Committee Minutes

MINUTES/FINANCE COMMITTEE
Tuesday, July 12, 1994 - 3:30 p.m.

Members present: Carpenter, Babinchak, McCabe.

1. Application for exemption of improvements:
a) 112 North 3rd Street.
Based on recommendation from the city assessor re. application for three-year exemption for improvements to property at 112 North 3rd Street, that improvements qualify, and that he recommended approval of the exemption, it was moved by Babinchak and Carpenter that the application be approved. Motion carried.

2. Matter of setting value of three City properties in Medvue
Estates 6th Resubdiv. (loc. between Knight Drive and 17th
Ave.S. and between Columbia Road and English Coulee), and
advertise said properties for sale.
Held in committee.

3. Matter of purchase of excess right of way on south side of
U.S. Highway 2 between N. 42nd and 43rd Sts. from the ND
Department of Transportation.
Mr. Schmisek reported this property is on Highway R/W and City has offered to purchase property for Convention and Visitors' Bureau building, purchase price of property is $20,500, with funds out of Building Fund, and that City will enter into lease agreement with Convention & Visitors Bureau to recover costs.

Mr. Vein reported area has been platted and R/W plat has been filed, that property is located across from Holiday Inn, and that price more than fair. It was noted that the Highway Department cannot sell to private party.

McCabe reported present.

Representatives of Convention and Visitors Bureau were present. Mr. Swanson reported that he has roughed out draft of standard lease agreement, but lacks detail. Mr. Schmisek reported that originally it was determined that they would recover costs in about 3 year time frame, and that was only one of terms discussed. He suggested negotiating terms of lease with CVB and bring back to committee.

Reps. of CVB stated that the 3-year payback was agreeable, have reviewed lease and it's acceptable. They stated they would only utilize area from lift station west, used for building, landscaping and parking, and that area east of lift station was small section of property they won't utilizie, however, stated they would maintain. It was noted that City would retain ownership of the property, and City would have liability; Mr. Swanson stated that lease has sufficient hold harmless provision, but liability stillthere for us. He also reported that City will be getting quit claim deed on the property.

MINUTES/FINANCE COMMITTEE
July 12, 1994 - Page 2

Moved by McCabe and Babinchak that we authorize purchase of the excess right of way for $20,500 and negotiate terms of the lease
with the Convention & Visitors Bureau. Motion carried.

4. Financial report for TCI of North Dakota, Inc.
Held to first meeting in August.

Mr. Swanson reported he is in the process of negotiation with TCI for new franchise agreement, and generally speaking thinks will pretty much be following what East Grand Forks has done and is anticipating that next fall will have package for committee. Mr. Swanson stated they are obligated to give us a report on the revenues for the City, not expenditures. The committee suggested including provision in new franchise agreement re. audit report that TCI give report on revenues and expenditures, Mr. Swanson stated they have some language in the proposed franchise.

Mr. Schmisek reported that Independent Auditor's Report listed amount of gross revenue at $4,566,899 for TCI of North Dakota, Inc. from subscribers in the City of Grand Forks for the year ended December 31, 1993, and it was suggested that a comparison of that figure be made with franchise fee received.

5. Matter of job descriptions and organizational chart for
auditing department, including MIS
Held in committee.

6. Matter of budget amendment.
Mr. Schmisek reported amendment covers 3 different areas using prior year's cash carryover: 1) Human Needs and Promotions budget; 2) Infrastructure acct. fund; and 3) wastewater department. Moved by Babinchak and McCabe to approve amendment, and to introduce ordinance for first reading. Motion carried.

7. Temporary and overtime statements for period ending May 31,
1994 and for period ending June 30, 1994.
Mr. Schmisek reported all departments within budget allocations. Moved by Babinchak and McCabe to approve statements for May and June. Motion carried. (committee only)

NOTE: The committee will meet Monday, July 18, at 7:00 p.m. in Room 304 to consider the 1993 annual financial report and audit for the City of Grand Forks.

Meeting adjourned.

Alice Fontaine
City Clerk

Dated: July 13, 1994.