Board of City Commissioners - September 11, 2017 Minutes

The Regular Meeting of the Board of City Commissioners of the City of Fargo, North Dakota, was held in the City Commission Room at City Hall at 4:30 o'clock p.m., Monday, September 11, 2017.
The Commissioners present or absent were as shown following:
Present: Gehrig, Grindberg, Piepkorn, Strand, Mahoney.
Absent: None.
Mayor Mahoney presiding.

City Attorney Erik Johnson announced that the Board will meet in Executive Session for the purpose of attorney consultation pursuant to North Dakota Century Code § 44-04-19.1(2) regarding the September 7, 2017 order for preliminary injunction issued by the Court on the Diversion Project (U.S. District Court, Minnesota, Civil File No. 0:13-cv-02262-JRT-LIB), including its impacts on the City as a member of the Diversion Authority.
Commissioner Gehrig moved the Commissioners meet in Executive Session as authorized by NDCC, Section 44-04-19.1(2) to discuss said matters.

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

At 4:32 o’clock p.m. the Board moved to the River Room to discuss said matters in Executive Session.
Members present were: Gehrig, Grindberg, Piepkorn, Strand, Mahoney.

The Executive Session closed at 5:00 p.m. and the meeting reconvened in public session at 5:05 o’clock p.m.
Members present were: Gehrig, Grindberg, Piepkorn, Strand, Mahoney.

The Mayor read a statement with the following information: The Fire Department welcomed five new employees and 16 department members are attending a training class this week on responding to structural collapse incidents; Connie Peterson, a maternal child health nurse and nurse home visitor, retired recently after more than 27 years with Fargo Cass Public Health; Public Health reminds everyone that flu season is approaching and one of the best ways of preventing or lessening the impact of influenza is through annual flu vaccinations; the area libraries’ One Book, One Community reading project is underway and this year’s title is “Hotel on the Corner of Bitter and Sweet” by Jamie Ford; fall and winter hours have started at the library; a lot of housing development is taking place for NDSU students including a new 395-bed residence hall, replacement of University Village housing and a project with 104 housing units in the 1600 block of North University Drive; the Police Department has been working with the North Dakota legislature on a statewide radio system; and the Red River Farmers’ Market in downtown Fargo will soon be wrapping up another successful season.

Order of Agenda Approved:
Commissioner Grindberg moved the Order of the Agenda be approved, moving Item Nos. “9” and “11” from the Consent Agenda to the Regular Agenda and adding an additional item to the end of the Regular Agenda to provide an update on the Wi-Fi Downtown.

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

Minutes Approved:
Commissioner Grindberg moved that the Minutes of the Regular Meeting of the Board held on August 28, 2017 be approved as read.

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

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

1. 1st reading of an Ordinance Amending Section 25-1509, of Article 25-15 of Chapter 25 of the Fargo Municipal Code Relating to Alcoholic Beverages.

2. 2nd reading of the following Ordinances:
a. Amending Section 1-0305 of Article 1-03 of Chapter 1 of the Fargo Municipal Code Relating to Classification of Ordinance Violations.
b. Enacting Article 8-0322 of Chapter 8 of the Fargo Municipal Code Relating to Distracted Driving.
c. Amending Section 8-0321(B)(1) of Article 8-03 of Chapter 8 of the Fargo Municipal Code Relating to Use of a Wireless Communication Device Prohibited.
d. Rezoning Certain Parcels of Land Lying in Original Townsite Addition, Fargo, Cass County, North Dakota.

3. Tax exemptions for improvements made to buildings:
a. Carole Y. Halone and Christi L. Johnson, 1518 29th Avenue South (3 year).
b. William R. Jr. and Alycia L. Gabel, 1602 28 1/2 Avenue South (3 year).
c. David L. and Diane K. Wanner, 914 Park Drive South (5 year).
d. David R. Slack and Debra K. Potter Slack, 218 Forest Avenue North (5 year).
e. Eric G. and Sharla L. Olson, 811 Southwood Drive South (5 year).
f. Steve and Ruth E. Holland, 601 University Drive South (5 year).
g. Rodney M. Greff, 1329 10th Street North (5 year).
h. Mark Anthony Huss, 3027 Elm Street North (5 year).
i. Ryan D. and Shannon L. Gullingsrud, 1218 3rd Street North (5 year).
j. Debra A. Cederholm, 401 21st Avenue North (5 year).
k. Carter Anthony II and Jennifer Breding, 3657 Fairway Road North (5 year).
l. Steve W. and Shari L. Bettenhausen, 2901 12th Street South (5 year).
m. R. David and Julie Rydell, 1414 23rd Street South (5 year).
n. Jacob Krieg, 1241 2nd Street North (5 year).
o. Michael E. and Lisa K. Stenstrom, 2921 Edgewood Drive North (5 year).
p. Ray and Karen Frohlich, 3025 Peterson Parkway North (5 year).
q. Michael W. Hayes and Lana D. Waters, 1338 3rd Avenue South (5 year).
r. Joshua Zosel and Andrea Huseth-Zosel, 1358 3rd Street North (5 year).

4. Site authorization for Metro Sports Foundation at Scheels Arena.

5. Applications for Games of Chance:
a. Bryce Thingelstad Benefit Committee for a raffle and raffle board on 10/26/17; Public Spirited Resolution.
b. North Dakota Long Term Care Association for a raffle on 9/14/17.
c. NDSU Lion’s Club for a raffle on 11/15/17.
d. United Way Cass-Clay for a raffle on 9/21/17.
e. Jeremiah Program for a raffle on 11/3/17; Public Spirited Resolution.

