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Board of City Commissioners - July 30, 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 4:30 o'clock p.m., Monday, July 30, 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 matter: City of Fargo v. Gary M. and Susan D. Cavett, Civil No. 09-2017-CV-000653, to discuss the pending litigation, negotiating strategy or provide negotiating instructions to its attorney. To discuss this matter in open meeting will have a negative fiscal effect on the litigation and negotiating 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 matter.

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

At 4:35 o’clock p.m., the Board moved to the River Room to discuss said matter in Executive Session.
Members present were: Gehrig, Grindberg, Piepkorn, Strand and Mahoney.

The Executive Session closed at 4:55 p.m. and the meeting convened in public session at 5:00 o’clock p.m.
Members present were: Gehrig, Grindberg, Piepkorn, Strand and Mahoney.

The Mayor read a statement with the following information: The Mayor’s Blue Ribbon Commission on Addiction will host a Take Back Tuesday event July 31st at Fargo Cass Public Health where residents can dispose of unused and unwanted over-the-counter and prescription medications; the Library’s Annual Summer Reading Program ends on August 4th and some events this week include a visit on August 1st by author Marci R. Rendon who will read from and talk about her mystery novel, “Murder on the Red River,” a free family movie August 3rd at the Carlson Library and more beginner yoga sessions for adults are planned in August; the Library is adding board games that can be checked out such as “Clue,” “Bananagrams,” “Settlers of Catan,” “Ticket to Ride” and “Farkle;” the Police Department held a Retiree Invite-Back event recently at the new station and nearly 60 retirees and their spouses attended; Chief Todd spoke at a recent Cass County Commission meeting regarding the state radio project where he reported that the current radio system in Fargo will soon be at the end of its service life and the need to move forward with a new system is now.

Order of Agenda Approved:
Commissioner Grindberg moved the Order of the Agenda be approved moving Item Nos. “18,” “20” and “23” from the Consent Agenda to the Regular Agenda and omitting Item No. “42-2.”

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 July 16, 2018 be approved as read.

Second by Gehrig. 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. 2nd reading and final adoption 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; 1st reading 7/16/18.

2. Pledged securities as of June 30, 2018.

3. Receive and file Second Quarter Financial Status Report for Major Operating Funds through June 30, 2018 (unaudited).

4. Extension of the Class “I” Alcoholic Beverage License for Santa Lucia until June 30, 2019.

5. Bid award to Passport Labs Inc. for Parking Services (RFP18193); negotiated contract to be presented to the Board for approval before 9/30/18.

6. Applications for Games of Chance:
a. Jeremiah Program for a raffle on 10/19/18.
b. Holy Spirit Catholic Church for raffle, bingo and calendar raffle from 9/19/18 to 10/10/18.
c. El Zagal Shrine Provost Guard for a sports pool from 9/1/18 to 1/6/19.
d. FirstLink for a raffle on 8/9/18.
e. Ahmann Strong (Craig Ahmann Benefit) for a raffle on 9/21/18; Public Spirited Resolution.
f. Pink It Forward for a raffle on 9/8/18.
g. Fargo Davies HS for a calendar raffle from 11/20/18 to 2/19/19.
h. Fargo Davies HS for a calendar raffle from 8/24/18 to 5/20/19.
i. El Zagal Shrine Mobile Nobel for a raffle on 9/29/18.

7. Applications for property tax exemptions for improvements made to buildings:
a. Judith Mary Spellman, 49 18th Avenue North (5 year).
b. Robert and Rita Kind, 1450 3rd Street North (5 year).

8. Notice of Grant Award with the ND Department of Health for the water pollution program (CFDA #66.605).

9. Amended Notice of Grant Award with the ND Department of Health for the immunization program (CFDA #93.539).

10. Amendment to Purchase of Service Agreement with the ND Department of Human Services, Behavioral Health Division for substance abuse prevention.

11. Purchase of Service Agreement with Kindred Public School District for nursing services for the 2018/2019 school year.

12. Notice of Grant Award with the ND Department of Health for local public health unit tobacco prevention and control program.

13. Agreement with Upper Missouri District Health Unit for the Statewide Tobacco Prevention Public Education Campaign.

14. Agreement to utilize BlueConnect Technology and Services, a benefit enrollment platform.

15. Notice of Finding of No Significant Impact and Notice of Intent to Request Release of Funds for the 2018 HUD program activities.

16. Bid award to Western Specialty Contractors in the amount of $486,077.00 for Parking Facility Restoration Repairs (AFB18223).

17. Adopt Resolutions Approving the following Plats:
a. Commerce on 12th Fourth Addition (Attachment “A”).
b. Simonson Companies First Addition (Attachment “B”).
c. Brandt Crossing Fourteenth Addition (Attachment “C”).
d. MVM Addition (Attachment “D”).

18. Proposal from Shultz + Associates Architects to provide architectural services for Phase 2 of the Police Department Design and Renovation Project at the Border States Electric Building (RFQ18172) (moved to the Regular Agenda).

19. Inter-local Agreement with Cass County and allocation of the 2018 Edward Byrne Memorial Justice Assistance Grant (JAG) Program funding (CFDA #16.738).

20. Change Order No. 1 for an increase of $176,500.00 for Project No. FM-15-K1 (moved to the Regular Agenda).

21. Negative Final Balancing Change Order No. 4 in the amount of -$1,811.60 for Project No. FM-15-B2.

22. Final Balancing Change Order No. 3 for an increase of $3,134.63 for Project No. FM-17-B1.

23. Contract Amendment No. 2 with KLJ in the amount of $142,061.00 for Project No. FM-15-K0 (moved to the Regular Agenda).

24. Change Order No. 11 for a time extension to 8/3/18 for Project No. FM-14-61.

25. Bid advertisement for Project No. HD-18-A.

26. Rejection of bids for Project No. SW16-03.

27. Permanent Easement (Utility) with Midcontinent Communications at 650 NP Avenue.

28. Set August 13, 2018 at 5:15 p.m. as the date and time for a hearing on a dangerous building at 427 15th Avenue South.

