Board of City Commissioners - April 8, 2019 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, April 8, 2019.
The Commissioners present or absent were as shown following:
Present: Gehrig, Grindberg, Piepkorn, Strand, Mahoney.
Absent: None.
Mayor Mahoney presiding.

The Mayor read a message with the following information: The Inspections Department will host an open house on April 11th to preview the Department’s new software system; this year’s theme for National Library Week is “Libraries = Strong Communities;” the City and Clay County hosted a plastic bag recycling challenge with 5th grade students and the winning school will receive a bench made from recycled materials; and Fargo has earned the Greenest City Award for the State of North Dakota from Insurify for having the most environmentally conscious living and driving practices.

Order of Agenda Approved:
Commissioner Grindberg moved the Order of the Agenda be approved.

Second by Gehrig. 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 March 25, 2019 and the Minutes of the Special Meeting of the Board held on April 3, 2019 be approved as read.

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

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

1. 1st reading of an Ordinance Repealing and Re-Enacting Articles 17-02, 17-04 and 17-05 and Enacting Articles 17-06 through 17-16 of Chapter 17 of the Fargo Municipal Code Relating to Sewers and Sewerage.

2. 2nd reading and final adoption of the following Ordinances; 1st reading on 3/25/19:
a. Rezoning Certain Parcels of Land Lying in Providence at Prairie Farms Addition, Fargo, Cass County, North Dakota.
b. Rezoning Certain Parcels of Land Lying in Airport First Addition to the City of Fargo, Cass County, North Dakota.

3. Direct the City Attorney to prepare amendments to Section 1-0305(A)(1) of Article 1-03 of Chapter 1, Section 4-0106 of Article 4-01 of Chapter 4 and Section 11-0814 of Article 11-08 of Chapter 11 to the Fargo Municipal Code.

4.Direct the City Attorney to review and update Article 16-0105 – Water Services and Connections Construction and Maintenance.

5. Direct the City Attorney to review and update Article 22-0301 – Water Services – Quality – Rules Regarding.

6. Agreement for Property Demolition with Philip H. Grotenhuis and Martha A. Grotenhuis, Trustees of the Philip H. Grotenhuis Revocable Living Trust for property located at 703 10th Avenue North.

7. Applications for property tax exemptions for improvements made to buildings:
a. Craig J. Kilber and Michelle R. Lawler, 1520 38 1/2 Avenue South (3 year).
b. Jeremy and Billie J. Carlson, 2865 Lilac Lane North (3 year).
c. Neil T. and Jane Gillund, 1225 37th Avenue South (5 year).
d. Oscar Flores-Ibarra and Joanne R. Boylan, 1214 5th Street North (5 year).
e. Barbi L. Franzen, 1127 8th Street North (5 year).
f. Mark S. Manzey, 1001 South Drive South (5 year).
g. Gregory S. and Jodee Eckart, 2820 Southgate Drive South (5 year).
h. Erik Berg, 1110 3rd Avenue North, Unit 701W (5 year).
i. Terry W. and Amy N. Hamilton, 338 19th Street North (5 year).

8. Applications for Games of Chance:
a. Fargo Moorhead Derby Girls for a raffle on 6/1/19.
b. Farm Rescue for a raffle on 12/31/19.
c. Rho Chi Pharmacy Honor Society for a raffle on 4/11/19.
d. River Keepers for a raffle on 6/10/19.

9. Memorandum of Offer to Landowner with Swanson Health Products, Inc. in the amount of $252,949.00 for Permanent and Temporary Easements (Project No. FM-14-71).

10. Amended Engineer’s Report for Project No. UR-19-A1.

11. Payment to Cass County Electric Cooperative in the amount of $69,001.64 for work associated with utility relocation (Project No. FM-14-71).

12. Bid awards to NorthStar Safety in the amount of $338,973.60 for Project No. TM-19-B1 and to S & S Landscaping Company, Inc. in the amount of $77,257.20 for Project No. TP-19-B1.

13. Bid advertisement for Project Nos. FM-14-1 (Phase 3) and FM-14-7.

14. Early redemption of the Refunding Improvement Refunding Bonds, Series 2010C totaling $1,335,000.00.

15. Refinancing and restructuring of terms on an existing US Bank, NA Loan, Series 2014A construction loan authorizing the Mayor and City Auditor to execute loan modification agreements.

16. Bid award to Tecta Americas Dakotas in the amount of $27,936.00 for Roof Replacement at Fire Station No. 4 (RFP19020).

17. Contract with the ND Department of Human Services for the mobile outreach program.

18. Agreement for Services with the ND Department of Health for Stepping On workshops.

19. Bid award to Cougar Tree Care, Inc. for the residential curbside brush chipping operations – 2019 with up to a four year negotiated extension (RFP19038).

