OFFICIAL PROCEEDINGS OF THE REGULAR MEETING OF THE BOARD OF CITY COMMISSIONERS HELD JANUARY 27, 2009, AT 7:30 P.M. AT CITY HALL IN WILLISTON, NORTH DAKOTA. 1. Roll Call of Commissioners COMMISSIONERS PRESENT: Brent Bogar, Brad Bekkedahl, Howard Klug, H. James Lawson, E. Ward Koeser OTHERS PRESENT: John Kautzman, Pete Furuseth, Chief Lokken, Chief Hanson, Kent Jarcik, Doug Lalim, Tom Rolfstad, Shawn Wenko, Monte Meiers 2. Consent Agenda A. Reading and Approval of Minutes for: 1. Regular Meeting Dated January 13, 2009 B. Auditor 1. Accounts, Claims and Bills FINANCE & COMMUNITY DEVELOPMENT: RECORD ONLY: FIRST NATIONAL BANK RECORD ONLY 6,128.05 FIRST NATIONAL BANK RECORD ONLY 1,000,000.00 FIRST NATIONAL BANK RECORD ONLY 100.00 FIRST NATIONAL BANK RECORD ONLY 24,551.74 FIRST NATIONAL BANK RECORD ONLY 70,936.82 FIRST NATIONAL BANK RECORD ONLY 45,163.33 FIRST NATIONAL BANK RECORD ONLY 19,980.34 FIRST NATIONAL BANK RECORD ONLY 39,995.79 FIRST NATIONAL BANK RECORD ONLY 60,528.35 FIRST NATIONAL BANK RECORD ONLY 29,777.69 FIRST NATIONAL BANK RECORD ONLY 16,871.84 FIRST NATIONAL BANK RECORD ONLY 1,491,311.02 FIRST NATIONAL BANK RECORD ONLY 55,087.33 FIRST NATIONAL BANK RECORD ONLY 169,246.42 FIRST NATIONAL BANK RECORD ONLY 105,318.00 FIRST NATIONAL BANK RECORD ONLY 21,543.20 ____________ SUBTOTAL 3,156,539.92 PREPAIDS: PAYROLL 1/16/09 CHECK #10157-10207 150,418.16 JAN THUE Jan COBRA 346.27 MONTANA CSED Child Support 58.77 ND STATE DISBURSE. UNIT Child Support 1,273.50 STATE TAX COMMISSIONER State W/H 17,418.54 ND PERS Library 34,528.65 ND PERS Planning 28,725.03 LINCOLN MUTUAL LIFE & Library 461.59 LINCOLN MUTUAL LIFE & Library 380.42 AMERICAN NATIONAL Jan Premium 202.66 AMERICAN FAMILY LIFE Jan Premium 250.58 FIDELITY SECURITY LIFE Jan Premium 200.01 USABLE LIFE Jan Premium 378.19 UNITED WAY December W/H 83.00 ND PUBLIC EMPLOYEES ASSOC January Dues 34.00 ND PERS Purchase 500.00 DISCOVERY BENEFITS Med SA 4,321.76 January 27, 2009 2 City Commission Meeting ND STATE DISBURSE. UNIT Child Support 1,273.50 MONTANA CSED Child Support 10.16 WILLISTON SCHOOL DIST #1 School share 312,092.47 TRACY VOLNEY Bond Refund 150.00 JOHN JANSEN BOND REFUND 150.00 BENJAMIN STROMME BOND REFUND 400.00 JEFFREY LINDQUIST BOND REFUND 250.00 DAWA SOLUTIONS GROUP WEB SERVCIES 19,885.00 WILLISTON AREA CHAMBER CHAMBER BANQU 360.00 FEE INSURANCE AGENCY 09 CHEVY PU 94.00 ____________ SUBTOTAL 574,246.26 COMMUNITY DEVELOPMENT: ____________ SUBTOTAL FINANCE: FORT UNION SUPPLY & TRADE LINERS/PT 153.65 GAFFANEY'S DESK 1,696.53 GAFFANEY'S SUPPLIES 242.80 GAFFANEY'S TONER 504.00 LOGIC COMPUTER PRODUCTS CARTRIDGES 419.94 NEMONT PHONE BILL 393.13 PRO FORMS 6-PT LSR W-2 11.83 WILLISTON HERALD PUB HEAR 91.98 VISA LEG BLL TRCK 375.00 VISA STAFF MTG 63.63 CALEB FRY WITNESS FEES 25.00 GAFFANEY'S RECEIPT BOOKS 195.01 CITY OF WILLISTON SNOW REMOVAL 1,111.50 CITY OF WILLISTON SWEEPING 100.00 LEE'S TELEPHONE SERVICE SERVICES 117.00 NEMONT PHONE BILL 490.46 GAFFANEY'S Comtr Filter 209.00 GAFFANEY'S Files- Labels 31.09 GAFFANEY'S Portfolio 17.80 GAFFANEY'S Report Covers 79.71 GAFFANEY'S Toner 183.99 KFYR-TV Tv Ads 593.00 NEMONT PHONE BILL 89.72 THE SHOPPER Flyer Inserts 126.00 VISA Horizon Res 29.32 VISA Red Carpet 35.56 VISA Wal-Mart 103.90 SHAWN R. WENKO Meal Reimb 4.75 WILLISTON AREA CHAMBER Banner Ad 960.00 WILLISTON AREA CHAMBER Enews Ads 325.00 WILLISTON HERALD WADF ADS 929.50 NEMONT PHONE BILL 100.10 SRF CONSULTING GROUP INC PROF. SERVICE 14,992.71 SRF CONSULTING GROUP INC SUPPLIES 152.30 KOHLER COMMUNICATIONS radio-labor 96.00 ____________ SUBTOTAL 25,050.91 TOTAL 3,755,837.09 January 27, 2009 3 City Commission Meeting SANITATION, STREETS & IMPROVEMENTS: GAFFANEY'S paper 37.90 GAFFANEY'S supplies 32.23 GAFFANEY'S Supplies 47.50 BASIN TIRE SERVICE,INC. Unit #6551 178.42 BORDER STATES ELECTRIC Metro Locator 19.34 GAFFANEY'S paper 37.90 GAFFANEY'S Shredder/Pape 171.97 NEMONT PW 82.56 NEMONT PW ADMIN 82.72 NEMONT PW COMP 39.86 MDU UTILITIES 9,108.72 MOUNTRAIL-WILLIAMS REC WAL MART LITE 198.42 NAPA AUTO PARTS chain 248.57 ROUGHRIDER DOORS service door 45.00 TRACTOR & EQUIPMENT CO. Cutting Edge 706.88 TRACTOR & EQUIPMENT CO. Parts 515.84 WESTERN SIDING & WINDOWS Service 50.00 PREBLE MEDICAL SERVICE B Hanson 50.00 PREBLE MEDICAL SERVICE G Werkmeister 70.00 PREBLE MEDICAL SERVICE L St Pierre 50.00 CARQUEST WESTERN AUTO Belts 74.67 CARQUEST WESTERN AUTO Brake Clean 37.51 DAKOTA DIESEL USA, INC. Clamp 13.18 DALLAS SAILER ENTERPRISE supplies 703.00 HORIZON RESOURCES diesel-#1 20,088.00 FLEXIBLE PIPE TOOL CO. Unit #4394 139.24 HOSE AND RUBBER SUPPLY adapters 10.49 HOSE AND RUBBER SUPPLY stem 144.77 HOSE AND RUBBER SUPPLY Parts 273.57 HOME OF ECONOMY cylinder 189.98 HOME OF ECONOMY PARTS 115.57 INTERSTATE POWER SYSTEMS Part 312.19 INTERSTATE POWER SYSTEMS Parts 97.10 KOIS BROTHERS EQUIP CO Parts 1,941.48 NAPA AUTO PARTS filters 116.43 NAPA AUTO PARTS Filters 140.82 NAPA AUTO PARTS Parts 198.22 NAPA AUTO PARTS Preheater 382.19 NAPA AUTO PARTS Stock 38.61 NAPA AUTO PARTS Trans SL 11.09 NAPA AUTO PARTS Unit #5186 172.47 NORTHERN SAFETY TECHNOLOG parts 92.71 NORTHWEST SUPPLY CO. Supplies 193.10 O'DAY EQUIPMENT, INC. hose-clamp 111.63 SANITATION PRODUCTS Unit #6146 28.38 TRACTOR & EQUIPMENT CO. Credit #5142 244.06- TRACTOR & EQUIPMENT CO. Parts 526.65 TRACTOR & EQUIPMENT CO. Stock 146.60 TRACTOR & EQUIPMENT CO. Unit #5142 1,144.56 TRACTOR & EQUIPMENT CO. Unit #6210 215.08 BADLANDS STEEL material 102.03 BASIN TIRE SERVICE,INC. wheel 462.63 CRAVEN-HAGAN CLINIC, LTD. G Smestad 150.00 NAPA AUTO PARTS chain 49.71 PREBLE MEDICAL SERVICE G Smestad 50.00 BASIN TIRE SERVICE,INC. Unit #6210 381.11 GAFFANEY'S supplies 23.29 NEMONT LANDFILL 119.58 MORELLI'S