29. Bid award to Sanitation Products in the amount of $170,818.00 for one rear load refuse packer (RFP18149).

30. Contracts with Glenn’s Body Repair, Inc. for body repair work on City of Fargo light and heavy-duty fleet vehicles and with Corwin Collision Center for body repairs on the federally funded transit vehicle fleet (RFP18130).

31. Contract and bond for Project No. SN-18-A1.

32. Bills in the amount of $13,822,575.72.

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.

Change Order No. 1 for a Time Extension for Improvement District No. BN-18-E1 Denied:
Commissioner Strand moved Change Order No. 1 for a time extension be denied and the final completion date for street light installation and seeding be moved to September 1, 2018 for Improvement District No. BN-18-E1.

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.

Negative Final Balancing Change Order No. 3 for Improvement District No. BN-17-G1 Approved:
Commissioner Strand moved approval of Negative Final Balancing Change Order No. 3 in the amount of -$15,261.61 for Improvement District No. BN-17-G1.

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.

Final Balancing Change Order No. 2 for Improvement District No. BR-17-B1 Approved:
Commissioner Strand moved approval of Final Balancing Change Order No. 2 for an increase of $20,365.48 for Improvement District No. BR-17-B1.

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.

Change Order No. 1 for Improvement District No. BN-18-G1 Approved:
Commissioner Strand moved approval of Change Order No. 1 for an increase of $28,979.53 for Improvement District No. BN-18-G1.

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.

Change Order No. 6 for Improvement District No. BN-17-B1 Approved:
Commissioner Strand moved approval of Change Order No. 6 for an increase of $26,275.77 for Improvement District No. BN-17-B1.

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. BN-18-F0 Approved:
Commissioner Strand moved approval of Contract Amendment No. 1 with Houston Engineering for an increase of $16,000.00 for Improvement District No. BN-18-F0.

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. BR-18-A2 Approved:
Commissioner Strand moved approval of Contract Amendment No. 1 with SRF Consulting Group for an increase of $54,688.55 for Improvement District No. BR-18-A2.

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. 3 for Improvement District No. BR-18-B2 Approved:
Commissioner Strand moved approval of Contract Amendment No. 3 with Houston Engineering for an increase of $3,000.00 for Improvement District No. BR-18-B2.

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.

No Protests Received for Sanitary Sewer, Water Main, Storm Sewer, Concrete Curb and Gutter, Asphalt Pavement, Lighting and Incidentals Improvement District No. BN-18-L1:
The Statutory Resolution of Necessity for the construction of Sanitary Sewer, Water Main, Storm Sewer, Concrete Curb and Gutter, Asphalt Pavement, Lighting and Incidentals Improvement District No. BN-18-L1 in the City of Fargo, North Dakota, was duly published in the official newspaper for the City of Fargo, North Dakota on July 9 and 16, 2018 and no protests have been filed in the office of the City Auditor within the legal protest period.

Commissioner Strand moved that the Board declare that no protests have been filed to the construction of Sanitary Sewer, Water Main, Storm Sewer, Concrete Curb and Gutter, Asphalt Pavement, Lighting and Incidentals Improvement District No. BN-18-L1.

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.

Bids Received for Sanitary Sewer, Water Main, Storm Sewer, Concrete Curb and Gutter, Asphalt Pavement, Lighting and Incidentals Improvement District No. BN-18-L1:
The bids for Sanitary Sewer, Water Main, Storm Sewer, Concrete Curb and Gutter, Asphalt Pavement, Lighting and Incidentals Improvement District No. BN-18-L1 in the City of Fargo, North Dakota were opened at 11:30 o'clock a.m., July 25, 2018 and the bids were found to be as follows:

Dirt Dynamics, LLC Fargo, ND
Bid: $548,021.61

KPH, Inc. Fargo, ND
Bid: $612,725.56

Dakota Underground Company, Inc. Fargo, ND
Bid: $693,355.83

Contract for Sanitary Sewer, Water Main, Storm Sewer, Concrete Curb and Gutter, Asphalt Pavement, Lighting and Incidentals Improvement District No. BN-18-L1 Awarded to Dirt Dynamics, LLC in the Amount of $548,021.61:
Commissioner Strand offered the following Resolution and moved its adoption:
WHEREAS, The City Engineer has prepared and filed a detailed statement of the estimated costs of Sanitary Sewer, Water Main, Storm Sewer, Concrete Curb and Gutter, Asphalt Pavement, Lighting and Incidentals Improvement District No. BN-18-L1; and
WHEREAS, The Board of City Commissioners of the City of Fargo has considered the bids received July 25, 2018 for Sanitary Sewer, Water Main, Storm Sewer, Concrete Curb and Gutter, Asphalt Pavement, Lighting and Incidentals Improvement District No. BN-18-L1 in the City of Fargo, North Dakota; and
WHEREAS, The City Engineer's tabulation of the bids received for Sanitary Sewer, Water Main, Storm Sewer, Concrete Curb and Gutter, Asphalt Pavement, Lighting and Incidentals Improvement District No. BN-18-L1 shows the bid of Dirt Dynamics, LLC of Fargo, North Dakota, in the sum of $548,021.61 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 Dirt Dynamics, LLC in the sum of $548,021.61 is the lowest and best bid received.
BE IT FURTHER RESOLVED, That the contract for Sanitary Sewer, Water Main, Storm Sewer, Concrete Curb and Gutter, Asphalt Pavement, Lighting and Incidentals Improvement District No. BN-18-L1 in the City of Fargo, North Dakota, be and the same is hereby awarded to Dirt Dynamics, LLC for the sum of $548,021.61, subject to the supervision, inspection and approval of the City Engineer, and in accordance with the Plans and Specifications filed in the office of the City Auditor.

