Board of City Commissioners - June 3, 2019

Regular Meeting: Monday: June 3, 2019:

The Regular Meeting of the Board of City Commissioners of the City of Fargo, North Dakota, was held in the City Commission Chambers at City Hall at 5:00 o'clock p.m., Monday, June 3, 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: The Fire Department visited 21 public and private elementary schools in May as part of the annual “Learn Not to Burn” program; the Fire Department reminds residents to burn only clean, dry wood in the City; and two short videos were shown – the first from the Forestry Division regarding Arbor Day and the second detailing the Fire Department’s spring hydrant flushing rounds.

Order of Agenda Approved:
Commissioner Strand 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 Piepkorn moved that the Minutes of the Regular Meeting of the Board held on May 20, 2019 be approved as read.

Second by Gehrig. 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. Receive and file an Ordinance 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.

2. Tax exemptions for improvements made to buildings:
a. Tyson Gonsorowski, 1530 4th Avenue North (5 year).
b. Jacob Lunski, 1517 12th Street South (5 year).
c. Andrew M. Schefter and Kaira L. Henze, 2301 Lilac Lane North (5 year).

3. Site Authorizations for Games of Chance:
a. Red River Human Services Foundation at The Northern (amended).
b. Fargo Metro Baseball Association at Empire Tavern.
c. Prairie Public Broadcasting, Inc. at Bison Turf, Dempsey’s and Tailgators.
d. Horse Race North Dakota at Sickies Garage, Chub’s Pub and Labby’s Bar & Grill.
e. ShareHouse Inc. at Alibi’s/Baymont Hotel, Bismarck Tavern, Rick’s Bar and Grill, The Round Up Saloon and Woody’s.
f. VFW Post 762 at VFW Club (amended).

4. Applications for Games of Chance:
a. United Way of Cass Clay for a raffle board on 6/17/19.
b. River Keepers for a raffle on 6/17/19.
c. AO1 Foundation, Inc. for a raffle on 6/26/19.
d. Tri-City Storm Soccer Club for a raffle on 7/16/19.
e. Dakota Medical Foundation – Lend A Hand Up for a raffle on 6/20/19.

5. Partial Release and Dike Agreement and Easement for RLN Business Park 1st Addition.

6. License Agreement with Nichole’s Fine Pastry for the installation of a Parklet at 13 8th Street South subject to the terms of the agreement.

7. License Agreement with the Downtown Community Partnership for the installation of a Parklet at 3rd Avenue North and Broadway subject to the terms of the agreement.

8. Memorandum of Offer to Landowner for a Permanent Easement (Street and Utility) associated with Project No. PN-18-B1.

9. Memorandum of Offer to Landowner for a Permanent Easement (Storm Sewer) associated with Project No. UR-19-A1.

10. Farm Lease (Oak Grove) with Chad Johnson and Kyle Johnson for property located at 5636, 5638, 6054 and 6056 Veterans Boulevard South.

11. Purchase Agreement with Audrey Stewart-Farol, a Trustee of the Garylle B. Stewart Living Trust in the amount of $589,034.00 for property located at 1367 Elm Circle North (Project No. FM-19-E).

12. Resolution authorizing the amendment of an existing US Bank loan, reissuance of the bank note and an Amendment to Financing Agreement (Attachment “A”).

13. Contract Agreement with Valley Christian Counseling Center to provide a breastfeeding friendly environment for their employees.

14. Purchase of Service Agreement with the ND Department of Human Services Behavioral Health Division for Substance Abuse Prevention.

15. Addendum to Health Services Agreement between Cass County and the City of Fargo.

16. Supplemental Policy to Replace Existing 2014 Nuisance Tier Policy regarding stagnant water, excavations, noxious or other weeds and tall grass pertinent to City of Fargo Ordinances 11-0805 and 11-0806.

17. Agreement for Provision of Environmental Health Services for the City of West Fargo by Fargo Cass Public Health.

18. Service Agreement with Fargo Public Schools for Special Services.

19. Direct City Attorney to draft ordinances for adoption of the 2018 International Codes.

20. Resolution establishing 2020 Census Complete Count Committee (Attachment “B”).

21. Change orders for the Police Department Remodeling Project at the Border States Electric Building:
a. No. 1 for an increase of $13,853.00 for the general contract.
b. No. 1 for an increase of $13,419.00 for the mechanical contract.
c. No. 1 for an increase of $14,510.23 for the electrical contract.

22. Purchase of one or more truck chassis for the base price of $104,300.00 from the ND State Procurement Contract No. TC 378.

23. Bid award for the 2019/2020 highway deicing salt contract to Northern Salt Incorporated at a price of $102.00 per ton (RFP19077).

24. Change Order No. 7 in the amount of $27,297.62 for Project No. FM-15-K1.

25. Contracts and bonds for Project Nos. SL-19-A1, WA1951 and SW19-01.

26. Bills in the amount of $11,738,049.04.

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.

