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Board of City Commissioners - December 18, 2017

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, December 18, 2017.
The Commissioners present or absent were as shown following:
Present: Gehrig, Grindberg, Piepkorn, Strand, Mahoney.
Absent: None.

The Mayor read a statement with the following information: The City of Fargo was named the winner of the Georgetown University Energy Prize; the Auditor’s office reminds residents that 2017 pet licenses expire December 31st; Fargo Cass Public Health will distribute free residential radon kits for the North Dakota Department of Health Division of Air Quality; Employee Health recently hosted a canned food drive and collected more than 340 items for the food pantry; the Police Department hosted “Cocoa with a Cop” December 9th, an annual free event that helps foster trusting relationships with youth; the Police Department’s patrol unit has moved to the BSE building; the annual “Cops and Kids” shopping event was held December 17th; and the Mayor reminded residents about the importance of having egress windows in a basement due to the fact that at a recent house fire, someone was trapped in the basement and the Fire Department was able to get them out through an egress window.

Order of Agenda Approved:
Commissioner Strand moved the Order of the Agenda be approved, moving Item Nos. “7” and “26” 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 Grindberg moved that the Minutes of the Regular Meeting of the Board held on December 4, 2017 be approved as read.

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

Consent Agenda Approved:
Commissioner Piepkorn moved the Consent Agenda be approved as follows:

1. Receive and file an Ordinance Amending Section 35-0102 of Article 35-01 of Chapter 35 of the Fargo Municipal Code Relating to Sale of Tobacco Products.

2. Appointment of Stamate Skliris as a City Prosecutor and Assistant City Attorney.

3. Purchase Agreement for property located at 3908 River Drive South in the amount of $645,000.00.

4. Purchase Agreement for property located at 4122 17th Street South in the amount of $695,500.00.

5. Master Attachment Agreement for Attachment of Wireless Communications Facilities to Certain City Owned Structures in the Public Right of Way with Midcontinent Communications.

6. Receive and file General Fund – Budget to Actual through November 30, 2017 (unaudited).

7. Precinct locations for the 2018 elections (moved to the Regular Agenda).

8. Six-month extension of the Class “FA” Alcoholic Beverage License for Mom’s Kitchen/Tailgator’s.

9. Applications for Games of Chance:
a. United Hearts for Haiti for a raffle on 2/10/18; Public Spirited Resolution.
b. El Zagal Shrine Arab Patrol for a raffle on 3/2/18.

10. Tax exemptions for improvements made to buildings:
a. Shannon M. and Matthew T. Kinsella, 3062 Bohnet Boulevard North (3 year).
b. Andrew J. and Katie L. Doeden, 2913 Peterson Parkway North (3 year).
c. Jesse D. Shirek and Sherry E. Defrancesco, 2307 10th Street South (5 year).
d. Nancy A. Rishling, 1726 Plumtree Road North (5 year).
e. Richard C. Houkom, 912 29th Avenue North (5 year).
f. Wenlong Chen and Shaohong Yuan, 2934 Edgemont Street North (5 year).
g. Gerald Rodger and Mary K. Phillips, 1015 5th Avenue South (5 year).
h. Levi Gehrig, 1017 1st Street North (5 year).
i. Kathryn M. and Luke I. Evenson, 1637 Plumtree Road North (5 year).
j. Christopher R. and Alicia J. Kauffman, 410 Eddy Court South (5 year).
k. Joseph C. and Angelique Nelson, 1517 5th Street North (5 year).
l. Jennifer K. and Thomas M. Kane, 1425 19th Street South (5 year).

11. Agreement with Katherine Glen to perform Public Information Services Coordinator duties from 1/1/18 to 12/31/18.

12. Bid award as per the bid tabulation to Sysco for food purveyor at the FARGODOME.

13. Agreement for Services with Lakes and Prairies Community Action Partnership to market the ChildCareAlive! program to licensed childcare center staff.

14. Agreement for Services with Ann Schneider to finalize edits to the Breastfeeding Toolkit for childcare providers.

15. Notice of Grant Award with the ND Department of Health for the syringe services program activities (CFDA #93.940).

16. Training Proposal with Minnesota Recovery Connection to provide peer recovery support services in the amount of $19,000.00.

17. Agreement with Ed’s Towing Service, Inc. for junk vehicle removal services for 2018.

18. Establishment of the fee schedule changes for building, plumbing, sewer and mechanical permits effective 1/1/18.

19. Set January 2, 2018 at 5:15 p.m. as the date and time for a hearing on a dangerous building at 1410 1st Avenue South.

20. Purchase of Paradigm Software, LLC for WeighStation software at Solid Waste.

21. Change Orders for the City Hall Project:
a. No. 14 for a decrease of $23,168.25 for the general contract.
b. No. 15 for an increase of $2,350.00 for the general contract.
c. No. 16 for a decrease of $2,854.00 for the general contract.
d. No. 7 for an increase of $3,023.00 for the mechanical contract.
e. No. 8 for an increase of $5,627.00 for the mechanical contract.

