City of Grand Forks, North Dakota

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	MINUTES/FINANCE COMMITTEE Tuesday, February 28, 1995 - 3:45 p.m. Members present: Carpenter, Babinchak, Geller, McCabe. 1. Application by Young Manufacturing, Inc. for 5-year property tax exemption for addition to existing building. Brian Young, Young Manufacturing, Inc., was present. It was noted that it has been standard policy if approve to do so on a declining scale over the five year period - 100% exemption first year, 80% second year, 60%, 40% and 20%. Mr. Young stated they have been in Grand Forks since 1947, that they primarily do work that is exported out of Grand Forks, that they are a metal stamping and manufacturing company (customers: Arctic-Cat, Case, etc.); that in the next couple years they are expecting sub- stantial growth and are expanding existing facilities. He also noted they don't believe they have any competitors in the State. Mr. Carsen stated exemption would not apply to the current facility, nor the land, only apply to the proposed addition. Moved by McCabe and Geller to approve the application for the five-year property tax exemption on a declining scale as follows: 100% exemption for the first year, 80% the second year, 60% the third year, 40% the fourth year and 20% the fifth year, subject to the public hearing on March 20, 1995. Motion carried. It was also noted that Young Manufacturing has Growth Fund application in, they have had preliminary approval of a pre-ap, so there is additional assistance they are looking at for this company. Moved by Babinchak and Geller to set the public hearing on the application for Monday, March 20, 1995. Motion carried. 2. Matter of Senior Citizens Center parking lot. Mr. Carpenter noted that this matter had been held at last meeting pending further investigation by the city auditor and the city attorney. Mr. Swanson reported that he had indicated that there may be alternative sources of funding committee may wish to be aware of, that he reviewed appropriate sections of the Century Code and this would be a project eligible to be special assessed back against the lot (City owns property), and that would not impose any difficulty with the restrictions on the use of sales tax if committee inclined to do it that way. Mark Rios, chairman of Building and Transportation Committee of the Greater Grand Forks Senior Center, stated they had submitted application to Community Development for CDBG funding, and stated they would have no objection to the committee's holding this matter pending the result of that process. It was noted that CDBG allocations would be approved by council on April 3. Mr. Carpenter stated he would like to see this go through that process, and that if not funded possibly go through special assessment process, and not set precedence for other organiza- MINUTES/FINANCE COMMITTEE February 28, 1995 - Page 2 tions to come in for funding through use of general fund revenues. The committee directed that if on the 3rd of April no funding allocated for this project through CDBG, would have this item back on the April 11 agenda. 3. Request from taxicab companies for reconsideration of new rates and fees for city chauffeur's license. A communication had been received from Clyde Varnson, Nodak Radio Cab Co., and Dick Rothenberger, Grand Forks Taxi, pro- testing the increase in chauffeur's license fees. Clyde and Orval Varnson were present. (It was noted that former fee was $10 ap. fee, which covered background check, and $10 license fee, however, if applicant received a license the $10 license fee was not collected; with a $5.00 renewal fee; and new fees are as follows: $25 ap. fee, $25 license fee and $25.00 renewal fee) Mr. Schmisek reported that last year at budget time when looked at revising fees, tried to determine fees based on costs, and also requested that minimum fee on any license be $25.00; there are several different license groupings where cost less than $25.00 but were set at $25.00. He stated that some of the concern expressed that there should have been a $10 ap. fee and a $10 issuance fee, that was misread and was not being done, so this was a significant increase. Clyde Varnson stated it was unfair to increase five-fold, have lot of employees - 30 (Town Cab has 8) and it amounts to lot of money, that they pay fees as lot of those people do not have money to get a license, that taxi rates pre-determined by the City and for them to get increase have to go before city council, haven't done so since February of 1989, feel fee increase excessive. Mr. Varnson also noted that after rate change they do not have people applying for jobs. He also questioned why other transportation providers aren't required to have chauffeur's license and background check. Mr. Swanson stated that intent of the licensing is to insure that those providing public transportation are competent and capable of providing safe and adequate public transportation. Capt. Brown stated they charged initial fee and if applicant passed, no additional fee was charged for the license; however, if applicant did not pass, they did not refund the initial fee. He also stated they are doing background check on renewal aps. with no charge. Moved by Geller and McCabe to amend the ordinance to reduce the initial application fee from $25.00 to $10.00, and the first year's license from $25.00 to $10.00, leaving renewal fee at $25.00, and to introduce for first reading. Motion carried. MINUTES/FINANCE COMMITTEE February 28, 1995 - Page 3 4. Request from Greater Grand Forks Sertoma Club for funds to assist with expenses for duck race and fireworks show on July 4. Paul Lester, rep. Sertoma Club, stated that the program has increased over the past several years and has become city-wide event on the 4th of July with the duck race, entertainment, concessions, and fireworks