Change Order No. 2 for a Time Extension for Improvement District No. UN-18-B1 Approved:
The Board received a communication from the Public Works Projects Evaluation Committee stating a 15-day time extension for Fox Underground Inc. is being requested due to weather conditions.
Commissioner Strand moved Change Order No. 2 for a time extension for substantial completion to June 3, 2019 for Improvement District No. UN-18-B1 be approved.

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.

Utility Relocations and Payment Authorizations for Improvement District No. PN-18-B1 Approved:
The Board received a communication from the Public Works Projects Evaluation Committee stating the project to reconstruct and widen the intersection at 23rd Avenue and 42nd Street South will require the relocation of private utilities contained in an existing 10-foot utility easement in the southwest corner of the intersection. The estimate from Cass County Electric to relocate a large electrical switch box is $25,304.00 and the estimate from CenturyLink to relocate a hand hole box is $10,993.18.
Commissioner Strand moved the utility relocation payments to Cass County Electric in the amount of $25,304.00 and to CenturyLink in the amount of $10,993.18 for Improvement District No. PN-18-B1 be approved.

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-J1:
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-J1 in the City of Fargo, North Dakota, was duly published in the official newspaper for the City of Fargo, North Dakota on April 29 and May 6, 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-J1.

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-J1:
The bids for Sanitary Sewer, Water Main, Storm Sewer, Paving, Street Lights and Incidentals Improvement District No. BN-19-J1 in the City of Fargo, North Dakota were opened at 11:30 o'clock a.m., Wednesday, May 29, 2019 and the bids were found to be as follows:

Fox Underground, Inc. West Fargo, ND
Bid: $636,944.49

FM Asphalt, LLC Moorhead, MN
Bid: $637,359.61

All Finish Concrete, Inc. West Fargo, ND
Bid: $669,910.04

Northern Improvement Company Fargo, ND
Bid: $677,271.35

Dirt Dynamics Fargo, ND
Bid: $699,964.98

Opp Construction Fargo, ND
Bid: $763,303.41

Dakota Underground Company Fargo, ND
Bid: $802,979.52

Contract for Sanitary Sewer, Water Main, Storm Sewer, Paving, Street Lights and Incidentals Improvement District No. BN-19-J1 Awarded to Fox Underground, Inc. in the Amount of $636,944.49:
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-J1; and
WHEREAS, The Board of City Commissioners of the City of Fargo has considered the bids received May 29, 2019 for Sanitary Sewer, Water Main, Storm Sewer, Paving, Street Lights and Incidentals Improvement District No. BN-19-J1 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-J1 shows the bid of Fox Underground, Inc. of Fargo, North Dakota, in the sum of $636,944.49 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 Fox Underground, Inc. in the sum of $636,944.49 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-J1 in the City of Fargo, North Dakota, be and the same is hereby awarded to Fox Underground, Inc. for the sum of $636,944.49, 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, Water Main, Storm Sewer, Site Grading, Concrete Curb and Gutter, Asphalt Pavement and Incidentals Improvement District No. BN-19-F1:
The Statutory Resolution of Necessity for the construction of Sanitary Sewer, Water Main, Storm Sewer, Site Grading, Concrete Curb and Gutter, Asphalt Pavement and Incidentals Improvement District No. BN-19-F1 in the City of Fargo, North Dakota, was duly published in the official newspaper for the City of Fargo, North Dakota on May 13 and 20, 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, Site Grading, Concrete Curb and Gutter, Asphalt Pavement and Incidentals Improvement District No. BN-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 Sanitary Sewer, Water Main, Storm Sewer, Site Grading, Concrete Curb and Gutter, Asphalt Pavement and Incidentals Improvement District No. BN-19-F1:
The bids for Sanitary Sewer, Water Main, Storm Sewer, Site Grading, Concrete Curb and Gutter, Asphalt Pavement and Incidentals Improvement District No. BN-19-F1 in the City of Fargo, North Dakota were opened at 11:30 o'clock a.m., Wednesday, May 29, 2019 and the bids were found to be as follows:

Northern Improvement Company Fargo, ND
Bid: $1,457,241.15

Fox Underground, Inc. West Fargo, ND
Bid: $1,466,267.10

FM Asphalt, LLC. Moorhead, MN
Bid: $1,492,190.10

Border States Paving, Inc. Fargo, ND
Bid: $1,547,096.26

Dakota Underground Company Fargo, ND
Bid: $1,795,269.44

Contract for Sanitary Sewer, Water Main, Storm Sewer, Site Grading, Concrete Curb and Gutter, Asphalt Pavement and Incidentals Improvement District No. BN-19-F1 Awarded to Northern Improvement Company in the Amount of $1,457,241.15:
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 Contract for Sanitary Sewer, Water Main, Storm Sewer, Site Grading, Concrete Curb and Gutter, Asphalt Pavement and Incidentals Improvement District No. BN-19-F1; and
WHEREAS, The Board of City Commissioners of the City of Fargo has considered the bids received May 29, 2019 for Sanitary Sewer, Water Main, Storm Sewer, Site Grading, Concrete Curb and Gutter, Asphalt Pavement and Incidentals Improvement District No. BN-19-F1 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, Site Grading, Concrete Curb and Gutter, Asphalt Pavement and Incidentals Improvement District No. BN-19-F1 shows the bid of Northern Improvement Company of Fargo, North Dakota, in the sum of $1,457,241.15 to be the lowest and best bid received.
NOW, THEREFORE, BE IT RESOLVED, That the Board of City Commissioners finds and declares the bid received from Northern Improvement Company in the sum of $1,457,241.15 is the lowest and best bid received.
BE IT FURTHER RESOLVED, That the contract for Sanitary Sewer, Water Main, Storm Sewer, Site Grading, Concrete Curb and Gutter, Asphalt Pavement and Incidentals Improvement District No. BN-19-F1 in the City of Fargo, North Dakota, be and the same is hereby awarded to Northern Improvement Company for the sum of $1,457,241.15, 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.

Contract for Traffic Signal Improvements and Incidentals Improvement District No. TN-19-A1 Approved:
Commissioner Strand moved the Contract between the City of Fargo and Moorhead Electric, LLC for Traffic Signal Improvements and Incidentals Improvement District No. TN-19-A1 in the City of Fargo, North Dakota, be approved.

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.

Contract Bond for Traffic Signal Improvements and Incidentals Improvement District No. TN-19-A1 Approved:
Commissioner Strand moved the following described Contract Bond be approved as to sufficiency:
Western Surety Company, in the amount of $279,966.75, for Traffic Signal Improvements and Incidentals Improvement District No. TN-19-A1 in the City of Fargo, North Dakota.

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.

Contract for Street Lighting and Incidentals Improvement District No. SL-19-E1 Approved:
Commissioner Strand moved the Contract between the City of Fargo and Fargo Electric Construction, Inc. for Street Lighting and Incidentals Improvement District No. SL-19-E1 in the City of Fargo, North Dakota, be approved.
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.

Contract Bond for Street Lighting and Incidentals Improvement District No. SL-19-E1 Approved:
Commissioner Strand moved the following described Contract Bond be approved as to sufficiency:
United Fire and Casualty, in the amount of $138,904.00, for Street Lighting and Incidentals Improvement District No. SL-19-E1 in the City of Fargo, North Dakota.

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.

Baird and Dougherty Named as the Bond Underwriter for the Retail Sale of Refunding Improvement Bonds, Series 2019B:
The Board received a communication from Finance Director Kent Costin stating the City is an active issuer of municipal tax-free bonds to fund essential infrastructure and his office occasionally receives inquiries from citizens about the ability to purchase the bonds from the original sale. The current bond marketing methods do not allow a retail purchase, he said, and the bonds are sold in large denominations directly to institutional investors. The Finance Committee recently discussed the idea of offering a retail purchase period prior to the ultimate sale of City bonds, he said, which is a new approach in marketing City bonds that will provide additional direct investment opportunities for the community. Baird and Dougherty is the recommended underwriting team, he said, due to their strong presence in North Dakota financing. This is an innovative strategy used in other communities and should be successful in Fargo, he said.
Terri Heaton, Baker Tilly Municipal Advisors, LLC, said retail sales let citizens invest in City bonds and allows the sale directly to individuals, professional money managers and trust departments at banks. She said she did not include Moorhead due to different taxing regulations in Minnesota. She said Baird and Dougherty was chosen through a Request for Proposal (RFP) and 10 responses were received. The criteria, she said, included experience, past participation in bond issues, a firm that was familiar with Fargo’s credit rating and its marketing processes. She said the bonds will be sold in $5,000.00 denominations, whereas bonds are usually sold in $25,000.00 or $50,000.00 denominations.
In response to a question from Commissioner Piepkorn asking if residents get the first opportunity and if there is not enough demand what will happen, Ms. Heaton said the priority is still being worked out. She said she thought there could be a larger presence in western Minnesota; however, the tax advantage is not as great for Minnesotans buying ND bonds.
In response to a question from Commissioner Piepkorn asking how many other cities are doing this, Ms. Heaton said it has not been done a lot, there are about seven other cities that are offering this. The advantage, she said, is Fargo is a well-recognized name in the bond market and is highly rated.
Commissioner Piepkorn said this is unique and it is a great idea to give the small guy a shot and if there is not enough, brokerages will still buy. He said it will be interesting to see the reaction.
In response to a question from Mayor Mahoney, asking what the rate of return will be, Ms. Heaton said 3 to 3.5 percent on the high end and 1 percent on the low end. She said those investing for 25 years will get a bigger return.
In response to a question from Commissioner Gehrig asking if this will save the City money, Ms. Heaton said it will be about the same cost, the difference is citizens will be allowed to own a part of the city. She said if there are not enough orders, there is a safety net due to the fact that it can still be offered to institutional investors.
In response to a question from Commissioner Gehrig asking if there is a risk of the City paying more, Ms. Heaton said there is no risk since the City has a high enough credit rating and will be offering it to the citizens first, then to the institutions.
Mr. Costin said this is a pilot project from the Finance Committee and if it is not popular, the City can revert back to selling to large investors.
Commissioner Piepkorn moved Baird and Dougherty be named as the bond underwriter for the retail sale of Refunding Improvement Bonds, Series 2019B.

