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Minutes/Committee of the Whole
Monday, January 9, 2006 - 7:00 p.m.

The city council met as the Committee of the Whole on Monday, January 9, 2006 at 7:00 p.m. in the council chambers in City Hall with Mayor Brown presiding. Present at roll call were: Council Members Brooks, Hamerlik (teleconference), Glassheim, Gershman, Christensen, Kerian, Kreun - 7; absent: none.

Mayor Brown announced that when addressing the committee to lease come forward to use the microphone for the record, and advised that the meeting is being televised live and taped for later broadcast.

Mayor Brown commented on various events held during the past week and upcoming events:
Congratulations to engineering department who received two Gold Star awards for 2005 by the North Dakota Reddymix & Concrete Products Assn.: paving of project at 32nd Avenue South and Columbia Road intersection; and Phase II of levee flood walls - residents of each neighborhood should also be recognized for their part in this construction; and great job to staff in engineering department.

2.1 Utility and link connections for Canad Inn and the Alerus Center.
Rick Duquette, administrative coordinator, stated he had placed two documents on their desks tonight, and reviewed information as to where the utilities are located, and in addition to the sanitary lines will be bringing in storm sewer, watermains. He showed some of the work that has been completed by Canad Inns and was done to relocate waterlines to provide water into the Alerus during construction. He stated that Canad intends to bring water into the front and back of their facility to provide water for fire hydrants, water pressure, water service, the aquatics center.

He stated the storm sewer cost is $70,000; sanitary sewer is $71,900; and water service around the perimeter of the parking lots and easement, no cost being requested by Canad to do the waterlines but there is a cost if we decide to relocate that waterline around the outside perimeter of the site and est. for that is $33,600. He stated he would strongly consider that next week when making a decision on this matter because there is additional construction at the site that may take place and need to get into that parking lot or reopen that, and also if there is further development to the north of this site, and that he has no further details beyond that but thinks $33,000 is sensible amount of money to spend on that potential future use.

He stated they have also had discussions with Nodak Electric regarding relocation of electric but doesn't have all of those details other than to tell you that the Alerus Center and Canad Center will use a double loop system - and if one goes down have a backup; presently have installed a temporary double loop into the Alerus during this construction, to redo this on a permanent basis lines have to be cut and have to be relocated by Nodak and their estimate at this point is $35,000.
He stated that presently the utilities costs are $210,640.

He noted re. the 2-hour firewall - have had discussion with Canad related to the connection and the linkage to the hotel and the Alerus and are going to strongly recommend that the city council consider a 2-hour firewall with this facility and that means some additional construction material and can get that detailed to council. He stated it makes sense in the long term and potential help with insurance premiums. Council Member Gershman asked if they have looked at sprinkling and if that would be less expensive than the firewall. Mr. Duquette stated they have and that there are some sprinkling requirements that are in the process and will find out more about that. Mr. Gershman asked if they would check with the insurance company to see if they give the same 10% discount.

He noted that the linkage and in the materials provided from agreement between Canad and the City, Section 9.6 describes the link and that outlines our responsibility related to this part of the project; and that is $175,000 to build linkage and 2-hour firewall would be separate from that as far as construction. Council Member Gershman stated in looking at the scope of work on the link it says "remove existing canopy columns and footings" and understands removing the existing canopy and column but why couldn't they leave the footings buried and why have expense to dig out the footings and how much the 10% savings would be on the insurance; Mr. Duquette stated he would find that out.

Mr. Duquette stated he has indicated architectural and code review services and est. that at $30,000 - and have spent approx. $10,000 to date as they have a consulting architect reviewing the codes, plans and details and will be continuing to work with us to look at the fit and finish and details of this project as it continues - Total amount is $491,079.

