Board of City Commission - May 22, 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, May 22, 2017.
The Commissioners present or absent were as shown following:
Present: Gehrig, Grindberg, Piepkorn, Strand, Mahoney.
Absent: None.
Mayor Mahoney presiding.

Mayor Mahoney said last weekend’s Fargo Marathon was a great event and he read a statement with the following information: Scott Stenvold, Buildings and Grounds Supervisor, was honored by the Freedom Resource Center for Independent Living with the Accessibility Award; Fargo Cass Public Health recently hosted trainings titled “Human Trafficking in North Dakota;” the Library will host Spring Gardening, Crafternoons and Summer Reading programs, and ND State Park passes are available at the Library; the Planning Department reports the metro-wide apartment vacancy rate remains steady at 9.2%; dozens of Police Officers traveled to Washington, DC to attend the 2017 Law Enforcement Week ceremonies; the City of Fargo celebrated Arbor Day and its 40th year of recognition as a Tree City USA on May 19th.

Order of Agenda Approved:
Commissioner Gehrig moved the Order of the Agenda be approved.

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

Minutes Approved:
Commissioner Piepkorn moved that the Minutes of the Regular Meeting of the Board held on May 8, 2017 and the Special Meeting of the Board held on May 15, 2017 be approved as read.

Second by Strand. 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. 2nd reading, waive reading and final adoption of Ordinances Rezoning Certain Parcels of Land Lying in the following; 1st reading, 5/8/17:
a. Beardsley’s Addition, Fargo, Cass County, North Dakota.
b. Harwood Addition, Fargo, Cass County, North Dakota.
c. Reeves Addition, Fargo, Cass County, North Dakota.
d. Reeves Addition, Fargo, Cass County, North Dakota.

2. Receive and file Year to Date – Budget to Actual for April 2017.
3. Request from Great Rides Fargo to hang Streets Alive! banners in the skyway from June 15th to June 25th and August 17th to August 27th.
4. Site Authorizations for Games of Chance:
a. Prairie Public Broadcasting, Inc. at Tailgators and Dempsey’s.
b. Northern Prairie Performing Arts at Windbreak Lounge and D’Woods at Baymont Inn & Suites.
c. Team Makers Club, Inc. at Holiday Inn, Frank’s Lounge, Lucky’s 13 Pub, Fargo Dome and Sanford Health Athletic Complex/Scheels Center.
d. VFW Club of Fargo at VFW Club Post 762.
e. ND Association for the Disabled, Inc. at Shotgun Sally’s Rock N Roll Saloon, Hennessy’s Irish Pub, Bulldog Tap and O’Kelly’s.
f. American Gold Gymnastics, Inc. at SideStreet Grille & Pub and The Box.
g. Boys & Girls Club of the Red River Valley at Pickled Parrot and Red River Lanes/Slammers.
h. Sharehouse Inc. at The Round Up, Vista Inn/Alibi’s, Woody’s, Rick’s Bar and Borrowed Buck’s.
i. Horse Race North Dakota at Labby’s Bar & Grill, Sickies Garage-Fargo, Chub’s Pub and Herd & Horns.

5. Applications for Games of Chance:
a. Fargo Gateway Lions for a raffle on 7/11/17.
b. El Zagal Shrine Provost Guard for a sports pool from 9/11/17 to 12/31/17.
c. North Dakota Solid Waste & Recycling Association for a raffle on 9/20/17.
d. Tri-city Storm Soccer Club for a raffle on 6/30/17.

6. NDPERS Health Insurance Premium structure effective July 1, 2017.
7. Adopt Resolutions Approving the following Plats:
a. Ekman Dakota View Addition (Attachment “A”).
b. Agassiz Crossing 6th Addition (Attachment “B”).

8. Storefront Rehab using Community Development Block Grant Rehab funding at 19 1/2 and 23 1/2 8th Street South.
9. Parking Agreement with DFI Roberts, LLC.
10. School Contracts with Kindred Public School District, Mapleton School District and Northern Cass School for nursing services for the 2017-2018 school year.
11. Notice of Grant Award Amendment in the amount of $7,200.00 with the ND Department of Health for the WIC Program (CFDA No. 10.557).
12. Notice of Grant Award Amendment in the amount of $51,000.00 with the ND Department of Health for Public Health Emergency Preparedness/All Hazards (CFDA No. 93.069).
13. Amendment to Agreement for Provision of City Readiness Initiative Grant Activities in Clay County for an increase of $2,000.00 for Clay County Public Health Department.
14. Direct Information Services staff to finalize the TTS proposal and move forward with implementation of the system integration.
15. Water Tower Lease Agreement with Moorhead Public Service for space on the Oakport Water Tower for emergency radio communication equipment.
16. 2017 Mosquito Control Agreement with Cass County.
17. Forward Contract for fuel purchases in the 3rd and 4th Quarters of 2017.
18. Final Balancing Change Order No. 4 for a decrease of $114,325.73 for Project No. FM-14-02.
19. Relocation of CenturyLink utilities for Project Nos. FM-15-B1 and FM-15-K1 in the amount of $87,134.52.
20. License Agreement Amendment (Second) with Xcel Energy.
21. Relocation and removal of Xcel Energy utilities for Project No. FM-17-A1 in the amount of $16,755.74.
22. Bid advertisement for Project No. SN-17-A.
23. Bid award to Dakota Underground Company in the amount of $2,708,816.41
for Improvement District No. BR-17-B1.

24. Contracts and bonds for Project Nos. FM-15-B2, HD-17-A1 and TM-17-A1.
25. Bills in the amount of $5,513,519.54.

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.

Amendments to the 2017 Capital Improvement Plan Approved:
The Board received a Report of Action from the Public Works Projects Evaluation Committee (PWPEC) regarding revisions to the 2017 Capital Improvement Plan (CIP) to include the addition of Improvement District No. TN-16-F1 and
Project No. MS-15-F0 (52nd Avenue South at 31st Street South and17th Avenue South Corridor Study) and the removal of Project No. QR-17-C1 and Improvement District No. TN-17-A1 (12th Avenue North over the Red River and 52nd Avenue at 53rd Street.
Commissioner Grindberg moved the amendments to the 2017 Capital Improvement Plan adding Improvement District No.TN-16-F1 and Project No.
MS-15-F0 and removing Project No. QR-17-C1 and Improvement District No.
TN-17-A1 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.

