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PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF GRAND FORKS, NORTH DAKOTA
January 20. 2004

The city council of the city of Grand Forks, North Dakota met in the council chambers in City Hall on Tuesday, January 20, 2004 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 commented on various events during the past week and upcoming events.
1) that he attended the 19th Annual Honor Band and Orchestra Choir Festival this weekend at the Chester Fritz, great with young talent in our state and congratulated everyone who made that a success.
2) this week had the Marketplace for Entrepreneurs, and was a great success and motivation builder, congratulations to Senator Conrad and Ag. Commissioner Johnson for bringing Marketplace to Grand Forks, and thanked those who helped make this a success.
3) Congratulations to Alex Reichert, who is going to be arguing before the Supreme Court tomorrow morning, that few experience an honor like this, and is demonstrating another of North Dakota's bright youth who have chosen to stay here.
4) Curt Eickhof presented award to Mayor Brown on behalf of Construction Engineers, general contractor, and Advanced Engineering, design consultants, on the raw water transmission project, that the award is given by the North Dakota Reddymix and Concrete Products Association for outstanding projects and their significant use of concrete, and on behalf of the Reddymix Association thanked the City and citizens of Grand Forks for sponsorship of this project. Mayor Brown thanked them and award will be displayed in City Hall.
5) that last night he and the city council were briefed on a plan by the Alerus Commission re. some of their current and future efforts, the planning and benchmarking will insure that we are being accountable to the taxpayers by planning and measuring how responsibly and efficiently the Alerus is operated, that he is excited about the point where the Alerus is right now and also about the future of that building; that we are paying less to operate the Alerus than the City was paying to operate the civic auditorium.. A short film was played showing construction and events at the Alerus.

ADOPT ORDINANCE NO. 4005, AMENDING SECTION 18-0211
R-4 MULTIPLE-FAMILY RESIDENCE , HIGH DENSITY.,
DISTRICT, TO ALLOW EXISTING NEIGHBORHOOD
CONVENIENCE GROCERY AND AUTOMOBILE SERVICE
BUSINESSES BY CONDITIONAL USE PERMIT, AND
AMENDING SECTIONS 18-0401 AND 18-0406, NON-C0N-
FORMING USES OF STRUCTURES OR OF STRUCTURES
AND PREMISES IN COMBINATION

An ordinance entitled "An ordinance amending the Grand Forks city Code of 1987, as amended; Chapter XVIII, Land Development Code; Article 2, Zoning; Section 18-0211 R-4 Multiple-Family Residence, High Density, District, Subsection 3 Conditional Uses to allow existing neighborhood convenience grocery and automobile service businesses by conditional use permit", which had been introduced and passed on its first reading on September 15, 2003, with public hearing continued until this evening, was presented and read for consideration on second reading and final passage.

Mayor Brown called for the public hearing; there were no comments and the public hearing was closed.

The staff report from the Planning and Zoning Commission relating to the request from the Planning Department for final approval of an ordinance amending the Grand Forks City Code of 1987, as amended, Chapter XVIII, Land Development Code; Article 2, Zoning; Section 18-0222 R-4 Multiple-Family Residence, High Density, District, Subsection 3, Conditional Uses (allowing existing neighborhood convenience grocery and automobile service businesses) and Article 4 Non-Conforming Uses, Section 18--0401 Statement of Intent, subsection 1 and subsection 18-0406 Non-Conforming Uses of Structures or of Structures and premises in combination, with recommendation to give final approval at its public hearing this evening.

Dennis Potter, city planner, stated there are several items that need to be done, that since this is a substantial revision to the original ordinance, should do a motion to amend the ordinance by substituting the text in the attached staff report, and to include amendment as follows: Section (E)(1)(C) to insert the following language, "…or construction of a new structure…" after the words "existing structure". He stated they want to allow anyone who wants to make use of this particular ordinance the ability not only to renovate, rehabilitate, expand the existing structure but also to build a new one if they so choose, ultimately gets approved by the Planning Commission and the city council; the Planning Commission's recommendation is to approve. He stated they expect M & H will be the first entity to make use of this particular change to the ordinance.

It was moved by Council Member Kerian and seconded by Council Member Kreun to amend the ordinance as introduced by substituting the text in the staff report ordinance and to include the following amendment in Section (E)(1)(C) "…or construction of a new structure…" after the words "existing structure".