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

Sanitary Sewer, Water Main, Storm Sewer, Concrete Curb and Gutter, Asphalt Pavement, Site Grading, Street Lighting and Incidentals Improvement District No. BN-18-F2 (72nd and 73rd Avenues South, 26th and 30th Street South and Madelyn Way South):
Commissioner Strand moved the following action be taken in connection with Sanitary Sewer, Water Main, Storm Sewer, Concrete Curb and Gutter, Asphalt Pavement, Site Grading, Street Lighting and Incidentals Improvement District No. BN-18-F2:

Adopt Resolution Creating Improvement District No. BN-18-F2:
WHEREAS, The Board of City Commissioners of the City of Fargo, North Dakota, deems it expedient that Improvement District No. BN-18-F2 in the City of Fargo, North Dakota, be created
On 72nd Avenue South just south of the southern line of Golden Valley 1st Addition.
On 73rd Avenue South, just west of 25th Street South to Cass County Drain 53.
On 26th Street South between 73rd Avenue South and the southern line of Golden Valley 1st Addition.
On 30th Street South between 72nd Avenue South and 73rd Avenue South.
On Madelyn Way South.

COMPRISING:
Lots 1 through 16, Block 1.

Lots 1 through 18, Block 2.

Lots 1 through 13, Block 3.

All platted in Madelyn’s Meadows First Addition.

All of the unplatted land in southeast quarter section of T138N R49W Section 11 line east of Cass County Drain 53, a portion of which is to be platted as Madelyn’s Meadows First Addition.

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

NOW, THEREFORE, BE IT RESOLVED, That Sanitary Sewer, Water Main, Storm Sewer, Concrete Curb and Gutter, Asphalt Pavement, Site Grading, Street Lighting and Incidentals Improvement District No. BN-18-F2 in the City of Fargo, North Dakota, be and the same is hereby created.

Request Report and Estimate of Cost From the City Engineer for Improvement District No. BN-18-F2:
Direct City Engineer to report as to the general nature, purpose and feasibility relative to the construction of Improvement District No. BN-18-F2 in the City of Fargo, North Dakota; as well as an estimate of the approximate cost of said construction. (The Engineer's estimate of cost is $2,310,505.68.)

Order Plans and Specifications for Improvement District No. BN-18-F2:
Direct City Engineer to prepare Plans and Specifications for the construction of Improvement District No. BN-18-F2 in the City of Fargo, North Dakota.

Adopt Resolution Approving Plans and Specifications and Engineer's Report for Improvement District No. BN-18-F2:
WHEREAS, The Board of City Commissioners of the City of Fargo, North Dakota, has created Improvement District No. BN-18-F2 in the City of Fargo, North Dakota, as required by law; and
WHEREAS, Plans and Specifications and the Engineer's Report prepared by the City Engineer, have been considered.
NOW, THEREFORE, BE IT RESOLVED, That the Plans and Specifications and Engineer's Report for the construction of Improvement District No. BN-18-F2 in the City of Fargo, North Dakota, be and the same are hereby approved and ordered filed in the Office of the City Auditor.

Adopt Resolution Declaring Sanitary Sewer, Water Main, Storm Sewer, Concrete Curb and Gutter, Asphalt Pavement, Site Grading, Street Lighting and Incidentals Necessary:
BE IT RESOLVED BY THE BOARD OF CITY COMMISSIONERS OF THE CITY OF FARGO:
That it be and is hereby declared necessary to construct Sanitary Sewer, Water Main, Storm Sewer, Concrete Curb and Gutter, Asphalt Pavement, Site Grading, Street Lighting and Incidentals Improvement District No. BN-18-F2 in the City of Fargo, North Dakota, according to the Engineer’s Report for this district and the Plans and Specifications approved by the Board of City Commissioners of the City of Fargo, North Dakota, filed in the Office of the City Auditor, and open for public inspection. A map of the district is attached hereto and incorporated as if fully set forth herein.
That the entire cost of said improvement be specially assessed against the benefited property in said improvement district in amounts proportionate to and not exceeding the benefits to be derived by them respectively from said improvement.
Protests against the proposed Sanitary Sewer, Water Main, Storm Sewer, Concrete Curb and Gutter, Asphalt Pavement, Site Grading, Street Lighting and Incidentals must be in writing and must be filed with the City Auditor's Office within 14 days after the first publication of this Resolution.
BE IT FURTHER RESOLVED, That the City Auditor's Office is hereby instructed to publish this Resolution, as required by law.

Direct City Auditor's Office to Call for Bids for Improvement District No. BN-18-F2:
Direct City Auditor's Office to publish a Notice, as required by law, calling for bids for the construction of Improvement District No. BN-18-F2 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.

Item No. 42-2 Omitted:
Item No. 42-2 (Creation of Improvement District No. NN-18-A) was omitted.

Special Assessment Taskforce Guidelines Approved:
Commissioner Grindberg said the formation of a Special Assessment Taskforce was approved by the City Commission on July 2, 2018. He said he would like to make recommendations regarding the scope, membership and timeline/agenda of the Taskforce. He said the 13-member Taskforce should be appointed by the Mayor and include six Fargo residents, a member of the FM Homebuilders Association, a member of the FM Realtors Association, a mortgage lending industry expert, a developer, a Chamber of Commerce business representative and two non-voting City Commissioners. He said residents interested in serving on the Taskforce should contact the City Commission office by August 15th to submit their name for consideration. The timeline and agenda for the Taskforce, he said, would include establishing membership and holding a kick-off meeting in August, and then September through November the group should review the history of special assessment policy, engineering policies, the ND Century Code, financing and bond market cost drivers and examine alternatives to special assessment funding. He said final recommendations should come to the City Commission in December.

In response to a question from Commissioner Piepkorn asking if staff from other City departments will work with the Taskforce, Commissioner Grindberg said all necessary staff will be expected to participate to offer background information and support.

Commissioner Gehrig said Commissioner Grindberg did a good job with the draft; however, he would like to add an amendment. He said in the scope section, he wants to add and be clear that the Taskforce look at new infrastructure as well as existing, as he wants both issues tackled. He said he wants to amend Commissioner Grindberg’s guidelines with the following proposed additions: The scope should be how to fund replacement, repair and upgrades to existing infrastructure and how to fund new “green field” infrastructure; the objective should be to maintain the 2015 70/30 guidance and changes may include eliminating special assessments, a plan to require modification and improvements; a plan to fund special assessments in a way that is different from the other options; and any number of additional options developed as time permits. He said the Taskforce should develop at least three options for funding new infrastructure using the current guidance or the elimination of specials or any other options to be determined if there is a new and/or better way. He said what he does not want is only one option. He said more options are needed to debate and discuss, and then the Board can flesh out an objective. He said Commissioner Grindberg’s proposal is not clearly spelled out and he does not want a situation such as that with City Hall where there was only one option in which to say “yes” or “no.” He said the best course of action is to have more options, which will lead to better debate.

