Finance & Improvements Committee

FINANCE AND IMPROVEMENTS COMMITTEE April 29, 2013 Page 1 Members Present: Frantsvog, Frey, Jantzer, B. Miller, Moen, Olson, Seymour. Members Absent: None. Others Present: City Manager, City Clerk, City Attorney, Assistant City Attorney, Finance Director, Public Works Director, Assistant Public Works Director, City Engineer, Assistant City Engineer, Police Chief, Assistant Fire Chief, City Assessor, Assistant City Assessor, Public Information Officer, Traffic Engineer, City Planner, Comptroller, Treasurer, Alderman Hatlelid, Jim Olson and Jill Schramm. To the Honorable Mayor and All Aldermen: Following are the recommendations of the Finance and Improvements Committee meeting called to order at 4:15 p.m. on April 29, 2013: 1. That the City Council authorize the Finance Director to issue a request for proposals for 401a and 457b Defined Contribution Retirement Systems. ********** The above motion by Alderman B. Miller, seconded by Alderman Olson, and carried unanimously. 2. That the City Council reject the bid for the Site Specific Rehabilitation program. ********** The above motion by Alderman B. Miller, seconded by Alderman Olson, and carried unanimously. 3. That the City Council declare the bid by Knife River Corporation for Paving District No. 483 in the amount of $311,877.80 to be the lowest and best bid received; and further, authorize the Mayor to sign the contract on the City’s behalf. ********** The above motion by Alderman B. Miller, seconded by Alderman Olson, and carried unanimously. 4. That the City Council review the bid recommendation for the CDBG-DR Grant Administration Services and Project Delivery Services without recommendation by the Committee. ********** The above motion by Alderman B. Miller, seconded by Alderman Olson, and carried unanimously. FINANCE AND IMPROVEMENTS COMMITTEE April 29, 2013 Page 2 5. That the City Council approve the Cost Participation and Maintenance agreement between the City of Minot and the North Dakota Department of Transportation transferring the ownership and maintenance of the US Highway 83 frontage road between 36th Avenue NE and Main Street North from the North Dakota Department of Transportation to the City of Minot; and further, authorize the Mayor to sign the agreement on the City’s behalf. ********** The above motion by Alderman B. Miller, seconded by Alderman Olson, and carried unanimously. 6. That the City Council approve the plans and specifications for Phase 1B of the Southwest Minot Sewer Improvements and authorize the City Engineer to call for bids. ********** The above motion by Alderman B. Miller, seconded by Alderman Olson and carried unanimously. 7. That the City Council approve the engineering services agreement with Houston Engineering for Paving District No. 473 in the amount of $156,000; and further, authorize the Mayor to sign the contract on the City’s behalf. ********** The above motion by Alderman B. Miller, seconded by Alderman Olson, and carried unanimously. 8. That the City Council adopt a resolution declaring protests for Paving District No. 478 insufficient; further, authorize the City Engineer to negotiate a scope and fee contract for engineering services with Kadrmas, Lee, and Jackson for the project; and further, authorize the Mayor to sign the contract on the City’s behalf. ********** The above motion by Alderman B. Miller, seconded by Alderman Olson, and carried unanimously. 9. That the City Council approve the plans and specifications for Paving District No. 478 and authorize the City Engineer to call for bids. ********** The above motion by Alderman B. Miller, seconded by Alderman Olson, and carried unanimously. 10. That the City Council approve the utility relocation agreement with Verendrye Electric to relocate an overhead power line associated with Paving District No. 478. ********** The above motion by Alderman B. Miller, seconded by Alderman Olson, and carried unanimously. 11. That the City Council adopt resolutions creating Paving District No. 481, direct preparation of the engineer’s report, approve the engineer’s report, direct preparation of plans and specifications, waive the resolution of necessity; and further, approve Ackerman-Estvold Engineering to provide the necessary engineering services and authorize the Mayor to sign the agreement on the City’s behalf FINANCE AND IMPROVEMENTS COMMITTEE April 29, 2013 Page 3 ********** The above motion by Alderman B. Miller, seconded by Alderman Olson, and carried unanimously. 12. That the City Council adopt resolutions creating Paving District No. 484, direct preparation of the engineer’s report, approve the engineer’s report, direct preparation of plans and specifications, waive the resolution of necessity; further, accept the project deposit in the amount of $55,415.21; and further, approve the engineering services agreement with Ackerman-Estvold Engineering and authorize the Mayor to sign the agreement on the City’s behalf. ********** The above motion by Alderman B. Miller, seconded by Alderman Olson, and carried unanimously. 13. That the City Council approve the plans and specifications for the Downtown Parking Structures and authorize the City Engineer to call for bids. ********** The above motion by Alderman B. Miller, seconded by Alderman Olson, and carried unanimously. 14. That the City Council place and pass the following ordinances on second reading: a. Ordinance No. 4626 – Annexing Bolton Heights 3rd Addition, Lots 1 & 2. b. Ordinance No. 4710 – Annexing Section 16-155-82, Outlot 20. c. Ordinance No. 4714 – Amending 2013 budget in the amount of $530,190 for the Sanitation Truck/Traffic Department Building. ********** The above motion by Alderman B. Miller, seconded by Alderman Olson, and carried unanimously. 15. That the City Council declare the bids by Loren Vannett for the purchase and relocation of homes acquired by the City for future flood protection (located at 409, 413, 417, 421, 425,429, 433, 437, and 441 15th Street SE) in the total amount of $26,154, to be the highest and best bids; and further, authorize the Finance Director to complete the sale of the homes. ********** The above motion by Alderman Frantsvog, seconded by Alderman Seymour, and carried unanimously. 