Board of City Commissioners - November 18, 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, November 18, 2019.
The Commissioners present or absent were as shown following:
Present: Gehrig (via conference call), Grindberg, Piepkorn, Strand, Mahoney.
Absent: None.
Mayor Mahoney presiding.

The Mayor read a message with the following information: This year’s annual rebate check from the City’s purchasing card program was $235,148.00; in recognition of World Aids Day, Fargo Cass Public Health will host an HIV/HCV rapid testing event December 2nd; with cold weather settling in, the Inspections Department requires cold weather protection be used on concrete and other products; Inspections offers services for citizens and contractors after hours or off-hours for an additional fee; Chief Todd attended the International Association of Chiefs of Police Conference recently in Chicago; and a video was shown highlighting the celebration of the completion of Fargo Civic Plaza Phase One.

Order of Agenda Approved:
Commissioner Piepkorn moved the Order of the Agenda be approved, moving Item No. “1” from the Consent Agenda to the Regular Agenda.
Second by Grindberg. All the Commissioners voted aye and the motion was declared carried.

Minutes Approved:
Commissioner Grindberg moved that the Minutes of the Regular Meeting of the Board held on November 4, 2019 be approved as read.
Second by Strand. All the Commissioners voted aye and the motion was declared carried.

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

1. Receive and file an Ordinance amending Section 01-0305 of Article 01-03 of Chapter 01 of the Fargo Municipal Code relating to classification of Ordinance violations (moved to the Regular Agenda).

2. 1st reading of an Ordinance amending Sections 13-1002 and 13-1008 of Article 13-10 of Chapter 13 of the Fargo Municipal Code relating to recreational aquatic facilities.
3. 2nd reading and final adoption of an Ordinance rezoning certain parcels of land lying in Bohnsack’s Second Addition to the City of Fargo, Cass County, North Dakota.

4. Moratorium on the issuance of new business licenses for Vehicles for Hire until no later than March 31, 2020 and direct the City Attorney’s office to draft a proposed Moratorium Ordinance, revise the Vehicle for Hire Ordinance and Regulations for the licensing of Vehicles for Hire.

5. Applications for Games of Chance:
a. Eagles Elementary PTA for bingo on 11/5/19 to 5/29/20.
b. Muskies Inc. F-M Chapter for a raffle on 2/13/20.
c. Dakota Medical Foundation for a raffle on 11/25/19.

6. Resolution adopting the Cass County Multi-Hazard Mitigation Plan Final Adaption (Attachment “A”).

7. Change Order No. 3 in the amount of -$30,000.00 and Final Balancing Change Order No. 4 for an increase of $39,257.44 for Project No. FM-15-J1.

8. Change Order No. 1 for an increase of $85,084.90 for Project No. TM-19-B1.

9. Change Order No. 1 for an increase of $12,903.00 for Project No. UR-18-A1.

10. Negative Final Balancing Change Order No. 5 in the amount of -$38,399.70 for Project No. FM-15-F2.

11. Negative Final Balancing Change Order No. 3 in the amount of -$6,629.85 for Project No. SN-19-A1.

12. Amendment of Permanent Easement (Storm Sewer) Recorded Document #1198096 with Grayhawk Apartments, LLC.

13. Drain 27/Deer Creek Shared Use Path project to move forward to MetroCOG for submittal to the NDDOT for TAP funding in the year 2022.

14. Right of Way Use Agreement with Enclave, LLC.

15. Receive and file General Fund – Budget to Actual through October 2019 (unaudited).

16. Notice of Grant Award with the ND Department of Health for preventative health and health services block grant (CFDA #93.991).

17. Agreement with Absolute Marketing Group for media materials for the Syringe Services Program.

18. Notice of Grant Award – Amendment with the ND Department of Health for family planning services (CFDA #93.217).

19. Purchase of Service Agreement with the ND Department of Human Services, Behavioral Health Division for prevention of opioid related deaths through evidence based prevention strategies.

