Committee Minutes

MINUTES/FINANCE COMMITTEE
Tuesday, February 24, 1998 - 3:45 p.m.

Members present: Carpenter, Babinchak, Bakken, Hamerlik.

1. Request from John French to lease property at 318 North 4th
Street for use as parking lot.
Mr. Schmisek reported they had received letter from Mr. French offering to lease this property for one year at $1.00/yr; that property was taken back because of taxes, house demolished and lot vacant, property was offered for sale but City didn't receive good offer. He stated that with property leased, it would be maintained (grass cutting, etc.)

There was some discussion re. lease terms on the property - requirement for insurance on the property by the proposed tenant (City would continue to carry property on its insurance), and expiration of lease as property is for sale.

Moved by Hamerlik and Bakken that we approve leasing the property for one year with lease to include a termination upon sale pro-vision and liability insurance requirement, upon review and approval of the city attorney. Motion carried.

2. Matter of Blue Cross/Blue Shield settlement.
Mr. Schmisek reported that the finance committee had referred this matter to Pension Committee with their recommendation to come back to this committee. He reported that the Pension Committee's recommendation was "that council authorize an equal cash payment to all current classified employees who were employed with the City as of December 31, 1996."

There was some discussion relative to movers of motion and amendment from Pension Committee, and that will show in the Pension minutes.

Moved by Hamerlik and Carpenter to concur with the motion of the Pension Committee for approval of cash payment to all current classified employees who were employed with the City as of December 31, 1996.

Mr. Schmisek made a point of clarification that motion states "..all current classified employees..." but that there is an elected official who was here on December 31, 1996 and that was Judge Noack, and that in past actions from finance and council that position has been allowed to receive almost all benefits (pension, life insurance, health insurance, etc.) and needed finance comm. to determine whether they want to make change to that motion, he has some concerns to that as opens to all others who aren't classified employees, and for future reference Judge Noack is not intending to run and whether want to continue that policy on an elected official
that they can be in benefit plans of the city. It was noted that municipal judge is 20 hours or less a week.

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February 24, 1998 - Page 2

Babinchak stated she believes date should be January 1, 1991, and asked Mr. Gordon that if there had not been an increase in health insurance premiums last June for all employees, what date would have been picked had there not been an increase; that this was based on 1986 to 1991 and date should have been 12/31/91. Mr. Gordon stated that if there wasn't an increase of health insurance he didn't know what would change in determining a date, and was trying to make something wrong, right and that was mayor's decision in looking at that initial date. He stated that he disagrees that they contemplate that receiving settlement on lawsuit that occurred during five-year period, and if owed that money, would not go back to that group of candidates, so have to pick date somewhat realistic and they have picked date of December 31, 1996.

Babinchak moved an amendment to the date of December 31, 1991; motion failed for lack of a second.

Upon call for the question the motion carried.

3. Consideration of bids:
a) mailing machine.
Mr. Schmisek reported that this is an item they have been working on for some time, that there is a memo before committee re. the two pieces of equipment, need to purchase as mail-processor went out of business; Gaffaney's bid $8,500 as purchase price and Pitney Bowes at $18,743. He reported that there is opportunity for leasing this piece of equipment and total lease cost is $13,270 for Gaffaney's, and $17,268 for Pitney Bowes, that memo outlines why lease price less than purchase price because of special GSA pricing. Reps. of Pitney Bowes were present. Mr. Schmisek reported that there are descriptions of analysis his office has done re. use of these machines. He reported that Pitney Bowes machine does lot of time savings for staff, savings alone in reduction in time is about 20 min.per day or $1900/yr. and difference in lease gets paid back fairly quickly. He reported he is suggesting lease because no budget line item for this so minimize cost as much as possible and budget in the future; that Pitney Bowes has opportunity that if there not appropriation, can back out; and if a business goes into business processing mail, it allows us an out at that time with no penalty fees. He stated their recommendation is the lease with Pitney Bowes equipment.

Moved by Hamerlik and Bakken that we enter into lease purchase agreement with Pitney Bowes in the amount of $17,268. Motion carried.

4. Budget amendments:
a) Human Resources - $2,500
(cover expenses of printing Employee Reference Guides)
Moved by Babinchak and seconded by Bakken to approve amendment. Motion carried.
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February 24, 1998 - Page 3

b) Civic Auditorium - $8,000
(to replace 2 doors and replace locks on outside building doors)
Moved by Babinchak and seconded by Carpenter to approve budget amendment. Motion carried. (Mr. Schmisek will get additional information re. location of doors, etc. for comm.)

5. Matter of comments - C. T. Marhula.
Mr. Marhula reported that when they had their meeting several months ago, thought were going to improve communications, and that in the future Civil Service Commission would be involved in the hiring of people, whether contract or not; that about 2-3 weeks ago heard council minutes on radio re. hiring of city planner again, and was surprised that was on the agenda. He expressed hope that in the future they were in the game much sooner than when going to council.

He also noted that other item was Code amendment re. housekeeping item where mayor could make emergency reclassifications or hirings. He reported he didn't have any trouble with what was recommended, that's process, but Civil Service Commission didn't see it prior to that. He stated that issue not problem with what they enacted but the concern is that they may be able to offer advice to that before fact so that they can get information and offer opinions before decision making process. Hamerlik stated he was in agreement and that after that meeting were to bring Civil Service back into the loop, and would hope that could communicate. He stated that second item was discussed at that meeting. Mr. Marhula stated that when involves Civil Service Code, should go to Commissioners if they choose to have input. Carpenter stated that at that meeting that comments were that CSC could be involved in any other hiring, same process whether under contract or civil service, and no one had problem with that. Hamerlik suggested that Human Resources would be office for CSC and any hiring, and should make an attempt to make informed.

Mr. Schmisek reported that his office will add Civil Service Com-missioners to the mailing list of agendas, etc.

Mr. Marhula commented on the corporate center, that he was an early supporter and remains a strong supporter of the corporate center, but question is that he is concerned with what has happened to the dikes and where funding coming from, that profits will automati-cally go to urban development, and his concern would be that they not commit those to urban development on a long term basis but reserve that right to do on an annual basis with other needs of the city, that not be tied into commitment where can't get funds back for higher need. Carpenter stated that commitment now for economic development, and at any time the Growth Fund, which is basically the city council and mayor could change that; that with restric-tions on use of the money it's probably going to fit into economic
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February 24, 1998 - Page 4

development better than some others, plus have some funds coming back. Hamerlik stated it's better to have sunset or annually or otherwise change by the council, so option in there, because get tied into something so long and becomes matter of precedence rather than intent. Carpenter stated that Growth Fund Authority maybe one to address that.

Moved by Hamerlik and Babinchak to adjourn, meeting adjourned.

Alice Fontaine
City Clerk

Dated: 2/24/98