affirmative.

Committee No. 2, Public Safety, reported having considered the matter of request from M.A.Mortenson re. street (Demers Avenue) at corporate center - closing sidewalk area and constructing pedestrian walkway, and recommended approval of the request.

It was moved by Council Member Glassheim and seconded by Council Member Sande that this recommendation be and is hereby approved. Carried 12 votes affirmative.

AUTHORIZE YIELD SIGNS AT 14TH STREET AND
7TH AVENUE NORTH

Committee No. 2, Public Safety, reported having considered the request for yield or stop sign at 7th Avenue North and North 14th Street, and recommended to install yield signs at 14th Street and 7th Avenue North and further to direct the traffic engineer to continue to look at signage on North 12th and 14th Streets and to report back to committee.

It was moved by Council Member Glassheim and seconded by Council Member Sande that this recommendation be and is hereby approved. Carried 12 votes affirmative.

ACCEPT BIDS FOR MOSQUITO CONTROL

Committee No. 2, Public Safety, reported having considered the bids for mosquito control (chemicals and vehicles), and recommended to accept bids for mosquito control from Van Diest Supply Company as follows: Abate 1% at $1.504/lb., Abate 2% at $2.619/lb., Abate 5% at $7.294/lb., Bactimos pellets at $2.862/lb., Scourge 18+54 at $257.05/gal. and that BVA (mineral oil) be purchased from Agsco at price of $3.50/gal.

It was moved by Council Member Glassheim and seconded by Council Member Sande that this recommendation be and is hereby approved. Upon call for the question and upon roll call vote, the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Glassheim, Carpenter, Sande, Klave, Babinchak, Bakken, Hafner, Hagness - 12; voting "nay": none. Mayor Owens declared the motion carried.

Committee No. 2, Public Safety, reported having considered the matter of bids for mosquito control (vehicles), and recommended acceptance of bid from Rydell Chevrolet for the pickup lease for the 1998 season in the amount of $400/month/vehicle, and to accept the bid from Acme Electric for the ATV lease for 1998 in the amount of $450/month.

It was moved by Council Member Glassheim and seconded by Council Member Sande that this recommendation be and is hereby approved. Upon call for the question and upon roll call vote, the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Glassheim, Carpenter, Sande, Klave, Babinchak, Bakken, Hafner, Hagness - 12; voting "nay": none. Mayor Owens declared the motion carried.

APPROVE APPLICATION FOR CARNIVAL PERMIT

Committee No. 2, Public Safety, reported having considered the application from Schoeppner Shows for carnival permit on may 21-31 at South Forks Plaza area, and recommended approval of application contingent upon review and approval of police, fire and health departments.

It was moved by Council Member Glassheim and seconded by Council Member Sande that this recommendation be and is hereby approved. Carried 12 votes affirmative.

APPROVE CHANGE ORDER FOR PROJECT NO. 4433,
BOOSTER STATION

Committee No. 3, Public Service, reported having considered the matter of Change Order No. 1, Project No. 4433, Booster Station, and recommended to approve change order in the amount of $7,564.00.

It was moved by Council Member Klave and seconded by Council Member Hafner that this recommendation be and is hereby approved. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Glassheim, Carpenter, Sande, Klave, Babinchak, Bakken, Hafner, Hagness - 12; voting "nay": none. Mayor Owens declared the motion carried.

AUTHORIZE ENTERING INTO THREE-WAY AGREEMENT
FOR PROJECTS NO. 4774 AND 4775, UTILITIES IN
MIGHTY ACRES 2ND ADDITION

Committee No. 3, Public Service, reported having considered the matter of three-way agreements for Projects 4774 and 4775, sanitary sewer and watermain to Mighty Acres 2nd Addition, and recommended to authorize entering into an agreement with Crary Homes and Real Estate and CPS, Ltd.

It was moved by Council Member Klave and seconded by Council Member Hafner that this recommendation be and is hereby approved. Carried 12 votes affirmative.

AUTHORIZE ENTERING INTO THREE-WAY AGREEMENT
FOR PROJECTS 4586, 4587 AND 4588, UTILITIES
IN COUNTRY VIEW RESUBDIVISION

Committee No. 3, Public Service, reported having considered the matter of three-way agreement for Projects 4586, 4587 and 4588, sanitary sewer, watermain and storm sewer in Country View Resubdivision, and recommended to approve continuation of previously signed agreement with developer and engineer.

It was moved by Council Member Klave and seconded by Council Member Hafner that this recommendation be and is hereby approved. Carried 12 votes affirmative.

ADOPT RESOLUTION CREATING ASSESSMENT DISTRICT
SEWER PROJECT NO. 4496, DISTRICT NO. 394

Committee No. 3, Public Service, reported having considered the matter of creating special assessment district for Project No. 4496, District No. 394, sanitary sewer on 6th Avenue North from North 52nd to 55th Streets, and recommended to adopt a resolution creating the assessment district, approving the engineer's report, including estimate of cost, an assessment district map, and further that we pass a resolution instructing the city engineer to prepare detailed plans and specifications and that we declare intent to sell bonds to finance these improvements.

It was moved by Council Member Klave and seconded by Council Member Hafner that this recommendation be and is hereby approved. Carried 12 votes affirmative.

Council Member Klave introduced the following resolution creating the assessment district, which was presented and read: Document No. 7491 - Resolution.

It was moved by Council Member Klave and seconded by Council Member Hafner that this resolution be and is hereby adopted. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Glassheim, Carpenter, Sande, Klave, Babinchak, Bakken, Hafner, Hagness - 12; voting "nay": none. Mayor Owens declared the motion carried and the resolution adopted.

ACCEPT ENGINEER'S REPORT, SEWER PROJECT NO.
4496, DISTRICT NO. 394

The city auditor presented and read the engineer's report on Sewer Project No. 4496, District No. 394: Document No. 7492 - Report.

It was moved by Council Member Klave and seconded by Council Member Hafner that this report be and is hereby approved. Carried 12 votes affirmative.

ADOPT RESOLUTION TO PREPARE PLANS AND
SPECIFICATIONS, SEWER PROJECT NO. 4496,
DISTRICT NO. 394

Council Member Klave introduced the following resolution to prepare plans and specifications which was presented and read: Document No. 7493 - Resolution.

It was moved by Council Member Klave and seconded by Council Member Hafner that this resolution be and is hereby adopted. Carried 12 votes affirmative.

ADOPT RESOLUTION CREATING ASSESSMENT DISTRICT
WATERMAIN PROJECT NO. 4497, DISTRICT NO. 261

Committee No. 3, Public Service, reported having considered the matter of creating special assessment district for Project No. 4497, District No. 261, watermain on 6th Avenue North from North 52nd to 55th Streets, and recommended to adopt a resolution creating the assessment district, approving the engineer's report, including estimate of cost, an assessment district map, and further that we pass a resolution instructing the city engineer to prepare detailed plans and specifications and that we declare intent to sell bonds to finance these improvements.

