1.  Call to Order.  The regular meeting of the Council of the City of Rogers was called to order by Mayor Grimm on Tuesday, March 8, 2011 at 7:00 p.m. at Rogers Community Center, 21201 Memorial Drive, Rogers, MN, 55374.

Council present:  Rob Bell, Jay Bunting, Jason Grimm, Rick Ihli, and Maureen Stanley.

Staff present:  Jeff Carson, City Attorney; Stacy Doboszenski, Assistant City Administrator; Brad Feist, Fire Chief; John Seifert, Public Works Supt.; Steve Stahmer, City Administrator; Bret Weiss, City Engineer; and Lisa Wieland, Finance Director.

2.  Open Forum. 
None.

3.  Presentations. 
None.

4.  Approve agenda.
No items were added to the agenda.  Agenda was set as submitted.

5.  Consent Agenda.
5.01  Approval of Minutes from March 22, 2011 City Council Meeting
5.02  Approval of Bills and Claims
5.03  Approval to Award Bid for Fire Dept. Dayroom Cabinets to Paul’s Custom Cabinets
5.04  Crack Seal Campaign
5.05  National Public Works Week May 15 – 21, 2011 Itinerary
5.06  Approval of Resolution No. 2011-08, A Resolution Providing Municipal Approval to the Issuance of A Minnesota Lawful Gambling License to the Rogers Youth Hockey Association to Conduct Pull-Tab Sales at Maynard’s Restaurant
5.07  Approval of Temporary One-Day On-Sale Liquor License to the Rogers Lions Club for a Mexican Dinner on Saturday, May 7, 2011 at 21201 Memorial Drive, Rogers, MN
5.08  Approval of Resolution No. 2011-09, A Resolution providing for the sale of $1,035,000 General Obligation Equipment Certificates 2011 Equipment Certificate
5.09  Approval of Resolution No. 2011-10, A Resolution Authorizing an Interfund Loan for Advance of Certain Costs in Connection with Tax Increment Financing District No. 13
Bunting moved, Bell seconded a motion to approve the consent agenda.  Motion carried 5-0.

6.  Public Hearings
None.

7.  General Business
7.01  T Mobile Tower Lease
Public Works Supt. Seifert explained the merger of TMobile and AT & T stating they would have a duplication of towers within the City.  The tower and lease being discussed tonight is the tower located at the public works facility.  Without a guarantee on the current lease contract, staff has received an option for guaranteed rent from TMobile on the City’s site.  TMobile was seeking indication from staff by April 1st that there was interest on the City’s part for a rent guaranteed lease for a period of 10 years with the understanding the City Attorney and TMobile would concur to the final terms.  The City Attorney has identified some issues with the schedule language that staff feels they can be worked out with TMobile.  Seifert provided explanation on the 10 year rent guarantee.

Bunting stated with technology issues we continue to see revenues dropping with technology that is maturing.  Bunting thinks staff has done exactly the right thing.  In locking in revenue, we are usually taking something less than we could maybe get, however we are getting a guaranteed revenue stream.

Grimm agrees with having the guaranteed lease payments.

Bunting moved, Stanley seconded a motion to authorize execution of the first amendment of site lease agreement for T Mobile by the Mayor and City Clerk conditioned on the City Attorney’s final review.  Motion carried 5-0.

7.02  TH101/CSAH 144 Cooperative Resolution with Otsego and Elk River
Administrator Stahmer opened discussion on the cooperative resolution proposed with the cities of Otsego and Elk River.

Seifert provided background information on the TH 101/CSAH 144 project and the funding that is already secured and the additional funding being applied for.  Seifert stated the STP grant is a competitive grant and it would be in the best interest of the City to show the project is being supported by other communities.

Grimm thinks it is a great idea to get cooperation from the other communities.  Bunting agrees calling it regional in scope.

Bell moved, Bunting seconded a motion to authorize staff to discuss with the cities of Otsego and Elk River, the concept of a resolution substantially similar to the one included in the memo.  Motion carried 5-0.

7.03  2010 Year End Closing Activity
Finance Director Wieland stated the information in the memo is primarily routine in nature.  All entries would be retroactive to 12/31/2010.  Three transfers proposed to close out the following funds – Wieland provided an explanation of all funds (from memo submitted to Council):
Fund 441 Rogers Activity Center (RAC) Capital Project Funds      transfer balance to Fund 205. Final contract issue resolved during 2010

Fund 359 2002 G.O. TIF Refunding Bonds            no balance. Debt was paid in full during 2010.

Fund 442 Reimer Addition (Mystic Ridge)            transfer balance to Fund 426

Fund 455 TIF#9 Department 56  no balance      
2010 Transfers (from memo submitted to Council):
Transfer $2,145.10 from Rogers Activity Center (RAC) Capital Project Fund 441 to Rogers Activity Center Special Revenue Fund 205 to close the fund.

Transfer $103,361.06 from 2008B G.O. Improvement Refunding Bonds Fund 328/Letter of Credit restricted cash account to Heritage Development (Edgewater) Capital Project Fund 420 to close the bit overlay and mailbox construction projects.  Council previously approved projects and funding source on 10/13/09, transfer authorizes final amount to close capital project.

Transfer $47,483.46 from Reimer Addition (Mystic Ridge) Capital Project Fund 442 to 129th Avenue Wetland Fund to reclassify cash received on 12/31/09 for the overall project towards the 129th Wetland Outlet upon completion of the 2010 mailbox project per developer agreement.
Carry-overs from 2010 were discussed (from memo submitted to Council):
Account Number 100-430-3121-44050 Paved Streets/Street Repairs and Maintenance budget was increased during the 2011 budget process to allow for $67,000 for street repairs and maintenance not completed during 2010.  This budget carryover was previously approved on December 14, 2010.  Seal coating projects have been delayed to 2011 due to intentional accumulation of funds to repair a larger project area, allowing for a more competitive bid pricing.  Staff is respectfully requesting that the additional unspent funds of $23,500 be carried over to 100-430-3121-44050 for 2011.  The 2011 budget would be amended from $150,000 to $173,500.