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

State Water Commission Request for Cost Reimbursement for FM Diversion Flood Project Costs Approved:
The Board received a communication from Finance Director Kent Costin stating the State Water Commission is requesting $6,650,000.00 for cost reimbursement for the FM Metropolitan Area Flood Risk Management Project for engineering and quality testing costs incurred from December 2015 through August 2017, which have not been previously requested for reimbursement. He said this is a more sizeable amount than what is usually requested due to the fact that the state appropriates funds for the project in chunks and recently appropriated $66 million. Under state law, he said, the City is allowed to draw 10 percent immediately for costs already incurred.
Commissioner Gehrig moved the cost reimbursement request in the amount of $6,650,000.00 for the FM Diversion Flood Project for expenses related to engineering and quality testing costs be approved.

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

Parcels of Land in Fitzsimonds Addition Rezoned (3716, 3740, 3750, 3760 and 3780 51st Avenue South; 5120 and 5168 38th Street South):
At a Hearing held on May 7, 2019 the Fargo Planning Commission recommended approval of a change in zoning to repeal and re-establish 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 request is for a zoning amendment to repeal and re-establish a C-O, Conditional Overlay in Fitzsimonds Addition. He said this zoning request is about an on-premise, multi-tenant sign, rooftop screening, design elements, landscaping, facades and articulation. He said the request is being made in order to make this development equivalent to the development across the interstate and the sign is simply advertising and is not a billboard nor is it digital and will be similar to another sign in the area which advertises Panda Express and other businesses. The developer, he said, has not confirmed any specific plans for this development.
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 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 Piepkorn. On the vote being taken on the question of the adoption of the Resolution Commissioners Grindberg, Piepkorn, Gehrig, Strand and Mahoney voted aye.
No Commissioner being absent and none voting nay, the Resolution was adopted.

First Reading of an Ordinance Rezoning Certain Parcels of Land Lying in Fitzsimonds 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 Fitzsimonds Addition to the City of Fargo, Cass County, North Dakota be placed on first reading.

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

Parcels of Land in Huntington’s Addition Rezoned (1406 7th Street South):
At a Hearing held on May 7, 2019 the Fargo Planning Commission recommended approval of a change in zoning from SR-2, Single Dwelling Residential to P/I, Public and Institutional.
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 applicant is seeking approval of a zoning map amendment for the subject property. He said the property is owned by the Fargo School District and is for a portion of the Clara Barton Elementary site that is currently within the SR-2 zoning district. He said the majority of the site is zoned P/I, Public and Institutional. He said while elementary schools are permitted by right in both these zoning districts, the intent of this zoning map amendment is to establish a single zoning district (P/I) for the entire school site for ease of zoning administration. At this time, he said, there has not been a decision as to what or if something will be built on this site and if there ever is a decision to build something there would be a review.
Commissioner Strand 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 Grindberg. On the vote being taken on the question of the adoption of the Resolution Commissioners Strand, Grindberg, Gehrig, Piepkorn 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 Huntington’s Addition to the City of Fargo, Cass County, North Dakota:
Commissioner Strand 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 Huntington’s Addition to the City of Fargo, Cass County, North Dakota be placed on first reading.

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

Hearing on a Petition for a Zoning Change in Timber Parkway Third Addition Continued to June 17, 2019 (4801 and 5081 Timber Parkway South):
This was the time and date set for a Hearing on a petition for a zoning change to repeal and re-establish a C-O, Conditional Overlay in Timber Parkway Third Addition; however, the applicant has requested that the Hearing be continued to June 17, 2019.
Commissioner Piepkorn moved the Hearing be continued to 5:15 o’clock p.m. on Monday, June 17, 2019.