It was moved by Council Member Klave and seconded by Council Member Hafner that this recommendation be and is hereby approved. Carried 12 votes affirmative.

Council Member Klave introduced the following resolution creating the assessment district, which was presented and read: Document No. 7494 - Resolution.

It was moved by Council Member Klave and seconded by Council Member Hafner that this resolution be and is hereby adopted. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Glassheim, Carpenter, Sande, Klave, Babinchak, Bakken, Hafner, Hagness - 12; voting "nay": none. Mayor Owens declared the motion carried and the resolution adopted.

ACCEPT ENGINEER'S REPORT, WATERMAIN PROJECT
NO. 4497, DISTRICT NO. 261

The city auditor presented and read the engineer's report on Watermain Project No. 4497, District No. 261: Document No. 7495 - Report.

It was moved by Council Member Klave and seconded by Council Member Hafner that this report be and is hereby approved. Carried 12 votes affirmative.

ADOPT RESOLUTION TO PREPARE PLANS AND
SPECIFICATIONS, WATERMAIN PROJECT NO. 4497,
DISTRICT NO. 261

Council Member Klave introduced the following resolution to prepare plans and specifications which was presented and read: Document No. 7496 - Resolution.

It was moved by Council Member Klave and seconded by Council Member Hafner that this resolution be and is hereby adopted. Carried 12 votes affirmative.

ADOPT RESOLUTION APPROVING PLANS AND
SPECIFICATIONS AND ADVERTISEMENT FOR BIDS,
SEWER PROJECT NO. 4519, DISTRICT NO. 381

The city engineer's estimate of total cost of the construction of sanitary sewer on Cherry Street from 47th Avenue South to Southend Drainway in the amount of $106,480.50 was presented and read.

Committee No. 3, Public Service, reported having considered the matter of plans and specifications for Project No.4519, District 381, sanitary sewer on Cherry Street from 47th Avenue South to Southend Drainway, and recommended that we pass a resolution approving the plans and specifications for this construction and further that the city auditor be directed to advertise for bids on the project.

It was moved by Council Member Klave and seconded by Council Member Hafner that this recommendation be and is hereby approved. Carried 12 votes affirmative.

Council Member Klave introduced the following resolution which was presented and read: Document No. 7497 - Resolution.

It was moved by Council Member Klave and seconded by Council Member Hafner that this resolution be and is hereby adopted. Carried 12 votes affirmative.

ADOPT RESOLUTION APPROVING PLANS AND
SPECIFICATIONS AND ADVERTISEMENT FOR BIDS,
WATERMAIN PROJECT NO. 4520, DISTRICT NO. 252

The city engineer's estimate of total cost of the construction of watermain on Cherry Street from 47th Avenue South to Southend Drainway in the amount of $82,183.50 was presented and read.

Committee No. 3, Public Service, reported having considered the matter of plans and specifications for Project No. 4520, District No. 252, watermain on Cherry Street from 47th Avenue South to Southend Drainway, and recommended that we pass a resolution approving the plans and specifications for this construction and further that the city auditor be directed to advertise for bids on the project.

It was moved by Council Member Klave and seconded by Council Member Hafner that this recommendation be and is hereby approved. Carried 12 votes affirmative.

Council Member Klave introduced the following resolution which was presented and read: Document No. 7498 - Resolution.

It was moved by Council Member Klave and seconded by Council Member Hafner that this resolution be and is hereby adopted. Carried 12 votes affirmative.
ADOPT RESOLUTION APPROVING PLANS AND
SPECIFICATIONS AND ADVERTISEMENT FOR BIDS,
SEWER PROJECT NO. 4521, DISTRICT NO. 382

The city engineer's estimate of total cost of the construction of watermain on Cherry Street from 47th Avenue South to Southend Drainway in the amount of $72,790.00 was presented and read.

Committee No. 3, Public Service, reported having considered the matter of plans and specifications for Project No. 4521, District No. 382, storm sewer on Cherry Street from 47th Avenue South to Southend Drainway, and recommended that we pass a resolution approving the plans and specifications for this construction and further that the city auditor be directed to advertise for bids on the project.

It was moved by Council Member Klave and seconded by Council Member Hafner that this recommendation be and is hereby approved. Carried 12 votes affirmative.

Council Member Klave introduced the following resolution which was presented and read: Document No. 7499 - Resolution.

It was moved by Council Member Klave and seconded by Council Member Hafner that this resolution be and is hereby adopted. Carried 12 votes affirmative.

ADOPT RESOLUTION APPROVING PLANS AND
SPECIFICATIONS AND ADVERTISEMENT FOR BIDS,
SEWER PROJECT NO. 4707, DISTRICT NO. 393

The city engineer's estimate of total cost of the construction of storm sewer to serve new middle school on 47th 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. 4707, District No. 393, storm sewer to serve new middle school on 47th 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 Klave and seconded by Council Member Hafner that this recommendation be and is hereby approved. Carried 12 votes affirmative.

Council Member Klave introduced the following resolution which was presented and read: Document No. 7500 - Resolution.

It was moved by Council Member Klave and seconded by Council Member Hafner that this resolution be and is hereby adopted. Carried 12 votes affirmative.

ADOPT RESOLUTION APPROVING PLANS AND
SPECIFICATIONS AND ADVERTISEMENT FOR BIDS,
SEWER PROJECT NO. 4619, DISTRICT NO. 383

The city engineer's estimate of total cost of the construction of sanitary sewer on North 55th Street from 10th to 12th Avenues North in the amount of $19,446.00 was presented and read.

Committee No. 3, Public Service, reported having considered the matter of plans and specifications for Project No. 4619, District No. 383, sanitary sewer on North 55th Street from 10th to 12th Avenues North, and recommended that we pass a resolution approving the plans and specifications for this construction and further that the city auditor be directed to advertise for bids on the project.

It was moved by Council Member Klave and seconded by Council Member Hafner that this recommendation be and is hereby approved. Carried 12 votes affirmative.

Council Member Klave introduced the following resolution which was presented and read: Document No. 7501 - Resolution.

It was moved by Council Member Klave and seconded by Council Member Hafner that this resolution be and is hereby adopted. Carried 12 votes affirmative.

APPROVE PLANS AND SPECIFICATIONS FOR PROJECT
NO. 4746, PAVING PORTION OF SOUTH COLUMBIA ROAD

Committee No. 3, Public Service, reported having considered the matter of plans and specifications for Project No. 4746, paving South Columbia Road from 36th Avenue South to Ulland Park, and recommended to approve plans and specifications for construction and call for bids with due date of May 11, 1998.

