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MINUTES/PUBLIC SERVICE COMMITTEE
Monday, July 25, 1994 - 7:00 p.m.

Members present: Beyer, Hamerlik, Klave.

1. Consideration of Amendment No. 2 to architect/engineering
agreement with TKDA for Project 4117, renovation of public
works facility.
Ken Vein, city engineer, reviewed letter form of agreement (Supplemental Agreement No. 2) with TKDA for Project 4117, renovation of public works facility, and recommendation from Mark Lambrecht, asst. dir. of public works, was that the amendment was justified and he recommended that it be approved, and as part of project budget has included this $20,000 amendment. He reported that the additional amount is for modification where they went to three-phase project (additional design services provided to develop an intermediate model layout representing a third stage of evolution for the public works facility project). He also reported that size of facility is such that only street department, vehicle maintenance and electricians will move in under Phase 1; Phase 2 when New Flyer moves out, sanitation moves in; and third phase when wastewater, stormwater, water and water maintenance move in.

Mr. Hamerlik asked what will happen to existing buildings. Mr. Vein reported that street dept. building on N. Washington purchased by Acme Electric, building on Mill Road will be vacated and offered for sale in the future, and if go to third phase, which they are planning for, but not take place in the next few years, didn't know what would be done with those buildings.

Moved by Hamerlik and Klave that we recommend approval of Supplement No. 2 to the agreement with TKDA to increase maximum "not to exceed" amount by $20,000. Motion carried.

2. Communications from District IV Solid Waste Mgmt. Board:
a) Project to identify potential landfill sites
b) Request for funding to promote recycling.
Held in committee until August 8 meeting.

3. Request from new Flyer Industries for landlord mortgagee
waiver.
Don Olson, attorney for New Flyer, reviewed request for landlord/mortgagee waiver; that New Flyer exists in about 4 or 5 different affiliated corporations, those corporations in aggregate are restructuring debt with a lender based in Chicago, $15 Million loan for the US operations; that in connection with refinancing the lender, Congress Financial in Chicago, has asked all corporations affiliated within New Flyer to obtain from landlords a landlord's waiver. He stated this is an agreement that says the rights of the lender are superior to the rights of the landlord with respect to the property located on the leased premises that the lender has a secured interest in, that in ND since we don't have a landlord's lien, the lender has a perfected MINUTES/PUBLIC SERVICE COMMITTEE
July 25, 1994 - Page 2

security interest right now in the personal property and as a matter of law the City is in second position. He stated the lender wants to make contractual with the City that which he believes already exists under the law, which is that the lender has a preferred security position; that this would only happen in the event of a default, and if a default were to happen, lender would have right to come in and seize the collateral (equipment and personal property) in the leased premises.

He reported that Howard Swanson has reviewed and some changes have been made: one, that lender had asked for 90-day period of time to cure default, to work out a default that may exist in the payment of rent so that New Flyer can continue on with operations. and to secure another operator if New Flyer couldn't work things out, and have reduced time frame from 90 to 60 days. He stated that the total amount that City would forgo in rents for that time frame would be no more than $14,000 but less than $15,000; that lender fix property in event of damage in taking property out. He also stated that there is a 30-day security deposit of $7,000 City is holding in event of default in payment of rent or in other default that would cost City some money. He stated that they are closing on this tomorrow in Chicago. He stated they were asking committee to consider that the Mayor be allowed to proceed and sign agreement, along with city auditor, on the basis and subject to ratification and approval at the next council meeting and then re-execute agreement at that time.

Mr. Swanson advised committee that the Mayor doesn't have the authority to sign; and gave mayor number of options: 1) do nothing until after next Monday; 2) sign and hope council approves it; 3) call special meeting of the council; 4) sign document and call special meeting. He stated New Flyer trying to refinance, lender calling shots, that they have worked out viable agreement. He reported that his advice to mayor that only policy decision whether want to enter into agreement, whether have lender come in for period of 60 days without rent; have worked out legal issues to mutual satisfaction. He advised committee that if you find in event of a default that lender would have 60 days to occupy premises without paying rent, if acceptable, recommend that you approve appropriate officials to sign documents; but to tell lender that mayor doesn't have authority to bind agreement in final form but give preliminary approval. He stated that what agreement does is subordinate any rights that we have to levy upon assets of New Flyer to the lender.

Mr. Olson stated that this same agreement submitted to other landlords and is a requirement of getting the loan, $15 M on US side and $7 Million on Canadian side; that there's short term remaining on New Flyer lease in the Coke plant building, that they need new facility as they are planning significant expansion of the plant in Grand Forks, plan is that these buses will be

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finished off in New Flyer-ND. He also noted that New Flyer employs 60 to 70 people in non-agricultural type business.

