Committee Minutes

MINUTES/PUBLIC SERVICE COMMITTEE
Monday, June 26, 1995 - 7:00 p.m.

Members present: Hagness, Beyer, Hamerlik, Klave.

1. Public hearing on southend drainage study.
Copies of the Executive Summary of the Southend Grand Forks Drainage System prepared by CPS, Ltd. were available to the public. The proposed storm water drainage system will provide drainage for south Grand Forks from the Red River of the North to I-29 and 32nd Avenue South to 62nd Avenue South; with project beginning at the Red River of the North one-half mile south of 47th Avenue South and to run westerly across Belmont Road and South Washington, along the south side of Ulland Park to Columbia Road, then north to 47th Avenue South and then west to I-29.
The project will be constructed in three phases; once the project concept and preliminary design have been approved, right of way acquisition will begin on Phase I (Red River to South Washington Street). (Phase II is from Washington to Columbia Road; Phase III from Columbia Road to I-29 ditch)

Chairman Hagness reported that procedure that will be followed is to hold the public hearing and enter comments into the record for the public service committee, who will then make recommendation either to approve the concept and forward to the full council for their consideration or hold for further study and input. He also suggested that those individuals who had concerns and questions which they are unable to answer tonight visit with the engineering staff and consultant to have their concerns addressed.

Chairman Hagness called for the public hearing on the southend drainage ditch, and asked for comments and/or questions. He stated that this matter has been before public service committee for several years, that they have considered it carefully because of cost, length of ditch, etc.; however, if development is to continue to the south this drainage project needs to be done. He also stated they will try to make as compatible with neighborhoods as possible, that in some areas houses will back up to the ditch, and that box culverts will be installed from Chestnut to Belmont to take care of the drainage.
The following individuals had comments and or questions:

a) Jerry O'Connor, 4910 Chestnut Street, stated it was their understanding that there would be no floodgates installed in ditch to prevent backup, when have flooding problem and water backing up and standing water, which is ground pressure that puts water into their basements, and questioned why they don't need or can't have floodgates. Mr. Grasser reviewed matter of flooding in the spring when ground still frozen, tight soils, and expense.
b) Herb Helgeson, 324 52nd Avenue South, asked for explanation on how project funded.

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Ken Vein, city engineer, stated that the entire ditch will be constructed in three phases; first phase from River to S. Washington, second phase to Columbia Road, and third phase from Columbia Road to the Interstate ditch; that the City will sell bonds for the first phase; that there is money budgeted in 1995 for R/W acquisition, and will budget for 1996 for construction; and also using Infrastructure funds available; with bonds paid off through stormwater utility charge on city-wide basis. He stated there will be tapping charges assessed for new development but don't have figures available directly attributable to paying for this. Mr Grasser stated they will recoup costs through tapping charges.

c) Tom Samson, 5316 Belmont Road, asked how existing ditches tie in. Mrs. Beyer stated that elevation of ditch bottom now is not the same as southend drainage ditch, so when flood water backs up, going to be better drainage.

e) Jim Eck, 5512 Belmont Road, stated he would strongly recommend installation of flood gates so don't have water backing up in ditches - would like to see floodgates in ditch or drain that goes under Belmont.

f) John Botsford, rep. property owners at west end of the project; their concern is that the drain happens to cut through center of their property, and asked if other routes considered.
Gary Sanders stated that development will determine how and when done.

g) Dieter Heitmann, All Seasons, would like to see more detailed plans with roads and bridges projected in the area. Mr. Sanders reviewed matter and stated there would be box culverts at all locations.

Mr. Vein reported that when project constructed, phase by phase, 80% of construction cost will come from Infrastructure Fund (sales tax monies available for infrastructure) 20% of the cost from the utility fund based on sq. ftg.of lot, city-wide fund; that would finance original construction of the project; then as the areas adjacent to the ditch develop, they would be assigned a tapping charge, which will cover and repay the City for the cost of the upfront financing of the project. Mr. Grasser stated that in his opinion with storm sewer on Chestnut Street, they are providing system that functions without the southend drainage ditch, and in his opinion would be of no benefit to that area. He also noted that the council will determine based on engineering department recommendations (tapping fees do not go to the Special Assessment Commission). Mr. Vein stated that the 80% from the Infrastructure Fund would be 100% recovered through a tapping fee and the 20% from the utility fund, quite possibly not. He stated that policy of pay-back has not been approved by

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council; that financing and setting up of tapping charges and determining the amount of pay-back and benefitting area hasn't been set yet.