It was moved by Council Member Klave and seconded by Council Member Hafner that this recommendation be and is hereby approved. Carried 12 votes affirmative.

APPROVE PLANS AND SPECIFICATIONS FOR PROJECT
NO. 4756, REHAB/RECONSTRUCT PORTION OF BELMONT ROAD

Committee No. 3, Public Service, reported having considered the matter of plans and specifications for Project No. 4756, rehabilitate/reconstruct Belmont Road from 47th Avenue South to 55th Avenue South, and recommended that we approve plans and specifications for construction of overlay and call for bids with due date of May 15, 1998.

It was moved by Council Member Klave and seconded by Council Member Hafner that this recommendation be and is hereby approved. Carried 12 votes affirmative.

ACCEPT BIDS FOR PROJECT NO. 4758, WATERMAIN
REPLACEMENT

Committee No. 3, Public Service, reported having considered the matter of construction bids for Project No. 4758, watermain repair on South 5th Street at RR tracks, and interconnect on 2nd Avenue North, and recommended to accept the low bid of Molstad Excavating in the amounts of $13,720 and $8,000 for a total bid of $21,720.00.

It was moved by Council Member Klave and seconded by Council Member Hafner that this recommendation be and is hereby approved. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Glassheim, Carpenter, Sande, Klave, Babinchak, Bakken, Hafner, Hagness - 12; voting "nay": none. Mayor Owens declared the motion carried.

ACCEPT BIDS FOR SEWER PROJECT NO. 4782,
SANITARY SEWER REPAIR ON UNIVERSITY AVENUE

Committee No. 3, Public Service, reported having considered bids for Sewer Project No. 4782, sanitary sewer repair on University Avenue, and recommended that bids of PEC, Inc. of Helena, MT and of Lametti & Sons, Inc., Hugo, MN be returned to bidders unopened as bids did not contain contractor's licenses.

It was moved by Council Member Klave and seconded by Council Member Hafner that this recommendation be and is hereby approved. Carried 12 votes affirmative.

Committee No. 3, Public Service, reported having considered the bids for Sewer Project No. 4782, sanitary sewer repair on University Avenue, and recommended to accept the bid of Insituform Technologies, Inc. for A-1 in the amount of $296,518 with Change Order #1 deducting $65,653.00 for a total bid of $230,865.00.

It was moved by Council Member Klave and seconded by Council Member Hafner that this recommendation be and is hereby approved. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Glassheim, Carpenter, Sande, Klave, Babinchak, Bakken, Hafner, Hagness - 12; voting "nay": none. Mayor Owens declared the motion carried.

APPROVE CHANGE ORDER FOR PROJECT NO. 4225,
SOUTH WASHINGTON STREET

Committee No. 3, Public Service, reported having considered the matter of Change Order No. 4, Project 4225, paving South Washington Street, and recommended to approve change order in the amount of $40,534.49.

It was moved by Council Member Klave and seconded by Council Member Hafner that this recommendation be and is hereby approved. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Glassheim, Carpenter, Sande, Klave, Babinchak, Bakken, Hafner, Hagness - 12; voting "nay": none. Mayor Owens declared the motion carried.

DELAY PROJECT FOR MILL AND OVERLAY OF
DOWNTOWN STREETS

Committee No. 3, Public Service, reported having considered the matter of status of mill and overlay downtown streets, and recommended to delay this project until next year.

It was moved by Council Member Klave and seconded by Council Member Hafner that this recommendation be and is hereby approved. Carried 12 votes affirmative.

SELECT ENGINEERING FIRM FOR STORM PUMPING
STATION 84

Committee No. 3, Public Service, reported having considered the matter of selection of engineering firm to add second pumping module to storm pumping station 84 (North 55th and 6th Avenue North), and recommended to select the firm of Webster, Foster & Weston as engineer for the project.

It was moved by Council Member Klave and seconded by Council Member Hafner that this recommendation be and is hereby approved. Carried 12 votes affirmative.

AUTHORIZE ENTERING INTO TWO-WAY AGREEMENT
FOR PROJECT NO. 4596, GRADING AND GRAVELING
AND STORM SEWER ON 20TH AVENUE NORTH AND
NORTH 44TH STREET

Committee No. 3, Public Service, reported having considered he matter of two-way agreement for Project No. 4596, grading, graveling and storm sewer on 20th Avenue North and North 44th Street, and recommended to authorize entering into the agreement with Jim Senske, Senske & Son Transfer.

It was moved by Council Member Klave and seconded by Council Member Hafner that this recommendation be and is hereby approved. Carried 12 votes affirmative.

ACCEPT BIDS FOR EMERGENCY REPAIRS OF DOWNTOWN
SANITARY SEWER

The Flood Response Committee reported having considered he matter of emergency sanitary sewer repair on South 4th Street, and recommended approval of emergency sanitary sewer repair on South 4th Street in the amount of $51,360 for Corporate Center Project No. 4719.

It was moved by Council Member Klave and seconded by Council Member Hafner that this recommendation be and is hereby approved. Carried 12 votes affirmative.

Committee No. 3, Public Service, reported having considered the matter of emergency repairs on downtown sanitary sewer (because of anticipated intensive construction work related to proposed Corporate Center and County Office building), and recommended to authorize entering into contract with Insituform in the amount of $51,360.00.

It was moved by Council Member Klave and seconded by Council Member Hafner that this recommendation be and is hereby approved. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Glassheim, Carpenter, Sande, Klave, Babinchak, Bakken, Hafner, Hagness - 12; voting "nay": none. Mayor Owens declared the motion carried.

INTRODUCE ORDINANCE RELATING TO ESTABLISHMENT
AND IMPOSITION OF CONNECTION FEES

Committee No. 3, Public Service, reported having considered the matter of consideration of an ordinance concerning connection fees and special assessments, and recommended to approve ordinance and to introduce for first reading.

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

Howard Swanson, city attorney, reported this ordinance is in effect codifying in a single location the City's policies on connection fees, that it does expand the type of projects connection fees can be utilized for, that presently have separate Code provisions for water, sanitary sewer and also by resolution utilized connection fees for some other items, ie., streets, bikepaths, etc. and this codifies process or procedures that committee is presently using to establish the districts that connection fees would be imposed upon and also lays out calculations and process by which connection fees are determined. He stated that the ordinance does one additional thing that present resolution does not, and that is it allows for connection fees either within or without the city limits, presently resolution only establishes connection fees outside the city limits.

Upon call for the question and upon voice vote, the motion carried 12 votes affirmative.

Council Member Hafner introduced an ordinance entitled "An ordinance adopting Article --- of Chapter --- relating to the establishment and imposition of connection fees", which was presented, read and passed on first reading.

