Committee Minutes

MINUTES/URBAN DEVELOPMENT COMMITTEE
Wednesday, January 13, 1998 - 4:00 p.m.

Members present: Beach, Bouley, Polovitz.

1. Matter of new accounts receivable position.
Terry Hanson reported he had sent communication to Mr. O'Leary and to this committee asking for creation of new position within Office of Urban Development, classified position and full-time employee; that in the past the accounts receivable in Housing Authority has been administered by housing technician, and should be more of a finance position and take on more duties (collection of past due rents, etc.). He reported that several years ago took more aggressive role in collection of past due accounts and turned them over to a collection agency 30-days after they became due, doing little work internally. He found that if more aggressive could collect themselves without going to collection agency and position is more finance person. He stated he would like to adver-tise and hire advertising technician with qualifications currently in the City's accounting tech. position and with some experience in collections or accounts receivable.

Committee stated that there should be wider gap than 30 days before turning over to a collection agency. Mr. Hanson reported that this work done by housing technician, and rather than getting another housing technician; that accounts receivable position two steps higher than housing technician but with additional fees collected would more than cover costs. He noted that after flood they used person to do this and in month and half collected over $45,000. He reported that this new position would spend approx. 50% of time collecting past due accounts and balance of time collection of rents and preparation of waiting list they have to monitor, and position would also act as receptionist, etc.

Dan Gordon, Human Resources executive director, reported that he supports the request, but is concerned that this not be portrayed as a reclassification; that when wage study started there was two-year moratorium placed on any shifting of positions. He noted that there is no one occupying either position. He also noted if approved, would require two motions: 1) to amend budget to pay for accounting technician position, and 2) reallocation of the posi-tions. The committee also questioned if pay grades appropriate, etc. and Mr. Gordon noted that grade established by wage study.
Mr. Gordon briefly reviewed how job descriptions/pay grades established during wage study for Mrs. Bouley.

Moved by Polovitz and Bouley that we approve budget amendment to cover the difference between the top of a Grade 13 to the top of a Grade 15. Motion carried.

Moved by Polovitz and Bouley that we approve reallocation of positions and eliminate housing technician and substitute position of accounting technician. Motion carried.

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2. Budget amendments.
Terry Hanson reported they were doing reconciling of year end reports and came up with remaining balance of Beautification Fund and knowing those funds had to be carried forward made up an amend-ment of $123,905.65 to transfer those funds into 1998 as cash carryover balance. He reported they had attached a sheet showing outstanding balance of the beautification projects; some of the projects may be completed and other projects will not be done (lighting on RR bridge, pavers, etc.) He also reported that there was chance that there were not any funds set aside in budget for 1998, however, may need to reallocate funding to other projects. Curt Siewert reported that he has had some requests to reobligate some of the funds and that they need to summarize project status.
It was reported for Bouley's information that the City has in past few years appropriated one mill ($67,250) for beautification pro-jects.

Moved by Polovitz and Bouley to approve budget amendment to carry-over beautification funds to 1998 in the amount of $123,905.63. Motion carried.

3. Matter of city government review.
Chairman Beach reviewed Memo he had prepared relative to this matter. Polovitz commplimented Chairman Beach on his report; stated that the law is vague re. what we have to do but have to do something. Beach reported that under section re. mandating self review, this is relatively new law and thinks it has to be done every five years, that he talked to Mr. Swanson re. this matter and he would like City to do this, and that there are people in the community that have expressed an interest in examining our own structure. He stated he has no additional comments re. memo, but under II Suggested Areas of Review, 3. Structure and Duties of Committees, Mr. Swanson stated there probably several that could be realigned (Board of Variances, Board of Appeals, Board of Adjust-ments, etc.) and could perhaps do that.

Moved by Polovitz and Bouley to approve plan for the council to consider and implement. Motion carried.

(Copies will be forwarded to the council, department heads, etc.)

4. Request to forgive rehab loan on property at 413 2nd Ave.S.
Sue Redman, Community Dev. Coordinator, reported this has to do with request for forgiveness of rehab loan in the amount of $5,267.76, that a few years ago the City had rehab program for low and moderate income people, City did up to $5,000 rehab and if people lived there for 5-years loan was forgiven and if property sold loan was to be repaid out of proceeds. She reported that this house purchased in second phase of buyout, that rehab loans that came up as part of the buyout were to be negotiated out and in this MINUTES/URBAN DEVELOPMENT COMMITTEE
January 14, 1998 - Page 3

particular case no one knew about rehab loan, didn't find out until day of closing, and asked her to request forgiveness of the rehab loan and come to Urban Development and hopefully set policy to secure consistent policy if should come up again. She reported that people who negotiated were unaware of loan, and owner thought it would be forgiven because of the flood. Ms. Redman also reported that Ms. Knaus has been living in Gilby with her family and today closed loan on a house in Grand Forks. She also reported that there has been one case in buyout where loan was forgiven.

Moved by Polovitz and Bouley to forgive rehab loan in the amount of $5,267.76 to Jill Knaus, owner of property at 413 2nd Avenue South.
Ms. Redman reported that they have had four cases, two occurred in the buyout and two where house was damaged by the flood but not sufficiently to lose house but two homeowners did sell their houses and have policy that if house purchased by another qualified low and moderate income household who is willing to accept the remainder of the loan, and that did happen. Mr. Hanson reported these loans actually are assumed to be grants, grant unless property owner sold house. She reported that rehab loan only paid back if sell house prior to five years.

Upon call for the question and upon voice vote, the motion carried.

Moved by Polovitz and Bouley to adjourn, and meeting adjourned at 4:40 p.m.

Alice Fontaine
City Clerk

Dated: 1/14/98.