Diversion Authority Finance Committee
Meeting Minutes from October 21, 2020
Diversion Authority Finance Committee Meeting Minutes
4:00 PM – Wednesday, October 21, 2020
- MEETING TO ORDER
A virtual meeting of the Diversion Authority Finance Committee was held on October 21, 2020, at 4:00 PM. The following committee members were present: Bernie Dardis, Mayor, City of West Fargo; Dr. Tim Mahoney, Mayor, City of Fargo; Chad Peterson, Cass County Commissioner; Chuck Hendrickson, Moorhead City Councilman; 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: Dan Jacobson, Cass County Joint Water Resource District Chairman; Kent Costin, Fargo Finance Director and Tony Gehrig, Fargo City Commissioner.
Others present virtually: Joel Paulsen, Kris Bakkegard and Martin Nicholson, FM Diversion Authority; John Shockley, Ohnstad Twichell, P.C.; Eric Dodds, Tammy Jo Taft, Sadie Moen and Rocky Schneider, AE2S; Peggy Harter and Paul Barthel, Jacobs; Gregg Thielman HMG; Matt Stamness and Robert Wilson, Cass County and Nathan Boerboom, City of Fargo.
- APPROVAL OF MINUTES
Mr. Peterson moved to approve the minutes from September 2020 and Mr. Steen seconded the motion. Motion carried.
- APPROVAL OF BILLS
Mayor Dardis reviewed the bills for the month which included reimbursement to Cass County Joint Water Resource District (CCJWRD) for diversion-related bills; legal services from Dorsey & Whitney and Ohnstad Twichell, P.C.; Clay County for MCCJPA bills; Marsh & McLennan Agency for general liability insurance premium and Cass County for miscellaneous expenses for the Executive Director and staff.
Mr. Steen moved and Mr. Redlinger seconded to approve bills in the amount of $8,101,957.81 and to forward them to the Metro Flood Diversion Authority Board. On a roll call vote, the motion carried.
- FINANCIAL REPORT
Mr. Montplaisir reviewed the financial report for September. Cumulative expenditures are $583,664,850 and cumulative revenues are $668,359,771. Total 2020 expenditures are $48,987,330 and total revenues are $35,973,609. The current net position as of September 30, 2020, is $84,694,922. We continue to track under budget.
Mr. Steen moved and Mr. Montplaisir seconded to receive and file the Financial Report for September as presented. On a roll call vote, the motion carried.
- EXECUTIVE DIRECTOR FINANCIAL REPORT
Mr. Paulsen reported that the Project continues to trend under budget and the actual expenditures to date are $583,660,000. Legal fees are on track as projected with more anticipated.
Mayor Dardis asked for an update from the City Engineering Department regarding the funds that will be needed for the 37 foot projects that will take place next year. Mr. Paulsen indicated that he is working on a resolution and it should be ready to go to the Board in the coming months and Mr. Boerboom stated that a budget has been prepared by the City Engineering Department.
Mr. Paulsen asked the Committee to consider suspending the cash budget review until December due to the outstanding appraisals that should be finalized by year-end.
Mr. Steen made a motion to recommend to the Board of Authority to suspend the cash budget review until December 31st, 2020. Dr Mahoney seconded the motion and on a roll call vote, the motion carried.
- RECOMMENDED CONTRACTING ACTION FOR APPROVAL
Mr. Paulsen reviewed the following contracting action for approval from the Committee to go to the Board of Authority for final approval:
- HMG – Task Order 17, Amendment 10 – Services During Construction & On-Call Services for Work Package 42 – $255,000.00
Mr. Steen moved and Mr. Hendrickson seconded to approve the recommended contracting action and to forward to the Board of Authority for final approval. On a roll call vote, the motion carried.
- APPROVED CONTRACTING ACTIONS
Mr. Paulsen reviewed the following Diversion Authority approved contracts:
- Braun Intertec -Task Order 1, Amendment 8 – Material Testing Services for Pre-Demolition Hazardous Building Materials Inspections – $28,875.00
- Beaver Creek Archaeology – Task Order 1, Amendment 9 – Cultural Resources Investigation – $28,600.00
- Houston Moore Group – Task Order 23, Amendment 4 – Services During Construction for Work Package 43 – $46,745.00
- Houston Moore Group – Task Order 26, Amendment 6 – Work-in-Kind for SEAI Design Reviews – $50,000.00
- Houston Moore Group – Task Order 30, Amendment 4 – WP-50A SDC Property Structure Mitigation – Design, Bidding, and Services During Construction – $15,000.00
Mr. Paulsen reviewed the following CCJWRD approved contracts:
- Patchin Messner – Task Order 4, Amendment 0 – Appraisal Services for Appraisal Package #15 – $54,500.00
- Crown Appraisals, Inc. – Task Order 3, Amendment 0 – Appraisal Services $15,000.00
Mr. Paulsen reviewed the following MCCJPA approved contract:
- Compass Land Consultants, Inc. – Task Order 2, Amendment 0 – Appraisals of the Environmental Monitoring Easements in Minnesota – $86,750.00
- OTHER BUSINESS
Mr. Shockley reviewed the Dakota Carrier Network MOU and asked the Finance Committee for approval to forward to the Board of Authority for final approval. The MOU is required to relocate utilities across the channel. There will be a significant amount of these agreements forthcoming.
Mr. Peterson questioned if these MOUs were primarily housekeeping and if it was necessary to go into detail with of them. Mr. Shockley indicated that they are mostly technical jargon and either Mr. Shockley or Mr. Nicholson answer any questions.
Mr. Steen made a motion to present the MOU to the Board of Authority for final approval and Dr. Mahoney seconded the motion. On a roll call vote, the motion carried
Mr. Shockley indicated that he is waiting on the term sheet that will lock in the interest rate of the loan. He is hoping to have the rate available by the Board of Authority meeting.
STATE WATER COMMISSION AGREEMENTS COST-SHARE REIMBURSEMENT
Cost-Share Reimbursement for the Fargo Moorhead Metro Area Flood Risk Management Project rescind both the July 2016 Cost-Share Reimbursement Fargo Flood Control Project 2015-2017 Agreement in the amount of $69,000,000 and the March 2019 Amendment I to the July 2016 Agreement in the amount of an additional $66,500,000, and replace them with two separate Agreements for the cost-share dollars remaining under each of those specific approvals by the State Water Commission.
The first Agreement provides the Authority with cost-share of $23,358,530.63, the amount remaining of the previous Agreement for $69,000,000 as authorized under section 8 of S.B. 2020, 2015 Leg. This Agreement provides for reimbursement of eligible costs incurred after July 1, 2015 with specific limitations on the costs that are eligible for reimbursement.
The second Agreement provides the Authority with cost-share of $59,850,000, the amount remaining of the previous Amendment I for $66,500,000 as approved by the Commission on February 14, 2019 and authorized under section 9 of S.B. 2020, 2015 Leg. This Agreement provides for reimbursement of eligible costs incurred after July 1, 2017, with eligible costs as outlined in Commission’s cost-share policy.
Mr. Steen made a motion to present the Cost-Share Agreement to the Board of Authority for final approval and Mr. Hendrickson seconded the motion. On a roll call vote, the motion carried.
The November 18, 2020, meeting will be virtual.
Meeting adjourned at 4:47 pm.