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PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF GRAND FORKS, NORTH DAKOTA
May 5, 2003

The city council of the city of Grand Forks, North Dakota met in the council chambers in City Hall on Monday, May 5, 2003 at the hour of 7:00 o’clock p.m. with Mayor Brown presiding. Present at roll call were Council Members Brooks, Hamerlik, Glassheim, Gershman, Christensen, Kerian, Kreun - 7; absent: none.

Mayor Brown announced that anyone wishing to speak to any item may do so by being recognized prior to a vote being taken on the matter, and that the meeting is being televised.

Mayor Brown announced commented on various events during the past week and upcoming events:
1) that on Saturday had opportunity of officially bid farewell to Col. Scott Phillips, Base Vice Wing Commander, that he will be missed and wish him well.
2) that this week is National Historic Preservation Week and theme is City Suburbs and Countryside and can acknowledge the week by celebrating local preservation accomplishments of the past year such as saving St. Michael's Hospital and Nurses Residence, promoting infill housing that maintains historic neighborhood appearance, building lift stations that fit our neighborhoods and establishing a display in City Hall that is devoted to Grand Forks history.
3) he thanked the CVIC, Crimestoppers, Alerus, Altru, the Air Base and the Grand Forks Police Department and other local groups for bringing a nationally known speaker this week, Lt. Col. David Grossman, to talk about kids learning to kill, that this is an issue each community needs to address, and encouraged everyone to attend one of his speeches.
4) he extended an invitation to join him on May 10 at University Park in taking part in the Annual March of Dimes WalkAmerica, this is important event that focuses on issue of how to help with problems related to premature birth.
5) he stated that on Saturday in University Park another event Springfest, that there has been a lot of work put into this event to make sure we don't see a repeat of last year, and thanked Police Department, Park District, UND administration and UND Student Government who have come up with several positive ideas and action, and urged everyone to be responsible and to make this a positive event for our community in the future.
6) that this week is Spring Clean-up Week.

MONTHLY FLOOD PROTECTION PROJECT UPDATE

Al Grasser, city engineer, reviewed the update of the written flood protection project, which was provided to the city council members, and reviewed construction and consultant work project schedules. He noted there was some acquisition activities in the various phases; and also noted there is going to be an open house regarding the planned pedestrian bridges to be held on May 21 at East Grand Forks Campbell Library to present the general information about the bridges and to gather public input regarding the aesthetic features of the bridges.

Council Member Christensen raised several questions as to what the council could do to help the City acquire the property that is needed so that they don't have any slow down because some properties aren't being purchased; and were aware of situation in Sunbeam area and contacted by the contractor who is concerned about the last half of the reach, and what may happen if those homes aren't purchased or arrangements aren't made - that if need assistance in hiring more people to finish this part of the project, and maybe a local share. Mr. Swanson stated he has concern as to how they define acquisition, that in the definition of acquisition in the report includes the engineering determination of what lands are required for various portions, that he has the feeling that council interprets it as a negotiation side of it and it is broader and further than that, that his office is still waiting for engineering drawings to determine what areas are required for them to even get appraisals on property that is hoped to be bid in the near future, and wanted council to be aware that acquisition is not limited to negotiations or eminent domain proceedings. He stated there are portions of the project that have not yet been designed by the design team and yet are on the schedule for bidding.

Melanie Parvey-Biby, Greenway Coordinator, reviewed the update of the greenway project which had been distributed to the city council. She stated they are making progress on the design of the pedestrian bridges and consultants are looking at locations, elevations of the bridges, developing options for both high and low level bridges and looking at preliminary structural and hydraulic analysis as well as cost estimates and this information will be available to the public in May and encourage public to come out to see those presentations. She stated they are working on developing a boat ramp in the greenway and have a working group and next meeting is scheduled to meet May 15, and those helping are fire department, engineering department, Grand Forks Park District, ND Game and Fish and reps. of Lincoln and Elks neighborhoods and local anglers.

Council Member Christensen stated that the report contained the greenway logo and name, and asked if it is in the City's best interest to have a logo that was developed through the greenway that we're going to embrace and utilize and have in all our advertising, and have our City's logo trade-marked and owned by a non-profit, Friends of the Greenway, and we should trade-mark it and license it to them for utilization for nothing. Ms. Biby stated that is something the greenway technical committee had talked about in February and plans to review at their May meeting and plan to have discussion with city council to make sure that is the direction they want to go.

TABLE PUBLIC HEARING ON APPLICATION FOR

MOVING PERMIT TO MOVE SINGLE-FAMILY HOUSE

TO 1829 NORTH 4TH STREET

The city auditor reported that the notice of public hearing on the application by David Blue to move a building from 1415 Lewis Blvd. to 1829 North 4th Street to be used as a single-family home, had been published and posted as required.

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

Mike Swendseid, 1825 North 4th Street, stated he and several other members of the neighborhood, were here to protest the issuance of a permit to move from 1415 Lewis Blvd. residence to the lot at 1829 North 4th Street because the lot has been built up where it is offensive to the neighborhood and asked that the council consider that and projected photographs of the property showing height of the property. He stated they have no objections to people moving into neighborhood and met Mr. Blue and think would be great to have in the neighborhood but question drainage and engineering department stated they can make it so it works, but question that when implementation is made, doesn't always come out like on paper, have experience with that across alley and many times resembles small slue, and problem is with elevation of the building as not compatible with other properties, and asked council to deny the permit at the existing height of the lot.
Bev Collings, Building Administrator, stated this property is several feet lower than the base flood elevation that is needed to construct a home and for this property to build up the lot to submit documentation to FEMA to get it out of the floodplain by a letter of map revision (revision because of the buildup of the fill), this house is a smaller home and can be very difficult to have this home with no basement. She stated there are a couple options - can build with foundation and no basement or can build a basement where have to fill it with pea rock - have to have main floor at or above the basement elevation, or fill the lot and get a letter of map revision and that was chosen for this lot. She stated this is an historic house that must be relocated by the Corps - running out of options but with terracing and landscaping that it will be appropriate - the site is about 9 inches higher than it needs to be right now, worked with future owner to try to set the house in the proper place so can do some landscaping and believes it will work and monitor to keep the terracing done correctly. She stated it is difficult to get these houses relocated.