20. Three-year research project partnership and Tree Growth Regulator Agreement with Rainbow Tree Company to research the impact of a tree growth regulator on City-owned trees.

21. Acceptance of the Sam’s Club Community Grant Program award in the amount of $1,000.00 to the Fargo Police Department.

22. Change Orders for Project No. SW 16-03 Phase II:
a. No. 3 for an increase of $1,734.00 for the mechanical contract.
b. No. 4 for an increase of $378.00 for the mechanical contract.
c. No. 5 for an increase of $3,617.00 for the mechanical contract.
d. No. 3 for an increase of $4,480.76 for the electrical contract.

23. Contracts and bonds for Project Nos. FE-19-G1, FE-19-G2, PR-19-A1 and PR-19-E1.

24. Bills in the amount of $13,690,379.31.

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

No Protests Received for Sanitary Sewer, Water Main, Storm Sewer, Paving, Street Lights and Incidentals Improvement District No. BN-19-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-19-B1 in the City of Fargo, North Dakota, was duly published in the official newspaper for the City of Fargo, North Dakota on March 4 and 11, 2019 and no protests have been filed in the office of the City Auditor within the legal protest period.
Commissioner Strand moved that the Board declare that no protests have been filed to the construction of Sanitary Sewer, Water Main, Storm Sewer, Paving, Street Lights and Incidentals Improvement District No. BN-19-B1.

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

Bids Received for Sanitary Sewer, Water Main, Storm Sewer, Paving, Street Lights and Incidentals Improvement District No. BN-19-B1:
The bids for Sanitary Sewer, Water Main, Storm Sewer, Paving, Street Lights and Incidentals Improvement District No. BN-19-B1 in the City of Fargo, North Dakota were opened at 11:30 o'clock a.m., April 3, 2019 and the bids were found to be as follows:

Dakota Underground Company, Inc. Fargo, ND
Bid: $790,790.38

Dirt Dynamics Fargo, ND
Bid: $798,908.32

Northern Improvement Company Fargo, ND
Bid: $810,534.30

FM Asphalt, LLC Moorhead, MN
Bid: $846,767.96

KPH, Inc. Fargo, ND
Bid: $919,347.32

Fox Underground, Inc. West Fargo, ND
Bid: $967,558.50

Contract for Sanitary Sewer, Water Main, Storm Sewer, Paving, Street Lights and Incidentals Improvement District No. BN-19-B1 Awarded to Dakota Underground Company, Inc. in the Amount of $790,790.38:
Commissioner Strand offered the following Resolution and moved its adoption:
WHEREAS, The City Engineer has prepared and filed a detailed statement of the estimated costs of Sanitary Sewer, Water Main, Storm Sewer, Paving, Street Lights and Incidentals Improvement District No. BN-19-B1; and
WHEREAS, The Board of City Commissioners of the City of Fargo has considered the bids received April 3, 2019 for Sanitary Sewer, Water Main, Storm Sewer, Paving, Street Lights and Incidentals Improvement District No. BN-19-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-19-B1 shows the bid of Dakota Underground Company, Inc. of Fargo, North Dakota, in the sum of $790,790.38 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 $790,790.38 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-19-B1 in the City of Fargo, North Dakota, be and the same is hereby awarded to Dakota Underground Company, Inc. for the sum of $790,790.38, subject to the supervision, inspection and approval of the City Engineer, and in accordance with the Plans and Specifications filed in the office of the City Auditor.

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

No Protests Received for Sanitary Sewer, Storm Sewer, Water Main, Paving, Street Lighting and Incidentals Improvement District No. BN-19-E1:
The Statutory Resolution of Necessity for the construction of Sanitary Sewer, Storm Sewer, Water Main, Paving, Street Lighting and Incidentals Improvement District No. BN-19-E1 in the City of Fargo, North Dakota, was duly published in the official newspaper for the City of Fargo, North Dakota on March 4 and 11, 2019 and no protests have been filed in the office of the City Auditor within the legal protest period.
Commissioner Strand moved that the Board declare that no protests have been filed to the construction of Sanitary Sewer, Storm Sewer, Water Main, Paving, Street Lighting and Incidentals Improvement District No. BN-19-E1.

