City Council

October 16, 2014 MINOT CITY COUNCIL – SCHEDULED MEETING – 6:30 P.M. ROLL CALL Members Present: Frantsvog, Frey, Hatlelid, Lehner, Miller, Olson, Schuler, Seymour, Shomento. Members Absent: Berg, Connole, Jantzer, Pankow Mayor Barney presiding. PLEDGE OF ALLEGIANCE Mayor Barney led the City Council in the Pledge of Allegiance. ORDINANCE NO. 4898 - ADOPTING A ONE YEAR MORATORIUM RELATING TO OPIOID TREATMENT PROGRAMS, INCLUDING PROGRAMS LICENSED –PURSURANT TO CHAPTER 75-09.1-10 OF NORTH DAKOTA ADMINISTRATIVE CODE – FIRST READING – APPROVED Alderman Hatlelid moved the City Council place Ordinance No. 4898 on first reading, adopting a one year moratorium relating to opioid treatment programs, including programs licensed pursuant to Chapter 75-09.1-10 of the North Dakota Administrative Code. Motion seconded by Alderman Lehner and carried by the following roll call vote: ayes: Frantsvog, Frey, Hatlelid, Lehner, Miller, Olson, Schuler, Seymour. nays: Shomento. Alderman Miller asked if the proposed ordinance is standard to other communities who have these clinics. Kelly Hendershot, the Assistant City Attorney, stated she used West Fargo’s moratorium as a reference when drafting the ordinance for the City. She stated the ordinance is not identical to West Fargo’s but similar. She concluded by saying the ordinances put in place for moratorium backs the resolution already passed, and this ordinance will allow the City to address zoning of such clinics before building permits are issued. Whereupon a vote was taken on the above motion by Alderman Hatlelid, seconded by Alderman Lehner. Alderman Hatlelid moved the City Council pass Ordinance No. 4898 on first reading. Motion seconded by Alderman Lehner and carried by the following roll call vote: ayes: Frantsvog, Frey, Hatlelid, Lehner, Miller, Olson, Schuler, Seymour. nays: Shomento. WAIVER OF CONFLICT OF INTEREST – NDIRF REPRESENTATION – APPROVED Alderman Frantsvog moved the City Council acknowledge the City is unaware of any conflict of interest with Smith Bakke representing both the City of Minot and Smith Bakke, the City waives any conflict of interest with Smith Bakke should a conflict arise or develop; and further authorize the Mayor to sign a waiver of conflict of interest with Smith Bakke on the City’s behalf. Motion seconded by Alderman Hatlelid and carried by the following roll call vote: ayes: Frantsvog, Frey, Hatlelid, Lehner, Miller, Olson, Schuler, Seymour, Shomento. nays: none RESOLUTION NO. 3339 - CITY OF MINOT TO GO ON RECORD AS FIRMLY OPPOSED TO THE RELOCATION OF THE MAIL PROCESSING OPERATIONS IN MINOT – APPROVED Alderman Hatlelid moved that the City Council adopt Resolution No. 3339 establishing the City goes on record as firmly opposed to the relocation of the mail processing operations in Minot. Motion seconded by Alderman Frey and carried by the following roll call vote: ayes: Frantsvog, Frey, Hatlelid, Lehner, Miller, Olson, Schuler, Seymour, Shomento. nays: none AMEND LEASE AGREEMENTS – DOWNTOWN PARKING RAMPS – APPROVED Alderman Miller moved that the City Council approve the agreements for the downtown parking structures; and further authorize the Mayor to sign the documents on the City’s behalf. Motion seconded by Alderman Hatlelid.  October 16, 2014 Upon question by Alderman Frantsvog, the Finance Director, Cindy Hemphill stated this will not change the City’s contribution and will not cost the City additional money; however, this does allow for an amendment of the sources of funds. She noted if Cypress chose to approach Magic Fund, it would be an entirely separate matter. Ms. Hemphill clarified that it is more than the leases being amended and there are other documents outlined in this action. Alderman Frantsvog asked about the outstanding bills referenced in the memo from Matt Sloan and Ed Gambee with Construct ND. He asked if the amendment being proposed would assist in the outstanding bills being paid in order to avoid a lien on the property. The Finance Director stated there are numerous bills due to contractors and subcontractors, but all pay estimates submitted to the City have been paid. She said there are costs that have been incurred that have not been submitted to the City due to a difference of opinion between the contractor and the subcontractors. Ms. Hemphill stated she is hopeful that this amendment will provide the developer with the means to approach their financing agency to receive additional funds to pay subcontractors. Alderman Frey asked for an explanation of 9 year and 99 year lease agreements and how it differs from the original agreement. The Finance Director explained the original agreement had a 4 year lease to develop and purchase option, for airspace ownership above the parking structure. She stated changing to a 99 year lease, they would continue to lease from the City instead of owning airspace. She noted going from a 4 year lease to a 9 year lease is giving them additional time to complete both structures. Ms. Hemphill continued by saying apartment and retail are still a part of the project and extending the lease to 9 years is giving them more time to develop residential and commercial space and ensure it is inhabitable. She stated when the project is substantially complete as stated in the agreement, it will convert to a 99 year lease rather than a purchase option. Alderman Frantsvog asked if this revision would help the process to start moving again or if this was just one step in the process. The Finance Director stated her opinion is this is just one step, and with the signing of documents it will take 30-60 days for the developer to get financing in place. She said they will need to contact subcontractors and pay those subcontractors as well as possibly needing to look for new subcontractors. Upon questioning by Alderman Frantsvog, the Finance Director stated the City has paid a little over $2 million of local funds on this project. Alderman Lehner expressed his concern with tying up the City in such a long lease. He stated if these are the means to get the parking structures done, the City should finish the structures and the developer can work on the additional funds needed for the other part of the structures. Alderman Miller stated in his opinion, this was a 2 part matter consisting of a parking garage and downtown revitalization. He stated the City was caught up in revitalization of downtown with all the new projects. He expressed his support with moving forward in the project stating that downtown business owners and employees are looking to the City to get this project completed. Alderman Miller expressed his frustration in the timeline for completing the project and stated they needed to look at the overall picture of the downtown development project, which includes parking structures. Alderman Lehner stated he hopes things progress if this is granted, and the City needs to re-evaluate if the progress is taking too long, or take other steps if needed to get downtown back to as normal as can be. The City Manager stated the City has worked closely with downtown businesses and they have asked the City to monitor the timeline and progress of the construction schedule to get back on track. Whereupon a vote was taken on the original motion by Miller, seconded by Alderman Hatlelid and carried by the following roll call vote: ayes: Frantsvog, Frey, Hatlelid, Lehner, Miller, Olson, Schuler, Seymour, Shomento. nays: none APPROVE PLANS AND SPECIFICATIONS AND CALL FOR BIDS – 55TH CROSSING SANITARY LIFT  October 16, 2014 STATION (3965) – APPROVED Alderman Olson moved that the City Council approve the plans and specifications for a portion of the 55 th Crossing Sanitary Lift Station project and authorize a call for bids. Motion seconded by Alderman Lehner and carried by the following roll call vote: ayes: Frantsvog, Frey, Hatlelid, Lehner, Miller, Olson, Schuler, Seymour, Shomento. nays: none ADJOURNMENT There being no further business, Alderman Miller moved that the meeting be adjourned. Motion seconded by Alderman Lehner and carried unanimously. The meeting was adjourned at 4:30p.m. ATTEST: APPROVED: _________________________________ Lisa Jundt, City Clerk Chuck Barney, Mayor