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PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF GRAND FORKS, NORTH DAKOTA
October 3, 2005

The city council of the city of Grand Forks, North Dakota met in the council chambers in City Hall on Monday, October 3, 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, Christensen, Kerian, Kreun - 7; absent: none.

St. Michael's Elementary School, Kindergarten and Grades 1 and 2, led the council in the pledge of allegiance to the flag, students accompanied by Nicole Manson and Jenna Zavoral.

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:
He thanked entire community for the support at lat week's Rally for Relief, over $50,000 was raised for Hurricane Katrina relief efforts, and a special thanks to public safety personnel, i.e., Fire Fighters Local 1099 and Fraternal Order of Police, and thanks to all individuals who donated their time and efforts
Congratulations to the community for being named one of the 100 best communities for young people, and thanks and recognition to the city council, the schools and scores of organizations and individuals around the community who had a part in Grand Forks being named as one of the top 100 communities. He stated they are calling on a cabinet for young people which will look at issues including everything from childhood nutrition to after school programs, anti-abuse substance efforts in our community
He stated it was great fun this weekend with Homecoming activities and well managed and safe homecoming; and congratulations to the UND football team.
He mentioned several proclamations for this next weekend:
That he proclaimed October 5 as International Walk to School Day in Grand Forks.
That he proclaimed October 8 as Military Appreciation Day in support of our military and their families from the Air Force Base and from the ND Army National Guard.
That he proclaimed October 9 as Leif Erickson Day in recognition of Leif Erickson, his fellow Norse seafarers and the warm relationship we have with our Norwegian relations, and good time with Mayor of Sarpsborg in town to visit with business, University and school leaders to mark the birth of the Grand Forks Chapter of the Norse Federation and to finalize the sister-city relationship that was begun in our chambers over three years ago.

ADOPT RESOLUTION IN SUPPORT OF HURRICANE
VICTIMS

The proposed resolution of the city of Grand Forks, North Dakota to adopt/mentor the City of Biloxi, Mississippi through the rebuilding and recovery efforts following the devastation of Hurricane Katrina was presented to the city council.

Council Member Brooks stated he would like to see a budget for this, that there is a great deal that can be done by phone but should have a fiscal plan as they go into this. Council Member Gershman stated it was premature for us to set a budget, that there is going to have to be more legwork done by Congressman Pomeroy and once we have an idea of who they may want to see and maybe a fact finding mission from Grand Forks, thinks we need to hold expenditures as low as we can but cannot draw a budget until we know what kind of requests they may have from us because it will be mostly information that could be done via e-mail or by phone. Mayor Brown stated a large part of the City's role is to get the names of all the principals, school districts, park people and contact information so that when they call us we have that information and have many people in Grand Forks that are volunteering to go down there and help if they can so have contact information available for them.

It was moved by Council Member Hamerlik and seconded by Council Member Gershman to adopt the resolution of the City of Grand Forks to adopt/mentor the City of Biloxi, Mississippi: Document No 8765 - Resolution.

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 resolution adopted.

MONTHLY FLOOD PROTECTION UPDATE

Al Grasser, city engineer, reported on various phases of flood protection:
Phase II - contractor completion dates are end of October or early November to get majority of their work done and this phase constitutes about four major locations: one along North 3rd Street behind the Chamber and north of that, spot at Belmont and 15th Avenue South, Belmont Coulee and couple locations in Sunbeam Addn., those are floodwalls. They are doing some final grading and seeding, etc. and that should be done by the end of this month.
Phase III contractor has been working all summer long and made good progress because the council saw fit to do advance funding on that project, getting ready to install floodwalls and have majority of the work done on the southend drainway closure. He stated there is one item that may start to impact schedules is that there is a national shortage of cement.
Phase IV has been awarded and having pre-construction conference this week or next to get a sense of how the contractor wants to proceed, this is our last phase and should be completed by the end of 2006.

