Board of City Commissioners - December 3, 2018 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, December 3, 2018.
The Commissioners present or absent were as shown following:
Present: Gehrig, Grindberg, Piepkorn, Strand, Mahoney.
Absent: None.
Mayor Mahoney presiding.

Members of Boy Scout Troop 214 led the Pledge of Allegiance.

The Mayor read a message with the following information: Fargo Cass Public Health hosted a retirement celebration for Principal Office Associate Linda Anderson; the Library has added mobile hotspots to its circulating collection and there are a number of programs and events happening in the next several weeks including the “Classic Nutcracker,” FM Choral Artists, craft-making sessions, “A Christmas Carol” and the “Northern Narratives” writing project; The Police Department’s “No-Shave Movember” fundraising effort raised $9,616.15; Deb Tellingusen retired from the PD after more than 22 years as Crime Free Programs Coordinator; Downtown Resource Officer Jesseca White has been accepted into the United Way’s “35 Under 35” Women’s Leadership Program; residents are encouraged to take advantage of the free holiday lights recycling program; construction is on schedule for Block 9; the grand opening of the new City Hall will be on December 4th from 4:00 to 8:00 p.m. The Mayor announced that Public Information Coordinator Katie Glen is leaving employment at the City and he thanked her for all she has done with the move into the new City Hall.

Order of Agenda Approved:
Commissioner Grindberg moved the Order of the Agenda be approved moving Item No. “1b” from the Consent Agenda to the beginning of the Regular Agenda and Item No. “6” from the Consent Agenda to the Regular Agenda.
Second by Gehrig. All the Commissioners voted aye and the motion was declared carried.

Minutes Approved:
Commissioner Strand moved that the Minutes of the Regular Meeting of the Board held on November 19, 2018 be approved as read.
Second by Piepkorn. All the Commissioners voted aye and the motion was declared carried.

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

1. 1st reading of the following Ordinances:
a. Amending Section 10-0318 of Article 10-03 of Chapter 10 of the Fargo Municipal Code Relating to Public Safety, Morals and Welfare.
b. Amending Section 25-1506 of Article 25-15 of Chapter 25 of the Fargo Municipal Code Relating to Alcoholic Beverages (moved to the Regular Agenda).

2. 2nd reading and final adoption of the following Ordinances; 1st reading 11/19/18:
a. Amending Sections 25-3301 through 25-3307 of Article 25-33 of Chapter 25 and enacting Sections 25-3301.1 and 25-3301.2 of Article 25-33 of Chapter 25 of the Fargo Municipal Code Relating to Tattoos, Body Art and Body Piercing.
b. Amending Section 1-0305.A of Article 1-03 of Chapter 1 of the Fargo Municipal Code Relating to Classifications of Ordinance
Violations – Tattoos, Body Art and Body Piercing Violations as Class B Misdemeanors.

3. Applications for property tax exemptions for improvements made to buildings:
a. Adam L. Peterson and Rachel M. Andersen-Peterson, 1415 West Gateway Circle South, Unit 12 (3 year).
b. Paul D. and Linda S. Kegel, 910 12th Street North (5 year).
c. Steven V. and Janice M. Harter, 515 21st Avenue South (5 year).
d. Melissa A. and Heath A. Lynnes, 3686 Evergreen Road North (5 year).
e. Lowell P. Degnan, 1514 4th Avenue North (5 year).
f. Timothy B. Somes, 1309 14th Street South (5 year).
g. Eric W. and Jennifer L. Momsen, 1220 4th Street North (5 year).

4. Applications for Games of Chance:
a. El Zagal Holding Company for a raffle on 2/9/19.
b. Muskies Inc. F-M Chapter for a raffle on 2/7/19.

5. Lease Agreement with City of Fargo and Downtown Community Partnership.

6. Proposal from JLG Architects for a Fargo Performance Center Feasibility Analysis Update (moved to the Regular Agenda).

7. Findings of Fact and Order, and Notice of Entry of Order for the property at 826 10th Street North.

8. Findings of Fact and Order, and Notice of Entry of Order for the property at 1101 7th Street North.

9. Award of the 2019 Liability Insurance coverage to K&K Insurance and the 2019 Property Insurance coverage to Zurich National for the FARGODOME.

10. Agreement for Services with Whitney Oxendahl.

11. Agreement for Services with Fargo-Moorhead Metro COG.

12. Agreement between Richland County Health Department and Fargo Cass Public Health to provide nurse practitioner services.

13. Sole Source Procurement with Interstate Power System, New Flyer Industries and Cummins NP for the purchase of parts and service in 2019 for vendor specific parts and service (SSP18025, 18026 and 18041).

