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Board of City Commissioners - October 22, 2018

The Regular Meeting of the Board of City Commissioners of the City of Fargo, North Dakota, was held in the City Commission Room at City Hall at 5:00 o'clock p.m., Monday, October 22, 2018.
The Commissioners present or absent were as shown following:
Present: Gehrig (via conference call), Piepkorn, Strand, Mahoney.
Absent: Grindberg.
Mayor Mahoney presiding.

Members of Boy Scout Troop 229 led the Pledge of Allegiance.

Order of Agenda Approved:
Commissioner Piepkorn moved the Order of the Agenda be approved, moving Item No. “1b” from the Consent Agenda to the Regular Agenda.

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

Minutes Approved:
Commissioner Strand moved that the Minutes of the Regular Meeting of the Board held on October 8, 2018 be approved as read.

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

The Mayor read a message with the following information: Staff from the Gladys Ray Shelter and Veterans Drop-In Center received the Outstanding Service Provider Award from the FM Coalition for Homeless Persons; Fargo Cass Public Health has developed a Customer Satisfaction Survey to solicit feedback from guests, clients and visitors; P.S. Duffy, author of “The Cartographer of No Man’s Land,” will visit Concordia College on October 25th for a presentation to conclude the 2018 One Book, One Community reading project; upcoming programs at the Library include Crafternoons, Pumpkin Decorating Parties, a Murder Mystery event, Beginner Yoga, a Sewing 101 class and the final concert of the Jazz Into Fall concert series; the "Bring Her Home: Stolen Daughters of Turtle Island" art exhibit will be at the Downtown Main Library through November 25th; November is Native American Heritage Month and the Library will host a week-long festival and education series starting November 3rd; and the Community Trust Officer group has produced another video which will premiere at First Assembly Church on October 29th.

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

1.2nd reading and final adoption of the following Ordinances; 1st reading 10/8/18:
a. Amending Section 23-0211 of Article 23-02 of Chapter 23 of the Fargo Municipal Code Relating to the Electrical Code.
b. Amending Section 8-1009 of Article 8-10 of Chapter 8 of the Fargo Municipal Code Relating to Parking Regulations (moved to the Regular Agenda).
c. Amending Sections 38-0101, 38-0103, 38-0105, 38-0106 & 38-0107, of Article 38-01 of Chapter 38 of the Fargo Municipal Code Relating to Street Lighting and Traffic Control Devices System.
d. Amending Section 20-0504.G of Article 20-05 of Chapter 20 of the Fargo Municipal Code (Land Development Code) Relating to Measurements and Exemptions.
e. Rezoning Certain Parcels of Land Lying in Legacy I 2nd Addition to the City of Fargo, Cass County, North Dakota.
f. Rezoning a Certain Parcel of Land Lying in Larkin Addition to the City of Fargo, Cass County, North Dakota.

2. RFP for Professional Consultant Services for Government Relations and Legislative Advocacy.

3. Agreement with Walker Consultants to provide professional Engineering/Landscape Architecture services to the City of Fargo for the Block 9 Project.

4. Applications for property tax exemptions for improvements made to buildings:
a. Bridget N. and Bryan C. Hins, 1461 East Gateway Circle South (5 year).
b. Monica A. Killingsworth, 1902 13th Avenue South (5 year).
c. Janice Marie Knecht, 1539 14th Street South (5 year).
d. Collin R. and Rachel Consdorf, 3534 Par Street North (5 year).
e. Donald A. and Sandra E. Andersen, 2838 Southgate Drive South (5 year).
f. Terri M. Eckroth, 2711 12th Street South (5 year).
g. Donald C. and Jeaninne M. McAllister, 1761 8th Street South (5 year).
h. Harlan Herberholz, 1325 10th Street South (5 year).
i. Shannon K. Dahms, 1429 7th Street South (5 year).
j. Jennifer L. Gruss, 1514 7th Street South (5 year).
k. Ronald J. Borowicz and Douglas W. Krantz, 77 Prairiewood Drive South (5 year).
l. Scott W. and Shawna Davidson, 1513 8th Street South (5 year).
m. Jason R. and Elizabeth K. Haak, 1417 14th Street South (5 year).
n. Timothy L. Olson and Jo Marie Jensen, 157 Prairiewood Drive South (5 year).

