Fargo City Commission - May 1, 2023 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., May 1, 2023.
The Commissioners present or absent were as shown following:
Present: Kolpack, Piepkorn, Preston, Strand (via conference call), Mahoney.
Absent: None.
Mayor Mahoney presiding.

The Mayor read a message with the following information: May is Mental Health Awareness Month and Fargo Cass Public Health, the Fargo Police Department and the 4-6-3 Foundation will host a news conference on May 2nd to premier a suicide prevention public service announcement video titled the “Faces of Suicide;” a “Star Wars” Celebration event for teens will take place May 4th at the Main Library; a free concert featuring the Cropdusters is set May 6th at the Main Library; the 4th Annual Northern Focus Photography Project continues through May 31st; Public Service Recognition Week is May 7th through May 13th; and a video was shown about the Cass Clay Food Partners’ work in providing opportunities for people to have access to fresh, local produce.

Order of Agenda Approved:
Commissioner Kolpack moved the Order of the Agenda be approved, withdrawing Item No. “7b” on the Consent Agenda and moving Item No. “9” from the Consent Agenda to the Regular Agenda.

Second by Piepkorn. 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 17, 2023 be approved as read.

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

Consent Agenda Approved:
Commissioner Preston moved the Consent agenda be approved as follows:

1. Receive and file an Ordinance Amending Section 21.1-0102 of Article 21.1-01 of Chapter 21.1 of the Fargo Municipal Code Relating to the International Residential Code.

2. 1st reading of an Ordinance Amending Section 25-1509.2 of Article 25-15 of Chapter 25 of the Fargo Municipal Code Relating to Restrictions on Sale to Obviously Intoxicated Person and an Ordinance Amending Section 25-1512 of Article 25-15 of Chapter 25 of the Fargo Municipal Code Relating to Licenses – Termination, Suspension, Revocation and Sanctions.

3. 1st reading of an Ordinance Amending Section 25-1501 of Article 25-15 of Chapter 25 of the Fargo Municipal Code Relating to Definitions and an Ordinance Amending Section 25-1506 of Article 25-15 of Chapter 25 of the Fargo Municipal Code Relating to Licenses – Classifications and an Ordinance Amending Section 25-1507 of Article 25-15 of Chapter 25 of the Fargo Municipal Code Relating to License – Fees – Seasonal Licenses.

4. 2nd reading of an Ordinance Repealing Section 25-1504.3 of Article 25-15 of Chapter 25 of the Fargo Municipal Code Relating to Mandatory Meeting and an Ordinance Amending Section 25-1504.4 of Article 25-15 of Chapter 25 of the Fargo Municipal Code Relating to Additional Requirements for Class FA-Entertainment Licenses.

5. Settlement Agreement and Release of All Claims with Northstar Property Partners, Inc. and John Bultman.

6. Location transfer of a Class “FA-RZ” Alcoholic Beverage License for The Beefsteak Club, LLC d/b/a Pounds from 612 1st Avenue North to 6 Broadway North.

7. Applications for Games of Chance:
a. Rebuilding Together Fargo-Moorhead Area for a raffle and raffle board on 6/1/23.
b. Buretta Fundraiser for a raffle and raffle board on 9/16/23; Public Spirited Resolution (withdrawn).
c. Jerome Sharratt Benefit for a raffle on 5/7/23; Public Spirited Resolution.