Mr. Sanders stated that cost of Phase I, $2.4 Million, total $8.7 Million and if spread that amount over area benefitted cost 3 1/2 cents sq.ft.

Mr. Myerchin stated it was his understanding that part of the need for this is because of golf course and baseball fields; Mr. Vein stated could be benefit to them but that's not reason - that this ditch planned before they even knew there was going to be a park.

Mr. Hagness recognized Grand Forks County Drainage Board who were present; Mr. Eckness stated they were glad City doing something, but that going all way to County Drain 4 not necessary.

h) Gary Stadstad, RR2, farms land, asked what time frame is.
Mr. Vein stated they do not have time frame, first phase to S. Washington Street, and from there on as development proceeds to the south they will extend farther to the west, don't know at this time. Mr. Stadstad asked if any assessment to farmland. Mr. Vein stated only assessment they will pick up is as areas develop and are within the city limits.

i) Georgia Heitmann, 5101 S. Washington, asked how this will financially affect their property. and stated they would hope there would be some consideration for timing, that they do about 40% of business in the month of May and would not like to see road gone in the month of May, and would like that on public record that there be some consideration when comes to timing.

Mr. Vein stated that now they are not within the city limits, and until such time as they would come within city limits or use for drainage, shouldn't impact them financially.

j) John Staley, 5424 Chestnut Street, questioned whether it is recommendation of the engineering department that people on Chestnut who are getting the storm sewer would not benefit from this ditch and most likely not assessed. Mr. Grasser stated that it was his opinion ditch would have no benefit and will express that to committee, council and Commission. Mr. Staley also stated that there is nothing in report re. long term maintenance, and questioned cost of maintenance. Mr. Grasser stated that they will put in underground pipe - 36", that will run underneath to drain water out and keep ditch dry. Mrs. Beyer stated there will be catch basins in the ditch to clean out silt, etc.

Chairman Hagness closed the public hearing.

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Beyer and Klave moved preliminary approval of the project concept.

There was some discussion by the committee; and it was noted that the next step would be R/W for phase I, to start negotiating with property owners, then plans and specs. stage; cost depending on how acquire (park dedication, credit to the owner, etc.), if pay going rates, if buy area of the l0-year plan or top to top; council and engineering have to make some decisions, bike paths encompassed, to determine what R/W needs will be. He stated they are looking at construction about same time as South Washington Street reconstruction, because of natural drainage into that area if not intercepted; S. Washington Street reconstruction scheduled for 1997. Mr. Vein stated that once concept approved. look at R/W acquisition and start concept design, and then final design and bid for construction in early of 1996. Mr. Grasser stated that they will be coming back to committee and council on recurring basis.

Mrs. Beyer stated that this is the second public hearing on this issue, and is in favor of approving concept so can get started. It was also noted that R/W would be acquired in phases.

Upon call for the question, the motion carried.

Mr. Sanders informed committee and people in the audience that if anyone wanted to meet with him, Mr. Weiland and/or Mr. Grasser, they would be happy to do so.

2. Applications for moving permits.
a) Nadine Gerszewski to move building from 519 Belmont Road to
2202 11th Avenue North to be used as garage.
b) Thomas R. Mathues to move building from 1008 South 11th Street to 1010 South 11th Street to be used as garage.
Bruce Melin, building inspector, recommended approval of the applications. Moved by Beyer and Klave to approve applications subject to the public hearings. Motion carried.

3. Matter of encroachments into public right of way:
a) 1970 32nd Ave.S., Amoco Station (Dusterhoft Oil Co.)
Loren Dusterhoft stated they have sign which encroaches into City property and Mr. Melin reported they are about l.5 ft. into the R/W. Moved by Beyer and Klave to authorize entering into an encroachment and hold harmless agreement. Motion carried.

b) 1712 N. 6th St. (Lot 2, Blk. 3, Skidmore Addn.)
Ken Althoff appeared and stated that he is in the process of selling his property, that when house built it was built on City right of way - 6" into R/W. Moved by Klave and Beyer to

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authorize entering into an encroachment and hold harmless agreement with the property owner and further that this agreement be filed with the Register of Deeds so that future property owner(s) would be aware of the encroachment. Motion carried.

