Board of City Commissioners - January 16, 2018

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., Tuesday, January 16, 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 215 led the Pledge of Allegiance.

The Mayor read a statement with the following information: Fargo Cass Public Health (FCPH) is offering a new program for breastfeeding moms as they prepare to go back to work; since November, FCPH has conducted twenty-one “Save a Life” Narcan training sessions at area schools and non-profits; the Library is hosting several programs this week for all ages; an open house was held last week for Librarian Diane Briggs, who retired after more than 50 years of service; the Engineering and Planning departments and the FM Council of Governments are working on an application for a new state Department of Transportation program focused on Downtown transportation projects; Willard Yellowbird, who worked for the Planning Department and the Native American Commission for 17 years, has retired; several groups in the region have stepped up to provide additional services to the homeless during the recent extreme cold weather, including the Gladys Ray Shelter, the FM Coalition for Homeless, Churches United and the Dilworth Community Center; and the Human Relations Commission hosted the 17th Annual Celebration of Martin Luther King Jr. Day, with this year’s event focusing on “Common Good.”

Order of Agenda Approved:
Commissioner Grindberg moved the Order of the Agenda be approved, moving Item Nos. “7,” “17” and “23” 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 Piepkorn moved that the Minutes of the Regular Meeting of the Board held on January 2, 2018 be approved as read.

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

Consent Agenda Approved:
Commissioner Strand moved the Consent Agenda be approved as follows:
1.1st reading of an Ordinance Amending Section 25-1507 of Article 25-15 of Chapter 25 of the Fargo Municipal Code Relating to Alcoholic Beverages.

2.2nd reading, waive reading and final adoption of the following Ordinances:
a. Amending Section 35-0102, of Article 35-01 of Chapter 35 of the
b. Fargo Municipal Code Relating to Sale of Tobacco Products.
c. Rezoning Certain Parcels of Land Lying in Ohmer’s Addition
d. Subdivision of Lots 65 through 68 City of Fargo, Cass County, North Dakota.
e. Rezoning Certain Parcels of Land Lying in Ohmer’s Addition Subdivision of Lots 65 through 68, City of Fargo, Cass County, North Dakota.
f. Amending Section 20-0402.R.1.b of Article 20-04 of Chapter 20 of the Fargo Municipal Code (Land Development Code) Relating to Screening of Outdoor Storage Areas.
g. Amending the Planned Unit Development Use Master Land Use Plan and Final Plan for Certain Parcels of Land Lying in Harwood’s Addition to the City of Fargo.
h. Repealing and Re-Establishing a Conditional Overlay District on Certain Parcels of Land Lying in the District of Fargo Third Addition, City of Fargo, Cass County, North Dakota.
i. Repealing and Re-Establishing a Conditional Overlay District on Certain Parcels of Land Lying in Blu Water Creek Addition, Blue Water Creek Second Addition and Bentley Square Addition, City of Fargo, Cass County, North Dakota.

3. Proposed revision to the Joint Powers Agreement/Metro Area Transit Master Operating Agreement with the City of Moorhead.

4. Site authorization for Plains Art Museum at Fargo Billiards and Gastropub.

5. Applications for Games of Chance:
a. Red River VW Club for a raffle on 7/28/18.
b. Benefit for Kristin Erickson for a raffle on 1/20/18; Public Spirited Resolution.
c. Catholic Daughters of the Americas Court Sts. Anne and Joachim #2638 for a raffle on 4/14/18.
d. El Zagal 57 Director’s Staff for a raffle on 9/9/18.
e. Muskie’s Inc. F-M Chapter for a raffle on 2/8/18.
f. Saddle and Sirloin for a raffle on 2/10/18.
g. Knights of Columbus Council 11930 for a calendar raffle from 5/1/18 to 5/31/18.
h. Boosters of North Dakota Elite Dancers “bonded” for a raffle on 2/18/18.
i. El Zagal Escort Motor Patrol for a raffle on 5/5/18.

6. Tax exemptions for improvements made to buildings:
a. Brett and Ashley Johnson, 3017 21st Street South (3 year).
b. Mark A. and Cheryl M. Kraft, 2014 25th Avenue South (3 year).
c. Gregory B. and Nicole R. Gullickson, 1607 41st Avenue South (3 year).
d. Israel Reyes Hernandez and Catherine E. Reyes, 3150 24th Avenue South (3 year).
e. Rolinda M. Mix Life Estate, 3095 22nd Street South (3 year).
f. Eric L. and Kristy L. Tarnow, 2913 Southgate Drive South (5 year).
g. Jeffrey D. and Susan J. Love, 2323 Sundance Circle South (5 year).
h. Bryanna L. Johnson, 1534 8th Avenue South (5 year).
i. Rachel J. Hauan, 1742 14th Street South (5 year).
j. Arthur L. and Betty J. Haugen, 1014 14th Avenue South (5 year).
k. Jace M. and Kaitlyn M. Foss, 1254 2nd Street North (5 year).
l. MLB Properties ND LLC, 1261 10th Street North (5 year).
m. Randy A. and Joan M. Engebretson, 1506 8th Street North (5 year).