P.C. Concrete Alley Paving and Incidentals Improvement District No. AN-17-B1: Protests Received and Declared Sufficient to Protest Project Out:
The Statutory Resolution of Necessity for the construction of P.C. Concrete Alley Paving and Incidentals Improvement District No. AN-17-B1 in the City of Fargo, North Dakota, was duly published in the official newspaper for the City of Fargo, North Dakota, on April 17 and 24, 2017 and protests representing 61 percent of the legal protest area have been received and filed in the office of the City Auditor within the legal protest period.
Commissioner Grindberg moved the protests be received and filed and declared sufficient to protest the project out.

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.

No Protests Received for Sanitary Sewer, Water Main, Storm Sewer, Site Grading, Paving, Street Lighting and Incidentals Improvement District No. BN-17-B1:
The Statutory Resolution of Necessity for the construction of Sanitary Sewer, Water Main, Storm Sewer, Site Grading, Paving, Street Lighting and Incidentals Improvement District No. BN-17-B1 in the City of Fargo, North Dakota, was duly published in the official newspaper for the City of Fargo, North Dakota on April 17 and 24, 2017 and no protests have been filed in the office of the City Auditor within the legal protest period.
Commissioner Grindberg moved that the Board declare that no protests have been filed to the construction of Sanitary Sewer, Water Main, Storm Sewer, Site Grading, Paving, Street Lighting and Incidentals Improvement District No. BN-17-B1.

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.

Bids Received for Sanitary Sewer, Water Main, Storm Sewer, Site Grading, Paving, Street Lighting and Incidentals Improvement District No. BN-17-B1:
The bids for Sanitary Sewer, Water Main, Storm Sewer, Site Grading, Paving, Street Lighting and Incidentals Improvement District No. BN-17-B1 in the City of Fargo, North Dakota were opened at 11:30 o'clock a.m., May 17, 2017 and the bids were found to be as follows:

Master Construction Company, Inc. Fargo, ND
Bid: $6,605,449.60

Northern Improvement Company Fargo, ND
Bid: $7,407,211.55

Quam Construction Company, Inc. Willmar, MN
Bid: $7,711,429.25

KPH, Inc. Kindred, ND
Bid: $7,728,619.05

Dakota Underground Company Fargo, ND
Bid: $8,293,948.75

Contract for Sanitary Sewer, Water Main, Storm Sewer, Site Grading, Paving, Street Lighting and Incidentals Improvement District No. BN-17-B1 Awarded to Master Construction Company, Inc. in the Amount of $6,605,449.60:
Commissioner Grindberg offered the following Resolution and moved its adoption:
WHEREAS, The City Engineer has prepared and filed a detailed statement of the estimated costs of Sanitary Sewer, Water Main, Storm Sewer, Site Grading, Paving, Street Lighting and Incidentals Improvement District No. BN-17-B1; and
WHEREAS, The Board of City Commissioners of the City of Fargo has considered the bids received May 17, 2017 for Sanitary Sewer, Water Main, Storm Sewer, Site Grading, Paving, Street Lighting and Incidentals Improvements Improvement District No. BN-17-B1 in the City of Fargo, North Dakota; and
WHEREAS, The City Engineer's tabulation of the bids received for Sanitary Sewer, Water Main, Storm Sewer, Site Grading, Paving, Street Lighting and Incidentals Improvement District No. BN-17-B1 shows the bid of Master Construction Company, Inc. of Fargo, North Dakota, in the sum of $6,605,449.60 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 $6,605,449.60 is the lowest and best bid received.
BE IT FURTHER RESOLVED, That the contract for Sanitary Sewer, Water Main, Storm Sewer, Site Grading, Paving, Street Lighting and Incidentals Improvement District No. BN-17-B1 in the City of Fargo, North Dakota, be and the same is hereby awarded to Master Construction Company, Inc. for the sum of $6,605,449.60, 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 Gehrig. On the vote being taken on the question of the adoption of the Resolution Commissioners Grindberg, Gehrig, Strand, Piepkorn and Mahoney voted aye.
No Commissioner being absent and none voting nay, the Resolution was adopted.

No Protests Received for Water Main Replacement, Force Main Construction, Street Reconstruction and Incidentals Improvement District No. BR-17-C1:
The Statutory Resolution of Necessity for the construction of Water Main Replacement, Force Main Construction, Street Reconstruction and Incidentals Improvement District No. BR-17-C1 in the City of Fargo, North Dakota, was duly published in the official newspaper for the City of Fargo, North Dakota on April 17 and 24, 2017 and no protests have been filed in the office of the City Auditor within the legal protest period.
Commissioner Grindberg moved that the Board declare that no protests have been filed to the construction of Water Main Replacement, Force Main Construction, Street Reconstruction and Incidentals Improvement District No. BR-17-C1.

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.

Bids Received for Water Main Replacement, Force Main Construction, Street Reconstruction and Incidentals Improvement District No. BR-17-C1:
The bids for Water Main Replacement, Force Main Construction, Street Reconstruction and Incidentals Improvement District No. BR-17-C1 in the City of Fargo, North Dakota were opened at 11:30 o'clock a.m., May 17, 2017 and the bids were found to be as follows:

Master Construction Company, Inc. Fargo, ND
Bid: $2,189,562.90

KPH, Inc. Kindred, ND
Bid: $2,524,017.20

Contract for Water Main Replacement, Force Main Construction, Street Reconstruction and Incidentals Improvement District No. BR-17-C1 Awarded to Master Construction Company, Inc. in the Amount of $2,189,562.90:
Commissioner Grindberg offered the following Resolution and moved its adoption:
WHEREAS, The City Engineer has prepared and filed a detailed statement of the estimated costs of Water Main Replacement, Force Main Construction, Street Reconstruction and Incidentals Improvement District No. BR-17-C1; and
WHEREAS, The Board of City Commissioners of the City of Fargo has considered the bids received May 17, 2017 for Water Main Replacement, Force Main Construction, Street Reconstruction and Incidentals Improvements Improvement District No. BR-17-C1 in the City of Fargo, North Dakota; and
WHEREAS, The City Engineer's tabulation of the bids received for Water Main Replacement, Force Main Construction, Street Reconstruction and Incidentals Improvement District No. BR-17-C1 shows the bid of Master Construction Company, Inc. of Fargo, North Dakota, in the sum of $2,189,562.90 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 $2,189,562.90 is the lowest and best bid received.
BE IT FURTHER RESOLVED, That the contract for Water Main Replacement, Force Main Construction, Street Reconstruction and Incidentals Improvement District No. BR-17-C1 in the City of Fargo, North Dakota, be and the same is hereby awarded to Master Construction Company, Inc. for the sum of $2,189,562.90, 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.

