Committee Minutes

MINUTES/FLOOD RESPONSE COMMITTEE
Wednesday, August 13, 1997 - 5:00 p.m.

I. Call to Order:
Members present: Hafner, Bakken, Polovitz.

II. Matter of Mortenson update.
Chuck Grotte, asst. dir. of public works, distributed copies of excerpt from Mortenson contract , that they are now ready to enter into an agreement with M.A.Mortenson for their flood ser-vices; that Mortenson's started working back in April surveying damage to buildings, coming up with estimates, and now involved in construction management and contract basically has three com-ponents: hourly contract with rates per attachment D, normal reimbursable type items part of the contract, and a fee on the construction costs which will range from 2.5% to 2.9% per attach-ment C, and that he and Howard Swanson, city attorney, have reviewed the contract and were in agreement with it, and asked for approval of the contract. There were some questions whether hourly fee and fixed fee would both apply; Mr. Grotte stated fixed fee is customary to construction management organizations (ie., Aurora), that they are actually general contractor and doing that work (covers corporate overhead and profit). This covers all projects Mortenson working on (almost all City buildings - exc. water treat-ment facility), not doing actual labor/construction, subcon-tracting. Mr. Grotte stated he coordinates overall contract, that he and Sarah Hellickson meet with Mortenson's three time a week to review, but there's person assigned to each individual building with whom they coordinate. Moved by Polovitz and Bakken to approve the contract with M.A.Mortenson. Motion carried.

III. Matter of FEMA update.
A rep. of FEMA reported that the deadline for registration has passed, that they had 24,314 registrants; $41.6 million in Fema housing assistance; $137.7 million in SBA loans, with total of nearly $180 million to Grand Forks City and County residents; they have 35 local employees out of a total of 89 Fema employees; 653 families provided with travel trailers and/or mfg. homes, that 16,310 people have visited DRC and almost 4200 have visited the mitigation desk. He also reported that the Corps has completed 1104 property inspections, commercial and residential.

Steve Olson, Dep. Federal Coordinating Officer for Mitigation, Denver, addressed committee and stated they have had a team working on site (FEMA State Mitigation Technical Assistance Team), incl. planning specialist, acquisition specialist and flood insurance specialist working with City, and complimented committee and entire city for consideration of strong mitigation done so far. He stated they were here to provide guidance and expertise in mitigation. He stated that there was a flood insurance summit held in Grand Forks and press conference this after, idea was generated by State Insurance Commissioner Glen Pomeroy and there were people from around the country who were invited (mortgage companies, lenders, agents) and highlight was 4 people who were private citizens who
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attended and whose value at the summit was incredible, and hope-fully will result in enhancement of the flood insurance program. Hafner thanked them for their presentation.

IV. Transportation plan for Grand Forks/East Grand Forks.
Earl Haugen, MPO, stated they were transportation planning agency for the Greater Grand Forks and are here to announce their initiation of updating the transportation plan that would include both the Street and Highway Element and also Transit Development. He introduced consultants Martin Ashman, Steve Ruegg and Greg Gadies, and stated that they would like to get issues that people would like them to address.

Steve Ruegg stated that they are embarking on the development of an update of the transportation plan for both Grand Forks and East Grand Forks, and in connection with that want to solicit any com-ments or make known that they are ready to accept comments, input to that planning process. He stated that the plan components will involve street and highway network, specific transit component which will look at how transit system can be improved, and non-motorized element (pedestrian and bicycle modes). He stated the overall purpose is to develop long range plan for the transporta-tion system consistent with regional goals, that along with the plan they will also be establishing set of goals and objectives for the plan starting with goals/objectives in the land use plan. He stated that they will be making that information open to comment. He stated that the process of the plan will start with identifying issues and flood-related issues, that this is 20-year plan, with 5-year increments, where growth going to occur and how transportation system accommodate that. He stated issues will be tested and they will develop alternatives to address the issues, and those alterna-tives after evaluated will be used to formulate a final plan. He reported that products of the plan are a functional street classi-fication map or update to current map, implementation plan listing prioritization, dates and est. of costs on a five-year incremental basis. He stated they will have a planning process, a way of examining new proposals and accommodating changes. He stated there will be a significant public involvement process and want to co-ordinate that with any public involvement of meetings in coordin-ation with recovery plan. He stated that in the next few weeks have set meetings to solicit comments from general public re. goals and objective of issues.

It was noted that this is part of the on-going planning process and is something that would have been done, plan needs to be updated every 3-5 years.