22. Contract Amendment No. 2 with Flint Group for an increase of $22,935.00 (Project No. MS-16-F0).

23. Change Order No. 1 for an increase of $32,711.73 for Project No. TM-17-A1.

24. Final Balancing Change Order No. 1 in the amount of $0.00 for Project No. TP-16-B1.

25. Negative Final Balancing Change Order No. 1 in the amount of -$88.66 for Project No. PR-16-E1.

26. 2018 Capital Improvement Plan (moved to the Regular Agenda).

27. Engineering Technician I agreements with Peggy Amsbaugh and Dana Johnson.

28. Mosquito Spraying Agreement for 2018-2020 to Airborne Custom Spraying, Inc. (RFP18018).

29. Sole Source Procurement for the purchase of vendor specific parts in 2018 from Gillig Corp. in the amount of $30,000.00 and New Flyer Industries in the amount of $180,000.00.

30. Sole Source Procurement for repairs in 2018 of Detroit Diesel engines and Allison Transmissions from Interstate Power System in the amount of $70,000.00.

31. 2018 City Arts Fund recommendations and Agreement with The Arts Partnership to administer the City Arts Partnership Grants for 2018 in the amount of $112,000.00.

32. 2018 City Social Service Fund allocations.

33. RFP for a Permit and Project Management Software System.

34. Final Balancing Change Order No. 2 for an increase of $41,905.00 for Project No. SW17-02.

35. Change Order No. 1 for an increase of $60,096.00 for Project No. WW1402-10.

36. Change Order No. 1 for an increase of $43,351.00 for Project No. WA1707.

37. Task Order No. 99 from AE2S in the amount of $218,200.00 for Drain 27 Conveyance Improvements.

38. Purchase Agreement with Grayland Holding Company, LLC in the amount of $46,662.00 for Drain 27 Conveyance Improvements.

39. Resolution authorizing the filing of an application with the ND Department of Health for a loan under the Clean Water Act for water utility infrastructure (Attachment “A”).

40. Sole Source Procurement of ammonia feed equipment to Treatment Resources, Inc. in the amount of $139,899.15 for Project No. WA1301.

41. Bid award to M&M Contractors, LLC in the amount of $115,006.00 for Project No. WA1752.

42. Sole Source Procurement for the purchase of vendor specific parts in 2018 from Swanston Equipment Corp. in the amount of $36,000.00, Sanitation Products in the amount of $45,000.00 and Nelson International in the amount of $70,000.00.

43. Transit Trade Agreement with the Fargo Force.

44. Joint Powers Agreement Metro Area Transit Master Operating Agreement with the City of Moorhead.

45. Contract with Valley Green & Associates for Transit Passenger Shelter and Hub Snow Removal Services from 1/1/18 through 6/30/22.

46. Amendment No. 2 to the Agreement with First Transit to revise the management fee for 1/1/18 through 12/31/18.

47. Bills in the amount of $14,123,507.11.

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.

Contract Amendment No. 1 for Improvement District No. BR-18-B0 Approved:
Commissioner Piepkorn moved approval of Contract Amendment No. 1 for an increase of $10,337.00 with Ulteig Engineers for Improvement District No. BR-18-B0.

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.

Change Order No. 2 for Improvement District No. PR-16-F1 Approved:
Commissioner Piepkorn moved approval of Change Order No. 2 for an increase of $49,177.02 for Improvement District No. PR-16-F1.

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.

Change Order No. 3 for Improvement District No. PR-17-H1 Approved:
Commissioner Piepkorn moved approval of Change Order No. 3 for an increase of $294,484.40 for Improvement District No. PR-17-H1.

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.

Final Balancing Change Order No. 1 for Improvement District No. AN-17-C1 Approved:
Commissioner Piepkorn moved approval of Final Balancing Change Order No. 1 for an increase of $1,418.00 for Improvement District No. AN-17-C1.

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.

Final Balancing Change Order No. 1 for Improvement District No. BR-17-E1 Approved:
Commissioner Piepkorn moved approval of Final Balancing Change Order No. 1 for an increase of $5,415.84 for Improvement District No. BR-17-E1.

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.

Final Balancing Change Order No. 2 for Improvement District No. PR-17-G1 Approved:
Commissioner Piepkorn moved approval of Final Balancing Change Order No. 2 for an increase of $10,185.15 for Improvement District No. PR-17-G1.

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.

Negative Final Balancing Change Order No. 1 for Improvement District No. AN-17-E1 Approved:
Commissioner Piepkorn moved approval of Negative Final Balancing Change Order No. 1 in the amount of -$621.50 for Improvement District No. AN-17-E1.

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.

Negative Final Balancing Change Order No. 2 for Improvement District No. BN-16-J1 Approved:
Commissioner Piepkorn moved approval of Negative Final Balancing Change Order No. 2 in the amount of -$51,636.85 for Improvement District No. BN-16-J1.

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.

Negative Final Balancing Change Order No. 2 for Improvement District No. BN-17-F1 Approved:
Commissioner Piepkorn moved approval of Negative Final Balancing Change Order No. 2 in the amount of -$9,358.09 for Improvement District No. BN-17-F1.

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.

