Finance & Improvements Committee

FINANCE AND IMPROVEMENTS COMMITTEE January 6, 2015 Page 1 Members Present: Frantsvog, Frey, Hedberg, Miller, Olson, Pankow Members Absent: Seymour Others Present: City Manager, City Clerk, Assistant City Attorney, Airport Director, City Assessor, Finance Director, Comptroller, Treasurer, Airport Manager, City Engineer, Assistant City Engineer, City Planner, Building Official, Fire Chief, Police Chief, Public Works Director, Assistant Public Works Director, Public Information Officer, Alderman Connole, Alderman Hatlelid, Alderman Jantzer, Alderman Lehner, Jill Schramm, Dave Schwengler, Kevin Ploof, Doug Rued, Wanda Staab, Pat Seaworth, Mark Lyman, 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 January 6, 2015: 1. The City Council approve the following requests for final payment: a. Knife River Co. in the amount of $103,106.94 for the Street and Lighting Improvements for District 483 (3727). The final project cost was $317,374.35 and was 1.7% over the bid price due to the need for additional project quantities. b. Wagner Construction in the amount of $99,063.18 for Paving District 478 (3723). The final project cost was $2,593,666.37 and was 11.4% over the bid price due to addition of storm sewer needed to drain roadway. c. CMT Concrete & Construction in the amount of $123,142.54 for the 2014 Sidewalk, Curb and Gutter project (3796). The final project cost was $185,006.78 and was 51.04% under the bid price. d. Wagner Construction in the amount of $18,417.61 for Phase 1 of Paving District 476 (3619). The final project cost was $530,010.85 and was 10.7% over the bid price due to additional storm sewer that was added to improve street drainage. e. Wagner Construction in the amount of $49,972.31 for Phase 2 of Paving District 476 (3619). The final project cost was $2,180,186.25 and was 3.8% over the bid price due to the need for additional project quantities. f. NDDOT in the amount of $4,250 for the SRTS Washington School Sidewalk – 6th St. SE from 16th Ave. to 19th Ave. SE project (3370). The final project cost was $84,331.90. The final construction costs are due to items that were not eligible for Federal funding. g. Utility Systems of America in the amount of $109,466.25 for the 2014 Sewer Rehab – Roosevelt Park Sewer project (3883). The final project cost was $524,595.75. h. D.L. Barkie in the amount of $8,337.82 for the Flooded Home Nuisance Abatement project (3964). The final project cost was $84,805.65 and was 35% under the bid price. ********** The above motion by Alderman Miller, seconded by Alderman Hedberg and was carried unanimously. FINANCE AND IMPROVEMENTS COMMITTEE January 6, 2015 Page 2 2. The City Council place and pass the proposed ordinance on first reading, amending the 2014 Annual Budget to increase the revenue and expense accounts for the Airport watermain replacement for the terminal access road parking project; and further approve and transfer funds. (AIR015) ********** The above motion by Alderman Miller, seconded by Alderman Hedberg and was carried unanimously. 3. The City Council place and pass the proposed ordinance on first reading, amending the 2014 Annual Budget to decrease the revenues and expenditures in the General fund, Enterprise funds and Special Revenue fund, and increase revenues and expenditures in the Capital Equipment Purchases fund for capital purchases for the purchase of a new VOIP Phone System; and further approve the transfer of funds. (IT0005) ********** The above motion by Alderman Miller, seconded by Alderman Hedberg and was carried unanimously. 4. The City Council place and pass on first reading, amending the 2014 Annual Budget to decrease the Fire Department’s budgeted revenues and expenditures in the General fund and increase by $2,621 the Fire Department’s budgeted revenues and expenditures in the Capital Purchases fund for structural collapse equipment. (FD0029) ********** The above motion by Alderman Miller, seconded by Alderman Hedberg and was carried unanimously. 5. The City Council place and pass a proposed ordinance on first reading, amending the 2014 Annual Budget to increase the Inspection Education & Training expenditures and revenues in the General fund by $7,680 for the Sungard Permits Software and decrease the Capital Purchases Equipment revenues and expenditures for noncapital purchases; and further approve the transfer of funds. (ENG006) ********** The above motion by Alderman Miller, seconded by Alderman Hedberg and was carried unanimously. 6. The City Council place and pass a proposed ordinance on first reading amending the 2014 Annual Budget to increase the Information Technology Contracts expenditures and revenues in the General fund by $13,678 for the New World Software Upgrade and decrease the Capital Purchases Equipment revenues and expenditures for noncapital purchases; and further approve the transfer of funds. (PD0025) ********** The above motion by Alderman Miller, seconded by Alderman Hedberg and was carried unanimously. 