Board of City Commissioners - February 13, 2017 Minutes

The Regular Meeting of the Board of City Commissioners of the City of Fargo, North Dakota, was held in the City Commission Room at City Hall at 5:00 o'clock p.m., Monday, February 13, 2017.
The Commissioners present or absent were as shown following:
Present: Gehrig, Grindberg, Piepkorn, Strand, Mahoney.
Absent: None.
Mayor Mahoney presiding.

Mayor Mahoney read a statement with the following announcements: Fargo has been ranked No. 3 in the Top 150 Cities for Millennials Report by Millennial Personal Finance; the FARGODOME ended 2016 with a net operating surplus of $528,800.00, the best operating results since 2000, and in 2016, 593,500 people attended events at the FARGODOME with the total direct and secondary economic impact from patron spending and FARGODOME operations of more than $50 million; the City processed its non-profit social services payments on Giving Hearts Day and was able to leverage using tax dollars to qualify for the Dakota Medical Foundation matching funds and anticipates the release of about $80,000 in additional matching funds to various agencies in the community; the library has introduced Adventure Packs, a new resource for children to check out that include books, DVDs, games, binoculars, bug catchers and flashlights; the Household Hazardous Waste Facility collected 1,250 pounds of old Christmas lights for recycling from November through January; and the ozone system at the Water Treatment Plant has been updated with the newest technology which will lower power costs by about 29 percent and the project cost was lower due to a short construction time and minimal impacts on plant operations.

Order of Agenda Approved:
Commissioner Grindberg moved the Order of the Agenda be approved, moving Item No. “18” from the Consent Agenda to the Regular Agenda.

Second by Piepkorn. All the Commissioners voted aye and the motion was declared carried.

Minutes Approved:
Commissioner Strand moved that the Minutes of the Regular Meeting of the Board held on January 30, 2017 be approved as read.

Second by Gehrig. All the Commissioners voted aye and the motion was declared carried.

Consent Agenda Approved:
Commissioner Grindberg moved the Consent Agenda be approved as follows:
1. 1st reading of an Ordinance Amending Sections 25-1501, 25-1506, 25-1507,
25-1508, 25-1509 and 25-1511 of Article 25-15 of Chapter 25 of the Fargo Municipal Code Relating to Alcoholic Beverages.

2. 2nd reading, waive reading and final adoption of the following Ordinances; 1st reading, 1/30/17:
a. Amending Section 25-1504.2 of Article 25-15 of Chapter 25 of the Fargo Municipal Code Relating to Alcoholic Beverages.
b. Amending Section 25-1506 of Article 25-15 of Chapter 25 of the Fargo Municipal Code Relating to Alcoholic Beverages.
c. Rezoning Certain Parcels of Land Lying in Reeve’s Addition, Fargo, Cass County, North Dakota.
d. Rezoning Certain Parcels of Land Lying in Reeve’s Addition to the City of Fargo, Cass County, North Dakota.
e. Rezoning a Certain Parcel of Land Lying in Timber Parkway First Addition to the City of Fargo, Cass County, North Dakota.

3. Adopt Resolutions Approving the following Plats:
a. Noridian Center 3rd Addition (Attachment “A”).
b. Bentley Place First Addition (Attachment “B”).
c. Commerce on 1-29 Second Addition (Attachment “C”).

4. Agreement for Services with Nate Hendrickson for administration and instruction of Child Care Physical Activity Health Code Training.

5. Contract Agreement with Hawley Public School to support implementation of healthy concession options to reduce childhood obesity.

6. Memorandum of Agreement with United Way of Cass-Clay to support the Nurse Family Partnership program.
7. Applications for Games of Chance:
a. St. John Paul II Catholic Schools for a raffle on 4/29/17.
b. Home Builders Care of Fargo–Moorhead Foundation for a raffle on 4/7/17.
c. Washington Elementary School-PTA for a raffle on 3/31/17.
d. Fargo North PTSA for a raffle and bingo on 4/22/17.
e. St. Joseph’s School for a raffle on 3/11/17.
f. Fargo Moorhead Derby Girls for a raffle on 3/25/17.
g. USA Wrestling of North Dakota for a raffle on 7/21/17.
h. The Outdoor Adventure Foundation for a raffle on 3/18/17.

8. Three-year contract with White Banner for Fire Department uniforms and clothing.

9. Sale of a 2007 American LaFrance Rescue Truck to Hamlet Volunteer Fire Department in the amount of $83,000.00.

10. Change Order No. 4 for an increase of $46,014.00 with Olaf Anderson Construction for the City Hall Project.

11. Proposal from Schaefer Systems International, Inc. for the purchase of approximately 25,000 carts for the implementation of the single-stream residential recycling program.

12. Extension of Lease–2017 Farm Season with Evan Holmen for property in Barnes Township.

13. Bid advertisement for Project No. PR-17-C.

14. Bills in the amount of $7,802,385.57.

Second by Piepkorn. On call of the roll Commissioners Grindberg, Piepkorn, Strand, Gehrig and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Memorandum of Understanding Regarding Road Maintenance with the Fargo Park District for a Portion of Elm Street Approved:
The Board received a communication from the Public Works Projects Evaluation Committee (PWPEC) stating an agreement is proposed between the City and the Park District to provide future maintenance of a portion of Elm Street that has been abandoned as a public street due to the loss of connectivity with 14th Avenue due to levee construction; however, remains as the access point to the El Zagal Golf Course. They said as property was purchased by the Diversion Authority and is turned back over to the City, it will be appropriate to replat this area and clean up ownership and easements; however, it is important to define maintenance roles now as the infrastructure is in place.
Commissioner Grindberg moved the Memorandum of Understanding with the Fargo Park District for maintenance of a portion of Elm Street be approved.

Second by Piepkorn. On call of the roll Commissioners Grindberg, Piepkorn, Strand, Gehrig and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Incentive/Disincentive Clause for Improvement District BR-17-A1 Approved (Broadway between 19th and 15th Avenues North):
The Board received a Report of Action from the Public Works Projects Evaluation Committee (PWPEC) regarding a recommendation to add an incentive/disincentive for the overall completion of the project with total incentive not to exceed 1% of the construction total for Improvement District No. BR-17-A1. Broadway is an arterial that carries 5,800 vehicles per day, they said, and there will be one other project on Broadway from 12th Avenue to 15th Avenue. This project should not negatively affect the project to the north, they said, or impact the construction timeline. They said getting each of these projects finished in as timely a manner as possible is a benefit because it will also increase the east-west connectivity of the north side and allow displaced traffic to return to the arterial.
Commissioner Grindberg moved the incentive/disincentive for Improvement District No. BR-17-A1 be approved as recommended.

Second by Piepkorn. On call of the roll Commissioners Grindberg, Piepkorn, Strand, Gehrig and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Final Balancing Change Order No. 1 for Improvement District No. AN-16-A1 Approved:
Commissioner Grindberg moved approval of Final Balancing Change Order No. 1 for a decrease of $3,934.75 for Improvement District No. AN-16-A1.

Second by Piepkorn. On call of the roll Commissioners Grindberg, Piepkorn, Strand, Gehrig and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Final Balancing Change Order No. 1 for Improvement District No. AN-16-C1 Approved:
Commissioner Grindberg moved approval of Final Balancing Change Order No. 1 for a decrease of $6,612.00 for Improvement District No. AN-16-C1.

Second by Piepkorn. On call of the roll Commissioners Grindberg, Piepkorn, Strand, Gehrig and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Final Balancing Change Order No. 2 for Improvement District No. UN-15-N1 Approved:
Commissioner Grindberg moved approval of Final Balancing Change Order No. 2 for a decrease of $5,355.61 for Improvement District No. UN-15-N1.

