Committee Minutes

MINUTES/FINANCE COMMITTEE
Tuesday, March 15, 1994 - 3:30 p.m.

Members present: Kulas, Johnson, Shores.

1. Matter of job description for director of health department.
Dan Gordon, personnel assistant and safety officer, reviewed job description for the director of the health department; that the revised description gives more flexibility to the position (current description too specific in duties). There was some discussion re. education requirement and survey of other cities (Rochester, Fargo, etc.); the committee questioned need for master's degree, that this would drive up cost and classifi-cation. Mr. Gordon stated that by requiring master's degree, will give more administrative experience. Jay Graba stated that master's degree would change classification by one degree; that in recruiting this type of position, not going to attract that many people. Moved by Shores and Johnson to approve job description as submitted. Motion carried.

2. Application for abatement of taxes:
a) Larry F. Lizakowski, 408 North 8th Street (Lot 16, Block 18, Budge & Eshelman's Second Addition).
Mel Carsen, city assessor, reported this is 25 ft. lot that is vacant as building was demolished, and lot sold to Mr. Lizakowski for $2,000 by Veterans' Administration; and that Mr. Lizakowski owns adjacent lot (37.5'), and his recommendation is to reduce value for 1993 from $4,300 to $3,200.
Larry Lizakowski questioned how $4,300 figure reached; lot has no value unless to adjacent property owner; can't sell property, can't build on it. Mr. Carsen stated you can building on a 25 ft. lot; but Mr. Lizakowski stated that market for that very slim. Mr. Carsen stated that value placed on this property consistent with values in the area.

After further discussion it was moved by Shores and Johnson that we lower the market value to $3,000 for 1993. Motion carried.

3. Matter of bonds for United Hospital.
Dwight Thompson, United Hospital, presented request for issuance of $20 Million in Revenue Bonds on behalf of the United Hospital to finance new capital projects, and also stated they have retained the Dorsey & Whitney firm as bond counsel, noting City's relationship with the Dorsey & Whitney firm. John Schmisek, city auditor, reported that a public hearing needs to be scheduled for April 18, that this will put City's bonds over
$10 Million for the year and that makes the difference between bank qualified and non-bank qualified. The City itself may issue more than ten million dollars of bonds in 1994, but unsure at this time. If the City does not go over $10 Million, agreement would be made with Hospital that they pay the City the difference in interest costs between bank qualified and non-bank qualified.

Mr. Thompson informed committee that the State Health Council had MINUTES/FINANCE COMMITTEE
March 15, 1994 - Page 2

given approval to their project this morning.

Moved by Johnson and Shores for adoption of the resolution relating to the issuance of revenue bonds on behalf of the United Hospital, and calling for a public hearing to be held on April 18, 1994 at 7:30 p.m.; give City's consent to the Dorsey firm to act as bond counsel for the United Hospital and to serve as adviser to United Hospital in its reorganization efforts. Motion carried.

4. Matter of financing new building for Convention and Visitors'
Bureau.
Held in committee for further information.

5. Matter of City-owned property.
Dan Sampson, 3602 11th Avenue North, stated he is interested in purchasing property at 2 and/or 4 South 4th Street, questioned why City not interested in selling at this time and doesn't understand why when have private developers interested. Mr. Schmisek reported that properties sold to private developers, that buildings cash flow, however, after 5 years City got properties back with taxes and specials unpaid; and that City would want to guarantee that those taxes and specials be paid. Mr. O'Leary reported that buildings remodeled with CDBG monies, etc., storefronts were done on the buildings, that they did mechanical and electrical work; that buildings sold and 5 years later City got properties back with taxes unpaid; that City got stung twice - two different developers. It was also noted that in addition to taxes and specials there are Mall operating costs that have to be paid.

The committee held the matter in committee and instructed Mr. Schmisek and Mr. O'Leary to come up with price to reimburse City for monies put into the buildings, plus taxes and specials.

6. Matter of remodeling property at 25 S. 3rd Street.
Dick Jackson, mall mgr., and Curt Siewert, Community Development Office, submitted plans for remodeling of former NSP building at est. cost of $40,000; that Equitable Life Insurance Co. interested in rental space in this building, but we would need to refurbish front part of the building, walkway into mall area, etc. Mr. Jackson also reported that he has other parties looking at space. It was reported that the only source of monies is out of City Special Assessment Deficiency Fund, with rents going back into the fund. Mr. O'Leary reported that to make optimal use of the building, have to make into smaller rental units. Mr. Shores suggested a 5-year lease with Equitable Life so City could recoup investment, he has no problem with 3-5 year renewal. Mr. Jackson stated that shouldn't be a problem working that out,

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Moved by Shores that we approve plan, with $40,000 to be taken out of Deficiency Fund as loan to be repaid through rentals to the fund; that we negotiate for minimum of 5-year lease with Equitable Life, with a 3 to 5 year option for renewal; Johnson seconded the motion. Motion carried.

7. Request for extension of leave without pay by Robert Corbett.
Jay Graba, personnel officer, reported that 6-month leave without pay granted to Mr. Corbett expires March 31, and he is requesting additional extension of 6 months; that the City is paying 75% of Mr. Corbett's health insurance premium, and he is asking for continuation of that. He also noted that Mr. Corbett is drawing disability. The committee questioned whether Mr. Corbett's position is held open, Mr. Graba stated it wasn't, and that if Mr. Corbett comes back, would have to find position for him. He stated this is not putting burden on the department, and he would recommend extension of the leave without pay. Mr. Corbett stated he has been off work since January 7, 1993, with one 6-month extension granted, other time covered by vacation and sick leave. The committee expressed some concern re. setting of precedence, and didn't have doctor's report. Mr. Corbett stated that one year leave would be max.; that he had check-up first week in March, that his eyesight had improved (one line on the chart); and also noted that person has to be disabled for 2 years before eligible for Social Security benefits. Moved by Johnson and Shores to grant extension for three months, and fund insurance premium at 50%, and to look at again at that time. Motion carried.

8. Matter of polling places and inspectors for June 14 election.
Mr. Schmisek submitted listing of polling places and inspectors with recommendation for approval and submittal to the County, and that hours of polling places within the city be set as 7:00 a.m. to 8:00 p.m. Shores and Johnson so moved. Motion carried.

9. Matter of overtime rate for special police and fire services.
Mr. Schmisek reported that per Section 2-0508 of the City Code the city council will establish an overtime rate for special police and fire services, that rates were calculated to include benefits: police services: $24 per hour; and fire services: $23 for Firefighter I, $24 for Firefighter II, and $26 for Firefighter III. Moved by Johnson and Shores that we establish a rate of $24.00 per hour for special services. Motion carried.

10. Matter of vehicle mileage reimbursement through grant funds
for use of private vehicle.
Held in committee for further information.

11. Matter of appointment of member to FY 1995 Budget Framework
Committee (chairman or his designee).
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Chairman Kulas announced that he had appointed Mr. Shores to the committee in his stead.

12. Change order for City Hall project, No. 3812.
Change Order No. F-X, Gaffaney's for interior furnishings, for a deduct of $579.00 for deletion of three typewriter stands was reviewed by the committee. Moved by Shores and Johnson to approve change order No. F-X for a project decrease of $579.00. Motion carried.

Meeting adjourned.

Alice Fontaine
City Clerk

Dated: 3/16/94.