20. Lease (Amendment) with the Downtown Community Partnership for the downtown ice rink through the 2019-2020 winter season.

21. Site Access Agreement with D&J Real Estate LLC.

22. Resolution approving Plat of Kesler First Addition (Attachment “B”).

23. Bid award to Northern Truck Equipment in the amount of $97,850.00 for one snowplow, box and wing (RFP19171).

24. Exercising the option to piggyback on the Minnesota State Contract to purchase AMP salt brine additive from EnviroTech Services for the winter of 2019/2020 (PBC116354).

25. Sole Source Procurement with EnviroTech Services to purchase IceSlicer ice melt for the winter of 2019/2020 (SSP19136).

26. Exercising the option to piggyback on the Minnesota State Contract to purchase brine generator salt from Salt Source LLC d/b/a US Salt for the winter of 2019/2020 (PBC S-1082(5)).

27. Bills in the amount of $6,276,243.99.

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.

Change Order Nos. 20-25 and Modification to Change Order No. 17 for Improvement District No. BN-19-A2 Approved:
Commissioner Piepkorn moved Change Order Nos. 20-25 in the amount of $47,697.82 and modification of Change Order No. 17 to include a time extension of 8 days for Improvement District No. BN-19-A2 be approved.

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.

Negative Final Balancing Change Order No. 5 for Improvement District No. NR-18-A1 Approved:
Commissioner Piepkorn moved Negative Final Balancing Change Order No. 5 in the amount of -$30,380.75 for Improvement District No. NR-18-A1 be approved.

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.

Negative Final Balancing Change Order No. 1 for Improvement District No. PR-19-E1 Approved:
Commissioner Piepkorn moved Negative Final Balancing Change Order No. 1 in the amount of -$32,465.35 for Improvement District No. PR-19-E1 be approved.

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.

Negative Final Balancing Change Order No. 2 for Improvement District No. PR-19-F1 Approved:
Commissioner Piepkorn moved Negative Final Balancing Change Order No. 2 in the amount of -$219,745.56 for Improvement District No. PR-19-F1 be approved.

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.

Update on the Grand Farm:
Greg Tehven, Emerging Prairie, and Brian Carroll, Grand Farm Director, presented an overview of the Grand Farm autonomous farming research initiative. Mr. Tehven said the idea for Grand Farm started in 2017 when Barry Batcheller asked what was Fargo’s collective skill set and could that make a difference in the world. He said through a series of conversations, it was determined Fargo excelled in advanced technology and agriculture and from that came the idea for the first-ever 100 percent autonomous farm. He said Kevin and Stacy Biffert donated 40 acres of land south of Fargo and Microsoft has donated $1.5 million for the project.

Mr. Carroll said there are five priority areas for the farm, starting with building a world-class ecosystem focused on advanced technologies in agriculture. The second priority, he said, is an innovation platform for research, acceleration of startups and collaboration. Third is the test site, he said, which will be patterned after the EPCOT Center at Disney World. He said Grand Farm envisions a place where people can go dream about the future and start to develop technologies to power the farms of the future. The next priority, he said, is an emerging digital academy for coding and robotics with schools focused on advanced agriculture skills. He said partnerships are in place and he expects to have a code school up and running in the spring.

Mr. Tehven said there is interest from many places around the world, including calls from Brazil, the United Kingdom and a Toronto company that is looking to expand. The “Cultivate Our Agriculture” technology conference held recently drew nearly 600 attendees, he said. Grand Farm wants to put growers at the center of the network, he said, due to the fact that growers are closest to the challenges and can help identify and solve problems. He said CHA Architects is helping with the design and student groups want to utilize the space to consider new possibilities. He said meetings have been held with Stanley Township and Cass County on how to design the site to meet code and there is a lot of excitement about the potential of the project.