Mr. Swanson reported that New Flyer has been excellent tenant; and have negotiated agreement he can live with, only problem is matter of timing.

Mr. Vein stated that New Flyer's lease up in April, will probably give extension so they can look at building new facility.

Moved by Hamerlik and Klave that this committee recommend to the council and mayor as favoring the agreement and that it be signed when appropriate. Motion carried.

4. Matter of pilot testing of filter belt press equipment for
water reclamation plant.
Held in committee.

5. Matter of creating special assessment districts:
a) Proj. 4247, Dist. 354, forcemain along 48th Street from
32nd Avenue South to master lift.
Al Grasser, asst city engineer, reported this project will serve Columbia Park 22nd and 23rd Addns. (Travel Plaza and GFG), reviewed project, and noted that special assessment district created for area within city limits, and future assessment district costs to be recouped by City. Moved by Klave and Hamerlik that we pass a resolution creating the assessment district and identifying future assessment area, 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 further that we declare intent to sell bonds to finance these improvements. Motion carried.

b) Proj. 4218, Dist. 351, temp. lift station at 32nd Ave.S.
and S. 48th Street.
Mr. Grasser reviewed project to serve Columbia Park 22nd and Columbia Park 23rd Addns., and stated there is no future assessment area in this project. He noted that Truck Plaza negotiating on Lot 2), that the future permanent lift station will be located slightly south and the whole area assessed. Moved by Klave and Hamerlik that we pass 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 further that we declare intent to sell bonds to finance these improvements. Motion carried.

c) Proj. 4044, Dist. 530, 6th Avenue N. reconstruction from
Columbia Road to State Street.
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Held in committee.

6. Matter of authorizing engineering dept. to prepare plans and
specs. for flood hazard mitigation projects.
Mr. Grasser reported these projects resulting from last year's flood, as part of disaster declaration, and qualified for federal funding (75%-25% local share) and submitted listing of proposed projects:
1) electric pump behind water treatment plant, total cost $4,700, City's share $1,175, will do work in-house.
2) culvert and flapgate at N. 55th St. and 6th Ave.N., total cost $3,718, City share $930, this work already done; will be recouping some costs and dedicate to Richard's West storm sewer project.
3) culvert at Alpha Avenue, total cost $4,867, City's share $1,217; this work has been done by street dept. and are requesting reimbursement for that work.
4) culvert and flapgate at Red Dot Place and Alpha Avenue: total cost $7,590, City's share $1,898.00.
5) storm lift at Riverside Drive: total cost $46,640, City's share $11,660; this involved 2 gravity discharge sewers, have to cap when river comes up and then provide drainage; master plan to put in electric pumps, going to combine 2 with permanent pumping station.

Moved by Klave and Hamerlik that we authorize city engineer to proceed with plans and specifications on these projects, with City's share from 1989 flood control budget. Motion carried.

7. Matter of policy for funding of extra-depth sanitary sewers.
Mr. Grasser reported they had request from one of the local developers for mechanism to defer cost of deep sanitary sewers (extra depth defined as sanitary sewer deeper than 24 ft.), developments get smaller and less lots and area to recoup costs, they are looking for more equity. It was noted that the engineering determines depth of the sewer; and that they bring up a valid point, that just because closer to lift station, should they bear significantly higher cost to install gravity main. He stated that developers asking that anything beyond certain depth, fees be carried by the City or have an opportunity to be reimbursed; and questioned whether City should consider. Mr. Vein questioned whether to make exceptions and not create policy.

Held for 2 weeks.

8. Matter of setting public service meeting prior to council.
Mr. Grasser reported that bids for Project 3821, Richard's West Storm sewer and Lift Station #84, came in high, about $230,000 over engineer's estimate; had meeting last week with John O'Leary, Tom Hanson and John Schmisek, and need to determine whether to proceed without all federal funding being in place;

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Mr. O'Leary can come up with some money for residential storm sewer out there, question is EDA funding which is significant amount of money, $365,000; questioned whether City going to proceed without EDA funding; and problem is according to bid specs. have 30 days to award contract, need to determine at next council meeting. He also reported that letter has gone out to Industrial Park property owners, notifying them of est. cost based on bid.

Mr. Klave stated that he had received call from Ron's Electric, that until 51st Street completed past their business they would receive no benefit, that they have drainage problem now during heavy rains.

