Valley City Commission Proceedings
August 21, 2018
5:00 PM Meeting, City Hall

President Carlsrud called the meeting to order at 5:00 PM.

Members present: Commissioner Magnuson, Commissioner Bishop, Commissioner Erickson.

Members Absent: Commissioner Powell.

Others Present: City Administrator Schelkoph, City Attorney Schoenack, City Auditor Richter, Public Works Accountant/Manager Jacobson, Fire Chief Retterath, Police Chief Hatcher, Building/Fire Inspector Andersen, Chad Petersen from KLJ.

Approval of Minutes

Commissioner Bishop move to approve the minutes from the August 7 and August 16, 2018 meetings, seconded by Commissioner Erickson. The motion passed unanimously.

Approval of Consent Agenda

1. Approve Raffle permit for National Barrel Horse Association ND01

Commissioner Magnuson moved to approve the consent agenda, seconded by Commissioner Bishop. The motion passed unanimously.

Public Comments

There were no public comments.

Ordinance

Approve second and final reading of Ordinance No. 1033, an Ordinance amending Title 11, Zoning
City Attorney Schoenack stated a second public hearing was held on August 15, 2018 at the Planning & Zoning Commission meeting due to substantive changes made since the first reading of the ordinance which included items such as conditional use permits for uses not listed, schools, churches; corner visibility changes made to alley access.

Commissioner Magnuson moved to approve Ordinance No. 1033, seconded by Commissioner Erickson. The motion passed unanimously.

Approve second and final reading of Ordinance No. 1034, an Ordinance Amending & Re-enacting Title 6, Police Department
City Attorney Schoenack stated language for 6-01-01 should be updated to include “and staff” to reflect that police officers and staff make up the VCPD.

Commissioner Bishop moved to approve Ordinance No. 1034 as amended, seconded by Commissioner Magnuson. The motion passed unanimously.

Approve second and final reading of Ordinance No. 1037, an Ordinance Amending & Re-enacting Title 3, Health & Sanitation
City Attorney Schoenack stated no changes were made from the first reading.

Commissioner Erickson moved to approve Ordinance No. 1037, seconded by Commissioner Bishop. The motion passed unanimously.

Approve second and final reading of Ordinance No. 1038, an Ordinance Amending & Re-enacting Title 19, Disasters & Emergencies
City Attorney Schoenack reported there were no changes made from the first reading.

Commissioner Bishop moved to approve Ordinance No. 1038, seconded by Commissioner Magnuson. The motion passed unanimously.

Resolution

Approve Resolution No. 2152, a Resolution to approve the terms and conditions set forth in the Commitment letter with the BND to Provide $3,289,400 in Financing for the local share of Phase II Permanent Flood Protection.
City Auditor Richter reported this is for the third loan the City has obtained for Permanent Flood Protection. Closing is set for September 5, 2018 for the 30 year loan. Richter stated this will be the final Bank of North Dakota loan the City is able to obtain through the State Water Commission program.

Commissioner Magnuson moved to approve Resolution No. 2152, seconded by Commissioner Bishop. The motion passed unanimously.

New Business

Present Website Project
Emma Tufte presented the new website design and reported the project came in on budget. The new site is more mobile responsive, provides efficiencies for city staff and works to more effectively convey information to the public.

Approve Visitors Committee recommendation for Image Enhancement Grant up to $15,000 for Historic Image Enhancement Grant for Erin Hannig at 142 East Main Street
City Administrator Schelkoph reported the Visitors Committee recommended approval of up to $15,000 for this project.

Commissioner Magnuson moved to approve the Historic Image Enhancement Grant up to $15,000 for 142 East Main Street , seconded by Commissioner Erickson. Commissioner Bishop thanked the Hannigs for their investment. The motion passed unanimously.

Approve Renaissance Zone Authority Board recommendation for 5 year income tax exemption and 5 year property tax exemption for the full assessed value of the property being rehabilitated at 142 East Main Street, designate it as VC-110
Jim Knutson, Chair of the Renaissance Zone Authority Board, recommends the approval for a 5 year income tax and 5 year property tax exemption for the full assessed value of this property. Commissioner Magnuson moved to approve the Renaissance Zone Authority Board recommendation for VC-110, seconded by Commissioner Bishop. The motion passed unanimously.