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

Bids Received for Sanitary Sewer, Storm Sewer, Water Main, Paving, Street Lighting and Incidentals Improvement District No. BN-19-E1:
The bids for Sanitary Sewer, Storm Sewer, Water Main, Paving, Street Lighting and Incidentals Improvement District No. BN-19-E1 in the City of Fargo, North Dakota were opened at 11:30 o'clock a.m., April 3, 2019 and the bids were found to be as follows:

Dakota Underground Company, Inc. Fargo, ND
Bid: $524,783.70

Northern Improvement Company Fargo, ND
Bid: $533,096.58

Fox Underground, Inc. West Fargo, ND
Bid: $551,651.75

KPH, Inc. Fargo, ND
Bid: $575,930.00

Contract for Sanitary Sewer, Storm Sewer, Water Main, Paving, Street Lighting and Incidentals Improvement District No. BN-19-E1 Awarded to Dakota Underground Company, Inc. in the Amount of $524,783.70:
Commissioner Strand offered the following Resolution and moved its adoption:
WHEREAS, The City Engineer has prepared and filed a detailed statement of the estimated costs of Sanitary Sewer, Storm Sewer, Water Main, Paving, Street Lighting and Incidentals Improvement District No. BN-19-E1; and
WHEREAS, The Board of City Commissioners of the City of Fargo has considered the bids received April 3, 2019 for Sanitary Sewer, Storm Sewer, Water Main, Paving, Street Lighting and Incidentals Improvement District No. BN-19-E1 in the City of Fargo, North Dakota; and
WHEREAS, The City Engineer's tabulation of the bids received for Sanitary Sewer, Storm Sewer, Water Main, Paving, Street Lighting and Incidentals Improvement District No. BN-19-E1 shows the bid of Dakota Underground Company, Inc. of Fargo, North Dakota, in the sum of $524,783.70 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 $524,783.70 is the lowest and best bid received.
BE IT FURTHER RESOLVED, That the contract for Sanitary Sewer, Storm Sewer, Water Main, Paving, Street Lighting and Incidentals Improvement District No. BN-19-E1 in the City of Fargo, North Dakota, be and the same is hereby awarded to Dakota Underground Company, Inc. for the sum of $524,783.70, 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 P.C. Concrete Paving, Concrete Curb and Gutter, Asphalt Pavement and Incidentals Improvement District No. PN-18-B1:
The Statutory Resolution of Necessity for the construction of P.C. Concrete Paving, Concrete Curb and Gutter, Asphalt Pavement and Incidentals Improvement District No. PN-18-B1 in the City of Fargo, North Dakota, was duly published in the official newspaper for the City of Fargo, North Dakota on March 4 and 11, 2019 and no protests have been filed in the office of the City Auditor within the legal protest period.
Commissioner Strand moved that the Board declare that no protests have been filed to the construction of P.C. Concrete Paving, Concrete Curb and Gutter, Asphalt Pavement and Incidentals Improvement District No. PN-18-B1.
Second by Gehrig. On call of the roll Commissioners Strand, Gehrig, Grindberg, Piepkorn and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Bids Received for P.C. Concrete Paving, Concrete Curb and Gutter, Asphalt Pavement and Incidentals Improvement District No. PN-18-B1:
The bids for P.C. Concrete Paving, Concrete Curb and Gutter, Asphalt Pavement and Incidentals Improvement District No. PN-18-B1 in the City of Fargo, North Dakota were opened at 11:30 o'clock a.m., April 3, 2019 and the bids were found to be as follows:

Dakota Underground Company, Inc. Fargo, ND
Bid: $2,802,227.40

All Finish Concrete, Inc. West Fargo, ND
Bid: $2,838,071.75

Contract for P.C. Concrete Paving, Concrete Curb and Gutter, Asphalt Pavement and Incidentals Improvement District No. PN-18-B1 Awarded to Dakota Underground Company, Inc. in the Amount of $2,802,227.40:
Commissioner Strand offered the following Resolution and moved its adoption:
WHEREAS, The City Engineer has prepared and filed a detailed statement of the estimated costs of P.C. Concrete Paving, Concrete Curb and Gutter, Asphalt Pavement and Incidentals Improvement District No. PN-18-B1; and
WHEREAS, The Board of City Commissioners of the City of Fargo has considered the bids received April 3, 2019 for P.C. Concrete Paving, Concrete Curb and Gutter, Asphalt Pavement and Incidentals Improvement District No. PN-18-B1 in the City of Fargo, North Dakota; and
WHEREAS, The City Engineer's tabulation of the bids received for P.C. Concrete Paving, Concrete Curb and Gutter, Asphalt Pavement and Incidentals Improvement District No. PN-18-B1 shows the bid of Dakota Underground Company, Inc. of Fargo, North Dakota, in the sum of $2,802,227.40 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 $2,802,227.40 is the lowest and best bid received.
BE IT FURTHER RESOLVED, That the contract for P.C. Concrete Paving, Concrete Curb and Gutter, Asphalt Pavement and Incidentals Improvement District No. PN-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 $2,802,227.40, subject to the supervision, inspection and approval of the City Engineer, and in accordance with the Plans and Specifications filed in the office of the City Auditor.
Second by Gehrig. On the vote being taken on the question of the adoption of the Resolution Commissioners Strand, Gehrig, Grindberg, Piepkorn and Mahoney voted aye.
No Commissioner being absent and none voting nay, the Resolution was adopted.
No Protests Received for Asphalt Mill and Overlay and Incidentals Improvement District No. PR-19-F1:
The Statutory Resolution of Necessity for the construction of Asphalt Mill and Overlay and Incidentals Improvement District No. PR-19-F1 in the City of Fargo, North Dakota, was duly published in the official newspaper for the City of Fargo, North Dakota on March 4 and 11, 2019 and no protests have been filed in the office of the City Auditor within the legal protest period.
Commissioner Strand moved that the Board declare that no protests have been filed to the construction of Asphalt Mill and Overlay and Incidentals Improvement District No. PR-19-F1.

