Board of City Commissioners - November 4, 2019 Minutes
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 4:00 o'clock p.m., Monday, November 4, 2019.
The Commissioners present or absent were as shown following:
Present: Gehrig (via conference call), Grindberg, Piepkorn, Strand, Mahoney.
Absent: None.
Mayor Mahoney presiding.
Commissioner Piepkorn moved that the Board retire into Executive Session to discuss negotiating strategy and/or to provide negotiating instructions to its negotiator, the Mayor and also to consult with its attorneys regarding the terms of an existing agreement with, and the negotiation of a revised agreement with, the Fargo Municipal Airport Authority, which matters are reasonably anticipated to result in civil litigation, said matters being authorized by North Dakota Century Code 44-04-19.1
subsections 2 and 9 as it would create an adverse fiscal effect on the bargaining and/or litigation position of the City if discussions regarding offers to be made or accepted, negotiating strategy to be taken or legal consultation about negotiations or litigation were to occur in an open meeting.
Second by Strand. All the Commissioners present voted aye and the motion was declared carried.
At 4:05 o’clock p.m. the Board moved to the River Room to discuss the matter in Executive Session.
Members present were: Gehrig (via conference call), Grindberg, Piepkorn, Strand, Mahoney.
The Executive Session closed at 4:50 o’clock p.m. and the meeting reconvened in public session at 5:00 o’clock p.m.
All Commissioners present. Mayor Mahoney presiding.
The Mayor read a message with the following information: A photo of Harrison “Harry” in his Halloween costume riding his Radio Flyer wagon retrofitted as a Fargo Solid Waste trash truck had received more than 1,200 likes on the City’s Facebook page; Fargo Cass Public Health (FCPH) will hold “Flu Shot Friday” on November 22nd; MATBUS received the AdWheel Grand Award at the American Public Transportation Association conference in New York City for a video to catch the attention of personal vehicle owners not already using public transportation; the Library launched its Lucky Day Collection providing the most popular books available immediately on a first come, first serve basis; on October 3rd West Fargo began sending 1 million gallons of wastewater per day to the City of Fargo for treatment and the flow can eventually increase to 6.5 million gallons per day when the Wastewater Treatment Plant expansion is completed in 2022; and a video was shared showcasing the Fargo Police Department’s Community Trust Officers visits to high school students discussing identity and mental health.
Order of Agenda Approved:
Commissioner Grindberg moved the Order of the Agenda be approved, moving the discussion from the Executive Session to the public comment item regarding the Municipal Airport Authority (No. 38) at the end of the Regular agenda.
Second by Strand. 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 October 21, 2019 be approved as read.
Second by Grindberg. All the Commissioners voted aye and the motion was declared carried.
Consent Agenda Approved:
Commissioner Strand moved the Consent Agenda be approved as follows:
1. Receive and file 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.
2. Receive and file the Notice of Appeal Richard Nelson vs. Fargo City Commission.
3. Applications for Games of Chance:
a. Knights of Columbus for a raffle on 2/2/20.
b. Davies Theatre Parent Group for a calendar raffle from 11/7/19 to 11/10/19.
c. Sts. Anne & Joachim Catholic Church for bingo on 11/10/19.
d. Katrina Cichon Benefit for a raffle on 11/23/19.
e. Legacy Children’s Foundation for a raffle on 12/9/19.
f. Nativity Elementary for a raffle on 1/31/20.
g. Fargo North High School Spartacas Dance Team for a raffle on 12/7/19.
h. ND Society of Professional Land Surveyors Foundation for a raffle on 2/5/20.
4. Amended Site Authorization for Fargo Metro Baseball Association at Specks Bar.
5. Change Order No. 12 for an increase of $3,763.65 for Project No. FM-15-K1.
6. Change Order No. 2 for an increase of $31,342.87 and time extension to 6/30/20 for Project No. SL-19-A1.
7. Change Order No. 1 to move the tree installation and gatewell cover staining final completion dates to 6/1/20 for Project No. FM-14-13.
8. Sole Source Procurement with Richard W. Baird & Company, Inc. for bond underwriter services for the Mercantile Project financing.
9. Receive and file Financial Status Report – Budget to Actual for Quarter ending 9/30/19 for major operating funds (unaudited).
