Committee of the Whole

COMMITTEE OF THE WHOLE October 31, 2017 Page 1 Members Present: Barney (Mayor), Jantzer, Olson, Podrygula, Sipma, Straight, Wolsky Members Absent: None 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 October 31, 2017: 1. The City Council approve final payment in the amount of $72,048.42 to be paid to Veit & Company Inc. for completing the Hillcrest Retaining Wall project. (4088.1) ********** The above motion by Alderman Wolsky, seconded by Alderman Olson, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Sipma, Straight, Wolsky. nays: none. 2. The City Council approve the final payment in the amount of $350,748.56 to be paid to John T. Jones Construction Company for 55th Street Lift Station. (3490.1) ********** The above motion by Alderman Wolsky, seconded by Alderman Olson, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Sipma, Straight, Wolsky. nays: none. 3. The City Council approve the Demolition Program Policies within the CDBG-DR/NDR activities and programs. ********** The above motion by Alderman Wolsky, seconded by Alderman Olson, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Sipma, Straight, Wolsky. nays: none. 4. The City Council award the bid for the upgrade of an old garbage truck to Northern Truck Equipment Corporation in the amount of $28,785.00. (4272) ********** The above motion by Alderman Wolsky, seconded by Alderman Olson, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Sipma, Straight, Wolsky. nays: none. 5. The City Council award the bid for the compost turner to Midwest Bio-Systems in the amount of $54,202.00. (4263) ********** The above motion by Alderman Wolsky, seconded by Alderman Olson, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Sipma, Straight, Wolsky. nays: none. CITY OF MINOT COMMITTEE OF THE WHOLE October 31, 2017 Page 2 6. The City Council award the bid to Winter Equipment Co. in the amount of $32.85 per edge for cutting edges for the upcoming winter season. (4231) ********** The above motion by Alderman Wolsky, seconded by Alderman Olson, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Sipma, Straight, Wolsky. nays: none. 7. The City Council award the bid to DR Transport in the amount of $63.40 per ton for deicing salt for the upcoming winter season. (4230) ********** The above motion by Alderman Wolsky, seconded by Alderman Olson, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Sipma, Straight, Wolsky. nays: none. 8. The City Council award the bid to Gravel Products in the amount of $13.75 per ton for washed sand for the upcoming winter season. (4229) ********** The above motion by Alderman Wolsky, seconded by Alderman Olson, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Sipma, Straight, Wolsky. nays: none. 9. The City Council approve changes to the Resilience Program Acquisition of Real Estate Policies for the use of CDBG-DR/NDR. ********** The above motion by Alderman Wolsky, seconded by Alderman Olson, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Sipma, Straight, Wolsky. nays: none. 10. The City Council approve the final payment in the amount of $35,870.00 to be paid to Post Construction Inc. for 2017 Watermain Replacement. (4251) ********** The above motion by Alderman Wolsky, seconded by Alderman Straight. Alderman Wolsky noted the approximate $150,000 difference between the low bid and the final contract amount, and questioned if the additional scope is something that comes forward for Council approval or is it decided internally by staff based on funds available. The Assistant Public Works Director, Mr. Sorenson, stated, the City designs up to the budgeted amount for water main replacement. Once bids are received and they see there are additional funds available, there is an ongoing list of potential projects that can be added. This decision is made internally. Whereupon a vote was taken on the motion by Alderman Wolsky, seconded by Alderman Straight, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Sipma, Straight, Wolsky. nays: none. 11. The City Council approve the final payment in the amount of $181,186.25 to be paid to Rice Lake Construction Group for 30th Ave Lift Stations and Forcemains. CITY OF MINOT COMMITTEE OF THE WHOLE October 31, 2017 Page 3 ********** The above motion by Alderman Wolsky, seconded by Alderman Sipma. Upon questioning from Alderman Wolsky, Mr. Sorenson conveyed the North Hill Sanitary Sewer System lift stations are complete and there is one small stretch of gravity sewer from Broadway to 13th Street NE left to finish for next year. In order to save funds for budgeting, the North Hill project was spilt into two years. This year was phase one, next year is phase two, and then the project will be complete. Some segments are currently operational. Whereupon a vote was taken on the motion by Alderman Wolsky, seconded by Alderman Sipma, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Sipma, Straight, Wolsky. nays: none.. 12. The City Council amend the 2017 contract for demolitions to increase contract with Berger Enterprises, by $500,000 and extend the contract time 60 days. ********** The above motion by Alderman Olson, seconded by Alderman Straight. Alderman Wolsky confirmed, the funding for this contract came from