5. Site Authorization for Northern Prairie Performing Arts at Southtown Pourhouse.

6. Applications for Games of Chance:
a. Centennial Elementary PTO for bingo from 10/26/18 to 5/1/19.
b. Knights of Columbus for a raffle on 2/3/19.
c. El Zagal Shrine Arab Patrol for a raffle on 3/8/19.
d. Fargo North Spartacas for a raffle on 12/1/18.
e. United Way of Cass-Clay for a raffle board on 11/9/18.
f. HeartSprings for a raffle on 12/8/18.
7. Receive and file General Fund – Budget to Actual through September 30, 2018 (unaudited).

8. Voluntary Collection Agreement for City of Fargo, ND Lodging Tax with AIRBNB, Inc.

9. Notice of Grant Award with the ND Department of Health to address chronic disease (CFDA #93.991).

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

11. Set December 3, 2018 at 5:15 p.m. as the date and time for a hearing on a dangerous building at 703 10th Avenue North.

12. Resolution Approving Plat of Oakcreek Second Addition (Attachment “A”).

13. Additional 2018 Certified Local Government Grant Award from the State Historical Society of ND.

14. Acceptance of the ND Department of Emergency Services FY 2018 State Homeland Security Grant (CFDA #97.067).

15. Acceptance of the Walmart Community Grant.

16. Resolution Prescribing Forestry Rates effective 1/1/19 (Attachment “B”).

17. Bid award to Butler Machinery in the amount of $518,000.00 for the purchase/lease of two motor graders with wings (RFP18301).

18. Meter Vault Installation Agreement with the City of West Fargo.

19. Bid award to Cushman Motor Company in the amount of $149,458.00 for an articulating utility tractor (PBCT652).

20. RFQ to renovate/rehab the GTC, pending approval by the State of ND Transit Division.

21. Request from Jefferson Lines to rent space at the GTC.

22. Change Order No. 1 for an increase of $980.00 for Project No. WA1752.

23. City Engineer or designee to evaluate advanced requests for Sunday work and rewording of the Contract.

24. Change Order No. 4 for an increase of $2,807.06 for Project No. FM-15-K1.

25. Negative Final Balancing Change Order No. 2 in the amount of -$24,796.35 for Project No. FM-14-61.

26. Resolution Authorizing Street Lighting and Traffic Control Devices System Fee (Attachment “C”).

27. Contract and bond for Project No. SW1603.

28. Bills in the amount of $9,023,769.59.

Second by Strand. On call of the roll Commissioners Piepkorn, Strand, Gehrig and Mahoney voted aye.
Absent and not voting: Commissioner Grindberg.
The motion was declared carried.

Memorandum of Offer to Landowner for Three Temporary Easements and One Permanent Easement with Rocking Horse Farm, LLC Approved (Improvement District No. BN-19-A1):
The Board received a communication from Land Acquisition Specialist Shawn Bullinger requesting authorization to proceed with the acquisition of three temporary easements and one permanent easement with Rocking Horse Farm, LLC in association with Improvement District No. BN-19-A1. He said all land acquisition procedures have been followed and the City Engineer’s office recommends the purchase.
Commissioner Piepkorn moved the Memorandum of Offer to Landowner for Three Temporary Easements and One Permanent Easement with Rocking Horse Farm, LLC in association with Improvement District No. BN-19-A1 be approved.

Second by Strand. On call of the roll Commissioners Piepkorn, Strand, Gehrig and Mahoney voted aye.
Absent and not voting: Commissioner Grindberg.
The motion was declared carried.

Memorandums of Understanding – Generator with Metro Flood Diversion Authority for Cost of Maintenance and Operation of Storm Sewer Lift Station Nos. 18 and 23 Approved (Improvement District Nos. FM-14-81 and FM-14-92):
The Board received a communication from the Public Works Projects Evaluation Committee (PWPEC) stating they received a communication from Diversion Division Engineer Nathan Boerboom regarding a Memorandum of Understanding (MOU) ¬– Generator between the City and the Diversion Authority to designate which party is responsible to complete the operation and maintenance on the generators and associated buildings, as well as the cost share between the two parties.
Commissioner Piepkorn moved the Memorandums of Understanding – Generator between the City and the Metro Flood Diversion Authority for Cost of Maintenance and Operation of Storm Sewer Lift Station Nos. 18 and 23 Improvement District Nos. FM-14-81 and FM-14-92 be approved.

