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Metro Flood Diversion Authority—April 26, 2018 3 <br />MOTION, passed Mr. Grindberg moved and Mr. Mahoney seconded to approve Change Order 4 with Meyer Contracting, Inc. On roll call vote, the motion carried with Ms. Williams, Mr. Hendrickson, Mr. Paulsen, Mr. Campbell, Mr. Weyland, Mr. Mahoney, Mr. Grindberg, Mrs. Scherling, Mr. Peterson, Mr. Steen, Mr. Thorstad, and Mr. Olson voting “Yes”; Mr. Piepkorn voting “No”. <br />Proposed 2018 HMG rates Mr. Redlinger said proposed increases to the HMG rates were tabled at the March Finance Committee meeting with a request for additional information. Jeff Volk and Jeff Ledoux of Houston Moore Group were available at the April Finance meeting and today to provide background and clarification, and the Finance Committee unanimously approved the rate increases. Mr. Grindberg said a change to the HMG Master Services Agreement in 2017 required Houston Moore Group to obtain additional professional liability insurance without course for reimbursement, which has been the main driver behind rate increases in 2017 and 2018. MOTION, passed Mr. Grindberg moved and Mr. Steen seconded to approve the proposed 2018 HMG rates as presented. Discussion: Mr. Campbell asked if the project mileage rate is for reimbursable travel mileage. Mr. Volk said yes. Mr. Campbell said typically governmental agencies follow the federal guidelines for mileage reimbursement, which are not as high as the listed rate. Mr. Volk said the rate was negotiated under the original HMG contract in 2012 and has not been changed since that time. On roll call vote, the motion carried unanimously. <br />Oxbow lot sales & maintenance agreement Mr. Redlinger presented an amendment to the Oxbow MOU and an Assignment of Master Agreement that were approved unanimously by the Finance Committee. The documents modify the existing Oxbow lot sales process for the remaining lots and reassign maintenance responsibilities and associated costs to Oxbow. In addition, the Diversion Authority’s responsibility for the city park is defined. Mr. Redlinger said Oxbow will take over the sale of the remaining 33 lots, of which the first $1 million of net proceeds will be retained by Oxbow. After that threshold is met there will be a 65/35 revenue share split between the Diversion Authority and Oxbow, with the Diversion Authority receiving 65% of revenues and Oxbow receiving 35% of revenues. The lots must be <br />sold for a minimum of 85% of their appraised value, unless otherwise approved by the Co-Executive Directors. <br />Attorney Erik Johnson drafted the documents and Cass County Auditor Michael Montplaisir provided a financial analysis to ensure that the Diversion Authority will see a positive benefit from the arrangement. <br /> Mr. Redlinger said a cap of $200,000 will be imposed on the Diversion Authority’s funding obligation for the Oxbow City Park, and the Diversion Authority will be removed from future golf course change orders. Mrs. Scherling arrived for the remainder of the meeting.