Council Member Gershman asked if they are under time constraint - there are other lots available, and not sure good idea to bring lot up so much in the neighborhood. Mark Walker, asst. city engineer, stated the purpose of relocating the house is that it is in conflict with the flood protection project; and that he understood that the Historic Commission picked out these lots and have been approved for houses and they knew that these 4 houses were to be relocated and selected the lots.

David Blue stated he purchased the house and has 90 days and would like project to proceed, that he works in agriculture, and that he does have a large lot for this small house (33'x29'), he stated his plan of action is to remove as much of the dirt as possible and rebuild it back up with just the amount of dirt needed to be at the LOMR (letter of map revision) level, which is about 3.5 ft. off the ground at the berm, and his slope would have to be at 3 1/2 feet from 10 ft. outside of where his house is built to the curb, and at that 10 feet out he would do retaining walls, raised patio and help to alleviate the big drop-off, that the house is going to be taller but only as tall as a two-story house, thinks problem is that the ground is going to be so high and by using terraces and walls to keep the ground lower and then only a foot and half of grade to slope down. He stated that if there are drainage problems, he would put in a drain tile system or ditching system that will work.

Council Member Brooks asked to table this matter for 2 weeks; the motion died for lack of a second.

Mr. Blue stated that if there was another lot in that area, he would consider it as he knows this lot is not an ideal situation, thinks can make it work.

Council Member Kreun stated those houses have to be moved by the Historical Society and cannot be altered, and in order for us to move those houses and be out of the way of the flood protection project and be doing some of the infrastructure in June, doesn't give much time, and don't want to delay this any further.

Council Member Glassheim stated he looked at the property and it seems to be extremely high, that Mr. Blue has good intentions and good neighbor, why not do without basement for 2 or 3 years until flood protection is completed. Ms. Collings stated when you don't have the basement the furnace, water heater, washer and dryer will have to be on the main floor and because it is an historic home it cannot be altered. He stated he didn't like the City to be initiating something because of agreements it has made and sets aside the best interests of the neighborhood. Ms. Collings stated in this area there are not a lot of elevated houses, on same grade, but on Lewis Blvd. you see quite a few elevated houses and thinks the grading can be worked out.
Council Member Hamerlik questioned moving of other houses on Lewis Blvd.; Mr. Walker stated there are 4 historic houses under the agreement with the Historical Society that the City is required to relocate and move and 1 additional home that is not considered historical that they will offer for bids to relocate; and are working on all of the homes as part of the acquisition process. It was also noted that an addition could be put onto this house after 5 years. Council Member Christensen asked if they could get an exemption for this individual for the historic conditions so that he can lower it and put the addition for his washer and dryer and furnace in place; or at least try that. Ms. Collings stated that the Historic Commission has looked at that many times and have not allowed that. Mr. Blue stated he has no intentions of remodeling and that would be substantial addition to this house, it is a 3 bedroom house with 2 in the upper level and 1 l/2 baths - there is no room to put utilities and if took main floor bedroom, it takes up a lot of the living space. .

Council Member Gershman asked if the Historical Commission has looked at this lot with the house with the 4 1/2 or 5 ft. of fill and might want to ask them and might have a different opinion of how that home will look. He stated he has seen where people have built their homes up with larger foundations and they don't landscape and looks really bad.

It was moved by Council Member Glassheim and seconded by Council Member Brooks to table this matter for 2 week (to the next council meetings). Carried 6 votes affirmative; Council Member Kreun voted against the motion.

Council Member Hamerlik asked if they have some additional information that this matter be placed on the committee of the whole next Monday.

ADOPT ORDINANCE NO. 3969 ANNEXING LANDS KNOWN
AS LOT A, BLOCK 1, AURORA ADDITION, EXCEPT PARTS
PREVIOUSLY ANNEXED

An ordinance entitled "An ordinance to annex all those lands to be known as Lot A, Block 1, Aurora Plaza Addition, being a Replat of Lots 1 and 2, Block 1, Aurora Plaza Addition to the city of Grand Forks, North Dakota, except parts previously annexed", which had been introduced and passed on its first reading on April 21, 2003 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 this evening and further that to date no protests or grievances had been filed with his office.

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

It was moved by Council Member Gershman and seconded by Council Member Christensen to adopt the ordinance. Upon roll call vote the following voted "aye": Council Members Brooks, Hamerlik, Glassheim, Gershman, Christensen, Kerian, Kreun - 7; voting "nay": none. Mayor Brown declared the ordinance adopted.

ADOPT ORDINANCE NO. 3970, ANNEXING ALL OF LOTS
A, B AND C EXCEPT PREVIOUSLY ANNEXED SOUTH 50 FEET
OF LOTS A AND B, JOHNSON'S 4TH ADDITION
An ordinance entitled "An ordinance to annex all of Lots A, B and C except the previously annexed south 50 feet of Lots A and B thereof, Johnson's 4th Addition to the city of Grand Forks, North Dakota", which had been introduced and passed on its first reading on April 21, 2003, 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 this evening and further that to date no protests or grievances had been filed with his office.

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

It was moved by Council Member Gershman and seconded by Council Member Christensen to adopt the ordinance. Upon roll call vote the following voted "aye": Council Members Brooks, Hamerlik, Glassheim, Gershman, Christensen, Kerian, Kreun - 7; voting "nay": none. Mayor Brown declared the ordinance adopted.

ADOPT ORDINANCE NO. 3971, ANNEXING ALL THAT
PORTION OF COLUMBIA PARK 26TH ADDITION, NOT
PREVIOUSLY ANNEXED, AS DOCUMENT NUMBER 591520

An ordinance entitled "An ordinance to annex all that portion of Columbia Park 26th Addition to the city of Grand Forks, North Dakota, not previously annexed, as Document Number 591520", which had been introduced and passed on its first reading on April 21, 2003, 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 this evening and further that to date no protests or grievances had been filed with his office.