14. Change Order No. 4 for a 7-day time extension for Project No. FM-15-F2.

15. Negative Final Balancing Change Order No. 3 in the amount of -$23,091.45 for Project No. FP-17-A1.

16. Amendment No. 1 with Houston Engineering in the amount of $9,140.00 for Project No. SN-18-C0.

17. Purchase of Wetland Credits from Ducks Unlimited, Inc. in the amount of $50,000.00 for Project No. FM-15-K1.

18. Purchase Agreement with Ivan Lima Jr. for property located at 771 Royal Oaks Drive North (Project No. FM-19-B).

19. Purchase Agreement with Tracy Lynn Lind for property located at 701 Royal Oaks Drive North (Project No. FM-19-B).

20. Authorize the Engineering Department to advertise for proposals for a
three-year Master Services Agreement.

21. Task Order No. 2 for an increase of $267,000.00 for Project No. WA1862.

22. Bid award for chemicals at the Water Treatment Plant for 2019.

23. Bid award for chemicals at the Waste Water Treatment Plant for 2019.

24. Project submittal to Metro COG for inclusion in the City’s applications to the NDDOT for funding in 2021 and 2023.

25. Project submittal to Metro COG for inclusion in the City’s applications to the NDDOT for funding in 2020 and 2021.

26. Accept the CDBG Plan of Action and authorize the Planning Department to begin implementation, including property acquisition under the federal HUD program.

27. Bills in the amount of $10,642,378.07.

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.

Change Order No. 2 and Time Extension for Improvement District No. BR-18-G2 Approved:
Commissioner Grindberg moved Change Order No. 2 for an increase of $7,621.07 and a time extension to December 14, 2018 for Improvement District No. BR-18-G2 be approved.

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.

Negative Final Balancing Change Order No. 3 for Improvement District No. AN-17-G1 Approved:
Commissioner Grindberg moved approval of Negative Final Balancing Change Order No. 3 in the amount of -$3,675.77 for Improvement District No. AN-17-G1 be approved.

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.

Contract Amendment No. 3 for Improvement District No. MS-17-A0 Approved:
Commissioner Grindberg moved Contract Amendment No. 3 in the amount of $353,520.36 with Houston Engineering for Improvement District No. MS-17-A0 be approved.

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.

Bids Rejected for Grading, Salvaged Base, P.C. Concrete Pavement, Hot Mix Asphalt, Storm Drain, Street Lighting, Traffic Signals, Pavement Marking, Shared Use Path, Sidewalk, Bridge, Water Main and Incidentals Improvement District No. BN-19-A1: Request the NDDOT to Rebid the Project in Early 2019:
The Board received a communication from City Engineer Brenda Derrig stating the apparent low bidder was Dakota Underground Company, Inc.; however, the NDDOT rejected their bid based on analysis of their “Good Faith Effort” as part of the Disadvantaged Business Enterprise (DBE) requirements established by the NDDOT and the Federal Highway Administration for federal aid highway contracts. She said by doing so, the low bid is Strata Corporation in the amount of $20,296,948.65, an amount 36.8% over the preliminary engineer’s estimate. She said she recommends that the City of Fargo reject all bids for the project and request the NDDOT rebid the project on a new bid opening date in early 2019.

Commissioner Grindberg moved the bids for Grading, Salvaged Base, P.C. Concrete Pavement, Hot Mix Asphalt, Storm Drain, Street Lighting, Traffic Signals, Pavement Marking, Shared Use Path, Sidewalk, Bridge, Water Main and Incidentals Improvement District No. BN-19-A1 be rejected and to request the project be rebid by the NDDOT in early 2019.

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.

Memorandum of Offer to Landowner Temporary and Permanent Easement from Plecity Kowalski Construction, Inc. for Improvement District No. BN-19-A1 Approved:
The Board received a communication from Land Acquisition Specialist Shawn Bullinger requesting authorization to proceed with a Memorandum of Offer to Landowner for a Temporary and Permanent Easement from Plecity Kowalski Construction, Inc. in association with Improvement District No. BN-19-A1 as recommended by the City Engineering office. He said a final purchase price has been reached and authorization from the Board is requested to proceed with the purchase.

Commissioner Grindberg moved the Memorandum of Offer to Landowner Temporary and Permanent Easement from Plecity Kowalski Construction, Inc. in association with Improvement District No. BN-19-A1 be approved.

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.

Memorandum of Offer to Landowner for Temporary Easement (Construction) from Jale Holdings, LLC for Improvement District No. BN-19-A1 Approved:
Commissioner Grindberg moved the Memorandum of Offer to Landowner for a Temporary Easement (Construction) from Jale Holdings, LLC in association with Improvement District No. BN-19-A1 be approved.

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.