He stated re. architectural review has been ongoing, more from a technical standpoint as far as plans and details and code requirements, that this hotel is going to have huge atrium that runs through the middle and very unique facility requiring unique expertise to evaluate, looking at plans and details and elevations and making suggestions such as the firewall, etc. and has had some discussion with the Alerus Commission, some discussion with council members related to our next step, and thinks we need 3 tier process, technical group, middle management group such as himself, and governance group to keep you abreast of what is going on with that and gets some details as this begins to progress.

After questions by Council Member Hamerlik, Mr. Duquette stated he will bring back some specific recommendations to the council as to what that looks like as far as their next review group so that stays connected with you.

Mr. Duquette commented on financing - there are couple options for the council to consider, that he and the city auditor have had discussions about using the sales tax infrastructure fund or the economic development funds to cover these costs and paying those funds back through the sales tax that collects on the Alerus debt, bond debt fund, and can have this paid back in 2009 or 2010 utilizing half a million dollars as projected cost; that he is leaning towards the sales tax infrastructure fund, and that gives us a stronger option but will leave it to a decision of the city council, and his sense is to pay it back out of the Alerus debt residual.

Mr. Duquette stated he anticipates some additional modifications to the service pen, the Alerus staff has made some request to enlarge the service pen, area where semis go in for unloading into the Alerus, and additional electrical requirements, more parking for semis, and will be discussing that with the Alerus Commission to see if that is doable for their budget and may end up back in our discussions at a later date. There was some discussion about a bus transfer station being planned in this area and has asked MPO to do some studies to see if the demand is there, how it could happen, and what it would look like, particularly as it relates to the aquatics center, but will be bringing that at a later date and probably program that through federal dollars but let you know more as that comes up.

2.2 CVB Amended By-laws.
No comments.
2.3 Tax on rental cars at the airport.
Council Member Kreun asked if that money would be used for some type of
advertising at the Airport. Council Member Gershman stated that money is going to be used to promote tourism in Grand Forks which will hopefully end up in renting more cars.

2.4 Budget amendments - Payback Emergency Fund.
The city auditor explained what they can do here - when we had the flood of 1997
they anticipated large sums of money coming back from FEMA and when they settled in 2005 they had some receivables on the books and had also received some additional payment from FEMA and did reimburse them $1.2 million of uncovered cost and still had an additional receivable sitting on the books and the intention of this transfer is to clean up the City's Emergency Fund and take it out of a negative status which means those funds that had costs that weren't completely covered by our FEMA reimbursement have to put money into our Emergency Fund simply to zero it out at the end of the year so we are not carrying a large negative on the books. Fairly easily done by the General Fund, fairly easily done by the Storm Sewer Fund and fairly easily done by the Waterworks Fund; the Sanitary Sewer Fund, however, had a significant amount that wasn't covered and had about a $3.6 million gap.

Since information sent out to council now confident that will not cause us any rate increase over the future because last week we received another $900,000+ from the ND State Health Department for some work we had been doing under SRF loans and also had a balance of about $1.6 million and sitting at about $2.7 million balance in the Wastewater Fund; and have set a policy that we want 25% balance of operating costs in the Wastewater Fund which would be a million, and we can reduce the $3.6 by $1.7 and down to $1.9 million.

In talking with Mr. Feland in the operations of that facility he doesn't anticipate that we are going to be completely fully functional even in the following year that they could save somewhere in the range of $500 to maybe more, $1,000 next year, which would go back to pay this which would not cause any rate increase and anticipates the Wastewater Fund generally over-performs on revenue and somewhat under-expends on expenditures so in '07 would have the same situation and get this fully paid back without causing a rate increase in the Wastewater Fund, and the additional benefit of that is that we get all of the money back to the Water Fund, and that we had loaned some money to the Alerus for parking, and by about '08 or '09 that fund will be fully paid back and you will have your full construction reserve again in that utility fund.

