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Board of City Commissioners - October 8, 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, October 8, 2018.
The Commissioners present or absent were as shown following:
Present: Gehrig (via conference call), Grindberg, Piepkorn, Strand, Mahoney.
Absent: None.
Mayor Mahoney presiding.

The Mayor read a statement with the following information: this week is Fire Prevention Week; Fargo Cass Public Health hosted Narcan training for community members; preparatory meetings are underway for the new permit and inspections software for the Inspections Department; the Library will host Gasper’s School of Dance and FM Ballet for a “Spooky Ballet and Storytime” session; John Cox from NDSU will speak at the Main Library on WW1 ideologies; National Fossil Day is October 20th; Police Chief David Todd spoke to criminal justice classes at MSUM Mankato; the Police Department put in significant casework leading to arrests for two recent homicides; today is Fargo’s Third Annual Indigenous Peoples Day and a variety of events are being held at Agassiz School, including a presentation to the City of flags from different tribes in North Dakota and former Cultural Planner Willard Yellowbird, Jr. will receive the Gladys Ray Award.

Order of Agenda Approved:
Commissioner Grindberg moved the Order of the Agenda be approved moving Item No. “3a” from the Consent Agenda to the Regular Agenda.
Second by Piepkorn. All the Commissioners voted aye and the motion was declared carried.

Minutes Approved:
Commissioner Strand moved that the amended minutes of the September 10, 2018 Regular Meeting of the Board and the Minutes of the Regular Meeting of the Board held on September 24, 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. Waive requirement to receive and file an Ordinance one week prior to 1st reading and 1st reading of an Ordinance Amending Section 23-0211 of Article 23-02 of Chapter 23 of the Fargo Municipal Code Relating to the Electrical Code.

2. 1st reading of the following Ordinances:
a. Amending Section 8-1009 of Article 8-10 of Chapter 8 of the Fargo Municipal Code Relating to Parking Regulations.
b. 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.

3. 2nd reading and final adoption of the following Ordinances; 1st reading 8/24/18:
a. Amending Section 8-1425, of Article 8-14 of Chapter 8 of the Fargo Municipal Code Relating to Bicycles (moved to the Regular Agenda).
b. Amending Section 01-0305, of Article 01-03 of Chapter 01 of the Fargo Municipal Code Relating to General Provisions.
c. Enacting Article 3-23 of Chapter 3 of the Fargo Municipal Code Relating to Collection of Utilities and Services.

4. Agreement (Hoffman Glass Pile) with Dak Real Estate Holdings, Inc. for removal of glass pile.

5. Easement Release Agreement with Southeast Cass Water Resource District, State of North Dakota, Oak Grove Foundation Properties, LLC and Park Christian School, Inc.

6. Receive and file Summons in the matter of James Peter Sabo vs. City of Fargo.

7. First Amendment to Roberts Common Condominium - Declaration Establishing a Plan of Condominium Ownership and Pet Area Access Easement Agreement with DFI Roberts LLC.

8. Applications for property tax exemptions for improvements made to buildings:
a. Ellen and Rodney Shafer, 215 8th Street South (5 year).
b. Mary Steussy, 301 20th Avenue North (5 year).
c. Paul J. and Ann L. Jarvis, 172 North Woodcrest Drive North (5 year).
d. Ryan and Krista French, 1226 Oak Street North (5 year).
e. Craig A. and Nichole L. Brandenburger, 1329 2nd Street North (5 year).
f. Nathan R. and Susan A. Brenneman, 3226 Bohnet Boulevard North (5 year).
g. Stephen J. and Nowelle Kisser, 1032 3rd Street North (5 year).

9. Applications for Games of Chance:
a. Lewis and Clark Elementary PTA for a raffle on 10/26/18.
b. Jefferson Elementary PTA for a raffle on 10/26/18.
c. Kappa Psi Pharmaceutical Fraternity for a raffle on 10/15/18.
d. Home Builders Care of Fargo-Moorhead Foundation for a raffle on 3/22/19.
e. Homeward Animal Shelter for a raffle on 10/19/18.
f. The Village Family Service Center for a raffle and raffle board on 11/16/18.
g. Eagles Elementary PTA for bingo on 10/16/18, 11/02/18, 2/1/19 and 4/5/19.

10. 2019 City Commission meeting schedule.

