Fargo City Commission - April 29, 2024

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 29, 2024.
The Commissioners present or absent were as shown following:
Present: Kolpack, Piepkorn, Preston, Strand, Mahoney.
Absent: None.
Mayor Mahoney presiding.

The Mayor read a message with the following information: Fargo Cass Public Health will host a Spring Social April 30th from 5:00 to 6:30 p.m.; May is Mental Health Awareness Month and Fargo Cass Public Health offers CredibleMind, a free online platform that features podcasts, videos, articles and assessments; teens are invited to sign up to get a Stress Less Kit from the Library during the week of May 12th; the Library’s 5th Annual Northern Focus Photography Project is accepting entries through May 31st; and a video was shown with reminders about some of the rules to ensure a successful Cleanup Week in Fargo.

Order of Agenda Approved:
Commissioner Preston moved the Order of the Agenda be approved, moving Item No. “5” from the Consent Agenda to the Regular Agenda.

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

Minutes Approved:
Commissioner Kolpack moved that the Minutes of the Regular Meeting of the Board held on April 15, 2024 be approved as read.

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

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

1. Tax Increment Note and Certificate of Completion with J-Street Properties, LLC.

2. Agreement for Special Improvements with Dakota Commerce Center 5 LLC (Improvement District No. BN-23-F1).

3. Direct the City Attorney to make the necessary changes to the Fargo Municipal Code 25-1509.1 to allow an event vendor to supply their own alcoholic beverage vessel.
4. Receive and file the Summons and Complaint relating to 501 Main Ave DevCorp, LLC v. City of Fargo.
5. Receive and file an Ordinance Amending Section 25-1504.1 of Article 25-15 of Chapter 25 of the Fargo Municipal Code Relating to Alcoholic Beverages (moved to the Regular Agenda).
6. Site Authorizations for Games of Chance:
a. American Gold Gymnastics, Inc. at The Box.
b. Fargo Angels Hockey Club at Double Down Bar Grill Casino.
c. Fargo Youth Hockey Association at Buffalo Wild Wings-19th.
d. Fargo Youth Hockey Association at Buffalo Wild Wings-42nd.
e. Metro Sports Foundation at Mexican Village.
f. Metro Sports Foundation at Brewtus Clubhouse.
g. Prairie Public Broadcasting, Inc. at Bison Turf.
h. Prairie Public Broadcasting, Inc. at Dempsey’s.
i. Prairie Public Broadcasting, Inc. at Pepper’s.
j. Prairie Public Broadcasting, Inc. at Slammer’s Sports Bar.
k. Prairie Public Broadcasting, Inc. at Tailgator’s.
l. Red River Human Service Foundation at Sickies on 45th.
m. Red River Human Service Foundation at The Northern.
n. Team Makers Club, Inc. at Frank’s Lounge.
o. Team Makers Club, Inc. at King Pinz.
p. Team Makers Club, Inc. at Lucky’s 13 Pub.
q. Team Makers Club, Inc. at Sanford Heath Athletic Complex-Scheel’s Arena (SHAC).

7. Applications for Games of Chance:
a. Bethlehem Lutheran Church for a raffle on 5/29/24.
b. Fargo All Stars Family for a raffle on 5/17/24.
c. Fargo Youth Baseball for a raffle board on 5/4/24.
d. FM Derby Girls for a calendar raffle on 5/18, 6/8, 8/3, 8/24 and 9/28/24.
e. Rebuilding Together Fargo-Moorhead Area for a raffle board on 5/9/24.