No Protests Received for Water Main Replacement, Street Reconstruction and Incidentals Improvement District No. BR-17-J1:
The Statutory Resolution of Necessity for the construction of Water Main Replacement, Street Reconstruction and Incidentals Improvement District No.
BR-17-J1 in the City of Fargo, North Dakota, was duly published in the official newspaper for the City of Fargo, North Dakota on April 17 and 24, 2017 and no protests have been filed in the office of the City Auditor within the legal protest period.
Commissioner Grindberg moved that the Board declare that no protests have been filed to the construction of Water Main Replacement, Street Reconstruction and Incidentals Improvement District No. BR-17-J1.

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.

Bids Received for Water Main Replacement, Street Reconstruction and Incidentals Improvement District No. BR-17-J1:
The bids for Water Main Replacement, Street Reconstruction and Incidentals Improvement District No. BR-17-J1 in the City of Fargo, North Dakota were opened at 11:30 o'clock a.m., May 17, 2017 and the bids were found to be as follows:

Tom’s Backhoe Service, Inc. Brainerd, MN
Bid: $854,133.10

Shermans, LLC West Fargo, ND
Bid: $858,169.35

Master Construction Company, Inc. Fargo, ND
Bid: $916,106.00

Northern Improvement Company Fargo, ND
Bid: $926,171.00

George E. Haggart, Inc. Fargo, ND
Bid: $1,016,710.00

KPH, Inc. Kindred, ND
Bid: $1,027,201.55

Dakota Underground Company Fargo, ND
Bid: $1,208,945.50

Contract for Water Main Replacement, Street Reconstruction and Incidentals Improvement District No. BR-17-J1 Awarded to Tom’s Backhoe Service, Inc. in the Amount of $854,133.10:
Commissioner Grindberg offered the following Resolution and moved its adoption:
WHEREAS, The City Engineer has prepared and filed a detailed statement of the estimated costs of Water Main Replacement, Street Reconstruction and Incidentals Improvement District No. BR-17-J1; and
WHEREAS, The Board of City Commissioners of the City of Fargo has considered the bids received May 17, 2017 for Water Main Replacement, Street Reconstruction and Incidentals Improvements Improvement District No. BR-17-J1 in the City of Fargo, North Dakota; and
WHEREAS, The City Engineer's tabulation of the bids received for Water Main Replacement, Street Reconstruction and Incidentals Improvement District No.
BR-17-J1 shows the bid of Tom’s Backhoe Service, Inc. of Brainerd, Minnesota, in the sum of $854,133.10 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 Tom’s Backhoe Service, Inc. in the sum of $854,133.10 is the lowest and best bid received.
BE IT FURTHER RESOLVED, That the contract for Water Main Replacement, Street Reconstruction and Incidentals Improvement District No. BR-17-J1 in the City of Fargo, North Dakota, be and the same is hereby awarded to Tom’s Backhoe Service, Inc. for the sum of $854,133.10, 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.

No Protests Received for Asphalt Wear Course and Incidentals Improvement District No. PN-17-A1:
The Statutory Resolution of Necessity for the construction of Asphalt Wear Course and Incidentals Improvement District No. PN-17-A1 in the City of Fargo, North Dakota, was duly published in the official newspaper for the City of Fargo, North Dakota on April 17 and 24, 2017 and no protests have been filed in the office of the City Auditor within the legal protest period.
Commissioner Grindberg moved that the Board declare that no protests have been filed to the construction of Asphalt Wear Course and Incidentals Improvement District No. PN-17-A1.

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.

Bids Received for Asphalt Wear Course and Incidentals Improvement District No. PN-17-A1:
The bids for Asphalt Wear Course and Incidentals Improvement District No.
PN-17-A1 in the City of Fargo, North Dakota were opened at 11:30 o'clock a.m., May 17, 2017 and the bids were found to be as follows:

FM Asphalt LLC Moorhead, MN
Bid: $1,008,609.40

Northern Improvement Company Fargo, ND
Bid: $1,087,581.50

Border States Paving, Inc. Fargo, ND
Bid: $1,138,196.20

Central Specialties, Inc. Alexandria, MN
Bid: $1,215,112.67

Contract for Asphalt Wear Course and Incidentals Improvement District No. PN-17-A1 Awarded to FM Asphalt LLC in the Amount of $1,008,609.40:
Commissioner Grindberg offered the following Resolution and moved its adoption:
WHEREAS, The City Engineer has prepared and filed a detailed statement of the estimated costs of Asphalt Wear Course and Incidentals Improvement District
No. PN-17-A1; and
WHEREAS, The Board of City Commissioners of the City of Fargo has considered the bids received May 17, 2017 for Asphalt Wear Course and Incidentals Improvements Improvement District No. PN-17-A1 in the City of Fargo, North Dakota; and
WHEREAS, The City Engineer's tabulation of the bids received for Asphalt Wear Course and Incidentals Improvement District No. PN-17-A1 shows the bid of FM Asphalt LLC of Moorhead, Minnesota, in the sum of $1,008,609.40 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 FM Asphalt LLC in the sum of $1,008,609.40 is the lowest and best bid received.
BE IT FURTHER RESOLVED, That the contract for Asphalt Wear Course and Incidentals Improvement District No. PN-17-A1 in the City of Fargo, North Dakota, be and the same is hereby awarded to FM Asphalt LLC for the sum of $1,008,609.40, 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.

