Committee Minutes

MINUTES/PUBLIC SERVICE COMMITTEE
Tuesday, July 14, 1998 - 5:25 p.m.

Members present: Klave, Lucke, Lunak

1. Application from Corey and Jennifer Boushee to move garage to 1412 North 2nd Street. Bruce Melin, building inspector, reported that this building had not been flooded, no repairs needed. Moved by Lucke and Lunak to approve application contingent upon the public hearing. Motion carried.

2. Matter of encroachment agreement for Grand Forks Herald.
Mike Maidenberg, Grand Forks Herald, reported that the encroachment agreement was on the agenda because they thought they were going to need a specific encroachment for front of the Herald building on 2nd Ave.N., and had wanted to put steps up from 2nd Ave. to the level of the build-ing, about 18" above curb height, after reviewing with Mr. Grasser and Mr. Vein they requested that they not do that but rather suggested that they have a sloping ramp effect up and that's what now planning to do; but want public service committee to be aware of this but may want to put steps back in and ask for the steps to be put in primarily for safety reasons if felt slope too steep in winter time and can't keep dry and safe; but want to make sure have a way for people to get down to the street.

Mr. Grasser reported the area directly in front of the Herald building where steps were proposed and where slope at now, that the official entrance into the Herald come in from sides, but this is recognizing that employees are parking directly across the street in parking lot and will take shortcut into building and wanted to address an all-weather surface for them to get into the building. He stated they are trying to eliminate the en-croachment that would occur by putting the steps in because would affect snow removal opera-tions, etc., that they worked that out and are looking for now is not an encroachment agreement but authorizing the two-way agreement between the City of Grand Forks and the Grand Forks Herald to put sidewalks in City right of way between alley and 4th Street and as a minimum want to finish the building off so it looks presentable for an open house; that the other sidewalks along 4th Street and other areas of 2nd Avenue are recommending holding off at this time because have watermain going down 4th Street and make sure final design meets the master plan DDC is going to recommend to the city council, and that plan has not been presented yet. He stated as soon as the plan in place and construction activities completed then finish off the rest of the sidewalks. He stated they would probably put some conduits under the paving and have to have place to run street light wires and other minor utili-ties. Mr. Maidenberg stated their concern is whether grade of slope is too difficult when have snow and becomes hazard, and think it will work this way and is agreement they have reached with the City to try this and if doesn't work will want to come and put in stairs.

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Moved by Lucke and Lunak to authorize entering into a two-way agreement with the Grand Forks Herald to install sidewalks in City right of way between alley and 4th Street. Motion carried.

3. Request from New Vision Fiberglass, 6105 Gateway Dr., to connect to City watermain.
Bruce Melin, bldg. inspector, stated New Vision's main building burned down and they've moved into a small building which re-mained and wish to start up again, one of the re-quire-ments is that they have sprinkler system, and their option other than attaching to main line is to provide a cooling tank which would meet requirements for a sprinkler system.

Lon Brorson, New Vision Fiberglass, stated if they were able to tap onto the city main wouldl put in a request for fire protec-tion from the city of Grand Forks, and think that's logical thing to do because their one section of production squared away have every intention of trying to get back to where were before the fire. He stated they have no problem with annexation to the city, wouldn't oppose annexation; that there might have been some discussion when annexation might happen but didn't sound like it was benefit to the city to do annexation of their property when they requested a zoning change on a piece of land they purchased. Klave stated that as city services are being used they need to look at making that area a part of the city also.

Mr. Grasser reported they've had a number of requests for utili-ties (water hookups) along Highway 2 and had concern that tieing in by agreement is starting to be the norm out there and wanted to bring to attention of the committee and see if there has been any change in thoughts on annexation because normal policy is that before they provide water service to the property is to be annexed into the city. He stated that committee not all here when had last discussion with the Church (agreement set up for 6 months to 5 years), and wanted to know if committee wished to pursue that or go through connection agreement. Klave asked if they should be doing approval for hookup without having Planning & Zoning look at annexation. Mr. Grasser stated it wouldn't hurt to get recommendation from Planning & Zoning. Mr. Brorson stated they now have a 24-hour security company, 7 days a week, and are into one of their original paint shop facilities and that facili-ty will be fitted to standards and codes to do the fiberglass spray up applications that were doing in main plant; and they are constructing offices and retail space in front of the existing building and are purchasing equipment to get in place in that building based on the assumption, one way or another, are going to have to use a sprinkler system. It was noted that the next
Planning Commission meeting is scheduled for August 5. Mr. Brorson stated they have fire protection from the Thompson Fire Department, and if hooked up to city main would request Grand Forks fire department service.

