Finance & Improvements Committee

FINANCE AND IMPROVEMENTS COMMITTEE August 26, 2014 Page 1 Members Present: Frantsvog, Frey, B. Miller, Olson, Pankow, Seymour Members Absent: None Others Present: Acting City Manager/Finance Director, City Clerk, Assistant City Attorney, City Comptroller, City Treasurer, City Engineer, Assistant City Engineer, Traffic Engineer, Fire Chief, Police Chief, Public Works Director, Assistant Public Works Director, Auditorium/Recreation Director, Public Information Officer, Alderman Hatlelid, Alderman Jantzer, Alderman Lehner, Jill Schramm, Dave Schwengler, Mark Lyman, KMOT and KXMC 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 August 26, 2014: 1. The City Council approve the following requests for final payment: a. Rolac Contracting in the amount of $5,359.81 for the Pedestrian Bridge Improvements – Phase 1. The final project cost of $38,893.41 was 2.6% under the bid price. b. Meyer Construction, Inc. in the amount of $2,010 for the US 2/52 Erosion Control Project (3587). The final construction cost of $992,155.45 was 4.6% over the bid price due to replacement of existing storm sewer not in the original design. c. Knife River Corporation in the amount of $349,019.12 for the 23 rd Ave NW, Paving District 472 project (3553). The final project cost of $440,580.17 was 1.5% over the bid price due to additional quantities installed for project completion. d. Ryan Development in the amount of $31,286.22 for the Puppy Dog Sewer Improvements – Phase 3 (3020.2). The final construction cost of $1,564,261.88 was 9% over the original bid price due to variations between planned quantities and actual measured quantities. ********** The above motion by Alderman B. Miller, seconded by Alderman Olson and was carried unanimously. 2. The City Council approve the bidding process for the demolition of homes related to the flood control project, authorize city staff to sell those homes identified as salable; and further authorize the Mayor to sign the necessary documentation on the City’s behalf. ********** The above motion by Alderman B. Miller, seconded by Alderman Olson and was carried unanimously. 3. The City Council place and pass the proposed ordinance, on first reading amending the 2014 Annual Budget to increase the Fire Department operation supplies expenditures and revenues in the general fund for the rescue truck noncapital purchases, and decrease the fire equipment capital purchases revenues and expenditures for the noncapital purchases for the purchase of parts and tools for the rescue truck. ********** The above motion by Alderman B. Miller, seconded by Alderman Olson and was carried unanimously. FINANCE AND IMPROVEMENTS COMMITTEE August 26, 2014 Page 2 4. The City Council place and pass the proposed ordinance, on first reading amending the 2014 Annual Budget to increase the Police Department budgeted revenues and expenditures for a North Dakota Department of Emergency Services Division of Homeland Security Grant for camera equipment and to transfer funds into the project for the City’s Share. ********** The above motion by Alderman B. Miller, seconded by Alderman Olson and was carried unanimously. 5. The City Council approve the 36 month maintenance renewal lease for IBM Hardware and Software through High Plains Technology for a total cost of $13,240.05; 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 was carried unanimously. 6. The City Council approve the contract amendment with Ackerman-Estvold for an addition of $14,250 for Paving District 483 (3727); 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 was carried unanimously. 7. The City Council award the bid to Bechtold Paving in the amount of $228,400 for the 36th Ave SW project (3858), approve the use of General Obligation bonds for the City’s cost share of $77,000; 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 was carried unanimously. 8. The City Council approve the requested increase to the ice usage lease agreement for the All Seasons Arena; and further authorize the Mayor to sign the necessary documents. ********** The above motion by Alderman B. Miller, seconded by Alderman Olson and was carried unanimously. 9. The City Council approve the change of the voting location for the Northeast Quadrant from the Minot Church of Christ to the First Presbyterian Church at 1000 3 rd St. NE. ********** The above motion by Alderman B. Miller, seconded by Alderman Olson and was carried unanimously. 