PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF GRAND FORKS, NORTH DAKOTA August 4, 2008

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1 PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF GRAND FORKS, NORTH DAKOTA August 4, 2008 The city council of the city of Grand Forks, North Dakota met in the council chambers in City Hall on Monday, August 4, 2008 at the hour of 5:30 o clock p.m. with Mayor Brown presiding. Present at roll call were Council Members Bjerke, McNamara, Glassheim, Gershman (teleconference), Christensen, Bakken, Kreun - 7; absent: none. Mayor Brown announced that anyone wishing to speak to any item may do so by being recognized prior to a vote being taken on the matter, and that the meeting is being televised. Mayor Brown announced that Tyler Wicken will lead the council in the pledge of allegiance to the flag, that Tyler was an 8th grade student when he won the DAV-VFW Patriots Essay Contest, and was the North Dakota state winner and went on to the National and took 32nd place in the national competition out of 115,000 submissions. Tyler led the council in the pledge and also read his essay, "Why I Am An American Patriot". Mayor Brown commented on various items during the past week and upcoming events: Congratulations to Mayor Stauss as his team won in all categories of chili cook-off and this year his team came in second in the Mayor's Race; and wanted to congratulate Greater Grand Forks Young Professionals, fantastic turnout, great planning and organizing and appreciate all the work their group does for the community and thanks to all the teams. Tomorrow night is the National Night Out Event at the Purpur Arena, starting at 4:30 p.m. with free hamburgers for the first 1,000 people, special activities from fire and police departments and a lot of good information for families. This is an event communities take part in to raise awareness about issues particularly concerning our young people and this year's theme is "give alcohol and drugs a going away party". Thanks to the organizing committees for putting this together. This week is the 8th Annual Neighborhood Networks Week and focus on providing technology and learning opportunities for those living in our properties that are open to the entire community; celebration all week and free lunch for children of all ages from 11:30 to 12:30 at the LaGrave Playground at 834 4th Avenue South. The Best Pizza in Town competition is going on at The Link which is across from the Senior Center, everyone is welcome and a freewill donation to support our youth programs. There are more events that will take place all week long so take the opportunity to check out the neighborhood centers and find out how much of an impact they have in our community. This week we are proud to announce the first concert of the season - Blues on the Red - this Saturday from 5:00 to 10:00 p.m. at Town Square, and is a joint production of the Convention & Visitors Bureau and Canad Inns. Thanks to organizers who created this event. He invited everyone to attend the American Cancer Society Cancer Action Network Fight Back Express pancake breakfast on Sunday, August 10, 2008 from 9:00 to 11:00 a.m. at Town Square. He stated he was displeased to read a letter in the Herald about the mistreatment of a young lady and her daughter who were treated rudely while riding their bikes on roads - nowhere in our community values do we find rudeness, bikes do have rights and responsibilities with other vehicles on the road and needs to be emphasized - respect for each other will remain great safety for everyone. PRESENTATION BY LAW ENFORCEMENT EXPLORER POST 2038

