Board of City Commissioners - February 25, 2019

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., February 25, 2019.
The Commissioners present or absent were as shown following:
Present: Gehrig, Grindberg (via conference call), Piepkorn, Strand, Mahoney.
Absent: None.
Mayor Mahoney presiding.

The Mayor read a message with the following information: Fargo Fire Captain Ben Willey has been named Fire Instructor of the Year by the ND Firefighters Association; Fargo Cass Public Health Environmental Health Division will host a seminar on February 28th for Aquatic Facility Operators; Upcoming Library programs include: Crafternoon for Kids; French Film Series; Historic Book Club and Seusstastic Day; renovations continue on the new Police Department building; some interesting statistics from Public Works Director of Operations Ben Dow are: 53,484 gallons of fuel have been used by the Street Department performing snow removal since January 1st, Street Department staff have worked 5,073 hours of overtime; there have been 10,331 truckloads of snow hauled; the cost of snow equipment repairs to date is $179,109.00; $263,728.00 has been spent on contractor trucks to haul snow; and the City as a whole uses up to 4,200 gallons of diesel in
a 24-hour period during a snow event.

Order of Agenda Approved:
Commissioner Strand moved the Order of the Agenda be approved moving Item No. “15” from the Consent Agenda to the Regular Agenda.
Second by Gehrig. All the Commissioners voted aye and the motion was declared carried.

Minutes Approved:
Commissioner Piepkorn moved that the Minutes of the Regular Meeting of the Board held on February 11, 2019 be approved as read.
Second by Gehrig. All the Commissioners voted aye and the motion was declared carried.

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

1. 2nd reading and final adoption of the following Ordinances: 1st reading, 2/11/19:
a. Amending Section 25-1506 of Article 25-15 of Chapter 25 of the Fargo Municipal Code Relating to Restrictions on Sale, Service or Dispensing of Alcoholic Beverages.
b. Rezoning Certain Parcels of Land Lying in Bolley’s Subdivision of Part of Block 9, Chapin’s Addition and College Addition to the City of Fargo, Cass County, North Dakota.
c. Rezoning Certain Parcels of Land Lying in NSC Addition to the City of Fargo, Cass County, North Dakota.
d. Establishing a Planned Unit Development Overlay on St. Paul’s Newman Center Addition to the City of Fargo.

2. Applications for property tax exemptions for improvements made to buildings:
a. Rex R. and Theresa M. Carlson, 4627 Rose Creek Parkway South (3 year).
b. Charles and Elizabeth A. Stevens, 3913 17th Street South (3 year).
c. Robert A. Reames, 1820 26th Avenue South (3 year).
d. Russell E. and Janis F. Anderson, 2727 18th Street South (3 year).
e. Paul D. and Krista R. Mund, 2802 38 1/2 Avenue South (3 year).
f. David K. and Renae C. Anderson, 224 Prairiewood Drive South (5 year).
g. Engerhouse Buyers LLC, 1018 16th Avenue South (5 year).
h. Wayne W. and Gerilynn Carlson, 1616 9th Street South (5 year).
i. Jayson F. and Jessica L. Clairmont, 188 Prairiewood Drive South (5 year).
j. Kathryn Emalene Strand, 2408 Lilac Lane North (5 year).
k. Jerald A. and Tamara L. Rostad, 2534 East Country Club Drive South
(5 year).

3. Extension of the Class “A” Alcoholic Beverage License until August 31, 2019 for the Firebox.

4. Applications for Games of Chance:
a. St. Mary’s Cathedral for a raffle on 5/5/19.
b. NDSU Lions Club for a raffle on 4/17/19.
c. Lana Eichhorn Benefit for a raffle on 3/2/19; Public Spirited Resolution.
d. North Central Turfgrass Association for a raffle on 2/27/19.
e. Davies Young Guns for a raffle on 5/19/19.
f. USA Wrestling of North Dakota for a raffle on 7/18/19.
g. Team Tamara for a raffle on 3/23/19; Public Spirited Resolution.
h. Knights of Columbus #6570 for a calendar raffle from 5/1/19 to 5/31/19.

5. Purchase Agreement with Lonna Askland Rinke for property located at 1213 El Cano Drive South.

6. Issuance of an RFP for consultant services to assist with additional in-town levee projects.

7. Inclusion of the short-term traffic safety modification as part of the Citywide Asphalt Seal Coat Project.

8. Addition of bike lanes on 4th Street and NP Avenue Project No. TM-19-B1.

9. Payment to KLJ for the Contract Amendment in the amount of approximately $5,000.00 to $8,000.00 and authorization of the final public input meeting for the 17th Avenue Corridor Study (Project No. MS-15-F0).

10. Encroachment Agreement with DFI Black Building, LLC.

11. Amendment 1 to Right of Way Use Agreement with DFI Dillard, LLC.

12. Bid advertisement for Project Nos. TM-19-B and TP-19-B.

13. Bid award to Key Contracting, Inc. in the amount of $367,050.00 for Project
No. SN-19-A1 and to Key Contracting, Inc. in the amount of $268,936.00 for Project No. SR-19-A1.

14. Receive and file the Summary Annual Financial Report for the period ending
December 31, 2018 (preliminary, unaudited and unadjusted).

15. Inter-Fund Loan Policy and request a portion of Inter-Fund Loan to be used to acquire the Border States Electric facility (moved to the Regular Agenda).