Consider the cost share agreement with the SWC for the Design engineering of the Phase III & IV PFP
Chad Petersen from KLJ reported this cost share agreement is for the preliminary design and geotech work for the Phase III and Phase IV Permanent Flood Protection construction work. This was approved by the State Water Commission in December 2017. A Clomr study will be conducted to see what could happen on the dry side if a wall would fail. This is required by FEMA for future permitting.

City Administrator Schelkoph recommended approval as this creates a shovel project for Phase IV when the City seeks construction funding.

President Carlsrud stated State Water Commission is more receptive to shovel ready projects to avoid committing money to projects not yet ready.

Commissioner Erickson moved to approve the cost share agreement with State Water Commission for Design engineering of Phase III & IV Permanent Flood Protection, seconded by Commissioner Bishop. The motion passed unanimously.

Consider customer credit card usage costs and surcharge
City Administrator Schelkoph recommends implementation of the credit card surcharge to cover the costs the City is occurring for their usage. Public Works Accountant Jacobson reported a 2.19% surcharge would be added for use of a credit card. The City currently accepts VISA, Mastercard and Discover. Jacobson stated auto-pay, cash and checks will continue to be available with no surcharges for both residential and commercial accounts.

Commissioner Bishop moved to approve the customer credit card surcharges, seconded by President Carlsrud. Motion failed.

Roll call vote: Magnuson – nay; Erickson – nay; Bishop – nay; Carlsrud – aye.

Consider contract for garbage hauling from transfer station to Fargo landfill
City Administrator Schelkoph reported bids were requested to haul from transfer station to landfill in Fargo. One bid was received for $165,000 per year; previously the contract was $130,000 per year. Schelkoph recommended moving towards handling this internally with no additional FTE but additional training for employees to obtain a Class A CDL.

The new contract is for one year with a thirty day out clause which will allow the city to work on this plan. Commissioner Bishop inquired if the budget includes the replacement of the boxes. Schelkoph stated this is part of the regular budget.

Commissioner Magnuson moved to approve contract for garbage hauling contract, seconded by Commissioner Bishop. The motion passed unanimously.

Consider paving library parking lot
Commissioner Bishop recommended paving library parking lot with a four way cost share with City, County, Valley City Public Schools and Library. The project with engineering is estimated to be $80,000-90,000. Bishop inquired if the R&R fund could handle it. City Auditor Richter stated the R&R fund could handle a $85,000 project with a three way split.

The item was tabled.

Consider voting members for Valley City-Barnes County Development Corporation
President Carlsrud reported Commissioner Bishop and himself serve as ad hoc members on the Valley City-Barnes County Development Corporation, there is an opportunity for the City to have two voting members.

Commissioner Bishop moved to approve the City as voting members of the Valley City-Barnes County Development Corporation, seconded by Commissioner Magnuson. The motion passed unanimously.

Approve Special Alcohol Beverage Event permit for The Labor Club in parking lot on August 25, 2018 from 5:00 PM to August 26, 2018 at 2:00 AM
Police Chief Hatcher stated no officers are required as this event is within a designated area.

Commissioner Magnuson moved to approve the Special Alcohol Beverage Event Permit, seconded by Commissioner Erickson. The motion passed unanimously.

City Administrator’s Report

There was no City Administrator’s report.

City Updates & Commission Reports

Fire Chief Retterath stated the VCFD is actively recruiting for eight new members.
Chad Petersen from KLJ reported PFP Phase II is continuing. Central Avenue patches will occur next week and on Main. Concrete Pavement Repair is done. Two days of concrete grinding will occur on 8^th and Winter Show Road.
President Carlsrud thanked city employees for work and thanked those investing in Valley City. School starts tomorrow, watch for students while driving.

Adjourn

The meeting was adjourned at 6:14 PM.

Dave Carlsrud, President of the
City of Valley City Commission

Attested to by:
Avis Richter, City Auditor
City of Valley City

Valley City Special Commission Proceedings
Thursday, August 16, 2018
6:30 AM Meeting, City Hall

President Carlsrud called the meeting to order at 6:30 AM.