10. Receive and file Investment Report – Quarter ended 9/30/19.
11. Amendment of Solicitation/Modification of Contract with Department of Veterans Affairs exercising option to extend services until 2/29/20.
12. Financial Award from the ND Department of Commerce/DCS for the Gladys Ray Shelter for an Emergency Solutions Grant.
13. Purchase of Service Agreement with ND Department of Human Services, Behavioral Health Division for substance abuse prevention.
14. Resolution approving Plat of West 29 Seventh Addition (Attachment “A”).
15. Bid award to RDO Equipment Company in the amount of $210,000.00 for the purchase of two motor graders with wings (RFP19169).
16. Amendment No. 4 to Agreement with First Transit for revision of fees from 8/1/19 through 12/31/20.
17. RFP for security services at the Ground Transportation Center (GTC) and Metro Transit Garage (MTG).
18. Finalize the contract with GFI GENFARE SPX to provide fare collection systems at MATBUS (SSP19146).
19. Finalize the contract with FASTER Asset Solutions for Fleet Management Software at MATBUS.
20. Bid award to Goodyear Commercial Tire and Service Center for tire replacement and services (RFP19151).
21. Change Order Nos. 1 and 2 in the total amount of $36,100.00 and time extension to 8/31/20 for Project No. SW 19-01.
22. Change Orders for Project No. SW 16-03 Phase II:
a. No. 12 for an increase of $9,636.58 for mechanical contract.
b. No. 13 for an increase of $46,300.00 for mechanical contract.
c. No. 14 for an increase of $3,361.00 for mechanical contract.
d. No. 8 for an increase of $4,100.24 for the electrical contract.
23. Change Order No. 19 for an increase of $500,160.68 for the mechanical contract for Project No. WA1301.
24. Bid award to Classic Protective Coatings, Inc. in the amount of $1,573,925.00 for Project No. WA1906.
25. Change Order No. 1 for an increase of $119,789.13 for Project No. WA1951.
26. Bills in the amount of $8,304,807.27.
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.
Final Balancing Change Order No. 1 for Improvement District No. NR-17-B Approved:
Commissioner Strand moved Final Balancing Change Order No. 1 for an increase of $13,145.00 for Improvement District No. NR-17-B be approved.
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.
Change Order No. 7 for Improvement District No. BR-18-A1 Approved:
Commissioner Strand moved Change Order No. 7, which modifies the project requirements for payment of incentives for Improvement District No. BR-18-A1 be approved.
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.
Change Order Nos. 20 - 25 for Improvement District No. BN-19-A2 Approved:
Commissioner Strand moved Change Order Nos. 20-25 in the amount of $47,697.82 for Improvement District No. BN-19-A2 be approved.
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.
Change Order No. 1 for a Time Extension for Improvement District No. BN-19-F1 Approved:
Commissioner Strand moved Change Order No. 1 for a time extension to 11/15/19 for Improvement District No. BN-19-F1 be approved.
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.
Contract Amendment No. 4 for Improvement District No. BR-18-B2 Approved:
Commissioner Strand moved Contract Amendment No. 4 with Houston Engineering in the amount of $27,000.00 for Improvement District No. BR-18-B2 be approved.
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.
Presentation of the 2045 Fargo Moorhead Area Metropolitan Transportation Plan, Metro GROW: Resolution of Support of the Fargo Moorhead Area Metropolitan Transportation Plan, Metro GROW Adopted:
Michael Maddox, Metropolitan Council of Governments (MetroCOG), said the Metropolitan Transportation Plan (MTP) is one of four federally required documents mandated to be completed by metropolitan planning organizations (MPO’s). He said it is the core document of the MPO and required to be updated every five years and have a planning horizon of 20-25 years. He said in order for the draft plan entitled Metro GROW to be approved by North Dakota Department of Transportation (NDDOT) and Federal Highway Administration (FHWA), MetroCOG must receive resolutions from each of its member jurisdictions to demonstrate regional approval of the planning effort. A main focus of the plan is balancing livability with mobility, he said, and an example of that philosophy is the Main Avenue project, which not only moves vehicles it enhances the area. He shared information on bicycle and pedestrian projects, the highest crash intersections, pavement conditions, bridge conditions, existing and committed levels of service, traffic volumes, financial assumptions and funding, future Fargo projects and recommendations.