11. Bid award to Cole Papers and Dacotah Papers for food and beverage paper goods at the FARGODOME (RFP18241).

12. First Amendment to Agreement with Ovations Food Services, LP d/b/a Spectra Food Services and Hospitality.

13. Court Services Contract (Transfer of Municipal Cases for Jury Trial) with the State of North Dakota.

14. Notice of Grant Award with the ND Department of Health for the WIC Program (CFDA #10.557).

15. Notice of Grant Award with the ND Department of Health for Regional Public Health Network Implementation (CFDA #93.758).

16. Grant Agreement with Lutheran Social Services of North Dakota for nurse case management for tuberculosis infection.

17. Agreement for Services with Child Care Aware of North Dakota to provide training opportunities to licensed child care center staff to meet annual health code training requirements.

18. Notice of Grant Award with the ND Department of Health for increasing breastfeeding rates/reducing overweight and obesity program (CFDA #93.994).

19. Agreement for Services with the American Lung Association for tobacco prevention activities.

20. Agreement for Services with ShareHouse for tobacco prevention activities.

21. Agreement for Services with Southeast Human Service Center for tobacco prevention activities.

22. Benefit renewals, as outlined, effective January 1, 2019.

23. Set November 5, 2018 at 5:15 p.m. as the date and time for a hearing on a dangerous building at 826 10th Street North.

24. Agreement with Plains Art Museum to provide the Bring Her Home exhibit at the Main Library.

25. Bid award in the amount of $52,556.00 to Spaulding Mfg., Inc. for the purchase of one 4-ton hot patcher asphalt trailer (PBCSM1647C).

26. Request to extend the 2018/2019 snow hauling contracts with Master Construction, Diesel Dogs Trucking and Industrial Builders for the 2018/2019 snow season (RFP17012, RFP17013 and RFP17014).

27. Bid award in the amount of $263,936.00 to Spartan ERV for the purchase of one Spartan Fire Pumper (PBC18071).

28. Bid awards in the amount of $580,322.00 to Gast Construction Company, Inc.; $699,950.00 to Robert Gibb & Sons; and $534,830.00 to Rickard Electric, Inc. for the Landfill Gas Compression Plant Expansion (Project No. SW16-03).

29. ND Department of Transportation State Aid for Public Transit Agreement in the amount of $494,275.00 (Contract #38181487).

30. Section 5339 Bus and Bus Facilities Grant Program application.

31. Negative Final Balancing Change Order No. 3 in the amount of -$21,266.18 for Project No. FM-14-63.

32. Change Order No. 2 for an increase of $13,245.00 and a 13-day time extension for Project No. FM-15-F2.

33. Change Order No. 3 for an increase of $2,023.68 for Project No. FM-15-K1.

34. Selection of AE2S to perform the electrical design services for Project No. MS-18-J0.

35. Engineering Services Agreement Amendment No. 1 with Houston Engineering in the amount of $396,182.00 for Project No. FM-14-71.

36. Bid awards to Northern Plains Contracting for Contract No. 1 in the amount of $681,000.00 and Sun Electric, Inc. for Contract No. 2 in the amount of $36,000.00 for Project No. WA1753.

37. Sole Source Procurement with Hydro Klean for pipe cleaning at the Water Treatment Plant (SSP18163).

38. Change Order No. 20 for an increase of $181,730.00 for the general construction contract for Project No. WA1301.

39. Contracts and bonds for Project Nos. BP-00-43 and UR-18-A1.

40. Bills in the amount of $10,577,348.38.

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

Memorandum of Offer to Landowner – Temporary Easement (Construction) with West Fargo Investments, LLC Approved (Improvement District No. BN-19-A1):
The Board received a communication from Land Acquisition Specialist Shawn Bullinger stating a Memorandum of Offer to Landowner for a Temporary Easement with West Fargo Investments, LLC in association with Improvement District No. BN-19-A1 has been recommended for purchase by the City Engineering office. He said a final purchase price has been reached and authorization from the Board if requested to proceed with the purchase.
Commissioner Grindberg moved the Memorandum of Offer to
Landowner – Temporary Easement (Construction) with West Fargo Investments, LLC in association with Improvement District No. BN-19-A1 be approved.

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

Memorandum of Offer to Landowner – Temporary Easement (Construction) with Julie L. Vetter and Aaron D. Olson Approved (Improvement District No. BN-19-A1):
The Board received a communication from Land Acquisition Specialist Shawn Bullinger stating a Memorandum of Offer to Landowner for a Temporary Easement with Julie L. Vetter and Aaron D. Olson in association with Improvement District No. BN-19-A1 has been recommended for purchase by the City Engineering office. He said a final purchase price has been reached and authorization from the Board is requested to proceed with the purchase.
Commissioner Grindberg moved the Memorandum of Offer to
Landowner – Temporary Easement (Construction) with Julie L. Vetter and Aaron D. Olson in association with Improvement DistrictNo. BN-19-A1 be approved.

