City of Grand Forks, North Dakota

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	MINUTES/FINANCE COMMITTEE Tuesday, October 14, 1997 - 3:45 p.m. Members present: Carpenter, Babinchak, Bakken, Hamerlik. 1. Matter of Varmints Baseball Team loan. Mr. Schmisek reported that several weeks ago this matter had been presented to committee concerning delinquent status of the $40,000 loan, and that included in the packet was a copy of a letter that Mr. Swanson had sent in regard to that and requesting their attendance at this meeting. He reported he hasn't had any response; Mr. Swanson stated that he had talked with Jack Geller two weeks ago, but has received no formal response to his letter. Comm. noted that they hadn't heard from anyone either except what was in the paper, that owner of North Woods team was looking at paying off the loan. Committee suggested holding until next meeting and asked Mr. Schmisek to contact one of the reps. to attend that meeting. Mr. Swanson suggested putting that in writing indicating no one appeared and out of courtesy continued to next meeting. Held for two weeks. 2. Matter of operating assessments for City Center Mall. Mr. Schmisek reported that this includes whole budget for the Mall, that this had been discussed at Flood Response Comm. re. temporary heating of Mall and attempt to recover any costs; he submitted detailed breakout of the $159,772, would like some direction and could meet Monday prior to council. He stated that the budget could be reduced because of Mall being closed and that he could discuss with Dick Jackson (maintain some heat, insurance, etc.) Mr. Jackson reported that they will have to have some custodial staff to do some of the lots, maintain heating at mall and oversee so don't have malfunctions, etc., alarm system not hooked up. He also reported that they were still pay on loan for furnaces converted from NSP to First National Bank ($30-35,000). Carpenter asked that Mr. Schmisek and Mr. Jackson review and bring back. Held until 6:30 p.m. on Monday, October 20. 3. Consideration of proposals to conduct executive search for city planner. Dan Gordon, director Human Resources, reviewed summary of three proposals received, that low bid was Corporate Human Services, Bismarck, which is same firm as is conducting search for police chief. He stated that this is a good firm, that they use an assessment center process that appears to be the wave of the future in determining technical skills of these department head positions. He stated that as far as the assessment center process, which is new to Grand Forks, he thinks that this is something they can do internally in the future for some of these positions; that he thinks they have tools and resources to do in the future; and that he recommended acceptance of agreement with Corporate Human Services for the executive search for city planner. Committee discussed proposal summary and asked whether this is something that could be combined with another city in the state and MINUTES/FINANCE COMMITTEE October 14, 1997 - Page 2 perhaps cost share. Mr. Gordon stated he networks with Fargo and Bismarck and that search firm does that, sees what positions have been open, etc. There was some discussion re. cost, $10,850, which is cost for services, and expenses will not exceed $4,000. It was noted that bid for police chief came in at $8700 with expenses not exceeding $1400-1500. It was noted that if City did internally would be up to 70% less. Moved by Hamerlik and Carpenter to accept proposal of Corporate Human Services in an amount not to exceed $10,850.00, with expenses not to exceed $4,000. Motion carried; Bakken voted no. Mr. Gordon asked to be placed on the next committee agenda for review of changes in the job description for city planner, that MPO has chosen to separate their involvement with the city planner, as well as potential of combining the County planning functions, so really talking about a true city planner and job description needed to be modified. He will provide information to committee prior to the meeting. Held until Monday, October 20. 4. Consideration of ordinance re. Airport Authority membership. Howard Swanson, city attorney, reported that this matter was brought up at a meeting with County Commissioners, as to what had happened to ordinance and County resolution re. change in member-ship; that research revealed that the council had adopted the ordinance (#3311) but that the County Commission actually rejected that and the ordinance was not put into place, that the County is now receptive to the idea of changing the membership of the Airport Authority - to include one city council member and one member of the Grand Forks County Commission; that ordinance identical to one previously passed: one member of the city council appointed by the city council, and one member of the Commission appointed by the County Commission; and that the ordinance doesn't require concur-rence by either body for the other's appointment, but rather select your own member to serve. Mr. Swanson reported that this does not require approval by the Airport Authority Board, that the Authority Board is a creation of the city council and the county commission, that the Airport Authority is your child and will do as you direct, at least in theory. There was some discussion re. appointment of the member, that the council makes the appointment, that council wants to retain that authority. Mr. Swanson reviewed the ordinance; and stated that the council wanted some role on that body because of the nature of the business before the body and because of the taxing ability that entity has. Carpenter stated he's not convinced they want a voting member on that Board. MINUTES/FINANCE COMMITTEE October 14, 1997 - Page 3 Moved by Hamerlik and Babinchak to recommend approval of the ordinance for first reading, and further to include in subsection (1)(c) that member of the council be recommended by the president of the council and confirmed by the Grand Forks city council. Motion carried. 