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Board of City Commissioners - July 16, 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 4:00 o'clock p.m., Monday, July 16, 2018.
The Commissioners present or absent were as shown following:
Present: Gehrig, Grindberg, Piepkorn, Strand, Mahoney.
Absent: None.
Mayor Mahoney presiding.

Mayor Mahoney announced the City of Fargo Board of City Commissioners will convene into Executive Session for the purpose of attorney consultation in the following pending matters: Aaron L. Cockfield v. City of Fargo (Cass County District Court, Civil #09-2018-CV-00386) and Kelsh v. City of Fargo (NDDOLHR#: NDE1612337 and EEOC444-2016-01012) to discuss negotiating strategy or provide negotiation instructions to its attorney or other negotiator regarding the pending litigation and administrative matters. To discuss these matters in open meeting will have a negative fiscal effect on the bargaining and/or litigation position of the City. Thus, an Executive Session for said matters is authorized pursuant to North Dakota Century Code 44-04-19.1 subsections 2 and 9.

Commissioner Piepkorn moved the Commissioners meet in Executive Session in the River Room as authorized by NDCC, Section 44-04-19.1(subsections 2 and 9) to discuss said matters.
Second by Gehrig. All the Commissioners voted aye and the motion was declared carried.

At 4:02 o’clock p.m. the Board moved to the River Room to discuss said matters in Executive Session.
Members present were: Gehrig, Grindberg, Piepkorn, Strand and Mahoney.

The Executive Session closed at 4:45 o’clock p.m. and the meeting reconvened in public session at 5:00 o’clock p.m.
Members present were Gehrig, Grindberg, Strand, Piepkorn and Mahoney.

The Mayor read a statement with the following information: Fargo Cass Public Health will host a news conference introducing the Harm Reduction Center (HRC) on Monday, July 23rd at 10:00 a.m.; Shriners Hospitals for Children, Twin Cities, will hold a free screening clinic for children July 17th at Fargo Cass Public Health; building permit values in the first six months were higher than 2017 in most categories; 415 apartments were added which is higher than 2017’s 348 unit total; the Library will host a series of events leading up to the Fargo AirSho; the MSUM Department of Physics and Astronomy gifted 3 telescopes to the Library; a “Flag Down an Officer” campaign directed by Officer Mike Clower collected old flags to retire them in the proper manner; upcoming events include the Downtown Street Fair, Navy Week and the Fargo AirSho featuring the US Navy Blue Angels.

Order of Agenda Approved:
Commissioner Gehrig moved the Order of the Agenda be approved moving Item No. “20” from the Consent Agenda to the end of the Regular Agenda.
Second by Grindberg. 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 July 2, 2018 be approved as read.
Second by Piepkorn. All the Commissioners voted aye and the motion was declared carried.

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

1. 2nd reading and final adoption of an Ordinance Repealing and Re-Enacting a Conditional Overlay District on Certain Parcels of Land Lying in Urban Plains by Brandt 1st Addition, Urban Plains by Brandt 2nd Addition, Urban Plains Medical Park Addition, Urban Plains Retail Addition, Urban Plains Center Addition, Urban Plains Northeast Retail Addition and Urban Plains Northeast Retail 2nd Addition, Fargo, Cass County, North Dakota; 1st reading 7/2/18.

2. Receive and file General Fund – Budget to Actual through June 30, 2018 (unaudited).

3. Resolution Ratifying Sale of $42,965,000.00 Refunding Improvement Bonds, Series 2018D (Attachment “A”).

4. Applications for Games of Chance:
a. Cassie Kraft Benefit for a raffle on 7/28/18; Public Spirited Resolution.
b. Nativity Elementary School for a raffle on 2/1/19.
c. Knights of Columbus 4th Degree Assembly 788 for a calendar raffle from 1/1/19 to 1/31/19.
d. YMCA of Cass and Clay Counties for a raffle and raffle board on 8/7/18.

5. Notice of Grant Award Amendment in the amount of $12,500.00 with the ND Department of Health for the WIC Program (CFDA #10.557).

6. Bid award to bibliotheca LLC in the amount of $30,761.60 for the replacement of radio frequency identification security gates at the Fargo Public Library (RFP18021).

7. Bid award to Advanced Business Methods for copiers and service agreements at City Hall (RFP18205).
8. Bid award to Business Essentials for professional printing services for a three-year term, with the option for two, one-year extensions (RFP18209).

9. Bid award to F-M Draperies in the amount of $73,738.64 for City Hall window coverings (RFP18210).

10. Bid award to All About Moving, Inc. in the amount of $33,000.00 for professional moving services (RFP18212).

11. Quote from Ziegler Cat in the amount of $363,215.07 for the reconditioning of the landfill gas generator.

12. Sole Source Procurement with Best Technology Systems, Inc. in the amount of $25,830.00 for firing range maintenance, repair and service.

13. Easement (Pump Station) with Cass Rural Water Users District for Sanitary Lift Station #59 site.

14. Bid award to M&R Signs in the amount of $33,017.74 for signs (RFP18174).

15. Bid award to 3D Specialties in the amount of $18,254.15 for sign materials (RFP18175).

16. Developer and Road Use Agreement with Block 9 Partners, LLC.

17. Bid advertisement for Project Nos. SN-18-C2 and UR-18-A.

18. No bids were received for Project No. SN-18-C1 and project will be rebid under Project No. SN-18-C2.

19. Extension of the 2017/2018 highway deicing salt contract (RFP16021) with Compass Minerals America, Inc. for the 2018/2019 snow season at a price of $96.76 per ton.