Commissioner Grindberg said the document and Commissioner Gehrig’s amendments are the same; however, they may be worded differently. He said all options would be on the table; however, potential state funding coming to Fargo will be a game-changer and will have a profound effect on how the City does business. He said there could be many other options including what is done in Omaha and Sioux Falls.

Commissioner Gehrig said his amendment does not change the intent of the document; it clarifies that one course of action is not acceptable and he wants that to be very clear.

Commissioner Gehrig moved the scope, membership, timeline and agenda for the Special Assessment Taskforce be approved, adding Commissioner Gehrig’s amendments.

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

In response to a question from Commissioner Strand asking if Commissioner Gehrig wants his amendment verbiage word for word or just a sense of the amendment,
Commissioner Gehrig said verbatim is not necessary as long as the objectives are clear. He said the intent is to have multiple courses of action brought forth to the Commission for discussion and debate, and for the community to see that there are multiple options available. He said he does not think that is clear in Commissioner Grindberg’s document and he wants many ideas brought forth.

In response to a question from Commissioner Strand, asking if Commissioners Grindberg and Gehrig drafted the proposal, Commissioner Grindberg said he drafted it and Commissioner Gehrig provided feedback so it could make the deadline for this week’s Commission packet. He said Commissioner Gehrig and himself are saying the same thing; however, he used his legislative experience and wrote it to be all-encompassing. He said he does not have a problem with Commissioner Gehrig’s scope due to the fact that it is the same thing he wrote in the original document. He said the objectives and more prescriptive language are not the right approach for a Taskforce.

Commissioner Strand said the Taskforce would be tackling many issues such as deferrals, percentage overrides, arterials, zoning implications, shared cap costs and the 70/30 option.

Commissioner Grindberg said with the upcoming Interim Legislative Committee, the City needs to be in-sync so the Taskforce needs to understand the ND Century Code. He said what the report says will be timely for the Legislative Session if there are any changes coming to the Century Code and how the City goes about business.

Commissioner Strand said there are 11 voting members and he wants to advance a name for the Taskforce. He said the way it is proposed, the public is being asked, “who is interested?” and then the Mayor will select the members. He said he thinks each Commissioner should be able to advance a recommendation.

Commissioner Gehrig said Commissioners should reach out and ask residents to volunteer.

The Mayor said he is looking for a balanced Taskforce that is well represented and has the best interests in mind for the City. He said he will look at the totality of the group.
Commissioner Grindberg moved the recommended Special Assessment Taskforce Guidelines including Commissioner Gehrig’s amended scope language 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.

Application for Abatement or Refund of Taxes #4474 on Property at 2121 43rd Street South for the 2017 Tax Year Approved:
The Board received a communication from City Assessor Ben Hushka recommending the application filed by Chad Zeznanski representing Store Master Funding VI, LLC for property located at 2121 43rd Street South, requesting a valuation reduction for the 2017 tax year be approved. Mr. Hushka said the request is that the valuation for 2017 be reduced from $7,446,000.00 to $5,700,000.00; however, he said the current value is $7,100,000.00, which was determined by the Assessor’s Office using the same valuation methodology and approaches used to arrive at the valuations on all other similar properties in the City. He said since the construction of this property in 2004, several reappraisals and value adjustments have been applied to reflect market changes and property improvements. He said the information provided by the applicant consists mostly of sales and listings of older properties from smaller, non-peer communities and contains inaccuracies in sale prices and geographical data. He said the applicant did not supply appraisal, valuation analysis or information to support or explain why they felt the assessment was in error and should be changed to their recommended value. He said the Assessor’s Office analysis includes breakdowns of the applicant’s requested value as well as the Assessor’s Office assessment values for 2014-2017. He said he has provided ranges of recent listings and sales prices per square foot of comparable local properties as well as from peer communities. He said he has also provided ranges of assessment values the City has on other properties broken down by various occupancy types. He said he feels the sales and assessment values provided indicate that the City’s recommended value is supported by the market and is uniform with how other properties are assessed. Based on the Assessor’s Office analysis and current calculations, he said, he is recommending a reduction in value of $346,000.00 to a total property value of $7,100,000.00.

Commissioner Piepkorn moved based upon Mr. Hushka’s recommendation, that application #4474 filed by Chad Zeznanski Representing Store Master Funding VI, LLC for abatement or refund of real estate taxes for the 2017 tax year on property at 2121 43rd Street South 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 BeerFish LLC d/b/a BeerFish for an Alcoholic Beverage License Approved:
A Hearing had been set for this day and hour on the application filed by BeerFish LLC d/b/a BeerFish for a Class "FA" Alcoholic Beverage License at 230 Roberts Alley North, 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 the Class “FA” license authorizes the licensee to sell “on-sale” only and a physical bar is allowed. He said the license also requires 50 percent or more of the businesses’ annual gross receipts be from the sale of prepared meals and not alcoholic beverages. He said BeerFish will be located in the Dillard Building, which is currently under construction and the business, when completed and open, will offer fresh fish and seafood dishes along with other menu favorites, tap beers, wines and specialty cocktails. The owners of BeerFish also own Dempsey’s Public House and Wurst Bier Hall, he said.

Commissioner Piepkorn moved the application 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 Drekker Brewing Company LLC d/b/a Drekker Brewing for an Alcoholic Beverage License Approved:
A Hearing had been set for this day and hour on the application filed by Drekker Brewing Company LLC d/b/a Drekker Brewing for a Class "Y" Alcoholic Beverage License at 1632 1st Avenue North, 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 a Class “Y” license authorizes a production brewery to obtain a brewer and retailer license. He said with this license, food sales are not required. He said Drekker Brewing Company opened in Downtown Fargo in 2014 and has since grown to the point where the owners need more production space to meet demand. The business has moved into the historic Smith building, he said, which is located west of Downtown where they will continue to hand-craft beer, make it available in a taproom and provide a location for residents to enjoy local beer, art and music.