In response to a question from Commissioner Piepkorn regarding drone regulations, Mr. Tehven said one of the advantages is all of the great work being done with drones and autonomy regulations at the Northern Plains Test Site near Grand Forks. He said farm vehicles may have different regulations than cars and trucks and the farm will have a drone program similar to the Grand Forks program. Faculty from NDSU attend Steering Committee meetings, he said, and NDSU will be involved as the farm progresses.

In response to a question from Commissioner Strand asking if this type of autonomous setup could be put anywhere in North Dakota or will there be gaps, Mr. Tehven said what is possible and what can be done will be determined by broadband limitations.

Commissioner Strand said it is nice to see and talk about the possibility of a bright future for agriculture.

Hearing on Alley Vacation of the Alley between Lot 12, Block 26 and a Part of Lot 7 and All of Lots 8-12, Block 25, Roberts Second Addition Continued to 12/16/19:
A Hearing had been set for August 12, 2019 on an application for the Alley Vacation of the alley between Lot 12, Block 26 and a part of Lot 7 and all of Lots 8-12, Block 25, Roberts Second Addition (1001 NP Avenue North and 28 10th Street North).
At the August 12, 2019 Regular Meeting the Hearing was continued to August 26, 2019.
At the August 26, 2019 Regular Meeting the Hearing was continued to October 21, 2019.
At the October 21, 2019 Regular Meeting the Hearing was continued to this day and hour; however, the applicant has requested the Hearing be continued to December 16, 2019.
Commissioner Piepkorn moved the hearing be continued to 5:15 o’clock p.m., Monday, December 16, 2019.

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.

Hearing on an Application Requesting a Plat of BLU Water Creek 5th Addition, a Replat of Lot 2, Block 1, BLU Water Creek 4th Addition, including a Vacation of Right of Way at Northeast Corner of the Intersection of 47th Street South and 33rd Avenue South (4609 33rd Avenue South) Continued to 12/2/19:
A Hearing had been set for this date and hour on an application requesting a Plat of BLU Water Creek 5th Addition, a Replat of Lot 2, Block 1, BLU Water Creek 4th Addition, including a Vacation of Right of Way at Northeast Corner of the Intersection of 47th Street South and 33rd Avenue South; however, the applicant has requested the Hearing be continued to December 2, 2019.
Commissioner Piepkorn moved the hearing be continued to 5:15 o’clock p.m., Monday, December 2, 2019.

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.

Parcels of Land in Harwood’s First Addition Rezoned (701 University Drive North and 702 12th Street North):
A Hearing had been set for October 7, 2019 on a petition requesting a zoning change from DMU, Downtown Mixed Use with a C-O, Conditional Overlay to DMU, Downtown Mixed Use and a request to repeal the C-O, Conditional Overlay on Lot 1, Block 7, Harwood’s First Addition.
At the October 7, 2019 Regular Meeting, the Hearing was continued to this date and hour.
Planning Coordinator Donald Kress said the applicant is proposing to build a two-story restaurant on the existing vacant laundromat site as well as additional parking. Due to the constraints of the two lots, he said, the applicant is requesting the existing C-O be removed, which was put in place in 2017 when the original applicant did not have final plans for the site. He said residential protection standards still apply with the removal of the C-O; however, the existing C-O limits building height, building and parking lot setback in relation to the northern property line as well as additional fencing requirements to any proposed parking lot. With the existing residential protection waiver, he said, the addition and the parking lot will be set back from the north property line in order to protect the existing residential to the north. The applicant has provided a site plan for the project, he said, and is in the process of obtaining a building permit.
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 a Certain Parcel of Land Lying in Harwood’s First Addition to the City of Fargo, Cass County, North Dakota:
Commissioner Grindberg moved the requirement relating to receipt of the Ordinance by the Commission one week prior to first reading be waived and that the Ordinance Rezoning a Certain Parcel of Land Lying in Harwood’s First 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.