Mr. Vein stated that original project approved without any federal funding, once got project grant, no assessment for residential property; businesses on North 51st Street will receive normal assessment and wait to tie into forcemain. Mr. Swanson noted that Ron's Elec. paying for capacity for future use. Mr. Klave stated that water on streets, etc. won't drain from Ron's lot south; Mr. Vein stated they will look at that.

Mr. O'Leary reported that EDA gave authorization to bid and to award bid, and if grant comes through re-imburse. Mr. Vein questioned whether we could rebid and still hold onto grant. Mr. O'Leary stated he would check on that. Mr. Vein stated they could bid in November (when contractors not so busy) for 1995 construction; and suggested that if decision is to rebid, to stop letters from going out. It was not known if letters had been mailed to the property owners.

After further discussion the committee scheduled meeting for 7:00 p.m. on Monday, August 1.

Mr. O'Leary informed committee he had another meeting on Monday at 7:00 but would have another staff person at this meeting.

9. Matter of sanitary sewer on N. 51st from 6th to 7th Aves.N.
Doug Herzog, CPS, Ltd., engineer for Sun Land West, reported he had talked to Dan Schmaltz; that on his proposed development of Sun Land West there is piece of sanitary sewer that was put in 12-15 years ago that is too shallow to get to far corners of development, and in developing plans and specs for first plat it was their understanding that portion assessed through entire area; not enough time to proceed with project on 7th Avenue North. He reported that Mr. Schmaltz would be willing to put in privately if some form of reimbursement for the re-lay of the 600 ft. of sewer; that he would like to proceed with the projects in Sun Land West (san. and storm sewer and watermain) and work out details on deep sewer. He noted that there is a 3-way agreement in place to do utilities for developer.

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Mr. Grasser reported that developer is asking to develop pc. of property, originally City was going to be engineer on the project, however, he wanted to do things we couldn't do; he has variance from Planning and Zoning for eliminating intersecting street, that they would normally run deep sewer up middle of street, that most cost-effective long-term solution is to re-lay sanitary sewer to bring up to 10th Avenue North, that their recommendation was to re-lay that sanitary sewer and to provide access to immediately adjoining property; that part of the problem is there is trailer park on south side and difficult to install deep sewer, and in order to get depth looking at re-laying sewer. Mr. Grasser also reported that the need to re-lay the sewer is only because of way developer chose to lay out area; they made provision for sanitary sewer to serve this area, now looking for another option because of decision developer made.

The committee discussed the matter of creating assessment district and a future assessment district area for relaying of 600 ft. of sanitary sewer and completing the sanitary sewer to the north end of the development. Mr. Grasser stated they would bring assessment district in prior to next council meeting.

Mr. Hamerlik stated he doesn't feel comfortable making decision without developer being present. Committee directed that proposal for an assessment district and a tapping fee be presented to developer and if he doesn't agree to bring back Monday evening.

Held until Monday, August 1, at 7:00 p.m.

10. Matter of plans and specifications:
a) Proj. 4228, san.sewer for Sun Land West First Addn.
b) Proj. 4229, watermain for Sun Land West First Addn.
c) Proj. 4230, storm sewer for Sun Land West First Addn.
Mr. Grasser recommended approval subject to matter of sanitary sewer on 51st being worked out. It was moved by Hamerlik and Klave to approve plans and specifications, contingent upon engineer's comments and submission of master plan. Motion carried.

Mr. Herzog reported they have received approval of plans and specs. from the ND State Health Department.

11. Matter of forcemain and construction easement, Proj. 4169.
Mr. Grasser presented matter of temporary construction easement and forcemain easement for Sanitary Sewer Forcemain Proj. 4169, located on S. 48th Street extended between 17th Ave.S. and 32nd Ave.S. for and in consideration of $1,770.00, plus $5,000 surety funds to be placed in escrow and refunded upon receipt of letter of approval from Lois I. Maier, grantor, following project completion. He noted that the $5,000 surety

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funds were to insure everything put back to property owner's satisfaction. Moved by Klave and Hamerlik to approve easement and authorize proper City officials to sign said easement. Motion carried.

12. Matter of change order #1 for Proj. 4081.
Mr. Grasser reviewed change order for project; and noted that project set up 2 years ago, and in working with developer did in two stages, 27th Ave.S. in 1993 and 21st Street in 1994, and that because existing subgrade could not support construction equipment and could not be uniformly compacted to form the paving base, that material was removed and replaced with crushed concrete base with fabric, cost $24,860.50, and that work was completed last week. Moved by Klave and Hamerlik to approve the change order. Motion carried.

Meeting adjourned.

Alice Fontaine
City Clerk

Dated: 7/26/94.