water 21.00 January 27, 2009 4 City Commission Meeting MOUNTRAIL-WILLIAMS REC Utilities 330.54 NDWPCC b. Perkins 65.00 NDWPCC D. Bell 65.00 NDWPCC P. Fierenza 40.00 PETROLEUM SERVICES OVERPAYMENT 270.48 ____________ TOTAL 41,319.43 WATER, SEWER, CEMETERY & AIRPORT: KALLIE BRATLIEN WATER DEP RFD 25.00 ALLYSON CLEMES WATER DEP RFD 25.00 CULLIGAN water 20.00 ECONOMART Water/Pop Mtg 47.52 NEMONT PHONE BILL 49.81 QUILL CORPORATION Calendar 6.84 QUILL CORPORATION Printer/pens 311.53 JACK & JEWEL'S BAR-B-QUE Cntrct Lunch 485.76 BASIN PRINTERS, INC. Call-Out Shee 44.00 DAKOTA SUPPLY GROUP Parts 47.72 NEMONT SEWER TREATME 39.86 NEMONT PHONE BILL 100.81 KALLIE BRATLIEN INTEREST EARN 2.75 ALLYSON CLEMES INTEREST EARN 2.75 MON-DAK TRUCKIING OVERPYMT WATE 444.33 BASIN PRINTERS, INC. Call-Out Shee 44.00 CRAIG'S, INC. Service & Par 37.15 HOSE AND RUBBER SUPPLY Parts 113.03 HOME OF ECONOMY Gloves 13.97 HOME OF ECONOMY Supplies 105.52 NEMONT 11TH ST RES 39.86 NEMONT 26TH ST RES 39.86 MDU SERVICE 235.30 MDU UTILITIES 893.08 NORTHERN WATER WORKS clamp 704.45 NORTHERN WATER WORKS gasket 58.14 NORTHERN WATER WORKS SS Repair 1,632.43 PRAXAIR DISTRIBUTION INC Supplies 15.00 CITY OF WILLISTON Reimbursement 7.10 FALCON PUMP & SUPPLY Repairs 238.88 GRAYMONT WESTERN CANADA Lime 5,885.84 HAWKINS, INC. Alum Sulf 6,636.68 HOME OF ECONOMY Step Stool 35.99 ITASCA SYSTEMS, INC. Chemicals 1,953.40 NEMONT WATER TREATME 80.57 NEMONT WTP FAX LINE 39.86 MDU UTILITIES 17,087.27 WILLISTON TRUE VALUE Supplies 19.83 HORIZON RESOURCES Propane 416.67 HORIZON RESOURCES Supplies 43.97 GAFFANEY'S supplies 34.78 NEMONT CEMETERY 39.86 WESTERN SIDING & WINDOWS Parts 133.56 BASIN CLEANING CLEANING 1,495.00 BYERLY COMPUTER SERVICES COMPUTER 1,095.00 DAKOTA DIESEL USA, INC. FAN & MOTOR 120.06 TRUE VALUE HOME CENTER GLUE KIT/PLUG 8.27 DICKINSON MUNICIPAL AIRPO SERVICES 505.10 EMRY'S LOCKSMITHING KEYS/REPAIR 31.40 GAFFANEY'S DESK/SUPPLIES 574.60 HAUGEN'S, INC. MTC/LABOR 193.30 January 27, 2009 5 City Commission Meeting HERMAN OIL COMPANY SUPPLIES 37.01 HOSE AND RUBBER SUPPLY SUPPLIES 44.66 INTERSTATE POWER SYSTEMS LABOR/SUPPLIE 674.14 KFYR-TV ADVERTISEMENT 180.00 MIDCONTINENT COMM. CABLE BILL 296.54 NEMONT PHONE BILL 182.31 MON-DAK PLG & HTG, INC. PUMP/BOILER 279.00 MDU UTILITIES 5,194.00 MOUNTRAIL-WILLIAMS REC UTILITIES 16.00 NAPA AUTO PARTS AIR FILTER 60.58 NAPA AUTO PARTS BLADE/FLUID 50.41 NAPA AUTO PARTS SOCKET 7.04 NAPA AUTO PARTS SOCKET/SCREWD 23.81 TRACTOR & EQUIPMENT CO. CUTTING EDGE 1,641.61 TRACTOR & EQUIPMENT CO. PARTS 2,679.50 KADRMAS LEE & JACKSON INC PROJECT 26 4,264.14 KADRMAS LEE & JACKSON INC PROJECT 27 5,629.73 KADRMAS LEE & JACKSON INC PROJECT 29 795.77 KADRMAS LEE & JACKSON INC PROJECT 31 86,048.65 ____________ TOTAL 150,367.36 AMBULANCE, BUILDING INSPECTION, TRAFFIC SAFETY, FIRE, LEC & BASIN PRINTERS, INC. CALENDARS 68.00 BIG SKY BATTERY MFG. BATTERY 29.00 BORDER STATES ELECTRIC BULBS 42.10 CITY LAUNDRY MOPS 15.90 CRAVEN-HAGAN CLINIC, LTD. FLU SHOTS 1,175.00 WILLISTON HOME&LUMBER TOOL BOX 30.91 FLEET SERVICES ENGINE 78.95 FLEET SERVICES QA-7 232.69 HEIMAN FIRE EQUIP., INC. DOOR MARKER 82.88 KOHLER COMMUNICATIONS ATENA 16.50 MIDCONTINENT COMM. CABLE 49.11 NEMONT EXT LINE 29.05 NEMONT PHONE 119.51 NAPA AUTO PARTS AIR HOSE 28.85 NAPA AUTO PARTS CHF TRK BAT 98.94 NAPA AUTO PARTS CORE DEP 11.50- NAPA AUTO PARTS HYD OIL 11.76 NAPA AUTO PARTS OIL RET 44.97- NAPA AUTO PARTS OLPW TRK 98.23 NAPA AUTO PARTS PLOW TRK 86.98 ND FIRE CHIEFS ASSOC. CHIEFS DUES 50.00 ND FIREFIGHTER'S ASSOC DUES 65.00 ND FIRE PREVENTION ASSOC. DUES 30.00 VISA FIRE PREVENTI 50.50 VISA SUPPLIES 230.28 WILLISTON HERALD PAPER 110.00 BALCO UNIFORM CO., INC. BATTERY 22.00 BALCO UNIFORM CO., INC. SWITCH 20.00 HEATHER CECIL BISMARCK 25.00 CITY OF WILLISTON # 100491 5.20 CORY COLLINGS BISMARCK 25.00 CRAVEN-HAGAN CLINIC, LTD. HANSON 135.00 CRAVEN-HAGAN CLINIC, LTD. LOKKEN 135.00 CRAVEN-HAGAN CLINIC, LTD. OWENS 135.00 CRAVEN-HAGAN CLINIC, LTD. TANNER 135.00 MERCY MEDICAL CENTER 6 DRAWS 150.00 MURPHY MOTORS, INC. UNIT 1105 285.65 January 27, 2009 6 City Commission Meeting NEMONT RANGE 43.93 NEMONT WPD 515.25 NAPA AUTO PARTS WIND. WIPERS 33.79 ND CHIEF'S OF POLICE ASSN LADWIG 20.00 ND CHIEF'S OF POLICE ASSN LOKKEN 30.00 SELECT FORD BELT/THERMOST 352.71 SELECT FORD HEATER 329.11 WILLISTON AREA CHAMBER CHIEF/CONTACT 40.00 NEMONT CO 911 627.80 QWEST JAN 10-FEB 9 947.16 EMERGENCY MEDICAL PRODUCT SUPPLIES 851.45 FLEET SERVICES FUEL 659.64 FLEET SERVICES LATE FEE 50.62 FLEET SERVICES 6411 767.90 HAMERS AUTOMOTIVE SERVICE 6411 459.00 CARLA HOROB MINOT CONFERE 152.50 JIM JARLAND MINOT CONFERE 292.90 MEDQUEST SUPPLIES 112.63 MERCY MEDICAL CENTER DRUGS 17.72 NAPA AUTO PARTS CREDIT 3.54- NAPA AUTO PARTS OIL CHANGE 417.17 PRAXAIR DISTRIBUTION INC O2 348.14 ORTIVUS, INC. 3/09 - 3/10 2,173.30 VISA LDT MEALS 272.73 VISA SUPPLIES 29.45 TISA REFUND 3,616.92 CITY OF WILLISTON PARKING AUTHO 300.00 CITY OF WILLISTON SWEEPING 150.00 MDU UTILITIES 219.66 ____________ TOTAL 17,674.46 GRAND TOTAL 3,965,198.34 2. Application for a Local Permit or Charity Local Permit a. Williston Basin Indian Club February 28th through October 18th, 2009 Raffle 3. Special Permit to Sell Alcoholic Beverages a. MT Heads Inc January 31, 2009 Rocky Mountain Elks Foundation Banquet C. Building Official D. City Planner E. Assessor 1. Abatement a. Name: Alexander Herrera Address: 605 19th Street West Legal: Lot 9, Block 3, Airport 2nd Addition, City of Williston Reason: Applicant qualifies for the Disabled Veteran Exemption 2. Exemptions a. Commercial Property b. New Residence Exemptions – Years Exempt 2009-2010 January 27, 2009 7 City Commission Meeting 1. EMC Development, LLC L 1 B 5, Lewison Add, City