Finance & Improvements Committee

FINANCE AND IMPROVEMENTS COMMITTEE July 1, 2014 Page 1 Members Present: Franstvog, Frey, B. Miller, Moen, Olson, Pankow, Seymour Members Absent: None Others Present: Acting City Manager/Finance Director, City Clerk, Assistant City Attorney, Airport Director, City Assessor, Assistant City Assessor, City Engineer, Assistant City Engineer, Traffic Engineer, Fire Chief, Police Chief, Public Works Director, Assistant Public Works Director, Auditorium/Recreation Director, Alderman Berg, Alderman Jantzer, Mike Mahoney, George Withus, Kevin Ploof, Scott Knudsvig, Jill Schramm, Dave Schwengler, Doug Rued, KMOT, Mayor Barney. 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 July 1, 2014: 1. The City Council approve the final payment to Wagner Construction in the amount of $23,688.57 for Cell 5 and Leachate Forcemain Construction project (3458). ********** The above motion by Alderman B. Miller, seconded by Alderman Olson, and carried unanimously. 2. The City Council approve the Land Exchange between the City of Minot and the Minot Vocational Workshop; and further authorize the Mayor to sign the necessary documents on the City’s behalf. ********** The above motion by Alderman B. Miller, seconded by Alderman Olson, and carried unanimously. 3. The City Council approve the First Amendment of the City of Minot, North Dakota Pension Plan (2014 Restatement) and the First Amendment of City of Minot, North Dakota 401 (a) Retirement Plan Savings Plan (2014 Restatement); and further authorize the Mayor to certify the amendments are approved and adopted. ********** The above motion by Alderman B. Miller, seconded by Alderman Olson, and carried unanimously. 4. The City Council place and pass, on first reading, an ordinance amending the 2014 Annual Budget to increase the Police Administration expenditures and revenues in the General Fund for the copy machine maintenance agreement and decrease the Capital Purchase equipment revenues and expenditures. ********** The above motion by Alderman B. Miller, seconded by Alderman Olson, and carried unanimously. FINANCE AND IMPROVEMENTS COMMITTEE July 1, 2014 Page 2 5. The City Council authorize the sale of 218 19th St SE, Minot, North Dakota to the Minot Area Community Land Trust; and further authorize the Mayor to sign the necessary documents on the City’s behalf. ********** The above motion by Alderman B. Miller, seconded by Alderman Olson, and carried unanimously. 6. The City Council approve the addendum to the Development Agreement between the City of Minot and 16th Crossing, LLC; and further authorize the Mayor to sign the necessary documents on the City’s behalf. ********** The above motion by Alderman B. Miller, seconded by Alderman Olson, and carried unanimously. 7. The City Council approve the revised Engineer’s report, approve the resolution of necessity and call for a public hearing, authorize the preparations of plans and specifications; and further approve the plans and specifications and call for bids for Street Lighting District 63. ********** The above motion by Alderman B. Miller, seconded by Alderman Olson, and carried unanimously. 8. The City Council approve the revised Engineer’s Report, waive the resolution of necessity for Storm Sewer District 119 since the improvements constitute an improvement covered in NDCC 40-22- 01.1, authorize the creation of plans and specifications; and further approve plans and specifications and authorize a call for bids. ********** The above motion by Alderman B. Miller, seconded by Alderman Olson, and carried unanimously. 9. The City Council approve the contract amendment and HMjv in the amount of $506,683, approve the use of Special Assessment bonds, Water and Sewer Utility bonds and General Obligation bonds as needed; and further authorize the Mayor to sign the amendment on the City’s behalf. ********** The above motion by Alderman Bob Miller, seconded by Alderman Olson, and carried unanimously. 10. The City Council approve the contract amendment for the Renaissance and Central parking structures (3738.1, 3738.2) which adds termination for convenience clauses to both contracts; and further authorize the Mayor to sign the amendment on the City’s behalf. ********** The above motion by Alderman B. Miller, seconded by Alderman Olson, and carried unanimously. FINANCE AND IMPROVEMENTS COMMITTEE July 1, 2014 Page 3 11. The City Council authorize the City of Minot to enter into a lease agreement with the Men’s Winter Refuge once they have filed for their 501 (c) status and obtained their tax payer identification number for a period of five years for the sum of one dollar and no cents ($1.00) per year to lease City owned property located at 1112 43rd St SE. ********** The above motion by Alderman B. Miller, seconded by Alderman Olson, and carried unanimously. 12. The City Council approve the plans and specifications for the 1st St SE street improvements project; and further authorize the City Engineer to call for bids. ********** The above motion by Alderman B. Miller, seconded by Alderman Olson, and carried unanimously. 13. The City Council place and pass the following ordinances on second reading: a. Ordinance No. 4827 – Rezoning Prairie View Estates 4th Addition, Lots 1-3 b. Ordinance No. 4828 – Annexation into City Limits – Prairie View Estates 4th Addition, Lots 1-3 c. Ordinance No. 4861 – Amending Minot Zoning Code of Ordinances relating to recent revisions d. Ordinance No. 4864 – Limited Parking Zones – 17th Ave SW from 6th St to 7th St e. Ordinance No. 4842 – Annexation into City Limits – Hacienda Hills, Lot 22 and Adjacent Right of Way ********** The above motion by Alderman B. Miller, seconded by Alderman Olson, and carried unanimously. 