6. Resolution Expressing General Support of the Edge Artist Flats Affordable Housing Project at 1321 5th Avenue North (“Attachment A”).

7. Change Order No. 9 for an increase of $7,303.13 for the Roberts Commons Parking Garage.

8. Bid award for one snow plow, box and wing from Northern Truck Equipment in the amount of $89,440.00 (RFP17252).

9. Bid award for Project No. WA1510 (moved to the Regular Agenda).

10. Bid award to Fremont Industries for cooling tower water treatment equipment at the FARGODOME in the amount of $8,924.60.

11. Change Order for an increase of $66,404.00 for BP0031 Fire Station No. 1 – Headquarters Remodel Project (moved to the Regular Agenda).

12. Change Order No. E-2 for an increase of $3,431.60 for the Police Department Remodeling Project at the Border States Electric Building (electrical construction contract).

13. Agreement for Transit Services with North Dakota State College of Science for 2017-2018.

14. Amendment to Engineer-Owner Agreement with KLJ, Inc. for the 2017 rebid services of the GTC Deck Repair and Garage Condition Assessment.

15. Memorandum of Understanding with the NDDOT for Transit Capital Project - Fiscal Year 2017 Urban Roads Program funds.

16. Section 5339 Transit Grant Agreement with the NDDOT (Contract No. 38171124).

17. Section 5310 Transit Grant Agreement with the NDDOT (Contract No. 38171108).

18. Quit Claim Deed for property in Dakota Land Second Addition to the personal representatives of the Estate of Harold L. Newman.

19. Purchase Agreement in the amount of $954,750.00 for acquisition of property at 726 Hackberry Drive South.

20. Purchase Agreement in the amount of $638,000.00 for acquisition of property at 3842 River Drive South (Project No. MS-15-K0).

21. Encroachment Agreement with DFI Black Building LLC at 114 Broadway to allow for an iconic sign.

22. Quote from Dakota Fence in the amount of $73,898.00 to install fence under the 1st Avenue North bridge at the Red River.

23. Release of Permanent Easement with Marie T. and Jonathan B. Offutt for property located in Maier First Subdivision.

24. Final Balancing Change Order No. 4 for a decrease of $137,063.43 for Project No. FM-15-F1.

25. Contract Amendment No. 1 for an increase of $650.00 for Project No. MS-16-M0.

26. Contract Amendment No. 1 for an increase of $22,500.00 for Project No. MS-16-S0.

27. Contract Amendment No. 2 for an increase of $50,725.00 for Project No. MS-15-P0.

28. Bid award to Excavating, Inc. in the amount of $261,671.58 for Project No. FM-14-63.

29. Bid advertisement for Project No. TR-17-B.

30. Contract and bond for Project No. UR-17-F1.

31. Bills in the amount of $20,094,604.18.

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

Cost Participation and Maintenance Agreement with the NDDOT for Improvement District No. BR-18-B1 Approved:
The Board received a Report of Action from the Public Works Projects Evaluation Committee (PWPEC) regarding a cost participation and maintenance agreement associated with the upcoming 10th Street reconstruction project between 4th Avenue North and 12th Avenue North. They said staff has coordinated with the North Dakota Department of Transportation and is comfortable with the language and is recommending approval.
Commissioner Piepkorn moved the Cost Participation and Maintenance Agreement with the NDDOT for Improvement District No. BR-18-B1 be approved.

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

Encroachment Agreement with Fargo Public Schools Approved (Improvement District No. BR-17-F1):
The Board received a Report of Action from the Public Works Projects Evaluation Committee (PWPEC) stating 3rd Street North and 4th Avenue North to the Railroad is included in a street reconstruction project in 2017 and the area will have water lines replaced and improvements made to the sanitary sewer. They said through the design process, two undocumented encroachments have been identified and brought to the attention of the School District and they are requesting to be allowed to continue to encroach.
Commissioner Piepkorn moved the Encroachment Agreement with Fargo Public Schools for Improvement District No. BR-17-F1 be approved, waiving the application and annual fees.

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

Time Extension for Improvement District No. BR-17-J1 Approved:
Commissioner Piepkorn moved approval of a time extension to November 6, 2017 for Improvement District No. BR-17-J1.

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

Time Extension for Improvement District No. BR-17-F1 Approved:
Commissioner Piepkorn moved approval of a time extension to November 15, 2017 for Improvement District No. BR-17-F1.

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

Change Order No. 1 and Time Extension for Improvement District No. BR-17-C1 Approved:
Commissioner Piepkorn moved approval of Change Order No. 1 for an increase of $24,300.00 and time extension to September 15, 2017 for Improvement District No. BR-17-C1.

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

Change Order No. 1 for Improvement District No. BR-17-B1 Approved:
Commissioner Piepkorn moved approval of Change Order No. 1 for an increase of $13,751.40 and time extension to December 4, 2017 for Improvement District No. BR-17-B1.

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

Final Balancing Change Order No. 3 for Improvement District No. PN-15-J1 Approved:
Commissioner Piepkorn moved approval of Final Balancing Change Order No. 3 for a decrease of $50,498.14 for Improvement District No. PN-15-J1.

