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Fargo City Commission - April 4, 2022 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 5:00 o'clock p.m., Monday, April 4, 2022.
The Commissioners present or absent were as shown following:
Present: Gehrig, Piepkorn, Preston, Strand, Mahoney.
Absent: None.
Mayor Mahoney presiding.

Mayor Mahoney read a message with the following information: April is STD Awareness Month and Fargo Cass Public Health (FCPH) provides counseling, testing and treatment; this is National Public Health Week and FCPH team members will talk on social media about how their efforts contribute to the overall health of the community; this is National Library Week and this year’s theme is “Connect with Your Library;” the Library is holding a Library Card Design Contest; residents have started moving into the Mercantile building, with 50 of the 100 apartments already leased; the Planning Department was nominated by United Way for the Power of Partnership Award for 2022 in recognition of their role in allocation of HUD and CARES funds for work in the prevention of homelessness; the Fargo Police Department (FPD) recently hosted K-9 Detector Training and Certification as well as competitions where Sergeant Samuel Bollman and his K9, Blue, and Detective Brett Witte and his K9, Kilo, were honored; the FPD’s LexisNexis Desk Officer Reporting System is now available, which enables law enforcement agencies to collect minor incident reports online from the public; and a video was shown honoring recently retired Finance Director Kent Costin.

Order of Agenda Approved:
Commissioner Piepkorn moved the Order of the Agenda be approved, moving Item No. “3” from the Consent Agenda to the Regular Agenda and adding Ian additional item to the Regular Agenda to consider an appointment to the Airport Authority.
Second by Preston. All the Commissioners voted aye and the motion was declared carried.

Minutes Approved:
Commissioner Preston moved that the Minutes of the Regular Meeting of the Board held on March 21, 2022 be approved as read.
Second by Gehrig. All the Commissioners voted aye and the motion was declared carried.

Consent Agenda Approved:
Commissioner Gehrig moved the Consent Agenda be approved as follows:
1. 2nd reading and final adoption of an Ordinance Rezoning Certain Parcels of Land Lying in Legacy I Seventh Addition to the City of Fargo, Cass County, North Dakota; 1st reading, 3/21/22.

2. Receive and file Summons in the matter of David Swanson, as Personal Representative of the Estate of Amy Swanson, deceased vs. Trax Entertainment Group, Ltd. f/k/a Jam Theatricals, Ltd., City of Fargo and Fargo Dome Authority.

3. Resolution Establishing Massage Therapy Establishment Requirements and Fee (Attachment “A”) (moved to the Regular Agenda).

4. Gaming Site Authorizations Jon Greenley Amvets Post #7 at Amvets and Hi-Ho Burgers and Brews.

5. Applications for Games of Chance:
a. El Zagal Provost Gaming for a sports pool from 9/22 to 1/23.
b. ND Pottery Collectors Society for a raffle on 6/11/22; Public Spirited Resolution.
c. Fargo Lions for a sports pool from 9/12/22 to 1/9/23.
d. TNT Kid’s Fitness for a raffle on 4/7/22.
e. YWCA Cass Clay for a raffle on 4/25/22.
f. Essentia Health Fargo Foundation for a raffle board on 5/3/22.
g. St. John Paul II Catholic Schools for a raffle on 4/30/22.
h. Fargo Youth Baseball for a raffle on 4/9/22.

6. Purchase of Agenda and Meeting Management Software (RFP21195).

7. Bid award to NorthStar Safety, Inc. in the amount of $535,510.00 for Project No. TM-22-A1.
8. Bid advertisement of Project No. FM-22-C.

9. Amended Memorandum of Offer to Landowner for Permanent Easement (Levee and Retaining Wall for Flood Control), Permanent Easement (Storm Sewer) and Easement (Temporary Construction Easement) with Jessica L. and Darrell R. Johnson (Project No. FM-19-C).

10. Encroachment Agreement with the Dakota Boys and Girls Ranch Foundation.

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

12. Access Easement (Storm Sewer Easement) with Southeast Cass Water Resource District.

13. Sole Source Procurement with Automated Maintenance Services, Inc. for 3rd floor janitorial services at City Hall (RFP21014B).

14. Agreement for Professional Services with KLJ Engineering, LLC for the GTC Elevator Modernization and the Municipal Court Reroofing Projects (SSP22063).

15. Notice of Grant Award with the ND Department of Emergency Services-Division of Homeland Security for FY2021 Homeland Security Grant Program (CFDA #97.067).

16. Sole Source Procurement with Grand Forks Fire Equipment for the purchase of self-contained breathing apparatus, a new fill station and Mako breathing air system (SSP22065 a and b).

17. Contractor Agreement with SOCO Consulting, LLC and SurryStone Resources, LLC.

18. Resolution Approving Plat of Industrial Subdivision Number 5 (Attachment “B”).

19. Bid award to Sanitation Products in the amount of $502,024.00 for two automated side load refuse trucks (RFP23001).

20. Bid award to Sanitation Products in the amount of $145,814.00 for two hook hoist refuse bodies (RFP23002).

21. Change Order No. 2 for an increase in the amount of $2,470.00 for the Metro Transit Garage Hoist Installation Project (RFQ21072).

22. Sole Source Procurement with Filmtec Corporation for the Effluent Reuse Facility Ultrafiltration Membranes (SSP22064).

23. Agreement for Cost-Share Reimbursement Fargo Regional Water System Distribution Extensions Project with the State of ND through the State Water Commission.

24. Contract and bond for Project No. UR-21-A1.

25. Bills in the amount of $6,127,650.18.

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

Amended Engineer’s Report for Improvement District No. BN-22-K Approved:
The Board received an Amended Engineer’s Report from Assistant City Engineer Tom Knakmuhs for New Paving and Utility Construction Improvement District No. BN-22-K.
Commissioner Gehrig moved the Amended Engineer’s Report for New Paving and Utility Construction Improvement District No. BN-22-K be approved.

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

Permanent Easement (Street and Utility) with J-Street Properties, LLC Approved (Improvement District No. BN-22-L1):
The Board received a communication from Land Acquisition Specialist Shawn Bullinger requesting authorization to proceed with a Permanent Easement (Street and Utility) with J-Street Properties, LLC in association with Improvement District
No. BN-22-L1.
Commissioner Gehrig moved the Permanent Easement (Street and Utility) with J-Street Properties, LLC in association with Improvement District No. BN-22-L1 be approved.

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

No Protests Received for Asphalt Mill and Overlay Improvement District No. PR-22-F1:
The Statutory Resolution of Necessity for the construction of Asphalt Mill and Overlay Improvement District No. PR-22-F1 in the City of Fargo, North Dakota, was duly published in the official newspaper for the City of Fargo, North Dakota on March 2 and 9, 2022 and no protests have been filed in the office of the City Auditor within the legal protest period.
Commissioner Gehrig moved that the Board declare that no protests have been filed to the construction of Asphalt Mill and Overlay Improvement District No. PR-22-F1.