In response to a question from Commissioner Piepkorn about the roadway vision plan that shows a loop around the cities, Mr. Maddox said the region has lacked a higher speed corridor going around the region to provide connectivity to some of the other outlying areas rather than using the grid system. He said that concept has been moved forward in the Cass County Comprehensive Plan with a roadway that would follow the Diversion; however, other alignments are being looked at as well.
In response to a question from Commissioner Piepkorn asking about the 2020 Census and how it can change allocations, Mr. Maddox said instead of sending prioritization to the state and having them decide which projects fit in their program, the authority would be local on how to spend funds.
Commissioner Grindberg moved the Board adopt the following Resolution in support of the Metro COG 2045 Metropolitan Transportation Plan entitled METRO GROW 2045:
WHEREAS, The Fargo City Commission is the duly elected governing body for the City of Fargo, North Dakota and is responsible for the planning and development of a safe and functional transportation system; and
WHEREAS, The Fargo Moorhead Metropolitan Council of Governments
(MetroCOG), is the Metropolitan Planning Organization (MPO) designated by the Governors of North Dakota and Minnesota to maintain the metropolitan area's transportation planning process in accordance with federal regulations; and
WHEREAS, MetroCOG has undertaken the task of updating its Metropolitan Transportation Plan (MTP), Metro Grow, which is a vital element of this planning process and which documents transportation projects' eligibility for future federal funding; and
WHEREAS, The metropolitan transportation planning process was guided by the Metropolitan Transportation Technical Committee (TTC) composed of a wide cross-section of local multimodal technical experts including engineers, planners, transit directors and state and federal transportation officials; and
WHEREAS, Public and private organizations representing numerous transportation interests, as well as groups and individuals from socially disadvantaged groups were invited, encouraged and involved in the Plan's preparation, in full compliance with MetroCOG's Public Participation Plan; and
WHEREAS, Metro Grow, which covers the time horizon of 2019 to 2045 was prepared using an extensive intermodal planning process; and
WHEREAS, Metro Grow provides a comprehensive, coordinated program of projects and strategies that will improve the urban and extraterritorial transportation system of the Fargo Moorhead metropolitan area.
NOW, THEREFORE, BE IT RESOLVED, That the City of Fargo does hereby adopt the Fargo Moorhead Area Metropolitan Transportation Plan, Metro Grow, and agrees to use it as a tool to implement metropolitan transportation goals and objectives, which will complement overall development of the metropolitan transportation system.
Second by Piepkorn. On the vote being taken on the question of the adoption of the Resolution Commissioners Grindberg, Piepkorn, Strand, Gehrig and Mahoney voted aye.
No Commissioner being absent and none voting nay, the Resolution was adopted.
Petition Requesting the Rezoning of Parcels of Land in Timber Creek Third Addition Denied (3431, 3445, 3457, 3483, 3495 and 3509 47th Avenue South):
At a Hearing held on October 1, 2019 the Fargo Planning Commission recommended approval of a change in zoning from SR-2, Single Dwelling Residential to SR-3 Single Dwelling Residential.
Planning Coordinator Donald Kress said the zoning change would affect Lots 1 thorough 7, Block 1, Timber Creek Third Addition. He said 22 percent of the owners of the area adjacent to and extending 300 feet from the land area proposed to be changed, excluding the width of streets, have signed a petition protesting the change. Due to the protest percentage being greater than 20 percent, a super majority vote, or 4 out of 5, is required for approval rather than the usual simple majority, he stated. The current zoning is SR-2, he said, and the applicant is requesting a zoning change to SR-3. An SR-2 zone allows only detached single-family dwellings, he said, while in an SR-3 zone it is possible to build duplexes. There is neighborhood opposition to the zone change and there are neighbors here that may want to speak, he said, as well as the developer.
Heidi Kvistad, 3432 47th Avenue South; Matthew Bring, 4706 34th Street South; Wayne Hegseth, 3626 46th Avenue South; Jay Manley, 3304 46th Avenue South; and Kelly Rott, 3334 46 Avenue South, spoke about concerns with street parking, snow removal, street safety, increased traffic, rental properties, congestion, property value affects, lots too expensive but price not lowered, changes to closeness of neighborhood, changes to original plan and assurances of single-family homes and the resulting give and take.