the NDR Program. Alderman Straight questioned staff to determine the status of receiving a detailed update on demolitions including a side-by-side comparison of the most dangerous nuisance properties compared to the second list of sites that are not immediate need of demolition. In addition, a list of pre-flood tax values of those homes compared to what the City is losing. The City Engineer said he would have it the following day and was putting the final changes on it. Whereupon a vote was taken on the motion by Alderman Olson, seconded by Alderman Straight, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Sipma, Straight, Wolsky. nays: none. 13. The City Council approve the settlement agreement, release, and covenant not to sue between the City of Minot and Wholesale Supply. ********** The above motion by Alderman Podrygula, seconded by Alderman Sipma. Upon questioning from Alderman Podrygula, the City Treasurer indicated the one-time refund of $13,171.50 is a result of a water utility bill with Wholesale Supply. The storm sewer fees for commercial properties are based on square footage. The company owned a number of parcels in the area but in 2013, they sold off a parcel and it was not changed in the City’s billing system. Wholesale Supply asked the City to review those charges and the City found they were billing them in error since 2013. Alderman Wolsky inquired if there are any other situations like this being reviewed. The City Treasurer replied by saying, staff is currently reviewing particular commercial properties that are on the outskirts of the City. In some cases, during the high increase of accounts in 2012, staff did not have the information they have now regarding the number of parcels a business may have and total square footage. Staff is in CITY OF MINOT COMMITTEE OF THE WHOLE October 31, 2017 Page 4 the process of reviewing those commercial properties in question, and they have found some that have already been fixed. Whereupon a vote was taken on the motion by Alderman Podrygula, seconded by Alderman Sipma, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Sipma, Straight, Wolsky. nays: none. 14. The City Council approve the Airport Lease, T-Hangar between the City of Minot and David Roise for T-Hangar No. 2 for $75.00 per month and authorize the Mayor to sign the agreement. ********** The above motion by Alderman Podrygula, seconded by Alderman Olson. Alderman Wolsky had a few questions on the status of T-Hangers in the master plan. He would like to know the plans for the hangers and with raising the parking ramp fees for private aircraft, the new fees are significantly more than renting a hanger. The Airport Director stated, the T-hangers were constructed around the 1950’s and are in a dilapidated condition. The City owns these hangers and rents them out for $75.00 a month. The master planning process is one were staff sets aside space and makes plans, and that area has been set aside for hangers of some sort. Whether they will be privately developed or owned by the City is undetermined. The master plan is still in the planning process, with public meetings set up next month for public input. Mr. Feltner said he believes the T-hangers are fairly priced at $75.00 per month considering the condition they are in. Some of the operations technicians have to help open the doors because the foundation moves causing them to not open. Some of the tenants have done their own improvements to the floors. The City has not done much to maintain them. The Airport Director then explained the recent change in fees. The current ramp parking fee is about $0.80/day and will be raised to $5.00/day. It is a hefty increase because the airport has made an effort in cost recovery by comparing what it costs to maintain the Airport how to fairly assess those who use the property. Five dollars a day is less than the cost to park your car in long-term parking. Mr. Feltner said, he feels it is a reasonable increase to help with costs. Wherever the Airport does not recover costs to maintain, the cost falls upon taxpayers. Alderman Podrygula requested there be a discussion on when and how fees are set in order to avoid future sticker shock. It appears fees are set and left for years until it is realized the City is losing money, and then fees are adjusted substantially instead of a gradual change. Alderman Straight requested Mr. Feltner find out what the City pays for insurance for the T-Hangers. Whereupon a vote was taken on the motion by Alderman Podrygula, seconded by Alderman Olson, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Sipma, Straight, Wolsky. nays: none. 15. The City Council approve the four bids received for rental car management and operation, approve the rental car management and operation lease agreements, and authorize the Mayor to sign the agreements. CITY OF MINOT COMMITTEE OF THE WHOLE October 31, 2017 Page 5 ********** The above motion by Alderman Wolsky, seconded by Alderman Straight. Upon questioning from Alderman Wolsky, Mr. Feltner confirmed, the new term for the rental car agreements would be a five-year contract, just as it was previously. Mr. Feltner explained the minimum annual guarantee by saying, it might not be the same number