Negative Final Balancing Change Order No. 2 for Improvement District No. PN-14-41 Approved:
Commissioner Piepkorn moved approval of Negative Final Balancing Change Order No. 2 in the amount of -$160,187.90 for Improvement District No. PN-14-41.

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.

Negative Final Balancing Change Order No. 4 for Improvement District No. BN-16-K1 Approved:
Commissioner Piepkorn moved approval of Negative Final Balancing Change Order No. 4 in the amount of -$14,702.83 for Improvement District No. BN-16-K1.

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.

Change Order No. 3 for Improvement District No. NR-16-A1 Approved:
Commissioner Piepkorn moved approval of Change Order No. 3 for an increase of $4,058.00 for Improvement District No. NR-16-A1.

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.

Change Order No. 4 for Improvement District No. BN-17-B1 Approved:
Commissioner Piepkorn moved approval of Change Order No. 4 for an increase of $89,255.45 for Improvement District No. BN-17-B1.

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.

No Protests Received for Shared Use Path and Incidentals Improvement District No. SN-16-C1:
The Statutory Resolution of Necessity for the construction of Shared Use Path and Incidentals Improvement District No. SN-16-C1 in the City of Fargo, North Dakota, was duly published in the official newspaper for the City of Fargo, North Dakota on October 2 and 9, 2017 and no protests have been filed in the office of the City Auditor within the legal protest period.

Commissioner Piepkorn moved that the Board declare that no protests have been filed to the construction of Shared Use Path and Incidentals Improvement District No. SN-16-C1.

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 Shared Use Path and Incidentals Improvement District No. SN-16-C1:
The bids for Shared Use Path and Incidentals Improvement District No. SN-16-C1 in the City of Fargo, North Dakota were opened at 11:30 o'clock a.m., November 1, 2017, and the bids were found to be as follows:

Master Construction Company, Inc. Fargo, ND
Bid: $232,690.00

A J Construction West Fargo, ND
Bid: $249,171.50

Key Contracting, Inc. Fargo, ND
Bid: $274,356.00

Opp Construction, LLC Fargo, ND
Bid: $311,752.50

Ti-Zack Concrete, Inc. LeCentre, MN
Bid: $319,790.00

Paras Contracting, Inc. Fargo, ND
Bid: $323,364.80

Contract for Shared Use Path and Incidentals Improvement District No. SN-16-C1 Awarded to Master Construction Company, Inc. in the Amount of $232,690.00:
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 Shared Use Path and Incidentals Improvement District No. SN-16-C1; and
WHEREAS, The Board of City Commissioners of the City of Fargo has considered the bids received for Shared Use Path and Incidentals Improvements Improvement District No. SN-16-C1 in the City of Fargo, North Dakota; and
WHEREAS, The City Engineer's tabulation of the bids received for Shared Use Path and Incidentals Improvement District No. SN-16-C1 shows the bid of Master Construction Company, Inc. of Fargo, North Dakota, in the sum of $232,690.00 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 Master Construction Company, Inc. in the sum of $232,690.00 is the lowest and best bid received.
BE IT FURTHER RESOLVED, That the contract for Shared Use Path and Incidentals Improvement District No. SN-16-C1 in the City of Fargo, North Dakota, be and the same is hereby awarded to Master Construction Company, Inc. for the sum of $232,690.00, 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 for Shared Used Path and Incidentals Improvement District No. SN-16-C1 Approved:
Commissioner Piepkorn moved approval of the Contract between the City of Fargo and Master Construction Company, Inc. for Shared Used Path and Incidentals Improvement District No. SN-16-C1 in the City of Fargo, North Dakota.

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.

Contract Bond for Shared Used Path and Incidentals Improvement District No. SN-16-C1 Approved:
Commissioner Piepkorn moved approval of the following described Contract Bond as to sufficiency:
Western Surety Company, in the amount of $232,690.00, for Shared Used Path and Incidentals Improvement District No. SN-16-C1 in the City of Fargo, North Dakota.

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.

Maranda Tasa Appointed to the Planning Commission:
The Board received a communication from Mayor Mahoney recommending that Maranda Tasa be appointed to the Planning Commission to fill the unexpired term of Mara Brust, who moved out of North Dakota.

Commissioner Grindberg said a committee was formed to make recommendations for Planning Commission candidates. He said the committee then interviewed the top three candidates, which is a new and more open and transparent process for selection to the Planning Commission. He said the committee also took into account the present Planning Commission in regards to tenure, geographic location and experience.

Commissioner Grindberg moved Maranda Tasa be appointed to the Planning Commission to fill the unexpired term of Mara Brust for a term ending June 30, 2018.

Second by Gehrig. 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.

Discussion on Election Reform Proposals:
Commissioner Grindberg said the Election and City Governance Task Force recommended approval voting, increasing the number of Commissioners from five to seven and the Task Force also discussed the ward system. He said on October 23, 2017 the City Commission delayed action on election reform proposals to allow time for public input. He said his intention was to make motions before the end of the year about election reform and move beyond the topic. He said he brought two documents to this meeting, which were shared at the December 13th public input meeting. The first, he said, is a Resolution to expand the City Commission from a Mayor and four Commissioners to a Mayor and six Commissioners. The second, he said, is a Resolution establishing a primary/general election of a Mayor and City Commissioners.