7. Sole Source Procurement for the purchase of an Automated License Plate Reader System (SSP18021) (moved to the Regular Agenda).

8. Change Orders for the City Hall Project:
a. No. 17 for an increase of $6,961.00 for the general contract.
b. No. 9 for an increase of $6,392.00 for the mechanical contract.

9. Adopt Resolution Approving Bentley Place Second Addition (Attachment “A”).

10. Change Orders for the Roberts Commons Parking Garage:
a. No. 1 for an increase of $20,561.92.
b. No. 10 for an increase of $37,599.20.

11. Purchase of Service Agreement with Cass County Social Service Board for in home services to eligible individuals.

12. Direct the City Attorney’s Office to work with Fargo Cass Public Heath to review and update Article 13-03 and 13-04 regarding control and regulation of food service establishments.

13.Agreement for Services with Whitney Oxendahl to research, coordinate and implement development of two food access “blue print” documents for the Cass Clay Food Commission.

14. First Amendment to the Southside Sewer Agreement with Southeast Cass Water Resource District.
15. Bid award to CC Steel, LLC in the amount of $708,900.00 for Project No. WW1708.

16. Cost Share Agreement for the Annual Arbor Day Tree Planting and Observance with the Fargo Park District.

17. Easement (Permanent Utility) with Northern States Power Company along 19th Avenue North and 7th Avenue North (moved to the Regular Agenda).

18. Amendment No. 4 to the Engineering Services Agreement from Moore Engineering in the amount of $45,000.00 for Project No. FM-14-50.

19. Bid advertisement for Project No. SR-18-A.

20. Contract and bond for Project No. QN-17-A1.

21. Bills in the amount of $7,662,638.00

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

Contract Amendment No. 1 for Improvement District No. MS-17-A0 Approved:
Commissioner Strand moved approval of Contract Amendment No. 1 for an increase of $596,860.00 with Houston Engineering for Improvement District No. MS-17-A0.

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

Selection of the Preferred Contract Incentive for the 13th Avenue South Street Reconstruction Project (Improvement District No. BR-198-C1):
This item was moved to the Regular Agenda.

Reimbursement Agreement with Midcontinent Communications Investor, LLC for Improvement District No. PR-18-E1:
The Board received a Report of Action from the Public Works Projects Evaluation Committee (PWPEC) regarding the City having to add the patching of asphalt alleys affected by the Midcontinent buildout to the annual seal coating project as Midcontinent does not have the expertise to manage the project. They said the City would be able to assure compliance to City specifications.
Commissioner Strand moved the Reimbursement Agreement with Midcontinent Communications Investor, LLC for Improvement District No. PR-18-E1 be approved.

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

Contract for Storm Sewer Lift Station Modifications and Incidentals Improvement District No. NR-17-A1 Approved:
Commissioner Strand moved approval of the Contract between the City of Fargo and Key Contracting, Inc. for Storm Sewer Lift Station Modifications and Incidentals Improvement District No. NR-17-A1 in the City of Fargo, North Dakota.

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

Contract Bond for Storm Sewer Lift Station Modifications and Incidentals Improvement District No. NR-17-A1 Approved:
Commissioner Strand moved approval of the following described Contract Bond as to sufficiency:
Western Surety Company, in the amount of $495,192.00, for Storm Sewer Lift Station Modifications and Incidentals Improvement District No. NR-17-A1 in the City of Fargo, North Dakota.

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

Appointment to the Community Development Committee Approved:
The Board received a communication from Mayor Mahoney recommending that Ken Enockson be appointed to serve as a public member of the Community Development Committee to replace John Q. Paulsen.
Commissioner Strand moved Ken Enockson be appointed to the Community Development Committee for a three-year term ending December 31, 2020.

