City of Grand Forks, North Dakota

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PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF GRAND FORKS, NORTH DAKOTA
June 2, 2003

The city council of the city of Grand Forks, North Dakota met in the council chambers in City Hall on Monday, June 2, 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.

PLEDGE ALLEGIANCE TO THE FLAG

Boy Scout Leader Jim Porter and members of Troop 13 of Holy Family School led the council in the pledge of allegiance to the flag.

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 commented on various events of the past week and upcoming events:
1) Relay for Life was held this past weekend, over 1,000 participants supported cancer survivors and their families who have been struck by cancer, 77 teams and 170 survivors at the event and raised over $115,000.
2) Thanks to everyone involved with Launching Operation Enduring Friendship, Dr. Phil Harmison's Office and President Kupchella's Office at UND who were instrumental in making sure this idea grew wings - great way for community to show support for its Base and for the Base community and UND to continue to build stronger bonds.
3) Last night over 3200 people took advantage of the free community show, Tops in Blue at the Alerus - 50th anniversary.
4) Quilt Show on the Red, held at Red River High School and over 700 people attended, and 200 quilts on display.
5) This week extended welcome on behalf of the City to the Chinese ambassador who will be in town and visiting our city, primarily University of North Dakota.
6) He commented re. naming of a task force, that he and Council Member Gershman have agreed to launch the BFGF (Business Friendly Grand Forks) task force. Council Member Gershman stated he appreciates the opportunity to do this committee with the help of the mayor, that there have been concerns that Grand Forks could be more business friendly and the task force will look at focusing and building on what we do well, and find out some of the concerns and process that we have that maybe facilitate not only businesses but contractors in town who want to build multifamily facilities, etc.
7) Regional meetings on destination community initiative this week, and will be starting around the region to talk about Grand Forks and entire region and how to best move into the future, this week's meetings are in Larimore and Grafton and hopes to educate people around the region about the intent and the facts of his recent destination city imitative and focus will be on regional issues and how all communities must continue to hang together, and looking forward to meeting with new people and talking about how Grand Forks' future depends on the future of the region and vice versa.

MONTHLY FLOOD PROTECTION PROJECT UPDATE

Al Grasser, city engineer, presented video regarding the flood protection update and mentioned that they are still on track and Corps looking to advertise Phase III next month, and that the video covers both the flood protection and the greenway.

Council Member Glassheim asked for the schedule for North 3rd Street; Mr. Grasser stated they can take 2 1/2 blocks at any time and working on those pieces at a time and be in that area most of the summer. Mr. Glassheim also questioned the matter of permanent damage to houses from pounding; Mr. Grasser stated they have some documentation on the condition of homes and that is concern they hear expressed whenever work is done in a street and really haven't seen that result to any actual damages, the ground does shake a little bit, but usually doesn't transform into any damage in the homes.

RECONSIDER AND ADOPT ORDINANCE NO. 3970 TO
ANNEX PART OF JOHNSON'S 4TH ADDITION

Re-consideration of Ordinance No. 3970 entitled "An ordinance to annex all of Lots A, B and C except the previous 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 adopted on May 5, 2003, with reconsideration of adoption of the ordinance approved on May 19, 2003.

Mayor Brown opened the public hearing. There were no comments and the public hearing was closed.

Council Member Kreun stated he had received a call today that Mr. Crary was out of town, that Mr. Crary's request was to bring in Lot B, that Planning and Zoning indicated that they would require annexation of Lots A and C as well because of access and that Mr. Crary had stated he only needed the access from Lot A and questioned annexation of Lot C; there was some language written that indicates that it is only to be taxed or special assessed at his request to be brought in, not when forced to be brought in, and would like that to be discussed.

It was noted there is not an access road or development on Lot C; that they need to have access to Lot B and Lot A would be logical annexation. Mr. Grasser stated they have a site plan in the office and shows frontage road through Lots C and A, not sure whether he will actually develop those lots now but could build on Lots A and C from the approval. He stated that once they approve the site plan it shows access and would not preclude him from being able to build on the entire drawing. There was some discussion re. future annexation of Lot C, Mr. Grasser stated he didn't believe there was any trigger to bring it back to the city council and Lot A doesn't leave an island of unannexed property within the city, but does recognize that the frontage road would lay on Lot C.

Howard Swanson, city attorney, stated the decision as to whether or not this council will annex property is discretionary decision of the council, not dependent upon immediate or imminent plans of development or present development, some of the areas to look at would be future uses or future development. He also noted there is no provision in the agreement with respect to this particular property that prohibits or precludes from annexation; and stated that the City has no authority to place special assessments against property outside the city limits and doesn't find anything in the agreement to preclude annexation, not obligated to annex nor precluded from, and is a matter of discretion.

Dennis Potter, city planner, reported that Planning and Zoning voted to annex Lot B, as they recognized that the property owner would have the right to protest it out if tried to annex all three lots, the council voted to annex all three lots.
After further discussion it was moved by Council Member Christensen to annex Lots A, B and C as previously adopted. Council Member Kerian seconded the motion.

Council Member Glassheim moved to amend the motion to delete annexation of Lot C, Council Member Kreun seconded the amendment. Upon roll call the following voted "aye": Council Members Glassheim, Kreun - 2; voting "nay": Council Members Hamerlik, Gershman, Christensen, Kerian, Brooks - 5. Mayor Brown declared the motion failed.

Upon call for the question on the original motion and adoption of the ordinance, and 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 motion carried and the ordinance adopted.

CLOSE PUBLIC COMMENT PERIOD, HOLD PUBLIC

HEARING ON AMENDMENT TO 2003 COMMUNITY

DEVELOPMENT BLOCK GRANT PROGRAM

The staff report from the Urban Development Office relating to amendment to the 2003 Community Development Block Grand Program, with recommendation to hold public hearing and approving amendment to the 2003 CDBG Program (amendment would cancel the special economic development project from the 2003 Annual Action Plan and deobligate the $400,000 for that project and require an obligation of those funds to another project or projects - leaving a total of $302,568 to re-obligate).

Mayor Brown stated they were closing the public comment period and opened the public hearing. There were no comments and closed the public hearing.

It was moved by Council Member Kerian and seconded by Council Member Kreun to approve the amendment to the 2003 Community Development Block Grant Program. Carried 7 votes affirmative.

