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Metro Flood Diversion Authority

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Metro Flood Diversion Authority - September 28, 2017 Minutes

1. Meeting to Order
A meeting of the Metro Flood Diversion Authority was held Thursday, September 28, 2017, at 3:35 PM in the Fargo City Commission Room with the following members present: Fargo City Mayor Tim Mahoney; Fargo City Commissioner Dave Piepkorn; Fargo City Commissioner Tony Grindberg; Cass County Commissioner Mary Scherling via conference call; Cass County Commissioner Chad M. Peterson; Cass County Commission representative Darrell Vanyo; Moorhead City Mayor Del Rae Williams; Moorhead City Council Member Chuck Hendrickson; Moorhead City Council Member Joel Paulsen via conference call; Clay County Commissioner Kevin Campbell; Cass County Joint Water Resource District Manager Mark Brodshaug; and West Fargo City Commissioner Mike Thorstad. Clay County Commissioner Grant Weyland was absent. Also present was Tom Dawson, Chairman, Chamber of Commerce Business Leaders Task Force.

2. Minutes Approved
MOTION, passed
Mr. Campbell moved and Mr. Vanyo seconded to approve the minutes from the August 24, 2017, August 31, 2017, and September 14, 2017, meetings as presented. Motion carried.

3. Agenda Order
MOTION, passed
Mr. Piepkorn moved and Ms. Williams seconded to approve the order of the agenda. Motion carried.

4. North Dakota Building Trades Union
Jason Ehlert, President of the North Dakota Building Trades Union, was present. He said their organization supports the Metro Flood Diversion project because it will provide permanent flood protection to the area. He extended an invitation to the board to tour the Operating Engineers Local 49 Training Center in Hinkley, Minnesota on Friday, October 20th. Information will be provided on different building trades and on training that their organization offers to the next generation of the area workforce.

5. Management Update
Program management consultant (PMC) report
Randy Richardson from CH2M provided an update on activities over the last month. As a result of the injunction ruling by the federal court earlier this month, discussions have been held between North Dakota Governor Doug Burgum and Minnesota Governor Mark Dayton regarding permanent flood protection. OHB levee construction continues in accordance with a stipulated agreement allowing construction through 2017 and with concurrence from the MN DNR. New in-town levee construction, County Road 16 and 17 realignment construction, P3 procurement activities, and land acquisitions are on hold as a result of the injunction.

He discussed upcoming priorities which include discussions with the MN DNR and other parties to resolve the legal dispute and advance a flood control solution; continued OHB home removals and construction as previously authorized; obtaining court approval to install a temporary roadway for the County Road 16 and 17 intersection; support increased communication between the Diversion Authority and upstream parties; and downsizing PMC staff and level of efforts to accommodate the court order, while at the same time remaining in a position to resume activities.

Mr. Piepkorn asked how the delay affects the costs per day and asked for a report on the financial impacts to construction and other activities.

Robert Cowen from CH2M provided a brief financial update on the overall program status and said $387 million has been expended to date. He said $54 million has been expended out of the $240 million FY2017 budget. Greg Baisch from CH2M provided a construction update on continued work on in-town levees, landscaping and plantings, and Oxbow home demolition and relocation projects. He said construction has been suspended on the County Road 16 and 17 realignment project and a Work Change Directive will be discussed later in the meeting to build a County Road 17 bypass.

6. Public Outreach Update
Committee report
The Public Outreach Committee met on September 27th. Rocky Schneider from AE2S said the focus of public outreach has shifted to provide information and hold discussions with upstream residents.

Business Leaders Task Force
Tom Dawson said the Business Leaders Task Force held a meeting earlier today. A subcommittee was created to develop a strategy to help with public outreach activities.

7. Land Management Update
The Land Management Committee met on September 27th. Mr. Brodshaug said property acquisitions and management are on hold until clarification is received from the court. He said four proposers have submitted RFQs for the flowage easement study; however, the committee agreed to hold off on awarding a contract until the Diversion Authority receives more information on what activities may or may not continue. He said there are a variety of proposals based on the depth of the study. Mr. Brodshaug said the study would include meetings with landowners in the staging area, and the committee preferred to have clarification from the court before moving forward with a contract award.

Land Acquisition Status Report
Eric Dodds from AE2S referred to the map showing the status of property acquisitions. He said all property appraisals and purchases are on hold as a result of the injunction.

8. Finance Update
Committee report
The Finance Committee met on September 27th. Mr. Grindberg briefly discussed the financial report and said the Diversion Authority has $69 million in cash on hand.
Voucher approval The bills for the month are with the Cass County Joint Water Resource District (CCJWRD) for costs associated with the Metro Flood Diversion, Diversion Project Assessment District, OHB levee, and Oxbow Golf and Country Club; Springsted Incorporated for financial services associated with the 2017 loan agreement; and Ohnstad Twichell, P.C. for legal services.