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

Bids Received for Asphalt Mill and Overlay Improvement District No. PR-22-F1:
The bids for Asphalt Mill and Overlay Improvement District No. PR-22-F1 in the City of Fargo, North Dakota were opened at 11:45 o'clock a.m., March 30, 2022 and the bids were found to be as follows:

Border States Paving, Inc. Fargo, ND
Bid: $4,184,885.60

Northern Improvement Company Fargo, ND
Bid: $4,489,151.90

Central Specialties Inc. Alexandria, MN
Bid: $4,544,826.27

Contract for Asphalt Mill and Overlay Improvement District No. PR-22-F1 Awarded to Border States Paving, Inc. in the Amount of $4,184,885.60:
Commissioner Gehrig offered the following Resolution and moved its adoption:
WHEREAS, The City Engineer has prepared and filed a detailed statement of the estimated costs of Asphalt Mill and Overlay Improvement District No. PR-22-F1; and
WHEREAS, The Board of City Commissioners of the City of Fargo has considered the bids received March 30, 2022 for Asphalt Mill and Overlay Improvement District No. PR-22-F1 in the City of Fargo, North Dakota; and
WHEREAS, The City Engineer's tabulation of the bids received for Asphalt Mill and Overlay Improvement District No. PR-22-F1 shows the bid of Border States Paving, Inc. of Fargo, North Dakota, in the sum of $4,184,885.60 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 Border States Paving, Inc. in the sum of $4,184,885.60 is the lowest and best bid received.
BE IT FURTHER RESOLVED, That the contract for Asphalt Mill and Overlay Improvement District No. PR-22-F1 in the City of Fargo, North Dakota, be and the same is hereby awarded to Border States Paving, Inc. for the sum of $4,184,885.60, 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 Preston. On the vote being taken on the question of the adoption of the Resolution Commissioners Gehrig, Preston, Piepkorn, Strand and Mahoney voted aye.
No Commissioner being absent and none voting nay, the Resolution was adopted.

No Protests Received for Traffic Signal Improvements Improvement District No. TN-22-A1:
The Statutory Resolution of Necessity for the construction of Traffic Signal Improvements Improvement District No. TN-22-A1 in the City of Fargo, North Dakota, was duly published in the official newspaper for the City of Fargo, North Dakota on March 2 and 9, 2022 and no protests have been filed in the office of the City Auditor within the legal protest period.
Commissioner Gehrig moved that the Board declare that no protests have been filed to the construction of Traffic Signal Improvements Improvement District No. TN-22-A1.

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

Bids Received for Traffic Signal Improvements Improvement District No. TN-22-A1:
The bids for Traffic Signal Improvements Improvement District No. TN-22-A1 in the City of Fargo, North Dakota were opened at 11:45 o'clock a.m., March 30, 2022 and the bids were found to be as follows:
Strata Corporation Grand Forks, ND
Bid: $278,818.75

Fargo Electric Construction, Inc. Fargo, ND
Bid: $279,019.00

Parsons Electric Fargo, ND
Bid: $307,396.65

Contract for Traffic Signal Improvements Improvement District No. TN-22-A1 Awarded to Strata Corporation in the Amount of $278,818.75:
Commissioner Gehrig offered the following Resolution and moved its adoption:
WHEREAS, The City Engineer has prepared and filed a detailed statement of the estimated costs of Traffic Signal Improvements Improvement District No. TN-22-A1; and
WHEREAS, The Board of City Commissioners of the City of Fargo has considered the bids received March 30, 2022 for Traffic Signal Improvements Improvement District No. TN-22-A1 in the City of Fargo, North Dakota; and
WHEREAS, The City Engineer's tabulation of the bids received for Traffic Signal Improvements Improvement District No. TN-22-A1 shows the bid of Strata Corporation of Grand Forks, North Dakota, in the sum of $278,818.75 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 Strata Corporation in the sum of $278,818.75 is the lowest and best bid received.
BE IT FURTHER RESOLVED, That the contract for Traffic Signal Improvements Improvement District No. TN-22-A1 in the City of Fargo, North Dakota, be and the same is hereby awarded to Strata Corporation for the sum of $278,818.75, 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.

New Paving and Utility Construction Improvement District No. BN-22-L (Various Locations in North Fargo):
Commissioner Gehrig moved the following action be taken in connection with New Paving and Utility Construction Improvement District No. BN-22-L:

Adopt Resolution Creating Improvement District No. BN-22-L:
WHEREAS, The Board of City Commissioners of the City of Fargo, North Dakota, deems it expedient that Improvement District No. BN-22-L in the City of Fargo, North Dakota, be created

On 14 1/2 Street North between 1st Avenue North and Northern Pacific Avenue North.
On Northern Pacific Avenue North between 14th Street North and 14 1/2 Street North.

COMPRISING:
Lots 1 through 34, Inclusive, Block 22.
Lots 1 through 17, Inclusive, Block 23.
All platted within Reeves Addition.

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

NOW, THEREFORE, BE IT RESOLVED, That New Paving and Utility Construction Improvement District No. BN-22-L in the City of Fargo, North Dakota, be and the same is hereby created.

Request Report and Estimate of Cost From the City Engineer for Improvement District No. BN-22-L:
Direct City Engineer to report as to the general nature, purpose and feasibility relative to the construction of Improvement District No. BN-22-L in the City of Fargo, North Dakota; as well as an estimate of the approximate cost of said construction. (The Engineer's estimate of cost is $1,260,992.58.)

Order Plans and Specifications for Improvement District No. BN-22-L:
Direct City Engineer to prepare Plans and Specifications for the construction of Improvement District No. BN-22-L in the City of Fargo, North Dakota.

Adopt Resolution Approving Plans and Specifications and Engineer's Report for Improvement District No. BN-22-L:
WHEREAS, The Board of City Commissioners of the City of Fargo, North Dakota, has created Improvement District No. BN-22-L in the City of Fargo, North Dakota, as required by law; and
WHEREAS, Plans and Specifications and the Engineer's Report prepared by the City Engineer, have been considered.
NOW, THEREFORE, BE IT RESOLVED, That the Plans and Specifications and Engineer's Report for the construction of Improvement District No. BN-22-L in the City of Fargo, North Dakota, be and the same are hereby approved and ordered filed in the Office of the City Auditor.

Adopt Resolution Declaring New Paving and Utility Construction Necessary:
BE IT RESOLVED BY THE BOARD OF CITY COMMISSIONERS OF THE CITY OF FARGO:
That it be and is hereby declared necessary to construct New Paving and Utility Construction Improvement District No. BN-22-L in the City of Fargo, North Dakota, according to the Engineer’s Report for this district and the Plans and Specifications approved by the Board of City Commissioners of the City of Fargo, North Dakota, filed in the Office of the City Auditor, and open for public inspection. A map of the district is attached hereto and incorporated as if fully set forth herein.
That a portion of said New Paving and Utility Construction improvement is to be paid from State and Local Funds, and approximately 55% is to be assessed against the benefited property in amounts proportionate to and not exceeding the benefits to be derived by them respectively from said improvement.
Protests against the proposed New Paving and Utility Construction must be in writing and must be filed with the City Auditor's Office within 30 days after the first publication of this Resolution.
BE IT FURTHER RESOLVED, That the City Auditor's Office is hereby instructed to publish this Resolution, as required by law.