Members present: Commissioner Magnuson, Commissioner Bishop, Commissioner Erickson.

Members absent: Commissioner Powell. Powell at 6:37 AM.

Others Present: Finance Director Richter, City Attorney Schoenack, Chad Petersen from KLJ, Lieutenant Rustebakke.

Roll Call

Pledge of Allegiance (please stand)

New Business

Consider Project No. SU-2-990(053)057, Storm Sewer Improvement District No. 50 – Wintershow Road/8^th Avenue SW

Chad Petersen from KLJ project was began to address street flooding on Wintershow Road in approximately 2014. NDDOT is willing to cost share on the project if it discharges into the I-94 right of way. Public input meeting was held in 2016 with two options. Public input meeting in June 2018 considered four options. Petersen reviewed the four alternates for the project.

The project is scheduled for a November 9, 2018 bid opening. The estimated cost share for Alternate C is $30,000 from NDDOT.

City Auditor Richter reported Storm Sewer Improvement District No. 50 has been added to the financial plans with NDDOT expected to pay half of the $1.0 to $1.2 million project. The local share is estimated to be $375,000 with $185,000 from R&R fund.

Petersen stated construction is programmed for 2019 to utilize federal funding.

Petersen stated the special assessments would have a benefit formula to reduce the cost for those with stormwater management plans.

Commissioner Bishop moved to approve Project No. SU-2-990(053)057 seconded by Commissioner Magnuson. The motion passed unanimously.

Approve Alternate for Project No. SU-2-990(053)057, Storm Sewer Improvement District No. 50 – Wintershow Road/8^th Avenue SW

Commissioner Bishop inquired about Alternate D. Chad Petersen from KLJ reported Alternate D goes through the current detention pond. To go under the detention pond with pipe, additional costs would be incurred which are greater than the estimate provided.

Commissioner Magnuson would like to see a greater cost share from NDDOT as was originally considered in a previous version of the project as it addresses the Hanna Avenue issues as well.

Commissioner Magnuson moved to approve Alternate C, seconded by Commissioner Powell. The motion passed unanimously.

Approve Resolution No. 2151, A Resolution calling for a public hearing on an issue of Revenue Bonds by the Duluth Economic Development Authority on behalf of Essentia Health and its affiliates

City Attorney Schoenack presented Resolution No. 2151, federal law requires fourteen days notice for the public hearing. The City is being asked to hold a public hearing for Duluth Economic Development Authority to issue refund bonds on behalf of Essentia Health.

Commissioner Erickson moved to approve Resolution No. 2151, seconded by Commissioner Bishop. The motion passed unanimously.

Adjourn

Meeting adjourned at 7:07 AM.

Dave Carlsrud, President of the
City of Valley City Commission

Attested to by:
Avis Richter, City Auditor
City of Valley City

Valley City Commission Proceedings
August 7, 2018
5:00 PM Meeting, City Hall

President Carlsrud called the meeting to order at 5:00 PM.

Members present: Commissioner Magnuson, Commissioner Bishop, Commissioner Powell, Commissioner Erickson.

Others Present: City Administrator Schelkoph, City Attorney Schoenack, Assessor Hansen, Public Works Accountant/Manager Jacobson, Fire Chief Retterath, Police Chief Hatcher, Chad Petersen from KLJ.

Approval of Minutes

Commissioner Bishop moved to approve the minutes from July 17, 2018 meeting and July 23, 24, 30 and August 1 meetings, seconded by Commissioner Erickson. The motion passed unanimously.

Approval of Consent Agenda

1. Approve Monthly Reports from the Fire Chief, Building Inspector, Auditor, Municipal Judge and Public Works Accountant.
2. Approve Monthly Bills for the City and Public Works in the Amount of $2,351,602.21
3. Approve Bingo and/or Raffle Permits for Barnes County Ducks Unlimited, Barnes County Senior Citizens Council, Inc., Valley City USBC Association
4. Approve Block off the Street Request for VCSU on September 6, 2018 from 5:30 pm to 9:00 pm on Central Avenue from 2^nd Street N to 5^th Street N
5. Approve Block off the Street Request for VCSU on August 17, 2018 from 3:30 pm to 7:30 pm on 2^nd Avenue SW
6. Approve Block off the Street Request for VCSU on August 29, 2018 from 9:00 pm to Midnight on 2^nd Avenue SW
7. Approve Parade Application for VCSU Homecoming on October 13, 2018 on Central Avenue

Commissioner Magnuson moved to approve the consent agenda, seconded by Commissioner Powell. The motion passed unanimously.