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

Bids Received for Asphalt Mill and Overlay and Incidentals Improvement District No. PR-19-F1:
The bids for Asphalt Mill and Overlay and Incidentals Improvement District No. PR-19-F1 in the City of Fargo, North Dakota were opened at 11:30 o'clock a.m., April 3, 2019 and the bids were found to be as follows:

FM Asphalt, LLC Moorhead, MN
Bid: $1,551,626.10

Northern Improvement Company Fargo, ND
Bid: $1,567,859.45

Central Specialties, Inc. Alexandria, MN
Bid: $1,698,510.65

Border States Paving, Inc. Fargo, ND
Bid: $1,765,713.70

Contract for Asphalt Mill and Overlay and Incidentals Improvement District No. PR-19-F1 Awarded to FM Asphalt, LLC in the Amount of $1,551,626.10:
Commissioner Strand offered the following Resolution and moved its adoption:
WHEREAS, The City Engineer has prepared and filed a detailed statement of the estimated costs of Asphalt Mill and Overlay and Incidentals Improvement District
No. PR-19-F1; and
WHEREAS, The Board of City Commissioners of the City of Fargo has considered the bids received April 3, 2019 for Asphalt Mill and Overlay and Incidentals Improvement District No. PR-19-F1 in the City of Fargo, North Dakota; and
WHEREAS, The City Engineer's tabulation of the bids received for Asphalt Mill and Overlay and Incidentals Improvement District No. PR-19-F1 shows the bid of FM Asphalt, LLC of Moorhead, Minnesota, in the sum of $1,551,626.10 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 $1,551,626.10 is the lowest and best bid received.
BE IT FURTHER RESOLVED, That the contract for Asphalt Mill and Overlay and Incidentals Improvement District No. PR-19-F1 in the City of Fargo, North Dakota, be and the same is hereby awarded to FM Asphalt, LLC for the sum of $1,551,626.10, 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.

State Water Commission Request for Cost Reimbursement for FM Diversion Project Costs Approved:
The Board received a communication from Finance Director Kent Costin stating the State Water Commission is requesting $229,746.00 for cost reimbursement for the FM Area Flood Risk Management Project for February 2019. 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 $229,746.00 for the FM Diversion Flood Project for expenses related to projects in the Oxbow/Hickson/Bakke component of the project be approved.

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

State Water Commission Request for Cost Reimbursement for FM Diversion Project Costs Approved:
The Board received a communication from Finance Director Kent Costin stating the State Water Commission is requesting $558,592.20 for cost reimbursement for the FM Area Flood Risk Management Project for February 2019. He said the request is for expenses related to projects excluding the Oxbow/Hickson/Bakke component of the project. Mr. Costin stated that in the future, these requests may be approved by the FM Diversion Authority, which will expedite the process.
Commissioner Grindberg moved the cost reimbursement request in the amount of $558,592.20 for the FM Diversion Flood Project for expenses related to projects excluding the Oxbow/Hickson/Bakke component of the project 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.

Automatic Aid Agreement with the City of West Fargo Fire Departments Approved:
The Board received a communication from Fire Chief Steve Dirksen stating the upcoming road construction season includes major projects on 52nd Avenue South in Fargo and on Sheyenne Street in West Fargo, which have the potential to delay emergency response in both communities. He said he recently met with West Fargo Fire Chief Dan Fuller to discuss cooperation between the Fargo and West Fargo Fire Departments to ensure citizens receive the service to which they are accustomed. An Automatic Aid Agreement would be in place until November 1, 2019, he said, and while efforts have been made to provide detour routes for emergency response, analysis indicates that the citizens would receive a more rapid response if both Departments could provide primary coverage during the construction season. He said the Agreement allows the Fargo and West Fargo Fire Departments to partner and provide efficient and effective fire protection services to the Fargo and West Fargo communities.
Commissioner Gehrig moved the Automatic Aid Agreement with the West Fargo Fire Department be approved.