In response to a question from Commissioner Grindberg asking about the parking and snow removal restrictions, Director of Operations Ben Dow said work is under way for winter signage. He said the area is challenging with blowing snow, with many driveways and tight spacing which leaves little area for placement of snow. He said similar challenges are faced in the Deer Creek neighborhood.
Don Dabbert, Developer, said the green space buffer would stay as laid out. He said his company is not the original developer; the lots were purchased in 2014 from the PRG Group. He has tried to sell the lots, he said; however, that has stalled due to the price point for overall size and price of the infrastructure. These would still be one structure on one lot, he stated, the lots are not being divided in half, allowing a two-family structure to be built, essentially a duplex. Homes could be for rentals or multi-generational, he said, and he has heard interest from prospective property owners to live on one side with parents living next door. This area has a robust, underutilized infrastructure, he said, and having more families would not overload the system. While he does not have the capability of saying he can protect where people park or to do anything with the snow, he said, he is not proposing anything other than single or maybe two-family dwellings. There are movements to make housing more affordable across the nation, he said, for example, Portland, Oregon passed allowing any single-family home to be used as a duplex and Minneapolis took similar action. He said costs are driving innovative ways to think outside the box. He said this tool is in the Land Development Code and within his right to request and the Board can decide if applicable. His business model has about half of the homes made to order and the rest built for inventory or a small number to rent, he said, and the rezoning is a first step to see if he is even able to design and build a project there.
In response to a question from Commissioner Strand asking whether these would be rentals, Mr. Dabbert said it could be for a single family or an owner on one side and the other side could be a rental.
In response to a question from Commissioner Strand about the issues raised by Mr. Bring, which includes the idea that the burden of proof lies with the developer, City Attorney Erik Johnson said by practice, the Planning staff provides some analysis as the result of dialogue with applicants. He said ultimately, the Board’s standard motion is to adopt the findings of staff and part of the requirements of law is to either adopt or reject the findings that have been mostly prepared by staff. It states in the LDC the applicant has the burden of proof, he said; however, there is the
long-standing practice that the Planning staff collects the file and provides some analysis in a standardized format for the benefit of the Planning Commission and the City Commission.
Commissioner Grindberg said he has been in a similar position as the residents and respects the process of protest. He said in his case the neighborhoods concerns about property value did not hold true and he does not feel there is enough to sway his position from supporting the Planning Commission’s recommendation.
Commissioner Gehrig said the people buying those homes were told that there would be a buffer between Fox Run and the large apartments. He said the free market is being skewed by what the government tells people they will do. He said he respects Mr. Dabbert and his business; however, he believes the market has changed and single-family homes may not be as marketable as they were, in large part due to special assessments. He said he sympathizes with the homeowners who bought their homes based on the fact the government told them there would be single-family homes there and now they are getting a lot of rentals making it possible for higher density. He said this is happening all over Fargo and if the Board is going to guarantee that a development will be single-family, they need to make a better guarantee or stop making the guarantees. He said he will vote “no” and he hopes the other Board members do as well.
Commissioner Piepkorn said he does not recall voting on a guarantee.
Mayor Mahoney said there was a lot of discussion with the previous developer and a compromise was reached. He said he has the same empathy for the residents who were told single-family homes would be across from them, across the park. He said it was not a guarantee; it was what was voted on with that particular developer. He said there was some development done lateral and across the street, so that plan was modified, and now this would be the third time.
Commissioner Strand said he is torn due to the fact that people who have invested their future in their homes; however, there is also a housing crisis across the nation. He said it is being looked at across the City about what can be done for affordable housing and how to provide it. There is a trend across the country allowing a duplex, triplex or fourplex on a single-family lot, condensing more people into the core neighborhoods, he said. If Mr. Dabbert can swing it, he would defer instantly to it being purchased homes rather than rentals, he said; however, the Board cannot control whether they are rented or sold. He said his predisposition is it to try to open up more home ownership for more families.
Mr. Bring said by definition a duplex is that it has one owner, not two, so at least half are almost certainly going to be rentals.