Second by Strand. On call of the roll Commissioners Piepkorn, Strand, Gehrig and Mahoney voted aye.
Absent and not voting: Commissioner Grindberg.
The motion was declared carried.

Easement (Sanitary Sewer) with the ND State Board of Higher Education Approved (Improvement District No. UN-18-C1):
Commissioner Piepkorn moved the Easement (Sanitary Sewer) with the ND State Board of Higher Education on behalf of North Dakota State University of Agriculture and Applied Science in association with Improvement District No. UN-18-C1 be approved.

Second by Strand. On call of the roll Commissioners Piepkorn, Strand, Gehrig and Mahoney voted aye.
Absent and not voting: Commissioner Grindberg.
The motion was declared carried.

Change Order No. 2 for Improvement District No. PR-18-C1 Approved:
Commissioner Piepkorn moved approval of Change Order No. 2 for an increase of $47,618.50 for Improvement District No. PR-18-C1.

Second by Strand. On call of the roll Commissioners Piepkorn, Strand, Gehrig and Mahoney voted aye.
Absent and not voting: Commissioner Grindberg.
The motion was declared carried.

Contract for Utility Pot Holing on Main Avenue Awarded to MVM Contracting (Improvement District No. BR-18-B1):
The Board received a communication from the Public Works Projects Evaluation Committee (PWPEC) stating that due to potential utility conflict sites throughout the Main Avenue reconstruction corridor between 2nd Street and 11th Street, quotes were requested for utility pot holing with the low quote being $53,020.00 from MVM Contracting.
Commissioner Piepkorn moved the contract for utility pot holing for Improvement District No. BR-18-B1 in the amount of $53,020.00 be awarded to MVM Contracting.

Second by Strand. On call of the roll Commissioners Piepkorn, Strand, Gehrig and Mahoney voted aye.
Absent and not voting: Commissioner Grindberg.
The motion was declared carried.

Contract for Storm Sewer Lift Station, Storm Sewer and Incidentals Improvement District No. NN-18-A1 Approved:
Commissioner Piepkorn moved approval of the Contract between the City of Fargo and CC Steel, LLC for Storm Sewer Lift Station, Storm Sewer and Incidentals Improvement District No. NN-18-A1 in the City of Fargo, North Dakota.

Second by Strand. On call of the roll Commissioners Piepkorn, Strand, Gehrig and Mahoney voted aye.
Absent and not voting: Commissioner Grindberg.
The motion was declared carried.

Contract Bond for Storm Sewer Lift Station, Storm Sewer and Incidentals Improvement District No. NN-18-A1 Approved:
Commissioner Piepkorn moved approval of the following described Contract Bond as to sufficiency:
The Cincinnati Insurance Company, in the amount of $1,498,468.20, for Storm Sewer Lift Station, Storm Sewer and Incidentals Improvement District No. NN-18-A1 in the City of Fargo, North Dakota.

Second by Strand. On call of the roll Commissioners Piepkorn, Strand, Gehrig and Mahoney voted aye.
Absent and not voting: Commissioner Grindberg.
The motion was declared carried.

Contract for Sanitary Sewer, Water Main, Storm Sewer and Incidentals Improvement District No. UN-18-B1 Approved:
Commissioner Piepkorn moved approval of the Contract between the City of Fargo and Fox Underground, Inc. for Sanitary Sewer, Water Main, Storm Sewer and Incidentals Improvement District No. UN-18-B1 in the City of Fargo, North Dakota.

Second by Strand. On call of the roll Commissioners Piepkorn, Strand, Gehrig and Mahoney voted aye.
Absent and not voting: Commissioner Grindberg.
The motion was declared carried.

