Board of City Commissioners - May 21, 2018 Minutes

The Regular Meeting of the Board of City Commissioners of the City of Fargo, North Dakota, was held in the City Commission Room at City Hall at 5:00 o'clock p.m., Monday, May 21, 2018.
The Commissioners present or absent were as shown following:
Present: Gehrig, Grindberg, Piepkorn, Strand, Mahoney.
Absent: None.
Mayor Mahoney presiding.

The Mayor read a statement with the following information: the Health Department partnered with Jefferson Neighborhood Association to host a Community Café on May 13th, the Library’s Summer Reading Program starts on June 4th, the Library has a limited number of passes available for North Dakota State Parks, the Law Enforcement Torch Run for Special Olympics will be held June 7th, last week was Law Enforcement Officer Memorial Week which is a time to remember fallen law enforcement officers and their families and to take pride in the organization that protects and serves the public.

Order of Agenda Approved:
Commissioner Grindberg moved the Order of the Agenda be approved, moving Item No. “3” from the Consent Agenda to the beginning of the Regular Agenda and Item No. “20” from the Consent Agenda to the end of the Regular Agenda.

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

Minutes Approved:
Commissioner Gehrig moved that the Minutes of the Regular Meeting of the Board held on May 7, 2018 be approved as read.

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

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

1. Receive and file an Ordinance Amending Sections 25-3001, 25-3002 and 25-3006, and Repealing Sections 25-3003 and 25-3004 of Article 25-30 of Chapter 25 of the Fargo Municipal Code Relating to Alarm Systems.

2. 2nd reading and final adoption of an Ordinance Amending Sections 11-0805, 11-0806, 11-0807, 11-0819 and 11-0821 of Article 11-08 of Chapter 11 of the Fargo Municipal Code Relating to Environmental Nuisances; 1st reading, 5/7/18.

3. Draft Ordinance Amending Section 25-1506 of Article 2-15 of Chapter 25 of the Fargo Municipal Code Relating to Alcoholic Beverages and direct the City Attorney to finalize the terms of the Ordinance and to waive the 45-day application period stated in the Draft Ordinance for the Downtown Street Fair, provided the Ordinance is adopted by such time (moved to the Regular Agenda).

4. Master Attachment Agreement for Attachment of Wireless Communications Facilities to Certain City Owned Structures in the Public Right of Way with Mobilitie, LLC.

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

6. Site Authorizations for Games of Chance:
a. Plains Art Museum at Wild Bill’s Sports Saloon, Big Top Bingo, King Pin Casino (The Bowler) and Fargo Billiards and Gastropub.
b. VFW Post 762 at the VFW Club.
c. Northern Prairie Performing Arts at D’Woods at Ramada Inn, Windbreak Lounge and Space Aliens.
d. Team Makers Club, Inc. at Lucky’s 13 Pub, Holiday Inn, Frank’s Lounge, Fargodome, and Sanford Health Athletic Complex Scheels Center.

7. Applications for Games of Chance:
a. Chandler Hazel Ponce Benefit for a raffle on 6/10/18; Public Spirited Resolution.
b. United Way of Cass Clay for a raffle on 6/12/18.
c. Kringen Club Inc. for bingo 7/1/18 to 6/30/19.

8. Agreement with R.L. Engebretson Architects Fargo LLC for predesign work at the FARGODOME and an adjustment from the FARGODOME surplus fund to the FARGODOME capital budget, in the amount of $300,000.00, for funding of the work.

9. Notice of Grant Award with the ND Department of Health for the Ryan White Part B/Case Management (CFDA #93.917).

10. Contract Agreement with Little Tykes Daycare and Learning Center to provide a breastfeeding friendly environment for their employees.

11. Amendment to the Notice of Grant Award with the ND Department of Health for Title X Family Planning Program (CFDA #93.217).

12. Resolution Approving Schedule of Administrative Costs for Enforcement or Abatement of Tall Grass and Noxious Weed Nuisances – Fargo Municipal Code Article 11-08 (Attachment “A”).

13. Purchase of Service Agreement with Central Cass School District for nursing services for the 2018-2019 school year.

14. Bid award to Tricorne Audio Sound for a base bid of $55,148.00 and an addendum bid of $14,064.00 for sound masking system.

15. Library budget adjustment, in the amount of $95,048.00, for two additional Library Associate IIs and additional security coverage.

16. Certificate of Completion, Tax Increment Note and Private Placement Memorandum with EG & Co. Junction 9, LLC (Junction 9 Apartments).

17. Certificate of Completion, Tax Increment Note and Private Placement Memorandum with 710 Lofts, LLC (710 Lofts Apartments).

18. Authorize the Strategic Planning Director to submit a survey and application to designate the City of Fargo as a Main Street Community.

19. Direct City Attorney to draft language for the Municipal Code and/or policy to allow mobile vending units to operate in the right-of-way.

20. Agreement Regarding Extraterritorial Zoning Jurisdiction and Annexation City of West Fargo/City of Fargo (moved to the Regular Agenda).

21. Wildlife Management Program Report for 2017/2018 and Resolution authorizing program for 2018-2019 (Attachment “B”).

22. Change Orders for the City Hall Project:
a. No. 14 for an increase of $483.00 for mechanical construction contract.
b. No. 12 for an increase of $19,377.00 for the electrical construction contract.
c. No. 13 for an increase of $1,986.00 for the electrical construction contract.

23. Option for a private property owner to charge the cost of removing a diseased elm tree over a five-year period with interest to accrue on the unpaid balance at a rate of 5% per annum.

24. Memorandum of Understanding Supporting a Performance Based Planning Process with the NDDOT and the Fargo-Moorhead Metropolitan Council of Governments.

25. Change Orders for Project No. WA1301:
a. No. 17 for an increase of $269,252.00 for the general construction contract.
b. No. 15 for an increase of $43,354.02 for the mechanical construction contract.
c. No. 9 for an increase of $32,200.00 for the electrical construction contract.

26. Engineering Change Order for an increase of $26,700.75 with Wenck Associates for Project No. SW16-03.

27. Agreement of Terms and Conditions for Household Hazardous Waste Services with Clean Harbors Environmental Services, Inc. and Agreement of Terms and Conditions for Recycling Services with Green Lights Recycling, Inc.