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

Presentation on the 64th Avenue South Bridge and Street Construction Project: Contract Amendment No. 1 with KLJ for Project No. PN-19-A0 Approved:
Transportation Division Engineer Jeremy Gorden said in 2015, the City entered into a contract with KLJ to complete some projects along 64th Avenue South. He said KLJ’s work was to bid a project to construct a new arterial road section between Maple Valley Drive and 38th Street, which was to include a new bridge over I-29 as well as raising the grade of the interstate and to construct a levee within the interstate right-of-way for flood control purposes. The project was expected to have an environmental clearance phase, a design phase and a multi-year construction phase, he said, and was anticipated to be completed over the course of three construction seasons. The first year, he said, was to include the median crossovers necessary for I-29 traffic control, the second year was to include the embankment for the new bridge, the flood control project with the interstate right-of-way and the reconstruction and grade raise of northbound and southbound lanes of I-29. The third year, he continued, was to include the 64th Avenue South roadway and bridge construction. He said the anticipation was this project would be under construction in years 2017, 2018 and 2019; however, over the course of the past few years, the scope for KLJ has changed drastically. The flood control aspects have been dropped, he stated, the arterial roadway construction was pushed back a year to make room for the City to move the 52nd Avenue South reconstruction project up a year and extend the project two miles from 25th Street to 45th Street. The 64th Avenue South project is set to bid in February 2020, he said, and the project will be built over two construction seasons. He said the City is at a point now where a decision is needed on the build alternative and to have KLJ and its sub-consultants begin final design services. The build alternatives, he said, include three lanes at an estimated cost of about $25 million, three lanes with bike lanes for $27 million or three lanes with a cycle track for $26.4 million. He said KLJ has provided a scope and fee for Contract Amendment No. 1 for $1,407,851.00, which is about 7.7 percent of the estimated construction cost.
In response to a question from Commissioner Strand asking how many responses were received for the initial Request for Proposal (RFP), Mr. Gorden said with this type of RFP there are usually five or six responses.
In response to a question from Commissioner Strand asking in a situation where there is a dramatic change in the scope of the project and how does that affect the other bidders who had interest and then it changed after the fact, Mr. Gorden said that is the dilemma that is faced. He said what is important is that the engineering firm has an understanding of the project. He said there are 30 or 40 people working on it who are familiar with the project.
Commissioner Grindberg said the 64th Avenue area will be a high need area some day with future development, even though nothing has been finalized; however, what is frustrating is the City comes in and does a project, then five years later it is changed.
In response to a question from Commissioner Grindberg asking what are the added costs to make 64th Avenue an interchange rather than just an overpass, Mr. Gorden said for reference the 52nd Avenue project, which was done more than 10 years ago, was $40 million. He said at today’s cost, the price would more than likely be an additional $20 million and an interchange is very expensive due to the fact that it involves paved ramps, intersections, lighting, traffic signals, etc. He said an interstate access request is needed with the federal government to show need for an interchange.
Mayor Mahoney said Fargo is a north-south City and east-west access is important for emergency vehicles.
In response to a question from Commissioner Strand asking how close the other bidders were and how likely is it that they would be able to compete, City Engineer Brenda Derrig said when Engineering issues an RFP, one of the lowest points in the scoring process is the cost. While the cost is important, she said, a company’s history with the City is the most important.
In response to a question from Commissioner Strand asking if anyone anticipated this expansion, Mr. Gorden said when KLJ was hired to do the initial project, Engineering thought this would be a City Engineering design project from 25th Street to Maple Valley Drive and the City could farm out some of the projects; however, there has not been any activity in the area to drive it and with federal aid, a bridge cannot be built to nowhere. He said 25th Street was built going west; however, the frontage road or 45th Street was needed for an independent utility, which led to the design for this contract. He said KLJ has the institutional knowledge about grading, wetlands, historic structures and other issues and they have already done the preliminary engineering.
In response to a question from Commissioner Strand about any legal issues with this Amendment, City Attorney Erik Johnson said this is a project that has developed over time and it is legal to extend the contract by Amendment.
Commissioner Gehrig said he did not know this project had been delayed all of these years and wondered why the City Commission was not asked for another round of requests. He said perhaps the request would come from the same company at a better price; however, there needs to be more communication with the City Commission and there should have been another round of RFPs.
Mayor Mahoney said this is an update to the current contract. For example, he said, if software from Johnson Controls needs to be updated, the City would hire Johnson Controls for the update. He said there is a contract for this project and this is a modification of the contract and the City Commission has to recognize that things have changed.
In response to a question from Commissioner Piepkorn asking if the City Commission stopped this and put it out for bids, would it cost more money, Ms. Derrig said even if Engineering did issue a new RFP, considering KLJ’s history with the City and the fact that they are steps ahead and already have knowledge of the project, they would more than likely be awarded the contract.
Commissioner Strand said he would have preferred to see another RFP.
Commissioner Piepkorn moved Contract Amendment No. 1 in the amount of $1,407,851.00 with KLJ for Project No. PN-19-A0 be approved.