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

Special Assessment List for 2018 Reconstruction of City Ordered Sidewalks Approved:
A Hearing had been set for this day and hour on the special assessment list for the 2018 Reconstruction of City Ordered Sidewalks in the City of Fargo, North Dakota, on which special assessment list a Hearing had been held by the Special Assessment Commission after which it had been confirmed and filed with the Board of City Commissioners.
No appeals have been filed in writing against any item appearing on such special assessment list and no person is present at this Hearing to appeal or offer any objection thereto.
Special Assessment Coordinator Dan Eberhardt said notices were sent out regarding the city ordered sidewalks, bids were awarded and 208 projects were completed with administrative fees totaling $236,135.03.
In response to a question from Commissioner Gehrig asking if that amount includes the 1 percent fee over the interest rate, Mr. Eberhardt said it does.
In response to a question from Commissioner Strand asking if the Special Assessments Taskforce will change the 1 percent fee or is that still in discussions, Commissioner Grindberg said the option is open for the City Commission to review a fee change if that is what it deems appropriate. He said public forums have been posted and the Taskforce will take that final information and then bring recommendations to the City Commission. He said discussion on the fees should be a center point, as well as bond issues.
Commissioner Gehrig said in a questionnaire to Taskforce members, there was a question on whether to reduce the 1 percent fee and the majority responded that it should be reduced. The 1 percent fee is not required, he said, and no one has ever defaulted. He said if someone did default, there is plenty of money in the fund; therefore, he will not be supporting this item.
Finance Director Kent Costin said there are two or three issues with regard to how the City manages its debt service funds and that would be appropriate for discussion by the Commission so all members fully understand the purpose of the current procedures in what the City does and how the City does it. Commissioner Gehrig is correct, he said, in that the 1 percent does act as a buffer for special assessment delinquencies and the City has been lucky in that that the economy has been strong and there have not been any issues with wholesale defaults; however, cities near Fargo have had defaults so it is not impossible that the City could run into some issues. He said these are 25-year obligations and it is very difficult to predict the economic future and that is part of the reasoning for the mark up.
In response to a question from Mayor Mahoney asking if the Taskforce recommends a half percent, would there be the ability to draw this back to a half percent administrative fee, Mr. Costin said that would be a question for the City’s bond counsel. He said once the bonds are pledged and warrants drawn up, which are the legal attachments to the assessments to get a revenue stream started, they stay at whatever is approved; therefore, the answer is likely “no.”
In response to a question from Commissioner Strand asking if this action could be delayed even though the projects are completed and would there be any harm if the Commission waited, Mr. Costin said most if not all of these projects have already been delayed a year. Last year, he said, the City received a special loan provision through the Bank of North Dakota for 2 percent loan and the City decided to use that loan and purposely pulled these sets of projects off being levied a year ago in order to allow the Commission to make a decision on the current policy. He said this needs to move forward due to the fact that cash flow to the City and especially the assessment projects is important to keep projects moving. If this is passed, he said, this would be the final step of the process to close out the Bank of North Dakota loan. He said he wants to reiterate that this has been delayed one year already; therefore, it is to the City’s advantage to move this along and the next thing the Commission will be seeing sometime between now and fall will be the construction projects that are being closed out from last year and this year. He said the Commission has to make that same determination about the policy current or future after the Assessment Taskforce works on it. The retail sale bond issue coming forward, which was discussed earlier, is a $40 million bond sale and is a very large transaction, he said, and the Finance Department needs to have a sense that the bonds are going to be levied in the amounts that reflect the current policy. He said it is very difficult to hold up the train on the cash liquidity of the City to make an ultimate decision on the assessment policy. Once that policy has been ratified, he said, then it will consistently follow and transactions going forward would be subject to the new policy.
In response to a question from Commissioner Strand asking if the Special Assessments Taskforce decided to move this topic to the front burner to get a policy recommendation to the Commission as soon as possible and the Commission could do that in a month, two or three, is that doable, Commissioner Grindberg said he does not see that as pragmatic. He said he sees a list of things and the Commission is going to have to determine what to adopt in a policy and those changes would be effective for the calendar year 2020. He said a significant part of that is the impact of the Prairie Dog Fund.
Commissioner Gehrig said about a year and a half ago, the City was still doing 1.5 percent and at a meeting, the Commission decided it would be 1 percent. There was no taskforce, there was no change in policy, there was no big discussion, he said, and the Commission just decided that it would be 1 percent. He said he heard from residents who were not happy with that fee so it was changed; therefore, the Commission could now go from 1 percent to a half percent and it does not require a big change in policy. That is what the citizens of Fargo want, he said, and the fact that no one is defaulting on these loans, which has been the stated purpose of this fee, does not hold water anymore.
Commissioner Gehrig moved the special assessment list for the 2018 City Ordered Sidewalks be approved and that the interest rate be set at .5% per annum as presented at a half percent instead of 1 percent.

Second by Strand. On call of the roll Commissioners Gehrig and Strand voted aye.
Commissioners Grindberg, Piepkorn and Mahoney voted nay.
The motion died for lack of majority.