Greenway: He reported that people are anxious to use the trail systems in the greenway but have to remind people that some of these are still in construction zones and encourage people to stay out of those areas that are posted by the contractor. He reported that the City has been awarded $7,000 by the Garrison Conservancy Diversion District for the Southend Boat Ramp, along with some of the other contributions we are getting much of that work paid for. He noted they will be doing some prescribed burning this fall in the area of the old Koinonia barrow site on back side of Elmwood Drive, doing that in preparation to be able to prep for some of the natural grasses and wildflower plantings and will be preceded by some public announcements and being coordinated with the fire department.

He noted irrigation lines are going in the downtown area along with the labyrinth which is in the process of being constructed in the greenway.

Council Member Brooks asked for report on total cost, what we have spent to date and where we are at with it. Mr. Grasser stated the Corps hasn't updated it based on the East Grand Forks final bids, some of that information will be made available this week. He stated that on some of the flood protection betterments, looks like we are in the neighborhood of about $2 to $2.3 million yet that is uncommitted on the flood protection side and about $1.1 million left uncommitted on the greenway side, but wants to be cautious because until we find out how the Corps is dealing with some of our lands acquisitions and rights of way there may be some offsetting balances to those dollars.
Council Member Christensen asked that they include in the report plans for the committed funds and of the uncommitted funds. Mr. Grasser stated on the greenway side a lot of that money used for removal of utilities, abandonment of the different utilities on the wet side of the levee, vast majority of that work has been completed. Council Member Christensen stated if we have $1.4 or $1.7 uncommitted, would like to start discussion as to how they could allocate that money for the betterment of the greenway and would look forward for some community input, staff recommendation and then allocate it.

HOLD PUBLIC HEARING ON 2006 COMMUNITY
DEVELOPMENT BLOCK GRANT PROGRAM

The staff report from the Urban Development Office relating to the 2006 Community Development Block Grant Program, with recommendation to hold a public hearing, approve the preliminary 2006 CDBG and HOME Program budget, and open a thirty-day comment period.

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

Funding for the nine applications were considered in the final ranking: United-Way GF/EGF, $200,000; Prairie Harvest, $140,000; Office of Urban Development, $250,000; Shelter for Homeless, Inc., $170,000; Greater Grand Forks Senior Citizens Assoc., $43,700; Red River Valley Community Action, $300,000; Office of Urban Development (administration), $260,000; and set aside for potential assistance for a community affected by Hurricane Katrina, $261,300; for a total of $1,625,000 in CDBG Funding; and Office of Urban Development, $340,000, and Red River Valley Habitat for Humanity, $25,000 for a total of $365,000 in HOME funding. It was noted that if additional CDBG program income or if reallocation of CDBG dollars to Hurricane Katrina affected community does not occur, the following projects will receive funding: Office of Urban Development, $75,000 and Easter Seals/Goodwill ND, Inc., $60,000.

It was moved by Council Member Gershman and seconded by Council Member Hamerlik to approve the preliminary 2006 CDBG and HOME Program budget and open a thirty-day comment period. Carried 7 votes affirmative.

ADOPT ORDINANCE NO. 4093, RELATING TO DOMESTIC
WINERY ON-SALE AND OFF-SALE ALCOHOLIC BEVERAGE
LICENSES

An ordinance entitled "An ordinance amending Sections 21-0106, 21-0205 and 21-0210 of the Grand Forks City Code relating to domestic winery on-sale and off-sale alcoholic beverage licenses", which had been introduced and passed on its first reading on September 19, 2005, was presented and read for consideration on second reading and final passage.

Howard Swanson, city attorney, reported that he has drafted the amendments that were included in the original reading with respect for the various samplings so now the sampling limits are consistent across those licenses that are allowed to do sampling, otherwise this draft is in order for final approval based upon the previous discussion of the council.

Council Member Gershman asked to be recused from voting on this issue, and it was so moved by Council Member Brooks and seconded by Council Member Hamerlik. Carried 6 votes affirmative.