Second by Piepkorn. On call of the roll Commissioners Grindberg, Piepkorn, Strand, Gehrig and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Final Balancing Change Order No. 2 for Improvement District No. PN-15-K1 Approved:
Commissioner Grindberg moved approval of Final Balancing Change Order No. 2 for an increase of $24,815.72 for Improvement District No. PN-15-K1.

Second by Piepkorn. On call of the roll Commissioners Grindberg, Piepkorn, Strand, Gehrig and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Final Balancing Change Order No. 4 for Improvement District No. PN-15-E1 Approved:
Commissioner Grindberg moved approval of Final Balancing Change Order No. 4 for a decrease of $208,545.75 for Improvement District No. PN-15-E1.

Second by Piepkorn. On call of the roll Commissioners Grindberg, Piepkorn, Strand, Gehrig and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Bid Award for Improvement District No. PR-17-A1 Moved to the Regular Agenda:
The bid award for Improvement District No. PR-17-A1 was moved to the Regular Agenda.

Force Main Construction, Sanitary Sewer Rehabilitation, Street Reconstruction and Incidentals Improvement District No. BR-17-A (Broadway from 19th Avenue North to 15th Avenue North):
Commissioner Grindberg moved the following action be taken in connection with Force Main Construction, Sanitary Sewer Rehabilitation, Street Reconstruction and Incidentals Improvement District No. BR-17-A:

Adopt Resolution Creating Improvement District No. BR-17-A:
WHEREAS, The Board of City Commissioners of the City of Fargo, North Dakota, deems it expedient that Improvement District No. BR-17-A in the City of Fargo, North Dakota, be created
On Broadway North from 19th Avenue to 15th Avenue.

COMPRISING:
An area bound on the north by 19th Avenue North, bound on the south by 12th Avenue North, bound on the west by 8th Street North, and bound on the east by 3rd Street North.

All of the foregoing located in the City of Fargo, Cass County, North Dakota.

NOW, THEREFORE, BE IT RESOLVED, That Force Main Construction, Sanitary Sewer Rehabilitation, Street Reconstruction and Incidentals Improvement District No. BR-17-A in the City of Fargo, North Dakota, be and the same is hereby created.

Request Report and Estimate of Cost From the City Engineer for Improvement District No. BR-17-A:
Direct City Engineer to report as to the general nature, purpose and feasibility relative to the construction of Improvement District No. BR-17-A in the City of Fargo, North Dakota; as well as an estimate of the approximate cost of said construction. (The Engineer's estimate of cost is $3,977,763.00.)
Order Plans and Specifications for Improvement District No. BR-17-A:
Direct City Engineer to prepare Plans and Specifications for the construction of Improvement District No. BR-17-A in the City of Fargo, North Dakota.

Adopt Resolution Approving Plans and Specifications and Engineer's Report for Improvement District No. BR-17-A:
WHEREAS, The Board of City Commissioners of the City of Fargo, North Dakota, has created Improvement District No. BR-17-A in the City of Fargo, North Dakota, as required by law; and
WHEREAS, Plans and Specifications and the Engineer's Report prepared by the City Engineer, have been considered.
NOW, THEREFORE, BE IT RESOLVED, That the Plans and Specifications and Engineer's Report for the construction of Improvement District No. BR-17-A in the City of Fargo, North Dakota, be and the same are hereby approved and ordered filed in the Office of the City Auditor.

Adopt Resolution Declaring Force Main Construction, Sanitary Sewer Rehabilitation, Street Reconstruction and Incidentals Necessary:
BE IT RESOLVED BY THE BOARD OF CITY COMMISSIONERS OF THE CITY OF FARGO:
That it be and is hereby declared necessary to construct Force Main Construction, Sanitary Sewer Rehabilitation, Street Reconstruction and Incidentals Improvement District No. BR-17-A in the City of Fargo, North Dakota, according to the Engineer’s Report for this district and the Plans and Specifications approved by the Board of City Commissioners of the City of Fargo, North Dakota, filed in the Office of the City Auditor, and open for public inspection. A map of the district is attached hereto and incorporated as if fully set forth herein.
That a portion of said Force Main Construction, Sanitary Sewer Rehabilitation, Street Reconstruction and Incidentals improvement is to be paid from Infrastructure Sales Tax and approximately 49% is to be assessed against the benefited property in amounts proportionate to and not exceeding the benefits to be derived by them respectively from said improvement.
Protests against the proposed Force Main Construction, Sanitary Sewer Rehabilitation, Street Reconstruction and Incidentals must be in writing and must be filed with the City Auditor's Office within 30 days after the first publication of this Resolution.
BE IT FURTHER RESOLVED, That the City Auditor's Office is hereby instructed to publish this Resolution, as required by law.

Direct City Auditor's Office to Call for Bids for Improvement District No. BR-17-A:
Direct City Auditor's Office to publish a Notice, as required by law, calling for bids for the construction of Improvement District No. BR-17-A in the City of Fargo, North Dakota.

Second by Piepkorn. On call of the roll Commissioners Grindberg, Piepkorn, Strand, Gehrig and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Seal Coat and Incidentals Improvement District No. PR-17-G (Various Locations in South Fargo):
Commissioner Grindberg moved the following action be taken in connection with Seal Coat and Incidentals Improvement District No. PR-17-G:

Adopt Resolution Creating Improvement District No. PR-17-G:
WHEREAS, The Board of City Commissioners of the City of Fargo, North Dakota, deems it expedient that Improvement District No. PR-17-G in the City of Fargo, North Dakota, be created

LOCATION (Section 10):
On Osgood Parkway South from 58th Street South to 66th Street South.
On 44th Avenue South from Veteran's Boulevard to 58th Street South.
On 45th Avenue South from 65th Street South to 66th Street South.
On 58th Street South from 40th Avenue South to Beach Lane South.
On Beach Lane South west of 58th Street South.
On Lee Lane South between Beach Lane South.
On Clubhouse Drive South from Osgood Parkway South to 260' south of Houkom Court South.
On Houkom Court South from Osgood Parkway South to Clubhouse Drive South.
On Furnberg Place South south of Osgood Parkway South.
On 65th Street South from 45th Avenue South to 1/4 section line.
On Christianson Parkway South from 66th Street South to 45th Avenue South.
On 66th Street South from 40th Avenue South to 45th Avenue South.
On 63rd Street South from 40th Avenue South to Osgood Parkway South.

LOCATION (Section 13):
On 57th Avenue South from Bishops Boulevard South to 24th Street South.
On 59th Avenue South from 21st Street South to 24th Street South.
On 60th Avenue South from 21st Street South to 25th Street South.
On 61st Avenue South from 21st Street South to 22nd Street South.
On 62nd Avenue South from 160' east of 23rd Street South to 25th Street South.
On 63rd Avenue South from 23rd Street South to 24th Street South.
On Bennett Court South east of 21st Street South.
On 22nd Street South south of 61st Avenue South.
On 23rd Street South from 60th Avenue South to 63rd Avenue South.
On 24th Street South from 57th Avenue South to 63rd Avenue South.

COMPRISING (Section 10):
Lots 1 through 10, Block 1.
Lots 1 through 8, Block 3.
Lots 9 through 34, Block 4.
Lots 1 through 5, Block 5.
Lots 1 through 6, Block 7.
Lots 1 through 20, Block 8.
Lots 1 through 20, Block 9.
Lots 1 through 13, Block 10.
Lots 1 through 15, Block 11.
Lots 1 through 32, Block 12.
Lots 1 through 16, Block 13.
Lots 1 through 21, Block 14.
Lots 1 through 21, Block 15.
Lots 1 through 12, Block 16.
Lot 2, Block 17.
All in Osgood 1st Addition.