of Williston 2. EMC Development, LLC L 2 B 5, Lewison Add, City of Williston c. Residential Property – Years Exempt 2010-2011-2012 1. Brian & Sondra Fretheim L7 B 1, Wittmeier 2nd Add, City of Williston MOTION BY LAWSON, 2ND BY KLUG, to accept the consent agenda as presented to the Commission. AYE: Bogar, Bekkedahl, Klug, Lawson, Koeser NAY: None CARRIED: 5-0 3. Bid Openings 4. Public Hearings A. Proposed Vacation 20’ alleyway(s) between Lots 1-12, and Outlot 1, Block 24, Bruegger’s 2nd Addition – Lakeside Builders/Midwest Leasing Corp. Koeser opened the public hearing and asked Jarcik to comment on the request. Jarcik stated the proposal is to vacate the 2 alley ways on Block 24 to allow for the placement of a motel. The northwest corner of 4, 5, and 6 are currently owned by the County and the rest of the block would be purchased alley(s) vacated. Upon review, MDU Gas has a facility in a portion of the existing right-of-way off of 3rd Avenue East. Along with the resolution a utility and access easement would be retained for the existing gas line, which could potentially be removed, and their pressure reducing stage off the ally on the south side. These are the only items essential for the easement. Koeser called for public input. Koeser stated that the proposal has gone through the Planning and Zoning Commission and it has been recommended to vacate the two alleyways located in Block 24, Bruegger’s 2nd Addition, with a utility and access easement retained as described in the resolution. Koeser called a second, third and final time for public input. With no public input being heard, the hearing was closed. Lawson asked if they should state the alleys will be vacated when the building permit is obtained. Koeser said that it would have to go through the attorney first but he assumed there would be a problem, which Furuseth replied he thought that would be fine. Kautzman mentioned they could either tie it to the purchase of the property or tie it to the building permit since they haven’t purchased the property yet. MOTION BY LAWSON, 2ND BY BEKKEDAHL, to approve the Vacation of the 20’ Alleyways within Lots 1-3 & 7-12 & Outlot 1, Block 24, of Brutger’s 2nd Addition when the building permit has been purchased. January 27, 2009 8 City Commission Meeting Bekkedahl asked if this will complicate matters in terms of financing a construction project. Furuseth replied that the vacating is an incentive to get started on the project and this won’t restrict any financing. Lalim asked if the vacation of the alley could take place at the time the City transfers the deed to Lakeside Builders/Midwest Leasing Corp instead of when the building permit is issued. Koeser answered that there would need to be an amendment to the motion, but the way it stands now and if the motion passes, it would be vacated upon drawing the building permit. Bekkedahl asked Furuseth, if the Commission votes in the majority on this vacation and it becomes an issue, could it be readdressed, at which Furuseth said it could be reconsidered on a request, even if the request was from just one of the Commissioners. AYE: Bogar, Bekkedahl, Klug, Lawson, Koeser NAY: None CARRIED: 5-0 B. New Industry Exemptions for Williston Hotel Hospitality, LLC & Williston Conference & Hospitality, LLC Koeser opened the public hearing and asked Shawna Gooch-Egge to give them a break down of what they are looking at. Gooche-Egge stated that there are 2 applications for Payment in Lieu of Taxes. A payment in lieu allows the property owner to pay a set amount of money for a predetermined amount of years instead of their actual property tax billed. They are both from Brutger Equities out of Minnesota. Both buildings will be located on the same lot as the Williston Event Center behind International Inn by the airport. Williston Hotel Hospitality LLC is the Candlewood Suite and they are requesting 10 years at a $0 payment for years 1-5 and $20,000 payment for years 6-10. On this property a Payment in Lieu wasn’t originally requested, but Koeser approved the change to the application after Gooch spoke to him about it. The Williston Conference & Hospitality LLC is the Holiday Inn Conference Center and they are requesting 20 years at $0 dollars for years 1-5, $20,000 payment for years 6-10, $25,000 payment for years 11-15 and $30,000 payment for years 16-20. Gooch stated the recommendation from the City/County Abatement Committee was to grant Brutger Equities their requests as presented. Brutger Equities is here and they have a presentation for the Committee tonight. They will be discussing their plans as one large project. Gooch said there will need to be a motion for each separate building as per State Guidelines. There is financial information in their application and they are requesting to keep the information confidential. Gooch introduced the members from Brutgers Equities that were in attendance at the meeting which were Larry Brutger, President and CEO, Brett Erdmann, Vice President of Hospitality; and Laura Pfannenstein, Chief Financial Officer. Brutger stated the projects they are working on are the Candlewood Suites and the Holiday Inn hotels. The hotels would be wrapped around the Event Center and would face the airport. The project would be done in two phases. The property will be re-plated and there will be two separate legal entities, so they will have the ability to finance the hotels on separate loans and/or at separate financial institutes. The Candlewood Suites would be the first project whichwill be a four story, 80 room extended stay hotel. Each room will have a full kitchenette and is designed for those who stay five days or