Contract Bond for Sanitary Sewer, Water Main, Storm Sewer and Incidentals Improvement District No. UN-18-B1 Approved:
Commissioner Piepkorn moved approval of the following described Contract Bond as to sufficiency:
Westchester Fire Insurance Company, in the amount of $662,801.75, for Sanitary Sewer, Water Main, Storm Sewer and Incidentals Improvement District No. UN-18-B1 in the City of Fargo, North Dakota.

Second by Strand. On call of the roll Commissioners Piepkorn, Strand, Gehrig and Mahoney voted aye.
Absent and not voting: Commissioner Grindberg.
The motion was declared carried.

First Reading of an Ordinance Enacting Article 39-01 of Chapter 39 of the Fargo Municipal Code Relating to Collection of Utilities and Services:
Storm Sewer Division Engineer Jody Bertrand said this Ordinance has to do with the collection of utilities and services fees for the purpose of paying for the construction, reconstruction, repair, improvements, maintenance, operation and use of the storm sewer system.

In response to a question from Commissioner Piepkorn, asking if there had been meetings with larger users, Mr. Bertrand said there have been meetings and more meetings are planned. He said many hours have been worked to get the appropriate people notified. He said flyers were also distributed through utility billing and he only received a few comments.
Commissioner Piepkorn moved first reading of an Ordinance Enacting Article 39-01 of Chapter 39 of the Fargo Municipal Code Relating to Collection of Utilities and Services.

Second by Strand. On call of the roll Commissioners Piepkorn, Strand, Gehrig and Mahoney voted aye.
Absent and not voting: Commissioner Grindberg.
The motion was declared carried.

State Water Commission Requests for Reimbursement for FM Diversion Project Costs Approved:
The Board received a communication from Finance Director Kent Costin stating the State Water Commission is requesting $433,313.00 for cost reimbursement for the FM Area Flood Risk Management Project for September 2018 for expenses related to projects in the Oxbow/Hickson/Bakke component of the project and $73,302.00 for expenses related to projects excluding the Oxbow/Hickson/Bakke component of the project.
Commissioner Strand moved the cost reimbursement request for the FM Area Flood Risk Management Project in the amount of $433,313.00 for September 2018 expenses related to projects in the Oxbow/Hickson/Bakke component of the project and $73,302.00 for expenses related to projects excluding the Oxbow/Hickson/Bakke component of the project be approved.

Second by Piepkorn. On call of the roll Commissioners Strand, Piepkorn, Gehrig and Mahoney voted aye.
Absent and not voting: Commissioner Grindberg.
The motion was declared carried.

Hearing on a Dangerous Building Located at 1101 7th Street North Continued to November 19, 2018:
A Hearing had been set for September 24, 2018 on a dangerous building located at 1101 7th Street North.

At the September 24, 2018 meeting, the Hearing was continued to this day and hour.
Commissioner Strand moved the Hearing be continued to 5:15 o’clock p.m. on Monday, November 19, 2018.

Second by Piepkorn. On call of the roll Commissioners Strand, Piepkorn, Gehrig and Mahoney voted aye.
Absent and not voting: Commissioner Grindberg.
The motion was declared carried.

Hearing on Renewal Plans for District Nos. 2018-01, 2018-02 and 2018-03 for the Redevelopment of Three Blocks in Beardsley’s Addition Continued to November 5, 2018:
A Hearing had been set for this day and hour regarding Renewal Plans for District Nos. 2018-01, 2018-02 and 2018-03 for the Redevelopment of Three Blocks in Beardsley’s Addition.
Commissioner Strand moved the Hearing be continued to 5:15 o’clock p.m., Monday, November 5, 2018.

Second by Piepkorn. On call of the roll Commissioners Strand, Piepkorn, Gehrig and Mahoney voted aye.
Absent and not voting: Commissioner Grindberg.
The motion was declared carried.

Second Reading of an Ordinance Amending Section 8-1009 of Article 8-10 of Chapter 8 of the Fargo Municipal Code Relating to Parking Regulations Delayed for Two Weeks (Moved from the Consent Agenda):
Commissioner Piepkorn said he asked that this item be moved from the Consent Agenda to the Regular Agenda due to the fact that he received phone calls from citizens who were concerned about the parking regulations in this Ordinance and were looking for the reasoning behind it.