Council Member Glassheim asked what controls are in place to protect neighborhoods and if Planning and Zoning and the council would have to decide on whether conditional use is acceptable or if it is automatic. Mr. Potter read a portion of the ordinance that contains the requirements which must be met prior to consideration of an application for conditional use permit, that Planning and Zoning must take action on the application and make recommendation to the city council - city council has final authority. .

Council Member Christensen questioned paragraph which says that after 30 years the permit is revoked, and that whoever acts on conditional use permit would expect that their structure would continue beyond 30 years. Mr. Swanson stated this is major change in policy for the Land Development Code, that under existing Code if a zone is changed you are non-conforming use, under current Code they can continue as a non-conforming use but cannot expand the building, add on to it and there are provisions over period of time that they be amortized out of use. He stated if this ordinance is adopted you are allowing them to tear down an existing facility, build a new larger facility for commercial purposes in a residential zone, the controls that Planning and Zoning Commission is proposing is that it be done by conditional use permit, the permit is to be for 20-year period of time and can be extended for 10 additional years and 10 additional year segments, can be continuously extended but have no interest, no expectation and no right to anticipate the conditional use permit will go beyond whatever that initial granting period would be - could have a building in a residential neighborhood designed for commercial use that that use is no longer permitted under your conditional use provisions.
Council Member Christensen asked if rather than going conditional use permit route, could we zone that portion of the city commercial. Mr. Swanson stated without having done any detailed analysis or inventory of uses, that area is predominately residential, multi-family area, but not recalling any other commercial activities adjacent or near that that would allow you to do a rezoning. He stated council's options are multiple, 1) could require that it go into an R-4 use as present zoning, 2) could change the zoning if there were enough other uses compatible, 3) could add limited commercial uses to the R-4 zone, but if do that as a permitted use that applies across the city in all R-4 zones or in this case, as a conditional use permit, and gives some additional protection but not an answer to every issue.

Council Member Gershman asked if there has been a survey of other properties that would have similar ability to expand in our city in other neighborhoods and set precedent. Mr. Potter stated they looked at other areas that are R-4 and did not see any that were specifically capable of meeting these criteria, this one appears to be a very unique situation and wanted to craft a solution based on neighborhood input and a desire for this facility to be where it is, but stay and have the ability to expand within the limits of what is described here. There were no more than one protest to the request.

Upon call for the question on the amendment and upon voice vote, the amendment 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": none. Mayor Brown declared the ordinance adopted.

ADOPT ORDINANCE NO. 4006, AMENDING ARTICLE
2, SECTION 18-0204, RULES AND DEFINITIONS AND
ARTICLE 3, RULES AND REGULATIONS, SIGNS AND
RELATING TO PERMITTED SIGNS IN B-2 SHOPPING
CENTER DISTRICTS

An ordinance entitled "An ordinance relating to the Grand Forks City Land Development Code, Chapter XVIII of Grand Forks City Code of 1987, as amended, amending Article II", which had been introduced and passed on its first reading on December 15, 2003, and upon which public hearing was scheduled for this evening, was presented and read for consideration on second reading and final passage.

The deputy city auditor reported that the required legal notice had been published calling for a public hearing this evening, and further that to date she had received no written protests on this matter.

Mayor Brown called for the public hearing; there were no comments and the hearing was closed.

The staff report from the Planning Commission relating to request from the Planning Department for final approval of an ordinance to amend the text of the Land Development code, Chapter VVIII of the Grand Forks City Code of 1987, as amended, amending Article 2, Section 18-0204, Rules and Definitions, subsection (2), and Article 3, Rules and Regulations, Section 18-0301, Signs, subsection (5), relating to permitted signs in the B-2 (Shopping Center) District, with recommendation to give final approval.

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

Upon call for the question of 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 ordinance adopted.

ADOPT ORDINANCE NO. 4007, TO AMEND ZONING
MAP TO INCLUDE WITHIN A-2 (AGRICULTURAL
RESERVE) DISTRICT LOTS 3 THROUGH 6, BLOCK 2;
LOTS 4 THROUGH 6, BLOCK 3; AND ALL OF BLOCK 5,
WALSH'S INDUSTRIAL SITE NO. 1

An ordinance entitled "An ordinance to amend the Zoning Map of the city of Grand Forks, North Dakota, to rezone and exclude from the I-2 (Heavy Industrial) District and to include within the A-2 (Agricultural Reserve) District, Lots 3 through 6, Block 2; Lots 4 through 6, Block 3; and all of Block 5, Walsh's Industrial Site No. 1, Grand Forks, North Dakota", which had been introduced and passed on its first reading on December 15, 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 deputy city auditor reported that the required legal notice had been published calling for a public hearing to be held on this matter this evening and further that to date no protests or grievances had been filed with her office.