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Mr. Brorson reported when they had brought in request for rezon-ing before Planning & Zoning Commission it was decided that they weren't interested in annexing at that time, New Vision wasn't resist-ing. Mr. LeClerc reported at that time that staff had recommend-ing annexation but Commission motion was to refer to public service because doing these agreements rather than annex-ing but had been contrary to Code. Lucke asked if this property current-ly with County Water Users and if liability in getting them out of that, and it was noted that hasn't been resolved yet and Mr. Swanson is working on that. Mr. Brorson stated they would maintain rural water for domestic water supply and looking at main tap for the fire protection.

Mr. Grasser stated that based on past history of Planning & Zoning typically they won't recommend annexation, not heavily into promoting annexation, and if send to them, say no or give back to the city. He stated that perhaps better off doing by agreement with short timeframe (6 months to 5 years), and need some time to help solve rural water and incorporating New Vision with the Church, etc. and evaluate what that annexation should encompass; will take some time and don't want to impact their operations with time it will take to resolve those issues. Mr. LeClerc stated Planning & Zoning typically hasn't been in favor of forced annexation on developed property but when comes to annexation of property that requested to be annexed or developed property adjacent to it, they have supported that. New Vision stated installation would be at their expense; and Mr. Grasser stated if putting in main should be to City specs. and location so not have to redo again.

Moved by Lucke and Lunak to authorize entering into an agreement to allow New Vision to hookup to the city main for term of no sooner than 6 months and no later than 5 years. Motion carried.

4. Matter of request for financial support for recycling educa-- tion program.
Todd Feland reported he had talked to Hafner, who had some concerns about whether they had information to make a decision on that particular item, that the grant proposal made to the Bremer Foundation is included in their packet as well as some financial information breakdown of what's requested of the City of Grand Forks, schools that are included, etc. Dick Newman introduced Linda Kingery from the Red River Regional Council and Shirley Raney, who put education p-ackage together, from District IV; that information distributed to committee members. Klave stated that this is informational, that they had made recommenda-tion to council, and can receive and file information presented and return to council with same recommendation. Ms. Raney reported she had letter from the Asst. Supt. of Elementary Education in Grand Forks stating they would welcome program. (Motion - to authorize $22,134.00 for the program, conti-nent upon school

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district giving approval to do the program, and contingent upon receipt of the Bremer grant funds.)

5. Matter of grants to schools for implementation of recycling
programs.
Mr. Newman reported that more information was requested; that information presented includes names of schools, population, and Ms. Kingery put together package of what other schools have asked for in the past, what they have done with the educa-tion money that State has provided and also District. He stated this could give idea of what could be coming in the future as far as re-quests. Klave stated that at last meeting they didn't approve any dollar funds because committee wanted to know when they come in and to be brought to committee at that time and still don't have that information to date. Mr. Newman stated this is infor-mation as to what could possibly come.

Ms. Kingery reported that form summarizes all of the grants that were submitted to the State Solid Waste Mgmt. Fund, a mix of both education and implementation type projects, and District IV grants for 1996 and 1997, City provided $30,000 each year to the District to implement this grant program after the State program was sunset. She stated this will give committee ideas as to amount of dollars necessary for different sorts of programs and reviewed several items.

Moved by Lucke and Lunak to receive and file information. Motion carried.

6. Consideration of bids for traffic paint.
Mark Aubol, street department foreman, reviewed tabulation of bids, that Peterson Paint Supply, Inc. of Grand Forks low bidder in the total amount of $16,964.85. He stated they will test paint within the week; and recommended approval of Peter-son Paint Supply in the 55-gal. drums. Moved by Lunak and Lucke to accept the low bid of Peter-son Paint Supply, Inc. in the amount of $9,062.90 for white traffic paint and $7,901.95 for yellow traffic paint, for a total bid of $16,964.85 in 55-gal. drums, contingent upon meeting testing. Motion carried.