longer. The construction would tentatively start in the 2nd quarter of 2009 with an expected completion date in the 2nd January 27, 2009 9 City Commission Meeting quarter of 2010. The project for the Candlewood Suites is estimated to cost about $7,500,000. Phase 2 will be the Holiday Inn & Conference Center. This hotel will be six stories, have110 rooms and be a full service property with a convention center, pool area, restaurant/lounge and large conference rooms. Construction is to commence in the 4th quarter of 2010 with an expected completion date in the 1st quarter of 2012. It has an estimated cost of $13,000,000, with an overall cost of both projects at $20,000,000. Brutger is requesting a 10-year PILOT program on the Candlewood Suites and a 20-year program on the Holiday Inn to help move this project forward. Brutger feels the two hotels will bring in a new level of hospitality to the community. Candlewood and Holiday Inn are very well known franchises with stringent standards. This will make Williston more attractive for tourism, travelers and the convention business, which they will be targeting, and feel Williston is in need of. With two nationally recognized franchises building in Williston, it will likely help encourage new development by other national players in the community. The development of the two projects will consist of 400 construction jobs. The projects together will employ an estimation of 33 full time employees and 124 part time employees. The payroll for the first year will be approximately $1.6 million and increase in year five to about $2,000,000. One of the reasons they would like the tax incentive granted is both projects together will have an initial cost of over $20,000,000, which this project is a big investment. They have been talking to lenders and in the past the lenders have required 25% equity, but because of the economy and rural location of Williston, they will most likely require 40% equity in order to get the deal done, which is about an $8,000,000 investment on the part of the developer. Koeser called for public input. Frankie Aars, General Manager of the Marquis Plaza and Missouri Flats Inn commented that she has visited with Brutger’s Entities and she commends them for bringing this project into Williston. She thinks this is a good idea and is something that Williston needs as a way to attract conventions/meetings to this area, which cannot be offered at the present time. There have been multiple needs presented and she wonders how do we help, as a community, to fulfill what they are asking this community to do, and wonders if the concessions they are asking for is bringing competition to the businesses. Klug asked Aars what kind of initiatives were given when the Marquis was built. Aars said they were given a 50% abatement for a total of three years. Gooch-Egge commented that the Marquis Plaza did not apply for the Payment in Lieu of Taxes, they applied for the new industry which has different caps. Dyer McCade stated his family owns the El Rancho and he is a resident of Williston. He looked through their phase 1 and 2 and doesn’t see how the decision can be made on giving them a 20-year abatement on something that may or may not happen. Brutger responded that if the second phase isn’t built then there are no incentives and the City won’t lose anything since there is no tax base on the property. He mentioned they may have a contractor lined up, and if everything goes well, it may happen quicker. They have a manger in mind that will be able to manage both projects which could make it one development but in two phases, because of the size of the buildings. If the Candlewood opens up and oil is around $20 a barrel, the national economy is still in the January 27, 2009 10 City Commission Meeting tanks and it’s affecting Williston, then it will be a different decision. The way things are going on today, he needs to look at things on a daily basis. Kautzman asked Gooch-Egge if Brutger will pay taxes on the raw property on the vacant lots that are there and if the Payment in Lieu will start once the structure is built. Gooch-Egge stated that the tax incentive will not start until the doors are open and they start renting hotel rooms. Up until then they will be taxed on the land they own and if there is a partial structure as of February 1st, they will be taxed for that structure. Klug wonders if there are any other places in the City of Williston that have received the Payment in Lieu of Taxes. Gooch-Egge said there are only two at the present time, which are the Bethel Heritage Homes located behind Murphy Motors and the new Marcil apartment buildings. Rolfstad asked if the existing hotels in town wanted to do some upgrade or expand would they be able to qualify for the PILOT. Gooche-Egge replied that as long as the remodeling or addition is attached to the main structure, they automatically qualify for a three year remodeling exemption at 100%, which exempts any value that would be added for that upgrade or addition for up to three years. If they add an addition or expand their business, they can apply for a new industry or expanding business exemption. Gooch-Egge added that as long as it adds to $5,000 to the upgrade it qualifies for the exemptions. McCade asked Gooch-Egge to repeat the amount of years for the tax exemption. There is a three year and five year exemption and Brutgers requested a 20 year exemption. Gooch-Egge said there are different programs. The three year remodeling exemption is if someone is adding on or remodeling existing property and the new industry exemption is five years at 100%. The Payment in Lieu can go up to 20 