Commissioner Strand said he is prepared to advance a motion on the recommendation to have the people consider approval voting.

Commissioner Piepkorn said he wanted to know the cost of adding two Commissioners. He said he had no more than two emails and there was very little interest from people as far as changing anything. He asked what the compelling reason was for the reforms and if the people are feeling unserved. He said this looks like a solution in search of a problem. He said the Commissioners have a lot of responsibility; however, the Commissioners enjoy the involvement. He said the City has a very successful model and is doing well. It is giving the voters an opportunity, he said; however, the reform proposals are going to cost more taxpayer money.

Commissioner Gehrig said the run-off system was rejected not too long ago and he would only support adding Commissioners if the City went to a ward system, which the majority of cities the size of Fargo have. He said if there is an outpouring from the citizens, they could get the issue on the ballot with enough signatures on a petition.

City Auditor Steve Sprague said every election is different; however, costs are usually $30,000.00 to $35,000.00.

Commissioner Grindberg said the second Resolution is not to add another election; it is using the existing county primary election in June and the general election in November.

Mayor Mahoney said previously there was not a City Administrator and an Assistant City Administrator. He said City Administrator Bruce Grubb and Assistant City Administrator Michael Redlinger have taken on many responsibilities and the present system works well.

Commissioner Grindberg moved to adopt a Resolution to Amend the Home Rule Charter to expand the number of Commissioners from the Mayor and four Commissioners to the Mayor and six Commissioners and to propose other revisions to the Home Rule Charter to accommodate said expansion.

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

Commissioner Grindberg moved to adopt a Resolution to Amend the Home Rule Charter to establish a two-stage primary election/general election process for all elections of the Mayor and City Commissioners.
The motion died for lack of a second.

Commissioner Strand moved the City Attorney be directed to draft a Resolution amending the Home Rule Charter to add approval voting as the method of voting for the City of Fargo.
The motion died for lack of a second.

Hearing on a Dangerous Building Located at 1011 5th Avenue South: City Attorney's Office Directed to Prepare the Appropriate Findings of Fact and Order:
A Hearing had been set for this day and hour on a dangerous building located at 1011 5th Avenue South.
The Board received a communication from Inspections Administrator Bruce Taralson submitting a Notice of Dangerous Building Order. He said the property owner has failed to comply with orders to remove the heavily damaged structure within the time allowed. He said this hearing allows the owner of the property an opportunity to show cause as to why the City should not remove of the building. He said the property owner can ask that the building not be removed; however, the Inspections Department has determined this building meets all the criteria for a dangerous building. He said a 30-day notice was given to the owner and the timeline will show the notice went out; however, there has been no action and the notice expired on November 1, 2017. He said the property was built as a single family home in the late 1890s and was later used as a rental. He said there are many abandoned construction and remodeling projects on the property. The estimated costs to repair the property exceed the 50 percent threshold of the current value of the property, he said; therefore, the path of demolition is required. He said the property is vacant and not habitable due to the fact there is major structural deterioration. He said he suggests the Commission agree with his notice and direct the City Attorney to prepare the appropriate findings of fact to secure the removal of the building.

In response to a question from Commissioner Gehrig asking if the owner lives in Fargo, Mr. Taralson said the owners do not live in the area and the property is in foreclosure and currently owned by a bank in Houston, Texas. He said there have been several inquiries from the public about the property and someone was at one time going to purchase it; however, they backed out at the last minute.

In response to a question from Commissioner Gehrig asking if the City will end up with the land, Mr. Taralson said the City’s option is to demolish the building and then the land is open for sale. He said the property is in a trust and the Inspections Department notified all of the owners; however, he did not hear from any of them. He said realtors are aware of the City’s demolition order and they know they can come forward with a plan to provide an engineer to rehab the property or there is the option to build a new home on the lot.

In response to a question from Commissioner Strand asking if the bank owns the building, are they responsible for maintaining it, City Attorney Erik Johnson said that since it has been determined to be a dangerous building, the City can demolish it and the costs of demolition are assessed to the property.

Planning Administrator Jim Gilmour said there is a lot of interest in the lot and once the house is demolished, more than likely someone will buy it.

Commissioner Piepkorn moved to issue an order that the owner remove this structure within 30 days of the date of this hearing and authorize the Inspections Department to take the necessary steps to secure the removal of this structure if it is not removed within the time allowed by the Board’s Order.

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.

Route 35 Suspended: First Amendment to Agreement for Transit Services with North Dakota State University to Provide On-Demand Service (TapRide) Approved:
A Hearing had been set for this day and hour to consider suspending service to Route 35 on January 8, 2018 to allow for a new on-demand response fixed route service that will increase the operation area of the current Route 35.
No written protest or objection to the suspension has been received or filed in the Transit Department.
The Board determined that no person is present to protest or offer objection to the suspension.