16. That the City Council declare the bid by Tom’s Backhoe Service for Storm Sewer District No. 118 in the amount of $860,866.50 to be the lowest and best bid; and further, authorize the Mayor to sign the contract on the City’s behalf. ********** The above motion by Alderman Moen and seconded by Alderman Frey. Upon questioning, the City Engineer stated a previous project with Tom’s Backhoe went to mediation due to differences in costs not listed in the bid and not having change orders. He stated the mediation process had a favorable outcome for the City. FINANCE AND IMPROVEMENTS COMMITTEE April 29, 2013 Page 4 Whereupon, a vote was taken on the above motion by Alderman Moen, seconded by Alderman Frey, and carried unanimously. 17. That the City Council approve the Cost Participation and Maintenance agreement between the City of Minot and the North Dakota Department of Transportation for the 6th Street Underpass project; and further, authorize the Mayor to sign the agreement on the City’s behalf. ********** The above motion by Alderman B. Miller and seconded by Alderman Seymour. Upon questioning, the City Engineer provided a project timeline stating the roadway portion would be bid May 17, 2013 and completed this year, the storm sewer would be bid in late May 2013, and the pump station portion would be completed over a two year period. Whereupon, a vote was taken on the above motion by Alderman B. Miller, seconded by Alderman Seymour and carried unanimously. 18. That the City Council approve the Special Assessment Policy, as presented by the City Engineer, on file in the City Clerk’s Office. ********** The above motion by Alderman Moen and seconded by Alderman Olson. The City Engineer presented an updated Special Assessment Policy with the following recommendations:  To allow special assessments when appropriate and in the best interest of the City.  Revise the period of special assessment to 20 years for all improvements except sidewalks, demolitions, and nuisance assessments.  In most cases, the City will not pay the costs of a special assessment for properties outside the City limits. This will be reviewed on an individual case keeping with the overall benefit to the City.  The City will pay 50% of the cost of special assessments if the assessment is for a collector or arterial roadway as defined by City staff and the functional classification map. This will also apply to trunk utilities identified by staff which is needed to support development. The developer will be responsible for the remaining 50%.  A prepayment policy will be in effect for a petitioned special assessment district. A 5% prepayment for engineering costs and 35% prepayment will be paid by the developer once the engineer’s report is approved by the City Council. The prepayment will be based on the engineer’s estimate and will be revised higher or lower based on the project bid amount. FINANCE AND IMPROVEMENTS COMMITTEE April 29, 2013 Page 5 Discussion was held regarding the length of the special assessment period and how that could affect the financing of the projects and property owner notification. Alderman B. Miller suggested changing the language regarding distribution of benefits to state ‘The methods of distribution below indicate a typical distribution of benefit. There may be additional methods that can be applied to a project to distribute the benefit, if needed.’ Whereupon, a vote was taken on the above motion by Alderman Moen, seconded by Alderman Olson, and carried unanimously. 17. That the City Council approve the Work Letter Agreement, the Development Agreement, the Lease Agreement, the Declaration of Condominium Agreement, the Condominium Bylaws, and the Purchase Option for the Downtown Parking Structures with Cypress Development, LLC; and further, authorize the Mayor to sign the necessary documents on the City’s behalf. ********** The above motion by Alderman B. Miller and seconded by Alderman Frantsvog. The Finance Director stated the documents are nearly complete, with a few minor changes. The City Attorney indicated the overall intent of the agreement is included. Whereupon, a vote was taken on the above motion by Alderman B. Miller, seconded by Alderman Frantsvog, and carried unanimously. 19. That the City Council deny the request by East Ridge Acres for a reduced water rate contract. ********** The above motion by Alderman Frantsvog and seconded by Alderman Moen. Mike Zimmerman, 1015 27th Street SE, appeared before the Committee to urge support for the request. He expressed his desire to charge a lower fee to surplus water users outside the City limits. He indicated a rate of $4.50 would be agreeable. The City Attorney commented the current City policy of a 100% surcharge on connections to City water outside the City limits had been in place for many years and was adopted ensure smart growth of the City. This allows developers to decide whether to annex and pay the regular water rate. He stated water service was provided to East Ridge Acres due to significant lagoon issues. The Finance Director stated the City has three agreements which have negotiated water rates: Minot Air Force Base, Northwest Area Water Supply, and North Prairie Rural Water. She further stated all other water users pay the water rate based on whether or not the connection is within the City limits. She indicated the City has over 200 customers paying the 100% surcharge; and should this request be granted, each surcharged account would need to be reviewed. Whereupon, a vote was taken on the above motion by Alderman Frantsvog, seconded by Alderman Moen, and carried by the following roll call vote: ayes: Frey, Jantzer, B. Miller, Moen, Olson, Seymour. nays: Frantsvog. FINANCE AND IMPROVEMENTS COMMITTEE April 29, 2013 Page 6 General Information The City Attorney commented on the invitation received from Wal-Mart to the City Council and Planning Commission members regarding an informational meeting for the proposed new store. He stated there is a concern of meeting a quorum for either group which would constitute a meeting and require prior notice and minutes to be recorded. There being no further business, Chairman Jantzer adjourned the meeting at 5:22 p.m. Respectfully Submitted, Lisa Jundt, City Clerk