Memorandum of Offer to Landowner for Two Temporary Easements (Construction) from Amerco Real Estate Company for Improvement District No. BN-19-A1 Approved:
Commissioner Grindberg moved the Memorandum of Offer to Landowner for Two Temporary Easements (Construction) from Amerco Real Estate Company in association with Improvement District No. BN-19-A1 be approved.

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.

Waive Requirement to Receive and File Ordinance One Week Prior to 1st Reading and 1st Reading of an Ordinance Amending Sections 25-1506 of Article 25-15 of Chapter 25 of the Fargo Municipal Code Relating to Alcoholic Beverages (Moved from the Consent Agenda):
The Board received a communication from Assistant City Attorney Nancy Morris stating Fargo Municipal Code 25-1506 was enacted this summer granting the Downtown Community Partnership (DCP) an event license. She said the Ordinance contained a sunset provision set to expire on December 31, 2018. The Liquor Control Board met on November 21, 2018 to discuss the continuation of the license, she said, and approved a motion to remove the sunset provision, as well as a modification to the application timeline.

City Auditor Steve Sprague said the Ordinance allowing open carry of alcohol during DCP events expires December 31, 2018, so this is a good time to review. He said most comments received have been positive and many want it to continue. He said some feel it should be open to more than just DCP events and less restrictive. Control and access are important, he said, and the DCP has incurred costs, including additional security and the cost of cups and wristbands, etc.

DCP President and CEO Melissa Rademacher shared details of the four events where open carry was allowed; the Street Fair, two Corks and Canvas events and the Holiday Winterfest held in conjunction with the Holiday Lights Parade. She reviewed open applications, the ID requirements, control and access, certified pourers, signage and open container routes.

Fargo Police Lieutenant Chris Helmick reviewed an analysis done at the request of the Liquor Control Board on impacts to the Police services Downtown. Calls for services and open container citations were compared to last year, he said, as well as the average summer call load Thursday through Saturday. He said it was somewhat surprising that calls for service actually went down during this year’s Street Fair. The Police Department was actively involved with the DCP in planning, he said, and the presence of their own group to monitor consumption, educate and enforce was a success. There was little impact from the Corks and Canvas events, he said, and no problems with the Holiday Winterfest event as far as consuming in public.

Commissioner Gehrig said he supports the idea and it is great for Downtown; however, he feels it would also be great for other areas in Fargo and he would like to see it to be more expansive.

Commissioner Piepkorn said to have a responsible party like the DCP is critical and he has concerns that if it grows and gets out of control, it could ruin it for everybody.

Commissioner Piepkorn moved the requirement relating to receipt of the Ordinance by the Commission one week prior to first reading be waived and that the Ordinance Amending Sections 25-1506 of Article 25-15 of Chapter 25 of the Fargo Municipal Code Relating to Alcoholic Beverages be placed on first reading.

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.

State Water Commission Request for Reimbursement for FM Diversion Project Costs Approved:
The Board received a communication from Finance Director Kent Costin stating the State Water Commission is requesting $244,521.99 for cost reimbursement for the FM Area Flood Risk Management Project for October 2018. He said the request is for expenses related to projects in the Oxbow/Hickson/Bakke component of the project.

Commissioner Grindberg moved the cost reimbursement request in the amount of $244,521.99 for the FM Diversion Flood Project for expenses related to projects in the Oxbow/Hickson/Bakke component of the project 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.

State Water Commission Request for Reimbursement for FM Diversion Project Costs Approved:
The Board received a communication from Finance Director Kent Costin stating the State Water Commission is requesting $11,892.35 for cost reimbursement for the FM Area Flood Risk Management Project for October 2018. He said the request is for expenses excluding the Oxbow/Hickson/Bakke component of the project.

Commissioner Grindberg moved the cost reimbursement request in the amount of $11,892.35 for the FM Diversion Flood Project for expenses related to projects excluding the Oxbow/Hickson/Bakke component of the project 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.

Request for the Establishment of the Jefferson Neighborhood Historic Overlay Zoning District on all of Eddy Place Addition (Blocks 10-16 and 24-43, Eddy & Fullers Auditors Lots; Blocks 1, 6 and 7, Case, Peake & Hall Addition; and Blocks 1, 6 and 7 Fullers Addition Approved (North of 6th Avenue South, South of 1st Avenue South, West of University Drive South and East of 15th Street South):
A Hearing had been held by the Fargo Planning Commission on November 6, 2018 for the purpose of considering a Request for the Establishment of the Jefferson Neighborhood Historic Overlay Zoning District on all of Eddy Place Addition; Blocks 10-16 and 24-43, Eddy & Fullers Auditors Lots; Blocks 1,6 and 7, Case, Peake & Hall Addition; and Blocks 1,6 and 7 Fullers Addition; and the Fargo Planning Commission at such Hearing accepted the findings and recommendations of the Historic Preservation Commission and staff and recommend to the Board of City Commissioners that the request be approved.