MOTION, passed

Mr. Grindberg moved and Ms. Williams seconded to approve the vouchers received through September 21, 2017, in the amount of $3,351,177.37. On
roll call vote, the motion carried unanimously.

Recommended Contracting Actions
Mr. Shockley said based on emails between all parties, he does not believe continuing construction on the OHB levee and other work in Oxbow conflicts with the recent injunction
issued by the federal court. However, work has been halted on the County Road 16 and 17 realignment construction, and P3 work has ceased as well.

County Road 16 and 17 West Bypass
The construction work on the County Road 16 and 17 realignment project has stopped as a result of the injunction. Michael Redlinger, Assistant Fargo City Administrator, provided information on a Work Change Directive with Riley Bros. to construct a west bypass at the diversion inlet south of Horace. The bypass will be about 1,500 feet long and can be constructed in approximately two weeks at a cost of $250,000. He said a gravel base will be used to provide for two-way traffic and will remain a gravel road over the winter. The bypass will provide a route for residents living in the area. The construction is contingent on a stipulation agreement or other court action. This detour is not part of the project and should proceed with a party agreement.

• Riley Bros. (WCD 01 County Road 16 and 17 Realignment)—work change directive in the amount of $9,500.00 to relocate topsoil berm;
• Riley Bros. (WCD 02 County Road 16 and 17 Realignment)—work change directive in the amount of $250,000.00 to add temporary gravel bypass road for County Road 17;
• Riley Bros. (Change Order 01 County Road 16 and 17)—change order in the amount of $31,155.84 for relocation of top soil berm authorized in WCD 01 and drainage modifications.

MOTION, passed

Mr. Grindberg moved and Ms. Williams seconded to approve the appropriation of funds for the work change directives and change order with Riley Bros. Discussion: Mr. Peterson said the residents in the area have asked for the road to be returned to its original location. Jason Benson, Cass County Engineer, said due to the soil stability this time of the year, the bypass is the best option this late in the construction season. The bypass will be made purely of gravel and will work through the winter. On roll call vote, the motion carried unanimously.

Robert Cowen from CH2M discussed the following contracting actions, which were approved by the Finance Committee and Technical Team:
• CenturyLink (Reimbursement Agreement/Utility Relocation)—cost proposal in the amount of $20,000.00 for relocation of impacted facilities.
MOTION, passed

Mr. Grindberg moved and Mr. Piepkorn seconded to approve the appropriation of funds for the reimbursement agreement with CenturyLink. On roll call vote, the motion carried unanimously.

OHB Levee
• Cass Rural Water Users District (Utility Relocation Agreement OHB Ring Levee)—water line relocation in the amount of $213,335.00.
MOTION, passed

Mr. Brodshaug moved and Mr. Piepkorn seconded to approve the appropriation of funds for the utility relocation agreement with Cass Rural Water Users District. On roll call vote, the motion carried unanimously.

• Meyer Contracting (Change Order 01 OHB Ring Levee Phases C and D)—change order in the amount of $7,383.47 for pipe heat shrink sleeves, additional pipe bedding and backfill and one day of contract time associated with the OHB levee;

• Meyer Contracting (WCD 01 OHB Ring Levee Phases C and D)—work change directive in the amount of $285,000.00 to remove unsuitable soil material remaining from utilities and under OHB levee footprint; additional traffic control; excavation near Oxbow Drive and levee crossing; and installation of pipe and pipe casing for Cass Rural Water utility relocation under levee.

MOTION, passed

Mr. Vanyo moved and Mr. Grindberg seconded to approve the appropriation of funds for the Change Order and Work Change Directive with Meyer Contracting. On roll call vote, the motion carried unanimously.

9. Next Meeting
The next meeting will be held on Thursday, October 12, 2017.

10. Executive Session
Attorney John Shockley said North Dakota state law allows the board to meet in private session to consult with legal counsel to discuss ongoing litigation and contract negotiations.
MOTION, passed

Mr. Peterson moved and Mr. Grindberg seconded that the Metro Flood Diversion Authority meet in executive session pursuant to N.D.C.C. § 44-04-19.1, subsections 2 and 9, to consult with its Attorneys regarding the ongoing litigation in the matters of Richland/Wilkin JPA and MNDNR v. the United States Army Corps of Engineers and Fargo Moorhead Flood Diversion Authority as Intervenor, Civil File No. 0:13-cv-02262-JRT-LIB and the contested case hearing before the Minnesota Office of Administrative Hearings regarding the MNDNR permit for Metro Flood Diversion Authority and to provide an update to the Board regarding the negotiations for an employment contract with the finalist (Jay Neider) selected for the position of Executive Director. On roll call vote, the motion carried unanimously.

Diversion Authority board members, key administrative staff, and Attorney John Shockley moved to the River Room at 4:17 PM.
The executive session ended at 4:59 PM, and the meeting was re-opened to the public.

11. Adjournment
MOTION, passed
On motion by Mr. Campbell, seconded by Mr. Hendrickson, and all voting in favor, the meeting was adjourned at 5:01 PM.