20. Agreement with Howard and Barbara Gensler (moved to the Regular Agenda).

21. Contract and bond for Project No. FM-15-F2.

22. Bills in the amount of $10,158,646.78.

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

Bids Rejected for Sanitary Sewer, Water Main, Storm Sewer, Concrete Curb and Gutter, Asphalt Pavement, Site Grading, Street Lights and Incidentals Improvement District No. BN-18-F1: Project to be Rebid:
The Board received a communication from Division Engineer Thomas Knakmuhs stating bids for Sanitary Sewer, Water Main, Storm Sewer, Concrete Curb and Gutter, Asphalt Pavement, Site Grading, Street Lights and Incidentals Improvement District No. BN-18-F1 in the City of Fargo, North Dakota, were opened at 11:30 a.m., July 11, 2018 and the low bid exceeded the engineer’s estimate by 18.9%. He said staff believes more favorable bids would be received if the project is rebid with a revised completion date in 2019 rather than 2018.

Commissioner Gehrig moved the bids for Sanitary Sewer, Water Main, Storm Sewer, Concrete Curb and Gutter, Asphalt Pavement, Site Grading, Street Lights and Incidentals Improvement District No. BN-18-F1 be rejected and the project be rebid later in 2018.

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

No Protests Received for Storm Sewer, P.C. Concrete Paving, Street Lights and Incidentals Improvement District No. BN-18-K1:
The Statutory Resolution of Necessity for the construction of Storm Sewer, P.C. Concrete Paving, Street Lights and Incidentals Improvement District
No. BN-18-K1 in the City of Fargo, North Dakota, was duly published in the official newspaper for the City of Fargo, North Dakota on June 25 and July 2, 2018 and no protests have been filed in the office of the City Auditor within the legal protest period.

Commissioner Gehrig moved that the Board declare that no protests have been filed to the construction of Storm Sewer, P.C. Concrete Paving, Street Lights and Incidentals Improvement District No. BN-18-K1.

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

Bids Received for Storm Sewer, P.C. Concrete Paving, Street Lights and Incidentals Improvement District No. BN-18-K1:
The bids for Storm Sewer, P.C. Concrete Paving, Street Lights and Incidentals Improvement District No. BN-18-K1 in the City of Fargo, North Dakota were opened at 11:30 o'clock a.m., July 11, 2018, and the bids were found to be as follows:

Fox Underground, Inc. Fargo, ND
Bid: $302,391.31

Dirt Dynamics, LLC Fargo, ND
Bid: $359,504.05

Dakota Underground Company, Inc. Fargo, ND
Bid: $372,582.85

Opp Construction, LLC Fargo, ND
Bid: $385,397.85

CC Steel, LLC Fargo, ND
Bid: $438,614.15

Contract for Storm Sewer, P.C. Concrete Paving, Street Lights and Incidentals Improvement District No. BN-18-K1 Awarded to Fox Underground, Inc. in the Amount of $302,391.31:
Commissioner Gehrig offered the following Resolution and moved its adoption:
WHEREAS, The City Engineer has prepared and filed a detailed statement of the estimated costs of Storm Sewer, P.C. Concrete Paving, Street Lights and Incidentals Improvement District No. BN-18-K1; and
WHEREAS, The Board of City Commissioners of the City of Fargo has considered the bids received July 11, 2018 for Storm Sewer, P.C. Concrete paving, Street Lights and Incidentals Improvements Improvement District No. BN-18-K1 in the City of Fargo, North Dakota; and
WHEREAS, The City Engineer's tabulation of the bids received for Storm Sewer, P.C. Concrete Paving, Street Lights and Incidentals Improvement District No. BN-18-K1 shows the bid of Fox Underground, Inc., of Fargo, North Dakota in the sum of $302,391.31 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 Fox Underground, Inc. in the sum of $302,391.31 is the lowest and best bid received.
BE IT FURTHER RESOLVED, That the contract for Storm Sewer, P.C. Concrete Paving, Street Lights and Incidentals Improvement District No. BN-18-K1 in the City of Fargo, North Dakota, be and the same is hereby awarded to Fox Underground, Inc., for the sum of $302,391.31, subject to the supervision, inspection and approval of the City Engineer, and in accordance with the Plans and Specifications filed in the office of the City Auditor.

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

Presentation Regarding the Neighborhood Revitalization Initiative (NRI) Program:
Planning Director Nicole Crutchfield said Gate City Bank has created another loan pool for the City of Fargo’s Neighborhood Revitalization Initiative (NRI) Program. She said the funds are available to homeowners of owner-occupied residences that are more than 40 years old and assessed at less than $250,000.00 at a low interest rate.

A team from Gate City Bank presented a check for $2 million to Mayor Mahoney and Commissioner Strand representing the funds available.

Commissioner Strand said the program helps affordable housing in the City.

