Committee Minutes

MINUTES/FINANCE COMMITTEE
Tuesday, November 29, 1994 - 7:00 p.m.

Members present: Geller, Babinchak.

1. Matter of creating district, etc. for downtown parking ramp.
Don Tingum, and Dick Jackson were present. Mike Murie, EAPC, distributed copies of assessment district map, engineer's report (showing cost est. of $901,000) and timetable which was coordinated with committee and council meetings. Mr. Tingum reported that the est. cost is $50,000 higher than estimate brought in 2 weeks ago; $50,000 added for elevator and might have to add 5 more years to the bonds, but not to get concerned until bids come in. Moved by Babinchak and Geller to adopt a resolution creating the assessment district, approving the engineer's report, including estimate of cost, an assessment district map, that we pass a resolution instructing the engineer to prepare detailed plans and specifications, and further that we declare our intent to sell bonds to finance these improvements. Motion carried.

2. Matter of Bill Larson Company building.
Dick Jackson reported he had been approached by Expressions, who is losing their lease and looking for other space, want to rent the Bill Larson building, and submitted estimated costs for remodeling of the building. He stated that even with 4-year lease City would barely get money back. He stated there has been discussion re. demolishing this building, and if demo'd Parking Authority would pave lot, etc. for parking. Mr. Schmisek stated that the original plan was to demolish the building and Community Development has funds to do that, and that he wouldn't recommend selling G.O. bonds to rehab the building. Moved by Babinchak and Geller to receive and file. Motion carried.

3. Matter of budget amendment.
Mr. Schmisek reported that transfer of funds, $93,163.00 from General Fund to Parking Ramp budget, had been approved and this is to amend budget. Moved by Babinchak and Geller to approve amendment to the budget and to introduce the ordinance for first reading. Motion carried.

4. Audit proposals for City of Grand Forks.
Mr. Schmisek reported he had copies of committee review of audit proposals. Representatives of the Brady Martz firm and of Drees, Riskey firm were present. Roy Lunde of Brady Martz stated that for several years they have been selected to do audit, and worked with John in helping to secure Certificate of Excellence in reporting, which is possibly important in bond rating, etc. He stated this award prestigious to City; that they have lot of expertise in government accounting; that the State of North Dakota has hired their firm to assist in submitting reports, etc. for that award. He stated they are close if City needs assistance, consultation, etc.


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There was some discussion re. audit of River Forks Commission; that all three vendors approached differently; Brady's submitted zero bid; Drees/Riskey stated that segment outside the bid at this time (stating they could not bid something that's not in existence).

After further discussion it was moved by Geller and Babinchak to accept the bid of Brady Martz for the three-year period as follows: $16,850 for year ended December 31, 1994 with additional fee of $500 for Housing Authority management account;
$17,000 for year ended December 31, 1995 with additional fee of $550 for Housing Authority management account; and $17,350 for year ended December 31, 1996 and $600 for Housing Authority management account; and zero fee for including the River Forks Commission. Motion carried.

5. Matter of lease renewals:
Mr. Schmisek reported these three-year leases will expire December 31, 1994; that two leases for $1.00/year and Miller's lease $100 per year.

a) Frank F. and Judy A. Bures, 1005 Reeves Drive for leasing of Lot 4, Blk. 1, McIntyre Subdivision.
Mr. Bures stated he would be interested in renewing for 3 years, that they use for gardening and also keep grass cut, etc. He also stated they sold property to the City for R/W, but won't be used until property on back side of property developed. Moved by Babinchak and Geller to authorize proper City officials to enter into a lease under same terms as previous lease. Motion carried.

b) William J. Wrenn, 2329 University Avenue, for leasing of Lots A and B, Blk. 1, University Park Addition.
Mr. Wrenn stated he would also like to renew lease for property adjacent to this property, he maintains, etc. Moved by Babinchak and Geller to authorize proper City officials to enter into a lease under same terms as previous lease. Motion carried.

c) Bernard Miller, Miller's True Value Hardware, 1803 S. Washington Street, for leasing of Blk. 1, east 33' of south 33' of Lot 5, Cox's Addition (property on which Lift Station No. 14 is located).
Mr. Miller stated he is happy with lease and would to continue to lease the property, and cleans up property. Moved by Babinchak and Geller to authorize proper City officials to enter into a lease under same terms as previous lease. Motion carried.

6. Matter of ordinance providing for tapping fees.
Mr. Swanson reported he had distributed two ordinances at last meeting for the committee and staff to review, that intent when drafted was for council to adopt both or neither. He stated MINUTES/FINANCE COMMITTEE
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that engineering has not had lot of time to review; that these ordinance drafts not necessarily for adoption but as starting points. There was some discussion re. private developer's ability to recover costs; and some concern from Mr. Grasser re. giving responsibility to engineering staff to determine estimates of construction costs, etc. if property had been assessed at time of construction of the utility, that perhaps that should be concurred in by council. He also asked whether ordinance could apply to paving as well as sewer and water. Held for 2 weeks.

