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PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF GRAND FORKS, NORTH DAKOTA
August 1, 2005

The city council of the city of Grand Forks, North Dakota met in the council chambers in City Hall on Monday, August 1, 2005 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 (teleconference), Christensen, Kerian, Kreun - 7; absent: none.

The Crimson Creek Collegiate Players led the council in the pledge of allegiance to the flag. The Players then sang the title song to their play, "Oklahoma", which is being presented at the Empire Art Center on August 2 - 5 and 9 -12.

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:
That they have city-wide ground spraying scheduled for tonight, and Air Force will use a C130 later in the week, weather permitting.
That he would like to join with Crimestoppers in the police department to invite everyone in our region to attend a community forum on Meth as part of the National Night Out on August 2 from 5:00 to 9:00 p.m. at the Alerus Center; that he proclaimed August 2 as National Night Out Day in Grand Forks and would like to see as many people attend the forum as possible.
Congratulations to Arvin Kvasager for the honor bestowed on him today as the Kvasager Learning Center which was dedicated and with nearly four decades of public service including the Housing Authority, County Commission and the ND State Legislature, he has made countless contributions to this community and want to thank him.
That he was pleased to be a celebrity judge as the Suite 49 competition last Tuesday on the American Idol contest, that we have much talent in the community and encourage people to get involved and see some of these events.
That Grand Forks is playing host to the Central Time Zone Swim Meet starting Thursday with over 600 swimmers from as far as Arkansas and Oklahoma and another example of our capabilities and resources as a community.

AWARD TO FINANCE DEPARTMENT

Mayor Brown presented an award from the Government Finance Officers Assn. of the United States and Canada its Certificate of Achievement for Excellence in Financial Reporting to the Department of Finance and Administrative Services and its Assistant Finance Director, Saroj Jerath; and that this is the 18th consecutive year the Finance Department has received this award. Ms. Jerath introduced and recognized her colleagues, Candi Stjern, Maureen Storstad and Emily Fossen for their efforts in achieving this award and also Mr. Schmisek for his leadership. She also noted that the Financial Report is a good resource for financial as well as non-financial information and would like them to take time to read it.

MONTHLY FLOOD UPDATE

Alan Grasser, city engineer, reported on progress of construction, that the Corps of Engineers received bids July 21 for the last phase of our flood protection project, Phase IV, and low bidder was a joint effort between C & J Builders out of Minot and Gowan Construction, the bid was $11,282,000 which was about a million dollars under the engineer's estimate of $12,860,000. He stated that they have set aside some advanced funding from the City of Grand Forks so the contractor can get started on this immediately or as soon as possible through the Corps of Engineers project. East Grand Forks will be bidding their Phase IV in the next couple weeks and should be the last of the bidding, then the matter of getting it constructed and certified.

He reported they received news from Senator Dorgan's office re. floodplain remapping, that FEMA rather than going forward with its plan to remap the region's floodplain, will work with the Army Corps of Engineers to revise the city's current flood insurance rate map. He reviewed maps on the screen showing differences in the areas on existing plan, draft map submitted by FEMA and proposed map where they are working closely with the Corps of Engineers to get that adopted by FEMA.

Council Member Brooks requested when they would receive an update on budget to cost by different sources. Mr. Grasser stated that the Corps, after bidding, can deal with real numbers as far as bids as opposed to estimates, and will try to take our current land acquisitions and rights of way and put that into a comprehensive report, probably September or October, and will make a brief presentation to the council.

ADOPT ORDINANCE NO. 4079, RELATING TO PERMITED
USES IN A B-4 CENTRAL BUSINESS DISTRICT

An ordinance entitled "An ordinance amending subsection (2)(B) of Section 18-0217 of the Grand Forks City Code heretofore effective relating to permitted uses in a B-4 Central Business District", which had been introduced and passed on its first reading on July 5, 2005, and upon which public hearing had been scheduled for this evening, was presented and read for consideration on second reading and final passage.

The city auditor reported that the required legal notice had been published calling for a public hearing to be held on this matter this evening and further that to date no protests or grievances had been filed with his office.

Mayor Brown opened the public hearing.

Council Member Kreun reported that this item will be on the agenda for the Planning and Zoning Commission's meeting on Wednesday and suggested holding this until they receive the report from them,
unless they don't have to as this has been before Planning and Zoning before and they made the changes.