Account Number 100-430-3122-42240 Unpaved Streets/Street Maintenance Supplies budget of $12,000 for 2011 remains unspent.  Staff is respectfully requesting that the monies be carried over to 100-430-3122-42240 for 2011.  The 2011 budget would be amended from $15,000 to $27,000.

Account Number 100-420-2210-42180 Fire Fighting and Administration/Clothing 2010 budget of $9,500 shows an unexpended budget of $4,677 at year end.  The budget included an order for 3 turnout gear sets from Fire Equipment Specialties, Inc. for $4,801.95 during 2010.  The order was not received/invoiced until February 17, 2011.  Staff is respectfully requesting that $4,675.00 be carried over to 100-420-2210-42180 for 2011 with the balance of $126.95 on invoice #6911, paid ck#52549, 2/22/11, being expended from 2011 budgeted funds. 
Interfund loans (from memo submitted to Council):
The City currently has three ongoing interfund loans approved within our annual budgets.  They are the Rogers Activity Center (RAC) Operational Fund Loan, the Rogers Activity Center (RAC) Capital Project Loan and the Public Works Building Debt Loan (in lieu of levying for annual lease payments until 2012 per the current FMP). 

After review of 2010 year end activity the RAC Operational Fund will not require an interfund loan as budgeted for 2010.  After debt and all invoices were paid for 2010, there is a negative cash balance of $60,529.01.  This is due to $75,000 set up in Due From Other Governments receivables.  This includes the $50,000 grant from the MN Amateur Sports Commission in which funds were expended in 2010 but grant cash receipt not received until early 2011 and two other ISD #728 receivables.  I will continue to monitor this fund annually for the need of a potential interfund loan, but am cautiously optimistic that with the operational efficiency maintained by the existing facility manager, we may not require an interfund loan or additional levied funds to balance the operational budget in the future.  Since the RAC began the Arena Commission and Manager Bauer have been able to secure additional revenues and reduced expenditures within operations so that no operating interfund loan has been required to date, even though budgeted for, nor have we needed to raise the $300,000 levy higher. 

After review of our existing RAC Capital Project Interfund Loan from the RSAC Fund, the current loan balance at 12/31/10 is $1,933,361.02. Additional cash donations and the $1.00 per ticket sale price revenue increased anticipated revenues by $6,708.45.  The 2009 City Council action allowing for a 0% interest interfund capital loan continues to allow every donation made by the Rogers Youth Hockey Association, Rogers Royals Booster Club, and other private donations to be applied to “brick and mortar” costs for the project.  It also shortens the original interfund loan term to approximately 13 years rather than the original 20 years anticipated. The existing $300,000 annual levy will cover the interfund loan annual principal payments of $195,175.55 without increasing it.  The interfund loan is currently estimated to be repaid in full by 2020.  The current principal due on the 2006A Gross Revenue Bonds for the RAC is $3,245,000 expiring in 2029.

The Public Works Facility Debt is continuing to be paid thru interfund loans from the RSAC Fund.  The repayment has been built into the Financial Management Plan with repayment terms to be determined by the City Council at the time of full annexation and TIF#1expiration.  At this time a 10 year term with 3.00% interest has been used and is anticipated to be adjusted as we reach 2012.  At 12/31/10 the interfund loan principal is $760,000.00.

Bunting moved, Stanley seconded a motion authorizing the 2010 transfers, budget carryovers and closing of funds as identified in the memo above as of 12/31/2010.  Motion carried 5-0.

8.  Other Business
Arthur Street discussion with Engineer Weiss.
Engineer Weiss address the Council regarding the drainage issue in the area of 129th Avenue and Arthur Street.  Council is aware of the ponding situation in need of a permanent outlet for the drainage.

Weiss stated it is staff’s recommendation to utilize monies out of trunk funds to facilitate the construction.  Weiss commented on staff’s recommended solution to permanently fix the flooding issue stating he hopes the project will be completed in 2011.  More information regarding the proposed project will be coming before the Council. 

 9.  Correspondence and Reports
9.01  March Police Report
9.02  Update on Transportation Task Force
9.03  Purchase of Air Compressor
9.04  Purchase of Pick Up Truck
9.05  City of Rogers Park Board Minutes February 3, 2011
9.06  TH101 Flyover Sign Adjustment Application
9.07  February, 2011 Financial Reports

10.  ADJOURN TO CLOSED SESSION FOR DISCUSSION OF INTERNAL AFFAIRS DATA RELATING TO ALLEGATIONS OF LAW ENFORCEMENT PERSONNEL MISCONDUCT PURSUANT TO MINN. STAT. § 13D.05, SUBD. 2(A)(2)
Grimm stated the Council will be adjourning into closed session at 7:23 p.m.

11.  RECONVENE TO OPEN SESSION
Mayor Grimm reconvened the open session at 8:43 p.m.

Attorney Carson stated in closed session the Council considered the facts of an internal affairs investigation relating to allegations of law enforcement personnel misconduct.  There is no motion recommended for that subject.

12.  ADJOURN
Bell moved, Bunting seconded a motion to adjourn at 8:44 p.m.

Respectfully submitted,
Stacy Doboszenski
Assistant City Administrator/Clerk