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

It was moved by Council Member Gershman and seconded by Council Member Christensen to adopt the ordinance. Upon roll call vote the following voted "aye": Council Members Brooks, Hamerlik, Glassheim, Gershman, Christensen, Kerian, Kreun - 7; voting "nay": none. Mayor Brown declared the ordinance adopted.

ADOPT ORDINANCE NO. 3972, RELATING TO ESTABLISHMENT
AND IMPOSITION OF INFRASTRUCTURE CONNECTION AREAS
AND FEES

An ordinance entitled "An ordinance adopting Article 12 of Chapter II of the Grand Forks City Code relating to the establishment and imposition of infrastructure connection areas and fees", which had been introduced and passed on its first reading on April 21, 2003, was presented and read for consideration on second reading and final passage.

Mayor Brown called upon the audience to see if there was anyone present who had comments to make on this matter. There were none.
Howard Swanson, city attorney, reported that at the last meeting suggestions of some additions or alterations to the ordinance were made and that he has included the information regarding depreciation schedules and the information regarding the recording of notices; that if the draft as presented is acceptable, the motion should be made to amend it to incorporate the changes presented by the city attorney's office and if passed, would vote on the motion for second reading as amended.

Council Member Christensen moved the amendment to the ordinance to incorporate the changes presented by the city attorney's office (An ordinance adopting Article 12 of Chapter II of the grand Forks City Code relating to the establishment and imposition of infrastructure connection areas and fees and the repealing of Grand Forks City Code Article 4, Chapter XV); Council Member Brooks seconded the motion.

Council Member Christensen stated that Section 2-1208 of the ordinance, where interest shall be computed at 3% per annum from and after the date of retirement of any bonded indebtedness, and stated that is today's current rates and suggested to include in his motion to pay annual earnings rate. He stated in Section 2-1213, item (3) knows we have this recorded but was concerned that we have this tapping fee on the plats so that when people buy the land and it has been platted, they'll know that there's a fee or not needed because not annexed. Mr. Swanson stated he would caution them about doing that and that is why drafted with a separate recording, that they may run into an instance where your fee will extend out beyond current platted area and fee pre-established so never have it on the plat, this would show up in title search, title opinion or title insurance policy as a stand alone notice. He stated his recommendation is not to tie it to a plat because may define it to unplatted property.

Upon call for the question on the amendments to the ordinance, and upon voice vote, the motion carried 7 votes affirmative.

Upon call for the question on adoption of the ordinance, as amended, and upon roll call vote, the following voted "aye": Council Members Brooks, Hamerlik, Glassheim, Gershman, Christensen, Kerian, Kreun - 7; voting "nay": 1. Mayor Brown declared the motion carried and the ordinance adopted.

ADOPT ORDINANCE NO.3973, RELATING TO LAND
DEVELOPMENT CODE RELATING TO COFFEE KIOSKS

An ordinance entitled "An ordinance amending the Grand Forks City Code of 1987 as amended; Chapter XVIII, Land Development Code, Article 2, Zoning; Section 18-0204 Rules and Definitions; Section 18-0215 B-2 (Shopping Center) District; subsections (3) Conditional Uses and (11) Special Conditions; Section 18-0216 B-3 (General Business) District; subsection (3) conditional uses", which had been introduced and passed on its first reading on March 17, 2003, was presented and read for consideration on second reading.

Mr. Swanson stated for the record that the Planning and Zoning Commission has had this matter for more than 30 days from their last meeting and has not provided council with a report and the council, if choose to, may act upon this ordinance without their final recommendation, and if the council chooses to follow the draft that he has presented, the appropriate motion would be to amend the ordinance as first introduced to incorporate the changes recommended by the city attorney's office, that if that passes, then vote on final approval, as amended.
Council Member Kerian stated that the ordinance stated that the planning director is authorized to grant a variance of up to 10% of the parking spaces required of the principal use of the property or 10 parking spaces, whichever is greater, and questioned the reasoning for the 10%. Mr. Swanson stated that the planning director will take a practical view of the parking lot to determine whether or not there is a present demand for all of the parking that is required under the Code, assuming that use does not have an actual demand for all of the Code required parking, his draft allows the planning director up to 10% or 10 spaces - that it is an attempt if the property owner wishes to have those uses placed in their parking lot and the planning director determines that there is not an existing demand to use the parking stalls, he has that discretion. He stated that if the planning director determines that 10% is inappropriate, he wouldn't grant it; that he is attempting to give the planning director a fair amount of discretion, an ability to make an analysis as to what impact this particular use on a temporary basis will have on a given parking lot.

Council Member Kerian questioned the fee structure, health department, inspection fee or number of other fees, and if the council should want to set in place a practice of a fee in lieu of taxes and ask appropriate personnel to draft such an item. Mr. Swanson stated it is a discretionary matter for the council, and that they do not do that for any other mobile food use nor for any other temporary use (storage of facilities in a parking lot, garden facilities, etc.) and if do that, need to be consistent and look at all those temporary uses in lieu of taxes; there is no provision in state law but would have authority under Home Rule Charter to do that and those fees would only then be payable to the City. He stated fees contemplated by the ordinance would be the health department inspection fees, the planning department, the inspections department. She stated these could be there for years while garden huts, etc. for months.

After some discussion as to the parking requirements, Mr. Swanson stated they may wish to consider granting the director of planning the discretion to reduce the stacking lanes down to 3 vehicles, and if inclined to do that would have to amend the ordinance as well.