Direct City Auditor's Office to Call for Bids for Improvement District No. BN-22-L:
Direct City Auditor's Office to publish a Notice, as required by law, calling for bids for the construction of Improvement District No. BN-22-L in the City of Fargo, North Dakota.

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

Asphalt Wear Course Improvement District No. PN-22-A (Various Locations in South Fargo):
Commissioner Gehrig moved the following action be taken in connection with Asphalt Wear Course Improvement District No. PN-22-A:

Adopt Resolution Creating Improvement District No. PN-22-A:
WHEREAS, The Board of City Commissioners of the City of Fargo, North Dakota, deems it expedient that Improvement District No. PN-22-A in the City of Fargo, North Dakota, be created

LOCATION (Section 1):
On 57th Avenue South from 66th Street South to 67th Street South.
On 58th Avenue South from 66th Street South to 67th Street South.
On 59th Avenue South from Deer Creek Parkway to 67th Street South.
On Smylie Lane South.
On 60th Avenue South from 66th Street South to 68th Street South.
On Deer Creek Parkway from 350' east of 66th Street South to the City Limits.
On 66th Street South from 56th Avenue South to Deer Creek Parkway.
On 67th Street South from 56th Avenue South to Deer Creek Parkway.
On 68th Street South from 60th Avenue South to Deer Creek Parkway.
On Ashwood Loop South.

LOCATION (Section 2):
On Autumn Drive South from Maple Valley Drive South to Maple Valley Drive South.
On 36th Street South from 250' south of 60th Avenue South to 63rd Avenue South.
On 33rd Street South from 63rd Avenue South to 64th Avenue South.
On Maple Valley Drive South from Maple Leaf Loop to 63rd Avenue South.
On 63rd Avenue South from 33rd Street South to 36th Street South.
On Maple Leaf Loop.

LOCATION (Section 3):
On 50th Avenue South from 38th Street South to 51st Avenue South.
On 51st Avenue South from 38th Street South to 42nd Street South.

LOCATION (Section 4):
On 47th Avenue South from 45th Street South to 46th Street South.
On 49th Avenue South from 45th Street South to 47th Street South.
On 46th Street South from 47th Avenue South to 49th Avenue South.

LOCATION (Section 5):
On 34th Avenue South from 39th Street South to 42nd Street South.
On 36th Avenue South from 39th Street South to 42nd Street South.
On 39th Street South from 34th Avenue South to 300' south.

LOCATION (Section 6):
On 25th Street South from 32nd Avenue South to Rose Coulee.

COMPRISING (Section 1):
Lots 1 through 27, Block 1.
Lots 1 through 8, Block 2.
Lot 1, Block 3.
Lots 1 & 2, Block 4.
All in Ashwood 4th Addition.

Lots 1 through 7, Block 1.
Lots 10 through 21, Block 1.
Lots 29 through 38, Block 1.
Lots 1 through 11, Block 2.
Lots 1 through 9, Block 3.
Lots 1 through 31, Block 4.
Lots 1 through 7, Block 5.
Lots 12 through 22, Block 5.
Lots 1 through 13, Block 6.
Lot 1, Block 7.
Lots 7 through 14, Block 7.
Lot 1, Block 10.
Lots 13 through 32, Block 10.
Lots 15 through 33, Block 24.
All in Deer Creek Addition.

Lots 1 & 2, Block 1, Deer Creek 2nd Addition.

COMPRISING (Section 2):
Lot 10, Block 4, Prairie Farms Addition.

Lots 1 through 19, Block 4.
Lot 22, Block 6.
Lots 1 & 3, Block 7.
Lots 32 through 47, Block 8.
All in Maple Valley Addition.

Lots 1 through 18, Block 1.
Lots 32 through 41, Block 1.
Lots 1 through 24, Block 2.
All in Maple Valley 2nd Addition.

Lots 1 through 10, Block 1, Maple Valley Third Addition.

Lots 1 through 3, Block 1, Maple Valley Fourth Addition.

Lots 1 & 2, Block 1, Maple Valley Fifth Addition.

COMPRISING (Section 3):
Lots 1 through 19, Block 1.
Lots 1 through 20, Block 2.
All in Cottagewood Third Addition.

Lots 1 & 3, Block 1, William Thomas Addition.

COMPRISING (Section 4):
Lots 1 through 4, Block 1, Osgood Townsite 9th Addition.

Lots 1 & 2, Block 1, Osgood Townsite 10th Addition.

Lots 1 through 9, Block 1.
Lots 1 and 5 through 8, Block 2.
All in Osgood Townsite 11th Addition.

Lots 1 & 2, Block 1.
Lots 1 & 2, Block 2.
All in Osgood Townsite 12th Addition.

Lots 2 & 3, Block 1, Osgood Townsite Thirteenth Addition.

Lot 2, Block 1, Osgood Townsite Fourteenth Addition.
Lots 1 through 4, Block 1, Osgood Townsite Fifteenth Addition.

COMPRISING (Section 5):
Lot 1, Block 1, West Wind Addition.

Lots 1 & 2, Block 1, West Wind 2nd Addition.

Lots 1 through 4, Block 1, Asleson Farms 1st Addition.

Lots 1 & 2, Block 1, Asleson Farms 3rd Addition.

Lot 1, Block 1, Asleson Farms Fourth Addition.

Lot 1, Block 1, Asleson Industrial Park 3rd Addition.

Lot 1, Block 1, Asleson Industrial Park 4th Addition.

Lot 1, Block 1, Asleson Industrial Park 5th Addition.

Lot 1, Block 1, Asleson Industrial Park 6th Addition.

Lots 4 through 8, Block 1, DK First Addition.

Lots 3 & 5, Block 1, 42nd Street Addition.

Lot 1, Block 1, 42nd Street 2nd Addition.

Unplatted land in the NE corner of Township 139N, Range 49W, Section 27.

COMPRISING (Section 6):
All properties within that part of T139 North, R49 West, City of Fargo, Cass County, North Dakota, described as follows:

The West half of Section 25, together with the East half of Section 26, together with the NE quarter of Section 35, together with the NW quarter of Section 36, excepting there from that part lying West of 32nd Street South, and also excepting there from Lots 16, 17 and 18, Block 1, Rose Creek Fourth Addition, and also excepting there from Lot 1, Block 1, Chandler First Subdivision, and also excepting there from Lot 4, Block 1, Rose Creek Golf Course Annex Addition and also excepting there from Lot 21, Block 2, Rosewood Park.