7. The City Council place and pass a proposed ordinance on first reading, amending the 2015 Annual Budget to increase the Police Department budgeted revenues and expenditures in the General fund by $5,470 for a North Dakota Office of the Attorney General grant. (PD0085) ********** The above motion by Alderman Miller, seconded by Alderman Hedberg and was carried unanimously. 8. The City Council authorize the use of the excess funds from the breathing compressor project to cover the $2,314 needed for the Station Three Ramp project; and further place and pass a proposed ordinance amending the 2014 Annual Budget to decrease the Fire Capital Equipment Purchase fund budgeted revenues and expenditures and increase the Fire Department budgeted revenues and expenditures in the General fund. ********** The above motion by Alderman Miller, seconded by Alderman Hedberg and was carried unanimously. FINANCE AND IMPROVEMENTS COMMITTEE January 6, 2015 Page 3 9. The City Council place and pass a proposed ordinance on first reading, amending the 2015 Annual Budget to increase budget revenues and expenditures in the Library fund to account for the Otto Bremer Foundation Grant and funding from the Friends of the Library. ********** The above motion by Alderman Miller, seconded by Alderman Hedberg and was carried unanimously. 10. The City Council approve a transfer of funds from the street maintenance department to sidewalk fund, and further place and pass on first reading the necessary budget amendment ordinance. (3796) ********** The above motion by Alderman Miller, seconded by Alderman Hedberg and was carried unanimously. 11. The City Council approve the Tri- Powers Agreement between the City of Minot, Ward County and the Souris River Joint Board for consulting services in preparation of the HUD Resilience Grant Application; and further authorize the Mayor to sign the agreement on the City’s behalf. ********** The above motion by Alderman Miller, seconded by Alderman Hedberg and was carried unanimously. 12. The City Council ratify Amendment No. 5 to the Community Development Block Grant Disaster Recovery Agreement for Administrative Services by CDM Smith to extend the contract until May 31, 2015. ********** The above motion by Alderman Miller, seconded by Alderman Hedberg and was carried unanimously. 13. The City Council ratify the grant application, pass the resolution of support, authorize the Mayor to sign the necessary documentation; and further approve acceptance of the grant in the amount of $1,494,485. ********** The above motion by Alderman Miller, seconded by Alderman Hedberg and was carried unanimously. 14. The City Council authorize Mayor Barney to sign the letter of support for the Affordable Family Housing Project of Sunset Ridge ********** The above motion by Alderman Miller, seconded by Alderman Hedberg and was carried unanimously. 15. The Finance Committee forwarded the item concerning The Minot Place Limited Partnership’s application for payment in lieu of property tax (PILOT) for Council action to allow for the necessary public hearing. ********** The above motion by Alderman Miller, seconded by Alderman Hedberg and was carried unanimously. 16. The City Council place and pass the following ordinances on second reading: a.Ordinance No. 4913 – Annexing into City Limits – Section 14-155-82, Outlot 5 b.Ordinance No. 4914 – Rezoning Section 29-155-83, Outlot 3; Section 20-155-83, Outlot 2 c.Ordinance No. 4915 – Rezoning Southwood 15th Addition, Block 3, Lot 4 d.Ordinance No. 4918 – Restricted Parking – 25th St. from 60’ North of 5th Ave NW. to 250’ North of 5th Ave. NW. ********** The above motion by Alderman Miller, seconded by Alderman Hedberg and was carried unanimously. FINANCE AND IMPROVEMENTS COMMITTEE January 6, 2015 Page 4 17. The City Council authorize the Public Information Officer to solicit requests for proposals for new website software. ********** The above motion by Alderman Miller, seconded by Alderman Hedberg and was carried unanimously. 18. The City Council approve the addition of the new position of Planning Director, including job description, and allow the Human Resource Department to advertise the position as proposed. ********** The above motion by Alderman Miller, seconded by Alderman Pankow and was carried unanimously. City Manager Lee Staab stated when he arrived in September of 2014, he did an assessment of City staff. He noted the Engineering Department spent a lot of time with items that should be handled by the Planning Department. He stated he realized the immediate need to add this position with the exponential growth of the City. Mr. Staab said this will also be a change to the City structure. Finance Director Cindy Hemphill stated the initial intent was to use sales tax reserves to fund this position. She has consulted with Assistant City Attorney Kelly Hendershot to confirm if this is allowable. She concluded by stating the City would also be looking at other areas to find the funding. City Manager Staab stated due to the need to advertise and recruit, this position will take several months to fill but it is anticipated to be filled by June or July of 2015. Upon questioning by Alderman Miller, the City Manager stated there are crucial issues to add this position such as exponential growth as well as private developers continuing to look to Minot. He concluded by saying he has come to the understanding that the organization is not properly staffed. 