HOLD PUBLIC HEARING AND APPROVE APPLICATION
FOR MOVING PERMIT TO MOVE BUILDING FROM 1508
LEWIS BLVD. TO 1628 LEWIS BLVD.

The city auditor reported that the notice of public hearing on the application by the City of Grand Forks to move a building from 1508 Lewis Blvd. to 1628 Lewis Blvd 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. There were none.

The staff report from Inspections Division relating to public hearing for moving permit application to move single-family home to be used as a single-family home from 1508 Lewis Blvd. to 1628 Lewis Blvd., with recommendation to approve the moving permit to move the single-family home.

It was moved by Council Member Gershman and seconded by Council Member Hamerlik that this recommendation be approved, and that the City is authorized to move the building subject to any conditions established. Carried 7 votes affirmative.

HOLD PUBLIC HEARING AND APPROVE APPLICATION
FOR MOVING PERMIT TO MOVE BUILDING FROM 1502
LEWIS BLVD. TO 28 CONKLIN AVENUE

The city auditor reported that the notice of public hearing on the application by the City of Grand Forks to move a building from 1502 Lewis Blvd. to 28 Conklin Avenue 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. There were none.

The staff report from Inspections Division relating to public hearing for moving permit application to move single-family home to be used as a single-family home from 1502 Lewis Blvd. to 28 Conklin Avenue, with recommendation to approve the moving permit to move the single-family home.

It was moved by Council Member Gershman and seconded by Council Member Hamerlik that this recommendation be approved, and that the City is authorized to move the building subject to any conditions established. Carried 7 votes affirmative.

HOLD PUBLIC HEARING AND APPROVE APPLICATION
FOR MOVING PERMIT TO MOVE BUILDING FROM 1412
LEWIS BLVD. TO 1702 LEWIS BLVD.

The city auditor reported that the notice of public hearing on the application by the City of Grand Forks to move a building from 1412 Lewis Blvd. to 1702 Lewis Blvd 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. There were none.

The staff report from Inspections Division relating to public hearing for moving permit application to move single-family home to be used as a single-family home from 1412 Lewis Blvd. to 1702 Lewis Blvd., with recommendation to approve the moving permit to move the single-family home.

It was moved by Council Member Gershman and seconded by Council Member Hamerlik that this recommendation be approved, and that the City is authorized to move the building subject to any conditions established. Carried 7 votes affirmative.

DTERMINE INSUFFICIENCY OF PROTEST ON STREET
IMPROVEMENT DISTRICT NO. 91, PROJECT NO. 5446

The city auditor reported that the period for filing protests on the resolution of necessity for the improvements in and for Street Improvement District No. 91, Project No. 5446, mill and overlay in 1800 and 1900 blocks of Cottonwood Street, had expired on May 22, 2003, and that he had received no written protests.

Mayor Brown called upon the audience to see if there was anyone present who had comments to make on this matter. There were none.
Council Member Gershman introduced the following resolution as to protests which was presented and read: Document No. 8299 - Resolution.

It was moved by Council Member Gershman and seconded by Council Member Kerian that we find and determine an insufficiency of protest against Street Improvement District No. 91, Project No. 5446, as no protests were filed, and further that the resolution be adopted. Carried 7 votes affirmative.

RECEIVE TABULATION OF BIFDS, ESTIMATE OF
TOTAL COST AND AWARD CONTRACT, STREET
IMPROVEMENT PROJECT NO. 5446, DISTRICT NO. 91

The city auditor presented and read tabulation of bids which had been received and opened on May 12, 2003 for Street Improvement Project No. 5446, District No. 91, mill and overlay in 1800 and 1900 blocks of Cottonwood Street, indicating that Nodak Contracting was the low bidder based upon their bid in the amount of $18,716.50: Document No. 8300 - Bid Tabulation.

The city engineer's estimate of total cost on Street Improvement Project No. 5446, District No. 91, in the amount of $21,150.00, was presented and read.

The staff report from the engineering department relating to bids for Project No. 5446, District No. 91, mill and overlay of 1800 and 1900 blocks of Cottonwood Street, with recommendation to award contract to Nodak Contracting in the amount of $18,716.50.

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

Council Member Gershman introduced the following resolution which was presented and read: Document no. 8301 - Resolution.

It was moved by Council Member Gershman and seconded by Council Member Kerian that this resolution awarding the contract for Street Improvement Project No. 5446, District No. 91, to Nodak Contracting 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 resolution adopted and the contract awarded.

APPROVE WASTEWATER AND WATER UTILITIES
COST OF SERVICE EVALUATIONS

The staff report from the Director of Public Works relating to wastewater and water utilities cost of services evaluations, with recommendation for approval of wastewater and water utilities cost of service evaluations and associated rate structures.

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

ADOPT RESOLUTION CREATING ASSESSMENT DISTRICT,
PAVING PROJECT NO. 5510, DISTRICT NO. 593
The staff report from the engineering department relating to creating special assessment district for Project No. 5510, District No. 593, Columbia Park 29th Resubdivision paving, Phase I, 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. 5510, District No. 593.

It was moved by Council Member Christensen and seconded by Council Member Kreun that this recommendation be approved, 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 Christensen introduced the following resolution creating the assessment district, which was presented and read: Document No. 8302 - Resolution.

It was moved by Council Member Christensen and seconded by Council Member Kreun 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, PAVING PROJECT
NO. 5510, DISTRICT NO. 593

The city auditor presented and read the engineer's report on Paving Project No. 5510, District No. 593: Document No. 8303 - Report.

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

ADOPT RESOLUTION OF NECESSITY, PAVING PROJECT
NO. 5510, DISTRICT NO. 593

Council Member Christensen introduced the following resolution of necessity, which was presented and read: Document No. 8304 - Resolution.

It was moved by Council Member Christensen and seconded by Council Member Kreun 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,
SEWER PROJECT NO. 5514, DISTRICT NO. 423

The staff report from the engineering department relating to creating special assessment district for Project No. 5514, District No. 423, sanitary sewer Promenade 1st Addition, 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. 5514, District No. 423.

It was moved by Council Member Christensen and seconded by Council Member Kreun that this recommendation be approved, 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 Christensen introduced the following resolution creating the assessment district, which was presented and read: Document No. 8305 - Resolution.

It was moved by Council Member Christensen and seconded by Council Member Kreun 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. 5514, DISTRICT NO. 423

The city auditor presented and read the engineer's report on Sewer Project No. 5514, District No. 423: Document No. 8306 - Report.