28. Request for an additional 60-day leave of absence for Gerald Ripplinger.

29. Bid award in the amount of $1,825,915.00 to Excavating Inc. for Cell 19 & Scales Area Waste Excavation (Project No. SW18-01).

30. Bid advertisement for Valve Replacement at Water Tower Nos. 4 and 9.

31. Purchase Agreement with Sharon B. Rostad for property located at 4003 Copperfield Court South (Project No. MS-15-K0).

32. Contract Amendment No. 6 in the amount of $78,500.00 for Project No. FM-14-0.

33. Bid advertisement for Project No. FM-15-F2.

34. Bills in the amount of $9,966,649.00.

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

Agreement for Special Improvements with Grayland Holding Company LLC for Municipal Improvements in Grayland First Addition Approved (Improvement District No. BN-18-B1):
The Board received a communication from City Auditor Steve Sprague stating Grayland Holding Company LLC has requested municipal improvements in Grayland First Addition. He said Grayland Holding Company LLC has executed the agreement and will provide the necessary Letter of Credit.

Commissioner Grindberg moved the Agreement for Special Improvements with Grayland Holding Company LLC for Municipal Improvements in Grayland First Addition be approved.

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

Change Order No. 3 for a Time Extension for Improvement District No. BR-17-J1 Approved:
The Board received a communication from the Public Works Projects Evaluation Committee (PWPEC) stating due to adverse weather conditions the City requested the wear course be postponed in the spring of 2018 when temperatures were warmer. They said the contractor surpassed the substantial completion date by 20 days and has been charged a total of $24,000.00 to date in liquidated damages that will remain in effect. The change order is to modify the substantial and final completion dates, they said, with the substantial completion date for the wear course only recommended to be May 25, 2018 and the final completion to be June 8, 2018.

Commissioner Grindberg moved approval of Change Order No. 3 for a time extension to 6/8/18 for Improvement District No. BR-17-J1.

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

No Protests Received for Sanitary Sewer, Water Main, Storm Sewer, Paving, Street Lights and Incidentals Improvement District No. BN-18-B1:
The Statutory Resolution of Necessity for the construction of Sanitary Sewer, Water Main, Storm Sewer, Paving, Street Lights and Incidentals Improvement District No. BN-18-B1 in the City of Fargo, North Dakota, was duly published in the official newspaper for the City of Fargo, North Dakota on April 16 and 23, 2018 and no protests have been filed in the office of the City Auditor within the legal protest period.

Commissioner Grindberg moved that the Board declare that no protests have been filed to the construction of Sanitary Sewer, Water Main, Storm Sewer, Paving, Street Lights and Incidentals Improvement District No. BN-18-B1.

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

Bids Received for Sanitary Sewer, Water Main, Storm Sewer, Paving, Street Lights and Incidentals Improvement District No. BN-18-B1:
The bids for Sanitary Sewer, Water Main, Storm Sewer, Paving, Street Lights and Incidentals Improvement District No. BN-18-B1 in the City of Fargo, North Dakota were opened at 11:30 o'clock a.m., May 16, 2018 and the bids were found to be as follows:

Dakota Underground Company, Inc. Fargo, ND
Bid: $1,379,595.60

KPH, Inc. Fargo, ND
Bid: $1,693,214.80

Master Construction Company, Inc. Fargo, ND
Bid: $1,935,401.50

Contract for Sanitary Sewer, Water Main, Storm Sewer, Paving, Street Lights and Incidentals Improvement District No. BN-18-B1 Awarded to Dakota Underground Company, Inc. in the Amount of $1,379,595.60:
Commissioner Grindberg offered the following Resolution and moved its adoption:
WHEREAS, The City Engineer has prepared and filed a detailed statement of the estimated costs of Sanitary Sewer, Water Main, Storm Sewer, Paving, Street Lights and Incidentals Improvement District No. BN-18-B1; and
WHEREAS, The Board of City Commissioners of the City of Fargo has considered the bids received May 16, 2018 for Sanitary Sewer, Water Main, Storm Sewer, Paving, Street Lights and Incidentals Improvements Improvement District No. BN-18-B1 in the City of Fargo, North Dakota; and
WHEREAS, The City Engineer's tabulation of the bids received for Sanitary Sewer, Water Main, Storm Sewer, Paving, Street Lights and Incidentals Improvement District No. BN-18-B1 shows the bid of Dakota Underground Company, Inc. of Fargo, North Dakota, in the sum of $1,379,595.60 to be the lowest and best bid received.
NOW, THEREFORE, BE IT RESOLVED, That the Board of City Commissioners finds and declares the bid received from Dakota Underground Company, Inc. in the sum of $1,379,595.60 is the lowest and best bid received.
BE IT FURTHER RESOLVED, That the contract for Sanitary Sewer, Water Main, Storm Sewer, Paving, Street Lights and Incidentals Improvement District No. BN-18-B1 in the City of Fargo, North Dakota, be and the same is hereby awarded to Dakota Underground Company, Inc. for the sum of $1,379,595.60, subject to the supervision, inspection and approval of the City Engineer, and in accordance with the Plans and Specifications filed in the office of the City Auditor.

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

No Protests Received for Water Main Replacement, Street Reconstruction and Incidentals Improvement District No. BR-18-G2:
The Statutory Resolution of Necessity for the construction of Water Main Replacement, Street Reconstruction and Incidentals Improvement District No. BR-18-G2 in the City of Fargo, North Dakota, was duly published in the official newspaper for the City of Fargo, North Dakota on April 2 and 9, 2018 and no protests have been filed in the office of the City Auditor within the legal protest period.

Commissioner Grindberg moved that the Board declare that no protests have been filed to the construction of Water Main Replacement, Street Reconstruction and Incidentals Improvement District No. BR-18-G2.