Second by Strand. On call of the roll Commissioners Grindberg, Strand, Gehrig, 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-17-A3 Approved:
Commissioner Grindberg moved approval of Change Order No. 1 for an increase of $145,301.00 for Improvement District No. BN-17-A3.

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

Negative Final Balancing Change Order No. 1 for Improvement District No. BR-16-E1 Approved:
Commissioner Grindberg moved approval of Negative Final Balancing Change Order No. 1 in the amount of -$10,932.93 for Improvement District No. BR-16-E1.

Second by Strand. On call of the roll Commissioners Grindberg, Strand, Gehrig, 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. PR-18-C1 Approved:
Commissioner Grindberg moved approval of Change Order No. 1 for an increase of $34,991.04 for Improvement District No. PR-18-C1.

Second by Strand. On call of the roll Commissioners Grindberg, Strand, Gehrig, 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. SL-17-B1 Approved:
Commissioner Grindberg moved approval of Change Order No. 1 for an increase of $30,375.00 for Improvement District No. SL-17-B1.

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

Time Extension for Improvement District No. BN-18-A1 Approved:
The Board received a communication from the Public Works Projects Evaluation Committee (PWPEC) stating that due to the project being split into two phases, revisions are requested for an interim completion date of October 15, 2018 to complete LOMR and street work with boundaries between 68th Avenue and 70th Avenue South and west of 15th Street. They said the revised substantial completion date will be November 1, 2018 and final completion date will be May 1, 2019.
Commissioner Grindberg moved approval of the time extension for final completion to May 1, 2019 for Improvement District No. BN-18-A1.

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

Utility Relocation for Improvement District No. DN-18-A1 Approved:
Commissioner Grindberg moved approval of the utility relocation and authorize payment to Cable One in the amount of $14,707.38 for Improvement District
No. DN-18-A1.

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

Early Entry of Improvement District No. BN-19-A1 to the 2019 CIP Approved:
The Board received a Report of Action from the Public Works Projects Evaluation Committee (PWPEC) stating Improvement District No. BN-19-A1 is for reconstruction of 52nd Avenue South from 45th to 63rd Street South. They said engineering services for the project were approved and included in the 2018 CIP.
Commissioner Grindberg moved early entry of Improvement District No.
BN-19-A1 to the 2019 CIP be approved.

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

Grading, Salvaged Base, P.C. Concrete Pavement, Hot Mix Asphalt, Storm Drain, Street Lighting, Traffic Signals, Pavement Marking, Shared Use Path, Sidewalk, Bridge, Water Main and Incidentals Improvement District No. BN-19-A (52nd Avenue South from 45th Street to 63rd Street South):
Commissioner Grindberg moved the following action be taken in connection with Grading, Salvaged Base, P.C. Concrete Pavement, Hot Mix Asphalt, Storm Drain, Street Lighting, Traffic Signals, Pavement Marking, Shared Use Path, Sidewalk, Bridge, Water Main and Incidentals Improvement District No. BN-19-A:

Adopt Resolution Creating Improvement District No. BN-19-A:
WHEREAS, The Board of City Commissioners of the City of Fargo, North Dakota, deems it expedient that Improvement District No. BN-19-A in the City of Fargo, North Dakota, be created

On 52nd Avenue South from 45th Street South to 63rd Street South.
On Drain 27 and 52nd Avenue South Bridge Crossings.

COMPRISING:
Bounded on the north at the 1/4 Section lines of Section 32 and Section 33, Township 139 North, Range 49 West.

Bounded on the south at the Municipal Boundary, 64th Avenue South and the 1/4 Section line of Section 4, Township 138 North, Range 49 West.

Bounded on the west at the Municipal Boundary and 1/4 Section line of Section 32, Township 139 North, Range 49 West, at 63rd Street South and Deer Creek Parkway South.

Bounded on the east at 45th Street South, the east section line of Section 4, Township 139 North, Range 49 West and the east boundary of Drain 27.

All of the foregoing is located in the City of Fargo, Cass County, North Dakota and its Extra-Territorial Area.

NOW, THEREFORE, BE IT RESOLVED, That Grading, Salvaged Base, P.C. Concrete Pavement, Hot Mix Asphalt, Storm Drain, Street Lighting, Traffic Signals, Pavement Marking, Shared Use Path, Sidewalk, Bridge, Water Main and Incidentals Improvement District No. BN-19-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. BN-19-A:
Direct City Engineer to report as to the general nature, purpose and feasibility relative to the construction of Improvement District No. BN-19-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 $18,261,085.00.)

