The finance committee voted to forward an ordinance to the full council that would amend the city’s memorandum of understanding (MOU) with the Department of Social Services (DSS) to include the recently acquired 419 North Cameron in the square‑footage computation used for state reimbursement.

City staff said the MOU's computation uses square footage and debt service to calculate annual state reimbursement and that adding 419 North Cameron changes the basis of the calculation. Under the amendment as presented, the combined reimbursement for the two buildings would total about $173,005 annually; staff said those payments cover roughly 80% of the city’s debt service on the buildings when combined with rent paid by the health department and other occupants.

Because the MOU and related lease arrangement are long‑term and effectively constitute a lease of city property, staff said the City must comply with the public franchise act: the proposed ordinance will be advertised, and any responsive bids would be routed to the city manager and then to the state for ratification if the council approves.

Committee members asked for clarification about which renovation or modification costs would be reimbursed; staff said some modification costs will be split and that the state reimburses certain categories of work but not others. Staff also said the MOU term was retained at 20 years originally but, with the change in property accounting, the amendment is structured effectively as a 17‑year term so the debt service can be reconciled at a future date.

The committee voted to forward the item with a recommendation for approval and instructed staff to advertise the ordinance and schedule the required public hearing for the May 27 council meeting.