budgeted each year. There is a provision in the contract that in future years the minimal annual guarantee will be no less than 85% of the previous year’s gross revenue. Depending on how they perform in 2018 will determine the 2019 MAG, but in no case will it be less than the 2018 MAG. The MAG will not go down for the five-year term but it might go up. Alderman Wolsky asked Mr. Feltner about the $350,000 difference between what was budgeted for next year and what the Airport is projecting. Mr. Feltner said, personally he does not see the business declining to what was projected. The Airport has increased from a 10% concession fee to 11%. He also predicted a 30% decline while the companies predicted a 50% decline. He said he is making it a priority to identify where any gaps in revenue will come from. Upon further questioning, Mr. Feltner stated that Lyft is now available in Minot. It is the first Transportation Network Company (TNC) that has come to the city and the Airport. He said he is not sure it will affect rental car revenue but there is some risk it could affect parking revenue. Mr. Feltner commented that car rental rates are much like airline tickets. They are based on competition, which helps keep fees down. As there is more competition, things will heat up causing rates to lower but it also depends on the availability of cars. Whereupon a vote was taken on the motion by Alderman Wolsky, seconded by Alderman Straight, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Sipma, Straight, Wolsky. nays: none. 16. The City Council approve the professional consultation services contract with Trillion Aviation for FBO lease negotiations, approve the allocation of funds as outlined in the Impact section, and authorize the Airport Director to sign the contract. ********** The above motion by Alderman Olson, seconded by Alderman Wolsky. Upon questioning form Alderman Wolsky, the current operators of the Fixed Base Operator (FBO) are looking at the possibility of selling their business. In that process, the lease that is in place can be assigned to the buyer of the business with very little input from the Airport or City if it is assigned as is. The potential buyers had several areas they wanted to change and that opens up the process for the Airport to carefully look at the contract. The current operator cannot assign the lease if there are going to be substantial changes made. This gives the Airport a great opportunity to look at all aspects of the current lease, not to renegotiate but to restate some of the facts that are in the contract and make sure the City is okay with the terms of that lease and clears up any ambiguities for the potential buyer of this business as well. CITY OF MINOT COMMITTEE OF THE WHOLE October 31, 2017 Page 6 Whereupon a vote was taken on the motion by Alderman Olson, seconded by Alderman Wolsky, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Sipma, Straight, Wolsky. nays: none. 17. The City Council award the bid to the following suppliers for water treatment chemicals as follows (4231): a. Carbon Dioxide awarded to POET Ethanol Products for $190/ton b. Chlorine awarded to DPC Industries for $664/ton c. Quicklime awarded to DR Transport for $139/ton d. Ammonium Sulfate to Thatcher Company for $0.302/lb. ********** Alderman Straight moved to award the following bids: Carbon Dioxide awarded to POET Ethanol Products for $190/ton, Chlorine awarded to DPC Industries for $664/ton, Quicklime awarded to LHoist North America for $128/ton, Ammonium Sulfate to Thatcher Company for $0.302/lb, seconded by Alderman Wolsky. Duane Hiller, of DR Transport, is a local business in Minot and runs a ten-truck operation with ten employees, including himself. He said, he is concerned about the bid that came from Lhoist North America for Quicklime. He explained that his operation puts money back into the City of Minot whereas an out of state company does not invest in the community. He asked if his lime supplier Dan Michaels with Pete Lien and Sons could speak. Mr. Michaels, with the supplier Pete Liens and Sons, spoke in support of Mr. Hiller. He said, he feels he has irritated a large company by building a lime plant in Laramie, Wyoming that they did not want. Mr. Michaels stated that St. Genevieve has very good lime and Lhoist is a good company but for some reason they want to hurt Pete Liens by calling on their customers, and asking their largest haulers if they will help them build a terminal in Rapid City, SD. Mr. Michaels stated, when they bid the product in Minot, they helped save the City money by offering lime at $50.00 less than the last supplier offered. He mentioned, the 4th bid on Quicklime was from Mississippi Lime, which is two and half miles away from Lhoist’s plant and the price difference is $157, which is almost two and half times the price. They do mine differently, in that Mississippi Lime underground mine versus strip mining, but this still is quite a price difference. Lhoist produces about 25% of the all lime in US and when USGS publishes its average selling price for lime it is heavily weighted by Lhoist Lime at 25%. The USGS average of lime in 2016 was $120/ton. To put in to perspective, Lhoist has bid $128.00/ton delivered, back