Finance & Improvements Committee

FINANCE AND IMPROVEMENTS COMMITTEE January 27, 2015 Page 1 Members Present: Frantsvog, Frey, Hedberg, Miller, Olson, Pankow, Seymour Members Absent: None Others Present: City Manager, City Clerk, Assistant City Attorney, Finance Director, Airport Director, City Assessor, Assistant City Assessor, Airport Manager, City Engineer, City Planner, Building Official, Fire Chief, Library Director, Police Chief, Captain White, Public Works Director, Assistant Public Works Director, Auditorium/Recreation Director, Public Information Officer, Alderman Connole, Alderman Hatlelid, Alderman Lehner, Jill Schramm, Dave Schwengler, Kevin Ploof, Wanda Staab, Mark Lyman, Sally Johnson, Shawn Sipma, Larry Holbach, Bruce Walker, Pam Karpenko, Pat Seaworth and Jim Olson. 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 27, 2015: 1. The City Council approve the following requests for final payment: a. Keller Paving & Landscaping in the amount of $37,166.23 for the Federal-Aid Emergency Road Repair projects (3541). b. Wagner Construction in the amount of $24,757.80 for Water and Sewer District No. 181 (3566). The final project cost was $282,166 and was 9.9% over the bid price due to replacement of an existing watermain that was too shallow with the new street grades. ********** The above motion by Alderman Miller, seconded by Alderman Olson and was carried unanimously. 2. The City Council approve the equipment rates and tower rental rates for 2015-2016. ********** The above motion by Alderman Miller, seconded by Alderman Olson and was carried unanimously. 3. The City Council award the bid to C&C Plumbing in the amount of $149,953 for the boiler and humidifier for the Library, acknowledge the total project costs, approve the use of the Sales Tax Major Project account for the shortfall in funding; and further authorize the Mayor to sign the necessary documentation on the City’s behalf. ********** The above motion by Alderman Miller, seconded by Alderman Olson and was carried unanimously. FINANCE AND IMPROVEMENTS COMMITTEE January 27, 2015 Page 2 4. The City Council place and pass a proposed ordinance on first reading amending the 2014 Annual Budget to increase the Information Technology Contract Agreements expenditures and revenues in the General fund for the New World Software Upgrade and decrease the Capital Purchases Equipment revenues and expenditures for Noncapital Purchases (PD0025) ********** The above motion by Alderman Miller, seconded by Alderman Olson and was carried unanimously. 5. The City Council place and pass a proposed ordinance on first reading, amending the 2015 Annual Recreation Budget to increase the revenue and expenditure Account Numbers for the Municipal Court Relocation Remodel and reduce and reallocate the Capital Equipment Purchases fund revenues and expenditures for a Plaintiff Table and to move excess funds to relocation remodel. ********** The above motion by Alderman Miller, seconded by Alderman Olson 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 Department budgets for funds spent using cash reserves and corresponding revenues. ********** The above motion by Alderman Miller, seconded by Alderman Olson and was carried unanimously. 7. The City Council place and pass the following ordinances on second reading: a. Ordinance No. 4903 – Rezoning Urijahs 1st Addition, Lots 1-2 b. Ordinance No. 4928 – Enacting New Subsection (e) to Section 22-1, Chapter 22 of the City of Minot Code of Ordnances – Declaration of Nuisances and Barricading or Fencing of Open Pits or Excavations c. Ordinance No. 4929 – Amending 2015 Annual Budget – Increase Storm Sewer Maintenance Budget Expenditures and Revenues – Additional Cost of Purchasing Jetter ********** The above motion by Alderman Miller, seconded by Alderman Olson and was carried unanimously. 8. The City Council adopt the proposed resolutions to create Street Lighting District 64, direct preparation of the Engineer’s report, approve the Engineer’s report, approve the resolution of necessity and call for a public hearing, authorize the continuation of HMjv as the City’s engineering consultant for the project since they were selected previously by competitive RFQ methods, direct the preparation of plans and specifications, approve plans and specifications and authorize a call for bids; and further adopt resolution for declaration of Intent for Bonding. ********** The above motion by Alderman Frey, seconded by Alderman Seymour. The City Engineer stated the project has now been structured in three phases. He said each phase will consist of a total reconstruction including underground utilities, paved streets, sidewalks, re-establishing utility connections and lighting. He stated each phase will be bid with all portions of reconstruction noting the street lighting district is special assessed. He said the other portion of the total reconstruction will be paid for with various means including CDBG or EDA funds, bonding and special assessments. FINANCE AND IMPROVEMENTS COMMITTEE January 27, 2015 Page 3 Upon