Mr. Swanson, city attorney, reported that this item is on the Planning and Zoning Commission's agenda, is an item that requires their recommendations but understood that they had made a prior recommendation, that the council can act on this or can wait to hear the recommendation from Planning and Zoning and that discretion lies with this body. He also noted that it would be up to the Planning and Zoning Commission as to whether they wish to make further recommendation, could make recommendation for the council to rescind their action.

Council Member Gershman stated that he is in favor of housing but that he will vote no on this because of the 3 ft. above the elevation of any adjacent sidewalk, that he made his case earlier and doesn't make any sense whatsoever, doesn't meet ADA requirements.

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

Council Member Kerian moved approval of the ordinance, seconded by Council Member Kreun and upon call for the question and upon roll call vote, the following voted "aye": Council Members Hamerlik, Glassheim, Christensen, Kerian, Kreun - 5; voting "nay": Council Members Brooks, Gershman - 2. Mayor Brown declared the motion carried and the ordinance adopted.

CONTINUE PUBLIC HEARING AND SECOND READING
OF ORDINANCE TO AMEND STREET AND HIGHWAY
PLAN TO INCLUDE PUBLIC R/W SHOWN AS DEDICATED
ON THE PLAT OF SOUTHERN ESTATES FIFTH ADDITION
UNTIL AUGUST 15, 2005

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 Southern Estates Fifth Addition, Grand Forks, North Dakota", which had been introduce and passed on its first reading on May 16, 2005, 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.

Council Member Kreun stated that this ordinance had been tabled previously and came back automatically within the 6-week period of time, and this does involve the designation of affordable housing, that they have met several times and have a proposal to bring forward and would be prudent to bring it to the committee of the whole meeting next week and onto council agenda the following week, and moved to table the public hearing and second reading of the ordinance until August 15, 2005 but also to bring it to the committee of the whole meeting next week. Council Member Kerian seconded the motion. Carried 7 votes affirmative.

ADOPT RESOLUTION VACATING PORTION OF SOUTH
16TH STREET R/W SOUTH OF 44TH AVENUE SOUTH
BETWEEN CURRAN'S 2ND SUBDIVISION AND STADTER
RESUBDIVISION

The city auditor reported that pursuant to instructions by the city council after having received a petition to vacate a portion of South 16th Street right of way south of 44th Avenue South between Curran's 2nd Subdivision and Stadter Resubdivision, 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 public hearing was closed.

It was moved by Council Member Christensen 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 Christensen introduced the following resolution which was presented and read: Document No. 8751 - Resolution

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

TABLE PUBLIC HEARING ON VACATION OF UTILITY
EASEMENT IN BLOCK 2, PERKINS FOURTH ADDITION

The city auditor reported that pursuant to instructions by the city council after having received a petition to vacate the utility easement in Block 2, Perkins Fourth Addition, 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.

Council Member stated that this item is on the Planning and Zoning Commission's agenda for Wednesday evening and would like to hold this matter until they received a referral from Planning and Zoning, and moved to hold this matter until August 15, 2005; seconded by Council Member Kerian. Carried 7 votes affirmative.

CONTINUE PUBLIC HEARING ON RESOLUTION OF
NECESSITY ON PAVING DISTRICT NO. 616, PROJECT
NO. 5820, UNTIL SEPTEMBER 6, 2005

The city auditor reported that the period for filing protests on the resolution of necessity for the improvements in and for Paving District No. 616, Project No. 5820, construction of pavement on 44th Avenue South from South Washington Street to the Southend Drainway, had expired on August 1, 2005, and that he had received no written protests.

Mayor Brown opened the public hearing.

Council Member Kreun moved to hold this matter until September 6, 2005, carried by Council Member Kerian. Carried 7 votes affirmative.

ADOPT COMPREHENSIVE ANNUAL FINANCIAL PREPORT
FOR THE YEAR ENDED DECEMBER 31, 2004

The staff report from the finance and administrative services director relating to 2004 Comprehensive Annual Report (CAFR), with recommendation to approve the 2004 audit report, submit it to the state auditor's office and make final payment to the audit firm upon acceptance of audit by state auditor.

Council Member Brooks stated there is a great deal of information put together by the finance department and great deal of statistical information and reflects excellent work of finance and administrative services department and done by an excellent local accounting firm. He stated that he did not get a copy of the management report. Copies will be sent to council members.