2 Sgt. Zimmel of the police department reported Exploring is a Career Development Career Exploration Program under the overall umbrella company of learning for life and is affiliated with the Boy and Girl Scouts of America and Venture Scouts. It is designed for high school and college age people - 14 through 20 - who are interested in particular type of career field and gives them contacts within that career field a certain amount of training and exposure to develop that interest and make them a better employee in that field. Grand Forks Police Department has been proud to sponsor Law Enforcement Explorer Post 2038 since He introduced representatives of the Explorer Post who gave information about their activities. They stated that the City has extended support through its departments, whether police department or fire department, public works, PSAP, in helping kids learn and feel that connection to the community, and said thank you. Joyce Belbas and Sue Shirek gave brief discussion on National Night Out, will be a night of family fun and to celebrate Grand Forks' largest block party at Gambucci and Purpur Arena tomorrow from 4:30 to 8:30 p.m. and includes Grand Forks, East Grand Forks, Grand Forks Air Base, Grand Forks County and is a celebration of things that involve us being a better America, better patriot and better citizen - making connections between law enforcement and the community - fire department and community - members that make those relationships better bond and stronger community. There are fun things for everyone to do and is open to the public and encourage everybody to come out. ADOPT ORDINANCE NO TO ANNEX PART OF NW QUARTER SW QUARTER OF SECTION 8, T151N, R50W OF 5TH P.M. TO BE PLATTED AS PART OF JOHNSON'S 4TH ADDITION An ordinance entitled "An ordinance to annex that part of the Northwest Quarter of the Southwest Quarter of section 8, Township 151 North, Range 50 West of the Fifth Principal Meridian to be platted as Lot E, Block 1 of the Replat of Lot 2, Block 1, Johnson's 4th Addition and Lot D, Block 1 of the Replat of Lot 3, Block 1, Johnson's 4th Addition, except lands previously annexed to the city of Grand Forks, ND", which had been introduced and passed on its first reading on July 21, 2008, and upon which public hearing had been scheduled for this evening, was presented and read for consideration on second reading and final passage. The deputy city auditor exhibited affidavit of publication of notice to the public that this petition for annexation had been filed with the city council and 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 Bjerke, McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 7; voting "nay": none. Mayor Brown declared the ordinance adopted. ADOPT RESOLUTION VACATING SCREENING EASEMENT IN BLOCK 1, CONGRESSIONAL SECOND RESUBDIVISION The deputy city auditor reported that pursuant to instructions by the city council after having received a petition to vacate a 15-foot screening easement across Lots 1 through 9, Block 1, Congressional Second Resubdivision, being a replat of Lot 6, Block 1, University Technology Park Addition, more particularly described as the easterly 15 feet of the westerly 25 feet of said Lots 1-9, Block 1, Congressional Second Resubdivision, the required legal notice had been published

3 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 Glassheim and seconded by Council Member Bjerke that we find and determine an insufficiency of protest to the proposed vacation, and introduce and adopt the following resolution, which was presented and read: Document No Resolution. Carried 7 votes affirmative. HOLD PUBLIC HEARING AND APPROVE APPLICATION BY PRODUCTION SPECIALTIES CORPORATION FOR FIVE-YEAR PROPERTY TAX EXEMPTION The deputy city auditor reported that pursuant to the provisions of Section of the North Dakota Century Code, notice had been given to the public that the city council would meet this evening to consider the application of Production Specialties Corporation dba PS Doors, 1150 South 48th Street, for a five-year declining property tax exemption of the property taxes to the proposed 24,000 sq.ft. manufacturing facility, an addition to the 32,000 sq.ft. manufacturing plant at this location on Lots A, B, Block 1, Replat of Lot 1, Maier's Fourth Resubdivision to the city of Grand Forks, North Dakota, which the applicant will use in the operation of his business and further that no protests or grievances had been filed with her office. Mayor Brown opened the public hearing and asked if there was anyone present who had comments to make on this matter; there were no comments and the public hearing was closed. It was moved by Council Member Kreun and seconded by Council Member Bakken that the City of Grand Forks grant the request for an abatement of the real property taxes to be levied and assessed against the Production Specialties Corporation project for a period of five years on a declining exemption on the proposed addition; 100% for the first year, 80% for the second year, 60% for the third year, 40% for the fourth year and 20% for the fifth year. Upon roll call the following voted "aye": Council Members McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 6; voting "nay": Council Member Bjerke - 1. Mayor Brown declared the motion carried. APPROVE COMPREHENSIVE ANNUAL FIANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2007 AND INDEPENDENT AUDITOR'S REPORT The staff report from the Audit Committee that met on July 22, 2008 and considered the matter of the City's comprehensive annual financial report for the year ended December 31, 2007 and recommended accepting the auditor's report and the CAFR, and authorized final payment to Brady, Martz and Associates, P.C., subject to final approval by the State Auditor's Office. recommendation be approved. Carried 7 votes affirmative. APPROVE ABATEMENT OF 2007 TAXES ON PROPERTY