Public Comments

Gary McCollugh spoke regarding the North Central project [Paving Improvement District No. 109] and the work done to correct the issues. He stated C court looks nice and the corrections for water flow are working.

Ordinance

Approve second and final reading of Ordinance No. 1035, an Ordinance Amending & Re-enacting Title 18, Parks

City Attorney Schoenack stated this is the second reading of Title 18, Parks. This is part of the recodification project. Commissioner Bishop moved to approve Ordinance No. 1036, seconded by Commissioner Powell. The motion passed unanimously.

Approve second and final reading of Ordinance No. 1036, an Ordinance Creating a Perpetual
Restrictive Covenant for Structures to be Removed in Accordance with State Water Commission

City Attorney Schoenack reviewed Ordinance No. 1036 which requires the City to restrict land use in conformance with State Water Commission. Commissioner Magnuson moved to approve Ordinance No. 1036, seconded by Commissioner Erickson. City Auditor Richter clarified this is part of Permanent Flood Protection project to ensure future land use is in accordance with State Water Commission guidelines. The motion passed unanimously.

Approve first reading of Ordinance No. 1037, an Ordinance Amending & Re-enacting Title 3, Health & Sanitation

City Attorney Schoenack reviewed Title 3. NDCC requires the city to have an ordinance to create health board. Commissioner Erickson moved to approve Ordinance No. 1037, seconded by Commissioner Bishop. The motion passed unanimously.

Approve first reading of Ordinance No. 1034, an Ordinance Amending & Re-enacting Title 6, Police Department

City Attorney Schoenack reviewed changes to Title 6 which include areas of clarifying language and some substantive changes which include allowing the Police Chief to hire candidate who is at least 18, but not yet 21 years of age; fees will be included in the Master Fee Schedule.

Commissioner Bishop inquired how can police officer who is 18 can go into a bar. City Attorney Schoenack stated that NDCC provides access to bar for law enforcement officer (less than 21). Police Chief Hatcher stated that the ND POST sets the age requirement of 18 years or older.

Commissioner Bishop moved to approve Ordinance No. 1034, seconded by Commissioner Magnuson. The motion passed unanimously.

Approve first reading of Ordinance No. 1038, an Ordinance Amending & Re-enacting Title 19, Disasters & Emergencies

City Attorney Schoenack presented Ordinance No. 1038. This ordinance allows the City to declare a disaster or emergency with powers of commissioners articulated. Schoenack consulted with Police Chief Hatcher, Fire Chief Retterath and City Administrator Schelkoph. The committee added 19-01-03-1, when an emergency is declared, city staff are to follow protocols. Commissioner Powell moved to approve Ordinance No. 1038, seconded by Commissioner Erickson. The motion passed unanimously.

Resolution

Approve Resolution No. 2150, a resolution to approve the replat of Block 2 Beyer Industrial Acres
City Attorney Schoenack reported Planning & Zoning Commission held a public hearing and provided a do pass recommendation. Commissioner Erickson moved to approve the replat of Block 2 Beyer Industrial Acres, seconded by Commissioner Bishop. The motion passed unanimously.

New Business

Consider Conditional Use Permit duly submitted by Tom Morehouse of Star Enterprise/Strata on Lot 8 and 9 of South Valley Addition

City Attorney Schoenack stated application was received on July 9 for a conditional use permit by Tom Morehouse of Star Enterprise/Strata. A public hearing was held on July 30. Planning & Zoning recommends a do pass recommendation with the following conditions: install and maintain construction fence surround gravel pile; follow best practices for dust control; use south road for all hauling of gravel; use best practice to reduce height of pile; follow best practices for weed and grass control for a period from August 7, 2018 and ending December 31, 2019.

City Attorney Schoenack stated the burden is on the property owner to request another conditional use permit. A conditional use permit requires a public hearing.