16. Amendment to Agreement with Nate Hendrickson.

17. Contract Amendment with Land Elements in the amount of $4,152.79 for The Fargo Project.

18 Change Orders for Project No. SW16-03 Phase II:
a. No. 3 for an increase of $7,679.94 for the general contract.
b. No. 2 for an increase of $1,010.00 for the mechanical contract.
c. No. 2 for a decrease of -$10,632.70 for the electrical contract.

19. Task Order with Wenck Associates, Inc. to provide Consultant Engineering Services for Project No. SW19-01.

20. Change Order No. 2 for an increase of $41,828.17 for Project No. WW1402-10.

21. Amendment No. 1 to Task Order No. 3 with AE2S for a change in scope (Project No. WA1301).

22. Task Order No. 16 with AE2S in the amount of $499,800.00 for Project No. WA1301.

23. Change Orders for Project No. WA1301:
a. No. 18 for an increase of $58,969.00 for the mechanical contract.
b. No. 22 for an increase of $144,254.11 for the general contract.

24. Bills in the amount of $8,175,960.55.

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

Negative Final Balancing Change Order No. 1 for Improvement District No. BR-18-H1 Approved:
Commissioner Gehrig moved Negative Final Balancing Change Order No. 1 in the amount of -$33,797.00 for Improvement District No. BR-18-H1 be approved.
Second by Strand. On call of the roll Commissioners Gehrig, Strand, Grindberg, Piepkorn and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Negative Final Balancing Change Order No. 3 for Improvement District No. PR-17-F1 Approved
Commissioner Gehrig moved Negative Final Balancing Change Order No. 3 in the amount of -$35,482.44 for Improvement District No. PR-17-F1 be approved.
Second by Strand. On call of the roll Commissioners Gehrig, Strand, Grindberg, Piepkorn and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Negative Final Balancing Change Order No. 5 for Improvement District No. BR-17-C1 Approved:
Commissioner Gehrig moved Negative Final Balancing Change Order No. 5 in the amount of -$52,050.31 for Improvement District No. BR-17-C1 be approved.
Second by Strand. On call of the roll Commissioners Gehrig, Strand, Grindberg, Piepkorn and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Revised Cost Participation and Maintenance Agreement with the NDDOT for Improvement District No. BR-18-A1:
Commissioner Gehrig moved the Revised Cost Participation and Maintenance Agreement with the NDDOT for Improvement District No. BR-18-A1 be approved.
Second by Strand. On call of the roll Commissioners Gehrig, Strand, Grindberg, Piepkorn and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.

Sanitary Sewer, Water Main, Storm Sewer, Paving, Street Lights and Incidentals Improvement District No. BN-19-B (in Grayland Drive First Addition):
Commissioner Gehrig moved the following action be taken in connection with Sanitary Sewer, Water Main, Storm Sewer, Paving, Street Lights and Incidentals Improvement District No. BN-19-B:

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

On 54th Avenue South between 66th Street South and Grayland Drive South.
On Grayland Drive South from 67th Street South, north 1100’ to the north end of the cul-de-sac on Grayland Drive.

COMPRISING:
Lots 1 through 25, Block 1.
Lots 1 through 5 and Lot 11, Block 2.

All platted in Grayland First Addition.

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

All of the unplatted land in the northwest 1/4 of Section 5, Township 138 North, Range 38 West bounded on the west by the Sheyenne River and on the east by the City of Fargo Municipal Boundary.

All the foregoing located in Cass County, North Dakota.

NOW, THEREFORE, BE IT RESOLVED, That Sanitary Sewer, Water Main, Storm Sewer, Paving, Street Lights and Incidentals Improvement District
No. BN-19-B 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-B:
Direct City Engineer to report as to the general nature, purpose and feasibility relative to the construction of Improvement District No. BN-19-B in the City of Fargo, North Dakota; as well as an estimate of the approximate cost of said construction. (The Engineer's estimate of cost is $1,054,889.64.)

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

Adopt Resolution Approving Plans and Specifications and Engineer's Report for Improvement District No. BN-19-B:
WHEREAS, The Board of City Commissioners of the City of Fargo, North Dakota, has created Improvement District No. BN-19-B 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-B in the City of Fargo, North Dakota, be and the same are hereby approved and ordered filed in the Office of the City Auditor.

Adopt Resolution Declaring Sanitary Sewer, Water Main, Storm Sewer, Paving, Street Lights and Incidentals Necessary:
BE IT RESOLVED BY THE BOARD OF CITY COMMISSIONERS OF THE CITY OF FARGO:
That it be and is hereby declared necessary to construct Sanitary Sewer, Water Main, Storm Sewer, Paving, Street Lights and Incidentals Improvement District No. BN-19-B in the City of Fargo, North Dakota, according to the Engineer’s Report for this district and the Plans and Specifications approved by the Board of City Commissioners of the City of Fargo, North Dakota, filed in the Office of the City Auditor, and open for public inspection. A map of the district is attached hereto and incorporated as if fully set forth herein.
That the entire cost of said improvement be specially assessed against the benefited property in said improvement district in amounts proportionate to and not exceeding the benefits to be derived by them respectively from said improvement.
Protests against the proposed Sanitary Sewer, Water Main, Storm Sewer, Paving, Street Lights and Incidentals must be in writing and must be filed with the City Auditor's Office within 30 days after the first publication of this Resolution.
BE IT FURTHER RESOLVED, That the City Auditor's Office is hereby instructed to publish this Resolution, as required by law.