8. Right of Way Use Agreement with Oak Grove Lutheran School and Olaf Anderson Construction, Inc. for property located at 124 North Terrace North.
9. Farm Lease with Aaron Brakke d/b/a Aaron Brakke Farms for property located at 6851 45th Street South.
10. Memorandum of Offer to Landowner for Easement (Temporary Construction Easement) with Forum Communications Company (Project No. SN-24-A1).
11. Bid advertisement for Project No. UR-24-H.
12. Contract and bond for Project No. SR-24-A1.
13. Memorandum of Offer to Landowner for Permanent Easement (Sidewalk) with Peter M. Stollenwerk and Lorraine R. Stollenwerk, and MIS LLC (Improvement District No. SR-24-B1).
14. Change Order No. 3 in the amount of $115,097.57 for Improvement District No. BN-23-C1.
15. Capital Improvement Plan Revision for Improvement District No. BR-23-G1.
16. Bid award to Border States Paving, Inc. in the amount of $2,913,976.48 for Improvement District No. PR-24-G1.
17. Bid award to Master Construction Company, Inc. in the amount of $1,871,362.80 for Improvement District No. BR-24-F1.
18. Create Improvement District No. AN-24-B (Alley Paving).
19. Contract and bond for Improvement District No. BN-23-E.
20. Contract and bond for Improvement District No. BN-24-A.
21. Items from the FAHR Staff meeting:
a. General Fund Budget to Actual through 3/31/24.
b. General Fund - 2024 Year End Projections.
c. Grant Award/Budget Adjustment in the amount of $376,000.00 for the Ryan White Part B Program with a budget adjustment in the amount of $76,000.00.

22. Notice of Grant Award Amendment from the ND Department of Health and Human Services for detection and mitigation of COVID-19 in homeless shelters (CFDA #93.323).
23. Resolution approving Plat of Edition Fourth Addition (Attachment “A”).
24. Resolution approving Plat of Laverne’s Fifth Addition (Attachment “B”).
25. Receive and file Bias Motivation and Hate Crime 1st Quarter Report.
26. Landscape Maintenance Services Agreement with JT Lawn Services (RFP24140).
27. Piggyback purchase through the State of North Dakota contract with Nelson International for one 2025 International HV613 SBA Water Filtration Sludge truck chassis (PBC24196).
28. Amendment No. 1 with KLJ, Inc. in the amount of $9,988.78 for the MATBUS Transit Reorganization Study.
29. Change Order No. 1 with Phoenix Fabricators and Erectors, LLC in the amount of $61,877.55 for Project No. WA1910.
30. Bid advertisement for Project No. WA2451.
31. Bid Award to Park Construction Company in the amount of $3,720,432.80 for Project No. WW1707.
32. Bills in the amount of $15,184,822.66.

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

Resident Comments:
Cody Schuler spoke about the resident comment policy; and Prairie Johnson, Saida Aweis, Habiba Elbassiouny, Andrew Nelson and Allison Slavik spoke about a Gaza ceasefire, human rights and foreign affairs.

Application Filed by AKC HoffCo LLC d/b/a Good Times on NP for an Alcoholic Beverage License Approved:
A Hearing had been set for this day and hour on the application filed by AKC HoffCo LLC d/b/a Good Times on NP for a Class "C" Alcoholic Beverage License at 623 NP Avenue, notice of which had been duly published in the official newspaper for the City of Fargo.
No written protest or objection to the granting of the application has been received or filed in the office of the City Auditor, and said application has been approved by the Police Department as to the character of the applicant.
The Board determined that no person is present at this Hearing to protest or offer objection to the granting of the application.
City Auditor Steve Sprague said the application is for a Class “C” liquor license, which is for beer only, no food sales are required and a bar is allowed. He said this will be an entertainment facility featuring comedy shows, local musicians and open mic nights.
Commissioner Piepkorn moved the application be approved.

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.

Parcels of Land in Erskine’s Addition Rezoned (1002 and 1008 10th Street South):
At a Hearing held on April 2, 2024 the Fargo Planning Commission recommended approval of a change in zoning from MR-2, Multi-Dwelling Residential and SR-3 Single Dwelling Residential 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 Salem Evangelical Free/Relevant Life Church is pursuing a zone change in order to install a larger sign for the church than what is currently allowed by the MR-2 and SR-3 zones, which is 8 square feet. They are proposing a static sign of approximately 50 square feet, orientated towards 10th Street South.
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.