Assistant Transit Director Matthew Peterson said Transit has been exploring new ways to improve fixed route operations. He said working with TapRide, Transit will be piloting a new, on-demand fixed route service on the NDSU campus January 8, 2018 through May 19, 2018. He said the curb-to-curb service would increase the safety and security of NDSU students at night and provide more relevant pick up and drop off locations throughout campus. He said the service is much like Uber or Lyft where students download an app and request a ride. He said it is a new and innovative way of running a transit service. He said the TapRide service will use a smaller vehicle, much like what is used for paratransit, and if successful, Transit may look at operating the system in rural areas. He said the operation of the route will be paid for by suspending Route 35 service plus funds provided by NDSU to operate TapRide for the six-month pilot. He said the Finance Committee approved the pilot program at its November 27, 2017 meeting.

In response to a question from Commissioner Gehrig asking about the per hour costs for TapRide versus the regular Route 35, Mr. Peterson said they will not know the costs until after the pilot is completed; however, operating a paratransit-size vehicle is about two-thirds the cost of operating a regular city bus.

In response to a question from Commissioner Strand asking if Transit had contacted Uber or Lyft to compare to TapRide, Mr. Peterson said there was a lot of talk about integration of Uber- or Lyft-style transportation; however, neither Uber nor Lyft would give Transit a bid. He said TapRide was the only company to give Transit a bid and commit to a six-month pilot program. He said on-demand service may be the future of Transit due to the fact that it is hard to service everything on a fixed route. He said he hopes to have statistics to share with the City Commission in March or April.
Commissioner Gehrig moved to suspend Route 35 and the First Amendment to the Agreement for Transit Services with North Dakota State University to Provide On-Demand Service (TapRide) be approved.

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

Renaissance Zone Project for Wild Terra Cider and Brewing Company LLC for a Commercial Lease Project at 6 12th Street North Approved:
A Hearing had been set for this day and hour to receive comments on a Renaissance Zone Project for Wild Terra Cider and Brewing Company LLC for a business leasing property as part of a zone project at 6 12th Street North.
No written protest or objection to the Project has been received or filed in the City Auditor's Office.
The Board determined that no person is present to protest or offer objection to the Project.
The Board received a communication from Planner Derrick LaPoint stating the Renaissance Zone Law states “a business that purchases or leases property as part of a zone project is exempt from income tax for five taxable years beginning in the year of the investment or lease for income derived from the business locations within the zone.” He said the Fargo Renaissance Zone Development Plan further states “Tenant must be leasing space in a building that has been approved as a zone project to be eligible for consideration.” He stated the Renaissance Zone Authority felt that lease projects such as the application from Wild Terra Cider and Brewing Company LLC would generally be straightforward and could be advanced to the City Commission following staff review and would generally not require direct Authority action. He said staff review found the applicant has met the aforementioned requirements. He said the project addresses the business retention and expansion goals stated in the Renaissance Zone Development Plan.

Commissioner Strand moved the Renaissance Zone application filed by Wild Terra Cider and Brewing Company LLC for a commercial lease project located at 6 12th Street North be approved and the income tax exemptions be granted as recommended by the Renaissance Zone Authority.

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

Application Filed by Cathedral Lofts, LLC for Payment in Lieu of Tax Exemption (PILOT) Approved:
A Hearing had been set for November, 20, 2017, on an application filed by Cathedral Lofts, LLC for a payment in lieu of property tax exemption for a project located at 719 7th Street North, which the applicant will use in operation of an apartment building with 34 one-bedroom apartments.
At the November 20, 2017 meeting the Hearing was continued to this day and hour.
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.

Planning Administrator Jim Gilmour said the plan for the Cathedral Lofts project is the same as it was four weeks ago and the Tax Exempt Committee did not change their recommendation for approval.

In response to a question from Mayor Mahoney asking about affordable housing and the system used in St. Louis Park, Minnesota, Mr. Gilmour said Planning did look at St. Louis Park’s program; however, St. Louis Park provides more subsidies and exemptions and its rent prices are not much less than Fargo. He said it has not been decided what is considered affordable housing in Fargo. He said nationally, affordable housing is 50 percent of median income.

Jessie Craig, Craig Development, said the City is trying to change the rules midway through a project. He said the land is zoned Downtown Mixed Used. He said it was placed in the DMU zone to encourage development and the land and building will now be taxable. He said what has come up in conversations lately is the low-income housing component and there is a lot of risk with low-income housing. He said if the City is trying to entice low-income housing, no developer is going to take that risk.

Commissioner Piepkorn said he is deeply conflicted about giving incentives for apartment buildings. He said he thinks it is wrong for the City to give incentives to build market rate apartments and he does not think that the City should do it anymore.

Commissioner Grindberg said it is incumbent to provide a stable environment and incent where appropriate. He said the tax incentive policy should be revisited every two years, and not at the whim of a Commission that does not like a policy. He said it is important to provide an environment that is conducive for growth.

Mayor Mahoney said the City has been pushing for more apartments downtown. He said this project does qualify as affordable; however, low income is in a different area and usually has federal programs attached to it.

Commissioner Gehrig said some incentive programs have has been in place for more than 35 years. He said government is notoriously slow and the policy has not changed. He said there were specific guidelines for PILOTs, including no parking ramps, apartments, office buildings or retail stores; however, some of those types of projects were granted PILOTs.