It was moved by Council Member Brooks and seconded by Council Member Kreun that this recommendation be approved. Upon roll call the following voted "aye": Council Member Brooks, Hamerlik, Glassheim, Gershman, Christensen, Kerian, Kreun - 7; voting "nay": none. Mayor Brown declared the motion carried
ADOPT 2005 PRELIMINARY BUDGET

The preliminary budget for the fiscal year ending December 31, 2006 was presented to the city council, copies of the proposed preliminary budget had been delivered to all members of the city council

The staff report from the finance and administrative services director relating to 2006 budget, with recommendation to give preliminary approval of the 2006 budget and set the public hearing for September 6, 2005.

The city auditor stated that after approval of the preliminary budget unless there are additional revenues that are found or there is unanticipated cash carryover, the council cannot increase the budget, only decrease it. Council Member Glassheim stated that they had a request on Wednesday for $100,000 to fund a quasi-governmental operations by CVIC and would like to see the City do that by some extent and include that in our budget, that some amounts of the request could be taken from CDBG funds which are available and rather than taking them all from CDBG, some could be taken from the General Fund. He stated if we could take $45,000 from undesignated CDBG funds for this year and find another $40,000 from the General Fund would get us close to the request and mean the ability to continue for a year with the 3 programs that are discontinued; that the General Fund would be the source of funding for these programs because they would be treated as essentially public safety, part of our responsibility of the city government and come out of the General Fund and that in the second year, when planning the 2007 budget, we could reduce the CDBG portion and replace that with the General Fund monies, and moved that we adopt that plan in this budget. Council Member Kerian seconded the motion.

Council Member Kerian stated when CVIC made presentation to planning session and answered some of the questions about what CVIC contributes to the community and to the safety of the community, sees the benefits of this program but concerned if have to go back and redo budget with all the work that was involved in it, and another concern with this action is that this is not just the City's responsibility but serves broader community and entire county needs the benefit of this as well and not certain that the County is going to help with this and there are some issues that the CVIC board would need to deal with if they got part and not all of the money and looking to retain a set of services. She stated she has a number of questions about it and hesitant to vote for it until we have a better understanding, not whether value of the service, but questions on how and who pays the components of it, and need to fully understand what we are taking on and the benefits that will come from that.

Council Member Gershman stated that no one questions the services provided or jobs that they do but does not feel that they have had enough time to digest their financial statements or to look at long term and not matter of a one-time thing and that department heads worked extremely hard on the budget.

Council Member Brooks stated he thinks there is a way they can address this when the budget comes forward for the final adoption and would rather wait until then because they did make a commitment on the 9 mills and not prepared to increase the General Fund - need to look to see how to address this and need to find a regular permanent revenue source.

The city auditor asked that if this does pass what would be anticipated and if this is intended to spend down our general fund cash balance by $40,000 and as look to the '07 budget we would be looking to come up with the equivalent of 1 mill before we would come up with money for any other service. Council Member Glassheim stated this would be anticipated to be funded by the City, whether funded at $100,000 or $83,000, etc. and is still discretionary but the funding source would be the general fund.
Council Member Hamerlik stated there is another issue that needs to be said, that we do have in place citizens committees on the allocation of funding, esp. CDBG monies, and asked if we continue on with that or sidestep that or give citizens committee money with directives on who to give it to or council start looking at all the non-profits and making the decisions up here - that needs to be sorted out, not tonight - request for financial statement and would not be in favor of us jumping too quickly this evening.

Gary Hangsleben, 815 Duke Drive, stated he has written several articles in the Grand Forks Herald (Mailbag) about this issue, that there has been a rise and increase in false reports and statistics by this organization to generate increased funding. He also contacted police department and Attorney General's Office and both state that crime is down in ND. He stated concerning the $100,000 funding request made by the local Abuse Center, they claim that they are a quasi-governmental relationship and now want to secure funding for the same activities, and he maintains that they couldn't find a statute that the City has a responsibility to fund these programs, and also a duplication of services: local agencies, churches, etc. like County social Services, Grand Forks Mission, NE Human Services and churches have family human service functions; and waste of tax dollars to fund an organization like this.

Doug West, 422 South 5th Street, stated when it comes to the money issues and funding, he put together the different news clips, times and dates in tape form - that legitimate organizations do not need to exaggerate these claims, and in March there was talk about CVIC protection and lot of crimes relating to domestic violence, etc. are down, and crimes on the rise were identify theft and meth. and when annual police report came out and those kinds of crimes that would support these numbers are actually down and question the organization when all reports show crimes down and when funding comes up and they want money, and when organization makes these extravagant claims for increases and clients don't support any increases, and that is what was on the video tape. Mayor Brown asked Mr. West to leave tapes with his office and would make available to council.