years, at which a set amount will be paid each year for the predetermined amount of years. Klug asked when the decision was made to give the Marcil Group the exemption, at which Koeser said it was in the fall of 2007. Klug asked if it was granted because Williston needed the apartments. Koeser stated he feels that was the reason Marcil was granted the exemption. Koeser called a second time for public input. Rolfstad commented that they have met with numerous companies, who have almost chastised the City for not doing anything and they say businesses won’t expand to Williston because there is no housing or places to stay. Some oil related businesses located in Minot, wanted to come to Williston first, but because of the housing they weren’t able to come to Williston. He would like to see Williston go forward and get more businesses in town. Koeser called a third time for public input. Aars feels this is a great idea. She has worked closely with many entities in getting Williston to go forward, but wonders if what Brutger’s Equities is asking for is in line with what the Commission has followed in the past. She wants the Commission to think about whether there is another way the Commission can work with them by either lowering years or amounts with those who have come to town with projects. January 27, 2009 11 City Commission Meeting McCade asked if there are any real numbers on how much this exemption will amount to. Gooche-Egge said it is hard to place a value on a building that hasn’t been built. Tax Equalization bases their numbers on previous year’s sales. There is nothing in Williston to compare these hotels too, so she came up with a rough estimate by contacting other Holiday Inns and Candlewoods in the state and used their information to come up with the estimate. McCade asked what amount of taxes they would be paying without the exemption. Gooch-Egge answered that the Candlewood would have to pay $480,000 in taxes over 10 years and with the exemption they would only pay $100,000. The Holiday Inn would owe $2,400,000 in taxes over 20 years and with the exemption they would only be paying $395,000. Koeser closed the public hearing. Koeser asked Klug if he would be abstaining from voting since he has ownership in one of the hotels in town, at which Klug said he would if Furuseth felt he should, and they could ask him when he returned to the meeting. Bekkedahl wanted to let people know what the abatement committee is and who is on the committee. It’s a committee set up to look at these types of issues with Gooch-Egge’s office, who sets meeting’s up based upon applications they have received. A meeting was held earlier this week, and the members attending were: Gooch-Egge and members of her office; two county commissioners, Dan Kalil and Dave Montgomery; two city commissioners, Bekkedahl and Lawson and a representative of the school, Connie Blatherwick. Bekkedahl stated that the committee recommended the approval to grant the Payment in Lieu of Taxes for the Candlewood and Holiday Inn. He also wanted to point out that the school district, which is the largest taxing entity and has the most to give in the abatement process, was asked specifically about how they felt regarding the project, and they were supportive of the project and the proposal of the tax abatement. Koeser added that Furuseth doesn’t feel Klug needs to abstain from voting on the proposal. MOTION BY LAWSON, 2ND BY BEKKEDAHL, to approve Phase 1 that was recommended by the Abatement Committee to grant the Payment in Lieu for Taxes on the Candlewood Suites at $0 payment through years 1-5 and $20,000 payment for years 6-10. AYE: Bogar, Bekkedahl, Lawson, Koeser NAY: None ABSTAINED AND NOT VOTING: Klug CARRIED: 4-0 Bekkedahl wanted to clarify that although Phase 1 is Candlewood Suites, the name of the project operator is Williston Hotel Hospitality, LLC. MOTION BY BEKKEDAHL, 2ND BY LAWSON, to grant to Williston Conference & Hospitality LLC the PILOT as proposed and approved by the City/County Abatement Committee requesting 20 years at $0 dollars for years 1-5, $20,000 payment for years 6-10, $25,000 payment for years 11- 15 and $30,000 payment for years 16-20. AYE: Bogar, Bekkedahl, Lawson, Koeser NAY: None ABSTAINED AND NOT VOTING: Klug CARRIED: 4-0 5. Accounts, Claims and Bills Not Approved in the Consent Agenda January 27, 2009 12 City Commission Meeting 6. Ordinances 1. First Reading of Ordinance #913 – An Ordinance Dealing with Sellable and Non- Sellable Used Tires Lalim stated the Committee broke the Ordinance out to residential versus commercial types of businesses. On the commercial side this would allow them to either store their tires in doors or store them outdoors and have them screened from view from all highways and major streets. If tires are stored outdoors the tires will need to be protected from water standing inside to harbor mosquitoes. When storing used tires outdoors, a maximum of 100 tires will be allowed at one time. Non-sellable tires should not be stored for more than 30 days. Lalim sent out copies of the Ordinance to the tire dealers and gave them15 days to reply. Dave from Williston Tire said he has no major issues with the Ordinance. He may have more than 100 tires on hand at one time, since the tire company that comes up from Bismark to pick up the tires only comes every two weeks, but they will be stored inside or within screened fencing. Paul from Western Tire is concerned about the screening from the major highway and he didn’t want to spend any money on screening. Lalim let him know that this was one of the major complaints regarding the unsightliness of the used tires. Dana from