Mr. Haugen stated that the transportation planning document that will become the controlling plan for the metropolitan area will be approved by the MPO Exec. Board which has reps. from both cities and counties, and will have both state and federal oversights. He
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stated that the MPO adopted plan will also go through city councils of both cities for their approval and implementation. He reported they have a 7 1/2 mo. timeframe, to March 31, and will rollover from transportation planning to corridor planning and try to help both cities identify the new corridor growth areas and how streets should be planned and constructed. Hafner thanked reps. for their presentation.

V. Matter of report on Phase II properties.
Mr. O'Leary reported that Tom Maynard, FEMA, has been working on detailed analysis of kinds of damage incurred by homes that are subject to Phase II buyout.

Tom Maynard, FEMA, stated that one of his main roles has been to assist the City in developing the planning for some of the acquisi-tions; and stated that Joanne Gagnon will be taking over on acquisition phase.

He stated that Phase I and Phase IA were those areas structures hardest hit by the flood with not much choice but acquisition and demolition, but in lower level priorities, have homes that sub-stantially damaged more than 50% but there may be other options, moving or elevating. He stated they compiled data and presented information to the committee; number of structures and amount of damage sustained; general characteristics of buildings (wood frame, masonry construction, etc.); type of basement finished or un-finished and depth of flooding (basement, first floor, etc.); and mitigation options (demolition, relocation, etc.) He stated that this was for planning level purposes and to come up with what option might be for given structure.

Hafner asked if entire council could have information mailed to them; Mr. Maynard stated they would make that available. Hafner thanked Mr. Maynard for his presentation.

VI. Matter of review of flood recovery cost matrix.
Mr. O'Leary reported that there are a number of changes being considered in the cost matrix and wanted to make committee aware.

Implemented Projects: He reported that ground has been broken and contract let for Hi-Tech Park land, they are in the closing phases on Sun Land West property and are dealing with some housing developers who are ready to go on the first 28 units and the infrastructure and housing built concurrently on the Sun Land West project. He reported that Noah's Ark building is being started, and closed on Industrial Park land; that EDA Rev. Loan Fund is under final review; that they will be asking State for additional funds for Rental Rehab loans. He noted that administration covers general administrative costs as well as consultants, adding adm. staff to his office and to finance office, and job fair scheduled for next week.
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Proposed Projects:
He stated that Phase II in process of being finalized, and Phase III penciled in and dependent upon what kind of program the council adopts, tri-chairs have been working on that and will bring recom-mendation (101 homes in Phase III who have volunteered for buyout (consider owner-occupied and/or rental units) and may be other ways to provide those with assistance in rehabbing their houses. South-end Development: negotiations going on for purchase for future housing development, that engineering putting in firmer numbers and the $3.6M low for infrastructure. Downtown building: $12M, 120,000 sq.ft. bldg. and Dick Olson discussing with potential clients, won't proceed with that unless firm indication of interest from potential clients. Volunteer Storage building: estimates being put together for an addition to the public works garage; Development Interest Subsidy: Joel Manske, Urban Dev. Office, is currently working on loan from Fannie Mae/Freddie Mac for the development of housing that will be constructed this fall and winter, rather than using CDBG money proposing to borrow money using lower interest rates available; Voucher Program: understands program to be for someone who lost their home because of flood, was interested in acquiring lot somewhere else in the community, would be given a voucher (amount not determined), initiate voucher program where buyer could choose among number of locations, would be assisted in acquiring that property or could buy existing house as well.
He stated they are requesting a number of clarifications from HUD.
Services & Facilities-Temp.Housing: there will be lot of mobile homes in Industrial park, and thinks it's important to make as comfortable as possible - community center, open area for basket-ball court, and also suggesting day care on the site, recreational program, etc.; CBD Acquisition and Demolition: committee coming back on building needs, buildings suitable for remodeling, demo-lition/rehab. limitations for historical buildings, and is to try to focus on historical buildings and demo. of other buildings; CBD Rehab: effort to rehab first floor of buildings damaged by flood, and are well within reach of rehab program, and includes funding for demolition of east side of city center mall; CBD General Improvements: to fix up downtown, dependent on what redevelopment plan looks like; Public Service - to help public services agencies, number stressed by flood (Adult Abuse, Mission, etc.), and look at flood-related needs for those, there are some grants through private foundations; Almonte: owners in discussion with Fema how much damage, use as center for volunteer services, if provide plans to stay, volunteers continue to come in and assist people to rebuild, building incurred some damage on first floor, and use volunteers to make repairs; Single Family Rehab: $20M, program to assist with rehab of their homes, program has not had any formal consideration, income based on level of damage or whether want program at all; Housing Development-Fannie Mae: cash flow to construct new houses.