Council Member Christensen stated that in the ordinance the applicant for a coffee kiosk has to comply with all the codes, rules and regulations imposed or enforced by the Health Department, Fire Department, Inspections Department and/or the Engineering Department and why do they have to comply with all the rules and regulations they may have. Mr. Swanson stated that is at the suggestion of Mountain Mudd because of particular rules that apply both from the electrical codes, plumbing, health department and fire - but to run a restaurant or a food service, there are requirements that have to be met, and also noted that is included in the ordinance they know what is expected to comply with. He also noted that based upon codes out of various cities (Minneapolis, St. Paul, Portland, Seattle, etc.) there is quite a bit of information that he has put together and based upon the comments that he has received from franchise division of Mountain Mudd , they are quite happy with the draft.

It was moved by Council Member Christensen and seconded by Council Member Gershman to approve the amendments to the ordinance including granting the director of planning the discretion to reduce the stacking lanes down to three. Carried 7 votes affirmative.

Council Member Kerian stated she would like to include instructions of adding a fee and that the city assessor stated he could come up with a method in which a fee would be assessed, and what would they need to do under Home Rule to put that in place. Mr. Swanson stated that depends on what trying to accomplish, if trying to set a fee then its a matter during budget time the department establish various fee schedules, the assessing office hasn't been involved in determining fees and in this case, the health department, planning and inspections and if you wish to incorporate additional fees in anyone of those. Council Member Kerian stated this is a fee unique to a temporary structure that is doing business for a longer period of time in lieu of taxes. Mayor Brown stated they could have Mr. Duquette meet with the appropriate department heads to come forth with a recommendation on that. Mr. Swanson stated he was troubled by the suggestion that it would come from the assessing office but if tied it to the planning department's review of a special or temporary use where this fits, can include it there, but then need to know that it applies to all special uses and temporary uses, but if want to apply it to coffee kiosks, then put it into the health department's fee as the inspection of a coffee kiosk; if put it into inspection department's fee, then it's a matter of plumbing, electrical and if looking for a place to put it, fits best with the health department. Council Member Kerian stated she would leave this to the mayor's discretion.

Brian Lindeman, 3017 Broadway Blvd., questioned the fee; Council Member Kerian stated this business as many others would also be taking advantage of additional requirements for police, fire protection, than a parking lot would. Mr. Lindeman stated that whomever they are leasing the property from is still paying taxes and are not portable units and not using mobile units to reduce their capital, would be more cost effective for them to find a location, lease space and pay for the building, etc. and questioned what the fee is, annual fee would be his only concern and if stop the process, doesn't care what they pay, but thinks there is an issue there, because have invested the capital and still paying the people leasing from are still paying taxes, etc. He stated they go with a mobile unit so they can move them around and pick out better locations.

Upon call for the question on the motion as amended, and upon roll call vote, the following voted "aye": Council Members Brooks, Glassheim, Hamerlik, Gershman, Christensen, Kerian, Kreun 7; voting "nay": none. Mayor Brown declared the motion carried and the ordinance adopted.

WAIVE IRREGULARITIES ON BIDS, RECONFIRM
PREVIOUS RECOMMENDATION AND AWARD

PROJECT TO LOW BIDDER CONTINGENT UPON

NORTH DAKOTA DEPARTMENT OF HEALTH AND

CITY ATTORNEY CONCURRENCE

The staff report from the engineering department relating to the matter of bids for Project No. 4948.3, Residuals Force Main, Phase 3, with recommendation to waive irregularities noted on bids, as appropriate, reconfirm previous recommendation and awards the project to low bidder contingent upon North Dakota Department of Health (NDDH) and city attorney concurrence.

It was moved by Council Member Gershman and seconded by Council Member Brooks that this recommendation be approved. Carried 7 votes affirmative.

APPROVE RESOLUTION CREATING ASSESSMENT DISTRICT,
SEWER PROJECT NO. 5488, DISTRICT NO. 418

The staff report from the engineering department relating to creating special assessment district for Project No. 5488, District No. 418, 47th Avenue South sanitary sewer (1100 and 1200 blocks), with recommendation to approve engineer's report, create special assessment district, direct engineering department to prepare plans and specifications and advertise for construction bids for Project No. 5488, District No. 418.

It was moved by Council Member Gershman and seconded by Council Member Brooks that this recommendation be and is hereby approved, and that we adopt a resolution creating the assessment district, approving the engineer's report, including estimate of cost, an assessment district map, and further that we pass a resolution instructing the city engineer to prepare detailed plans and specifications, and that we declare intent to sell bonds to finance these improvements. Carried 7 votes affirmative.

Council Member Gershman introduced the following resolution creating the assessment district, which was presented and read: Document No. 8260 - Resolution.

It was moved by Council Member Gershman and seconded by Council Member Brooks that this resolution be adopted. Upon roll call the following voted "aye": Council Members Brooks, Hamerlik, Glassheim, Gershman, Christensen, Kerian, Kreun - 7; voting "nay": none. Mayor Brown declared the motion carried and the resolution adopted.

ACCEPT ENGINEER'S REPORT, SEWER PROJECT NO.
5488, DISTRICT NO. 418

The city auditor presented and read the engineer's report for Sewer Project No. 5488, District No. 418: Document No. 8261 - Report.

It was moved by Council Member Gershman and seconded by Council Member Hamerlik that this report be approved. Carried 7 votes affirmative.

ADOPT RESOLUTION TO PREPARE PLANS AND SPECIFI-
CATIONS, SEWER PROJECT NO. 5488, DISTRICT NO. 418

Council Member Gershman introduced the following resolution to prepare plans and specifications, which was presented and read: Document No. 8262 - Resolution.

It was moved by Council Member Gershman and seconded by Council Member Brooks that this resolution be adopted. Upon roll call the following voted "aye": Council Members Brooks, Hamerlik, Glassheim Gershman, Christensen, Kerian, Kreun - 7; voting "nay": none. Mayor Brown declared the motion carried and the resolution adopted.

AWARD CONTRACT FOR PROJECT NO. 5457, REPAIRS
AT LIFT STATION 32

The staff report from the engineering department relating to consideration of bids for Project No. 5457, replace drives at Lift Station 32, with recommendation to award contract to low bidder, Samson Electric, LTD., for the alternate bid in the amount of $91,397.00.

