Fargo City Commission - April 18, 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 18, 2022.
The Commissioners present or absent were as shown following:
Present: Gehrig, Piepkorn, Preston, Strand, Mahoney.

Mayor Mahoney presiding.

The Mayor read a message with the following information: Fargo Cass Public Health’s Director Desi Fleming is to be recognized later this month as one of the nominees for the YWCA Women of the Year; the CommsGA Department and Fargo Cass Public Health were recognized with an American Advertising Federation Award for their VaxUpND campaigns and the CommsGA Team has been placed on a national short list for the “local heroes” ad produced earlier this year, to vote visit bit.ly/telly2022; the Library is hosting a Houseplant Swap on April 25th and a Library Card Design Contest during April; this is Earth Week and one of many activities commemorating it is MATBUS’ “Get your Can” on the bus promotion and Red River Zoo’s Party for the Planet; the December apartment vacancy rate declined to 3.8% in Fargo, which is down from 5.8% in December, 2020, 9% in December, 2019 and 10.2% in December 2018. A video on the officer wellness plan at the Fargo PD was introduced by Chief Zibolski, Assistant Chief Stefonowicz and Jordan Korte. Investigator Korte is on the Metro Street Crimes Unit and recently placed first in the physical fitness challenge hosted by the International Association of Chiefs of Police.

Order of Agenda Approved:
Commissioner Piepkorn moved the Order of the Agenda be approved.
Second by Gehrig. All the Commissioners voted aye and the motion was declared carried.