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

Parcels of Land in Case, Peake and Hall Addition Rezoned (1527 5th Avenue South):
At a Hearing held on March 5, 2019 the Fargo Planning Commission recommended approval of a change in zoning from SR-3, Single-Dwelling Residential to MR-2, Multi-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 Lutheran Social Services (LSS) is the applicant and is proposing the zoning change for the property it owns at 1527 5th Avenue South, which is a vacant lot adjacent to Luther Hall at 1505 5th Avenue South, which is also owned by LSS. He said Luther Hall provides therapy services for youth and is a community services and group living facility, which is permitted within multi-dwelling zoning districts. LSS wants to build a garage on the vacant lot, he said, which is zoned SR-3, Single Dwelling Residential, and the vacant lot has to match the zoning of its adjacent property in order to build a garage.
Bob Guertin, LSS, said the house and garage at 1527 5th Avenue South were demolished last fall due to disrepair. He said the City sent letters to the neighborhood stating the lot would be rezoned to MR-2 and the neighborhood thought LSS was going to build an apartment building on the lot. He said what is planned is a standard two-stall garage to store bicycles and other outdoor recreational equipment and natural barriers will be planted in the remaining green space. He said LSS did not know a zoning change was necessary in order to build a garage without it being attached to a house and he is here tonight to let the neighborhood know there are no plans to build an apartment.
Randy Engelstad, 1538 5th Avenue South, said he lives across the street from Luther Hall and they have been good neighbors. He said his worry is if the zoning is changed to MR-2 and Luther Hall moves, a developer could buy the property, clear the lot and build an apartment building. He asked if LSS could get a variance instead of a rezoning so there is no chance for an apartment building.
In response to a question from Commissioner Grindberg asking about a variance versus a zoning change, Mr. Kress said this is considered a unified development; therefore, the zoning needs to be same. If it is rezoned MR-2, he said, a developer would be limited on what could be built due to the size of the lot. He said an accessory building cannot be built without a primary building.
Commissioner Gehrig said Mr. Engelstad’s concern is valid and he is trusting his neighbor.
In response to a question from Commissioner Strand asking if this lot is part of the Jefferson Historic District, Mr. Kress said there are historic and non-historic sections of Jefferson and this lot is in the non-historic section.
In response to a question from Commissioner Strand asking if the garage will be built to fit the neighborhood, Mr. Guertin said the garage will be a standard two-stall garage used for storage.
Commissioner Grindberg offered the following Resolution and moved its adoption:
WHEREAS, All legal requirements in connection with the above-described request for rezoning have been complied with; and
WHEREAS, There have been no written or verbal protests to the request for rezoning and no one is present to protest thereto.
NOW, THEREFORE, BE IT RESOLVED, That the findings of staff be accepted and the rezoning be approved on the basis that the proposal satisfactorily complies with the Comprehensive Plan, Standards of Section 20-0906.F (1-4) and all other applicable requirements of the LDC.

Second by Gehrig. On the vote being taken on the question of the adoption of the Resolution Commissioners Grindberg, Gehrig, Piepkorn, 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 Case, Peake and Hall 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 Case, Peake and Hall Addition to the City of Fargo, Cass County, North Dakota be placed on first reading.

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

Parcels of Land in Eagle Valley Third Addition Rezoned (7301 23rd Street South):
At a Hearing held on February 5, 2019 the Fargo Planning Commission recommended approval of a change in zoning from MR-2, Multi Dwelling Residential to MR-2, Multi-Dwelling Residential and SR-4, Single-Dwelling Residential.
The City Auditor's Office published a Notice of Hearing stating this is the time and date set for said Hearing at which time all interested persons could appear and would be heard.
Current Planning Coordinator Donald Kress said the lot is vacant and the developer is stepping it down to less density. He said the plat will create 29 lots of which 28 are for single homes and one lot will be to MR-2, which allows a maximum of 15 units. The majority of the single lots are double fronting, he said, meaning the property owners will be responsible for snow removal on the sidewalks in front of and behind their homes as well as mowing on the front and back of the lots.
Commissioner Grindberg offered the following Resolution and moved its adoption:
WHEREAS, All legal requirements in connection with the above-described request for rezoning have been complied with; and
WHEREAS, There have been no written or verbal protests to the request for rezoning and no one is present to protest thereto.
NOW, THEREFORE, BE IT RESOLVED, That the findings of staff be accepted and the rezoning be approved on the basis that the proposal satisfactorily complies with the Comprehensive Plan, Standards of Section 20-0906.F (1-4) and all other applicable requirements of the LDC.
Second by Gehrig. On the vote being taken on the question of the adoption of the Resolution Commissioners Grindberg, Gehrig, Piepkorn, 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 Eagle Valley Third 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 Eagle Valley Third Addition to the City of Fargo, Cass County, North Dakota be placed on first reading.

