Committee Minutes
FINANCE DEVELOPMENT STANDBY COMMITTEE
June 17, 2009 - - 4:30 p.m. - - Urban Development Conf Room
Minutes
Present:
Christensen, Glassheim, McNamara
Absent:
Gershman
Christensen called the meeting to order at 4:30 p.m.
1. Bids for Project No. 6303 – Reconstruction of English Coulee Shared Use Path from 24
th
to 17
th
Avenues South.
Bill Hutchison, President Park Commission, and John Staley, Director of the Park Department, were present at the meeting, along with Al Grasser, City Engineer, Mark Walker, Asst. City Engineer, Saroj Jerath, Director of Finance, and Candi Stjern, Senior Accountant, from City staff.
Grasser gave a brief overview of the project history. He explained that the City had submitted this to NDDOT on behalf of the Park District and the project was approved in April 2008, at which time the estimated cost of the project was $185,000, with a federal share of $148,000 and local cost of $37,000 plus engineering costs. The City signed a joint powers agreement with the Park District in May which designates cost responsibility for local share and all engineering to the Park District. An engineering contract was negotiated with CPS for $41,000 in July 2008. When the PCR was completed for the project the cost estimate changed to $207,000, which increased the local share to the Park District to $58,800 and when bids were received in May 2009 the actual bid plus contingency came in at $270,000 which again increased the Park District’s local share to $122,000, not including the engineering cost of $41,000.
Grasser noted that despite the increase in estimated project cost, once the NDDOT approves an allocated amount for Federal Cost Share, that amount is locked in and any additional costs all go to the Local Share. Grasser continued that based on the large increase in the amount of the Local Share the Park District is bringing a request to the City to see if the City would be willing to assist in the Local Share.
McNamara asked whether there was any precedent to rely on where we had an agreement with an entity. Grasser stated that this is different type of arrangement and really no history either way.
Glassheim inquired where the funding for the bikepaths in the City budget come from and whether there are any projects on City-owned paths that the budgeted funds could be used for this year. Saroj stated that they are budgeted from Sales Tax Infrastructure at $100,000 per year.
Grasser stated that there are always maintenance needs, but greatest needs on the system would be Proj. 6303 being discussed today and the section of path near UND from University to 6
th
Ave N. He continued that this section has been needing attention dating back to damage that was done during 1997 flood and have been working for assistance with this, but seems like best option at this time is to just get the work done and repair the path. He noted that from a technical point and to benefit the bike path system as a whole, the City offering some funds to assist with Proj. 6303 would be a good technical use of funds. Christensen asked whether this is the section that we lighted. Grasser replied that the section to be repaired this year is just south of what was lighted, lighting goes from 6
th
Ave N north along the coulee. He continued that we did receive stimulus dollars to do work on the path along 42
nd
St., but that those dollars can not be used for repairs, only construction.
Christensen stated that when he attended the meeting and brought up potential City assistance with the local share he had not been aware of the joint powers agreement and had he been may not have brought the City into it.
Hutchison explained that former Park Commissioner Jeske had encouraged the Park District to look at doing the repairs on this section of path, as through her use she had noticed the state of disrepair the section was in. He explained that the Park District then approached the City and asked that they apply for a grant on behalf of the Park District and still agree that the project needs to be completed. He continued that any help the City decides to offer would be appreciated by the Park District, but at this time they are not interested in a loan from the City for the project.
Jerath asked whether there were any projects planned for the budgeted amount for 2009. Grasser responded that typically look at on an annual basis and prioritize the needs and do as many as possible with budgeted dollars, but other than the project near UND for $65,000 no other set maintenance projects for this year.
Glassheim asked what the Park District had anticipated its costs would be when they started the project. Staley responded that they were assuming around $60,000 based on estimated local share and engineering costs; but not up to $163,000, including engineering costs.
Motion by Glassheim to amend the Joint Powers Agreement for the City to pick up an additional $30,000 of project costs. Second by Christensen.
McNamara commented that he understands the need for the project, but believes that the City should concentrate on its own section of the path and the Park District should maintain their own and his concern is that we could have other needs develop on our section which is much larger than what the Park District has and should save the funds to address our own need.
Staley commented that there is a precedent that has occurred in the past when the City has shared federal dollars and the City did receive some infrastructure stimulus dollars and were thinking this could potentially be use if the City were willing. Grasser replied that the City did receive stimulus dollars, but those funds had already been applied for specific projects and allocated to those projects and have no ability to add in this bike path project. He noted that had the City been approached 6 months ago when the applications were being prepared it would have fit the technical requirements for the stimulus funds.
Grasser continued that he would encourage Council to at least look at a loan type scenario if that would help the Park District out for cash flow purposes and would still maintain the separation between the two entities. He added that he does have a concern if the City has to turn back the grant if the Park District is unable to award the contract and proceed due to cost as the City is the applicant and it could affect future awards. Hutchison stated that regardless of the City’s decision on assisting with the project costs, the Park District does plan to go ahead and award the bid.
Upon call for the question: Aye: 2, Nay: 1. Motion Carried.
Christensen commented that based on the agreement he would not normally have supported City assistance beyond that in the agreement, but in this case, the Engineer’s missed the estimated cost by a large amount and the City does have funds available that have been anticipated to be used for bike paths and that is basis for his vote.
Grasser noted that the $30,000 splits the amount that the engineer’s were off. He stated that the Park District is meeting at Noon Thursday to consider the bids and would need them to authorize the City to accept the bids at that meeting.
Meeting adjourned 5:00 p.m.
Respectfully submitted,
Sherie Lundmark
Admin Spec Sr.