Commissioner Strand said the developers have done a phenomenal job saving the Smith building and it will be an iconic destination.

Commissioner Grindberg moved the application 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.

Parcels of Land in Legacy I 2nd Addition Rezoned (2173 and 2175 58th Avenue South):
At a Hearing held on July 3, 2018 the Fargo Planning Commission recommended approval of a change in zoning from MR-1, Multi-Dwelling Residential to SR-5, Single-Dwelling Residential on parcels of land in Legacy I 2nd 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 zoning change is being requested due to the applicant’s concerns regarding the special assessments on the property.

In response to a question from Commissioner Strand asking if the topic of zoning change requests due to special assessments will be discussed by the Special Assessment Taskforce, Special Assessments Coordinator Dan Eberhardt said when changing zoning from MR-1 to SR-5, the SR-5 has a lower cap, which means lower special assessments. He said this topic will be discussed by the Taskforce.

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 in Legacy I 2nd 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 in Legacy I 2nd 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.

Parcels of Land in Grayland First Addition Rezoned (6313, 6333, 6347, 6363, 6379, 6393, 6405, 6421, 6439, 6457, 6473, 6491, 6507, 6523, 6541, 6561 and 6583 54th Avenue South):
At a Hearing held on July 3, 2018 the Fargo Planning Commission recommended approval of a change in zoning from SR-3, Single-Dwelling Residential to SR-4, Single-Dwelling Residential.
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 this zoning change will rezone 17 lots. He said the size of the lots and density of the project will not change; however, the SR-4 zoning will enable the developer to reduce the required setback for these lots to accommodate the single-family housing product they intend to build.

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 Piepkorn. On the vote being taken on the question of the adoption of the Resolution Commissioners Grindberg, Piepkorn, Strand, 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 Grayland First 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 Grayland First Addition to the City of Fargo, Cass County, North Dakota be placed on first reading.

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.

Parcels of Land in Laverne’s Addition Rezoned (4301 19th Avenue North):
At a Hearing held on December 5, 2017 the Fargo Planning Commission recommended approval of a change in zoning from AG, Agricultural to LI, Limited Industrial and P/I, Public Institutional.
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 an earlier version of this project was submitted in November 2014, was continued at the January 6, 2015 Planning Commission meeting and the project was withdrawn by the applicant in November 2015. The layout of the current plat is significantly different from the earlier application, he said, and the property has since been annexed into the City and has been included in the extensive study of the 19th Avenue North corridor. He said the proposed land use is for commercial and limited industrial.

In response to a question from Commissioner Piepkorn as to why this plat took so long to complete, City Engineer Brenda Derrig said the plat involves County Drain No. 40. She said the City works frequently with the Southeast Cass Water Resource District (SECWRD) due to the fact that their drains cut through much of the City. She said it took awhile to figure out the exact dimensions of these lots and when it was approved on December 5th it was approved contingent on the size of the lots determined through further negotiation with Planning and SECWRD. She said the City went back and re-evaluated the plan with SECWRD, and by taking that time and evaluating what was truly needed, some of the land was given back to the owner for further development.

Mr. Kress added that the plat includes multi-use trails and since it is near Hector International Airport, an airport proximity agreement was also needed.
Developer Scott Kjos said he and the City have been working on this plat for two years. He said he has 20 or 30 acres ready to go and is anxious to get roads in and to keep growing. He said this is going to be a tremendous growth area and he has another 100 acres north of this area he will be developing.

In response to a question from Commissioner Strand about forthcoming flood protection in this area, Ms. Derrig said in anticipation of development and the rebuilding of 19th Avenue North, the City is building a retention pond and will be using fill from the retention pond to build a levy around the development.

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 Laverne’s 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 Laverne’s 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.

Resolution Adopted Approving Laverne’s Addition:
Commissioner Grindberg offered the following Resolution and moved its adoption:
BE IT RESOLVED BY THE BOARD OF CITY COMMISSIONERS OF THE CITY OF FARGO:
WHEREAS, A Plat has been filed in the office of the City Auditor entitled “Laverne’s Addition” containing 29 Lots, 4 Blocks and 138.29 acres of land more or less, located at 4301 19th Avenue North; and
WHEREAS, A Hearing was held December 5, 2017 by the Fargo Planning Commission, and notice of such Hearing had been published, as required by law, and said Plat had been approved by the Fargo Planning Commission and by the City Engineer; and
WHEREAS, The City Auditor's Office published a Notice of Hearing on said Plat in the official newspaper for the City of Fargo on July 16 and 23, 2018 that a Hearing would be held in the City Commission Room, City Hall, Fargo, North Dakota at 5:15 p.m., July 30, 2018 at which time said Plat would be considered and all interested persons would be heard.
NOW, THEREFORE, BE IT RESOLVED, That the findings and recommendations of staff and the Planning Commission be accepted and the Plat entitled “Laverne’s Addition” be and the same is hereby in all things affirmed and approved on the basis that it complies with the Standards of Article 20-06, and all other applicable requirements of the Land Development Code, and that the Mayor of the City of Fargo and the appropriate City Officials are hereby directed to endorse their approval on the Plat and then direct Petitioner to file same for record in the Office of the Recorder of Cass County, North Dakota.

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.

Parcels of Land in 19th Avenue Southwest Pond Addition Rezoned (2102 45th Street North):
At a Hearing held on June 5, 2018 the Fargo Planning Commission recommended approval of a change in zoning from AG, Agricultural to GI, General Industrial, LI, Limited Industrial and P/I, Public Institutional with a C-O, Conditional Overlay.
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 majority of lots in this addition will be restricted to detention pond, park and open space uses. There will be some developable lots zoned for general industrial, he said.