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

Contract for Sanitary Sewer, Water Main, Storm Sewer, Concrete Curb and Gutter, Asphalt Pavement, Lighting and Incidentals Improvement District No. BN-17-H1 Approved:
Commissioner Piepkorn moved approval of the Contract between the City of Fargo and Fox Underground, Inc. for Sanitary Sewer, Water Main, Storm Sewer, Concrete Curb and Gutter, Asphalt Pavement, Lighting and Incidentals Improvement District No. BN-17-H1 in the City of Fargo, North Dakota.

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

Contract Bond for Sanitary Sewer, Water Main, Storm Sewer, Concrete Curb and Gutter, Asphalt Pavement, Lighting and Incidentals Improvement District No. BN-17-H1 Approved:
Commissioner Piepkorn moved approval of the following described Contract Bond as to sufficiency:
Westchester Fire Insurance Company, in the amount of $677,199.75, for Sanitary Sewer, Water Main, Storm Sewer, Concrete Curb and Gutter, Asphalt Pavement, Lighting and Incidentals Improvement District No. BN-17-H1 in the City of Fargo, North Dakota.

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

Recognition of National Payroll Week and the Efforts of the City of Fargo’s Payroll Processing Team:
Finance Director Kent Costin said companies across America celebrated National Payroll Week September 4-8, 2017. The American Payroll Association started this recognition event 22 years ago, he said, with the goal of helping workers better understand and manage their pay. He said the City of Fargo processes payroll bi-weekly and distributes approximately 32,000 paychecks per year. Extreme attention to detail is required, he said, and each pay period the payroll processing team’s duties include pay changes, tracking hours worked, overtime, taxes and deductions as well as the related filing of federal and state tax returns. He said all of these activities take place in a fast-paced environment with short processing timelines. He said he wants to recognize the efforts of the City of Fargo’s payroll processing teams and thank them for a job well done. He said these teams include the Human Resources Office, the Auditor’s Office and departmental payroll processors.
Commissioner Piepkorn moved to recognize the efforts of the City’s payroll processing teams for their efforts in producing error free paychecks.

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

Parcels of Land in BNG Addition Rezoned (3285 47th Street South):
At a Hearing held on September 5, 2017 the Fargo Planning Commission recommended approval of a change in zoning from LC, Limited Commercial with a C-O, Conditional Overlay to GO, General Office with a C-O, Conditional Overlay.
The City Auditor's Office published a Notice of Hearing stating this is the time and date set for said Hearing at which time all interested persons could appear and would be heard.
Senior Planner Donald Kress said the applicant is proposing to build a three-story office building within 300 feet of a residentially-zoned property. He said the subject property will therefore have to comply with the residential protection standards (RPS) of the Land Development Code (LDC). He said when RPS standards apply to the LC parcel, a 35-foot height restriction applies and by rezoning the parcel to GO under the RPS standards, the structure many not exceed 55 feet in height when located within 101 to 150 feet of any SR zoning district. Since the proposed building is not within 150 feet of an SR zoning district, he said, height restrictions would not apply in the GO zoning district, which allows the maximum height to be 60 feet. He said the proposed office building will be 57 feet tall.
In response to a question from Commissioner Strand regarding the taller part of the building and how far is the setback, Nate Vollmuth, Paces Lodging Corporation, said with the right-of-way at 100 feet, the parking lot and where the building starts, the property line is 290 feet away from a home.
Commissioner Grindberg offered the following Resolution and moved its adoption:
WHEREAS, All legal requirements in connection with the above-described request for rezoning have been complied with; and
WHEREAS, There have been no written or verbal protests to the request for rezoning and no one is present to protest thereto.
NOW, THEREFORE, BE IT RESOLVED, That the findings of staff and the Planning Commission be accepted and the rezoning be approved with the Conditional Overlay requirements listed in the Ordinance on the basis that it satisfactorily complies with the Comprehensive Plan, Standards of Section 20-0906.F (1-4) and all other applicable requirements of the LDC.

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

First Reading of an Ordinance Rezoning Certain Parcels of Land Lying in BNG Addition to the City of Fargo, Cass County, North Dakota:
Commissioner Grindberg moved the requirement relating to receipt of the Ordinance by the Commission one week prior to first reading be waived and that the Ordinance Rezoning Certain Parcels of Land Lying in BNG Addition to the City of Fargo, Cass County, North Dakota be placed on first reading.

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

Parcels of Land in Silverleaf Third Addition Rezoned (2801 64th Avenue South and 2748 Samuel Drive South):
At a Hearing held on July 6, 2017 the Fargo Planning Commission recommended approval of a change in zoning from AG, Agricultural to SR-2, Single-Dwelling Residential.
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.

Senior Planner Donald Kress said the applicant is seeking additional land for their existing single-family home. The applicant wants to take a part of an AG lot, he said, and make their lot bigger and that piece of AG land needs to match the Silverleaf zoning.
In response to a question from Commissioner Strand about how many single family homes will be on this lot, Mr. Kress said it would be just one and would just make the lot bigger. The lot is not conveniently configured and this is just a lot line adjustment, he said.
Commissioner Grindberg offered the following Resolution and moved its adoption:
WHEREAS, All legal requirements in connection with the above-described request for rezoning have been complied with; and
WHEREAS, There have been no written or verbal protests to the request for rezoning and no one is present to protest thereto.
NOW, THEREFORE, BE IT RESOLVED, That the findings of staff be accepted and the rezoning be approved on the basis that the proposal satisfactorily complies with the Comprehensive Plan, Standards of Section 20-0906.F (1-4) and all other applicable requirements of the LDC.