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

NOW, THEREFORE, BE IT RESOLVED, That Asphalt Wear Course Improvement District No. PN-22-A in the City of Fargo, North Dakota, be and the same is hereby created.

Request Report and Estimate of Cost From the City Engineer for Improvement District No. PN-22-A:
Direct City Engineer to report as to the general nature, purpose and feasibility relative to the construction of Improvement District No. PN-22-A in the City of Fargo, North Dakota; as well as an estimate of the approximate cost of said construction. (The Engineer's estimate of cost is $2,617,619.01.)

Order Plans and Specifications for Improvement District No. PN-22-A:
Direct City Engineer to prepare Plans and Specifications for the construction of Improvement District No. PN-22-A in the City of Fargo, North Dakota.

Adopt Resolution Approving Plans and Specifications and Engineer's Report for Improvement District No. PN-22-A:
WHEREAS, The Board of City Commissioners of the City of Fargo, North Dakota, has created Improvement District No. PN-22-A in the City of Fargo, North Dakota, as required by law; and
WHEREAS, Plans and Specifications and the Engineer's Report prepared by the City Engineer, have been considered.
NOW, THEREFORE, BE IT RESOLVED, That the Plans and Specifications and Engineer's Report for the construction of Improvement District No. PN-22-A in the City of Fargo, North Dakota, be and the same are hereby approved and ordered filed in the Office of the City Auditor.

Adopt Resolution Declaring Asphalt Wear Course Necessary:
BE IT RESOLVED BY THE BOARD OF CITY COMMISSIONERS OF THE CITY OF FARGO:
That it be and is hereby declared necessary to construct Asphalt Wear Course Improvement District No. PN-22-A in the City of Fargo, North Dakota, according to the Engineer’s Report for this district and the Plans and Specifications approved by the Board of City Commissioners of the City of Fargo, North Dakota, filed in the Office of the City Auditor, and open for public inspection. A map of the district is attached hereto and incorporated as if fully set forth herein.
That a portion of said Asphalt Wear Course improvement is to be paid from State and Local Funds, and approximately 84% is to be assessed against the benefited property in amounts proportionate to and not exceeding the benefits to be derived by them respectively from said improvement.
Protests against the proposed Asphalt Wear Course must be in writing and must be filed with the City Auditor's Office within 30 days after the first publication of this Resolution.
BE IT FURTHER RESOLVED, That the City Auditor's Office is hereby instructed to publish this Resolution, as required by law.

Direct City Auditor's Office to Call for Bids for Improvement District No. PN-22-A:
Direct City Auditor's Office to publish a Notice, as required by law, calling for bids for the construction of Improvement District No. PN-22-A in the City of Fargo, North Dakota.

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

New Utility Construction Improvement District No. UN-22-M (Rocking Horse Farms 6th Addition):
Commissioner Gehrig moved the following action be taken in connection with New Utility Construction Improvement District No. UN-22-M:

Adopt Resolution Creating Improvement District No. UN-22-M:
WHEREAS, The Board of City Commissioners of the City of Fargo, North Dakota, deems it expedient that Improvement District No. UN-22-M in the City of Fargo, North Dakota, be created

On 51st Avenue South between Rocking Horse Road South and Veterans Boulevard.

On 59th Street South between 51st Avenue South and 52nd Avenue South.

On Rocking Horse Road South between Rocking Horse Circle and 51st Avenue South.

To be platted in Rocking Horse Farm 6th Addition.

COMPRISING:
All the unplatted land in the southeast quarter of Section 32, T139N, R49W of Cass County, a portion of which is to be platted as Rocking Horse Farm 6th Addition.

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

NOW, THEREFORE, BE IT RESOLVED, That New Utility Construction Improvement District No. UN-22-M in the City of Fargo, North Dakota, be and the same is hereby created.

Request Report and Estimate of Cost From the City Engineer for Improvement District No. UN-22-M:
Direct City Engineer to report as to the general nature, purpose and feasibility relative to the construction of Improvement District No. UN-22-M in the City of Fargo, North Dakota; as well as an estimate of the approximate cost of said construction. (The Engineer's estimate of cost is $1,226,728.44.)

Order Plans and Specifications for Improvement District No. UN-22-M:
Direct City Engineer to prepare Plans and Specifications for the construction of Improvement District No. UN-22-M in the City of Fargo, North Dakota.

Adopt Resolution Approving Plans and Specifications and Engineer's Report for Improvement District No. UN-22-M:
WHEREAS, The Board of City Commissioners of the City of Fargo, North Dakota, has created Improvement District No. UN-22-M in the City of Fargo, North Dakota, as required by law; and
WHEREAS, Plans and Specifications and the Engineer's Report prepared by the City Engineer, have been considered.
NOW, THEREFORE, BE IT RESOLVED, That the Plans and Specifications and Engineer's Report for the construction of Improvement District No. UN-22-M in the City of Fargo, North Dakota, be and the same are hereby approved and ordered filed in the Office of the City Auditor.

Adopt Resolution Declaring New Utility Construction Necessary:
BE IT RESOLVED BY THE BOARD OF CITY COMMISSIONERS OF THE CITY OF FARGO:
That it be and is hereby declared necessary to construct New Utility Construction Improvement District No. UN-22-M in the City of Fargo, North Dakota, according to the Engineer’s Report for this district and the Plans and Specifications approved by the Board of City Commissioners of the City of Fargo, North Dakota, filed in the Office of the City Auditor, and open for public inspection. A map of the district is attached hereto and incorporated as if fully set forth herein.
That a portion of said New Utility Construction improvement is to be paid from State and Local Funds, and approximately 74% is to be assessed against the benefited property in amounts proportionate to and not exceeding the benefits to be derived by them respectively from said improvement.
Protests against the proposed New Utility Construction must be in writing and must be filed with the City Auditor's Office within 30 days after the first publication of this Resolution.
BE IT FURTHER RESOLVED, That the City Auditor's Office is hereby instructed to publish this Resolution, as required by law.

Direct City Auditor's Office to Call for Bids for Improvement District No. UN-22-M:
Direct City Auditor's Office to publish a Notice, as required by law, calling for bids for the construction of Improvement District No. UN-22-M in the City of Fargo, North Dakota.

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

Contract for Seal Coat Improvement District No. PR-22-E1 Approved:
Commissioner Gehrig moved the Contract between the City of Fargo and Pearson Bros., Inc. for Seal Coat Improvement District No. PR-22-E1 in the City of Fargo, North Dakota, be approved.

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

Contract Bond for Seal Coat Improvement District No. PR-22-E1 Approved:
Commissioner Gehrig moved the following described Contract Bond be approved as to sufficiency:
Merchants Bonding Company (Mutual), in the amount of $976,841.28, for Seal Coat Improvement District No. PR-22-E1 in the City of Fargo, North Dakota.

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

Resident Comments:
Victoria Johnson, Will Thompson, Zachary Howatt, Michael Graalum and Branden Krieger spoke about affordable housing.