out $50-60 rail freight, $3-4 dollars car rental, $12 trans loading, and $10-15 truck freight puts them about $42-$52/ton for lime. Pete Liens and Sons is one of the lower cost lime manufactures in the U.S. With what they do with the available reject limestone, by selling in the construction market, $42-52 dollars is below their cost. He added that they have been fair with the City of Minot and saved them a lot of money, and hope that if Lhoist is awarded the bid, that the City protects itself by requiring a bond or demand they continue to supply at that cost regardless of any issues with the railroad and have to truck the lime from their plant. Mr. Hiller said he tries to help keep the prices down and that if he doesn’t truck the lime it would be in the $150-160/ton. He also made a note that he puts money back into the City and Lhoist most likely would not put money back into the community. He emphasized that he is there whenever a delivery is needed, CITY OF MINOT COMMITTEE OF THE WHOLE October 31, 2017 Page 7 even on holidays and makes sure lime is always delivered on time. He said he believes rail is not reliable, and that Lhoist would like to use Port Services which is uncertain. He said he hopes the City reconsiders the bid and keeps business locally. Mr. Sorenson, Assistant Public Works Director, stated, the City conducts the bid process to ensure competition. He explained that this is not the first time a new company underbid a competitor. Lhoist inquired about the product the previous year but did not submit a bid. Mr. Sorenson said he has spoken with Lhoist and Minot is not the furthest city to which the company delivers lime. They understand that the Water Plant needs the lime when they need it not when it is convenient. Mr. Sorensen said his recommendation is based on economics, the difference between the bids is $80,000 a year which is a lot of money when you consider the difference in quality and the bid price. The City requires about 4,500/tons of lime a year. Mayor Barney moved to amend the motion to award the Quicklime portion of the bid award to DR Transport for $139/ton. Motion seconded by Alderman Olson. Mike Elisaen, a representative of Lhoist North America, spoke about Mayor Barney’s concerns regarding the use of rail to transport the lime. Mr. Elisaen believes business and suppliers should be a part of the community. The St. Genevieve plant was built in 1995 and has noticed a decline in customers as a result of the recent economy away from coal. He explained, 40% of their annual business involves shipping by rail to a local spur then transferred by truck to location. BNSF railroad runs from their plant straight to Minot and the company saw an opportunity. They have met with Port Services and other providers but nothing is finalized. One of the benefits of using rail is that they run a fleet of 1,500 rail cars, as they send lime. Some portion of the rail fleet, 3-6 rail cars will be sitting in Minot at all times. As one gets emptied, another one is shipped. This takes some of the bumps out of what can be unpredictable rail service. They feel good about the number they bid, and they are willing to do a 3-5 year contract if pricing stability is needed. Alderman Straight asked about the cost to transport lime from the railcar to the plant by truck, to which Mr. Elisaen responded by saying, he estimates it would be in the high single digits. Upon further questioning, he said they have not had problems with the lime getting wet when transporting by rail. All rail cars are inspected and must be watertight. In regards to concerns about railcars sitting idle waiting for the ability to move, Mr. Elisaen said they have a railroad tracking to make sure it cars are moving all the time. An alarm sounds if a car sits longer than 48 hours. He then explained, their headquarters is in Texas, and they currently do not have any employees locally in North Dakota. Upon questioning by Alderman Podrygula, Mr. Sorenson said the product they need is calcium oxide. They ask all bidders for the last three month average of product quality. To compare, Lhoist bid $128/ton with a 94% calcium oxide available and DR Transport bid $139/ton with an 89% calcium oxide available. Lhoist offers the higher quality calcium oxide available. The higher the quality the lime the less wear and tear on equipment. Mr. Sorenson said, the difference in cost between the two bids is about $83,000 for the year for 4,500 tons, based on bid price and available calcium oxide in product. Upon questioning by Alderman Olson, Mr. Sorenson replied that if a shipment is late, it depends on the time of year to determine how long it takes before affecting water production because more lime is required in the summer than winter. He gave an example that in July, if the silos are full, there is about a five-day coverage before the water plant is out of lime. They try to always keep the silos at least half-full. CITY OF MINOT COMMITTEE OF THE WHOLE October 31, 2017 Page 8 The City Attorney then read from Sec. 2-137 of the City Ordinance regarding purchasing: “Sec. 2-137. - Award of purchase contracts: (a)The purchasing agent shall award the purchase contract to the lowest responsible vendor, as