Second by Kolpack. On the vote being taken on the question of the adoption of the Resolution Commissioners Preston, Kolpack, Piepkorn, Strand and Mahoney voted aye.
No Commissioner being absent and none voting nay, the Resolution was adopted.

First Reading of an Ordinance Rezoning Certain Parcels of Land Lying in Erskine’s 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 Certain Parcels of Land Lying in Erskine’s Addition to the City of Fargo, Cass County, North Dakota be placed on first reading.

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.

Application Filed by NEX Senior, LLC for a Payment in Lieu of Tax Exemption (PILOT) Approved:
A Hearing had been set for this day and hour on an application filed by NEX Senior, LLC for a payment in lieu of tax exemption for a new 40-unit affordable senior housing project at 1728 42nd Street South.
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.
Director of Strategic Planning and Research Jim Gilmour said NEX Senior will consist of 40 units of affordable housing in a midrise style building with first floor covered parking and three stories of 1- and 2-bedroom units. He said affordability will range from 30 percent to 80 percent Area Median Income (AMI). Commonwealth Development Corporation of America, owner of NEX Senior, LLC, has previously obtained a PILOT in Fargo for the Edge Artist Flats at 1321 5th Avenue North, he said. This project will be a 100 percent affordable development secured through Section 42 Low-Income Housing Tax Credits, he stated, and selected from a highly competitive field which will address the pressing need for in-fill senior housing in Fargo. The complex will be located near West Acres, offering convenient access to amenities and services, he said.
Commissioner Piepkorn said at the Economic Development Incentives Committee meeting there were questions about the costs, which are significantly more than the average development due to regulations and red tape with low income housing.
Mr. Gilmour said there are generally higher construction costs with these types of projects due to universal designs, legal fees, specific wage rates and required monitoring.
In response to a question from Commissioner Strand asking about criteria for a project such as this if it were to sell and if that happens, how does the City know if the rents are still affordable, Mr. Gilmour said it is required that the rents are affordable for 30 years. He said there is a lien on the property that requires a new owner to comply with regulations.
Commissioner Piepkorn moved that the application filed by NEX Senior, LLC for a 17-year, 100% payment in lieu of tax exemption pursuant to Chapter 40-57.1, NDCC be approved.

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.

Resolution and Memorandum of Understanding with the Fargo Housing and Redevelopment Authority to Provide Riverfront Tax Increment Financing (TIF) Funds for the Lashkowitz Housing Project Adopted:
Director of Strategic Planning and Research Jim Gilmour said he reported information at the last City Commission meeting about Riverfront Tax Increment Financing (TIF). He said at that time he described the proposal for TIF assistance in the amount of $536,000.00 for the new Lashkowitz Housing Project for architectural improvements and to add washers and dryers in every unit to make it more livable. The Riverfront TIF fund has a current balance of $93,444.00, he said, plus projected 2025 funds of $572,000.00, which means funds available in 2025 would be $665,444.00. He said after giving $536,000.00 to Fargo Housing for the Project and reserving $100,000.00 for the Civic Plaza, there will be a balance of about $29,444.00. He said the City Attorney’s office has drafted a Resolution and MOU to provide these TIF funds for the Project.
In response to a question from Commissioner Preston asking for a long-term plan for the Riverfront TIF District and asking if an informational meeting is in the works, Mr. Gilmour said a date for that meeting will be coming from City Administration. He said the City Commission has a lot of choices and priorities to decide and he hopes that meeting will be scheduled soon.
In response to a question from Mayor Mahoney asking when construction will begin, Chief Executive Officer of the Fargo Housing and Redevelopment Authority Chris Brungardt said the closing with the developers and investors is June 1st and the hope is the contractors can start digging on June 2nd.
Commissioner Strand moved that the Resolution titled “Resolution Affordable Housing Project – Fargo HRA,” and referred to as “Attachment C,” be adopted and attached hereto, and the Memorandum of Understanding with the Fargo Housing and Redevelopment Authority for the Affordable Housing Project/Lashkowitz be approved.