Parcels of Land in Metropolitan Park Third Addition Rezoned and a Planned Unit Development Master Land Use Plan Approved (4400 Calico Drive and 4455 30th Avenue South):
At a Hearing held on March 1, 2022 the Fargo Planning Commission recommended approval of a change in zoning from LC, Limited Commercial and MR-3, Multi-Dwelling Residential to MR-3, Multi-Dwelling Residential with a PUD, Planned Unit Development 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 applicant proposes to construct a new 200-plus unit multi-family project along with amenity spaces and connect it to the existing 75-unit multi-family apartment building. He said the new apartment would have two levels of enclosed parking and the project would go vertical above the standard three to four story apartment building, which will allow for efficient use of the property and existing utilities within the area. He said the PUD would allow for future development of an on-site daycare.

Commissioner Preston offered the following Resolution and moved its adoption:
WHEREAS, All legal requirements in connection with the above-described request for rezoning, Planned Unit Development (PUD) Overlay and Planned Unit Development Master Land Use Plan 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 Preston, Piepkorn, Gehrig, Strand and Mahoney voted aye.
No Commissioner being absent and none voting nay, the Resolution was adopted.

First Reading of an Ordinance Establishing a Planned Unit Development Master Land Use Plan and Rezoning Certain Parcels of Land Lying in Metropolitan Park Third Addition to the City of Fargo, Cass County, North Dakota:
Commissioner Preston moved the requirement relating to receipt of the Ordinance by the Commission one week prior to first reading be waived and that the Ordinance Establishing a Planned Unit Development Master Land Use Plan and Rezoning Certain Parcels of Land Lying in Metropolitan Park Third Addition to the City of Fargo, Cass County, North Dakota be placed on first reading.

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

Resolution Adopted Approving Metropolitan Park Third Addition:
Commissioner Preston offered the following Resolution and moved its adoption:
BE IT RESOLVED BY THE BOARD OF CITY COMMISSIONERS OF THE CITY OF FARGO:
WHEREAS, A Plat has been filed in the office of the City Auditor entitled “Metropolitan Park Third Addition” containing 1 Lot, 1 Block and 8.67 acres of land more or less, located at 4400 Calico Drive and 4455 30th Avenue South; and
WHEREAS, A Hearing was held March 1, 2022 by the Fargo Planning Commission, and notice of such Hearing had been published, as required by law, and said Plat had been approved by the Fargo Planning Commission and by the City Engineer; and
WHEREAS, The City Auditor's Office published a Notice of Hearing on said Plat in the official newspaper for the City of Fargo on March 23 and 30, 2022 that a Hearing would be held in the Commission Chambers, City Hall, Fargo, North Dakota at 5:15 p.m., April 4, 2022 at which time said Plat would be considered and all interested persons would be heard.
NOW, THEREFORE, BE IT RESOLVED, That the findings and recommendations of staff and the Planning Commission be accepted and the Plat entitled “Metropolitan Park Third Addition” be and the same is hereby in all things affirmed and approved on the basis that it complies with the Standards of Article 20-06, and all other applicable requirements of the Land Development Code, and that the Mayor of the City of Fargo and the appropriate City Officials are hereby directed to endorse their approval on the Plat and then direct Petitioner to file same for record in the Office of the Recorder of Cass County, North Dakota.

Amendment to the Growth Plan on Rocking Horse Farm Sixth Addition Approved:
A Hearing had been set for this day and hour to consider approval of an amendment to the Growth Plan on the proposed Rocking Horse Farm Sixth Addition from Commercial to Public and Institutional.
The Fargo Planning Commission recommended approval of the amendment to the Growth Plan at their February 1, 2022 meeting.
No written protest or objection to the amendment to the Plan has been received or filed in the Planning and Development Department.
The Board determined that no person is present to protest or offer objection to the Growth Plan amendment.
Commissioner Preston moved the amendment to the Growth Plan be approved.

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

Parcels of Land in Rocking Horse Farm Sixth Addition Rezoned (5801 52nd Avenue South):
At a Hearing held on February 1, 2022 the Fargo Planning Commission recommended approval of a change in zoning from AG, Agricultural 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 rezoning is needed in order to build a new elementary school for the West Fargo Public School District.

Commissioner Preston 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.

First Reading of an Ordinance Rezoning a Certain Parcel of Land Lying in Rocking Horse Farm Sixth Addition to the City of Fargo, Cass County, North Dakota:
Commissioner Preston 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 Rocking Horse Farm Sixth Addition to the City of Fargo, Cass County, North Dakota be placed on first reading.

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

Resolution Adopted Approving Rocking Horse Farm Sixth Addition:
Commissioner Preston offered the following Resolution and moved its adoption:
BE IT RESOLVED BY THE BOARD OF CITY COMMISSIONERS OF THE CITY OF FARGO:
WHEREAS, A Plat has been filed in the office of the City Auditor entitled “Rocking Horse Farm Sixth Addition” containing 1 Lot, 1 Block and 13.76 acres of land more or less, located at 5801 52nd Avenue South; and
WHEREAS, A Hearing was held February 1, 2022 by the Fargo Planning Commission, and notice of such Hearing had been published, as required by law, and said Plat had been approved by the Fargo Planning Commission and by the City Engineer; and
WHEREAS, The City Auditor's Office published a Notice of Hearing on said Plat in the official newspaper for the City of Fargo on March 23 and 30, 2022 that a Hearing would be held in the Commission Chambers, City Hall, Fargo, North Dakota at 5:15 p.m., April 4, 2022 at which time said Plat would be considered and all interested persons would be heard.
NOW, THEREFORE, BE IT RESOLVED, That the findings and recommendations of staff and the Planning Commission be accepted and the Plat entitled “Rocking Horse Farm Sixth Addition” be and the same is hereby in all things affirmed and approved on the basis that it complies with the Standards of Article 20-06, and all other applicable requirements of the Land Development Code, and that the Mayor of the City of Fargo and the appropriate City Officials are hereby directed to endorse their approval on the Plat and then direct Petitioner to file same for record in the Office of the Recorder of Cass County, North Dakota.

Application Filed by Dakota Specialty Milling, Inc. for Payment in Lieu of Tax Exemption (PILOT) Approved:
A Hearing had been set for this day and hour on an application filed by Dakota Specialty Milling, Inc. for a 5-year payment in lieu of property tax exemption (PILOT) for an addition to the existing building at 1430 41st Street North to expand their operation, which involves agricultural processing.
No written protests have been filed for the attention of the Board.
The Board determined that no person is present at this Hearing to protest or offer objection thereto.

Strategic Planning Director Jim Gilmour said Dakota Specialty Milling, Inc., is in the Industrial Park and is proposing a $4 million expansion that will create about 15 full time jobs with an average hourly wage of $20.00 to $28.00 per hour. The proposed property tax exemption would be about $57,000.00 per year, he said, and the applicant will pay the full land tax estimated at about $9,700.00 annually.