Fargo Renaissance Zone Development Plan Update Approved:
A Hearing had been set for this date and hour to consider approval or denial of the Fargo Renaissance Zone Development Plan Update.
Planning Director Nicole Crutchfield said the Renaissance Zone Authority (RZA) and Planning Department staff are completing the final stages of the Renaissance Zone (RZ) Development Plan update. She said the first plan, approved in 1999, was for a 15-year period, with updates required by the Department of Commerce every 5 years and this update will provide the development framework of the RZ through 2024. She said the 2019 plan update continues to focus on renewal, investment and redevelopment, and the main changes are the updated boundary and updated goals to align with the Downtown InFocus and GO2030. She said boundary changes include the removal of Block 22, the addition of Block 57 and the re-evaluation of half blocks. Block 22 is completed, she said, and the proposal to add Block 57 was due in part to half of the block underutilized as a surface parking lot. She said with the recent reconstruction of Main Avenue, crossing and walking along Main Avenue is safer and more comfortable and developing this parking lot would create a true gateway to Downtown Fargo. Since 1999, the City has approved 242 RZ projects with 81 of the projects facilitating a significant investment, she said, and has contributed to an approximate increase of two and half times the assessed value of properties in the downtown core. The assessed value of Downtown property in 1999 was approximately $197,375,000.00, she said, and today, the boundary’s assessed value is about $546,331,600.00.

Commissioner Piepkorn said in 1999, Downtown Fargo property values were declining and the transformation has been incredible. He said the Renaissance Zone program has been incredibly successful.

In response to a question from Mayor Mahoney asking what the tax break includes, Ms. Crutchfield said 5 years of income tax and 5 years of property tax exemptions. She said there are also some minimum thresholds of what has to be developed. It is also important to remember, she said, Century Code allows for the RZ; however, if a five-year plan update is not submitted, the City is turning away prospects for developers and landowners. She said a RZ exemption is one-and-done and she knows some property owners who might be holding on to the possibility of doing a RZ project for a future investor and have chosen not to use the RZ plan until they have some longer range plans or that second or third generation family owner might work on a RZ project.
Commissioner Strand moved the Fargo Renaissance Zone Development Plan update be approved, as presented.

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

Elimination of MATBUS LinkFM Downtown Circulator Route Approved: Appropriate Staff Directed to Bring Back Costs for a Route for Special Events:
A Hearing had been set for this date and hour to consider service level options if the LinkFM Downtown Circulator Route is eliminated.
Assistant Transit Director Matthew Peterson said he is seeking direction from the City Commission on preferred service level options if Fargo discontinues the LinkFM Downtown Circulator Route. He said LinkFM is provided on a 50/50 cost share between Moorhead and Fargo; therefore, Fargo’s participation affects Moorhead. He said the City of Fargo eliminated funding for the LinkFM in its 2020 Budget in order to fund the TapRide service for the Industrial Park. Fargo can still choose to fund some level of the LinkFM, he said, based on citizen feedback and the recommendation of the MAT Coordinating Board, which voted to recommend scheduling public hearings regarding the possible elimination of LinkFM and to recommend the continuance of LinkFM during Downtown community events effective January 2, 2020. He said if the service level changes, Moorhead will need to hold a public hearing, which could be scheduled December 9th. He said Fargo’s future participation should be known before the December 9th hearing in Moorhead and Transit staff can provide feedback from the Informational Meeting held November 13th and from this City Commission meeting. Currently, he said, LinkFM is a free circulator with 15-minute frequency serving downtown Moorhead and Fargo. The bus is operated by the City of Fargo through a contract with First Transit, using a Fargo bus with operating costs funded equally by Fargo and Moorhead, he said, and both cities share equally in the cost for regular service while Fargo pays the full cost for additional service for events held in Downtown Fargo. In Moorhead, he said, the State of Minnesota provides 80 percent and the City provides 20 percent of Moorhead’s share of operating. Fargo utilizes all available Federal and State grants for fixed route bus service and pays 10 percent of the cost thereafter, he said, including 10 percent of LinkFM. He said LinkFM started in 2015 as a solution for limited parking Downtown during major construction and the Moorhead Center Mall east parking lot is a Park and Ride lot. Initially, he said, free transfers were offered to promote ridership; however, in 2017, the promotional free transfers discontinued, which caused a ridership decline. The Federal Transit Administration (FTA) requires a public hearing to let the public know a route is being eliminated, he said, and if the service is changed to only special events, FTA approval would be needed due to the fact that it could be considered a charter service. He said some of the financial considerations are cost per ride in 2019 is $6.31, which is higher than the system-wide cost per ride of $4.87.