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 and the Planning Commission be accepted and the rezoning be approved with the Conditional Overlay requirements listed in the Ordinance on the basis that it satisfactorily complies with the Comprehensive Plan, Standards of Section 20-0906.F (1-4) and all other applicable requirements of the LDC.

Second by Piepkorn. On the vote being taken on the question of the adoption of the Resolution Commissioners Grindberg, Piepkorn, Strand, 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 19th Avenue Southwest Pond 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 19th Avenue Southwest Pond Addition to the City of Fargo, Cass County, North Dakota be placed on first reading.
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.

Resolution Adopted Approving 19th Avenue Southwest Pond Addition:
Commissioner Grindberg offered the following Resolution and moved its adoption:
BE IT RESOLVED BY THE BOARD OF CITY COMMISSIONERS OF THE CITY OF FARGO:
WHEREAS, A Plat has been filed in the office of the City Auditor entitled “19th Avenue Southwest Pond Addition” containing 3 Lots, 3 Blocks and 13.11 acres of land more or less, located at 2102 45th Street North; and
WHEREAS, A Hearing was held June 5, 2018 by the Fargo Planning Commission, and notice of such Hearing had been published, as required by law, and said Plat had been approved by the Fargo Planning Commission and by the City Engineer; and
WHEREAS, The City Auditor's Office published a Notice of Hearing on said Plat in the official newspaper for the City of Fargo on July 16 and 23, 2018 that a Hearing would be held in the City Commission Room, City Hall, Fargo, North Dakota at 5:15 p.m., July 30, 2018 at which time said Plat would be considered and all interested persons would be heard.
NOW, THEREFORE, BE IT RESOLVED, That the findings and recommendations of staff and the Planning Commission be accepted and the Plat entitled “19th Avenue Southwest Pond Addition” be and the same is hereby in all things affirmed and approved on the basis that it complies with the Standards of Article 20-06, and all other applicable requirements of the Land Development Code, and that the Mayor of the City of Fargo and the appropriate City Officials are hereby directed to endorse their approval on the Plat and then direct Petitioner to file same for record in the Office of the Recorder of Cass County, North Dakota.

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

Parcels of Land in 19th Avenue Northeast Pond Addition Rezoned (2102 45th Street North):
At a Hearing held on June 5, 2018 the Fargo Planning Commission recommended approval of a change in zoning from AG, Agriculture to LI, Limited Industrial and P/I, Public Institutional with a C-O, Conditional Overlay.
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 lots in this addition would be used for detention and storm water ponds with some developable general industrial lots.

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 and the Planning Commission be accepted and the rezoning be approved with the Conditional Overlay requirements listed in the Ordinance on the basis that it satisfactorily complies with the Comprehensive Plan, Standards of Section 20-0906.F (1-4) and all other applicable requirements of the LDC.

Second by Piepkorn. On the vote being taken on the question of the adoption of the Resolution Commissioners Grindberg, Piepkorn, Strand, 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 19th Avenue Northeast Pond Addition to the City of Fargo, Cass County, North Dakota Approved:
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 19th Avenue Northeast Pond Addition to the City of Fargo, Cass County, North Dakota be placed on first reading.

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.

Resolution Adopted Approving 19th Avenue Northeast Addition:
Commissioner Grindberg offered the following Resolution and moved its adoption:
BE IT RESOLVED BY THE BOARD OF CITY COMMISSIONERS OF THE CITY OF FARGO:
WHEREAS, A Plat has been filed in the office of the City Auditor entitled “19th Avenue Northeast Pond Addition” containing 3 Lots, 3 Blocks and 16.10 acres of land more or less, located at 2102 45th Street North; and
WHEREAS, A Hearing was held June 5, 2018 by the Fargo Planning Commission, and notice of such Hearing had been published, as required by law, and said Plat had been approved by the Fargo Planning Commission and by the City Engineer; and
WHEREAS, The City Auditor's Office published a Notice of Hearing on said Plat in the official newspaper for the City of Fargo on July 16 and 23, 2018 that a Hearing would be held in the City Commission Room, City Hall, Fargo, North Dakota at 5:15 p.m., July 30, 2018 at which time said Plat would be considered and all interested persons would be heard.
NOW, THEREFORE, BE IT RESOLVED, That the findings and recommendations of staff and the Planning Commission be accepted and the Plat entitled “19th Avenue Northeast Pond Addition” be and the same is hereby in all things affirmed and approved on the basis that it complies with the Standards of Article 20-06, and all other applicable requirements of the Land Development Code, and that the Mayor of the City of Fargo and the appropriate City Officials are hereby directed to endorse their approval on the Plat and then direct Petitioner to file same for record in the Office of the Recorder of Cass County, North Dakota.

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

Mike Williams Reappointed to the Parking Commission:
The Board received a communication from Mayor Mahoney recommending that Mike Williams be reappointed to the Parking Commission.
Commissioner Piepkorn moved Mike Williams be reappointed to the Parking Commission for a three-year term ending June 30, 2021.

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

Smart Energy Parking Ramp Pilot Project at the Roberts Ramp Approved:
The Board received a recommendation from the Parking Commission to approve the submission of an application to the North Dakota Renewable Energy Program (NDREP) for $280,000.00 of funding for a public-private pilot project and to approve $50,000.00 for Fargo’s share of local matching funds over an 18-month project timeline upon funding approval by the North Dakota Industrial Commission.

Mike Williams, a member of the Parking Commission, said Fargo has an opportunity to add value to the innovative and successful Roberts Ramp by utilizing many of the future-ready features in the design. He said the electrical infrastructure of the ramp provides capacity for enhanced energy features that will improve efficiencies with smart controls, some on-site energy production and storage and provides the first public smart electric vehicle charging stations in Fargo. He said the grant request to NDREP must be matched by $50,000.00 in local funds as well as in-kind donations. He said contributors include Xcel Energy, Microsoft, Border States Electric and MBN Engineering. He said the City’s $50,000.00 share can be paid out of parking funds and the project will help the City learn and share ways the program can add value for this and other developments, help optimize the local grid and reduce energy use and emissions. The City would save an estimated $166,200.00 on power bills over 10 years, he said, and the project is based on a similar parking ramp in Oslo, Norway. He said the project would include five electric car-charging stations in the lower level and the solar panels would be installed on the ramp’s top level, which will also provide shade for some cars. He said the idea is for the City to generate solar power to sell during periods of peak demand when electricity is at its most expensive and to use the batteries to store power when electricity is at its least expensive. He said the ramp would also be upgraded so it can dim lighting during the day and in vacant areas at night.