Ryan Aasheim, Chief Business Development Officer for the Greater Fargo Moorhead Economic Development Corporation (GFMEDC), said Dakota Specialty Milling, Inc. was before the Board in May and October 2016 and was approved for PILOTs to renovate and expand their operation. He said the company produces breads, granolas, crackers, snacks and other products and now has the opportunity to bring a significant line of business to the Fargo area. Since those two expansions, he said, the company now has about 150 employees, which far exceeded their job commitment made in 2016. He said this project consists of a 40,000 square foot addition, which will include 5,500 square feet of operations for a blending line and the remainder for raw and finished goods storage.

Dakota Specialty Milling Chief Executive Officer Peter Matthaei said the company has a customer who is pushing for the expansion and receiving the PILOT will help with the project due to current economics and trying to recover from the effects of the pandemic. He said Dakota Specialty Milling has a sister company in St. Louis, Missouri, and instead of expanding in St. Louis, the company would rather expand in Fargo due to resources and people. The PILOT will be a big help to make the decision to expand in Fargo, he said, where the company can add jobs and continue to grow.
In response to a question from Commissioner Gehrig asking if the company would expand if the PILOT was denied, Mr. Matthaei said the PILOT is a big consideration; however, the company will grow one way or another. He said this kind of incremental jump and the tax benefit is part of the decision-making.

Commissioner Gehrig said he does not blame Dakota Specialty Milling for asking for the incentive, Fargo has the workforce and resources; however, there is no but for.

In response to a question from Commissioner Preston asking about the GFMEDC monitoring job creation, Mr. Aasheim said the technology is almost in place to track incentives going forward.
Commissioner Piepkorn moved that the application filed by Dakota Specialty Milling, Inc. for a 5-year, 100 percent payment in lieu of tax exemption for an expansion project at 1430 41st Street North pursuant to Chapter 40-57.1, NDCC be approved.

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

Credit Agreement with Bank of North Dakota for Financing Associated with Local Cost-Share for Series C Work on the Red River Valley Water Supply Project Approved:
City Administrator Bruce Grubb said at the July 26, 2021 City Commission meeting, the Commission approved a Series C Interim Financing Agreement for the 25 percent local cost-share associated with 2021-2023 State funding for the Red River Valley Water Supply Project (RRVWSP). The Commission had previously approved Series A and Series B Agreements to begin construction on strategic components of the RRVWSP, he said, and Garrison Diversion is financing the Series C work through a Bank of North Dakota (BND) infrastructure loan. He said one of the BND loan requirements is a Credit Agreement from the participating entities, including Garrison Diversion Conservancy District (GDCD), the Lake Agassiz Water Authority (LAWA) and the cities of Grand Forks and Fargo. The Series C work involves continued construction on the Missouri River intake structure, Sheyenne River discharge structure and certain pipeline segments, he said. The reason for separate agreements, he said, is due to the fact that Series A was subject to a 10 percent local cost-share in the 2017-2019 biennium, while Series B (2019-2021 biennium) and Series C (2021-2023 biennium) are subject to a 25 percent local cost-share. He said the RRVWSP is a project to deliver Missouri River water to the Red River Valley and central North Dakota. The project is necessary, he said, due to the susceptibility of existing water supplies under drought conditions and is critical for the region to establish climate resiliency during periods of drought. The project is being funded through a State and local partnership with the GDCD representing the State of North Dakota and LAWA representing the local water users, he said. As a member of LAWA and a key sponsor of the RRVWSP, he said, the City of Fargo was asked to approve Series A, B and C agreements to enable the start of construction on the three critical project components: the Missouri River intake structure, transmission pipeline segments and the Sheyenne River discharge structure, he said. All necessary State and Federal permits for the construction have been obtained, he stated, and it is important to get the project started in advance of the permits expiring. Fargo’s share of the Series A, B and C project cost-shares have been included in the annual Water Utility budget, he said, with $850,000.00 paid in 2019, $900,00.00 in 2020, $800,000.00 in 2021 and $700,000.00 in 2022.

In response to a question from Commissioner Preston asking what is the build timeline, Mr. Grubb said initially it was ten years; however, now the project is expected to be completed and operable in six years.

In response to a question from Commissioner Piepkorn asking if there is a potential for Federal funding and if so, where would those funds be directed, Mr. Grubb said Federal funding is yet to be determined and he will pursue every avenue as he would like to see an equal share between State and Local users.

In response to a question from Commissioner Piepkorn asking if additional funds could be used to ease the burden on smaller rural water systems, Mr. Grubb said he is working hard to get that done and is concerned about affordability for some of the smaller users. He said he wants to be sure it is affordable and wants the original nominators for the 165 CFS to stay onboard.

Commissioner Strand said he is proud of the community and the support of regional governments to be on the path of resiliency from floods and droughts. He said this is leadership that will last for generations.

Commissioner Strand moved the Credit Agreement with the Bank of North Dakota for financing associated with the local cost-share for Series C work on the Red River Valley Water Supply Project be approved.

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

Appropriate Staff Authorized to Negotiate an Agreement with the ND Soybean Processors and Cass Rural Water Users District for Water and Wastewater Services:
City Administrator Bruce Grubb said the City received a request from the ND Soybean Processors for industrial water and wastewater service from the City’s Water Reclamation Facility. He said the ND Soybean Processors are planning a soybean processing facility near Casselton, ND and are requesting water and wastewater services from the City and the Cass Rural Water Users District (CRWUD). Similar to the Tharaldson Ethanol agreement in 2007, he said, it would involve a three-party agreement between the ND Soybean Processors, CRWUD and the City. Infrastructure improvements that are necessary to satisfy the request include an expansion of Fargo's Effluent Reuse Facility, he said, and transmission piping to deliver water and wastewater return for treatment. The CRWUD will provide the financing for the infrastructure improvements, he said, with the ND Soybean Processors repaying the debt. Upon successful start-up, he said, the new infrastructure would be deeded to the City to own and operate. Based on the quantities reflected in the request, he stated, the estimated annual gross revenues would be about $900,000.00 at full buildout. ND Soybean Processors have agreed to reimburse the City and CRWUD for any third-party engineering and legal fees associated with the project, he said.

In response to a question from Commissioner Piepkorn asking what the addition to the Effluent Reuse Facility will cost, Mr. Grubb said $10 million.

In response to a question from Commissioner Preston asking how does the financing for the plant work and is it paid up front by the City, or through special assessments or user fees, Mr. Grubb said the City is going to follow the Tharaldson model and CRWUD will finance the infrastructure improvements with a State Revolving Fund loan and ND Soybean Processors will repay that loan in its entirety, including the addition to the Effluent Reuse Facility.

In response to a question from Commissioner Strand asking how much water will the soybean processing plant require, Mr. Grubb said on a daily basis, the City returns 15 million gallons of effluent to the Red River and of that, the Tharaldson plant requires about a million gallons and the soybean plant will need less than a million; therefore, the City will still return about 13 million gallons to the Red River.