Second by Preston. On call of the roll Commissioners Strand, Preston, Kolpack, Piepkorn and Mahoney voted aye. No Commissioner being absent and none voting nay, the Resolution was adopted and the Memorandum of Understanding was approved.

Update on the NP Parking Garage Project:
Director of Strategic Planning and Research Jim Gilmour said the FM Community Theatre and the Kilbourne Group investors have committed to the redevelopment project on NP Avenue and the project is moving ahead. He said the NP Avenue surface parking lot will close April 30th and those renting parking spaces have been notified. A groundbreaking is scheduled for May 1st at 4:00 p.m., he stated, and the City Parking Garage is scheduled for completion in July 2025. The shell of the FM Community Theatre is scheduled for completion on August 1, 2025, he said, and the Avery Apartments are scheduled for completion on August 1, 2026. The FM Community Theatre expects to open in the fall of 2026 and Global Development will begin renovation of the former Herbst building in 2025, he said, with main floor commercial space and a hotel on the upper floors. He said all in all, this is more than a $70 million investment Downtown.

Revised Inter-Fund Loan Policy Received and Filed:
Finance Director Susan Thompson said at the November 14, 2022 meeting, the City Commission approved the Development Agreement regarding the NP Parking Garage project and related funding plan for the City’s $20 million obligation. She said as per the plan, the City will issue appropriation bonds to finance approximately $16 million of the project and municipal adviser Baker Tilly will assist with a Request for Proposals (RFP) to select a placement agent that will market the bonds. She said upon receipt of bids, she will bring forward the bid results and suggested award for City Commission approval. She said the remaining construction cash will be provided through a City of Fargo inter-fund loan of excess cash within a debt service fund, as per the funding plan. Inter-fund loans have been successfully used in the past for projects such as Newman Outdoor Field, Parking Authority repairs and Neighborhood Revitalization under the guidelines established by the Inter-Fund Loan Policy. Upon discussion with bond counsel, she said, borrowing from a debt service fund can be accomplished via the City's adoption of an enabling Ordinance, which is being presented tonight for consideration, and to include requirements of a Resolution and specific terms and conditions. Upon formalization of the Ordinance, she said, Finance will present an Inter-Fund Loan Resolution specific to this project prior to the loan advance. In conjunction with the new Ordinance, she said, she is requesting that updates to the Inter-Fund Loan Policy include current processes and allow flexibility within borrowing parameters.
In response to a question from Commissioner Preston asking about the difference between appropriation and revenue bonds, Finance Director Susan Thompson said a revenue bond is used, for example, if a bridge is being built and there is going to be a charge for using the bridge and there would be specific monies. In this case, the City is charging for the parking, she stated; however, due to the fact that the debt needs to be structured differently and the TIF monies do not come in for a few years, the City is working with a bond agent and will only pay interest for a few years and when the TIF kicks in, the City will pay more of the principal. In order to structure it that way, the City needs to do the appropriation bond, she said. There will tentatively be a parking informational meeting on May 17th where there will be more information on parking revenue, TIF monies and parking garage debt service, she said.
In response to a question from Commissioner Strand asking for examples of debt service funds, Ms. Thompson said the most common are refunding improvement bonds. She said with special assessments, the City cannot use that as revenue due to the fact that those funds are tied to the bonds; however, the City can borrow against those finds and use other funds such as enterprise or general.
Commissioner Strand said it is gratifying to see investors stepping forward for this project and he is anxious to see more information about Downtown parking such as how many ramps, who owns them, revenue and more.
In response to a question from Commissioner Strand asking would there be any harm in putting this item on the back burner until after May 17th, Mayor Mahoney said the City Commission has made a commitment to the developer and the Developer Agreement is approved and signed.
Assistant City Attorney Erik Johnson said these two items are to be received and filed and in two weeks the Ordinance will be placed on 1st reading and then two weeks after that there will be a 2nd reading and final adoption. He said the City Commission approved the Developer Agreement and financing, the contingency has been committed to and this is a housekeeping issue for a plan that has been in place for two years.
Commissioner Kolpack moved that the Revised Inter-Fund Loan Policy be received and filed.

