Committee of the Whole

COMMITTEE OF THE WHOLE August 1, 2017 Page 1 Members Present: Barney (Mayor), Jantzer, Straight, Wolsky, Olson, Podrygula Members Absent: Sipma To the Honorable Mayor and All Aldermen: Following are the recommendations of the Committee of the Whole meeting called to order at 4:15 p.m. on August 1, 2017: 1. The City Council enter into a cost share agreement with Ward County and place $7,500 into the preliminary 2018 budget for consideration and advancement of the mapping system concept pilot program. ********** Representative Scott Louser of District 5, came forward to present to the council about a flood information mapping system. In 2016, he served as the Chairman of the National Flood Insurer and met with NFIP in D.C. to look for solutions to the expiring flood insurance program. The National Flood Insurance Program ends September 30th, 2017. They are relying on congress to act and to extend the current program in some capacity before expiration. In his role, he found information from North Carolina and presented it in two amendments in HB1020 to allow for mandatory study. The original intent of the bill was to collect LIDAR (Light Detection and Ranging) data across the state of ND, combine with already existing data and provide all data to a contractor in North Carolina to build a website for property owner’s use. The bill was reduced down to only four counties and $50,000 appropriation. When the bill left the house the senate removed the two amendments. At conference committee, Representative Roscoe Streyle, from Minot, reintroduced the concept and it was agreed to reduce the $50,000 appropriation to $30,000, cost share between the State Water Commission of $15,000 and Ward County of $15,000 to set up a pilot program for Ward County only. The County Water Commission was presented the idea in early July and tabled the item twice. Earlier today, the County Water Commission passed a form of funding their portion of the study, $7,500 from the County if the City agrees to pay $7,500. Representative Louser reviewed the website from North Carolina and the history of what it took to create. http://fris.nc.gov/fris/Home.aspx?ST=NC North Carolina spent approximately 15 years rating every structure in the state for its elevation. Mr. Louser stated, FEMA maps locations; we are looking at adding the structure to the location, so we know based on LIDAR data the base flood elevation to that structure. The website will show flood zone, type of structure, risk info, what can happen during flooding, financial vulnerability, and changes in flood insurance rates. Mayor Barney asked Mr. Louser if the data needs to be accepted by FEMA for the program. Mr. Louser stated FEMA accepts quality level 1 and 2 only, some of the LIDAR data from 2010 by the county may not meet FEMA’s requirements but some of the LIDAR data from 2015 by the City would meet the CITY OF MINOT COMMITTEE OF THE WHOLE August 1, 2017 Page 2 requirements. Upon further questioning from Mayor Barney, this would be housed by the state of North Carolina and would need to hire a contractor to input the data from Ward County. The report from this website can be used in place of individual homeowners having to hire a private contractor to survey and produce an Elevation Certificate required for homes that must have flood insurance. This would save homeowners money by not having to hire a contractor. The Committee discussed concerns that funding would not be provided by the State Water Commission Budget and how this program will benefit homeowners. Mr. Louser stated, the State of North Carolina has opened up to Alabama, Florida and Virginia, which have a form of agreement with North Carolina to use this website. Homes in North Carolina have seen approximately 80% of their properties receive a reduction in their flood insurance rates based on the information they are able to provide FEMA, opposed to only using FEMA maps. Alderman Wolsky moved the City Council enter into a cost share agreement with Ward County and place $7,500 into the preliminary 2018 budget for consideration and advancement of the mapping system concept pilot program. Seconded by Alderman Straight. Mayor Barney asked the City Engineer, who was designated as the Floodplain Administrator, if this program would help and if he still has to sign off on all Elevation Certificates. Mr. Meyer replied by saying, yes he would have to sign off on all Elevations, whether done by a hired contractor or from the website. This program would help to an extent in being able to certify the elevations, however not all areas have quality data. The tool the state is working on would cut down time in reviewing the Elevation Certificates by being able to click on a parcel and receiving the base flood elevation from a parcel on the website versus having to scale off a map. This will speed up the application review from an hour to about two minutes. The committee is conscientious of ongoing costs but need to look at how this can save time in creating the Elevation Certificates and data for calculating flood insurance