7. Matter of replacement of emergency lights at water treatment
plant.
Hazel Sletten, water supt., reported that she sent memo re. emergency lights, there was extension damage in the lower levels of the water treatment plant, including break-down, and those emergency lights were included in the damage survey for reim-bursement from FEMA, and did have an issue with the emergency -lights in the upper level of the plant, and were nearing the end of their life and have been in place for 14 years; were experi-encing maintenance issues with them and there was a need to replace the batteries in several of these light fixtures, the

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cost to replace was $575/per battery and were a two-hour battery, since the plant built, have added a stand-by power generator so no longer need the two-hour battery and were proposing to go to a 30-minute battery to allow people to get out of the building if power and generator failed. Moved by Lucke and Lunak to approve replacement of the non-flooded lights and conduit in the amount of $15,200, and to amend budget to complete the work. Motion carried.

8. Matter of easements and warranty deed for S.Jr.High School).
a) warranty deed for 1224 Walnut Street
b) alleyway and utility easement for 1224 Walnut Street
Ray LeClerc, Planning Office, presented site plan for Metro Plains Properties out of St. Paul, MN and submitted to Planning & Zoning for conditional use permit to revamp the South Jr. High School on 13th Avenue South, to accommodate their site plan and way they want their parking laid out and garages, etc. there is an existing alley that runs E/W and ties the N/S alley into Cottonwood Street. That in 1957 the City acquired a deed from the School Dist. for alley right of way and they would like to move that south about 28.5 ft. to allow for garage construction. He stated they are asking that the existing alley be deeded back to them and they would give City an alley and utility easement. He stated that the reason this wouldn't be by deed is that they would have to replat to deed part of the lot. Mr. Swanson stated that there is a problem in the City Code which doesn't allow us to deed property out except in one or two instances, 1) either publicly bid or determination made by council that value falls under their threshold. Mr. LeClerc stated that the document prepared by their attorney is a quit claim deed; Mr. Swanson stated that would have to be declared surplus and if less than $2500 sold as direct sale, otherwise publicly bid except trade for like property. Mr. Grasser stated from a maintenance aspect because the new alley easement would be in their parking lot and if consider this motion, that property owners responsible for maintenance of that area. Mr. LeClerc stated they could write maintenance into alley easement.

Moved by Lunak and Lucke to declare this as surplus property and to authorize sale of the property. Motion carried.

9. Matter of full appraisal report (landfill relocation).
Chuck Grotte, asst. dir. of public works, reported they have received the appraisal for Section 19 in Levant Township as section they had requested to be appraised for a new landfill site, that they received full appraisal for Sec. 19 and prelimi-nary appraisal on Sec. 25 of same township. He stated appraised value for Section 19 is $412,300.00 for 609.35 acres (that there is a road that runs through a corner of the section which elimi-nates other acreage), land value appraised at $676.42/acre, and motion they are looking for is to accept appraisal and authorize

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City officials to negotiate with landowner for the sale of the proper-ty. He also reported that the preliminary appraisal for Sec. 25 is $452,200, and Sec. 19 about $40,000 less on the appraisal. He reported this is about 4 miles north of Manvel, right off Hwy 81 and Hwy 1 runs over to I-29 at that location.

Klave reported they have gone through 3 years of re-siting the new landfill and ended up with 2 possible locations that would be acceptable. Mr. Grotte reported they had requested appraisal before the flood and just received week or so ago. He stated that the current landfill located near the airport is in viola-tion of various rules/regulations, and most critical landfills, lagoons and airports create a seagull problem, and are required to remove one of those, and are in process of getting permit renewed and do need to move it, don't necessary comply with the landfill requirements on environmental side and bird issue also.
It was noted that preliminary appraisal done prior to the flood and appraiser didn't take into consideration the rental value of the land and have done that now, and increased it from $265,000. He reported they were looking at spending up to $600,0-00 and this will be starting point for negotiations, however, other section of land has 7 different owners and this has one. He noted that Section 19 came out at top of rating system.

Moved by Lucke and Lunak that we recommend approval of the appraisal report in the amount of $412,300.00 for Section 19, Levant Township, and authorize staff to negotiate the purchase of the land. Motion carried.

10. Matter of update on land negotiations for Proj. 4669.3, Southend DraInway Phase 2B.
Mr. Grasser reported they made offers to the land owners there and have accepted all of the City's proposal with the exception of the lease agreement for the stockpile site, City's initial offer was $100/acre annually and they counter-offered $200/acre per year; and that on an earlier phase they ended up negotiating $2500/year for an easement, and recommendation would be to accept the $200/acre counteroffer. Moved by Lunak and Lucke to accept $200/acre per year for the lease agreement for the stockpile site, enter into lease agreement at $200/acre, and authorize execution of documents for acquisition. Motion car-ried.

