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MINUTES/FINANCE COMMITTEE
Tuesday, June 9, 1998 - 3:45 p.m.

Members present: Carpenter, Babinchak, Bakken, Hamerlik.

1. Matter of wide area network bid summary.
2. Consideration of bids for servers.
Roxanne Fiala, new MIS manager, and Kit McNamee, network administrator, were present. Ms. Fiala reported that they had changed scope of work and received very comparable bids, although one from Diversified did not satisfy bid requirements; and recommended going with Insight Technology who is the lowest bidder, liked their approach and the price. She stated that they took servers out separately when did bid proposals and because going with Insight would like to go with them for the servers. She reviewed cost estimates: network $144,000, servers of $34,000, lines of $20,000, software of $10,000 and Lotus notes, with total cost of $221,000 and would like to ask for a budget amendment in the amount of $225,000 from cash carryover for the total cost of the wide area network. There was some discussion re. reduction in Insight Technologies bid, and Mr. Schmisek reported what they would be doing is selecting Insight based on their higher price and asking if they would lower price, which they will. It was noted that they were covered on training, Ms. McNamee is a CDBG employee who went to Lotus Notes training and staff will be handling training within the city. Mr. Schmisek stated that money will come from General Fund cash carryover, as they are carrying over a significant balance this year. It was noted that estimate was $250,000. Ms. Fiala reported that Insight Tech. was only bidder that did Cat. 5 wiring running within our building and they will incorporate and take that in as a certifying part of the wide area network project they are doing. Insight Technologies is local firm on DeMers Avenue.

Hamerlik moved to accept the bid from Insight Technologies for $144,014.94 for the wide area network, and accept the bid of Insight Technologies for the mail and file servers at prices not to exceed $23,482 for the file server and $13,523 for the mail server.
Motion carried.

Moved by Babinchak and Bakken to amend the budget for $225,000 from cash carryover. Motion carried.

(It was noted that other items are service items and will be included in budget amendment to include all cabling equipment servers, Lotus Notes, etc. with September 1 deadline for wiring/ cabling work) Carpenter stated this will improve communications ability of City tremendously.

3. Matter of overtime for exempt employees (sunset clause).
Hamerlik had asked that this be placed on the agenda, that some weeks ago he inquired as to status and was led to believe that the motion had a max of $100,000 for straight time over 48 hours for exempt employees and with a statement that this be reviewed by the MINUTES/FINANCE COMMITTEE
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mayor. Since that time it appears that it wasn't included in the motion that mayor review it but she has looked it over and re-viewed. He stated he was informed that there was $52,000 spent up until couple weeks ago and one or two people had not submitted any overtime as of this date, his question is whether the sunset clause is $100,000. (Passed October 6 and September 1 was retroactive date.) Hamerlik stated his question is how long does this go on, and whether they should establish a date. Mr. Schmisek stated that motion that came out of council was approval of the program with exempt employees to be paid straight time beyond 48 hours and not to exceed $100,000 without returning to council for additional approval. He reported that the last report is up to $55,404 and couple individuals putting in time and haven't turned in; he stated that the program is there to recognize those that are working basically because of flood related items and putting sunset clause on it isn't going to put sunset clause on the work that's yet to be done, and is decision they will need to make as a committee. He stated that the mayor does review everyone of these items and pay-roll doesn't pay until she has signed off that it's flood related work item. Hamerlik stated that as start to get back to normal it seems that perhaps a sunset clause should be established. He stated that they did the work before that time and they will con-tinue to do it and were compensating them in some way. Carpenter agreed that there should be a sunset date but not sure what that date should be as there is lot of flood-related work going on this year and perhaps terminate at the end of December of this year, but may spend $100,000 prior to that.

Ken Vein, city engineer, stated he would like to have a sunset date and wished to know when work load would end as he would like to get back to life of normalcy, that in over year no work weeks of less than 60 hours, and doesn't see that changing for him and lot of staff members. He stated with workloads they have, southend development and meetings they've had and will continue to have with flood protection projects that will go on and will be long time before they return to normal, and no problems expecting to work 48 hours a week over the normal 40 as department heads and super-visors. He stated that the reason for this is what they consider excessive amount of additional straight time because it isn't com-pensated the same as other employees are getting, and they fully support this and should continue as compensation for the efforts that are going on and are really vital to the part of our recovery. He questioned if the end of the year would be time when that comes, and would hope so; but to try to define that date would be diffi-cult to give a recommendation.

