Finance & Improvements Committee

FINANCE AND IMPROVEMENTS COMMITTEE May 28, 2013 Page 1 Members Present: Frey, Jantzer, B. Miller, Moen, Olson, Seymour. Members Absent: Frantsvog. 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 Captain White, Fire Chief, Assistant Fire Chief, Assistant City Assessor, Auditorium/Recreation Director, Public Information Officer, Traffic Engineer, City Planner, Assistant City Planner, Comptroller, Treasurer, Aldermen Connole, Hatlelid, Krabseth, and Lehner and Mayor Zimbelman, 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 May 28, 2013: 1. That the City Council concur with the NDDOT and declare the bid by Central Specialties, Inc. for the US 2 & 52 Mill and Overlay project in the amount of $5,289,697.50 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 B. Miller, seconded by Alderman Frey, and carried unanimously. 2. That the City Council approve the plans and specifications for the 21st Avenue NW Street and Utility project and authorize the City Engineer to call for bids. ********** The above motion by Alderman B. Miller, seconded by Alderman Frey, and carried unanimously. 3. That the City Council adopt resolutions creating Paving District No. 480, 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 $141,805; further, approve the engineering services agreement with SAFEngineering, PLLC and Alwin & Associates, LLC; and further, authorize the Mayor to sign the agreement on the City’s behalf. ********** The above motion by Alderman B. Miller, seconded by Alderman Frey, and carried unanimously. FINANCE AND IMPROVEMENTS COMMITTEE May 28, 2013 Page 2 4. That the City Council approve the following request for final payment: a. Kipp’s Heating & Air, Inc. in the amount of $12,275.57 for the Public Works Shop heater replacement. ********** The above motion by Alderman B. Miller, seconded by Alderman Frey, and carried unanimously. 5. That the City Council amend the engineering services contract with Houston Engineering for Storm Sewer District No. 118 in the amount of $18,970.28; and further, authorize the Mayor to sign the amendment on the City’s behalf. ********** The above motion by Alderman B. Miller, seconded by Alderman Frey and carried unanimously. 6. That the City Council establish connection fees for Prairie Wynd Addition, Lots 1-4, as related to Storm Sewer District No. 180, and fees be collected at the time of building permit issuance on the named lots and paid to Angie Ward. ********** The above motion by Alderman B. Miller, seconded by Alderman Frey, and carried unanimously. 7. 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 Lewis and Clark Sidewalk project; and further, authorize the Mayor to sign the agreement on the City’s behalf. ********** The above motion by Alderman B. Miller, seconded by Alderman Frey, and carried unanimously. 8. That the City Council approve the agreement between the City of Minot and the North Dakota Department of Transportation to discharge stormwater from Home Depot (South Broadway and 31st Avenue) into the right-of-way; and further, authorize the Mayor to sign the agreement on the City’s behalf. ********** The above motion by Alderman B. Miller, seconded by Alderman Frey, and carried unanimously. 9. That the City Council approve the plans and specifications for the Magic City Artspace Lofts site work and authorize the City Engineer to call for bids. ********** The above motion by Alderman B. Miller, seconded by Alderman Frey, and carried unanimously. FINANCE AND IMPROVEMENTS COMMITTEE May 28, 2013 Page 3 10. That the City Council approve the plans and specifications for the Southwest Minot Sanitary Sewer Improvement Phase II and authorize the City Engineer to call for bids. ********** The above motion by Alderman B. Miller, seconded by Alderman Frey, and carried unanimously. 11. That the City Council declare the bid by Wagner Construction for Paving District No. 478 (36th Avenue NW from 16th Street to 700’ east of 8th Street) in the amount of $2,329,072.90 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 B. Miller, seconded by Alderman Frey, and carried unanimously. 12. That the City Council declare the bid by S J Louis Construction for the SW Minot Sanitary Sewer Improvement project – Phase 1B in the amount of $5,060,000 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 B. Miller, seconded by Alderman Frey, and carried unanimously. 13. That the City Council declare the bid by Keller Paving and Landscaping for Paving District No. 473 in the amount of $828,452.50 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 B. Miller, seconded by Alderman Frey, and carried unanimously. 14. That the City Council declare the bid by R & J Fuel for the two-year junk car towing contract, effective July 1, 2013 through June 30, 2015, in the amount of $100 per towed vehicle and $5/day storage fee 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 B. Miller, seconded by Alderman Frey, and carried unanimously. 