Mr. Grasser reported that they have served the property owners that were going to go through eminent domain and judge has signed off on that so basically this puts together the land acquisition of the drainway, and optimistic that will be able to get this punched through to the Interstate prior to next spring's runoff.

11. Matter of authorization to request proposals for engineering
services for various projects: MINUTES/PUBLIC SERVICE COMMITTEE
July 14, 1998 - Page 7

a) Proj. 4772, Red River Dam Erosion Control and Boat Ramp
b) Proj. 4824, overlaying local streets city-wide
c) Proj. 4829, paving N. 42nd St. (DeMers to University Ave.)
Jay Bushy, project engineer, reported this item is to request proposals from engineers for these various projects, that Pro-jects 4772 and 4824 have CDBG funds and are in the cost matrix. Project 4772 has $1.2 million and 4824 has $1.5 million in matrix. He reported that c) 4829 has ER funds from FHWA, that road used as a haul road during flood and basically pu-tting it back and reconstructing to its pre-flood condition and also has CDBG funds for local match. Moved by Lunak and Lucke to approve RFP for selection of a consulting engineer. Motion carried.

12. Matter of 3-way agreement for utilities and paving in a portion of Perkins 4th Addn.
Mr. Bushy reported that the agreement will be with Pribula Engineering and is for sanitary sewer, stormsewer, watermain and paving, and the area they are requesting utilities for put cul-de-sacs on 36th Ave.S. and engineering staff will meet with their engineer as there are some concerns on depths of the sanitary sewer to the cul-de-sacs. Mr. Grasser stated they will address those comments when come in with plans and specs. Moved by Lucke and Lunak to authorize entering into the three-way agree-ment. Motion carried.

13. Matter of amendments to eng. services agreements with Greater
Forks Engineering Group for southend development projects: a) Amendment No. 3 (design engineering):
Proj. 4848, Lift Station 39
Proj. 4849, Lift Station 40
Proj. 4850, Lift Station 41
Proj. 4851, Forcemain from Lift Station 39 to 62nd Ave. S., along 62nd Avenue and north along Columbia
Proj. 4852, Forcemain from L.S. 41 to 62nd Ave.S., along
62nd Ave. to 11th St.
Proj. 4853, Forcemain from L.S. 40 to Columbia Road
Proj. 4854, Forcemain on Columbia Rd. from 17th Ave.S.
to 24th Ave.S.
Lon Aune reported that at the last meeting they went through process to get into the overall general agreement with the Greater Forks Engineering Group and is bringing a series of amendments. Mr. Aune distributed copy of Amendment No. 3 related to series of projects that will be related to lift stations and forcemains serving a large area of the southend development; and reviewed the projects. He reported that the amendment is to enter into engineering services for preliminary design, final design and bidding phase portions of these several projects. He stated overall cost for these amendments is $281,844.15 through bidding phase for engineering services, and all items are in-volved in the matrix and will be getting these started and designed so get under contract prior to next summer.

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Mr. Grasser reported that they've had authorization for $15 million for the southend development, and these are specific projects that are coming in within that original $15 million, first phase is to do engineering to get the design, cost esti-mates, locations, etc. and are attempting to do projects that will take long time to design and install, and when get into c) and b) are project that they hope to install this fall, and will want to interject language that it is approved for CDBG funds to make sure covered and will be following up with an engineer's report once develop projects further and outline individual project costs, and also that this is coming out of the $15 million for southend development.

Moved by Lucke and Lunak to approve Amendment No. 3 to the agreement in an amount not to exceed $281,844.15, contingent upon final review by city staff and to allocate $281,844.15 of CDBG funds for the above referenced projects; this funding is part of the $15 million southend development appropriation. Motion carried.

b) Amendment No. 4 (design engineering):
Proj. 4843, watermain on S. Washington from 47th Ave.S.
to 62nd Ave.S.
Mr. Aune reported this is Amendment 4 to general contract, and reviewed project. He stated that Charles Vein was here to explain any technical issues; and that this is for engineering services for preliminary, final design phases as well as bidding phase, at $36,750 for completion of this work and would fall under same parameters that Mr. Grasser outlined.

