Finance Committee Meeting – March 27, 2024

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A regular meeting of the Metro Flood Diversion Authority Finance Committee was held on March 27, 2024. The following members were present: Bernie Dardis, Mayor, City of West Fargo; Susan Thompson, Finance Director, City of Fargo; Rick Steen, Cass County Joint Water Resource District; Shelly Carlson, Mayor, City of Moorhead; Chad Peterson, Cass County Commissioner; Lori Johnson, Clay County Auditor/Treasurer; Mike Redlinger, Administrator, City of Fargo; Tony Grindberg, Cass County Commissioner; Dave Piepkorn, Fargo City Commissioner; Mike Rietz, City of Moorhead Assistant City Manager and Brandy Madrigga, Cass County Finance Director.

Member(s) absent: Dr. Tim Mahoney, Mayor, City of Fargo.

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 FEBRUARY 2024 MEETING

MOTION PASSED

Mr. Grindberg moved to approve the minutes from the February 2024 meeting and Mr. Peterson seconded the motion. On a voice vote, the motion carried.

3. APPROVE ORDER OF THE AGENDA

MOTION PASSED

Mr. Peterson moved to approve the order of the agenda as presented and Mayor Carlson seconded the motion. On a voice vote, the motion carried.

4. APPROVAL OF BILLS

Ms. Thompson reported that the bills payable through March 19, 2024, total $3,262,696, and are payable to the usual vendors, with Clay County being the largest at $2,004,211.

MOTION PASSED

Mr. Grindberg moved to approve the bills as presented and Mr. Piepkorn seconded the motion. On a roll call vote, the motion carried.

5. FINANCIAL REPORT

Ms. Thompson reported that the total assets as of February 29, 2024, are $253,908,216; liabilities total $163,797, and the current net position is $253,744,419.

MOTION PASSED

Mr. Peterson moved to approve the financial report as presented and Mayor Carlson seconded the motion. On a voice vote, the motion carried.

6. EXECUTIVE DIRECTOR FINANCIAL REPORT

Mr. Nicholson reported that revenues for the month total $3,861,000, and $9,182,000 in revenues have been received fiscal year-to-date. Actual costs to date are $1,047,000, with a 2024 fiscal year total of $17,393,422. The operations budget costs are $267,327 to date with a remaining balance of $1,382,673.

7. DA BOARD APPROVAL CONTRACTING ACTIONS

Mr. Nicholson provided an overview and summary of the following contracting actions:

a. JT Lawn Services – $250,714

Task Order 1, Amendment 0 – Mowing and Weed Control Services – This is a new task order for mowing and weed control services that are required on several MFDA owned properties for 2024.

b. Minnkota Power Cooperative, Inc. – $263,000

Task Order 6, Amendment 0 – Utility Relocation – This task order will include the relocation of the Minnkota Oxbow Substation diesel generators to the Minnkota Colfax Substation. This work is scheduled to be completed by September 30, 2024.

MOTION PASSED

Mr. Peterson moved to approve both contracting items as presented, and Mayor Carlson seconded the motion. On a roll call vote, with only Mr. Grindberg voting “nay”, the motion carried.

8. MOUs and AGREEMENTS

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

CapX & MFDA Encroachment Agreement

This agreement authorizes the Authority to access easements owned by the CapX 2020 project partners. Access includes the ability to operate construction machinery beneath the CapX 2020 project infrastructure and to construct the drainage and borrow ditches for Reach SE-4 of the Comprehensive Project. Design and construction of the remainder of Reach SE-4 on the CapX 2020 project easements will be set forth in a MURA.

MOTION PASSED

Mr. Peterson moved to approve the CapX agreement as presented, and Mr. Piepkorn seconded the motion. On a roll call vote, the motion carried with Mr. Grindberg abstaining from voting.

9. OTHER BUSINESS

a. WP 47B Bid Award

Mr. Bakkegard provided an update on WP 47B. The Work Package was publicly advertised, and four bids were received at the bid opening on February 29, 2024.

The engineer’s estimate for the project was $2,896,859, and it is their recommendation to award the bid to Sellin Brothers, Inc., in the amount of $1,749,847, the lowest responsive bidder.

MOTION PASSED

Mayor Carlson moved to award the bid to Sellin Brothers, Inc., in the amount of $1,749,847, and Mr. Piepkorn seconded the motion. On a roll call vote, the motion carried.

b. Payment of Condemnation & Acquisition of Funds to the MCCJPA

Mr. Shockley provided an overview of the above-referenced document for information only.

The Authority is the entity responsible for reimbursing the MCCJPA for property acquisition costs associated with the Project. Due to timing constraints, the Fiscal Agent (the City of Fargo) was directed pursuant to the Master Indenture of Trust to provide Clay County and Moorhead funds sufficient to make the necessary deposits for eminent domain filings as well as expected closing costs to occur by the end of March 2024. These costs were required to be paid as part of the court process and this memo is being provided to explain the transfers. The expense for the deposits was anticipated and approved as part of the Authority’s 2024 Cash Budget.

The Metro Flood Diversion Authority Finance Committee and Board will receive and file this memo regarding the funding reimbursement to both the City of Moorhead and Clay County, MN (collectively the MCCJPA) for the following amounts:

• City of Moorhead = $610,470 for eminent domain filings
• Clay County = $8,076,239 for eminent domain filings
• Clay County = $3,340,000 for expected closings by the end of March 2024

10. NEXT MEETING

The next meeting will be April 24, 2024.

11. ADJOURNMENT

The meeting adjourned at 4:25 PM.