Transportation Division Engineer Jeremy Gorden said this Ordinance came about in February when plans were approved for the 4th Street project, which runs from the water plant to the YMCA. He said part of the project removed on-street parking and bike lanes on 4th Street, which is still the plan; however, to help the residents who relied on 4th Street in the winter for parking, the plan was to allow parking on the Avenues from the river to 4th Street. He said the boundary will be extended to 5th Street to help the residents. He said parking on Avenues will be allowed seven days a week and in particular, residents can park six days on one side of the street and one day on the other side to allow for leaf and snow removal on the roads. He said he would like to delay the second reading of the ordinance for two weeks so the boundaries can be modified.

Kristy Fremstad, who owns rental property on 7th Avenue South, said she learned about the change recently and has since talked to Mr. Gorden and others at the City who understood the concerns and she is very happy with the response. She said it is scary to walk at night in the dark and before the next meeting, if needed, she would happy to be a part of the discussion.
Commissioner Piepkorn moved that the Second Reading and Final Adoption of an Ordinance Amending Section 8-1009 of Article 8-10 of Chapter 8 of the Fargo Municipal Code Relating to Parking Regulations, which was placed on its first reading October 8, 2018, be delayed for two weeks.

Second by Strand. On call of the roll Commissioners Piepkorn, Strand, Gehrig and Mahoney voted aye.
Absent and not voting: Commissioner Grindberg.
The motion was declared carried.

Application Filed by The Edge 2 for Payment in Lieu of Tax Exemption (PILOT) Approved:
A Hearing had been set for this day and hour on an application filed by The Edge 2 for payment in lieu of property tax (PILOT) for a multi-family apartment building at 1329 5th Avenue North.
No written protests have been filed for the attention of the Board.
The Board determined that no person is present at this Hearing to protest or offer objection thereto.

Director of Strategic Planning Jim Gilmour said the PILOT requested is for a new 48-unit low-income housing project. He said the applicant, Commonwealth Development Corporation, is also in the process of applying with the North Dakota Housing Finance Agency for Low Income Housing Tax Credit Funds and due to the fact that these funds are very competitive, it is helpful for the applicant to have local support for their project. He said the City’s policy has been to support PILOTs for low-income rental housing. He said the City has notified the school district and the county of this application and the school district is willing to participate; however, the county wants to negotiate. He said Commonwealth Development Corporation will pay property taxes on the land in addition to the in lieu payments. He said the exemption would start at about $25,000.00 and go up to about $33,000.00 over 15 years. He said those amounts would go up about $11,000.00 each year if the county does not participate and the project would not be feasible without the county’s participation.

Commissioner Piepkorn said this is a project the City wants to be involved in and supports. He said he wants to make low-income and affordable housing a priority and the City needs to encourage the county to be involved due to the fact that eight of the apartments in this project will be for the homeless.

Erin Anderson, Commonwealth Development Corporation, said she is excited about the opportunity to bring more low-income housing closer to Downtown. She said the first phase of The Edge Artists’ Flats is just about out of the ground and is 42 units of affordable housing. She said her company knows that more affordable housing is needed for families; therefore, The Edge 2 will have fifteen 3-bedroom units in addition to nine 1-bedroom units and twenty-four two-bedroom units. She said of the 48 units in The Edge 2, eight will be for those experiencing homelessness and Southeast North Dakota Community Action Agency (SENDCAA) will offer support services and case management. The average rent in the new building, she said, will be about $700.00 and the new building will include a community room, onsite management office, a fitness room and a support services room. She said the PILOT allows the company to create a financially feasible project and without the PILOT, she said, the company will have to start over with another plan. She said examples of residents who could live at The Edge 2 range from retirees to 20-something students, single working people and single parent families. She said The Edge 2 will further capture the workforce housing needs with some units offering up to 80 percent of county area median income. She said Commonwealth Development Corporation is the managing member and MetroPlains Management, North Dakota’s most experienced affordable housing property management company, will provide the property management.