8. Site Authorizations for Games of Chance:
a. Prairie Public Broadcasting, Inc. at Tailgator’s.
b. Prairie Public Broadcasting, Inc. at Slammer’s.
c. Prairie Public Broadcasting, Inc. at Dempsey’s.
d. Prairie Public Broadcasting, Inc. at Pepper’s.
e. Prairie Public Broadcasting, Inc. at Bison Turf.
f. Plains Art Museum at Wild Bill’s Saloon.
g. Plains Art Museum at King Pin Casino (The Bowler).
h. Plains Art Museum at Big Top Bingo.
i. Plains Art Museum at Blue Wolf Casino (West Acres Bowl/Cactus Jack’s).
j. Metro Sports Foundation at Mexican Village.
k. Metro Sports Foundation at Brewtus Clubhouse.
l. Metro Sports Foundation at Scheels Arena.
m. Red River Human Services Foundation at The Elks Lodge #260.
n. Red River Human Services Foundation at Sickies on 45th.
o. Red River Human Services Foundation at the Northern.
p. Fargo Metro Baseball Association at Specks Bar.
q. Fargo Metro Baseball Association at Empire Tavern.
r. Jon Greenley Amvets Post #7 at Amvets.
s. Jon Greenley Amvets Post #7 at Hi-Ho Burgers and Brews.
t. Boys and Girls Club of Red River Valley at Suite Shots.
u. Boys and Girls Club of Red River Valley at Fargo Billiards/Gastropub.
v. North Dakota Association for the Disabled, Inc. at O’Kelly’s.
w. North Dakota Association for the Disabled, Inc. at Bulldog Tap.
x. North Dakota Association for the Disabled, Inc. at Cowboy Jack’s.

9. Receive and file the current schedule of proposed uses for the American Rescue Plan Act funds and accept the final reconciliation of 2022 revenues and expenditures (moved to the Regular Agenda).

10. Notice of Grant Award from the ND Department of Emergency Services, Division of Homeland Security for FY 2022 State Homeland Security Grant Program (CFDA #97.067).

11. Application submission for the FY 2023 State Homeland Security Grant Program to fund physical security improvements at the Public Safety Building.

12. Contracts and bonds for the following Projects:
a. No. PR-23-F1.
b. No. SR-23-A1.
c. No. SR-23-B1.

13. Contract and bond for Improvement District No. AN-22-B1.

14. ND Department of Transportation Cost Participation and Maintenance Agreement and concur with the low bid for a project on 19th Avenue North.

15. Amendment (First) to Encroachment Agreement with Nicholas and Dawn M. Michels for property located at 2408 16th Avenue South.

16. Encroachment Agreement with Park District of the City of Fargo for the Island Park Pool located at 616 1st Avenue South.

17. Bid awards for Project No. NR-23-A1:
a. General construction contract to Key Contracting, Inc. in the amount of $9,673,607.50.
b. Electrical construction contract to Fusion Automation, Inc. in the amount of $290,209.31.

18. Permanent Easement (Water Main) with Matthew R. and Ashley N. Scherbenske for Project No. WA2254.

19. Access Easement (Water Main) with Southeast Cass Water Resource District for Project No. WA2254.

20. Access Easement with Fargo Public Schools for Project No. NR-23-A1.

21. Permanent Easement (Storm Sewer) with 76th Street Holdings LLC for Improvement District No. BN-23-C1.

22. Easement (Temporary Construction Easement) with Oak Grove Lutheran School for Improvement District No. BR-22-A0.

23. Memorandum of Offer to Landowner for Permanent Easement (Street and Utility) and Easement (Temporary Construction Easement) with JASL, LLC for Improvement District No. BR-23-C1.

24. Bid award to R & R Excavating, Inc. in the amount of $2,947,619.97 for Improvement District No. BR-23-F1.

25. Create Improvement District No. PN-23-E.

26. Notice of Grant Award with the ND Department of Health and Human Services for ND LPH Funding Equity and prioritizing populations disproportionately affected by COVID-19 (CFDA #s 93.268 and 93.391).

27. Purchase of Service Agreement with Northern Cass Public School District.

28. Amendment to Purchase of Service Agreement with ND Department of Health and Human Services, Behavioral Health Division.

29. Sole Source Procurement with Idemia Identity and Security USA, LLC for a LiveScan portable fingerprint machine and Application for Appropriation from Civil Asset Forfeiture Fund for payment (SSP23085).

