Diversion Authority Finance Committee Meeting Minutes
September 30, 2020
Finance Committee Meeting Minutes
Diversion Authority Finance Committee
4:00 P.M. – Wednesday, September 30, 2020
City Hall Chambers
- MEETING TO ORDER
The Diversion Authority Finance Committee held an in-person and virtual meeting on September 30, 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; Tony Gehrig, Fargo City Commissioner and Karla McCall, City of Moorhead Finance Director.
Others present: Joel Paulsen, Kris Bakkegard and Martin Nicholson, FM Diversion Authority; John Shockley, Ohnstad Twichell; Eric Dodds, 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. Steen moved to approve the minutes from August 2020 and Mr. Hendrickson seconded the motion. Motion carried.
- 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; legal services from Dorsey & Whitney, Ohnstad Twichell, P.C. and Eric Johnson; reimbursement to 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 $6,604,359.63 and to forward them to the Metro Flood Diversion Authority Board. Motion carried.
- FINANCIAL REPORT
Mr. Costin reviewed the financial report for August. Approximately $39,544,196 has been expended as of August 31, 2020. The total disbursed for the Project to date is $574,221,716. The current net position is $89,196,901. Year-to-date, it is continuing to track comfortably under budget.
Mr. Steen moved and Mr. Redlinger seconded to receive and file the Financial Report for August as presented. Motion carried.
- EXECUTIVE DIRECTOR FINANCIAL REPORT
Mr. Paulsen reported that the Project continues to trend under budget. Legal fees are on track as projected with more action anticipated.
- RECOMMENDED CONTRACTING ACTIONS FOR APPROVAL
Mr. Paulsen reviewed the following contracting actions for approval of the Committee to go to the FMDA Board of Authority for final approval:
- Beaver Creek Archeology MSA, Amendment 1 – $0
- WP-50C (Property Structure Mitigation) – $313,265.00
- WP-43G (OHB Wetland Mitigation) – $2,326,992.44
- CCEC Utility Relocation Agreement – $44,500.00
- Houston Moore Group TO 30, Amendment 5 – $220,500.00
- BNSF Preliminary Engineering Agreement – $60,000.00
Mr. Hendrickson asked what the Cass County Electric CO-OP agreement entailed. Mr. Paulsen replied that it was to relocate one of their power lines near the Wild Rice River Control Structure.
Mr. Steen asked about the HMG TO 30, Amendment 5, questioning if this amendment amount falls within their original contracting amount. Mr. Paulsen replied that it is within the program budget and each Amendment under this Task Order is new property mitigation work that requires removal of additional structures.
Mr. Costin asked about the wetland mitigation project and asked why it is required and if there will be more wetland mitigation projects outside of this one. Mr. Paulsen responded that it is to mitigate any mapped wetlands that will be disturbed as part of the program and that this is a requirement. He noted that there are other wetland mitigation projects coming up with the next being the Drain 27 Wetland Mitigation project that is being led by the USACE.
Ms. McCall moved and Mr. Jacobson seconded to approve the recommended contracting actions and to forward the to the Authority Board for final approval. On a roll call vote, motion carried.
- APPROVED CONTRACTING ACTIONS
Mr. Paulsen reviewed the following Diversion Authority approved contracts:
- Braun Intertec TO 1, Amendment 7- Test Services – $38,345.00
- Beaver Creek TO 1, Amendment 7 – Phase 1 Cultural Resources Investigation – $84,203.20
- HMG TO 20, Amendment 6 – SEAI Design Services – $145,352.00
Mr. Paulsen reviewed the following CCJWRD approved contract:
- Compass TO 4, Amendment 0 – Appraisals on Environmental Monitoring Parcels – $228,650.00
Mr. Paulsen reported that there are no MCCJPA contract approvals.
- OTHER BUSINESS
Mr. Paulsen has submitted the 2021 program budget as required by the JPA to have it submitted in October. The total budget is $184,000,000.
Mr. Steen asked about the change in debt service from 2019, 2020 and proposed for 2021 as it continues to drop. Paul Barthel noted that we will be continuing to reduce the service debt so yes, it will continue to drop.
Mr. Shockley provided a WIFIA update noting that it is about 60 days away from closing on the underwriting and then the interest rate and closing date will be determined. The committee questioned if there was anything that could interrupt or delay the process. Mr. Shockley replied that once the term sheet is issued, all that is needed is for the DA to sign off. It goes to the office of OMB for final approval, but we already have pre-approval. The EPA wants to close this fiscal year. Mr. Shockley noted that he was 99% certain it would go through.
LAND ACQUISITION DIRECTIVE FOR WETLAND RESTORATION PROJECT
Mr. Dodds addressed the three Land Acquisition Directives (LAD) and asked for approval from the Board of Authority. They are as follows:
- Red River Control Structure Attachment 05.00 – $1,100,000
Mr. Montplaisir made a motion to approve LAD-00035 and Mr. Costin seconded the motion. On a roll call vote, the motion carried.
- Red River Control Structure Attachment 06.00 – $703,000
Mr. Hendrickson made a motion to approve LAD-MN-001 and Mr. Montplaisir seconded the motion. On a roll call vote, the motion carried.
- Drain 27 Wetland Mitigation Attachment 07.00 – $1,861,000
Mr. Costin made a motion to approve LAD-00027 and Mr. Steen seconded the motion. On a roll call vote, the motion carried.
The next meeting will be October 21, 2020.
MEETING ADJOURNED at 5 pm.