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

Resolution Adopted Approving Eagle Valley Third Addition:
Commissioner Grindberg offered the following Resolution and moved its adoption:
BE IT RESOLVED BY THE BOARD OF CITY COMMISSIONERS OF THE CITY OF FARGO:
WHEREAS, A Plat has been filed in the office of the City Auditor entitled “Eagle Valley Third Addition” containing 29 Lots, 2 Blocks and 5.61 acres of land more or less, located at 7301 23rd Street South; and
WHEREAS, A Hearing was held February 5, 2019 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 March 25 and April 1, 2019 that a Hearing would be held in the Commission Chambers, City Hall, Fargo, North Dakota at 5:15 p.m., April 8, 2019 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 “Eagle Valley Third 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.

Appropriate Staff Directed to Draft a Development Agreement and Financing Plan for a Parking Garage on the Mercantile Site on the Northeast Corner of Broadway and 4th Avenue North:
The Board received a communication from Director of Research and Strategic Planning Jim Gilmour stating additional parking is needed Downtown as there are waiting lists at parking facilities north of Main Avenue and new businesses are reluctant to lease space without available parking for employees. New developments are planned for surface parking lots, he said, which will remove more surface parking. He said a parking study conducted a few years ago identified two locations for parking ramps Downtown, including the site of the Roberts Commons garage and the site on the northeast corner of Broadway and 4th Avenue North, which is owned by the Kilbourne Group. He said the Kilbourne Group is willing to work with the City on another mixed-use development similar to Roberts Commons. The property once was the site of the Mercantile Building, he said, which is the proposed name of the development. He said the Parking Commission is in favor of the City building a parking ramp on this site and the concept would include a parking garage with about 370 spaces, a private building with main floor commercial space and about 100 housing units. The next steps, he said, are to prepare a Development Agreement and financing plan for future consideration by the City Commission.
In response to a question from Commissioner Gehrig asking about the cost of construction, Mr. Gilmour said construction would cost approximately $11 million, which is similar to the cost of the RoCo. He said the City still has to buy the land, which has not yet been negotiated, and there will be professional service fees.
In response to a question from Commissioner Gehrig asking if this project will make money for the City, Mr. Gilmour said this project will generate $450,000.00 in annual income and it will cost about $200,000.00 a year to operate. He said it will not make sufficient money to pay off the debt. The debt service for RoCo, he said, is $750,000.00 a year.
In response to a question from Commissioner Gehrig asking about the cost per year to own and operate the project including debt services, Mr. Gilmour said if there is $15 million in development there would be $200,000.00 in Tax Increment Financing (TIF) money. He said with the overall parking system, as these buildings are completed, for instance RoCo, the City will start to receive $500,000.00 a year in TIF revenue. He said the City is using revenue from the rest of the parking facilities to pay the debt at RoCo and as the overall TIF increases, the City is in better shape to pay the annual debt service on the Mercantile ramp.
Commissioner Gehrig said the City will be $300,000.00 in debt per year because of this building, which will not make money for the City in the foreseeable future and as the building ages, it will cost money to repair. There was a market analysis, he said, which showed there was a demand for more parking to help Downtown; however, the private sector is not providing parking due to the fact that parking ramps do not make money. He said even if it would help other businesses, many of which are owned by Kilbourne, the government is expected to come forth, spend the money and lose money every year to make up that difference. The City keeps building parking ramps, he said, and keeps losing money with the anticipation that it will pay off someday, which it does not. He said one parking lot has a TIF that has been on the books for 40 years and the City is leaving it on the books indefinitely, which is not good. If there is a market demand for parking, he said, the private sector will fill the demand. He said the City is leaning too far over its skis, this needs to stop and the City needs to wait for the market to catch up.
Mr. Gilmour said some of the City’s parking facilities are paid for and do make money. He said revenue exceeds annual costs; therefore, that revenue is paying for the debt on RoCo until the TIF money comes in. He said parking facilities have a life of more than 50 years and the maximum TIF is 25 years and that is the maximum number of years the City will bond. He said once the ramps are paid for, they do pay for themselves in addition to paying for new facilities.
Commissioner Gehrig said the City had a parking ramp at US Bank for 40 years and it never paid for itself and got in such disrepair it had to be torn down. He said there are ramps making money now; however, it took 40 years and that is a risk. He said the US Bank ramp is an example of how a parking facility failed, the City lost money, then the City offered massive incentives to rebuild that area. This is a huge risk. He said, and there is not a lot of upside, considering the City will be losing $300,000.00 a year for the foreseeable future. He said he does not know any investor who, if told in 30 years they will make money, but for the first 30 years they will lose $300,000.00 a year. No one would do it, he said, without expecting 8 percent to 15 percent revenue. He said the City is making bad investments.
Commissioner Piepkorn said it is the City Commission’s job to have vision and Commissioners need to look further than the end of their noses. These developments do not just happen, he said, and 25 years ago there were flat parking lots and minimal tax revenue, and now it is phenomenal. He said the Mercantile project is a replicate of RoCo, which is packed on the weekends. He said look at the businesses in the RoCo area and on the alley; it is fantastic. Fargo’s Downtown is amazing and booming, he said, and that is what the City wants.
In response to a question from Commissioner Gehrig asking how much money does RoCo lose a year, Mr. Gilmour said revenue is $650,000.00, expenses are $250,000.00 to $300,000.00 and the annual debt service is $750,000.00, so the project is losing $300,000.00 a year until the TIF starts in five years, then it will break even.
In response to a question from Commissioner Strand regarding reports that say more parking is not needed due to smart cars, Mr. Gilmour said he does not know where technology will be in the future or if people will start using cars less. He said if that happens, surface lots will close first and if there are a lot of autonomous vehicles, people will still need a place to park them.
Commissioner Grindberg said when the Development Agreement and financial plan come back before the City Commission, he would like to see a comprehensive breakdown of parking revenue and expenses.
Commissioner Piepkorn moved appropriate staff be directed to draft a Development Agreement and financing plan for a parking garage on the Mercantile site on the northeast corner of Broadway and Fourth Avenue North.