It was moved by Council Member Kerian and seconded by Council Member Kreun to amend the ordinance for businesses allowed to provide samples of wine, cordials and beer as a promotion to those classes which are allowed to dos so (Class 2, Class 14 and Class 15) to include complimentary samples of wine in no greater than two (2) fluid ounces and that the total of all samples not exceed eight (8) fluid ounces per customer, and beer as a promotion for the sale of the same so long as each sample does not exceed two (2) fluid ounces in volume per customer and the total of all samples not exceed eight (8) fluid ounces per customer. Carried 6 votes affirmative.

Upon call for the question of adoption of the ordinance, as amended, and upon roll call vote, the following voted "aye": Council Members Brooks, Hamerlik, Glassheim, Christensen, Kerian, Kreun - 6; voting 'nay": none; Council Member Gershman recused. Mayor Brown declared the motion carried and the ordinance adopted.

ADOPT ORDINANCE NO. 4094, RELATING TO ALCOHOLIC
BEVERAGE CONTROL, LOCATIONS WHERE LICENSED
PREMISES PROHIBITED

An ordinance entitled "An ordinance amending Section 21-0215 of the Grand Forks City Code relating to alcoholic beverage control - locations where licensed premises prohibited", which had been introduced and passed on its first reading on September 19, 2005, was presented and read for consideration on second reading and final passage.

Council Member Gershman asked to be recused from voting on this issue, and it was so moved by Council Member Kerian and seconded by Council Member Kreun. Carried 6 votes affirmative.

Mr. Swanson stated that the ordinance that was introduced for first reading eliminated the section that had the definitive distances from lot lines where churches, schools, etc. and that is the actual draft before you, and what was distributed to council last Friday was an alternative draft that if you were inclined to include those various uses as a consideration they are there for you to do so, and is more of a subjective analysis, not as clear cut as having definitive distances, and was asked to provide that type of a draft to you, if you are inclined to adopt that as your final amendments you would need to move to amend the ordinance as first introduced to include these additions.

Council Member Christensen stated the second line of Mr. Swanson's proposed language, where it reads "the issuance of a new license or the renewal of an existing license" and moved Mr. Swanson's draft as to the modification of 21-0215(1) with the exception that after the words "..new license" in the second line we delete the words "…or the renewal of an existing license" and the rest would be appropriate. Council Member Kerian seconded the amendment to the ordinance.

After further discussion and upon call for the question on the amendment, and upon voice vote, the motion carried 6 votes affirmative; Council Member Gershman recused.

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


TABLE ORDINANCE TO AMEND ZONING MAP TO
INCLUDE WITHIN WEST CAMPUS PUD (PLANNED
UNIT DEVELOPMENT) CONCEPT DEVELOPMENT PLAN,
AMENDMENT NO. 1, ALL OF WEST CAMPUS RESUBDIVISION
INDEFINITELY

An ordinance entitled "An ordinance to amend the zoning map of the city of Grand Forks, North Dakota., to rezone and exclude from the West Campus PUD (Planned Unit Development), Concept Development Plan, and to include within the West Campus PUD (Planned Unit Development), Concept Development Plan, Amendment No. 1, all of West Campus Resubdivision to the city of Grand Forks, North Dakota", which had been introduced and passed on its first reading on August 15, 2005, was presented and read for consideration.

Mr. Swanson stated that because the ordinance had been introduced on first reading, do need to take some action, either table for a period certain, table it indefinitely or defeat it.

Council Member Hamerlik stated because of the University's request to have this removed from the agenda, moved to table the ordinance indefinitely; Council Member Gershman seconded the motion. Carried 7 votes affirmative.

ADOPT ORDINANCE NO. 4095, ANNEXING PORTION OF
NW QUARTER OF NW QUARTER OF SECTION 27, TOWNSHIP
151 NORTH, RANGE 50 WEST OF THE FIFTH PRINCIPAL
MERIDIAN

An ordinance entitled "An ordinance to annex the south 512 feet of the north 702 feet of the east 420 feet of the west 690 feet of the Northwest Quarter of the Northwest Quarter of Section 27, Township 151 North, Range 50 West of the Fifth Principal Meridian, Grand Forks County, North Dakota", which had been introduced and passed on its first reading on September 19, 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 acting city auditor reported that publication of the notice to the public that this petition for annexation had been filed with the city council had been published as required.