7. Matter of proposed amendment to Civil Service Code to allow
employees with break in service to retain seniority.
Mr. Schmisek distributed copies of communication from Mr. Graba who was unable to attend this meeting, and stated that Mr. Carpenter had some concerns he would like to address in committee.

Mr. Swanson reviewed drafts, first, relating to employees injured on the job, and second, which allows council discretion for any employee re-employed after leaving. It was noted that Mr. Graba's communication included calculation of total possible reimbursement to Mr. Kavadas if ordinance re. on-the-job injury were passed with retroactive effective date, $6,359.29; and that he didn't believe this would affect anyone else. The committee stated they don't set policy for one individual, but setting policy for all who come down line.

Jeff Kavadas was present, reviewed events leading to his request; that in 1987 he stopped individual who resisted arrest and he received injury to his wrist, that he had several surgeries and doctor didn't think he would have ability to shoot a gun; that he recovered use of wrist/hand and was re-instated as police officer through council action. He stated that when he came back he thought it would be where he left off, however, he lost benefits, i.e., seniority for vacation, employment, etc. Mr. Swanson stated they need to look at as policy decision.

Mr. Kavadas stated there is another opportunity coming up in police department where seniority would have an effect; however, Mr. Swanson stated that even if council approved ordinance re. on the job injury, would not help him as ordinance couldn't be adopted until December 19, that his draft is for Code which goes into effect January 1. After further discussion the committee held the matter for 2 weeks. Mr. Kavadas stated he wouldn't be here for that meeting, but would have rep. there.

8. Matter of real estate tax exemption - Conte Luna Foods, Inc.
Don Olson, attorney for Conte Luna Foods, was present. Howard Swanson, city attorney, reported that Conte Luna Foods is pasta manufacturer, that they received two separate property tax exemptions when they built original plant and when expanded

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plant, both went through full procedure of hearings, etc. and awarded standard exemptions. He stated that Conte Luna Funds is fully owned subsidiary of Philadelphia Macaroni, which they would like to dissolve and take into the parent corporation; that in order for them to do that and to continue receiving benefit of the two property exemptions, this council has to approve that and Mr. Olson is here to ask you to do that; you are not extending the exemption, you are not changing it; and if were to do that 1) council needs to make determination as to whether there are any competitors of Conte Luna Foods within city limits, and if find there are, have to give notice and publish notice; and 2) if you find there are no competitors can waive that step. He noted that Mel Carsen, city assessor, not aware of any competitions within city limits, and he cannot identify any, nor could Mr. Olson. He noted that Mr. Carsen recommends approval of the request. Mr. Schmisek reported he had received completed application by FAX.

Don Olson stated that Conte Luna is going to exist in Grand Forks, but will be division of Philadelphia Macaroni.

Moved by Babinchak and Geller that the committee recommends a finding that there are no competitors of Conte Luna Funds present within the city limits and that the notice requirements be waived, and that the application by Philadelphia Macaroni to assume the existing property tax exemptions be approved. Motion carried.

9. Matter of purchasing delinquent properties from the County.
Mr. Schmisek distributed copies of properties forfeited to the County for delinquent taxes, and map showing location of four properties he is recommending for purchase at $20.00 each, two lots are along I-29 north of Gateway and two on Petrolia Avenue. He noted that the two on Petrolia had been taken back before and sold and taxes weren't paid:

a) Unplatted Parts, beg. at a point 760 ft west and 1017 ft. north of southeast corner of said section 31, thence west 367.10 ft., south 100 ft. along east R/W line of I-29, east 367.10 ft., and north 100 ft. to point of beginning.

b) Lot 13, Blk. 43, Lindsay's Addn., less part to city

c) Lot 14, Blk. 43, Lindsay's Addn., less part to city

d) Unplatted Parts of Falconer Twp. Unplatted Parts, being a tract of land in SE 1/4 SE 1/4 Section 31, Twp. 152-50, beg. at northwest corner of Lot 1, Harty's Property.

Mr. Swanson reported property owner has 5 years to pay before tax foreclosure procedure; if not paid County forecloses and if special assessments outstanding, must offer to City; City has

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option to acquire and place on the market for public sale to recover losses or expenses; if City doesn't purchase, County would sell and receive funds.

Moved by Geller and Babinchak to authorize purchase of the property. Motion carried.

10. Temporary and overtime statement for October, 1994.
Mr. Schmisek reported that overdrafts in Auditor's Office and MIS have been taken care of. Moved by Babinchak and Geller to approve statement. Motion carried. (committee only)

11. Matter of rental agreement with MPO for office space.
Mr. Schmisek distributed copies of rental agreement with Grand Forks-East Grand Forks Metropolitan Planning Organization to provide office space in the planning office for the MPO staff, agreement is for three years beginning January 1, 1995 through December 31, 1998, with an additional two-year option at the current rate of $9.00/sq.ft. ($11,426.40)

Moved by Geller and Babinchak to authorize proper City officials to enter into the agreement to provide office space in the planning office for a period of three years beginning January 1, 1995, with an additional two-year option, at the current rate of $9.00/sq.ft. Motion carried.

Meeting adjourned.

Alice Fontaine
City Clerk

Dated: 11/30/94.