Commissioner Strand said it is imperative the Commission build an affordability aspect into a project that gets public funds. He said it is not the job of the public sector to make it easier for developers to be more profitable. He said on the map in the packets handed out last month, this project is outside the qualifying district. He said the City has since revised the DMU zone; however, it was not on the map and even though it is a small detail, the map needs to be updated. He said more apartments are needed that accommodate the spectrum of salaries and wages. He said he is not comfortable voting on this incentive and more research is needed.
Commissioner Strand moved to place a moratorium on tax exemptions and incentives, especially PILOTs, for apartments in the Downtown District until such time as they have been thoroughly vetted.

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

Commissioner Grindberg said he will not support a moratorium and the City is sending a dangerous message to developers and the community. He said this project followed the process.

Commissioner Piepkorn said the Fargo Housing Authority (FHA) does an excellent job downtown and the Commission needs to work with the FHA to have them participate. He said his fear is telling developers they have to include a low-income component due to the fact that a lot of the time that is not viable. He said this is a very important issue and the time has come to make changes.

Mayor Mahoney said unless someone comes up with a viable alternative, Mr. Craig’s project will become a parking lot for Sanford and the City will not collect any property taxes. He said he would rather see growth, the project follows current policy and the City Commission cannot change the policy at this time.

Commissioner Strand said the City needs to be prepared for what is coming and be prepared so the workforce has housing. He said he is not anti-developer and is pro-growth; however, he is also for balance and the needs of the people. He said the only reason the Commission is having this discussion is due to the fact that it is public money.
Commissioner Grindberg moved that the application filed by Cathedral Lofts, LLC for a 10-year payment in lieu of tax exemption pursuant to Chapter 40-57.1, NDCC be approved as follows:

Year 0 through 5 $0
Year 6 through 10 $14,386

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

At 6:30 p.m. the Board took a five-minute recess.
After recess: All Commissioners present. Mayor Mahoney presiding.

Hearing on Vacation of a Portion of 2nd Street North Between 1st Avenue North and 5th Avenue North of North Dakota R-1 Urban Renewal Addition Continued to January 2, 2018 (2nd Street North from 1st Avenue North to 5th Avenue North):
A Hearing had been set for November 20, 2017 on a Vacation of a portion of 2nd Street North between 1st Avenue North and 5th Avenue North of North Dakota R-1 Urban Renewal Addition (2nd Street North from 1st Avenue North to 5th Avenue North).

At the November 20, 2017 Regular Meeting, the Hearing was continued to December 18, 2017.

At the December 18, 2017 Regular Meeting, the Planning Department requested the Hearing be continued to January 2, 2018.
Commissioner Grindberg moved the Hearing be continued to 5:15 o’clock p.m. Monday, January 2, 2018.

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

Hearing on a Dedication Plat of 2nd Street North on Portions of North Dakota R-1 Urban Renewal Addition, Keeney and Devitt’s Second Addition and Portions of Vacated 2nd Street North, 4th Avenue North and 5th Avenue North Continued to January 2, 2018 (2nd Street North from 1st Avenue to 5th Avenue North):
A Hearing had been set for November 20, 2017 on a Dedication Plat of 2nd Street North on Portions of North Dakota R-1 Urban Renewal Addition, Keeney and Devitt’s Second Addition and Portions of Vacated 2nd Street North, 4th Avenue North and 5th Avenue North (2nd Street North from 1st Avenue to 5th Avenue North).
At the November 20, 2017 Regular Meeting, the Hearing was continued to December 18, 2017.
At the December 18, 2017 Regular Meeting, the Planning Department requested the Hearing be continued to January 2, 2018.
Commissioner Grindberg moved the Hearing be continued to 5:15 o’clock p.m. Monday, January 2, 2018.

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

City of Fargo Public Art Master Plan Approved:
Planning Administrator Nicole Crutchfield said the Public Art Master Plan was developed by the Arts and Culture Commission and a consultant team lead by Jack Becker of Forecast Public Art. She said the Plan includes public outreach, engagement and investigation to bring together ten over-arching goals. She said the goals implement the vision of the City of Fargo as a livable community where integrating public art into City initiatives, neighborhood revitalization efforts and private developments is a norm, where every citizen, worker and visitor in Fargo has the opportunity to freely experience quality art and creative expression as part of their daily lives. She said methods to implement the vision are included in the Master Plan and will span several years. She said the Plan provides the framework to build relationships and partnerships to participate in a larger arts and culture community already doing great work in Fargo. She said the Plan identifies six districts in Fargo and each is different in culture. For example, she said, the culture in neighborhoods near the airport are different than the culture in neighborhoods in the Osgood area. She said it also includes information about private spaces looking for art, such as a lobby in an office building. She said data suggests that 77 percent of people experience the arts in non-arts venues, such as a park, hospital, shopping mall or airport. She said there are also suggestions for temporary and pop-up art.

Commissioner Piepkorn said there are many ways the City can participate in public art and it is not a lot of money.