Second by Gehrig. On the vote being taken on the question of the adoption of the Resolution Commissioners Grindberg, Gehrig, Strand, Piepkorn 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 in Silverleaf Third Addition, Fargo, Cass County, North Dakota:
Commissioner Grindberg moved the requirement relating to receipt of the Ordinance by the Commission one week prior to first reading be waived and that the Ordinance Rezoning Certain Parcels of Land in Silverleaf Third Addition, Fargo, Cass County, North Dakota be placed on first reading.

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

Resolution Adopted Approving Silverleaf Third Addition:
Commissioner Grindberg offered the following Resolution and moved its adoption:
BE IT RESOLVED BY THE BOARD OF CITY COMMISSIONERS OF THE CITY OF FARGO:
WHEREAS, A Plat has been filed in the office of the City Auditor entitled “Silverleaf Third Addition” containing 1 Lot, 1 Block, and 0.478 acres of land more or less, located at 2801 64th Avenue South and 2748 Samuel Drive South; and
WHEREAS, A Hearing was held July 6, 2017 by the Fargo Planning Commission, and notice of such Hearing had been published, as required by law, and said Plat had been approved by the Fargo Planning Commission and by the City Engineer; and
WHEREAS, The City Auditor’s Office published a Notice of Hearing on said Plat in the official newspaper for the City of Fargo on September 4 and 11, 2017 that a Hearing would be held in the City Commission Room, City Hall, Fargo, North Dakota at 5:15 p.m., September 11, 2017 at which time said Plat would be considered and all interested persons would be heard.
NOW, THEREFORE, BE IT RESOLVED, That the findings and recommendations of staff and the Planning Commission be accepted and the Plat entitled “Silverleaf Third Addition” be and the same is hereby in all things affirmed and approved on the basis that it complies with the Standards of Article 20-06, and all other applicable requirements of the Land Development Code, and that the Mayor of the City of Fargo and the appropriate City Officials are hereby directed to endorse their approval on the Plat and then direct Petitioner to file same for record in the Office of the Recorder of Cass County, North Dakota.

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

Hearing on Appeal of the Board of Adjustment’s Denial of a Request for a Variance Continued to September 25, 2017 (3931 and 3949 37th Avenue South):
A Hearing had been set for this day and hour on the appeal of an August 22, 2017 ruling of the Board of Adjustment denying the request for a variance for a proposed building to be constructed to a lower level elevation than would otherwise be required by the City’s Floodproofing Code, as referenced by Article 21-06 of the Fargo Municipal Code at 3931 and 3949 37th Avenue South.
Planner Aaron Nelson said the applicant, Solid Comfort, has proposed to construct a new building that would abut and link two existing buildings at a manufacturing facility. He said the proposed building would have a lower opening and a lower earth fill elevation around the structure than would otherwise be required by the City’s Floodproofing Code. The property and proposed building location is within the 41-foot water surface elevation inundation area (WSEIA), he said, and is also within the FEMA-designated Special Flood Hazard Area (100-year floodplain). At this location, he said, the base floodplain elevation is about 905.7 feet and the 41-foot WSEIA is at an elevation of 906.6 feet. The proposed building, he said, is required to meet city flood-proofing requirements; however, the applicant wants to build to an elevation to match existing buildings, which were built before the land came into FEMA’s 100-year flood plain. He said the requested variance was denied due to failure to receive the required super majority four votes.

In response to a question from Mayor Mahoney about what the vote was, Mr. Nelson said the vote was 3 to 2 in favor of approval. He said there are three required building elevations, including the lowest opening fill around the building and 15 feet from the building to be at least 1.2 feet above the inundation area or 2 feet above the FEMA elevation designation. He said in all cases the applicant wants to be below these minimum elevations. He said the Board of Adjustment reviewed the criteria and found the variance criteria was not satisfied; therefore, the building could notbe built to floodproofing requirements.

Storm Sewer Division Engineer Jody Bertrand said Engineering agrees that the variance be denied. He said the three buildings could be hooked together and there would be easy access to all buildings by use of ramps.

In response to a question from Commissioner Strand about 300 Lime and Prairie St. John’s variance requests, which were similar to this request, Mr. Bertrand said the difference with 300 Lime was that they were 3 or 4 inches below the allowable level and this request is more than two feet, which is significant. He said with Prairie St. John’s, they had an existing building, they made concessions and raised the electrical to the second floor and have a certified levee which takes them out of the base flood elevation, which this property does not.

In response to a question from Commissioner Strand about a signed letter of immunity to the City from 300 Lime and if a similar letter could be signed or is this too big of a difference in elevation, City Attorney Erik Johnson said it is a factor for consideration and it might be a helpful condition to have for the variance to be granted.

Inspections Administrator Bruce Taralson said Inspections, Engineering and Planning each have different responsibilities with flood plain management. He said FEMA’s Guidelines for Substantial Improvement are a good example. He said those guidelines say any reconstruction, rehabilitation, addition or other improvement of a structure, the cost of which equals or exceeds 50 percent of the market value of the structure before the start of construction of the improvement, such building or structure shall be made to conform to the requirements of this code. He said FEMA does not want people improving properties in a flood zone and this addition is well over 50 percent. He said since it touches other buildings, the applicant is also asking for the option to build a detached building. He said the City would look at it; however, it would have to stand on its own and meet required floodproofing criteria and this is first time this has ever happened, in scope and size. He said all three departments recommend denial of this variance based on it creating a precedence and what would happen in the future if there were other projects such as this one.

