Committee Minutes

MINUTES/FINANCE COMMITTEE
Tuesday, May 26, 1998 - 3:45 p.m.

Members present: Carpenter, Babinchak, Bakken, Hamerlik.

1. Request by employee for unpaid leave of absence.
Theresa Knox, health department, stated that committee was sent memo re. her request for leave of absence for education. Dan Gordon, Human Res. Dir., reported that department head can auth-orize 30 days leave, mayor can authorize 60 days and after that full council for any leave, considered on a case by case basis. Committee asked who would replace Mrs. Knox; Deb Swanson, supervisor, reported this is for leave of absence (not for educa-tion although she plans to pursue an education during that one year leave of absence), and during that time fill her position with a one-year temporary employee. She stated they have other temporary employees in the department and don't anticipate this as being a hardship, will benefit the health department with education she receives and will be able to fill position adequately from internal pool or from within the community. Mr. Shields stated there will be some time spent to recruit transfer in the position, that master's degree is not a requirement of the position, and when she returns not any increase in pay. It was noted that this is a full-time classified position, must work 1040 hours before pro-rated benefits. Moved by Babinchak and Bakken to approve the request. Motion carried.

2. Matter of underwriter for corporate center bond issue.
Held until meeting scheduled for May 29 at 1:00 p.m.

3. Matter of replacement of one 1 1/2 ton National 556B truck-
mounted crane.
Mr. Schmisek reported that this crane owned by Lunseth Plumbing & Heating was damaged or destroyed during flood when doing work for the City, they requested replacement of the equipment, that City searching Internet and found a crane of comparable age at cost of $61,000, that these funds not recoverable from FEMA and if do this, do through City's funds - carryover in general fund and do have enough carryover to do this. Sarah Hellekson reported that the crane was mounted onto a truck near one of areas where pumping out sewers as river coming up under and over dike and needed truck and crane to keep piping from breaking loose, etc. and stormwater department commandeered equipment from the contractor so contractor no longer had control over his truck and crane, and according to our insurance company only law enforcement officers can do that even though time of emergency. She stated that FEMA won't pay because not City-owned at the time and not allowed to commandeer things, but we did need and take it, believe it's our respon-sibility to try to come up with idea as to cost to replace; that Bill O'Connell has been very helpful in providing information, that it's very difficult to find a used 12 1/2 ton crane mounted on a truck, that they did find one in Bismarck/Mandan but would like to have an amount for replacement of equipment, and this seems fair to Lunseth's and to us. It was also noted that Lunseth's insurance
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would not cover this either. It was also noted that CDBG funds will not cover cost of this (construction equipment), and was informed no salvage value to the equipment.

Mr. Schmisek suggested that in emergency need to deputize workers; Mrs. Hellekson stated they can check with the insurance company which they were in the process of doing, to see if can get insurance to have emergency operations center be able to commandeer items.

Moved by Hamerlik that we reimburse Lunseth's Plumbing & Heating for the truck and crane and authorize payment in an amount not to exceed $61,000 and other appropriate costs, that the city attorney draft legal documents, and that we authorize transfer of funds from the General Fund cash carryover. Motion carried.

4. Matter of various items:
a) Hamerlik stated that the committee and council passed motion that we allow the police reserve to take up to 50 of the better bicycles and no mountain bikes, that he went to the auction and that they had more than 50 bicycles and many mountain bikes, and his concern is where and how did motion get sent to people who need it. He stated nothing been done with the bikes; and would like answer to that. Mr. Schmisek reported that council action sent to the police department and will ask for explanation.

b) Hamerlik questioned status of impound site for police department and sale of building (former Valley Motor Co.); that can put up pole barn for about $5,000, etc. and if building sold any improvements should be made now. Mr. Schmisek stated he will check this matter also on options, etc. Comm. stated this would upgrade that corner and put property back on the tax rolls. Carpenter stated that only concern this committee has is that don't want to spend more money on another building; that they don't need to store everything in a building and if two auctions year held would take care of some of that. It was noted that they would have to have a secured area.

5. Matter of protest by Terra International, Inc.
Mel Carsen, city assessor reported that Terra International protest will be coming to committee on Friday but wanted to make committee aware of where they're at and what options might be available. He submitted copy of report to committee members and stated that copy had been sent to Terra. He reported that Terra lost their building in the flood, that pre-flood value for land and building valued at about $290,000, they built a new building assessed at about $1.1 million plus land at $32,300 so significant increase and they're looking to have City phase in the increase, but quite frankly City can't do that as he doesn't have that authority and has to assess building that was there on
February 1. He stated there was possibility of using new business
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exemption, five-year phase in, but that exemption is limited to new businesses or expanding business, expanding business would be adding people, building size, etc. and building about the same size as before. He stated that applicant is supposed to be approved prior the beginning of construction or prior to occupancy, but both of those things have happened, doesn't have any answer but wanted committee to know the background.

Carpenter stated that current taxes would be about $29,000; Mr. Carsen stated $7200 with flood damages, and new building with discount $27,600; that this is superior building and new (new building flood-proofed). Committee asked what are options: Mr. Carsen stated he doesn't know of any other options. There was some discussion by committee re. phase in, but would set precedent, and it was noted that lot of businesses that put money into their buildings and haven't expanded.

Mr. Carsen reported they had sent out a notice in error on this property before they had figured out the new building so it restored value and they sent out a notice showing value from $109,000 to $391,000, back to it's old value, that owner called and was told that value would be higher than that which was pre-flood value, and Mr. Carsen stated he would be really cautious not to phase value in because treating differently and setting precedent, and if want to do something for Terra pay them for use of their trucks, etc., and committee stated that would set another prece-dent. Hamerlik stated they could "honor their mistakes" and if there was way here for the one year. Mr. Carsen stated that owners have not disputed value of the building, and took permit for $1.3 million for the building, and committee questioned why increase in value would be surprise to them. Mr. Carsen stated they didn't seem to want any increase in value.

Committee stated that this is Friday's decision, property owner not here and shouldn't make any decision, but now have information for consideration. Mr. Carsen stated that was his intent, to make committee aware of the information. Carpenter asked if under new or expanding business exemption, do they have legal ability to do after constructed or occupied. Mr. Carsen stated they could after construction but done prior to being occupied. Committee asked whether under law would they have ability to give phased in five-year exemption. Committee asked that Mr. Carsen check with the city attorney whether they have ability, not that they want to do that but whether have ability to make policy decision. Info.

Moved by Hamerlik and Babinchak to adjourn; meeting adjourned at 4:30 p.m.

Alice Fontaine, City Clerk

Dated: 5/26/98