The City Auditor's Office published a Notice of Hearing stating this is the time and date set for said Hearing at which time all interested persons could appear and would be heard.

Assistant Planning Director Mark Williams said the Planning Department has been working on the Jefferson Neighborhood Historic Overlay for a while. He said the neighborhood collected data on the properties and some Federal funds have become available through the State Historical Society, which allowed the opportunity to hire a consultant. Through the bidding and approval process, SRF Consulting Group was hired as the consultant, he said.

SRF Associate Planner Tim Magnusson said the Jefferson Neighborhood is about one square mile and the overlay district is about a nine and a half square block area or 232 parcels surrounding Bethany on University. A reason for historical overlays is to try to keep the character of the structures, he said, and of the 232 parcels, 85 percent were constructed prior to 1940 and more than half before 1920. An overlay district gives the Planning Department an extra regulation to keep the architectural and historic characteristics of the properties, protects property values and contributes to the overall quality of life of a neighborhood and economic vitality. He said special development standards apply to existing properties, primary structures, accessory structures and demolitions. It applies to exterior work on the properties, he said, anything that can be seen from the street and does not apply to the interior. If a permit is needed to do something on the exterior of a house, he said, it requires the Historic Preservation Commission (HPC) to review and issue a Certificate of Appropriateness before a permit is issued. He said if possible, the HPC would like to see materials utilized as close as possible to the existing; however, there are ways alternative materials may be used to achieve the same affect. A presentation of the draft of the standards was taken to those parties in the proposed area with a good response, he said, and there was approval from the HPC and the Planning Commission.

In response to a question from Commissioner Gehrig about whether this may make fixing up an entry level home more difficult, expensive or not even possible, Mr. Magnusson said, while that may be a legitimate concern, the Ordinance has the opportunity to apply for a variance.

Commissioner Gehrig said these overlays have good intent and he understands why they have support; however, this sounds like it makes it more difficult to get into an entry level home, improve the home, sell it and move into a longer-term property.

Marcel Baumgartner, 1436 5th Avenue South, said she has concerns that this may deter people from upgrading and replacing things that need to be replaced and houses could deteriorate over time.

Dawn Morgan, President of the Jefferson Neighborhood Association and President of the Fargo Neighborhood Coalition, said she has been involved with historic preservation work for years with the Fargo Heritage Society, as well as owning a home built in 1891. She said overlay guidelines are generic and the same have been used in all the historic districts in Fargo. The HPC is there to make recommendations on what the standards would be at the optimal condition and allow for variances, she said. In this case, she said, the area was kept small and it has many different style houses.

In response to a question from Commissioner Strand asking if, when it comes right down to it, any of these laws have any teeth or is it rather really the spirit of intention, Ms. Baumgartner said she understood a request could be denied which means she would not be able to make an adjustment to her own home.

Ms. Morgan said the HPC is primarily there for educational purposes and while it would be ideal if it did have some teeth, it does not. She said if there are federal dollars involved such as a historic building Downtown, regulations can be enforced; however, not in residential neighborhoods.

Commissioner Strand said he is disappointed that the State has gutted the laws that protect historic buildings. Doing more on a local level to elevate that standard adds value, he said, and to lose history is not a better alternative.

Mr. Williams said the teeth in this Ordinance is that if there is not a Certificate of Appropriateness given, the applicant could not get a building permit.

Commissioner Grindberg offered the following Resolution and moved its adoption:
WHEREAS, All legal requirements in connection with the above-described request for establishment of a Historic Overlay Zoning District have been complied with;
WHEREAS, The Fargo Planning Commission approved the request on November 6, 2018 and
WHEREAS, There have been no written or verbal protests to the petition for establishment of a Historic Overlay Zoning District and no one is present to protest thereto.
NOW, THEREFORE, BE IT RESOLVED, That the petition for establishment of a Historic Overlay Zoning District of the above-described property in Jefferson Neighborhood Historic Overlay Zoning District be and the same is hereby approved; and that the City Attorney be directed to prepare a zoning Ordinance to be placed on first reading at the next Regular Meeting of the Board.

Second by Strand. On the vote being taken on the question of the adoption of the Resolution Commissioners Grindberg, Strand, Piepkorn and Mahoney voted aye.
Commissioner Gehrig voted nay.
The Resolution was adopted.

First Reading of an Ordinance Rezoning Certain Parcels of Land Lying in Eddy Place Addition, Eddy and Fullers Auditors Lots, Case, Peake and Hall Addition and Fullers Addition to the City of Fargo, Cass County, North Dakota:
Commissioner Grindberg moved the requirement relating to receipt of the Ordinance by the Commission one week prior to first reading be waived and that the Ordinance Rezoning Certain Parcels of Land Lying in Eddy Place Addition, Eddy and Fullers Auditors Lots, Case, Peake and Hall Addition and Fullers Addition to the City of Fargo, Cass County, North Dakota be placed on first reading.

