Committee Minutes

MINUTES/FINANCE COMMITTEE
Tuesday, November 15, 1994 - 5:00 p.m.

Members present: Carpenter, Babinchak, Geller, McCabe.

1. Matter of resetting public hearing on application by TAG for
five-year property tax exemption.
Mr. Schmisek reported that public hearing had been scheduled for November 7, that item not placed on the agenda, and TAG officials were unable to attend that meeting they have requested that council reset the public hearing on the application. Moved by Geller and Carpenter to set the public hearing for December 19, 1994, at 7:30 p.m. Motion carried.

2. Matter of temporary loan to Convention & Visitors Bureau.
Mr. Schmisek reported that funding will not be in their hands until the first part of January, however, since the work is going on and several contractors are submitting bills, it is his recommendation to approve borrowing to the Convention & Visitors Bureau the amount of money they would need to mid-December to pay these contractors, and that will only be done based on bond sale being approved at the December 5 meeting, and Wally Dornfeld believes he will have that negotiated and ready at that time. We would borrow the funds (not sure of amount) out of our Loan and Stabilization Fund with the intent that they would repay that money to the City with interest at our average earning rate on a daily basis when they receive the funds the first part of January. Moved by McCabe and Geller to authorize a temporary loan to the Convention & Visitors Bureau subject to approval of bond sale on December 5, 1994, with repayment to be made with interest out of bond proceeds. Motion carried.

3. Request from Central Business District Authority to issue
bonds for construction of parking ramp.
Don Tingum reported that the Central Business District Authority, of which Eliot Glassheim is president, has been studying the parking problems in the downtown area for quite some time, and are looking at construction of a parking ramp and a future ramp close to the former Deaconess Hospital site, but now are interested in proceeding with the necessary steps to build a parking ramp across from the Valley Bank downtown along 1st Avenue North from North 3rd Street to public alley and angle over to DeMers Avenue, total cost est. by EAPC is $851,600.00 at this point; and EAPC timetable is preliminary design to be done by December 1, owner review by January 1, final design by February 1 and bidding by April 1, contract to be awarded by May 1 with construction to start immediately thereafter, with completion by September. It was noted the est. cost of $851,600 designed for future addition of a third level. Dick Jackson stated they are in process of closing on the land with the Railroad. Mr. Tingum stated that the construction and payment for this ramp should not be an additional assessment to the downtown, but would need to sell bonds to make payment. He stated that the present ramp has four more years after this year to pay, and bonds will be paid
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off so Authority felt that with bonds being paid off and with same assessment district downtown, they would continue to levy the assessments until the end of the 20-year period, and those monies would be excess cash and as NDCC reads that excess monies from bond issues when paid should go to the general fund. We are asking that the excess funds in 1995 and in 1994 to be trans- ferred - $495,000. He reported they asked finance committee year ago for transfer of funds to the general fund and set aside in trust for the Parking Authority to proceed with the construction of the proposed ramp; the committee and council approved the transfer of those funds. He reported that CBD Authority has been negotiating with Trillium to purchase the site for the ramp. He stated that there are five more years of principal and interest payments totaling $368,000 and with transfer of funds come up to $865,000, the cost per EAPC $851,600, and this would allow future payments to go toward payment of the bond issue and still leave a $13,400 cash balance; however, that's with 100% tax collection. He stated they need a bonding requirement of $354,600 and should collect the $83,000 in 1995 tax collections, so feel that $271,000 would be necessary plus contingencies of $25,000 plus bond counsel and legal fees, so looks like $310,000 of bonding needed. He stated he also worked out a payment schedule on the bonds at 7% interest rate over a ten-year issue, and it does show the cash flow to carry us through the $310,000 issue with a carryover of $1,450.00 at the end of that 10-year period. He stated this does give them a cushion for non-payments and for any unforseen things, and feel bond issue protected with contingencies they have. He stated they are asking for creation of a special assessment district, and will meet with the Special Assessment Commission and ask them to have the assessment remain the same as currently as protection for the City in case of a default. He stated they would want preliminary approval of issuance of the bonds to construct the parking ramp.