4 AT RD AVENUE SOUTH The staff report from the city assessor relating to application for abatement for 2007 taxes by James and Linda Oliver, rd Avenue South, with recommendation to the Board of County Commissio0ners that the application be approved as submitted. recommendation be approved and further that we adopt the findings, conclusions and recommendations as prepared by the city attorney. Upon roll call the following voted "aye": Council Members Bjerke, McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 7; voting "nay": none. Mayor Brown declared the motion carried. This item was held. RIVERSIDE POOL, JOINT POWERS AGREEMENT GRANT PRELIMINARY APPROVAL TO L.P.O, INC. FOR CLASS 1 ALCOHOLIC BEVERAGE LICENSE; AND REFER MATTER OF PROCEDURE FOR APPLICATION TO COMMITTEE The staff report from the city auditor relating to application for Class 1 (General On & Off Sale Alcoholic Beverage) license by L.P.O., Inc Library Circle, with recommendation to approve the request contingent upon review and approval by the city attorney. It was moved by Council Member Kreun to approve the recommendation and that names of management be presented for background checks prior to opening of the business, and that either Chief Packett or Mr. Duquette review regulations and bring those to the Service/Safety Committee. The motion died for lack of a second. It was moved by Council Member Bakken that this matter be referred to the Service/Safety Committee for review and return to the city council. Council Member McNamara seconded the motion. Larry O'Connell, Reynolds, ND stated the reason that there are no managers listed on the application is because he didn't want to hire managers without knowing he would be granted a liquor license, that he has an empty building and that it would be four months before the business would start, and can't hire a manager until he knows where he is at. Howard Swanson, city attorney, reviewed the process - that what we have done in the past is very consistent, not unusual to have a preliminary application from a restaurant, bar or hotel/motel that is seeking to get preliminary approval for an alcoholic beverage license in advance of either construction or moving forward with the project; that we essentially provide it with preliminary approval, subject to final approval by a series of departments, police, fire, health, building inspections and city attorney. Managers are required to have the same qualifications as the applicant or the owner as far as criminal records; we have not had a situation where an owner has come forward, received preliminary approval and later come back with information on a manager where we have found the manager having significant criminal history or background; if that were to occur, that would come back to the council. That he has no objection bringing it to committee and can get into more detail on the review, but essentially even at this point, they would have preliminary approval but would still be subject to all of the department reviews, including a final review of the background checks of any managers that are provided. Annual review of applicants

5 would not go to council unless a problem occurs, every fall when the applications go out, the license holders fill out the information, identifying managers and we do another review of each and every manager as well as license holders at that time. The council may not have known all those details as most of that is done administratively, there is nothing on this application that has been inconsistent with what has been done in the past and also as he understands the motion that made sometime ago to deny a license was not based upon a manager but rather based upon the qualifications of one of the shareholders in the corporation, but both the applicant and the manager need to have the same essential qualifications. Council Member Glassheim moved to amend the motion by substituting that we give preliminary approval to this application subject to review by city attorney and refer to committee for further review of procedure on the general applications. Council Member Bakken seconded the amendment to the motion. Council Member Christensen suggested that the committee when reviewing the general application form to look at Section (1) (B) which states that if the applicant is a corporation, that the manager of the licensed premises must be resident of the U.S. and of good moral character, and officers, directors and stockholders must be persons of good moral character - that he would be curious as to where beyond the words "of good moral character" do we see that in this ordinance, that you can't be convicted of a felony if want to be a manager or individual applicant but so we don't get into where we are arbitrary or capricious, we should be thinking about drafting statutes so that if one of these shareholders or director or one of the officers would fail as an individual applicant, that is a reason to deny the license, but otherwise it is just an opinion as who is of good moral character vs. who isn't and should consider that; and if going to review it, lets review our unwritten criteria and eliminate it. Council Member Gershman asked to be recused from voting on this issue, and it was so moved by Council Members Bakken and Kreun. Carried 6 votes affirmative. Upon call for the question and upon voice vote, the motion carried 5 votes affirmative, Council Member Bjerke voted against the motion; Council Member Gershman recused.. COLUMBIA ROAD APPROVE APPLICATION FOR TRANSFER OF LIQUOR LICENSE BY GM GRAND FORKS, LLC, 1930 SOUTH The staff report from the city auditor relating to application for transfer of Class 4 (Food & Beverage Establishment) license by GM Grand Forks, LLC, 1930 South Columbia Road, with recommendation to approve the request contingent upon review and approval by the city attorney. Council Member Gershman asked to be recused from voting on this issue, and it was so moved by Council Members Bakken and Kreun. Carried 6 votes affirmative. recommendation be approved. Carried 6 votes affirmative; Council Member Gershman recused. APPROVE FUTURE ASSESSMENT DISTRICT PROJECT NO , SEWER DISTRICT NO , FOR NEWLY ANNEXED PROPERTY The staff report from the city auditor relating to future assessment district Project No , District No , sanitary forcemain along South 48th street from 17th Avenue South to 32nd