Commissioner Gehrig said he is concerned the Plan as presented is not complete. He said the Plan asks for $100,000.00 from this year to next year. It also has funding for parks, he said, and the City Commission is not the Park Board. He said there are some things he likes and some things he does not like. He said he would like to know what the Commission is approving and if it is possible to receive and file the Plan rather than approve it so changes can be made.

Ms. Crutchfield said it is customary to approve a plan and such an endorsement from the Commission gives staff confidence. She said the Public Art Master Plan is just a concept and there will be incremental changes.

City Attorney Erik Johnson said a Commissioner can make a more elaborate motion, such as approving the concept as a framework for moving forward and to recognize the Plan as a draft.
Commissioner Strand moved the City of Fargo Public Art Master Plan 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.

Parking Rate Schedule for 2018 Approved:
The Board received a communication from Planning Director Jim Gilmour stating the Parking Commission has recommended with a 3-to-0 vote that changes be made to the monthly parking rates for City-owned parking facilities. He said over the past two years, rates have increased to more closely align with the market rate of off-street parking downtown. This year’s adjustments, he said, are more modest and continue to reflect the balance between supply and demand. He said the new rates would be effective February 1, 2018 in order to give appropriate 30-day notices.

Planner Derrick LaPoint said the City has very good technology in order to monitor the parking lots and adjust accordingly. He said the City wants to promote that the parking lots are free after 5 p.m. during the week and all day on weekends. He said the Planning Department is looking into signage and some type of marketing to get that information to residents and visitors.
Commissioner Piepkorn moved the 2018 Parking Rate Schedule be approved, effective February 1, 2018.

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.

State Water Commission Request for Reimbursement for FM Diversion Project Costs Approved:
Finance Director Kent Costin said the State Water Commission is requesting $1,105,872.00 for cost reimbursement for the FM Area Flood Risk Management Project for November 2017. He said the request is for expenses related to projects excluding the Oxbow/Hickson/Bakke component of the project.
Commissioner Grindberg moved the cost reimbursement request in the amount of $1,105,872.00 for the FM Diversion Flood Project for expenses related to projects excluding the Oxbow/Hickson/Bakke component of the project be approved.

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

State Water Commission Request for Reimbursement for FM Diversion Project Costs Approved:
Finance Director Kent Costin said the State Water Commission is requesting $1,377,451.00 for cost reimbursement for the FM Area Flood Risk Management Project for November 2017. He said the request is for expenses related to projects in the Oxbow/Hickson/Bakke component of the project.
Commissioner Grindberg moved the reimbursement request in the amount of $1,377,451.00 for the FM Area Flood Risk Management Project for expenses related to projects in Oxbow/Hickson/Bakke be approved.

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

Task Order No. 20 for Project No. WW1701 Approved:
The Board received a communication from the Utility Committee stating the City of Fargo recently completed a Waste Water Treatment Plant (WWTP) Facility Plan to review the existing wastewater facilities condition and capacity. They said the plan established a capacity that may be reached within the next four years based on the City of Fargo planning numbers and WWTP capabilities. As a result, they said, planning for a future WWTP Phase II Improvement is necessary due to plant limitations, to accommodate growth and regionalization, as well as meet the projected 20-year capacity requirements. To meet the schedule outlined in the Wastewater Agreement with West Fargo, they said, portions of the expansion need to be completed by the end of 2018.

Wastewater Utility Director Jim Hausauer said Wastewater Utility has a placeholder in the 20-year Capital Improvement Plan (CIP) for the Phase II expansion. He said the project will be funded with a 2 percent Clean Water State Revolving Fund loan and is programmed to be repaid with sales taxes and rate funds. He said Task Order No. 20 in the amount of $1,773,325.00 is for design and bidding services with Apex Engineering Group associated with the Wastewater Treatment Plant Phase II-A improvements. He said the goal is to double the capacity of the plant to 29 million gallons per day, treat or accommodate wastewater from the region and manage peak flows of 50 million gallons during rain or flood events. He said the Phase II improvements are important for the West Fargo connection. He said when procuring specialized items, there is a long lead time required to place and receive an order and Phase II-B involves the disinfection system. He said the plant currently uses chlorine and sulphur dioxide for disinfection and to double the plant’s capacity, the preferred disinfection alternative is UV disinfection, which is better for staff, for public safety and for the environment. He said with the centrifuge unit, which is needed for the West Fargo connection, once it is purchased it can also be used after the build out and is not a throw away item. He said bid opening for the project will be in May or June 2018. He said Apex Engineering Group was selected as the firm for design and bidding services through competitive bidding.
Commissioner Gehrig moved Task Order No. 20 for Project No. WW1701 be awarded to Apex Engineering Group in the amount of $1,773,325.00.

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

Precinct Locations for the 2018 Elections Approved (Moved from the Consent Agenda):
The Board received a communication from City Auditor Steve Sprague with a listing of precinct locations for the June 12, 2018 Primary Election and the November 6, 2018 General Election. He said at this time, precinct boundaries are still being established; however, most of the listed locations will not change and there are a couple of locations that the County Auditor’s office is still confirming and are subject to change. Most legislative districts will have two precinct locations, he said, and efforts have been made to avoid using schools due to security-related issues.