Minutes Approved:
Commissioner Preston moved that the Minutes of the Regular Meeting of the Board held on April 4, 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 the following Ordinances; 1st reading, 4/4/22:
a. 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.
b. Rezoning a Certain Parcel of Land Lying in Rocking Horse Farm Sixth Addition to the City of Fargo, Cass County, North Dakota.
2. Receive and file the Notice of Appeal from Decision of a Local Governing Body Pursuant to NDCC §28-34-01 brought by Northland Hospitality, LLC d/b/a SouthTown PourHouse.
3. Site Authorizations for Games of Chance:
a. Plains Art Museum at Blue Wolf Casino (West Acres Bowl).
b. Plains Art Museum at Big Top Bingo.
c. Plains Art Museum at King Pin Casino (The Bowler).
d. Plains Art Museum at Wild Bill’s Sports Saloon.
e. Plains Art Museum at District 64.
4. Application for Games of Chance:
a. The Next Step ND for a raffle on 4/28/22; Public Spirited Resolution.
b. NDSU Lions Club for a raffle on 6/1/22.
c. NDSU Saddle and Sirloin for a raffle board on 4/27/22 (amended).
d. Homeward Animal Shelter for a raffle on 4/28/22.
5. Concur with the findings of staff and the Liquor Control Board and apply the Penalty Matrix ($500 fine, first failure) to the following:
a. Plaza Azteca.
b. Happy Harry’s.
c. Delta Hotels.
d. Izumi Sushi and Hibachi.
6. Request for out of grade pay for Susan Thompson retroactively effective 4/1/22.
7. Master Services and Licensing Agreement No. 26459 with JustFOIA (RFP21196).
8. Contract Amendment No. 1 in the amount of $30,000.00 for Project
No. FM-21-A0.
9. Payment to Xcel Energy in the amount of $106,226.18 for utility relocation and new 3-phase power lift station service (Project No. FM-19-C1).
10. Memorandum of Understanding with the City of West Fargo for a new traffic signal installation at the intersection of Veterans Boulevard and 37th Avenue South (Project No. TN-22-B).
11. Storm Sewer Easement payment and Permanent Easement (Storm Sewer) with Alec and Rachel Boughton (Project No. UR-21-A1).
12. Storm Sewer Easement payment and Permanent Easement (Storm Sewer) with Patrick and Kathryn Peltier (Project No. UR-21-A1).
13. Bid award to Master Construction Company, Inc. in the amount of $562,326.00 for Project No. SR-22-B1.
14. Bid award to Master Construction Company, Inc. in the amount of $345,810.00 for Project No. UR-21-B1.
15. Bid advertisement for Project No. FM-19-C.
16. Variance Acknowledgement and Liability Waiver with Paul and Ann Jarvis at 172 North Woodcrest Drive North.
17. Memorandum of Offer to Landowner for a Permanent and Temporary Easement with Paul and Ann Jarvis (Project No. FM-19-C).
18. Receive and file the proposed uses spreadsheets for CARES, ARPA and Fund 402.
19. State Water Commission cost reimbursement for the FM Metropolitan Area
Flood Risk Management Project in the amount of $3,945,477.58.
20. Receive and file General Fund – Budget to Actual through March 2022 (unaudited).
21. Notice of Grant Award Amendment with the ND Department of Health for Ryan White Part B Program (CFDA #93.917).
22. Purchase of Service Agreement with Northern Cass Public School District for nursing services for the upcoming school year.
23. Fifth Amendment to Parking Management Agreement with Interstate Parking Company of ND, LLC.
24. City of Fargo Grievance Procedure Under the Americans with Disabilities Act and Section 504, as proposed.
25. Receive and file the update on Hate Crime Investigations for First Quarter of 2022.
26. Bid award to Aspen Equipment in the amount of $183,420.00 for an aerial lift truck (RFP22052).
27. Bid award to Minnkota EnviroServices, Inc. for the Processing and Marketing Services for Recyclable Materials (RFP22045).
28. Contracts and Bonds for Project Nos. SR-22-A1 and TM-22-A1.
29. Change Orders for Project No. SW20-01:
a. No. 4 for an increase of $10,000.00 (civil construction contract).
b. No. G-005 for a decrease of $193.30 (general construction contract).
c. No. E-004 for an increase of $670.37 (electrical construction contract).
30. Purchase of reverse osmosis elements from Toray Membrane in the amount of $167,072.00 for Project No. WA2104.
31. Change Order No. 3 in the amount of $11,709.69 for Project No. WA1863.
32. Amended Water Tower Lease Agreement with AT&T at Water Tower No. 1 (1102 7th Avenue North).
33. Task order No. 18 with AE2S in the amount of $338,000.00 to design and bid the Regional Water Distribution Extension projects.
34. Building Resilient Infrastructure and Communities Agreement with the State of ND Department of Emergency Services for FY 2020 Non-Disaster Grant Awards (Project No. WW1905).
35. Bills in the amount of $4,342,415.17.

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.

Upgrade to the “Wave” Form Liner Option No. 2 for Improvement District No. BN-21-A1 Approved:
Commissioner Gehrig moved the “Wave” Form Liner Option No 2 for an increase of $4,814.25 for Improvement District No. BN-21-A1 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 New Paving and Utility Construction Improvement District No. BN-22-J1:
The Statutory Resolution of Necessity for the construction of New Paving and Utility Construction Improvement District No. BN-22-J1 in the City of Fargo, North Dakota, was duly published in the official newspaper for the City of Fargo, North Dakota on March 30 and April 6, 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 New Paving and Utility Construction Improvement District No. BN-22-J1.

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 New Paving and Utility Construction Improvement District No. BN-22-J1:
The bids for New Paving and Utility Construction Improvement District
No. BN-22-J1 in the City of Fargo, North Dakota were opened at 11:45 o'clock a.m., April 13, 2022 and the bids were found to be as follows:

Master Construction Company, Inc. Fargo, ND
Bid: $676,009.60

Key Contracting, Inc. West Fargo, ND
Bid: $692,969.02

Dakota Underground Company Fargo, ND
Bid: $698,254.09

Dirt Dynamics, LLC Fargo, ND
Bid: $708,968.85

Northern Improvement Company Fargo, ND
Bid: $755,872.92

FM Asphalt, LLC Moorhead, MN
Bid: $764,082.25

Contract for New Paving and Utility Construction Improvement District No. BN-22-J1 Awarded to Master Construction Company, Inc. in the Amount of $676,009.60:
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 New Paving and Utility Construction Improvement District No. BN-22-J1; and
WHEREAS, The Board of City Commissioners of the City of Fargo has considered the bids received April 13, 2022 for New Paving and Utility Construction Improvement District No. BN-22-J1 in the City of Fargo, North Dakota; and
WHEREAS, The City Engineer's tabulation of the bids received for New Paving and Utility Construction Improvement District No. BN-22-J1 shows the bid of Master Construction Company, Inc. of Fargo, North Dakota, in the sum of $676,009.60 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 Master Construction Company, Inc. in the sum of $676,009.60 is the lowest and best bid received.
BE IT FURTHER RESOLVED, That the contract for New Paving and Utility Construction Improvement District No. BN-22-J1 in the City of Fargo, North Dakota, be and the same is hereby awarded to Master Construction Company, Inc. for the sum of $676,009.60, 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.

Contract for Paving and Utility Rehab/Reconstruction Improvement District No. BR-22-C1 Approved:
Commissioner Gehrig moved the Contract between the City of Fargo and Master Construction Company, Inc. for Paving and Utility Rehab/Reconstruction Improvement District No. BR-22-C1 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 Paving and Utility Rehab/Reconstruction Improvement District No. BR-22-C1 Approved:
Commissioner Gehrig moved the following described Contract Bond be approved as to sufficiency:
Lexon Insurance Company, in the amount of $1,713,188.00, for Paving and Utility Rehab/Reconstruction Improvement District No. BR-22-C1 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 Traffic Signal Improvements Improvement District No. TN-22-A1 Approved:
Commissioner Gehrig moved the Contract between the City of Fargo and Strata Corporation for Traffic Signal Improvements Improvement District No. TN-22-A1 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 Traffic Signal Improvements Improvement District No. TN-22-A1 Approved:
Commissioner Gehrig moved the following described Contract Bond be approved as to sufficiency:
Western Surety Company, in the amount of $278,818.75, for Traffic Signal Improvements Improvement District No. TN-22-A1 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.

Residents Comments:
Brenden Krieger spoke on challenges of affordable childcare, Faith Dixon spoke on expectations of representation and professionalism of elected officials and Christopher Coen spoke about communications with the City and his open record requests.

Hearing on Community Development Block Grant (CDBG) and HOME Investment Partnerships Programs (HOME) 2022 HUD Action Plan, Analysis of Impediments to Fair Housing and Proposed Amendments to the 2021 HUD Action Plan:
A Hearing had been set for this day and hour on the Community Development Block Grant (CDBG) and HOME Investment Partnerships Programs (HOME) 2022 HUD Action Plan, Analysis of Impediments to Fair Housing and Proposed Amendments to the 2021 HUD Action Plan.

Community Development Planning Coordinator Tia Braseth said the City has prepared the 2022 Action Plan for the use of the US Housing and Urban Development (HUD) funds. A total of $1,932,690.84 is anticipated to be available for the 2022 Community Development budget, she stated, and in addition, staff proposes an amendment to cancel and remove the 2021 HUD Action Plan activity titled “Downtown Homeless and Housing Services Facility” and reallocating the activity’s budget to other activities in the 2022 Action Plan. She said this is due to the City refocusing its funds on operations at the existing Downtown Engagement Center, reallocating a portion to the existing Engagement Center operations and 2022 activities. Approximately $1.8 million is being proposed for projects, she said, with about $200,000.00 for administration, Fair Housing items and some minor contingency. The activities being proposed in the 2022 HUD Action Plan Draft include, Madison Bike Trails and Sidewalks, Downtown Engagement Center Operations, Core Neighborhood Housing Development, Habitat for Humanity Single-Family Housing, and Beyond Shelter, Inc. Multifamily Senior Rental Housing at the former K-Mart site, she said. The City has prepared a draft version of the Analysis of Impediments to Fair Housing Choice (AI), she said, which is a report that helps identify fair housing issues and other contributing factors. She said no action is required at this meeting, it will come to the City Commission for action on May 2, 2022, following the public comment period. Once approved by citizens and the City, the 2022 Action Plan and the 2021 Action Plan amendment will be submitted to HUD for approval, she said and the AI will be submitted to HUD’s Office of Fair Housing and Equal Opportunity (FHEO). To date, no public comments have been received, she said, and the 30-day public comment period is from March 31 to April 29, 2022.