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

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.

ADOPT ORDINANCE NO. 4096, ESTABLISHING VARIOUS
FEES AND CHARGES

An ordinance entitled "An ordinance amending Sections of the Grand Forks City Code relating to the establishment of various fees and charges", which had been introduced and passed on its first reading on September 19, 2005, was presented and read for consideration on second reading and final passage.

Mayor Brown opened a public hearing on this ordinance, there were no comments and the public hearing was closed.

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 RESOLUTION VACATING ROADWAY AND
UTILITY EASEMENT IN BLOCK 1, KANNOWSKI'S FIRST
ADDITION

The acting city auditor reported that pursuant to instructions by the city council after having received a petition to vacate the right of way and utility easement lying within Lot 4, Block 1 and Lot r, Block F, Kannowski's First 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, there were no comments and the public hearing was closed.

It was moved by Council Member Gershman and seconded by Council Member Glassheim 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. 8770 - Resolution.

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

ADOPT RESOLUTION VACATING R/W AND UTILITY
EASEMENT IN BLOCKS 1 AND 2, COLUMBIA PARK
22ND ADDITION (FORMERLY SOUTH 42ND STREET)

The acting city auditor reported that pursuant to instructions by the city council after having received a petition to vacate the right of way and utility easement lying within Lots B and C, Block 1 and Lot 1, Block 1, Columbia Park 22nd Addition, formerly known as South 42nd Street, 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 Gershman 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. 8771 - Resolution.

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


AUTHORIZE ISSUANCE AND AWARD SALE OF
REFUNDING IMPROVEMENT BONDS, SERIES 2005B AND
GENERAL OBLIGATION TAX INCREMENT BONDS,
SERIES 2005C

The staff report from the finance and administrative services director relating to authorizing the issuance and award the sale of A.) $2,195,000 Refunding Improvement Bonds, Series 2005B, and B.) $705,000 General Obligations Tax Increment Refunding Bonds, Series 2005C, with recommendation to adopt resolutions: A.) adopt resolution relating to selling, establishing terms and directing issuance of definitive improvement warrants and providing for and appropriating special assessments for the support and maintenance of said funds, and Resolution directing the issuance of bonds and prescribing the terms and covenants thereof. B.) adopt resolution relating to $705,000 General Obligation Tax Increment Bonds, Series 2005C (which is an advance refunding of GO Tax Increment Bonds, Series 1994A (GFG Debt) and 1995B (GFG and Warehouse Apts.); selling, establishing terms and directing issuance of definitive improvement warrants on the funds of various improvement districts and providing for and appropriating special assessments for the support and maintenance of said funds.

Brenda Krueger, Springsted Incorporated, reported on the sale of the two bond issues, that they took bids on both series of bonds earlier this morning and recommended award of both series. She stated the first series of bonds are Refunding Improvement Bonds, 2005B, those bonds are being used to finance various street and utility projects in the city; that the City received 3 bids, and lowest bid was from Piper Jaffray and the true interest rate is a 4.23% and is slightly higher than their original estimate but the market has come up a little in the past month so is consistent with market conditions; the General Obligation Tax Increment Refunding Bonds, Series 2005C, and the purpose of that bond issue along with available debt service funds that are accumulated tax income revenues was to provide interest cost savings to the City as well as shorten the final maturity of two existing bond issues. The City did receive 3 good bids, Isaac Bond Investments is the lowest bidder at a 3.38%, this is lower than what they had originally estimated and as a result have increased your present value benefit by about $10,000, and were also able to reduce the principal amount of the bonds by $10,000, so the par amount of the bonds is now $695,000.