Revised Resolution Adopting Rules and Regulations Relative to the Operation of the Agenda and Conduct of City Commission Meetings Approved:
Assistant City Attorney Nancy Morris said at the July 2, 2018 meeting there was discussion about the rules that have been in place for a number of years and are typically adopted after the new Commission is elected. Commissioner Strand requested further information on a couple of items, she said, particularly that a member voting in the minority would have an opportunity to ask for reconsideration 28 days after the meeting and also when a member of the majority may seek reconsideration of a motion. She said finding the rules to be inconsistent with Robert’s Rules of Order, she is presenting a revision that strikes those out. She said the existing rules state that “meetings shall be conducted in accordance with Roberts Rules of Order, except that the principle of majority rule shall always prevail, and any such rule may be changed or suspended by a majority vote of the Board of City Commissioners”. A motion for reconsideration could now be made at the same meeting in which the motion was initially approved, she said, and then must be seconded and passed by majority vote. She said in subsequent meetings it is called a motion to rescind and is not specific to a minority or majority member; however, the motion would have to be carried by a 4/5 vote and could only be rescinded if there has not been a change in position based on the previous motion. If the motion to rescind were passed, she said, then the motion would have to be made and seconded again.

Commissioner Strand offered the following revised Resolution and moved its adoption:
WHEREAS, It is desirable that the transaction of City business be done in an orderly fashion; and
WHEREAS, The Board of City Commissioners of the City of Fargo deems it desirable and necessary to promulgate rules and regulations for the guidance of commissioners and citizens.
NOW, THEREFORE, BE IT RESOLVED, By the Board of City Commissioners of the City of Fargo that the following rules and regulations relative to the operation of the agenda and the conduct of City Commission meetings is hereby adopted, superseding any and all former rules and regulations which have been adopted:

I. AGENDA

A. There shall be one agenda prepared for each meeting.

B. Any City Commissioner, City employee or citizen of the City may place an Item or issue on the agenda.

C. All agenda items or issues to be qualified for regular consideration must be submitted in clear, articulate and definite terms and must be communicated to the City Commission office prior to 12:00 noon on the Thursday preceding the meeting.

D. Agenda items must be accompanied by a written explanation of the item. A “suggested” motion must be typed at the end of the communication, which states the action being requested of the Board. If the communication is for information purposes only, there should be a statement to that effect at the beginning of the letter.

E. Any correspondence or other supporting material for any item on the agenda which is intended to become a part of the public records of the City must be received in the City Commission office no later than 12:00 noon on the Thursday preceding the meeting. In the event such material is not submitted to the City Commission office as stated above, such material and the related agenda item shall be stricken and placed on the agenda for the next regular meeting.

F. Any item or issue placed on the agenda may be removed or withdrawn only by the person who placed it there, or by his or her duly and properly authorized agent.

G. Any items or issues which have not qualified for the regular agenda under the rules as stated above, or any new and timely issues which arise after preparation of the regular agenda may, with the consent of a majority of the City Commissioners who are present and voting, be considered as an extra item.

H. Ordinances shall be sponsored by a member of the Board of City Commissioners or the City Commission as a whole. Any citizen or City employee desiring any ordinance change shall submit such request to a member of the Board of City Commissioners or to the Commission as a whole. No ordinances shall be drafted by the City Attorney, except upon request of a member of the Board of City Commissioners or by the City Commission as a whole.

I. The order of the agenda shall be as determined by the Executive Assistant to the Board of City Commissioners utilizing general guidelines as follows:

1. Consent agenda at the beginning of the agenda. The consent
agenda shall be non-controversial routine items as may be determined by the Executive Assistant.

2. Non-consent agenda at the end of the agenda. Non-consent items shall be as determined by the Executive Assistant.

J. The calling and conduct of special meetings shall be in accordance with ordinances of the City of Fargo and laws of the State of North Dakota.

II. RULES GOVERNING CONDUCT OF CITY COMMISSION MEETINGS

A. Meetings shall be conducted in accordance with Roberts Rules of Order, except that the principle of majority rule shall always prevail, and any such rule may be changed or suspended by a majority vote of the Board of City Commissioners.

B. At each regular meeting, the first item of business shall be the consideration and approval of the agenda, including the deletion of any item which the Commission deems to be frivolous or repetitious and the addition of requested extra items.

C. The Mayor or other presiding Commissioner will announce the item on the agenda. It is suggested the person who requested placement of the item on the agenda will then be given up to three (3) minutes to present any additional information not included in the letter. There will be opportunity for input after a motion is made and seconded. Proponents will be recognized first, then opponents. It is suggested persons wishing to speak will be allowed no more than three minutes each. Time for each side will be designated by the Chair. Additional time will be allowed only if Commissioners have questions or if there has been a majority vote to allow additional discussion. The item will be voted upon and no further discussion will be allowed.

D. Each member of the Board of City Commissioners shall vote on every issue unless absent from the meeting or excused from voting. Any member wishing to be excused from voting, or who does not feel qualified to vote because of a conflict of interest, shall ask to be excused from voting and state the reasons therefore. The remaining Commissioners shall, by majority vote, either grant or deny such request to be excused. If the Commissioner making such request is excused, he or she shall be deemed to be disqualified and the abstention shall not be counted as an aye or nay. If the request is denied and the Commissioner refuses to vote, his or her vote shall be deemed to be the same as the majority of those voting.

