Committee Minutes

MINUTES/FINANCE COMMITTEE
Tuesday, April 14, 1998 - 3:45 p.m.

Members present: Carpenter, Babinchak, Bakken, Hamerlik.

4. Matter of employee request for leave of absence.
Dan Gordon, Human Resources, reported that there is an opportunity for a valued employee, Margaret Emanuel, who has been with City for 10 years, and is requesting a 30-day leave of absence without pay, cost to City is nothing for that time, and this is due to an employment opportunity that she has been offered and would like to have opportunity so if things don't work out can come back. He stated he supports the ideas, as does the department head and the Mayor. Hamerlik stated that there is policy which allows for 30 days leave by the department head, 60 days by the mayor but caveat along the way that says that if they receive pay at any time during that leave, termination is as of that date, and request is not so much the leave of absence but the allowance of pay during that leave of absence to take care of that caveat in another section of the Code that she can get paid, so it's a matter of allowing her to get paid for those 30 days during that period of time but not from City source (including fringe benefits). Hamerlik moved acceptance of leave of absence for Margaret Emanuel in order that she may receive pay during her 30-day leave of absence. Bakken seconded the motion. Motion carried.

Carpenter and Babinchak reported present.

1. Applications for 3-year remodeling exemptions for the fol- lowing properties:
a) 409 Gateway Drive, Kevin Frohlich, A-1 Vacuum
b) 3527 11th Avenue North, Elizabeth Brocker
c) 322 North 20th Street, Kenneth and Marion Sobolik
d) 1432 Walnut Street, Lynus and Deborah Sevigny
e) 1502 Walnut Street, Lynus Sevigny

Mel Carsen, city assessor, reported he visited with Mr. Swanson, and asked if application came in what would be appropriate base and it was his understanding that the pre-flood value as of February 1, 1997 would control and applicant would have to go $5,000 or 10% more than the pre-flood value to qualify on the 3-year remodeling exemption. He stated he also asked what would happen when get into 1998, and without any change in the policy the February 1, 1998 would be controlling, which would in all likelihood include some flood damage to those properties, so if do nothing to the policy, February 1, 1998 would control, and could at their discretion have a policy change and include in guidelines stating that the February 1, 1997 would control any flood restoration for purposes of exemption. He reported that Mr. Swanson had stated they could make a change to the policy and law allows for that. It was noted that change would require council action.

Mr. Carsen reported that the controlling date for valuation is as of February 1, 1997 or pre-flood value and that becomes base for the next three years, and to qualify have to exceed that value by MINUTES/FINANCE COMMITTEE
April 14, 1998 - Page 2

either $5,000 or 10%. In answer to Babinchak's question if applicant received FEMA money would they have to deal with duplication of benefits, Mr. Carsen stated shouldn't have to, that if total replacement federal grant, then exemption guide-lines state it doesn't qualify but if a portion of it is grant, no consequence on the ability to give exemption.

Mr. Sevigny stated that in review of aps. that his application at 1432 Walnut Street didn't qualify unless foundation repaired. He reported that the foundation was damaged before the flood and is noted in the assessor's report. He stated that the house would have been worthless without his repair, that they would have bought him out and if house not worth 10% more than after work done and didn't agree with assessor's values, that he felt he could get $100,000 for the house and assessor's valued at $77,000. He also reported that when made application didn't know all costs. Committee suggested to Mr. Sevigny to withdraw his application for 1502 Walnut as he isn't going to be doing any-thing on that at this time and to allow corrections on cost of his property at 1432 Walnut Street.

The committee reviewed the applicants:
a) Mr. Carsen reported that the new valuation would exceed old valuation by more than 10% and meets qualifications of the guide-lines. Moved by Bakken and Babinchak to approve application for the value over and above $5,000 or 10% of the pre-flood of 1997. Motion carried.

b) Mr. Carsen reported that this is repair of basement and would not qualify, that half the basement finished before and now finishing about 90% of basement so some increase bud doesn't know if qualifys. Hamerlik asked if there were possibility that these premises be actually reviewed in next several months before granting exemption because of the flood situation. Mr. Carsen reported they are not adding back flood damaged basement finish in 1998 even if it has been restored and are granting an exemp-tion in the office but only for 1998, and for 1999 plan to put on the basements that have been restored. It was noted that if they approve application and value did increase by more than 10% grant exemption and if doesn't irrelevant because wouldn't get increase for three years. Mr. Carsen reported that any neighborhood adjustment or city-wide adjustment still applies. He reported that they are assuming that applicant meets requirements of guidelines and are approving. Hamerlik suggested explanation along with letter of approval that pre-flood 1997 value will be the base.

