City Commission

MEETING MINUTES OF THE CITY COMMISSION OF THE CITY OF DEVILS LAKE, ND AUGUST 05, 2024 The regular meeting of the Devils Lake City Commission was held on August 05, 2024 with the following members present: President Moe and Commissioners Hach, Knowski, Pierce, and Uhlenkamp. MEETING ITEMS 1) Approval of Minutes – July 15, 2024 Commissioner Pierce made a motion to approve the meeting minutes from the July 15, 2024 City Commission meeting. Commissioner Knowski seconded the motion, and the motion was carried unanimously. 2) Approval of Minutes – July 18, 2024 - Special Budget Meeting 3) Approval of Minutes – July 25, 2024 - Special Budget Meeting 4) Approval of Minutes – August 1, 2024 - Special Budget Meeting Commissioner Pierce made a motion to table Agenda Items 2 ,3, & 4 under “Meeting Items”. Commissioner Uhlenkamp seconded the motion, and the motion was carried unanimously. AWARDS AND PROCLAMATIONS PUBLIC HEARINGS – 5:30 PM 1) Recommendation from Planning Commission – Conditional Use at 701 5th Ave SE The City Assessor provided a briefing on the application from Amazon regarding their interest in establishing a temporary distribution center in the parking lot of the old K-Mart building at 701 5th Ave NE. Representing Amazon, Jason Magnus, said this temporary distribution center would be a part of Amazon’s “last mile” operations. He said this could create around 20 flex-drivers in our region. Mr. Magnus stated the products needing distribution would arrive in the evening or early morning on 26-foot box trucks. Priorities and their needs for a location were speed of market capabilities, access to restroom facilities and power, and a paved surface for implementation. The specific location in the parking lot of the old K-Mart building met their needs. Mr. Magnus gave an overview on how the flow of traffic and loading of packages by flex drivers would occur. He said the goal is for this to serve as a “last mile hub” for their customers. Commissioner Knowski asked what negatives Amazon hears from the communities that have these pilot distribution centers. Mr. Magnus said any complaints they hear have to do with the exterior aesthetic, which they feel they’ve addressed through decorative paneling they’ve installed on the temporary structures. Commissioner Hach asked if they do background checks on their drivers. Mr. Magnus they do a standard background check given they use their personal vehicles. President Moe asked about the temporary structure not contributing to the tax base. Mr. Magnus said the structure would be personal property of Amazon’s and that North Dakota does not tax personal property. President Moe asked why they are insistent on the location of the parking lot of the old K-Mart building. Mr. Magnus said a paved surface is a necessity and they need adequate space, which other sites did not satisfy. He added that changing the selection of the site and the necessary due diligence would put Amazon out of the timelines they are seeking to meet for the pilot project, with a facility up and running for their peak season starting in October. Al Freidig, member of the Planning and Zoning Commission, addressed the City Commission. Mr. Freidig said the Planning and Zoning Commission did not recommend approval because they determined it was more appropriate in an industrial setting, not retail. He said he does not support the use of temporary storage structures by Amazon at that location for a number of reasons. He said it is along the Highway 2 corridor in town and the City has done a lot of work to clean up the Highway 2 corridor over the years. He said the project would not contribute to the tax base being a temporary structure. Brick and motor structures have gotten an increase in property taxes. He said this project would not support the community’s tax base but competes directly with local retailers. Brad Barth with Forward Devils Lake addressed the Commission. He said Amazon first addressed Forward Devils Lake in February and they reviewed multiple potential sites. He noted that it is his job to help bring businesses to town. Commissioner Pierce said that with or without this project, area residents would receive their packages in roughly the same amount of time as they do now. He said he would see it a different way if it was more of a warehouse operation and a permanent structure contributing to the tax base. Mr. Barth said this was a pilot project and could lead to a more permanent presence being established here by Amazon. Commissioner Pierce and President Moe stressed that they know Mr. Barth is just doing his job and trying to help