Direct City Auditor's Office to Call for Bids for Improvement District No. BN-19-B:
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-B in the City of Fargo, North Dakota.

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

Sanitary Sewer, Storm Sewer, Water Main, Paving, Street Lighting and Incidentals Improvement District No. BN-19-E (Bison Meadows 2nd Addition):
Commissioner Gehrig moved the following action be taken in connection with Sanitary Sewer, Storm Sewer, Water Main, Paving, Street Lighting and Incidentals Improvement District No. BN-19-E:

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

67th Avenue South and 16th Street South, east of 17th Street South and north of 68th Avenue South.
COMPRISING:
Lots 1 through 18, inclusive, Block 3.
Lots 33 through 56, inclusive, Block 3.
Lots 1 through 26, inclusive, Block 6.

All platted within Bison Meadows 2nd Addition.

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

NOW, THEREFORE, BE IT RESOLVED, That Sanitary Sewer, Storm Sewer, Water Main, Paving, Street Lighting and Incidentals Improvement District
No. BN-19-E 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-E:
Direct City Engineer to report as to the general nature, purpose and feasibility relative to the construction of Improvement District No. BN-19-E 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 $673,044.24.)

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

Adopt Resolution Approving Plans and Specifications and Engineer's Report for Improvement District No. BN-19-E:
WHEREAS, The Board of City Commissioners of the City of Fargo, North Dakota, has created Improvement District No. BN-19-E 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-E in the City of Fargo, North Dakota, be and the same are hereby approved and ordered filed in the Office of the City Auditor.

Adopt Resolution Declaring Sanitary Sewer, Storm Sewer, Water Main, Paving, Street Lighting and Incidentals Necessary:
BE IT RESOLVED BY THE BOARD OF CITY COMMISSIONERS OF THE CITY OF FARGO:
That it be and is hereby declared necessary to construct Sanitary Sewer, Storm Sewer, Water Main, Paving, Street Lighting and Incidentals Improvement District No. BN-19-E in the City of Fargo, North Dakota, according to the Engineer’s Report for this district and the Plans and Specifications approved by the Board of City Commissioners of the City of Fargo, North Dakota, filed in the Office of the City Auditor, and open for public inspection. A map of the district is attached hereto and incorporated as if fully set forth herein.
That the entire cost of said improvement be specially assessed against the benefited property in said improvement district in amounts proportionate to and not exceeding the benefits to be derived by them respectively from said improvement.
Protests against the proposed Sanitary Sewer, Storm Sewer, Water Main, Paving, Street Lighting and Incidentals must be in writing and must be filed with the City Auditor's Office within 30 days after the first publication of this Resolution.
BE IT FURTHER RESOLVED, That the City Auditor's Office is hereby instructed to publish this Resolution, as required by law.

Direct City Auditor's Office to Call for Bids for Improvement District No. BN-19-E:
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-E in the City of Fargo, North Dakota.

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

P.C. Concrete Paving, Concrete Curb and Gutter, Asphalt Pavement and Incidentals Improvement District No. PN-18-B (Various Locations in South Fargo):
Commissioner Gehrig moved the following action be taken in connection with P.C. Concrete Paving, Concrete Curb and Gutter, Asphalt Pavement and Incidentals Improvement District No. PN-18-B:

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

On 23rd Avenue South from 38th Street South to 42nd Street South. On 41st Street South from 100’ north of 23rd Avenue South to 24th Avenue South.

COMPRISING:
Lot 3, Block 1.
Platted in Interstate Business Park Addition.

All the unplatted land located in the Northeast quarter of Section 22, Township 139 N, Range 49 W.

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

NOW, THEREFORE, BE IT RESOLVED, That P.C. Concrete Paving, Concrete Curb and Gutter, Asphalt Pavement and Incidentals Improvement District No. PN-18-B 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. PN-18-B:
Direct City Engineer to report as to the general nature, purpose and feasibility relative to the construction of Improvement District No. PN-18-B 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 $3,139,165.35.)

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

Adopt Resolution Approving Plans and Specifications and Engineer's Report for Improvement District No. PN-18-B:
WHEREAS, The Board of City Commissioners of the City of Fargo, North Dakota, has created Improvement District No. PN-18-B 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. PN-18-B 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 P.C. Concrete Paving, Concrete Curb and Gutter, Asphalt Pavement 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 P.C. Concrete Paving, Concrete Curb and Gutter, Asphalt Pavement and Incidentals Improvement District No. PN-18-B 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 P.C. Concrete Paving, Concrete Curb and Gutter, Asphalt Pavement and Incidentals must be in writing and must be filed with the City Auditor's Office within 30 days after the first publication of this Resolution.
BE IT FURTHER RESOLVED, That the City Auditor's Office is hereby instructed to publish this Resolution, as required by law.

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

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

Asphalt Mill and Overlay and Incidentals Improvement District No. PR-19-F (Various Locations in South Fargo):
Commissioner Gehrig moved the following action be taken in connection with Asphalt Mill and Overlay and Incidentals Improvement District No. PR-19-F:

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

LOCATION (Section 1):
On 3rd Street North from Northern Pacific Avenue North to Machinery Row Avenue North.
On Machinery Row Avenue North from 2nd Street North to 4th Street North.