P.C. Concrete Alley Paving and Incidentals Improvement District No. AN-17-A (15th to 17th Avenue North Between 2nd and 3rd Street):
Commissioner Grindberg moved the following action be taken in connection with P.C. Concrete Alley Paving and Incidentals Improvement District No. AN-17-A:

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

From 15th to 17th Avenue North between 2nd and 3rd Street North.

COMPRISING:
Lots 1 through 13, Block 4.
All in Hogans Addition.

Lots 1 through 20 and 22, Block 1.
All in Replat of McDermott Sub Addition.

Lots 361 through 380.
All in North Broadway Addition.

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

NOW, THEREFORE, BE IT RESOLVED, That P.C. Concrete Alley Paving and Incidentals Improvement District No. AN-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. AN-17-A:
Direct City Engineer to report as to the general nature, purpose and feasibility relative to the construction of Improvement District No. AN-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 $387,673.60.)

Order Plans and Specifications for Improvement District No. AN-17-A:
Direct City Engineer to prepare Plans and Specifications for the construction of Improvement District No. AN-17-A in the City of Fargo, North Dakota.
Adopt Resolution Approving Plans and Specifications and Engineer's Report for Improvement District No. AN-17-A:
WHEREAS, The Board of City Commissioners of the City of Fargo, North Dakota, has created Improvement District No. AN-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. AN-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 P.C. Concrete Alley Paving 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 P.C. Concrete Alley Paving and Incidentals Improvement District No. AN-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 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 P.C. Concrete Alley Paving 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. AN-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. AN-17-A in the City of Fargo, North Dakota.

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.

Water Main Replacement, Street Reconstruction and Incidentals Improvement District No. BR-17-G (7th Street South between 1st Avenue and 5th Avenue South):
Commissioner Grindberg moved the following action be taken in connection with Water Main Replacement, Street Reconstruction and Incidentals Improvement District No. BR-17-G:

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

On 7th Street South from 1st Avenue to 5th Avenue South.

COMPRISING:
Lots 1, 2, 3, 11 and 12, Inclusive, Block 18.
Lots 1 through 11, Inclusive, Block 19.
Lots 1 through 12, Inclusive, Block 20.
Lots 1, 2, 3, 10, 11 and 12, Inclusive, Block 23.
Lots 1, 2, 3, 10, 11 and 12, inclusive, Block 34.
All in the Plat of the Original Townsite.

Lots 1, 2, 3, 10, 11 and 12, Inclusive, Block 35.
All in Northern Pacific Addition.

All of the unplatted land laying in the southeast quarter of the northwest quarter of Section 7, Township 139 North, Range 48 West.

All of the unplatted land laying in the southwest quarter of the northeast quarter of Section 7, Township 139 North, Range 48 West.

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

NOW, THEREFORE, BE IT RESOLVED, That Water Main Replacement, Street Reconstruction and Incidentals Improvement District No. BR-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. BR-17-G:
Direct City Engineer to report as to the general nature, purpose and feasibility relative to the construction of Improvement District No. BR-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 $1,393,806.00.)

Order Plans and Specifications for Improvement District No. BR-17-G:
Direct City Engineer to prepare Plans and Specifications for the construction of Improvement District No. BR-17-G in the City of Fargo, North Dakota.
Adopt Resolution Approving Plans and Specifications and Engineer's Report for Improvement District No. BR-17-G:
WHEREAS, The Board of City Commissioners of the City of Fargo, North Dakota, has created Improvement District No. BR-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. BR-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 Water Main Replacement, 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 Water Main Replacement, Street Reconstruction and Incidentals Improvement District No. BR-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 a portion of said Water Main Replacement, Street Reconstruction and Incidentals improvement is to be paid from Infrastructure Sales Tax and approximately 53% 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 Water Main Replacement, 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-G:
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-G in the City of Fargo, North Dakota.

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.

Traffic Signal Improvements and Incidentals Improvement District No. TN-16-F (52nd Avenue South/Timber Parkway/31st Street South):
Commissioner Grindberg moved the following action be taken in connection with Traffic Signal Improvements and Incidentals Improvement District No. TN-16-F:

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

The Intersection of 52nd Avenue and 31st Street South.

COMPRISING:
Lots 1 through 15, Block 1.
Lots 1 through 26, Block 2.
Lots 1 through 27, Block 3.
Lots 1 through 29, Block 4.
Lots 1 through 28, Block 5.
Lots 1 through 15, Block 6.
All in Fox Run Addition.

Lots 1 through 13, Block 1.
Lots 1 through 28, Block 2.
Lots 1 through 13, Block 3.
All in Fox Run 2nd Addition.

Lots 1 through 12, Block 1.
Lots 1 through 26, Block 2.
Lots 1 through 27, Block 3.
Lots 1 through 15, Block 4.
All in Fox Run 3rd Addition.

Lots 23 through 71, Block 1.
Lots 1 through 10, Block 2.
Lots 1 through 22, Block 3.
Lots 1 through 19, Block 4.
Lots 1 through 40, Block 5.
Lots 1 through 36, Block 6.
Lots 1 through 3, Block 7.
Lots 2 through 47, Block 8.
Lots 1 through 7, Block 9.
All in Maple Valley Addition.

Lots 1 through 41, Block 1.
Lots 1 through 24, Block 2.
All in Maple Valley 2nd Addition.

Lot 19, Block 1.
All in Meadow Creek 2nd Addition.

Lots 1 through 26, Block 1.
All in The Aspens 1st Addition.

Lots 1 through 15, Block 1.
Lot 29, Block 1.
Lots 30 and 31, Block 2.
Lots 1 through 22, Block 3.
Lots 1 through 21, Block 5.
All in Timber Creek Addition.

Lots 1 through 9, Block 1.
All in Timber Creek 2nd Addition.

Lots 1 through 14, Block 1.
Lots 1 through 29, Block 2.
All in Timber Creek 3rd Addition.

Lots 1 through 3, Block 1.
All in Timber Creek 4th Addition.

Lots 3 and 4, Block 1.
All in Timber Creek 5th Addition.