She stated as part of the bond process the City applied for a rating from Moody's Investors Service, that there was discussion about the future rating of the City, they have been very impressed with the management of the city, very keen on the strong economic conditions and the continuing growth in the tax base, and what was relayed to them is that as those trends continue positively that as we get to the end of the financing of the dike improvements, at that point the long term debt of the City will start to decline and that seems to the point at which the rating agency will seriously take a look at potentially upgrading the City's rating again, and looking at potentially 2007, 2008, 2009.

She read for the benefit of the council and public a couple comments that were in rating report: " the double 3A ratings are based on the City's strong regional economy, sound management strategies that continue to successfully guide the City through the extensive development and redevelopment needed as a result of the spring 1997 Red River flood. It also has well managed finances that continue to provide amble acquidity and a leverage depth position which is expected to remain high due to additional capital needs related to the major flood abatement initiative and then moderate over the long term as the tax base grows." She stated in going through the report it comments about the recent trend in the growth in the tax base, the strong regional economy of this area. Under the financial operations she read from the report: "..Moody's believes that the City will continue to maintain healthy financial operations due to the support of ample general funds reserves demonstrated prudent fiscal management and stable revenue growth with additional revenue raising flexibility". She congratulated the council on how well they manage your community and how exciting of time it is for the city with the strong economic growth. She stated she recommends the adoption the resolutions and award both series of bonds.

Council Member Hamerlik stated that a double 3A is what they have been proud of the management of our funds and various decisions that have been made and improving from excellent to very excellent needs to be said; and for the public. Ms. Krueger stated the City has gone out for public bid and have received 3 competitive bids from the underwriting community, the bids are not far apart, very consistent with current market conditions and as a result you will be able to repay warrants that were used to pay for street and utility improvements. She stated there are only two ratings that are higher than a double A3 rating, anything in a double A rating category.

Mr. Swanson stated the key is the 2005B, that indicates the year that the bond is originally sold, the refunding has two implications, 1) it is refunding the warrants that have been sold and 2) it also implies that a future date that bond is callable; that these are both new issue bond, not refunding of a prior issue bond, if they were, it would have a series 2001 or 1999 or some prior year, but both are new issues.

ADOPT RESOLUTION ESTABLISHING TERMS AND
DIRECTING ISSUANCE OF DEFINITIVE IMPROVEMENT
WARRANTS ON THE FUNDS OF VARIOUS IMPROVEMENT
STREET AND UTILITY DISTRICTS AND PROVIDING FOR
AND APPROPRIATING SPECIAL ASSESSMENTS FOR THE
SUPPORT AND MAINTENANCE OF SAID FUNDS

The city auditor presented an affidavit showing publication in the official newspaper of the City of a Notice of Bond sale of $2,195,000 Refunding Improvement Bonds, Series 2005B (the Bonds) of the City, bids for which were to be considered at this meeting as provided by resolution adopted October 3, 2005. The affidavit was examined and approved and ordered placed on file.

The city auditor reported three (3) sealed bids for the purchase of the Bonds had been received from the following institutions at or before the time stated in the Notice of Bond Sale, and the bids were then opened and publicly read and considered, and were all found to conform to the Notice of Bond Sale to be accompanied by the required security, and the purchase price, interest rates and net interest cost under the terms of each bid were found as follows: Piper Jaffray & Company, price of $1,279,304.85, with a true interest rate of 4.2367%; Isaak Bond Investments, Inc., price of $2,173,547.50 with a true interest rate of 4.2844%; and Bernardi Securities Incorporation and North American Capital Markets at a price of $2,167,649.25 with a true interest rate of 4.3744%.

Council Member Gershman introduced the following resolution and moved its adoption: Document No. 8722 - Resolution.

The motion for the adoption of the foregoing resolution was duly seconded by Council Member Brooks and upon vote being taken thereon the following voted in favor: Council Members Brooks, Hamerlik, Glassheim, Gershman, Christensen, Kerian, Kreun - 7; ands the following voted against the same: none; whereupon the resolution was declared passed and adopted and was signed by the Mayor and attested by the City Auditor.