In response to a question from Mayor Mahoney asking how long the fee has been at 1 percent, Mr. Costin said he is not sure of the exact date it was changed to 1 percent; however, it has been at 1 percent for many years and the source of that change goes back to the prior Special Assessments Taskforce in 2003, when a series of changes were made to make special assessments more affordable.
Commissioner Strand said he hopes the current Special Assessments Taskforce can work out a break-even point and he does not think the percentage over should be a moneymaker. On the other hand, he said, the City has to be prudent not to undercut and not have enough funds.
In response to a question from Commissioner Strand asking what is the sweet spot or what is the exact amount and is it 1 percent or could it be a half percent, Mr. Costin said it is not a mechanical or precision calculation; it has to do with economic assumptions and with what the City thinks might happen in the future and making sure there is enough capacity within the fund to stay solvent. He said he prepared a series of charts and graphs for the Special Assessments Taskforce that showed some various assumptions. He said to answer the question succinctly; the City has done some analytics on special assessments and whenever the Taskforce or the City Commission chooses to discuss it in more detail, he would be happy to revisit those graphics.
Commissioner Strand said it is his intention to join Commissioner Gehrig going forward to see if it is reasonable and feasible to lower the rate; however, he is not going to make policy right now in this action. He said he would rather have the policy drive the Commission and when it does come back to the Commission, he will be joining Commissioner Gehrig in tightening that up as much as possible so the citizens are paying the least amount possible. He said he thought that the Special Assessments Taskforce would be done by December and that some new policies would be here by now.
Commissioner Piepkorn moved that the Special Assessment List for the 2018 Reconstruction of City Ordered Sidewalks in the City of Fargo, North Dakota, be and the same is hereby approved and confirmed and ordered filed in the office of the City Auditor, that the City Auditor’s Office be instructed to proceed to collect the assessments in the manner provided by law and that the interest rate be set at 1% per annum over the net rate on bonds financing said projects.

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

Special Assessment List for Various Improvement Districts Approved:
A Hearing had been set for this day and hour on the special assessment list for the construction of the following Improvement Districts in the City of Fargo, North Dakota, all having been approved by the Special Assessment Commission on April 23, 2019: set the interest rate at 1% per annum over the net rate on bonds financing said projects:
Concrete Alley Paving and Incidental Improvement District No. AN-17-F.
Concrete Alley Paving and Duct Bank and Incidental Improvement District No. AN-17-G.
Sanitary Sewer, Water Main, Storm Sewer, Paving, Street Lights and Incidental Improvement District No. BN-16-C.
Storm Sewer, Asphalt Paving, Concrete Curb and Gutter, Street Lights, Sidewalk and Incidental Improvement District No. BN-16-H.
Water Main Replacement, Force Main Construction, Street Reconstruction and Incidental Improvement District No. BR-16-E.
Water Main Replacement, Force Main Construction, Street Reconstruction and Incidental Improvement District No. BR-17-A.
Water Main Replacement, Force Main Construction, Street Reconstruction and Incidental Improvement District No. BR-17-C.
Street Reconstruction and Incidental Improvement District No. BR-17-F.
Water Main Replacement, Street Reconstruction and Incidental Improvement District No. BR-17-G.
Water Main Replacement, Street Reconstruction, Street Lights and Incidental Improvement District No. BR-17-H.
Water Main Replacement, Street Reconstruction and Incidental Improvement District No. BR-17-J.
ater Main Replacement, Street Reconstruction and Incidental Improvement District No. BR-17-L.
Water Main Replacement, Street Reconstruction and Incidental Improvement District No. BR-18-H.
Water Main Replacement, Street Reconstruction, Street Lights and Incidental Improvement District No. BR-18-J.
Asphalt Wear Course and Incidental Improvement District No. PN-18-A.
Seal Coat and Incidental Improvement District No. PR-18-E.
Mill and Overlay and Incidental Improvement District No. PR-18-F.
Sanitary Sewer Force Main and Incidental Improvement District No. UN-15-B.

Special Assessments Coordinator Dan Eberhardt said the 18 projects presented in this item have been created, the districts were established, the projects constructed and inspected and the final costs assembled, certified and presented to the Special Assessment Commission, who determined the benefit of each project. The total amount for the projects, he said, is $30-plus million and the special assessed amount is $14.9 million affecting 3,886 parcels.
Commissioner Grindberg moved that the special assessment lists for the construction of the above listed Improvement Districts be and the same are hereby approved and confirmed and ordered filed in the office of the City Auditor, that the City Auditor's Office be instructed to proceed to collect the assessments in the manner provided by law and that the interest rate be set at 1% per annum over the net rate on bonds financing said projects.