Lots 1 through 3, Block 1.
All in Timber Creek 6th Addition.

Lots 1 through 6, Block 1.
Lots 1 through 8, Block 2.
Lots 1 through 60, Block 3.
Lots 1 through 20, Block 4.
All in Timberline Addition.

Lots 1 through 7, Block 1.
All in Timber Parkway 1st Addition.

Lots 1 through 37, Block 1.
Lots 1 through 11, Block 2.
Lots 1 through 4, Block 3.
Lots 1 through 10, Block 4.
Lot 1, Block 5.
Lots 1 through 15, Block 6.
Lot 1, Block 7.
All in Prairie Farms Addition.

Lots 1 and 2, Block 1.
All in Prairie Farms Commercial Addition.

Lot 1, Block 1.
All in Stonehurst Addition.

Lots 1 through 10, Block 1.
Lots 1 through 6, Block 2.
All in Woodhurst Addition.

All of the unplatted land in NE 1/4 of Section 2, Township 138 North, Range 49 West.

All of the unplatted land in Tract of land in the SE 1/4 of Section 35, Township 139, Range 49 West.

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

NOW, THEREFORE, BE IT RESOLVED, That Traffic Signal Improvements and Incidentals Improvement District No. TN-16-F 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. TN-16-F:
Direct City Engineer to report as to the general nature, purpose and feasibility relative to the construction of Improvement District No. TN-16-F 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 $520,426.09.)

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

Adopt Resolution Approving Plans and Specifications and Engineer's Report for Improvement District No. TN-16-F:
WHEREAS, The Board of City Commissioners of the City of Fargo, North Dakota, has created Improvement District No. TN-16-F 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. TN-16-F 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 Traffic Signal Improvements 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 Traffic Signal Improvements and Incidentals Improvement District No. TN-16-F 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 Traffic Signal Improvements and Incidentals improvement is to be paid from Sales Tax and approximately 92% 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 Traffic Signal Improvements 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. TN-16-F:
Direct City Auditor's Office to publish a Notice, as required by law, calling for bids for the construction of Improvement District No. TN-16-F in the City of Fargo, North Dakota.

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.

Contract for Sanitary Sewer, Water Main, Storm Sewer, Paving, Street Lights and Incidentals Improvement District No. BN-17-F1 Approved:
Commissioner Grindberg moved approval of the Contract between the City of Fargo and Shermans, LLC for Sanitary Sewer, Water Main, Storm Sewer, Paving, Street Lights and Incidentals Improvement District No. BN-17-F1 in the City of Fargo, North Dakota.
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.

Contract Bond for Sanitary Sewer, Water Main, Storm Sewer, Paving, Street Lights and Incidentals Improvement District No. BN-17-F1 Approved:
Commissioner Grindberg moved approval of the following described Contract Bond as to sufficiency:
Western Surety Company, in the amount of $434,381.40, for Sanitary Sewer, Water Main, Storm Sewer, Paving, Street Lights and Incidentals Improvement District No. BN-17-F1 in the City of Fargo, North Dakota.

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.

Update on the Downtown Master Plan:
Scott Page of Interface Studio updated the Board on work being done for the Downtown Master Plan. He gave an overview of the presentation scheduled for May 23rd at the Fargo Theatre when the public will be asked to weigh in to rank priorities and recommendations and to provide feedback on the plan. He said any plan would need to be flexible and there is a need to grow Downtown as a neighborhood, a destination and a job center. He said Downtown has opportunities for significant investments over time and while Downtown has seen lots of investment, that is actually small compared to the rest of the City. Some issues noted center around best practices, parking, regional flooding, underground infrastructure, designing streets and open spaces, potential financing and how to make the plan actionable. He encouraged attendance at the presentation as there will be more detail and when the public will be asked to choose between strategies.

Update on City of Fargo Customer Experience Initiative:
Assistant City Administrator Michael Redlinger gave a brief status report on the 2017 Customer Experience Initiative that got off the ground earlier this spring with the Flint Group. He said feedback is being gathered and summarized from over 175 hours of interviews. The Homebuilders Association is distributing a broader online instrument to their membership, he said, which will result in good information. This all will be distilled into an action plan and used as a springboard for future training opportunities with the NDSCS TrainND program, he said. A report will be brought back to the Board, possibly in late June or early July, he stated.

Application Filed by A2B, LLC d/b/a A2B Taxi for a Taxicab License Approved:
A Hearing had been set for this day and hour on an application filed by A2B, LLC d/b/a A2B Taxi for a Taxicab License, notice of which had been duly published in the official newspaper for the City of Fargo.
No written protest or objection to the granting of the application has been received or filed in the office of the City Auditor, and said application has been approved by the Police Department as to the character of the applicant.
The Board determined that no person is present at this Hearing to protest or offer objection to the granting of the application.

Deputy City Auditor Jill Pagel said the Auditor’s Office received an application from A2B, LLC d/b/a A2B Taxi. She said the principal applicant is Zana Rasheed and the application meets all the Ordinance requirements and the Auditor’s office is recommending approval.
Commissioner Piepkorn moved the application be approved.

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

Vote Taken at the May 8, 2017, Regular Meeting to Deny a Plat of NDSU Foundation Addition, Vacation Plat of an Alley and Replat of Lots 1-9, 11 and 14-24, Block 8 NDSU Foundation Reconsidered: Resolution Adopted Approving NDSU Foundation Addition:
City Engineer April Walker said the plat includes vacating a portion of the alley and the related development, and a maintenance agreement will be brought to the next meeting. She said the developer is required to replace and reconstruct the remaining portion of the alley with concrete to accommodate drainage, provide access for the existing house, limit time the alley is closed, take over snow removal and maintenance, edge mill and sealcoat, and pay for trees impacted.