30. Solid Waste Management Agreement for Private Haulers in the City of Fargo with High Flying Junk.

31. Bid award to CC Steel, Inc. in the amount of $93,300.00 for Project No. WA2217.

32. Bills in the amount of $6,855,708.33.

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

2022 Fargo Fire Department Annual Report:
Fire Chief Steve Dirksen said calls for service have steadily increased, going from about 11,000 calls in 2017 to more than 14,500 in 2022. He shared information on dollar losses by cause and responses by zone, which were the highest in the Downtown Zone 1. He said the most responses by incident were for Emergency Medical Service calls and the most common types and numbers of fires in 2022 were building and vehicle fires. He said the majority of structure fires started in the kitchen area, followed by exterior balconies or porches and vehicles in garages or carports. He said in 2022, the total fire loss dollar amount was $5,450,856.00, which was about $1 million more than 2021. The Department continues to work on response times, he said, and those times will improve once Fire Station No. 8 is completed. He shared a heat map of the Fargo area, showing what areas are getting the most calls for service. He said highlights and accomplishments in 2022 included the retirement of 10 firefighters, hiring of 14 new firefighters, there were three joint training academies with the West Fargo Fire Department, three team members were promoted to Captain and plans for Fire Station No. 8 and an addition to Fire Station No. 2 were finalized.
In response to a question from Commissioner Piepkorn asking about EV car fires, Chief Dirksen said EV fires are considered Class D fires, which involve combustible metals and common extinguishing agents reacting with the combustible metals, causing the severity of the fire to increase. He said the lithium, magnesium and potassium used in EV batteries burn at more than 2000 degrees, and water is not effective in putting out that type of fire. With many Fire Departments, he said, the policy is to let the car burn out or try to use sand or dry chemicals. Another idea some departments are looking into is a roll-off type of dumpster full of a gel product that the vehicle can be placed in to suppress the fire. He said it is going to be a challenge to figure out how to handle EV fires.
Commissioner Piepkorn said this is a very dangerous situation, especially in parking ramps. He said this is a safety issue and he would recommend not allowing EVs in parking ramps until a solution is found in how to deal with these fires.

Hearing on a Zoning Change for Dakota Commerce Center North Addition Continued to May 15, 2023 (4201 County Road 81 North and 5100 37th Street North):
A Hearing had been set for this day and hour on a zoning change and plat for Dakota Commerce Center North Addition; however, staff is recommending the Hearing be continued to Monday, May 15, 2023.
Commissioner Piepkorn moved the Hearing be continued to 5:15 o’clock p.m. on Monday, May 15, 2023.

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

Hearing on a Petition for Annexation of 112.14 Acres of Property in the Northeast Quarter of Section 16, Township 140 North, Range 49 West Continued to May 15, 2023 (4201 County Road 81 North and 5100 37th Street North):
A Hearing had been set for this day and hour on a petition for Annexation of property in the Northeast Quarter of Section 15, Township 140 North, Range 49 West containing 112.14 acres, more or less; however, staff is recommending the Hearing be continued to May 15, 2023.
Commissioner Preston moved the Hearing be continued to 5:15 o’clock p.m. on Monday, May 15, 2023.

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

Hearing on an Application Filed by Corvent Medical, Inc. for a Property Tax Exemption Continued to May 15, 2023 (400 45th Street South, Suite 400):
A Hearing had been set for this day and hour on an application filed by Corvent Medical, Inc. for a Property Tax Exemption for a project to be located at 400 45th Street South, Suite 400, which the applicant will use for the manufacturing of medical ventilators, warehousing ventilators and accessories used with ventilators; however, staff is recommending the Hearing be continued to May 15, 2023.
Commissioner Piepkorn moved the Hearing be continued to 5:15 o’clock p.m. on Monday, May 15, 2023.

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

Hearing on a Zoning Change for Valley View Estates Fourth Addition Continued to June 12, 2023 (4606-4890 Decorah Way South):
A Hearing had been set for April 3, 2023 on a zoning change and plat for Valley View Estates Fourth Addition.
At the April 3, 2023 meeting the Hearing was continued to this day and hour; however, staff is requesting the Hearing be continued to June 12, 2023.
Commissioner Kolpack moved the Hearing be continued to 5:15 o’clock p.m. on Monday, June 12, 2023.