Mr. Schmisek stated they have to be aware that the council can't obligate all four years of these funds, has to be done on a year to year basis, and not a guarantee that these funds will go back. Mr. Tingum stated that was why they were setting up a special assessment district so if future councils decide they want to keep that money, then the District would not be able to pay these bonds and would have to levy the money from the new district. It was noted that the lease monies come from leasing land for properties (Bike Shop, Expressions, and St. John's parking lot) formerly owned by Trillium and now by Parking Authority.

Mr. Tingum stated they have to go through a public hearing and all property owners have right to protest.

Mr. Swanson advised that there are some preliminary steps that
need to be taken and to our benefit to do correctly and give ourselves enough time.

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Moved by Babinchak and McCabe that we direct the city engineer to review EAPC reports and prepare engineer's estimate and proposed district. Motion carried.

4. Matter of transfer of excess parking ramp funds to trust fund
in general fund.
Mr. Schmisek reported this is the request for the annual amount of funding that has been collected in 1994 in the amount of $93,163.49. It was moved by McCabe and seconded by Geller to transfer $93,163.49 to the Ramp Trust Fund.

Mr. Geller stated that he knows we need more parking, but we continually hear concerns about safety and maintenance issues in the existing ramp, and could use some of this excess money for safety and maintenance of existing ramp in addition to building more and more. Mr. Jackson stated they have hired fulltime security to coincide with Central and are hearing more positive things.

Mr. Glassheim questioned whether the $93,000 could be used for maintenance, etc. and Mr. Schmisek stated that once bonds paid off and it goes to the general fund, it would be at discretion of council to use for whatever purpose. It was noted that once bonds sold those funds could not be used.

Motion carried.

5. Matter of rate increases for water, wastewater and stormwater
Mr. Schmisek reported that 3 1/2% increases for water, wastewater and stormwater were included in the 1995 budget, and those increases also recommended by the Utility Rate Study Committee, and would need introduction of ordinances. Mark Lambrecht stated they have watched utility budgets and are confident that the 3 1/2% rate increases are appropriate and will serve us well.

McCabe asked what was causing increases and whether use sales tax monies rather than increase rates. Mr. Lambrecht stated increase in salaries, operation and maintenance increased; and also capital projects; and there is shifting of emphasis on relying on sales tax revenues to pay some of the utility expenses to the utilities - user charges bearing the expenses of the utility. Mr. Schmisek agreed that utilities should pay their way.

After some discussion it was moved by Geller and Carpenter to introduce ordinances to increase rate 3 1/2% for water, wastewater and stormwater. Motion carried.

6. Matter of upgrade of AS400 computer.
Mr. Schmisek reported they did submit to the committee memo justifying this upgrade. John Kotrba and Dan McCowan, MIS, were

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present. Mr. McCowan stated they are outgrowing their present system, that they are in the process of re-writing utility files and financial files, and go over 90% on usage and processor maxed out quite a bit, and this will alleviate those problems, and give us additional capabilities.

After discussion it was moved by Babinchak and Geller to authorize purchase of the AS400 upgrade. Motion carried.

7. Matter of job descriptions and organizational chart for
auditing department and MIS
a) director of finance and support services
b) assistant director of finance and support services
c) accountant
d) accounting specialist.

Jay Graba, personnel officer, stated he has no problem with Mr. Schmisek's job descriptions, and stated that change in physical demands probably should be in hazards; that we are seeing a lot of cumulative trauma incidences, but is a little concerned about putting it in this way. Mr. Geller stated that it's nothing unique to the finance department. Mr. Graba stated that if you change that, it's going to have a domino effect, and before we assess that ought to take look at all the way through the system.

After further discussion and review, Mr. Schmisek stated all positions would stay at their current grade. He noted that the Accountant II position would have points reduced under supervision exercised because no longer directly supervising utility account clerks. He stated he would be bringing MIS job descriptions in at a later date.