Commissioner Gehrig said he approved rezoning in this neighborhood previously and remembers it well as it was his neighborhood at the time. He said these homeowners were told they would be single-family homes. It is one thing to say the free market works, he said, it is another thing to change a zoning law two or three years after the purchase of a home. He said there should either be no zoning or what is there needs to be respected. A change in 30 to 40 years would be different, he said, to change zoning after two or three years is not ok. He said citizens get frustrated with leadership when they are told one thing and it changes.
Commissioner Grindberg offered the following Resolution and moved its adoption:
WHEREAS, All legal requirements in connection with the above-described request for rezoning have been complied with; and
WHEREAS, There have been no written or verbal protests to the request for rezoning and no one is present to protest thereto.
NOW, THEREFORE, BE IT RESOLVED, That the findings of staff be accepted and the rezoning be approved on the basis that the proposal satisfactorily complies with the Comprehensive Plan, Standards of Section 20-0906.F (1-4) and all other applicable requirements of the LDC.
Second by Piepkorn. On the vote being taken on the question of the adoption of the Resolution Commissioners Grindberg, Piepkorn and Strand voted aye.
Commissioners Gehrig and Mahoney voted nay.
The motion was declared lost due to the requirement of a three-quarters majority when protests have been received which represent 20% or more of the legal protest area.
In response to a request from Mr. Kress for clarification on the failed motion, Mr. Johnson said with the 3-2 vote, the motion failed. He said it is necessary to have findings to support either approval or denial.
Mayor Mahoney said Mr. Dabbert is caught because the previous developer had made the assumption there would be single-family homes in those lots. He said he did not support the motion due to the fact that the past, single-family homes had been negotiated with the established neighborhood. He said he agrees with Commissioner Grindberg that values rarely decrease; however, perhaps there could be different modalities to market the lots.
Mr. Johnson said he is satisfied that the statements of the two individuals that voted against the zoning change create enough finding for purposes of support of the decision.
Parcels of Land in Bohnsack’s Second Addition Rezoned (1807 16th Street South):
At a Hearing held on October 1, 2019 the Fargo Planning Commission recommended approval of a change in zoning from SR-2, Single Dwelling Residential to P/I, Public and Institutional on Lot 1, Block 12, Bohnsack’s Second Addition.
Planning Coordinator Donald Kress said Fargo Public Schools requests the School District owned lot be rezoned to match the Lewis and Clark Elementary School zoning with the appropriate zoning, 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.
Commissioner Grindberg offered the following Resolution and moved its adoption:
WHEREAS, All legal requirements in connection with the above-described request for rezoning have been complied with; and
WHEREAS, There have been no written or verbal protests to the request for rezoning and no one is present to protest thereto.
NOW, THEREFORE, BE IT RESOLVED, That the findings of staff be accepted and the rezoning be approved on the basis that the proposal satisfactorily complies with the Comprehensive Plan, Standards of Section 20-0906.F (1-4) and all other applicable requirements of the LDC.
Second by Piepkorn. On the vote being taken on the question of the adoption of the Resolution Commissioners Grindberg, Piepkorn, Strand, Gehrig and Mahoney voted aye.
No Commissioner being absent and none voting nay, the Resolution was adopted.
Ordinance Rezoning Certain Parcels of Land Lying in Bohnsack’s Second 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 Bohnsack’s Second Addition to the City of Fargo, Cass County, North Dakota be placed on first reading.
Second by Piepkorn. On call of the roll Commissioners Grindberg, Piepkorn, Strand, Gehrig and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.
Applications for Property Tax Exemptions for Improvements Made to Buildings Approved:
a. Jeremy W. and Kara M. Magelky, 3101 Peterson Parkway North (3
year).
b. Jeremy W. and Kara M. Magelky, 3101 Peterson Parkway North (3
year).
c. Neil K. and Kathleen D. Sandness, 2916 38 1/2 Avenue South (3 year).
d. Bruce D. Berg and Linda S. Kremer, 3016 38th Avenue South (3 year).
e. Gary L. Geller, 2205 8th Street North (5 year).
f. Dennis A. and Mary J. O’Briant, 1914 26 1/2 Avenue South (5 year).
g. William E. and Marilyn A. Martinson, 42 36th Avenue Northeast (5 year).