Commissioner Grindberg said he met with Ken Enockson last week and moving forward he would like to enlist Erik Johnson to be included with him and Mr. Enockson in a small group to talk through some concerns of the Roosevelt Neighborhood Association, working together to find common ground. The City has a bright Planning staff, he said; however, as a City and as a Board, work needs to happen to be more proactive and strategic for growth.
Commissioner Grindberg offered the following Resolution and moved its adoption:
BE IT RESOLVED BY THE BOARD OF CITY COMMISSIONERS OF THE CITY OF FARGO:
WHEREAS, A Plat has been filed in the office of the City Auditor entitled “NDSU Foundation Addition” containing 21 Lots, 1 Block, and 3.5 acres of land more or less, located at the 1600 Block between 12th Street North and University Drive North; and
WHEREAS, The Plat includes the vacation of an alley and a replat of Lots 1-9, 11, and 14-24, Block 8, Chandler’s Broadway Addition to the City of Fargo, Cass County, North Dakota; and
WHEREAS, A Hearing was held March 7, 2017 by the Fargo Planning Commission, and notice of such Hearing had been published, as required by law, and said Plat had been approved by the Fargo Planning Commission and by the City Engineer; and
WHEREAS, The City Auditor's Office published a Notice of Hearing on said Plat in the official newspaper for the City of Fargo on April 7, 17, 24, and May 1, 2017 that a Hearing would be held in the City Commission Room, City Hall, Fargo, North Dakota at 5:15 p.m., May 8, 2017 at which time said Plat would be considered and all interested persons would be heard.
NOW, THEREFORE, BE IT RESOLVED, That the findings and recommendations of staff and the Planning Commission be accepted and the Plat entitled “NDSU Foundation Addition” be and the same is hereby in all things affirmed and approved on the basis that it complies with the Standards of Article 20-06, and all other applicable requirements of the Land Development Code, and that the Mayor of the City of Fargo and the appropriate City Officials are hereby directed to endorse their approval on the Plat and then direct Petitioner to file same for record in the Office of the Recorder of Cass County, North Dakota.

Application for Abatement or Refund of Taxes #4461 Made by Robert Hill Law, Ltd., representing West Acres Development, for the Best Buy Store Property at 1615 38th Street South Denied:
The Board received a communication from City Assessor Ben Hushka recommending that the application filed by Robert Hill Law, Ltd., representing West Acres Development, for the Best Buy Store property at 1615 38th Street South requesting a reduction in the valuation for 2016 from $4,303,000.00 to $3,300,000.00 be denied.

Mr. Hushka said the burden of proof lies on the applicant to provide information showing that the current valuation is invalid, inequitable, unjust or was arrived at arbitrarily, capriciously or unreasonably. He said Robert Hill Law is in the business of filing assessment abatements in the region such as the ones presented tonight. He said authorization was never received from the property owner, West Acres, or from Best Buy, the lessee, authorizing Mr. Hill to act on their behalf. The application stated an incorrect assessment amount of $4,303,000.00 and the sum for the land building value does not equal the total value stated, he said, so it is not clear exactly what they are asking for.
Commissioner Gehrig moved based upon Mr. Hushka's recommendation that application #4461 filed by Robert Hill Law, Ltd., representing West Acres Development for the Best Buy Store for abatement or refund of real estate taxes on property at 1615 38th Street South be denied.

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

Application for Abatement or Refund of Taxes #4462 Made by Robert Hill Law, Ltd., representing Store Master Funding VI, LLC, for the Gander Mountain Store Property at 2121 43rd Street South Denied:
The Board received a communication from City Assessor Ben Hushka recommending that the application filed by Robert Hill Law, Ltd., representing Store Master Funding VI, LLC, for the Gander Mountain Store property at 2121 43rd Street South requesting the valuation for 2016 be reduced from $7,364,500.00 to $5,638,050.00 be denied.

Mr. Hushka said the situation for this property is similar to the prior item. This request is for the 2016 value and Mr. Hill has not submitted any supporting documentation.
Commissioner Gehrig moved based upon Mr. Hushka's recommendation that application #4462 filed by Robert Hill Law, Ltd., representing Store Master Funding VI, LLC, for the Gander Mountain Store for abatement or refund of taxes on property at 2121 43rd Street South be denied.

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

Application for Abatement or Refund of Taxes #4463 Made by David Perkins, Agent for Sterling Properties, LLP for a Multi-Tenant Office Property at 2700 12th Avenue South Denied:
The Board received a communication from City Assessor Ben Hushka recommending that the application filed by David Perkins, Agent for Sterling Properties, LLP requesting that the valuation for 2015 be reduced from $1,381,700.00 to $1,260,000.00 on property located at 2700 12th Avenue South, a multi-tenant office property, be denied.
Commissioner Gehrig moved based upon Mr. Hushka's recommendation that application #4463 filed by David Perkins, agent for Sterling Properties, LLP for abatement or refund of taxes for 2015 real estate taxes on property located at 2700 12th Avenue South be denied.

Second by Grindberg. On call of the roll Commissioners Gehrig, Grindberg, 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:
City Administrator Bruce Grubb said the State Water Commission is requesting $1,527,676.00 for cost reimbursement for the FM Area Flood Risk Management Project for April 2017. He said the request is for expenses related to projects excluding Oxbow/Hickson/Bakke component of the project
Commissioner Strand moved the reimbursement request in the amount of $1,527,676.00 for the FM Area Flood Risk Management Project for expenses related to projects excluding Oxbow/Hickson/Bakke be approved.

Second by Grindberg. On call of the roll Commissioners Strand, Grindberg, Piepkorn, 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:
City Administrator Bruce Grubb said the State Water Commission is requesting $31,468.00 for cost reimbursement for the FM Area Flood Risk Management Project for April 2017. He said the request is for expenses related to projects in Oxbow.
Commissioner Grindberg moved the reimbursement request in the amount of $31,468.00 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 and Mahoney voted aye.
Commissioners Piepkorn and Strand voted nay.
The motion was declared carried.

Sewer Agreement with the City of West Fargo Approved:
Commissioner Tony Gehrig said draft Sewer Agreement documents have been prepared at the request of West Fargo for their consideration as an option for the handling and treatment of West Fargo wastewater. The agreement is similar to the one with Horace, he said, and also much like the water agreement with West Fargo; however, to a larger scale. This would be the largest regionalization project Fargo has endeavored to date, he said, and makes a fantastic partnership. The capacity is there to do it soon, he said, and is an easier hookup compared to the water agreement with West Fargo. There is also a benefit to the City of Fargo through revenue gains and utilization of assets to capacity, he said.