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

ADOPT RESOLUTION TO PREPARE PLANS AND

SPECIFICATIONS, SEWER PROJECT NO. 5514,

DISTRICT NO. 423

Council Member Christensen introduced the following resolution to prepare plans and specifications, which was presented and read: Document No. 8307- Resolution.

It was moved by Council Member Christensen and seconded by Council Member Kreun 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. 5515, DISTRICT NO. 278

The staff report from the engineering department relating to creating special assessment district for Project No. 5515, District No. 278, watermain in Promenade 1st Addition, 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. 5515, District No. 278.

It was moved by Council Member Christensen and seconded by Council Member Kreun that this recommendation be approved, 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 Christensen introduced the following resolution creating the assessment district, which was presented and read: Document No. 8308 - Resolution.

It was moved by Council Member Christensen and seconded by Council Member Kreun 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. 5515, DISTRICT NO. 278

The city auditor presented and read the engineer's report on Watermain Project No. 5515, District No. 278: Document No. 8309 - Report.

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

ADOPT RESOLUTION TO PREPARE PLANS AND
SPECIFICATIONS, WATERMAIN PROJECT NO. 5515,
DISTRICT NO. 278

Council Member Christensen introduced the following resolution to prepare plans and specifications, which was presented and read: Document No. 8310 - Resolution.

It was moved by Council Member Christensen and seconded by Council Member Kreun 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,
SEWER PROJECT NO. 5516, DISTRICT NO. 424

The staff report from the engineering department relating to creating special assessment district for Project No. 5516, District No. 424, storm sewer in Promenade 1st Addition, 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. 5516, District No. 424.

It was moved by Council Member Christensen and seconded by Council Member Kreun that this recommendation be approved, 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 Christensen introduced the following resolution creating the assessment district, which was presented and read: Document No. 8311 - Resolution.

It was moved by Council Member Christensen and seconded by Council Member Kreun 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. 5516, DISTRICT NO. 424

The city auditor resented and read the engineer's report for Sewer Project No. 5516, District No. 424: Document No. 8312 - Report.

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

APPROVE RESOLUTION TO PREPARE PLANS AND
SPECIFICATIONS, SEWER PROJECT NO. 5516, DISTRICT
NO. 424

Council Member Christensen introduced the following resolution to prepare plans and specifications, which was presented and read: Document No. 8313 - Resolution.

It was moved by Council Member Christensen and seconded by Council Member Kreun that this recommendation 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. 5530, DISTRICT NO. 594

The staff report from the engineering department relating to creating special assessment district for Project No. 5530, District No. 594, Southbrook area paving, 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. 5530, District No. 594.

It was moved by Council Member Christensen and seconded by Council Member Kreun that this recommendation be approved, 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 Christensen introduced the following resolution creating the assessment district, which was presented and read: Document No. 8314 - Resolution.

It was moved by Council Member Christensen and seconded by Council Member Kreun 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, PAVING PROJECT
NO. 5530, DISTRICT NO. 594
The city auditor presented and read the engineer's report on Paving Project 5530, District No. 594: Document No. 8315 - Report.

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

ADOPT RESOLUTION OF NECESSITY, PAVING PROJECT
NO. 5530, DISTRICT NO. 594

Council Member Christensen introduced the following resolution of necessity, which was presented and read: Document No. 8316 - Resolution.

It was moved by Council Member Christensen and seconded by Council Member Kreun 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 resolution adopted.

ADOPT RESOLUTION CREATING ASSESSMENT DISTRICT,
PAVING PROJECT NO. 5517, DISTRICT NO. 592

The staff report from the engineering department relating to creating special assessment district for Project No. 5517, District No. 592, paving in Promenade 1st Addition, 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. 5517, District No. 592.

It was moved by Council Member Christensen and seconded by Council Member Kreun that this recommendation be approved, 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 Christensen introduced the following resolution creating the assessment district, which was presented and read: Document No. 8317 - Resolution.

It was moved by Council Member Christensen and seconded by Council Member Kreun 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, PAVING PROJECT
NO. 5517, DISTRICT NO. 592

The city auditor presented and read the engineer's report on Paving Project No. 5517, District No. 592: Document No. 8318 - Report.

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

ADOPT RESOLUTION OF NECESSITY, PAVING PROJECT
NO. 5517, DISTRICT NO. 592

Council Member Christensen introduced the following resolution of necessity, which was presented and read: Document No. 8319 - Resolution.

It was moved by Council Member Christensen and seconded by Council Member Kreun 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. 5493, DISTRICT NO. 595

The staff report from the engineering department relating to creating special assessment district for Project No. 5493, District No. 595, paving in Deacon Gardens, 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. 5493, District No. 595.

It was moved by Council Member Christensen and seconded by Council Member Kreun that this recommendation be approved, 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 Christensen introduced the following resolution creating the assessment district, which was presented and read: Document No. 8320 - Resolution.

It was moved by Council Member Christensen and seconded by Council Member Kreun 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, PAVING PROJECT
NO. 5493, DISTRICT NO. 595

The city auditor presented and read the engineer's report on Paving Project No. 5493, District No. 595: Document No. 8321 - Report.

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

ADOPT RESOLUTION OF ECESSITY, PAVING PROJECT
NO. 5493, DISTRICT NO. 595

Council Member Christensen introduced the following resolution of necessity, which was presented and read: Document No. 8322 - Resolution.

It was moved by Council Member Christensen and seconded by Council Member Kreun 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 APPROVING PLANS AND
SPECIFICATIONS AND ADVERTISEMENT FOR BIDS,
SEWER PROJECT NO. 5507, DISTRICT NO. 419

The city engineer's estimate of total cost of the construction of sanitary sewer in Columbia Park 29th Resubdivision (Pembrooke area - Haleigh Drive and Mulberry Drive), in the amount of $137,644.50, was presented and read.

The staff report relating to plans and specifications for Project No. 5507, District No. 419, Pembrooke area sanitary sewer, with recommendation to adopt resolution approving 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 Christensen and seconded by Council Member Kreun that this recommendation be approved. Carried 7 votes affirmative.

Council Member Christensen introduced the following resolution which was presented and read: Document No. 8323 - Resolution.

