Committee Minutes

MINUTES/FINANCE COMMITTEE
Tuesday, December 28, 1993 - 3:30 p.m.

Members present: Kulas, McCabe, Shores.

1. Matter of management of property at 2 1/2 and 4 1/2 South 3rd
Street.
Jerry Meagher, rep. Northern Realty Mgmt., Inc., presented proposal to manage property at 2 1/2 and 4 1/2 S. 3rd Street once City takes ownership of the property sometime in mid January, that their fee would be about 6% of gross revenues if had both properties. He stated they manage approx. 800 apartments, and a number of commercial properties, have ten years' management experience in both commercial and apartment rentals; and that they are presently managing property at 4 1/2 South 3rd Street (3 apts.); 8 1/2 .S. 3rd Street (23 apts.); and 12 1/2 S. 3rd Street (22 apts. and commercial space on first floor). He also noted that there is a common walkway that runs from 2 1/2 through 16 1/2 on the second level, and that they have very capable manager who lives on the premise. It was noted that Dick Jackson manages commercial rentals in City-owned building and Community Development manages apartment rentals in City-owned property. John O'Leary reported that Urban Development has put lot of rental rehab. monies into those two buildings and would manage those properties if committee so wishes. Mr. O'Leary also reported that his office (Curt Siewert) also manages property at 16 1/2 S. 3rd Street. The committee asked Mr. Schmisek, city auditor, to provide them with cash flow figures on these buildings when City takes over. Held in committee until second meeting in January (Tuesday, January 25).

2. Matter of applications for tax abatement by RDO Foods.
Mr. Paul T. Horn, representing RDO Foods stated that the reason for filing was that valuation presented by assessor or placed on property by the assessor, had no bearing on what they paid for the land and buildings; that sale arm's length transaction between buyer and seller had some relevance to the property, that because of disparity felt obligated to bring before this group (and also before County). He stated that numbers reflected in work sheet drawn by assessor are more than when purchased from Pillsbury Co.; and they had submitted to committee summary of appraisal figures provided to them by Pillsbury. He reported in answer to Mr. Shores' question, that they have not made any sales to Pillsbury and have not purchased any product from Pillsbury. He also stated that information provided by assessing on plants on east coast and in Idaho were not valid comparables. He reported that purchase price of the property was $936,000, which included 80 acres of land to the north, and they do not feel proposed market value fair as presented by the assessor. He also stated that when purchased, facility had no equipment or machinery, except boiler; that when Pillsbury left they took all the equipment with them.

Mel Carsen, city assessor, submitted map showing property, which consists of 5 parcels, and a summary of current market values, abatement request, and proposed 1990 market value. He reviewed

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December 28, 1993 - Page 2

vales/sales of comparable properties (incl. Simplot, American Woods, Coke plant); and reviewed comparable sales on potato processing plants in Washington State.

Mr. Carsen explained abatement process to Mr. Horn: that this committee would make recommendation to council, then to County for their consideration; with next step District Court. He also stated that under State law burden of proof is on the applicant. The committee asked Mr. Horn whether he wanted a delay on this matter, or committee could make recommendation and could be pulled on council floor on January 3.

After further discussion a compromise was reached of $15.15 sq/ft on the main plant, and it was moved by Shores and McCabe to grant the five abatements in part as follows:
Parcel #1309.001.00.00 from $ 726,340 to $ 682,900
Parcel #2605.00l.00.00 from $ 263,910 to $ 222,400
Parcel #1117.001.02.00 from $ 13,968 to $ 12,000
Parcel #2404.004.00.00 from $ 73,530 to $ 41,700
Parcel #1705.017.00.00 from $2,228,468 to $1,456,200
Grand totals $3,306,216 to $2,415,200 Motion carried.

3. Matter of authorizing fire chief to enter into negotiations for
purchase of land for future fire station site in southwest sec-
tion of city.
Chief Aulich asked that this matter be held.

4. Matter of status of attorney general's opinion re. NDCC 40-13-
04 salaries of officers fixed by ordinance/diminution during
term prohibited - relative to proposed civil service ordinance
changes.
Mr. Schmisek reported that he had discussed with Mr. Swanson, and that there is nothing to get opinion on at this point. Mr. Shea stated that Employee Reps. would like input in this matter. Moved by Kulas and McCabe to refer this matter to the Civil Service Review Committee. Motion carried. (committee only)

5. Matter of lab. testing fees.
Hazel Fetters-Sletten, water supt., reported they had conducted survey and are proposing some increases; and reviewed with the committee. She stated that cities, etc. would have option of having State or private lab do testing. Moved by Shores and McCabe to approve proposed fees (as listed). Motion carried.

6. Temporary and overtime statements for September, October and
November, 1993.
The committee reviewed statements. Moved by Shores and McCabe that the statements be approved. Motion carried. (committee only)

7. Matter of remodeling of second floor of old City Hall bldg.
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December 28, 1993 - Page 3

Mayor Polovitz, Mike Murrie, EAPC, and Gary Urness were present. Mr. Murrie presented revised figures showing estimated cost of $44,300; $33,602 for work on second floor to remodel office space; $3,500 for additional work needed on basement level to make escape corridor for exiting requirements; $4,000 in contingencies; architect fees for final inspection, etc. Mayor Polovitz reported that there are approx. $26,000 left in fund plus interest earnings of $100,000. He also noted that second floor will be furnished with old furniture.

There was also some discussion re. problem with heating in auditor's office. Gary Urness stated this was design and contractor's problem (4'x4' wall not constructed but 1" styrofoam put in); and that this will be taken care of.

Moved by Shores and McCabe that we spend up to $44,500 to cover items listed, with monies to come from contingencies and interest funds. Motion carried. (Council at 12/20/93 meeting gave committee power to act on this matter.)

8. Matter of job description for housing maintenance supervisor.
John O'Leary reviewed job description with committee; that they were proposing to add new position in the Housing Authority. He reported that Housing Authority manages 1,000 units of project based assistance; they have 7 maintenance people who work for 4 administrators; that they are proposing to establish maintenance division to centralize maintenance efforts and trying to do more capital improvements in-house and trying to be more responsive and efficient. He noted that some units date back to 1970's and as units get older require more maintenance. He also noted that the 7 maintenance people aren't classified positions but contracted to projects. He reported that the Housing Authority Board looked at and concurred with proposal. He reported they are requesting authorization to hire maintenance supervisor, salary paid out of Housing Authority budget, and this will be full-time permanent position, probably with a grade 7 or 8. He also noted this has to be self-sufficient, if units not there to support position, would eliminate. He also reported that Mr. Carpenter has some reservations about adding another level of bureaucracy.

Moved by McCabe and Shores to approve job description. Motion carried.

9. Budget fund transfer request.
Mr. Schmisek reviewed request to transfer $2,060 within Misc, Fund budget (from contingency to telephone and postage). Moved by Shores and McCabe that transfer be approved. Motion carried.

Meeting adjourned.
Alice Fontaine, City Clerk
Dated: 12/28/93.