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MINUTES/PUBLIC SERVICE COMMITTEE
Monday, January 30, 1995 - 7:00 p.m.

Members present: Beyer, Hamerlik.

1. Matter of once a week garbage collection.
Ken Vein, city engineer, reported that they have been looking at this, but before getting into it, need to get better handle on what costs are; will be updating statistics and data within the department and working with the auditing department to get costs within house. He asked the committee to refer this matter to the public works department, that they may want to look at process and costs at landfill. He reported they are entering into contract with Burns & McDonnell for siting of landfill. Mr. Vein stated they might want to consider public hearing or survey.

Mr. Hamerlik asked staff for copies of past surveys, etc. that he could review.

Moved by Hamerlik and Beyer that we refer this matter to the public works and engineering departments for further study and report back to the committee within reasonable length of time. Motion carried. (Committee only)

2. Matter of bidding process re.local preference.
Mr. Hamerlik stated that quality and costs are two more important factors in any bidding process, and asked that some consideration be made to see where council may be on local preference; that in the past some mandates on local preference, however, State statutes have changed; that even if legally not permissible still some things can do to get that changed.

Mr. Swanson, city attorney, reported that they have researched this issue on number of occasions and conclusion consistent with research done, find that majority of states that have reviewed local preference, the Appellate Court has struck them down on either basis of equal protection, a due process violation, or simply that arbitrary or capricious, and in some instances struck down as violation of federal constitutional commerce clause. He stated that minority of states have allowed preferences to stand, which have been tied to some type of state enabling legislation or property tax legislation. He stated that they find that those people eligible to challenge preference would be any bidder that would have been low bidder except for some type of numerical preference and any taxpayer. There is no case law in North Dakota deciding preferences so no references that he can give committee from ND Supreme Court, and that he believes they are suspect. He stated they would need to determine what is resident, what period of time, if tie to property tax, etc. He stated there would be risk of litigation, and could cause delay in projects. He also noted that City wouldn't have to bid professional services, but supplies, materials and construction; that federally funded projects would have to be bid and most of those it would not be legal to have local preference; that for locally funded projects

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may be eligible to consider, but wouldn't recommend it.

There was some discussion re. how define "local"; possibly through payment of property taxes, length of time there, number of miles could be incorporated into it.

Mr. Swanson also advised committee that either he, the mayor or John Schmisek have testified in various hearings in Bismarck, that in an attempt to limit the tax on local sales tax one of the most frequent criticisms heard in Bismarck is, why should non-resident of Grand Forks be obligated to pay the Grand Forks sales tax; we have stated that the City provides facilities and services for people entering the city limits, that we are a regional community providing services and facilities to the region, and the general theme of attempting to limit your contracts to your city limits or to some type of closed limit, seems inconsistent with us taking position that our sales tax should apply to anyone doing business within the city limits;
concerned because this is fourth session that he has appeared in Bismarck on sales tax issues, concerned that these types of issues creating local favoritism might come back to haunt us.

Mr. Grasser also noted that in consideration of determining what is local to consider that number of contractors doing City projects are outside corporate limits of the city.

Moved by Hamerlik and Beyer to hold in committee, to see comments/discussion in other committees. Motion carried. (committee only)

3. Matter of change orders for Project No. 3832, pre-aeration
wastewater cells.
Keith Johnson reviewed change orders with the committee.
a) C.O. #3, Moorhead Construction Co., Inc., $2,382.55
to provide flexible hose, quick coupling connections and DIP for transfer piping between manholes.
b) CO. #3, Samson Electric, Ltd., $2,773.00, for replacement of pond drainage pump fused disconnect and remounting existing motor starters. He noted that these change orders have nothing to do with the fire. Moved by Hamerlik and Beyer to approve the change orders. Motion carried.