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

ADOPT RESOLUTION APPROVING PLANS AND
SPECIFICATIONS AND ADVERTISEMENT FOR BIDS,
WATERMAIN PROJECT NO. 5508, DISTRICT NO. 276

The city engineer's estimate of total cost of the construction of watermain in Columbia Park 29th Resubdivision (Pembrooke area - Haleigh Drive and Mulberry Drive), in the amount of $106,202.25, was presented and read.

The staff report relating to plans and specifications for Project No. 5508, District No. 276, Pembrooke area watermain, with recommendation to adopt resolution approving 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 Christensen and seconded by Council Member Kreun that this recommendation be approved. Carried 7 votes affirmative.

Council Member Christensen introduced the following resolution which was presented and read: Document No. 8324 - Resolution.

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

ADOPT RESOLUTION APPROVING PLANS AND
SPECIFICATIONS AND ADVERTISEMENT FOR BIDS,
SEWER PROJECT NO. 5509, DISTRICT NO. 420

The city engineer's estimate of total cost of the construction of storm sewer in Columbia Park 29th Resubdivision (Pembrooke area - Haleigh Drive and Mulberry Drive), in the amount of $176.673.00, was presented and read.

The staff report relating to plans and specifications for Project No. 5509, District No. 420, Pembrooke area storm sewer, with recommendation to adopt resolution approving 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 Christensen and seconded by Council Member Kreun that this recommendation be approved. Carried 7 votes affirmative.

Council Member Christensen introduced the following resolution which was presented and read: Document No. 8325 - Resolution.

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

APPROVE REVISED ENGINEER'S REPORT AND ADOPT

RESOLUTION APPROVING PLANS AND SPECIFICATIONS

AND ADVERTISEMENT FOR BIDS, SEWER PROJECT NO.

5527, DISTRICT NO. 421

The city engineer's estimate of total cost of the construction of sanitary sewer in Southbrook 1st Addition as follows: Curran Court from 47th Avenue South to Lot 30, Block 3 and 48th Avenue South from Curran Court east to South Washington Street, in the amount of $276,580.50, was presented and read.

The staff report relating to revised engineer's report and assessment district map, and plans and specifications for Project No. 5527, District No. 421, with recommendation to approve revised engineer's report and assessment district map, and approve plans and specifications for construction of Project No. 5527, District No. 421 and further that the city auditor be directed to advertise for bids on the project.

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

Council Member Christensen introduced the revised engineer's report and the resolution approving plans and specifications which were presented and read: Document Nos. 8326 and 8327 - Report and Resolution.

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

APPROVE REVISED ENGINEER'S REPORT; ADOPT RESOLUTION

APPROVING PLANS AND SPECIFICATIONS AND ADVERTISEMENT

FOR BIDS, WATERMAIN PROJECT NO. 5528, DISTRICT NO. 277

The city engineer's estimate of total cost of the construction of watermain in Southbrook 1st Addition as follows: Curran Court from 47th Avenue South to Lot 30, Block 3 and 48th Avenue South from Curran Court east to South Washington Street, in the amount of $83,517.00, was presented and read.

The staff report relating to revised engineer's report and assessment district map, and plans and specifications for Project No. 5528, District No. 277, with recommendation to approve revised engineer's report and assessment district map, and approve plans and specifications for construction of Project No. 5528, District No. 277 and further that the city auditor be directed to advertise for bids on the project.

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

Council Member Christensen introduced the revised engineer's report and the resolution approving plans and specifications which were presented and read: Document Nos. 8328 and 8329 - Report and Resolution.

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

APPROVE REVISED ENGINEER'S REPORT AND ADOPT

RESOLUTION APPROVING PLANS AND SPECIFICATIONS

AND ADVERTISEMENT FOR BIDS, SEWER PROJECT

NO. 5529, DISTRICT NO. 422

The city engineer's estimate of total cost of the construction of storm sewer in Southbrook 1st Addition as follows: Curran Court from 47th Avenue South to Lot 30, Block 3 and 48th Avenue South from Curran Court east approx. 350 feet, in the amount of $95,193.00, was presented and read.

The staff report relating to revised engineer's report and assessment district map, and plans and specifications for Project No. 5529, District No. 422, Southbrook area storm sewer, with recommendation to approve revised engineer's report and assessment district map, and approve plans and specifications for construction of Project No. 5529, District No. 422 and further that the city auditor be directed to advertise for bids on the project.

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

Council Member Christensen introduced the revised engineer's report and the resolution approving plans and specifications which were presented and read: Document Nos. 8330 and 8331 - Report and Resolution.

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

ADOPT RESOLUTION APPROVING PLANS AND
` SPECIFICATIONS AND ADVERTISEMENT FOR BIDS,
PROJECT NO. 5489, PAVING DISTRICT NO. 591
The city engineer's estimate of total cost of the construction of paving on South 34th Street and Ruemmele Road in the amount of $306,614.44, was presented and read.

The staff report from the engineering department relating to plans and specifications for Project No. 5489, District No. 591, paving South 34th Street from 36th Avenue South to Ruemmele Road and Ruemmele Road from South 34th Street to 40th Avenue South, with recommendation to approve 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 Christensen and seconded by Council Member Kreun that this recommendation be approved. Carried 7 votes affirmative.

Council Member Christensen introduced the following resolution which was resented and read: Document No. 8332 - Resolution.

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

APPROVE AWARD OF CONTRACT FOR PROJECT NO.
4948.5, RESIDUAL STORAGE PONDS

The staff report from the engineering department relating to consideration of bids for Project No. 4948.5, Residuals Storage Ponds, with recommendation to approve award of the contract to Gowan Construction, Inc. in the amount of $776,522.17, contingent upon approval by the North Dakota Department of Health.

It was moved by Council Member Christensen and seconded by Council Member Kreun 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 to Gowan Construction, Inc

APPROVE AMENDMENT TO COST PARTICIPATION
AND MAINTENANCE AGREEMENT FOR PROJECT NO.

5378, OVERLAY AND RECONSTRUCTION OF US 81

FROM GATEWAY TO I-29

The staff report relating to amendment to Cost Participation and Maintenance Agreement for overlay and reconstruction of US 81 from Gateway Drive to I-29, Project No. 5378, with recommendation to approve the amendment to the Cost Participation and Maintenance Agreement with the North Dakota Department of Transportation to an additional estimated City cost of $31,060 and to increase the City's revised estimated cost share for this project to $107,014.72.

