Committee Minutes

MINUTES/FINANCE COMMITTEE
Tuesday, July 11, 1995 - 3:45 p.m.

Members present: McCabe, Babinchak.

1. Matter of employees' car allowance.
Mayor Polovitz presented the matter and stated that they go through this every budget year, there's inequity among employees as to who gets cars and who doesn't, not fair to provide for some departments and not others (engineering inspectors are provided vehicles, assessors are not), and now have employee in assessing office who is asking for a vehicle; and asked committee to consider and discuss options before setting budget: purchase vehicle, increase mileage, or pay monthly base plus mileage. He stated it would be more equitable to pay more and keep employee using his own car. He stated they were able to solve problem for fire department - purchased used van from health department. He also stated he talked with Hertz Rental Car re. cost to keep vehicle operating and they stated 43 cents/mi (maintenance, insurance, gas, etc.), federal govt. allows 30 cents/mi.; and also need to consider that when policy established, costs much lower.

Mr. Schmisek reported that City pays 30/cents/mi., that if City pays mileage over amount allowed by federal government, they have to keep record and report as income on W-2 form. He stated that concern is that there is somewhere around 15-20 employees that use their cars on City business, that when start opening door and buying a vehicle, that gets pretty expensive, so if a way of solving by upping mileage and whether that's satisfactory with employee. He stated that the city attorney was not available, and need to discuss what City's options are if an employee who's been using his car says he won't use his car. He advised that this comes up year after year, and need to discuss.

Mel Carsen stated that there's basic question that needs to be discussed - can you force an employee to furnish his own car, if you can, then needs to be compensated for somehow, currently does not; that there's nothing in job description that requires that; that everyone in his department was hired under premise they would furnish their own car (verbal understanding), but since they were hired compensation has changed drastically, that there used to be a flat monthly fee year round, then went to mileage fee; now one employee has said that he would prefer not to do that, that City furnish him a car. He stated that he didn't know if that employee has an option. He stated they have felt that there should be monthly base or allowance for the vehicle plus the mileage. He stated that other cities until recently have done that, varying amounts of base ($10 to $55/mo) and varying amounts of mileage; but thinks that there should be an option for the employee whether he wants to drive his vehicle or not for the compensation he's getting; that for his department where employees drive between 2500-3500 year it's not prudent for City to furnish vehicles for 5 employees, but mileage should be

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mutually agreed upon decision, and there are some who don't think 30 cents/mi. is adequate compensation, and that there is only one in his department who says that he no longer wants to drive his own vehicle starting the first of the year. It was also noted that one vehicle would not suffice for five employees as they are out at the same times.

After further discussion it was suggested to hold for further information and meet with employees who are receiving mileage, etc. as this is going to come up in the budgeting process. Held in committee.

2. Matter of audit of financial statement for Greater Grand Forks Convention and Visitors' Bureau, Inc. as of December 31, 1995.
Mr. Schmisek reported that the Convention and Visitors Bureau is required by ordinance to furnish us with financial report, that they received clean financial audit from Brady, Martz & Assoc., and would recommend to receive and file. Moved by Babinchak and McCabe to receive and file. Motion carried.

3. Matter of sale of City lot (Lot 1, Blk. 1, Medvue 6th Addn.)
Mr. Schmisek reported this is informational only, that they met with Tracy Doe and want to make committee aware of offer presented to Mr. Doe - that they wanted to tie him to all three lots in that development, and offered selling him Lot 1 for $25,000, which is less than 80% of the $32,000 set by the City, but want to tie him to 80% of the value the City has on Lots 2 and 3 for $22,400 and $19,200, respectively, and that the contract would be written for the sale of all three lots at the same time; and at this point he is considering and wanted to check on the timing of the projects going in and whether able to develop this year. He also stated that if committee had any concerns about what they are trying to do, they would like to know about it; and also reported that Mr. Swanson is reviewing other stipulations that Mr. Doe had on the contract. Information only.

4. Matter of review of ordinance re. regularly scheduled council
meeting dates.
Mr. Schmisek reported that in discussing with Mr. Swanson, he stated that if they want to amend section (Section 2-0101) which sets regular meetings, they would need to change last sentence ie., "If a meeting falls upon a holiday, such meeting shall be held upon the next business day with the same effect as if conducted upon the date appointed."; and would have to allow for a situation like the 4th of July, and consider what circumstances would justify that change and clarify that in that section. Mr. Schmisek stated that Mr. Swanson also commented on whether they even want to change this because of number of times it might happen (July 4 and January 2) and when have opportunity to change MINUTES/FINANCE COMMITTEE
July 11, 1995 - Page 3

meetings would need to be aware of when setting public hearings month to month and half in advance. He stated this is informa- tional and considerations for committee in deciding whether they want to proceed with amending the Code or not. It was also noted that if council met and there was not a quorum, they have right to postpone meeting, but this would allow changing meeting date ahead of time. The committee stated this could also affect meetings of other committees. Held in committee.

5. Matter of financing for detox facility.
Mr. Schmisek advised that at last meeting Mr. Carpenter had reported that Dave Molmen of United Hospital had talked about visiting with their Board re. additional funding, that Board met but they did not get to this item, and their next Board meeting is July 17. He stated that when information received, will bring back to committee. Info. only.

Meeting adjourned.

Alice Fontaine
City Clerk

Dated: 7/11/95.