Nick Dietrich, Dietrich Construction representing Solid Comfort, said the plan was to utilize flood barriers for overhead doors and the new structure would be flood proof.

In response to a question from Mayor Mahoney about the cost of the project, Mr. Dietrich said it is between $7 million to $10 million plus many new jobs will be created at the facility.

In response to a question from Commissioner Grindberg as to whether or not the proposed building would be possible without the variance, Mr. Dietrich said the construction of the building in accordance with the Floodproofing Code would necessitate an elevated structure that would require ramps inside the building and would result in unequal grades between the existing buildings, resulting in a reduction of warehouse space and affecting production operations.

Mayor Mahoney said FEMA sets standards for floodproofing and FEMA granted the City an allowance to have basements so there is a concern that if the City abuses the granting of variances, it could affect the discounted insurance rate the City has for flood insurance.

Planning Administrator Nicole Crutchfield said in light of this new information regarding a proposal to build a separate building that is flood protected, her suggestion would be to continue this item in order to let staff and the applicant work out new details.
Commissioner Grindberg moved to continue the Hearing to 5:15 o’clock p.m. Monday, September 25, 2017.

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

Justin Schoenberg Appointed to the Board of Appeals:
The Board received a communication from Mayor Mahoney recommending that Justin Schoenberg be appointed to the Board of Appeals, replacing Wayne Larson who no longer wishes to serve.
Commissioner Gehrig moved Justin Schoenberg be appointed to the Board of Appeals for a five-year term ending June 30, 2022.

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

Update on Downtown Wi-Fi: Resolution Authorizing Licensing Fee Adopted:
Division Engineer Brenda Derrig said the City completed the process for the enactment of Article 24-04 Wireless Telecommunication Facilities in the Public Right-of-Way Requirement and Permits in January 2017. She said at that time, fees associated with Wi-Fi antennas in the public right-of-way were not addressed. She said the City has been meeting with interested businesses to place Wi-Fi antennas in the public right-of-way and have worked with technical experts on Wi-Fi fees, which vary from city to city. She said in the original adoption, the Finance Department approved the Wireless Facilities Guidelines and now what is needed is an amendment to those guidelines which includes the permit and fee schedule for Wi-Fi antennas. She said the recommended fee schedule as written in the Wireless Facilities Guidelines – Amendment 1 are as follows:
Right-of-Way Permit for Wi-Fi:
Free Public Wi-Fi: $25.00/unit/year (no attachment to City infrastructure)
Charge for Wi-Fi: $50.00/unit/year (no attachment to City infrastructure)
City-Owned Structure within ROW Attachment and Agreement
Free Public Wi-Fi: $100/unit/year (use of City power)
$50/unit/year (separate power source)
Charge for Wi-Fi:
$200/unit/year (use of City power)
$100/unit/year (separate power source)
Ms. Derrig said there have been some conversations with providers that Wi-Fi would be free to the general public and with some providers it would be free only if the person is a customer of that provider. She said if it is going to be free it is a benefit to the citizens of Fargo. She said some of the units will be installed on overhead cables and some on traffic signals and the fee would also depend on if a separate power source can be found or if they use city power. She said a Wi-Fi specialist study reported Wi-Fi rentals range from $36.00 to $500.00 depending on how much they are able to work together and if the cities can get some benefit from the Wi-Fi antennas. As far as a business, she said, the City of Fargo would not get much benefit; however, there is a benefit to the public. She said there are 10 sites, with seven on overhead lines and three on traffic signals.

In response to a question from Commissioner Grindberg as to if the antennas are on Xcel Energy poles, Ms. Derrig said when the antennas are on Xcel poles the City has nothing to do with that. She said Midco has a Cable Franchise Agreement with the City; however, this falls into the telecommunications area and a franchise agreement and telecommunications fee are two different items. With a franchise agreement, Xcel has the right to be in the City’s right-of-way. She said if it is cable or cable-related, there is a fee and a permit to be in the City’s right-of-way so they can be tracked due to the fact that there are spacing requirements.

In response to a question from Commissioner Grindberg as to whether or not the small cell agreement had a look back period and if this also needs to be reviewed on a regular basis, based on technology, Ms. Derrig said the thoughts were the City could bring this back through a committee every two or three years to re-evaluate due to the fact that technology is changing so quickly.

Commissioner Gehrig said with Xcel, the City charges them a fee to be in the right-of-way with their wire and they own that wire. He said then the City charges another company to hang from that wire that the City is already charging someone else for. He said other cities do not do that, they charge one time and it is a lesser fee to have wire access. He said this is a good idea; however, the Board needs to look closer at the payment schedule.

Ms. Derrig said Xcel does not pay to be in the right-of-way, they just pay the franchise fee. She said when Midco did their build out, they wanted to go on Xcel poles so they needed permission and they paid a fee to be on their poles. She said due to congestion downtown and everything being overhead, this is the right decision until those utilities go underground or until roads are reconstructed and utilities can be installed.

Commissioner Gehrig said the City could talk with businesses and ask about fees. He said he wants to see it in more places and if the City charges $200.00 for boxes, the City will see less of this.