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

The staff report from the Planning and Zoning Commission relating to request from Frank and Lucille Matejcek, et al, for final approval of an ordinance to amend the zoning map to exclude from the I-2 (Heavy Industrial) District and to include within the A-2 (Agricultural Reserve) District, Lots 3 through 6, Block 2, Lots 4 through 6, Block 3; and all of Block 5, Walsh's Industrial Site No. 1 (located between 27th Avenue North and 33rd Avenue North and between North 32nd Street and U.S. Highway 81 North), with recommendation to give final approval to the ordinance.

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

Upon call for the question of adoption of this 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 ordinance adopted.

APPROVE FINAL PLAT AND ADOPT ORDINANCE NO.
4008, TO AMEND THE STREET AND HIGHWAY PLAN TO
INCLUDE PUBLIC R/W SHOWN AS DEDICATED ON THE
PLAT OF AUDITOR'S SUBDIVISION NO. 36

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 Auditor's Subdivision No. 36, Grand Forks, North Dakota", which had been introduced and passed on its first reading on December 15, 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 deputy city auditor reported that the required legal notice had been published calling for a public hearing to be held on this matter this evening and further that to date no protests or grievances had been filed with her office.

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

The staff report from the Planning and Zoning Commission relating to the request from Brandon Bartholomew on behalf of the City of Grand Forks, North Dakota, for final approval of the plat of Auditor's Subdivision No. 36 to the city of Grand Forks, North Dakota (located at areas east of Almonte Avenue south to Lincoln Drive, with recommendation to give final approval to the plat, subject to the conditions shown on or attached to the review copy, including an ordinance amending the Street and Highway Plan.

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

Upon call for the question of adoption of this ordinance and upon roll call the following voted "aye": Council Members Brooks, Hamerlik, Glassheim, Gershman, Christensen, Kerian, Kreun - 7; voting "nay": none. Mayor Brown declared the ordinance adopted.

REFER ORDINANCE TO AMEND STREET AND HIGHWAY PLAN TO INCLUDE PUBLIC R/W ON PLAT OF BIRKHOLZ HOMESTEAD ADDITION BACK TO PLANNING & ZONING

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 Birkholz Homestead Addition, Grand Forks, North Dakota", which had been introduced and passed on its first reading on September 15, 2003, and upon which public hearing had been continued until this evening, was presented and read for consideration on second reading.

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

Mr. Potter, city planner, asked on behalf of the developer that this matter be referred back to Planning and Zoning Commission as there will be a new plat coming in and they would like Planning and Zoning Commission review that and hold a public hearing on that.

It was moved by Council Member Glassheim and seconded by Council Member Kerian to refer this matter back to the Planning and Zoning Commission. Carried 7 votes affirmative.

ADOPT RESOLUTION VACATING STREETS, ALLEYS
AND EASEMENTS IN LINDSAY'S ADDITION LYING
WITHIN LOTS EAST OF ALMONTE AVENUE SOUTH OF
8TH AVENUE SOUTH TO LINCOLN DRIVE

The deputy city auditor reported that pursuant to instructions by the city council after having received a petition to vacate the streets, alleys and easements in Lindsay's Addition lying within lots east of Almonte Avenue south of 8th Avenue South to Lincoln Drive, the required legal notice had been published calling for a public hearing to be held this evening, and further that no protests or grievances had been filed with the auditor's office.

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

It was moved by Council Member Gershman and seconded by Council Member Kreun that we find and determine an insufficiency of protest to the proposed vacation. Carried 7 votes affirmative.

Council Member Gershman introduced the following resolution which was presented and read: Document No. 8407 - Resolution.

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

ADOPT RESOLUTION VACATING PUBLIC R/W AND
20-FOOT BIKEWAY AND PEDESTRIAN WALKWAY
EASMENT IN COUNTRYVIEW SECOND RESUBDIVISION
AND UNPLATTED PARTS SOUTH THEREOF

The deputy city auditor reported that pursuant to instructions by the city council after having received a petition to vacate the public right of way and 20-foot bikeway and pedestrian walkway easement, being a part of Lot E, Block 1, Countryview Second Resubdivision of a replat of Lots 9 through 14, Block 2 and Lots 12 and 13, block 1, Countryview First Resubdivision and unplatted parts south thereof, the required legal notice had been published calling for a public hearing to be held this evening, and further that no protests or grievances had been filed with the auditor's office.