the City. Commissioner Uhlenkamp asked what the length of time on the pilot project would be. Mr. Magnus said that with the pilot project they are looking at where they have a high demand for packages. He said the permit under consideration would be for two years. He said one of their many goals is to close the gap and meet their commitment to Prime members to get their packages delivered in a two-day period. Mr. Magnus said 60% of their sales are from small and medium-sized businesses. He also talked about their corporate – community stewardship and their disaster relief program. President Moe noted that two local retailers downtown have gone out of business, and they struggle to compete with the big corporate retailers. He said we want more physical stores in the community. President Moe said they have a responsibility to support local and buy local. He said he was in favor of the concept and the idea but not the location. Commissioner Pierce said if it was a more physical, permanent structure he would be more supportive of the idea. Commissioner Uhlenkamp said she concurred with that sentiment. Commissioner Pierce made a motion to approve the Planning and Zoning Commission’s recommendation to deny the Conditional Use Permit. Commissioner Uhlenkamp seconded the motion and the motion was carried unanimously. BID OPENINGS – 5:30 PM 1) Cabin Chassis/Flatbed The City Administrator opened bids for the Cabin Chassis/Flatbed. The bids were: Lake GM Auto Center – $64,368 Devils Lake Chrysler -$ 65,893 Devils Lake Ford – $65,529 Bissette Motors – $59,284 with snowplow excluded. Commissioner Pierce made a motion to refer the bids to the City Engineer for review. Commissioner Hach seconded the motion, and the motion was carried unanimously. VISITORS AND DELEGATIONS COMMISSION PORTFOLIOS Commissioner Pierce – Chief Bennette said all the firefighters were signed up for the Air Rescue Firefighting course. He added that they have plans the next two weeks to replace the blue streetlights on the east end of Highway 2. Commissioner Pierce said there is a dedication for the Devils Lake Soldiers Fallen Cross outside the Memorial Building at 10:30am on Friday. Commissioner Uhlenkamp – The City Engineer said all was good in the Streets Department. Commissioner Hach – The City Engineer said all was good in the Sanitation Department. The City Assessor said all was good in the Assessing Department. Commissioner Knowski – The Utilities Supervisor said all was good in the Utilities Department. President Moe – The Police Chief said they have some Computer Aided Dispatch training occurring. He said they are looking to internally fill the Detective Sergeant position in the department soon. He added that there is a future officer graduating from the academy on August 23. The City Administrator requested the release of the following funds: 1) Release of Funds – Forward Devils Lake - $55,000 Commissioner Knowski made a motion to release the funds to Forward Devils Lake. Commissioner Hach seconded the motion, and the motion was carried unanimously on a roll call vote. 2) Release of Q3 Funds – Lake Region Heritage Center - $9,639.50 Commissioner Pierce made a motion to release the funds to the Lake Region Heritage Center. Commissioner Uhlenkamp seconded the motion, and the motion was carried unanimously. The City Attorney said everything was good. OLD BUSINESS CONSENT AGENDA NEW BUSINESS 1) Approval of Preliminary 2025 Budget Statement and Salary Plan and Setting of Public Hearing Date for September 16, 2024 The City Administrator gave a briefing on the 2025 budget statement and salary plan. He thanked the Commissioners and Department Heads for all their work that has gone into forming the preliminary budget. The City Administrator said there is a one mill reduction that came from the Commission’s request at the last special budget meeting, with roughly a half mill reduced from the Library and Jobs Development Authority funds. He said that the Library had the goal of hiring a full time children’s librarian. The City Administrator said he did an analysis and that providing 5.15 mills would be enough to put forward a positive budget for the Library if they maintain their current level of staffing. He added that a couple mills from the airport were moved into the City’s General Fund due to the assumption of the Air Rescue Firefighting Mission. He said the preliminary budget has a 3% cost of living adjustment for City employees, a 4% increase in health insurance costs, and a slight restructure in the Police Department through the creation of four corporal positions. Commissioner Knowski made a motion