Commissioner Strand stated the 2020 budget has been approved, therefore the LinkFM route ceases on December 31st and a market adjustment for bus driver wages was approved; however, he is open to considering a service for special events.

Mr. Peterson said MATBUS needs FTA approval and a proposed budget.

In response to a question from a member of the audience asking if the budget could accommodate continuing the LinkFM by using a smaller shuttle similar to what is used for Paratransit rather than a large bus, Mr. Peterson said it is not feasible at this time.

Commissioner Gehrig said he sees the value of using the service for special events such as the Street Fair; however, not as a daily commuter. He said the vote tonight should be to end the route and then come back with a proposal if the FTA approves a service for special events.

Commissioner Strand moved to proceed with the elimination of the MATBUS LinkFM Downtown Circulator Route as of 12/31/19 and direct appropriate staff to explore and bring back a proposal of costs for a route for special events.

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

Applications for Property Tax Exemptions for Improvements made to Buildings Approved:
Applications for property tax exemptions for improvements made to buildings:
a. David R. and Marcie G. Camrud, 1909 Rose Creek Drive South (3 year).
b. Neal and Beth A. Steiner, 2613 34th Avenue South (3 year).
c. Christopher L. and Ashley A. Johnson, 3407 11th Street South (3 year).
d. Karla and Craig Flisk, 714 20th Street North (3 year).
e. Jeremiah and Stephanie Hoff, 3402 Evergreen Road North (5 year).
f. John K. and Janice L. Melland, 2307 34 1/2 Avenue South (5 year).
g. Brian S. and Jane M. Feickert, 1713 4th Street North (5 year).
h. Lisa and Kyle Ouradnik, 3513 Evergreen Road North (5 year).
i. Joseph E. Mettler, 1633 3rd Street North (5 year).
j. Paul A. and Tanya J. Light, 207 15th Avenue North (5 year).
k. Chad E. and Natallie J. Sparrow, 1242 1st Street North (5 year).
Commissioner Piepkorn moved the applications be approved.

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 $3,699,516.47 for cost reimbursement for the FM Metropolitan Area Flood Risk Management Project for October 2019. He said the costs are for land purchased for the channel, the 2nd Street and Main Avenue project, and various in town levee projects, house demolitions and site restorations.
Commissioner Grindberg moved the cost reimbursement request in the amount of $3,699,516.47 for the FM Diversion Flood Project be approved as presented.

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.

Rick Steen Appointed to the Fargo Dome Authority:
The Board received a communication from Mayor Mahoney recommending that Rick Steen be appointed to the Fargo Dome Authority as the Cass County Commission nominee to fill a vacancy created by the passing of Vern Bennett whose term would have expired April 1, 2023.
Commissioner Strand moved Rick Steen be appointed as a member of the Fargo Dome Authority for a term ending April 1, 2023.

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.

Construction Projects Update:
City Engineer Brenda Derrig presented information on some of the major construction projects in 2019 including 52nd Avenue South, Main Avenue, 19th Avenue North and 23rd Avenue South at 42nd Street, development projects including Bison Meadows, Selkirk Addition and Madelyn’s Meadows/Eagle Valley, and flood projects at Copperfield Court/Oakcreek, Rosewood/Rosecreek and Belmont/Lindenwood as well as the Oak Grove Pedestrian Bridge. She said most of the construction projects are completed; however, due to an extremely wet fall, some projects are still waiting on electrical work or have sidewalk, trail and boulevard work remaining for 2020. There are no safety incidents to report this time, she said, and for the 2019 construction season, there were two minor safety incidents.