E. The Chairman of the meeting shall not refuse to recognize any member who wishes to make a motion or to be heard on a particular item.

F. Any on duty police officer may be considered as a sergeant at arms for Commission meetings and may be summoned to maintain order by any member of the Board of City Commissioners at any time.

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

Parcels of Land in Woodruffs Addition, Chas. A. Roberts Addition, Erskines Addition and Island Park Addition Rezoned (703, 705, 913, 927, 1001, 1003, 1009 and 1101 4th Street South; 920 5th Street South; 912, 918, 924 and 926 6th Street South; and 415, 418, 419, 421, 422, 424, 426, 501, 503, 505, 507 and 514 10th Avenue South):
At a Hearing held on June 5, 2018, the Fargo Planning Commission recommended approval of a change in zoning from MR-2, Multi-Dwelling Residential to SR-3 and SR-5, Single-Dwelling Residential on Lots 10 and 12-17, Block 3,
Lots 2-5, the West 7 feet of Lot 6, the East 135 feet of Lots 7 and 8, and Lot 9, Block 5, and Lot 7, Block 8, Woodruffs Addition; Lots 1-3, and the West Half of Lots 4-7, Block W, Chas. A. Roberts Addition; West 86 feet of Lots 9-12, Block X, Erskines Addition; and the South 71 feet less the West 59 feet of the North 115 feet of Lot 4, and the North 10 feet of Lot 5, Block 4, Island Park Addition.
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 rezoning involves 22 lots in the Hawthorne neighborhood. The zone change is staff initiated to have the zoning districts more accurately reflect the actual use on the properties, he said. This is beneficial for preservation of the existing housing in the neighborhood, he said, and came to staff’s attention when a Special Assessment District was created and residents were notified.

In response to a question from Commissioner Gehrig regarding whether taxes would change for these properties, Mr. Kress said that is some of the point of this since special assessments are based on zoning.

Special Assessments Coordinator Dan Eberhardt said this came about with the 4th Street Project, which is an arterial that is capped. He said using the formula, multi-family residential zonings are assessed higher than single-family dwellings so these changes could result in cost savings to the homeowners.

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 Strand. On the vote being taken on the question of the adoption of the Resolution Commissioners Grindberg, Strand, Piepkorn, Gehrig 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 Woodruff’s Addition, Chas. A. Roberts Addition, Erskine’s Addition and Island Park 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 Woodruff’s Addition, Chas. A. Roberts Addition, Erskine’s Addition and Island Park 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, Gehrig and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Discussion on Second Reading and Final Adoption of an Ordinance Amending Sections 18-0304, 18-0308 and Enacting Section 18-0318 of Article 18-03 of
Chapter 18 of the Fargo Municipal Code Relating to Use and Care of Streets and Sidewalks:
Food Truck Pilot Program Delayed Indefinitely:
Planning Administrator Nicole Crutchfield said between first and second readings of this item, it was brought to staff’s attention that perhaps all the people believed to be at the table were not. She said an open house was held on July 9th, which brought forth both concerns and support from residents, vendors, property owners and restaurant owners. She said the goal is to pilot test a food truck program for the remaining 12 weeks of the summer. She said there are potential complications such as trash, noise, right of way obstructions; however, there are codes in place to help govern such things and a pilot program could highlight other obstacles that could surface. She said a current rule does not allow for vending in the right of way, so the request is for a temporary sunset of that to test the program. She shared a map with some revisions to the prohibited locations and she outlined several possible motions dealing with the Ordinance and the second reading. She said staff is also offering some options such as expanding it citywide or waiting until 2019.

Commissioner Gehrig said if there is going to be a pilot it needs to be for the entire city, not just Downtown.

Commissioner Piepkorn said food trucks are a great addition and he does not feel they compete with restaurants. He said food truck vendors want to go where there are many people, which is why they want to be downtown and the free market should be allowed to work. Food safety would be an issue, he said, as well as not being set-up right at the entrance of a restaurant. He said he does not support the map showing all the red lined restrictions.

In response to a question from Commissioner Strand asking for an explanation the map, Ms. Crutchfield said the red lines on the map are where food trucks would not be allowed due to concerns where things are already congested and parking competition. She said the right of way is defined as going from face of building to face of building downtown or from curb to curb, not on the berm. She said the map’s focus is on less active areas plus food trucks would be asked to follow parking limitations. For pilot purposes, she said, food trucks were defined as an all-enclosed street worthy vehicle they can sell out of, and not trailers since they may have to move in 2-4 hours. Food vendors had mixed views on that, she said, and some felt it might be too late in the year to be very impactful. She said staff feels that even if there is only one truck Downtown to try it out, the pilot could be a success.

Jason Halvorson, representing the Texas Q BBQ food truck, said the map only allows trucks on the outskirts. He said he and other vendors have tested markets all over the city and find being Downtown is significant. He said he would like to see the program go ahead to allow kinks to be worked out and then come back to fix some things. He said the average food truck can serve lunch in two minutes and can be an attraction. He said he would like to see set timeframes allowing a truck to be set up.