LOCATION (Section 2):
On Southwood Drive South east of 11th Street South.

LOCATION (Section 3):
On 11th Street South from Harwood Drive South to 35th Avenue South.
On Birchwood Court South east of 11th Street South.
On River Drive South from Harwood Drive South to 35th Avenue South.
On Maplewood Court South east of River Drive South.
On Ironwood Court South south of Harwood Drive South.
On Oakwood Court South south of Harwood Drive South.
On Hackberry Drive South from Harwood Drive South to River Drive South.
On 35th Avenue South from River Drive South to University Drive South.

LOCATION (Section 4):
On Kennedy Street South from cul-de-sac to River Drive South.
On 12th Street South from 37th Avenue South to River Drive South.
On Burritt Street South from 38th Avenue South to 37th Avenue South.
On 37th Avenue South from Kennedy Street South to University Drive South.
On 38th Avenue South from River Drive South to University Drive South.
On 3800 block cul-de-sac of River Drive South.

LOCATION (Section 5):
On 15th Street South from 40th Avenue South to the end of cul-de-sac.
On 17th Street South from 40th Avenue South to the end of cul-de-sac.
On 41st Avenue South from 15th Street South to 17th Street South.

LOCATION (Section 6):
On Carrie Rose Lane South east of 25th Street South.

LOCATION (Section 7):
On Meadow Creek Drive South from 25th Street South to the end of cul-de-sac.
On Meadow Creek Circle South.

LOCATION (Section 8):
On 43rd Street South from 15th Avenue South to 394’ north of 15th Avenue South.
On 43 1/2 Street South from 13th Avenue South to 13 1/2 Avenue South.
On 44th Street South from 13th Avenue South to 15th Avenue South.
On 13 1/2 Avenue South from 43rd Street South to 425’ west of 43rd Street South.

COMPRISING (Section 1):
Bound on the north by Northern Pacific Avenue North.
Bound on the east by 2nd Street North.
Bound on the south by BNSF railroad tracks.
Bound on the west by 4th Street North.

COMPRISING (Section 2):
Lots 1 and 5 through 34.
Lots 44 through 59.
All in Southwood Addition.

COMPRISING (Section 3):
Lots 1 through 13, Block 1.
Lots 1 through 10, Block 2.
Lots 1 through 8, Block 3.
All in Harwood Groves Addition.

Lots 1 through 5, Block 1.
Lots 1 through 5, Block 2.
All in Harwood Groves 2nd Addition.

Lots 1 through 7, Block 1.
Lots 1 through 15, Block 2.
All in Harwood Groves 3rd Addition.

Lots 1 through 10, Block 1.
Lots 1 through 14, Block 2.
All in Harwood Groves 4th Addition.
Lots 1 through 3, Block 1.
Lots 1 through 5, Block 2.
Lots 1 through 8, Block 4.
All in Harwood Groves 5th Addition.

Lot 10, Block 1.
Lots 1 through 9, Block 2.
All in Harwood Groves 6th Addition.

Lots 1 through 16, Block 1, Waterford Addition.

Unplatted land in NE 1/4 of Sec 25, TWP 139N, RGE 49W.

Lot 1, Block 1.
Lots 1 and 2, Block 2.
Lots 1 through 7, Block 3.
Lots 21 through 27, Block 3.
Lots 1 through 7, Block 4.
Lots 17 through 23, Block 4.
Lots 1 through 6, Block 5.
All in Lemke Addition.

COMPRISING (Section 4):
Lots 1 and 2, Block 1, Elim 2nd Addition.

Lots 1 through 9, Block 1.
Lots 1 through 5, Block 2.
Lots 1 through 7, Block 3.
Lots 1 through 18, Block 4.
Lots 1 through 9, Block 5.
Lots 1 through 10, Block 7.
All in Burritt-Kennedy Addition.

COMPRISING (Section 5):
Lots 1 through 6, Block 1.
Lots 1 through 26, Block 2.
All in Rosewood Park Addition.

COMPRISING (Section 6):
Lots 2 and 3, Block 1, Replat of Lot 14, Block 5, Rose Creek 3rd Addition.
Lots 1 through 19, Block 1, Summit Chase Addition.

COMPRISING (Section 7):
Lots 1 through 46, Block 1.
Lots 1 through 32, Block 2.
All in Meadow Creek Addition.

COMPRISING (Section 8):
Lots 1 through 6, Block 1.
Lots 1 through 4, Block 2.
Lots 1 through 5, Block 5.
Lots 8 through 12, Block 5.
Lots 1 through 14, Block 6.
Lots 1 through 6, Block 7.
Lots 13 through 18, Block 7.
Lots 1 through 4, Block 9.
All in the Rabanus Addition.

Lot 1, Block 1, TSPA Addition.

Lots 6 through 8, Block 1, West Acres 2nd Addition.

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

NOW, THEREFORE, BE IT RESOLVED, That Asphalt Mill and Overlay and Incidentals Improvement District No. PR-19-F 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. PR-19-F:
Direct City Engineer to report as to the general nature, purpose and feasibility relative to the construction of Improvement District No. PR-19-F in the City of Fargo, North Dakota; as well as an estimate of the approximate cost of said construction. (The Engineer's estimate of cost is $1,576,377.00.)