10. The City Council place and pass the following ordinances on second reading: a. Ordinance No. 4801 – Rezoning Section 4-154-82, Outlot 54 b. Ordinance No. 4855 – Rezoning 55th Crossing 7th Addition, Lot 1 c. Ordinance No. 4856 – Rezoning 55th Crossing 7th Addition, Lots 2A-15B d. Ordinance No. 4857 – Rezoning 55th Crossing 7th Addition, Lots 16-26 e. Ordinance No. 4873- Rezoning Whispering Meadows 4th Addition, Lot 2 f. Ordinance No. 4877 – Amending 2014 Annual Budget to Increase the Vehicle Maintenance Expenditures and Revenues in the General Fund for Minot Commission on Aging and Souris Basin Transportation fuel and Maintenance FINANCE AND IMPROVEMENTS COMMITTEE August 26, 2014 Page 3 g. Ordinance No. 4878 – No Parking Restriction – South Side of 16th Ave SE Between 2nd St. SE and 6th St. SE. h. Ordinance No. 4879 – Establishing the Authority for the City to Bond Costs of the renovation project at the North Dakota State Fairgrounds All Seasons Arena. ********** The above motion by Alderman B. Miller, seconded by Alderman Olson and was carried unanimously. 11. The City Council approve the Extension to the Cash Farm Lease with a term of 3 years, between Laverne and Kandi Mikkelson and the City of Minot. ********** The above motion by Alderman B. Miller, seconded by Alderman Frey. The Acting City Manager/Finance Director stated the original and renewal leases involve several parcels of property. She stated the Mikkelson’s own 2 parcels of the property in the contract. She continued by saying the damage paid to the Mikkelsons by the City could be unknown due to many variables, including a volatile market if the lease agreement is not extended. She said there is no incentive for the City to open bids for leasing the property as $46 per acre is average of cash rent per acre in Ward County, which the Mikkelson’s pay for rent. She concluded by stating the Public Works Department has submitted in the 2015 budget, requested funds for a study of the lagoon system. The Public Works Director stated the City owns 1 parcel of property east of the Wetlands. This is where the proposed Wastewater Treatment Facility is intended to go. He stated exclusive use of cells/lagoons will not work for sewage treatment in the future with the City’s expected growth. He continued by saying the treatment system the City is looking at would incorporate converted waste into fertilizer for surrounding farmland. He stated a buffer could possibly be put in place but the study would be needed first to determine if seepage is from the lagoons. Alderman Pankow asked who has come up with the measurement of value for damage to the acreage. The Public Works Director stated the City doesn’t measure damage on a per acre basis. He said this method was used in the past but there were too many variables to be consistent and the total damage was always an unknown factor. The Public Works Director stated an agreement was worked out with the Mikkelsons to have a set amount, which is a better option for the City. Alderman B. Miller asked what the time period and the cost of the proposed study is. The Public Works Director said if the study is approved in the 2015 budget, the City can solicit potential firms in early 2015. He stated he is unsure if the full study can be completed in one year, and estimated it would probably take approximately 2 years to complete. The Public Works Director continued by saying after the study is complete, it may show that seepage is not from the lagoon. The landowners receiving damage payments may not agree with the outcome and may decide to take legal action, which would draw out the situation further. He also stated either party can terminate the lease agreement prior to the 5 year term. Alderman Frantsvog stated he thinks it would be prudent to look at a shorter lease term of 3 years. He proposed the study needs to be reviewed and discussed in the budget process. Alderman Pankow stated this parcel is income producing land and maybe the City should consider forgoing the study and buy the land outright. Alderman B. Miller said until results of the study are determined, the City should enter into a 3 year agreement with the Mikkelsons. Alderman Seymour stated the proposed study may not be approved in the budget. FINANCE AND IMPROVEMENTS COMMITTEE August 26, 2014 Page 4 The Public Works Director said buying land would be difficult since the section of land is not well defined and has a meandering shape. He stated the current damaged acreage requires the City to buy the west half of the quarter of land in question. He continued by saying if wetlands are taken into consideration, the City would need to buy the north half of that quarter of land. He concluded by saying the study needs to be done to determine some definition of property referenced. Upon questioning by Alderman Frantsvog regarding if the potential study could affect other damages currently paid to landowners, the Public Works Director stated the City pays damages to other landowners and the study could affect them as well. Whereupon a vote was taken on the above motion by Alderman B. Miller, seconded by Alderman Frey and was carried by the following roll call vote: ayes: Frantsvog, Frey, B. Miller, Olson, Seymour. nays: Pankow There being no further business, Chairman Frantsvog adjourned the meeting at 4:39p.m. Respectfully Submitted, Lisa Jundt, City Clerk