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

Parcels of Land in West Acres 4th Addition Rezoned (1702 40th Street South and 3926 17th Avenue South):
At a Hearing held on November 6, 2018 the Fargo Planning Commission recommended approval of a change in zoning from MR-3, Multi-Dwelling to
GC, General Commercial.

The City Auditor's Office published a Notice of Hearing stating this is the time and date set for said Hearing at which time all interested persons could appear and would be heard.

Current Planning Coordinator Donald Kress said the 2.70-acre property is composed of two lots and the applicant is rezoning to provide new commercial development. He said the applicant is also in the process of replatting the two lots which run north/south to have them run east/west.

Commissioner Grindberg offered the following Resolution and moved its adoption:
WHEREAS, All legal requirements in connection with the above-described request for rezoning have been complied with; and
WHEREAS, There have been no written or verbal protests to the request for rezoning and no one is present to protest thereto.
NOW, THEREFORE, BE IT RESOLVED, That the findings of staff be accepted and the rezoning be approved on the basis that the proposal satisfactorily complies with the Comprehensive Plan, Standards of Section 20-0906.F (1-4) and all other applicable requirements of the LDC.

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.

First Reading of an Ordinance Rezoning Certain Parcels of Land Lying in West Acres Fourth Addition to the City of Fargo, Cass County, North Dakota:
Commissioner Grindberg moved the requirement relating to receipt of the Ordinance by the Commission, one week prior to first reading be waived and that the Ordinance Rezoning Certain Parcels of Land Lying in West Acres Fourth Addition to the City of Fargo, Cass County, North Dakota, be placed on first reading.

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.

Application Filed by Golf Addiction ND LLC d/b/a Golf Addiction for an Alcoholic Beverage License Approved:
A Hearing had been set for this day and hour on the application filed by Golf Addiction ND LLC d/b/a Golf Addiction for a Class "FA-Entertainment" Alcoholic Beverage License at 4474 23rd Avenue South, 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.

City Auditor Steve Sprague said Golf Addiction has been operating at its current location under an “I-Entertainment” license for the past five years with no issues. The “FA-Entertainment” license is an upgrade so the business can offer a larger variety of “on-sale” alcoholic beverages. He said there were some concerns about plans to add a different type event, axe throwing; however, the Police Department determined safety features are in place for such an activity.

Commissioner Piepkorn moved the application be approved.

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

Hearing on a Dangerous Building Located at 703 10th Avenue North Continued to January 2, 2019:
A Hearing had been set for this day and hour on a dangerous building located at 703 10th Avenue North.

Inspections Administrator Bruce Taralson said the property owners of 703 10th Avenue North have failed to comply with orders to remove the heavily damaged structure within the time allowed. He summarized the information in the packet and said he believes it has been 10 years since someone lived in this house. He said everything points to the owner using the property as storage for commercial vehicles, backhoes, trailers and commercial tanks and while the owner says he intends to fix up the house, nothing shows that. Windows required by code for light and ventilation have been removed and boarded up, he said, leaded glass windows removed, no attempt to repair holes leading to interior damage, infestation and intrusion. He said action on the substandard building started in March 2018 with a citizen complaint and exterior inspection; however, after a minor attempt at some exterior compliance the property went back into noncompliance. An interior inspection was requested, he said, and the owner would not allow inspectors in, making a search warrant necessary. When inspectors saw the condition of the inside of the building, the path was changed to a dangerous building action, he said, and notices have been sent to both owners. A meeting with the owners in an attempt for a resolution was not successful, he said, and he asks that the Board allow Inspections to act on this property.

Contract for Deed Owner Terry Tegtmeier said this home is nearly 100 years old and he would like to preserve it. He said he feels the observations of the inspectors are off base and repairs have not been done inside because the timing was not right until this year, as he runs a construction company and was waiting for a window to open up. He said Mr. Taralson basically denied him a permit by asking for inspections from structural engineers, electrical engineers, etc. for certifications when he was only seeking a remodel type permit for rewiring and plumbing. He said this house fits the neighborhood and he would like to apply for loans specifically for rehab projects.

In response to a question from Commissioner Grindberg regarding why no agreement or compromise could be reached with the Inspections Department, Mr. Tegtmeier said it has not been possible to get a building permit with the obstacles put in his way. He said as soon as a permit could be obtained, rehab work could begin.

Mayor Mahoney said the City Commission has a campaign to get rid of houses not taken care of and the Inspections Department has been instructed to address houses in neglect.

Commissioner Piepkorn said the pictures show that the house looks destroyed, there is nothing left to preserve. He said pictures speak a thousand words; the floors are ruined and the ceiling dropped.