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

Adopt Resolution Approving Plans and Specifications and Engineer's Report for Improvement District No. PR-19-F:
WHEREAS, The Board of City Commissioners of the City of Fargo, North Dakota, has created Improvement District No. PR-19-F 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. PR-19-F 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 Asphalt Mill and Overlay 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 Asphalt Mill and Overlay and Incidentals Improvement District No. PR-19-F 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 Asphalt Mill and Overlay and Incidentals must be in writing and must be filed with the City Auditor's Office within 30 days after the first publication of this Resolution.
BE IT FURTHER RESOLVED, That the City Auditor's Office is hereby instructed to publish this Resolution, as required by law.

Direct City Auditor's Office to Call for Bids for Improvement District No. PR-19-F:
Direct City Auditor's Office to publish a Notice, as required by law, calling for bids for the construction of Improvement District No. PR-19-F in the City of Fargo, North Dakota.

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

Change Order No. 3 for Improvement District No. NR-17-B1 Approved:
Commissioner Gehrig moved Change Order No. 3 for an increase of $296,290.42 for Improvement District No. NR-17-B1 be approved.

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

Contract for 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-A2 Approved:
Commissioner Gehrig moved the Contract between the City of Fargo and KPH, Inc. for 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-A2 in the City of Fargo, North Dakota, be approved.

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

Contract Bond for 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-A2 Approved:
Commissioner Gehrig moved the following described Contract Bond be approved as to sufficiency:
Western Surety Company, in the amount of $19,197,385.45, for 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-A2 in the City of Fargo, North Dakota.

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

Update from the Greater Fargo-Moorhead Economic Development Corporation (GFMEDC):
Joseph Raso, President of the Greater Fargo-Moorhead Economic Development Corporation, presented the Fargo Quarterly Update, which covered September through December 2018. He said in 2018, the GFMEDC worked closely with 15 Fargo based companies to help with their business growth. He said well over 350 jobs have been committed to be created in the regional economy with a payroll of more than $20 million to the marketplace. As far as workforce development, he said, last year the GFMEDC helped administer more than $1.255 million in job credit assistance to nearly 30 Fargo-based companies for job training. The GFMEDC is working on 11 projects and continues to manage the Growth Initiative Fund through which 8 companies in Fargo were able to obtain loan funds, he said, and last year five Opportunity Zones were designated in Fargo and one in Moorhead. He said they are working closely to build out some programming around that federal legislation to help with development and revitalization of different parts of the community. There a lot of companies here looking to fill existing jobs, he said, and the GFMEDC has provided community tours to those moving into the community. Work continues on workforce initiatives including affordable housing projects and childcare facilities with loan funds, he stated.

In response to a question from Mayor Mahoney about whether Opportunity Zones provide any opportunities for low income housing, Mr. Raso said there could be. He said they are not housing experts; however, their Growth Initiative Fund (GIF) program has provided some housing dollars. He said the question is how is low income or affordable defined, is it workforce housing and will it support individuals who are filling jobs in the community.
In response to a question from Commissioner Strand about Community Land Trusts and being proactive, Mr. Raso said he and John Machacek have been challenged by the GIF Board to gather expertise on the housing market for a better understanding so better decisions can be made when investing those dollars. In a way it is a step away from directly assisting primary sector companies, he said; however, if they do not this will affect the community even more. He said new condo housing in Denver can cost $420 per square foot and in Seattle, for example, Microsoft committed to a half billion dollars to help address the housing issues so these things are on the horizon.

2018 Fargo Fire Department Annual Report:
Fire Chief Steve Dirksen shared the 2018 Annual Report with the Board. He said he is proud to be the Fire Chief in Fargo. Last year was a big year, he said, and his goal is to equip, train and provide the best service to the citizens of Fargo. The number one goal is to work through prevention, he said; however, the number of responses continues to grow each year. He shared the number of responses by Stations with Stations 8 and 9 on the graph not being in existence yet, he said. Records are being kept of where stations should be in the future, he said. For example, he said, Station 8 in the Davies neighborhood was at 100 responses and now is at 332 so that area is one that will need to be concentrated on in the very near future due to extended response times. Annual responses were over 11,000 in 2018, he said, and are now on pace to go over 14,000. January was extraordinarily busy, he said, and during one week in January there were more than 50 responses per day. Fires were down last year, he said, with the main cause continuing to be human actions such as cooking and improperly discarding smoking materials. Fire loss last year was under $2 million, which is good for a community of this size, he said. The expected average would be between $4 million and $5.5 million, he said. Fargo is one of 72 communities in the country that has an accredited Fire Department and has an ISO Class 1, he said, so few can tout that level of fire safety. He said the department is starting to see a little bit of a prolonged response with a goal to be at 90 percent of calls in eight minutes, 12 seconds, as part of the departments accreditation; however, last year response time was 17 seconds behind. He said as there are more calls further out, it takes longer to get there.

In response to a question from Commissioner Gehrig about ways to reduce responses, Chief Dirksen said one response model implemented last year was that rather than send 5 fire trucks to a call for alarms going off in a building, a ladder truck and engine are sent which reduces wear and tear on vehicles and total apparatus movements have gone down. He said a strong prevention program is important.

In response to a question from Commissioner Strand about concerns the Board has heard from the Fire Department on wages and salaries compared to other communities, Chief Dirksen said a study is underway and in the information gathering phase with a goal to bring something to the Commission by the end of March.

