Committee Minutes

MINUTES/FINANCE COMMITTEE
Tuesday, April 9, 1996 - 3:45 p.m.

Members present: Carpenter, Babinchak, McCabe.

1. Matter of sales tax relief for lumber yards.
Chairman Carpenter reported he had received communication from Grant Shaft, attorney, for Simonson Lumber, Inc. withdrawing their request that certain materials be exempt from city sales tax. Moved by Babinchak and Carpenter to receive and file. Motion carried.

2. Matter of offer to purchase City-owned lots (Lots 5 and 6,
Block 1, Auditor's Subdivision No. 27).
Mr. Schmisek reported that his office has received offer from Community Contractors, Inc., Craig Tweten, to purchase Lots 5 and 6 off 16th Avenue North Circle for $4,000/ea. He reported that the City has value of $12,100 on Lot 5 and $12,200 on Lot 6, and stated if committee wished they would negotiate with Mr. Tweten. Moved by McCabe and Babinchak to reject the offer presented and authorize the director of finance and the city assessor to negotiate price with Mr. Tweten. Motion carried.

3. Matter of grant application by Grand Forks Historic Preser-
vation Commission.
Mr. Schmisek reported there was a change in the federal funds requested from $16,273 to $7,551, with matching share from local grants of $10,348. Moved by Babinchak and McCabe to approve and authorize proper City officials to sign the grant application. Motion carried.

4. Matter of funding for professional baseball (Grand Forks
Varmints).
Kenneth Leip, pres. Grand Forks Professional Baseball, Inc., George Schubert, board member; David Thompson, attorney, and Bill McKechnie, attorney, were present.

A request by the Grand Forks Professional Baseball, Inc. for grant funding from the City in the amount of $65,000 (to provide bleachers for 2500 seats, to comply with League's minimum stadium seating capacity requirements, was considered by the committee. Babinchak questioned purchase vs. leasing and it was reported rental units not readily available and difficult to find at rate this low, high-priced for one season. David Thompson stated that this money is not going to the baseball team, but joint agreement between City and Park Board to insure that the money was spent in way intended. It was noted that bleachers when not needed for baseball team can be used in other areas of town (softball field, etc. can be broken down accordingly for seating needed). Mr. Thompson stated this can be used by Park Board away from baseball field; and only other item included in the proposal would be temporary lavatory facilities.

Mayor Polovitz reported that Mr. Leker of the Park District would MINUTES/FINANCE COMMITTEE
April 9, 1996 - Page 2

prefer that the City handle all transactions. Mr. Swanson advised that if the City were to purchase, would have to bid.
It was not known whether the Park District also had bidding requirement. Mr. Swanson stated that dependent upon source of funds, you may or may not be able to directly fund the baseball team; he envisioned agreement with the Park District where City would enter into joint power agreement for acquisition of the seating, the title would be Park District used for a specified purpose, that being Kraft Field, and City would simply be funding that. Mr. Schmisek stated he discussed with Mr. Swanson, and not sure sales tax viable option, otherwise Loan and Stabilization Fund.

George Schubert, Board Member, stated that it is imperative to do as expeditiously as possible; first regular season game June 2, and exhibition games in late May.

After discussion re. timing of bidding process, financing, etc., the committee held to meeting at 7:15 p.m. on Monday, April 15, prior to council to find out Park District's bidding requirements, etc. and to work out details.

5. Matter of amending Section 2-0201 of City Code relating to
effective date of standing committee appointments.
Eliot Glassheim reviewed his proposal, stated that relationship between mayor and council not balanced, that mayor has quite lot of areas of control (hiring, firing, full-time, by appointing committee chairs, etc.) and thinks council should elect their own chairs and organize themselves; that now would be the time to make change if going to do it; that chairs are not just chairs but also leading policy makers in the city (budget framework committee, capital improvements comm., etc.)

Carpenter stated that legislative body should elect their own leaders, that chairs should be elected by body as a whole; that council knows best who should be its leadership and who functions on certain committees. After some discussion he suggested that they approve proposed ordinance as is and amend process at later date. (This item will be on agenda for finance committee at last meeting in April).