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.

Flood update:
Mayor Mahoney thanked all of the City workers and everyone in the community who helped with sandbagging. He said the effort was fantastic, goals were met and he is very proud of the City. Volunteers are what makes a difference, he said, and when called upon, the community stands up and does what it needs to do.
City Administrator Bruce Grubb said this will more than likely be the last flood update. He said last week a Special Meeting was held due to a deterministic flood forecast and the City Commission was asked to approve emergency actions for five areas, which have been completed. He said the flood panels were installed on the floodwalls and the City is prepared.
Division Engineer Nathan Boerboom said the Red River is expected to crest at just above 35 feet, followed by a long, drawn out lowering of river levels. He presented graphics of the current flood compared to historical floods and stated that this year’s flood looks very similar to the 1989 flood and that this year’s river level is a top-10 crest in the history of Fargo, which is significant. He showed aerial photos of the Red River at various sites near Downtown, including the 2nd Street floodwall, which he said was operating as expected.
In response to a question from Commissioner Piepkorn asking about the cost of the clay levees that used to be placed on 2nd Street, Mr. Boerboom said he is not sure of the costs; however, about 254,000 cubic yards of clay is used to build a dike, which would have required about 2,500 truck trips, which is costly.
Fire Chief Steve Dirksen presented drone footage of the Red River at various sites in the City. He said last fall, the City Commission approved a manned aerial team with Fargo, West Fargo and Cass County law enforcement and Fire Departments. He said the pilots have gained great experience and training the past few weeks.
In response to a question from Commissioner Strand asking if houses in the risk zones are affecting the City’s flood protection, are the houses protected and what is the status, Mr. Boerboom said with the 35-foot crest, the houses did not require emergency measures; however, when the City was talking about higher flood levels, those houses would have required emergency measures and the City did have contingency plans to put them on the wrong side of the primary line of protection for the City’s infrastructure. He said the houses need to be acquired and Engineering is discussing the timing of the acquisitions and updating appraisals.
In response to a question from Commissioner Strand asking about the 35-foot river level that was in the original plan for the FM Diversion and now that it is at 37 feet, how does that change in-town flood protection, Mr. Boerboom said when the Diversion is in place, the City will have implemented projects to safely pass 37 feet of water through town with sufficient freeboard and no emergency measures.

Duane Hansen, Hawley, Minnesota, addressed the City Commission regarding a stolen semi-trailer.

Commissioner Piepkorn moved that the Board adjourn to 5:00 o’clock p.m., Monday, April 22, 2019.

Second by Gehrig. All the Commissioners voted aye and the motion was declared carried.
The time at adjournment was 6:20 o’clock p.m.