Council Member Christensen stated he had asked for information from CVIC and had not received it, that they went through a budgeting process that started in September, 2004, and have drafted a budget that took a lot of time but that CVIC is looking for money for the year 2006 and that they have 3 programs that might be in jeopardy, that he asked about the staff and what is cost to administer those programs and is prudent for this council if it is going to expand the scope of municipal services by entertaining this request or any other request that it have this information and study this information in conjunction with our police department, because this information and if felt it was something we should put in the budget at that time should have been brought forward as part of their budgeting process, but wasn't. He stated there is a State grant available that may not go to the CVIC but to the Grand Forks County or to the prosecutor's office and is substantial, close to what you want from the County, and if that grant were applied for, there is a 95% chance of it being granted which would put $80 to $100,000 in grant funds into the County of Grand Forks to fund the request that you haven't made yet to the County of Grand Forks, and if this is something that the community feels is important, and wants to support and endorse, then it has to be joint effort of the County and the City and with grants available, should apply for them, and if something the police department feels is necessary as part of the rendition of keeping city and community safe and states attorney does, then we could do the same thing as two other major cities are doing in this State, could have part of the services that CVIC is administering administered from the county prosecutor's office, and grant would fund 2 staff positions. He stated we can get this worked out quite readily and apply for that grant in April of 2006, and have the money in June, 2006 and make sure that the CVIC and programs they are administering are still funded in 2006 because we have the money in our CDBG money to fund it, to stopgap until we come up with a permanent solution, too late in the process for this year because of sacrifices staff has made going forward with this budget.
Council Member Glassheim stated he understands the hesitancy but that it comes down to two matters: one - has CVIC met the burden of its claim that they perform public safety services that the City would otherwise have to perform, heard p.d. testify that something like $168,000 is not spent by the City of Grand Forks because of the services that CVIC is providing; there is also concern by council people that other people should do it, County should do it, prosecutor should do it, State should do it, and those are true, activities funded that relate to the courts, courts could fund some of this, etc.

Council Member Christensen stated the fund is 2199 and in that fund have anticipated revenue, CDBG, is $4.3 million and we have more than enough money coming in 2199 to pay the full $80,000, and that we are here to support the organization but maybe not out of the General Fund because that is property tax, but other funds available and wants to find a permanent solution for the problem and that is why saying a grant, about getting it into the County budget, about talking to the police and getting it as part of their budgeting process, and don't have to amend the budget tonight to honor this request, and have more than enough money in Fund 2199 to cover it and no reason to vote in favor of Mr. Glassheim's motion as they can honor the request in 2006 from this source of funds.

Council Member Hamerlik called for the question, seconded by Council Member Christensen. Carried 7 votes affirmative.

Upon call for the question to allocate funding for CVIC programs - $45,000 from undesignated CDBG funds and $40,000 from the City's General Fund carry-over in this year's budget, and upon roll call vote, the following voted "aye": Council Member Glassheim - 1; voting "nay": Council Members Gershman, Christensen, Kerian, Kreun, Brooks, Hamerlik - 6. Mayor Brown declared the motion defeated.

Council Member Christensen moved a resolution that we continue to explore the funding of CVIC's request to assist them in their 2006 budgeting process, receive a report from Mr. Hoover as to whether or not we have money available in 2199 or other sources. Council Member Brooks seconded the motion. Council Member Kreun suggested that resolution be referred to the finance/development standby committee

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

It was moved by Council Member Hamerlik and seconded by Council Member Christensen to approve the recommendation to give preliminary approval of the 2006 budget and set the public hearing for September 6, 2005. Upon call for the question and upon voice vote, the motion carried 7 votes affirmative.

GRANT PRELIMINARY APPROVAL OF APPLICATION
BY CIRRUS DESIGN CORPORATION/DAKOTA AIRCRAFT,
INC. FOR FIVE-YEAR PROPERTY TAX EXEMPTION ON
BUILDING EXPANSION, AND ESTABLISH PUBLIC HEARING

The staff report from the city assessor relating to application for property tax exemption for expanding business by Cirrus Design Corporation/Dakota Aircraft, Inc. at 1400 South 48th Street, with recommendation to establish date for public hearing on the exemption and possibly waive the requirement or publication of notice to competitors.