rates for homeowners. Representative Louser said the pilot project hopes to see sufficient LIDAR data to help homeowners drop insurance rate. The worst case scenario from this project would be finding there is not sufficient LIDAR data, but it will show what data is still needed to finish this project. With questioning from Alderman Olson, the City Manager stated, the budget is being printed currently and this has not been included in the 2018 budget. The City Manager explained his concerns behind financing the project. If the County was envisioned originally as the sponsor of the $15,000 for the pilot project, he would like to remind the committee, every single resident in the City of Minot is also a resident of Ward County and pays Ward County taxes. Mr. Barry would like everyone to be mindful to guard against another jurisdiction, who taxes our residents, continually coming to the City to ask for additional funding. We do not have the luxury moving forward by budgeting the way we have historically. Whereupon a vote was taken on the above motion by Alderman Wolsky, seconded by Alderman Straight, and carried by the following roll call vote: ayes: Wolsky, Jantzer, Podrygula, Straight, Barney. nays: Olson. CITY OF MINOT COMMITTEE OF THE WHOLE August 1, 2017 Page 3 2. The City Council approve final payment to the North Dakota Department of Transportation (NDDOT) in the amount of $940.49 for mill and overlay South Broadway. (4180) ********** The above motion by Mayor Barney, seconded by Alderman Olson, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Straight, Wolsky. nays: none. 3. The City Council approve final payment in the amount of $49,280 to Keller Paving and Landscaping Company, Inc. for the 2016 Street Improvement District. (4164) ********** The above motion by Mayor Barney, seconded by Alderman Olson, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Straight, Wolsky. nays: none. 4. The City Council approve the final payment in the amount of $46,760.22 to Minot Paving Company for Main Street Alley Reconstruction 2nd to 3rd Avenue. (4223.2) ********** The above motion by Mayor Barney, seconded by Alderman Olson, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Straight, Wolsky. nays: none. 5. The City Council approve final payment of $51,270.91 be paid to Minot Paving Company, Inc. for Main Street Alley Reconstruction Central to 1st Avenue. (4223.1) ********** The above motion by Mayor Barney, seconded by Alderman Olson, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Straight, Wolsky. nays: none. 6. The City Council pass an ordinance on first reading to amend the 2017 annual budget to decrease expenditures and revenues in the fire capital purchase fund for the northwest fire station design and the station 3 remodel design. ********** The above motion by Mayor Barney, seconded by Alderman Olson, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Straight, Wolsky. nays: none. 7. The City Council pass an ordinance on first reading to amend the 2017 annual budget to increase the Information Technology capital expenditures and revenues and decrease the Police Department software agreement expenditures and revenues to purchase New World Systems TraCS Accident Interface Software. (IT0011) ********** The above motion by Mayor Barney, seconded by Alderman Olson, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Straight, Wolsky. nays: none. CITY OF MINOT COMMITTEE OF THE WHOLE August 1, 2017 Page 4 8. The City Council approve the revised Minot Resilience Program Acquisition of Real Estate Policy and Procedures. ********** The above motion by Mayor Barney, seconded by Alderman Olson, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Straight, Wolsky. nays: none. 9. The City Council approve the pledged assets as of June 30, 2017. ********** The above motion by Mayor Barney, seconded by Alderman Olson, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Straight, Wolsky. nays: none. 10. The City Council amend the 2018 Budget schedule to change the September 11 Special City Council/Committee of the Whole meeting to September 14 and to change the September 18 Special City Council meeting to September 21. ********** The above motion by Mayor Barney, seconded by Alderman Olson, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Straight, Wolsky. nays: none. 11. The City Council approve the use of Airport Cash Reserves to fund ongoing Airport projects as bonding will not be used and authorize the Mayor to sign any applicable documentation. (AIR049, AIR064, AIR060, AIR063) ********** The above motion by Mayor Barney, seconded by Alderman Olson, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Straight, Wolsky. nays: none. 12. The City Council approve Pay Estimate 3 (Final) to Dig It Up Backhoe for work completed on the Terminal Demolition project; and approve Pay Estimate 3 (Final) to Main Electric Construction for work completed on the Terminal Demolition project; and approve Final Review and Acceptance from Dig It Up Backhoe for work completed on the Terminal Demolition project; and approve Final Review