Finance & Improvements Committee

FINANCE AND IMPROVEMENTS COMMITTEE November 24, 2014 Page 1 Members Present: Frantsvog, Frey, Hedberg, Miller, Olson, Seymour Members Absent: Pankow Others Present: City Manager, City Clerk, Assistant City Attorney, Airport Director, City Assessor, Assistant City Assessor, Comptroller, Treasurer, City Engineer, Traffic Engineer, City Planner, Fire Chief, Police Chief, Public Works Director, Assistant Public Works Director, Auditorium/Recreation Director, Public Information Officer, Alderman Jantzer, Alderman Lehner, Jill Schramm, Dave Schwengler, Kevin Ploof, Doug Rued, Don Larson, Scott Knudsvig and 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 November 24, 2014: 1. The City Council approve the following requests for final payment: a. Post Construction, Inc. in the amount of $3,130.53 for the 2014 Storm Sewer Rehab project (3910). The final project cost was $313,053.63 and was 4.9% under the bid price. b. Wagner Construction in the amount of $9,582 for the 5th St. NE Sanitary Sewer Extension (3879). The final project cost was $61,974.50 and was 9.4% over the bid price due to reconstruction of a corroded existing manhole. c. NDDOT in the amount of $47,540.45 for the Minot Northeast Bypass (3100). The final project cost was $8,024,421.12 and was 9.4% over the bid price due to the need for additional project quantities. d. Blue Stone Construction in the amount of $165,669.45 for the Paving District 491 project (3856). The final project cost was $1,536,733.55 and was 1% under the bid price. e. Astech Corporation in the amount of $85,727.78 for the 2014 Street Seal District project (3795). The final project cost was $646,353.21 and was 5.93% under the bid price. f. Bechtold Paving in the amount of $472,830.08 for the 2014 Street Improvement District project (3794). The final project cost was $1,087,300.19 and was 10.51% over the bid price. ********** The above motion by Alderman Miller, seconded by Alderman Frey and was carried unanimously. 2. The City Council place and pass the proposed ordinance on first reading, amending the 2014 Annual Budget to increase the Capital Equipment Purchases fund expenditures and revenues and decrease the Traffic Department Maintenance Signs, Signals, and Markers Account for the Minot State University crosswalk warning system (3597). ********** The above motion by Alderman B. Miller, seconded by Alderman Frey and was carried unanimously. 3. The City Council award the bid for Boiler and Machinery coverage for the year 2015 to Farmers Union Insurance at an annual premium of $3,100; and further award the bid for the Airport liability coverage for the year 2015 in the amount of $5,000,000 at an annual premium of $5,250. ********** The above motion by Alderman Miller, seconded by Alderman Frey and was carried unanimously. FINANCE AND IMPROVEMENTS COMMITTEE November 24, 2014 Page 2 4. The City Council approve the transfer of interest distribution to funds for the 2014 fiscal year, in accordance with the 2014 budget, and in accordance with the average cash balances at the end of each month. ********** The above motion by Alderman Miller, seconded by Alderman Frey and was carried unanimously. 5. The City Council place and pass the following ordinances on second reading: a. Ordinance No. 4899 – Rezoning Heckers 1st Addition, Lot 16 b. Ordinance No. 4900 – Annexing Into City Limits – Morning Side Addition, Block 1, Lots 5 & 6 and Adjacent Right of Way c. Ordinance No. 4909 – Special Speed Limits – 30th Ave. NW – 16th St. SW d. Ordinance No. 4910 – Amending Section 9-16 of the City of Minot Code of Ordinances (Appeals) ********** The above motion by Alderman Miller, seconded by Alderman Frey and was carried unanimously. 6. The City Council place and pass on first reading, amending the 2014 Annual Budget to increase the Capital Equipment Purchases revenues and expenditures and decrease the Recreation Operations Supplies for the board room table and transfer funds in the amount of $5,393 from the Recreation fund to the Capital Equipment Purchases fund (REC021). ********** The above motion by Alderman Olson, seconded by Alderman Miller and was carried unanimously. The Recreation/Auditorium Director stated the table is being sold at a discounted price and the Rec/Aud Department is going to be charged $5,392.59. He stated the table will be used in two remodeled meeting rooms and will be used for City meetings. He noted $2,500 of the funds will be from an unused operations funds in the softball budget, and the remainder will come from other operations funds not used. 7. The City Council place and pass a proposed ordinance on first reading, amending the 2014 Annual Budget to increase the Department budgets for the funds spent using corresponding revenues and cash reserves. ********** The above motion by Alderman Olson, seconded by Alderman Miller and was carried unanimously. Upon questioning about the meter line item, the City Comptroller explained the City has had to replace more meters than anticipated and the $2 charge on the water bill has not covered the costs. She noted the money will need to be transferred from revenues already collected. The Public Works Director stated the new building in Minot has required more meters, which could not be anticipated in the budget. The City Comptroller stated this budget transfer is required annually per governmental accounting practices. 8. The City Council approve the request to amend the current contract with Stantec by $17,000 for the SW Sewer Improvements project; and further authorize the Mayor to sign the amendment on the City’s behalf (3561). ********** The above motion by Alderman Seymour, seconded by Alderman Olson and was carried unanimously. FINANCE AND IMPROVEMENTS COMMITTEE November 24, 2014 Page 3 The City Engineer stated there have been 3 change orders to Stantec services on this project, noting the first change order was $100,000, and the second was $50,000. He stated the contractor on this project is off schedule from the completion date. The City Engineer said when the contractor has to extend a contract, they pay liquidated damages to the City, and these damages will off-set engineering costs. Upon questioning by Alderman Frantsvog, the City Engineer explained Stantec does oversee the project and reports to City staff regularly. He stated there have been several problems on the project and the contractor has been challenging to work with. He concluded by saying Stantec does not have the authority to tell S.J. Louis to provide added resources to complete the project. 9. The City Council accept the offer from Aaron and Trisha Nelson for $335,000 and their requests as noted, approve the funds for the purchase to come from Sales Tax Capital Improvements Cash Reserves to be repaid in the future with general obligation bonds; and further approve the use of general obligation bonds for repayment once a project is programmed and started. ********** The above motion by Alderman Miller, seconded by Alderman Seymour and was carried unanimously. Upon questioning by Alderman Miller, the City Engineer explained the purchase of this property is part of a 2 phase project. He said the first phase of the project is to provide a right hand turn lane, as there is limited right of way. The second phase of the project is to prepare for the six lane system on 16th St. He stated it is an advantage of the City to purchase the property now since the owners are in agreement to sell. Alderman Frey asked how many properties would be needed on 16th St. if the six lane project were to happen. The City Engineer stated there would potentially need to be 5 properties along 16th St. for the project. Alderman Frantsvog questioned the City Engineer on the option of renting the property to a City Employee after purchase. The City Engineer stated they would be able to rent the property to a City Employee to gain revenue and not leave the property sitting empty and unused. He concluded by saying it is better to purchase the property now since they cannot wait for a funding source of the six lane project. There being no further business, Chairman Frantsvog adjourned the meeting at 4:40p.m. Respectfully Submitted, Lisa Jundt, City Clerk