Parcels of Land in BLU Water Creek 4th Addition Rezoned (4609 33rd Avenue South):
At a Hearing held on January 3, 2019 the Fargo Planning Commission recommended approval of a change in zoning from LC, Limited Commercial with a C-O, Conditional Overlay, to LC, Limited Commercial, with a C-O Conditional Overlay.

The City Auditor's Office published a Notice of Hearing stating this is the time and date set for said Hearing at which time all interested persons could appear and would be heard.

Current Planning Coordinator Donald Kress said the item is a minor plat and conditional overlay modification for the BLU Water Creek 4th Addition. He said minor plats are usually on the Consent Agenda; however, it becomes part of the Public Hearing item due to the zone change attached. He said the property encompasses approximately 15.19 acres and the current Conditional Overlay prohibits vehicle repair and requires flat roofs and rooftop equipment to be concealed from public view by parapets and/or screens, among other conditions. The proposed amended Conditional Overlay, he said, would allow for vehicle repair and reduce the amount of rooftop screening requirements to a minimum of 50 percent of the height of the rooftop equipment. Planning staff feels the allowances are adequate due to the fact that the property is not along an arterial road, and no comments have been heard from the public, he said.

Commissioner Piepkorn offered the following Resolution and moved its adoption:
WHEREAS, All legal requirements in connection with the above-described request for rezoning have been complied with; and
WHEREAS, There have been no written or verbal protests to the request for rezoning and no one is present to protest thereto.
NOW, THEREFORE, BE IT RESOLVED, That the findings of staff and the Planning Commission be accepted and the rezoning be approved with the Conditional Overlay requirements listed in the Ordinance on the basis that it satisfactorily complies with the Comprehensive Plan, Standards of Section 20-0906.F (1-4) and all other applicable requirements of the LDC.

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

First Reading of an Ordinance Repealing and Re-Establishing a Conditional Overlay District on Certain Parcels of Land Lying in BLU Water Creek 4th Addition, City of Fargo, Cass County, North Dakota:
Commissioner Piepkorn moved the requirement relating to receipt of the Ordinance by the Commission one week prior to first reading be waived and that the Ordinance Repealing and Re-Establishing a Conditional Overlay District on Certain Parcels of Land Lying in BLU Water Creek 4th Addition, City of Fargo, Cass County, North Dakota be placed on first reading.

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.

Resolution Adopted Approving Plat of BLU Water Creek 4th Addition:
Commissioner Piepkorn 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 “BLU Water Creek 4th Addition” containing 2 Lots, 1 Block and 15.19 acres of land more or less, located at 4609 33rd Avenue South; and
WHEREAS, A Hearing was held January 3, 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 February 11 and 18, 2019 that a Hearing would be held in the Commission Chambers, City Hall, Fargo, North Dakota at 5:15 p.m., February 25, 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 “BLU Water Creek 4th 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.

Application Filed by Prairie Products LLC for a Tax Exemption Withdrawn:
A Hearing had been set for this day and hour on the application filed by Prairie Products LLC for a project located at 1350 55th Street North; however, the applicant has withdrawn the request.

City of Fargo Tax Review Committee Policy Guidelines Approved: Appropriate Staff Directed to Study the Need for an Inclusionary Housing Policy:
Director of Strategic Planning and Research Jim Gilmour stated the proposed City of Fargo Tax Exempt Review Committee Policy and Guidelines includes policy for Tax Increment Financing (TIF) and University Mixed Use (UMU) tax exemptions that had been separate policies in the past. The Tax Increment Financing Policy is substantially different from the previous policy, he said, and now applies to the entire City including Downtown, establishes review criteria for the different types of Tax Increment Districts and moves the review process to the Tax Exempt Review Committee. He said there are also changes to policy on Payment in Lieu of Taxes (PILOT) incentives for housing, a financial review requirement was added to that process, and the policy allows for longer-term exemptions if needed to make a project feasible. The changes to the tax exemption policies for UMU housing projects are not major, he said, and there are just a few changes to the policy on tax exemptions for primary sector businesses due to that policy being revised in 2017. He said the updated policy and guidelines include an outline of available incentive options and general evaluation objectives, guidelines on remodeling exemptions, residential new construction and new industry exemption/PILOT policies for UMU, PILOT and TIF guidelines. The policy, if approved, would be effective as of January 28, 2019, he said, and remain in effect until the next review after the June 2020 City election. He said the City supports the mission of economic development through the use of tax incentive programs for the private sector. The goal, he said, is to create high quality jobs by attracting new and expanding existing private sector businesses. He said the City also supports affordable housing opportunities and growing the City’s tax base, which enhances livability, vibrancy and quality of life. He pointed out that there is a better defined policy for monitoring; requiring reports on job creation and if goals are not met it can go before the committee then the Board for review and if needed, the recipient could be required to pay back based on number of jobs created, he said.

Commissioner Gehrig said for those who qualify this now offers longer incentives for a higher percentage in the Downtown. He said he was hoping to see some limiting factors in the new document; however, it seems incentives are being accelerated, which is why he cannot support it.
In response to a question from Commissioner Strand about feedback from the public, Mr. Gilmour said multiple attempts were made to put out information, and there was feedback from people in development and economic development businesses or affordable housing; however, he only received two phone calls through this process. He said one was critical of Block 9 and the other had concerns about the impacts in the Roosevelt neighborhood.