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

Appointments to the Metropolitan Council of Governments Policy Board Approved:
The Board received a communication from Mayor Mahoney stating Metropolitan Council of Governments Executive Secretary Savanna Leach is requesting the City Commission appoint representatives to the Metro COG Policy Board for 2018. Mayor Mahoney is recommending the following be appointed to the Board for 2018:
City Commissioner Dave Piepkorn
City Commissioner John Strand
City Commissioner Tony Gehrig
City Commissioner Tony Grindberg
Planning Commission Chair Shara Fischer
Planning Commissioner Rocky Schneider
Planning Commissioner John Gunkelman

Commissioner Strand moved the Board approve and confirm the above listed City of Fargo appointees to the Metropolitan Council of Government Policy Board for 2018.

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

Sole Source Procurement for the Purchase of an Automated License Plate Reader System Approved (Moved from the Consent Agenda):
The Board received a communication from Police Chief David Todd stating the Police Department currently owns one Automated License Plate Reader (ALPR), which provides great value. The Department would like to expand this technology by purchasing five new systems and replacing the one system currently in use, he said. The total cost of purchasing six new systems is $88,015.00, he stated.

Commissioner Grindberg said he requested that this item be pulled from the Consent Agenda due to the fact that he was curious about it and he did not know this type of technology existed.

Chief Todd said the Fargo Police Department is in partnership with the West Fargo Police Department, which has the same system and they share the back end software and data storage system. He said the system is very beneficial in investigations to solve crimes and to locate missing individuals and stolen vehicles. He said there were seventeen incidents in 2017 where the Police Department was able to solve criminal issues with the ALPR system. He said the ALPR can track vehicles leaving the area of a crime, officers can input license plate information into the system and if the license is captured, the system alerts officers. He said the system retains data for ninety days before it is purged. He said if data is evidentiary, it is archived until the case is resolved. He said the Police Department budgeted for three ALPRs in 2018; however, Deputy Chief Ross Renner worked with the vendor to get a discount and the Department is able to purchase six new systems for about the same amount of money that was budgeted.
Commissioner Grindberg moved the Sole Source Procurement with PIPS Technology for the purchase of ALPR Systems 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.

Easement (Permanent Utility) with Northern States Power Company Along 19th Avenue North and 7th Avenue North Approved (Moved from the Consent Agenda):
The Board received a Report of Action from the Public Works Projects Evaluation Committee (PWPEC) stating a request from Xcel Energy was reviewed for an easement across the storm water retention pond adjacent to 19th Avenue North and west of 45th Street by the railroad crossing.

Division Engineer Brenda Derrig said the City has entered into an agreement with Montplaisir Ag and Rental, LLP to purchase the retention pond as part of the 19th Avenue North project. She said the easement is for Xcel Energy to run a power line for a backup substation in the 1700 Block of 3rd Avenue North.

Commissioner Piepkorn said he asked that this item be pulled from the Consent Agenda due to the fact that he would like to have a discussion to encourage utility companies to bury overhead power lines. He said Midcontinent, CableOne and Cass County Electric bury lines. He said the residents of North Dakota take trees very seriously and the trees on 19th Avenue North, for example, look horrible due to how they are trimmed to make way for the power lines. He said the trimming companies are just following what the utility companies tell them and it looks atrocious. He said the City Commission could tell Xcel Energy, as part of the Franchise Agreement, that the City wants a five-year plan to bury all overhead power lines in all parts of town.

In response to a question from Commissioner Gehrig asking if Xcel Energy has a plan for burying power lines, Ms. Derrig said she did not know of a plan; however, if it is done in established neighborhoods, private homes would be affected.

Commissioner Gehrig said Xcel Energy does bury the lines in new developments. He said the City could force Xcel Energy to bury the lines; however, there is a cost, which would be a pass through to homeowners. He said the City Commission should not use a heavy hand.

In response to a question from Commissioner Strand asking if a requirement to bury power lines could be included in the Memorandum of Understanding and Franchise Agreement with Xcel Energy, City Administrator Bruce Grubb said a new Franchise Agreement with Xcel Energy is in the works; however, there has never been a Memorandum of Understanding with Xcel Energy. He said Xcel Energy is aware of these issues and realizes they have to come up with a plan to get overhead power lines underground.
Commissioner Piepkorn moved the Easement (Permanent Utility) with Northern States Power Company along 19th Avenue North and 7th Avenue North be approved.

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

Application Filed by Solid Comfort, Inc. for a Five-Year Property Tax Exemption Approved:
A Hearing had been set for this day and hour on an application filed by Solid Comfort, Inc. for a five-year, 100% property tax exemption for a project at 3949 37th Avenue South which the applicant will use in the operation of manufacturing wood case goods for the hospitality industry.

No written protests have been filed for the attention of the Board.