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

Bids Received for Water Main Replacement, Street Reconstruction and Incidentals Improvement District No. BR-18-G2:
The bids for Water Main Replacement, Street Reconstruction and Incidentals Improvement District No. BR-18-G2 in the City of Fargo, North Dakota were opened at 11:30 o'clock a.m., May 16, 2018 and the bids were found to be as follows:

Dakota Underground Company, Inc. Fargo, ND
Bid: $1,512,947.20

KPH, Inc. Fargo, ND
Bid: $1,786,074.50

Master Construction Company, Inc. Fargo, ND
Bid: $1,924,797.00

Contract for Water Main Replacement, Street Reconstruction and Incidentals Improvement District No. BR-18-G2 Awarded to Dakota Underground Company, Inc. in the Amount of $1,512,947.20:
Commissioner Grindberg offered the following Resolution and moved its adoption:
WHEREAS, The City Engineer has prepared and filed a detailed statement of the estimated costs of Water Main Replacement, Street Reconstruction and Incidentals Improvement District No. BR-18-G2; and
WHEREAS, The Board of City Commissioners of the City of Fargo has considered the bids received May 16, 2018 for Water Main Replacement, Street Reconstruction and Incidentals Improvements Improvement District No. BR-18-G2 in the City of Fargo, North Dakota; and
WHEREAS, The City Engineer's tabulation of the bids received for Water Main Replacement, Street Reconstruction and Incidentals Improvement District No. BR-18-G2 shows the bid of Dakota Underground Company, Inc. of Fargo, North Dakota, in the sum of $1,512,947.20 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 Dakota Underground Company, Inc. in the sum of $1,512,947.20 is the lowest and best bid received.
BE IT FURTHER RESOLVED, That the contract for Water Main Replacement, Street Reconstruction and Incidentals Improvement District No. BR-18-G2 in the City of Fargo, North Dakota, be and the same is hereby awarded to Dakota Underground Company, Inc. for the sum of $1,512,947.20, subject to the supervision, inspection and approval of the City Engineer, and in accordance with the Plans and Specifications filed in the office of the City Auditor.

No Protests Received for Storm Sewer Lift Station Modifications and Incidentals Improvement District No. NR-18-A1:
The Statutory Resolution of Necessity for the construction of Storm Sewer Lift Station Modifications and Incidentals Improvement District No. NR-18-A1 in the City of Fargo, North Dakota, was duly published in the official newspaper for the City of Fargo, North Dakota on April 16 and 23, 2018 and no protests have been filed in the office of the City Auditor within the legal protest period.

Commissioner Grindberg moved that the Board declare that no protests have been filed to the construction of Storm Sewer Lift Station Modifications and Incidentals Improvement District No. NR-18-A1.

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

Bids Received for Storm Sewer Lift Station Modifications and Incidentals Improvement District No. NR-18-A1:
The bids for Storm Sewer Lift Station Modifications and Incidentals Improvement District No. NR-18-A1 in the City of Fargo, North Dakota were opened at 11:30 o'clock a.m., May 16, 2018, and the bids were found to be as follows:

CC Steel, LLC Fargo, ND
Bid: $424,725.00

Northern Plains Contracting, Inc. Wolverton, MN
Bid: $516,882.90

Key Contracting, Inc. Fargo, ND
Bid: $519,253.00

Contract for Storm Sewer Lift Station Modifications and Incidentals Improvement District No. NR-18-A1 Awarded to CC Steel, Inc. in the Amount of $424,725.00:
Commissioner Grindberg offered the following Resolution and moved its adoption:
WHEREAS, The City Engineer has prepared and filed a detailed statement of the estimated costs of Storm Sewer Lift Station Modifications and Incidentals Improvement District No. NR-18-A1; and
WHEREAS, The Board of City Commissioners of the City of Fargo has considered the bids received May 16, 2018 for Storm Sewer Lift Station Modifications and Incidentals Improvement District No. NR-18-A1 in the City of Fargo, North Dakota; and
WHEREAS, The City Engineer's tabulation of the bids received for Storm Sewer Lift Station Modifications and Incidentals Improvement District No. NR-18-A1 shows the bid of CC Steel, Inc. of Fargo, North Dakota, in the sum of $424,725.00 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 CC Steel, Inc. in the sum of $424,725.00 is the lowest and best bid received.
BE IT FURTHER RESOLVED, That the contract for Storm Sewer Lift Station Modifications and Incidentals Improvement District No. NR-18-A1 in the City of Fargo, North Dakota, be and the same is hereby awarded to CC Steel, Inc. for the sum of $424,725.00, subject to the supervision, inspection and approval of the City Engineer, and in accordance with the Plans and Specifications filed in the office of the City Auditor.

No Protests Received for Asphalt Wear Course and Incidentals Improvement District No. PN-18-A1:
The Statutory Resolution of Necessity for the construction of Asphalt Wear Course and Incidentals Improvement District No. PN-18-A1 in the City of Fargo, North Dakota, was duly published in the official newspaper for the City of Fargo, North Dakota on April 16 and 23, 2018 and no protests have been filed in the office of the City Auditor within the legal protest period.

Commissioner Grindberg moved that the Board declare that no protests have been filed to the construction of Asphalt Wear Course and Incidentals Improvement District No. PN-18-A1.

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

Bids Received for Asphalt Wear Course and Incidentals Improvement District No. PN-18-A1:
The bids for Asphalt Wear Course and Incidentals Improvement District No. PN-18-A1 in the City of Fargo, North Dakota were opened at 11:30 o'clock a.m., May 16, 2018 and the bids were found to be as follows:

FM Asphalt, LLC Moorhead, MN
Bid: $1,286,492.39

Northern Improvement Company Fargo, ND
Bid: $1,325,152.05

Border States Paving, Inc. Fargo, ND
Bid: $1,333,554.98

Central Specialties, Inc. Alexandria, MN
Bid: $1,671,809.75

Contract for Asphalt Wear Course and Incidentals Improvement District No. PN-18-A1 Awarded to FM Asphalt, LLC in the Amount of $1,286,492.39:
Commissioner Grindberg offered the following Resolution and moved its adoption:
WHEREAS, The City Engineer has prepared and filed a detailed statement of the estimated costs of Asphalt Wear Course and Incidentals Improvement District No. PN-18-A1; and
WHEREAS, The Board of City Commissioners of the City of Fargo has considered the bids received May 16, 2018 for Asphalt Wear Course and Incidentals Improvement District No. PN-18-A1 in the City of Fargo, North Dakota; and
WHEREAS, The City Engineer's tabulation of the bids received for Asphalt Wear Course and Incidentals Improvement District No. PN-18-A1 shows the bid of FM Asphalt, LLC of Moorhead, Minnesota, in the sum of $1,286,492.39 to be the lowest and best bid received.
NOW, THEREFORE, BE IT RESOLVED, That the Board of City Commissioners finds and declares the bid received from FM Asphalt, LLC in the sum of $1,286,492.39 is the lowest and best bid received.
BE IT FURTHER RESOLVED, That the contract for Asphalt Wear Course and Incidentals Improvement District No. PN-18-A1 in the City of Fargo, North Dakota, be and the same is hereby awarded to FM Asphalt, LLC for the sum of $1,286,492.39, subject to the supervision, inspection and approval of the City Engineer, and in accordance with the Plans and Specifications filed in the office of the City Auditor.