Mr. Taralson said the dangerous building Ordinance gives an opportunity for a house to go back to full compliance. The owners were told an engineer or licensed contractor must look at the property and say what needs to happen to get it up to code; electrical, building, mechanical and plumbing. A structural analysis is important to determine if a house can be repaired, he said, and while Mr. Tegtmeier wanted to do his own, it is necessary to have an independent third party.

Mayor Mahoney said if Mr. Tegtmeier is not willing to have someone else give an opinion, the building will be condemned; however, if he is willing to go along with the Inspections Department, he could be allowed some time to work it out.

Commissioner Gehrig said if he can do it in a short timeframe, he is willing to give the owner a chance.

City Attorney Erik Johnson said if the suggested motion is approved, there is no longer an opportunity to rebuild. He said City Commission action could be continued to a later date and at that time, the suggested motion could be considered.

In response to a question from Commissioner Strand about whether he has financing in place, Mr. Tegtmeier said the rehab will cost close to $100,000.00. He said he intends to put in an application with the Roosevelt Association and that along with his own financing, he does not feel it will be a problem. He said financing is not in place due to not being able to get permits. He said there was a notice to do some repairs last fall, which he did, then he was surprised two months later when the house was placarded as dangerous.

In response to a question from Commissioner Strand asking whether he could come back in two weeks with financing in place, Mr. Tegtmeier said it usually takes a good 30 days to get financing in place.

Commissioner Grindberg said he would like to see that the property owner has a substantial plan in place with a structural engineer’s report at the first City Commission meeting in January. He said he must work with the City to identify the steps required to save this house and beyond the first meeting in January, if it is not in a format that Mr. Taralson and his team represents to the Commission, then he will not support it. He said he sees the next step as engineering and structural.

Commissioner Strand said if the owner does not show the capability to do this project, it will not go far with this Board in light of the history in front of them. He said if he shows that he can finance it, get it done, make it habitable, make it an urgent priority and that it will unfold in an extremely timely fashion, then it is possible to get on the same page.

Philip Grotenhuis said he purchased the house in the early 1990s and sold it to Mr. Tegtmeier in about 2000 and during that time all the paperwork from Inspections went to Mr. Tegtmeier and last year he started to get it and later he got a bill for an inspection. He said he does not have possession of the property, he acts like a banker since it is a Contract for Deed and he does not understand why he is getting bills and notices. He said part of the confusion is that sometimes he gets notices and sometimes Mr. Tegtmeier gets them.

Mr. Johnson said the title is in the name of Mr. and Mrs. Grotenhuis as a Living Trust, subject to a recorded Contract for Deed in favor of Mr. Tegtmeier, so under the International Building Code the owner would be both of them, having an ownership interest. He said in dangerous building matters, if there was a bank out there that also had a mortgage the idea would be to notify them of the dangerous building proceeding as well. He said the issue is whether the building should be destroyed or not, and obviously these two individuals have an interest.

Commissioner Grindberg moved the Hearing be continued to 5:15 o’clock p.m. on Wednesday, January 2, 2019.

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.

Resolution Authorizing the Issuance of $15,000,000.00 Refunding Improvement Bond, Series 2018F: Resolution Creating the Funds of Improvement Districts, Providing for and Appropriating Special Assessments for the Support and Maintenance of Said Funds, and Authorizing the Issuance of Improvement Warrants Thereon:
Finance Director Kent Costin said this new loan program through the Bank of North Dakota was created during past legislative action and offers the ability to utilize a low interest loan program. He said the loan program offers financing at two percent for terms up to 30 years for infrastructure financing. At the staff level this past year, bonds were issued; however, a sizable amount of projects were pulled off and not bonded at the time, due to dialogue happening over special assessments. Obviously there is a need to fuel the treasury and close on this transaction, he said, and he would like to do so by the end of the year. He said of the 24 projects listed there are five or six that assessments have been levied and the rest will be making their way through the process likely the first quarter of next year. Warrant language in the agreement on the rate for assessments was written to not exceed 1.5%, which is the state law provision, he said, due to some uncertainty about what the markup will be based on the final decision of the Board. He said those levied have been levied at one percent over because the assessments are not yet completed. He said this is an excellent deal.

Commissioner Piepkorn moved the Resolution Authorizing the Issuance of $15,000,00.00 Refunding Improvement Bond, Series 2018F and Resolution Creating the Funds of Improvement Districts, Providing for and Appropriating Special Assessments for the Support and Maintenance of Said Funds, and Authorizing the Issuance of Improvement Warrants Thereon and referred to as “Attachment A” and “B” be adopted and attached hereto.

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

Chelsey Linn Matter Reappointed to the Board of Health:
The Board received a communication from Mayor Mahoney recommending that Chelsey Linn Matter be reappointed to the Board of Health.

