Flood Finance Committee – Minutes from March 27, 2019


FLOOD DIVERSION FINANCE COMMITTEE
MARCH 27, 2019—4:00 PM

1. MEETING TO ORDER
A meeting of the Flood Diversion Finance Committee was held on Wednesday, March 27, 2019, at 4:00 PM in the Fargo Commission Chambers, Fargo City Hall, with the following present: Fargo Finance Director Kent Costin; Fargo City Commissioner Tony Gehrig; Moorhead City Councilman Chuck Hendrickson; Cass County Joint Water Resource District Chairman Dan Jacobson; Clay County Auditor/Treasurer Lori Johnson; Moorhead Finance Director Karla McCall; Cass County Auditor Michael Montplaisir; Cass County Commissioner Chad Peterson; and Fargo City Assistant Administrator Michael Redlinger. Cass County Commissioner Rick Steen was present via conference call. Fargo City Commissioner Tony Grindberg; and Fargo City Mayor Tim Mahoney were absent. Kim Daily of Jacobs; Eric Dodds of AE2S; and John Shockley of Ohnstad Twichell were also present.

2. APPROVAL OF MINUTES FROM PREVIOUS MEETING
MOTION, passed Ms. McCall moved and Mr. Peterson seconded to approve the
minutes from the February 27, 2019, meeting as presented.
Motion carried.

3. APPROVAL OF BILLS
Mr. Costin said bills for the month total over $10.5 million. Four sizeable land purchases were included in the Cass County Joint Water Resource District (CCJWRD) monthly billing, in addition to reimbursement requests from the City of Fargo for in-town flood protection work. MOTION, passed
Mr. Montplaisir moved and Mr. Redlinger seconded to approve the bills in the amount of $10,523,705.68, and to forward them to the Metro Flood Diversion Authority. Motion carried.

4. FINANCIAL UPDATE
Mr. Costin reviewed the financial statement for February. About $3.2 million has been expended from the FY 2019 budget, and the total disbursed for the project to date is $456,911,486. The net position is to $90.8 million. MOTION, passed
Mr. Peterson moved and Mr. Jacobson seconded to receive and file the Financial Statement for February as presented. Motion carried.

5. PMC UPDATE
Kim Daily of Jacobs reviewed the Program Management Consultant (PMC) report,
including the overall program status and the FY 2019 cash budget.
MOTION, passed
Mr. Costin moved and Mr. Montplaisir seconded to receive and file the Program Management Consultant Report for February as presented. Motion carried.

6. CONTRACTING ACTIONS
Ms. Daily reviewed the following contracting actions:
Co-Executive Director Approved Task Order Amendments
 Braun Intertec Corporation (Task Order 01, Amendment 04 – Material Testing
Services)—add scope and budget for 47 mobility improvement parcel surveys; and
extend period of performance to December 31, 2019, in the amount of $35,992.
 Houston-Moore Group, LLC (Task Order 15, Amendment 10 – Draft Operations
Plan)—add scope and budget for additional USACE requested modeling and analysis in the amount of $140,360.
 Beaver Creek Archaeology (Task Order 01, Amendment 06 – Phase I Cultural
Investigations)—add scope and budget for Phase I, Class III cultural surveys; and
extend period of performance to December 31, 2019, in the amount of $15,000.
Mr. Peterson asked for more information on the Beaver Creek Archaeology Task Order. Eric Dodds of AE2S was present. Mr. Dodds said rural properties of a certain age are required to have a historical survey completed before acquisition. Ms. Daily said additional information for the task orders can be sent out to committee members for clarification purposes. MOTION, passed
Mr. Montplaisir moved and Mr. Costin seconded to approve the contracting actions as presented, and to forward the recommendation to the Metro Flood Diversion Authority. On roll call vote, the motion carried with Mr. Montplaisir, Mr. Costin, Ms. Johnson, Ms. McCall, Mr. Jacobson, Mr. Hendrickson, Mr. Steen,
and Mr. Redlinger voting “Yes”; Mr. Peterson and Mr. Gehrig
voting “No”.

7. BRAUN INTERTEC 2019 RATE INCREASE
Ms. Daily said Braun Intertec submitted a rate increase request for 2019.The initial
request was greater than 3.5%, but the maximum allowed per their Master Services
Agreement is 3.5% per year. The requested rates are in line with other geo-technical companies.
Mr. Gehrig said he would like to see justification for the requested rate increase before approval. Mr. Peterson agreed and said while he understands inflationary rate increases, he struggles with accepting a flat 3.5% rate increase across the board with no explanation.
Mr. Steen asked if the Co-Executive Directors are comfortable with the requested rate increase. Mr. Redlinger said he is comfortable with the increase as no rate adjustment was sought in 2018 and the requested increase would set rates comparable to peer companies. MOTION, failed for lack of a second Mr. Gehrig moved to deny the Braun Intertec 2019 rate increase request. The motion died due to lack of a second.
MOTION, passed Ms. McCall moved and Mr. Peterson seconded to table the Braun Intertec 2019 rate increase request until justification for the rate increase is provided. On roll call vote, the motion carried with Mr. Montplaisir, Mr. Peterson, Mr. Costin, Ms. Johnson, Ms. McCall, Mr. Jacobson, Mr. Hendrickson, Mr. Steen, and Mr.
Redlinger voting “Yes”; Mr. Gehrig voting “No”.

8. PROPERTY APPRAISAL SERVICES CONTRACTS REPORT
Ms. Daily said appraisal service firms have been contracted through Cass County Joint Water Resource District. The first five appraisal packages have been divided between three firms for locations throughout the channel.
9. REVISED 2019 PROGRAM BUDGET
Mr. Redlinger said a revised 2019 program budget is expected to be presented in April, once the outcome of upcoming litigation activities are known.

10. TASK ORDERS 5 AND 6
Ms. Daily said approval of Task Order 5 will most likely be requested in April, and approval of Task Order 6 will also be forthcoming. Task Order 5 pertains to the continuation of PMC services and Task Order 6 would engage full P3 activities.
Mr. Peterson asked if the Co-Executive Directors have been briefed on the task orders. Mr. Redlinger said yes, there has been a collaborative discussion.

11. OTHER BUSINESS
Amended Cost Share Reimbursement Agreement
Mr. Redlinger said he received an amendment to the cost share reimbursement
agreement between the State Water Commission and the Diversion Authority, for an additional cost share of up to $66,500,000 to reimburse 50% of actual eligible project costs. The amendment will allow expenditures to be coded against this latest installment, which was appropriated during the 2017 legislative session. The signed amendment ensures the funds will be appropriated as legislative intent is not binding to future legislative bodies.
Attorney John Shockley said he will prepare a joint resolution for Fargo, Cass County, and Cass County Joint Water Resource District to designate the Diversion Authority as the approving authority, negating the current process, which requires all three entities to approve each reimbursement request.
MOTION, passed

Mr. Redlinger moved and Mr. Peterson seconded to approve Amendment I to the Agreement for Cost-Share Reimbursement with the North Dakota State Water Commission, and to forward the recommendation to the Metro Flood Diversion Authority. On roll call vote, the motion carried unanimously.
12. NEXT MEETING
The next meeting is scheduled for April 24th at 4:00 PM.

13. ADJOURNMENT
MOTION, passed On motion by Mr. Peterson, seconded by Mr. Gehrig and all in
favor, the meeting was adjourned at 4:30 PM.

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