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APPROVED AUGUST 24, 2020 CITY COUNCIL SPECIAL MEETING MINUTES

The meeting was called to order by Mayor Daniel Imdieke on Monday, August 24, 2020 at 5:00 pm. Upon roll call, the following council members were present: Jon Ptacek, Randall Meidinger, Wayne Ehley, Dennis Morris, Travis Dockter, Shelly Hauge via teleconference. Also present: City Attorney Joseph Hanson, City Administrator Sharon Jangula, Director of Public Works Virgil Hulm. Scheduled Visitors: AJ Tuck, Ulteig Engineering.

The Pledge of Allegiance was recited.

The purpose of the meeting was to discuss the development of the East Side Addition.

AJ Tuck presented the council with the Preliminary Plat of the East Side Addition. He told the council that a name should be selected for the addition. He also said the plat includes approximately 3.5 acres which would have to be purchased from Dennis and Eileen Morris.

After discussion, a motion to name the addition “Eighth Street Addition” was made by Randall Meidinger, second by Wayne Ehley. Unanimous aye vote; motion carried.

A motion to purchase the land for $10,000 was made by Wayne Ehley, second by Shelly Hauge. Motion carried 5-0-1 with Dennis Morris abstaining.

A motion to approve the plat was made by Jon Ptacek, second by Randall Meidinger. Unanimous aye vote; motion carried.

Lengthy discussion took place on paying for the improvements to the lots. The city has received initial approval for a loan from BND at 2% interest for thirty years. The preliminary estimated cost to develop the property is $1,500,000.

Sharon Jangula informed the council if the city moved forward with the loan, the annual loan payment would be approximately $67,000. To secure the loan, the city would create a special assessment district for the new development (21 lots). Th e city would assess itself, and per the ND Century Code, the amount of the assessment would be spread as an excess mill levy on all taxable property in the city.

The council discussed how to meet the annual debt obligation without the need to levy mills for the payment. Some of the ideas discussed were as follows: $200,000 of reserves in the Sales Tax Funds, Utility Funds and the General Fund could be transferred into the new development fund to establish the fund. Money from the sale of the lots would be put into the fund. In 2021, the 02-1 Water/Sewer Main debt will be paid in full. The city has been making an annual payment of approximately $43,000 towards that debt since 2003. The city could direct that payment towards the new development payment.

There was also discussion that excess money in the sales tax fund could be transferred on an annual basis. Based on the budget for 2021, this would be approximately $15,000. There was also discussion that the city sales tax has been stable and possibly increasing so this amount could be more.

The council also looked at the worst-case scenario with no lots selling and no reserves left to make the payment creating the need to levy taxes. Based on current valuations, the additional cost in property taxes for a home valued at $100,000 would be approximately $120.00; a $50,000 home – $60.00 and a $200,000 home – $240.00.

After reviewing and discussing the plans and specs for the project, a motion to approve the plans and specifications as presented for the Eighth Street Addition was made by Randall Meidinger, second by Dennis Morris. Unanimous aye vote; motion carried.

Discussion was held on bidding the project. AJ Tuck said bids can be requested to include an alternate bid to complete only Phase 1 of the project. Based on the bids, the council can better determine how to proceed with the development. A motion to allow Ulteig Engineering to bid the project was made by Jon Ptacek, second by Wayne Ehley. Unanimous aye vote; motion carried.

The council will have a public information meeting to discuss the project during its September 8th regular meeting.

The next regular meeting will be held on Tuesday, September 8, 2020 at 5:00 pm.

A motion to adjourn was made by Jon Ptacek, second Travis Dockter. Meeting adjourned.

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