5. Consideration of ordinance allowing acceptance of gifts and grants. Mr. Swanson reported that the City has received financial donations and donations of material or items, but we have never had formal policy on who could accept those items and what happened to those items; that basic intent was to identify who had authority to accept a gift, donation or grant and how it's to be treated, that in the proposed ordinance mayor or department head may receive and would be deposited in separate fund, does require budget amendment that would involve council's action. He stated this did not need action today but that it's something they should have down as a policy as to what steps are for accepting donations, gifts, etc. and they do come even outside of disasters (fire department, traffic safety, etc.) Hamerlik stated that he didn't see in ordinance where gift, donation was to the City but to mayor or department head, and that it should so specifically state. Mr. Schmisek stated that ordinance does state that gifts, donations are for new or existing programs and would have to be City program, but that he is concerned about setting up in separate fund, fear is getting too many funds set that have to be audited and controlled. He stated that if it goes into departmental budget and council has allowed them to carry those operating costs over, they will continue to benefit from it. Mr. Schmisek stated donation, gift, etc. be deposited in City funds because could be general fund or enterprise fund, special rev. fund. Mr. Swanson stated that ordinance identical to State statutes, and trying to account for gifts, etc. that come in. Committee asked what about tangible goods, and Mr. Swanson stated that wouldn't affect budget but does affect inventory of tangible property, and each item assigned an inventory number; Mr. Schmisek stated that ordinance could read that it shall be deposited in the city funds or recorded in the assets of the City. Mr. Swanson stated they could change ordinance to read that all monetary gifts, donations, etc. shall be deposited in City funds, and committee suggested including, and shall be available for expenditure upon adoption of a budget amendment and delete to the mayor or any department head. Held for next meeting for review of a redraft. 6. Budget amendment. a) Civic Auditorium - $9,650.00 Mr. Schmisek reported this is for piece of equipment (floor scrubber) damaged in the flood, and that they are still in the process of finaling insurance claim. Committee questioned use of this equipment 3-4 years from now. Mr. Schmisek reported that when MINUTES/FINANCE COMMITTEE October 14, 1997 - Page 4 normal use changed as in case of civic auditorium, offer to other departments and transfer to other department. Moved by Hamerlik and Babinchak to approve budget amendment. Motion carried. 7. Matter of change order to Senior Citizens Center project. Mr. Schmisek reported they received request from Senior Citizens, that they suffered flood damage and lower windows being replaced but now upper windows leaking quite profusely during last rains, that they have received bids for replacement of those windows, that this would be submitted to FEMA, but if not FEMA funded, there are monies available in the Building Fund. He also noted that City responsible for major repairs to the building. Martha Torkelson, Senior Citizens, reported that in last two rains water coming in through upper section of windows (not just dripping but pouring) if not repaired, ruin lower windows and anything in the building. She stated that windows did not leak before the flood, and contractor said it could have been because of humidity, drying, etc. Mortenson's suggested running through as change order if approve (Mortenson's took video during rain). Mr. Swanson reported that bidding requirements waived if find quotes reason-able, could be addressed as change order. Moved by Bakken and Babinchak to approve change order to T.F.Powers contract for replacement of the upper windows. Motion carried. 8. Matter of estimate for Proj. 4657, sanitary sewer in Johnson's 4th Addition. Mr. Schmisek presented estimate from Molstad Excavating in the amount of $212,345.60, which is total due less 5% retainage; that was submitted and should have been included with estimates at last meeting and asked for special approval so that it could be paid, he recommended approval of this estimate. Moved by Babinchak and Bakken to approve the estimate in the amount of $212,345.60. Motion carried. Moved by Hamerlik and Babinchak to adjourn; meeting adjourned at 4:45 p.m. Alice Fontaine City Clerk Dated 10/15/97.