The Board determined that no person is present at this Hearing to comment.
Mayor Mahoney closed the public hearing.

In response to a question from Mayor Mahoney about the City’s commitment to low income housing, Ms. Braseth said it is part of the five-year plan approved by the City. She said a major focus is on housing and homelessness, a slight diversion from what was done in the past.

Application Filed by CoSchedule, LLC for Payment in Lieu of Tax Exemption (PILOT) Approved:
A Hearing had been set for this day and hour on an application filed by CoSchedule, LLC, Inc. for a 5-year payment in lieu of property tax exemption (PILOT) for the remodel and update of a leased space of an existing building at 502 1st Avenue North to expand their operation which involves software services. The exemption excludes a leased area in the basement of the building and the numbers on the application have been adjusted to reflect the space not receiving the exemption.
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 the request is for a 5-year property tax exemption for CoSchedule, LLC that has been located in Downtown Fargo since 2015. They are based in Bismarck, he said; however, most of their growth has been in Fargo, they now have 35 people working here. CoSchedule is a primary sector company with customers all over the country, he said. The exemption would be for the building on the corner of 5th Street and 1st Avenue North, he said, which they will only be for the space in the building that they occupy. He said they expect to add 17 new jobs over the next five years and the property tax exemption will save them approximately $25,000.00 per year. The Economic Incentives Review Committee recommends approval, he said.

John Machacek, Greater Fargo Moorhead Economic Development Corporation (GFMEDC), said he has been happy to see the progress on this project. He said he met with them earlier to aid in decision-making and reviewed programs available for expanding primary sector companies. Besides working with the City, he said, they are being connected with a Bank of North Dakota Flex PACE Program loan financing. It is good to see a company expand, particularly Downtown, he said, to breathe life into the building and the visibility can be an aspiration for other startups. He said he admires the company and the founders.

Justin Walsh, Cofounder of CoSchedule (via conference call), said they have grown in Fargo and of the two locations, Fargo and Bismarck, Fargo is the larger location now. North Dakota continues to be an excellent place to do business, he said, and it makes sense to continue to invest locally and give the team a creative, fun place to work. The building needs a fair amount of work on the exterior, he said, and the roof is long past its life expectancy, so a fair amount of capital will be put into the building. They will fill a good percentage of the above ground square footage, he said, and will have room for expansion or start-up tenants.

In response to a question from Commissioner Preston asking when they plan to purchase the building, Mr. Walsh said they are in the due diligence phase of purchasing the building and expect to close near the end of May. He said the two Cofounders of CoSchedule, he and Garrett Moon are 100% owners of the LLC holding company that will be on the title of the building and the primary tenants will be themselves, CoSchedule. Once they have ownership, he said, some of the first things will be to add bathrooms, some fit-up and a break room and lining up exterior contractors. With materials being backlogged, he said, it is important to start ordering as soon as possible.

In response to a question from Commissioner Preston asking about owners being eligible for PILOTs if leasing to their own business, Mr. Gilmour said it is quite common to see a holding company leasing to a business operating within their building.
Commissioner Preston said the current building owner is the Downtown Fargo Investment Fund so she may have a conflict of interest. She said she would leave it up to the Board whether she should be participating in this decision.

In response to a question from Mayor Mahoney asking whether any of the Commissioners had objections to Commissioner Preston’s participation, no objections were declared.