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

Bid Awards for the Construction of Fire Station No. 8 Approved:
Fire Chief Steve Dirksen said the sale of bonds for the construction of Fire Station No. 8 were approved at the April 18, 2022 City Commission meeting. He said a Request for Quotes for architectural services was advertised, EAPC was selected and over the past year, staff has worked with EAPC to develop a schematic design and bidding documents as well as project administration. At a bid opening on April 19th, he said, the low base bid results were as follows:
General Contractor – Ledgestone, Inc. $3,471,000.00
Mechanical Contractor – Manning Mechanical, Inc. $1,247,500.00
Electrical Contractor – Grotberg Electric, Inc. $ 591,000.00
Total $5,309,500.00
He said it was estimated that construction costs for the 10,832 square foot building would be $5,250,000.00 with a $262,500.00 contingency. There were also a number of alternate bids, he stated, including one for a required addition to the storm water retention, which will cost an additional $33,720.00. He said that will only affect the bid from the General Contractor and the total still falls within the contingency.
Commissioner Kolpack moved the bids for construction of Fire Station No. 8 be approved.

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

Plans for the NP Avenue Parking Garage Approved:
Strategic Planning and Research Director Jim Gilmour said the proposed NP Avenue Parking Garage will replace a parking lot that has been in place since 1962. He said the plans are for 461 parking spaces in a seven-story garage, with the main entrance and exit on NP Avenue. He said a sprinkler system will be installed as part of the new building code and all materials will be fireproof. The garage will include a storage room where residents will have access to secure storage for bicycles, he said, and there is a plan for electric vehicle (EV) charging stations; however, those will not go in right away, just the infrastructure will be included. He said the majority of the parking garage will face the back of buildings on Broadway, the only visible part of the garage will be from Main Avenue and the finishes will be similar to what was used on the Mercantile and Block 9 garages. He also shared slides showing the various floor plans for the apartments and the F-M Community Theatre. He said if the plans are approved tonight, Kilbourne will get bids for construction of the garage and hopefully construction can start this year.
In response to a question from Commissioner Preston, citing a recent study by MetroCOG about EV adaptation in the City, one of the questions was about parking ramps and whether the City is building them to the standard where they can support EVs, which are heavier than regular cars and if that has been incorporated into these plans, Mr. Gilmour said he would get more information from Walker Consultants about that topic and forward the information to the Commissioners.
Commissioner Piepkorn moved the plans for the NP Avenue Parking Garage be approved.