15. That the City Council place and pass the following ordinances on second reading: a. Ordinance No. 4706 – Amending CMCO Section 2-230 through 2-232 authorizing the City to acquire, develop, fund, operate, maintain, establish and collect charges for the use thereof, and to lease parking facilities. b. Ordinance No. 4720 – Amending 2013 budget in the amount of $85,470 for three North Dakota Homeland Security Grants to assist in regional response exercises. c. Ordinance No. 4721 – Amending 2013 budget in the amount of $59,352.30 for a North FINANCE AND IMPROVEMENTS COMMITTEE May 28, 2013 Page 4 Dakota Homeland Security Grant to purchase collapse rescue equipment. d. Ordinance No. 4722 – Amending CMCO Section 20-23(c) and 20-7(a) relating to the issuance of parking tickets. ********** The above motion by Alderman B. Miller, seconded by Alderman Frey, and carried unanimously. 16. That the City Council declare the bid by Dig It Up Backhoe for the structure demolition and site restoration of City-acquired homes and for the removal of the water and sewer lines to the main connection in the amount of $1,658,535.60 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 Olson and seconded by Alderman Frey. Nick Linnemann, representing Landwehr Construction, appeared before the Committee to question if the bid was being awarded based on the base bid or base bid plus alternate. He urged the Committee to award the bid to the lowest base bidder and award the alternate separately for cost savings to the City. The Public Works Director indicated the alternate portion of the bid is for the removal of water and sewer lines. The City is required to remove these lines if the property is in the flood protection plan footprint. He stated bids should be awarded now as funding is currently available for the project. He commented there was no way to know if rebidding the project would generate lower bids. Whereupon, a vote was taken on the above motion by Alderman Olson, seconded by Alderman Frey and carried unanimously. 17. That the City Council approve the request by Taxi 9000 and Central Cab Company to increase the starting fare to $4.75 with the approve rate schedule on file in the City Clerk’s Office, effective June 4, 2013. ********** The above motion by Alderman B. Miller and seconded by Alderman Frey. David Haas, representing Taxi 9000, appeared before the Committee to urge support for the request. He stated the increase will help retain employees in the current economic climate. Whereupon, a vote was taken on the above motion by Alderman B. Miller, seconded by Alderman Frey and carried unanimously. 18. That the City Council award the bid for the Puppy Dog Sewer Improvement Project – Phase IV without recommendation from the Committee. ********** The above motion by Alderman Frey and seconded by Alderman Olson. The City Engineer stated irregularities were found in the low bidder’s information. He would be discussing the issue with the City Attorney on how to proceed. FINANCE AND IMPROVEMENTS COMMITTEE May 28, 2013 Page 5 Whereupon, a vote was taken on the above motion by Alderman Frey, seconded by Alderman Olson and carried unanimously. General Information Alderman B. Miller moved that the City Council award the bid for the downtown parking structures without recommendation by the Committee. Motion seconded by Alderman Seymour. Alderman B. Miller commented on his concern with passing the bid award through the Committee to the City Council without bid tabulation results. He indicated a special City Council meeting could be held to award the bid in a timely manner. The City Engineer stated the bid opening date had to be pushed to a later date due to issues in the required publishing of the bid notice. Whereupon, Alderman B. Miller withdrew his motion and Alderman Seymour withdrew his second. No action was taken on this item. No bids were received for the purchase of a ¾ ton 4x4 pickup to be used by the Engineering Department. This equipment will be bid again in early 2014. Doug Anderson, of Gallagher Benefit Services, Inc. provided an overview of the Pension and OPEB reports to the Committee. He informed the Committee of the change of the investment return assumption from 7.75% in 2012 to 7.5% in 2013 is a conservative rate of return. He stated, as of January 1, 2013, the plan is 47.9% funded on actuarial value basis and 50% funded on market value basis. He indicated the recommended annual required contribution (ARC) for 2013 is 22.41% with employees contributing 14.74% and the remaining amount by the City. In 2014, the ARC is projected to be 21.73% with the employee contribution remaining the same. He commented the lower rate is due to cost decreases to the plan. There being no further business, Chairman Jantzer adjourned the meeting at 5:03 p.m. Respectfully Submitted, Lisa Jundt, City Clerk