Randy Thorson, Downtown business owner, said he has spent millions of dollars investing in Fargo and Downtown, he pays maintenance fees and does more than someone who can park on the street and take away from his business. He does not feel this is fair, he said, and would expect the investments in Downtown would be protected so property taxes can be paid. He said if there is a pilot, he would suggest changing the boundaries to 1st Avenue to 4th Street up to 2nd Avenue so trucks are at least two blocks away from his establishments. He said everyone wants to be in high traffic area, which is the reason restaurants get built there. He said he hopes nothing is taken away from those who absolutely invest in Downtown 12 months out of the year versus occasionally on a street.

Josie Danz, 420 Broadway, said she likes having food trucks Downtown and while they bring value, they also contribute to problems maintaining cleanliness and the appearance of Downtown. She said it is the Downtown businesses that pay to clean and for overall maintenance. She said she does not have a problem with where the map would allow trucks; however, if one could set up in front of her business and take up three parking spots, that would be a problem. She said while it could be allowed citywide, likely they would still all come Downtown.

DCP President/CEO Melissa Rademacher said she has reached out for feedback from the DCP Board and members and can submit the results once completed. Her sense is the pilot needs to regulate cleanliness and when and where food trucks can park, she said, and she would love it to be citywide and given a chance.

Commissioner Strand moved to receive and file the proposed Ordinance Amending Section 18-0304, 18-0308 and Enacting Section 18-0318 of Article 18-03 of Chapter 18 of the Fargo Municipal Code Relating to Use and Care of Streets and Sidewalks, as amended by the revision of the sunset of the ordinance from year-end to October 27, 2018 including the revised redline map.
Second by Piepkorn.

Commissioner Gehrig moved to amend the motion to add Option 2, “amend the proposed Pilot Program and Ordinance to expand the Pilot Program area to the entire city.”
Second by Grindberg.

Commissioner Piepkorn said he would agree with requiring a distance from a restaurant and not banning entire streets. Generators would also be a concern and would take away from Downtown character, he said.

Commissioner Gehrig said it would be a mistake to not allow this in other parts of town, and that would take pressure off Downtown.

On call of the roll on the motion to amend Gehrig, Grindberg and Mahoney voted aye.
Strand and Piepkorn voted nay.
The motion was declared carried.

Commissioner Strand said now that an amendment has passed allowing it citywide, what does that mean? The definition for a Downtown area was vetted well with a lot of information, engagement and input, and now this group says it is not that anymore, it is all over the city. He said he is now against something he was for.

Commissioner Gehrig said Ordinances exist for parking on streets for specific hours and generators could be too loud for residential areas. Additionally, he said, there is always talk of mixed uses of areas, incorporating bars and things in neighborhoods, so perhaps this be a good way to bring areas together. He said he envisions being able to have a block party with a food truck outside and an outdoor band, allowing people to do what they want with the property they have.

Commissioner Grindberg said he seconded the motion because he agrees it should be citywide; however, he will vote no on any motion. He said he feels it needs to be delayed till 2019 due to too many unanswered questions and concerns. This week is the Street Fair so people can eat all they want Downtown, summer will soon be over, then there will be time to figure all this out.

Commissioner Strand said delaying this may be well received. He said he is ok with the initial pilot for Downtown as proposed, with the amendments to the map from Mr. Thorson’s group; however, now it may have been killed.

Mayor Mahoney said initially it was pushed to have this before the Board in May or June; however, it took until now. While doing it citywide may be muddying the waters, it is a pilot that will only be for three months at best, he said.

City Attorney Erik Johnson said the motion to amend an Ordinance requires a text change, which he could bring back in two weeks for final approval.

Commissioner Piepkorn said it is the middle of summer; it may be time to hit the pause button.

Commissioner Strand moved to delay action indefinitely.

Second by Piepkorn. On call of the roll Commissioners Strand, Piepkorn and Grindberg voted aye.
Commissioners Gehrig and Mahoney 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 $1,216,849.00 for cost reimbursement for the FM Area Flood Risk Management Project for June 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 $1,216,849.00 for the FM Diversion Flood Project for expenses related to projects in the Oxbow/Hickson/Bakke component of the project be approved.

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

Appropriate Staff Directed to Prepare Renewal Plans for Four Blocks in the Roosevelt Neighborhood:
Strategic Planning Director Jim Gilmour said the City adopted a Land Use Plan in 2009 that identified that there was a high percentage of rental housing units west of the NDSU T Lot in the Roosevelt Neighborhood. After that plan was adopted, he said, the City instituted a new zoning district, University Mixed Use (UMU) and most of the property was converted to that zoning district. Since then there have been a number of projects developed in that area and property has been acquired, consistent with existing policies, he said. Roers Development who developed the T-Lofts, has acquired over 30 properties over four particular blocks, he said; however, there are no specific project plans or phasing yet, and no renewal plans or developer greements. He said Roers Development has requested the blighted conditions on these four different blocks be documented to have demolition costs potentially eligible for at least future Tax Increment Financing (TIF). He said a renewal plan can be created that would encourage removal of these vacant structures, documenting costs knowing development may not take place for 4, 6 or even 8 years from now. Costs could be documented, he said, and renewal plans could state it would be the intent of the City to consider providing some assistance in the future, allowing the developer and City to work together to remove the vacant structures so they are not a nuisance to the neighborhood in the short term. He said the recommendation is to find out if staff should work with the developer on a renewal plan to document the blight.