4. Matter of Solid Waste Management Fund grant for paint re-
cycling program.
Mark Lambrecht, asst. dir. of public works, and Christi Stonecipher, recycling coordinator, reported that City had been awarded grant to help fund a latex paint recycling program, City to purchase two paint-mixing machines, that people will be able to bring in unused paint to a collection site twice a year (May and October), with used paint donated to charitable organizations, total cost to start program $7,590 and grant

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January 30, 1995 - Page 3

reimbursement of $4,560, and asked for motion to authorize city officials to enter into grant agreement with the State. It was noted that balance of cost paid from Recycling portion of sanitation department budget and also some community donations; cost to City $2,500. It was noted that this is operational cost, no maintenance of building, etc. Mr. Lambrecht stated project housed in old street/sanitation department building, that a portion of that building available for next two years; and when remainder of sanitation department moves to new facility and Mill Road facility offered for sale, would have at least 2 years in on program and potentially one of the charitable organizations will take over. Mrs. Stonecipher stated they hope program will grow to point where another organization takes over, and that costs stated are for this year. It was noted that the labor for program is volunteer from Habitat for Humanities, that the budget includes $2500 for advertising, and monies for protective clothing, food and beverages for volunteers; containers donated (5-gal containers from Hugo's, etc.) Mr. Hamerlik asked if program had sunset clause, or would City be responsible beyond point where program funded. Mr. Lambrecht stated this was a one- time grant.

Moved by Hamerlik and Beyer that we recommend to the council entering into the agreement with the State Department of Health and that the City review the project within two years before its continuation. Motion carried.

5. Consideration of bids for vehicles for various departments.
Mr. Lambrecht reviewed bid tabulation with committee, and reported that they had included in the bid a vehicle for the police department (at the request of the public safety committee), that the police department had asked this committee to consider that bid also, and that the police department wishes to retain their trade-in vehicle. He reported they had good competitive bids, up from last several years but still reasonable, all new vehicles, with exception of one used vehicle for the civic auditorium.

There was some discussion re. used vehicle (pickup) bid for civic auditorium which is almost same price as new vehicle and committee didn't think it was intent to spend that amount of money; 2 bids received one from Hansen Ford for 1993 Ford Ranger in the amount of $8,383, (straight stick and vehicle in rough shape), and 1994 Chev. S-10 from Chrysler Center for $11,000, with 11,000 miles and has remainder of factory warranty, 2 years/25,000 miles. ($11,000 less trade-in allowance of $1650 for a net bid of $9,350.00)

Moved by Hamerlik and Beyer for approval of the low bids as follows:
Rydell Chevrolet:

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1 3/4 ton chassis-cab for street dept. $13,737.00 less trade allowance of $450, for net cost of $13,287.00
1 l/2 ton pickup for sanitation dept. $13,096.00 less trade-in
allowance of $1,000, for net cost of $12,096.00
1 1/2 ton pickup for water department $12,537.00 less trade-in allowance of $750 for net cost of $11,787.00
1 compact pickup, ext. cab. 2 WD for engineering dept. $12,324.00
1 1/2 ton pickup for wastewater dept. $12,537.00 less trade-in allowance of $1,500 for a net bid of $11,037.00.

Hansen Ford:
1 mid-size auto for public works department $13,610.50 less trade-in allowance of $2,500 for a net bid of $11,110.50
1 mid-size auto for police department $13,610.50

Chrysler Center:
1 compact pickup used for civic auditorium, $11,000 less trade-in allowance of $1,650 for a net cost of $9,350.00. (committee action only)

and further that the vehicle for the police department be awarded contingent upon approval of the public safety chairman and/or committee. Motion carried.

6. Matter of bids for soda ash for water plant.
Mr. Lambrecht reported that the low bidder alleges mistake in bid, and would like to be released from their bid or that the City allow them to change their bid price to the same as second low bidder; that he invited bidder to attend meeting but bidder unable to attend but hoped for compromise. He recommended that they hold General Chemical to their original bid as bid already awarded to them or to accept bid of second low bidder. It was noted that General Chemical bid $149/ton and other bids in $170/ton range; and that Hazel Fetters-Sletten had contacted General Chemical re. their bid prior to award and they indicated they would honor their bid. He stated that staff recommendation is that the award stand.