In response to a question from Commissioner Strand asking about the history of the Exchange Building as far as applying or receiving incentives or tax breaks, Mr. Gilmour said the building received a Renaissance Zone exemption early within that program when owned by the Vogel Law Firm and there were three projects somewhat tied together although not a major rehab. Because the property qualified once for the Renaissance Zone, he said, it cannot be applied again due to the State program being “one and done.”

In response to a question from Commissioner Strand asking about the commitment by the company for new employees, Mr. Gilmour said there are 48 employed now and they project in the first three years they would increase to 56 and estimate another nine jobs beyond that.

Mr. Walsh said looking at course and speed for growth, they feel the numbers in their application are realistic and could be exceeded.

In response to a question from Commissioner Preston asking about monitoring compliance for the job growth, Mr. Gilmour said the City will work with the GFMEDC to get annual reports on job creation and there is software set up to monitor that. He said under the new policy, it would be reported to the City Commission to decide whether to give the business more time or to pull back on the incentives that have been granted if requirements were not met.

Commissioner Piepkorn moved that the application filed by CoSchedule LLC, for a 5-year, 100 percent payment in lieu of tax exemption for an expansion project at 502 1st Avenue North pursuant to Chapter 40-57.1, NDCC be approved.

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

Presentation by Gate City Bank Regarding the Neighborhood Revitalization Initiative (NRI) Program:
Planning Director Nicole Crutchfield said the 2022 NRI Program is a targeted program for renovation of owner-occupied single family homes with a broader area this year, from the north side to 32nd Avenue South. She said eligible projects are 10 or 15 year loans in which the City accepts the application and coordinates with the Gate City Bank team.

Brandie Haugen introduced her Gate City Bank team, including Pam Krupke, Christina Clark and Lezan Tahir. She said Gate City Bank is committed to a better way of life for its customers and the communities served. She said the Neighborhood Revitalization Initiative is a series of programs designed to assist local homeowners in preservation of older homes and beautiful neighborhoods. She said it also helps the community retain affordable housing and adds long time property value for local homeowners. Gate City has been proud to support in and invest in the program and communities since 2005, she stated.

Mayor Mahoney and Commissioner Preston accepted a replica check representing the $2 million investment. Mayor Mahoney said this program is important to the community and helpful to those with homes needing improvements. He said the loan rates are as low as 2.59% APR, which likely could not be beat in the market now.

Right of Way Use Agreement with Bell Bank and Olaf Anderson Construction, Inc. at 520 Main Avenue Approved:
Division Engineer Kevin Gorder said the Engineering Department is working on an agreement with Bell Bank and Olaf Anderson Construction on a rehabilitation project at 520 Main Avenue. Demolition has started, he said and progress is being made. The work on this rehabilitation requires extensive impacts to the right of way, including removing the existing private parking ramp and building office space where the old parking ramp was located, he said. The proposed work includes excavating down approximately 15 feet at the deepest point along Broadway, he said. Completing the work safely will require the removal of the sidewalk along Broadway and along 1st Avenue South adjacent to the building, along with curb and gutter, he said and approximately half of the on-street parking pavement. Many of the items in the agreement are agreed upon by all parties, he said; however, more time is needed to document right of way impacts. The schedule is aggressive, he said, with completion scheduled for late fall of 2023, and the contractor needs to get started in the right of way to keep the project on schedule. The typical approval process on such an agreement is to present it to the Public Works Project Evaluation Committee (PWPEC) and forward it to the Commission with a report of action, he said; however, the applicant has asked that staff move ahead without PWPEC review to keep the project on schedule. He said one item that staff and the developer do not agree on is the length of the closure of 1st Avenue South during the precast installation. Engineering has worked with previous builders of multiple projects Downtown where they work completely inside the property lines to set the majority of the precast items, he said; however, this contractor would like to close this street for the entirety of the precast setting adding another month to the closure. He shared diagrams of the proposed work in the City right of way and precast delivery and proposed truck movements. He presented the draft Right of Way Use Agreement and two suggested motions and said staff recommends motion No. 1, which is for a month long closure of 1st Avenue South. He said a separate four-week closure of 1st Avenue South is needed to connect utilities to the site regardless of the option selected for the precast items.