INTRODUCE ORDINANCE RELATING TO THE USE OF
EMINENT DOMAIN FOR PUBLIC IMPROVEMENTS OR USES

Committee No. 3, Public Service, reported having considered the matter of consideration of ordinance relating to eminent domain for public projects and uses, and recommended to approve ordinance and to introduce for first reading.

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

Mr. Swanson reported that presently the process or procedures for eminent domain appear in the NDCC, under authority given to a home rule city the City does have the ability to adopt ordinances altering or expanding upon eminent domain which is presently codified in the Century Code, that he has drafted a broad ordinance which would provide the City authority to use eminent domain, including quick take, for multiple public uses or purposes. He stated that for the most part the ordinance does not expand the types of projects that you can utilize eminent domain for but expand in certain instances the quick take authority (ie., siting of any new landfill, roadways outside the city limits that are not special assessed if City needed to acquire R/W for those, quick take would be available). He stated it does lay out and the process is identical to provisions of the NDCC and even incorporate by reference provisions of the Century Code. It does codify exact procedures for the use of eminent domain, including when it's available for the City and what steps the City does need to take should it choose to do so; and is adopted expressly under authority of the home rule charter.

Upon call for the question and upon voice vote, the motion carried 12 votes affirmative.
Council Member Glassheim introduced an ordinance entitled "An ordinance adopting Article --- of Chapter --- relating to the use of eminent domain for public improvements or uses", which was presented, read and passed on its first reading.

REFER MATTER OF BIDS FOR WASTEWATER TREATMENT
PLANT PROCESS EQUIPMENT, PROJECT NO. 4371

Committee No. 3, Public Service, reported having considered the matter of bids for Wastewater Treatment Plant process equipment, City Project No. 4371, and recommended to accept the base bid of BDT/LPH, Grand Forks, for $6,273,000 with Alternate A for $2,855,000, that letter of warranty be revised to increase the BOD loading level, review of the letters of warranty by the city attorney, and contingent upon approval of the North Dakota State Department of Health.

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

Council Member Hagness reported that they were about to make a determination on how large a system the City needs, that a few years ago they looked at wastewater rates and determined that the $13-15 million range would fit into the rate plan set up a few years ago. He stated that now as treating affluent BOD from different industries in town, it's come to their attention that they really need a larger system that will handle more BOD than originally thought, that they have been working with BDT (BioDigestor Technologies). He stated that in committee they asked for a letter of warranty that was greater than before and covered a larger project which is now at $20 million; they are looking at 40,000 lbs/BOD/ day now and that Mr. Vein explained the need for this project and the violations that City could be guilty of with State Health Department; that there are some ammonia problems they have when release this wastewater into the river and face penalties of up to $25,000/day and that City has to come into compliance. He stated that the committee has reviewed this and discussed with Simplot, one of the largest users, and they have made some requests because new system which is a micro fine bubble system floats the effluent to the top rather than settles and has never been tried in the United States before (been done in Germany, and City sent individuals there to look at the system) but committee recommended proceeding with the project with letter of warranty; however, there are some questions on the letter of warranty that need to be answered before the next public service committee meeting. He stated that Scott Lund of Simplot has submitted letter re. processing warranty and what it really does is set forth that it shall be valid for a period of five years from the date of substantial completion of the project and under this warranty BDT/LPH (BioDigestor Tech. and Lunseth Plumbing & Heating) are putting up their $6.5 bond guaranteeing this project, and they agree to repair or replace at a sole cost and expense any parts, material or software which are defective or do not function for their intended purpose, and that's really important because system is new to use and system that's needed for type of effluent we have with potato wastes, etc. He stated this would be an opportunity for those who wish to comment before taking back to committee.

Mr. Swanson reported he had reviewed one draft of the proposed warranty by BDT/LPH joint venture and has significant concerns and reservations over the effectiveness or applicability of the proposed warranty, without substantial change the warranty and without substantial provision of bonding authority, he is not in position to recommend that the warranty be accepted at this point; and is recommending that they take back to committee and that substantial work be done significantly in the warranty provisions. He stated that it doesn't appear that the proposed warranty was drafted by an attorney and appears to lack significant customary language that warranty of that nature should have; and has not been provided with any bond that would substantiate or back up any warranty of a project of that magnitude, and raised issue for committee's edification and that there are significant concerns on the warranty itself. It was suggested that Mr. Vein meet with Mr. Swanson so that he has information prior to the public service committee's meeting.

Council Member Carpenter asked if technology fails and they are unable to correct, if building that City constructing to house this work for other technology or more conventional method of treating waste and if City has very unique wastewater and different than what's in Germany, how and why, and if worked in Germany does it apply to Grand Forks. Mr. Vein stated he has asked that of Mike Shea, city chemist, who seems very confident that this type of technology will work in the city of Grand Forks, that we are different but that there's fallback that other technologies will work if this doesn't, would go to a more conventional method if had to make a change and if have bonding and warranty would be able to do that without putting ourselves in financial risk. Mr. Vein stated there was concern that if investing in this technology and put ourselves at risk and only way would recommend that was with proper bonding to cover warranty; that City has to operate and make sure that it fits requirements stipulated in the bid documents.

Council Member Babinchak asked if going with this new facility, whether City could still expand the system and allow future businesses to come in. Mr. Vein reported that it depends on how much we ask of industry to do prior to our taking on their sewage and treating it and what that upper limit should be; idea was for us to be able to have capacity to handle additional industrial users, should they come on; that's going to be part of the equation they would work out with Simplot and make sure that they have to lower their limits in which case it would be more of a reliance on them to do treatment themselves which would then have reserved capacity for additional industries to come in. Council Member Hagness stated that industries have been working with the City to fullest capacity. Mr. Vein reported that after waste goes through treatment plant it still is going to use the existing effluent system to finish off, and there is opportunity to have continued treatment within the lagoon system itself before discharged to the river.

Council Members Hagness and Hafner asked that this matter be sent back to the public service committee for further consideration.

APPROVE AUTOMATED DISPATCH SYSTEM FOR DIAL-
A-RIDE PROGRAM

The Bus Committee reported having considered the matter of approval of automated dispatch system for Dial-a-Ride Program, and recommended approval of system subject to MIS review and concurrence.

It was moved by Council Member Hagness and seconded by Council Member Sande that this recommendation be and is hereby approved. Carried 12 votes affirmative.

APPROVE CHANGE ORDER FOR DEMOLITION OF
PROPERTY AT 125 SOUTH 4TH STREET

The Flood Response Committee reported having considered the matter of change order to Robinson Excavating contract for the demolition of Simmons Advertising, and recommended to award a change order in the amount of $53,810 to Robinson Excavating for the demolition and backfill of 125 South 4th Street, contingent upon closing on the purchase of this property.