Moved by Lucke and Lunak to approve Amendment No. 4 to the agreement in an amount not to exceed $36,750.00, contingent upon final review by city staff and to allocate $36,750.00 of CDBG funds for the above referenced project; this funding is part of the $15 million southend development appropriation. Motion carried.

c) Amendment No. 5 (design engineering):
Proj. 4844, storm sewer on 20th St. from 36th Ave.S. to
40th Ave.S.
Proj. 4845, storm on 34th St. from 36th Ave.S. to 40th
Ave.S.
Proj. 4846, storm sewer on 40th Ave.S. from Washington
St. to southend drainway.
Mr. Aune reported this is Amendment No. 5 to general contract and is for storm sewer segment, these will be trunk lines with laterals attached; the amendment is for engineering services related to the design, both preliminary and final, as well as the bidding phase for each of these segments and total cost of amendment is $71,914, with same parameters.


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Moved by Lucke and Lunak to approve Amendment No. 5 to the agreement in an amount not to exceed $71,914.00, contingent upon final review by city staff and to allocate $71,914.00 of CDBG funds for the above referenced projects; this funding is part of the $15 million southend development appropriation. Motion carried.

14. Matter of Cost Participation and Maintenance Agreements for
various projects:
a) Proj.4655, paving S. Washington St. (24th to 34th Aves.S.)
b) Proj.4225.2, paving S. Washington St. (34th - 40th Ave.S.)
Mr. Bushy reported these agreements will be with the State, for a) an 80-10-10 split with 80% from State Regional Funds; and b) on 80-20 split with Urban Funds and come out of the State pocket for doing urban type roads for various years, and is to enter into agreement with the State to do these projects.

Klave reported that early on when did the South Washington project there was lot of discussion of elevation of S. Washington and had real concern to make sure there would be flapgates to stop any water flow from east to west and had State agreement on that but now going on to the next division and they are starting to scoff at flapgates, that they don't think they should be in there and if agree on the agreements that they need to emphasize that they are still strongly wanted and requesting flapgates to be a part of the project so if need to can stop waterflows. He stated that the extension of S. Washington Street is 80% funded and if lose 20% share or if goes to a vote of the assess-ment district the City's chances of getting the 80% back from the State could be slight as they will reallocate those funds once project stopped, nor will they guarantee to hold those funds.

Mr. Grasser reported that the State has informed the City that if they have a project that goes through the process and gets dropped they are not guaranteeing that the monies will be brought back, and saying very likely that money will be reallocated someplace else and would lose those funds. He stated that's why the original engineering recommendation was to look at CDBG funds and possibly something council should discuss when going through cost matrix, and that it was referred to the Tri-chairs, which no longer exists, but want council to be aware.

Moved by Lucke And Lunak to enter into the agreements with the North Dakota Department of Transportation and authorize proper City officials to sign the agreements, and further that the City strongly recommend that installation of flapgates be a part of the projects. Motion carried.

15. Matter of creating special assessment district:
a) Proj. 4838, Dist. 399, san. sewer on S. 20th St. (40th to
47th Ave.S.)

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Mark Lambrecht, CPS, Ltd., distributed copies of engineer's report and stated this is first step to set up special assessment project which is done prior to engineering plans and reviewed with the committee. He reported that the new school is sharing the Park District's lift station built for Ulland Park, that it is a small lift station and can work during an interim period but not a permanent solution to take wastewater from the school. He stated that to the north in the center of the section 21, see a future lift station that's presently under design by WFW and that's half mile due south of Happy Harry's located along 32nd Ave.S. and that will function to ultimately serve this whole section of land and into the school area. He reported that the School does have some money for DSR's that they can earmark towards putting in the infrastructure off-site leading out to the School, and School will upfront quite a bit of the cost of this project, he stated this is an expensive project because of the deep gravity sewer so that laterals can be extended off in the future to serve whole area south of the lift station. He stated School Dist. will upfront cost to as great a degree as possible and area outside the city limits is a future assessment district and area inside city limits is a tapping fee area so City can recoup costs.

Mr. Grasser reported they are creating district to provide ability to recoup the costs, expect School to pay for this through their DSR and part of the agreement, and in event do some negotiations with landowners, they may say they're not interested in recouping these costs and whole district will go away, but to cover all contingencies want to set up district so monies can be recouped on behalf of the School if need be. He stated they originally were proposing that a sewer and a watermain go down 20th Street, paid for through School's DSR, but appears with cost of this sanitary sewer the monies available to put the watermain in are in great jeopardy, part is that School requested that they extend farther south than originally thought and recent bids have shown the costs of some of that deep sewer has gone up. He stated they will wait until receive bids on this project before evaluating if can bring in the watermain project. He stated that everybody along the route will benefit by sewer line being there but primary instigator of the sewer is the School because they have been issued a DSR to provide utilities to the school and have funding. He stated that sanitary sewer non-protestable.