and Acceptance from Main Electric Construction for work completed on the Terminal Demolition project; and authorize the Airport Director to sign applicable Final Payment and Final Review and Acceptance documentation. (AIR051) ********** The above motion by Mayor Barney, seconded by Alderman Olson, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Straight, Wolsky. nays: none. 13. The City Council approve the amended Ground Transportation Polices at the Minot International Airport. CITY OF MINOT COMMITTEE OF THE WHOLE August 1, 2017 Page 5 ********** The above motion by Mayor Barney, seconded by Alderman Olson, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Straight, Wolsky. nays: none. 14. The City Council approve the Articulation Agreement between the City of Minot Departments of Fire and Airport and authorize the Mayor to sign the agreement. ********** The above motion by Mayor Barney, seconded by Alderman Olson, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Straight, Wolsky. nays: none. 15. The City Council approve Amendment #3 to CDM Smith NDR Project Delivery Contract and authorize the Mayor to sign Amendment #3. ********** The above motion by Alderman Wolsky, seconded by Alderman Straight. Upon questioning from Alderman Wolsky, Mr. Zakian, National Disaster Resilience Grant Program Manager, came forward to note CDM have fully agreed with these additional terms. He will have greater oversight on a month-to-month bases in terms of how they deploy their staff, activities we are undertaking and accepted he will have more of a leadership role in all aspects of this funding. Whereupon a vote was taken on the above motion by Alderman Wolsky, seconded by Alderman Straight and carried by the following roll call vote: ayes: Wolsky, Jantzer, Olson, Podrygula, Straight, Barney. nays: none. 16. The City Council approve the NDR Subrecipient Agreement between the City of Minot and the International Economic Development Council and authorize the Mayor to sign the agreement. ********** The above motion by Mayor Barney, seconded by Alderman Olson. Mayor Barney questioned Mr. Zakian on if the City would be able to use current MADC in conjunction with IEDC. Mr. Zakian has met with a representative from IEDC and they have discussed having an active role for all the different economic development and businesses such as the Chamber, Downtown Business Professional Association and Area Development Corporation to have key roles. He envisions using local organizations. In the agreement, it states they will not reinvent the wheel but use what other organizations have done and work off those. Upon questioning from Alderman Wolsky, Mr. Zakian explained the expectations of time and having a draft to consider normally takes twelve months. Mr. Zakian however has seen it done in eight to nine months and hopes to have it done in nine months. Alderman Straight asked if there was more money allocated or awarded for fostering economic resiliency; Mr. Zakian said the original plan for this type of study was budgeted just under $300,000. We will CITY OF MINOT COMMITTEE OF THE WHOLE August 1, 2017 Page 6 accomplish what was envisioned for $90,000, which will leave $200,000 available to use the start of deploying follow up action. Whereupon a vote was taken on the above motion by Mayor Barney, seconded by Alderman Olson and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Straight, Wolsky. nays: none. 17. The City Council continue doing business in the format that was dictated by the Ad Hoc Committee but at the same time have the City Staff investigate the possibility and logistics of alternative styles/formats. Mayor Barney said, he thinks the current structure could use another look. There is a redundancy to have the Committee of the Whole to meet a week before the City Council meeting to hear all the items and yet to meet the next week and hear all the items again. Mayor Barney would like to offer the idea to have a spilt of the council, three representatives on each of the standing committees and make up the difference with citizens. Alderman Wolsky said he has concerns in making large changes right away and would like to give the current structure some time. Alderman Straight would like to see how things unfold along the current lines of structure. If the Council were to ask citizens to be on a committee, he would like to know more about the citizens before adding them to a committee. Mayor Barney would like everyone to think about the structure and will like to re-address on a later date. The City Attorney reminded, the Ad Hoc Committee and City Council passed a resolution when the new Council was seated. The current make up will continue through July and August, at which time the new City Council shall determine its committee format and schedule by resolution. She said, staff will need a direction on how to amend the resolution on how to proceed. Mayor Barney moved the City Council continue doing business in the format that was dictated by the Ad Hoc Committee but at the same time have the City Staff investigate the possibility and