City Administrator Bruce Grubb said the City of West Fargo initially requested a proposal and draft sewer agreement in 2013. West Fargo was starting to look into options, he said, which included expanding their lagoons, building their own wastewater treatment plant or hooking onto Fargo’s wastewater treatment. He said the draft agreement has been followed up with some edits as a result of meetings with the attorneys of both cities, which he feels are acceptable. He said the Board was provided an edited version of the draft Sewer Agreement document and action could be taken on that edited version.

Mayor Mahoney said if the agreement is approved tonight, it could go back to West Fargo and if they were to sign off, it becomes a final agreement. He said it would be fine if they approve it; however, if they want more time to discuss it, that would be up to them.

City Attorney Erik Johnson said a motion to approve the agreement would be for the redline version currently in front of the Board showing the changes sent to him by the West Fargo City Attorney.

Commissioner Strand said he has not read the agreement and is uncomfortable voting on a final agreement. He said he would prefer to let it play out a bit, by taking the edited version to West Fargo leadership before putting it on this Board’s agenda. Not that he opposes it, he said; however, he is hesitant to vote on an agreement when the approvability by the other entity is not known.

Commissioner Gehrig said there is nothing in the agreement to cause concerns, nor is it different than the one with Horace; the terms are basically the same. He said the West Fargo City Commission can accept it or table it indefinitely if they want, it puts the ball in their court. He said he thinks West Fargo would like to get this done too.

Commissioner Strand moved the agreement be delayed for two weeks to allow time to have it vetted and approved by the City of West Fargo.
The motion died for lack of a second.

Commissioner Gehrig moved the redline version of the Sewer Agreement with the City of West Fargo be approved as the final Sewer Agreement.

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

City Hall Construction Update:
City Administrator Bruce Grubb said Commissioner Grindberg requested an update on the new City Hall construction project. He shared a tracking spreadsheet that is updated after each progress payment or change order and is current as of May 18th. The three prime contracts are for General Construction, Mechanical Construction and Electrical Construction, he said. Olaf Anderson has the General Construction contract; Robert Gibb and Sons has the Mechanical Construction contract and Sun Electric has the Electrical Construction contract, he stated. There have been $490,917.00 in change orders for General Construction, he said; however, nearly $400,000.00 of that was for the addition of curtain windows. Overall, he said, the General Construction contract is 2.99% over the bid; however, without the curtain window change order it would be .8% over bid. The Mechanical Construction contract has combined change orders totaling $66,092.00 so that project is 1.92% over the bid amount, he said. Finally, he said, the Electrical Construction contract has had two change orders of $15,757.00 or .60% over. He said lumping all those together, the project sits at 2.55% over the bid amount. He said he feels budget wise according to actual bids, and from a change order perspective, the project is in a good position today. A fall, 2018 completion was anticipated, he said, and now it appears it could be next spring. He shared a brief video tour of the Fargo City Hall construction.

Appropriate Staff Directed to Call for Bids for Furniture, Fixtures and Equipment for the City Hall Project:
City Administrator Bruce Grubb said TL Stroh Architects recently updated an FF&E budget. He said it came in at $1,978,665.00, somewhat more than the line item in the overall project financing. The budget is short about $200,000.00, he said, and in an attempt to preserve the remaining contingency amount to get through the construction project he suggests making up that FF&E shortfall with Fund 256 (Vector Control) which has an unallocated fund balance. He said the contingency can be utilized and if it runs short, he can come back and offer a solution, or the suggested adjustment could be made to the FF&E line item now. The estimate is full fit-up, 100% new and he feels it is conservative since it does not factor in what could be expected for reductions when it goes out for bids.

In response to a question from Commissioner Strand about whether art and artful embellishments is included, Mr. Grubb said that is yet to come.

Mayor Mahoney said there are some areas in the existing City Hall with newer furnishings that could be moved over which could result in some cost savings.

Commissioner Gehrig pointed out the original estimate for City Hall was $22 million and is now $23 million plus; FF&E was supposed to be $1.77 million and now it is $1.98 million, deconstructing Centennial Hall was $600,000.00 and is now $772,000.00, professional fees were $1.4 million and are now $1.45 million. He said these have all gone up and are over budget and at some point it will be necessary to say use the old stuff.

In response to a question from Commissioner Strand about whether there is a downside to dipping into the contingency fund, Mr. Grubb said no, it is just that it may not be sufficient to get through construction, although he feels pretty good about it at this point.

Mr. Grubb said there is a line item for FF&E in the actual General Obligation Bond sale as a placeholder, and this is an FYI for the Board that estimates look higher. The action could be to change the budget, if needed, or could be after bids are received, he said. Originally, he said, he wanted to conserve the contingency and use the funding surplus; however, the contingency is available. He said he would like authorization to move ahead with bids, although there is some work to do in figuring out what can be reasonably reused. He said the architect’s estimate of what they envision for fit-up would be the starting point; however, he feels bids may come in less than the $1.9 million estimate.
Commissioner Grindberg moved appropriate staff be directed to seek bids for Furniture, Fixtures and Equipment for the City Hall project.

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 Awards for Police Department Remodeling Project at the Border States Electric Building Approved:
City Administrator Bruce Grubb said bids for the fit-up of the new space the Police Department Field Services Division will be utilizing at the Border States Electric Building unfortunately came in higher than the original estimate of $567,000.00. He said the suggested method of financing at that time was from a portion of proceeds from a recent Harwood Township land sale. He said the bids came in at $994,800.00, and a deduct alternate that bid up less space came in $75,000.00 less than the base bid. The range of bids was interestingly very tight, he said, which generally means a good reflection of the value of the work.

Police Chief David Todd said three categories were bid and the fit-ups to the warehouse include: men’s and women’s locker rooms, briefing/training room, report writing room, offices and a small conference room and breakroom. He said about 135 people would be moved there with Administrative and Investigative divisions remaining downtown until 2019 when all would move into the Border States Electric Building.