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

APPROVE REQUEST FOR DEFERRAL OF FLOOD RENTAL
REHAB LOAN PAYMENTS
The staff report from the Office of Urban Development relating to request from Metro Plains Properties, Inc. for deferment of flood rental rehab loan payments, with recommendation to approve request for 12-month deferral of rental rehab payments until April 1, 2004, contingent upon recipient agreement to become current with quarterly payments on that date.

It was moved by Council Member Christensen and seconded by Council Member Kreun 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.

DECLARE SPECIFIC PROPERTIES AS SURPLUS AND
AUTHORIZE STAFF TO PROCEED WITH SALE

The staff report from the Office of Urban Development relating to surplus real property, with recommendation to declare the following properties surplus and authorize staff to proceed with their sale according to established policies and procedures (102 Walnut Street, 421 Walnut Street and 825 4th Avenue South along with several unaddressed lot fragments).

It was moved by Council Member Christensen and seconded by Council Member Kreun 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.

INTRODUCE ORDINANCE TO AMEND ZONING MAP TO
INCLUDE LOTS A AND B, BLOCK 1 OF REPLAT OF LOT 2,

BLOCK 1, FLAAT-MIKKELSON ADDITION WITHIN WASHINGTON

ESTATES PUD (PLANNED UNIT DEVELOPMENT) CONCEPT

DEVELOPMENT PLAN, AMENDMENT NO. 2

The staff report from the Planning and Zoning Commission relating to the request from John Staley on behalf of the Grand Forks Park Board for preliminary approval of an ordinance to amend the Zoning Map to rezone and exclude Lots A and B, Block 1 of the Replat of Lot 2, Block 1, Flaat-Mikkelson Addition from the Washington Estates PUD (Planned Unit Development), Concept Development Plan, Amendment No. 1, and include within Washington Estates PUD (Planned Unit Development) Concept Development Plan, Amendment No. 2 (located at 3900 South 11th Street), with recommendation to give preliminary approval to the ordinance to amend the zoning map and set a public hearing for June 16, 2003.

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

Council Member Gershman introduced an ordinance entitled "An ordinance to amend the Zoning Map of the city of Grand Forks, North Dakota, to rezone and exclude Lots A and B, Block 1 of the Replat of Lot 2, Block 1, Flaat-Mikkelson Addition from Washington Estates PUD (Planned Unit Development), Concept Development Plan, Amendment No. 1 and to include within the Washington Estates PUD (Planned Unit Development), Concept Development Plan, Amendment No 2, Grand Forks, North Dakota", which was presented, read and passed on its first reading.

APPROVE PRLEIMINARY PLAT; INTRODUCE ORDINANCE

TO AMEND STREET AND HIGHWAY PLAN TO INCLUDE

PUBLIC R/W SHOWN AS DEDICATED ON THE PLAT OF

SERVICE 5TH SUBDIVISION

The staff report from the Planning and Zoning Commission relating to the request from Pribula Engineering on behalf of John Campbell for preliminary approval of plat of Service 5th Subdivision to the city of Grand Forks, North Dakota (located at North 32nd Street and 26th Avenue North), with recommendation to give preliminary approval to the play, subject to the conditions shown on or attached to the review copy, give preliminary approval to an ordinance amending the Street and Highway Plan, and set a public hearing for June 16, 2003.

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

Council Member Gershman introduced an ordinance entitled "An ordinance to amend the Street and Highway Plan of the city of Grand Forks, North Dakota, to include the public rights of way shown as dedicated on the plat of Service 5th Subdivision, Grand Forks, North Dakota", which was presented, read and passed on its first reading.

APPROVE PRELIMINARY PLAT OF REPLAT OF BLOCK
1, HANSEN'S ADDITION

The staff report from the Planning and Zoning Commission relating to the request from Widseth Smith & Nolting on behalf of James Hansen for preliminary approval of the Replat of Block 1, Hansen's Addition to the city of Grand Forks (located at 13th Avenue North and Stanford Road), with recommendation to give preliminary approval to the plat, subject to the conditions shown on or attached to the review copy.

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

INTRODUCE ORDINANCE AMENDING ZONING MAP
TO INCLUDE BLOCK 2, LOTS 2 THROUGH 5, HANSEN'S
ADDITION WITHIN R-4 (MULTIPLE FAMILY RESIDENCE,
HIGH DENSITY) DISTRICT

The staff report from the Planning and Zoning Commission relating to the request from ICON Architectural Group and Cowger Construction on behalf of James Hansen for approval of an ordinance to amend the Zoning Map and to rezone from B-3 (General Business) District and include within the R-4 (Multiple Family Residence, High Density) District Lots 1 through 5, Block 2 of the Replat of Block 1, Hansen's Addition (located at 13th Avenue North and Stanford Road), with recommendation to give preliminary approval to the ordinance and schedule a public hearing for June 16, 2003.

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

Council Member Gershman introduced an ordinance entitled "An ordinance to amend the Zoning Map of the city of Grand Forks, North Dakota, to rezone and exclude from the B-3 (General Business) District and to include within the R-4 (Multiple Family Residence, High Density) District, Block 2, Lots 2 through 5, Hansen's Addition, city of Grand Forks, North Dakota", which was presented, read and passed on its first reading.

APPROVE PRELIMINARY PLAT OF PERKINS EIGHTH
RESUBDIVISION

The staff report from the Planning and Zoning Commission relating to the request from Jerry Pribula on behalf of Dave Parker for preliminary approval of a plat of Perkins Eighth Resubdivision, being a replat of Lots V, W, X, Y, Z, AA, BB, CC, DD, and EE, Block 1 of the Replat of Lots 2 and 3, Block 1, Perkins Fifth Addition and a Replat of Lots 4 and 5, Block 1 of Perkins Sixth Addition to the city of Grand Forks, ND (located at 40th Avenue South and Columbia Road), with recommendation to give preliminary approval to the plat, subject to the conditions shown on or attached to the review copy.

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

INTRODUCE ORDINANCE TO AMEND ZONING MAP TO
INCLUDE WITHIN PERKINS THIRD PUD (PLANNED UNIT
DEVELOPMENT), CONCEPT DEVELOPMENT PLAN, AMEND-

MENT NO. 2, ALL OF PERKINS EIGHTH RESUBDIVISION

The staff report from the Planning and Zoning Commission relating to the request from Dan Stauss on behalf of David Parker for preliminary approval of an ordinance to amend the Zoning Map to exclude from Perkins Third PUD (Planned Unit Development), Concept Development Plan, Amendment No.1, Lots V, W, X, Z, AA, BB, CC, and EE, Block 1, Perkins Fifth Addition and Lots 4 and 5, Block 1, Perkins Sixth Addition) and to include in Perkins Third PUD (Planned Unit Development) Concept Development Plan, Amendment No. 2, all of Perkins 8th Resubdivision to the city of Grand Forks (located in the 3900 block of 40th Avenue South), with recommendation to give preliminary approval of the ordinance and Planned Unit Development, Concept Development Plan, subject to the conditions shown on or attached to the review copy and schedule a public hearing for June 16, 2003.