Moved by Lunak and Lucke to adopt a resolution creating the 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 these improvements. Motion carried.

16. Matter of plans and specifications for various projects:

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a) Proj. 4586, 4587 and 4588, san.sewer, watermain and storm
sewer in Countryview Addn.
Held until next meeting.

b) Proj. 4836, storm sewer on Belmont Rd (55th - 52nd Ave.S.)
Mr. Aune reported this project through Greater Forks Eng. Group and reviewed project, and this is recommendation for approval of plans and specs. to proceed with the bidding phase requirements and move it on into actual construction. He stated there is a CDBG engineering report that they have available for staff. Moved by Lucke and Lunak to approve plans and specifica-tions, contingent upon engineering department review. Motion carried.

c) Proj. 4795, Dist. 556, paving N. 53rd St. and 12th Ave.N.)
Mr. Bushy reported this project went through public service the 6th of June for approval of engineer's report, and are requesting approval of plans and specs. Moved by Lucke and Lunak that we pass a resolution approving the plans and specifications for this construction and further that the city auditor be direct-ed to advertise for bids on the project. Motion carried.

d) Proj. 4225.2, Dist. 560, paving S. Washington St. (32nd to
40th Ave.S.)

Mr. Bushy reported that this is State project extending Washington from 28th to 40th Aves.S. and just approve cost participation and maintenance agreement for the project. He stated that the issue is with the flapgates, State doesn't want to participate in that. It was noted probably add by change order with 100% City cost.

Moved by Lucke and Lunak that we pass a resolution approving the plans and specifications for this construction and further that the city auditor be direct-ed to advertise for bids on the pro-ject. Motion carried.

17. Consideration of construction bids for various projects:
a) Proj. 4522, Dist. 554, paving Cherry St. (47th Ave.S. to
Southend Drainway)
Mr. Bushy distributed copies of tabulation of bids. Mr. Grasser reported that they originally thought that site would be available first of August, that he talked with low bidder because site won't be available until mid-August and he indicated that he had no problem accessing that site at a later date, so potential of litigation for project delays not a problem. Mr. Bushy reported that Valley Contracting is the low bidder and they would recommend awarding bid to them. Moved by Lunak and Lucke to accept the low bid of Valley Contracting in the amount of $242,852.08. Motion carried.


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b) Proj. 4661, Dist. 391, sanitary sewer on S. 34th St. (32nd
Ave.S. to Lift Station #38)
Tom Hanson, WFW, submitted tabulation of bids, 3 bids re-ceived that were not opened: Robert Gibb & Sons did not acknowl-edge the addendum on the outside of the bid envelope and no affidavit of non-collusion in outer envelope; the bid of ICS, Inc. had no affidavit in its outer envelope; and H & W Contract-ing had no acknowledgement of the addendum; and those bids not opened. Moved by Lucke and Lunak to return the unopened bids as they did not meet bidding requirements. Motion carried.

Mr. Hanson reported that the bid of Dakota Underground Co., Inc. did not enter an amount for the trench design and is an incom-plete bid essentially. (they were high bid)

Mr. Hanson reported that Molstad Excavating is low bidder in the amount of $767,031.00 and next bid is United Crane at $980,041.00 and engineer's estimate was $960,000 and is significant differ-ence, that they talked to Molstad to verify that he didn't make mistake in preparing his bid and he indicated that they didn't make mistake and wished to proceed with the project. He reported that they have not received environmental clearance for the CDBG funds for this project and make tentative award until that's received.