19. The City Council approve the amended Federal Grant Program Procurement Policy – City of Minot. ********** The above motion by Alderman Olson, seconded by Alderman Hedberg and was carried unanimously. The Finance Director stated the full policy will be emailed the Alderman before the Council meeting on January 12, 2015. 20. The City Council approve Amendment No 7 to the agreement between the City and CDM Smith entered into on September 19, 2011 for $179,440, authorize the use of 2015 sales tax improvement major project funds; and further authorize the Mayor to sign the amendment. ********** The above motion by Alderman Miller, seconded by Alderman Pankow and was carried unanimously. Alderman Miller stated he strongly supports this item but is concerned with the added fees for consulting services. Finance Director Hemphill stated the fees will be paid for with sales tax major projects. She noted for the year 2015, there have been no major projects identified. She stated the City won’t see any of the 2015 tax collection until February, but she anticipates the tax collection will be the same rate as 2014. The Finance Director continued by saying the City is sending a representative to a workshop in Kansas City to work on Phase I of the competition. She stated there is an anticipation of additional funds being available, which will be discussed at that workshop. City Manager Staab stated HUD is considering possible reimbursements of costs involved with the application process. FINANCE AND IMPROVEMENTS COMMITTEE January 6, 2015 Page 5 21. The Finance Committee moved the item regarding the downtown infrastructures short term transfer to City Council without a recommendation. ********** The above motion by Alderman Frey, seconded by Alderman Olson and was carried unanimously. Alderman Frey moved the Committee approve the short-term transfer in the amount of $1,216,500 from City sales tax cash reserves if Cypress meets all of their obligations. Motion seconded by Alderman Olson. Alderman Frey asked what the $1.2 million dollar short term loan would be used for. Finance Director Hemphill stated the $1.2 million short term transfer is to pay the surety company who has already paid contractors for work that was performed. She stated leasing will also need to be approved for this action to be effective. Alderman Franstvog inquired if all 5 of the parameters addressed in this item need to fall into place for this action to be effective. The Finance Director responded by saying she is unable to answer the question at this time other than to say the City will support the requested MADC load. She stated at this time, $5.375 million of CDBG funds and $3 million of MAGIC funds have been dedicated to the parking structure project. She said she has told the developer the City needs all necessary documentation by close of business Friday, January 9, 2015. She noted if the City is not comfortable with guarantee on the transfer of short term funds, she will inform the Council. Alderman Frey moved to amend the motion to forward this item to Council without a recommendation. Motion seconded by Alderman Miller and was carried by the following roll call vote: ayes: Frantsvog, Frey, Hedberg, Miller, Olson, Pankow. nays: none Whereupon a vote was taken on the original motion as amended and carried unanimously. 22. The Finance Committee forwarded the item regarding the downtown parking structures leases and related documents to City Council without a recommendation. ********** The above motion by Alderman Miller, seconded by Alderman Olson and was carried unanimously. Alderman Miller moved the Committee approve the amended documents for the downtown parking structures, and further authorize the Mayor to sign the documents on the City’s behalf. Motion seconded by Alderman Olson. Finance Director Hemphill stated she would have the completed documents before Monday, January 12, 2015. She noted after she and City Attorney Kelly Hendershot reviewed the documents, she would forward them to the Council. Alderman Pankow moved to amend the motion to forward this item to Council without a recommendation. Motion seconded by Alderman Hedberg and was carried by the following roll call vote: ayes: Frantsvog, Frey, Hedberg, Miller, Olson, Pankow. nays: none Whereupon a vote was taken on the original motion as amended and carried unanimously. There being no further business, Chairman Frantsvog adjourned the meeting at 4:40p.m. Respectfully Submitted, Lisa Jundt, City Clerk