logistics of alternative styles/formats. Seconded by Alderman Olson. The Mayor suggested the committee structure continue until after the budget is approved. He suggested waiting until October/November before discussing the issue again. Alderman Olson agreed, she would like to see the council members split on the committees and having citizens involved. Whereupon a vote was taken on the above motion by Mayor Barney, seconded by Alderman Olson, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Straight, Wolsky. nays: none. 18. The City Council maintain the current schedule of Committee of the Whole meetings through November which will allow further discussion on Committee structure. Upon questioning from Alderman Podrygula, the City Manager explained, the reason for creating the current schedule is a matter of process about the way the city pays bills, approves bids and other business. CITY OF MINOT COMMITTEE OF THE WHOLE August 1, 2017 Page 7 The process requires all items to go through the committee first, then through the City council. If the committee was to be held two weeks earlier, there is a large gap before some items can be heard and passed through the next committee to go through City Council. The current scheduling helps everything flow and not stall approvals. Alderman Wolsky asked in the current manner of having the meetings on Tuesday and Wednesday works best for City staff or is it too difficult to prepare City Council agendas in a timely manner. The City Manager said it is just the matter of preference. The city staff is conditioned to the way the scheduling is currently being done. There will always be last minute items no matter how the meetings are set up. Alderman Straight moved the City Council maintain the current schedule of Committee of the Whole meetings through November which will allow further discussion on Committee structure. Motion seconded by Alderman Olson and carried by the following roll call vote: ayes: Straight, Jantzer, Olson, Podrygula, Wolsky, Barney. nays: none. 19. Airport Activities, Reports and Project Updates The Airport Director came forward to present three items; June’s numbers, a rental car company issue, and to present the finance side of the airport. The first item, the revenue for enplaned passengers shows June is the biggest month so far this year. The monthly load factor has stayed constant. The rental car activity is up from May and is right on track with June 2016. For Gross Sales, the 2017 MAG (minimal annual guarantee) has increased. June is a little low compared to May and below the 2017 MAG. This indicates the business will pay the MAG amount and not the amount below the MAG line. Parking revenue showed the airport had a good month. The second item is an issue regarding an off-airport car rental agency operating without authority at MOT. The situation came from a complaint received from Car Rental Concessionaire at MOT stating that an off-airport company was leaving cars in the Airport Short Term Parking lot for customer pick-up. Keys and contract are left in the vehicle. Follow up by airport staff confirmed this. The Airport Director called the business proprietor to explain Airport policy and ask the company to cease this practice. The Airport Director also gave options for the proprietor to become compliant with the Code. The proprietor was not receptive and had subsequent meetings with the Mayor and the City Manager. The Airport Director has had several subsequent and unproductive phone calls as well. The proprietor maintains that they should be allowed to continue for several reasons including: the parking lot is public and not part of the Airport; there is no business being conducted since there is no paperwork being completed on-site; paying the parking fee should be enough for the Airport; this has been their practice for many years without issue from the Airport; they are a small business and not hurting the other car rental companies. The Airport Director continued to explain why this is unacceptable. The Airport requires either a license, or a Concession Agreement before a person may operate a business on the property. Either providing a rental vehicle for pick-up in the Short-Term Parking Area or providing transportation to an off-site rental business constitutes operating a business at the Airport. The Airport Director stated MMD is not just CITY OF MINOT COMMITTEE OF THE WHOLE August 1, 2017 Page 8 working under corporate contracts but offers the airport service to anyone and the company advertises on its website that it offers free customer pick up and/or drop off to airports and free airport shuttle. Current car rental companies bid for the right to operate at the Airport. They pay minimum annual guarantees to the City ranging from approximately $168K to $288K. They rightly expect that the Airport will not allow competition from unlicensed vendors. In addition, current concessionaires collect a $3.50 per rental charge on behalf of the Airport that pays for infrastructure improvements associated with car rental services, as well as parking space