Finance Committee Meeting – April 26, 2023

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A regular meeting of the Metro Flood Diversion Authority Finance Committee was held on April 26, 2023. The following members were present: Bernie Dardis, Mayor, City of West Fargo; Dr. Tim Mahoney, Mayor, City of Fargo; Chad Peterson, Cass County Commissioner; Lori Johnson, Clay County Auditor/Treasurer; Mike Redlinger, Administrator, City of Fargo; Dave Piepkorn, Fargo City Commissioner; Shelly Carlson, Mayor, City of Moorhead; Rick Steen, Cass County Joint Water Resource District and Brandy Madrigga, Cass County Finance Director.

Member(s) absent: Terri Gayhart, City of Fargo Finance Director and Mike Rietz, City of Moorhead Assistant City Manager.

 1. CALL TO ORDER

Mayor Dardis called the meeting to order at 4:00 PM. Roll call was taken, and a quorum was present.

2. APPROVE MINUTES FROM THE MARCH 2023 MEETING

MOTION PASSED

Mayor Mahoney moved to approve the minutes from the March 2023, meeting and Mr. Peterson seconded the motion. On a voice vote, the motion carried.

 3. APPROVE ORDER OF AGENDA

MOTION PASSED

Mayor Mahoney moved to approve the order of the agenda and Mr. Steen seconded the motion. On a voice vote, the motion carried.

 4. APPROVAL OF BILLS

Mr. Papenfuss reported that the bills payable as of April 19, 2023, total $6,871,312 and are payable to the usual vendors, CCJWRD, Ohnstad Twichell, Clay County, City of Fargo, City of Christine and Cass County. AON Risk Services was the largest payable at $5,448,765 for general and excess liability coverage.

MOTION PASSED

Mayor Mahoney moved to approve the bills as presented and Mr. Steen seconded the motion. On a roll call vote, the motion carried.

5. FINANCIAL REPORT

Mr. Papenfuss reported that we have $166,223,715 in assets, $360,056 in liabilities and the current net position is $165,863,660.

 6. EXECUTIVE DIRECTOR FINANCIAL REPORT

Mr. Paulsen reported that the sales tax revenue is being received as expected and was the only revenue received this month. The overall budget is $2.8 billion and $923.8 million is the actual cost to date. The operations budget continues to track on target and there are no issues or concerns.

a. 2023 CASH BUDGET CHANGE REQUEST

Mr. Paulsen requested an increase of $60,000 to cover the 2021/2022 O&M reimbursement costs due to the City of Fargo.

MOTION PASSED

Mr. Steen moved to approve the cash budget change request and Mr. Piepkorn seconded the motion. On a roll call vote, the motion carried.

 8. CONTRACTING ACTIONS

a. DA Board Approval Contracting Action

Mr. Paulsen provided an overview of the following contracting action:

• AECOM Master Services Agreement – Consulting Services – Renew Master Services Agreement to perform cultural resource investigations. Extend period of performance to April 30, 2026 – $0.00.

MOTION PASSED

Mayor Mahoney moved to approve the contracting action as presented and Mr. Peterson seconded the motion. On a roll call vote, the motion carried.

 9.  MOUs and AGREEMENTS

Mr. Shockley provided an overview and summary of the following funding agreement and MOU:

• BRRWD Lower Otter Tail River Restoration Project & MFDA Funding Agreement
  MDNR Permit Condition No. 27
  This agreement applies to the MDNR’s Dam Safety & Public Waters Work Permit (Permit Number 2018-0819) authorizing construction of the Comprehensive FM Area Diversion Project. Specifically, Permit Condition 27 pertains to environmental mitigation that must be completed by the MFDA and in part discusses the responsibilities to provide partial funding of the Lower Otter Tail River Restoration Project (LOTRRP). The Authority is required under this agreement to remit $8.28 Million to the BRRWD for the LOTRRP. This cost was included both within the program budget and approved as part of the 2023 Cash Budget.
• Raymond Township & MFDA MOU
  SWDCAI

The MOU addresses design, construction, operating and maintenance, future changes or additions, etc. in respect to any impacts that the Fargo-Moorhead Metropolitan Area Flood Risk Management Project will have on township roadways. Design, construction, and maintenance costs will be covered by the Developer through the Project Agreement. Reimbursement includes the following: Construction costs and expenses up to $3,000 annually from the effective date until project substantial completion; post-construction costs and expenses up to $1,500 annually after project substantial completion; a lost tax revenue payment of $4,360 (this will be divided into ten equal payments and paid out annually over ten years); and a $30,000 payment for fire protection funds.

MOTION PASSED

Mayor Mahoney moved to approve the funding agreement and MOU together and Ms. Madrigga seconded the motion. On a roll call vote, the motion carried.

 10. OTHER BUSINESS

There was no other business to report.

11. NEXT MEETING

The next meeting will be May 24, 2023.

 12. ADJOURNMENT

The meeting adjourned at 4:21 PM.