City Administrator Schelkoph stated Planning & Zoning discussed a potential meeting in November 2019 to revisit this conditional use permit.

President Carlsrud inquired if meeting required to be needs to be included in the permit. Schoenack stated no.

Commissioner Erickson moved to approve the Conditional Use Permit, seconded by Commissioner Powell.

Commissioner Magnuson asked if the party was in violation without a Conditional Use Permit and if there would be any fines or repercussions if found in violation. Magnuson stated the burden goes back to City Commission for allowing this to happen.

City Attorney Schoenack stated Morehouse was in violation of zoning ordinance and city worked with him. Schoenack stated there are separate issues: sanctions, Conditional Use Permit issuance. Planning and Zoning Commission did not provide recommendations for sanctions.

President Carlsrud stated the neighborhood and business were agreeable to terms of Conditional Use Permit.

The motion passed unanimously.

Consider NDDOT Urban Grant program award in amount of $1,643,000, for Streetscape & Lighting Project Phase II (Main Street, Central Avenue S, City Park)

City Administrator Schelkoph stated this is separate project from Phase I. Phase II is located on Central Avenue South, Main Street, City Park. There will be no sidewalk widening or bumpouts installed. This is an opportunity to upgrade lighting and streetlights, and mill and overlay with grant money. This project will include a RFP for engineering firm through NDDOT. The city cost share is $500,000. Schelkoph recommends funding sources to include: $250,000 from Electrical Fund for street light replacements; $20,000 for lighting in City Park through special assessments to VCPR; $20,000 for mill & overlay on Central Avenue South through special assessments; $60,000 from the 2016 sale of 60 feet of Rosebud parking lot; $150,000 from the R&R fund.

Phase II construction will occur in 2020 with an 80/20 cost share through NDDOT.

City Auditor Richter reported Fund 290 R&R fund can accommodate $150,000 in 2020.

President Carlsrud inquired if most of cost is for lighting and traffic signals. Schelkoph confirmed and stated a small portion is for a mill and overlay. Petersen stated stamp concrete can be considered when budgets are prepared.

Commissioner Magnuson asked if engineering costs are included. Petersen confirmed.

Petersen stated NDDOT is taking lead with to secure engineering at beginning through a RFP. Construction engineering will be obtained via RFP at later date.

Commissioner Magnuson stated the vision has stayed the same over the years; Magnuson asked that the costs are in order.

Commissioner Powell moved to accept the NDDOT Urban Road Grant in the amount of $1,643,000, seconded by Commissioner Magnuson. The motion passed unanimously.

Consider 2 Year Contract with Valley City-Barnes County Development Corporation

Jennifer Feist stated the main contract is in place until 2029, but requires the review of the contract every two years. The amended contract will include workforce development. Commissioner Magnuson moved to approve the two year contract with Valley City-Barnes County Development Corporation, seconded by Commissioner Bishop. The motion passed unanimously.

Consider Request for Funds in the amount of $25,000 for Workforce Development by Valley City- Barnes County Development Corporation

Jennifer Feist stated the Development Corporation is requesting $25,000 from the economic development fund to develop capacity of Sheyenne Valley Area Career & Technical Center for workforce development. This will provide for updated welding equipment and facilities at SVACTC as well as trainer. Commissioner Powell moved to approve $25,000 for Workforce Development by Valley City-Barnes County Development Corporation, seconded by Commissioner Bishop. The motion passed unanimously.

Consider Increasing Contract Maximum for Construction Engineering for Paving Improvement District No. 113 by $16,950.00

Chad Petersen from KLJ requested increasing the contract maximum for construction engineering to cover the additional costs for Paving Improvement District No. 113. Post bid, property owners requested additional concrete work. The request increases construction engineering costs to 17.66%. In coordination with City Staff, new language is included in the notices to property owners which requires them to request addition concrete work prior to bid to help prevent this situation in the future.

City Administrator Schelkoph stated funding is available to cover this expense. City Auditor Richter was able to accommodate this as it was communicated with the City prior to special assessment hearing.