determined by the following factors: (1)The price quoted or bid; (2)The ability, capacity, and skill of the vendor to provide the product; (3)Whether the vendor can supply the product promptly, or within the time specified, without delay or interference; (4)The character, integrity, reputation, judgment, experience and efficiency of the vendor; (5)The quality of previous performance by the vendor; (6)The sufficiency of the financial resources and ability of the vendor to supply the product satisfactorily; (7)The quality, availability, and adaptability of the product to the particular use required; (8)The ability of the vendor to provide such future maintenance and other auxiliary services as might reasonably be required in connection with the purchase; and (9)The number and scope of the conditions made by the vendor to its bid or quotation. If the price factor (subsection (1)) is not controlling as to which vendor receives the purchase contract, the purchasing agent shall make a record as to which other factors overrode the price factor.” The Mayor said, he is concerned with the delivery of the lime by rail and is a believer in supporting local business. He encouraged Lhoist to bid again next year after ND port Services and the rail have everything sorted out. Alderman Podrygula said he is in favor of going with the low bid versus other factors; however, at this time, he would like to support the Mayor’s motion to amend and would like to go with a local business. Whereupon a vote was taken on the amendment by Mayor Barney, seconded by Alderman Olson, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Sipma, Straight, Wolsky. nays: none. Whereupon a vote was taken on the motion by Alderman Straight, seconded by Alderman Wolsky as amended, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Sipma, Straight, Wolsky. nays: none. 18. The City Council approve the Buyout Building Auction Policies and Procedures for the use of CDBG-DR/NDR funds. ********** The above motion by Alderman Olson, seconded by Alderman Wolsky. Mr. Zakian, NDR Program Director, said, the purpose of the request is to memorialize a practice that has been going on but has not been defined. Staff is trying to better define policies in order to beneficially charge costs that might have been picked up by a tax levy, to now be picked up by NDR. The more CITY OF MINOT COMMITTEE OF THE WHOLE October 31, 2017 Page 9 program income that can be generated, the more that goes back into activities. The more properties that can be acquired that are structurally sound, can be auctioned. Those proceeds can go back into NDR funds. Alderman Podrygula complimented Mr. Zakian on using a business-like approach and tightening things up in terms of the grants for the City. Whereupon a vote was taken on the motion by Alderman Olson, seconded by Alderman Wolsky, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Sipma, Straight, Wolsky. nays: none. 19. Informational – Lions Club Street Art ********** Alderman Wolsky confirmed with the City Engineer, the $100 encroachment fee is not per installation but one flat fee. 20. Update on status of CDBG - NDR Required leverage ********** Alderman Wolsky quoted from the memo “HUD did not receive a request from the city in 2016 to reduce the leverage amount.” Alderman Wolsky stated, the original offer was $470 million in leverage or roughly $337 million from the City, but when given the opportunity to re-negotiate, he asked if there was reason the City did not do that. Mr. Zakian responded by saying, the City’s original proposal was approximately $191 million and they were matching that to the tune of $469 million as the leverage. None of the thirteen grant recipients received the full amount they asked for; the amounts were all significantly reduced. The City of Minot’s was reduced to about $74 million. The rule stated at the time that each grantee had the opportunity if they chose, to negotiate with HUD to reduce the leveraged amount. He said he cannot speak for others, but a decision was made not to negotiate the amount. The grant agreement executed last year for $74 million maintained the leverage amount for approximately $469 million of which $337 million was the City’s commitment. In response to concerns from Alderman Wolsky, Mr. Zakian stated, he has given HUD two proposals and he is optimistic one will be granted. The $337 million included in the proposal was an estimate at the time and was pledged for 30 years. The grant agreement signed in 2016 did not spell out that the amount is for 30 years. HUD should recognize that the City has been transparent in their proposal and that flood protection will take a considerable amount of time. He also proposed a reduction in the leveraged amount to $205 million based on the amount originally requested compared to the awarded amount. His impression, after speaking with HUD, is that one of the two cases will be granted and the City will be in good shape. He further clarified, whatever dollar amount has been committed, can be replaced and he is comfortable there will be no issues reaching the amount. 