Committee Minutes

MINUTES/FINANCE COMMITTEE
Tuesday, June 13, 1995 - 3:45 p.m.

Members present: Carpenter, Babinchak, McCabe.

1. Matter of contract with Office of State Tax Commissioner to administer city sales taxes for 1995-97 biennium.
Howard Swanson, city attorney, reported that the agreement is generally in order, however, there is error in title "Contract for Collection of City Sales and Use Taxes" and he will strike words "...and use.."

Moved by McCabe and Babinchak to authorize proper City officials to enter into the agreement and to continue with Option 2 as method of payment - payment to be made in 24 equal payments. Motion carried.

2. Matter of renegotiation of lease with Sr. Citizens' Center.
Mr. Swanson stated that the lease agreement has been in the same form for a number of years and is in order, however, in section 8, Maintenance and Upkeep, language ambiguous as to whether the non-recurring major repairs and maintenance agreements are limited to heating and air-conditioning facilities and elevator or with all non-recurring major repairs, and wanted to bring to committee's attention. He suggested that section be clarified dependent upon wishes of the two parties. He stated that in normal case all those items passed on to the lessee. Martha Torkelson, Sr. Citizens' Center, stated that these items never been paid by City, and according to contract should be; that they pay for all maintenance agreements. She stated that she would like to see City pay roof repairs and parking lot repairs, and they would continue to take care of the other items.

There was some discussion re. conveying of property, that City cannot make direct conveyance, would first have to put property out for public bid - in order to insure that property used for senior citizens center and no other function, would have to record covenants limiting use of the property and then put out for bids. He also noted that there was some concern re. federal funding involved in it; lot of strings attached; and also some hesitancy on part of Sr. Citizens' to accept the property knowing that they would have additional expenses.

Mr. Swanson stated he can draft lease with direction of the committee, and update some language in the lease which is now unclear. The committee agreed that major repairs (roof and parking lot) be responsibility of the City, with other maintenance items to be paid by Senior Citizens'. Held in committee, and to bring back in 2 weeks.

3. Matter of agreement with Northwest Technical College -
medical administrative secretary internship program.
Mr. Swanson reported he had reviewed proposed agreement from

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Northwest Tech. College twice and rejected twice, because of concern that under the language of the contract the City was not indemnified for any negligent acts on the part of the student or their supervisors, and has suggested modifying that section to make acceptable. He stated that the health department will bring in interns or students, the department gets some value and student gets educational value; that he is not opposed to the function and agreements provided that the City satisfactorily protected.

Moved by Babinchak and McCabe to authorize proper City officials to execute the agreement with Northwest Technical College con- tingent upon the city attorney's final review and approval of the documents. Motion carried.

4. Matter of providing Grand Forks Mission with funding for
liability insurance for detox center.
McCabe stated that the thought came up when discussing the issue, that City cannot allocate monies specifically for insurance for the Mission, but that the City could give them money for liability insurance; that Mission appropriate place for a detox center, and if can solve problem without the $100,000 financing package.

Mr. Swanson stated that the City as a public entity cannot list a non-profit or private for profit organization as an additional insured under our general liability policy of insurance; that we don't have an insurance policy, we are a participant in a risk fund and can't extend that to a non-governmental agency. He stated that under the general insurance law City would have no standing or no financial interest to be an owner of a policy insuring another organization that's not a subsidiary or underling of the City corporation; however, City could in its normal budgeting process increase whatever funds are made available to the Mission in an amount equal to or adequate to acquire liability insurance from their own carrier naming them as an insured; that the City can set that budget line item up in such a manner that it can only be used for that purpose, can require them to name City as certificate holder so have evidence that policy issued and are entitled to notice of lapsing, canceling of policy, etc. He stated he has not discussed with organization what types of coverages they have, if any; what types of coverages they would be requiring, etc. He stated City could fund an amount to acquire liability insurance in normal budgeting process, and probably fall under the Human Needs budget.

Mr. Swanson also advised committee that the proposal that was brought to Planning and Zoning would have had the P & Z Commission determine if a detox center is a compatible use in any B-4 location, and the Planning and Zoning Commission did not make MINUTES/FINANCE COMMITTEE
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that finding but rather moved an amendment to the Zoning Code which would allow a detox center in a B-4 District by conditional use permit only; and this would give greater restriction and protection as to how and where located and what requirements have to be met, and will come to council at its next meeting.

Babinchak stated that she understood that the Mission doesn't want to run a detox center, and City would be using same finance package no matter which location; and if that were the case she wouldn't support allocating money to the Mission for insurance.

The committee stated they would need renovation of the facility and funding for operation, that issue bigger than liability insurance; and not take action before zoning changes take place.
Moved by McCabe and Babinchak to receive and file and to bring up at a later date. Motion carried.

5. Matter of sale of City lot (Lot 1, Block 1, Medvue 6th Addn.
Roxanne Fiala, finance analyst, reported that the City had received offer from The Gentry Corporation for $15,000, which is well below the asking price of $32,000 (80% is $25,600), that others have shown interest in the property; and the finance office's recommendation is to reject that offer.

