Committee Minutes

MINUTES/PUBLIC SERVICE COMMITTEE
Tuesday, May 28, 1996 - 4:00 p.m.

Members present: Hagness, Beyer, Hamerlik.

1. Matter of wastewater treatment system improvements, Proj.
No. 4371.
Charles Grotte, Asst. Dir. of Public Works, stated they had informational committee of the whole meeting last Tuesday and on Thursday went to the utility rate study committee concerning the project, and that committee voted 3-1 for the recommendation to this committee that we proceed with the project, interim project at $13 million plus $500,000 for the composting study. The com- mittee also recommended that they proceed with the conventional project development schedule with completion in October, 1998.

Chairman Hagness stated this is a large project, not convinced that have to proceed in 1996 or 1997, maybe delayed, that there are lot of big projects on line, the city auditor is concerned about financing, and we're at point where need to set priorities, whether go ahead with project or $2 million improvement of the existing lagoon; that composting is another project. He stated that industry (Rod St. Aubyn, UND and Carl Johnson, RDO, in favor of project, not sure about Mr. Muscari, Bill Shipp stated they need to do something). He stated that this is new type of opera- tion. Mr. Vein stated they haven't decided which system they are going to use, there are other mechanical systems which are used in the US and are working; that they may bid more than one system. Mr. Vein stated they have done enough research to determine which systems will work. Mr. Hagness stated he wasn't convinced that they need to spend $10-13 million in 1996/97. Mr. Vein stated they wouldn't propose spending $2 million for existing system, would do nothing vs. spending the $2 million. Mr. Hagness stated that would be committee/council decision; Mr. Vein stated that was based on calculations they have done, could spend $2 million and get little to no benefit; would have to go to 8 cells to double capacity they now have. Mr. Veit, KBM, stated that would give design BOD capacity of mechanical system. Mr. Hagness stated they are doing on speculation of new business; Ms. Beyer stated that with existing industry they are not meeting
BOD's. Mr. Hagness stated that industry, Simplot and RDO, are going to be cutting back. Mike Shea stated that in his memo he pointed out that they are overloading the primary cells; that increasing number of aeration basins, because of complex nutrients coming in, not getting reduction should in short term aeration (temporary summer shut-down by Simplot and RDO Foods); and doesn't address ammonia problem at all. Mr. Shea stated that to add more aeration basins would be counter-productive because not going to be able to salvage those if go in another direction to straighten out ammonia problem. He stated that he wasn't sure State Health Department would allow City to increase size of lagoon because of proximity to airport.

Mr. Hagness questioned whether we need to do this year, and if

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this is top priority, because next project being proposed is to double size of water treatment plant because of peaks. Mrs. Beyer stated she was sold on the mechanical system, and that this a priority.

Mr. Vein stated the reason they brought this forth was because they need to have direction, can engineer whatever they want, but matter of timing, whether have in place for industry to come in; is policy decision. He stated that calculations show they are overloading existing lagoon. Mr. Hagness stated that Carl John- son of RDO Foods had questioned that if they cut back because of new things they are doing and don't overload the system, and City still raises rates, what have they gained; that if they invest money in new system at RDO and City raises rates for mechanical system, he stated they can't do both. Mr. Vein stated they have to do both, as RDO Foods under mandate from EPA to get up to standards required for other industry. Mr. Hagness stated they are counting on industry, which uses 50% of the present BOD cap- acity, to pay for percentage of new system. Mr. Vein stated that everyone would pay proportionate share. Mr. Grotte stated that based on current projections rates would increase approx. 33%

Jim West, KBM, stated that City does have ammonia problem, and in proposing mechanical plant, it is to help solve that problem, plus it will deal with BOD and suspended solids. He stated that it will take some time to design system they want, and it was his professional opinion that they should be working on it.

Mr. Vein stated that the facility plan outlines problem and solutions that are there; he stated they would need to have authorization to negotiate contract with KBM to get into the design. Mr. Hagness questioned if that included composting plant, and Mr. Vein stated that there is funding set aside.