21. Informational – Outcome of HUD Compliance Monitoring 22. Informational – CDBG-DR/CDBG/NDR Acquisition program funding update CITY OF MINOT COMMITTEE OF THE WHOLE October 31, 2017 Page 10 23. Gathering Place Site Options and Site Selection Criteria Presentation The Planning Director presented information on the gathering place site options and site selections. He said, he would like to present this criteria and information to the council in order to receive feedback on how to proceed next. Currently no final gathering space sites have been selected but there are three sites which staff believes best fit the criteria. The site criteria starts with two core areas, the size must be at least two acres, and the costs associated with relocation of tenants, site acquisition, demolition, environmental cleanup, site preparation, design, and construction costs must come in under $6 million. They also looked at visibility, connectivity, accessibility, and centrality, among other features. The site must have owners who are willing to sell to the city as this is not an eminent domain project. The site must be able to be developed by September 30, 2022 or in less than five years. The site may also need approval from the State Historic Preservation Office if historic buildings are involved. Mr. Davis clarified the study area and explained the forty block by block study that was conducted. They reduced the forty blocks down to nine areas by looking at potential costs, then analyzed the size of the areas and reduced the options to the top three choices. The three sites selected are Site 1 which is located at the NW corner of 3rd Ave SW and Broadway, Site 2 is located at the NW corner of 1st St SE and 1st Ave SE, and Site 3 is located at the NW intersection of 3rd St SE and the Canadian Pacific Rail Line. All but one are in a historic district and the State Historic Preservation Office is willing to work with the City. Parking availability will also be an important factor to consider. Mr. Davis requested approval of the Gathering Space location criteria and if approved and it is the City Council’s will, staff will organize public meetings in the community to solicit additional input. Mr. Davis would also like to propose presentations to the Downtown Business Association and the Park Board before the end of November. The Planning Department hopes to come back to the November Committee of the Whole meeting and present the findings and give the Committee the opportunity to give direction on how to proceed. Alderman Wolsky questioned why the large site located north of the BNSF Tracks around the BNSF office was not selected as a potential site. Mr. Davis said, the area was identified as an option because of its size and location but it was outside of the study boundaries and there are concerns with connectivity issues. When dealing with this site, there are also issues with the Ann Street Bridge and current negotiations between the City and BNSF for a buyout for the floodwall. In order to keep things uncomplicated during the buyout, staff did not want introduce that location into the mix. In order to buy property for the gathering space, it would be purchased at the appraised value so owners would not be able to negotiate for a higher price. Letters have been sent to all three property owners to let them know the City is looking at their property as a potential location for a gathering space. The Mayor moved the Committee recommend the City Council pursue the public input meetings with the three pieces of property identified by Mr. Davis and move the process forward. Motion seconded by Alderman Sipma, and carried by the following roll call vote: ayes: Barney, Jantzer, Olson, Podrygula, Sipma, Straight, Wolsky. nays: none. 24. Airport Activities, Report, and updates CITY OF MINOT COMMITTEE OF THE WHOLE October 31, 2017 Page 11 ********** The Airport Director was available for questions after he submitted his monthly report to the Committee. Upon questioning from Alderman Wolsky about concessions in the Airport, Mr. Feltner stated, the minimal Annual fee (MAG) was raised this year. Compared to last year’s MAG, they would have been higher, but yes, this is another month the concessions are below the new MAG. He said he has no major concerns at this point and mentioned, he met with the concessioners who feel it is a temporary lull and October should be over the new MAG. Mr. Feltner said he will keep a close eye on it. Alderman Sipma reviewed a search he conducted for flights from Minot compared with Bismarck. He said, the prices in Bismarck are more competitive, and wondered if Delta is concerned about being more competitive in Minot. Mr. Feltner recognized, this is a continuous concern and pricing relies on competition. Bismarck has Frontier Airlines, American Airlines and provides competition in markets that Minot doesn’t have. The Airport staff keeps track of these things and provides influence where it can but the airline sets the prices. If Minot had an economy that supported the business traveler buying tickets on a short notice, not staying over the weekend and being price conscious the rates would be different. Minot is in a different market than Bismarck because of the economy. There being no further business, the meeting was adjourned at 6:13pm. Respectfully Submitted, Kelly Matalka, City Clerk CITY OF MINOT