No Protests Received for Raised Pedestrian Crossing, Radius Improvements and Incidentals Improvement District No. TN-18-A1:
The Statutory Resolution of Necessity for the construction of Raised Pedestrian Crossing, Radius Improvements and Incidentals Improvement District No. TN-18-A1 in the City of Fargo, North Dakota, was duly published in the official newspaper for the City of Fargo, North Dakota on April 16 and 23, 2018 and no protests have been filed in the office of the City Auditor within the legal protest period.

Commissioner Grindberg moved that the Board declare that no protests have been filed to the construction of Raised Pedestrian Crossing, Radius Improvements and Incidentals Improvement District No. TN-18-A1.

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

Bids Received for Raised Pedestrian Crossing, Radius Improvements and Incidentals Improvement District No. TN-18-A1:
The bids for Raised Pedestrian Crossing, Radius Improvements and Incidentals Improvement District No. TN-18-A1 in the City of Fargo, North Dakota were opened at 11:30 o'clock a.m., May 16, 2018 and the bids were found to be as follows:

Northern Improvement Company Fargo, ND
Bid: $113,940.00

Opp Construction, LLC Fargo, ND
Bid: $133,688.25

Dakota Underground Company, Inc. Fargo, ND
Bid: $136,797.00

Key Contracting, Inc. Fargo, ND
Bid: $138,394.00

Contract for Raised Pedestrian Crossing, Radius Improvements and Incidentals Improvement District No. TN-18-A1 Awarded to Northern Improvement Company in the Amount of $113,940.00:
Commissioner Grindberg offered the following Resolution and moved its adoption:
WHEREAS, The City Engineer has prepared and filed a detailed statement of the estimated costs of Raised Pedestrian Crossing, Radius Improvements and Incidentals Improvement District No. TN-18-A1; and
WHEREAS, The Board of City Commissioners of the City of Fargo has considered the bids received May 16, 2018 for Raised Pedestrian Crossing, Radius Improvements and Incidentals Improvement District No. TN-18-A1 in the City of Fargo, North Dakota; and
WHEREAS, The City Engineer's tabulation of the bids received for Raised Pedestrian Crossing, Radius Improvements and Incidentals Improvement District No. TN-18-A1 shows the bid of Northern Improvement Company of Fargo, North Dakota, in the sum of $113,940.00 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 Northern Improvement Company in the sum of $113,940.00 is the lowest and best bid received.
BE IT FURTHER RESOLVED, That the contract for Raised Pedestrian Crossing, Radius Improvements and Incidentals Improvement District No. TN-18-A1 in the City of Fargo, North Dakota, be and the same is hereby awarded to Northern Improvement Company for the sum of $113,940.00, 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.

Drain Improvements and Incidentals Improvement District No. DN-18-A (Grayland Addition Area):
Commissioner Grindberg moved the following action be taken in connection with Drain Improvements and Incidentals Improvement District No. DN-18-A:

Adopt Resolution Creating Improvement District No. DN-18-A:
WHEREAS, The Board of City Commissioners of the City of Fargo, North Dakota, deems it expedient that Improvement District No. DN-18-A in the City of Fargo, North Dakota, be created

The unplatted lots within the NW ¼ of Section 5 TWP 138N, Range 49 west including the unplatted lots 5218 63rd Street South and 6832 52nd Avenue South, lying north of Grayland 1st Addition, east of the Sheyenne River, South of 52nd Avenue South, and west of 63rd Street South.

Grayland 1st Addition lying west of 63rd Street South, north of Deer Creek Addition and north of Ashwood 4th Addition, east of the Sheyenne River and south of the unplatted lots lying in the NW ¼ of Section 5 TWP 138N, Range 49 West.

COMPRISING:
Lots 1-26, Block 1.
Lots 1-11, Block 2.
Lots 1-18, Block 3.
Lots 1-10, Block 4.
All platted within Grayland First Addition.

The unplatted lots within the NW ¼ of Section 5 TWP 138N, Range 49 west including the unplatted lots 5218 63rd Street South and 6832 52nd Avenue South Fargo, North Dakota.

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

NOW, THEREFORE, BE IT RESOLVED, That Drain Improvements and Incidentals Improvement District No. DN-18-A in the City of Fargo, North Dakota, be and the same is hereby created.

Request Report and Estimate of Cost From the City Engineer for Improvement District No. DN-18-A:
Direct City Engineer to report as to the general nature, purpose and feasibility relative to the construction of Improvement District No. DN-18-A in the City of Fargo, North Dakota; as well as an estimate of the approximate cost of said construction. (The Engineer's estimate of cost is $1,927,240.65.)

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

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

Adopt Resolution Declaring Drain Improvements and Incidentals Necessary:
BE IT RESOLVED BY THE BOARD OF CITY COMMISSIONERS OF THE CITY OF FARGO:
That it be and is hereby declared necessary to construct Drain Improvements and Incidentals Improvement District No. DN-18-A in the City of Fargo, North Dakota, according to the Engineer’s Report for this district and the Plans and Specifications approved by the Board of City Commissioners of the City of Fargo, North Dakota, filed in the Office of the City Auditor, and open for public inspection. A map of the district is attached hereto and incorporated as if fully set forth herein.
That the entire cost of said improvement be specially assessed against the benefited property in said improvement district in amounts proportionate to and not exceeding the benefits to be derived by them respectively from said improvement.
Protests against the proposed Drain Improvements and Incidentals must be in writing and must be filed with the City Auditor's Office within 30 days after the First publication of this Resolution.
BE IT FURTHER RESOLVED, That the City Auditor's Office is hereby instructed to publish this Resolution, as required by law.