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

Council Member Gershman introduced an ordinance entitled "An ordinance to amend the Zoning Map of the city of Grand Forks, North Dakota, to rezone and exclude from the Perkins Third PUD (Planned Unit Development, Concept Development Plan, Amendment No. 1, and to include within the Perkins Third PUD (Planned Unit Development), Concept Development Plan, Amendment No. 2, all of Perkins Eighth Resubdivision to the city of Grand Forks, North Dakota", which was resented, read and passed on its first reading.

AUTHORIZE ENTERING INTO LEASE AGREEMENT WITH
CANAD INNS FOR CONSTRUCTION AND OPERATON OF
HOTEL ADJACENT TO ALERUS CENTER, SUBJECT TO
CONDITIONS

The staff report from the Mayor's Office relating to Canad Hotel agreement, with recommendation subject to the approval of the city attorney and a showing of financial capacity by Canad Inns, authorize appropriate City officials to enter into a lease agreement with Canad Inns for the construction and operation of a hotel adjacent to the Alerus Center.

Rick Duquette, administrative coordinator, reported the lease had been brought to the committee of the whole for discussion and at that time the council directed staff to bring to the May 27 special city council meeting but were not prepared and committee met again last Friday and reviewed the documents and concluded lease and asked Mr. Swanson to work through the areas.

Howard Swanson, city attorney, reviewed the terms of the proposed lease agreement with Canad Hotel as outlined in his June 2, 2003 Memorandum.

Mr. Swanson stated with respect to a marketing agreement, which provides that the City will contribute for a period of five years funds for the express purpose of marketing the Alerus Center, the hotel, the city of Grand Forks and related facilities, that in year 1 and year 2 the City would be contributing the sum of $300,000 as marketing, in year 3 it would be reduced to $200,000, in year 4 reduced to $150,000 and in year 5 reduced to $100,000. The marketing agreement does not have a commitment beyond year 5 at which point it would be subject to renegotiation between the parties. The marketing agreement contemplates the use of gaming funds with the Convention and Visitors Bureau and any proposed marketing plan is to be reviewed and presented not only to the Convention and Visitors Bureau but also to the Grand Forks Events Center Commission, that needs to occur prior to the month of March on an annual basis, and agreement contemplates that marketing would occur in advance of the actual opening of the hotel. He also noted there were five items that were additionally negotiated since the last time it was on the agenda and all five of those matters of negotiation were resolved with benefit toward the City with some compromise on the exclusivity agreement and some compromise on the marketing agreement.

Council Member Kerian asked if there was anything that prevents the Alerus from serving food concessions. Mr. Swanson stated there is nothing in any of the documents that addresses kitchen use or restricts kitchen use.

Council Member Hamerlik stated there is nothing in the document that has to do with the Alerus Commission, nothing has to do with food or use of rooms, that was brought up by the Alerus Commission and several members of the council, and anything in the future that would be discussed relative to the use, rent, exclusivity of food, and anything would be on separate agreement with Canad and be discussed with the Commission, that is silent at this time.

Council Member Gershman questioned second phase. Lonnie Laffen, architect, stated the hotel has not been designed yet but that the first phase would be a 10 to 11 story tower, and second phase would be an additional tower of similar size. He estimated the cost of the link between the Alerus and the hotel to be more in the range of $4,000 to $25,000.

Mr. Laffen stated he would guess the cost of the link between the Alerus and the hotel would be more in the range of $4,000 to $25,000. Mr. Bjerke stated he heard no discussion of a taxpayer's subsidized hotel being attached to the Alerus as a requirement to make it go, and that is what he was being specific about.

Mr. Swanson stated relating to taxes, that no one has calculated that but is determined by State law as a leasehold interest and would be calculated in the manner of any other leasehold interest rate as calculated for commercial property. Mr. Duquette stated that Mr. Carsen has done some very preliminary work with some of the basic footprints/drawings and upwards of $350,000 to 400,000 per year, including parking, plus special assessments.

Terry Bjerke, 5356 5th Avenue North, stated in the future it would be nice to have some type of fiscal note, and when finished, what is the City going to pay out and have it upfront. He noted the various income figures of approx. $160,000 (one-quarter of $400,000 of property taxes and additional income stated by the city auditor of $60,000 for sales tax and room tax - plus revenue for naming, signs, etc. He stated expenses: land for hotel, parking, paving, marketing, utilities, cost of connection/link, Alerus suite, and rounded off at about $1.8 million and that is what the taxpayers are paying for this deal and at revenue of $160,000/year it will be over 10 years before you break even. He also noted that he hadn't heard any discussion of a taxpayer's subsidized hotel being attached to the Alerus as a requirement to make it go and was frequent visitor to the meetings, asked if they know where the funding source is for the marketing money. The city auditor stated that they have designated part of the 2163, economic development money as tourism, and some funding from gaming to offset part of attention of the marketing.

Council Member Christensen stated that to have people come in willing to put $15 million up and not unreasonable for us to risk what we have already got in place and to advance $800,000 of land and little bit of infrastructure and to commit to $300,000 for two years for marketing, we have agreed to advance up to $300,000 assuming there is no money but in the second year when this gets open, and have agreed to put all of their gaming revenue profits into CVB and CVB is a 501C3 organization and use that money to market the community. He stated he has been involved in the negotiation process, there have been hard discussions with the negotiators on this side as to what we will or won't give, etc. prepared to vote in favor of this, because time to do what we can to launch the facility.