h. Kurt David and Meredith Cameron, 1702 Plumtree Road North (5 year).
i. Travis R. Kapp, 1137 28th Street North (5 year).
j. Randall A. and Angela R. Lekander, 1533 8th Street North (5 year).
k. Darwin T. and Corine C. Wittmier, 3130 8th Street North (5 year).
l. Adam A. and Kristi L. Reich, 82 23rd Avenue North (5 year).
m. Duane A. and Korina Hilsendeger, 1525 5th Street North (5 year).
n. Christopher B. and Susan M. Langerud, 1707 2nd Street North (5 year).
o. Harry W. and Linda R. Bosch, 1413 14 1/2 Street South (5 year).
Commissioner Grindberg moved the applications be approved.
Second by Piepkorn. On call of the roll Commissioners Grindberg, Piepkorn, Strand, Gehrig and Mahoney voted aye.
No Commissioner being absent and none voting nay, the motion was declared carried.
Update on Improvement District No. BN-17-A:
City Engineer Brenda Derrig said a Hearing was held October 21, 2019 on the special assessments list for the construction of Improvement Districts. At the October 21st Hearing, it was determined there would be further discussion on Improvement District No. BN-17-A due to a protest by Nathan Everson. She said Assistant City Engineer Tom Knakmuhs and Special Assessments Coordinator Dan Eberhardt met with Mr. Everson to discuss the special assessments. She said Mr. Everson requested a deferral for his arterial assessment, which will go to the Finance Committee on November 12th and then would be coming back to the Board two weeks later with the conditions on that deferral.
At 6:21 p.m., the Board took a five-minute recess.
After recess: All Commissioners present. Mayor Mahoney presiding.
2020 Ground Transportation Center (GTC) Improvement Projects Recommendations Approved:
The Board received a communication from Assistant City Administrator Michael Redlinger stating the recommendation is that the City Commission approve the following: Receive and file the Opinion of Probable Construction Cost Estimate, Budget Adjustment Worksheet, anticipated revenues and expenditures for the 2020 Comprehensive GTC Improvement Projects; authorize staff to proceed with a combined design and bid process for the Jefferson Lines project and GTC Above-Grade Transit project, as revised; and the GTC Below-Grade structural project. In addition, he said, it is requested that the City Commission approve KLJ Project Design and Build Schedule (Attachment “3”) and KLJ Amendments to Engineer-Owner Agreements (Attachment “4”). He said the Board received and approved the Comprehensive Study on the MATBUS Transit Facility in January that spoke to the GTC and to the growth of the Transit system over time. Work has been underway to work on the underground condition of the GTC, he said, and some structural conditions were identified. He said there were concerns that warranted additional investigation, and in July, the Board received an update of the Transit portions of the improvements proposed for the GTC. The Board directed staff to look at both the underground improvements and the above ground structural improvements, he said, and bring back a comprehensive package to see sources and uses of funds and revenues for the projects. The Board’s packet contains a detailed memo which was approved by the Finance Committee. The project was originally about $4.2 million, he said, and after looking at a modified project to reduce costs, the project proposed now is a $3.2 million project that meets the expectations of what will be available for transit revenues, which is about $2.2 million. He said the Jefferson project was scaled back from $163,000.00 to $135,000.00 with costly deck revisions being removed. He said it will be re-evaluated in the future and the existing canopy will be kept in place. The security and safety upgrades were retained, he said, and the space allotted will be better utilized at the GTC. He said below grade, the beam and wall connection will be repaired along with some concrete and drain tile work. About $1.3 million of the $3.2 million project will be funded locally with $469,000.00 being provided by the Transit Department and the C1 TIF, he said.
In response to a question from Commissioner Gehrig asking how long the TIF has been in place, Director of Strategic Planning and Research Jim Gilmour said this is the last year money will be collected from the TIF as state law only allows it to go until the debt is paid, so the money collected in 2020 will be the last money received for the TIF. He said the TIF goes back to the early 1980’s.
Commissioner Gehrig said the City has been paying a TIF for nearly 39 years for the Island Park Ramp and included the GTC into that, which is a huge indicator of why incentives are a bad deal for Fargo. He said he is 36 years old and the TIF has been on the books longer than he has been alive and it will finally, maybe, someday, reach back and make the money back for the incentive.