Lyn Narum, Olaf Anderson Construction, said the contractor agrees with the City staff on most everything, except 1st Avenue South from a public safety standpoint. He said with 10 to 12 trucks per day coming and going through the site, they feel traffic needs to be pushed around, perhaps to 7th Street for less impact and parking spots will need to be shut down in the area to allow trucks to turn into the lot. He said the timeframe of two months allows for a possible weather delay although they do anticipate opening things as quickly as they can. He said there is also a shutdown of the storm line across the road and they are trying to incorporate that at the same time.

In response to a question from Commissioner Preston asking what street closure is being discussed, Mr. Narum said it would be 1st Avenue South from Broadway to the east side of the Island Park ramp on 4th Street, short of the YMCA entrance.

Mr. Gorder said the YMCA would be accessible from 4th Street; however, southbound traffic would be routed to 6th Street and around Island Park. He said the philosophy is that if a street does not need to be closed, it should remain open. Flexibility is important, he stated, as is consistency.

Commissioner Piepkorn said he likes the concept leaving the roads open as much as possible.

Commissioner Gehrig said he feels they should be allowed the two months and if done early, they will not have to come back and ask for more time.

In response to a question from Commissioner Strand asking at what point in construction the contractor would know they need more time, Mr. Gorder said one can think they have a great construction schedule and then there are rain, delivery problems and such can happen.

Commissioner Gehrig moved the draft agreement with a two month long closure of 1st Avenue South for the setting of precast items contingent on completion of the remaining items necessary for a complete agreement be approved.

Second by Piepkorn. On call of the roll Commissioners Gehrig and Piepkorn voted aye.
Commissioners Preston, Strand and Mahoney voted nay.
The motion was declared lost for the lack of a majority.

Commissioner Preston moved the draft agreement with a month long closure of 1st Avenue South for the setting of precast items contingent on completion of the remaining items necessary for a complete agreement be approved.

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

Resolution Approved Authorizing the Issuance of Annual Appropriation Bonds, Series 2022D, Approving Certain Actions and Approving Forms of Documents Required in Connection Therewith:
The Board received a Communication from Interim Director of Finance/City Auditor Steve Sprague stating the Finance Committee, with advice provided by Baker Tilly Municipal Advisors, LLC recommend issuing bonds through a private placement with Robert W. Baird and Company servicing as the placement agent. He said the bonds will be annual appropriation bonds in the par amount of $8,103,000.00. Proceeds will be used primarily for the construction of Fire Station No. 8, he said, along with associated vehicles and equipment necessary for an operating fire station. He said the recommendation to proceed with a private placement reflects the rising interest rate environment and ability to access the market quickly through a private placement. Baird was chosen due to the City’s experience with the firm, their track rate at bidding on City bonds in competitive sales, an RFP process comparing Baird to other underwriters and their ability to identify a suitable buyer in a short time period, he said. The true interest cost for the 16-year bond is 3.04%, he said, and the annual debt service will be approximately $680,000.00. Architecture bids were received for this fire station, he said, so it is moving forward and this will help obtain funds to get it completed.

Commissioner Gehrig said this fire station has been in the works as long as he has been a commissioner and the way south Fargo is growing, everyone who lives there wants and needs this station.

Commissioner Gehrig moved that the Resolution titled “Resolution Authorizing the Issuance of Taxable Annual Appropriation Bonds, Series 2022D, Approving Certain Actions and Approving Forms of Documents Required in Connection Therewith” be adopted and attached hereto.

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.