6 Avenue South for newly annexed property from June June, 2008, with recommendation to approve assessment to bring all properties to the same level as having the original assessment in Council Member Kreun stated he wanted to call attention that there was a revised item for this project with revised drawing, and moved that this recommendation be approved. Council Member Bakken seconded the motion. Carried 7 votes affirmative. APPROVE FUTURE ASSESSMENT DISTRICT PROJECT NO , PAVING DISTRICT NO , FOR NEWLY ANNEXED PROPERTY The staff report from the city auditor relating to assessment district Project No , Paving District No , Johnson's 4th Addition paving (11th Avenue South/South 40th Street/15th Avenue South) for newly annexed property in the future assessment district. This property is Lot 5, Block 1 of McEnroe's 1st Addition and a 140 ft. x ft unplatted strip of land south of and parallel to Garden View Drive, with recommendation to include newly annexed property within the special assessment district No and authorize subsequent assessment for Johnson's 4th Addition paving project to newly annexed property. recommendation be approved. Carried 7 votes affirmative. APPROVE FUTURE ASSESSMENT DISTRICT PROJECT NO , PAVING DISTRICT NO , FOR NEWLY ANNEXED PROPERTY The staff report from the city auditor relating to assessment district Project No , District No , paving South 42nd Street, 17th Avenue South and 11th Avenue South, for newly annexed property in the future assessment district. This property is Lots 1-5, Block 1 of McEnroe's 1st Addition and a 140 ft. x ft. unplatted strip of land south of and parallel to Garden View Drive, with recommendation to include newly annexed property within the special assessment district No and authorize subsequent assessment for paving South 42nd Street, 17th Avenue South and 11th Avenue South to newly annexed property. recommendation be approved. Carried 7 votes affirmative. APPROVE DIAL-A-RIDE/SENIOR RIDER SERVICE FEE INCREASE The staff report from the director of public works relating to Dial-A-Ride (DAR)/Senior Rider Service fee increase, with recommendation to approve increasing the DAR/Senior Rider Service fee $1.00 per ride from $7.38 per ride to $8.38 per ride, and the payment is broken down with the City of Grand Forks paying $5.88 per ride and the customer/user paying $2.50 per ride, effective the July 2008 billing month. In addition and effective January 1, 2009, the City will begin the procedural process to increase the customer/user fee from $2.50 to $2.75 per ride in order to offset the $1.00 service fee increase, which will translate and break down the $1.00 service fee increase of $0.75 per ride to the City and $0.25 per ride to the customer/user. The need for the increase is based on the unexpected and extraordinary increase in the cost of fuel over the last three years. The plan will also better ensure the continuation of service without service disruption. The

7 Service/Safety Standby Committee recommended forwarding the proposal at the July 21, 2008 meeting. It was moved by Council McNamara and seconded by Council Member Kreun that this recommendation be approved. Carried 7 votes affirmative. APPROVE BEAUTIFICATION PROGRAM AND CITY- WIDE HOLIDAY LIGHTING The staff report from the Urban Development director relating to Beautification Program and citywide holiday lighting, with recommendation to allocate unobligated Beautification Program funds to the Holiday Lighting Plan at cost of $205, Council Member Christensen stated that the amount is fairly high but is two years of Beautification money and that if the council several years ago could approve painting the walls that shield the junkyard, that it is time to beautify the interior of our city and moved approval of the recommendation. The motion was seconded by Council Member Gershman. Council Member McNamara moved that we table this item until after we finalize the budget as the city auditor had stated that this is money that can be used for other things. Council Member Bjerke seconded the motion. Upon call for the question and upon roll call vote the following voted "aye": Council Member Bjerke, McNamara, Bakken - 3; and the following voted "nay": Council Members Glassheim, Gershman, Christensen, Kreun - 4. Mayor Brown declared the motion failed. After further discussion and upon call for the question on the original motion and upon roll call, the following voted "aye": Council Members Glassheim, Gershman, Christensen, Kreun - 4; voting "nay": Council Members Bjerke, McNamara, Bakken - 3. Mayor Brown declared the motion carried. APPROVE 2009 CDBG AND HOME PROGRAMS The staff report from the Urban Development director relating to 2009 CDBG and HOME Programs, with recommendation to authorize staff to proceed with the 2009 CDBG and HOME Programs per the attached budget, schedule and process recommendations from the finance and Development Committee. Council Member Bjerke stated that more of this money should be going to infrastructure and ways of being creative and putting this money into infrastructure which would free up money into other infrastructure projects and double the money, and time for certain groups that the well is dry. Council Member Christensen stated that the Mayor approved this program as to the fact that we are putting $150,000 into the Near Northside Project and that there is a shift going on to use some of these funds to contribute to the infrastructure of an LMI (Low to Moderate Income) area and will probably be doing this for the next 4 years to make a shift to improve that area with these funds. Council Member Kreun stated that we have been working for some time to direct these funds towards the infrastructure portion of it and thinks we want to continue to do that, that this is more than what we have been doing in the past and want to continue in this direction and will get to the point where can allocate more funds for these types of projects.