He stated if approved would like them to do it retroactively so the books can be clean; and didn't think would have any issue with the auditors and really just setting up those dollar amounts and the 3 funds are going to pay their own. (A correction will be made in the staff report where duplicate pages were made on pages 35 and 36)

2.5 Application for Class 3 (Off and/or On Sale Beer and Wine) license from
Capone's, LLC, 3615 Gateway Drive.______________________________
It was noted this is the former Fire Island location. Council Member Hamerlik
asked if applicant had to be a resident of the city to have an alcoholic beverage license. Mr. Swanson stated we have no such requirement, a number of licenses are held by out of town residents, out of state residents and would be his opinion that you would not have the authority to restrict license ownership or issuance to in-town residents. (Address:??

2.6 Application for transfer of Class 1 (General On/Off Sale Alcoholic Beverages) by M & J Properties, LLC dba Babylon., 9 N. 3rd St._
No comments.

2.7 Appointment to the Emergency Management Board.
Council Member Kerian stated that Joe Simon is currently on the Board, the County did some advertising to see if there were any other interested parties and there weren't; and Mr. Simon is willing to serve and has done a good job, very knowledgeable with a number of those emergency areas.

2.8 Lease agreement with Park District for Lincoln Drive Park area of the Greenway.___________________________________________________
No comments.

2.9 Project Concept Report for Project No. 5703, paving 47th Avenue South (S. Washington St. to Belmont Road).___________________________________
No comments.

2.10 Amendment No. 2 to engineering services agreement with Webster, Foster and Weston for Project No. 5703, District No. 608A, paving 47th Avenue South (S. Washington to Belmont Road)._____________________________
No comments.

2.11 Cost Participation, Construction and Maintenance Agreement for Project No. 5703, paving 47th Ave.S. (S. Washington St. to Belmont Road).______
No comments.

2.12 Cost Participation, Construction and Maintenance Agreement for seal coat of U.S 81 from Gateway Drive to I-29.________________________________
Additional maps was presented by engineering department. Council Member
Gershman asked when this project will start and end, disruption and if lane closures, so businesses can prepare. Cindy Voigt, asst. city engineer, stated they had a public informational meeting, that notices were sent to areas on both sides of the project, project will be bid February 17 and seal coating will be done during warmer temperatures (July). When the project is scheduled, will sent out letters as part of noise variance they receive from the Health Dept., and expect about 2 nights and theory is to work at night and disrupt businesses the least - very quick project, worst part of the project will be during the day when they have to do the temporary and permanent striping, and that will be an inconvenience for a couple days but should go much quicker than the overlay.

2.13 Plans and specifications for Project No. 5890, District 287, watermain on 40th Ave.S. (2500-2700 Blocks).___________________________________
No comments.

2.14 Plans and specifications for Project No. 5702, paving 40th Ave.S. (S. 20th St. to Reummele Road)._______________________________________________
No comments.

2.15 Create special assessment district for Project No. 5829, District No. 617, paving Southern Estates 4th Addn.________________________________
Replacement maps were presented. No comments.

2.16 Create special assessment district for Project No. 5940, District No. 620, paving S. 20th Street (40th Ave.S. to 44th Ave.S.).____________________
Council Member Kerian asked when this project is done, how much of 20th will
be left between 32nd and 47th to pave; Rusten Roteliuk, project engineer, stated there won't be anything left, will connect 40th with existing pavement.

2.17 Transportation Improvement Plan (TIP).
No comments.

2.18 Request from Widseth Smith Nolting & Assoc. on behalf of Easter Seals Goodwill North Dakota for final approval (fast track) of Replat of Lot A of Replat of Lot 2, Block D of Replat of Lot 12, Block 1, Landeco Addn. to the city of Grand Forks, ND (loc. east of S. Washington St. between 36th Ave.S. and 38th Ave.S.)__________________________________________________
No comments.

2.19 Petition from Grand Forks Land LLC and RPSI LLC to vacate portion of S. 16th St. adjacent to Lot 1, Block 1, Stadter Second Addn. (loc. west of S. Washington St. and south of 44th Ave.S.)______________________________
No comments.