Commissioner Strand said he wanted more information about the security concerns at the schools. He said elections should be brought back to the schools to inspire civic engagement and it raised concerns for him as to how this decision transpired. He said the School Board passed recommendations to bring elections back to the schools and he does not want to vote for this without a discussion. He said the City should reach out to the schools and ask if they want to hold elections if possible.

Commissioner Piepkorn said with tighter security now in the schools and the fact that all visitors having to sign in, people cannot just walk in and out of schools anymore.

Mr. Sprague said the County decides the election locations. He said several years ago when elections were held in schools, there were 39 precincts and now there are only 16 precincts. He said the City and County moved away from schools due to the fact that parking was difficult, some schools were not handicap accessible and there were concerns with security. He said the City and County can reach out to the schools again per Commissioner Strand’s request. He said perhaps some of the larger schools might be an option where access only to the gymnasium is allowed. He said he would discuss this with the Cass County Auditor to consider in the future; however, for now, state law requires that the election sites be chosen and approved before December 31st of the year preceding an election year.
Commissioner Grindberg moved the precinct locations for the June 12, 2018 Primary Election and the November 6, 2018 General Election 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.

2018 Capital Improvement Plan Approved (Moved from the Consent Agenda):
The Board received a Report of Action from the Public Works Projects Evaluation Committee (PWPEC) stating that each year the City of Fargo Engineering Department is responsible for creating and managing a Capital Improvement Plan (CIP) for construction, preservation and reconstruction of the city’s infrastructure. They said the plan includes projects involving federal aid, water main and street reconstruction, arterial roadways, flood control, pavement preservation, storm sewer utility, traffic and streetlights, new development, alley paving, sidewalks and miscellaneous. They said the total construction estimate for the 2018 CIP is $125,899,022.00.

Commissioner Strand said the CIP is a large dollar item, he does not want to rubber stamp it through on the Consent Agenda and a citizen requested that he pull it for discussion. He said he wants to know how the CIP happens, what the process is and how it gets to this point.

Division Engineer Jeremy Gorden said the CIP is a multi-step process, starting with PWPEC and the final approval is by the City Commission. He said there are a number of federal aid projects in this year’s CIP, four to six water main projects, an arterial road project, which is 13th Avenue west of 45th Street, and continued flood buyouts, floodwalls and levees. He said with federal aid projects, the Metropolitan Council of Governments (MetroCOG) and the City plan four years in advance with the Department of Transportation due to the fact that the majority are large-scale projects having to do with capacity, safety and expansion. He said the water main project is an ongoing effort to replace all cast iron pipes. He said MetroCOG and the City ask for funding for a project; however, it is not guaranteed if or when that project will be funded and slotted. He said in the past, Fargo received $4 million a year in urban federal aid and West Fargo received $1 million. He said Fargo and West Fargo are now combined into one region and get about $5 million. He said the NDDOT has $32 million statewide to spend annually and sometimes the Fargo/West Fargo region gets a bigger chunk and sometimes it is less. He said the NDDOT asks what the priorities are in this region, and sometimes they plug it in and sometimes they do not. He said streets that are falling apart, have a bad driving surface, bad drainage and have a cast iron water main under it get high priority. He said another example is, for instance, when the Roberts Street parking garage was being built, everything on Second Avenue was replaced, even though it wasn’t necessarily time to replace it. The biggest projects for 2018, he said, are 10th Street north of downtown and South University Drive north of the interstate to 18th Avenue. He said the City Commission will always see these projects and approve them before they are advertised for bids. He said the plan is a fluid document as projects are continuously added and deleted.

In response to a question from Commissioner Strand about the impact on businesses of these projects and where those decisions happen, Mr. Gorden said all of the decisions happen in Engineering. He said the plan is for Engineering to have a two- to three-year rolling CIP, putting a longer list together due to the fact that the NDDOT is already soliciting for projects in 2019, 2020, 2021 and 2022. He said the wheels are always in motion, sometimes slowly, but they do move.
Commissioner Grindberg moved the 2018 Capital Improvement Plan be approved.

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.

Commissioner Strand said the Governor’s Task Force meetings regarding the FM Diversion project were an interesting process and it was commendable that both Governor Doug Burgum and Governor Mark Dayton lead the effort to try to find middle ground. He said their goals were to maintain federal authorization and certification and take into consideration the impacts upstream and downstream and they made sure those elements were brought together. He said the Task Force helped shape whatever the final plan is as far as locations and configurations and everything was in the context of “is that permitable.” He said it would be a good idea to keep all of the voices at the table and keep everyone involved in the dialogue so they do not feel shut out. He said Fargo-Moorhead has flood protection coming that will exceed the needs of a 100-year event and will help in the fight against even bigger events. He said when he was asked to serve on the Task Force he was afraid the group could not move forward; however, he is very optimistic that the Diversion will be a permitable project.

Commissioner Grindberg moved that the Board adjourn to 5:00 o’clock p.m., Tuesday, January 2, 2018.

Second by Piepkorn. All the Commissioners voted aye and the motion was declared carried.
The time at adjournment was 7:04 o’clock p.m.