Committee Minutes

MINUTES/FINANCE COMMITTEE
Tuesday, January 25, 1994 - 3:30 p.m.

Members present: Kulas, Johnson, McCabe, Shores.

1. Applications for abatement of taxes:
a) 614 and 618 6th Avenue North.
Mel Carsen reported this application involves property (two single family homes) owned by Vernon and Marian Knutson on Lots 30 and 32, less front 50', Block 28, McCormack's Addition, and that the house at 614 was damaged by fire on September 23, 1993 leaving a $3,000 improvement value. He reported that the abatement asks that the value of the improvement be reduced to $3,000 for the last three months of 1993, with no change on land value or value of 616-6th Ave.N. He recommended approval of the application as submitted. Moved by Johnson and McCabe that the application be approved as submitted, and the valuation of the improvements be reduced to $3,000. Motion carried.

b) 814 North Columbia Road.
Mr. Carsen reported that the property is owned by David Gunther, that the abatement involves single family house with a basement apartment which was extensively damaged by fire on September 26, 1993 and asks for reduction in improvement value to $4,000 for the last 3 months of 1993. He stated building is total loss except for basement and would recommend approval of the application as submitted. Moved by Shores and Johnson that the application be approved as submitted, and the value of the improvements be reduced to $4,000. Motion carried.

2. Matter of 3-year tax exemption on remodeled properties:
a) 303 2nd Avenue North
Mr. Carsen reported this application covers remodeling of building at 303 by Grand Forks Herald, and qualifies for exemption with exception of walkway, and he would recommend approval with exception as noted.

b) 2024 University Avenue
Mr. Carsen reviewed application and reported this property extensively remodeled, qualifies for exemption without exception, and he would recommend approval.

Moved by Johnson and Shores to approve applications with any exceptions as noted. Motion carried.

3. Matter of management of property at 2 1/2 and 4 1/2 South
3rd Street.
John Schmisek, city auditor, reported City has received deed on both of these properties; and reviewed cash flow statements for these properties: 2 S. 3rd St. (based on 9-months) showing net operating income of $15,348, excluding real estate taxes and special assessments), with net income of approx. $4,950 if those items adjusted; and 4 S. 3rd St. (apartment rental only) showing net operating income of $6,269, with net loss of $1,843 if income MINUTES/FINANCE COMMITTEE
January 25, 1994 - page 2

adjusted for taxes and assessments and management fees; however, these amounts do not include revenue and expense for craft shop. He noted that those figures would offset the loss. Dick Jackson reported that Insty Print, 2 S. 3rd St., walked out couple months ago, and has filed bankruptcy; he has tenant for the print shop; and also for KD's restaurant. He also noted they had some broken water lines (frozen pipes) in the restaurant area, which have been taken care of by County and City.

Lee Johnson, Northern Realty, stated they presently manage property at 4 South 3rd Street, and also at 8 and l2 South 3rd St.; and if had 2 and 4 S. 3rd Streets would give consistent management; they have resident manager; and their management fee around 6% of rents collected. He also reported they do more screening on prospective renters.

Curt Siewert, Community Development, reported he manages apartments at 16 1/2 S. 3rd Street, and they would manage these properties if it's wish of the City, with direct overhead as management charge, but didn't know what that amount would be.

Moved by Shores and McCabe that Urban Development Office tentatively be directed to manage these properties, subject to reviewing fees, effective March 1, 1994. Motion carried.

It was noted by the committee that Richard Jackson, manager of City Center Mall, would continue to manage City's commercial properties.

4. Matter of City-owned lots:
a) 1310 8th Avenue North
The city auditor reported his office is looking for approval to offer lots for sale at listed price. Howard Swanson, city attorney, reported house tagged as substandard, and if don't have house on the lot, price higher. He stated that the City has received number of inquiries re. purchase of this property, several would like to have salvage on building; however, committee may want to consider demolishing.

It was noted that this property is zoned B-1, commercial, and house wouldn't have much value; being used for parking vehicles.

Mel Carsen, city assessor, reported valuation of property without house is $14,000; with house, $11,000; demolition cost est. at $2800. He also reported this is odd-shaped lot, 7000 sq.ft.

Moved by Kulas and Shores that the engineering department be authorized to arrange for demolition of the building, that the property be declared as surplus and listed for sale. Motion carried.

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b) 318 North 4th Street
It was noted that a building had been demolished on this property. Moved by Shores and McCabe that we declare this property as surplus and authorize sale of the property. Motion carried.

5. Matter of cable TV service standards.
Howard Swanson, city attorney, passed out information - FCC customer service standards - summary of FCC rules that cable company has to comply with, and council should be aware of; and has drafted so have ability to incorporate any changes in federal regulations. He presented copies of resolution to provide for regulation of customer service standards of any cable television system operating in the city. He stated there are a series of public hearings that FCC sponsoring in San Francisco, Seattle, Chicago, Boston, etc. and it may be appropriate for someone to appear; they are sending out regular teams 1) one day for state and local governments, 2) 1 day for consumer protection groups, and 3) 1 day for public forum to get information as to what is occurring nationally, what FCC can do to assist; he will keep committee informed. He also reported that the resolution would take effect as soon as the City adopts it.

Mr. Swanson noted that Mr. Hovet of TCI North Dakota was unable to appear today and had asked that the matter be held. The committee held the matter until their next meeting (February 15).

6. Matter of City chemical and substance abuse policy.
Mr. Swanson presented copy of redraft, that they had made changes as directed after last meeting, and reviewed substantive changes with the committee: policy to apply to both alcohol and drugs across the board; provision re. employees who volunteer for treatment; matter of as to when employee needs to advise supervisor, at time of arrest or of conviction; whether only employees required to have valid driver's license for their job need inform supervisor of suspension or revocation of license, section drafted to apply to all employees as revocation due to violation may be indication of more severe problem and City should be aware; notification of use of prescription drugs that may affect driving ability, etc.; instructions to supervisor how to handle, etc.; one item quite controversial - to specifically authorize search of City property that may be under particular control of employee; section 11 deals with supervisor who encounters employee under influence of alcohol or drugs. He stated that because of these changes and as employees haven't had opportunity to review, doesn't see any need for committee to act on at this meeting. Mr. Graba urged committee to take good look at putting instructions to supervisors in policy, feels there should be two policies. Mr. Swanson stated he holds opposite view. Mr. Graba also suggested they take long look at subsection to do with search.
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Held until February 15 committee meeting.

Mr. Swanson noted that City has to be in compliance with federal law. It was noted that Public Transportation Department has separate policy because drivers are subject to random drug testing without cause.

7. Temporary and overtime statement for December, 1993.
The committee reviewed the statement. Moved by McCabe and Shores to approve. Motion carried. (committee only)

8. Matter of billing process for snow removal and grass mowing.

The city auditor reported that he had met with reps. of the auditor's office, engineering department, street department and Council Member Beach and established the following process for notification: 1) the street department will submit assessment worksheets to the city auditor's office after completing the work; 2) the auditor's office will place legal description on the notice and accumulate from first through last day of the month; and 3) within two weeks after last day of the month send notice to the owner of record that the property will be assessed in the fall for the work. Mr. Schmisek also noted that the additional work may require hiring of temporary position, with costs to be charged back against properties. He also noted that he may visit with Senior Citizens Center for temporary person or volunteer. Moved by Johnson and McCabe to receive and file information. Motion carried.

Meeting adjourned.

Alice Fontaine
City Clerk

Dated: 1/26/94.