4. Matter of substandard building at 615 S. 5th Street.
Mr. Melin reported that the property owner was here at start of meeting but became ill and left. Moved by Beyer and Klave to hold until the next meeting. Motion carried. (Comm. only)


5. Matter of various easements:
a) utility and roadway easement for Watermain Proj. 4214.
Mr. Vein reported easement at 11th Avenue South and S. 40th Street for $1.00, and that work has already been done. Moved by Beyer and Klave to approve the easements and authorize proper City officials to sign said easements. Motion carried.

b) request to discontinue dedicated E/W alley right of way between Cottonwood and Cherry Sts. and between 9th and 10th Aves.S) and to deed back to adj. properties.
Mr. Lambrecht reported it would seem appropriate to declare as surplus property and offer for sale, with right to reject any offers; and if offer for sale retain easements as requested in letter from Northern States Power Company dated June 12, 1995.
and for overhead cable t.v. lines.

Moved by Beyer and Hamerlik to declared the property as surplus and advertise for sale. Motion carried.

6. Matter of financial assurance for landfill closure and post- closure costs.
John Schmisek, city auditor, and Mark Lambrecht, asst. dir. of public works presented information re. this matter. Mr. Lambrecht reported that issue is a requirement of the EPA and administered by the Health Dept., and need to demonstrate that we have financial capabilities to take care of that. He reported that there are several different means available to provide this surety for closure and post-closure care: reserve account, trust funds, surety bond or insurance, letter of credit. He reported that cost they are looking at in the future is about $4.2 Million to close landfill and another $1.2 Million to maintain for 30 years, or total of $5.4 Million liability.

Mr. Schmisek reported they were trying to find way where it wouldn't cost City anything; that there are some excess funds in the sanitation department specifically for this use, so part of first recommendation is to set reserve account up to $2Million and hoping that over time as cost for closure comes down and can earn some interest on this money, they will cross over each other and we'll be able to start spending down that reserve and no

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additional cost to the fund. He stated that they are recommending as part of the motion that we do reserve account up to $2 Million and then file financial test and corporate guarantee with the State Health Dept., which involves completing questionnaire each year based on our financial report showing that we have the financial capability to maintain. He stated that hopefully in 4 to 5 years as those numbers come together then will be able to exclude the financial test and only keep the reserve account. Mr. Schmisek reported that the reserve account will be set up in perpetuity. Mr. Lambrecht advised that it was technically 30 years after closure.

Moved by Hamerlik and Klave to recommend to finance committee that we set up a reserve of up to $2 Million and file the financial test and corporate guarantee with the Health Dept. to cover our financial assurance requirements. Motion carried.

7. Matter of surplus property (truck chassis, Sanitation Dept.)
Mr. Lambrecht reported they would like to declare as surplus and offer for sale a 1980 GM Bruin truck (8 years in sanitation dept. and 7 years in street dept.); that they offered this vehicle as trade-in on purchase and sanitation opted to purchase trucks out-right and retained this truck). He also reported that they do have people interested in buying the truck (est. value $4,000) Moved by Beyer and Hamerlik to approve request and declare the property as surplus and offer for sale. Motion carried.

13. Matter of easements for Proj. 3945, Hwy. 2 Beautification.
Hugh Veit, KBM, Inc. reported there are two issues; and reviewed with the committee:
a) screening easement for Highway No. 2 Beautification Proj. 3945, along the Weekley Auto Wrecking Yard, for and in consideration of the sum of $1,800, Myron O. and Betty Jo Weekley, grantor, Nodak Electric Corporation, grantee, for fence relocation which is due to location of existing Grand Forks-Traill Water line which was verified to be in a different location during plan preparations.
b) Reimbursement agreement with Nodak Electric and a utility relocation and adjustment agreement for Hwy. No. 2 Beautification Project 3945 along Swangler's Auto Wrecking Yard, for and in consideration of an est. amount of $8,000, City of Grand Forks, grantor, and Nodak Electric Coop, grantee (Nodak's preliminary plan review during plan preparation did not indicate any conflict with existing power line.)

He reported they started drilling and hit Rural waterline which was 20 ft. from where it should have been, that their alternatives were to move the fence to the north and get additional easement from Weekley's at cost of approx. $1800. He stated other alternative was to move rural waterline and they

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indicated to him that it was $10-12,000 to move that line, that they also looked at moving the fence across the service road R/W but Nodak had some problem with that. He noted there will be an additional cost (over and above $1800) because Red River Ford has the sign out which would have to be raised. Mr. Veit reported that he sent a copy of the cover letter and plans to both Nodak and to Rural Water, and they told him orally that they had no problem with it, but didn't get anything in writing. Member Beyer reported that contractor started digging and hit the rural waterline, 20 ft. from where they said it was, and we have to fix it and have to move our fence, or move their line, but back in pre-const. meeting no one had a problem with this; now on second
one going to have to pay Nodak to raise their utility poles, didn't move on that side but at pre-construction meeting they said no problem. She asked whether we have any legal ramifications to these people for these change orders or not, or refer to the city attorney. She stated that in the future perhaps need to have something in writing.