Basin Tires called and is concerned about spending the money for screening his property from view from the major highway. He doesn’t own the building so fencing it wouldn’t benefit him. He also said 100 tires wasn’t realistic, he averages around 300. Koeser asked how many letters were sent out. Lalim said letters were sent to Basin Tires, Western Tires, Service Plus, Williston Tire, Home of Economy and Arlos. Koeser wondered if Lalim would recommend amending the number of tires if 100 tires aren’t appropriate. Lalim replied that 300 might be okay but the screening is strongly recommended. MOTION BY KLUG, 2ND BY BEKKEDAHL, to amend Ordinance 913 from 200 tires to 300 tires. AYE: Bogar, Bekkedahl, Klug, Lawson, Koeser NAY: None CARRIED: 5-0 MOTION BY LAWSON, 2ND BY BEKKEDAHL, to approve the first reading of Ordinance 913, an Ordinance dealing with Sellable and Non-Sellable Used Tires AYE: Bogar, Bekkedahl, Klug, Lawson, Koeser NAY: None CARRIED: 5-0 7. Petitions, Communications and Remonstrances A. RMEF use of New Armory Curtains Koeser stated that the policy is not to loan the curtains out. Rocky Mountain Elk Foundation is willing to pay a rental fee and cleaning fee. They have used them for the past 10 years. MOTION BY BEKKEDAHL, 2ND BY KLUG, to rent the curtains to the RMEF. AYE: Bogar, Bekkedahl, Klug, Lawson, Koeser NAY: None January 27, 2009 13 City Commission Meeting CARRIED: 5-0 B. Application for Taxicab License Koeser stated that although there is a cab service, Koeser feels the application should be sent to a committee to look at and consider Kemnitz’s request. MOTION BY LAWSON, 2ND BY BOGAR, to refer the application request to a Committee. Koeser wondered which Committee the Commission wanted to send the request to. Kautzman answered that the Franchise Committee is the only one he can think of. Koeser asked Kemnitz to attend the Franchise Committee meeting. Kautzman said he was recently in Bismarck and asked the driver how many taxi cab services were in Bismarck, in which the drivers replied that there is one cab company in the Bismarck and Mandan area. AYE: Bogar, Bekkedahl, Klug, Lawson, Koeser NAY: None CARRIED: 5-0 8. Report of Commissioners A. President of the Board 1. Appointment of Complete Count Committee Chairperson Koeser stated that the Census Bureau and the North Dakota Census People are asking the Commissioners to appoint a committee to find workers to conduct the census survey and to make sure they get a good count. The Census Bureau has asked him to appointment someone but Koeser feels it should be a staff person. If he appoints a staff person, he wants to make sure the Commissioner responsible for them knows the responsibility they would have. This would come closest to Planning and involve Jarcik. MOTION BY LAWSON, 2ND BY KLUG, to appoint Kent Jarcik. AYE: Bogar, Bekkedahl, Klug, Lawson, Koeser NAY: None CARRIED: 5-0 B. Vice-President; Fire, Police, and Ambulance Commissioner a. Resolution amending Resolution No. 06-55 establishing fees pertaining to the Williston Fire Department Ambulance service. Kautzman stated this will readjust to Blue Cross rates and follow Blue Cross changes. MOTION BY LAWSON, 2ND BY BOGAR, to approve the Resolution 09-01 establishing fees pertaining to the Williston Fire Department Ambulance Service. AYE: Bogar, Bekkedahl, Klug, Lawson, Koeser NAY: None CARRIED: 5-0 January 27, 2009 14 City Commission Meeting C. Street and Improvement, Sanitation, Cemetery and Public Works Commissioner D. Finance Commissioner 1. Request from National Guard for Armory Improvement Bekkedahl received a call from Joe Francetich, the Sergeant in charge of the Armory facilities of the local Guard unit requesting to make some improvements on the East side of the New Armory. Francetich is asking the Commission to give approval, in writing, for the permanent structure improvements and then Francetich will forward the letter of approval, if granted, to his chain of command to request funding for the improvements. The National Guard is stating that since they don’t own the facility they do not want to put permanent improvements to it. Francetich feels this will be a way to get a letter up the chain of command and hopefully get approval for the improvements. These will be better improvements for their security and for the facility. MOTION BY BEKKEDAHL, 2ND BY BOGAR, to grant the request from the 818th Engineer Company to install a permanent caging structure in the New Armory. AYE: Bogar, Bekkedahl, Klug, Lawson, Koeser NAY: None CARRIED: 5-0 E. Water Works, Sewer, Airport, Building and Planning Commissioner 9. Report of Department Heads A. City Auditor 1. FY 2008 Grant Award and Consideration FY 2009 CDBG Funds Kautzman stated there is a suggestion from Enno that the Commission formally accept the grant award for the initial amount that was presented last year for the project along Broadway for $76,613. Enno also suggested having the Commission authorize him to apply for a $120,000 grant for the same project with the hope that if the full amount is granted, he would at least get a large percentage for that same project. This is a 4-block area that had a low income area for water/sewer replacements. A majority of the people are not able to afford the assessments that would go along with this. This is a suggestion to at least move it forward to the grant agency side. MOTION BY BEKKEDAHL, 2ND BY BOGAR, to approve their request to accept the grant award from the initial amount for the project along Broadway for $76,613 and authorizing Enno to apply for a $120,000 grant. AYE: Bogar, Bekkedahl, Klug, Lawson, Koeser NAY: None CARRIED: 5-0 2. Credit Card Increase & Add Shawn Wenko as an Authorized User Kautzman stated there is a sign off sheet that the bank requires him to present as it relates to the credit card use through the Economic Development Department, to add Shawn Wenko and increase the credit amount from $5,000 to $10,000 limit. In order to do this the bank asks that the Commissioners approve it at the meeting and sign the form. Wenko did have a credit card through the foundation but that operation has been rolled into the Economic office. January 27, 2009 15 City Commission Meeting MOTION BY KLUG, 2ND BY BOGAR, to add Shawn Wenko to the Visa credit card as an authorized user and increase the credit limit to $10,000. AYE: Bogar, Bekkedahl, Klug, Lawson, Koeser NAY: None CARRIED: 5-0 3. JS & DL Development, LLC Letter of Credit #268 Kautzman stated JS and DL Development were required to have a letter of credit. They have substantially completed the project except for the installation of street lights. They are requesting we release the letter of credit, but the agreement was the street lights were to be installed. Kautzman suggested the letter of credit be reworked to a lower dollar amount which would equal the street lights. JS & DL Development were not pleased with that suggestion stating that they had made a huge investment and have a contract with Triangle Electric. Kautzman did confirm with Triangle Electric that it was weather that stopped them from completing it this last fall and they did say they would look to complete it next spring. The street lights being installed was part of the agreement that was approved, so if it is going to be released it should be brought back to the Commissioners. MOTION BY BEKKEDAHL, 2ND BY LAWSON, to release the Letter of Credit #268 as presented to the Commission. AYE: Bogar, Bekkedahl, Klug, Lawson, Koeser NAY: None CARRIED: 5-0 B. Attorney C. Director of Public Works/City Engineer 1. Lewis & Clark Legacy Trail Authorization to Advertise for Construction Bids Meiers stated the Lewis and Clark Legacy Trail is up for bid and he would like to bid that out with a February 19th bid opening. This will be a portion of the trail from 26th Street to the white bridge. MOTION BY LAWSON, 2ND BY KLUG, to approve the bid opening at 3:00 P.M. on February 19th for the Lewis & Clark Legacy Trail AYE: Bogar, Bekkedahl, Klug, Lawson, Koeser NAY: None CARRIED: 5-0 Bekkedahl asked if the City is bidding this independent of the DOT. Meiers replied it was and that the T&E projects can be bid locally instead of through the DOT, which may cost a little more. 2. 4th Avenue West Reconstruction Approval of Project Concept Report Meiers stated in the project development and getting approval from FHWA, which is Federal Highway, a couple of items came up. At the last meeting it was decided to go with the reconstruction of 4th Avenue West, they won’t participate at this time, so he needs the Commission’s directive whether or not the City January 27, 2009 16 City Commission Meeting wants to pay 100%. The other item with the relocation is the retaining wall being placed there with logos of the Williston Coyote and Williston High School. Again, they said they may not participate because it will be a concrete retaining wall instead of a block retaining wall, but the only difference is there would just be some additional painting costs involved. Meiers needs to know if they don’t participate, does the City want to have those items. Rolfstad asked if the City can deed that property to the property owner’s so they do not have to move the wall, at which Meiers said the property owner’s aren’t interested in deeding over the property. Bekkedahl stated they need to participate in getting irrigation so there isn’t brown grass there. He feels whatever negotiations need to happen on the retaining wall, need to continue since the school is in support of the realignment; the City needs to follow through with the project. MOTION BY BEKKEDAHL, 2ND BY KLUG, to accept the recommendations for the 4th Avenue West Reconstruction. AYE: Bogar, Bekkedahl, Klug, Lawson, Koeser NAY: None CARRIED: 5-0 Meiers stated that Traffic Operations indicated the City needs to remove parking from the one side of the street. There was talk about rebuilding a portion for a turn lane and the parking would be removed then. MOTION BY BEKKEDAHL, 2ND BY KLUG, to hold off on removing the parking from the one side of the street. AYE: Bogar, Bekkedahl, Klug, Lawson, Koeser NAY: None CARRIED: 5-0 3. Amtrak Depot Project Update Meiers stated they have been on hold because there is a $58,000 grant for the accessibility improvements to the doors and also some storm water improvements. At the last meeting it was suggested that Front Street be added. He would like to have one contractor do this so he feels this should be bid along with the DOT to tie these two projects together with Main Street and T&E. In order to do the design, KLJ would like $23,500 as indicated in their proposal for the Main Street design portion. MOTION BY BEKKEDAHL, 2ND BY LAWSON, to approve KJL to do the design. AYE: Bogar, Bekkedahl, Klug, Lawson, Koeser NAY: None CARRIED: 5-0 4. Approval of Engineering Contracts Meiers stated at the last meeting the contracts for the engineers were approved. The contracts are at the same cost numbers and project scopes and he suggested giving approval for the Mayor to sign based upon the attorney’s reviewal since the contracts are so long. January 27, 2009 17 City Commission Meeting MOTION BY LAWSON, 2ND BY KOESER, to approve the Mayor to sign the Engineering Contracts upon the attorney’s reviewal of the contracts. AYE: Bogar, Bekkedahl, Klug, Lawson, Koeser