Mr. Carpenter stated that there was a disagreement about deputy fire chief position that went to civil service last week, that he attended that meeting and argued that two different things were presented; one at finance committee and one at the Civil Service Commission, that he has determined that any time they have job description requests that he wants department head to be on record with us and he determined that at any time they have job description requests that he wants department head to be on record with us in what they will be recommending to the Civil Service Commission so there isn't any potential for disagreement
as to what's presented in one place and what's presented to the other committee.

Saroj Jerath stated she had reviewed job descriptions with Mr. Schmisek.

Moved by Geller and Babinchak to adopt the four job descriptions (B).

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Mr. Swanson asked if there was reference to city auditor and deputy city auditor in the descriptions, that number of documents required to be signed by city auditor or deputy. Committee suggested to include in Asst. Director of Finance and Support Services job description "as deputy auditor under State statutes".

Motion carried.

After discussion it was moved by Geller and McCabe to change the name of finance department to finance and administrative services department. Motion carried.

8. Matter of distribution of bill listings.
Mr. Schmisek stated this item is for discussion, whether to continue to send bill listing to all council members, or send only to finance department for review and they be charged to make motion on the bill listing. Mr. Swanson stated there is state statute that they be made available to council, but if distribute to finance committee members, in addition notify all other members that copy available for review in the auditor's office. Mr. Carpenter stated he would talk to other council members or committee chairs re. this matter before any changes made. No action.

9. Review of pledged securities by designated depositories.
The committee directed that Babinchak review securities on file in the auditor's office. Moved by Geller and Carpenter to approve the pledged securities contingent upon review by Babinchak as committee representative. Motion carried.

10. Matter of setting license fees.
Mr. Schmisek reported that in the 1995 budget they had recommended some license fee increases which are included in the budget, and presenting for ordinance changes, etc. and also including some changes in engineering permit fees, etc. It was
noted that public safety and public service have met and recommended deleting some licenses: deletion of agricultural
products by sample, second hand dealer and auctioneer, and bill poster license. Mr. Swanson stated he is recommending this committee take action on magazine salesman, transient, per day, to delete as this is included under transient merchant; and in
addition to the per day fee for transient merchant to include an
annual fee as he is concerned about amount charging for transient merchant's license. He also noted there is exemption for transient merchants in civic auditorium and this raises an issue, that this gives auditorium a competitive advantage.

Moved by Geller and Babinchak to approve recommended fees, with deletion of transient magazine salesman and establish an annual fee for transient merchant in the amount of $250.00, and

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introduce the ordinance for first reading. Motion carried.

11. Proposed ordinances from city attorney.
Mr. Swanson presented ordinance drafts to committee for their review and briefly reviewed differences in the drafts:
a) Civil Service - seniority
one draft limited to on the job injury; second draft broader - re-employment of former employee.
b) tapping fees.
proposed ordinances for City to recoup costs. first draft, connection fee for water, storm sewer and san. sewer; and second, written in broader sense where include the assessment of roadways, and other improvements, and would support adoption of both.

These items will be included on future agendas.

12. Matter of legislative strategy.
Mr. Swanson stated he has identified some legislation that would be appropriate to be introduced this year on behalf of municipalities, and thinks City needs to identify some strategy on what legislation the City is having considered, and to do in a collective fashion. He listed several items for consideration: 1) City required to hold $1,000 on all contracts until release issued from Dept. of Labor; 2) re. special assessment, connection fees and tapping fees; 3) statute which is unclear dealing with city employees and officers - definitions. He stated we need legislative tracking system, that he has been contacted by one company. Mr. Schmisek stated that Legislative Council also provides service.

Moved by McCabe and Geller that we recommend that the mayor appoint legislative committee to develop legislative strategy for the 1995 legislative session. Motion carried.

13. Committee meeting time.
The committee changed meeting time to 7:00 p.m. on Tuesday on trial basis.

Meeting adjourned.

Alice Fontaine
City Clerk

Dated: 11/16/94.