Commissioner Piepkorn said this is a great learning opportunity for the City and he is glad to see that the City is not the only project sponsor.

Terry Sando, Director of eSmart Systems of North Dakota and the Mayor of Hillsboro, North Dakota, said eSmart strongly supports this project and is confident that this technology from Norway can quickly transition here.

Ed Gruchalla of the Citizens Local Energy Action Network, said his group is working for clean, renewable energy for the community and he is hopeful that this pilot project will help move his group forward and promote their agenda.

Commissioner Piepkorn moved the application to the North Dakota Renewable Energy Program for a Smart Energy Parking Ramp Pilot Project at the Roberts Ramp and allocation of $50,000.00 in local funds contingent upon funding approval by the North Dakota Industrial Commission be approved.

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

Resolution Adopted Authorizing the Issuance of Taxable Annual Appropriation Bonds, Series 2018E for the Block 9 Project:
Finance Director Kent Costin said the Block 9 project financing is scheduled to be completed by September 6th. He said pursuant to the financing plans, the City will issue taxable annual appropriation bonds to fund the parking ramp portion of the project and previously agreed to within development agreements. He said a bond issue parameters resolution authorizes the issuance of bonds subject to certain conditions and the City has used this practice in the past and it has been successful.

Terry Heaton, Client Representative with Springsted, Inc., said a lot of work has been done to this point since the project was approved in 2016. She said the project cost is capped at $15 million for a 379-stall parking ramp, a skyway and a multi-use public plaza. She said all of those projects will be financed with proceeds from this bond. She said due to the public-private benefit rule in taxation, the bonds have to be taxable, which increases the interest rate. The $15 million is the project cost, she said; however, due to the fact that this is not a general obligation bond with a levy built in to support it, it is supported from the project revenues. She said in order to make the bonds marketable, a $1.2 million debt service reserve will be added. She said there is also the timing of when revenues become available, so the bonds are structured to match when the private money comes through. She said there is also capitalized interest, the cost of issuance and the underwriter’s discount, therefore the total amount of the bond will be $17,385,000.00. All of this is financed, she said, with the intent that the developer will be paying that cost. She said there will have to be an annual appropriation bond that the City must include in its annual budget for the debt service payment and that would have to be approved by October 7th each year. She said the City is not required to approve an appropriation bond; however, if the City does not, even though it is not a default, it will have a negative impact on the City’s credit rating and the City’s investor audience. The intended source of repayment, she said, is a contract for deed payment of about $1,073,000.00 a year. She said the TIF on the residential component of the project is $100,000.00 a year and together that equals the debt service payment. She said that is internally how the City will be repaying the bonds from those funding sources. She said the pledge to the bondholders – what they really care about – is the annual appropriation pledge, made each year, and the City’s high credit rating, which will make the bonds marketable. The Resolution tonight, she said, is a parameters resolution and if interest rates move, capitalized interest could change and this is a 25-year bond and the interest rate is capped at 5 percent. She said it is a different market and similar to what was done with the bonds for the FARGODOME, which was also an annual appropriation bond. Therefore, she said, the underwriting firm Baird has been hired and they will be negotiating a price on the day of the sale. The Resolution also delegates to the Finance Director the ability to complete the documents, to sell the bonds and authorizes the Mayor and the Auditor to execute the bond purchase agreement, which is a final agreement and the awarding of the low bid. She said she anticipates the pricing to occur on August 21st and closing will be on September 6th.

Director of Strategic Planning and Research Jim Gilmour said part of the Developer’s Agreement is the City agreed to provide $15 million toward the cost of a parking ramp, skyway and plaza and that money will be repaid by the developer. After the ramp is built, it will be turned over to the City, and the City will then sell it back to the developer on a contract for deed. Another part of the Developer’s Agreement, he said, is to set up a TIF district for future property taxes over 25 years. He said funds will go into a TIF fund and used in part for the costs of the parking ramp. He said for the first five years, the TIF revenue will be limited to the residential condos as there are no Renaissance Zone exemptions for the condos. He said the developer will pay the difference of whatever the bond payment is less the amount of the TIF fund. He said no parking or general fund money will be used. He said the developer has been granted Renaissance Zone and Payment in Lieu of Taxes (PILOT) exemptions for the hotel and office, and they will not pay property taxes on those in years 1 through 20 and their payments on the contract for deed will be close to the full bond payment. For added security on this loan, he said, as part of Developers Agreement, RDO and DFI are providing corporate guarantees for the bond repayment during the construction up until there is adequate property taxes within the overall development. He said by year three, the building will be up, it will be valued at $75 million or higher and therefore the corporate guarantees will no longer be needed. He said if the developers fail to make a bond payment, there is $1.2 million in reserve to make that first year’s payment, the property tax exemptions would be canceled and the developers would have to pay the property taxes. In addition, he said, the City would take ownership of the ramp and receive revenue from the ramp. He said the project’s value would be more than $1 million a year and parking revenue would be $450,000.00 a year, which would be a net profit for the City of $300,000.00. He said if the developers default, the financial consequences would be severe.

In response to a question from Commissioner Gehrig asking who owns the parking ramp, Mr. Gilmour said during construction, the Block 9 partners own it and after completion ownership would transfer to the City, then the City would sell it to the developers on a contract for deed. He said if the developers do not pay, the City could take ownership back and after 25 years, Block 9 would own the parking ramp.

Commissioner Gehrig said the City is taking out a gigantic loan and Block 9 is paying for that loan with money they are not paying in property taxes. He said what if the average property owner wanted to build a new garage for their house, the City paid for it and instead of paying property taxes; they just pay back the loan. The average property owner in Fargo does not get that benefit; only big corporations get it in Downtown Fargo. He said it is a lot of risk, he does not think it is right and the City should own the parking ramp.