Commissioner Grindberg said he had concerns about this project and about whether the left hand knows what the right hand is doing. Mr. Redlinger walked him through it, he said, and he is now convinced and while he still does not like it, he will support it. There needs to be a longer-term plan about moving the GTC out of Downtown, he said, and he commends Mr. Redlinger for his diligence.
Commissioner Grindberg moved the 2020 Ground Transportation Center Improvement Projects recommendations be approved as presented.
Second by Strand. On call of the roll Commissioners Grindberg, Strand, Piepkorn and Mahoney voted aye.
Commissioner Gehrig voted nay.
The motion was declared carried.
Parking Lease Agreement and Easement with T&K Property Management, LLC Approved:
The Board received a communication from City Attorney Erik Johnson stating Tom Smith, the owner of the Great Northern Bicycle Company, located north of the Mercantile Project which will include a City-owned multi-level parking garage, is contemplating construction of a small number of residential townhomes lying north of, and adjacent to, the parking garage that is yet to be constructed. He said Mr. Smith’s proposal is to rent 10-14 parking spaces within the garage, along with some additional floor area which is not readily usable for parking purposes. If Mr. Smith via his entity, T&K Property Management, LLC, elects to exercise his option, he said, he and the City would enter into a long-term parking lease agreement.
Director of Strategic Planning and Research Jim Gilmour said this agreement would give Mr. Smith an option for a long-term lease, 40 years or longer, as long as the parking garage remains in operation. He said the cost for the parking spots would be $130.00 a month, which is 20 percent more than others will pay, due to the spots being designated and cannot be oversold. Costs would be tied to inflation and increase each year, he said, and the developer would pay for the improvements. He said Mr. Smith would have up to three years to exercise his option.
Commissioner Gehrig said between this building and the RoCo Garage, the City will lose $700,000.00 per year at a minimum due to operating these parking facilities. Those in favor of TIFs may not want to hear about losing money on these deals; however, the Island Park Ramp has lost thousands of dollars and the GTC has lost thousands of dollars, and this is also a loser for Fargo and always will be. This facility will lose $300,000.00 at a minimum every single year, forever, he said.
Mr. Gilmour said the Parking Authority fund is self-supporting and does not receive any general property taxes. He said the revenue for these facilities will come from a combination of revenue from parking, TIF revenue and revenue from new development that happens because of the parking garages, as well as net revenue from parking facilities that have already been paid for.
Commissioner Piepkorn moved the Parking Lease Agreement and Easement with T&K Property Management, LLC be approved, subject to legal review.
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.
Public Comment Regarding the Municipal Airport Authority: Mediation Process with Fargo Municipal Airport Authority Approved:
Commissioner Strand moved that the City enter into mediated negotiations with the Fargo Municipal Airport Authority with the intent of mutually agreeing to an updated Memorandum of Understanding that essentially mirrors the spirit and terms of the original 1969 Memorandum of Understanding, as later amended, and that if not mutually agreed to in a period not to exceed 45 days, the Fargo City Commission will immediately move forward with an orderly dissolution of the Municipal Airport Authority as allowed per state law and in compliance with the FAA, said mediation to occur by selection of a single individual to serve as a non-binding meditator to assist such negotiations, said selection to occur by agreement of each party's negotiator or negotiators; Additionally, under the mediation process, the negotiators are tasked with bringing up to date and contemporizing the terms and agreements established by our forefathers five decades ago, and delivering a 2020 Memorandum of Understanding that also predetermines future timelines so as to assure continued future operation of the Airport under terms reflective of our shared City and community leaders' vision when they established the Municipal Airport Authority and, in their combined wisdom, defined a working relationship intended to go forward well into the future.
Second by Piepkorn.
Patrick Sweeney, Fargo Jet Center; Danny Schatz, Northwest Aviation; Rick Berg; Ken Pawluk and Don Kilander, former Airport Authority members; Lyle Andvik, Red River Aero; Dave Sahl, Fargo Aircraft Maintenance; Shawn Johnston, Dakota Air Parts and Erik Lind, Member of the Airport Authority shared the following comments:
• The City of Bismarck governs its airport, which seems dormant.