Ken Vein, city engineer, reviewed various projects:
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Public Assistance: listing of all buildings, DSR's being written and Mortenson's did cost estimates; Wastewater and Storm Sewer: includes lagoon system, lift stations, collection system, etc. and numbers will be revised as these are early estimates, DSR's haven't been written; Water System: a significant item is water meter replacement and looking at replacing those, and at time of replace-ment go to different method of reading and are working with Fema on this; Park Restoration: not working on those items, City has been maintaining boat ramp on north end; Debris Removal: costs covered by Fema and Corps; Dam: will continue to monitor and survey, working with State Water Commission on that; Hazard Mitiga-tion: various projects with portion to be paid by Fema, State and City share (not sure receive mitigation funds), and are going to want to proceed with number of those projects for next year; Streets & Transportation: revised costs down, if get Fema funds, need $5.3 match, cost to traffic lights, elec. distribution system, etc. and try to get funding through DSR's; City Share: are in process of cleaning sewer lines and will then go back and video and only when identify damage will cost be eligible under DSR, signifi-cant cost with some recovery, and are continuing survey of damage to roads and sidewalks, dike restoration, study for flood fight, and are purchasing flood pumps, etc.; Expenditures on Fast Track due to Southend Development: this is area south of Wal-Mart, west of S. Wash, east of Col. Road and south of 32nd Ave.S., would be adding lift station, possibly two, look at southend drainway, extending South Columbia Road and 47th Ave.S., ext. S. Wash. St. to 47th, 40th Ave.S., etc. and infrastructure necessary for develop-ment of those areas, extension of various other streets, forcemain system, water towers, closure for drainway, etc.

He stated there are couple other items that need to be included: flood hazard mitigation for 1998, additional flood hazard mitiga-tion projects, and study for secondary flood fight. He stated they had included $42M+ for other street repair costs, which won't be repaired but look at local costs for doing some of these; flood protection project would have local match of approx. $116M and includes relocation of water treatment plant. He stated they are going to need assistance in determining how pay local share. He stated they won't know cost until actual alignment laid out.

VII. Other business:
1) Mr. Vein stated that when do flood mitigation project he has requested full-time staff person for that project, that it's important to have someone to work directly with Corps, and to do some citizen participation, some type of communications specialist with engineering background. He requested authorization to add that position to the funding matrix. Bakken and Polovitz so moved. Motion carried.

2) Mr. Vein reported that the classified street system was falling
through cracks as far as being able to get assistance for type of
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damages we've had, and there have been further developments by Federal Highway Adm. to allow and write some policies based on type of flooding we had and are working with both federal and state on this. He reported they had est. $90M as value of classified street system, and 15% damage, and are asking for $14M to work with State and Feds for repair of classified streets, and prepared map, goal is to try to get money for overall damages we have, not specific to one street, then go back determine priorities for rehab or repair of various streets, trying to stay away from those on CIP or DOT list. He stated they will come back for recommendation and prioritization: Mill Road, N. Wash., N. Columbia Rd, S. Belmont and much of Belmont Rd with damages attributed to flood damage. Info.

3) Joel Manske reported that he has been working with Fannie Mae, that they need council approval to go ahead and act with regard to application to Fannie Mae for funding, that Fannie Mae has agreed to fund a loan to the Housing Authority with the co-applicant being the City of Grand Forks for $7.75M at their rate of money, which on Monday was 6.73%, with a 5-year balloon, payments payable twice a year, interest only for a 5-year period of time. He stated there's question whether City's general obligation capacity impacted with this loan and in order to proceed, need council consensus. He stated they spent afternoon with Freddie Mack, a corporation, and another potential resource.

Mr. Swanson stated motion Mr. Manske looking for is to authorize proper City officials to enter into loan application with Fannie Mae in the amount of $7.75M. He stated that it does appear that would fall as general obligation of the City and City has cap as to how much general obligation debt it can hold at any one time; that he talked to Mr. Schmisek about it and to staff about it, and council needs to be aware that at some point City needs to do short and long term analysis of our borrowing needs, given the fact that we have limited capacity to borrow. He stated that this doesn't change what we might be able to do, cost of funds vary depending upon draw, and that there are loan documents they will be providing to us, and time to act on proposal would be as soon as possible to get framework in place and line of credit established.

Mr. Manske stated that big draw will be acquisition of property, and second draw infrastructure completion, repayment would be sale of lot with unit.

Moved by Bakken and Polovitz to authorize proper City officials to enter into loan application with Fannie Mae in the amount of $7.75M. Motion carried.

Moved by Polovitz and Bakken to adjourn; meeting adjourned at 6:40 p.m.
Alice Fontaine, City Clerk
Dated: 8/14/97.