Lots 1 through 13, Block 1.
Lots 1 through 18, Block 2.
Lots 1 through 6, Block 3.
All in Osgood 2nd Addition.

Lots 1 through 7, Block 1.
All in Osgood 3rd Addition.

Lots 1 through 5, Block 1.
All in South Beach Townhomes Addition.

Lots 7 through 15, Block 2.
All in Osgood Villas Addition.

Lots 7 through 10, Block 1.
All in Osgood Villas 2nd Addition.

Lots 1 through 4, Block 1.
All in Osgood Villas 3rd Addition.

Lots 1 through 3, Block 1.
Lots 1 through 8, Block 2.
All in Osgood Villas 4th Addition.

Lots 1 through 18, Block 1.
All in Villas by the Greens Addition.

Lots 1 through 8, Block 1.
All in Osgood River Addition.

Lots 1 through 4, Block 1.
All in Sheyenne Estates Addition.

All the unplatted land east of the Sheyenne River in the northwest 1/4 of Section 32, Township 139 North, Range 49 West.
Less PT OF THE N 1/2 OF NW 1/4 SEC 32 TWP 139 RGE 49, DESC AS FOLL: BEG AT NW COR OF NW 1/4 OF SEC 32, THEN S 85 DEG 53 MIN 47 SEC E ALG THE N LN OF SD NW 1/4 FOR A DIST OF 1402.60 FT TO THE PT OF BEG, THEN S 06 DEG 36 MIN 13 SEC W FOR A DIST OF 149.28 FT, THEN N 81 DEG 44 MIN 42 SEC W FOR DIST OF 340 FT MORE OR LESS TO A PT ON THE CTR LN OF THE SHEYENNE RIVER THEN NLY ALG SD SHEYENNE RIVER CTR LN TO A PT ON THE N LN OF NW 1/4, THEN S 85 DEG 53 MIN 47 SEC E ALG THE N LN OF SD NW 1/4 FOR A DIST OF 360 FT MORE OF LESS TO THE PT OF BEG, SUBJ TO ROAD R/W OF RECORD.

COMPRISING (Section 13):
Lots 8 through 15, Block 3.
Lot 2, Block 4.
Lots 1 through 36, Block 5.
All in Legacy I 2nd Addition.

Lots 1 through 7, Block 1.
Lots 1 through 11, Block 2.
Lots 1 through 58, Block 3.
Lots 1 through 30, Block 4.
Lots 1 through 3, Block 5.
All in Legacy I 3rd Addition.

Lots 26 through 45, Block 2.
Lots 1 through 6, Block 3.
Lots 5 through 8, Block 5.
Lots 1 through 8, Block 6.
Lot 1, Block 7.
Lots 3 through 29, Block 8.
Lots 1 through 9, Block 9.
All in Legacy I 4th Addition.

Lots 1 through 19, Block 1.
Lots 1 through 19, Block 2.
All in Legacy I 5th Addition.

All of the foregoing is located in the City of Fargo, Cass County, North Dakota.

NOW, THEREFORE, BE IT RESOLVED, That Seal Coat and Incidentals Improvement District No. PR-17-G in the City of Fargo, North Dakota, be and the same is hereby created.

Request Report and Estimate of Cost from the City Engineer for Improvement District No. PR-17-G:
Direct City Engineer to report as to the general nature, purpose and feasibility relative to the construction of Improvement District No. PR-17-G in the City of Fargo, North Dakota; as well as an estimate of the approximate cost of said construction. (The Engineer's estimate of cost is $1,215,641.00.)

Order Plans and Specifications for Improvement District No. PR-17-G:
Direct City Engineer to prepare Plans and Specifications for the construction of Improvement District No. PR-17-G in the City of Fargo, North Dakota.

Adopt Resolution Approving Plans and Specifications and Engineer's Report for Improvement District No. PR-17-G:
WHEREAS, The Board of City Commissioners of the City of Fargo, North Dakota, has created Improvement District No. PR-17-G in the City of Fargo, North Dakota, as required by law; and
WHEREAS, Plans and Specifications and the Engineer's Report prepared by the City Engineer, have been considered.
NOW, THEREFORE, BE IT RESOLVED, That the Plans and Specifications and Engineer's Report for the construction of Improvement District No. PR-17-G in the City of Fargo, North Dakota, be and the same are hereby approved and ordered filed in the Office of the City Auditor.

Adopt Resolution Declaring Seal Coat and Incidentals Necessary:
BE IT RESOLVED BY THE BOARD OF CITY COMMISSIONERS OF THE CITY OF FARGO:
That it be and is hereby declared necessary to construct Seal Coat and Incidentals Improvement District No. PR-17-G in the City of Fargo, North Dakota, according to the Engineer’s Report for this district and the Plans and Specifications approved by the Board of City Commissioners of the City of Fargo, North Dakota, filed in the Office of the City Auditor, and open for public inspection. A map of the district is attached hereto and incorporated as if fully set forth herein.
That the entire cost of said improvement be specially assessed against the benefited property in said improvement district in amounts proportionate to and not exceeding the benefits to be derived by them respectively from said improvement.
Protests against the proposed Seal Coat and Incidentals must be in writing and must be filed with the City Auditor's Office within 30 days after the first publication of this Resolution.
BE IT FURTHER RESOLVED, That the City Auditor's Office is hereby instructed to publish this Resolution, as required by law.

Direct City Auditor's Office to Call for Bids for Improvement District No. PR-17-G:
Direct City Auditor's Office to publish a Notice, as required by law, calling for bids for the construction of Improvement District No. PR-17-G in the City of Fargo, North Dakota.

Second by Piepkorn. On call of the roll Commissioners Grindberg, Piepkorn, Strand, Gehrig and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Street Lighting and Incidentals Improvement District No. SL-16-B (12th Avenue to 5th Avenue North and Broadway to the Red River):
Commissioner Grindberg moved the following action be taken in connection with Street Lighting and Incidentals Improvement District No. SL-16-B:

Adopt Resolution Creating Improvement District No. SL-16-B:
WHEREAS, The Board of City Commissioners of the City of Fargo, North Dakota, deems it expedient that Improvement District No. SL-16-B in the City of Fargo, North Dakota, be created

12th Avenue North to 5th Avenue North and from Broadway to Red River of the North.

COMPRISING:
All property located within the area bordered.
Bound on the north 12th Avenue North to mid-block.
Bound on the west by Broadway.

Bound by the west of Broadway.
Lots 13 through 24, Block 5.
Lots 13 through 24, Block 10
Hector’s Addition

Lots 6 through 10, Block 4.
Truesdell’s Addition

Bound on the east by Red River of the North.
Bound by the north 12th Avenue North
Lots 1 through 6, Block 1.
Lots 13 through 15, Block 1.
Yerxa & Franklin’s Addition

Bound on the south by 5th Avenue North.
Lots 15 through 35, Blocks 25 and 26.
Blocks 27 and D. Keeney’s Subdivision

All of the foregoing is located in the City of Fargo, Cass County, North Dakota.

NOW, THEREFORE, BE IT RESOLVED, That Street Lighting and Incidentals Improvement District No. SL-16-B in the City of Fargo, North Dakota, be and the same is hereby created.

Request Report and Estimate of Cost From the City Engineer for Improvement District No. SL-16-B:
Direct City Engineer to report as to the general nature, purpose and feasibility relative to the construction of Improvement District No. SL-16-B in the City of Fargo, North Dakota; as well as an estimate of the approximate cost of said construction. (The Engineer's estimate of cost is $812,022.79.)

Order Plans and Specifications for Improvement District No. SL-16-B:
Direct City Engineer to prepare Plans and Specifications for the construction of Improvement District No. SL-16-B in the City of Fargo, North Dakota.