Mr. Swanson advised that he could draft ordinances with various options: council as committee of the whole elects chairs and chairs determine committee members for ratification by council; mayor designate committee preference to be approved by council and each committee elects their own chair; and would have back before next finance meeting.

6. Matter of policy on draw-down of sick leave after worker's
compensation.
Dan Gordon, human resources director, reviewed two-page
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document re. procedures they follow in their office when notified of an injury. He stated that the second page addresses changes for workers' compensation with 3 brief points: 1) that from the date and time of the injury the employee must use either sick, vacation or compensatory time for the hours lost (this will have a cap of 3 weeks or 120 hours); 2) if and when the employee participates in a return to duty position, the employee will earn 100% of their pay and not be required to use sick, vacation or compensatory time (this is incentive to get an injured worker in a position of need within a department); and 3) if the employee's claim is approved 2/3rds of the used time will be credited back to the employee's leave bank. He stated their goal is to rehabilitate the injured employee back to their position in a safe and timely manner.

Babinchak expressed some concern in change in policy; an employee also expressed some concern. Mr. Schmisek questioned whether it was right that the full burden falls on the City to pay, that the employee gets the time off, 100% of pay with no impact on sick leave, and that there is no written policy; coming forward now for discussion and if want to continue under current policy, that is within their authority to approve. Mr. Swanson advised that he hasn't studied Code whether any changes required with new policy.

After further discussion it was moved by McCabe and Carpenter to approve the new policy as presented. Motion carried; Babinchak voted no.

7. Matter of extension of lease with State Highway Patrol.
Mr. Swanson reported that the Highway Patrol leasing office space in Police Building and presented request from North Dakota Highway Patrol for an extension of lease dated February 1996 for office space utilized by the Grand Forks District Office at 122 South 5th Street for period July 1, 1996 through June 30, 1997 at the existing rates (rate includes utilities, etc.) Mr. Schmisek concurred in the lease extension at current rates.

Moved by Babinchak and Carpenter to authorize proper City officials to enter into the lease extension with the North Dakota Highway Patrol. Motion carried.

8. Budget amendment.
a) Resource & Development - $2,880
Mr. Schmisek reported this amendment is to use cash carryover for 1996 expenses relating to events center. Moved by Babinchak and Carpenter to approve. Motion carried.

9. Applications for 3-year remodeling exemption:
a) First National Bank, 12 North 4th Street
b) Scott J. Imberi, 412 South 5th Street
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c) Monte L. Phillips, 820 North 25th Street (May 1993)
d) Monte L. Phillips, 820 North 25th Street (June 1995)
e) Thomas Hagness, 1423 11th Avenue South
Mr. Carsen reviewed applications, which are last applications under old policy, and recommended approval. Moved by Babinchak and Carpenter to approve the applications. Motion carried.

10. Matter of request for tax incentive by LUCO Properties,
1710 North Washington Street.
Bill O'Connell and David Kveit, LUCO Properties, and Lunseth Plumbing presented their request for buying or remodeling the old John Deere building north of Home of Economy, and here today because building in worse shape than anticipated, however, Lunseth's is not just plumbing shop, they are also doing manufacturing, and reviewed their resume' with the committee outlining work they do, projects they have done, and needs for their new building (paved parking lot, fencing, roof repairs, insulation and reside building). He also stated they will be looking at additional employees . He stated they are asking if City will assist in financing.

It was noted that they had been to the Growth Fund Committee and were directed towards TIF package because expanding business and creating jobs. Mr. Carpenter reported that the Growth Fund doesn't do manufacturing, some conflict with competition.

Babinchak excused.

There was some discussion whether project would support tax increment financing; or possibility of long term tax increment exemption, which could be greater than bond sale. Mr. Swanson stated that tax exemption can ge granted up to 15 years, and in the long run save more money. He stated he will review steps,

The committee sent the matter back to staff for review and consideration, and to come back to finance for their April 30 committee meeting.

Meeting adjourned at 5:25 p.m.

Alice Fontaine
City Clerk

Dated: 04/09/96.