City Auditor Richter stated when preparing for special assessment hearing, Chad Petersen from KLJ provided estimate but the expense has not been expensed out. Commissioner Magnuson moved to approve increasing the contract maximum for construction engineering for Paving Improvement  District No. 113 by $16,950, seconded by President Carlsrud.

Roll call vote: Erickson – yea; Powell – nay; Bishop – nay; Magnuson – yea; Carlsrud – yea. Motion carried.

Consider Increasing Contract Maximum for Construction Engineering for 2017 Parking Lot Improvement District by $15,500

Chad Petersen from KLJ stated that multiple planning meetings were held for the 2017 Parking Lot Improvement District. The request is for an additional $15,500 for construction engineering.

City Administrator Schelkoph provided a No recommendation to Commission as the City was not notified of overage to be able to include this in the special assessment process and property owners were not able to carry this cost through special assessments.

Petersen acknowledged that the overage was not clearly communicated in timely manner. Petersen stated expenses were actually incurred. Petersen asked the Commission to consider reducing the request to an amount palatable and that could be covered by the R&R fund.

Commissioner Bishop moved to approve increasing the contract maximum for construction engineering for 2017 Parking Lot Improvement District, seconded by Commissioner Magnuson.

Roll call vote: Magnuson – nay; Erickson – nay; Powell – nay; Bishop – nay; Carlrud – nay. Motion failed unanimously.

Consider “Notice to Award” to Swanberg Construction for the Ultra Filtration Project at the Water Treatment Plant

City Administrator Schelkoph stated North Dakota Century Code stipulates that projects over $150,000 require public notice of bids. Swanberg Construction provided a bid of $149,597 including the electrical work. AE2S sought a second bid, which came in at $179,696. AE2S and City Administrator Schelkoph recommend Swanberg Construction receive the contract with work to begin October 1 and end December 7, 2018.

Commissioner Bishop moved to approve the Notice to Award, seconded by Commissioner Magnuson. The motion passed unanimously.

Consider “Notice to Proceed” to Swanberg Construction for the Water Treatment Plant Ultra Filtration Project

Commissioner Erickson moved to approve the “Notice to Proceed,” seconded by Commissioner Bishop. The motion passed unanimously.

Approve purchase of trench box in the amount of $12,435.00 from RDO Equipment Co. for Street & Water/Wastewater  & Electrical Departments

City Administrator Schelkoph stated to open a trench wide enough for 45 degree walls, the entire street would need to be opened. Therefore, Schelkoph recommends the purchase of a trench box. Commissioner Powell moved to approve the purchase of a trench box, seconded by Commissioner Erickson. The motion passed unanimously.

Consider interest rate for 2017 & 2018 Special Assessment Projects that will be financed with 2018 refunding bond issuance

City Auditor Richter reports the City is expected to receive an interest rate of 3.5% to 4% for the bonds. Richter recommends setting the interest rate at 4.5% for the 2017 & 2018 Special Assessment Projects that will be financed with 2018 refunding bond issuance. Richter recommended setting the interest rate at 3.5% for the 2018 sidewalks which are funded internally.

Commissioner Bishop moved to approve the interest rate for 2017 & 2018 Special Assessment Projects and the 2018 sidewalks as presented, seconded by Commissioner Magnuson. The motion passed unanimously.

City Administrator’s Report

City Administrator Schelkoph reported the next Bridge City Cruise night will occur in front of Sheyenne Care Center. The State Water Commission held a regional meeting in Valley City on July 25. Schelkoph reminded the public that tree branches 4” or less in diameter can be picked up by VCPW. The next and final date is the last Thursday and Friday of September. To schedule, call VCPW. Schelkoph reminded the public that garbage is limited to two 32 gallon canisters.

City Updates & Commission Reports

Assessor Hansen stated she will be attending the ND Assessors Conference and the State Equalization Meeting.
Commissioner Bishop thanked police officers for their work.
Commissioner Powell thanked the Fire Department and Police Department for their involvement in the Valley City Parks & Rec community days.
President Carlsrud thanked City Staff for their work.

Adjourn

The meeting was adjourned at 6:39 PM.

Attested to by:

Dave Carlsrud, President of the
City of Valley City Commission

Attested to by:
Avis Richter, City Auditor
City of Valley City