Adopt Resolution Approving Plans and Specifications and Engineer's Report for Improvement District No. SL-16-B:
WHEREAS, The Board of City Commissioners of the City of Fargo, North Dakota, has created Improvement District No. SL-16-B in the City of Fargo, North Dakota, as required by law; and
WHEREAS, Plans and Specifications and the Engineer's Report prepared by the City Engineer, have been considered.
NOW, THEREFORE, BE IT RESOLVED, That the Plans and Specifications and Engineer's Report for the construction of Improvement District No. SL-16-B in the City of Fargo, North Dakota, be and the same are hereby approved and ordered filed in the Office of the City Auditor.

Adopt Resolution Declaring Street Lighting and Incidentals Necessary:
BE IT RESOLVED BY THE BOARD OF CITY COMMISSIONERS OF THE CITY OF FARGO:
That it be and is hereby declared necessary to construct Street Lighting and Incidentals Improvement District No. SL-16-B in the City of Fargo, North Dakota, according to the Engineer’s Report for this district and the Plans and Specifications approved by the Board of City Commissioners of the City of Fargo, North Dakota, filed in the Office of the City Auditor, and open for public inspection. A map of the district is attached hereto and incorporated as if fully set forth herein.
That the entire cost of said improvement be specially assessed against the benefited property in said improvement district in amounts proportionate to and not exceeding the benefits to be derived by them respectively from said improvement.
Protests against the proposed Street Lighting and Incidentals must be in writing and must be filed with the City Auditor's Office within 30 days after the first publication of this Resolution.
BE IT FURTHER RESOLVED, That the City Auditor's Office is hereby instructed to publish this Resolution, as required by law.

Direct City Auditor's Office to Call for Bids for Improvement District No. SL-16-B:
Direct City Auditor's Office to publish a Notice, as required by law, calling for bids for the construction of Improvement District No. SL-16-B in the City of Fargo, North Dakota.

Second by Piepkorn. On call of the roll Commissioners Grindberg, Piepkorn, Strand, Gehrig and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Update from the Greater Fargo Moorhead Economic Development Corporation:
James Gartin and Mark Vaux, president and vice president, respectively, of the Greater Fargo Moorhead Economic Development Corporation (GFMEDC), gave presentations about the Corporation and its various programs in relation to the City of Fargo.

Mr. Vaux said the GFMEDC makes about 150 calls a year to primary sector businesses across the two-county region with 71 percent of those businesses in Fargo. He said the GFMEDC worked on 15 expansion projects last year, which created 235 new jobs and $38 million in capital investment, and two business attraction projects which resulted in 85 jobs and $6.5 million in capital investment. He also discussed the GFMEDC’s various funding programs, including the Growth Initiative Fund and the Automation Tax Credit Program.

Mr. Gartin discussed workforce development and entrepreneurial programs, Emerging Prairie and connecting education with industry to meet long-term workforce needs.

In response to a question from Mayor Mahoney about the Wells Fargo issue, Mr. Gartin said Commissioner Piepkorn reached out to the GFMEDC about opportunities with Wells Fargo, so the GFMEDC reached out to the head of real estate at Wells Fargo in Minneapolis. He said the person thanked him for the inquiry and he had read the news article, which he thought was very positive. He said the Wells Fargo representative said operations in Minneapolis are strong, they are happy and they are not looking to expand their corporate headquarters operations to the Fargo market.

Application Filed by 1023 Flats for Payment in Lieu of Tax Exemption (PILOT) Approved:
A Hearing had been set for this day and hour on an application filed by 1023 Flats for a payment in lieu of property tax exemption (PILOT) for a project at 1023 1st Avenue South which the applicant will use in the operation of a ten-unit, two-story apartment building with six one-bedroom and four two-bedroom units.
No written protests have been filed for the attention of the Board.
The Board determined that no person is present at this Hearing to protest or offer objection thereto.

City Assessor Ben Hushka said this application meets the City’s policy, which calls for 100 percent exemption for the first five years and 75 percent for the second five years of the 10-year program to add housing units in the downtown area.

In response to a question from Mayor Mahoney regarding a point system for the application, Mr. Hushka said there are no grading systems used for housing projects in downtown because there are no jobs related to it so they automatically qualify for the 10-year PILOT.

In response to a question from Commissioner Strand as to if this building will offer smaller and more affordable rental units, Commissioner Piepkorn said he did have a conversation with the developer on how to get low-income housing in downtown Fargo.

Jesse Craig, the developer of 1023 Flats, said the 1023 Flats units will be about $200 less expensive than his 220 West project, which is near Barry Hall. He said with demolition, landfill, precast concrete, staging and other things required to do high-density, close proximity development, along with the cost of land, it is difficult to offer low-income housing. He said without the City having eminent domain to tear down units in need of demolition, it would be much harder for a developer to put together multiple parcels for a big enough development to spread the costs across per square foot. He said it is difficult to get down to the $500.00 or $600.00 per month price for a one bedroom, especially with onsite parking.

Commissioner Piepkorn said if the City wants to have a mix of rent prices, the challenge is to acquire land in downtown so there has to be some kind of effort for that.

Planning Director Jim Gilmour said vacancy rates are up so rates are a bit more competitive; however, anything new downtown is going to be in the $975.00 range for a one bedroom with parking, and maybe $750.00 for a very small efficiency apartment.

Mr. Craig said underground heated parking, which people downtown want due to safety reasons and limited options for onsite parking, is very costly and adds to the price for monthly rents.

Commissioner Piepkorn moved that the application filed by 1023 Flats for a 10-year payment in lieu of tax exemption based on 5 years at 100 percent exemption and 5 years at 75 percent exemption pursuant to Chapter 40-57.1, NDCC be approved as follows:

Year 0 through 5 - $0
Year 6 through 10 - $4,890.00

Second by Grindberg. On call of the roll Commissioners Piepkorn, Grindberg and Mahoney voted aye.
Commissioners Strand and Gehrig voted nay.
The motion was declared carried.

Appeal of the Board of Adjustment’s Denial of a Request for a Variance at 510 4th Street South: Variance Granted:
A Hearing had been set for this day and hour on the appeal of a January 24, 2017 decision of the Board of Adjustment denying the variance request at 510 4th Street South to allow the opening of a proposed building, the fill around the building and the fill 15 feet away from the building, all to be approximately 8.9 feet lower than would otherwise be required by the City’s floodproofing code.

Planning Director Jim Gilmour said Prairie St. John’s wants to build a new facility at its current site. He said renovation costs at the current site are too high and a new building would be more cost effective, energy efficient and offer a better layout. He said Prairie St. John’s wants to stay in the same area where there are two locations for the new building and the site is more accessible in its current location and if the applicant cannot build at the current location, they will move. He said they have looked at two sites in West Fargo and would build a one-level facility. He said there is broad criteria; however, this is not a setback requirement or a zoning variance. He said Prairie St. John’s is not in the flood plain, the site elevation is at 39.5 feet and it is next to a large dike. The variance, he said, is for the 41-foot rule made after the 2009 flood plus the 1.2-foot safety factor. At some point, he said, the City’s flood plain might increase and a concern could be storm water flooding; however, during a 100-year rainfall, Prairie St. John’s still has 11 feet of clear space because of lower areas in Island Park. Prairie St. John’s would be in the clear, he said, also due to the fact there is a pumping station nearby. He said Planning recommends the approval of this variance with the stipulation that Prairie St. John’s sign a waiver of liability against the City, the organization has an emergency response plan if there is a major flood, electrical and mechanical is located on the second floor, there are no living quarters on the first floor and there is no basement.