The Board determined that no person is present at this Hearing to protest or offer objection thereto.

City Assessor Ben Huschka said the Tax Exempt Review Committee determined Solid Comfort has primary sector designation and has met the City’s point-scale requirements. He said the company’s request meets the necessary criteria to be eligible for the exemption for the expansion portion of the improvements and the Tax Exempt Review Committee recommends approval.

Rick Laliberte, Chief Financial Officer at Solid Comfort, said the second-generation company has been in business in Fargo for 37 years. He said the company has considered building options south of Fargo and west of Fargo; however, the exemption would allow for expansion in the existing location and will help with the company’s desire to invest in technology. He said after the expansion is complete, about twenty-two jobs will be added and in five years, more than fifty jobs will be added. He said the company has grown 16 percent a year from 2013 to 2017 and projections are that the company will grow at 15 percent a year over the next three to four years.

In response to a question from Commissioner Gehrig, asking if the exemption is not granted would the company move out of Fargo, Mr. Laliberte said the exemption would allow the company to grow at its current location.

Commissioner Gehrig said the company will make more than $4 million over the next four years. He said the exemption would be about $175,000.00 a year. He said it would be foolish for the company to go somewhere else, as special assessments and land costs in a new location would equate to more than the exemption. He said the company is growing in Fargo due to the fact that it is the best place for the company and workforce availability. He said an exemption is more like a bonus for the company and he does not believe incentives need to be offered to have business expansion in Fargo.

Commissioner Grindberg said he appreciates the company’s commitment to the community and to adding jobs. He said the City wants to see this company grow and he supports the exemption. He said at the recent State of the Cities event, a texting poll of more than 1,000 people in the business community was done asking if they support tax incentives and 70 percent of respondents said to continue with the incentives.

Commissioner Piepkorn said Fargo is in competition with Moorhead, West Fargo and other nearby cities. He said Solid Comfort is an organic business and the City does not want to lose that. He said he loves having Solid Comfort in Fargo, it is a homegrown business and they are free to look at expanding in different cities, which are Fargo’s competition. He said he wants to keep Solid Comfort in Fargo and help them grow.

Mayor Mahoney said now with growth, 53 percent of property taxes are paid by commercial properties, 47 percent are paid by residential properties and this exemption is well worth it.
Commissioner Piepkorn moved that the application filed by Solid Comfort, Inc. for a five-year, 100% property tax exemption for improvements at 3949 37th Avenue South pursuant to Chapter 40-57.1, NDCC be approved.

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

Contract Incentive for Improvement District No. BR-18-C1 Approved (Moved from the Consent Agenda):
The Board received a communication from the Public Works Projects Evaluation Committee (PWPEC) regarding a potential contract incentive for early completion of a joint project with West Fargo on 13th Avenue South between 45th Street and 9th Street. The three options identified, all funded with Fargo Street Sales Tax funds, were as follows:
1. Based on a contract value of $10 million to $12 million, include an incentive of $10,000.00/day for early completion capped at a 30-day max.
2. Based on the same contract value, include an incentive of $5,000.00/day capped at a 30-day max.
3. No incentive.

They said staff voted to forward the options to the Board for discussion and allow the Commission to select a preferred option for this project.

Division Engineer Jeremy Gorden said this is a shared high-profile project with West Fargo. He said including an incentive with a project such as this one gets contractors interested. He said Mayor Mahoney spoke with West Fargo Mayor Rich Mattern and West Fargo is on board with an incentive. He said of the three options, the $10,000.00 a day with a 30-day maximum is the incentive he would recommend, which would be split 50/50 with West Fargo.

The Mayor said the 19th Avenue North project was a disaster, and when an incentive was added for the 13th Avenue project last year and the 32nd Avenue project this year, the jobs were completed in a timely fashion. He said incentives have fixed the problems.

Commissioner Strand stated it is the City’s job to manage the bid letting and the contractors and keep them on a timeline. He said he is not in favor of these types of incentives when a contractor should be doing their job of getting the project done on time.

Commissioner Strand moved that an incentive clause for Improvement District No. BR-18-C1 be excluded.
The motion died for lack of a second.

Commissioner Piepkorn moved the incentive clause of $10,000.00/day capped at a 30-day maximum and split 50/50 with the City of West Fargo for Improvement District No. BR-18-C1 be approved.

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

Commissioner Piepkorn moved that the Board adjourn to 5:00 o’clock p.m., Monday, January 29, 2018.

Second by Gehrig. All the Commissioners voted aye and the motion was declared carried.
The time at adjournment was 5:33 o’clock p.m.