• Fargo with an Airport Authority historically is progressive and receptive to growing general aviation.
• The City Commission would not be able to manage as well as the Authority.
• Dissolving the Authority would be a disaster.
• The City of Minot runs its airport and things do not get done quickly.
• Fargo’s facilities are well cared for.
• Fargo is a gateway, portal to the country and job creator.
• The airport is important to the city and its growth.
• There is a good system in place that serves the public and the City well.
• The dispute seems to be about employees and building a parking ramp.
• The agreement in place serves all interests well.
• This can be solved without taking it to extremes.
• Authority members have examined the agreements and the law is clear.
• Appreciation for mediation, which makes resolution possible.
• MOU starts out with sticking point that employees are to remain City employees.
• Good to come to the table and start at square one.
• Airport Authority is well managed, efficient and executes it responsibilities effectively.
• If it is not broke, do not try to fix it.
• More bureaucracy would make it more difficult to do business with the Airport.
• There is confusion about why there is a disagreement.
• Airport Authority is well managed, effective and pro-business.
• Running an airport is complex with priorities, FAA regulations and state laws.
• The Airport Authority felt the negotiations were “take it or leave it.”
• Leadership needs to work together toward an agreement, sit down and hash out.
• The 1969 agreement does not say anything about management, hiring and firing or setting compensation, it says employees can participate in city pension plan.
• The City is a pass-through entity – the Authority can go elsewhere.
• Why risk the repercussions of dissolving an Authority?
• Would want existing employees to remain in City pension plan.
Commissioner Gehrig moved to amend the motion to allow airport employees to stay on the City’s Health and Pension Plans.
The motion died for the lack of a second.
Commissioner Grindberg commended Commissioner Strand for moving the process ahead with a mediation proposal. To amend the motion now would be messy, he said, as it is best to let the mediation process work, the outcomes can be dealt with afterwards. He said to dissolve the Airport Authority would take three votes by the Commission. He appreciates the feedback, he said, the toughest job as an elected official is to know how the silent majority feels on an issue. He said he will not vote to dissolve because he believes the vast majority of the citizens of Fargo are behind the Airport Authority and keeping the business as usual. He said it is incumbent on the Board to work through this minor issue of 50 years of gray.
Commissioner Gehrig said he mirrors Commissioner Grindberg’s sentiments; he also will not vote to dissolve the Airport Authority.
Commissioner Strand thanked all who shared their thoughts by speaking, through emails, phone calls and personal meetings over the past weeks. He said he is not done gathering information on the issue. The forefathers did a great job envisioning an airport, he said, and both sides would be remiss to let that implode. It goes back to what they did; back to the spirit, intentions and the contracts, he said. State law allows Airport Authorities, he said; however, law also requires government subdivisions to honor their contracts with each other. The agreement and the services provided by the City to the Airport Authority need to be revisited, he said and he believes an agreement can come from this that mirrors the intentions of the people before and pave the way to a better future. It is for the good of the people to have a functioning airport that honors the spirit of what was established decades ago, to move forward professionally and get on the high road, he stated.
Mayor Mahoney thanked those who came to speak. He said Fargo has a great airport and the management has done a great job of bringing in different vendors and services into the community. An MOU has not been done since 1969, he said, and this is really to clarify the MOU and to define the relationship. He said the Board is happy to go into mediation and find a path forward and to work together for a solution to this problem. He said it is a very important institution as voiced by many people in the community.
Commissioner Gehrig said the Airport Authority wants to part with the City and to have their human resources, healthcare and other services through the City, while the City is saying in order to have those benefits, their employees must be City employees. The Airport Authority is standing against that and will not give the City their employees, he said, which is the number one crux of the issue. The City can contract with them for benefits and they will pay the City, he said. He will vote no, he said, as the Airport Authority will not give up their employees.
On call of the roll on the original motion Commissioners Strand, Piepkorn, Grindberg and Mahoney voted aye.
Commissioner Gehrig voted nay.
The motion was declared carried.
Commissioner Piepkorn moved that the Board adjourn to 5:00 o’clock p.m., Monday, November 18, 2019.
Second by Grindberg. All the Commissioners voted aye and the motion was declared carried.
The time at adjournment was 7:16 o’clock p.m.