Tom Eide, Chief Financial Officer for Prairie St. John’s, said the facility currently has 110 acute beds and all are full. He said there are 48 residential treatment beds for the chemically dependent. He said Prairie St. John’s also offers a day program, which serves about 100 people and a clinic that sees 40 to 50 patients per day. He said Prairie St. John’s wants to stay in the same part of the city and with additional buildings, it keeps it as a one-campus setup. He said a corporation on the East Coast recently acquired Prairie St. John’s and resources are now available for a new facility. He said Prairie St. John’s not only serves the residents of Fargo but many from outside Fargo in North Dakota and Minnesota.

In response to a question from Commissioner Piepkorn regarding the conditions Planning staff recommends and if Prairie St. John’s is comfortable with those or will they be a challenge to follow, Mr. Eide said they are comfortable with the conditions and they are working with local architect David Schultz, who is coordinating with corporate for the most feasible design to meet the required conditions. He added for most multi-story facilities built now, the first floor is usually administrative with patients above.

Director of Engineering Mark Bittner said Engineering deals with three types of flooding; the river, which the City is used to, interior runoff associated with hard rains and multiple days of generally high intensity rainfall. He said Fargo has experienced all three. He said the City has had clogged intakes, which makes the City vulnerable to rainfall events. In this case, he said, Prairie St. John’s has shown, with storage on site, they can handle a 100- to 500-year storm and still have 11 feet of elevation separation. In addition, he said, the lowest level is built for flooding. He said he questions a need for a variance and if there is not a variance, the City should establish criteria to evaluate its ability to handle three types of flood events. The only event is the 100- to 500-year storm and the ability to store water if the gates are closed, he said.

Commissioner Gehrig said after this variance is discussed, there needs to be a discussion at a committee level and decide if the City is too restrictive in some cases. He said the 41-foot and higher level was set years ago and now that the Diversion is imminent he would like to know if the City needs that high of a level.

In response to a question from Commissioner Grindberg about a clear recommendation from Engineering, Mr. Bittner said he questions why there needs to be a variance due to the fact that Prairie St. John’s is not in the flood plain; however, it could be if the Diversion is not built and FEMA remaps. He said the Diversion would lower the 100-year to 35 feet; however, the City still has to look at biblical storms at the 40-foot level.

Mayor Mahoney said a vote on the variance has to take place at this meeting because it has to do with river events; however, at some point the City does need to look at variances for rainfall events. He said Engineering could do that; however, the Board has to vote tonight with present rules regarding variances due to river flooding. He said Prairie St. John’s has the dike and adequate pooling.

Commissioner Strand said he wanted to clarify whether granting numerous variances from the flood ordinance could jeopardize the basement exemption FEMA has granted the City, and Planning says no variances have been granted to the current flood ordinance so far. He said he is afraid of unintended consequences or opening the gates. He said the Commission has another variance at this meeting where the developer has already built the building. He said with this building, the Commission has a chance to weigh these policies and variance impacts on the FEMA basement exemption.

Mayor Mahoney said the City would go back to FEMA in March to talk about the basement exemption issue, which was made for houses for tornado protection. He said at the time, FEMA was not thinking of downtown Fargo.

Commissioner Strand said the way he interprets the documents, if the Commission approves this, there is a concern about approving future decisions and policies and opening the issue up and then setting a precedent.

Mr. Gilmour said Planning is seeing more and more requests for variances; however, not from the 39.5 foot rule. He said it is the 41-foot rule that gets pushed to 42.2 feet; therefore, as the Commissioners suggest, the City needs to relook at it considering the number of requests and that there is going to be a Diversion.

City Engineer April Walker said the City is jeopardizing the flood insurance program with FEMA with variances. She said staff provides a report each year to FEMA listing the variances and if there are excessive variances, the City could possibly be sanctioned by FEMA. The first step in sanctioning would be the community rating system. She said Fargo is now a Class 7, which means policyholders get a 15 percent reduction. She said the City was recently notified it is anticipated to move to a Class 5, which means the rates are reduced by 25 percent reduction for policyholders. Fargo is being recognized for doing a good job. She said this variance will be reported and FEMA will evaluate it to see if the City followed the variance criteria and then decide if the variance is appropriate. She said if the City is found to be granting variances deemed inappropriate, there is a risk of sanctions. She said she hopes the City can have opportunities to have conversations with FEMA to modify policies and still remain compliant. She said FEMA could be more accommodating to Prairie St. John’s due to the fact that they have demonstrated they have a campus, they are remaining at the site, which is important to them, and there are reasons as a community that would support the granting of this variance.

Commissioner Grindberg moved the variance be granted.

Second by Piepkorn. On call of the roll Commissioners Grindberg, Piepkorn, Gehrig and Mahoney voted aye.
Commissioner Strand voted nay.
The motion was declared carried.

Appeal of the Board of Adjustment’s Denial of a Request for a Variance at 303 11th Street North: Variance Granted:
This was the time and date set for a Hearing on the appeal of a variance request at 303 11th Street North which was denied by the Board of Adjustment at their December 22, 2016 meeting.
At the January 17, 2017 meeting, the Hearing was continued to January 30, 2017.
At the January 30, 2017 meeting, the Hearing was continued to this day and hour.

Planning Director Jim Gilmour said this is not a river setback or zoning issue, the project is well above the flood plain. He said this is a waiver from the 41 foot rule. He said if the ground elevation is below 41 feet, the developer needs to go to 41 feet and then 1.2 feet above that. He said if it is at the 41 foot level, there are no special requirements and the site is just a few inches below the 41 foot level. He said the building is 11 inches below the current street, curb and sidewalk levels, which makes the drive up to the main parking too steep; therefore, the developer chose not to raise the building. He said the lowest opening is at 41.3 feet and the requirement is 1.2 feet above 41 feet; therefore, they are 0.9 feet below the requirement, or about 11 inches. In order to get construction underway, he said, the developer planned to install a removable floodwall so if the river did get to a catastrophic level, they had the option to close the building and add the floodwall. He said storm water models at the 100-year level with all of the drains plugged showed the opening of the building was a foot below the water. He said the only risk of flooding to the main floor would be in the parking area, which is flood proofed. Planning says the building meets criteria and they recommend approval of the variance.

Austin Morris, Enclave Development, said the building is 300 Lime, a 94-apartment unit in the Renaissance Zone. He said it is a lifestyle community with main level parking, rooftop decks, fitness rooms and a clubroom. He said the buffer above actual flood elevation is 903.1 feet, which is the 42.2-foot level. He said based on the actual plan, the building is 1.3 feet above the current 100-year flood plain, 0.3 feet above the 41-foot potential flood plain and 0.9 feet below the 41-foot potential flood plain at the edge of the parking area. He said he has met with the City on how to move this project forward without the floodgates because the building is not in the 10-year or 500-foot level, the building opening is below that level, therefore they went forward with the building. He said when they look at rainfall events, the worst in 2000 would be at 901.9 feet, 300 Lime is at 901.2, and the opening is still at 0.9 inches above that. He said the variance would eliminate the need for floodgates for an area that is uninhabitable. He said floodgates are a deterrent due to the Americans with Disabilities Act and access for getting residents in and out of the property as well as a variety of other impacts, including unnecessary costs. He said Houston Engineering did rainfall event studies for the project and did one study based on the June 2000 rainfall event, which showed the site still enclosed with 0.9 inches above. He said using science and common sense, development downtown could continue and he said the recently completed floodwall on Second Street is an asset for everyone downtown.

In response to a question from Commissioner Strand regarding the developer knowing about codes in advance and whether there was a discussion on a variance prior to the start of construction, Mr. Morris said the first consideration was the pace they were under and he did know about the costs of floodproofing; however, he found in this situation they do not make sense and there is no reasonable reason to put floodproofing there and there is no rain event that can flood the parking area.