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

It was moved by Council Member Kreun and seconded by Council Member Kerian that we find and determine an insufficiency of protest to the proposed vacation. Carried 7 votes affirmative.

Council Member Gershman introduced the following resolution which was presented and read: Document No. 8408 - Resolution.

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

SET PUBLIC HEARING ON APPLICATION FOR ABATEMENT OF TAXES

The staff report from the administrative coordinator relating to Canad/Shelter Proposal, with recommendation to set the date for a public hearing on the matter of the application by Canad/Shelter for a five-year tax exemption for February 9, 2004.

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


APPROVE FINAL CERTIFICATION OF INFRASTRUCTURE
CONNECTION FEES FOR PROJECT NO. 4807

The staff report from the engineering department relating to final certification of infrastructure connection fees (tapping) for Project No. 4807, paving South Washington from 40th to 47th Avenue South, with recommendation to approve final certification of connection fees for Project 4807 and establish September 3, 2002 as the date of project completion.

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

APPROVE LEASE AGREEMENT WITH PARK DISTRICT
FOR LINCOLN DRIVE PARK

The staff report from the engineering department relating to lease agreement with the Park District for Lincoln Drive Park, with recommendation to approve the lease agreement between the City of Grand Forks and the Grand Forks Park District for Lincoln Drive Park for a one year term.

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

APPROVE GREENWAY SIGN REQUEST

The staff report from the greenway coordinator relating to greenway sign request, with recommendation to approve a greenway sign request to the North Dakota Department of Transportation and provide a letter of support.

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

APPROVE BUDGET AMENDMENT, FIRE DEPARTMENT

The staff report from the fire department relating to budget amendment, with recommendation to approve the budget amendment to purchase capital items for Weapons of Mass Destruction in the amount of $115,000, monies from Department of Homeland Security (DHS)FY 2003 State Homeland Security Grant.

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 LAND DEVELOP-
MENT CODE, ZONING, CONDITIONAL AND SPECIAL
CONDITIONS RE. DOG DAYCARE AND BOARDING
FACILITIES

The staff report from the Planning and Zoning Commission relating to the request from the Planning Department for preliminary approval of an ordinance to amend the text of the Land Development Code, Chapter XVIII of the Grand Forks City Code of 1987, as amended, amending Article 2, Zoning, Section 18-0204, Rules and Definitions, subsection (2); Section 18-0216 B-3 (General Business) District, subsections (3) Conditional Uses and (11) Special Conditions; Section 18-218 I-1 (Light Industrial) District, subsection (3) Conditional Uses; and Section 18-0219 I-2 (Heavy Industrial) District, subsection (3) Conditional Uses, all relating to dog daycare and boarding facilities; with recommendation to grant preliminary approval to the ordinance and set a public hearing date for February 17, 2004.

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 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 18-0216 B-3 (General Business) District, subsections (3) Conditional Uses and (11) Special Conditions; Section 18-0218 I-1 (Light Industrial) District, subsection (3) Conditional Uses; and Section 18-0219 I-2 (Heavy Industrial) District, subsection (3) Conditional Uses; all relating to dog daycare and boarding facilities", which was presented, read and passed on its first reading.

APPROVE PRELIMINARY PLAT OF REPLAT OF LOTS
13-17, BLOCK F, SUNBEAM ADDITION

The staff report from the Planning and Zoning Commission relating to the request from Branden Bartholomew on behalf of the City of Grand Forks for preliminary approval of the Replat of Lots 13-17, Block F, Sunbeam Addition to the city of Grand Forks, North Dakota (located at 51, 55, 59, 63 and 67 Sloping Hills Cove), 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.

APPROVE PRELIMINARY PLAT OF REPLAT OF LOTS 4,
5, 6, 14, 15 AND 16, BLOCK 6, SUNBEAM ADDITION

The staff report from the Planning and Zoning Commission relating to the request from Branden Bartholomew on behalf of the City of Grand Forks for preliminary approval of the Replat of Lots 4, 5, 6, 14, 15 and 16, Block 6, Sunbeam Addition to the city of Grand Forks, North Dakota (located on Gentle Hills Circle and Rolling Hills Circle), 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.

