City Council

February 13, 2015 MINOT CITY COUNCIL – SCHEDULED MEETING – FEBRUARY 13, 2015 AT 12:00 P.M. ROLL CALL Members Present: Connole, Frey, Hatlelid, Hedberg, Jantzer, Lehner, Miller, Olson, Schuler, Seymour, Shomento Members Absent: Berg, Frantsvog, Pankow Mayor Barney presiding. PLEDGE OF ALLEGIANCE Mayor Barney led the City Council in the Pledge of Allegiance. JOINT POWERS AGREEMENT – CITY OF MINOT AND MINOT PARK DISTRICT – APPROVED Alderman Jantzer moved the Council approve the Joint Powers Agreement between the City of Minot and the Minot Park District with amended changes as presented; and further authorize the Mayor to sign the agreement on the City’s behalf. Motion seconded by Alderman Lehner. The Finance Director stated the joint powers agreement modifications presented by park representatives are not substantial. She stated changes include some language recommended by the Park’s Bond Counsel. The Joint Powers Agreement is in line with the Home Rule Charter regulations and gives the City authorization to collect tax for the Park District. Upon questioning by Alderman Frey, the Finance Director stated the Joint Powers agreement will be null if the public vote does not pass. Whereupon a vote was taken on the above motion by Alderman Jantzer to approve the Joint Powers Agreement between the City of Minot and the Minot Park District with the amended changes as presented; and further authorize the Mayor to sign the agreement on the City’s behalf. Motion seconded by Alderman Lehner and was carried by the following roll call vote: ayes: Connole, Frey, Hatlelid, Hedberg, Jantzer, Lehner, Miller, Olson, Schuler, Seymour, Shomento. nays: none ORDINANCE NO. 4940 - AMENDING AND REENACTING SECTIONS 28 ½ - 103, 28 ½ - 104, 28 ½ - 108 IN CHAPTER 28 ½ , ARTICLE IV, RELATING TO AN ADDITIONAL ONE PERCENT SALES AND USE TAX AND DEDICATION OF PROCEEDS OF THE ADDITIONAL ONE PERCENT SALES AND USE TAX TO THE MINOT PARK DISTRICT – FINANCING AND CONSTRUCTION OF AN AQUATICS AND RECREATIONAL CENTER AND PARK DISTRICT OPERATIONS – FIRST READING – APPROVED Alderman Lehner moved the Council place and pass Ordinance No. 4940 on first reading amending and reenacting Sections 28 ½ - 103, 28 ½ - 104 and 28 ½ - 108 in Chapter 28 ½, Article IV, relating to an additional one percent sales and use tax and dedication of proceeds of the additional one percent sales and use taxes to the Minot Park District for financing and construction of an aquatics and recreational center and Park District operations. Motion seconded by Alderman Shomento. The Finance Director reviewed history of tax collection for 2008-2014 to show the breakdown. She stated the City will get the same amount in taxes in the future as they do under the current structure. She also said the 2 nd penny for NAWS tax was not codified, but is understood by the State Tax Department and the City Finance Department. Upon questioning by Alderman Jantzer in regards to the termination dates of current taxes, the Finance Director stated the 1 st penny sales tax will sunset when flood control for the City is in place. She noted the 2 nd penny sales tax is set to expire 10 years from its onset but this will be determined and affected by the NAWS status at the time. Alderman Frey stated this is a good idea of the Park Board for this facility but it is important to put it to a vote to be decided on by the people. He expressed his support to get this item on the ballot. Alderman Miller also expressed his support to get this item on the ballot.  February 13, 2015 Upon questioning by Alderman Hedberg on the current Park budget, Ron Merrit, Director of the Minot Park District stated the current budget is $8 million. He broke down the budget saying $5.7 million comes from property tax. He stated he will review the current bond payment obligation and anticipates no tax levy will be needed. Ron Merritt stated if the vote is passed, sales tax collection will begin in October and property tax levy will be suspended at that point. He said the bond obligations in place would be property tax levied if the need was there, but noted it was not the intention of the Park District to go this route. Upon questioning by Alderman Jantzer in regards to estimating contingency costs, Mr. Merritt stated he has added that factor into pricing for contingencies. He said he is using a construction manager to mitigate risk and a value engineering scenario to ensure project costs are not exceeded. Upon questioning by Alderman Miller on the start date, completion date and location of the project, Ron Merritt stated the estimated completion time from ground breaking is 18 months or two years from when the final design is completed. He noted no location has been selected as he felt it prudent to have the vote approval before buying land. Whereupon a vote was taken on the above motion by Alderman Lehner to place Ordinance No. 4940 on first reading amending and reenacting Sections 28 ½ - 103, 28 ½ - 104 and 28 ½ - 108 in Chapter 28 ½, Article