Commissioner Strand said there should have been discussion prior to the start of this project due to the fact the Diversion is not guaranteed. He said until he knows the Diversion is guaranteed he wants to be cautious.

City Engineer Mark Bittner said this variance is similar to the last one and it is not in the flood plain. He said looking at the maps, one thing that concerns him is the inundated area; however, for the benefit of the site, there are two underpasses at University Drive and 10th Street North which would flood before this parking garage would flood. He said it is the Commission’s job to do what they are comfortable with.

In response to a question from Commissioner Strand as to if he is comfortable with the variance, Mr. Bittner said he is not uncomfortable; however, he questions whether there needs to be a variance because the site is not in the flood plain. He said he is suggesting a set of rules for all types of flood events.

Commissioner Grindberg moved the variance be granted.

Second by Gehrig. On call of the roll Commissioners Grindberg, Gehrig, Piepkorn and Mahoney voted aye.
Commissioner Strand voted nay.
The motion was declared carried.

At 6:07 p.m. the Board took a five-minute recess.
After recess: All Commissioners present. Mayor Mahoney presiding.

Proposed Tax Exempt Review Committee Policy and Guidelines Revision Adopted:
Mayor Mahoney said Commissioner Gehrig has requested to take public input about the revision and the other Commission members agreed.

City Assessor Ben Hushka gave a summary of changes to the previous policy, stating some language was removed for exemptions the committee does not deal with, such as remodeling, new residence, new industry and Payment in Lieu of Tax Exemptions (PILOT). He said the Assessor’s Department also made changes to the point system and to salary guidelines, with the previous guidelines $7.00 to over $15.00 to under $13.00 to over $35.00. He said the policies had not been changed since 2012 and the committee recommends a more fluid document that could be revisited more frequently as things change. He said the new residence exemption stays as is, which is up to $150,000.00 of the building value for two years following first owner occupancy and for the builder it is for the year construction began and one additional year. He said for significant downtown projects, significant downtown mixed-use includes a financial review periodically after the fact to evaluate the continued need for the incentive. He said there is also a periodic employee count and a but-for feasibility review, to assure the City is not giving unfair advantage over other businesses already downtown.

In response to a question from Commissioner Strand about audits and employee counts and will the modified policy confirm they are in the salary ranges anticipated, Mr. Hushka said his department did not get into specifics on how to evaluate those. He said his department considered using an outside firm to audit wages so compliance is continued.

Jason Flohrs, North Dakota State Director for Americans for Prosperity, said the review of Fargo’s economic development policy is a rubber stamp of current practices rather than reform and it was more of a clean-up and indexing rather than a thorough and in-depth examination of the City’s practices. He said cities across the country use these tools, particularly TIF districts, to encourage economic development and occasionally new businesses, and to lure businesses from one city to another to see who can sweeten the pot. He said incentives come even after a business decides to relocate. He said TIFs are not costless because the City is only forgiving tax revenue and in actuality, by giving these incentives there are costs due to infrastructure, emergency and other city services, and when those costs are not picked up by businesses getting exemptions, they are passed on to other taxpayers. He said in many cases also eaten up by other taxing authorities that do not have a say. He said since Fargo began using TIFs, the City has committed $55 million in taxpayer money and 43 percent of that in the last five years alone. He said that is about 7 percent of someone’s total city property tax bill. He said this current revision only perpetuates the problem and puts taxpayers on the hook for millions more in economic handouts which 99 percent of businesses will not receive. He said the City needs to do an in-depth cost/benefit analysis to see exactly what they are getting. He said Fargo is already great and he asks the City to stop picking winners and losers using this kind of policy and let the free market work.

Commissioner Piepkorn said the City is in competition all day every day. He said if the City was not doing incentives, it would have a catastrophic economic impact. He said the majority of businesses do not come here because Fargo is nice. He said one of the tax incentives is low-income housing, which is a critical need. He said he is a fiscal conservative and the City has been very responsible with incentives and the facts show it has been successful.

In response to a question from Commissioner Gehrig about the policy restrictions for hotels, office space and retail space and is that for downtown or outside of downtown as well, Mr. Hushka said that language was removed and it is for downtown and outside of downtown.

In response to a comment from Commissioner Gehrig about the policy being sensitive to taking businesses away from others in the trading area and if that can be more defined, Commissioner Grindberg said it was made in reference to the FedEx vote, at least it is in the policy that it was stated and it was known.

Commissioner Gehrig said regarding the policy to periodically review the new residence exemption, he said the periodic is not defined and he would like a definition, similar to Moorhead, which reviews every one or two years.

Commissioner Gehrig moved to implement a two year review for the new home exemption.
The motion died for lack of second.

In response to a question from Commissioner Gehrig regarding the but-for question in the policy and does it speak only to significant downtown projects, Mr. Hushka said that was the intent of the language.

Commissioner Gehrig moved to amend the but-for question to apply to all exemptions granted by the City of Fargo, not just for significant downtown projects.

Second by Strand. On call of the roll Commissioners Gehrig and Strand voted aye.
Commissioners Piepkorn, Grindberg and Mahoney voted nay.
The motion died for lack of a majority.

In response to a question from Commissioner Grindberg whether it was discussed using the but-for test across the board, Commissioner Piepkorn said it was for the large PILOT projects downtown.

Commissioner Strand said he agrees it should be all substantial projects due to the fact that there was a lot of debate on FedEx and that was not downtown.

Commissioner Gehrig said PILOTS in downtown are eligible for five years at 100 percent and five years at 75 percent, and outside of downtown, it is five years at 100 percent. He said this is also true for significant commercial development and there is a greater elevation for downtown; however, there should be parity throughout the city.

Commissioner Gehrig moved to implement a single PILOT policy that does not separate downtown from the rest of the city.

Second by Strand. On call of the roll Commissioners Gehrig, Strand and Mahoney voted aye.
Commissioners Grindberg and Piepkorn voted nay.
The motion was declared carried.

Commissioner Piepkorn said the reason there is more focus on downtown is it is less expensive for a company to build on raw land than in downtown, where there is infrastructure. He said downtown Fargo is unique for the region and a magnet for everyone in the area. He said the Renaissance Zone cannot just stop due to the fact that it is a continuous effort. He said the City was there 25 years ago when downtown started to go downhill and it will happen again if the City stops. He said the City needs to focus on downtown, there is infrastructure there and that is the reason behind it.

In response to a question from Commissioner Grindberg as to whether or not there is anything that would preclude the City from having a pro rata share incentive for PILOT, for instance in southwest Fargo versus heavier weighting in downtown Fargo, Mr. Hushka said the City does have that flexibility.

Commissioner Strand said his sense is downtown is not as blighted as it used to be; however, the Roosevelt area is blighted. He said he wants see more teeth in the revision to address neighborhoods going into at-risk status.

Commissioner Gehrig said if the tax burden were reduced, there would be growth. He said if the tax burden is reduced in one area and added in another area, there is less growth. He said a specific example is Block 9 which was going to be developed in south Fargo; however, due to incentives was moved downtown. He said the City is not gaining anything and it is costing taxpayers a lot of money, impacting millennials who live in apartments because property taxes are too high. He wants to end incentives and lower property taxes for everyone. He said downtown Fargo is the most expensive land in North Dakota without oil under it and it is heavily subsidized. He said there will be a bubble in downtown Fargo.

Commissioner Strand said he is concerned about gentrification downtown, which is forcing people out and turning downtown into an exclusive high rent neighborhood. He said in a future meeting he would like to have a conversation on the topic of affordable apartments and to explore incentives to include affordability.

Commissioner Piepkorn moved the Revised Tax Exempt Review Committee Policy and Guidelines be approved.

Second by Grindberg. On call of the roll Commissioners Piepkorn, Grindberg, Strand and Mahoney voted aye.
Commissioner Gehrig voted nay.
The motion was declared carried.