Commissioner Gehrig said the cost of housing is inflated Downtown due to the fact that the City offers incentives that unnaturally lower the cost of building and makes it more profitable. He said the City then gives incentives to companies like this who want to offer low-income housing. He said a government program puts inflation in and another government program is used to counter balance that inflation. He said the simple solution is to stop incentives, the market will correct and react and there will be more affordable housing without more incentives.

Commissioner Strand said he appreciates Commmonwealth’s efforts to bring affordable housing Downtown. He said it is a critical need and he wished that the City could do more to help.

Ms. Anderson said 15 years is the required compliance period for affordability. She said in order to get the tax credit, they have to commit to 30 years of affordability. She said her corporation’s investor is only in it for 15 years, then they will exit; therefore, the investor wants to make sure the company has level expenses for 15 years. She said if expenses shift midway through, the investor requires the company to capitalize a reserve up front for the difference.

Commissioner Piepkorn said the location of this project is ideal as it is on a public transportation route, it is near a grocery store and it is in the Roosevelt School neighborhood. He said it is important to explain to the county why the exemption is for 15 years.

Mr. Gilmour said there is a committee at the county who will meet with the City’s Tax Exempt Review Committee to negotiate the in lieu payments.
Commissioner Strand moved that the application filed by The Edge 2 for a 15-year payment in lieu of tax exemption pursuant to Chapter 40-57.1, NDCC be approved as follows:

Year In Lieu Payment
1 $25,138.00
2 $25,640.00
3 $26,153.00
4 $26,676.00
5 $27,210.00
6 $27,754.00
7 $28,309.00
8 $28,875.00
9 $29,453.00
10 $30,042.00
11 $30,643.00
12 $31,255.00
13 $31,881.00
14 $32,418.00
15 $33,169.00

Second by Piepkorn. On call of the roll Commissioners Strand, Piepkorn and Mahoney voted aye.
Commissioner Gehrig voted nay.
Absent and not voting: Commissioner Grindberg.
The motion was declared carried.

Application Filed by HRP Fargo, LLC d/b/a The Tavern Grill for an Alcoholic Beverage License Approved:
A Hearing had been set for this day and hour on the application filed by HRP Fargo, LLC d/b/a The Tavern Grill for a Class "I" Alcoholic Beverage License at 3233 45th Street South, notice of which had been duly published in the official newspaper for the City of Fargo.
No written protest or objection to the granting of the application has been received or filed in the office of the City Auditor, and said application has been approved by the Police Department as to the character of the applicant.
The Board determined that no person is present at this Hearing to protest or offer objection to the granting of the application.

City Auditor Steve Sprague said the Class “I” Alcoholic Beverage License allows beer, wine and sparkling wine “on-sale” only and requires 65 percent food sales. He said The Tavern Grill currently operates seven full service restaurants in the Minneapolis area and they are attempting to expand their brand to Fargo.
Commissioner Piepkorn moved the application be approved.
Second by Strand. On call of the roll Commissioners Piepkorn, Strand, Gehrig and Mahoney voted aye.
Absent and not voting: Commissioner Grindberg.
The motion was declared carried.

Application to Transfer the Alcoholic Beverage License from Lakemode Liquors, Inc. d/b/a Lakemode Liquors to Hornbacher’s, Inc. d/b/a Hornbacher’s Wine & Spirits Approved:
A Hearing had been set for this day and hour on an application to transfer the Class "B-Limited" Alcoholic Beverage License from Lakemode Liquors, Inc. d/b/a Lakemode Liquors to Hornbacher’s, Inc. d/b/a Hornbacher’s Wine & Spirits at 4265 45th Street South, Suite 121 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 “B-Limited” Alcoholic Beverage License is for an “off-sale” liquor store that focuses on wines and specialty beers. He said the location will be in the strip mall attached to the grocery store.
Commissioner Strand moved the application be approved.

Second by Piepkorn. On call of the roll Commissioners Strand, Piepkorn, Gehrig and Mahoney voted aye.
Absent and not voting: Commissioner Grindberg.
The motion was declared carried.

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

Second by Strand. All the Commissioners present voted aye and the motion was declared carried.
The time at adjournment was 5:38 o’clock p.m.