Direct City Auditor's Office to Call for Bids for Improvement District No. DN-18-A:
Direct City Auditor's Office to publish a Notice, as required by law, calling for bids for the construction of Improvement District No. DN-18-A in the City of Fargo, North Dakota.

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

Contract for Sanitary Sewer, Storm Sewer, Water Main, Paving Street Lighting and Incidentals Improvement District No. BN-18-A1 Approved:
Commissioner Grindberg moved approval of the Contract between the City of Fargo and KPH, Inc. for Sanitary Sewer, Storm Sewer, Water Main, Paving Street Lighting and Incidentals Improvement District No. BN-18-A1 in the City of Fargo, North Dakota.

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

Contract Bond for Sanitary Sewer, Storm Sewer, Water Main, Paving Street Lighting and Incidentals Improvement District No. BN-18-A1 Approved:
Commissioner Grindberg moved approval of the following described Contract Bond as to sufficiency:
Western Surety Company in the amount of $2,075,244.22, for Sanitary Sewer, Storm Sewer, Water Main, Paving Street Lighting and Incidentals Improvement District No. BN-18-A1 in the City of Fargo, North Dakota.

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

Contract for Water Main Replacement, Street Reconstruction and Incidentals Improvement District No. BR-18-G1 Approved:
Commissioner Grindberg moved approval of the Contract between the City of Fargo and KPH, Inc. for Water Main Replacement, Street Reconstruction and Incidentals Improvement District No. BR-18-G1 in the City of Fargo, North Dakota.

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

Contract Bond for Water Main Replacement, Street Reconstruction and Incidentals Improvement District No. BR-18-G1 Approved:
Commissioner Grindberg moved approval of the following described Contract Bond as to sufficiency:
Western Surety Company, in the amount of $2,285,292.32, for Water Main Replacement, Street Reconstruction and Incidentals Improvement District No. BR-18-G1 in the City of Fargo, North Dakota.

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

Contract for Concrete Pavement Rehabilitation and Incidentals Improvement District No. PR-18-C1 Approved:
Commissioner Grindberg moved approval of the Contract between the City of Fargo and Opp Construction, LLC for Concrete Pavement Rehabilitation and Incidentals Improvement District No. PR-18-C1 in the City of Fargo, North Dakota.

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

Contract Bond for Concrete Pavement Rehabilitation and Incidentals Improvement District No. PR-18-C1 Approved:
Commissioner Grindberg moved approval of the following described Contract Bond as to sufficiency:
Travelers Casualty and Surety Company of America, in the amount of $1,198,369.10, for Concrete Pavement Rehabilitation and Incidentals Improvement District No. PR-18-C1 in the City of Fargo, North Dakota.

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

Draft Ordinance Amending Section 25-1506, of Article 25-15 of Chapter 25 of the Fargo Municipal Code Relating to Alcoholic Beverages Approved: Request to Waive 45-Day Application Period for the Downtown Street Fair July 19-21, 2018 Approved (Moved from the Consent Agenda):
The Board received a communication from Assistant City Attorney Nancy Morris stating the Downtown Community Partnership (DCP) requested this permit concept at the February 21, 2018 Liquor Control Board meeting and the City Commission voted in favor of exploring a permit under limited circumstances in which alcohol may be present on public streets and sidewalks. There were discussion on further parameters of the contemplated permit, she said, and a detailed bullet point presentation was made available to the Liquor Control Board on April 18, 2018. At its meeting on May 16, 2018, the Liquor Control Board considered the terms of the proposed draft ordinance, she said, and voted to approve the DCP-E permit with the inclusion of a sunset provision of December 31, 2018.

Police Chief David Todd said this draft ordinance allows consumption outside during DCP (Downtown Community Partnership) functions. Speaking on behalf of Law Enforcement, he said, he is satisfied with the way the ordinance is laid out. He said Commissioner Piepkorn suggested having a sunset provision as a way of testing the waters, which he said he feels is a prudent idea.

DCP Board Chair Travis Koch said the DCP supports the amendment and will make sure it is done the right way. It is for specific special events and not be used for things such as pub crawls, he said, and will create a special experience for people visiting Downtown.

DCP President/CEO Melissa Rademacher said the DCP has been working on this since February and has partnered with the leaders Downtown. She said checklists have been put into place and the intent is to create a positive experience to drive traffic and awareness to businesses Downtown.
Commissioner Piepkorn said he would label this as a pilot project which at the end of the year can be reviewed and modifications made if needed. He said some retailers have concerns about parking and accessibility.

Commissioner Gehrig said he supports the concept; however, he does not support just doing things for Downtown. If an idea is good for Downtown, it is good for all and this separates the town, he said.

Chief Todd said there are Class “E” permits available anywhere in the City where a liquor license holder can serve alcohol at places other than a liquor establishment. He said there are more parameters and the experience would be a bit different.

Ms. Morris said this is setup for the DCP; however, that does not prevent another entity from asking for a permit to be issued in their name. What is presented now is a draft ordinance, she said, and the particular terms will come back for receive and file at the next meeting. She wanted to make the Board aware of the terms and time restrictions and recognizes that until it is actually approved, it is still pending. If this has approval to proceed, she said, it can be in place in time for the Street Fair.

Commissioner Piepkorn moved the draft Ordinance Amending Section 25-1506, of Article 25-15 of Chapter 25 of the Fargo Municipal Code relating to Alcoholic Beverages be approved, direct the City Attorney to finalize the terms of the Ordinance for presentation at the next Regular City Commission meeting, and the request to waive the 45-day application period for the Downtown Street Fair to be held on July 19-21, 2018, be approved, provided the Ordinance approving the DCP-E permit is adopted by such time.