Mel Carsen, city assessor, suggested that they need to determine if there are no competitors and if that is the case, then set a public hearing date.

Council Member Christensen moved that there are no competitors to Cirrus Design Corporation in the city of Grand Forks. Council Member Kerian seconded the motion. Carried 7 votes affirmative.

Council Member Christensen set the date for the public hearing on the application for exemption as August 15, 2005 at 7:00 p.m. to hear any comments or testimony in favor of and in opposition to the granting of the tax incentives. Council Member Glassheim seconded the motion.

Howard Swanson, city attorney, advised the council not to make any type of indication other than acknowledging what the recommendation is from staff, you need to hold the public hearing before taking any action. He noted that the council has made a determination of no competitors and only effect that has is that it reduces the publication time, and next matter is to set the public hearing and that tonight is not the night to receive comment on the application or to take any action on the application.

Ross Weiler, 701 North 3rd Street, wished to make comments, but any comments will have to be made at the public hearing.

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

CONSIDER APPLICATIONS FOR CLASS 3 ALCOHOLIC
BEVERAGE LICENSES AT 1726 S. WASHINGTON STREET BY
MAVERICK ENTERPRISES, LLC DBA VINTNER'S CELLAR AND
BY DBLD, INC. DBA CHIPS EAST

The staff report from the finance department relating to the application for Class 3 (Off and/or On-Sale Beer & Wine) license by Maverick Enterprises, LLC dba Vintner's Cellar, 1726 South Washington Street, with recommendation to approve issuance of the license, contingent upon approval of the city attorney and sign off by appropriate departments.

The staff report from the finance department relating to application for Class 3 (Off and/or On-Sale Beer & Wine) license by DBLD, In. dba Chips East, 1726 South Washington Street, with recommendation to approve issuance of the license contingent upon approval of the city attorney and sign off by appropriate departments.

Mr. Swanson, city attorney, advised the city council that he has presented the city council with a memo that relates to both applications, that last Friday the Inspections Department provided him with a copy of a plat map and measurements for the Mall, that our City Code prohibits any new license from being issued to a location that is within 300 feet of an existing licensed premise as measured from door to door and also prohibits a new license from being issued to any location within 300 feet from a school, university, church, etc. and has laid out the Code in the Memo, and as a result of the findings of the Inspections Department the application for Chips East is within 100 feet of a lot where a church is located and is within 300 feet of an existing premise. He stated he had conversations with the executive director of the organization as well as legal counsel and they do not dispute these findings and the council has no discretion in that matter and his recommendation is that council would need to deny the application for Chips East at that location.

Council Member Gershman asked to be recused from voting on these issues; and it was so moved by Council Member Brooks and seconded by Council Member Glassheim. Carried 6 votes affirmative.

Mr. Swanson, city attorney, advised the city council that he spoke with Mr. Osowski of Vintner's Cellar and he would like to have more information on the measurements and would ask that this body table his application until the next city council meeting so that he would have a chance to review those measurements.

It was moved by Council Member Kerian and seconded by Council Member Glassheim that to table the application for Vintner's Cellar and to deny the application for DBLD, Inc.

Mr. Swanson also noted that the council could table the application for Chips East, but that they have advised him that they do not dispute either his recommendation or the findings and have no discretion and the Code does not allow you to do anything to waive that as it relates to the church; and they indicated they would not be appearing tonight and understood the recommendation that he would be making.

Mary Ann Hentschell, 2353 27th Avenue South, #103, addressed the council relating to concerns with the Bingo Palace (Chips East) and the smoking issue that they are trying to skirt, that she spoke with Mr. Gibbens about her concerns, that to her the Bingo Palace is a place to go and have fun, not to purchase cigarettes or buy and drink alcohol.

Council Member Hamerlik moved to amend the motion that that both applications be tabled until August 15, 2005. Council Member Brooks seconded the motion.

It was asked that the vote be split.

Upon call for the question on the motion by Council Member Hamerlik and Council Member Brooks to table the application by Maverick Enterprises, LLC dba Vintner's Cellar until August 15, 2005, and upon voice vote, the motion carried. Council Member Gershman recused from voting.

Upon call for the question to table the application by DBLD, Inc. until August 15, 2005, and upon roll call vote the following voted "aye": Council Members Brooks, Hamerlik - 2; voting "nay": Council Members Glassheim, Christensen, Kerian, Kreun - 4. Mayor Brown declared the motion defeated.