In response to a question from Commissioner Strand as to whether or not this is for businesses to rent so they can provide Wi-Fi to their customers or it is just for the general public, Ms. Derrig said this Wi-Fi is not meant to go through walls; it is just for outdoors. She said all of the City’s fees are by resolution due to the fact that these are moving targets.

Tim Flakoll, Chair of the Downtown Community Partnership, said Downtown is the most photographed, iconic signature place and having successful Wi-Fi access for big events such as Game Day, the Street Fair and Fargo Marathon will serve the public good. He said his concern is if this opportunity window is closed, it may not open up again for a long time.

Justin Forde, Midcontinent Communications, said millions of dollars were invested to deliver cable and internet service in Fargo and as part of the warm welcome Midco has received in Fargo, Midco wants to deliver Wi-Fi Downtown that is free and open to the public. He said Midco leases the lines; however, they need to be on traffic signals for better service Downtown.

Commissioner Grindberg offered the following Resolution and moved its adoption:
WHEREAS, The City of Fargo has enacted Article 24-04 of the Fargo Municipal Code which authorizes the installation of Wireless Communication Facilities on City Owned Structures in the public right of way; and
WHEREAS, Section 24-0404 of the Fargo Municipal Code authorizes the Board of City Commissioners to adopt Wireless Facilities Guidelines and application fees;
WHEREAS, Section 24-0408 of the Fargo Municipal Code authorizes the Board of City Commissioners to adopt an attachment fee; and
NOW, THEREFORE, IT IS HEREBY RESOLVED BY THE BOARD OF CITY COMMISSIONERS,
1. The Wireless Facilities Guidelines as adopted on January 30, 2017 are here by Amended as provided in the attached Amendment 1, including the fees as stated therein, in accordance with Article 24-04 of the Fargo Municipal Code.

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

At 6:01 p.m. the Board took a five-minute recess.
After recess: All Commissioners present. Mayor Mahoney presiding.

Tax Levies for the Budget Year Beginning January 1, 2018 and Ending December 31, 2018 Approved:
The City Auditor’s Office published a Notice of Hearing stating this is the time and date set for a Hearing on the 2018 Budget at which time all interested persons could appear and would be heard.

Juliette Fiechtner, 721 Hackberry Drive, said she had a 4 percent increase in her property value in 2016 and for 2017 it is 37.9 percent which is an $80,000.00 increase in her value. She said she previously lived in Arizona where she purchased a home before the housing bubble and she lost money. She said she is seeing the same thing in Fargo. Her family lives on a budget, she said, and this increase will greatly affect her family’s ability to support local businesses.

Marissa Oelke, 1349 14th Street South, said she purchased her home five years ago for $120,000.00 and it is now assessed at $182,300.00. She says she does not feel her home is worth that much and wants the City to come to her home and re-evaluate.

In response to a question from Commissioner Grindberg asking if her home had been incrementally growing in value over the past five years or if the value changed that much in one year, Ms. Oekle said the value has been growing each year; however, the value increased dramatically this year.

Mayor Mahoney said the discussion tonight is about the City budget, not property values. He said assessments cannot be changed right now; however, he thinks assessed values will start to come down.

City Assessor Ben Huschka said if residents have any questions about their current assessments, they can contact the Assessor’s office. He said informally, his department can still receive appeals if the request is made.

Joe Burgum, 514 10th Avenue South, said a large portion of the budget is the operating budget and with municipal accounting, there are different funds that are allocated in certain ways, such as debt service. He said he would like to see the Capital Improvement Plan (CIP) be added to the budgeting process. He said when talking about property taxes, assessments and mills in the current budget, there is a proposal to lower mills; however, capital improvements, which have huge ramifications on special assessments, debt service and outlays for the City, are not discussed. He said the CIP is upwards of $100 million, which is more than the City’s annual operating budget, yet it is not discussed at the same level of detail and public transparency as the budget. He said the City should be financial stewards and the CIP should be looked at as it relates to budgets, assessments and property taxes.

Richard Huschka, 2105 2nd Street North, said he moved to Fargo in 2015 and the valuation of his home is $27,000.00 more than what he paid for the house and to him it does not add up.

Dane Ronning, 5463 27th Street South, said he is a concerned citizen and there are many people here tonight who are upset about their taxes increasing again. He said taxes are going up and there is a much higher chunk for property taxes. He said over the past five years, his property value has increased 45 percent. He said he had his home appraised and was told the value of his home is correct and home like his are being sold for this amount. He said the City is being greedy and riding the property value bubble. He said his neighbor’s home has been on the market for more than 101 days at less than the assessed value and they have dropped the price twice. He asked the Board to consider giving taxpayers a respite.

Commissioner Piepkorn said the City dropped the levy by 2 mills, the County 8.7 mills, Park District .93 mills and the schools stayed the same. He said the key for the past eight years has been the State buy-down program, which for his home was about $860.00. He said the North Dakota Legislature promised to reform property taxes; however, they instead used oil money to buy down property taxes, which was the easiest thing to do; however, not the most courageous. He said now the oil money has run out and the property tax buy down has gone away. He said he is proud of the City’s budget, it is flat and the mills dropped by two.

Robert Schnell, 3014 Hickory Street, said his property taxes were up this year 19.87 percent. He said he thought assessments were based on the number of sales, size of house, location, remodeling, age and construction type; however, in his neighborhood the only thing that counted was the style of home. He said he went through the data and one-story houses went up 10 percent, two stories 7 percent, split-levels 6.7 percent, and story and halfs 12 percent. He said property values need to be looked at overall. He said if the City wants to drive him out of his home, they are doing a good job.