2020 Infrastructure Funding Policy and Fee Schedule Approved:
The Board received a Report of Action from the Finance Committee stating the proposed 2020 Fargo Infrastructure Funding Policy integrates 22 of the 26 recommendations from the Special Assessments Taskforce as well as comments received from the public.
City Engineer Brenda Derrig said the proposed policy details the method of financing public infrastructure projects using Federal, State and City funds as well as special assessments and clearly reiterates the City’s intended use of Prairie Dog Funds. The proposed policy for initial installations or new developments, she said, would include Letters of Map Revisions (LOMR) which will no longer be special assessed, greenfields will continue to be 100 percent assessed or paid by the developer, a four-tiered system for multi-family residences will be used and independent, standalone traffic signal installation will be 100 percent City funded. Lift station rehabilitations/replacements will no longer be assessed, she said, an increase in the amount assessed for sewer and water in the Downtown Mixed Use zone (DMU) will create uniformity and sewer service replacement as part of a larger project will no longer be assessed. She said the proposed policy also specifies the project categories to which Prairie Dog funds will be applied when available. Proposed assessment reductions, she said, include buying down paving for single residence and multi-family Tiers 1, 2 and 3 by 50 percent, buying down paving for multi-family in Tier 4, commercial and DMU by 25 percent, eliminating special assessments for single-family residences and multi-family Tiers 1 and 2 which do not direct-front an arterial and streetlights and/or traffic signals will be included within the paving capped assessed cost.

Assistant City Engineer Tom Knakmuhs gave examples of how these changes impact typical homes and multi-residential units. One example, he said, is a typical home with a 75-foot front and if the water and sewer main, water and sanitary services, streetlights, driveway approaches and street were replaced and the storm sewer and sidewalks were rehabilitated, this home would have been special assessed $18,668.00 with the former policy, $13.597.00 with the current policy and with the proposed new policy, the special assessment would be $9,198.00. Changes in fees, he said, include the engineering fee will be reduced from 11 percent to 10 percent, administration fees will be reduced from 6 percent to 4 percent and special assessment bonding will be reduced from 1 percent to .75 percent. The legal, miscellaneous and construction carrying costs will be unchanged, he said, and the inflationary index would be set at 2 percent annually. The major impacts of the new Infrastructure Funding Policy and what staff has been able to do is eliminate special assessments associated with traffic signals, rehab/replacement of sanitary lift stations and streetlight assessments when part of a street reconstruction project. He said staff has also been able to eliminate the costs of arterial reconstruction assessments for single-family residences and multi-family Tiers 1 and 2 and sewer service replacement assessments when part of a street reconstruction project. Another change is a 50 percent reduction on construction costs assessed on single-family and small multi-family properties.

Commissioner Grindberg said a lot of time was spent on this topic since the Special Assessments Taskforce was started many months ago looking at the history and the background of special assessments and infrastructure costs. He said he wants to extend his sincere appreciation to the Taskforce as well as discussions at the City Commission to get to this point. He said this has been a long time coming, it has been a tremendous effort and the results are dramatic and in favor of the taxpayers. This proposed policy, he said, reflects the sentiment of former House Majority Leader Al Carlson and Senate Majority Leader Rich Wardner, who started the Prairie Dog Bill, which spreads North Dakota’s oil wealth across the state. He said the timing of the Taskforce as well as Legislative action have made a profound change for the City. He said he has had numerous conversations with former colleagues describing what City staff has recommended and all are pleased with what they have heard based on the intent under the framework of state statute and what the City is focusing on with reconstruction that is going to have a significant impact. He said “hats off” and “great work” and he is excited about moving forward in modernizing Fargo’s infrastructure.