ADOPT RESOLUTION DIRECTING THE ISSUANCE OF
$2,195,000 REFUNDING IMPROVEMENT BONDS, SERIES
2005B AND PRESCRIBING THE TERMS AND COVENANTS
THEREOF

Council Member Gershman then introduced the following resolution and moved its adoption: Document No. 8773 - Resolution.

The motion for the adoption of the foregoing resolution was duly seconded by Council Member Brooks and upon vote being taken thereon the following voted in favor: Council Member Brooks, Hamerlik, Glassheim, Gershman, Christensen, Kerian, Kreun - 7; and the following voted against the same: none; whereupon the resolution was declared passed and adopted and was signed by the Mayor and attested by the City Auditor.

ADOPT RESOLUTION AUTHORIZING, SELLING AND
ESTABLISHING THE TERMS OF GENERAL OBLIGATION
TAX INCREMENT REFUNDING BONDS, SSERIES 2005 AND
CREATING A SINKING FUND THEREFOR

The city auditor presented an affidavit showing the publication in the official newspaper of the City of a Notice of Bond Sale of $705,000 General Obligation Tax Increment Refunding Bonds, Series 2005C (the Bonds) of the City, bids for which were to be considered at this meeting as provided by resolution adopted October 3, 2005. The affidavit was examined and approved and ordered placed on file.

The city auditor reported that three (3) sealed bids for the purchase of the Bonds had been received from the following institution at or before the time stated in the Notice of Bond Sale, and the bids were then opened and publicly read and considered, and were all found to conform to the Notice of Bond Sale and to be accompanied by the required security, and the purchase price, interest rates and net interest cost under the terms of each bid were found to be as follows: Isaak Bond Investments, Inc., at a price of $706,816.60 with a true interest rate of 3.3813%; Bernardi Securities Incorporated and North American Capital Markets at a price of $698,655.00 with a true interest rate of 3.6655%; and RBC Dain Rauscher Inc. at a price of $700,498.15 with a true interest rate of 3.7167%.

Council Member Gershman introduced the following resolution and moved its adoption, which motion was second by Council Member Brooks: Document No. 8774 - Resolution.

Upon vote being taken thereon, the following voted in favor thereof: Council Members Brooks, Hamerlik, Glassheim, Gershman, Christensen, Kerian, Kreun - 7; and the following voted against the same: none; whereupon the resolution was declared duly passed and adopted.

DENY REQUEST FOR FUNDING FROM UND ENTRE-
PRENEURSHIP INTERNSHIP PROGRAM

The staff report from the Office of Urban Development relating to request from UND Entrepreneurship Internship Program, with recommendation to approve Growth Fund Committee recommendation to fund request out of the City's economic development fund (2163).


S.Loberg, 506 North 4th Street, #2, and Nick Hacker, 1709 2nd Avenue North, spoke in support of the program.

Dr. Steve Moser stated they couldn't have done what they did so far without the City's support and is asking for a continuation of that support, and would invite City to help them do that and if that would involve modification to their strategy in terms of percentage of funds provided for them each year, they are open to that too.

Council Member Glassheim spoke in support of the program; that the Growth Fund Committee recommended that we not fund this project from the Growth Fund but thought it was a good and successful program and recommended that the council fund the request out of other economic development funds that are not allocated to the Growth Fund. He stated this is a successful program, good for UND students, 14,000 of our 50,000 population, good for UND-City relationships, good for the small business climate and the building of an entrepreneurial city and the cost is quite modest. If we want to modify the request and 70% of the internship should be in the primary sector, and if we want to require annual visits from participating employers and student, reasonable request and if want to put a 3-year deadline on this project, not unreasonable to give them time to build an endowment to fund it in different ways but ought not to turn down another successful program.

Council Member Kerian stated when it furthers the purposes of the city we do make investments, and right thing to do where it furthers the purpose of the city; the citizens of this community certainly have been in favor of economic development, that she would support something with limits on it if that will help it get through tonight, but thinks the concept is something she would not want to lose.