It was moved by Council Member Gershman and seconded by Council Member Brooks that this recommendation be approved. Upon roll call the following voted "aye": Council Members Brooks, Hamerlik, Glassheim, Gershman, Christensen, Kerian, Kreun - 7; voting "nay": none. Mayor Brown declared the motion carried and the contract awarded.

CONCUR WITH NORTH DAKOTA DEPARTMENT OF
TRANSPORTATION IN AWARD OF BIDS TO GOWAN
CONSTRUCTION, INC. FOR PROJECT NO. 5378, OVERLAY
AND RECONSTRUCTION OF PORTION OF US 81
The staff report from the engineering department relating to consideration of bids for construction of Project no. 5378, overlay and reconstruction of U.S. 81 from Gateway Drive to Interstate 29, with recommendation to concur with North Dakota Department of Transportation award of contract to low bidder, Gowan Construction, Inc. in the amount of $1,441,036.01.

It was moved by Council Member Gershman and seconded by Council Member Brooks that this recommendation be approved. Upon roll call the following voted "aye": Council Members Brooks, Hamerlik, Glassheim, Gershman, Christensen, Kerian, Kreun - 7; voting "nay": none. Mayor Brown declared the motion carried and the contract awarded upon concurrence from the North Dakota Department of Transportation.

AWARD CONTRACT FOR PROJECT NO. 5430, 2003
GREENWAY MAINTENANCE

The staff report from the greenway coordinator relating to consideration of bids for Project No. 5430, 2003 Greenway Maintenance, with recommendation to award contract to BJ Enterprises for contract No. 1 in the amount of $30,460.00, and award of contract to Fert-l-lawn for contract No.2 in the amount of $30,325.00.

It was moved by Council Member Gershman and seconded by Council Member Brooks that this recommendation be approved. Upon roll call the following voted "aye": Council Members Brooks, Hamerlik, Glassheim, Gershman, Christensen, Kerian, Kreun - 7; voting "nay": none. Mayor Brown declared the motion carried and the contracts awarded.

APPROVE GRANT APPLICATION FOR FIRE DEPARTMENT

The staff report from the fire department relating to fire department FEMA Fire Act Grant application, with recommendation to approve grant application for fire department (amounting to $42,503 in federal funds with local match from department in the amount of $49,167 for purchase of 52 ft. two-story fire flash mobile simulator and 30 ft. incident command mobile simulator for training department personnel)

It was moved by Council Member Gershman and seconded by Council Member Brooks that this recommendation be approved. Upon roll call the following voted "aye": Council Members Brooks, Hamerlik, Glassheim, Gershman, Christensen, Kerian, Kreun - 7; voting "nay": none. Mayor Brown declared the motion carried.

APPROVE BUDGETAMENDMENT, SANITATION

The staff report from the director of public works relating to sanitation department equipment bid, with recommendation to approve the bid of sanitation department payloader as follows: Butler Machinery of Grand Forks in the amount of $211,490.00.

It was moved by Council Member Gershman and seconded by Council Member Brooks that this recommendation be approved. Upon roll call the following voted "aye": Council Members Brooks, Hamerlik, Glassheim, Gershman, Christensen, Kerian, Kreun - 7; voting "nay": none. Mayor Brown declared the motion carried.

APPROVE RENAISSANCE ZONE PROJECT GF-6
The staff report from the planning department relating to approval of Grand Forks Renaissance Zone Project GF-6, with recommendation for grant approval to Grand Forks Renaissance Zone Project GF-6 and direct staff to submit the project application to the Division of Community Services for its action.

It was moved by Council Member Gershman and seconded by Council Member Brooks that this recommendation be approved. Carried 7 votes affirmative.

CONSIDER ASSESSMENT DISTRICTS FOR AREA
ALONG 55TH AVENUE SOUTH FROM SOUTHEND

DRAINWAY TO CHERRY STREET

Mr. Grasser reported that the matter of assessment districts were brought to the committee of the whole last week for Sewer Project No. 5501, District No. 417, sanitary sewer on 55th Avenue South from Cherry Street to Belmont Road; Watermain Project No. 5502, District No. 275, watermain on Cherry Street from southend drainway to 55th Avenue South and on 55th Avenue South from Cherry Street to Belmont Road; and for Paving Project No. 5504, District No. 590, paving Cherry Street from southend drainway to 55th Avenue South and since then have had concerns expressed by some of the citizens and have been able to move the design a little farther along and discovered some opportunities to have some considerations and reviewed revised assessment district maps of the areas and as they got into the design and looked at different alternatives, have found that they could actually make changes in original layout and some existing utilities that are there - and effectively takes out all of Julien's Subdivision to the north; that the other section occurs on the earlier part of the assessment project. He stated if the council anticipates a potential change in trunk infrastructure policy, either paying for it through city-type funds as proposed or changing on how we might want to assess it, it offers an opportunity to cut this project back. He stated there are a number of homes in McIntyre's Subdivision, on north and south side of 55th, and what you have before you stops the project at the alley, and that takes out any existing residences from the project and eliminates last 300 feet of project and if can put that line in at a future date under a different policy and if not do any changes to policy or even think they are going to make any changes, it is disservice to leave it out at this time. He stated there are discussions from property owners to the east that are going to be tying into some of these utilities. He stated his suggestion because he thinks change in policy in trunk infrastructure makes sense, that they cut this project off at alley line, and those two changes he outlined - the anticipation of a lot and of a change in policies allows the district before you to makes sense with current policies. He displayed the new district on the map along with the engineer's report that has changed the cost of the project.

Council Member Christensen stated there would be a briefing before the council on the rate structure but inherent in the rate structures, further recommendations of various consultants and with Mr. Grasser's urging, will build into our rate structure a small amount of money and will be able to take and make this switch in policy but was already in the process, and we will be imposition next spring have this policy in place and developers will know about the policy and for utilization of the funds for development, that this is good for the citizens and good as a change in policy for the community and help future developments.