to approve the 2025 preliminary budget statement and salary plan and setting of public hearing date for September 16, 2024. Commissioner Pierce seconded the motion, and the motion was carried unanimously on a roll call vote. 2) Capital Improvement Plan The City Administrator said they updated some numbers for the Highway 20 project next summer along with the Stromquist Paving project. He thanked the City Engineer and Assistant City Engineer for their work on the Capital Improvement Plan. The City Engineer said he is very pleased with the status of the roadways in town and the progress that has been made the last 10-15 years. President Moe said he is proud of the state of our infrastructure in town. Commissioner Pierce thanked the City Engineer for his work. Commissioner Pierce made a motion to approve Capital Improvement Plan. Commissioner Knowski seconded the motion, and the motion was carried unanimously. 3) Equipment Replacement Plan The City Administrator said the Equipment Replacement Plan is consistent with 2024 forecasts, 2025 budgeted items, and projected equipment needs for future years. He thanked the Department Heads for the work they put into the creation of this plan. Commissioner Pierce made a motion to approve the Equipment Replacement Plan. Commissioner Hach seconded the motion, and the motion was carried unanimously. 4) Five Year Exemption of Improvements to Residential Structure Commissioner Knowski made a motion to approve the five year exemption of improvements to the residential structure at 301 Dickinson Drive SE. Commissioner Pierce seconded the motion, and the motion was carried unanimously. President Moe noted that the Commission does not need to vote on a first reading of an ordinance. 5) 1st Reading of Ordinance #996 – Definitions 5.24.010 A first reading of Ordinance #996 was briefed by the City Attorney. Commissioner Knowski made a motion to approve the first reading of Ordinance #996. Commissioner Uhlenkamp seconded the motion, and the motion was carried unanimously. 6) 1st Reading of Ordinance #997 – Minors Prohibited 5.24.150 A first reading of Ordinance #997 was briefed by the City Attorney. 7) 1st Reading of Ordinance #998 – Misrepresentation of Age 5.24.151 A first reading of Ordinance #998 was briefed by the City Attorney. 8) 1st Reading of Ordinance #998 – Presumption of Licensee’s Innocence 5.24.152 A first reading of Ordinance #999 was briefed by the City Attorney. 9) 1st Reading of Ordinance #1000 – Delivery to Certain Persons Unlawful 5.24.153 A first reading of Ordinance #1000 was briefed by the City Attorney. 10) 1st Reading of Ordinance #1001 – Licensees Prohibited 5.24.155 A first reading of Ordinance #1001 was briefed by the City Attorney.  11) 1st Reading of Ordinance #1002 – Violations 5.24.230 A first reading of Ordinance #1002 was briefed by the City Attorney. 12) Resolution Authorizing Redemption – Definitive Improvement Warrant, Series 2017 Commissioner Uhlenkamp made a motion to approve the resolution authorizing redemption of Definitive Improvement Warrant, Series 2017, effectively paying off the debt associated with the Mauve Estates Tax Increment Financing District. Commissioner Hach seconded the motion and the motion was carried unanimously on a roll call vote. 13) Removal of Introductory Status – Police Chief Commissioner Pierce made a motion to remove the introductory status for Police Chief Jason Toso. Commissioner Uhlenkamp seconded the motion and the motion was carried unanimously. CITIZEN COMMENT INFORMATIONAL ITEMS The City Engineer said he reviewed the bids provided by the vendors earlier in the meeting for the truck chassis/flatbed. He said the local bidders all complied with the delivery date specified in the bid packet. He said normally the Commission will accept a bid that is up to 10% more to purchase locally and that the low local bidder would certainly meet that threshold once with outside vendor’s vehicle incurred additional costs to meet specifications. The City Engineer recommended accepting the bid from Lake GM Auto Center for $64,368. Commissioner Hach made a motion to accept the bid from Lake GM Auto Center for the truck chassis/flatbed. Commissioner Knowski seconded the motion, and the motion was carried unanimously on a roll call vote. LIST OF BILLS Commissioner Knowski made a motion to approve the list of bills 24-16. Commissioner Uhlenkamp seconded the motion, and the motion was carried unanimously. The meeting adjourned at 6:38pm. __________________________________ __________________________________ SPENCER HALVORSON JIM MOE CITY ADMINISTRATOR/AUDITOR PRESIDENT OF CITY COMMISSION