Commissioner Strand moved Chelsey Linn Matter be reappointed to the Board of Health for a three-year term ending December 31, 2021.

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

Contract with John M. Olson to Provide Government Relations and Legislative Advocacy Services to the City for the 2019 Legislative Session Approved:
The Board received a communication from Assistant City Administrator Michael Redlinger stating that a Request for Proposals (RFP) was approved at the October 22, 2018 City Commission meeting for Government Relations and Legislative Advocacy Services and from that RFP, three responsive proposals were received. Telephone interviews were conducted, he said, and after the interview process, the unanimous recommendation of the screening committee was to select John M. Olson to continue as the City’s Government Relations and Legislative Advocacy service provider for the 2019 Legislative session.

Commissioner Piepkorn moved the contract with John M. Olson to provide Government Relations and Legislative Advocacy Services to the City during the 2019 Legislative session for a fee of $35,000.00 be approved.

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

Agreement to Purchase, Lease Back and Easement with Preference Employment Solutions, Inc. Approved:
Director of Strategic Planning and Research Jim Gilmour said this purchase would be in case it is necessary to build 26th Avenue west of 42nd Street South and allows some access control to Preference Personnel. The original plan was to have a driveway close to 42nd Street where there was not much stacking room, he said, and because it was a private street, it was not covered by the Land Development Code. He said a 40-foot strip of land will be purchased from Preference Employment Solutions and would be leased back. He said that way the City does not have to be responsible for maintenance. The recommendation of the Finance Committee, he said, is to approve the purchase for $69,707.50 using funds from a Tax Increment Financing District that is already in place.

Commissioner Piepkorn moved the Agreement to Purchase, Lease Back, Easement of Land with Preference Employment Solutions, Inc. be approved.

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 approved.

At 6:25 p.m. the Board took a five-minute recess.
After recess: All Commissioners present. Mayor Mahoney presiding.

Presentation of the Updated 2019 Capital Improvement Plan:
The Board received a Report of Action from the Public Works Projects Evaluation Committee (PWPEC) stating they reviewed a report of projects to be included in the 2019 Capital Improvement Plan (CIP). They said the 2019 CIP is $61,814,412.00, with funding coming from outside sources totaling $21,892,264.00, $14,705,500.00 from the flood sales tax, $30,034,777.00 from special assessments and City funds will provide $20,511,316.00.

City Engineer Brenda Derrig said each year the Engineering Department creates and manages a CIP for the construction, preservation and reconstruction of the City’s infrastructure. She said what is presented now is the updated 2019 CIP and that since the November 5, 2018 City Commission meeting, Federal Aid Projects were updated to the bid prices and new engineer estimates and Storm Sewer Utility Projects were reduced. She said when looking at what the Engineering Department is regulating as far as maintenance of roadways, sidewalks, traffic and storm sewer, the costs are being brought down to the actual maintenance and maintaining of the infrastructure.

Construction Services Division Engineer Tom Knakmuhs updated the Board with information on the factors for decision making when doing pavement and selecting projects going forward. He said some factors are the pavement condition index, water main break history, street light and traffic signal needs, flood control needs and coordination with the Public Works and Planning Departments. He detailed the importance of pavement preservation projects.

Ms. Derrig reviewed Federal Aid Projects, which typically come out of the Long Range Transportation Plan completed every five years by Metro COG. She said the Federal Aid Projects are the starting point and the CIP is built around that. She reviewed the different buckets that can be looked at for funding requests. She explained arterial roadway projects get designated as such by the City and Metro COG working with the NDDOT. She said there is not enough money in Federal Aid to pay for all construction and reconstruction of arterials and collectors; therefore, some are paid with assessments and sales tax money. Flood protection projects from the approved 2016 Revised Comprehensive Protection Plan necessary for the proposed in-town 100-year flood with the FM Diversion in place are paid then by Flood Sales Tax, she said. Those projects for 2019, she said, are about $19.5 million. She said storm sewer utility projects are at nearly $2 million this year and traffic and street light projects are about $5.5 million. New development projects are developer driven, she said, and sidewalk projects are mostly based off complaints. Some miscellaneous projects are planned at about $4 million, she said, including tree planting, water service lowering, sanitary sewer lining/manhole rehab, 19th Avenue water main loop, Public Information Services and participation in 40th Avenue bridge maintenance.

In response to a question from Commissioner Piepkorn regarding changes coming after the next census, Ms. Derrig said there will be a point with increased population that funds would be distributed locally at the MetroCOG level rather than the NDDOT distributing funds.
Commissioner Grindberg said the presentation really puts a perspective into the analysis and detail that goes into the planning.