Tom Faulk, 5410 Chestnut Street, stated he is with the group from Julien's Addition and from McIntyre's Addition, and some members of their community did call Mr. Christensen and Ms. Voigt and thanked her for providing information; that they are an existing community that has been out there about 25 to 30 years and were annexed in about 12 years ago, and assessments were based at that time for sanitary sewer and for water which they now have, and their question with the engineering department was what benefit were they going to get from this project as initially proposed, and best they could get was more pressure to their fire hydrants, and people are happy with the revised assessment district and are still paying assessments when annexed into the city.

ADOPT RESOLUTION CREATING ASSESSMENT
DISTRICT, SEWER PROJECT NO. 5501, DISTRICT NO. 417

The staff report from the engineering department relating to creation of special assessment district for Project No. 5501, District No. 417, sanitary sewer on 55th Avenue South from Cherry Street to Belmont Road, with recommendation to approve engineer's report, create special assessment district, direct engineering department to prepare plans and specifications and advertise for construction bids for Project No. 5501, District No. 417.

It was moved by Council Member Kreun and seconded by Council Member Christensen that this recommendation be and is hereby approved, and that we adopt a resolution creating the assessment district, approving the engineer's report, including estimate of cost, an assessment district map, and further that we pass a resolution instructing the city engineer to prepare detailed plans and specifications, and that we declare intent to sell bonds to finance these improvements. Carried 7 votes affirmative.

Council Member Kreun introduced the following resolution creating the assessment district, which was presented and read: Document No. 8263 - Resolution.

It was moved by Council Member Kreun and seconded by Council Member Christensen that this resolution be adopted. Upon roll call the following voted "aye": Council Members Brooks, Hamerlik, Glassheim, Gershman, Christensen, Kerian, Kreun - 7; voting "nay": none. Mayor Brown declared the motion carried and the resolution adopted.

ACCEPT ENGINEER'S REPORT, SEWER PROJECT NO.
5501, DISTRICT NO. 417

The city auditor presented and read the engineer's report for Sewer Project No. 5501, District No. 417: Document No. 8264 - Report.

It was moved by Council Member Kreun and seconded by Council Member Christensen that this report be approved. Carried 7 votes affirmative.

ADOPT RESOLUTION TO PREPARE PLANS AND SPECIFI-
CATIONS, SEWER PROJECT NO. 5501, DISTRICT NO. 417

Council Member Kreun introduced the following resolution to prepare plans and specifications, which was presented and read: Document No. 8265 - Resolution.

It was moved by Council Member Kreun and seconded by Council Member Christensen that this resolution be adopted. Upon roll call the following voted "aye": Council Members Brooks, Hamerlik, Glassheim, Gershman, Christensen, Kerian, Kreun - 7; voting "nay": none. Mayor Brown declared the motion carried and the resolution adopted.

ADOPT RESOLUTION CREATING ASSESSMENT DISTRICT, WATERMAIN PROJECT NO. 5502, DISTRICT NO. 275

The staff report from the engineering department relating to creation of special assessment district for Project No. 5502, District No. 275, watermain on Cherry Street from Southend Drainway to 55th Avenue South and on 55th Avenue South from Cherry Street to Belmont Road, with recommendation to approve engineer's report, create special assessment district, direct engineering department to prepare plans and specifications and advertise for construction bids for Project No. 5502, District No. 275.

It was moved by Council Member Kreun and seconded by Council Member Christensen that this recommendation be and is hereby approved, and that we adopt a resolution creating the assessment district, approving the engineer's report, including estimate of cost, an assessment district map, and further that we pass a resolution instructing the city engineer to prepare detailed plans and specifications, and that we declare intent to sell bonds to finance these improvements. Carried 7 votes affirmative.

Council Member Kreun introduced the following resolution creating the assessment district, which was presented and read: Document No. 8266 - Resolution.

It was moved by Council Member Kreun and seconded by Council Member Christensen that this resolution be adopted. Upon roll call the following voted "aye": Council Members Brooks, Hamerlik, Glassheim, Gershman, Christensen, Kerian, Kreun - 7; voting "nay": none. Mayor Brown declared the motion carried and the resolution adopted.

ACCEPT ENGINEER'S REPORT, WATERMAIN PROJECT

NO. 5502, DISTRICT NO. 275

The city auditor presented and read the engineer's report for Watermain Project No. 5502, District No. 275: Document No. 8267 - Report.

It was moved by Council Member Kreun and seconded by Council Member Christensen that this report be approved. Carried 7 votes affirmative.

ADOPT RESOLUTION TO PREPARE PLANS AND SPECIFI-
CATIONS, WATERMAIN PROJECT NO. 5502, DISTRICT NO. 275

Council Member Kreun introduced the following resolution to prepare plans and specifications, which was presented and read: Document No. 8268 - Resolution.

It was moved by Council Member Kreun and seconded by Council Member Christensen that this resolution be adopted. Upon roll call the following voted "aye": Council Members Brooks, Hamerlik, Glassheim, Gershman, Christensen, Kerian, Kreun - 7; voting "nay": none. Mayor Brown declared the motion carried and the resolution adopted.

ADOPT RESOLUTION CREATING ASSESSMENT DISTRICT,
PAVING PROJECT NO. 5504, DISTRICT NO. 590

The staff report from the engineering department relating to creation of special assessment district for Project No. 5504, District No. 590, paving Cherry Street from Southend Drainway to 55th Avenue South, with recommendation to approve engineer's report, create special assessment district, direct engineering department to prepare plans and specifications and advertise for construction bids for Project No. 5504, District No. 590.
It was moved by Council Member Kreun and seconded by Council Member Christensen that this recommendation be and is hereby approved, and that we adopt a resolution creating the assessment district, approving the engineer's report, including estimate of cost, an assessment district map, and further that we pass a resolution instructing the city engineer to prepare detailed plans and specifications, and that we declare intent to sell bonds to finance these improvements. Carried 7 votes affirmative.

