Committee Minutes

MINUTES/FINANCE COMMITTEE
Monday, March 3, 1997 - 7:00 p.m.

Members present: Babinchak, Bakken, Hamerlik.

1. Matter of resolution authorizing issuance of $13,700,000 Sewer Utility Revenue Bonds, Series 1997B.
Candi Stjern, acting deputy auditor, presented the resolution and reported that these bonds are for construction and improvements of activated sludge mechanical wastewater treatment plant, that notice was published and no protests were filed. Chuck Grotte, Asst. Dir./Public Works, reported this has been through budget and CIP and council has approved facility plan.

Hamerlik and Bakken moved adoption of the resolution. Motion carried.

2. Matter of lease of City-owned building in City Center Mall.
Dick Jackson, mgr. City Center Mall, reported that Clayton Zeller wants to rent a portion of the Plunkett building, 24 S. 3rd Street, for a second hand retail store (front part of the building plus basement) and submitted listing of costs to the committee for remodeling of the building (incl. relocation of electrical meter outside the building, sprinkling system needs to be redone, etc.) at an est. cost of $20,000. It was noted that they cannot rent the space the way it is. He reported that Mr. Zeller is willing to sign a two-year lease at $610/mo. Committee questioned investing that amount of dollars for remodeling and not recouping costs within the two-year period, and suggested asking for a three-year lease. Moved by Bakken and Babinchak to authorize entering into lease with Clayton Zeller for property at 24 South 3rd Street at $610/mo based on a three-year lease. Motion carried.

3. Matter of State CDBG flood resolution.
John O'Leary, exec.director of Urban Development, reported this matter needs to be taken care of; that the Grand Forks Mission has drainage problem on alley next to their building, when it rains or snow melts, water runs into basement (men's dorm). He reported that the Office of Governmental Assistance has funds available to help deal with this problem, and is requesting $7,000 from them to put in storm sewer drain to alley and some drain tiles next to the building, total cost of improvements about $7,000, that there is no cost to the City and staff recommended to go ahead with this. Bakken and Hamerlik moved adoption of resolution of sponsorship for a project for the Grand Forks City Mission Flood Relief Project for period April 1, 1997 through August 30, 1997, subject to final grant agreement being reviewed by the city attorney. Motion carried.

4. Matter of flood insurance.
Mrs. Stjern reported they have additional information on this matter for the committee. Bev Collings, Bldg. and Zoning Adm., reported they have received more information from FEMA and
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March 3, 1997 - Page 2

additional information on rates. She reported that the City is required to cover buildings where received federal assistance, that City is to keep track of that; that they can cover up to $500,000 per building for max. of $2600 and can choose what they want. She stated she wanted to make committee aware of insurance rates, etc. She stated they were estimating coverage on all buildings at less than $10,000. It was noted that only certain items covered by insurance, and that water plant doesn't qualify.
After further discussion it was moved by Hamerlik and Bakken that the council grant the finance committee POWER TO ACT on flood insurance matters.

Meeting adjourned.

Alice Fontaine
City Clerk

Dated: 3/04/97