Upon call for the question on the motion to deny the application by DBLD, Inc. dba Chips East by Council Member Kerian and seconded by Council Member Glassheim; and upon roll call the following voted "aye": Council Members Kerian, Kreun, Glassheim, Christensen - 4; voting "nay": Council Members Brooks, Hamerlik - 2; Council Member Gershman recused from voting. Mayor Brown declared the motion carried. .

Mr. Swanson stated that the denial of that application by Chips East does not prejudice the applicant from bringing forth an application at a later date should you change the ordinance or if they were to propose a location that complied with the existing Code.

Council Member Glassheim stated he will intend to vote no on any request for license which is being done obviously for the purpose of avoiding our smoke free ordinance and it appears clear that people don't particularly want to serve as a bar but getting a bar license for $1,000 in order to have smoking and to avoid our ordinance, and if thinking of rewriting ordinances this does point up a weakness in our smoking ordinance where we are going to create a number of new bars or becoming bars for the purpose of having smoking and legal under our ordinance but should start thinking about what, if anything, we can do to stop that gap that we created.

TABLE CONSIDERATION OF BIDS FOR PROJECTS
NOS. 5818, 5819 AND 5820, WATER, STORM SEWER
AND PAVING ON PORTION OF 44TH AVENUE SOUTH

The staff report from the engineering department relating to consideration of bids for Project Nos. 5818, 5819 and 5820, watermain, storm sewer and paving for 44th Avenue South (between South Washington and South 16th Streets), with recommendation to award contract to low bidder, United Crane & Excavation, in the amounts of $20,912.00, $88,039.00 and $222,496.00, respectively, for a total bid of $331,447.00.

Council Member Kreun moved to table this matter to September 6, 2005, seconded by Council Member Kerian. Carried 7 votes affirmative.

ACCEPT BID FOR PROJECT NO. 5663, SOUTHEND
BOAT RAMP

The staff report from the engineering department relating to bids for Project No. 5663, Southend Boat Ramp, with recommendation to award contract to Strata Corporation in the amount of $98,413.50 and authorize use of Greenway Betterment Funds for the local share of the project.

It was moved by Council Member Christensen and seconded by Council Member Kerian that this recommendation be approved. Upon call for the question and upon voice vote, the motion carried 7 votes affirmative.

ACCEPT BID FOR PROJECTS NOS. 5505 AND 4769.1, PHASE
4, UTILTY RELOCATIONS AT RDO FOODS AND WATER
TREATMENT PLANT

The staff report from the engineering department relating to bids for Projects No. 5505 and 4769.1, Phase 4, Utility Relocations at RDO Foods and Water Treatment Plant, with recommendation to award contract to lowest responsive bidder, Molstad Excavating, in the amount of $138,000.00.

It was moved by Council Member Christensen and seconded by Council Member Kerian that this recommendation be approved. Upon call for the question and upon voice vote, the motion carried 7 votes affirmative.

ACCEPT BIDS FOR PROJECT NO. 4648.8, WATER SYSTEM
SECURITY IMPROVEMENTS, SECURITY FENCING

The staff report from the water utility superintendent and the director of public works relating to consideration of bids for Project No. 4648.8, Water System Security Improvements, Bid Package 1, Security Fencing, with recommendation to award construction contract to the low, responsive bidder, Strata Corporation, in the amount of $631,250.00.

It was moved by Council Member Kreun to award the construction contract to the lowest responsible bidder, Strata Corporation, in the amount of $631,250.00; seconded by Council Member Gershman that this recommendation be approved.

Several council members stated concerns that this is not a sensible expenditure of money, that fencing provides certain measures of security but have other buildings where don't have that level of security; and whether or not we think what were buying is worth what has been professed that we will get security. .

Council Member Kreun stated we have gone through this with a lot of discussion and gave staff information and voted on it and now want to potentially change their minds, not just a fence but part of a total security package for our water system and other portions that will go along with, this is a component of it, and without it don't have the full security that is required. He stated this is actual safety precaution, keeps kids from climbing our water towers and protects us and gives us a certain amount of liability coverage and have gone through this process.