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

Fargo Youth Initiative Report:
Community Development Assistant Planner Kara Gloe stated in 2012, the Board voted to create the Fargo Youth Initiative (FYI) with a mission to unite and empower the voice of Fargo youth through direct action and teamwork. She said the group has met regularly to discuss issues facing young people in our community.
FYI members Martha Denton, Nidhi Mahale, Saige Thurlow, Tate Fisher and Ed Shen shared a PowerPoint presentation outlining the activities and goals of FYI and reported the success of “Impact Fargo 2018.” Some results they shared from the Power Half Hour were that youth were 50/50 on wanting to stay in Fargo and some events youth are interested in are art shows and a drive-in movie theater. They said the group is looking for more equal representation with the schools, improving FYI, creating more events, to branch out more and increase involvement with city leaders. They said they are open to giving feedback.

Commissioner Piepkorn said Commissioners would be happy to participate and the group can just let them know how and when. Since the group suggested an art event, he said, a good place to start may be to attend an Arts and Culture Commission meeting.

Update on the Plastic Bag Task Force:
Coordinator of the Fargo-Moorhead Plastic Bag Task Force Laura Wessberg shared a video about statistics and the impacts of plastic bags to the environment. She said the Task Force has made progress in reducing plastic bag use and increasing recycling. She said the Boomerang Bag program furnishes stores with reusable bags. An upcoming event is a “Day without Plastic Bags” – June 5, 2018, she said, which is World Environment Day, and asked for the support of the City Commission for the event.

Commissioner Strand said several years ago he advanced a conversation about banning plastic bags; however, a ban locally would likely not be well received. A better path, he said, is to step-up awareness, educate and instill higher values to not contribute to the problems of the environment for a more incremental, sustainable long-term result.

Application to Transfer the Alcoholic Beverage License from Anderson Franchise Investment d/b/a Perla’s Fresh Mexican to North Star Hospitality LLC d/b/a 47 Degrees North Approved:
A Hearing had been set for April 23, 2018 to transfer the Class “FA” Alcoholic Beverage License from Anderson Franchise Investment d/b/a Perla’s Fresh Mexican to North Star Hospitality LLC d/b/a 47 Degrees North at 4281 45 Street South, notice of which had been duly published in the official newspaper for the City of Fargo.
At the April 23, 2018 meeting, the Hearing was continued to this day and hour.
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.

Police Chief David Todd said the small issue with the applicant that caused the slight delay has been worked out and approval is recommended.
Commissioner Gehrig said he does not support transferring licenses that are uncapped. He said a commodity is being created and the City is foregoing collecting tax dollars by doing transfers rather than returning the license back to the City and issuing it back out.

Commissioner Piepkorn moved the application be approved.

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

Application Filed by Drunken Noodle d/b/a Wasabi/Poke Bowl for an Alcoholic Beverage License Approved:
A Hearing had been set for this day and hour on the application filed by Drunken Noodle d/b/a Wasabi/Poke Bowl for a Class "F" Alcoholic Beverage License at 560 2nd 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.

Commissioner Strand moved the application be approved.

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

Application to Transfer the Alcoholic Beverage License from Mom’s Kitchen Inc. d/b/a Tailgator’s/Mom’s Kitchen to 1631 Hospitality LLC d/b/a Black Sheep Grill & Tavern Approved:
A Hearing had been set for this day and hour on an application to transfer the Class "FA" Alcoholic Beverage License from Mom’s Kitchen Inc. d/b/a Tailgator’s/Mom’s Kitchen to 1631 Hospitality LLC d/b/a Black Sheep Grill & Tavern at 635 2nd 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.

Commissioner Piepkorn moved the application be approved.

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

Hearing on Special Assessment List for Water Main Replacement, Force Main Construction, Street Reconstruction Improvement District No. BR-16-B Continued to June 18, 2018:
A Hearing had been set for October 9, 2017 on the special assessment list for the construction of Water Main Replacement, Force Main Construction, Street Reconstruction Improvement District No. BR-16-B in the City of Fargo, North Dakota, having been approved by the Special Assessment Commission on September 6, 2017.
At the October 9, 2017 Regular Meeting, the Hearing was continued to October 23, 2017.
At the October 23, 2017 Regular Meeting, the Hearing was continued to this day and hour.
Mayor Mahoney said since there is an item on the agenda that may change this special assessment list, he is proposing the Hearing be continued to June 18, 2018.

Commissioner Piepkorn moved the Hearing be continued to 5:15 o’clock p.m., Monday, June 18, 2018.

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.

First Reading of an Ordinance Amending Section 25-1509.2, of Article 25-15 of Chapter 25 of the Fargo Municipal Code Relating to Alcoholic Beverages:
Assistant City Attorney Nancy Morris said this Ordinance makes changes such as removing the need for a corroborating witness to determine if an establishment has engaged in overserving.

Commissioner Piepkorn moved first reading of an Ordinance Amending Section 25-1509.2, of Article 25-15 of Chapter 25 of the Fargo Municipal Code Relating to Alcoholic Beverages.

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

Discussion on the Hiring of a Consultant to Look at the City’s Liquor License Structure and Capping Policy:
Commissioner Gehrig said there has been a lot of discussion about liquor licenses in the City of Fargo and he has had questions about capping, locations, density and the complexity of the general liquor license structure. Cities of similar size do things differently, he said, and perhaps someone could give the City a better way forward. He said it is not a request to hire, simply a request for an RFP of what can be done and the Board does not have to take the proposal if they do not like it.

Commissioner Gehrig moved to seek an RFP to review the liquor license ordinances.
The motion died for lack of a second.

Police Chief David Todd said the Liquor Control Board had a subcommittee, consisting of members of the Liquor Control Board, members of the industry and interested members of the public. He said some changes were proposed; however, there did not seem to be a drive to make substantive change.

Commissioner Strand said he also hears concerns on numbers, locations and the density of bars and feels the topic needs to be vetted very well locally to find out what residents want, how they want it and in what capacity. He said he would prefer to start at the homefront with folks that have spoken up in the neighborhood association from Downtown and others interested and if needed, go forward with either an inside or outside consultant. While he appreciates Commissioner Gehrig bringing this forward, he said, he is just not on the same page right now.

Appointments the Native American Commission:
The Board received a communication from Mayor Mahoney recommending that Whitney Fear be appointed to the Native American Commission to fill the vacancy created by the resignation of Maylynne Warne who has moved out of the area. Ms. Warne’s term would have expired on June 30, 2018 and he is recommending she be appointed for a three-year term ending June 30, 2021. He also recommends the appointment of Chalsey Snyder to fill the vacancy created by the resignation of Francis Oakgrove whose term would have expired on June 30, 2020.

