Diversion Authority finance committee approves Otter Tail MOU, accelerated FEMA modeling task order and demolition award; adopts Cass County COLA policy

FARGO, N.D. — The Metro Flood Diversion Authority Finance Committee on March 26 approved a set of contracting and budget actions, including a memorandum of understanding with Otter Tail Power Company, a task order amendment to accelerate FEMA remapping modeling work, and a demolition contract award. The committee also approved routine bills and voted to adopt Cass County’s employee handbook approach for future cost-of-living adjustments.

The committee approved the Otter Tail Power Company memorandum of understanding to allow potential relocation or armoring of utility lines near the Christine area; the vote was unanimous. The meeting packet described the MOU as a preliminary agreement to enable future work if the Christine flood-control project requires changes to Otter Tail’s easements.

Why it matters: the accelerated modeling is intended to move up FEMA map revision work now planned for after construction to an earlier phase. Committee members and staff said earlier modeling could help speed certification of revised flood maps and reduce future delays in the permitting and insurance process.

Committee members voted to reallocate program budget lines and add $1,000,000 to the 2025 cash budget to begin the accelerated modeling. The committee approved a related task order amendment with Houston Moore Group (HMG) to perform the modeling work and amended that task order so it would be “not to exceed” $2,174,000. Staff described the work as moving modeling from a post-construction line item into the engineering budget and adding the work to existing consultant scopes so the effort can begin immediately instead of in 2027.

Greg Thielman, president and CEO of Houston Engineering, summarized the firm’s long involvement with the diversion and FEMA mapping work and said HMG’s local experience should reduce potential delays during review and negotiation with FEMA and other agencies. Thielman said HMG and Moore Engineering have been involved with the project’s technical work since the 1990s and provided modeling and levee design that underpin the map revisions.

The committee also awarded demolition work package 38C to Linco Company Inc. The low bid of $258,400 was about $40,000 under the engineer’s estimate, staff said; the package covers two parcels identified in the packet and includes a larger livestock site with multiple buildings. That award passed on a roll-call vote.

On routine business, the committee approved bills received through March 19 totaling approximately $1,344,000, including a reimbursement request from the City of Fargo for in-town flood projects. The finance report showed total assets of $333,191,238 (primarily cash), liabilities of $2,198,757 and a net position of $330,992,481; staff attributed minor receivables and payables to timing differences in statement preparation.

On personnel policy, the committee voted to adopt the Cass County employee handbook approach for annual cost-of-living adjustments (COLA) for 2025 and future years, making the Diversion Authority follow Cass County’s recommended COLA each year. That motion passed on a roll call.

Votes at a glance: Otter Tail Power Company MOU — approved (unanimous roll call); HMG task order and 2025 budget reallocation — approved with task order capped "not to exceed" $2,174,000 (unanimous roll call); Demolition contract award (work package 38C) to Linco Company Inc. — approved, low bid $258,400 (unanimous roll call); Approval of bills through March 19 totaling about $1,344,000 — approved (unanimous roll call); Adoption of Cass County COLA policy for 2025 and future years — approved (unanimous roll call).

Committee members and staff emphasized that the mapping and modeling work involves multiple external agencies — FEMA, the U.S. Army Corps of Engineers and state regulators — and that earlier modeling is part of a broader effort to accelerate certification and reduce the risk of mapping delays. Staff also reported the program’s 2025 budget remains on track, with milestone payments to the developer budgeted at about $233,000,000 for the fiscal year.

The Finance Committee’s next meeting is scheduled for April 23.