Land Development Code Residential Task Force White Paper Received and Filed:
Planning Administrator Nicole Crutchfield said in 2015, in response to a large number of residential variance approvals, the Commission formed a Task Force to review existing residential zoning requirements and provide recommendations to those requirements. She said short-term recommendations would be minor edits to the interior side setbacks which would allow increased flexibility for development. She said those edits could be heard by the Planning Commission on March 7th and be presented to the Commission in late March. She said the White Paper is a draft and staff could likely complete additional background information and analysis within four to seven months. She said long-term recommendations include the creation of a traditional neighborhood-zoning district, such as a SRH, and the creation of an improved project review process that would be an alternative to the variance process.

In response to a question from Mayor Mahoney, if there is a LDC revision, how much would it cost and how long would it take, Ms. Crutchfield said it would take five to six months and the majority on the Task Force are volunteers.

Commissioner Grindberg moved the Land Development Code Residential Task Force White Paper be received and filed and to direct the Planning Department staff and the City Attorney to proceed with the short-term recommendations outlined.

Second by Strand. On call of the roll Commissioners Grindberg, Strand, Gehrig, Piepkorn and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Bid Award for Improvement District No. PR-17-A1: Protests Received and Declared Insufficient (Moved from the Consent Agenda):
The Statutory Resolution of Necessity for the construction of Grading, Salvaged Base, P.C. Concrete Pavement, Bridge Widening, Ramp Construction, Retaining Wall, Storm Sewer, City Utilities, Box Culvert, Curb and Gutter, Sidewalk, Signing, Marking Traffic Signals, Street Lighting and Incidentals Improvement District No. PR-17-A1 in the City of Fargo, North Dakota, was duly published in the official newspaper for the City of Fargo, North Dakota on January 9 and 16, 2017 and protests representing 6.1 percent of the legal protest area have been received and filed in the office of the City Auditor within the legal protest period.

The Board received a communication from City Engineer April Walker stating bids were opened by the NDDOT on February 3, 2017 for the 32nd Avenue South Street Reconstruction and Widening Project. She said there are special assessments associated with this project and six protests have been received amounting to 6.1 percent of the Assessment District. She said 50 percent would be needed to bar the project from proceeding. She said it is recommended the Commission declare the protests insufficient and concur with the bid award. She said special assessments ranged from 9 cents a square foot to 77 cents a square foot, except for one parcel on the north side of 32nd Avenue that was assessed at $1.30 per square foot due to the fact there are many sanitary and water main improvements attributed to that site. She said every property pays for one north-south and one east-west arterial road. She said Fargo is not paying for the interchange, which is a North Dakota Department of Transportation project. She said Fargo’s share of the project is $11,215,443.71.

In response to a question from Commissioner Gehrig about people who do not agree with the boundary and if there is an opportunity for them to have their say with the Special Assessment Committee, Mayor Mahoney said the Special assessment Committee would handle those inquiries.

Charlotte Rush, Vogel Law Firm, said the Special Assessment Committee cannot do anything with improvement district boundaries, only the City Commission can and there is some case law with that involving the City.

Mayor Mahoney said the City is following the rules, the City Commission cannot change the boundaries. He said her clients can go to the Special Assessment Committee and say they want the district larger, then come to the Commission and ask for it at that time.

April Walker said Ms. Rush is right in that the Commission cannot change the assessment district after this point. She said if the Commission wants to entertain their request to change the district, Engineering would have to delay the bid award, re-advertise with whatever the other district would be. She said once the district is locked, the blue area on the map is the area that is benefitted. She said the Special Assessment Committee will hear any requests about the amount and if they should be spread differently within the district; however, they cannot change the blue boundary district.

In response to a question from Commissioner Piepkorn as to if the establishment of this district is consistent and not unique, Ms. Walker said it is consistent with what has been done in the past. She said typically, if Engineering were asked to change the arterial map, it would be changed for example this year, then adoption at the end of the year for application next year and any projects bid in a future year. She said they have to be careful due to the fact that it could be seen as gerrymandering. She said if the Commission wants to change the district at this time, the City would lose state funding for this project.

Commissioner Piepkorn moved the protests be received and filed and declared insufficient.

Second by Grindberg. On call of the roll Commissioners Piepkorn, Grindberg, Strand, Gehrig and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Bids Received for Grading, Salvaged Base, P.C. Concrete Pavement, Bridge Widening, Ramp Construction, Retaining Wall, Storm Sewer, City Utilities, Box Culvert, Curb and Gutter, Sidewalk, Signing, Marking Traffic Signals, Street Lighting and Incidentals Improvement District No. PR-17-A1:
The bids for Grading, Salvaged Base, P.C. Concrete Pavement, Bridge Widening, Ramp Construction, Retaining Wall, Storm Sewer, City Utilities, Box Culvert, Curb and Gutter, Sidewalk, Signing, Marking Traffic Signals, Street Lighting and Incidentals Improvement District No. PR-17-A1 in the City of Fargo, North Dakota were opened at 11:30 o'clock a.m., February 3, 2017 and the bids were found to be as follows:

Dakota Underground Company Fargo, ND
Bid: $19,338,635.83

Northern Improvement Company Fargo, ND
Bid: $19,697,139.72

KPH, Inc. Kindred, ND
Bid: $20,886,791.61

Sellin Brothers, Inc. Hawley, MN
Bid: $21,432,355.28

Strata Corporation Grand Forks, ND
Bid: $22,698,351.68

Master Construction Company, Inc. Fargo, ND
Bid: $23,454,968.78

Contract for Grading, Salvaged Base, P.C. Concrete Pavement, Bridge Widening, Ramp Construction, Retaining Wall, Storm Sewer, City Utilities, Box Culvert, Curb and Gutter, Sidewalk, Signing, Marking Traffic Signals, Street Lighting and Incidentals Improvement District No. PR-17-A1 Awarded to Dakota Underground Company in the Amount of $19,338,635.83:
Commissioner Piepkorn offered the following Resolution and moved its adoption:
WHEREAS, The City Engineer has prepared and filed a detailed statement of the estimated costs of Grading, Salvaged Base, P.C. Concrete Pavement, Bridge Widening, Ramp Construction, Retaining Wall, Storm Sewer, City Utilities, Box Culvert, Curb and Gutter, Sidewalk, Signing, Marking Traffic Signals, Street Lighting and Incidentals Improvement District No. PR-17-A1; and
WHEREAS, The Board of City Commissioners of the City of Fargo has considered the bids received for Grading, Salvaged Base, P.C. Concrete Pavement, Bridge Widening, Ramp Construction, Retaining Wall, Storm Sewer, City Utilities, Box Culvert, Curb and Gutter, Sidewalk, Signing, Marking Traffic Signals, Street Lighting and Incidentals Improvement District No. PR-17-A1 in the City of Fargo, North Dakota; and
WHEREAS, The City Engineer's tabulation of the bids received for Grading, Salvaged Base, P.C. Concrete Pavement, Bridge Widening, Ramp Construction, Retaining Wall, Storm Sewer, City Utilities, Box Culvert, Curb and Gutter, Sidewalk, Signing, Marking Traffic Signals, Street Lighting and Incidentals Improvement District No. PR-17-A1 shows the bid of Dakota Underground Company in the sum of $19,338,635.83 to be the lowest and best bid received.
NOW, THEREFORE, BE IT RESOLVED, That the Board of City Commissioners finds and declares the bid received from Dakota Underground Company in the sum of $19,338,635.83 is the lowest and best bid received.
BE IT FURTHER RESOLVED, That the contract for Grading, Salvaged Base, P.C. Concrete Pavement, Bridge Widening, Ramp Construction, Retaining Wall, Storm Sewer, City Utilities, Box Culvert, Curb and Gutter, Sidewalk, Signing, Marking Traffic Signals, Street Lighting and Incidentals Improvement District No. PR-17-A1 in the City of Fargo, North Dakota, be and the same is hereby awarded to Dakota Underground Company in the sum of $19,338,635.83, subject to the supervision, inspection and approval of the City Engineer, and in accordance with the Plans and Specifications filed in the office of the City Auditor.