Order Plans and Specifications for Improvement District No. BN-19-A:
Direct City Engineer to prepare Plans and Specifications for the construction of Improvement District No. BN-19-A in the City of Fargo, North Dakota.

Adopt Resolution Approving Plans and Specifications and Engineer's Report for Improvement District No. BN-19-A:
WHEREAS, The Board of City Commissioners of the City of Fargo, North Dakota, has created Improvement District No. BN-19-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. BN-19-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 Grading, Salvaged Base, P.C. Concrete Pavement, Hot Mix Asphalt, Storm Drain, Street Lighting, Traffic Signals, Pavement Marking, Shared Use Path, Sidewalk, Bridge, Water Main 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 Grading, Salvaged Base, P.C. Concrete Pavement, Hot Mix Asphalt, Storm Drain, Street Lighting, Traffic Signals, Pavement Markings, Shared Use Path, Sidewalk, Bridge, Water Main and Incidentals Improvement District No. BN-19-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 Grading, Salvaged Base, P.C. Concrete Pavement, Hot Mix Asphalt, Storm Drain, Street Lighting, Traffic Signals, Pavement Markings, Shared use Path, Sidewalk, Bridge, Water Main 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-19-A:
Direct City Auditor's Office to publish a Notice, as required by law, calling for bids for the construction of Improvement District No. BN-19-A in the City of Fargo, North Dakota.

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

City of Fargo Concurs with the Diversion Authority Bid Award for Flood Mitigation, Street Reconstruction and Incidentals Improvement District No. FM-14-8:
The Board received a communication from Division Engineer Nathan Boerboom stating bids were opened by the Diversion Authority for the City of Fargo Improvement District No. FM-14-8 (Diversion Authority Project No. WP42E), which consists of 2nd Street South Floodwall Construction, Storm Sewer Lift Station No. 1 Reconstruction, 2nd Street South Reconstruction and Incidentals. He said the low bidder was Industrial Builders, Inc. with a total bid of $8,769,445.23 and the Engineer’s estimate for this project was $9,709,061.40.
Commissioner Grindberg moved the City of Fargo concur with the Diversion Authority bid award for Flood Mitigation, Street Reconstruction and Incidentals Improvement District No. FM-14-8 to Industrial Builders, Inc. in the amount of $8,769,445.23.
Second by Strand. On call of the roll Commissioners Grindberg, Strand, Gehrig, 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 and Incidentals Improvement District No. UN-18-C1:
The Statutory Resolution of Necessity for the construction of Sanitary Sewer, Water Main, Storm Sewer and Incidentals Improvement District No. UN-18-C1 in the City of Fargo, North Dakota, was duly published in the official newspaper for the City of Fargo, North Dakota on September 17 and 24, 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 and Incidentals Improvement District No. UN-18-C1.

Second by Strand. On call of the roll Commissioners Grindberg, Strand, Gehrig, 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 and Incidentals Improvement District No. UN-18-C1:
The bids for Sanitary Sewer, Water Main, Storm Sewer and Incidentals Improvement District No. UN-18-C1 in the City of Fargo, North Dakota were opened at 11:30 o'clock a.m., October 3, 2018 and the bids were found to be as follows:

KPH, Inc. Fargo, ND
Bid: $1,457,460.25

Dakota Underground Company, Inc. Fargo, ND
Bid: $1,658,610.00

Dirt Dynamics Fargo, ND
Bid: $1,703,767.29

Peterson Companies Chisago City, MN
Bid: $1,849,169.00

R.L. Larson Excavating, Inc. St. Cloud, MN
Bid: $2,509,356.00

Contract for Sanitary Sewer, Water Main, Storm Sewer and Incidentals Improvement District No. UN-18-C1 Awarded to KPH, Inc. in the Amount of $1,457,460.25:
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 and Incidentals Improvement District No. UN-18-C1; and
WHEREAS, The Board of City Commissioners of the City of Fargo has considered the bids received October 3, 2018 for Sanitary Sewer, Water Main, Storm Sewer and Incidentals Improvement District No. UN-18-C1 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 and Incidentals Improvement District No. UN-18-C1 shows the bid of KPH, Inc. of Fargo, North Dakota, in the sum of $1,457,460.25 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 KPH, Inc. in the sum of $1,457,460.25 is the lowest and best bid received.
BE IT FURTHER RESOLVED, That the contract for Sanitary Sewer, Water Main, Storm Sewer and Incidentals Improvement District No. UN-18-C1 in the City of Fargo, North Dakota, be and the same is hereby awarded to KPH, Inc. for the sum of $1,457,460.25, 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 Strand. On the vote being taken on the question of the adoption of the Resolution Commissioners Grindberg, Strand, Gehrig, Piepkorn and Mahoney voted aye.
No Commissioner being absent and none voting nay, the Resolution was adopted.