APPROVE PRELIMINARY PLAT OF ROBERTONS FIRST
ADDITION

The staff report from the Planning and Zoning Commission relating to the request from Branden Bartholomew on behalf of the City of Grand Forks for preliminary approval of the Replat of Lots 1-F, 8, and 10-13, Block H, Sunbeam Addition to the city of Grand Forks, North Dakota (located on Northridge Hills Court), 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.

DIRECT STAFF TO PROCEED WITH GRANT APPLICATION
FOR NORTH END BOAT RAMP AND DIRECT STAFF TO
CONTINUE PROCESS TO SECURE FUNDING FOR A SECOND
BOAT RAMP

The staff report from the engineering department relating to grant application for proposed north end boat ramp, with recommendation to direct staff to proceed with a grant application to the North Dakota Game and Fish for a new north end boat ramp.

Council Member Kreun stated he would like to add to recommendation that we direct staff to apply for a second boat ramp in 2005, that we have betterment monies in the budget for the boat ramps and that we should incorporate those monies and have boat ramps completed by the time we complete the dike system; that there are other local matching monies as well - some through Resource Water District, Garrison Diversion and several other areas and should be looking at those as well so that we can utilize that for some of our matching funds and incorporate that into the motion.

It was moved by Council Member Kreun that the staff continue the application process for a grant to help construct a boat ramp in the north end in the year 2004; and further that the staff be directed to continue the grant application process to secure funding for the construction of a second boat ramp in the south end, that the location for the south end ramp be reviewed and determined this year, and constructed in 2005. Council Member Christensen seconded the motion.

Mark Walker, asst. city engineer, stated it was his understanding that this grant being submitted now is for funding this year and for the 2004 construction season.

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

APPROVE BILL LISTING

Vendor Listing 04-02, dated January 16, 2004, totaling $264,183.87, were presented and read.

It was moved by Council Member Gershman and seconded by Council Member Christensen that these bills be allowed and that the city auditor be authorized to issue warrants in payment of the same. Upon roll call the following voted "aye": Council Members Brooks, Hamerlik, Glassheim, Gershman, Christensen, Kerian, Kreun - 7; voting "nay": none. Mayor Brown declared the motion carried and the bills ordered paid.

APPROVE MINUTES JANUARY 5 AND 12, 2004

Typewritten copies of the minutes of the city council meeting held on Monday, January 5, 2004 and of the special meeting held on Monday, January 12, 2004, were presented and read. It was moved by Council Member Glassheim and seconded by Council Member Kreun that these minutes be approved. Carried 7 votes affirmative.
MAYOR AND COUNCIL MEMBER COMMENTS

1) Council Member Brooks asked that council packets be sent to him in envelope rather than binder as he has several binders at home and will fill in the binder himself.

2) Council Member Christensen reported that the meeting of the Finance/Development Standby Committee will not be held on Wednesday, January 21 as staff not available, meeting rescheduled to following Wednesday, January 28.

3) Council Member Kreun reported he had received correspondence and phone calls at home, business and staff from an individual almost to point of harassment and what to do to stop this. Mr. Swanson stated he would discuss that with him privately.

4) Mr. Swanson reported he had an item he wanted to bring to their attention - that we have been presented with change order request on the wastewater treatment plant re. sales and use tax issue of about $372,000 involving two contractors, PKG Contracting, Fargo and Rick Electric, Moorhead. He stated he has reviewed that and the Tax Commissioner has perhaps overstated amount of sales tax or use tax that is due, and that he has filed a petition for review with Tax Commission's Office and they are going through invoices and calculations on sales tax and believes we could potentially save about $180,000 off the tax bill; the tax bill includes both penalty and interest and if we have a resolution with the Tax Commissioner and that matter is actually paid by January 31, 2004, the Tax Commissioner does have statutory authority to waive all penalty and interest and if need to act by January 31, they will, if can save substantial dollars and will provide council with further correspondence, the issue has to do with values of certain equipment that the City purchased from another vendor and there was no sales or use tax paid on that equipment and the City in turn provided that equipment for installation to Rick Electric and PKG and under ND law that is a taxable event and the owner, the City, would have responsibility for paying that, we are not tax exempt in that transaction. He stated if any have questions, he would respond to that but that they are trying to reduce that amount.

ADJOURN

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

Respectfully submitted,



Saroj Jerath
Deputy City Auditor

Approved:
____________________________________
Michael R. Brown, Mayor