8 Council Member Glassheim stated he want to defend what we have been doing for non-profits for many years because it was a good idea, that the non-profit groups that have been getting this money for 25 years or more; this is additional money that comes from Washington as a block grant, federal funds, and can be used for city projects but doesn't have to be. The non-profits do a lot of good in this community, that there wouldn't have been a senior center nor city mission functioning very well if this money had been used by the City for city streets rather than for non-profits. Non-profits don't use only our money but raise additional money and grants, and that it is a wise policy to keep most of this money being given to the non-profits through competitive discussions of the committee as to what the needs of the city and the best projects are. We run $26 million through the city budget, not all from property taxes but from a number of sources and for this $2-3 or 400,000 we get plenty of bang for our buck when give it to the non-profits, both in terms of quality of life and town as well as additional structures and help to people who need it, which if not being done by the non-profits, that it might have to be done by the City at greater cost, and is wise to keep most of this money going to the non-profits. It was moved by Council Member Christensen and seconded by Council Member McNamara that this recommendation be approved. Upon roll call the following voted "aye": Council Members McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 6; voting "nay": Council Member Bjerke - 1. Mayor Brown declared the motion carried. APPROVE CAPITAL IMPROVEMENT FUNDS FOR ALERUS CENTER The staff report from the Alerus Center Commission relating to the request for additional capital improvement dollars for the Alerus Center was presented. Council Member Kreun moved to bring this to a work session or combined standby committees for a full presentation and that Mr. Duquette schedule that meeting so that all council members can attend; seconded by Council Member Christensen. Carried 7 votes affirmative. APPROVE BILL LISTING AND ESTIMATE SUMMARY Vendor Payment Listing No , dated July 31, 2008, totaling $1,397, and Estimate Summary dated July 31, 2008 totaling $1,474,222.12, were presented and read. It was moved by Council Member Bakken and seconded by Council Member Kreun that these bills be allowed and that the city auditor be authorized to issue warrants in payment of the same. Upon roll call the following voted "aye": Council Members Bjerke, McNamara, Glassheim, Gershman, Christensen, Bakken, Kreun - 7; voting "nay": none. Mayor Brown declared the motion carried and the bills ordered paid. APPROVE MINUTES July 21, 2008 Typewritten copies of the minutes of the city council held on Monday, July 21, 2008 were presented and read. It was moved by Council Member Bjerke and seconded by Council Member Bakken that these minutes be approved as read. Carried 7 votes affirmative. COMMENTS BY MAYOR AND COUNCIL.1) Council Member Bjerke asked for clarification on item relating to the Riverside Pool, Joint

9 Powers Agreement; it was referred to the Park District for their review and then back to council. 2) Council Member Glassheim asked that Service/Safety Committee look at the matter of two houses in his ward that have been under construction for two years, not painted, etc. and that there should be a time period. It was noted that the ordinance states that as long as there is an active building permit and they continue to make some progress, no designated time frame. Committee will review the regulations. 2) Council Member Christensen stated re. beautification as they beautify some walls that shielded our vision from junkyards, asked that the conditional use permits be pulled by the auditor's office and that we have them sent to our committee, Finance, as have a meeting coming up on Wednesday and will look at it but if have issues of beautification and we are in the budgeting process and think we are going to have some problems with this, and maybe some reservation of our beautification funds for enforcement of the conditional use permits. 3) Council Member Kreun reported that the Service/Safety Committee meeting scheduled for tomorrow has been cancelled for two weeks as they have to make a presentation at the County Commission. ADJOURN It was moved by Council Member Bakken and seconded by Council Member Kreun that we adjourn. Carried 7 votes affirmative. Respectfully submitted, Approved: Michael R. Brown, Mayor Saroj Jerath Deputy City Auditor

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