It was moved by Council Member Bakken and seconded by Council Member Carpenter that this recommendation be and is hereby approved. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Glassheim, Carpenter, Sande, Klave, Babinchak, Bakken, Hafner, Hagness - 12; voting "nay": none. Mayor Owens declared the motion carried.

APPROVE AGREEMENT WITH COUNTY FOR PROPERTY
LOCATED ON NEW COUNTY OFFICE BUILDING FOOTPRINT

The Flood Response Committee reported having considered the matter of agreement between the City and County for property located on the new county office building footprint, and recommended approval of agreement between the City and County for this property and upon completion of overall purchase, the City will deed the land to the County.

It was moved by Council Member Bakken and seconded by Council Member Carpenter that this recommendation be and is hereby approved. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Glassheim, Carpenter, Sande, Klave, Babinchak, Bakken, Hafner, Hagness - 12; voting "nay": none. Mayor Owens declared the motion carried.

APPROVE CDBG ADMINISTRATIVE BUDGET FOR
YEAR ENDING DECEMBER 31, 1998

The Flood Response Committee reported having considered the matter of 1998 CDBG administrative budget and recommended approval of the CDBG administrative budget worksheet for the year ending December 31, 1998.

It was moved by Council Member Bakken and seconded by Council Member Carpenter that this recommendation be and is hereby approved. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Glassheim, Carpenter, Sande, Klave, Babinchak, Bakken, Hafner, Hagness - 12; voting "nay": none. Mayor Owens declared the motion carried.

REAFFIRM POLICY RE. ELIGIBILITY OF TRUST
HELD PROPERTIES

The Flood Response Committee reported having considered the matter of eligibility of trust held properties, and recommended to reaffirm policy as written regarding these properties.

It was moved by Council Member Bakken and seconded by Council Member Carpenter that this recommendation be and is hereby approved. Carried 12 votes affirmative.

APPROVE TASK FORCE TO FORMULATE JOINT POWERS
AGREEMENT, ETC. BETWEEN CITY, PARK DISTRICT
AND CITY OF EAST GRAND FORKS BEFORE BRINGING
DOCUMENT TO COMMITTEE FOR REVIEW

The Flood Response Committee reported having considered the matter of greenway, and recommended approval of forming requested task force to formulate a joint powers agreement, partnership, or 501 C3 foundation between City of Grand Forks, Grand Forks Park District and City of East Grand Forks and bringing document back before committee for review.

It was moved by Council Member Bakken and seconded by Council Member Carpenter that this recommendation be and is hereby approved. Carried 12 votes affirmative.

AWARD BIDS FOR ABATEMENT OF BOUGHT-OUT
PROPERTIES

The Flood Response Committee reported having considered the matter of abatement of bought-out properties for Bid Package #17, and recommended to approve awarding Bid Package #17 for the abatement of bought-out properties to EAS in the amount of $13,900.

It was moved by Council Member Bakken and seconded by Council Member Carpenter that this recommendation be and is hereby approved. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Glassheim, Carpenter, Sande, Klave, Babinchak, Bakken, Hafner, Hagness - 12; voting "nay": none. Mayor Owens declared the motion carried.

AWARD BID FOR SITE UTILITIES AT 401/402
DEMERS AVENUE, CORPORATE CENTER

The Flood Response Committee reported having considered the matter of Mortenson update on bid package for site utilities at 401/402 DeMers Avenue, and recommended to award bid to Molstad Excavating in the amount of $66,310 for corporate center site utilities at 401/402 DeMers Avenue.

It was moved by Council Member Bakken and seconded by Council Member Carpenter that this recommendation be and is hereby approved. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Glassheim, Carpenter, Sande, Klave, Babinchak, Bakken, Hafner, Hagness - 12; voting "nay": none. Mayor Owens declared the motion carried.

AWARD BID FOR BID PACKAGE #4, RESIDENTIAL
DEMOLITION

The Flood Response Committee reported having considered the matter of residential demolition for Bid Package #4, and recommended award of bid to R.J. Zavoral & Sons in the amount of $74,445 for residential demolition.

It was moved by Council Member Bakken and seconded by Council Member Carpenter that this recommendation be and is hereby approved. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Glassheim, Carpenter, Sande, Klave, Babinchak, Bakken, Hafner, Hagness - 12; voting "nay": none. Mayor Owens declared the motion carried.

AWARD BID FOR BID PACKAGE #5, RESIDENTIAL
DEMOLITION

The Flood Response Committee reported having considered the matter of residential demolition for Bid Package #5, and recommended award of bid to R.J. Zavoral & Sons in the amount of $96,390 for residential demolition.

It was moved by Council Member Bakken and seconded by Council Member Carpenter that this recommendation be and is hereby approved. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Glassheim, Carpenter, Sande, Klave, Babinchak, Bakken, Hafner, Hagness - 12; voting "nay": none. Mayor Owens declared the motion carried.

APPROVE PROPOSAL FOR ADDITIONAL GEOTECHNICAL
ENGINEERING CONSULTING SERVICES FOR PHASE II,
EVALUATION OF IDENTIFIED ALTERNATIVES

The Flood Response Committee reported having considered the matter of Shannon & Wilson Geotechnical Consulting Services, and recommended to approve proposal for additional geotechnical engineering consulting services for Phase II, evaluation of identified alternatives in the amount of $21,010.

It was moved by Council Member Bakken and seconded by Council Member Carpenter that this recommendation be and is hereby approved. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Glassheim, Carpenter, Sande, Klave, Babinchak, Bakken, Hafner, Hagness - 12; voting "nay": none. Mayor Owens declared the motion carried.

APPROVE AGREEMENT FOR VOLUNTEER HOUSING AT
NORTH STAR INN

The Flood Response Committee reported having considered the matter of volunteer housing issue at the North Star Inn, and recommended that the agreement between the City of Grand Forks and E.J. Gregoire for the leasing of the North Star Inn be extended from May 1, 1998 through February 28, 1999 at the leased rate of $30,000/month.

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

Council Member Hamerlik asked for clarification on this program, that contract was for approximately one year and that there was an option to purchase the facility, that City shouldn't be getting into the housing business but pure economics may suggest they should be, now project extended for another year.
Mr. O'Leary reported that they did look at those options; that original agreement was executed on December 12, 1997, and total length of agreement would be 14 months, and a six-month initial lease and option; the lease included taxes, insurance, staff, cleaning, etc. as well as liability for any repairs, etc., and they are not in a good position to weigh cost benefit of purchasing building for that period and take on liability of running operation, etc. Council Member Hamerlik reported that 14-month period reasonable but if extended then purchase might have been an option.