Mr. Veit reported that the waterline is in service road right of way, plat signed by County and City; and should have received authorization to install line. He stated he tried but was unable to contact Traill Water today.

Moved by Beyer to approve easement for $1800 to Weekley's and to refer to the city attorney to determine if City can bill Rural Water for the cost of purchasing additional easement. Klave seconded the motion.

Hamerlik asked whether they should wait and find out first whether can bill Traill Water; that he has concern with agenda add-ons - that this item dated June 26 and not reviewed more thoroughly. Mrs. Beyer stated that problem with this is that this project under construction, not City's fault, and can't have contractor waiting around and not move ahead on this.

Mr. Grasser stated that their office hasn't been very aggressive in requiring approval by utilities to be in rights of way; that if they are in City right of way should be required to move if in the way of City construction and bear costs of relocating; and set up policies to prevent this from happening. Mr. Vein stated that this has been done, have required other entities to enter into agreement when put in our R/W when known about it.

Mr. Veit stated he would talk to Rural Water this week. After further discussion, the motion was carried.

b) Moved by Beyer and Hamerlik to approve the reimbursement agreement with Nodak Electric and a utility relocation and adjustment agreement in the amount of $8,000.00, and refer to the city attorney to review and bill Nodak Electric for the costs.

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Motion carried.

8. Matter of tapping fee policies.
Mr. Grasser distributed copies of tapping fee payback schedule, that he wanted to show on paper concern about charging interest, and reviewed several options for charging depreciation and interest on a tapping fee: 1) straight line depreciation to 30-years with zero interest, related basically to paving; 2) zero depreciation for first five years, straight line out to 30, with zero interest; 3) interest rate curve based on paying the interest on the depreciated amount. He stated his recommendation is to forego interest rate charges and go 5 years before starting flat line depreciation. Mr. Lambrecht stated that even at 30 years value shouldn't be zero, but depreciated out to 10% or 20% of its value, still has some value. Mr. Grasser stated that concern trying to address with depreciation is to avoid getting to a point where someone buys street at year 29 and pays specified amount and next year someone would pay nothing. He reported that Mr. Swanson's recommendation is to get down to zero.

Moved by Beyer and Klave to approve 5-year level and then start straight line depreciation down to 10% of the total project at 30 years. Motion carried.

Mr. Vein stated this was policy statement as would do same for water, sewer, etc. Mr. Grasser stated they are proposing a 50-year life on pipes and 20-years on pavement and 50-years on associated work, making it 30-years. He stated they will bring back when have basic policy. (committee only)

9. Matter of two-way agreement for installation of street lights on City R/W.
Mr. Grasser reported this project for Sun Land West 2nd Subdivision, that Mr. Schmaltz has asked that he be allowed to install street lights privately, and agreement is for engineering department to do engineering and inspection and developer hire contractor, City charging 7% for engineering fee. Moved by Beyer and Klave to approve the agreement for private installation of street lighting in Sun Land West 2nd Subdivision, with City to do inspection. Motion carried.

10. Consideration of bids:
a) Proj. 4315, storm sewer at dike between Lewis blvd. and Riverside.
Mr. Grasser reviewed tabulation of bids. Moved by Beyer and Hamerlik to accept the low bid of Molstad Excavating, Inc. in the amount of $31,095.00. Motion carried.

b) Proj. 4319, Dist. 360, san.sewer on 30th Ave.S.
c) Proj. 4320, Dist. 239, watermain on 30th Ave.S.

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Mr. Grasser reviewed tabulation of bids, combined project bid, with Molstad low bidder. Hamerlik asked if these projects would pre-empt any other projects or delay any other projects he has. Mr. Grasser stated that completion dates set for projects and he apparently expects to meet those dates. Moved by Hamerlik and Klave to accept the low bids of Molstad Excavating, Inc. in the amounts of $38,690.00 and $58,680.00, respectively, for a combined bid of $97,370.00. Motion carried.

d) Proj. 4363, Dist. 538, paving S. 38th St. from 30th to 29th Aves.S.
Mr. Grasser reviewed tabulation of bids for concrete paving.
Moved by Hamerlik and Beyer to accept the low bid of Nodak Contracting in the amount of $155,075.50. Motion carried.