In response to a question from Commissioner Strand as to whether the lease will reflect the investment in the property and if purchase can be finalized in advance, Mr. Grubb said there is a two-year sublease with Border States Electric, then a four-year lease with the building owner after which there will be an opportunity to purchase. He said the City will have first right to purchase and the terms will be established by certified appraisal. He said he is willing to sit down with the ownership group and look at purchase options again.

Commissioner Strand said his preference would be to get a purchase solidified upfront to have it for the long term.

Commissioner Gehrig said he voted for the project in February; however, going over the budget by nearly double is too much and he will be voting no.

Richard Moorhead, Image Group Architects and Interiors, said the increase in cost is attributed to a number of things. The initial feasibility study was prior to the actual design being prepared, he said, and not until the design was completed could all the requirements be determined. He said some things were assumed incorrectly such as the lack of capacity for the ventilation with existing equipment, so air handlers were added and ventilation had to be added to the garage area to meet code requirements. Physical spaces need to be larger for long-term uses, he said, and he recommends not accepting the deduct alternate which reduces available spaces.
Commissioner Grindberg moved the bids for the Police Department Remodeling Project at the Border States Electric Building be awarded to Meinecke-Johnson Company for General Contractor in the amount of $522,700.00; Peterson Mechanical, Inc. for Mechanical Contractor in the amount of $256,200.00; and CB & Sons Electric, Inc. for Electrical Contractor in the amount
$215,900.00.

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

Appropriate Staff Directed to Proceed with a New Tax Increment Financing Policy:
Planning Director Jim Gilmour said the Planning and Finance Departments have begun a review of Tax Increment Financing, which included review by the financial advisers. He shared an outline of the proposed process and schedule on addressing a new Tax Increment Financing Policy. He said existing policy will be a reviewed by the Finance Committee, the Tax Exempt Review Committee and Renaissance Zone Authority and also distributed to developers for comments. He said a first draft will be reviewed by committees, as well as the public. He said it would be good to have discussions with both Cass County Commission and Fargo Board of Education on the draft policy since a change in legislation now says if providing incentives to a development of greater than five years, both the county and the school district would have an opportunity to opt out of their portion of incentives, both for Tax Incentive and PILOT policies.

In response to a question from Commissioner Strand on whether there is communication far enough in advance for the Downtown Master Plan that this would fit their recommendations, Mr. Gilmour said he believes specific recommendations for the Master Plan would come before the completion of this process.

Commissioner Gehrig said he appreciates the work that has gone into this and it adds a lot of opportunity for public input.
Commissioner Grindberg moved the Planning and Development and Finance Departments be directed to proceed with the development of a new Tax Increment Financing Policy.

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

Request from Xcel Energy to Replace an Underground Line with an Overhead Line at 7th Avenue North at 10th Street North Denied:
Brad Sylliaasen, Operations Director for Xcel Energy said the request involves a small piece in a larger reliability improvement project for a system that is in the second year of a four to five-year project. Upgraded feeder lines will eventually allow Xcel to decommission a substation at 19th Avenue North and University, he said, and bring customers onto a Red River substation. A piece of underground line crosses 10th Street at 7th Avenue North, he said, and Xcel would like to move the structure about 100 feet west, construct an overhead crossing and remove the aging underground line. This is a very short 350-foot section and the only piece of underground in this overhead feeder structure. He said Xcel sees this move as the most reliable and cost effective way to do it. He said it gives the most operating functionality for Xcel and its customers long term. He said the cost is about three to four times more to put underground line in compared to overhead with costs passed on to customers as part of the rate base.

Commissioner Piepkorn said he does not support this overhead line and it is the exact opposite of the long term vision of having power lines buried. He said trees are getting butchered to accommodate wires and people are tired of seeing that. He said the easiest way to control it would be to write a plan into the franchise agreement to eventually have all power lines buried.

Commissioner Strand agreed that burying power lines seems counterintuitive.

City Engineer April Walker said denial was recommended when the request came to the Public Works Projects Evaluation Committee (PWPEC) and the motion was not changed when Xcel requested they reconsider.

In response to a question from Commissioner Grindberg as to when the Xcel Energy’s Franchise Agreement was last discussed or amended, Ms. Walker said a new Xcel Energy Franchise Agreement is due. A franchise agreement was done with Cass County Electric in the last couple years, she said and when that agreement was drawn up, it was intended to be used as a model for an agreement with Xcel as well.

Commissioner Strand said franchise agreements were discussed in a brown bag setting last fall and Cass County Electric’s agreement was approved with the understanding it would be mirrored and that a Memorandum of Understanding would be negotiated as well.

City Administrator Bruce Grubb said that meeting was held with a citizen’s group who wanted more clean energy requirements in the agreement, similar to what Minneapolis has. He said these franchise agreements define the terms by which these utilities can occupy the public right of way. In Minneapolis, he said, the clean energy requirements were accomplished by an MOU. At the time, Fargo did not commit to it; however, it was decided that when the Xcel Franchise Agreement came up, those discussions could take place, he said.

City Attorney Erik Johnson said the agreement with Xcel is very old. An Ordinance is in place that provides for the franchise fee that has been paid throughout, he said.

Division Engineer Brenda Derrig said when the Cass County Electric Franchise Agreement was done, efforts were made to have a template acceptable to both Cass County Electric and Xcel.

Mayor Mahoney said discussions with Xcel Energy on their franchise agreement may as well get started this year.

Commissioner Gehrig said reliability becomes very important when ones power is shut down, and what trees look like becomes less important. This particular scenario is for functionality and reliability and should be addressed, he said, it is not for adding new lines, it moves a line.
Commissioner Gehrig moved the request from Xcel Energy to replace an underground line with an overhead line at 7th Avenue North and 10th Street be approved.
The motion died for lack of a second.

Commissioner Piepkorn moved the request from Xcel Energy to replace an underground line with and overhead line at 7th Avenue North and 10th Street be denied.

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.

Construction Projects Update:
City Engineer April Walker shared an update of current construction projects and progress.
Commissioner Gehrig moved that the Board adjourn to 5:00 o’clock p.m., Monday, June 5, 2017.

Second by Piepkorn. All the Commissioners voted aye and the motion was declared carried.
The time at adjournment was 6:47 o’clock p.m.