Committee suggested to bring back in six months for review; Hamerlik stated that it doesn't mean that if put sunset clause on it, that the flood work is done, that some departments are hit harder than others.

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Mr. Schmisek stated that they can't exceed $100,000 without returning to council and would anticipate that as they start to reach the $80-90,000 would have to bring back for consideration, doesn't know that a sunset clause will change anything; and that intention of this was to recognize the extra workload caused for those who are working on specific flood-related items, and quite frankly the normal work doesn't go away.

Mr. Schmisek stated they would like hours turned in monthly to get a better handle on this and will sit down with those (only two) that he's aware of that haven't. Committee stated it's hard to budget if they don't turn hours in or if not going to turn in. Mr. Schmisek also stated that monies come from CDBG administrative funds. It was noted that FEMA funds couldn't be used. Hamerlik stated another concern that if a couple people haven't turned in pay slips, could be in some difficulty even with sunset clause of $100,000 if continue and should give time element for turning in; Mr. Schmisek stated he wouldn't disagree with that, with two-week time line for those to get caught up. Carpenter asked if turned in at end of the month and exceeded $100,000 would council be required to pay that or if someone wouldn't get paid. Mr. Schmisek stated they should get handle on that because could be in the $75-80,000 range if those individuals would turn in. It was noted that there are 10 employees collecting these funds. Dan Gordon, director of Human Resources, stated that on behalf of his associates, could put a sunset clause on this tomorrow, work would still be done, but wanted to let them know that September, October, when some of con-tracted people are let go because job only allocated for a year's period of time, can see after that the department head's time and involvement in flood related items but back to day to day nor-malcies of business, will actually increase, so please keep that in mind, that he will be losing two people and problems don't reduce but be more day to day involvement.

Bakken moved to require employees to turn hours in by the 15th of the following month and any current delinquencies need to be turned in within two weeks after council approval, and to bring back no later than six months. Babinchak seconded the motion.

Dan Gordon stated that directives help in requesting that hours be submitted in a timely manner but an employee still has up to five years to go back for past wages, which is a law, that directives will help but cannot stop an employee from waiting until a later time to request those wages. Committee stated that this is extra-ordinary beyond and if cut off, then have right to put max. date for that extra work; that City doesn't have to pay employees for over 48 hours.

Motion carried.

4. Information on previous items.
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Hamerlik asked for information re. auction, both building and pound, and also bicycles. Mr. Schmisek reported that there was some interest expressed in Valley Motor Co. building and he checked with Capt. MacCarthy and that they are putting together some estimates on costs to replace the impound lot, and their intention was to put in with CIP sheets for review by the CIP committee and council; that they need land of 97,000 sq.ft. for building for bikes, specifically, with cost around $24,000, $14,300 fencing and no pricing for the land. Mr. Schmisek stated they didn't have price for the Valley Motor Co. building and that's being researched in public safety to see what trade-offs are.

Mr. Schmisek stated he talked to Lt. Johnson re. sale of bicycles and they did reserve some of the bikes and mountain bikes based on way the motion approved by council (..that council allow the Fraternal Order of Police to take up to 50 bicycles except mountain bikes in good condition.) and they did take mountain bikes which needed repair work, etc. to make useable by kids they would give to. Hamerlik stated he would differ that intention was no mountain bikes, but other bikes up to 50, but that's by-gone. He stated that unheated pole barn can be built for $5-6,000, and that they do need security. It was noted that $14-16,000 income from each auc-tion. Committee asked if there were any garages left for use - pole barns quite cheap. Comm. said to ask Public Safety to proceed as they want t sell building. Mr. O'Leary stated he wasn't sure how many double or triple stall garages they have but getting ready for another round of sales, and could ask staff to look at what's there. Mr. Vein stated they had looked at impound lots also but police department wants in fairly visible area for security reasons. Hamerlik stated they could reduce size if have two auc-tions each year (spring and fall). It was noted this will come to CIP and Safety soon and no action for now. Information only.

Moved by Hamerlik and Bakken to adjourn; meeting adjourned at 4:25 p.m.

Alice Fontaine
City Clerk

Dated: 6/09/98