Upon roll call the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Glassheim, Carpenter, Sande, Klave, Babinchak, Bakken, Hafner, Hagness - 12; voting "nay": none. Mayor Owens declared the motion carried.
APPROVE POLICY CLARIFICATION FOR PHASE III
HOUSING REHAB PROGRAM

The Flood Response Committee reported having considered the matter of policy clarification for Phase III Housing Rehab Program, and recommended to authorize rehab payment to SBA if real property expenses have been funded through SBA.

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

Council Member Bakken reported that using CDBG funds to subsidize SBA money doesn't make much sense, that SBA has more money than we have CDBG funds, and if you qualify for an SBA loan it serves its purpose and helps people move on, wasn't to make them better or to get back where they were, but move forward and recover; SBA program is doing what it's supposed to and subsidizing with CDBG funds doesn't make sense.

Council Member Babinchak stated that according to minutes only about 40 families would qualify for this program, how determined and are low-income families benefiting or others as well.

Keith Lund, Urban Development, reported that number derived at a percentage of what doing so far, had a certain number of cases in the office; this is policy decision, that they are verifying amount of damage property owners have and benefit received from all sources, so only question is whether property owner has a portion of the grant remaining and if funded by SBA to help relieve some of that debt on that family or used for other projects; that there is $15,000 cap on the program.

Upon call for the question and upon roll call the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Glassheim, Carpenter, Sande, Klave, Hafner, Hagness - 10; voting "nay": Council Members Babinchak, Bakken - 2. Mayor Owens declared the motion carried.

REFER MATTER OF INSPECTION DEPARTMENT'S CDBG
BUDGET BACK TO COMMITTEE

The Flood Response Committee reported having considered the matter of inspection department's CDBG budget, and recommended approval of the 1998 proposed CDBG budget for the inspections department that shortfall will be paid through administrative funds.

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

Council Members Hafner and Glassheim referred this matter back to committee for further consideration.

APPROVE PURCHASE OF ADDITIONAL STRUCTURES ON
PROPERTIES UNDER VOLUNTARY ACQUISITION PROGRAM

The Flood Response Committee reported having considered the matter of Voluntary Acquisition program application when there are two structures located on property, and recommended approval of purchase of structure with more than 50% damage and in the flood plain.
It was moved by Council Member Bakken and seconded by Council Member Carpenter that this recommendation be and is hereby approved.

Mr. O'Leary reported that the main structure is not in the flood plain but subsidiary structure (rental structure) on back of lot is in the flood plain, that rental structures destroyed by the flood but main dwellings on non-conforming lots and since limited number of instances where this would happen, the committee is recommending where there are two structures on one lot that City buy the substandard structure and demolish.

Mr. Swanson reported they have had some preliminary discussion with SBA and FEMA regarding duplication of benefits and satisfaction of mortgages, but do not have a final ruling, however, it appears that both SBA and FEMA will consider whatever benefits provided to that legal description regardless of which structure to be duplication of benefits so in case of a rental unit if property owner received flood insurance or other FEMA benefits on the primary structure that exceeds the value of the smaller structure and City attempts to acquire it, the property owner would receive nothing, but in case of an SBA loan against the legal description, if SBA loan exceeds the value paid for that secondary structure, SBA will require that full amount be paid down on the debt; so in the two instances need to be very careful with property owners if program passes that their expectations not be raised that duplication of benefits issues don't apply or that the SBA mortgage satisfactions don't apply because it may not be their primary residence. He stated they are anticipating further rulings on that. Council Member Sande asked if property owners would be able to build a replacement structure; Mr. O'Leary stated he didn't think so because of non-conforming use of lot. Mr. Swanson reported that reconstruction of property, either have to apply within applicable codes, and in two instances are on smaller lots and would not be able to accommodate sideyard setbacks, etc. and also one of the units does not have off-street parking as would now be required; thinks unlikely that in these two instances could ever rebuild structure, but possible accessory structures (shed, garage, etc.)

Upon call for the question and upon voice vote, the motion carried 12 votes affirmative.

REFER MATTER OF WATER METER SYSTEM TO PUBLIC
SERVICE COMMITTEE AND NOT ALLOW USE OF CDBG
FUNDS FOR WATER METER REPLACEMENT

The Flood Response Committee reported having considered the matter of water meter system, and recommended to send back to public service committee and not to allow use of CDBG funds for water meter replacement.

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

Council Member Glassheim asked if going to replace meters and move to the radio readings, questioned whether they should be doing that and increasing costs to customer per meter and would hope that public service would question whether to replace existing meters and whether need to use FEMA replacement money to go to a whole new system which will cost $2 million more locally.

Council Member Hamerlik questioned whether possible that public service or council could recommend using grant funds after flood response said no. Council Member Hagness stated anything possible and public service committee wouldn't be beyond recommending funding source other than direct billing, that those meters not reading high but low and actually getting less money into coffers of City because were flooded out. He noted, however, before flood happened City was looking at a new meter system (either by radio or telephone, etc.) but would look at in public service if flood response had information to share with them. Council Member Bakken stated it wasn't prudent use of CDBG funds and if were to have been done and billed to the customer, should continue that process.

Council Member Hafner stated this isn't appropriate use of block grant funds, the meters that were damaged by the flood are being reimbursed through FEMA funds and extra money is for additional 4,000 meters that would have been replaced over time anyway in next five years, that automatic reading should be paid by itself through the attrition of employees no longer needed, so question is if use CDBG funds to pay for meters that would change out anyway, not appropriate. Council Member Glassheim asked if committee comes back with recommendation to replace, that they have strong proof that meters losing us an amount of money, and how much money losing, etc. so if go ahead with this, consider using CDBG funds because of pressure on property taxes, replacements, dikes, etc., new conditions that weren't here when first said might replace meters, every utility system going up 5-15% or more.

Upon call for the question and upon voice vote, the motion carried 12 votes affirmative.

REFER MATTER OF HOUSING MOVING POLICY BACK
TO COMMITTEE

The Flood Response Committee reported having considered the matter of house moving policy, and recommended approval of House Moving Program, with latest amendments, deleting the $120,000, deleting land, and making arrangements to buy land outright for pre-flood appraised value, adding that the department can bring forth special conditions if warranted for an increase of over the 75% cap. subject to review by city attorney on mortgage satisfaction.