Ordinance Enacting Article 39-01 of Chapter 39 of the Fargo Municipal Code Relating to Collection of Utilities and Services to be Placed on First Reading at the Next Regular Meeting of the Board:
The Board received a communication from Assistant City Attorney Nancy Morris stating a new Storm Water Service Charge Ordinance will provide a means for the collection of storm water fees from all parcels located within the City. She said the Ordinance presents the opportunity to collect fees for storm water utility services from residential customers at a flat rate and nonresidential properties based on the parcel size and the amount of impervious surface. The amount of the fee is not being presented for consideration at this time, she said. The Ordinance provides for the adoption of a Resolution, she said, to establish the rate to be charged by the City, which will be presented at the time of adoption of the Ordinance.

Division Engineer Jody Bertrand reviewed the public outreach that has been done to this point and more that is planned. He said information will be included with billings and there will be another public meeting held between the first and second reading of the Ordinance. He said work is being done on a web application allowing a search by address or parcel on a map to see fees and the amount of impervious surface for each site.

Commissioner Gehrig said it is important that the second reading be placed on the Regular Agenda when it comes before the Board to allow people the opportunity to speak.

In response to a question from Commissioner Strand about whether residents are being encouraged or incentivized to use more porous materials in parking lots, Mr. Bertrand said most information to date indicates the equipment needed to keep that type of pavement clean, such as sweepers or vacuum trucks to keep the material porous as it is designed to work, is not conducive to our area of the country where sand is continually put down. He said he does not envision a lot will be used; however, there is a credit system for going past normal storm water requirements for quickness of release or amount released.

Commissioner Piepkorn moved the Ordinance Enacting Article 39-01 of Chapter 39 of the Fargo Municipal Code Relating to Collection of Utilities and Services be received and filed and placed on first reading at the next Regular Meeting of the Board.

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.

State Water Commission Request for Reimbursement for FM Diversion Project Costs Approved:
The Board received a communication from Finance Director Kent Costin stating the State Water Commission is requesting $9,786.00 for cost reimbursement for the FM Area Flood Risk Management Project for August 2018. He said the request is for expenses related to projects excluding the Oxbow/Hickson/Bakke component of the project.
Commissioner Grindberg moved the cost reimbursement request in the amount of $9,786.00 for the FM Diversion Flood Project 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 Grindberg, Piepkorn, Gehrig, Strand and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

State Water Commission Request for Reimbursement for FM Diversion Project Costs Approved:
The Board received a communication from Finance Director Kent Costin stating the State Water Commission is requesting $6,314.00 for cost reimbursement for the FM Area Flood Risk Management Project for August 2018. He said the request is for expenses related to projects in the Oxbow/Hickson/Bakke component of the project.
Commissioner Grindberg moved the cost reimbursement request in the amount of $6,314.00 for the FM Diversion Flood Project for expenses related to projects in the Oxbow/Hickson/Bakke component of the project be approved.

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

Tracy Jordre Appointed to the Arts and Culture Commission:
The Board received a communication from Mayor Mahoney recommending that Tracy Jordre be appointed to the Arts and Culture Commission to fill the unexpired term of Michael J. Olsen who resigned.
Commissioner Strand moved Tracy Jordre be appointed to fill the unexpired term of Michael J. Olsen on the Arts and Culture Commission expiring on June 1, 2019.

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 Reading and Final Adoption of an Ordinance Amending Section 8-1425, of Article 8-14 of Chapter 8 of the Fargo Municipal Code Relating to Bicycles (Moved from the Consent Agenda):
Commissioner Strand said he asked this to be placed on the Regular Agenda to make certain the public has an opportunity to speak.
Commissioner Strand moved that the proposed Ordinance Amending Section 8-1425, of Article 8-14 of Chapter 8 of the Fargo Municipal Code Relating to Bicycles which was placed on its first reading September 24, 2018 be now placed on its second reading and a vote taken on the question of its final passage and adoption.