Commissioner Strand said he supports some aspects; however, he is working on some others. He said he would hope the Tax Exempt Review Committee and others are willing to go forward and study further what could be done. He said his biggest concern is to have affordable housing built into the incentive plan and he said he will be offering a motion to have a study on inclusionary housing and what could be built into local policies. Commissioner Grindberg said it is hard to define what affordable housing is.

Commissioner Piepkorn thanked Mr. Gilmour, City Assessor Ben Hushka and Finance Director Kent Costin and all staff for working on this policy for nearly two years. It is well done and was a tremendous amount of work, he said, and there was a lot of feedback. He said there is work that can be done in the future, such as affordable housing, and adjustments can be made. He said it is a very good document and he is proud of it.
Commissioner Strand said the criteria was changed for job creation in the last couple years and now the incentive program includes wage points starting at $15.00 an hour if coming to the public for support of their business plans. It is important to know if people are coming to the public trough for subsistence, at least paying a living wage is a criteria, he said.

Commissioner Piepkorn moved the City of Fargo Tax Exempt Review Committee Policy and Guidelines be approved.

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

Commissioner Strand moved that a study be conducted on the need for an Inclusionary Housing Policy for the City of Fargo looking at housing needs, available incentives and the need for additional resources to include recommendations for implementation from City Administration, Planning and Development and the Housing and Redevelopment Authority.
Second by Grindberg. On call of the roll Commissioners Strand, Grindberg, Gehrig and Mahoney voted aye.
Commissioner Piepkorn voted nay.
The motion was declared carried.

Purchase Agreement for Land from Oak Grove Foundation Properties, LLC and Park Christian School, Inc. Approved (Improvement District No. FP-19-A):
The Board received a communication from City Administrator Bruce Grubb, City Engineer Brenda Derrig and Finance Director Kent Costin stating that the City has been involved in discussions with developers who are considering new developments in areas west of Interstate 29 south of 52nd Avenue South. They said due to the fact that the potential new development areas are outside of the City’s current service area for a storm sewer, staff initiated a Storm Water Master Planning Study to determine the feasibility of servicing this future growth area as well as possible alternatives for consideration. In the study, they stated, two alternatives were developed, including servicing the study area as has been done historically in the City by utilizing on-site detention, or ponds, in each individual development and this method would require multiple large storm sewer trunk lines and four lift stations. If implemented, they said, this would cost an estimated $26,000.00 per acre, while a second alternative, utilizing a single regional detention facility, would benefit the entire service area for all post-development storm water run-off. They said this alternative would be a series of open channels and one lift station that would result in the estimated cost reduction of about $19,000.00 per acre. For past perspective, they said, a typical new trunk storm sewer cost has ranged from $18,000.00 to $22,000.00 per acre, so as a result of this study it became apparent that a single regional detention facility would be the most cost-effective solution to service this future growth area of the City. Two properties have been identified as potential locations for this regional detention facility, with the first property being owned by Oak Grove Lutheran and Park Christian Schools and the second on private property that is currently being sought for purchase, they said. The Oak Grove and Park Christian property is absolutely needed in order to execute this regional detention concept, they said, and the property is located entirely within the effective 100-year floodplain presenting some challenges to be fully developed. They said due to its location and the floodplain difficulties, Engineering staff thinks it is best situated for a regional pond and recommends the purchase of the property. They said there will be other future benefits from this purchase, including the anticipated reduction in other City project costs due to the proximity of clay fill for future road projects and the anticipation that there will be 80 acres of remnant land that could be resold to offset costs of the initial land purchase price. The negotiated price with the schools is $27,500.00 per acre, which staff believes is a fair purchase price based on other recent land sales in the area, they said, and funding for the purchase will come from two sources, including the Clean Water State Revolving Funds and the Infrastructure Sales Tax, which will be reimbursed once the remnant property is resold.

Ms. Derrig shared a PowerPoint presentation showing the conclusions of the evaluation study done by the Engineering Department. She said federal funds are available and work is beginning to look at the 64th Avenue overpass and construction project to go from 25th Street and 45th Street and connect back in. In visiting with a couple of developers who are close to starting developments on the north and south sides of 64th Avenue, it became important to look at how to provide storm water services within that area. She said the nearest drain is Drain 27 to the west and a couple of miles away. Looking at Drain 53 to the east, she said, it is necessary to cross I-29 to get to it. She said they looked at a drainage area of 2,300 acres which would go south of 76th Avenue and from the Interstate to Veterans Boulevard. She said a hurdle is Fargo’s flat topography and the distance to get to the legal drains. She said the Oak Grove/Park Christian land being discussed is within the FEMA 100-year floodplain and on average is 2 to 3 feet below the 100-year floodplain and with the drainage swale that goes through the parcel there is a max difference of about 5 feet of fill that would be needed if it was to be developed. To the east and towards the Interstate the topography rises, she said, so it makes sense to put a regional retention pond in the lower area. Working with a consultant to evaluate the area and looking at the historical storm sewer infrastructure methodology, a challenge due to the distance is the size of the pipes needed. She said it would require 84-inch trunk mains, even up to a trunk box culvert size, rather than the usual 60 to 72-inch size. The counteraction to that would be more trunk lines, she said; however, that requires more lift stations for a larger cost and more maintenance. Another challenge, she stated, is that the three lift stations that would be installed on the south would be outside City limits and in Horace’s ET and would require them to allow that. There would also be multiple ponds in a typical development way, she said. The cost, if done in the historical way, would be about $55 million or $26,000.00 per acre, she said, and usually the trunk main costs $7,000.00 to $22,000 per acre. It made sense to look at the Oak Grove/Park Christian land since it is low and would provide the retention requirements according to the Growth Plan, she said, and it would also handle the water quality requirements. It would reduce the number of lift stations from four to one, she said, and reduce the storm water sizing. There would be 80 acres of remnant land that could be resold for development around the pond, she said, and the shape could be flexible. She said the price for 244.38 acres at $27,500/acre is $6,700,000.00 and an application for an SRF loan recently completed could go toward the purchase of only the pond itself, the lift construction and outfall with the pond. The additional amount not part of the SRF loan would be about $2.2 million and it is recommended infrastructure sales tax be used to pay for that remnant piece of land that can be resold.