Council Member Kreun introduced the following resolution creating the assessment district, which was presented and read: Document No. 8269 - Resolution.

It was moved by Council Member Kreun and seconded by Council Member Christensen that this resolution be and is hereby adop9ted. Upon roll call the following voted "aye": Council Members Brooks, Hamerlik, Glassheim, Gershman, Christensen, Kerian, Kreun - 7; voting "nay": none. Mayor Brown declared the motion carried and the resolution adopted.

ACCEPT ENGINEER'S REPORT, PAVING PROJECT NO.
5504, DISTRICT NO. 590

The city auditor presented and read the engineer's report on Paving Project No. 5504, District no. 590: Document No. 8270 - Report.

It was moved by Council Member Kreun and seconded by Council Member Christensen that this report be and is hereby approved. Carried 7 votes affirmative.

ADOPT RESOLUTION OF NECESSITY, PAVING PROJECT
NO. 5504, DISTRICT NO. 590

Council Member Kreun introduced the following resolution of necessity, which was presented and read: Document No. 8271 - Resolution.

It was moved by Council Member Kreun and seconded by Council Member Christensen that this resolution be and is hereby adopted. Upon roll call the following voted "aye": Council Members Brooks, Hamerlik, Glassheim, Gershman, Christensen, Kerian, Kreun - 7; voting "nay": none. Mayor Brown declared the motion carried and the resolution adopted.

AWARD CONTRACT TO LOW BIDDER, PROJECT NOS.
4812, 4814.2, 4815.2, 4816.3 AND 5495, PHASE 3, SANITARY
SEWER AND WATER MONDIFICATIONS

The staff report from the engineering department relating to consideration of bids for Project No. 4812, 4814.2, 4815.2, 4816.3 and 5495, Phase 3, Sanitary Sewer and Water Modifications, with recommendation to approve award of a contract to the lowest responsible bidder from the bid opening to be held on May 2, 2003 at 2:00 p.m. at City Hall.

Additional bid information was received from staff as follows: It is recommended that the City waive the irregularity and award the project at tonight's city council meeting to Wagner Construction at $1,217,447.00 or reject the bid as non-responsive and award to Quam Construction, Inc. at $1,358,826.50.

Mr. Walker reported they had bid opening and project is for relocation of sanitary sewer in the way of the flood protection project, that they had an irregularity in one of the bids received - that they opened the bids last Friday, that they received bids from 5 bidders, bids were opened and read aloud at the bid opening, and appeared there were no irregularities as everyone acknowledged addendum on the outside of the bid envelope, etc.; that after they receive bids they tabulate the bid items to make sure there is no error in multiplication or addition of all the numbers; there were several errors in the bids received and math corrected with correct total; however the problem they found when doing the tabulation of the low bidder, Wagner Construction, that they were missing one page of the bid submittal that contained a number of unit prices and no way to check the math; that the consultant contacted Wagner and told them of the missing sheet and they provided that sheet where a copy was made. Prior to the bid opening he passed out a handout for everybody that includes the actual bid submitted by Wagner Construction and it includes an abstract of all the bids received and contains a letter from Wagner Construction telling them what their intentions were; and when they received the missing page it changed his bid price, and increased it by about $56,000, however, that would still make them low. He stated that asked Wagner to explain what his intentions were and his intentions are indicated on the last page of this proposal, that his intentions were to submit the lower bid even though the sheet that was handed to them after the bid opening increased his bid price, his intentions were to submit the lower bid. He stated they either accept the missing page as an irregularity and award to the low bidder, Wagner Construction, or determine that the missing page is significant enough to cause an incomplete bid, reject his bid and award to the second low bidder.

Mr. Swanson reported that the bid specifications were drafted by a different consulting firm than the last one and different than the last set of specifications and assume that somebody is not reading the specifications very well, that in the specifications it indicated that if your error was in a schedule and involved the multiplication of a quantity times the unit price, that the engineering department did have the ability to make corrections in that, however, if the error were to occur in the adding of columns, that the bidder is bound by what they have written into the bid summary, and in this case the bid schedule that had the error in it, the contractor had written $581,375.00 for that bid schedule and he is bound by that price if you allow the bid to be accepted and is also bound by the total of $1,217,447.00 and cannot change his bid to increase it to what would be the corrected math, and legal standard is whether or not this bidder by failing to include that page gained any type of substantial financial advantage over any of the other bidders, that it doesn't appear as though he did in this case because he is bound by the lump sum. The only potential that he is able to identify would be in an issue where there is a determination as to a difference in quantities but in this case the deduction will come in a lump sum basis - it doesn't appear as though any bidder would have the financial advantage as a result of his not having page 5 included in his original bid submittal. He stated there is basis that they can accept it if you find that the inclusion of that schedule was a minor irregularity. He stated that the bidder has no choice but to honor that bid.

It was moved by Council Member Kreun and seconded by Council Member Gershman with Mr. Swanson's confirmation, to waive the minor irregularity and award the bid to Wagner Construction, Inc. with a total bid of $1,217,447.00.

Mr. Swanson stated this is a discretionary item for the council to make a determination,

Terry Quam, Quam Construction, stated they are second bidder, and if missing an entire sheet of bid numbers, that it would be an incomplete bid and should be rejected on those grounds.

Council Member Gershman stated this seems to be happening a lot and maybe we have to draw the line somewhere, that businesses should be able to read these rules and how they are supposed to apply and do it correctly, and maybe say if it's not correct it is not correct, concerned that it may get worse. Mr. Swanson stated that different councils have different philosophies on bidding, in mid-1980's the make of the council had the attitude that unless the bid had everything i dotted and every t crossed, it would not be accepted, and since that time council has become more lenient although still looking at the general rules as to whether a bidder is granted any type of financial advantage over another but point well taken as to whether or not bids are being properly analyzed before they are turned in to the City.