Second by Grindberg. On the vote being taken on the question of the adoption of the Resolution Commissioners Piepkorn, Grindberg, Strand, Gehrig and Mahoney voted aye.
No Commissioner being absent and none voting nay, the Resolution was adopted.

Contract Award for Consulting Services to Apex Engineering Group Approved (Improvement District No. PR-17-A2):
The Board received a Report of Action from the Consultant Selection Committee stating proposals for the 32nd Avenue South from 32nd Street to 42nd Street Reconstruction/Widening Project were evaluated by the Selection Committee based on criteria outlined within the RFP. They said following review of the proposals, the Committee ranked the firms and the Committee members tabulated the proposal rankings. Based on the tabulated ranking, the Committee selected Apex Engineering Group as the preferred consultant, they said, and recommend the contract be awarded in the amount of $7,989,979.00.
Commissioner Gehrig moved the Contract Award for Consulting Services to Apex Engineering Group in the amount of $7,989,979.00 be approved.

Second by Grindberg. On call of the roll Commissioners Gehrig, Grindberg, Piepkorn, Strand and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Draft of Interaction with State Legislature Recommendations Approved:
Mayor Mahoney said Commissioner Gehrig had two recommendations to be brought up for discussion as far as interaction with the State Legislature. He said he also has a modification in the first paragraph of the draft in the last sentence, “Department heads of the City are authorized to present testimony to the Legislature consistent with the staff recommendation unless the City Commission, by vote, has determined to take a different position.” He said it should read “Department heads and staff of the City…..”

Commissioner Gehrig said his concern is when Commissioners go to Bismarck, they represent the Fargo City Commission or the City of Fargo. He said there is usually a majority and rarely a minority, especially on contentious issues, if there a 5-0 vote, so the point of his first recommendation is no Commissioner will claim to represent the entire City Commission unless an official vote is taken and/or written consent is given by all Commissioners. He said if the vote is anything less than 5-0, that Commissioner may claim to represent the majority opinion of the Commission. Those in the minority, he said, may claim to represent the minority opinion. The second recommendation, he said, refers to lobbying and no City staff will be used while lobbying the State Legislature unless all Commissioners consent to the activity.

Commissioner Grindberg said the Commission has not taken a position yet, so he wants to learn about past practices.

Commission Gehrig moved the draft with the addition of bullet point number one from his recommendations be approved.
The motion died for lack of a second.

Commissioner Grindberg said in Bismarck there is a raised eyebrow when one Commissioner comes out advocating the opposite of what is the City’s policy. He said the Fargo Commissioners are accountable to the voters and hopefully as a team, can come together and do what is best for the City. He said he understands he cannot have his way on everything; however, the Commission has to work together for a common message.

Commissioner Strand moved the draft of the Interaction with State Legislature be approved.

Second by Piepkorn. On call of the roll Commissioners Strand, Piepkorn, Grindberg and Mahoney voted aye.
Commissioner Gehrig voted nay.
The motion was declared carried.

Agreement with Red River Properties LLP for Buildings and Land and Border States Industries, Inc. for Buildings and Land for Relocation of Police Department Operations Approved:
City Administrator Bruce Grubb said he became aware of vacant warehouse space at Border States Industries (BSI and while touring the space he also learned about office space at the location. He said BSI leases the building and will be moving out in about two years to a new corporate headquarters in south Fargo. He said the City is interested in the vacant warehouse space now for Police Department Field Services and the City is also interested in the office space at the building when it is available so the other Police divisions can move to the building. He said BSI also leases the building across the street from the warehouse for its Information Technology Department. He said he also toured that building and though the City does not have an identified need for the space at this time, it would be good to keep the option open due to the fact the Meters Department needs space. He said there is a sublease agreement for the next two years for the warehouse space while BSI is leasing the office space. He said the City would sublease the vacant warehouse space, then lease with a purchase option or a lease agreement with both buildings. He said the City is short on rent for the 2017 budget by about $139,000.00; however, he proposes covering the cost with funds leftover from 2016. He said there is about $500,000.00 in fit-up costs for the warehouse, which is not a budgeted expenditure; however, the City recently approved the sale of 285 acres in Harwood Township and he proposes using a portion of those proceeds for the fit-up and design of the building. He said he received quotes from three local architects through a competitive quote process and is recommending awarding the fit-up contract to Image Group Architects and Interiors.

Police Chief David Todd said when he took the chief position in 2014 one of the things he wanted to accomplish was facilities. He said the current Police Department building ran out of space five years ago. He said 50 officers do not have lockers, there is no office space for detectives and support staff and there are twice as many vehicles now and not enough parking space. He said Investigations recently moved to the old Health Department building; however, the building has issues due to its age. He said the BSI site would allow a phased approach with Field Services going first, which is about 130 people in uniform and their vehicles and the building would also provide report writing and briefing spaces. He said Field Services would use the warehouse space until BSI completes its new headquarters and moves out. He said some other minor fit-up would be done at that time and then the entire department would move there. He said as the leader of a large organization, having everyone under one roof will afford better communication, which is extremely valuable. He said the BSI building is an incredible opportunity for the City, it will increase efficiency and officers will be next door to mechanics and the gas pumps where they fuel up their vehicles.

Commissioner Piepkorn moved the Agreement with Red River Properties LLP for buildings and land at 2501 1st Avenue North, and Border States Industries, Inc. for buildings and land at 2401 3rd Avenue North for relocation of the Police Department Operations be approved.

Second by Gehrig. On call of the roll Commissioners Piepkorn, Gehrig, Strand Grindberg and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Contract for Architectural Services with Image Group Architects and Interiors for the Design, Bidding and Construction Associated with Fit-Up Work of the BSI Warehouse Space Approved:
Commissioner Piepkorn moved the Contract for Architectural Services with Image Group Architects and Interiors for the design, bidding and construction associated with fit-up work of the Border States Industries warehouse space be approved.

Second by Gehrig. On call of the roll Commissioners Piepkorn, Gehrig, Strand Grindberg and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Agreement for Management and Maintenance of Newman Outdoor Stadium between The City of Fargo, North Dakota State University and Fargo Baseball LLC Approved:
City Administrator Bruce Grubb said he is seeking approval of an agreement for management and maintenance of Newman Outdoor Stadium with the City, NDSU and Fargo Baseball, LLC. He said he would also like a formal appraisal done of the facility due to the fact that the City wants to make sure it keeps up with maintenance and other types of things assets require.

Commissioner Piepkorn said the stadium is much like the FARGODOME, it is an asset and it was not being maintained; however, now it will be and the City is very fortunate.

Commissioner Strand said as the City approaches potential options to purchase the stadium to be sure to weigh the consequences of taxability on a property when it is on the tax rolls now versus when it was not.

Commissioner Grindberg moved the Agreement for Management and Maintenance of Newman Outdoor Stadium between the City of Fargo, North Dakota State University and Fargo Baseball, LLC be approved and a formal appraisal of the facility be completed.

Second by Piepkorn. On call of the roll Commissioners Grindberg, Piepkorn, Strand, Gehrig and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Commissioner Gehrig moved that the Board adjourn to 5:00 o’clock p.m., Monday, February 27, 2017.
Second by Strand. All the Commissioners voted aye and the motion was declared carried.
The time at adjournment was 7:30 o’clock p.m.