questioning by Alderman Frey, the City Engineer indicated the Council had set aside $500,000 in funding to address the underground vaults and a letter has been sent to property owners with regard to the vaults. He stated issues with the building and vaults is the property owner’s responsibility, and how the vaults are addressed may depend on if the building meets code or not. Alderman Frey stated he wanted the downtown business owners to understand what their costs will be. The City Engineer said they could look at the two options presented. They could proceed with the phased project that has property owners paying half of the storm sewer district and all of the lighting district while other funds are available to pay the remaining costs. He stated the second option would be for the City to wait on the project later, without the additional funds, and have the full costs assessed to the property owners. He noted this project would have to be done at some point regardless. The City Engineer stated the storm sewer district could not be protested, while the lighting district did have a period for protest. He concluded by saying notification will be sent out to property owners indicating their right to protest and the front foot cost for each phase. Whererupon a vote was taken on the above motion by Alderman Frey, seconded by Alderman Olson and was carried by the following roll call vote: ayes: Frantsvog, Frey, Hedberg, Miller, Olson, Pankow, Seymour. nays: none 9. The City Council adopt the proposed resolutions to create Storm Sewer District 119, direct preparation of the Engineer’s report, approve the 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 continuation of HMjv as the City’s engineering consultant for the project since they were selected previously by competitive RFQ methods, direct the preparation of plans and specifications, approve plans and specifications and authorize a call for bids; and further adopt the proposed resolution for the declaration of intent for bonding. ********** The above motion by Alderman Frey, seconded by Alderman Olson. Alderman Pankow questioned if there will be adequate movement of parking during the downtown reconstruction project phases and parking ramp construction. The City Engineer stated the 2 projects will coincide. He said the first phase of the downtown reconstruction project will involve Central Avenue, part of 1st St. SE and Main St. He stated that most of the work is in the eastern portion of downtown and should happen away from the parking structure activity. He concluded by saying the City has done as much as possible to provide for downtown parking in this process. Whererupon a vote was taken on the above motion by Alderman Frey, seconded by Alderman Olson and was carried by the following roll call vote: ayes: Frantsvog, Frey, Hedberg, Miller, Olson, Pankow, Seymour. nays: none 10. The City Council ratify the Mayor’s approval to retain Dorsey and Whitney to advise the City of Minot regarding contractual and performance bond rights under its contract with Shaw Lindquist and to pursue appropriate remedies. ********** The above motion by Alderman Miller, seconded by Alderman Seymour. FINANCE AND IMPROVEMENTS COMMITTEE January 27, 2015 Page 4 City Manager Lee Staab stated at the January 12, 2015 City Council meeting, the Council took action to send a letter to Shaw Lindquist. He said the letter was sent with the demand for a revised cost and construction schedule which was to be provided by January 21, 2015. He said the City has received a revised construction schedule which noted construction would be completed by November 2015. Mr. Staab stated the City still has an enforceable contract to complete both structures for a total cost of $10.5 million. He said representatives from the City, the prime contractor and the assurity company are arranging a meeting to address steps to complete the projects. Upon questioning by Alderman Frey, the Finance Director stated the anticipated legal costs for the upcoming meeting would be approximately $5,000 and will be considered project costs. When questioned by Alderman Frantsvog in regards to the process of selecting legal counsel, the Finance Director stated one other firm with construction litigation experience was contacted, but the firm’s caseload did not allow for additional work. She stated the City has a long standing relationship with Dorsey and Whitney, as the firm is also used as legal counsel for bond and pension issues. She said as a final point, this project did not include any contingency expenses in the contract. She concluded by noting the preliminary meeting of all parties will take place in Minneapolis to keep costs to a minimum. Whererupon a vote was taken on the above motion by Alderman Miller, seconded by Alderman Seymour and was carried by the following roll call vote: ayes: Frantsvog, Frey, Hedberg, Miller, Olson, Pankow, Seymour. nays: none There being no further business, Chairman Frantsvog adjourned the meeting at 4:34p.m. Respectfully Submitted, Lisa Jundt, City Clerk