In response to a question from Commissioner Strand about whether there are revisions included that take into consideration the higher cost just announced for the FM Diversion Project, Division Engineer Nathan Boerboom said Engineering is still working off the 2016 Revised Comprehensive Protection Plan. He said newer plans have not been carried forward due to not knowing whether the Minnesota DNR will issue a permit. He said once a permit is obtained, those projects led by the City will be carried forward and if any can be constructed this year, they will have to be brought to the Board individually for approval.

Mayor Mahoney said the goal is to strike a balance. He said Fargo is one of the better-maintained cities in the State.

Commissioner Strand said he has concerns about delayed maintenance and costs.

Ms. Derrig said there is a reason to do projects to keep ahead. She said many cities do not have a water main replacement program; however, there is a need to continue. She said once replacement of cast iron pipes is completed, asbestos pipes will be next. Roads have been built with the best information available at the time, she said, then over the years better ways have been developed to make roads last longer.

Mr. Knakmuhs said it is important to look at the pavement condition index and the survey done every four years, which gives a very good pulse of where the City stands. He said this allows the ability to come back in two years to say what was found and how things have changed. Also important is to track water main breaks and major sewer breaks, he said, which allows the City to do rehab work before there is a failure.

Ms. Derrig said this does not have to be approved today; there can be time for the Commissioners to look at it and bring questions to her or Mr. Knakmuhs. She said she could bring it back for approval, possibly at the January 2, 2019 meeting. She said a goal is having a 3 to 5 year CIP.

In response to a question from Commissioner Grindberg about whether the CIP should sync with the regular operating budget, City Administrator Bruce Grubb said the CIP used to be approved in the budget year and now it is preceding the calendar year. While it is good that it has been moved up six months, he said, work continues to line it up with the budget.

JLG Architects Proposal for the Fargo Performance Center Feasibility Analysis Update Approved (Moved from the Consent Agenda):
The Board received a communication from Assistant City Administrator Michael Redlinger stating in September 2018, a Performing Arts Taskforce was established to study the feasibility of constructing and operating a future Fargo Performance Center. He said potential site locations and previous study work will be evaluated, including the City’s 2015 Performance Center Feasibility Analysis conducted by HVS Consulting and JLG Architects. Taskforce members and staff desire to refresh the 2015 HVS/JLG report to inform and guide future decision making related to a Performance Center, he said. As a portion of the 2015 study, he said, and in supplemental work that followed, a cost analysis was developed by JLG for remodeling or replacing the Civic Center with a Performance Center. As a lead local partner in the 2015 study, JLG will provide the Taskforce and Board with updated information to advance the project to the next phase of development, he said, and future phases of work will be conducted through future solicitation processes.

Commissioner Piepkorn said the new City Hall was not there when the original study was done, so it is good to look at that, the skyway, Block 9, etc. for an update using a local firm.

In response to a question from Commissioner Grindberg about the cost, Mr. Redlinger said the cost is $25,000.00.

Commissioner Piepkorn moved the proposal from JLG Architects for the Fargo Performance Center Feasibility Analysis Update be approved.

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

Discussion on Employee’s Time Off for Christmas Eve Continued to December 17, 2018:
Mayor Mahoney said ND Governor Doug Burgum has issued an executive order to give State employees the day off for Christmas Eve this year due to the fact that Christmas is on a Tuesday, and he would like Commissioners to weigh in on the idea of doing the same for City staff.

Director of Human Resources Jill Minette said Christmas Eve is not a paid holiday for employees so offices are open and minimally staffed. She said some ideas are to treat this Christmas Eve as it has been historically or City offices could remain open as always with minimal staffing or look at options with other paid holidays in the 2019 calendar year to offset costs if a decision is made to close Christmas Eve of 2018. Some holidays discussed were the floating holiday or the Good Friday holiday in 2019, she said. Prior to the last policy update, the floating holiday had been referred to as a birthday holiday; however, more recently it is utilized as day to observe religious holidays other than those in policy. She said a rough estimate to close offices is about $220,000.00 as a nonproductive day, not on top of the budget.

Commissioner Piepkorn said he is not comfortable acting on this now, due to it not being on the agenda. He said employees could be asked for their preference.

Mayor Mahoney said employees could be surveyed and a report could be brought back to the next meeting.

Commissioner Grindberg said he would be comfortable giving the Mayor decision making authority based on feedback, due to the short time frame.

Commissioner Strand said to also consider what the private sector does. He said that needs to be balanced that with what is offered to public servants.

Commissioner Piepkorn moved to continue discussions on employee time off to the December 17, 2018 Regular Meeting.

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.

Commissioner Strand said he would like to acknowledge that the country is grieving a president who died this week. The legacy of George Herbert Walker Bush is so significant and he hopes when such a leader passes, due respect is given.

The meeting adjourned at 7:34 o’clock p.m.