Moved by Hamerlik and Beyer to receive and file communication from General Chemical and to notify them relative to our action. Motion carried.

7. Matter of change orders for City Project 4117, Public Works
Facility Renovation, Phase I.
Mr. Lambrecht reviewed change orders as follows:
C.O. E-4 Bergstrom Electric, Inc., $2,556.00
C.O. M-3 Lunseth Plumbing & Heating Co., $1,529.00
C.O. G-5 Innes Construction Co., Inc., $1,050.00
Moved by Hamerlik and Beyer to approve the change orders. Motion carried.

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8. Matter of NDDOT change orders for Project No. 3790, DeMers
Avenue, Phase I.
Al Grasser, asst, city engineer, reviewed five change orders. He noted that DeMers Avenue project done in two phases: Phase I from 600' east of Washington west to beyond S. 34th Street, and Phase II from S. 34th Street west to Amtrak Station. He reported that DOT is in process of finalizing project and reconciling with contractor, and that generated change orders. He stated that all change orders are participating dollar amounts on 80-20% basis, total $24,378.45, with City's share $4,875.69. It was noted that work has been done and are cleaning up paperwork. Moved by Hamerlik and Beyer to approve the change orders. Motion carried.

9. Matter of temp. construction and utility easement for Project
4247, forcemain on S. 48th from 17th Ave.S. to 32nd Ave.S.
Mr. Grasser reported they have been obtaining easements for sanitary sewer forcemain on S. 48th Street to serve GFG and Travel Plaza, work has been done, and this compensates for temporary construction easement and permanent easement, $1,150.00. Moved by Hamerlik and Beyer to approve the easements. Motion carried.

10. Matter of creating special assessment district, Project No.
4044, Dist. 530, paving reconstruction on 6th Ave.N.
Mr. Grasser reviewed memorandum in packet which outlined some of the concerns on the project and summarizes what they anticipate to be total contract cots, came up with about $2.2 Million, that when they made initial application for money 2-3 years ago didn't anticipate project with this large dollar amount, that the Federal Govt. caps their participation based on estimated costs that we did a couple years ago. He reported they are preparing a combination of project cuts and advanced construction program funding from the State, $275,000, and are adjusting down project to fit budget - have come up with $225,000 savings from plan revisions, $75,000 from watermain replacement (were originally going to try to use federal participation, but with caps are looking to bring those projects back to be paid for out of respective utilities), $28,000 from forcemain rehab. and $25,000 from water service improvements to UND and Blind School which they will pay directly or be special assessed, and have a new project cost of $1,847,000 and do have enough federal funding with advanced construction project to cover $1,875,000. He submitted engineer's report which shows total construction costs, less deducts, of $1,846,800, less 80% Federal share, leaving City's share of $184,680 and assessment cost of $186.680, which is a match to City's share, plus assessment charges for a total assessment of $236,390, which is a little higher than shown at the public hearings. He also noted that the bid openings won't be until April, but resolution of necessity timetable is set for February 10. He noted that the assessment district is same as presented at public hearings with exception of small area on

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Columbia Road which runs along R/W lines to meet traffic analysis concern (doing more extensive work on Columbia Road). It was also noted that the assessment district goes halfway back to the next classified street, that City sets assessment district and Special Assessment Commission will determine benefits.

Moved by Hamerlik and Beyer that we adopt a resolution creating the assessment district, approving the engineer's report, including estimate of cost, an assessment districtmap, 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.

Mr. Grasser reported that the DOT will be sending separate document to cover the advanced funding, and would need separate motion.

Moved by Hamerlik and Beyer to authorize proper City officials to enter into agreement for future construction funding for 6th Avenue North. Motion carried.