2.20 Request on behalf of Housing Authority for preliminary approval of plat of Promenade Third Resubdivision, being a replat of Lots 1 through 18, Block 1, and Lots 1 and 2, Block 4, Promenade First Addn. (loc. north of 8th Ave.N. and east of N. 55th St. and to include a variance from Section 18-0907 Layout of additions and subdivision, subsection 5(E).___________________________
No comments.

2.21 Request on behalf of Southern Estates LLP for preliminary approval of an ordinance to amend the zoning map to exclude from Southern Estates PUD (Planned Unit Development), Concept Development Plan, Amendment No. 5, and to include within Southern Estates PUD (Planned Unit Development), Concept Development Plan, Amendment No. 6, all of Columbia Park 24th and 26th Addns., Columbia Park 29th Resubdiv., all of Southern Estates First, Second, Third, Fourth and Fifth Addns., and also to include unplatted portions of the S Half of Section 21, T151N, R50W of the 5th P.M. (loc. east of Columbia Road between 36th Ave.S. and 47th Ave.S.)_________________
No comments.

3. INFORMATION ITEMS

3.1 Portfolio Management/Portfolio Summary as of December 31, 2005.
Information only.

6. MAYOR AND COUNCIL MEMBER COMMENTS

1) Council Member Brooks stated last week talked about work/planning session called for this Wednesday at 5:00 p.m., and asked if they could receive an update on that item. Mr. Duquette stated this week's work session re. Lake Agassiz Water Authority is big project, fairly complex policy development that they would like the council to review, water issue is a complex thing and working together to educate ourselves

Council Member Christensen stated they have been briefed on this project by Mr. Burian some time ago and received some information, and would like to get information before coming to the meetings so are in a position to ask some questions; want to make sure they get enough information before asked to commit any future resources of this community for something that may happen.

Mr. Duquette stated they are trying at this point is work with the council to help all of us understand from a policy standpoint what are our needs 10 to 50 years for future water if we were to have a drought, lot of questions and issues they need to be discuss related to funding, and has to take into consideration what our citizenry are facing at this point, still paying for a dike and water rates that may be a bit high and have to take those things into consideration as they make this planning so it is learning process for us to figure this out, and will get as much information to you as can.

2) Council Member Kerian stated she didn't make any comments last week about the casino, and wanted to reiterate her stand on that, that she doesn't see it fitting into this community and in the kinds of jobs we have, respect other council members decisions about wanting more information - and did not speak to Mr. Glassheim's points because she does not think it is up to the City to use public funds either to support this or to speak against it, that getting good information and about getting an attorney does make sense, but applauds those citizens who are getting involved and trying to help people get informed and that is the right way to go and that is what she would rely on for information in the community about that issue.

She stated she has heard some good things about the senior rider and dial-a-ride and asked Mr. Feland is he could comment about how that program is going. Mr. Feland stated that they started on Monday, Grand Forks Taxi, running all of the dial-a-ride Monday through Saturday and also senior rider during same time periods and after the first week really haven't had any real complaints, always have issues and concerns no matter what kind of service running, and after first week went better than anticipated and will continue to monitor it. They will provide quarterly review during the first year or two of the program.

Council Member Kerian asked what happens with street maintenance by schools, and if they treat that any differently for ticketing cars around schools when there are storm cleanups. Mr. Feland stated the street department will ticket only when doing street maintenance, and areas around schools part of neighborhood and not treated any differently.

3) Council Member Gershman welcomed Joshua and Maria to Grand Forks, they will be taking over Babylon, that Joshua opened up a JT Cigarro in Fargo and did nice operation and congratulated them and wished them well.

4) Howard Swanson, city attorney, reported that he had received notice today that the Governor appointed a Bismarck attorney, Steve Storslee, as the mediator on the annexation proceedings for the Kindness Animal Hospital, Dr. Odegaard, appointment effective December 29; Mr. Storslee has not yet set up his schedule as to the proceedings, and will keep council advised.

ADJOURN

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

Respectfully submitted,



John M. Schmisek
City Auditor