14. The City Council approve the Amendment to the Program for Involuntary Acquisition/Buyout of Real Estate Policies and Procedures. ********** The above motion by Alderman B. Miller, seconded by Alderman Olson, and carried unanimously. 15. The Finance Committee moved to hold the Extension of Amendment to Cash Farm Lease with the City of Minot and Laverne and Kandi Mikkelson until the July 29, 2014 Finance Committee meeting. ********** Alderman Frey moved to approve the the Extension of Amendment to Cash Farm Lease with the City of Minot and Laverne and Kandi Mikkelson; and further authorize the Mayor to sign the agreement on the City’s behalf. Motion seconded by Alderman Moen. FINANCE AND IMPROVEMENTS COMMITTEE July 1, 2014 Page 4 Alderman Pankow asked how the City came to the decision to waive cash rent and pay an additional $5,000 per year to the Mikkelsons. Acting City Manager stated the alleged damage is over $11,000 so it was fair to pay the Mikkelsons $5,000 per year and waive the cash rent as it is equal to the alleged damage amount. She continued by saying the original lease agreement was in place when the City purchased the property and the City has agreed to honor the lease. The damage claim to the Mikkelson’s property came after the existing lease and so an amendment was made to the lease. She stated extension of the amendment will allow the Public Works Director to complete a study on potential seepage damage which will be budgeted in 2015. The Public Works Director explained the $5,000 payment to the Mikkelsons is for damage to property the City does not own. The land rented by the Mikkelsons is north of the wetlands, however, potential seepage is damaging other property not rented. He continued, the City has been paying damages to this property since 2006, the amendment to the existing contract was negotiated in a lump sum in 2010. The Public Works Director stated there were some attempts made with the use of drain tile and lift stations to help with seepage issues over the years. The study that will be budgeted for is not inexpensive, and will cost approximately $100,000. Alderman Pankow asked if it was a typical practice by the City to re-price or re-bid a lease when the term runs more than one year. Acting City Manager Hemphill stated the City has a limited amount of land which is actually leased and does open leases for bid when terms expire. She stated , for instance, the Airport has land close to its proximity which is leased and was recently bid. Alderman Frantsvog asked the Public Works Director to provide the original lease and amendment to the Committee for the next meeting. Travis Zablotney of 1119 12th Ave SW, appeared before the Committee to express his concern with the recommendation to approve the extension of the lease amendment. He believes extension of the lease amendment will exacerbate current problems and potentially create new ones. He suggested there be separate agreements to handle the lease and the damages. Whereupon Alderman Moen moved the Committee hold his item and address it at the next Finance Committee meeting scheduled for July 29, 2014 until further information can be obtained. Motion seconded by Alderman Olson and was carried unanimously. 16. The City Council approve the plans and specifications for the Downtown Infrastructure Improvements project, approve the use of Special Assessment bonds, Water and Sewer Utility bonds and General Obligation bonds as needed; and further authorize the City Engineer to call for bids. ********** The above motion by Alderman B. Miller, seconded by Alderman Olson and carried unanimously. Upon questioning by Alderman Frantsvog, the City Engineer stated $4.2 million is the Engineering contract for this project. He stated the significant contingency cost of $3.5 million is due to the scope of the project. He explained the Engineering Department uses a sliding percentage for costs that was established by City Council. This sliding FINANCE AND IMPROVEMENTS COMMITTEE July 1, 2014 Page 5 percentage assists departments in estimating engineering costs as accurately as possible. He continued by saying Federal Aid projects have additional percentages added for costs with regard to EDA and CDBG compliance. He noted this project was expected to take 2 years and the hourly engineering project would not exceed $4.2 million. He added at times during the project, there are things that could potentially happen which could require additional engineering services out of the scope of this project. Alderman B. Miller stated this project could potentially be bonded and inquired if there were any concerns in adding this additional debt to the City through bonding. The Acting City Manager stated the Finance Department had a meeting with the Bond Rating Agency in 2013 to assess the City’s current bond debt. She stated the City is currently below the bond debt limit of 8% set by ordinance, but there is always concern by the Finance Department when additional debt is added. She concluded it is important to understand bonded debt still needs to be paid in the future by the City. Other Business Alderman Frey expressed his concern with dike encroachments. The Public Works Director stated they do not have enough personnel to walk and inspect dikes. Dikes are inspected when mowing and during annual inspections. Alderman Frey stated his concern about having to raise dikes and he thinks people should be told about putting up fences so close to the dikes. The Public Works Director stated they currently have preflood protection but the dikes do not meet the new requirements set by the Corps of Engineering. New standard state trees and vegetation are not allowed on dikes. He concluded by saying the Corps recommends tree removal, but have back away from this idea in recent years due to litigation. There being no further business, Chairman Frantsvog adjourned the meeting at 4:44p.m. Respectfully Submitted, Lisa Jundt, City Clerk