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

Current Schedule of Proposed Uses for the American Rescue Plan Act Funds Received and Filed and Final Reconciliation of 2022 Revenues and Expenditures Approved (Moved from the Consent Agenda):
City Administrator Michael Redlinger said the 2022 expenditure budget increased due to rolling forward unspent 2021 budget items and the 2022 revenue budget required reconciliation due to events that occurred in the 2021 budget year rather than 2022, most notably the sale of the Island Park Ramp. He said the City Commission approved an allocation plan for the ARPA funds about a year ago, and the Finance Committee is trying to stay the course with ARPA and manage some of these unintended revenue reductions as well as cost expenditures utilizing the City’s fund balance. He said the fund balance policy remains consistent to exceed the 25 percent of fund balance. The 2024 budget process is just starting, he said, and he will be talking about revenue projections and making sure the City is as conservative as possible.
Commissioner Preston said on the list of the ARPA fund allocations, there is $6 million allocated to General Fund revenue loss, an additional $2 million to building capital and $1 million to the parking fund.
In response to a question from Commissioner Preston regarding the General Fund revenue loss and where were those losses, Mr. Redlinger said the ARPA program had a lot of flexibility in later rule-making that allowed the City to utilize it for revenues that did not materialize. He said this was in response to the pandemic and any kind of cost overruns the City had; therefore, if there was overtime in public safety that would be an example of where the City utilized CARES funds in the past so the City was able to claim revenue loss as a qualifying expense to utilize ARPA. What has been allocated already in ARPA and approved by the City Commission is in a bit of a flux, he said. For example, with the Planning Department, he said, there are already some expenditures in areas such as Beyond Shelter, Churches United and Community Engagement. He said the $12 million ARPA balance on the 12/31 report is already changing and he will report to the City Commission where the Finance Department is at on the $12 million available to see how much liquidity there is.
Commissioner Preston said she would appreciate seeing more detailed information on the revenue loss due to the fact that she is concerned the City has a structural budget issue and if the City has ongoing revenue loss issues or higher expenditure issues, it would be helpful to know that up front. She said she does not have any trouble fixing or reconciling the 2022 budget deficit with reserve funds; however, in 2023 things better not go into the same place due to the fact that the reserve fund will drop.
In response to a question from Commissioner Preston regarding the 25 percent of the total general operating budget in a reserve fund and is the non-spendable and restricted counted in the reserve fund, Mr. Redlinger said he will pull specific language; however, the City meets the 25 percent on the unassigned fund balance due to the fact that there are some elements of the General Fund balance that are restricted and are already obligated.
Mayor Mahoney said the City Commission used to get monthly reports from the Finance Department and those will be coming back, and the 25 percent was a policy of former Mayor Bruce Furness. With the ARPA funding, he said, the City had revenue losses and the ARPA funds were put in the General Fund, which helped the Reserve Fund and gave the City the ability to utilize the Reserve Fund to balance the budget.
Commissioner Preston said she wants to see quarterly updates on projected year-end balances so Commissioners have a sense of the full picture.
Commissioner Preston moved the current schedule of proposed uses for the American Rescue Plan Act funds be received and filed, final reconciliation of 2022 revenues and expenditures be approved and the City Commissioners receive quarterly updates on projected year-end balances.

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

Legislative Update:
City Administrator Michael Redlinger said the Legislators gaveled out of their session this past weekend after using 75 of their 80 working days. The State Water Commission budget, SB 2020, is a full session bill, he said, and he wants to highlight it as there are some material things in it for the City of Fargo, specifically spelling out the legislative intent for the Red River Valley Water Supply Project (RRVWSP). He said the legislative intent had been established at $953 million and an additional $180 million was allocated by the Legislature this session and this is a very big deal. The funds come out of the Resources Trust Fund, he stated, and will help Fargo move the project closer to fruition. He said it was a unanimous vote in the Senate followed by an 88-4 vote in the House. He said he wants to thank the Lake Agassiz Water Authority and the RRVWSP partners for everything they did to move that forward and to thank City staff who had a lot of roles and responsibility for testimony, bill tracking and trying to keep a pulse on what was happening in Bismarck this year. He said he also wants to thank the City’s lobbyist, Terry Effertz, who provided excellent updates as the session unfolded. He said he has been in touch with her about an end of session report.
In response to a question from Commissioner Strand asking if there are any updates on the zoning issue relative to gun sales in Fargo neighborhoods, Mr. Redlinger said that bill was amended, there were different versions and the final version as adopted removed the ability for zoning to regulate firearms only; however, it did preserve local zoning control in several elements. He said the City Attorney's office will be consulted about what changes, if any, would be needed to City Ordinances.
Commissioner Strand said he recommends the Commissioners have an Executive Session to discuss legal options as the City had previously taken this issue to District Court and prevailed.
Commissioner Preston said discussion about the Library matter should also be discussed in an Executive Session.

Liaison Commissioner Assignment Updates:
Commissioners gave reports on the Boards and Committees on which they serve.

Commissioner Kolpack moved that the Board adjourn to 5:00 o’clock p.m., Monday, May 15, 2023.

Second by Piepkorn. All the Commissioners voted aye and the motion was declared carried.
The time at adjournment was 6:09 o’clock p.m.