leases and office space leases. Rental Car Concession Agreements allow the Airport to guarantee a standard level of service to incoming passengers as well as the City. This includes safe, clean, late model vehicles free from known defects; adequate liability insurance to protect the City; and are subject to audit by the City. This is standard industry practice. The Airport Director provided options to the proprietor, including, the Car Rental Company could purchase a license to pick up customers at the Airport and transport them off-site to their business location. Taxi service, hotel shuttles, and corporations using corporate vehicles to pick up employees currently use this type of license. The cost for this license is $600 per year. The Car Rental Company is invited to participate in the coming bid for providing rental car services at Minot International. RFP is scheduled to go out in mid-August of 2017. He referenced applicable code and federal references: Minot Code of Ordinances Section 4-16(e); Minot International Airport Rules for Operating Ground Transportation Services; Federal Aviation Compliance Manual (17.5) (self-sustainability); Federal Aviation Association Grant Assurances Document (22, 23, 24, 25,26); Current Rental Car Concession Agreements. Under the Grant Assurances when we accept the money are expected to do business a certain way. Mr. Feltner said, he hopes the company in question will voluntarily stop using the Airport as a place of business, or comply with the two options presented to them. In the event that the company refuses to comply, the City Attorney, in consultation with the City Manager and the Airport Director has drafted a “Cease and Desist” letter which outlines penalties for continued non-compliance. Charles Herrmann appeared on behalf of MMD Rental (owner Mary Dittus). She has contracts with Enbridge and Hess to leave cars, but all paperwork and payments are done at her place of business. He claims she has not been provided documentation of the ordinances and policies that were mentioned. He said he was given a 600-page document but not told what page/section to look at. He stated he thinks she should be given the exact codes. He suggested other local businesses are operating in the same manner and are not being acknowledged. The City Manager stated, he has sent copies or the policies multiple times by himself, the Mayor and Airport Director. Mr. Herrmann asked the City to provide a copy of the specific rules and a proposal for a licensing fee in order for her to do comply. Mr. Herrmann asked for a written letter of the City Manager’s and the City’s Opinion. The Airport Director then discussed how the financials of the Airport and how it is able to be self- sustaining. Airports must maintain a fee and rental structure that makes the airport as financially self- CITY OF MINOT COMMITTEE OF THE WHOLE August 1, 2017 Page 9 sustaining as possible under the particular circumstances at that airport. The requirement recognizes that individual airports will differ in their ability to be fully self-sustaining, given differences in conditions at each airport. The purpose of the self-sustaining rule is to maintain the utility of the federal investment in the airport and do not require any assistance from local government. For capital projects FAA pays 90%, State pays 5% and Local Government pays 5%. For 2018, $675K tax levy is needed to cover revenue shortfall, pending 2018 budget process. The Minot Airport will become more self-sustaining with a robust and growing local economy. Air Service Development to bring in more airlines, bigger planes, and increased frequency translates into Landing Fees, Terminal Rent, PFC’s. Also selecting smart concessions agreements such as pay parking, rental cares, food/beverage and retail. Lastly, to help is increased focus on General Aviation. 20. The City Council approve the settlement agreement, release, and covenant not to sue between the City of Minot and BK Properties. ********** The above motion by Alderman Straight, seconded by Alderman Olson. Alderman Straight asked for clarification what the dispute was about. The Finance Director came forward to explain the building was a triplex and was established with a utility rate to accommodate these types of buildings. When this account was set, the rate was set up but was put in three times. As a result, they were charged for nine units instead of three units. When the building exchanged hands, the rate was questioned. The finance department went back six years to calculate the agreement for refund. Whereupon a vote was taken on the above motion by Alderman Straight, seconded by Alderman Olson and carried by the following roll call vote: ayes: Straight, Jantzer, Olson, Podrygula, Straight, Wolsky. nays: none. The City Manager reminded those in attendance, it is National Night Out this evening at 5:30pm at the Minot High School Magic City Campus and encouraged everyone to attend. There being no further business, the meeting was adjourned at 5:57 pm. Respectfully Submitted, Kelly Matalka, City Clerk CITY OF MINOT