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MINUTES/FINANCE COMMITTEE
Tuesday, July 9, 1996 - 3:45 p.m.

Members present: Carpenter, Babinchak, Bakken, Hamerlik.

6. Matter of Youth Commission.
Pam Larson, worked with steering committee, KPA, 20/20, here to answer questions. She stated their goal is still the same, hoping that Youth Commission will initially start here in city council, and now in position where they want to get the Board in place, get coordinator hired and start working on some of the projects. The committee questioned the status, make-up of the commission. Ms. Larson stated they are trying to follow the requirements of a community block grant that they think will be a major part of the national movement on youth commissions in communities, and their max. requirement for board members is 11, they started with larger group (rep. organizations/groups who wanted to be represented) but got to be uncontrollable number; and there is some guidance of type of people need to have on commission (ie., someone experienced in substance abuse in the youth area, etc.) and would like to follow those guidelines so be in place for that grant should it go through.

Chairman Carpenter stated that council is looking to get commission appointed, approve job description, and also that the position will not be under civil service, but contract, and on a trial basis until end of 1997. Ms. Larson stated that they look at as a temporary position because have been offered a year contract for this position, not a civil service position, and no retirement benefits for the position. It was stated that this is non-classified temporary full-time City position. Mr. Swanson reported that temporary employees qualify for pro-rated benefits after working 1200 hours, individual wouldn't get that number of hours in this year, but could receive benefits for 1997.

Ms. Larson stated that one of the reasons they fought so hard to have it come from this direction is that they feel that a youth commission's primary job is to be an advocate for the youth of Grand Forks and feel that the message has to come from the city as a whole, that they are going to try to establish a community of care for youth effort throughout the city and want message to come from the city that this is priority.

It was noted that $25,000 in funding approved for 1996, and
$37,000 to be included in budget for 1997; they wanted more money for 1997 but council stated they would have get rest from other sources. Ms. Larson stated they are aggressively pursuing other financial opportunities, that there are several grants they are looking at.

There was some discussion re. commission, that once commission established, they would interview candidates and appoint coordinator. Mr. Swanson advised that if commission is merely
committee, would have no authority to write grants but would have MINUTES/FINANCE COMMITTEE
July 9, 1996 - Page 2

to be offered in the name of the City of Grand Forks, and Ms. Larson stated that would not be a problem. Ms. Larson stated that original plan was that if established within the City they would have credibility with the community and accountability. She stated they could have set up an independent agency long time ago, but wanted it to stem from City, and they would be willing to work with City. Mr. Carpenter stated they could start as committee and look at setting up separate entity by ordinance, that would allow them to proceed and grants would have to go through council authorizing mayor to sign.

Ms. Larson reported that grant they are seeking is Knight Ridder, two part grant, first part assessment and second part imple- mentation; first grant $50,000 and under, and second grant over $100,000 and would not require any additional funds from the City, only know that Youth Commission has been established. Application has to be in by July 31. They are also waiting for federal block grant, still pending in legislation.

Mr. Hamerlik stated that applications have already been accepted for the position; Mayor Owens stated that there was hold put on that and every candidate notified.

Moved by Babinchak and Hamerlik to approve position of project coordinator and the related job description.

Mr. Hamerlik expressed some concern that applicants had been notified of salary plus benefits, when benefits possibly not given until sometime in 1997, and suggested notifying whether want to continue with application. Mr. Swanson stated he didn't have great concern, key would come at time position offered to someone. Chairman Carpenter suggested that if this motion approved and when they notify applicants that process started again, they also notify re. benefits policy.

Motion carried.

Moved by Hamerlik that they authorize the mayor, in consultation with the city attorney, to enter into grant application with Knight Ridder. Motion carried.

It was noted that the mayor will submit names for appointment of commission to council through the agenda.

1. Matter of reconsideration of request by Tim Lamb for TIF financing for project involving improvements to property at
1624 Dyke Avenue.
Mr. Lamb distributed information to committee along with photographs for the improvement of two lots, with focus of
project to be renovation of the Dyke Avenue site; that there
was some discussion at previous meeting whether blighted/slum
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July 9, 1996 - Page 3

area or not, and reviewed fact sheet with the committee. He stated that the project is to move house from the Lynwood Circle area to the Dyke Avenue area, need new foundation, electrical, rehab structure, etc. and reason for the request is renovation cost exceeds value of improved property, but if look at potential of both lots, projected tax increase for both lots of approx. $5,000/yr. based on completed project; advantage to City - tax values on both lots increase substantially, neighborhoods improved. He reviewed est. project costs, $95,000 on the Dyke Avenue property. He stated this would provide incentive for other developers.

There was some discussion relative to cost of renovation vs. new construction, which Mr. Lamb stated he has not considered on the Dyke Avenue property. Mr. Hamerlik asked what has changed between previous request which was turned down and now; and Mr. Carpenter stated that Mr. Lamb didn't have opportunity to speak before full committee or at council. Mr. Bakken questioned why if not good business deal, City would want to do it, project should stand on its own. Mr. Lamb stated that if council doesn't approve, both lots will be left as they are and value stay same. Committee questioned benefit to the city, couldn't do on separate TIF bond issue because costs would eat up significant amount of proceeds and nothing left for the project.

After further discussion it was moved by Babinchak and Carpenter to receive and file the request. Motion carried.

2. Request from RDO Foods Co. for five-year property tax
exemption for expansion project.
Held in committee for formal application; will be coming back in two weeks.

3. Matter of 1995 audit report for the City of Grand Forks.
Ron Johnke, Brady, Martz & Assoc., stated they performed audit for the City of Grand Forks for year 1995 (comprehensive financial report). He stated that the report is prepared by the City finance department, and their job is to perform audit on that; and included in the report is their auditor's opinion on the financial statement stating that they performed the audit in accordance with generally accepted auditing standards, government auditing standards and also a circular called Office of Mgmt. Budget Circular A-128, which is a requirement for anyone who receives federal funds. He stated that what they have is an unqualified opinion, which is highest opinion you can get, saying everything is presented fairly. He reviewed the report with the committee, and accounting procedures performed in federal financial system. He reported they found no violations of requirements of federal monies, and in effect grants handled in
satisfactory manner. It was noted that a full audit is performed every year.

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Moved by Bakken and Babinchak to approve the 1995 audit report, and authorize payment to the audit firm subject to final approval of the report by the State Auditor's Office. Motion carried.

5. Matter of re-allocation of two positions in sanitation
department (from Equipment Operator I to II).
Held.

6. Matter of software maintenance agreement.
Saroj Jerath, deputy city auditor, reported this agreement for financial management software maintenance for another three years, renewal, and there is license fee upgrade for $5,000, and $28,200 for the maintenance agreement for each year; need approval to sign the agreement. It was noted that current maintenance is about $26,800 (about 6.5% increase over last year). Mrs. Jerath also reported that the City has renewal option at end of each year. Mr. Hamerlik asked how many more, whether worthwhile to combine. It was noted software from different companies.

Moved by Hamerlik and Bakken to authorize payment of the license fee upgrade in the amount of $5,000 and to enter into the three-year maintenance agreement at a cost of $28,200 each year, with option to renew at end of each year. Motion carried.

Moved by Hamerlik and Babinchak to adjourn; meeting adjourned at 5:05 p.m.

Alice Fontaine
City Clerk

Dated: 7/10/96