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

Ordinance Relating to Authorizing the City Commission to Approve Program of Interfund Loans to be Placed on First Reading at the Next Regular Meeting of the Board:
Finance Director Susan Thompson said this Ordinance is another housekeeping issue that cleans up some outdated terms, specific interest is identified and the loan program is now more flexible.
Commissioner Kolpack moved an Ordinance Amending Section 4-0402 of Article 4-04 of Chapter 4 of the Fargo Municipal Code Relating to Authorizing the City Commission to Approve Program of Interfund Loans be received and filed and placed on first reading at the next Regular Meeting of the Board.

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

Update on Overnight Winter Weather Initiative at the Downtown Engagement Center:
Assistant City Administrator Brenda Derrig said the last night of operation of the Overnight Winter Weather Initiative at the Downtown Engagement Center (DEC) will be April 30th. She said on May 1st, the DEC will return to the operational hours of 8 a.m. to 5 p.m. She said one of the allocated American Rescue Plan Act (ARPA) projects approved by the City Commission was the Overnight Winter Weather Initiative, which provided a temporary overflow plan for those experiencing homelessness during the winter months. She said this approach allowed for the City’s response to be proactive in sheltering the most vulnerable in the community in order to prevent cold weather-related injury or death, she said. With that, the metro area is still seeing shelters at capacity along with limited housing availability, she stated. The winter program opened November 15th and since then there have been 8,096 encounters with 698 individuals, she said, 233 of which were new to City services. The average length of stay was eight nights, she said, and there were 86 successful diversions to a shelter, hotel, family, friends or other safe places that did not include a detox facility, jail or hospital. The preliminary final budget report includes what ARPA funds were used along with a grant Public Health received, she stated. The grant had to be spent by the end of May, she said, and the City only spent about $50,000.00 of the $152,000.00 allocated for winter programming from ARPA funds. She said she will be working on a full report of the winter program along with final costs. She said she will schedule a return visit from James Matthy to meet with the City Commission and provide a report from his visit along with next steps. The City is also implementing a neighborhood outreach team that will focus on the Downtown area, she said.
In response to a question from Commissioner Strand asking if the Overnight Winter Warming Initiative will be in place for next year, Ms. Derrig said that is the hope and with the final report, she will know more about operational procedures and what worked and what did not work. She said ARPA funds will be depleted; therefore, if this is something leadership chooses to continue, the City will have to look at this in next year’s budget.

Resolution Adopting Governance Polices of the Board of City Commissioners Adopted:
City Attorney Nancy Morris said this is a Resolution that will adopt the policies the City Commission has been working on for the past 10 months. She said it is similar to the Resolution approved every two years when a new Commission is sworn in. It also includes the pre-existing code of conduct and agenda rules, she stated, and is a complete package of all of those policies.
In response to a question from Commissioner Preston asking if the implementation of these policies is immediate, Mayor Mahoney said at the next meeting, this will be the policy.
City Administrator Michael Redlinger said there are some elements of the policy that will have immediate effect and impact and he will be meeting with staff to talk about revisions to the resident comment period and there are other elements of the policies that will take time, especially against the backdrop of starting the 2025 budget. He said he would like to take this in pieces and report back to the Commission as they are implemented.
In response to a question from Mayor Mahoney asking if the resident comment period and the agenda comment discussion will be a change at the next meeting, Mr. Redlinger said starting at the next meeting, general resident comments not about the agenda will be at the end of the meeting. Residents will be allowed to speak before any agenda item, he said, and an online signup with instructions is forthcoming.
Commissioner Kolpack said the Communications Department will be putting together a plan on how the new governance policies will affect the public for future meetings. She also suggested an annual review of the policies.
Commissioner Kolpack moved the Resolution titled “Resolution Adopting Governance Policies of the Board of City Commissioners of the City of Fargo,” and referred to as “Attachment D,” be adopted and attached hereto.