Buel Sonderland, 2102 25 1/2 Avenue South, said the assessment process has run amok. He said his home is 36 years old and has never had any updates. He said last year, the assessed value increased by $67,000.00 in one year and in the past three years it has increased $87,300.00. He said the City has taken advantage of an aggressive assessment process. He said the rapidly growing population and the ever-expanding footprint of the City have taken a significant bite out of his purchasing power. He stated the continued process of low-density growth, which has created a never-ending expanding need for infrastructure, and the increasing cost of City services has resulted in an increased cost to taxpayers and it is out of balance. He said the City needs to adopt a policy of filling in open spaces that already have existing infrastructure. He said the need for growth incentives is no longer needed, including tax breaks for homebuilders, new business and developers. He said he is asking for consideration of the taxpayers.

Andrew Froelich, 1422 River Road South, said he is retired and has lived in Fargo for 45 years. He asked if the Board could set the level of property tax paid for those who are retired or of a certain age as other communities do. He said the property tax seems regressive for those with a fixed level of income and it is unfair. He said in Oklahoma and Texas, property taxes are frozen when a homeowner gets to a certain age or income level. He said North Dakota also taxes Social Security, which is greedy and it makes him wonder if he wants to stay in Fargo.

Dean Eggermont, 1402 Broadway, said his home is priced above what he can sell it for and he asked for continued perseverance with the budget. He said he hopes good decisions are made. He said the citizens are voicing their concerns due to the fact their coffers are limited as well.

Jacqueline Jandt, 1610 6th Street South, said she received a 12.24 percent increase in her property value. She said although it does not seem like much, if a person received a 12.24 percent pay raise, they would be very happy. She said inflation is usually 3 percent; therefore, 12.24 percent is out of line.

Tom Kupich, 1162 Eagle Park Drive South, said he owes $160,000.00 on his home and he lives off his savings and 401(k). He said his taxes went up $1,100.00 as well as $700.00 for flood insurance, which if he does not pay, the bank will take away his home. He said a lot of land is wasted on the new schools and homes could be built on some of that land. He said kids are not getting smarter and they do not vote. He said only one out of six people voted in the last election. People are not waiting in line for this meeting, he said, which proves they are uninformed.

Kim Gould, 1408 9th Avenue South, said she purchased her first home in August at age 55 and less than a week later, she received a letter about her property taxes. She said she works 2.5 jobs to pay for her home which she needed as a place for her family to gather due to the fact she is now the family matriarch. She said she cannot continue to work multiple jobs to pay for her home and as much as she wants to be a part of this economy, she only sees herself going backwards.

Mayor Mahoney said a City budget needs to be passed. He said the budget was kept very slim and the City has done everything possible to keep taxes down.

Commissioner Strand said there is a challenge with assessments and special assessments; however, this a state statute and solutions have to come from the state. He said the Board can balance the City budget and make it as tight and frugal as possible, given the needs of public safety, which are pressing. He said he is going to defend the public schools, the City’s quality of life, the condition of the neighborhoods, trees, water and everything. He said Fargo is a great city; however, he challenges the Commission on how to address specials and assessment increases in this bubble.

Commissioner Grindberg said he is glad North Dakota never got into the sub-prime lending game. He said the Commissioners started talking about the budget many months ago and spending was reigned in to achieve a 95 percent budget, knowing the challenges of the state, county and school district. He said the Legislature needs a process of assessments and needs a new formula due to the fact that the current one is archaic. He said Ben Huschka is the best voice for the assessment processes. He said last year, the Board knew home valuations were going up; however, what the City has improved on is rather than one big jump, it has been gradually. He said this is a good budget for the City of Fargo, but more work has to be done statewide.

Commissioner Gehrig said the proposed preliminary budget has a 2-mill reduction, which is about 3.8 percent of a Fargo resident’s share of property taxes. He said he has some suggestions for the budget, which if approved, would be about a 5.5 percent reduction, which is three mills. He said the unallocated funds, which are rolled over to next year’s budget, on average are 2 to 3 percent or $1.8 million to $2.7 million. In this budget, he said, the City is suggesting a half percent and if that is bumped up to its average or even below, the budget could be reduced one mill. He said his suggestion for Cost of Living Adjustments for employees gives the bottom third a 3 percent increase, the middle third a 1 percent increase and for those making $85,000.00 or more, no increase. He said the plan in the preliminary budget is a 2 percent raise across the board; however, if his COLA is approved, one more mill could come out of property taxes. He said the Link FM costs $100,000.00 and it underperforms consistently. He said the Arts and Social Services Fund is about one mil and it is a charity fund. He said the citizens pay taxes so the government can take that money and gives it charities the City finds important. He said if the Arts and Social Services Fund is cut, it would cut additional mills from property taxes.

Commissioner Gehrig moved the Link FM be cut from the preliminary budget.
The motion died for lack of a second.

Commissioner Gehrig moved to change the unallocated amount from $600,000.00 to $1.1 million.
The motion died for lack of a second.

Commissioner Gehrig moved to accept the COLA plan as presented.
The motion died for lack of a second.

Commissioner Gehrig moved the Arts and Social Services Fund be removed.
The motion died for lack of a second.