Second by Piepkorn. On call of the roll Commissioners Strand, Piepkorn, Grindberg, Gehrig and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.
There was unanimous consent to waive reading of the Ordinance in its entirety and no one was present to request that the Ordinance be read.

On the vote being taken on the question of the final passage and adoption of the Ordinance, Commissioners Strand, Piepkorn, Grindberg, Gehrig and Mahoney voted aye.
No Commissioner being absent and none voting nay, the Ordinance was duly passed and adopted.

Hearing on an Application Filed by Enclave Development LLC for Payment in Lieu of Tax Exemption (PILOT) Continued to November 5, 2018:
A Hearing had been set for August 27, 2018 on an application filed by Enclave Development for payment in lieu of property tax exemption for a project at 312 11th Street North, which the applicant will use in operation of 60 to 75 housing units and amenity space.
At the August 27, 2018 meeting, the Hearing was continued to September 10, 2018.
At the September 10, 2018 meeting, the Hearing was continued to this date and hour.
Commissioner Grindberg moved that the Hearing be continued to 5:15 o’clock p.m., Monday, November 5, 2018.

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

Text Amendment to Amend Section 20-0504.G of Article 20-05, of the Fargo Municipal Code (Land Development Code) Relating to the Measurement of Building Height Approved:
A Hearing had been held by the Fargo Planning Commission on September 4, 2018 for the purpose of considering a request for a Text Amendment to
Section 20-0504.G of Article 20-05 of the Fargo Municipal Code (Land Development Code) Relating to the Measurement of Building Height and the Fargo Planning Commission at such Hearing recommended to the Board of City Commissioners that the request be approved.
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.
There have been no written or verbal protests to the request and no one is present to protest thereto.

Current Planning Coordinator Donald Kress said the amendment codifies interpretations that are used by the staff. He said it clarifies how the height is to be measured for dormers with the exemptions for height limits.

Commissioner Grindberg moved the request be approved on the basis the proposed Text Amendment complies with Section 20-0904.E (1-3) of the Land Development Code.

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

First Reading of an Ordinance 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:
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 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 be placed on first reading.

Second by Piepkorn. On call of the roll Commissioners Grindberg, Piepkorn, Gehrig, Strand 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 (2127 58th Avenue South):
At a Hearing held on September 4, 2018 the Fargo Planning Commission recommended approval of a change in zoning from MR-1, Multi-Dwelling Residential to SR-5, 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 the applicants are proposing a zone change brought about from concerns regarding the special assessments on the property. Properties that are zoned MR, Multi-Dwelling are special assessed differently than those zoned SR, Single-Dwelling, he said, and there have been a few other cases lately, where residences that are effectively single-family residences at some point were zoned multi-family. He said these buildings meet the dimensional standards of the SR-5, Single-Dwelling zoning.

City Engineer Brenda Derrig said special assessment capped costs are different for an SR, Single-Dwelling zoning than for an MR, Multi-Dwelling zoning. Currently specials are not spread by the use, they are spread by zone, she stated; however, that could change. By zoning it to the actual use, she said, the arterial caps are allowed to be at the SR, Single-Dwelling level.

Commissioner Strand said the Special Assessments Taskforce is weighing all these issues now and it may be prudent to wait to see their recommendations.

Commissioner Grindberg said the Taskforce is dealing with micro and macro ideas. He said the larger macro ideas, which would have a larger impact on the notion of specials and costs, would require statutory changes in Bismarck. He said depending on what the recommendations of the Taskforce, are part of it could be tied in to change by the Legislature and/or what this Board decides.

Ms. Derrig said as a developer lays out and zones parcels there is an idea of what it is going to be; however, it happens when they apply for zoning permits that they do not always update it. For example, she said, if it is zoned MR, Multi-Dwelling and they build a single-family unit on it, this action adjusts the zoning for what is actually built on the parcel.

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, Gehrig, Strand 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 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 Lying in Legacy I 2nd 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, Gehrig, Strand and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Parcels of Land in Larkin Addition Rezoned (3949 37th Avenue South; 3555 and 3611 38th Street South; and 3552 and 3600 39th Street South):
At a Hearing held on May 1, 2018 the Fargo Planning Commission recommended approval of a change in zoning from AG, Agricultural to LI, Limited Industrial.
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 land is being acquired from the owner of the eastern portion of the subject property where a trucking sales and service business is located. He said the purpose of the subdivision is to accommodate the sale of the land and to redefine the lot lines between the two owners. He said it combines it into one block with four lots and makes the zoning consistent across the plat.

Brian Pattengale, Houston Engineering, said it looks complicated; however, it really is just cleaning up lot lines.