Council Member Kerian stated all these arguments have been raised and discussed and voted earlier to accept this, any of these things are not going to be full protection but what you ask for in a security system sometimes is some amount of time, can't prevent every possibility, not perfect but that it gives some layer of space between an important source for the city (water) and whether its vandals or someone who is intent on doing serious damage to us, and sometimes that can make a difference, and hopes can move ahead and pass this.

Council Member Kreun called for the question.

Upon roll call the following voted "aye": Council Members Kreun, Hamerlik, Gershman, Kerian - 4; voting "nay": Council Members Brooks, Glassheim, Christensen - 3. Mayor Brown declared the motion carried.

CITIZEN COMMENTS

Ross Weiler, 701 North 3rd Street, spoke about economic development and tax exemptions, not sure he could attend meeting on August 15, 2005, and wanted to speak to the bigger picture of economic development for the community of Grand Forks, some of his comments were about Cirrus Design, but the bigger picture is economic development funding and your efforts. He stated he applauds efforts to bring business and manufacturing to Grand Forks and thinks encouraging Cirrus Design success and other manufacturers in business success with a tax exemption to build and grow here is a good idea, that he worked at Cirrus and other corporations that received economic development money and enjoyed working there and found conditions tolerable, reasonably safe, management to be worker friendly and safety conscious. He thinks Cirrus Design has potential to be an excellent employer in the long run and probably continue to be an asset to the community and the economy, and while realizing the council has better access to the information needed to make economic development decisions still feels it necessary to point out that Cirrus Design is currently starting labor at $9 to $10/hour depending on shift variance, that gas, housing, heating, taxes as well as medical expenses are higher than were in 1996; and with these incentives for tax breaks should be tied to a guaranteed wage requirement that insures the working class people of this community receive a wage they can survive on but can actually get ahead for their future in this city. We cannot continue to allow a low wage for benefit of business that long term causes the migration of our youth and skilled workforce.

Council Member Glassheim stated he did check with Urban Development on specific case on hand and his understanding is that the wages being talked about are $12 to $12.50 hour range, and that we want to create what jobs we can and get to the median income because when encouraging people to come or expand, want to be above average and that Economic Development Commission has had discussions along those lines and they are after much higher priced things. He stated this is somewhere in the $12 or $12.50 range starting and checked the total payroll and it came out to be on average $25,000 to $30,000 for these jobs and close to what suggesting.

APPROVE BILL LISTING AND ESTIMATES

Vendor Payment Listing No. 05-15, dated July 29, 2005 and totaling $1,896,108.99, and Estimate Summary in the amount of $1,166,532.17, were presented and read.

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

APPROVE MINUTES MAY 24 AND JULY 18, 2005

Typewritten copies of the minutes of the city council meetings held on Tuesday, May 24, 2005 and on Monday, July 18, 2005, were presented and read. It was moved by Council Member Kreun and seconded by Council Member Gershman that the minutes be approved as read. Carried 7 votes affirmative.

MAYOR AND COUNCIL COMMENTS

1) Council Member Glassheim stated while on the radio today had a comment on grass growing out of control in the lots near the Alerus and by Arby's and Village Inn on 32nd Avenue South, that we have an ordinance that allows us to do the mowing and charge back to the property owner. Mr. Shields from the Health Department will check those areas.

2) Council Member Kerian stated that information had been requested about rents between Fargo and Grand Forks and has received information - fair market rents out of HUD and comparing 40% of the standard quality rental housing unit and for FY05 the latest information shows that for efficiencies Fargo is about $10/month more at $365; on a one-bedroom Fargo about $13/month less and that is about $446 and include utilities; on two-bedroom Fargo about $4 more and three-bedroom about $100/month more and four-bedroom $23/more; and hears that rents are less expensive in Fargo; however, median income in Grand Forks is about $2,000/month and about $2,100/month in Fargo and mean is $2,300 and $2,500, and wages are something we need to keep working on but when people talk about rents, they are similar.

3) Council Member Kreun stated the mosquito control crew has been doing a good job and researching chemicals but have had comments from people up north, Mr. Hanson is correct on the type of chemicals that we are using and much better than what we have had in the past and residents should not fear people that try to instill fear into us.

4) Mr. Swanson stated his office has been fielding calls on the smoking ordinance, and less calls than what expected, generally the calls were trying to confirm what they have been told or read and getting information, and have answered the questions and sent out a number of informational packets, made site visits and coordinated with city departments; and that if council members get questions or if have questions, to call his office and will respond to inquiries or provide further information.

ADJOURN

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

Respectfully submitted,



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