Ken Enockson, 1202 8th Street North, said he supports removing blighted property; however, he would ask why this property is allowed to get to that point. He said they are an example of a cycle where single family ownership goes to a landlord who rents to the point of degradation then abandonment. He said degradation does not always happen over decades, it can happen in as little as six months to a year. He said not all of these properties fall in the UMU, four are in the Newman Center block and there has been discussion about redeveloping that entire block for high rises. Those properties do not follow the same rules as UMU as far as development, he said, and would hope the City adheres to those or goes through the proper process of changing them.

Jim Laschkewitsch, 1016 College Street, said it is ironic that there was just a discussion on down-zoning properties in the Island Park neighborhood to alleviate problems with single-family homes and now essentially this is the opposite problem. He said the Roosevelt Neighborhood is being asked to support four-block renewal plans in absence of their neighborhood plan which has been in process for a year and a half. Passing this would indicate a bias toward approving an unvetted and unapproved redevelopment plan which the Roosevelt neighborhood would not support, he said, and it seems the developer is trying to move the UMU into the core of the Roosevelt neighborhood. Boarded up houses is a problem community-wide, he said, and engagement/communication prior to talk of demolishing 13 properties would have been useful, he said. It may taint what happens on those blocks in the future and appears on the surface to be an agreement between one large developer and the City. He said it seems to target this neighborhood to their disadvantage and tax increment financing should not be used to cause harm to a neighborhood or give the appearance of preapproval or City investment in a high density project that residents do not want. He said he would ask to table/delay this or even for a moratorium on development for six months or until a neighborhood plan can be figured out. He suggested the Board vote separately on the UMU zoned and residential neighborhood areas.

Mayor Mahoney said a difficulty is that the developer has come forward because of the concerns of blight. This is preemptive for a possible TIF, he said; however, they may not qualify. He said this has come forward in just the last several weeks and is a tool to get a developer to tear down property so there are not all these abandoned buildings within a neighborhood.

Larry Nygard, Roers Development, said this is one solution that was proposed to them. He said Roers would like to see the buildings torn down, and wants to preserve any rights going forward for the redevelopment. Often these properties are purchased in a used and abused condition, he said, and that can happen when several parcels have to be purchased to make up a project that could take years. He said they welcome some vehicle to go ahead and remove some of this blight and not destroy the ability to redevelop that site at a later date. He said all 13 are vacant and taxes are being paid.

In response to a question from Commissioner Gehig about whether Roers would be able to remove the buildings if they did not get a TIF, Mr. Nygard said they would, without a guarantee of a TIF or PILOT.

Commissioner Grindberg encouraged Mr. Nygard to invite the neighborhood to be a part of the process and to recognize the importance of the neighborhood association. He said there is no overnight success with removing some of these properties as far as code enforcement; however, the City is more proactive now dealing with things than in the past. Sometimes it takes years for these properties to become run down and to get to these conditions, he said.

Commissioner Gehrig said there were concerns with the Ponyland development Roers did several years ago and after the fact, nearly everyone he talked to was happy with how it worked out and how they worked with residents. He said he does not doubt Roers will communicate going forward, his point is that he does not think they need the City to help them with removals.

Commissioner Strand said he understands the developer has a longer term vision; however, he is perplexed on how to help these neighborhoods at risk. The City feeds into deterioration by allowing the blight and gaps, then the clearing of blocks so then single family homes are not the answer. He said he would have liked to have seen this come to the Community Development Committee so that group, which is charged with such topics, could address them. He said without a master plan or bigger view, more nails are being put in the coffin of the Roosevelt Neighborhood. Allowing the University Mixed Use (UMU) zoning was a huge sacrifice for the neighborhood, he said. He said he is not anti-growth or anti-development; he is pro-people, pro-neighborhoods, and pro-history, and there is deterioration going on.

Mayor Mahoney said the developer would pay to get rid of the blight; however, if they went for a TIF or PILOT they would later get credit for that work. The idea of how this neighborhood should be is a separate discussion that should be held with the neighbors with the help of the Planning Department defining future plans, he said.

Commissioner Strand said affordable housing could be built on these lots, there is demand for affordable housing in existing neighborhoods where there is already infrastructure in place. He would like to see these properties cleared out, and lots made available to develop on, utilizing programs like the Neighborhood Revitalization Initiative (NRI). He said single family homes are being lost and he would like to see Roers come to the Community Development Committee and say they have 13 lots available for development of affordable homes.

Commissioner Grindberg moved appropriate staff be directed to prepare four Renewal Plans for blocks in the Roosevelt Neighborhood, and to involve members of the Roosevelt Neighborhood Association.
Second by Piepkorn.

Commissioner Strand moved to divide the question.

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.

Commissioner Grindberg moved appropriate staff be directed to prepare Renewal Plans for three blocks in the University Mixed Use (UMU) zoning district, and to involve members of the Roosevelt Neighborhood Association.

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

Commissioner Grindberg moved appropriate staff be directed to prepare the Renewal Plans for the block that includes the Newman Center bordered by University Drive, 12th Avenue on the North and 11th Avenue on the South, and to involve members of the Roosevelt Neighborhood Association.