In response to a question from Commissioner Strand asking if there has been a deferral on this property in the past, Special Assessments Manager Dan Eberhardt said quite a few years ago there were deferrals in that area around 38th Street which have been removed and have been satisfied.

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 a Certain Parcel of Land Lying in Larkin 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 a Certain Parcel of Land Lying in Larkin 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 Larkin Addition:
Commissioner Grindberg offered the following Resolution and moved its adoption:
WHEREAS, A Plat has been filed in the office of the City Auditor entitled “Larkin Addition” containing 4 Lots, 1 Block and 22.32 acres of land more or less, located at 3949 37th Avenue South; 3555 and 3611 38th Street South; and 3552 and 3600 39th Street South; and
WHEREAS, A Hearing was held May 1, 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 September 24 and October 1, 2018 that a Hearing would be held in the City Commission Room, City Hall, Fargo, North Dakota at 5:15 p.m., October 8, 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 “Larkin 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.

Special Assessment List for Various Improvement Districts Approved:
A Hearing had been set for this day and hour on the special assessment list for the construction of the following Improvement Districts in the City of Fargo, North Dakota, all having been approved by the Special Assessment Commission on September 5, 2018; set the interest rate a 1% per annum over the net rate on bonds financing said projects:
Park District Assessment Improvement District No. 7151.
Park District Assessment Improvement District No. 7152.
Park District Assessment Improvement District No. 7153.
Park District Assessment Improvement District No. 7154.
P.C. Concrete Alley Paving Improvement District No. AN-17-A.
Sanitary Sewer, Water Main, Storm Sewer, Paving, Street Lights Improvement District No. BN-17-G.
Sanitary Sewer, Water Main, Storm Sewer, Asphalt Paving, Concrete Curb and Gutter, Street Lights Improvement District No. BN-17-H.
Water Main Replacement, Force Main Construction, Street Reconstruction Improvement District No. BR-16-C.
Water Main Replacement, Force Main Construction, Street Reconstruction Improvement District No. BR-17-B.
Flood Mitigation, Water Main Replacement, Force Main Construction, Street Reconstruction Improvement District No. FM-14-92.
Flood Mitigation, Water Main Replacement, Force Main Construction, Street Reconstruction Improvement District No. FM-14-93.
P.C. Concrete Pavement, Curb and Gutter, Storm Sewer, Sanitary Sewer, Water Main, Street Lighting Improvement District No. PN-15-A.
Asphalt Mill and Overlay Improvement District No. P.C. Concrete Pavement, Bridge Widening, Storm Sewer, Sanitary Sewer, Water Main, Street Lighting, Traffic Signals Improvement District No. PR-17-A.
PR-17-H.
Street Lighting and Incidentals Improvement District No. SL-16-A.
Street Lighting and Incidentals Improvement District No. SL-16-B.
Street Lighting and Incidentals Improvement District No. SL-17-E.
Street Lighting and Incidentals Improvement District No. SL-17-F.
Street Lighting and Incidentals Improvement District No. SL-17-G.
New Construction City Sidewalks Improvement District No. SN-17-A.

City Auditor Steve Sprague said the projects presented have been created, the districts established, projects constructed and inspected and final costs assembled, certified, spread and presented to the Special Assessments Commission, who determined the benefit of each project. He said this is to change them from costs held out that the City was looking to recover to being put onto special assessments. Most of the projects have already been bonded, he said, so the City has spent the money and is looking at the process of collecting it back from the property owners. He said the total amount for the projects is $26.8 million affecting 7,400 parcels. He said seven parties presented protests at the Special Assessments Commission hearing and three parties have expressed concerns about their specials since that time.

In response to a question from Commissioner Grindberg regarding the affect of the policy change earlier this year that reinstated the 2016 policy back to the 2013 policy, Mr. Eberhardt said that change reduced many special assessments significantly.

In response to a question from Commissioner Piepkorn about the Park District Assessments, Mr. Eberhardt said the Park District constructs the same way the City does. He said the Park District sends final information, including add-ons, then the City runs the process for them through the hearings, approval and collection.

Butler Machinery CFO Chris Gay said they filed an appeal in protest on the special assessments for Improvement District No. PR-17-A. He said they feel there are flaws related to the assessment. He said the original estimate was $107,000.00 and the actual was $272,000.00; over two and a half times the original, an extraordinarily large amount for the benefit. He feels the size of the Improvement District is too small and that the banding approach limits who is included, he said. The most noticeable difference is that Fleet Farm is not assessed, he said, although it is closer to the interchange and has retail traffic.