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

Request by the Transit Department to Expand Service into the Industrial Park Approved:
The Board received a communication from Transit Director Julie Bommelman stating the Transit Department was approached by the United Way regarding the potential to add transit service to the Fargo Industrial Park. She said Transit staff met with staff from the United Way several times to discuss the cost and options of this service and Microsoft hosted a roundtable discussion on March 28, 2019 with employers from the Industrial Park, United Way, Mayor Mahoney and Commissioner Piepkorn in attendance. It was determined a viable opportunity for this type of micro-transit transportation exists in TapRide, she said, an on-demand fixed route service to connect riders to the main transit system. She said the service would operate during the current Transit service hours and riders would pay the regular fares. She said for Transit to expand service into the Industrial Park, additional funding would need to be added to the Transit budget. The 2019 start-up and operating costs, she said, would be $146,448.00 and the 2020 operating costs would be $164,449.00. Additional meetings were held with staff, the United Way and Commissioners Strand and Piepkorn to clarify that half of the operating costs for 2019 (August-December) are being provided from outside resources to match the funding the City will be providing. She said in the event the full amount of outside resources commitment is not expended by year end, the remaining funds will carry into FY 2020 until fully expended. Additionally, she said, the Transit Department does not have a vehicle within the fleet to provide the service, so a vehicle will have to be leased until a time the proper sized vehicle can be purchased.
Thomas Hill, Vice President of Community Impact for United Way of Cass Clay, said talks about transportation into the Industrial Park have been going on since October 2018. He said the Industrial Park and surrounding area has more than 19,000 jobs that are providing an opportunity for economic vibrancy and growth for Fargo and the entire state. He said there has not been public transportation into the Industrial Park since the 1990s and this creates a significant barrier for individuals who are trying to access or maintain employment in the Industrial Park. One of the goals of the United Way, he said, is to lift people out of poverty and one of the best ways to do that is provide opportunities for full time living wage employment. He said in conversations with Transit and Industrial Park employers, United Way asked what they could do to provide opportunities and how could they partner on this project. Multiple meetings were held with employers and individuals, he said, and the “aha” moment was when a service provider from the Department of Vocational Rehabilitation said they had more than 25 people who would love to apply for jobs in the Industrial Park; however, they do not see that as an option for employment due to the fact that they cannot get there. He said the opportunity exists to provide an innovative, cost-effective pilot program for transportation into the Industrial Park.
Matt Peterson, Assistant Transit Director, said Transit wants to get all of the routes on fixed routes, which are the 35-foot vehicles that travel through town. Due to the location of the Industrial Park, Transit’s current fixed-route fleet and the current route alignment, the best option would be to implement TapRide and then Transit could look at adding this area to the fixed route system by doing a slight route change to Route 17 and purchasing another vehicle for the overall expansion. In the meantime, he said, a TapRide option, similar to what is on the NDSU campus, allows people to request a pickup and drop off for their work in the Industrial Park with the TapRide app or at one of two TapRide kiosks that would be designed and placed at West Acres and in the Whale of a Wash and Casey’s area on 12th Avenue North, near the current Route 17. He said Transit felt it was important to tie this into the fixed-route service since eventually the long-term goal would be to have a 30-minute fixed route service on this route. He said the Industrial Park is considered an unmet need for Transit and there is also a Sanford medical clinic in that area that does drug testing and DOT testing and Transit finds that the clinic is also one area that needs Transit service. He said since there is not a vehicle available for this service, Transit would have to lease a vehicle at a cost of $2,000.00 a month. That way, he said, Transit can see if the route is operating as expected, performing the way it should and Transit can make tweaks where needed, then be able to purchase a vehicle for long term implementation into the system. He said there is a learning curve whenever Transit starts a new route and he would like to see this pilot program start in August when the weather will be good rather than waiting until fall or winter. He said other fees for the pilot program include 2,000 service hours and software and the total for the remainder of 2019 would be about $93,448.00. United Way will contribute $70,000.00, he said, leaving a $23,448.00 budget adjustment for the City. To continue the service for the full 2020 year, he said, driver services would be about 5,178 hours, the vehicle lease would continue for the year and there would be TapRide software maintenance, for a total cost of about $182,248.00.
In response to a question from Commissioner Gehrig asking if the businesses who need to have those jobs filled are contributing in some way, Mr. Hill said the businesses contribute to and support the United Way, which in turn makes it possible for the United Way Workforce Development Pathways initiative possible. He said these businesses also provide a large contribution to the Fargo tax base.
Commissioner Gehrig said this program should be discussed during the regular budget cycle. He said the City is more than halfway through the budget year and this adds dollars that are not budgeted. There are City divisions asking for more employees, he said, a fire station needs fixing and there a lot of moving parts within a budget. He said $24,000.00 is just for the rest of this year; however, this is a $200,000.00 impact for the next fiscal year. This is a great idea, he said, and something the City needs to focus on; however, it has to go into the pecking order of what is most important for the City and this is spending tax dollars. He said right now he is not going to support this; however, during the budget cycle he will be more than happy to look at this and see where it flows in the priority list.
In response to a question from Mayor Mahoney asking if the pilot program does not work out, is the City still committed, Mr. Peterson said he would want the program to run for 17 months. He said he wants to see a multi-month time frame and then Transit will take a look at it in June of next year to align with budgeting, look at all the numbers and then decide if it should continue.
Commissioner Piepkorn said the City has been trying to do this for years and he wants to thank the United Way for being the catalyst to get it started. He said this has been a great collaborative effort between the United Way and Transit, a lot of work went into this pilot program and the TapRide technology is what is allowing this to happen. He said in the past, the City has tried to get routes out to the Industrial Park and it is too difficult with the shift changes at different times. He said people are now walking from the nearest drop off for the bus, which is sometimes more than two miles. He said he thinks this is a great idea, he is proud of everyone for their hard work, this is a unique opportunity and City leaders have to have vision and part of that vision is solving a need for employers in the Industrial Park, who are begging for employees who do not have a way to get to these good paying jobs. This is a multiple win, he said, and he is thankful to be a part of it.
Commissioner Strand said he is on board and the best part is that this request comes from the people. He said the City was not out trying to drum up more roles, jobs and responsibilities for government to provide. He said the citizens came to the City and said they need the City’s help and the United Way is doing an amazing job of addressing needs of affordable housing, transit, childcare and living wages. He said as far as businesses contributing, he does not know if that has been the formula for Transit. He said there is a significant worker shortage and these are good paying jobs and the City has people who need to get to those jobs and this program is connecting the dots. He said he knows this is out of the budget cycle; however, he will leverage the $23,448.00 for this year to get the program going.
Commissioner Strand moved the proposed Transit Service Pilot Program in the Fargo Industrial Park for 2019 in the amount of $23,488.00 be approved.