Recommendation to Concur with the Findings of Staff and the Liquor Control Board and Apply the Penalty Matrix to Longhorn Steakhouse Approved:
The Board received a communication from City Auditor Steve Sprague stating that Longhorn Steakhouse has been provided notice of a liquor license compliance violation under Section 25-1509 of the Fargo Municipal Code. The Liquor Control Board met March 16, 2022 to consider the violation, he said, and concurred with the Police Department and Auditor’s office to apply the penalty matrix for a first compliance check failure, the penalty being $500.00. Mr. Sprague explained that in the past the way the Liquor Control Board looked at the Ordinance was that if servers and managers had their training and failed a compliance check, often the penalty was excused. Now, he said, with the new Liquor Control Board in place, along with the new Police Chief, there have been some changes in philosophy for the part of the Ordinance boiling down to the word “may.” He said it reads “If the manager and staff have both had server training in the first offense the penalty may be waived” and the new Board feels the penalties should not be waived. He said the license holder was surprised to learn this was being recommended for the penalty.

A Longhorn Steakhouse representative said they have been open since 2012 and to his knowledge, this is the first offense. He said they take liquor license compliance very seriously and let this server go when he failed the check. He said they are making sure all servers check all IDs. He said all staff who serve alcohol and the managers have been certified for server training.

Commissioner Preston said she sees some inconsistencies in the process and she would argue that penalties should not be waived.

Commissioner Strand said he feels that following the actions tonight, as far as applying the penalties, the Liquor Control Board needs to revisit the policy and recommend a modification to the policy, or not. He said he feels it needs to read “shall” be waived, not “may” be waived.

Commissioner Preston moved to concur with the Findings of Staff and the Liquor Control Board and apply the penalty matrix of $500.00 fine for first failure to the liquor license violation identified at Longhorn Steakhouse.

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.

Recommendation to Apply the Penalty Matrix to Crave Approved:
The Board received a communication from City Auditor Steve Sprague stating that Crave has been provided notice of a liquor license compliance violation under Section 25-1509 of the Fargo Municipal Code. He said the licensee appeared before the Liquor Control Board on March 16, 2022 to explain that it was the General Manager’s first day in the store after 2 months of training and the server, who asked for the ID, was nervous due to the new General Manager’s presence and mistakenly served the underage individual. The licensee requested the penalty be waived due to those circumstances and the Liquor Control Board voted 2 to 2 to apply the penalty. Due to lack of a majority, that motion failed and then they voted 2 to 2 to waive the penalty, which also failed; thus, it needs to come to the City Commission for a determination.

Commissioner Preston moved to apply the penalty matrix of $500.00 fine for first failure to the liquor license violation identified at Crave.

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

Assistant City Administrator Michael Redlinger Appointed as Interim City Administrator Effective June 25, 2022:
Mayor Mahoney said that with the upcoming retirement of City Administrator Bruce Grubb on June 24, 2022, there is a need to appoint an Interim City Administrator until the position is filled. He said Michael Redlinger has been serving as Assistant City Administrator since July of 2016 and has done a great job in that capacity. He said he would recommend appointing Mr. Redlinger to fill the Interim position. He said the new Commission, once formed after the June election, could have discussions on the position of City Administrator and then it could be advertised nationally. He thanked Mr. Grubb for all the work he has done for the City and Mr. Grubb was given a round of applause.

Commissioner Piepkorn moved Assistant City Administrator Michael Redlinger be appointed as Interim City Administrator effective June 25, 2022.

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.

Application for Property Tax Exemptions for Improvements Made to Buildings Approved:
a. Bonnie B. Kavanaugh T/O/D, 1607 East Gateway Circle South (5 year).
b. Lorraine Olson, 2121 6th Avenue South (5 year).
c. Willie and Dana Cook, 1024 University Drive South (5 year).

Commissioner Piepkorn moved the applications be approved.

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

Commissioner Gehrig moved that the Board adjourn to 5:00 o’clock p.m., Monday, May 2, 2022.

Second by Preston. All the Commissioners voted aye and the motion was declared carried.
The time at adjournment was 6:03 o’clock p.m.