In response to a question from Commissioner Strand asking what is effluent, Mr. Grubb said that is the term for the water once it has been cleaned through the Wastewater Treatment Plant.

In response to a question from Commissioner Strand asking where potable water for the soybean plant will come from, CRWUD Manager Jerry Blomeke said potable water for the plant would come from the CRWUD, not from Fargo.
Mr. Grubb said the City had to permit the effluent reuse for industrial water through the State Water Commission (SWC), it has junior permit status and if drought conditions are such that the SWC feels the City has to reintroduce the water to the Red River, the SWC will shut down the permit.

Commissioner Gehrig moved appropriate staff be authorized to negotiate an agreement with the ND Soybean Processors and Cass Rural Water Users District for water and wastewater services.

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

Addendum to Master Services Agreement with Innowatts, Inc. for Development and Operation of an Infrastructure Carbon Reduction, Sustainability and Resiliency (ICRSR) Plan and Carbon Dashboards for City Facilities Approved:
City Administrator Bruce Grubb said the Sustainability and Resiliency Committee (SRC) was given a presentation on July 13, 2021 by Innowatts, Inc. and the Alliance Risk Group on the RoCo Smart Energy Ramp Project, a Public-Private Partnership between the City, Kilbourne Group, Xcel Energy, Border States Electric, Microsoft and the ND Industrial Commission. He said the presentation included a demonstration of a carbon dashboard created for the parking ramp for tracking emission reductions related to renewable energy components at the ramp, such as solar, EV charging and battery storage. Subsequently, he said, he requested a proposal from Innowatts to create some additional carbon dashboards for other City facilities to begin establishing a carbon baseline for the City. He said Innowatts would assist the City in completing an Infrastructure Carbon Reduction, Sustainability and Resiliency (ICRSR) Plan. The dashboards and ICRSR Plan will benefit the City in many ways, he said, including showing ICRSR progress to-date, help guide the SRC on next steps and obtain Federal and State funding for future ICRSR projects. Since Innowatts currently has a contract in place at the RoCo Parking Ramp, he said, it is proposed that an addendum to the existing contract be approved to add the additional dashboards. He said the Solid Waste Utility’s recently completed expansion of the gas collection wellfield at the Landfill came in under budget by about $160,000.00 and since a carbon dashboard will be completed for the Landfill, it is suggested the wellfield expansion cost savings be used to fund the scope and tasks associated with this proposal. He said the initial costs would be $114,000.00 and includes 12 months of dashboard operation, then $3,000.00 a month after the initial 12-month period.

Brian True, Innowatts Client and Delivery Team, gave a presentation about Innowatts, carbon dashboards, energy analytics and their partnership with Alliance Risk Group to help drive initiatives to help in carbon reduction. He said Innowatts would establish summary dashboards so the City can establish a baseline and those dashboards could be on the City’s website to show infrastructure carbon reduction and the benefits of clean energy investments. The implementation schedule is about 3 months, he said, and then work would continue on sustainability plans.

Mr. Grubb said in 2001, the City started collecting methane at the Landfill. He said methane, in terms of carbon, is 25 times more destructive than C02. The City wanted to eliminate emissions and saw this as a business opportunity, he said, and he sees these carbon dashboards as an extension of that work and they could possibly save the City money.

Commissioner Piepkorn said there are better ways to spend money and this is wasteful spending.

Commissioner Preston said this is exciting and the community will be more aware of the issues.

Commissioner Gehrig said having this information can help reduce costs in the future, it is more than “feel good stuff” and hopefully it will pay for itself in the future.

Commissioner Strand moved the Addendum to the Master Services Agreement with Innowatts, Inc. for development and operation of an Infrastructure Carbon Reduction, Sustainability and Resiliency plan and carbon dashboards for City facilities be approved.

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

At 6:10 p.m., the Board took a five-minute recess.
After recess: All Commissioners present. Mayor Mahoney presiding.

Update on Affordable Housing Priorities:
Planning Director Nicole Crutchfield gave a presentation outlining the Planning Department’s housing priorities, including government structure and the Department’s work, assessments and findings, as well as its strategic framework for the next steps. She said the City has many boards and committees with various roles, including human and social service administration and housing, redevelopment for certain blocks Downtown, application of tax incentive programs and implementation through legal entitlements. She also outlined the City’s various plans and how they work together, including GO2030, Downtown InFocus, Core Neighborhood, Renaissance Zone, Housing and Urban Development, Land Development Code and the FM Housing Plan. There are many definitions of housing, she said, including affordable, which is based on a household’s income in which the occupant is paying no more than 30 percent of gross income including utilities; workforce, aimed at 60 percent to 120 percent of Area Median Income (AMI); low, very low and extremely low income, which is 80 percent, 60 percent and 30 percent AMI, respectively; market rate, which are apartments rented at the maximum amount landlords can get without direct subsidy; and permanent supportive, which is housing with an intervention that combines housing assistance with support services. She shared a jobs and home proximity map as well as maps showing the areas of the City and those area’s average sale price of single-family and twin homes. The Planning Department’s housing strategy framework includes review of the FM MetroCOG Housing Study, she said, which will be available in about eight months, followed by a technical joint work group, support of HOME/HUD funded projects and the updated Land Development Code. She said she is also trying to hire a national consultant to help assess the housing needs in Fargo, which has proven difficult due to the fact that the housing crisis is nationwide and needs to be addressed more by the State and Federal governments. She said the housing problems are many and the City has to decide which problem it wants to solve first. There are other groups in the City who need to be a part of those conversations, she stated, including those working for affordable rental properties for senior citizens and those helping the homeless. It is estimated that about 40 percent of renters in Fargo are paying more than 30 percent of their income on rent, she said.

Commissioner Preston said this requires some outside help to clarify the number one goal; otherwise, there will be 20 different goals. She said the City will learn a lot from the MetroCOG study and where the gaps are.

Ms. Crutchfield said national expertise is needed and the housing market has not really recovered from the 2008 crash. She said another step is to find developers willing to take on projects.
Commissioner Piepkorn said the first step is the housing study, then some type of regional meeting with all of the entities.

Chris Brungardt, Chief Executive Officer of the Fargo Housing and Redevelopment Authority said he is working with Authentic Housing on plans for an eight-story building on the Burrell and Colonial apartment site and due to the fact that FHRA owns the property, Authentic Housing could more easily apply for federal housing tax credits, which are needed to do any affordable housing project. That project could start in 2024, he said, and FHRA is willing to manage the facility.

Mayor Mahoney said everyone agrees that affordable housing is needed in the City; however, it is a complex problem and most cities across the country are looking for answers.