Council Member Brooks stated he is a strong supporter of the students and the University, but when looking at this program and listened to comments tonight, another successful program, highly rated nationally, but doesn’t think anyone up here doesn't support and isn't impressed with the work that has been done, but the issue before us is one of the fiscal impact, and is concerned that the University, either through the Alumni Association or the University, isn't funding this because this program looks like it helps businesses and students and give them a tie to the town, but sees that a function of the University, not that we don't support it with words but when looking at the dollars and most important source of funds for this is the University itself.

Council Member Glassheim stated the request was for $25,000 a year for three years and moved to approve the recommendation with the understanding that funding would end at the end of three years and that 70% of the internships should be in primary sector businesses rather than retail. Council Member Kerian seconded the motion.

Upon call for the question and upon a roll call vote, the following voted "aye": Council Members Glassheim, Kerian - 2; voting "nay": Council Members Brooks, Hamerlik, Gershman, Christensen, Kreun - 5. Mayor Brown declared the motion failed.

TABLE MATTER OF CHANGES TO SALES TAX TO
NEXT COMMITTEE OF THE WHOLE MEETING

The staff report from the finance and administrative services director relating to matter of streamlined sales tax required City Code changes, with recommendation to introduce necessary ordinance changes to put Grand Forks in compliance with streamlined sale tax legislation, as passed by the state legislature in the 2005 session.

It was moved by Council Member Gershman and seconded by Council Member Christensen to table this matter until the next committee of the whole meeting. Carried 7 votes affirmative.

AWARD BIDS FOR PROJECT NOS. 5817 AND 5841, LIFT
STATION 16 UPGRADE AND LIFT STATION 22 VENTILATION

The staff report from the engineering department relating to bids for Project Nos. 5817 and 5841, Lift Station No. 16 Upgrade and Lift Station No. 22 Ventilation, with recommendation to award the work for Schedule B, General to Wanzek Construction, Inc. in the amount of $378,500.00; Schedule B, Mechanical to McFarlene Sheet Metal, Inc. in the amount of $13,495.00, and Schedule B, Electrical to Strata Corporation in the amount of $116,735.00.

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

APPROVE AMENDMENT NO. 1 TO ENGINEERING SERVICES
AGREEMENT FOR PROJECT NOS. 5817 AND 5841

The staff report from the engineering department relating to Amendment No. 1 to Engineering Services Agreement with Webster, Foster & Weston for Project No. 5817, Upgrade Lift Station No. 16 and Project No. 5841, Lift Station No. 22 Ventilation, with recommendation to approve Amendment No. 1 with Webster, Foster & Weston for construction engineering services in the amount 0of $61,470.00 for Project No. 5817, Upgrade Lift Station No. 16 and Project No. 5841, Lift Station No. 22 Ventilation.

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

APPROVE BUDGET AMENDMENT, FIRE DEPARTMENT

The staff report from the fire department relating to budget amendment, with recommendation to approve budget amendment to purchase capital items for Homeland Security (total of $84,000) monies from Department of Homeland Security (DHS) FY2005 State Homeland Security Grant Fund.

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

APPROVE BID FOR COMPOST TURNER FOR SANITATION
DEPARTMENT

The staff report from the director of public works relating to Sanitation Department compost turner bid, with recommendation to approve bid for compost turner from Swanson Equipment Corporation in the amount of $88,554.30 as the lowest and best bid.

It was moved by Council Member Kreun and seconded by Council Member Kerian 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 bid accepted.

APPROVE BILL LISTING AND ESTIMATE SUMMARY

Voucher Payment Listing No. 05-18, dated September 30, 2005 and totaling $2,628,919.04, and Estimate Summary in the amount of $1,097,294.13 were presented and read.

