06-06-88 Finance Comm MinutesK
FINANCE/PERSONNEL, & POLICY/INSURANCE
4:00 PM., JUNE 6, 1988
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Attending: Chairman Nystul, Committee Members Saverud and Schindler, Mayor
Kennedy, Ed Gallagher, Ken Harmer, Don Halver, Andy Hyde, Amy Robertson,
Duane Elkins, Mike Baker and Jay Billmayer.
Decide Audit Direction
Clerk/Treasurer Halver reported he had received three responses from the
audit qualifications inquiry letter. He sent out letters based on the list
of CPA Firms provided by Chairman Nystul. Nystul said he thought one more
firm might have responded.
Halver and City Accountant Robertson reccamended the City stay with the state
auditors.
Halver didn't see what benefits would be received by changing auditors.
Robertson pointed out we are in the third year of our block grants and a new
audit firm would have to became familiar with the program. She also doubted
that a private firm would do the work less expensively, unless the quality of
the work was poor. She also said she was not here for both of the years the
last audit covered and she would like the state for consistency of the
review of her work.
Councilman Nystul reccninended the three firms be solicited for proposals with
prices and the staffing they would use for the audit.
Halver felt he would have a few days work in preparing the request for
proposals and conducting the on site review the prospective bidders would be
making.
Councilman Schindler asked if we could have the state do this audit and then
change for next year, Amy said that would be fine. He then recommended that.
Councilman Saverud said he understood Amy's request but he also felt past
state audits took too long and they didn't seem to be concerned with the
costs being accrued.
Schindler moved we go with the state again this year.
Saverud asked if we could pin down the state in advance on using the local
auditor and something on the time frame they expected the audit would take.
Our impression before was they have not been concerned about cost
effectiveness, whatever they billed they would get paid.
The concerns are timeliness and cost effectiveness.
Nystul reviewed the motion, stating "to hire the state subject to
Clerk/Treasurer and City Accountant getting satisfactory assurances from them
that the audit will be timely, cost effective and the report may be out in
less than six months after completion of field work."
Saverud said the motion was to solicit, not to hire and Schindler agreed.
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FINANCE/PERSONNEL & POLICY/INSURANCE 4:00 PM., JUNE 6, 1988
Business Licenses
Mayor Kennedy and Clerk/Treasurer Halver recommended we pursue a uniform
business license.
• After discussion of the reasons we need the businesses registered, the
committee agreed to recommend to the council that we direct the Mayor and
City Attorney to draft a business license ordinance along the lines of what
was presented at the workshop.
Building Department vehicles
Building Inspector Duane Elkins reported the Department's Buick would be
needing about $2,000 of work (at least) and they recommended they be allowed
instead to take surplus budget from salaries and use it to trade in the car
for a pick-up. Since the money needs to be spent one way or the other they
prefer to get a vehicle that is more practical for the department work.
Chairman Nystul recommended the committee consider the request in conjunction
with a review of the present General Fluid Status.
Parks Department Mower
Mike Baker said he has a surplus in the Parks Salary Budget because his
position was vacant for a while. He reports he is in dire need of a new
mower and requested up to $10,000 (with trade) to purchase a multi -purpose
machine.
He cannot keep up with the growth of grass with the present machines and
their breakdowns.
The committee was concerned that the bidding laws and the $10,000 limit be
carplied with.
The committee agreed to authorize up to $10,000 for trade in and purchase so
far as the purchase corplies with bidding laws.
First Alley West Funding
Ed Gallagher reported the Tax Increment Advisory Committee has given First
Alley west Project the highest priority and they are adamant in their
support and the council honoring its previous commitments'to the project.
The committee discussed the effects of deferring the utility undergrounding
until FY 89-90 and cut $99,000 from the project cost for this upcoming fiscal
year.
Councilman Saverud recommended the amount of $549,000 be funded. (Leaving
out the $99,000 utility relocation). Schindler said he requested deferring
the recormendation to the council.
Councilman Nystul supported Councilman Saverud's recommendation.
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FIMNCE/PERSONNEL & POLICY/INSURANCE 4:00 PM., JUKE 6, 1988
Committee Minutes
Halver reported he thought the secretaries are spending too much time on
• committee minutes and the minutes are too involved and detailed. He
suggested the committees return to the old format where the chairman fills
out a report form stating the subject discussed and the action reconmended.
Councilman Saverud felt that was all right most of the time but there were
some topics discussed which needed detailed minutes.
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Halver said the meetings would continue to be recorded so the information was
available if needed.
Ken Hammer said in the Public Works Ctnmittee there were many controversial
issues and the detail was needed. He also said the detailed minutes helped
his secretary to know what is going on without having to ask the departmmt
heads.
No conclusion was reached.
Committee Assignments
Councilman Schindler said the present committee arrangement didn't seem to be
working and asked Mayor Kennedy if they could be changed.
The Mayor said other councilmembers have also talked to him and he is
considering changes. He wants to give the present arrangement a fair test.
Budget Procedures
The committee agreed to recommend the Clerk/Treasurer and Mayor crnpile the
preliminary budget with the council reviewing it and establishing priorities
and making the cut recoumendations at council workshops with department heads
in attendance.
Health Insurance
Halver said he would like to know what is going on. He has received calls
from Insurance Agents who said the council is asking for bids for Health
Insurance.
Mayor Kennedy said Don Klepper has reccrwended we look into self-insurance.
The committee concluded we should look at the possibilities but we need to
take time and make sure all factors are looked into before any changes are
made.
At this time we are not soliciting bids for a change in the present carrier
of our Health Insurance Plan.
Saverud suggested the Mayor set up a special committee to look into all this.
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