Second by Preston. On the vote being taken on the question of the adoption of the Resolution Commissioners Kolpack, Preston, Piepkorn, Strand and Mahoney voted aye.
No Commissioner being absent and none voting nay, the Resolution was adopted.

Presentation on Options for Reviewing the City’s Boards, Commissions and Committees:
City Administrator Michael Redlinger said at the final Governance Polices Workshop, it was suggested that a next step could be to review the City’s Boards, Commissions and Committees. He said potential options include:
Option 1: City Commissioners could individually provide comments and/or suggestions on existing Boards, Commissions and Committees to the City Administrator and Executive Assistant, who would compile the information and report back to the City Commission.
Option 2: City staff, led by City Administration, could conduct an internal analysis of Boards, Commissions and Committees with the departments and provide a technical report and recommendation to the City Commission, which could consider the suggestions and provide further direction.
Commissioner Preston said she believes boards and commissions are advisory to the City Commission so the Commission needs to understand how they supplement the decision-making process. She said she would suggest setting out some framework for determining what is going to come from the staff level and what are the goals of a broader public input process.
Commissioner Strand said he thinks there should be input from existing board and commission members who have a lot of experience in the trenches. He said some of these boards and commissions should not exist anymore and the Commission needs to separate the wheat from the chaff and prioritize. Other ideas would be to get feedback from constituents and also look at how other government entities solicit public engagement, he said.
Mr. Redlinger said there are some boards the City has to have by law and there are some that are a convenience. It may be a good idea to look nationally and see how other cities do it and is there a better way or are there other boards the City may want or not want, he said. Perhaps there can be a meeting in July to discuss this further once budget meetings are completed, he said.