11. Plans and specifications:
a) Proj. 4374, Dist. 364, storm sewer for Medvue Estates 6th
Mr. Grasser reviewed plans and specs. for storm sewer in Medvue Estates 6th, north of l7th Ave.S. and west of Columbia Road starting at the Coulee (City owns 3 lots), that Lot 4 being developed. He also noted that the City has buyer interested in one of the City lots, which would generate need for sanitary sewer and water, and bring water in off Columbia Road and sanitary sewer off Knight Drive. Moved by Klave and Hamerlik that we pass a resolution approving the plans and specifications for this construction and further that the city auditor be directed to advertise for bids on the project. Motion carried.

14. Matter of agreement with DOT for traffic signals at 32nd Ave. S. and South 20th Street (State Proj. #HEU-6-986(039)042). Mr. Grasser reported that DOT bid the project, which came in under estimate, with Northern Electric Construction, Inc. low bidder in the amount of $59,282.25, City's share $3,260; and they are asking City to concur in the award. Moved by Beyer and Hamerlik that we concur with the North Dakota Department of Transportation in the award of the bid for traffic signals and incidentals in the amount of $59,282.25, with City's share estimated to be $3,260.00. Motion carried.

15. Matter of Sr. Citizens parking lot expansion.
Mr. Grasser reported that funding for the project tied to some HUD funding, which needs Congressional approval, funding didn't come through as anticipated so will have to hold that project until the funding is approved. Held.

12. Matter of creating special assessment districts:
a) Proj. 4364, Dist. 362, san.sewer on 6th Ave.N. from 51st to 55th St.
Mr. Grasser reported they would be creating district for area Mr. Schmaltz came in and talked about earlier this spring, and City waived up-front monies, that district will run from the

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properties on the north side of 7th Ave. and will include trailer parks, cost approx. $150,000 for the two projects.

b) Proj. 4365, Dist. 240, watermain on 6th Ave.N. from 51st
to 55th St.

Moved by Klave and Beyer that we adopt resolutions creating the assessment districts, approving the engineer's reports, including estimates of cost, assessment district maps, and further that we pass resolutions instructing the city engineer to prepare detailed plans and specifications, and that we declare intent to sell bonds to finance these improvements.

There was some discussion re. paving for the area. Mr. Grasser stated that Mr. Schmaltz wanted paving to go in this year, but problem they have is that underground scheduled for award on August 21, and have to give contractor time to install (to end of October), doesn't leave any time to do paving. Committee asked whether underground could be done sooner, and Mr. Grasser stated that they could put unrealistic completion date which would drive up costs; Mr. Vein stated that they have to follow special assessment procedures; and that staff working overtime now. Mr. Grasser also stated that with high ground water table won't be able to dry subgrade out there in September and October and would have to put in rock and fabric. Committee asked if underground is completed soon enough, could they be ready to go with paving, with option to hold for another year. Mr. Grasser also reported that there is storm sewer on 6th Ave. with an August completion date, and if start piling contractors, could run into trouble; and because of engineering time can't create any more projects. Committee suggested hiring outside engineering, which could cost additional 7-8%; Mr. Schmaltz stated shouldn't cost any more because City also charges engineering costs; Mr. Grasser stated it would cost more because City would still do inspection and plan review and inspection. Committee suggested staff work on this and to bring back.

Upon call for the question, the motion carried.

Mr. Schmaltz also reported that Molstad not working on project for two months on project on 55th; Keith Johnson reported that delay is due to the fact that lift station contractor in there. Mr. Schmaltz stated he could see no reason why Molstad not working on this project.

After further discussion it was moved by Beyer that on Richards' West storm sewer project that we find out who's holding up project and hold them liable. Beyer withdrew motion.

Committee stated they should know if contractor(s) who have number of projects making completion dates or if behind schedule; MINUTES/PUBLIC SERVICE COMMITTEE
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and whether they could withdraw motion awarding contract and hold for 2 weeks until talk to contractor. Mr. Grasser stated he wouldn't recommend because have people waiting for underground work to get in, don't have basis to make rational recommendation that he can't get this work done, don't know his work schedule, he's not significantly behind schedule in most of his projects. Committee suggested holding until Monday prior to council.

Moved by Hamerlik and Beyer to rescind action awarding contracts for Projects Nos. 4319, 4320 and 4315, and delay for one week. Motion carried.

Hagness stated they would like time schedule, completion dates of projects (on 55th Street) that have been awarded to Molstad Excavating.

Meeting adjourned at 9:00 p.m.

Alice Fontaine
City Clerk

Dated: 6/28/95.