IV, relating to an additional one percent sales and use tax and dedication of proceeds of the additional one percent sales and use taxes to the Minot Park District for financing and construction of an aquatics and recreational center and Park District operations. Motion seconded by Alderman Shomento and was carried by the following roll call vote: ayes: Connole, Frey, Hatlelid, Hedberg, Jantzer, Lehner, Miller, Olson, Schuler, Seymour, Shomento. nays: none Alderman Lehner moved the Council pass Ordinance No. 4940 on first reading. Motion seconded by Alderman Shomento and was carried by the following roll call vote: ayes: Connole, Frey, Hatlelid, Hedberg, Jantzer, Lehner, Miller, Olson, Schuler, Seymour, Shomento. nays: none RESOLUTION NO. 3392 - SCHEDULING OF SPECIAL ELECTION – TUESDAY APRIL 21, 2015 – REGARDING QUESTIONS AMENDING CITY ORDINANCE 4703 – MINOT PARK DISTRICT FUNDING FOR FINANCING AND CONSTRUCTION OF AN AQUATICS AND RECREATION CENTER AND PARK DISTRICT OPERATIONS - APPROVED Alderman Hatlelid moved the Council adopt Resolution No. 3392 for the Scheduling of a Special Election Date of Tuesday, April 21, 2015, Regarding the Questions Amending City Ordinance 4703 (A Codified Ordinance Enacting New Provisions of Sections 28 ½-101 Through 28 ½-109, Inclusive, Article IV (City Sales and Use Taxes) of Chapter 28 ½ (Taxation) of the Minot Code of Ordinances, and Thereby Establishing and Regulating a City Sales and Use Tax Under the Home Rule Charter of the City of Minot, North Dakota) and Reenacting Sections 28 ½-103, 28 ½-104 and 28 ½-108 in Chapter 28 ½, Article IV, Relating to An Additional One Percent Sales and Use Tax and Dedication of Proceeds of the Additional One Percent Sales and Use Tax to the Minot Park District for Financing and Construction of an Aquatics and Recreational Center and Park District Operations. Motion seconded by Alderman Jantzer. Upon questioning by Alderman Seymour in regards to the strategy used to determine the date of election, Ron Merritt stated they took into consideration the length of winter and the need for an indoor facility. Whereupon a vote was taken on the above motion by Alderman Hatlelid to adopt Resolution No. 3392 for the Scheduling of a Special Election Date of Tuesday, April 21, 2015, Regarding the Questions Amending City Ordinance 4703 (A Codified Ordinance Enacting New Provisions of Sections 28 ½-101 Through 28 ½-109, Inclusive, Article IV (City Sales and Use Taxes) of Chapter 28 ½ (Taxation) of the Minot Code of Ordinances, and Thereby Establishing and Regulating a City Sales and Use Tax Under the Home Rule Charter of the City of Minot, North Dakota) and Reenacting Sections 28 ½-103, 28 ½-104 and 28 ½-108 in Chapter 28 ½, Article IV, Relating to An Additional One Percent Sales and Use Tax and Dedication of Proceeds of the Additional One Percent Sales and Use Tax to the Minot Park District for Financing and Construction of an Aquatics and Recreational Center and Park District Operations. Motion seconded by Alderman Jantzer and was carried by the following roll call vote: ayes: Connole, Frey, Hatlelid, Hedberg, Jantzer, Lehner, Miller, Olson, Schuler, Seymour, Shomento. nays: none  February 13, 2015 BALLOT LANGUAGE – APPROVED Alderman Miller moved the Council approve/adopt the ballot language presented. Motion seconded by Alderman Connole. The Finance Director stated language was included in the ballot to address elimination of 100% of property tax assessed for the Park District. She stated Park Bond Counsel has reviewed and approved the language change. Upon questioning by Alderman Schuler on using “suspension” vs. “elimination” until the bond is paid off, Mr. Merritt stated there was a debate on the ballot language. He stated the Park had new language approved by Bond Counsel. He concluded by saying voting citizens need to understand the intent to eliminate the property tax. Whereupon a vote was taken on the above motion by Alderman Miller to approve and adopt the ballot language with changes as presented. Motion seconded by Alderman Connole and was carried by the following roll call vote: ayes: Connole, Frey, Hatlelid, Hedberg, Jantzer, Lehner, Miller, Olson, Schuler, Seymour, Shomento. nays: none RESOLUTION NO. 3391 - CORRECTING ZONING LEGAL DESCRIPTION FOR ORDINANCE NO. 4903 – URIJAHS 1ST ADDITION, LOTS 1-3 - APPROVED Alderman Hatlelid moved the Council adopt Resolution No. 3391, correcting the zoning legal description in Ordinance No. 4903 from R1 to RA for Urijahs 1st Addition, Lots 1-3. Motion seconded by Alderman Lehner and was carried by the following roll call vote: ayes: Connole, Frey, Hatlelid, Hedberg, Jantzer, Lehner, Miller, Olson, Schuler, Seymour, Shomento. nays: none ADJOURNMENT There being no further business, Alderman Miller moved the City Council meeting be adjourned. Motion seconded by Alderman Lehner and carried unanimously. Meeting adjourned at 12:37 p.m. ATTEST: _________________ APPROVED: _____________________ Lisa Jundt, City Clerk Chuck Barney, Mayor