Commissioner Gehrig said there are rate increases for utilities in the budget. He said he is the liaison to Utilities and objects to the increase. There has been a great deal done with utilities, he said, and he is very proud of citizen’s response to investing in the City. He said the sewer and water plants have been expanded, the City has partnered with other communities and there are a lot of great things happening; however, the City’s response is to increase the utility rates.
Commissioner Gehrig moved to eliminate the increase in utilities this year.
The motion died for lack of a second.

In response to a question from Commissioner Gehrig as to whether or not anything had changed from the preliminary budget dated August 2, 2017, City Administrator Bruce Grubb said the preliminary budget is what is being presented tonight for approval.

Commissioner Gehrig said Commissioners were asked to give input on the preliminary budget, which they did; however, none of their suggestions or input were accepted.

Mayor Mahoney said the budget team did listen to input from the Commissioners and with unallocated funds, more was taken than normal. He said as for the COLA recommendations, 47 percent of the people in the lower bracket and 45 percent in middle bracket have left the City. He said in the middle bracket is Fire and Police. He said as for the rest of Commissioner Gehrig’s recommendations, he is not going to comment at this time; however, every suggestion was looked at and the budget team feels this the best budget to put forward.

Commissioner Strand moved the 12-month budget beginning January 1, 2018 and ending December 31, 2018 be approved as follows:

General Fund $96,368,000

Special Revenue Funds:
City Share of Special Assessments $555,000
Noxious Weeds 35,000
Convention Bureau 2,360,000
Regional Law Enforcement Training Center 90,000
Court Forfeits 160,000
Skyway Maintenance 136,000
Downtown Business Improvement District 330,000
Neighborhood Revitalization Initiatives (NRI) 21,409
Community Development Block Grants 722,791
HOME Program 30,000
Neighborhood Stabilization Grant 419,308
HOME Projects 525,379
Parking Authority Operations 1,811,456
Parking Repair and Replacement 420,000
Newman Outdoor Stadium 220,000
Total Special Revenue Fund Expenditures $7,836,343

Debt Service Fund Expenditures $70,901,618

Enterprise Funds:
Water $31,461,641
Solid Waste 17,512,100
Wastewater 12,864,775
Water Revenue Bond -
Forestry 2,077,266
Street Lighting 2,018,845
Storm Sewer 2,201,000
Vector Control 1,106,000
Southeast Cass Sewer 48,700
FargoDome 7,019,114
Airport Authority 31,770,916
Total Enterprise Fund Expenses $108,080,357

Pension Trust Funds:
City Employee Pension 3,211,000
Police Pension 4,100,500
Total Pension Trust Funds $7,311,500

Grand Total - All Funds $290,497,818

Preliminary Tax Levies Are:
General Fund 47.90
City Share of Special Improvements 1.10
Airport Construction 2.00
Total Proposed Mills to be Levied for 2018 Budget 51.00

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

Bid Award for Project No. WA1510 Continued to September 25, 2017 (Moved from the Consent Agenda):
Commissioner Piepkorn said the reason he asked to have this item moved from the Consent Agenda was due to the fact that it is over $2 million. He said the North Dakota Water Commission is paying a substantial part of that amount; however, the City of Fargo’s part is still more than $800,000.

Water Utility Director Troy Hall said the project is for the Sheyenne River Pump Station improvements, which transfers water from the Sheyenne River to the City’s treatment plant. He said there were four separate bids, one for general, one for mechanical, one for electrical and one combined. He said there was not a bid for mechanical; therefore, the lowest two combined electrical and general bids were used. He said he would like this item to be continued for two weeks so he can take another look at the bids.

Commissioner Piepkorn said he is not opposed to the project; however, his thought is the Consent Agenda is for technical items and smaller amounts and $2 million is not appropriate for the Consent Agenda.

Commissioner Gehrig moved the bid award for Project No. WA1510 be continued to September 25, 2017.

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

Change Order for BP0031 Fire Station No. 1 - Headquarters Remodel Project Approved (Moved from the Consent Agenda):
Commissioner Piepkorn said he asked that this item be moved to the Regular Agenda due to the fact that this is a new improvement in a new facility and he wanted some clarity as to what occurred.

Fire Chief Steve Dirksen said there are two issues in the change order. He said the first is there was a miscalculation by the mechanical consultant for the project and a wrong number was entered and the problem was not noticed until this past winter. He said the area where the clerical staff works and where the historic fire truck is located could not be warmed up. When the error was discovered, he said, in order to correct the problem some air handling equipment and other miscellaneous parts were added. He said the mechanical consultant is absorbing a portion of the cost; however, the City is paying for some of the materials as those would have been needed initially. The second part of the increase, he said, is that four years ago, the boiler went out and a new boiler was installed for $65,000.00. When the remodeling started, he said, it was decided to keep the new boiler; however, the way the air conditioning and heating system were designed it was discovered the original boiler was too big to run in the summer. He said the mechanical contractor advised that a smaller boiler be installed, which will result in a reduction in fuel costs and will pay for itself in three to five years.

Commissioner Gehrig moved the Change Order for an increase of $66,404.00 for BP0031 First Station No. 1 - Headquarters Remodel Project be approved.

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

Commissioner Grindberg moved that the Board adjourn to 5:00 o’clock p.m., Monday, September 25, 2017.

Second by Gehrig. All the Commissioners voted aye and the motion was declared carried.
The time at adjournment was 7:14 p.m. o’clock p.m.