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

Appointments to the Human Relations Commission:
The Board received a communication from Mayor Mahoney recommending that Cheryl Schaefle be reappointed to the Human Relations Commission for a
three-year term ending July 1, 2021. He also recommends that Matuor Alier and Hamida Dakane be appointed for three-year terms to replace Hassan Lamba, who is no longer able to serve and to replace Timothy Stone, who has resigned.

Commissioner Strand moved the reappointment of Cheryl Schaefle and appointment of Matuor Alier and Hamida Dakane to the Human Relations Commission for three-year terms ending July 1, 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.

At 6:05 p.m. the Board took a five-minute recess.
After recess: All Commissioners present. Mayor Mahoney presiding.

Funding Sources for the Owner Supplied Extra Items Related to the City Hall Project Approved:
The Board received a Report of Action from the Finance Committee stating City Hall was originally bid March 30, 2015; however, bids were rejected because they exceeded the project estimate of $26,500,000.00. They said the project was redesigned and rebid on May 26, 2016 resulting in a reduction of $8,651,813.00. The original bid did not include certain owner-supplied items such as IT communications/broadcast equipment or ancillary fit-up items, they said. These would have been categorized under the general headings: City Hall Public Broadcast and City Hall Ancillary Fit-up, they said. Owner supplied items were not included in the original bid documents, they said, and the funding plan was to use State Aid revenue; however, that revenue is not an adequate source of funding at this time. The Finance Committee discussed using the following options for funding the items:

Owner Supplied Category Estimate Funding Source Funding Availability
City Hall Public Broadcast $1,215.364.00 Franchise Fees $1,215.542.00
City Hall Ancillary Fit-up $ 906,989.00 Health Premiums $1,782,844.00

Chief Information Officer Ron Gronneberg said franchise agreements with CableOne and MidContinent allow broadcasting peg channels on their system and moving to this new equipment will allow the broadcasting to be in High Definition (HD) with capability for closed captioning. He said costs include moving everything to HD for two channels, audio and video systems inside the Commission Room, plus video conferencing. Had the technology been included in the bid two years ago, technology would have changed, he said, and nobody would be happy with the system.

Trent Slider, AVI Systems, said his company has experience putting in reliable technology in rooms like the new Commission Room. He said besides capability for wide screen and HD, the infrastructure will allow for an easy transition when the day comes for 4K technology and the system will last seven to ten years before needing a major overhaul.

In response to a question from Commissioner Strand about whether closed captioning would then be available for all Committee and Board meetings, Mr. Gronneberg said that would be a cost issue because the contract has a base amount of minutes with an additional cost if that is exceeded, so the capability will be driven by the desire.

City Administrator Bruce Grubb said the ancillary fit up work is somewhat more challenging to explain and fund.

Communications and Public Affairs Manager Gregg Schildberger shared a PowerPoint slide for reference, outlining some of the items needed: security cameras, door security, controls, telephones, furnishings and equipment needed or not currently in place such as appliances, trash cans, podiums, storage and shelving units; signage, coverings for 207 windows where people are working. He said a commission fee of $24,200.00 is included.

Architect Terry Stroh said commissioning has become prevalent lately. He said this building does not require it although now it is basically a code requirement. He said commissioning is having a separate firm come in to test pieces of equipment to determine if it is performing the way the design is intended. An example, he said, is a simple crossing of wires can have the fan go the wrong direction and be unnoticed. He said it is proven it can pay for itself over the first 2-3 years of a building in making the building more efficient.

Mr. Schildberger said the current City Hall has been short on meeting rooms, with only six, while the new City Hall has 22 and involves furnishings, technology and infrastructure needs.

Finance Director Kent Costin said the Finance Committee advocates appropriating the health insurance cost savings realized for 2018, and accrues to the General Fund, to pay for at least the ancillary fit-up, and to use the franchise fees to pay for the broadcast system. With the savings and the amount of $2.1 million being asked for now, more than the savings accrued in the budget will be appropriated so slight supplemental funding would be needed to accomplish this.

Commissioner Gehrig said when Centennial Hall was torn down for about $720,000.00, staff came to the Board and said oops, it was not in the budget; then FF&E came up and staff asked for $1.7 million and again, sorry; and now, the AV cost was not added in the bid for City Hall and the Board is expected to just approve it again. City Hall is at a 20% higher cost than what the people were told, he said. The first bid of $31.5 million was far too high, he said, and then a second bid of $22.5 million made everyone happy. Now, he said, there appears to a pattern and that things were moved out of that bid on purpose to make it look better. Over $5.3 million in expenses have appeared during this process, which is a big deal, he said, and now City Hall is 19% over what citizens were told it would cost. He said how can demolishing Centennial Hall be forgotten, or microphones, or equipment to broadcast? This is a big deal, he said, and it was done on purpose. Apparently money can always be found to spend more money, yet money is never found to reduce taxes, he said, and he is livid over this. He said he is voting no because the people of Fargo deserve better. There should have been a placeholder, he said, and the Board should have been told about all this years ago. Saying state funding will pay for it is an absurd way to budget, he said, it should be a backup not a first course and the Board should vote no and go back to the drawing board. He said he cannot believe it is happening again and everyone will just vote yes on it.