11. Consideration of quotes for computer for lift station teleme-
try changes.
Mr. Grasser reviewed quote received, that City would purchase and install computers and monitors and would contract with company to do programming; that they were recommending deletion of modem and would purchase separately, revised quote is in the amount of $12,760. Moved by Hamerlik and Beyer to accept quote of Gaffaney's in the amount of $12,760. Motion carried.

13. Preliminary consideration of assessment district for en-
closing Columbia Road ditch.
Held in committee.

14. Matter of authorizing request for quotes for castings.
Mr. Grasser requested authorization to get quotes for manhole castings, Neenah sole supplier and have received preliminary quote which is about $20,000. Moved by Hamerlik and Beyer to authorize staff to obtain quotes for manhole castings. Motion carried. (committee only)

15. Matter of plans and specifications:
a) Proj. 4261, 1995 sidewalk replacement.
b) Proj. 4262, 1995 concrete street repair.
c) Proj. 4263, 1995 asphalt street repair.
Mr. Grasser reported they take bids on a unit price basis and are looking for approval of plans and specifications for these projects. Moved by Hamerlik and Beyer to approve plans and specifications and to authorize advertising call for bids. Motion carried.


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d) Proj. 4044, Dist. 530, 6th Ave.N. reconstruction.
Mr. Grasser reported there are some modified changes in plans,
eliminate storm sewer west of Interstate, size of trees around UND modified to 40 2" trees and remainder 1", painting of street - 4" lines painted rather than plastic, however, school, pedestrian and turn around markings plastic. Dale Bergom, WFW, reported they have submitted plans and specs. to UND for comment. It was noted that the State will do bidding on the project, and submit bids to the City for concurrence.

Moved by Hamerlik and Beyer that we pass a resolution approving plans and specifications for this construction and further that the city auditor e directed to advertise for bids on the project.
Motion carried.

16. Matter of call for bids for contracted electrical work.
Mr. Grasser reported that City has standard contract with Ron's Electric for emergency electrical services, one year contract with option to renew for one year; that contract bid last year and they are looking to extend for the additional year. He reported that John Thompson had talked to City's electricians and they are satisfied with contractor, and Ron's satisfied with maintaining at same unit price. Moved by Hamerlik and Beyer to extend the agreement with Ron's Electric for a period of one year at the current contract unit prices, and to authorize proper City officials to enter into the agreement. Motion carried.

17. Matter of utility and roadway easement for 6th Ave.N.
Mr. Grasser reported that DOT's comments have come back and are pretty minor and wouldn't change substance of our offer of $174,000 for the rights of way and easements along 6th Avenue North, and would like to get authorization to purchase the necessary rights of way and easements from the University of North Dakota and State of North Dakota, all are utility and construction roadway easements. Moved by Hamerlik and Beyer to approve easements and authorize proper City officials to sign said easements. Motion carried.

18. Consideration of bids for lawn mower and pumps for waste-
water department.
Gary Goetz submitted tabulation of bids received for 2 pumps and a lawn mower, two bids received, both local. Moved by Hamerlik and Beyer to accept the bid of Garden Hut in the amount of $7,920.82 for the lawn mower. Motion carried.

Moved by Hamerlik and Beyer to accept the low bid of H2O, Inc. in the amount of $15,087.60 for the 6x6 pump and $4,332.00 for the floating pump. Motion carried.

12. Report on special assessment charges by other cities.
Mr. Grasser distributed copies of survey summary of adminis-
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trative costs assessed on projects by various cities in Minnesota and North Dakota. (Grand Forks assesses 27% for adm. costs, East Grand Forks 22%, Crookston 15%, Fargo 35%, etc.) It was noted that some cities absorb some of the city's costs. He stated he will submit this information to the finance committee also. Information only.

Meeting adjourned.

Alice Fontaine
City Clerk

Dated: 1/31/95