Commissioner Strand moved Whitney Fear be appointed to the Native American Commission for a three-year term ending June 30, 2021, and Chalsey Snyder be appointed to the Native American Commission for a term ending June 30, 2020.

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

Second Amendment to the Memorandum of Understanding Between the City of Oxbow and the Metro Flood Diversion Board of Authority, Cass County Joint Water Resource District, Cass County and the City of Fargo Approved:
Assistant City Administrator Michael Redlinger said the Diversion Authority Finance Committee and the Diversion Board of Authority approved this Oxbow MOU Amendment on April 25th and May 3rd, respectively. He said the agreement is before the Commission due to the requirement that North Dakota member entities consent to changes in the Oxbow MOU. He said the modifications are to the sales procedure and reassign risk and costs back to the Oxbow Golf and Country Club and the City of Oxbow. He said it also allows the City of Oxbow to take on more of a direct role in marketing and managing their lot sales process. He said 33 residential single-family lots remain in Oxbow to be sold, and this allows for a more direct management of the lots. It removes future change orders for the golf course, he said, and caps the contribution for the relocation of the Oxbow City Park. He said some lots will be reserved for people impacted in the new Plan B alignment who are not impacted today so they can relocate into Oxbow if they desire.

Commissioner Grindberg commended Mr. Redlinger, Kent Costin and Michael Montplaisir for their expertise and guidance in working through this and feels it is a positive step forward that Oxbow can take care of its own business.

Commissioner Strand said as far as the Diversion project, just the word Oxbow triggers a response for many folks and he appreciates that part of the MOU establishes a cap. It is good to be limiting change orders and the impact to the community, he said, and, if in the end, it truly limits this hemorrhaging, then he is for it. He said the real issue is protecting Fargo internally.

Commissioner Grindberg moved the Second Amendment to the Memorandum of Understanding between the City of Oxbow and the Metro Flood Diversion Board of Authority, Cass County Joint Water Resource District, Cass County and the City of Fargo be approved.

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

Interim Infrastructure Funding Policy Approved:
Commissioner Grindberg said he has heard from residents who appreciate the new infrastructure and modernizing existing parts of town; however, they do not understand the big difference between the amount they are assessed when compared to someone not very far away. He said he feels it would be prudent to revert to the 2013 policy of 70% provided by sales tax. Political rhetoric for the current campaign has brought this to a higher level, he said, and misinformation is being shared and he feels it is prudent to bring it forward now.

Division Engineer Brenda Derrig said when the request for the change to the Infrastructure Funding Policy came forward in 2015, there were several reasons; increased construction cost, decreased state funding and an increase in money moving toward flood projects. She said strides are being made in replacing older infrastructure and the desire is to continue with well designed streets. She said the 2015 policy changed it from a capped cost for water main replacement projects and street reconstruction projects, along with the capped costs for arterials, so for the locals it went from a 45-55 split to a 50-50 split. Besides going from capped costs to percentages, she said, categories were split out, which has been impactful for special assessments. She said reverting back to the 2013 policy would result in reducing projects; however, there would be the hope that an acceptable ground could be found in the future to help with future deterioration of infrastructure. She said the policy for spreading the benefit has not changed, just the funding associated with those benefits. As the funding is reduced, there will be a need to look at actually reducing costs, she stated.

Mayor Mahoney said he would like a committee formed in July, after the election, to look at changes. The best thing to do now is make an interim step, he said, going back to the 2013 policy. He said he feels arterials will have to be addressed in some manner. The infrastructure on north Broadway was a perfect storm, he said, it was everything at once and without the caps it went too high. He said in 2015, the Commissioners saw the changes as being 10-15% in specials; however, that did not take into account all the other changes.

Commissioner Piepkorn said this is a first step and the next step is to look at other options. He said it is impactful in north Fargo due to the fact that the arterials are so close together.

Commissioner Gehrig agreed this is a first step and hopes it does not end here. He said he has a hard time hearing there is not enough money in the special assessment fund when $7 million in 5 years has been diverted out of that fund. He said someone paying their specials thinks it benefits them; they do not think it is going to something else, or that $1.5 million per year is being moved out of the account. He said it was always said that the 1% interest was to cover circumstances when someone defaulted or cannot pay. He has heard double speak from the Mayor on the topic, he said, and it seems like the City is trying to confuse people. While this is a step in the right direction, he said, he thinks people are ready for this to end completely. He said even under this policy, someone can be assessed out of their home. He said to clarify public comments, he has not said the system is illegal; however, people are clearly outraged by it. The system will have to change, he said, people on North Broadway cannot be receiving a $20,000.00 assessment just because they are between two arterials.

In response to a question from Commissioner Gehrig about whether the contingency would be 1% or 1.5% when going back to the 2013 policy, and if engineering/administration fees will be capped at 30%, Mayor Mahoney said the contingency would stay at 1%, engineering fees are 11% and administration fees are 6%.

Commissioner Gehrig said it would do well for the citizens of Fargo to reduce the interest rate to .5% in the interim. He said 1% is obviously too much if money is being taken out of that account.

Mayor Mahoney said special assessments with the 1% fee are placed in an account the City cannot touch until after 25 years goes past. At the end of the special assessment term there is money available to the City, he said, which by state law can go to the general fund and is utilized to keep taxes down. He said the state recognizes it would be difficult to return anything to homeowners when they may have moved on. He said there is infrastructure to pay for and the Diversion is a major issue. Perhaps when it is done, he said, a half percent could be considered; however, he feels the risk is too high to do that now. He said the City still has to guarantee the rate of return to the bondholder and if people pay prior to the bond coming to fruition, the City makes up the difference. The City has a fair system, does an excellent job and follows sound financial policy, he stated. The City has not been dishonest with the public, he said, and each motion presented regarding special assessments clearly states a 1% fee is included. He said infrastructure has to be paid for, like it or not. This has has been to the Supreme Court numerous times, he said, and each time it is affirmed the City does this fairly.