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

Council Member Hafner reported that there is language under program description that if the homeowner sells the house within five years or if homeowner is not owner/occupant of the home for five years the pro-rated portion of the unsatisfied lien must be paid back to the City, and questioned why the city would do that. Mr. O'Leary reported on the emphasis of the program, that during first phases of buyouts the City was involved in purchasing houses that had very little residual value, been destroyed by the flood, and as move up out of the lowest part of the neighborhoods that were ravaged by the flood, more and more of these homes have a value, maybe didn't get main floor damage or damage more modest and makes the house relocatable. He stated they had perhaps half a dozen homeowners who have indicated an interest in the program but after the Flood Response Committee, many more have come forward stating they are interested in the program. He reported that there are two features of this that the council may want to examine and which are purely policy issues: first 75% of the pre-flood value is the way program structured and that is what City would buy the home for and that there is no way of telling whether that number should be zero or 20% or 40%, it's best guess of the staff and Flood Response Committee that 25% seems to be a good figure and what that means is that if the house, excluding the lot, was valued at $100,000 in pre-flood condition that the City would compensate the homeowner for up to 75% of the cost of that value in order to relocate the home. He reported that the reason it's not 100% is that there is some residual value to all of these homes that have resale value, have a fiduciary responsi-bility as City government to recoup whatever value we can out of these homes and if exercise an option to purchase the house from the previous owner would put that house up for bids and for purpose of this policy it's been established that 25% of the pre-flood value, but as get into lower priced homes that percentage should be higher. He reported that the second issue has to do with encouraging homeowners to reinvest in Grand Forks, and are establishing this program with the hope that those homes would be relocated to another place in the city and that by providing this grant the homeowner does receive some benefit. In return for that benefit the City is asking the homeowner to make a commitment to Grand Forks for a period of five years; if they sell the house or convert into rental property a portion of that loan would be turned back to the City. He stated that the home has to be relocated to another place within the city limits and be an owner/occupied home. Mr. O'Leary reported that the way council has worked in the cases of rental rehab program is that loan is called under Rental Rehab Program if the unit is sold, however, dealt with on a case by case basis and if reasons homeowner would rather rent than own and convert to rental property, then would convert back and look at on a case by case basis, if death or owner became ill, etc. then come back to council for review and determination.

Council Member Klave stated he would like to see that wording included - on a case by case basis so that future councils would know that was there. Mr. O'Leary reported that the way the program reads now is that "...the City of Grand Forks will pay eligible relocation expenses up to 75% of the total pre-flood value of the structure..." and pay pre-flood value of the lot itself.

Council Member Bakken reported that this was set up with a five-year policy to mirror all other policies, and that this is an attempt to help people if they want to move and stay in their homes; and an attempt not to have them take a home, move it, sell it and make money on both ends but rather to utilize their homes is a concept the City is trying to achieve.

Council Member Hagness stated they should remove and take undue pressure away from the residents because if leave everything else in there about having to relocate in Grand Forks, have accomplished the number one purpose of relocating in Grand Forks, they are out of the way of the flood levee and have their taxes coming from a different location, that if they sell it within two years or three years, they have choice now or before flood to sell, they are already making a commitment to the citizens of Grand Forks to move their homes, so these aren't the ones that had damages, but people moving their homes because of flood levee and as long as can make it as easy as possible for these people to move their homes and if sell in two years, it's another owner who's going to pay the taxes, and moved an amendment to the motion to remove language re. deletion of the five-year requirement. Council Member Lucke seconded the motion.

Mr. Swanson reported that if the intention of the council is to delete the requirement for a mortgage, the second sentence should delete the word forgivable, and suggested that the council adopt a motion in terms of substance, the final draft of this program would have to have final review.

Upon call for the question and upon roll call vote, the following voted "aye": Council Members Polovitz, Lucke, Hamerlik, Carpenter, Sande, Klave, Hafner, Hagness - 8; voting "nay": Council Members Glassheim, Babinchak, Bakken, Beach - 4. Mayor Owens declared the motion on the amendment approved.

Mr. O'Leary reported that the way interpreted "owner occupied" at the time of the event, April 17, and if have moved out and haven't repaired their home since then, they would be eligible if they haven't rented out or used as rental unit, that the idea is that it's not intended to provide assistance to rental units to start moving apartment houses around, and it's also focused on houses that are relocatable, that bulk of homes they've dealt with so far are not candidates for this program, and people in FEMA trailers are living there because houses aren't occupiable and their homes probably not good candidates for this program. Mr. Swanson stated he has not yet had the opportunity to review this program as drafted, that is a comment that he has identified, there are a series of comments that he has in the eligibility section, program description section that need to be addressed as well as last page under process, and he anticipates there will be a number of changes made to that which really shouldn't fall in the area of substantive changes but plans on picking up if motion passed.

Council Member Sande reported that under Process, it states that the property owner's responsibility to obtain a suitable site within the city limits, and also means that it's the City's responsibility to make available suitable sites within the city limits; some houses need peculiar sites, there are a lot of sites available within the city limits that particular houses wouldn't fit on. Mr. O'Leary reported they had discussion and question was, should the City become pro-active in finding sites for historically significant older homes, special situation, and indicated that discussion indicated that City didn't want to become involved in that kind of effort, that if the decision of the council is to instruct staff to take another look at that, would do so, but they will have some lots coming back to the City because house destroyed for number of reasons, and will receive policy statement that won't involve money but policy on how to decide on whether those lots would be declared surplus, focus on certain historical uses/reuses salvage and preservation of historic homes, or whether original homeowner will be first in line for those lots, whether relocate homes from immediate neighborhood or make lots available for relocatable homes in immediate neighborhood to that site; Historical Society is encouraging City to take an aggressive role to preserve historic homes but doesn't think City should be moving homes across town but try to keep homes in areas close to original neighborhood and that's another policy. He stated this is intended to hold City harmless of responsibility of finding a lot, may declare lots surplus and tell property owners they are available for certain uses at certain time but it's ultimately the home owners responsibility who's applying for this program to find lot that's suitable and get various permits.

Mr. Swanson questioned whether they were purchasing the lot, that in reading the Program, he stated they were not, that in last section it states that the City will take position, and he has question/comment on the lot in a buyout area once it has been vacated, whether swap of lots, or purchasing, and if purchasing, need to do major redrafting. Mr. O'Leary stated that the intent of the original draft had the purchase of the home and the lot, the intent of the redraft was to buy the lot at pre-flood value and pay the homeowner for 75% of the cost of relocating the house and that's way program intended. Mr. Swanson advised that they table this matter until the council has a completed draft before it and that he will participate in the drafting the policy that now are not clarified.

After further discussion Council Members Hafner and Bakken referred the matter back to Flood Response Committee for further consideration.

APPROVE POLICY ON SALE OF LOTS ACQUIRED
THROUGH PHASED BUYOUT PROGRAMS

The Flood Response Committee reported having considered the matter of policy on sale of lots acquired by the City through phased buyout programs, And recommended approval of policy on sale of lots acquired through phased buyout programs.

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

Mr. Swanson reported that he did not have an opportunity to review this program document before today and that he has a number of non-substantive comments with respect to the policy statement, in particular, the bidding procedure; and he stated only request is that council amend the motion from the committee which was to approve the policy, and to require final approval by the city attorney's office.