Mayor Mahoney said Block 9 is a $118 million project and when it is done, will generate $750,000.00 to $800,000.00 in taxes. He said the risk is in the partnership.

Commissioner Piepkorn said there is no risk and if something happened the City would get the parking ramp.

Mr. Gilmour said the risk to the City is covered by the guarantees in the Developer’s Agreement. In addition, there is a public benefit as the public can use it during the day and 200 parking spots will be open to the public evenings and weekends. He said if there is a parking charge for a large event, the City will receive 50 percent of the event revenue.

City Attorney Erik Johnson said this is a public-private partnership, which was fully contemplated in May 2016. He said this vote tonight is like a real estate closing. He said the bond will be repaid by the developer after the project is complete and the sale of the bonds provides the City with the funds to pay the bills as the ramp is constructed. He said RDO and DFI have provided corporate guarantees and if for whatever reason the project failed, there would be severe financial consequences for the developers, the City would take ownership of the ramp, which would provide more than $300,000.00 in revenue to the City. He said if there are any funds remaining from the bond, those funds could be moved to another project.

In response to a question from Commissioner Gehrig, asking what is the total incentive package for the Block 9 project, Mr. Gilmour said $16 million.
Commissioner Grindberg said it has been more than two years since the Commission approved this project. He said it looks like there will be an agreement to solve the transmission issue with Prairie Public Broadcasting and he appreciates everyone’s hard work. He said once this is approved there is no turning back.

In response to a question from Commissioner Grindberg asking for whatever reason this project ends up not happening, what happens to the money, Mr. Johnson said the arrangement is to sell the bonds, much like a construction agreement. He said there is a disbursement agreement and if at some point the construction ceases, the money could be used to finish the project and make it a public parking ramp.

In response to a question from Commissioner Grindberg, asking if there is no ramp, does that end up affecting the City’s credit rating, Ms. Heaton said should the project not get started, the bond proceeds will be available and the City can go ahead with the ramp project on their own if they decide to do that. She said the only way it would affect the City’s credit rating is if the investors are not made whole.

Commissioner Strand moved the Resolution entitled "Resolution Authorizing the Issuance of Taxable Annual Appropriation Bonds, Taxable Series 2018E (Block Nine Project), Approving Certain Actions, Awarding the Sale Thereof and Approving Forms of Documents Required in Connection Therewith,” and referred to as Attachment "E," be adopted and attached hereto.

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

Proposal from Shultz + Associates Architects to Provide Architectural Services for Phase 2 of the Police Department Design and Renovation Project at the Border States Electric Building Approved (RFQ18172) (Moved from the Consent Agenda):
Commissioner Grindberg said he wanted this Item moved to the Regular Agenda due to the fact that there should be discussion on sizeable change orders and he was intrigued on the status of this project.

Police Chief David Todd said the Border States Electric (BSE) Building project is being done in two phases. He said the first phase is complete and about 130 personnel in the field services unit have been working in the new space since December 2017. He said the second phase involves the renovation of the first floor, which BSE still occupies. He said BSE’s new building will be completed at the end of this year and those occupying the first floor will move out to the new building. He said the first floor project will include a public lobby, evidence processing and storage, Quartermaster area, interview rooms and other normal things a Police Department needs. He said when phase two is complete, investigations and administration will move to the building and the entire department will be under one roof. He said as far as funding for the renovations, a placeholder is in the Police Department’s 2019 budget request, estimated at about $2 million, and includes funds for furniture, fixtures and equipment. He said the Police Department will be buying the existing furnishings from BSE.

Deputy Police Chief Joe Anderson said seven architectural firms responded to the RFQ request and four were selected for interviews. He said the department could have worked with any of the four firms; however, Shultz + Associates was selected due to their qualifications and vision.

Commissioner Grindberg moved the proposal from Shultz + Associates Architects to Provide Architectural Services for Phase 2 of the Police Department Design and Renovation Project at the Border States Electric Building be approved.

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

Change Order No. 1 for Project No. FM-15-K1 Approved (Moved from the Consent Agenda):
City Engineer Brenda Derrig said the change order is for an increase of $176,500.00 for Project No. FM-15-K1, which is for the Rosewood Area Flood Risk Management project. She said 13 soil borings were done and it was determined at that time that 20 percent of the soil would be unsuitable; however, after actually doing the work it was determined to be much more than 20 percent. She said it was determined by the Geotechnical Engineer that suitable soils would have to be imported to assure the meeting of the design and Corps of Engineer’s standards for earthen levee construction. .

Commissioner Grindberg moved Change Order No. 1 for an increase of $176,500.00 for Project No. FM-15-K1 be approved.

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

Contract Amendment No. 2 with KLJ Engineering for Project No. FM-15-K0 Approved (Moved from the Consent Agenda):
City Engineer Brenda Derrig said this contract amendment in the amount of $142,061.00 covers four project administration items for which KLJ Engineering has or will incur during the performance of their duties. This is a project first bid in 2015, she said; however, due to acquisitions, it was delayed and the City was not able to start design work until last year. She said additional staff time is required for the two added pre-bid meetings held to enable contractors to understand the timing of the project components and allow for bidding related questions to be answered. She said the second item is for the redrafting of easements and related documents for a change in the project scope and the last item is related to the permitting required for the discovery of wetlands not initially identified in the project scope.

Commissioner Grindberg moved Contract Amendment No. 2 with KLJ Engineering in the amount of $142,061.00 for Project No. FM-15-K0 be approved.

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

Mayor Mahoney announced that the preliminary budget will be released on Wednesday. He said this is one of the hardest budgets he has done due to the fact that there were many requests for personnel and capital expenditures.

Commissioner Grindberg moved that the Board adjourn to 5:00 o’clock p.m., Monday, August 13, 2018.
Second by Piepkorn. All the Commissioners voted aye and the motion was declared carried.
The time at adjournment was 6:38 o’clock p.m.