Committee Minutes

MINUTES/FINANCE COMMITTEE
Tuesday, September 13, 1994 - 5:30 p.m.

Members present: Carpenter, Babinchak, Geller, McCabe.

1. Matter of studying termination or freezing of current defined
benefit plan and starting a defined contribution plan.
Mr. Carpenter stated he thought it was important that they authorize the city auditor to begin gathering some information as to what options might be in freezing or terminating the plan, what it might cost, need to find out what alternatives are. He stated that the trend is that people are going to the defined contribution plan, that may or may not be appropriate for the City of Grand Forks, but need information to make that determination.

Moved by Geller and Babinchak to direct city auditor to research alternatives and cost. Motion carried. (committee only)

Al Grasser, member of Pension Committee, asked that copies of information be distributed to them.

Moved by Geller and McCabe to suspend agenda and to consider item No. 7. matter of public works/city engineer position, for discussion. Motion carried.

2. Matter of public works/city engineer position.
Mr. Schmisek, city auditor, read report from public service committee recommending creation of a new job description for city engineer and director of public works position.

The committee noted that there presently are two separate job descriptions, one for city engineer and one for director of public works, and that committee would be looking at eliminating both of those job descriptions and coming up with one new consolidated job description that would include in the one position, director of public works and city engineer.

Ken Vein distributed copies of job description prior to separating of the two positions, and modified job description for the combined position, and reviewed with the committee. He stated he was comfortable in having one engineer/director of public works combined position, and has two good assistants: Al Grasser as assistant city engineer and Mark Lambrecht, assistant director of public works.

Jay Graba, personnel officer, reported that you will find that cities have position(s) both ways, whatever works best; and that changes in the job description are: added stormwater division, dropped airport, changed title, no significant changes.

Mr. Geller questioned combining of the two positions, technologies for those positions increase and how can one person stay on top of that, functions (i.e., engineer and sanitation)

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September 13, 1994 - Page 2

completely different. Mr. Grasser stated positions are related, i.e., wastewater - designing of pumping stations, etc. all engineering type functions, intertwined - and definite advantage for one person ultimately responsible.

There was some discussion as to need for someone with financial skill level to run public works departments which are enterprise funds. However, Mr. Carpenter stated he was comfortable with individuals currently in those positions, but would like to see something more on financial side addressed in job description. Mr. Schmisek stated he thinks the system working well, and have closer working relationship re. financial matters - consulting on costs, rates, and would envision more of that.

Moved by Babinchak and Geller to create the combined position of city engineer/public works director and adopt job description as presented. Motion carried.

3. Matter of request by Bob Corbett for extension of leave with-
out pay and payment of health insurance. Bob Corbett was present. Jay Graba, personnel officer, reported that extensions for leave without pay had been granted for 3-months at a time to Mr. Corbett and payment of 50% of health insurance premiums (current leave without pay expires September 30); that Mr. Corbett is a long time employee; however, Mr. Corbett has not improved to point where he can return to work, and are asking for help in paying for health insurance. Mr. Corbett will be eligible for medicare July 1, 1995. Mr. Graba estimated cost of 50% of health insurance premium at between $1500 and $2000.

Mr. Hagness spoke in favor of granting extension, and suggested giving Mr. Corbett extension for the entire 10-month period.

Moved by Geller and Babinchak to grant extension of leave of absence without pay and payment of health insurance coverage through June 30, 1995 at 50% of the premium. Motion carried.

4. Matter of developing a depreciation reserve policy and how to
fund depreciation reserve.
Chairman Carpenter reported this is to direct the city auditor to determine what equipment is out there, what depreciation there, and to set up a depreciation reserve fund that each department would contribute to and where capital items would come from; have auditor's office put together information and then decide whether want that policy and how to fund it.

After further discussion it was moved by Geller and McCabe to direct the city auditor to work on depreciation reserve policy. Motion carried. (committee only)

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5. Matter of changing ordinance re. transfers from wages/salary
to other areas of the budget.
Mr. Schmisek distributed copies of Ord. Nos. 2860 and 3144 re. budget transfers. Chairman Carpenter briefly reviewed history of this: that there was State Century Code provision that did not allow transfers between wages and salaries or other areas of the budget, that was removed by the State Legislature, and then council changed some of its provisions but not enough support on council to change completely and current status is that transfers may be made with favorable vote of 3/4th of all members of the council. He stated that he is opinion that council ought not to be micromanaging, departments ought to have the ability to transfer within areas of the budget, shouldn't treat wages/salaries any differently, shouldn't have this restriction.

Mr. Schmisek stated he would endorse taking restriction off, as it does allow the departments more flexibility in using those funds. It was noted that transfers can be made by the department now except wages/salaries, but not budget amendments.

Mr. Geller disagreed, not willing to remove entirely. Chairman Carpenter stated that we have auditing/finance department that would be check, and also mayor. Mr. Schmisek stated that auditing department would have to look at those items, and if there appeared to be abuses, they would report to the mayor, that if mayor felt it was being abused, would recommend to council that policy be rescinded.

Moved by McCabe and Carpenter to remove language from the ordinance dealing with council control over budget transfers, but retaining language that no transfer shall be made from any debt retirement fund. Motion carried.

Moved by McCabe and Carpenter that there be a policy created that we require the finance department to report to council members any transfers to or from Wages & Salaries and any other category of the budget. Motion carried.

6. Matter of ordinance allowing tapping fees.
Held.

7. Matter of job descriptions and organizational chart for
finance department (incl. auditing and MIS).
Held.

8. Matter of budget amendments.
a) MIS - $210.00
Request to amend budget to transfer funds from Cash Carry Over to Mtce. General Equipment (to purchase two power supplies). Moved by Babinchak and Geller to approve the request for budget

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September 13, 1994 - Page 4

amendment and to introduce an ordinance for first reading. Motion carried.

b) Emergency Management - $17,812.00
Request to amend budget to reflect FEMA grant funds. Moved by McCabe and Geller to approve request for budget amendment and to introduce ordinance for first reading. Motion carried.

c) Emergency Management - $1,105.00
Request to amend budget to transfer funds from 1993 cash carry over for purchase of plain paper FAX machine. Moved by Babinchak and Geller to approve request for budget amendment and to introduce ordinance for first reading. Motion carried.

d) Community Relations Officer - $2,655.00
Request to amend budget to transfer funds from cash carry over for office supplies and consultant fees. Moved by Geller and McCabe to approve request for budget amendment and to introduce ordinance for first reading. Motion carried.

e) Fire Department - $6,000.00
Request to amend budget to transfer funds from 1993 cash carry over to Wages & Salaries as approved by council 11/15/93 to cover additional costs for 2 new employees if other funding not available in 1994). Mr. Schmisek stated he would recommend and concur with request. Moved by McCabe and Geller to approve request for budget amendment and to introduce ordinance for first reading. Motion carried.

9. Matter of rental rates in city.
McCabe brought up the matter of high rents; that there are cities that have rent control boards, and asked if there was any thought about having that in Grand Forks. Mr. Carpenter stated there are driving circumstances because of the Air Base, etc. that's causing a lot of the problem, and there's good chance it will correct itself one way or the other after 1995. He stated that putting in rent control would not expand housing in Grand Forks. He also stated that it would be his recommendation not to bring up.

Meeting adjourned.

Alice Fontaine
City Clerk

Dated: 9/14/94.