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MINUTES/FINANCE COMMITTEE
Tuesday, July 30, 1996 - 3:45 p.m.

Members present: Carpenter, Babinchak, Bakken, Hamerlik.

1. Matter of sale of refunding bonds.
Wally Dornfeld and Al Erickson, Springsted, Inc., were present. (Mr. Erickson is working on event center financing.) Mr. Dornfeld stated they are financial consultants to cities, and Grand Forks is one of their clients, and basically they conduct financing for the City on their various bond issues. He reported that this issue of bonds is to finance various local improve- ments; and action they are requesting today is to establish a date and time for receiving bids and terms and conditions of the offering.

Babinchak reported present.

Mr. Dornfeld reviewed their recommendations for the $4,530,000 Ref. Imp. Bonds, Series 1996B, and stated that the date and time they are recommending is Monday, September 16, at 11:00 a.m., and they would be in Grand Forks later that day for the finance and council meetings.

Moved by Babinchak and Bakken that we adopt the resolution authorizing the issuance of $4,530,000 Refunding Improvement Bonds, Series 1996B, and offer for sale with sale date set for September 16, 1996. Motion carried.

2. Matter of copier bids.
Mr. Schmisek reported that this was main copier for City Hall
and the bids meeting specs. came in over budget, and he is asking committee to reject the bids, that they will re-look at specs. and rebid. Moved by Bakken and Hamerlik to reject the bids and authorize the finance department to rebid. Motion carried.

3. Matter of health benefits for grant-funded positions.
Dan Gordon, Human Resources, stated that the Civil Service Code requires that permanent part-time positions work 1040 hours to be eligible for health benefits at a pro-rated basis; that at the end of each year there is an auditing process to determine percentage for the following year. He stated they are faced with situation in how to handle grant-funded positions; that there were some inconsistencies in how health benefits provided - some departments offered health benefits right away and in other departments had to wait. He stated he would recommend that the City allow grant-funded positions to be offered health benefit right away, and this is very important recruitment tool. He stated that permanent part-time positions lower than classified positions and this helps in placing people in the positions. He stated that Urban Development has done for many years, offered health benefits right away. It was noted that the health benefits are funded with grant monies (as well as wages, other expenses). He stated that permanent part-time employees must

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July 30, 1996 - Page 2

serve 1040 hours within calendar year to be eligible on a pro-rated basis; but grant-funded positions are not included in the description with the City employees, classified or permanent part-time, and that some grants may be only for a year, some longer. He stated they are not requesting any change in current policy. It was noted that insurance for classified employees become effective on first of month following employment.

Don Shields reported that grant-funded employees who have been with the department for number of years and benefit earned on prior years; however, have new grant for one year (full time), and difficulty in hiring for one year with no health benefits.

John O'Leary, Urban Development, stated their office receives $100,000 in City funds, balance through grants and contracts; and it impacts ability to attract people to fill those positions; and urged committee to support request.

Debbie Swanson, health nurse, also spoke in support of the request.

There was some discussion by committee re. treating some employees/positions differently, making exceptions for some positions. Mr. Hamerlik stated they should be treated same, no matter where funds come from, could create problems.

Howard Swanson, city attorney, stated that grant employees are not classified positions and their employment based upon continuation of the grant, position terminates upon termination of the grant; this is policy decision.

Moved by Hamerlik and Babinchak that the request be denied.

After further discussion and upon call for the question, Members Babinchak and Hamerlik voted for the motion; and Members Bakken and Carpenter voted against the motion. The committee forwarded the matter to council with a 2-2 vote.

4. Temporary and overtime statement for June, 1996.
The committee reviewed the statement; moved by Babinchak and Hamerlik to receive and file. Motion carried. (comm.only)

5. Matter of offer to purchase City lot at 1310 8th Avenue North
by Robert E. Mutcher, Sr., Bob's Auto Diagnostic Serv.Center.
Mr. Schmisek reported his office had received offer in the amount of $9,200.00 for east half of lot 19 and all of lots 20 and 21, Block 67, Alexander & Ives' Addition, at 1310 8th Avenue North. He reported that this lot had been appraised at $17,100 but council reduced value in March of 1995 to $14,100, offer is about 65% of value, and City has been paying $1100 in special assessments on the property. He stated his recommendation is to

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refer back to staff to negotiate or authorize sale. It was also noted that the offer is contingent upon rezoning of the property from B-1 to B-3. Mr. Swanson advised that if property not contiguous to B-3 zoning, couldn't rezone as B-3; also setback requirements, right of way, etc. There was also some discussion re. use of the lot, whether building is to be constructed or what, safety concerns re. sight obstruction, etc.

Moved by Hamerlik to deny offer and ask auditor and assessor to renegotiate in terms of zoning request. Motion died for lack of a second.

The committee held the matter for 2 weeks, that the city auditor and city assessor communicate with Mr. Mutcher, also check zoning, traffic concerns, etc.

6. Budget amendment.
a) Assessing Department - $1,532.00 from cash carryover to rearrange two work stations in assessing department. Moved by Hamerlik and Babinchak to approve the budget amendment request. Motion carried.

Meeting adjourned at 5:05 p.m.

Alice Fontaine
City Clerk

Dated: 7/31/96.