City Attorney Erik Johnson said Commissioner Gehrig’s proposed Ordinance would take Prairie Dog Funds and place those funds as they come in from Bismarck into a restricted account to be applied toward annual certified special assessments. In other words, he said, for people who have been levied special assessments in accordance with a policy such as this proposed Infrastructure Funding Policy, an amount would be levied for a particular project and annually each property owner would have an amount that is certified for collection. He said the proposed Ordinance would take money out of the restricted account and apply it across the City towards residents’ annual certified collection amounts. He said the proposed Ordinance would provide latitude for the City Commission on a supermajority basis to allocate some of that restricted money toward other projects; however, the Prairie Dog Bill itself has restrictions that it can be used for aging infrastructure only, not on new development or anything similar.

Commissioner Gehrig said the proposed Ordinance would be a framework and it is not stating the City has to do the exact draft of what he is thinking. He said it provides support for the Capital Improvement Plan (CIP) and though he supports the 2020 Infrastructure Plan, which the motion is doing, it would not change the City’s special assessment system as far as being allocated against the 2020 Infrastructure Plan. It also provides for input from the whole City Commission to say “what are we going to do with this newfound Prairie Dog Bill money for the people of Fargo?” He said what he is asking the Board to consideris the fact that the City Commission could come up with an Ordinance stating “here is where the Prairie Dog Funds are going to go.” All of the City Commissioners heard the clamoring from constituents saying they want their specials to go down, he said, and this would directly support that.

Commissioner Strand said he is trying to discern the difference that would result from Commissioner Gehrig’s motion versus the motion the Board is considering. He said what he sees is Commissioner Gehrig wants an Ordinance, which is one nuance, and attaching it to certified specials; however, he does not see much difference in what is being suggested that would be significantly different than what is being proposed and what has come out of the process.

Commissioner Gehrig said there is significant differences as far as the procedure if the Commission approves the Ordinance. He said the Prairie Dog Funds can be used for any new infrastructure, for example, the City could build a new parking ramp in downtown Fargo or repair existing parking structures. He said the Board should focus these funds to offset special assessments for the City, which is not indicated in Century Code; however, it is what the people want. He said it is not a major difference and he simply wants to have a clearer structure of how the City is going to use these funds going forward. He said he is not dictating where the funds go, he wants to have the five Commission members set out the rules and he is pushing that all of the funds go towards reducing the special assessment burden for the residents of Fargo.

Mayor Mahoney said the reality is the City would never use Prairie Dog Funds for a parking lot and it is in the policy how the Funds can and cannot be used. He said the policy presented is one Commissioners Gehrig and Grindberg have worked on for many months and it very much addresses all of the concerns. He said the policy presented tonight is a methodology of how the City is going to spend the Funds to bring down special assessments.

Ms. Derrig said with this policy, the City Commission still has to approve the CIP, which will determine where those funds are going and all of the Prairie Dog Funds will go towards reconstruction projects and once the CIP comes up for approval, that is when the Board will really be locking those funds into what projects will be done. She said according to State law, the Prairie Dog Funds cannot be used for a parking ramp. She read from the State Statute that the Prairie Dog Funds can be used for water treatment plants, wastewater treatment plants, sewer and water lines, water storage systems, storm water infrastructure, road and bridge infrastructure, airports, electric transmission lines, and natural gas and communication infrastructure, excluding fiber optic. She said that is the reason streetlights and traffic signals were omitted due to the fact that there is fiber in some of those projects.

Commissioner Gehrig said, for example, State law mentions airports and there is an idea for a parking ramp at the airport. He said he sees that language as wide open as to what the City can use the Prairie Dog Funds for and he wants the people of Fargo to know the City is intending to buy down specials with this money and that is what they want. He said he is not trying to dictate where the money goes; what he wants is for the people to have a clear idea of exactly, every year going forward, as long as these funds are available, that these funds will be used to buy down special assessments. He said he is perplexed by the pushback and he wants the residents to know the City heard them and they know the City is going to buy down specials with this and that specials is the only thing for which these funds will be used.

Mayor Mahoney said the present policy addresses Commissioner Gehrig’s concerns and the airport cannot build a parking ramp with Prairie Dog Funds. He said that is specifically outlined in State law as well as the Prairie Dog policy; therefore, Commissioner Gehrig’s concern about a parking ramp does not exist due to the fact that the City cannot fund a parking ramp or the State will take the money away.