It was moved by Council Member Hagness and seconded by Council Member Babinchak to amend the motion to require final approval by the city attorney's office. Carried 12 votes affirmative.

Upon call for the question on the motion, as amended, and upon voice vote, the motion carried 12 votes affirmative.

APPROVE APPOINTMENT TO PENSION COMMITTEE

Mayor Owens announced the appointment of Richard Aulich as the employee representative to the Pension Committee. It was moved by Council Member Babinchak and seconded by Council Member Hamerlik to approve the appointment. Carried 12 votes affirmative.

APPROVE ENGINEER'S ESTIMATES

Estimate Summary dated April 20, 1998, totaling $38,662.05 for regular estimates, was presented and read.

It was moved by Council Member Klave and seconded by Council Member Hafner that these estimates be and are hereby approved and that the city auditor be and is hereby authorized to issue warrants in payment of the same. Upon roll call the following voted "aye": Council Members Beach, Polovitz, Lucke, Hamerlik, Glassheim, Carpenter, Sande, Klave, Babinchak, Bakken, Hafner, Hagness - 10; voting "nay": none. Mayor Owens declared the motion carried.

REFER VARIOUS ITEMS TO COMMITTEE

Various items were presented to the council for discussion and/or referral to committee:
1) Council Member Carpenter reported that he had distributed to council members a copy of an editorial from the Fargo Forum, excellent editorial in support of the Aurora, appreciates position Fargo Forum is taking that this is a good investment for the State of North Dakota to see happen.
2) Council Member Carpenter reported that they have started site work at the Aurora, dirt has been moved and there is activity out there and project is starting.
3) Council Member Carpenter reported that an article was printed on front page of the Grand Forks Herald re. fact that Mr. Bruce Gjovig urges that the council make public land private, and thinks that the comments could leave negative perception in the minds of citizens in our community that there's a huge block of property out there that the City owns that could be selling to private development to create all kinds of tax dollars, and that's not the case; that the City owns very little other property that actually available to any other use, that the largest tax exempt property holder in the city is the State of North Dakota at University and Mill & Elevator; Altru Hospital is tax exempt, School District, and most of the tax exempt property is appropriately tax exempt or by policy of the State. He stated that they could not do what Mr. Gjovig urges, the targeting of 20-25% of the property be tax exempt, and stated that the City could sell every piece of property it owns and still not get down to that level. He stated he wanted public to note that this isn't something they can solve by doing it and only way of solving problem is by attracting additional commercial businesses, manufacturing and other businesses to the city, which is what they are trying to do and that's why we have Growth Fund. He stated that while there is a lot of tax exempt property, not all bad, that those who have tax exempt property provide a lot of jobs, ie., Grand Forks Air Force Base, University of North Dakota, Altru Hospital, Grand Forks Public Schools, but do have jobs which is really important and strong part of economy in Grand Forks. He stated that this isn't simple solution and that City is not trying to keep property off the tax rolls, that's not our objective, and disagree with Mr. Gjovig in number of points in the article.

Council Member Hafner stated that Mr. Gjovig called him this afternoon re. that article and a lot of what he had said to Mr. Swanson who wrote the article was left out of the article, and in some regards what Mr. Gjovig said was misunderstood, and that he gave as suggestion and not seriously considering it. It was noted that the corporate center will be paying taxes.

Mr. O'Leary reported that since the City started the Growth Fund in 1986, Mr. Gjovig is one who's been encouraging the City of Grand Forks to take an equity position in the companies, that the City owns part of those companies and he's been one encouraging City to do that and that City has been doing that on many occasions. He stated that the City owns very little property in the city, that the corporate center will be on the tax rolls, that housing City is building on west side of town, that the City is not doing it, it is done by non-profit corporation called Grand Forks Homes which is a collection of churches. He stated that Mr. Gjovig stated that houses weren't selling, that they've built 61 houses, sold 41 and 20 unsold houses very recently went on the market and will be difficult to sell houses until streets in, but that Mr. Gjovig and others need to understand that they are building houses simultaneous with putting in streets and need to do that to respond to the housing crises had in the city.

Mayor Owens stated their office had an influx of calls on that article and all critical of it. Council Member Hafner stated that Mr. Gjovig did not say most of those things, they came from other sources. Information only.

4) Council Member Glassheim presented matter of pickup of leaves in north end, matter of patching holes on 7th and 8th Avenues North between river and Washington Street, and would hope that work has been started on the legislative information packet. Mayor Owens reported they were waiting until second week in May to have another meeting re. legislative information.
5) Council Member Hamerlik reported that there have been several people concerned re. North Columbia Road, and asked when that will be opened by fire station, single lane traffic. It was reported that there was a watermain break and total of five breaks in one area so trying to let it settle so not another break before paving. Mr. Grotte reported they going to get bids to replace some of the watermain and that's why not paved; several breaks and doing flushing in that area and should be done soon.
6) Council Member Polovitz stated that it's been a year since the flood and that there's great amount of recovery yet to do, but doesn't want that we not pay attention to things we did previous to the flood - leaves aren't being picked up, streets not cleaned as quickly, and wants to be assured that all digging throughout the past year on the boulevards will be fixed; and if we don't have to look that way, shouldn't and street maintenance needs to be picked up a lot. Todd Feland reported leaves are being pickup up, etc. and will be doing twice; and are also doing street cleaning. Council Member Hagness stated they will bring this up at public service committee.
7) Council Member Hafner presented matter of concern re. year 2000 and this has immense impact on software, if we're not prepared as City or businesses in this community, will be in dire straits. He stated that until recently he thought it would only affect software but also affects all electronic equipment which is programmed to look only at last two digits of the year, water plant, light signals, elevators, etc. and suggested that mayor appoint a committee that will check into all aspects of the year 2000 in the city of Grand Forks, and to appoint someone who reports to her as a coordinator of that committee. Council Member Carpenter reported they have discussed this in finance committee and city auditor is working on that, that issues have been raised, and that MIS does report through the finance director's office and finance committee and didn't think need to establish new committees. The city auditor reported that in looking at through MIS director's position was to bring a representative from each department as they know affects on things and probably be working with a consultant on that because not internal expertise to do a review of this magnitude.
8) Council Member Hafner stated that the old Valley Motors building is excess property, and should look seriously at selling that property since have willing buyer. Council Member Carpenter reported they are looking at that but first need to solve issue of impound for the police department and issues before selling the building, and public works building maybe solution to that but involves all committees.

ADJOURN

It was moved by Council Member Hagness and seconded by Council Hamerlik that we do now adjourn. Carried 12 votes affirmative.


Very truly yours,



John M. Schmisek
City Auditor

Approved:
____________________________________
Patricia A. Owens, Mayor