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

2019 Mobile Food Truck Pilot Program Approved:
The Board received a communication from Director of Environmental Health Grant Larson regarding a proposed 2019 Mobile Food Truck Pilot Program. He said FCPH reviewed a mobile food truck study conducted by the National League of Cities, and based on that study, along with internal collaboration, recommend conducting a pilot program with parameters that include: allowing mobile food trucks to operate from 10 a.m. to 2 p.m. each Friday from June 14, 2019, to September 13, 2019 for “Food Truck Fridays;” restrict the pilot program to one location along the south end of the new City Hall parking lot; each truck must operate within one of the designated spots on a first come, first serve basis; all trucks must be properly licensed by FCPH; no additional licenses or permits will be required for the pilot program; trucks must comply with current FDA food regulations; the trucks must be self-contained mobile units; no amenities will be provided by the City to include power generation, garbage containers or potable water; each truck is responsible for cleanliness of the parking lot; and the City will provide garbage receptacles for the public. He said the pilot program was tabled last year and what is before the Commission is a proposed “less is more” pilot program. He said the program will essentially start the ball rolling on collaboration with all the other stakeholders to develop a permanent policy that can be brought back to the City Commission in 2020.
Mayor Mahoney said the pilot program is not using public resources nor is it interfering with businesses Downtown. He said he hopes the trucks can eventually operate Downtown and in other areas of the City.
Commissioner Gehrig moved the 2019 Mobile Food Truck Pilot Program 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.

Contracting Option and Bid Award for Project No. FM-14-13 Approved:
City Engineer Brenda Derrig said this was discussed at the last City Commission meeting following an Executive Session. She said the base bid with alternates includes the construction of permanent flood protection on the Wieland property at 4033 Copperfield Court and would complete necessary permanent protection, would eliminate the need for temporary measures in this area in a flood event and the subsequent rebid of a project for the lone property would not be necessary. She said there are two possible contracting actions: base bid and base bid plus alternate. She said the base bid came in about $100,000.00 under the engineer’s estimate and included the Wieland property at an additional cost of $166,370.00.
In response to a question from Commissioner Piepkorn asking which option does she recommend, Ms. Derrig said she would prefer Assistant City Attorney Nancy Morris make that recommendation. She said if the property is pulled out and the job rebid for one project, it would cost an additional $75,000.00 to $100,000.00.
In response to a question from Commissioner Piepkorn asking if this is approved can the City go ahead with the project, Ms. Morris said the matter is in litigation and there is a final order for possession of the property; however, that order has been appealed to the Supreme Court.
In response to a question from Commissioner Gehrig asking if there is still a risk if the property wins the appeal and the City is constructing a levy on someone else’s property, Mr. Johnson said there is always uncertainty anytime there is litigation.
Commissioner Strand moved the bid for the Copperfield/Oakcreek Flood Risk Management Project No. FM-14-13 be awarded to Key Contracting in the amount of $1,137,386.90.

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

Reappointments to the Arts and Culture Commission:
The Board received a communication from Mayor Mahoney recommending that Tracy Walvatne, Tracy Jordre and Deb Williams be reappointed to the Arts and Culture Commission.
Commissioner Gehrig moved Tracy Walvatne, Tracy Jordre and Deb Williams be reappointed to the Arts and Culture Commission for three-year terms ending
June 1, 2022.

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

Reappointments to the Community Development Committee:
The Board received a communication from Mayor Mahoney recommending that Linda Klebe and Samantha McDonald be reappointed as public members on the Community Development Committee.
Commissioner Gehrig moved Linda Klebe and Samantha McDonald be reappointed as public members on the Community Development Committee for three-year terms ending December 31, 2021.

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

Commissioner Gehrig moved that the Board adjourn to 5:00 o’clock p.m., Monday, June 17, 2019.

Second by Piepkorn. All the Commissioners voted aye and the motion was declared carried.
The time at adjournment was 6:15 o’clock p.m.