Council Minutes

MINUTES/COMMITTEE OF THE WHOLE
Monday, January 24, 1994 - 12:00 noon.

Members present: Mayor Polovitz; Council Members Beach, McCabe, Hoeppner, Kulas, Hanson, Glassheim, Crawford, Carpenter, Lien, Beyer, Hagness - 11; absent: Shores, Geller, Johnson - 3.

Department heads and staff persons present: Bob Ulland and Chester Langlei, Public Transportation; Richard Newman, Sanitation Department; Kenneth Schultz, Health Department; Mark Lambrecht, Ken Vein and Al Grasser, Engineering Department; Gary Fish, Street Department; Dwight Wurzbacher, Water Maintenance; Hazel Fetters-Sletten and Mike Shea, Water Treatment; Gary Goetz, Wastewater Department; Mel Carsen, Assessor's Office; John O'Leary, Community Development Office; Chet Paschke, Police Department; Richard Aulich, Fire Department; Jay Graba, Personnel Office; Bobby Owens, Civic Auditorium; Pat Owens, Mayor's Office; and John Schmisek, Auditor's Office.

Mayor Polovitz reported he had met with department heads re. future of the city and change that will happen in the 90's as far as government concerned; have to look to the future and make plans. He also commented on several books he has available for council to read re. looking at things differently than in the past and making necessary changes in the future - changes from small town to large city.

He raised questions of how the council wants to proceed with the budgeting process? whether another tax increase or for holding the line - aspect of shifting where money going; is Human Needs program permanent? wages and salaries, how much? and that some of these questions have to be answered to get consensus of where going; work out wages and salary before negotiation? percentage? information needed? He questioned whether council people want to visit with department heads and find out their needs? raise fees in line with budget requests? He stated he would like to start with premise of department heads looking at 4% increase - cost of living basis, need input from council re. these decisions, and asked for comments.

Mr. Kulas stated he has heard comments that based on information public hears, increase in government only going to be $5 or 6 and then get tax bill and much larger increase; that perhaps should be brought up, that property values continue to go up - informa- tion to public through media.

Mr. Hagness quoted figures from Bismarck Tribune re. percentage of increase of various items over past 15 years. Mr. Hanson stated that lot of increase in taxes not City, but School or County. Mayor Polovitz asked whether there should be meeting with elected officials of Park, School and County to bring forth some of this information - show concerns before starting budget process.
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Mr. Beach stated he would endorse idea of taxing entities meeting (Park, County, School and City), but not sure how public would react - conspiracy or attempt to coordinate taxing policy.

Mr. Hagness stated that if bring in those entities, they will ask for share of sales tax monies; would like to see department heads tell where priorities are; somewhere made bad error when made employee evaluations - can't have $1.5 Million in expenses and give salary raise, that this was more than City could handle - and threw salaries out - have been fair but haven't got message out to employees, they are very bitter over what council did.

Mayor Polovitz stated that there has been total change in hiring of employees - 20 years ago people didn't want to work for the City; now don't hire unless best quality because of service and demands - don't get good people without paying.

Mr. Hanson suggested that City inform public - difference between sales tax - re. 3-way split. Mayor Polovitz stated in December had compiled report re. where sales tax monies going, etc.; have taken information to Herald but nothing done as yet. He stated that to get information to public very difficult; his philosophy is more information put out the better. Mr. Carpenter noted that MPO puts information out. Mr. Vein stated there might be repercussions from people outside city limits who don't benefit. Mayor Polovitz reported that some monies sent back to small communities through Growth Fund; unless do as much as can to keep population up going to diminish ability to take in sales tax and as regional center, and we could become small city in the future; that we have seen tremendous drop in Canadian traffic, difference in dollar value; Canada doing everything to keep traffic there. He also noted we have seen increase of 3% in sales tax, and will continually research. He stated they would like to see something happen in Minnesota and help some place in Canada through Growth Fund. He noted we have to think region now rather than city, county, etc. - small communities dependent upon us for health care, sanitation, landfill, lab testing, water sampling, etc.

Mrs. Beyer brought up several points: 1) using refuse schedule to get information out to public (It was noted that the cost of refuse schedule was as follows: printing, $3,000 and mailing $2,000); and possibly reinstating city calendar. She also stated that she would like to see where salaries and wages on a supply and demand basis, and setting wage increase without negotiation as negotiation scene turned out to be bad deal.

Mrs. Beyer stated she would like to see more for economic development through low interest loans so have monies coming back in. Mayor Polovitz stated they have put about $800,000 into budget. Mr. O'Leary stated $860,000 budgeted, less $360,000, for net of $650,000. Mayor Polovitz stated they shouldn't build large pot of money, and not utilize.
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There was some comment re. 4% department increase; and Mayor Polovitz stated that was estimated number when Don and John came back from California - dependent upon health of community.

Jay Graba, Personnel Officer, stated that over-all number of applicants for City positions declining - 25% from 1992 to 1993; and shouldn't judge negotiations on last two times around - negotiations done over last few years very successful, employees want to be part of negotiations.

McCabe out.

Mayor Polovitz stated there are some things that look good for the new year, but can't say at this time; thinks Grand Forks doing good on economic development, new jobs retained, etc. John O'Leary reported they are doing their annual report - that there have been 800 new jobs created through economic development, 1700 that are there because of expansion or retention; and there are large number of grants because of PACE Program - to write down interest.

Mayor Polovitz asked whether committee of whole should meet in February after council members have had time to think about what presented and come back with recommendations. He stated City doing very well; sales tax down in last month, but sales taxes fluctuate back and forth; feel City in good shape. He stated they don't know what's going to happen re. free trade, and because situated so close to Canada have to be part of thinking process - aggressive cities benefit, because of competition out there.

There was some discussion re. snow emergency - hiring of equipment and staff - and Mr. Vein responded that doing every driveway would be very expensive. Mayor Polovitz also stated that because of more snow to the south, there is potential of flood; Mr. Vein stated that his department has started preparation (bidding of some services, etc.) and will update council on that later.

Mayor Polovitz stated he would call another meeting in February.

Meeting adjourned.
Alice Fontaine, City Clerk

Dated: 1/26/94.