Babinchak asked what happens to someone who didn't apply and weren't aware of exemption; Mr. Carsen stated that under current policy they can't go back more than 30 days and file exemption claim. Carpenter stated they are getting away from purpose of the program to improve their homes. Hamerlik stated that they had discussed that Mr. Carsen work with Inspections to get this information out.
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Moved by Babinchak and Bakken to approve. Motion carried.

c) Mr. Carsen reported that this application meets requirements. Moved by Bakken and Babinchak to approve the application. Motion carried.

d) Mr. Carsen recommended to approve application at pre-flood value. Moved by Babinchak and Bakken to approve the application. Motion carried.

e) Application withdrawn by Mr. Sevigny.

There was some discussion re. change in guidelines policy, two issues: 1) for any application that will come in for the exemp-tion in 1998, date for value, whether February 1, 1998 or pre-flood of February 1, 1997; that if do February 1, 1998 and value that comes back in because of flood repairs would be exempt and if February 1, 1997 would only be things that increase value over what it was pre-flood. Hamerlik suggested having sunset on policy change. Moved by Bakken and Hamerlik that policy guide-lines include change as follows: that all applications received prior to February 1, 1999 would use February 1, 1997 pre-flood value. Motion carried.

2) Other policy decision will relate to building permits, people who did not get a copy of the application with their building permit - It was noted that work mostly flood restoration and most don't qualify; committee left policy as is.

2. Offer to purchase Lot B, Harty's 2nd Addition (4330 Gateway Dr.)
Mrs. Jerath reported that the City had oral bidding and received an offer of $19,000 from Terry Rogers for this property. Moved by Bakken and Babinchak to accept the offer. Motion carried.

3. Matter of minor changes to job descriptions (verbal presenta- tion by Dan Gordon). Dan Gordon, Human Resources, reported that he thought he would have chance to discuss with Mr. Swanson but unable to do so; that they have had requests for changes to job descriptions that don't change integrity of classification system (State has increased or decreased certain requirements for licenses); and
according to Code all changes must have city council approval, but also gives authority to HR director to do minor housekeeping changes and is asking that this be held until he reviews with Mr. Swanson. Carpenter questioned whether any minor change have to go to Civil Service; Mr. Gordon stated they will only hear classification changes based on a changed job description as still have moratorium in place. Committee asked who control whether major or minor change; Mr. Gordon stated minor would be duplication of essential functions and not given points, major change would change points. Held in committee until Mr. Swanson reviews.
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5. Matter of wide area network bid summary.
Saroj Jerath, deputy city auditor, reported they were requesting this be held, as proposals received were laid out in variety of ways and Mr. Schmisek working with outside consultants to review proposals or if any need that RFP's be redrafted, and will being in at next meeting. Information.

6. Budget amendments.

a) Public Library - $200,239.00
Dennis Page, Librarian, reported this is combination of funds not spent because of flood, grants, etc. (will report funds received to the Mayor's Office.)

b) Youth Commission - $20,000
Amendment to reflect grant monies.

b) Transportation Department (Dial-a-Ride - $40,629
It was noted this is to purchase automated dispatching equipment (ADA requirement) funding, FTA 80% and State Aid 20%.

c) Public Library - $17,775.00
Unanticipated revenue from LSCA grant funds.

It was moved by Council Member Babinchak and seconded by Council Member Bakken that these budget amendments be approved. Motion carried.

Moved by Hamerlik and Babinchak to adjourn; meeting adjourned at 4:50 p.m.

Alice Fontaine
City Clerk

Dated: 4/15/98.