Ordinance Relating to Alcoholic Beverages to be Placed on First Reading at the Next Regular Meeting of the Board (Moved from the Consent Agenda):
City Auditor Steve Sprague said at the March 18, 2024 Regular Meeting, the City Commission directed him to work with the City Attorney’s office to present an Ordinance revision that would require background checks of owners and general managers at the time of a license renewal in addition to the presently required background investigation at the time of initial application. He said this amendment accomplishes that requested change and in addition, there is a draft of a Resolution to address the implementation of the revised Ordinance in a fair and orderly manner. He said the license holders are being asked to identify general managers within a month of the Resolution addition and those general managers would be grandfathered, meaning no background check would be conducted for any time prior to the date of notification. If the owner and general managers remain the same at the time of renewal, the background check would be limited in duration from the time of notification, he stated. Owners will have an opportunity to amend their application any time there is a general manager change and secure a recommendation from the Police Department similar to an initial application. He said he is proposing that all licenses continue to be renewed in June 2024, and once all licenses are renewed and the general managers identified, an Ordinance will be presented changing the renewal date from June to a date to be determined by Resolution. He said he will then provide a breakdown of existing license and schedule renewals on a quarterly basis, with some prorated, in order to spread out the additional work contemplated by this Ordinance. He said the City will renew all of the 200-plus liquor licenses for June 30th and then start the quarterly process and break it down to do about 50 to 55 liquor licenses per quarter. The first set of renewals will come back to the City Commission in September, he said, and will continue forward through the year and after one year, everyone will be on a new renewal date.
Commission Preston said what is confusing is the background checks not going back retroactively.
Mr. Sprague said it is easier for the Police Department to only have to go back one year. There are some liquor license holders who passed their background check 40 years ago, he said, and the City may not know of any incidents that might have happened during those years; however, going forward if something happens, the City will be made aware of those incidents.
In response to a question from Commissioner Preston asking when a new liquor license application is received, the City looks back beyond one year and how is that rationalized, Mr. Sprague said with a new application, he is looking at it for the first time and in comparison, there are licensees who have had their license, gone through the initial background check process and now the City is saying if there was something that happened years ago, the City is not going to be punitive.
Commissioner Strand said he remembers discussions about a manager who had a previous felony and one business owner saying it is on their shoulders if they hire somebody they believe is qualified and the best candidate.
In response to a question from Commissioner Strand asking if this will cost people the ability to be managers, Mr. Sprague said if there is a manager change and within a renewal cycle, the owners will have the opportunity to present that manager for the background check. He said if the manager is someone the City would not recommend, the City is not telling the owners they cannot hire that person; however, the owners are now aware of what that person’s background might be.
Ms. Morris said it would be similar to a new application and the recommendation would come from the Police Chief as to whether or not that renewal or that license would be issued.
In response to a question from Mayor Mahoney asking what is the City trying to cure, Mr. Sprague said to have an annual background check done by the Police Department.
Mayor Mahoney said an owner could bring somebody in that should not be a manager and the City would not catch that now due to the fact that there are no yearly checks, and what this does is catch a manager who should not be in that position.
In response to a question from Commissioner Strand asking if this means the City is disqualifying that employee from being a potential manager, Ms. Morris said it is. She said guidelines were adopted in 2018 that establish criteria for an individual to be an owner or a manager at the time of application and now this is implementing that criteria. Instead of saying everybody is going to go back to the time of application, this is just a slow approach to how many managers and how many owners will be background checked, she stated.
In response to a question from Commissioner Strand asking if that person will be disqualified if they have had a previous felony, Chief Zibolski said it would and the process will be similar to what it is now. He said there is a set of established criteria that would identify someone who the Police would find not to be suitable. What this process does is add the managers in, which the Police have no ability to do now and there have been issues with managers, he said. The reason the City is not going back to the beginning is after discussions with established owners, he said, it would be difficult to go backwards and penalize someone who has had a license for a long time. Going forward for that owner, as the manager changes, they will get that background check, he said, and if that person is not someone the Police recommend and the business chooses to hire them, that is a licensing decision by the City. In a sense the owners are getting a heads up that this would be a poor decision, he stated; however, the City is not telling them what to do. The Liquor Control Board would make that decision with an appeal to the City Commission possible; therefore, there are plenty of processes in place, he stated.
Commissioners Strand asked that the Liquor Control Board talk this through due to the fact that he does not want to see it so black and white that somebody who has had a previous felony is immediately Scarlet-lettered.
In response to a question from Commission Preston asking if a felony happened within the current year, is that the only time it would be considered, Chief Zibolski said when there is a new applicant, the Police will go back further than one year. With current license holders, he said, they are being grandfathered and Police are looking only at current.
Ms. Morris said if there is a recommendation to deny from the Liquor Control Board, the application could be placed on a City Commission agenda, who is ultimately making the decision as to whether to issue a license or not. Using the word grandfathered also means the City is looking at this prospectively, she said, and what has happened in the past is not going to be a consideration, it is moving forward whether or not that person would qualify for that license issuance.
Commissioner Strand said a felony is not always a felony, there are some really violent criminal felonies and there are some nonviolent felonies and is the City differentiating felonies, Chief Zibolski said he looks at each one of them, evaluates and makes a recommendation and the Liquor Control Board and the City Commission can do what they wish.
Commissioner Piepkorn moved An Ordinance Amending Sections 25-1504.1, of Article 25-15 of Chapter 25 of the Fargo Municipal Code Relating to Alcoholic Beverages be received and filed and placed on first reading at the next Regular Meeting of the Board.

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.

John Rodenbiker and Jenna Reno Reappointed to the Library Board:
The Board received a communication from Mayor Mahoney recommending that John Rodenbiker and Jenna Reno be reappointed to the Library Board.
Commissioner Kolpack moved John Rodenbiker and Jenna Reno be reappointed to the Library Board for three-year terms ending June 30, 2027.

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.

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

The time at adjournment was 6:29 o’clock p.m.