Diversion Authority Finance Committee – Meeting Minutes from August 26, 2020

Diversion Authority Finance Committee Minutes from August 26, 2020

Diversion Authority Finance Committee
Meeting Minutes
4:00 P.M. - Wednesday, August 26, 2020
Virtual  & In-Person Meeting

1. MEETING TO ORDER

The Diversion Authority Finance Committee held an in-person and virtual meeting on Wednesday, August 26, 2020, at 4:00 PM. The following committee members were present in-person or virtual: Bernie Dardis, West Fargo City Mayor; Dr. Tim Mahoney, Fargo City Mayor; Chad Peterson, Cass County Commissioner; Chuck Hendrickson, Moorhead City Councilman; Dan Jacobson, Cass County Joint Water Resource District Chairman; Kent Costin, Fargo Finance Director; Jim Haney for Lori Johnson, Clay County Auditor/Treasurer; Michael Montplaisir, Cass County Auditor; Michael Redlinger, City of Fargo Assistant Administrator; Rick Steen, Cass County Commissioner and Karla McCall, City of Moorhead Finance Director.

Members absent: and Tony Gehrig, Fargo City Commissioner.

Others present: Joel Paulsen, Executive Director, FM Diversion Authority; John Shockley, Ohnstad Twichell; Eric Dodds, Rocky Schneider and Sadie Moen, AE2S; Martin Nicholson, PGM, Inc., Kris Bakkegard, FMDA Peggy Harter and Paul Barthel, Jacobs.

2.APPROVAL OF MINUTES

MOTION, passed

Mr. Steen moved to approve the minutes from July 2020 and Mr. Hendrickson seconded the motion. Motion carried.

 3.APPROVAL OF BILLS

Mr. Costin reviewed the bills for the month which included reimbursement to Cass County Joint Water Resource District (CCJWRD) for diversion-related bills; Clay County JPA for diversion-related bills; Pleasant Township for building permit application; legal services from Dorsey & Whitney and Ohnstad Twichell, P.C.; reimbursement to Cass County for miscellaneous expenses for the Executive Director.

MOTION, passed

Mr. Jacobson moved, and Mr. Montplaisir seconded to approve bills in the amount of $4,167,309.83 and to forward them to the Metro Flood Diversion Authority Board. On a roll call vote, motion carried.

4.FINANCIAL REPORT

Mr. Costin reviewed the financial report for July. Approximately $34,870,683 has been expended as of July 31, 2020. The total disbursed for the Project to date is $569,548,203. The current net position is $87,835,159. Year-to-date, it is tracking under in the expense category.

MOTION, passed

Mr. Redlinger moved and Mr. Haney seconded to receive and file the Financial Report for July as presented. On a roll call vote, motion carried.

5.EXECUTIVE DIRECTOR FINANCIAL REPORT

Mr. Paulsen reported that the Project continues to trend under budget. Legal fees are on track as projected and lands has expended one-third of the budget with more action anticipated.

Overall, budget is tracking as expected and there are no areas of concern.

6.RECOMMENDED CONTRACTING ACTIONS FOR APPROVAL

Mr. Paulsen reviewed the following contracting actions for approval of the Committee to go to the FMDA Board of Directors for final approval:

AON Risk Services Central, Inc. Task Order 3 – risk management advisory services - $90,000

MOTION, passed

Mr. Steen moved and Mr. Hendrickson seconded to approve the AON Risk Services Central, Inc. Task Order and to forward the to the Authority Board for final approval. On a roll call vote, motion carried.

 7.APPROVED CONTRACTING ACTIONS

Mr. Paulsen reviewed the following Diversion Authority approved contract:

  • AECOM Task Order 2, Amendment 1 – cultural resources investigation, southern embankment & associated infrastructure - $28,206

Mr. Paulsen reviewed the following CCJWRD approved contract:

  • GE Bock Real Estate, LLC Task Order 1, Amendment 4 property appraisal services - $56,890

Mr. Paulsen reviewed the following MCCJPA approved contract:

  • ProSource Technologies, LLC, Task Order 1, Amendment 1 property acquisition and relocation services - $0

8.OTHER BUSINESS

EIDE BAILLY AUDIT RESULTS PRESENTATION

Ms. Jamie Fay of Eide Bailly presented the results of the financial audit for years 2017, 2018 and 2019.

Ms. Fay stated that over 900 transactions were reviewed and the Authority received a “clean” audit opinion. The “clean” audit opinion indicates that the financial statements are prepared using accounting principles generally accepted in the US and that the financial statements do not contain material misstatements and are fairly presented.

Mr. Costin stated that Eide Bailly will be the auditor of record for the next three years.

WIFIA UPDATE

Mr. Shockley brought to the group that a second rating is needed from a national rating agency to close on the WIFIA application.

They are looking to retain Standard & Poor’s at tentative (verbal) reduced fee of $125,000.

The application is currently in the due diligence phase and the intent is that it will close in the next two months.

PROPERTY ACQUISITION STATUS REPORT

Mr. Dodds provided a property acquisition report as follows:

  • Appraisals – No new appraisals approved since June meeting (6/17/2020 – 8/18/2020)
  • Acquisitions – 13 parcels acquired since June meeting (6/17/2020 – 8/18/2020)
Official Letter Formal Offer Invite to CCJWRD Notice of Intent Invite to Cass County Approved Use of LRED
# Sent to Date 12 28 30 23 12
  • Formal Negotiations Process Status Update
  • Cass County Commission has held two public meetings with property owners and authorized CCJWRD to utilize last resort eminent domain
  • Bio/Geo Monitoring Program
  • Access Agreements/ROEs – Secured 366 of 375 to date, beginning appraisal process for remaining easements
  • USACE surveyors are in the field in August
  • Flowage Easement Valuations – Received final Phase 1B Report from Crown Appraisals, Inc.
  • Crop “Insurance” Development – Received final Phase 1 Report from Watts & Associates
  • Outreach Planning – Ready to share information with affected property owners, pending CLOMR

LAND ACQUISITION DIRECTIVE FOR WETLAND RESTORATION PROJECT

The Diversion Authority approved a budget for property acquisitions that is intended to provide a source of funding for acquisition for properties that would ultimately be needed for the Project.

The Land Acquisition Directive (LAD) will serve as a tracking and reporting tool for property acquisitions.

The current property OINs that will be acquired for the Drain 27 Wetland Mitigation and adjacent SE-2 is budgeted at $7,347,000.

RURAL IMPACT MITIGATION PROGRAM: FORGIVABLE LOAN TERM SHEET

We are making progress acquiring the rural properties and finding a comparable property for the owner. There have been a lot of property owners expressing interest in the program of the 24 property owners that are being affected.

NDSWC COST SHARE APPLICATION

The cost-share application and supporting documentation has been submitted to the NDSWC with our current request of $44 million.

The next meeting will be September 30, 2020-rescheduled from September 23.

ADJOURNMENT

MOTION passed

Mr. Montplaisir moved to adjourn the meeting and Mr. Jacobson seconded the motion. Motion carried.

Meeting adjourned at 4:43 pm