Mr. Swanson reported that there are at least three items that are conditions or contingencies in the offer to purchase that he would recommend that the City not entertain: 1) that City would not be in a position to delegate its authority on a special assessment project to that buyer unless they were a majority property owner for an assessment that is protestable, don't know what district is and couldn't give them that authority to void it; second condition: City doesn't have ability to give without concurrence of State Hwy. Dept. direct access to Columbia Road, that roadway has controlled access, and questioned whether City could give access across Lots 2 and 3 of Block 1; 6) reference to a mortgage and it's contract for deed; 7) City will give warranty deed, however, will not enter into warranties as to useability of the property; that use regulated by Zoning Code and that particular lot has covenants against it and there are various items that do restrict the use of the lot.

Tracy Doe stated he made offer, that lot has access through a private drive, is very low lot and going to take lot of fill. He stated that private drives constructed with very thin asphalt and driving truck over driveways would wreck the driveway in a short time and that was the reason for requesting access off Columbia Road. He stated he was not sure there was other alternative to get asphalt and concrete in there and if not, makes lot un-salable. He stated there's going to be storm sewer, sewer and water, and that they don't know costs and that has direct bearing MINUTES/FINANCE COMMITTEE
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on the sale of the lot.

Mr. Swanson noted that the City currently owns Lots 1, 2 and 3, and it is possible DOT will give temporary access for construc- tion purposes but not within our control; and that access to this lot is intended to be through the private drive.

The committee referred the matter back to the assessing depart- ment to take another look at the lot, taking into consideration some of the things that Mr. Doe brought up and bring back to committee; and also to refer to engineering for information re. assessment projects. Mr. Doe also stated that his offer not carved in stone and is very interested in the property. The committee held the matter for two weeks for information from assessing and engineering departments, and stated that when information received will probably authorize negotiation of sale of the property.

6. Matter of creation of special assessment district and call
for plans and specifications for parking ramp project.
Don Tingum, rep. Central Business District, and Mike Murie, EAPC, firm hired to prepare plans and specs. for a parking ramp, submitted copies of the engineer's report in the amount of $1,285,000, and stated they were back to initial step to construct and assess a new parking ramp - ie., approval of the engineer's report, including estimate and resolution creating assessment district and to direct engineer to prepare plans and specs.

Mr. Tingum reviewed special assessment district which is a larger district than originally brought in, that area south of the tracks would be an additional area for a quarterly operating fee based on the costs of the bids over and above what will be special assessed. He stated that council at its last meeting adopted an ordinance allowing them to apply half of the overage assessment and to come to the council for the other half, and will wait to see what assessments come in at. He reported that both areas have right of protest and they have notified all of the people in the district who rent and own properties of what that additional assessment will be based on a $1.3 Million and they were to report back to the Central Business District. Mr. Jackson has received some protests, though not official. He stated they would like to start and get into bidding stage, get bids and then notify all business people of costs and go through protest period.

Mr. Murie noted that the timetable for the project has been set and included with the engineer's report. He stated they would probably have alternate bid to construct ramp this fall; but it now appears to be favorable to do next spring. He stated that basically project is the same.

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Mary Jo Dietz Whitcomb, Dietz Business Promotions in City Center Mall, stated she received letter dated June 1 from Mr. Jackson and stated that there is more than little protest by people downtown. She stated that many things happen and they (renters) are not aware of them; that this coming Monday night they will be meeting and that this will be discussed. She asked if they couldn't look at entire parking project downtown. She stated she is vehemently opposed to paying more money, that several businesses leaving downtown, and that downtown moving more into financial and administrative type of business. She asked if Parking Authority would meet with downtown business people and ask them what they want, rather than making decision and all they find out is how much it's going to cost them.

The committee reviewed timetable for the project, and stated that Mr. Tingum and Mr. Murie will take message back to the Parking Authority, and that there will be opportunity to protest, etc. The committee also suggested that the Parking Authority visit with the group of business people. Mr. Tingum stated he will be meeting with the Board and will pass those comments on to Auth.

After further discussion it was moved by McCabe and Carpenter that we adopt a resolution creating the assessment district, approving the engineer's report, including estimate of cost, an assessment district map, and further that we pass a resolution instructing the city engineer to prepare detailed plans and specifications, and that we declare intent to sell bonds to finance these improvements. Motion carried; Babinchak voted against the motion.

7. Matter of 1994 audit report.
Held in committee.

8. Matter of computer purchase for fire department.
Held in committee.

9. Budget amendments.
a) Human Resources - $2,326.00
Amendment to reflect increase in Office Equipment from Cash Carryover to purchase new work station.
b) City Hall - $2,500.00
Amendment to reflect increase in City Hall Maintenance Buildings & Grounds for nursery stock and installation of landscape materials for City Hall (Community Development providing labor).
c) Assessing Department - $900.00
Budget amendment needed to transfer funds from cash carryover for postage for notices to property owners.

Moved by Babinchak and McCabe to approve the budget amendments. Motion carried.

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Meeting adjourned at 5:00 p.m.

Alice Fontaine
City Clerk
Dated: 6/14/95.