It was moved by Council Member Kerian and seconded by Council Member Kreun that these bills 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 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 SEPTEMBER 6, 2005

Typewritten copies of the minutes of the city council held on Tuesday, September 6, 2005, were presented and read. It was moved by Council Member Gershman and seconded by Council Member Kreun that these minutes be approved as read. Carried 7 votes affirmative.

MAYOR AND COUNCIL COMMENTS.

1) Council Member Kreun thanked everyone who participated in Mardi Gras last week, and appreciate everybody that was there and do our best to do something for Biloxi.

2) Council Member Brooks stated he has had several people ask him about the Neighborhood Task Force, and that it had been tabled for one month and will come back to council for action. He asked if liquor licenses are renewed annually. Mr. Swanson reported the licenses run from January 1 to December 31 and actual application forms go out in November or early part of December for completion and reviewed by staff and acted upon in December.

3) Council Member Brooks reported that they receive the Estimate Summary the night of the meeting, and usually have some questions and asked if it was possible to get this in their packets on Friday. Mr. Grasser stated that if did that it would probably introduce about a week's delay for the contractor, from when do estimates until getting a check cut.

4) Council Member Hamerlik stated that he sat in on a meeting having to do with signage and it was to go back to Planning and Zoning, needed some legal work, about a month ago and asked for status on signage.

Mr. Potter, city planner, reported this item will be before Planning and Zoning this Wednesday for preliminary review and it will be on the committee of the whole agenda a week from today.
Mr. Swanson stated he received that information today and has not had a chance to review it, and they were asking for more redrafts so not in a position to tell you that by the next committee of the whole meeting that those redrafts will have been reviewed by Planning and Zoning. He stated it is on the agenda for Planning and Zoning but that some of the questions they have asked him to respond to will not be completed by this Wednesday and doesn't know what the status of the Planning and Zoning's action will be on that.

5) Council Member Christensen stated that if the administration is going to bring forward initiatives in the future or suggest that an applicant or supplicant making a request to this council and the administration supports the request, suggested that administration suggest an area of funding that they employ in advance and advocate the source of funds that should be deployed to pay for the request. We seem to be getting a lot of requests from various organizations and institutions and as they discuss them here, it begins the conversation of advancing the scope of traditional city government. But for the City of Grand Forks to become a secondary source of funding to the University of North Dakota after this council without the initial concurrence of the administration sought to cut 9 mills and started sending a different message to our citizens but the issue of $75,000 or $25,000 isn't the issue, the issue is beginning the path of becoming a secondary source of funding for deserving organizations and programs at the University of North Dakota, and that is why 5 of them voted against the entrepreneurship application, and as we move forward we seem to have various initiatives that seem to advance the good will of this community.

6) Council Member Glassheim asked when something is coming forward on the casino resolution. Council Member Christensen stated the casino resolution has been drafted, and has been forwarded to Mr. Duquette and if nobody has any comments, the casino resolution will go forward to Mr. Duquette tomorrow and he can advance it to the casino constituents and will be on the next committee of the whole agenda. Council Member Glassheim stated he wants to announce that he will start working on a resolution in opposition to any casino in this town.

He stated the request for the entrepreneurship internships didn't come from the administration, came from the Growth Fund Committee and which unanimously sent forward the recommendation that the council find additional funds elsewhere for it, so didn't come from the administration , that it has nothing to do with the 9 mills that we cut since the money source was recommended as 2163 which is sales tax funds which we have in the budget and are not scheduled to be spent on anything else. He stated there are other people besides our city staff asking for money and that is hardly something to be upset about but rather a sign that we are a progressive community, needs are growing and our capacities are growing and that there will be demands on us to go beyond the traditional fire and police fundings.

6) Mr. Swanson stated he comments on those two bond issues were a little bit general, if they were a refunding bond the resolution will declare it as a refunding bond and in this case the tax increment is a refunding and his comments should have been with respect to the improvement bond as opposed to the tax increment bond, but if an advanced refunding it will say that.

ADJOURN

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



Respectfully submitted,



Candi Stjern
Acting City Auditor

Approved:
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Michael R. Brown, Mayor