show, etc.; and presented request for assistance in the amount of $2,000 to provide toilet facilities, rental of portable toilets. He noted that bikepaths also used by bikers, joggers, etc. and suggested in the future City consider permanent facilities. Mr. Carpenter stated that there are two processes where City distributes money (CDBG and Human Needs - promotional aps), and suggested Mr. Lester contact Community Development Office re. application for funding if they would qualify. He also noted that the Riverforks Commission is soon to be appointed, that there is money in budget for hiring personnel, maintenance, and this is something that could fit into that, and suggested referring this item to that commission once appointed; they would also consider more permanent facilities. Moved by Geller and Babinchak to refer to the Riverforks Commission once members appointed. Motion carried. (The committee asked the city auditor to give information to the Riverforks Commission when they meet to organize.) 5. Applications for 3-year remodeling exemption for the fol- lowing properties: a) 1014 1st Avenue North b) 1111 Lincoln Drive c) 718 Cherry Street d) 721 South 10th Street Mel Carsen, city assessor, reviewed applications with the committee. Mr. Carsen stated that this law covers any remodeling improvement (renovation, remodeling or modernization), cannot expand structure, but can do virtually anything to the structure itself, residential property has to be at least 25 years old, commercial can be one year old property. He stated there is current legislation being considered that would give local jurisdictions the ability to restrict or write guidelines that are more restrictive than the law. Mr. Carsen stated they can exempt additional value to the building, that they make new appraisal of property in its new remodeled state. Mr. Swanson reported that improvements have to increase value of the property to be exempted; and that intent was to have older homes renovated, etc. Moved by McCabe and Babinchak to approve the applications. Motion carried. MINUTES/FINANCE COMMITTEE February 28, 1995 - Page 4 6. Matter of policies for processing delinquent and final utility bills. Held for two weeks at request of Howard Swanson, city attorney. 7. Temporary and overtime report for January, 1995. Mr. Schmisek reviewed report with the committee. Moved by Babinchak and McCabe to approve. Motion carried. (comm. only) 8. Matter of license fees for mobile home courts. (The base fee for trailer park/mobile home parks was increased from $50.00 to $70.00, however, the per lot fee was erroneously reduced from $2.00/per lot to $0.70/per lot) Mr. Schmisek reported that during process of establishing license fees, they reduced a $2.00 fee per lot on trailer park/mobile home parks to $0.70 per lot, and asked that the $2.00 fee be reinstated. Moved by McCabe and Babinchak to amend the ordinance to raise from $0.70 to $2.00 per lot fee for trailer park/mobile home parks. Motion carried. Mr. Swanson stated that he would be inclined to combine the taxicab rate change with this ordinance, and is assuming both will be retroactive to the first of the year. 9. Budget amendments: a) Mr. Schmisek reviewed request to amend 1995 budget to increase budget for prior year encumbrances totaling $1,131,519.10 for various departments (contracts, equipment, etc.) Moved by McCabe and Geller to approve the budget amendment. Motion carried. b) Mr. Schmisek reviewed request to amend 1995 budget to cover engineering costs for EAPC on parking ramp project, requesting an amendment using cash carryover of $18,000 to allow us to transfer to the CBD. Moved by Babinchak and Geller to approve budget amendment. Motion carried. 10. Agreement with State re. transfer of municipal court cases to district court. Mr. Swanson reported that at its last meeting the council authorized that the City enter into an agreement with the State of North Dakota with a 50-50 split for those fines on cases out of municipal court that are transferred to district court; that he drafted the agreement and forwarded it to the presiding judge, Judge Bohlman, who contacted him and indicated that the County has now expressed a desire that they be made a part of the agreement and receive some share of the fine split. He stated that City presently receiving 40%, with 60% going to the County. He stated that at this point not sure where going to end up MINUTES/FINANCE COMMITTEE February 28, 1995 - Page 5 because State will not enter into the agreement until the County has approved it. He stated that the County contending that despite the fact that the courts have been consolidated, the County still has certain costs or expenses incurred; that he doesn't know what they are claiming or what amount. He stated he had told Judge Bohlman that he didn't see why the City would be placed in a situation where it would be asked to receive less funds than in the past purely because district court and county court have now been consolidated. He stated he will be meeting with the County and district court reps. and report back to committee. He also stated they were not talking a great deal of money because majority of cases stay in municipal court. He noted that County has lost a source or revenue that they had in the past and are seeking to retain revenues they had; but they have also given up expenses that they previously had. Information only. 11. Status of various items. a) Investment policies and procedures. Mr. Schmisek reported they are trying to get information from other governmental entities, but hasn't heard back at this point. b) Matter of combining police building maintenance with other city buildings. It was noted that Council Member Sande had called auditor's office and this item will be placed on the next committee agenda. Meeting adjourned. Alice Fontaine City Clerk Dated: 2/28/95.