In response to a question from Commissioner Piepkorn whether any of these costs were in the original bid, Mr. Grubb said they were not part of either bid package. He said that is Commissioner Gehrig’s point, why was not a placeholder in the budget.

Commissioner Piepkorn said it is concerning that had all this been added to the original higher bid, it would have cost $45 million for City Hall. He said on the flipside, there is a building now that will have to last a long time and it needs to be done well.

Commissioner Grindberg said there is a saying: “It is what it is.” He said he and Commissioner Strand came on the Board after the decisions were made. He does not like it, he said, and he would not have voted on it without an entire budget had he been on the Board before 2016.

Commissioner Strand said hindsight is terrific and agreed it would have been prudent to have earmarked these funds and anticipated expenses. It is the job of the Commission is to make things right and fortunately there is cushion for funding, he said. It is not perfect, he said; however, he could not imagine not finishing the project.

Commissioner Gehrig said there are other examples, the RoCo Parking ramp was 7.5% over, Cass Public Health building was 10% over, the Fire Headquarters was 10.5% over, the Water Treatment Plant, although West Fargo was added, is 4% over. City Hall is 19% higher, he said, not 5.9%. He said the people in charge are either not getting the information or making bad decisions. He said if it is a lack of information, then staff needs to be discussed; someone is to blame. Last week was the first he heard of the need for $2 million in AV equipment, he said, and if decisions makers do not have information, there is something going on and there must be someone to blame.

Mayor Mahoney said for clarification, according to the building project costs table, it shows costs went up 5.31%. He said in the past staff has done an excellent job in forecasting costs and the direction the City is going. This has been a difficult project, he said, and as it progressed, it was discovered a lot of costs were not put in. He said he thinks Mr. Grubb was surprised three weeks ago when he asked for remaining costs and found out how high it was and that it was not in the budget. He said going forward building projects will have a contingency fund, an estimate of what the all-in costs are. He thanked the team for their hard work and what has not been talked about is all the work along the way in keeping costs down, such as how furnishings got knocked down by $400-500,000.00.

Commissioner Piepkorn moved the recommended funding sources for the owner supplied extra items related to the City Hall Project be approved.
Second by Strand. On call of the roll Commissioners Piepkorn, Strand, Grindberg and Mahoney voted aye.
Commissioner Gehrig voted nay.
The motion was declared carried.

Discussion Regarding Special Events:
Commissioner Strand said he would like to discuss costs associated with special events in the city, such as the rally on June 27, 2018 when President Trump came to Fargo. He said he would like to know what the practice or policy is for a context to put it in.

Mayor Mahoney said he has been asked why the FargoDome was not used for the rally; however, that was not a decision made by the City. He said 20,000 tickets were issued for the event yet Scheel’s arena only holds 6,000. He said for the City it was roughly $10,000.00 in overtime for Police, Fire and Public Works. He said it is their duty keep people safe and control the crowds, and the City does not charge for doing that. He said it was the same when ESPN’s GameDay came to Fargo.

Deputy Police Chief Joe Anderson said hours were adjusted for President Trump’s visit so accrued it was only about $12,000.00 in overtime. There was about 835 in regular time which would have been paid regardless of the event.

In response to a question from Commissioner Piepkorn about NDSU tailgating and who pays for those police officers, Deputy Anderson said that is special detail and the FargoDome and NDSU pay.

Commissioner Piepkorn said if the President comes to Fargo that would be a city expense; however, if it is for a campaign, as this was, the City should at least be asking for compensation.

Commissioner Strand agreed and said he would be open to having a policy in place to request reimbursement for expenses if it is for campaigning versus an official appearance.

Commissioner Grindberg said if the President of the United States wants to come here, whatever his agenda is, let him come.

Commissioner Strand said he is not seeking action and appreciates the discussion.

Agreement with Howard and Barbara Gensler Approved (Moved from the Consent Agenda):
Commissioner Gehrig said he wanted to discuss this due to the fact that there is a reference in the agreement deferring special assessments or real estate taxes. He said he would like to take the opportunity for discussion about what happens with such deferments.

Water Utility Director Troy Hall said this project has to do with a water supply issue and involves cost efficient routing to get Sheyenne River water to the Water Treatment Plant. He said the Gensler property portion will be kept as farmland.

Finance Director Kent Costin said deferring of assessments is a long standing practice and widely used development tool. Assessments are set aside, he said, then contract agreements determine when assessments are turned off or on. Contracts arise in conjunction with development activities, he said, and the City understands that ag property owners want the land to continue to be agricultural, even when new development runs out into farmland. He said the City does not want to levy the assessments until development occurs naturally. Contracts are limited to 10 years and there are triggering events if development happens sooner, he said.

In response to a question from Commissioner Gehrig about who pays during that time period, Mr. Costin said the Special Assessment Debt Service Fund would pay the obligation. He said this ties into the discussion on the 1% override on bonding. After the 10-year period, they are billed the full amortization, he said, it is just on a delayed basis.

Commissioner Gehrig moved the agreement with Howard and Barbara Gensler be approved.

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

Commissioner Piepkorn moved that the Board adjourn to 5:00 o’clock p.m., Monday, July 30, 2018.
Second by Gehrig. All the Commissioners voted aye and the motion was declared carried.
The time at adjournment was 7:25 o’clock p.m.