Council Member Brooks asked that the land that the hotel is going to be located on, if that was part of the original purchase and if financed through the Alerus; and if the Alerus Enterprise Fund is paying and if a burden for the Alerus Fund. The city auditor stated that will not be a burden on the Alerus operating fund, those proceeds came from the bond issue, council has complete authority over that land and are giving that land to this facility but it will not affect the operating side of the budget; he also stated the area of parking, that when the City made the purchase of the lots in front of the facility, talked about paving those from the same source that they purchased the lots from and that was a loan - borrowing the money from the funds in the Water Utility Fund and pay those back from the proceeds and the sales tax that is coming in to pay the debt on the facility. Council Member Brooks stated that the land for the parking lots that were just purchased was paid by the Alerus out of their debt service fund and they in turn should be paid for this land and that would be appropriate.

Council Member Glassheim asked if on the marketing agreement if we are clear that the marketing money will not be used simply to market the hotel; Mr. Duquette stated that the marketing plan will be constructed by Canad, CVB and the Alerus Commission working together to figure out how best to use those monies. Mr. Glassheim stated there is nothing that discusses an aquatics park, that there would be no aquatics park without a vote of the people but that the council is not committing in this agreement to any aquatics park; Mr. Duquette stated that was correct.

It was moved by Council Member Christensen and seconded by Council Member Kreun to approve the lease agreement with Canad Inns,

Mr. Swanson asked if the mover and second would consider it a friendly amendment in addition to the motion to approve, that you authorize the proper City officials to execute the lease and the corollary agreements consistent with the terms outlined tonight. The mover and second agreed with the caveat that the marketing agreement should come back to the committee for review before it is executed, as that was given a skeletal framework on Friday and would like to review it to see that it comports with their understanding of what they agreed to.

Upon call for the question and 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 motion carried.

Mayor Brown thanked the city council members for their support, especially those who served on the hotel negotiating committee (Council Members Kreun, Hamerlik and Christensen) and it was their commitment to do this right that made this achievement possible. He thanked David Evenson and Brian Conneran for their help, and also recognized hard work of Howard Swanson and Rick Duquette and now have great new partnership to show for it. and congratulated and welcomed our newest partners and local business owners, Canad Inn.

APPROVE DEFINED CONTRIBUTION PLAN MANAGER

The staff report from the director of finance and administrative services relating to Defined Contribution Plan manager, with recommendation to approve a contract with Alerus Financial for a term of three years, renewable annually thereafter as agreed upon by both parties.

Council Member Gershman asked to recuse himself from voting on this issue. It was so moved by Council Member Brooks and seconded by Council Member Christensen. Carried 6 votes affirmative.

It was moved by Council Member Kerian and seconded by Council Member Kreun that this recommendation be approved. Carried 6 votes affirmative; Council Member Gershman abstaining.

APPROVE PLANS AND SPECIFICATIONS FOR

PROJECT NO. 5467 AND PROJECT NO. 5326 AND

BIKE/PEDESTRIAN PATH

The staff report from the engineering department relating to plans and specifications for Project No. 5467, paving 34th Avenue South east of Belmont Road, and Project No. 5316, paving East Elmwood Drive from 32nd Avenue South to Elmwood Avenue and bike/pedestrian path on 32nd Avenue South from Belmont road to Greenway Access on Elmwood Drive, with recommendation to approve plans and specifications for Project No. 5467, paving 34th Avenue South, and Project No. 5326, paving and bike/pedestrian path on East Elmwood Drive.

It was moved by Council Member Christensen stated that after discussion at last week's meeting he had met with Mr. Walker and Mr. Grasser and they pointed out the traffic patterns that they thought would be emerging and where it wouldn't be prudent to put the bikepath in back and that he agrees with that, and moved that we approve the bikepath along the southerly edge of 32nd Avenue on the city easement, with the exception that it be 6 ft. wide rather than 8 ft. wide. He stated he was doing that because the sidewalks will be leading into our 5 ft. wide and will be a little deviation but the sidewalk configuration will be consistent throughout. Council Member Hamerlik seconded the motion.

Pat McGuire, 109 32nd Avenue South, expressed concern for the bike access path, they have a 160 ft. lot that has large evergreens on the southeast and southwest corners of the lot, and agreed with reducing the path to 6 ft. but will still invade those trees and cut some of them down and berm trees ; and the thing that concerns them the most is the fact that the level that the path will go through the property is back 10 ft. from the street in the middle of the driveway and bring the bikepath within 18 ft. of their bedroom windows and ruins the aesthetics of their property. He also stated liability factor - that with sidewalk, property owner has liability factor and this increases the liability; and asked why not come off the bikepath at Spruce Court onto the street for 160 ft. and asked council to consider that.

Mark Walker, asst. city engineer, stated he doesn't believe that trees will have to be affected, one relatively close and may have to trim back some of the branches, that he will speak to the city forester re. proper trimming techniques of those trees but doesn't believe that the trimming would be so abrupt that they would have to take the tree down; and will work with Mr. McGuire about possibility of relocating some of the berm trees into his yard if he wishes to maintain those trees, and wouldn't be significant cost and project could assume the costs. He stated relative to putting the traffic in the streets engineering's recommendation to put in sidewalk or bikepath in safer, that if go to a 6 ft. width wouldn't assign as a bike route but as extra wide sidewalk.

COUNCIL MEMBER GERSHMAN EXCUSED

Mr. Swanson stated the City has a Code which restricts what type of zone you can have bicycles on the sidewalk, as a practical matter the residential area is not a problem, that re. liability issue it is to your advantage to have it designated as a bikeway, that a bikeway by law is characterized as recreational facility which has specific immunity if it is on private property or public property whereas the sidewalk does not have that immunity. He stated whatever liability you would have with respect to a sidewalk is only with regard to your maintenance of a sidewalk, that this is not a privately maintained bikepath in which case you would have no liability from maintenance of the bikepath.

Council Member Christensen called for the question, seconded by Council Member Hamerlik. Carried 6 votes affirmative.

Upon call for the question and upon voice vote, the motion carried 6 votes affirmative.

COUNCIL MEMBER GERSHMAN REPORTED BACK

ADOPT NEW TRUNK INFRASTRUCTURE FUNDING
POLICY ANDDRAFT SELECTION PROCESS

The staff report from the engineering department relating to trunk infrastructure for sanitary sewer and water, with recommendation to adopt the new trunk infrastructure funding policy and draft selection process.

Council Member Christensen stated this is beginning of a change in policy as far as trunk line infrastructure in this community and have developed a funding source with the rate study that council will be approving.

It was moved by Council Member Kreun and seconded by Council Member Kerian that this recommendation be approved. Carried 6 votes affirmative; Council Member Glassheim voted against the motion.