NAY: None CARRIED: 5-0 D. Fire Chief 1. Fire Hydrant Marking System Hanson stated he was asked to look into fire hydrant markings due to the large amount of snow on our streets. There are several different types of fire hydrants ranging from $8.00 to $30.00 each. He mentioned he had two for the Commissioners to consider. The first one is a solid piece of steel with a metal flag on top that will mount to any of the hydrants the City has. The cost for this option would be $8.98 a piece for less than 60, and if they buy over 60 it would cost $7.90 a piece. The City will need approximately 800-900 to do all the fire hydrants. The second option is a fiber glass piece that is reflective and costs more than the first option. It was suggested to get a couple hundred and mark the ones that are most likely to be covered, like the older areas of town where the houses are closer in. MOTION BY BEKKEDAHL, 2ND BY BOGAR, to assign a committee for the Fire Hydrant Marking System. AYE: Bogar, Bekkedahl, Klug, Lawson, Koeser NAY: None CARRIED: 5-0 E. Chief of Police 1. Approval for advertising for patrol car bids Lokken is requesting approval to advertise bids for the 2009 patrol cars. The bid opening would be on February 23rd. MOTION BY LAWSON, 2ND BY BOGAR, to advertise the bids for the 2009 patrol cars with a bid opening on February 23rd. AYE: NAY: None CARRIED: 5-0 F. Building Official G. City Planner 1. Review of Preliminary Plat for Plaza 26 Subdivision, City of Williston West-Dak Properties, LLC Jarcik stated this is the old Wal-Mart property. West-Dak Properties, LLC are looking at creating two additional parcels less than an acre adjacent to 26th Street for increasing commercial opportunities to promote the property. At the corner there is a small unplatted piece of property that belongs to the City that they are proposing be included on the plat. West-Dak Properties, LLC is also proposing an access easement. The Planning and Zoning Commission had a public hearing and recommend approval of the plat. January 27, 2009 18 City Commission Meeting MOTION BY BEKKEDAHL, 2ND BY BOGAR, recommend approval of the Preliminary Plat for Plaza 26 subdivision, City of Williston – West-Dak Properties, LLC AYE: Bogar, Bekkedahl, Klug, Lawson, Koeser NAY: None CARRIED: 5-0 2. Review of Final Plat for Sublot No. 9 – Falk Jarcik stated two final plots went before the Planning and Zoning Commission and the Sublot No. 9 - Falk was approved and is in the position where the title opinion has been ordered and will need to be reviewed by the City Attorney. The Planning and Zoning Committee recommended that the final plat No. 9 for Falk be approved subject to title opinion and Annexation Waiver. This is the property located just north of Halliburton west of the railroad tracks. MOTION BY BEKKEDAHL, 2ND BY BOGAR, to accept the recommendation of the Planning and Zoning Commission for the approval of the final Plat for Sublot No. 9, subject to the title opinion review and a signed annexation waiver by the owner. AYE: Bogar, Bekkedahl, Klug, Lawson, Koeser NAY: None CARRIED: 5-0 3. Review of Final Plat for Sublot No. 7 – Sundby Jarcik stated this is south of 1804 and east of the railroad tracks. This has been reviewed and title opinion has been approved by the City attorney. The Planning and Zoning has recommended authorizing the Mayor to sign the final plat, subject to the owner signing the annexation waiver. MOTION BY BOGAR, 2ND BY LAWSON, to approve the recommendation for the Mayor to sign the final Plat for Sublot No. 7, subject to a signed annexation waiver by the owner. AYE: Bogar, Bekkedahl, Klug, Lawson, Koeser NAY: None CARRIED: 5-0 H. Economic Development I. Airport J. Assessor K. Convention and Visitor’s Bureau 10. Appointments and Consultations with Officers 11. Unfinished Business A. Resident Requirements for Liquor License Kautzman stated the Alcohol and Gaming Committee met this evening and revisions will be forthcoming. The City will be following the state wide requirements, which many states have, and not county requirements. The Committee will rework this into a City Ordinance and present it to the Commission. This has been put on Hold. January 27, 2009 19 City Commission Meeting B. First Reading of a Propane Tank Ordinance Hanson stated there have been several requests to use larger propane cylinders for camp trailers or temporary residences and there has been temporary approval for large cylinders to be used for construction work. He would like to clean up the construction part with an actual permit process instead of a one-on-one basis, which will allow for some consistency. This ordinance will also allow for some larger tanks to be used for temporary used residential properties. The information from propane gas users, North Dakota Propane Association and the International Fire Code are limiting the size to regular camp size cylinders and the residents are saying these aren’t lasting long enough. The mobile and modular homes can be converted to allow for the use of natural gas; however, a recreational vehicle such as a camp trailer may not be feasible. Lalim asked if The City of Williston is the only city that doesn’t allow the use of propane in the city limits. Hanson said he wasn’t sure about the State of North Dakota but there are cities in Montana that don’t allow this. MOTION BY LAWSON, 2ND BY BEKKEDAHL, to pass the first reading of Ordinance No. 915, a Propane Tank Ordinance. AYE: Bogar, Bekkedahl, Klug, Lawson, Koeser NAY: None CARRIED: 5-0 12. New Business 13. Executive Session 14. Adjourn MOTION BY BEKKEDAHL, 2ND BY LAWSON, to adjourn.
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