Daniel Bueide, Bueide Law Firm, LLC representing Oak Grove, said this piece of property is a generational gift given to the schools by the former landowner and neither school is in the land holding business. He said Oak Grove has needed the City a number of times over the years and he is pleased to have something the City wants and they want to sell. He said they are excited about the transaction and it is a tremendous opportunity for the schools.

In response to a question from Commissioner Gehrig regarding whether all these things would happen if the loan does not go through, Mr. Grubb said when first discussed, they got ahold of the North Dakota Department of Health’s Clean Water SRF loan program and after submitting project information, it is now on their Intended Use Program. He said while not a guarantee, in his 30-year history he has never had one not funded and he was essentially assured it would be.

In response to a question from Commissioner Strand asking whether this has any impact on the Plan B path for the FM Diversion, Mr. Grubb said this is strictly a local storm water infrastructure plan and independent of the Diversion project.

Commissioner Piepkorn moved the Resolution entitled “Resolution authorizing filing of application with the North Dakota Department of Health for a Loan under the Clean Water Act and/or the Safe Drinking Water Act” and referred to as Attachment “A”; the “Resolution Relating to Acquisition and Financing of Southwest Regional Storm Water Management Project, Authorizing Purchase of Land, Creating Improvement District
FP-19-A, Directing the Development of Project, Expressing Intent to Re-sell Remainder, and Intention to Reimburse from Loan or Bond Proceeds” and referred to as
Attachment “B” be adopted and attached hereto; and the Purchase Agreement with Oak Grove Foundation Properties, LLC and Park Christian School, Inc. be approved as presented.

Second by Gehrig. On call of the roll Commissioners Piepkorn, Gehrig, Strand, Grindberg and Mahoney voted aye.
No Commissioner being absent and none voting nay the motion was approved.
Inter-Fund Loan Policy Approved: Use of Inter-Fund Loan for a Portion of the Border States Facility Acquisition Approved (Moved from the Consent Agenda):

The Board received a communication from the Finance Committee stating the use of Inter-Fund Loans is a financial practice that has been used by the City in the past; however, they have not promulgated a financial policy to help navigate decisions on its use. They said the Governmental Finance Officers Association recommends the adoption of fiscal policies to help institutionalize practices and protocols that are sustainable. Historically, they said, the City used Inter-Fund Loans to construct Newman Outdoor Baseball Stadium, assisting the Parking Authority with timely repairs and the Neighborhood Revitalization Initiative initial start-up funding.

Finance Director Kent Costin said in the past when these loans have been used there has not been a policy on how to use them, term them or manage them. The proposed policy has some mandatory provisions and control points for approval and use. Loans for more than $3 million would go to the City Commission and those less than $3 million would be approved and ratified by the Finance Committee. These loans have not been used frequently, he said; however, an advantage to using the City’s internal cash is that there is no closing, financing or soft costs as there would be with traditional bonding. He said he is seeking approval of the Inter-Fund Loan Policy and approval to use funds for the acquisition of the Border States Industries (BSI) facility that the Police Department is renovating and moving into.
In response to a question from Commissioner Strand on the reason or need for the $3 million threshold, Mr. Costin said there would not be a downside to all loans coming to the Commission. He said the Finance Committee looked at the historical size and frequency of loans and thought some of the smaller transactions could be routine as opposed to bringing each to the Board. He said this is a new policy and Commissioners could certainly recommend amendments.

Mayor Mahoney said these are infrequent and the Board could certainly review each one.

Commissioner Strand moved the Inter-Fund Loan Policy be approved removing the sentence “The Finance Committee will review and approve Inter-Fund Loans up to
$3 million, no further approval is required” and changing “The City Commission will approve all Inter-Fund Loans in excess of $3 million” to read “The City Commission will approve all Inter-Fund Loans recommended by the Finance Committee” and a portion of the funds be used as an Inter-Fund Loan for the purchase of the Border States Industries facility.

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

Mayor Mahoney announced that internet sales tax has brought in $233,000.00 for one quarter. He said that is a considerable amount of income for the community.

Commissioner Gehrig moved that the Board adjourn to 5:00 o’clock p.m., Monday, March 11, 2019.

Second by Strand. All the Commissioners voted aye and the motion was declared carried.
The time at adjournment was 6:17 o’clock p.m.