Commissioner Strand said the City Commission approved a Renewal Plan for Downtown and then agreed to put three public properties up for Request for Proposals (RFPs) to get developed and there are some things that should have been incorporated into the RFPs that were not. He said the City’s own studies say the primary goal is to preserve housing affordability, to keep Downtown within reach of low and working income housing, these are the City’s own strategic plans. He said he is not blaming anyone and he is owning up to it himself and wished he had known better. He said in his view he wishes the City Commission had not voted on the first project and had more of a community dialogue about what the needs are Downtown. He said he would introduce a motion at a future City Commission meeting to have the Fargo Housing and Redevelopment Authority work with Authentic Housing on a similar project at another site.

Sale of City-owned Property at 419 3rd Street North Approved: Staff Directed to Draft a Development Agreement:
Director of Strategic Planning Jim Gilmour said the City Commission directed preparation of a Riverfront Renewal Plan in October 2020, which was completed and adopted by the City Commission in April 2021. The Plan included actions to sell several City-owned properties for redevelopment, he said. Request for proposals and selection criteria for the three properties were approved by the City Commission in September and October 2021, he said, and proposals were due in November. Two proposals were submitted for the 419 3rd Street North property, he said, which were reviewed by the Economic Development Incentives Committee and the Renaissance Zone Authority. Of the ten members of these Committees voting at a March 22nd meeting, eight of the members voted to recommend selection of a proposal from Kilbourne Group, he said. The Kilbourne proposal is to construct an apartment building on both the City property and a property to the south Kilbourne will acquire for this project, he said. The new building will have about 115 apartments and 152 parking spaces, he stated, and the investment will be $25 million. He said the offer for the City-owned property is $162,984.00 with construction to begin in the fall of 2022 with planned completion in 2024. The developer will be requesting about $3 million in incentives, he said, and a financial review will be conducted prior to consideration of that request. He said Kilbourne Group submitted a proposal with three options, including Option 1, about 75 units for $15 million; Option 2, about 115 units for $25 million project; and Option 3, about 310 units for $67 million. The recommendation, he said, is to approve Option 2.

In response to a question from Commissioner Strand asking what is the appraised value of the land, Mr. Gilmour said the City Assessor puts the value at about $480,000.00; however, the City does not look too closely at City property due to the fact it does not pay property taxes.

In response to a question from Commissioner Strand asking if the property is owned by the Diversion Authority, Mr. Gilmour said it is owned by the City; however, one of the conditions of the Diversion Authority agreement is when any property acquired with Diversion Authority money in the name of the City or the County, money from the sale of any of those properties would go back to the Diversion Authority, less any administrative costs.

Commissioner Piepkorn said this is prime real estate and he fully supports low income housing, just not on this property.

Commissioner Preston said there is little or no housing for middle and lower income service industry workers Downtown. She said if the Board lets this parcel go, it lets go of an opportunity to bring something of value to the table for a developer. She said housing is unbalanced Downtown for those and who work Downtown in the bars, restaurants and hotels.

Commissioner Gehrig said the land along the riverfront is some of the most valuable land in North Dakota without oil under it and it would be a slap in the face for homeowners and taxpayers, like himself, to pay taxes for subsidized riverfront housing with a beautiful view. He said taxpaying residents have invested heavily in this property. He is not rich, he said, he lives in an average home and he does not want to pay for someone else’s house on the river. He said the City wants to be nice to those who need subsidized housing; however, the City needs to think about the people who pay taxes, who do not ask for anything and just want to be left alone. He said when thinking about who this is helping, the Board also needs to think about who this is hurting.

Commissioner Preston declared a conflict of interest, stating she is an investor in the Downtown Fargo Real Estate Fund 1, LLC, which owns a property that would be sold to Kilbourne for this housing project.

Commissioner Strand moved the Board recognize the conflict stated by Commissioner Preston and authorize her to vote on this issue.

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

Commissioner Piepkorn moved the sale of City-owned property at 419 3rd Street North in the amount of $162,984.00 be approved and appropriate staff be directed to draft a Development Agreement consistent with the offer from the developer.

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

Applications for Property Tax Exemptions for Improvements Made to Buildings Approved:
a. David and Brittany Piper, 2825 Maple Street North (5 year).
b. Shaun Anderson, 1524 11th Avenue South (5 year).
c. James and Caryn Neary, 2915 32nd Street South (5 year).
Commissioner Piepkorn moved the applications be approved.

Second by Gehrig. On call of the roll Commissioners Piepkorn, Gehrig, Preston, 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 of the Community Development Committee.
Commissioner Gehrig moved Linda Klebe and Samantha McDonald be reappointed as public members of the Community Development Committee for three-year terms ending December 31, 2024.

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

Paula Ekman Appointed to the Airport Authority:
The Board received a communication from Mayor Mahoney recommending that Paula Ekman be appointed to the Airport Authority to replace Tammy Linn whose term expires on April 8, 2022.

Commissioner Gehrig said he is concerned the City has overturned and changed many Airport Authority members in the last six years and there is no institutional knowledge on that Board. He is afraid this will extinguish any support for people to serve, he said.

Commissioner Piepkorn moved Paula Ekman be appointed to the Airport Authority for a five-year term ending April 8, 2027.

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

Resolution Establishing Massage Therapy Establishment Requirements and Fee Approved (Moved from the Consent Agenda):
The Board received a communication from Assistant City Attorney Alissa Farol stating the Board enacted Article 13-18 of the Fargo Municipal Code relating to massage therapy establishments on December 13, 2021. She said the requirements were presented along with the Ordinance, which were also approved in December. There have been no substantive changes to the Requirements, as presented, from what was previously approved, she stated.

Commissioner Strand said he requested this Item be moved from the Consent Agenda to the Regular Agenda so his votes on the issue are consistent.

Commissioner Preston offered the following Resolution and moved its adoption:
NOW, THEREFORE, IT IS HEREBY RESOLVED BY THE BOARD OF CITY COMMISSIONERS,
WHEREAS, the Board of City Commissioners of the City of Fargo have deemed it necessary and appropriate to approve and adopt an Ordinance regulating Massage Therapy Establishments, codified at Article 13-18 of the Fargo Municipal Code; and
WHEREAS, Sections 13-1802 and 13-1805 of the Fargo Municipal Code authorizes the Board of City Commissioners to adopt certain regulations creating minimum standards for massage therapy establishments as well as the amount of an initial license fee; and
NOW, THEREFORE, IT IS HEREBY RESOLVED BY THE BOARD OF CITY COMMISSIONERS,
1. The attached Massage Therapy Establishment Requirements are hereby adopted by reference and fully incorporated herein; and
2. The Massage Therapy Establishment Fee shall be in the amount of $100.00 per year.

Second by Piepkorn. On the vote being taken on the question of the adoption of the Resolution Commissioners Preston, Piepkorn and Mahoney voted aye.
Commissioners Strand and Gehrig voted nay.
The Resolution was adopted.

The meeting was adjourned to 5:00 o’clock p.m., Monday, April 18, 2022.
The time at adjournment was 7:30 o’clock p.m.