Moved by Lucke and Lunak to accept the low bid of Molstad Exca-vating, Inc. in the amount of $767,031.00, contingent upon environmental review. Motion carried.

c) Proj. 4752 and Proj. 4753, Rehabilitation Sanitary Lift
Stations #9 and #11.
Mr. Hanson reported they received bids on Friday, there is an error which becomes significant and which is shown on the second page of tabulation: Moorhead Construction bid on item B-4 $20,960 each for the pumps and bid on other schedule for same pump was $10,480, and made mistake and way rules written and copy of award procedure is that the unit price governs and do the math so their number becomes $41,920 and no longer low bidder; and based on that their recommendation is they find Smith Construction as low bidder on Schedule B General and Rick Electric low bidder on electrical portion of the project, $143,000 and total of the two bids is $246,480, which is less than $255,047 of Moorhead Con-struction for Schedule A. Mr. Swanson stated they wouldn't have to do any separate motion but relying upon unit price in the bid and have recalculated at that unit and award to apparent low bidder.

Moved by Lucke and Lunak to accept the bids under Schedule B as follows: General contract, Smith Construction Co., Inc. in the amount of $103,480, and Electrical contract, Rick Electric, Inc. in the amount of $143,000, for a total bid of $246,480. Carried.

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18. Matter of change orders for various projects:
a) Proj. 4706, watermain on S. Washington St. to serve New
Middle School, Change Order #1
Mr. Lambrecht reviewed change order in the amount of $14,894
and is within overall budget for the project (Soberaski, Inc. contractor). Moved by Lucke and Lunak to approve the change order in the amount of $14,894.00. Motion carried.

b) Proj. 4687, Sewer Cleaning and Televising, Change Order #5
(Viking Pipe Services Co., Inc., contractor) Mr. Hanson reported as they were reviewing video tapes, find places where there are faults in the sewer and can't tell extent of the problem and have been asking contractor to go back in and tele-vise with pan and tilt camera where can rotate and look up in the fault, determine size of cavity and extent of problems so can tell whether repaired immediately or wait for the repair. He stated that the way contract is contractor gets paid by the foot to go in and do that and get gets backout charge of $185.00 and if knows where that fault is, he can zip in quickly, look at and pull back immediately so have negotiated a payment process at $155.00 per hour and that's usually about 45 min. process so trying to do economically. Moved by Lucke and Lunak to approve change order at no cost, and that CDBG money may apply to por-tions of this work. Motion carried.

19. Matter of special Public Service Comm. meeting on 7-20-98 for
award of Proj. 4825, paving 47th Ave.S. (Cherry to Wash.St.)
Committee scheduled meeting for Monday, July 20, at 7:15 p.m.

20. Matter of BNSF pipeline permits.
Keith Johnson, asst. city eng., reported they have applica-tions for two separate pipeline permits from BNSF RR, one is a storm sewer project on 2nd Avenue N. and 10th Street, and have received some correspondence back from BN R/W people and 2) has to do with 4th Street watermain replacement on Kittson Avenue; that Mr. Swanson has reviewed applications and raised some questions on what the City's insurance carrier would cover and some of the items in BN lease and he suggested they could dele-gate the authority to the city engineer to make these applica-tions and negotiate with BN for pipeline licenses.

Mr. Swanson reported that RR used to have one-step process, and appears they have new agent representing them and have two step process to submit formal application where do work on RR RW, and suggesting that the commit-tee as a permanent matter delegate the authority to city engineer to make that initial application and after negotiations every agreement come back through committee and council. Lunak ques-tioned whether he could vote on matter; Mr. Swanson stated he didn't think legal conflict of interest, however, Lunak did not wish to vote on the matter. Moved by Lucke and Klave to delegate the authority to city engineer to

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July 14, 1998 - Page 14

make initial application, and agreement to be returned to commit-tee and council. Motion carried; Lunak abstained.

Mr. Johnson stated that both of these items are a time crunch; however, Mr. Swanson stated the agreement will need council action, that RR has added higher limits of insurance and transfer of liability to the City and not sure our carrier will agree with requirements they are asking.

21. Matter of blacktop machine for street department.
Todd Feland reported this matter had been referred to the finance committee to see if there were funds available for this equipment; and reported that the finance committee had deter-mined that there are funds available in the general fund cash car-ryover for this equipment, and referred the matter to this depart-ment for consid-eration of purchase of equipment. He reported that their machine is inadequate for needs of the street department and machine looking at est. at $80,000, including $35,000 for dedicated truck. He stated there is a lead time to get a truck, between 6 to 12 months, and would like to get approval to look at some of these machines to fit City's needs and to write specs. (two machines in Mpls. area). Moved by Lucke and Lunak to autho-rize staff to write specifications and call for bids. Motion carried.

Meeting adjourned at 7:15 p.m.

Alice Fontaine
City Clerk
Dated: 7/16/98