Mr. West stated that there is timing thing in composting phase in that they need to be getting some equipment brought in so can be making compost for next spring so can be working with Extension Service in order to start running test plots.

Moved by Beyer and Hamerlik to approve facility plan and to authorize staff to negotiate contract with KBM to proceed with interim installation of the extended aeration system with lagoon storage of the sludge solids, and a pilot composting operation be simultaneously implemented to produce compost, agronomically test, and test market the compost to the agricultural sector.

Mr. Vein stated that the facility plan outlines process or procedures and also is necessary for the funding, City gets 3% funding. He stated that if funding not available would have to look at again because that affects rate structure. Mr. West stated they have funding and that detail needs to be worked out

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with the Health Department.

Mr. Vein stated there were two timetables in the facility plan and they are taking the slower plan, conventional project development. He stated that as soon as they negotiated contract, would start design.

Upon call for the question, the motion carried with Hagness voting against the motion.

2. Matter of water system master plan.
Mr. Grotte reported this was discussed at committee of the whole meeting and at the utility rate study committee, and the utility rate study committee voted to support the master plan concept/process, and agreed that there is a need for annual review to make sure projects still needed and prices current, and that as they work on the projects they fit into the master plan and aren't creating more problems down the road. He stated that master plan is estimate of what their needs are as they see them today, and that just because it's in the master plan doesn't mean that project will be done because some based on future regulations, and may have to adjust as they go.

Moved by Beyer and Hamerlik to approve the master plan. Motion carried.

3. Consideration of bids for Proj. 4335, masonry repair and
restoration at water plant.
Kent Anderson, architect, was present. Hazel Fetters-Sletten, water supt., submitted tabulation of bids and department recommendation; that they received one bid from Mid-Continental Restoration Company, Inc., Fort Scott, KS in the amount of $57,300. She stated there is 75-week time line and work will be completed next summer due to contractor's 1996 schedule; that Mr. Anderson feels company well qualified and no further damage would accumulate over next summer and winter, and he is willing to work with that schedule. She also stated that the total project cost is $74,300, which includes $12,000 for engineering and $5,000 for contingency. She reported that $100,000 was budgeted and this will leave remaining balance of $25,700. She stated they will purchase order the project out of the 1996 budgeted funds and $25,700 would remain in cash carryover.

Moved by Beyer and Hamerlik to accept the bid of Mid-Continental Restoration Company, Inc. in the amount of $57,300.00. Motion carried.

4. Request to place informational sign in street R/W at corner
of 47th Avenue South and DeMers Avenue.
Curt Siewert, Urban Development, and Pat Downs, Economic
Development Corp. were present. Mr. Siewert submitted drawings
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showing sign and location of the sign. He stated that original concept was to lease property for installation, however, they have been informed by Planning Office that informational signs are allowed in highway right of way, and are here for authori- zation. Mr. Vein suggested they verify location with respect to utilities and questioned whether this is City or State right of way and whether need DOT approval.

Moved by Beyer and Hamerlik to approve, contingent upon engineering staff review. Motion carried.

8. Consideration of project construction bids:
a) Proj. 4260, Mill Road bridge replacement, State Proj. BRU- 6-986(036)039.
Mr. Grasser reported that State did bidding for this project and also for the bikepath project, and they recommended award as listed on the bid tabulation; City awards project. Moved by Beyer and Hamerlik to accept the bid of R.J. Zavoral & Sons in the amount of $218,433.30. Motion carried.

b) Proj. 4349, bikepath along Red River (Plum to Lincoln), State Proj. No TEU-6-986(041)044.
Mr. Grasser submitted tabulation of bids received. Moved by Beyer and Hamerlik to accept bid of Strata Corporation in the amount of $296,713.95. Motion carried.

c) Proj. 4418, Dist. 542, paving s. 34th St. (DeMers-17th Ave.S.)
Mr. Grasser submitted tabulation of bids received and reviewed with committee. There was some discussion re. getting project completed as soon as possible, and Mr. Grasser stated he would talk with Nodak Contracting.

