I just looked at the rack and you're right....the fender will interfere there too. Oh well, its a commuter!
I adapted southpaw's method based on what was available at my LHD (local home depot)
they didn't have p-clamps/clips (I even tried calling them R-clamps/clips)...people seem to call them all sorts of things, but since I don't know what they're
actually used for aside from on bicycles nobody there could find me any. Instead I found a little doodad in the electrical department called a "Conduit Hanger". I used a #0 because that's what fit.
It looks like this
and on the bike it looks like this

seems pretty solid.