MFDA Finance Committee Meeting – February 26, 2025

See full minutes.

A regular meeting of the Metro Flood Diversion Authority Finance Committee was held on February 26, 2025. Members present: Brandy Madrigga, Cass County Finance Director; Dr. Tim Mahoney, Mayor, City of Fargo; Bernie Dardis, Mayor, City of West Fargo; Dave Piepkorn, Fargo City Commissioner; Susan Thompson, Finance Director, City of Fargo; Lori Johnson, Clay County Auditor/Treasurer; Mike Redlinger, Administrator, City of Fargo; Mike Rietz, Assistant City Manager, City of Moorhead; Rick Steen, Cass County Joint Water Resource District; Jim Kapitan, Cass County Commissioner and Tony Grindberg, Cass County Commissioner.

Member(s) absent: Shelly Carlson, Mayor, City of Moorhead.

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 THE ORDER OF THE AGENDA

MOTION PASSED

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

3. APPROVE THE MINUTES FROM THE JANUARY 2025 MEETING

MOTION PASSED

Mr. Grindberg moved to approve the minutes from the January 2025 meeting and Mr. Steen seconded the motion. On a voice vote, the motion carried.

4. APPROVAL OF BILLS

Ms. Thompson reported that the bills payable through February 19, 2025, total $2,809,184, and are payable to the usual vendors, with CCJWRD being the largest at $1,387,778 and the City of Fargo being the second largest at $930,947.

MOTION PASSED

Mr. Steen moved to approve the bills as presented and Mr. Kapitan seconded the motion. On a voice vote, the motion carried.

 5.  FINANCIAL REPORT

Ms. Thompson reported the total assets as of January 31, 2025, are $321,981,885; liabilities total $36,250, and the grand total net position is $321,945,635.

MOTION PASSED

Mr. Steen moved to approve the financial report as presented and Mr. Kapitan seconded the motion. On a voice vote, the motion carried.

6. CASH BUDGET REPORT

Mr. Barthel reported that Legacy Funds received in January 2025, totaled $11,770,000, and he indicated that another request has been submitted. Sales tax receipts reflect revenues received in November 2024, totaling $6,232,000. Revenues received to date total $27,214,000. The $1,650,000 operations budget is tracking as projected for the month of January.

7. MOUs AND AGREEMENTS

Mr. Shockley provided an overview and summary for the following MOUs and Agreements:

a. Wilkin County & MFDA MOU

This MOU describes the roles and responsibilities of Wilkin County and the Authority for the SEAI and the UMA. The property interests held by the County in the locations where USACE will construct Reaches SE-4 and SE5. The County holds real property interests in the UMA, a portion of which authorize it to operate and maintain County roads. Although County Road 30, County Road 50, and County Highway 190 have experienced flooding prior to the Effective Date, Comprehensive Project Operation may result in additional temporary and periodic flooding in those areas. The County authorizes the Authority to add additional water to the County’s roads, structures, and the Wilkin County Parcels temporarily and periodically in accordance with the terms and conditions of this MOU and will execute a flowage easement. The Authority will reimburse Wilkin County for expenses incurred under the MOU. The MOU additionally sets forth the roles and responsibilities of the parties for pre- and post-operation of the Comprehensive Project. The Authority will reimburse Wilkin County for repairs and clean-up work resulting from Comprehensive Project operation.

b. SECWRD & MFDA MOU AMENDMENT

This MOU amendment further defines the roles and responsibilities of the Metro Flood Diversion Authority and the Southeast Cass Water Resource District for District facilities that are impacted by the comprehensive Project. In particular, the MOU amendment covers drain transitions, the relocation of a culvert on Drain 51, operation of the Comprehensive Project, and the demolition and removal of a railroad bridge over the Sheyenne River. The District is responsible for designing and constructing the drain transitions and for completing demolition and removal of the railroad bridge. The Authority is responsible for designing and constructing the culvert relocation and will reimburse the District for its work.

c. Warren Township & MFDA MOU

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; attorney and engineering fees of $16,000; a lost tax revenue payment of $47,066; and costs to be determined for a mobility improvement project.

d. MDU, Sauvageau & MFDA Termination of Agreement

The MFDA, Montana-Dakota Utilities Co. (MDU), and Joseph Sauvageau entered into a MOU dated September 28, 2023. The project identified within the MOU was to provide gas service to the Joseph Sauvageau relocation site. This letter serves as official notification to the parties to terminate the MOU. MFDA has executed a separate agreement and task order with Xcel to provide gas service to the Sauvageau relocation site at a lower cost.

MOTION PASSED

Mayor Mahoney moved to approve all the MOUs and agreements as presented and Mr. Kapitan seconded the motion. On a roll call vote, the motion carried.

8. DA BOARD APPROVAL CONTRACTING ACTIONS

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

a. JT Lawn Services and Landscaping, LLC – $449,303

Task Order 02, Amendment 0 – mowing and weed control services. Provide mowing and weed control services for the 2025 season.

b. Network Center, Incorporated – $31,375

Services Agreement, Amendment 0 – Diversion Authority – IT Services. Provide IT services to the Diversion Authority from March 1, 2025, through February 28, 2026. Services include, onboarding, remote support, cloud management, product licenses and access to training videos.

c. Marco Technologies – $0

Notice of Termination. Provide 30-day written Notice of Termination for IT services effective April 1, 2025.

MOTION PASSED

Mr. Steen moved to approve the contracting actions as presented and Mr. Piepkorn seconded the motion. On a roll call vote, the motion carried.

9. OTHER BUSINESS

a. 2025 Consultant Rate Increase

Mr. Benson reported that an increase of 3% will be applied, across the board, to all consultant contracts, regardless of hire/origination date.

b. WIFIA Update

Mr. Shockley reported that the MFDA is not currently paying interest on the WIFIA loan; draws will be starting in either Q3 or Q4 of 2025 and the interest rate will be 2.08%.

10. NEXT MEETING

The next meeting will be on March 26, 2025.

11. ADJOURNMENT

The meeting adjourned at 4:25 PM.