Moved by Hamerlik and Beyer to accept the low bid of Nodak Contracting in the amount of $1,032,207.05 and further that sidewalks included in the project will be assessed over the entire district with the exception of those properties where sidewalks installed at front of their property. Motion carried.

d) Proj. 4475, Dist. 540, paving 30th Ave.S. (34th-38th Sts)
Mr. Grasser reviewed tabulation of bids received for project just north of Menard's. Moved by Hamerlik and Beyer to accept the low bid of Valley Contracting Company in the amount of $135,770.00. Motion carried.

e) Proj. 4483, Dist. 541, paving Mighty Acres Phase II
Mr. Grasser reviewed tabulation of bids received. Moved by Hamerlik and Beyer to accept the low bid of Valley Contracting Company in the amount of $106,602.45. Motion carried.

f) Proj. 4444, overlay Minnesota Avenue.
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Mr. Grasser submitted tabulation of bids received, and re- ported that last week they received call from the State His- torical Society that the City has not followed process they feel is necessary to do maintenance on that street, and State has determined that City can't do any work without the authorization of the State Historical Society Board, and that Board won't be meeting again until August. Mr. Vein stated he has directed street department not to do any maintenance on the granitoid streets. There was some discussion relative to agreements re. granitoid streets, that there were several different agreements, and Mr. Vein stated they will go back and try to determine status of agreements.

Committee held the matter for 2 weeks.

10. Matter of policy on up-front money requirements.
Mr. Grasser stated they need to clarify policy on up-front money requirements, that Code requires 50% upfront monies from the developers (in several different forms - cash, bond, letter of credit). He stated that in cases where developer owns all the property within the proposed district, there is no problem; however, in situations where two developers own property within proposed district, and one is not ready to develop his lots he does not want to pay upfront monies, and engineering has only required upfront money from developer requesting or needing the project and waived requirement for other developer. He cited examples of several future projects where this will occur (property owned by two difference developers) and whether they can continue with past practice. He stated they talked to Mr. Swanson and haven't been able to come up with mechanism to obtain that money (cannot assess tapping fees on property within city limits). He also noted that because of lost interest, carrying charges, etc. tapping fees not good investment for the City, good development tool. Mr. Vein stated this is one of the reasons he requests inclusion of 140 ft. past right of way on proposed an- nexations so that City does not have to finance utilities through tapping fees. He stated they would prefer to keep current policy in effect so not have to take out of highway users or excess sales tax. Mr. Grasser stated that if they simply special assess to property owner, rather than require upfront monies, there's no cost to the City as in case of tapping fee. Hamerlik questioned why they can't charge interest on tapping fees; and committee stated they could look at policy on tapping fees again. Mr. Grasser stated they were looking for intent of the committee and would find that out when committee creates assessment district. Information only.

11. Matter of creating special assessment districts:
a) Proj. 4476, Dist. 373, san. sewer on S. 38th St. (24th- 29th Ave.S.
Mr. Grasser distributed copies of engineer's report and map
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for the project. Moved by Beyer and Hamerlik that we adopt a resolution creating special assessment district, approving the engineer's report, including estimate of cost, an assessment district map, and further that we pass a resolution instructing the city engineer to prepare detailed plans and specifications, and that we declare intent to sell bonds to finance improvements, contingent upon filing of the plat and 50% upfront monies. Motion carried.

b) Proj. 4477, Dist. 248, watermain on S. 38th St. (24th-29th Aves.S.)
Mr. Grasser distributed copies of engineer's report and assessment district map. Moved by Hamerlik and Beyer that we adopt a resolution creating special assessment district, approving the engineer's report, including estimate of cost, an assessment district map, and further that we pass a resolution instructing the city engineer to prepare detailed plans and specifications, and that we declare intent to sell bonds to finance improvements, contingent upon filing of the plat and 50% upfront monies. Motion carried.

c) Proj. 4478, Dist. 374, storm sewer on S. 38th St. (24th- 29th Aves.S.)
Mr. Grasser distributed copies of engineer's report and assessment district map. Moved by Beyer and Hamerlik that we adopt a resolution creating special assessment district, approving the engineer's report, including estimate of cost, an assessment district map, and further that we pass a resolution instructing the city engineer to prepare detailed plans and specifications, and that we declare intent to sell bonds to finance improvements, contingent upon filing of the plat and 50% upfront monies. Motion carried.