APPROVE PROJECT CONCEPT REPORT FOR PROJECT
NO. 5347, GATEWAY-COLUMBIA ROAD

The staff report from the engineering department relating to Project Concept Report for Project No. 5347, Gateway-Columbia Road, with recommendation to approve Project Concept Report, utilizing the no build options at this time with additional comments as noted.
Council Member Gershman asked to recuse himself from voting on this issue. It was so moved by Council Member Brooks and seconded by Council Member Christensen. Carried 6 votes affirmative.

It was moved by Council Member Hamerlik and seconded by Council Member Kreun that this recommendation be approved. Carried 6 votes affirmative; Council Member Gershman recused.

TABLE URBAN AND REGIONAL PROGRAM PROJECT
REQUEST TO NORTH DAKOTA DEPARTMENT OF
TRANSPORTATION

The staff report from the engineering department relating to Urban and Regional Program Project request to NDDot, with recommendation to approved federal aid projects for construction years 2004 to 2006.

Mr. Grasser stated they have had some contact with the North Dakota Department of Transportation and would like to table this for several weeks until they can adjust their new table.

It was moved by Council Member Hamerlik and seconded by Council Member Gershman to table this issue until appropriate time according to the engineer. Carried 7 votes affirmative.

APPROVE VACATION OF SIDEWALK EASEMENT

AND SET PUBLIC HEARING FOR JULY 7, 2003

The staff report from the Planning and Zoning Commission relating to petition from Country Development LLP for approval to vacate the sidewalk easement (utility easement to be retained) only lying with Lots 7 and 8, Block 2 of Country View First Resubdivision, Grand Forks, ND (located between 38 and 44 Desiree Drive), with recommendation to deny the request.

Council Member Christensen asked to be recused from voting on this item. It was so moved by Council Member Kreun and seconded by Council Member Hamerlik. Carried 6 votes affirmative.

It was moved by Council Member Hamerlik and seconded by Council Member Brooks to approve the recommendation of the Planning and Zoning Commission and to recommend denial of the request.

Council Member Glassheim stated we have spaces on very long blocks and has tried to defend public spaces and making sidewalks where they are supposed to be, nobody likes them close to their living space but if didn't have this would have to have street dedications, would have to cross streets and this allows both bicyclists and walkers to access from one place to another. Council Member Kreun stated normally want to protect them and have access to easements but in this instance, there is no sidewalk on Desiree Drive and behind that is the drainway, and all the walk traffic is still going to have to go towards Belmont, whether you cross through those two lots or not.

Upon call for the question and upon roll call vote the following voted "aye": Council Members Glassheim, Kerian, Hamerlik - 3; voting "nay": Council Members Gershman, Kreun, Brooks - 3. Council Member Christensen recused from voting. Mayor Brown voted to break the tie vote, voted against the motion and the motion failed.

It was moved by Council Member Kreun and seconded by Council Member Gershman to approve vacation of the sidewalk easement only lying within Lots 7 and 8, Block 2, Country View First Resubdivision (located between 38 and 44 Desiree Drive, that notice of public hearing be published as required, and that the sidewalk be removed by Country Development, LLP at their expense. Carried 4 votes affirmative, Council Members Hamerlik and Glassheim voting against the motion.

RECEIVE AND FILE SOUTH 48TH STREET STUDY
REPORT

The staff report from the Grand Forks-East Grand Forks Metropolitan Planning Organization relating to the South 48th Street Study Report, with recommendation to approve the South 48th Street Report.

Council Member Kreun stated that the report is not complete at this time and moved to receive and file the report. Council Member Kerian seconded the motion. Carried 7 votes affirmative.

2003 ASSESSOR'S VALUES - INFORMATION

The informational item from the city assessor relating to 2003 assessor's values was presented and read. Council Member Glassheim called attention to what this report tells us is that in the last year there was $50 million of new construction, commercial and residential, and that about 50% of the additional increase in valuations has come from new construction and not from re-evaluating houses. He stated the $50 million seems to be a good sign.

APPROVE BILL LISTING AND ESTIMATE SUMMARIES

Vendor Payment No. 03-11, dated May 30, 2003, totaling $517,884.64, was presented and read. Estimate summaries totaling $2,885.50 for Flood Estimate and $1,182,619.42 for regular estimates were also presented and read. It was moved by Council Member Kreun and seconded by Council Member Brooks 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 MAY 19 AND MINUTES OF MAY 27,
2003
Typewritten copies of the minutes of the city council meetings held on Monday, May 19, 2003 and of the two special meetings of the city council held on Monday, May 27, 2003, were resented and read. It was moved by Council Member Brooks and seconded by Council Member Glassheim that these minutes be
approved. Carried 7 votes affirmative.

MAYOR AND COUNCIL COMMENTS

1) Council Member Brooks reported they had discussed setting up a Safety/Service Standby Committee re. the 911 Authority (PSAP), and asked if that meeting could be scheduled. He also noted the Mayor's visits to Larimore and Grafton and that first city should be East Grand Forks as need to build some communication lines with our immediate neighbor.

2) Council Member Kerian reported she had received calls that some people may want to speak at the council meeting but do not care to speak in front of TV or be on television, and if any objection to only giving name and address with TV off them. Several council members stated no problem with having people speak without being on TV, want to facilitate as much participation and make it as comfortable as possible. It was also suggested that people could write a letter of comment and have it read or if they wished to have someone else present their comments. It was noted that names and addresses would have to be entered into the public record.

3) Council Member Glassheim presented two items: that in walking across the DeMers bridge became concerned about bicycles, liability or being run over - there is a sign that says to walk your bike, if there is a plan or law would like that considered. Mr. Duquette stated that department heads would discuss that and come up with solution. It was also noted that the Greenway Group has been working on that with the Downtown Leadership Group and have several ideas. 2) would like to see something come forward on junked car ordinances. Mr. Swanson stated one ordinance dealt with junk has been drafted and is in Inspections but not brought forward; second with regard to parking (number of units parked on lots) and has given a draft to Inspections to review, some question has to how to define limitations of parking on the lot, and that still needs some work. Mr. Glassheim stated he would like to see it resolved soon.

4) Council Member Gershman asked for an update on Gateway Beautification Committee, and also notified that the city-owned empty lot next to Kelly's Bar on North3 rd Street needs to be cut.

ADJOURN

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

Respectfully submitted,

John M. Schmisek
City Auditor

Approved:
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Michael R. Brown, Mayor