There were several questions as to change orders on this project; Mr. Walker noted that he would guarantee that this project would not come in at numbers bid, that these are estimated quantities for work to be done in the field, pay based on the work done, maybe greater or less than the quantities in the bid sheet. Tom Hanson, WFW, stated to qualify for additional change orders the contractor has to do additional work and has to be justified change, they review those very carefully and when reviewing the project.

After further discussion and upon call for the question and upon roll call vote, the following voted "aye" Council Member Hamerlik, Glassheim, Christensen, Kerian, Kreun - 5; voting "nay": Council Members Brooks, Gershman - 2. Mayor Brown declared the motion carried and the contract awarded.

AUTHORIZE STAFF TO SUBMIT GRANT APPLICATION
FOR FUNDING FOR SORLIE BRIDGE LIGHTING

The staff report from the engineering department relating to Sorlie Bridge lighting, with recommendation to authorize staff to submit a new grant application to the Federal Highway Administration for funding the lighting of the Sorlie Bridge with TCSO funds and advertise for request for engineering proposals to complete a Project Concept Report.

Mr. Grasser reported that the indications they have had with the NDDOT it seems as though they would be amiable to apply the dollars to this project and would meet the intent of the original TCSP grant, the only problem that was noted is that we have to write a new project concept report because this type of work wasn't covered in the original grant, that doesn't mean there is a problem, just part of the process that was laid out, and his biggest concern would be if the Historical Society would have an issue, and no reasons for not approving it. He stated that the Downtown Leadership Group and their consultant have made some preliminary contacts with the Historical Society and have received positive feedback. He stated when they go through the official review period through the concept report, there could be things he is not anticipating. He stated they have identified in their estimates that there could be a shortfall in the amount of dollars that are available, that these are early estimates and have contingencies - they have estimated $226,000 for the project and TCSP money remaining is $186,000 and because Grand Forks is the sponsoring agency, if there is a shortfall they would have to identify a funding source to take care of it.

It was moved by Council Member Kerian and seconded by Council Member Kreun to approve the recommendation and to proceed with arranging agreement with East Grand Forks to share the cost for operation and maintenance. Upon roll call the following voted "aye": Council Members Brooks, Hamerlik, Glassheim, Gershman, Christensen, Kerian, Kreun - 7; voting "nay": none. Mayor Brown declared the motion carried.

INFORMATIONAL ITEM

The Portfolio Management Summary ending April 30, 2003 was presented.

APPROVE BILL LISTING AND ESTIMATE SUMMARY

Vendor Payment No. 03-09, dated May 2, 2003, totaling $2,991,186.48; Flood Estimate Summary in the amount of $220.00 and Regular Estimate Summary in the amount of $740,274.45, were presented and read. It was moved by Council Member Gershman and seconded by Council Member Christensen that these bills and estimates 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 Brooks, Hamerlik, Glassheim, Gershman, Christensen, Kerian, Kreun - 7; voting "nay": none. Mayor Brown declared the motion carried and the bills and estimates ordered paid.

APPROVE MINUTES APRIL 21 AND 28, 2003

Typewritten copies of the minutes of the city council meeting held on Monday, April 21, 2003 and of the special meeting of the city council held on Monday, April 28, 2003 were presented and read. It was moved by Council Member Brooks and seconded by Council Member Gershman that these minutes be approved. Carried 7 votes affirmative.

COMMENTS BY MAYOR AND COUNCIL

1) Council Member Brooks stated he had received request from 911 Authority that wanted to meet with members of the city council regarding relocation of the Center and refer that to the Safety/Service Standby Committee.

2) Council Member Brooks reported he had handed out a list of items for the strategic planning committee, and questions to go with them

3) Council Member Christensen thanked Mr. Bunce for providing some information regarding the proposed salary increase and asked when balance of the information will be provided and when have a meeting of the council, department heads and mayor that will be affected so they can discuss what the overall cost of the proposed increase might be and teach them about the new wage program they have and how begin implementing it because it has lots of ramifications, that the mayor came out with a resolution or asking the department heads to find a couple million decrease and are presented by the study from HR that says potential increase in salaries would be $558,000, without benefits, and would like to have the rest of the information so they will know what expecting. Mr. Bunce stated that the numbers in this preliminary report are the numbers they have and the 3.25% of the prevailing rate is based upon all they were asked to do for this year and not sure what other information they want at this time, for salary budgetary purposes for the pay for performance system, the numbers are here. Council Member Christensen asked for the projected increase in payroll taxes, increase in benefits and how this would translate into increases in our Enterprise funds, what we could do to get some information from the 27% of cities that didn't respond in our immediate area as far as hiring, which would be competition, Crookston, Detroit Lakes, East Grand Forks, Duluth, and part of the plan was that we were losing people to MN and if don't know potential threat is, then adjust our numbers or try again to get the information. and mindful of that because of the fact of the budget reductions that are going on in MN and will probably be the norm for next 12-24 months. He stated that he didn't recall that everybody would be at the mid-term, that the council would begin by seeing what the mid-term was, but have 3 different levels (department heads, upper management and rank and file) and would like to see how this overlays on our department heads, and rank and file. He stated he would like to have some time at a committee of the whole meeting so they could learn these things because implementing a policy now that is going to have long term effects on future councils and future budgeting and important that they all understand this.

4) Council Member Christensen asked when they can expect the report and committee of the whole item on our wastewater plant, where at on finishing that and how that will fit into our budgeting process, and when we begin our discussion of increasing our fees - that citizens don't know this and if have presentation at a committee of the whole so the citizens know where we're at. Todd Feland, director of public works, stated they are going to have a cost of service study tomorrow - a joint meeting and go over some of the results related to the four utilities, that he provided some information re. wastewater treatment plant last week and in two weeks will have further information to report back.

ADJOURN

It was moved by Council Member Gershman and seconded by Council Member Hamerlik to adjourn. Carried 7 votes affirmative.

Respectfully submitted,

John M. Schmisek
City Auditor
Approved:
________________________________
Michael R. Brown, Mayor