Commissioner Strand thanked Commissioners Gehrig and Grindberg for leading the effort and dialogue in the community. He said it has been very valuable and it touched a raw nerve with the public. The CIP is going to be the roadmap going forward, he said, and his advice is to put more transparency into the CIP process and step up the public visibility in the Board’s interactions in the CIP process so it is visible right up front all the way through. He said he commends everyone for their hard work and the City for listening to the diverse voices and to the members of the public who challenged the City Commission and pushed for these changes. He said he knows it comes across as hard criticism to take; however, it is serious stuff when it is people’s money and Fargo has a scarlet letter regarding special assessments and it is important the City addressed it. What the City has is not perfect, he said; however, it is substantially improved.
Commissioner Gehrig moved the City Attorney be directed to draft an Ordinance that would require the dedication of Prairie Dog Funds to the reduction of Special Assessments certified for collection each year.
The motion died for lack of a second.

Commissioner Grindberg moved the 2020 Infrastructure Funding Policy and Fee Schedule be approved as presented.

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.

Ordinance Relating to Classification of Ordinance Violations to be Placed on First Reading at the Next Regular Meeting of the Board (Moved from the Consent Agenda):
Commissioner Piepkorn said he asked that this item be moved from the Consent Agenda to the Regular Agenda in order to get an update on the current fines and what the fines will be with the Ordinance change.

Assistant City Attorney Nancy Morris said in 2019 the Legislature passed House Bill 2304 allowing municipalities to adjust some traffic fines by as much as 100 percent of the state’s fine schedule. The legislation was effective August 1st, she said, and shortly thereafter, Police Chief David Todd identified a number of traffic offenses that contribute to public safety concerns as noted in the Municipal Court bond schedule which was presented to each Commission member. She said the Ordinance will be amended for the next reading to reflect a few additional offenses including the unlawful passing of a school bus and proceeding past a school bus in the oncoming lane. She said those fines are presently $50.00 and the proposal is to increase those to $100.00, which is 100 percent of the allowed fine.

Chief Todd said the traffic fines section of the North Dakota Century Code was written in 1973 and the State has fallen behind in traffic fines. He said, for example, a 15 mile an hour over the speed limit ticket in North Dakota is $15.00, whereas in Minnesota, it is $140.00 and in South Dakota, $125.00. A stop sign violation in North Dakota, he said, is a $20.00 fine, and in Minnesota it is $130.00 and $125.00 in South Dakota. Under the proposed recommendations in Fargo, he said, the 15 miles per hour over speed limit ticket of $15.00 today would jump to $30.00 and a stop sign violation would go up to $40.00. He said he receives many complaints about the traffic in Fargo and even though these are significantly less than neighboring states, this step needs to be taken and perhaps with slightly larger fines, there may be some deterrence.

In response to a question from Commissioner Piepkorn hypothetically asking what the fine would be if someone drives 37 miles an hour in a 25 mile per hour residential zone in Fargo, Chief Todd said that is exceeding the speed limit by 12 miles per hour and would be a $12.00 fine today. He said if the increases are approved, that fine would increase to $24.00. He said the increased fines are only for municipalities; therefore, outside of the municipality, for example on the freeway, it would still be the previous fine. He said Fargo is the last larger municipality in the State to pass this increase in fines.

Commissioner Piepkorn moved the Ordinance Amending Section 01-0305 of Article 01-03 of Chapter 01 of the Fargo Municipal Code Relating to Classification of Ordinance Violations be received and filed and placed on first reading at the next Regular Meeting of the Board.

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

Commissioner Piepkorn moved that the Board adjourn to 5:00 o’clock p.m., Monday, December 2, 2019.

Second by Grindberg. All the Commissioners voted aye and the motion was declared carried.
The time at adjournment was 6:30 o’clock p.m.