Dan Mikkelson stated that he will be providing City with letter of credit for upfront monies, and thanked committee for their consideration.

13. Matter of three-way agreement for Sunland West Phase II.
Mr. Grasser reported developer and engineer requesting authorization to enter into standard three-way agreement. Doug Herzog, CPS, Ltd., stated they had this agreement last year, but didn't proceed and have updated for 1996. Committee had some questions, and held in committee.

5. Matter of extending clean-up week.
Dick Newman, solid waste mgr., reported they have established cleanup week, and but actually are working about week before and week after. Moved by Hamerlik and Beyer to receive and file. Motion carried. The committee suggested that Mr. Newman submit report on amount of cleanup.

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6. Matter of easements for bus shelters and pads.
The matter of temporary construction easement and permit and easement and permit for bus shelters and pads at 2004 13th Ave.N. and 1010 North 5th Street in the amount of $1.00 each were presented and read. Moved by Beyer and Hamerlik to approve the easements as presented. Motion carried.

7. Budget amendment.
Mr. Grotte presented request to amend street department budget in the amount of $5,600 to cover balance of funds for pur- chase of truck, and stated that at the time bid awarded, the paperwork had not been completed. Moved by Hamerlik and Beyer to approve the budget amendment. Motion carried.

9. Plans and specifications for assessment projects:
a) Proj. 4310, Dist. 105, street lights on 24th Ave.S. (34- 38th Sts.)

b) Proj. 4455, Dist. 111, street lights in Columbia Park 15th
c) Proj. 4508, Dist. 117, street lights on 24th Ave.S. and S. 34th Street.
d) Proj. 4484, Dist. 113, street lights in Mighty Acres Phase II.
e) Proj. 4505, Dist. 114, street lights on 6th Ave.N.
f) Proj. 4507, Dist. 116, street lights on 30th Ave.S. (34th- 38th Sts.)

Mr. Grasser submitted engineer's reports on each of the projects, stated that all projects, with exception of Project No. 4508, are residential street lighting. Moved by Beyer and Hamerlik to pass resolutions approving the plans and specifications for this construction and further that the city auditor be directed to advertise for bids on the projects. Motion carried.

12. Matter of concept report for Proj. 4414, paving 47th Ave.S. to Ulland Park.
Mr. Grasser reported this is preliminary concept report which has to be submitted to the DOT, that they may not do ditch re-grading because of estimates and and will contribute engineering at no cost to make cost work out. He stated that when they analyzed the anticipated traffic loads, the aggregate base ends up being quite a bit deeper than originally figured and are looking at recommendation of 20" of aggregate base. He reported that project not budgeted in 1996 budget so funds will have to come out of Highway Users, which has about $300,000 contingency in that fund, basically for items like this; City's share about $125,000. Hamerlik stated that when first brought up it was for economic development - bringing all these softball players into town.

Moved by Hamerlik and Beyer to approve concept report, and direct MINUTES/PUBLIC SERVICE COMMITTEE
May 28, 1996 - Page 8

staff to look at other funding sources that are appropriate. Motion carried.

14. Matter of Proj. No. 4379, 5th St. RR crossing.
Mr. Grasser reported that they have received faxed approval from Burlington Northern to award this project; they haven't given exact time when installation will occur, but it will be this summer. Moved by Beyer and Hamerlik to award bid to Magnum Manufacturing in the amount of $15,470. Motion carried.

Meeting adjourned at 5:20 p.m.

Alice Fontaine
City Clerk

Dated: 5/28/96.