In response to a request from Commissioner Strand for a definition of benefit, Special Assessments Coordinator Dan Eberhardt said benefit is described by Century Code and can be done on front foot, square foot or a combination. For example, he said, a water main project is typically done on a front foot basis, so if someone has a 50-foot lot, they pay based on 50 feet. Benefit is how that pipe is distributed amongst that Improvement District, he said, with a benefit assigned to the lot regardless of the value of the property or what is on it.

Commissioner Strand said defining benefits and how to apply them would be one of many topics he would vett. He said there are instances where appraisers or banks are considering specials or potential specials as a liability to the price of a house.

In response to a question from Commissioner Strand about whether Commissioner Grindberg’s proposed motion is retroactive, Commissioner Grindberg said the intent is to go back to 2013 practices, not retroactively.

Mr. Eberhardt said the City approved some projects that moved forward and have been spread. He said he feels the intent would be to take the 2013 policy, which was changed in 2015, and apply it in 2016 and 2017. He said staff would look at those 2016-2017 projects already assessed and if they qualify for a reduced rate, residents could be compensated.

Commissioner Strand said he has concerns that the general public would potentially be on the hook for several millions of dollars and it is important to know the consequences of any actions taken to avoid unintended consequences. He said he would like to know how the financial differences will be quantified when a shift is made from shared percentages. He said he is not in disagreement with the policy approach; however, he would like to know the financial implications.

Mayor Mahoney said financial responsibility shifts to the city with a variety of resources and financial tools that can be used, not only sales tax. There could be less projects or projects can be delayed, he said. Discussions in July can look at how to pay for services, he said, and some institutions have an infrastructure tax called a street tax or other ways to pay. The public needs to weigh in, he said, for now staff will look at it and bring it back.

Finance Director Kent Costin said annual audits are required due to municipal securities/bonds/debt instruments and federal grants. A local firm reviews all the City’s records in detail, including special assessment funds and special assessment projects, he said, and then an independent quality review is done by someone outside the region. The City has a longstanding record of very clean audits with 20 years of awards giving the best possible reports to the community, he said, and he is fortunate to have an experienced, qualified finance staff. In 2014, he said, they went to best business practices specifically of the Government Finance Officer’s Association in presenting the budget book and amounts being transferred are indicated in the debt service funds.

Commissioner Grindberg moved the 2015 Infrastructure Funding Policy approved by the City Commission on November 23, 2015 be rescinded and the 2013 Infrastructure Funding Policy originally approved by the City Commission on December 9, 2013 be reinstated.
Second by Piepkorn.

Ms. Derrig said the motion is in the right direction, the way things were split out in the 2015 policy had some large financial impacts that need to be evaluated.

Commissioner Piepkorn said good leadership is willing to make a change when something is not working. He said the City has a great team and realizing there is an issue makes it a good time to fix it. He said being on the same team means everyone has to work together. The City knows they have an issue, he said, and this is an opportunity to fix it. He said the worst thing to do is to start throwing everybody under the bus on your own team.

Commissioner Gehrig said he does not play on a team here, he works for the people of Fargo. He said he disagrees with what the City is doing and he hears people are angry that he is telling the people of Fargo where their dollars are going. This has become a number one issue in a city-wide election, he said, and would not have been an issue if everybody knew about it.

Commissioner Strand said in 2003, when the Infrastructure Funding Policies were modified, it was retroactive to 1999 due to the works in progress already being on the books and under way. He said at that time, the motion made that clear and Commissioner Grindberg’s motion does not state that. He said he is in favor of visiting aspects of the policy, including the 1% fee, the issue of security bonds, zoning, arterial routes and the definition of benefits.

In response to a question from Commissioner Strand asking if the Board could focus only on the 70-30 split versus 50-50, and make that retroactive, Mayor Mahoney said the best way to make an interim change is to go back to old policy. He said it is 70-30 plus caps, plus a variety of other things.

Ms. Derrig said it is difficult to take just one section and adjust it. For instance, she said, water main adjustments, which have been eluded to as being split 70-30, were not 70-30, there was a cap – a capped water main cost, a capped sewer cost and a capped paving cost which made it approximately 70-30; however, costs were capped. She said the best decision would be to go back to that tried and true policy, and where there is the knowledge there on how to implement it. She said if some things are hand-picked, the impact is unknown on perhaps other categories.

Commissioner Strand moved to amend the motion to include that it be retroactive to December 2015.

Second by Grindberg.

City Attorney Erik Johnson said he wants it clear that the motion is not to be construed to abrogate some obligation the City has to bondholders to the extent there is a project where special assessments have already been decided and those special assessments pledged to pay bonds. He said going back retroactively will have to be evaluated and bond counsel included to help figure out the proper wording since this is a fairly recent issue and will take some work.

In response to a question from Commissioner Piepkorn about how the City can go back and respread those specials, Mr. Eberhardt said projects are set up to the current policy; however, a recalculation is possible. It could be done, he said, and if specials were paid off there would be some kind of refund or if there is a current balance, that would be reduced.

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

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

Agreement Regarding Extraterritorial Zoning Jurisdiction and Annexation City of West Fargo/City of Fargo Approved (Moved from the Consent Agenda):
The Board received a communication from Strategic Planning and Research Director Jim Gilmour stating the current Annexation and Extraterritorial (ET) Zoning Agreement between the City of Fargo and the City of West Fargo is scheduled to expire at the end of 2018. He said representatives from West Fargo and Fargo have been discussing a new agreement and of particular focus was the area north of West Fargo and north of Fargo. He said the agreement sets future boundaries with an agreement not to annex into each other’s cities and allows for long-range planning for infrastructure, arterial roads and land use planning. He said there are some property owners in the West Fargo area who want to move into the Fargo area. He said there were discussions with Reile’s Acres so in the future, per this agreement, both sides of the 57th Street corridor would be within Fargo and both sides of the Sheyenne corridor would be within West Fargo.

In response to a question from Commissioner Strand about whether the boundary changes would affect school districts, Mr. Gilmour said it does not change the school districts at all.

Commissioner Piepkorn moved the Agreement Regarding Extraterritorial Zoning Jurisdiction and Annexation City of West Fargo/City of Fargo be approved.

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

Commissioner Piepkorn moved that the Board adjourn to 5:00 o’clock p.m., Monday, June 4, 2018.

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

The time at adjournment was 6:45 o’clock p.m.