Charlotte Rush, Vogel Law Firm, said she appeared before the Board on behalf of Butler appealing the size of the Improvement District in February 2017. She said she does not feel the amount special assessed is appropriate considering the benefit to the property. She said the Improvement District is not large enough and Fleet Farm, which benefits, is not included at all and the assessed amount is much larger than the original estimate.

Mr. Eberhardt said the arterial bands are typically halfway to the next arterial and Fleet Farm is within the 40th Avenue band. He said when 40th Avenue is redone, Butler, Freightliner and Luther Ford will not participate in that assessment. He said for a commercial property and MR property, a lot is assessed on a square foot basis. He said for this band, when the policy reverted back to a cap, they are at 29.67 cents instead of 40 cents per square foot, and lower than the cap.

Commissioner Piepkorn said the street is certainly better constructed than it was and better able to handle the pounding it gets from heavy equipment.

City Engineer Brenda Derrig said the assessment district for Improvement District No. PR-17-A is actually larger than most. Since 32nd Avenue has no
north-east-west arterial it goes all the way to I-94, she said, so it is the whole section to the north. She said standard arterial bands are a half mile either direction. The new interchange at 32nd Avenue has really improved the traffic congestion in that area, she stated.

In response to a question from Mayor Mahoney about the process if Butler were to appeal, Mr. Eberhardt said an appeal would go to District Court.

Commissioner Gehrig said regarding the one percent fee over cost on this assessment list, residents are told it is to have a reserve due to the possibility of defaults. He said he asked Finance Director Kent Costin how many defaults there have been in Mr. Costin’s 30-year career and he said there have been none. He said one percent of the loan for this particular package is about $3.3 million, which is a 13.5 percent reserve. A half-percent reserve would be $1.6 million or 7 percent, he said, still a lot considering the fact there have been no defaults in over 30 years. The one percent is arbitrary, he said, and more analysis needs to be done for the policy makers to decide what percent of the amount being assessed should be held in reserve, not just a percent above the loan. He will not approve the one percent fee, he said; he would approve a half percent and nothing more.

Commissioner Gehrig moved the special assessment list be approved with the interest rate being set at 1/2 percent per annum.

Mayor Mahoney ruled Commissioner Gehrig’s motion out of order. He said the Board approved the $40 million special assessment bond in 2016 with the one percent fee and that financial transaction has been done. He said a new motion would be a reconsideration which cannot be done now.

City Attorney Erik Johnson said most of funds have been pledged towards bonds and the City is already committed to one percent over the true interest rate of the bonds. He said a motion to identify an interest rate less than that would be contrary to the promise already made on the bonds and in violation of the Resolution on the bonds.

Commissioner Gehrig said bondholders are not paid one percent over base cost, the bondholders are paid a percentage rate much like on a mortgage or a car. He said the City is holding a reserve of one percent for the assessments in a fund that has nothing to do with the bondholders. He said the City is charging the residents an extra one percent rate to be held in reserve and taxpayers are being charged one percent beyond what the City is paying back. He said that is legalese and garbage.

Commissioner Grindberg said Fargo is below the 1.5 percent markup allowed by statute and many communities in North Dakota assess the full 1.5 percent. He said he would not want to micromanage prior Commission action without hearing a result from the Special Assessments Taskforce and it would not be proper to consider a change tonight based on actions in 2016. He said the discussion is good to get the facts out that this is provided for by law and consistent with City policy, as well as good management of financial resources.

Commissioner Gehrig said earlier when the rate changed from 1.5 percent to 1 percent it was based on a decision made by the Mayor and the financial team. None of the Commissioners voted on it then, he said, so to say this is a complex change requiring a taskforce is not true. A 13.5 percent reserve is too much for a fund that has not seen a default, he said.

Mayor Mahoney said there is an opportunity going forward to make changes when a bond comes up; however, these bonds have been sold.

Commissioner Piepkorn moved that the special assessment list for the construction of the above listed Improvement Districts be and the same are hereby approved and confirmed and ordered filed in the office of the City Auditor, that the City Auditor's Office be instructed to proceed to collect the assessments in the manner provided by law and that the interest rate be set at 1 percent per annum over the net rate on bonds financing said projects.

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.

Commissioner Piepkorn moved that the Board adjourn to 5:00 o’clock p.m., Monday, October 22, 2018.

Second by Grindberg. All the Commissioners voted aye and the motion was declared carried.
The time at adjournment was 6:00 o’clock p.m.