1. Call to Order.  The regular meeting of the Council of the City of Rogers was called to order by Mayor Grimm on Tuesday, May 10, 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:  Stacy Doboszenski, Assistant City Administrator; Brad Feist, Fire Chief; Rose Lorsung, City Planner; John Seifert, Public Works Supt.; Steve Stahmer, City Administrator; John Thames, City Attorney; 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 April 26, 2011 City Council Meeting
5.02     Approval of Bills and Claims
5.03     Approval of a 4 Day Temporary On-Sale Liquor License for the Rogers Lions at 21201 Memorial Drive and the North Community Park for June 23rd - June 26th
5.04     2011 Vegetation Management Contracts for Wetland Mitigation Sites
5.05     Shared City Equipment Agreement with Neighboring Communities
5.06     Authorize the Preparation of a Signal Justification Report (SJR) and Subsequent Design Services for a Traffic Signal at John Deere Lane and CSAH 81 
5.07     Approval of Proclamation Declaring May 13, 2011 as Poppy Day
Stanley requested that 5.06 be removed from consent.

Ihli moved, Bell seconded a motion to approve the consent agenda less 5.06.  Motion carried 5-0.

5.06
Stanley stated the reason she pulled the item is the additional $70,000 that is not currently budgeted in the general fund for the proposed traffic signal.  Where would we get the money from?

Engineer Weiss addressed the Council and stated a previous Council decided to move forward with the John Deere Lane project and staff was authorized with the approval of the adjoining property owners.  At the time the Council did not want the signal because of the additional cost.  Since then, several property owners have expressed an interest in putting the signal in.  TIF 1 funds are the funds being used for the project.  Council made the decision at the time to wait.  Through negotiation with the property owners, they have expressed interest.  Staff and the property owners have agreed to split the cost in quarters with Wells Fargo, Benzinger, and VanHeel contributing 75% of the project cost. 
The current traffic pattern is to drive straight north on Main Street and do a U-turn at Rogers Plaza.  With the traffic signal we would have traffic go to a controlled intersection.

Stanley questioned if the lights would be too close together.  Weiss stated they are spaced according to Hennepin County.

Grimm stated he thinks it’s great that property owners are willing to contribute to the project.

Wieland stated with the TIF 1 cash flow, the TIF district expiring at the end of the year, at this time the fund does have enough to fund the remaining portion of the cost.

Stanley moved, Bunting seconded a motion to approve 5.06.  Motion carried 5-0.

6.   Public Hearings
None.

7.  General Business
7.01   2011 Equipment Certificate Bond Sale (Resolution No. 2011-13)
Finance Director Wieland introduced Dave Callister to review the results of the bond sale.  Wieland also addressed the bond rating received from Moody’s; maintaining an Aa2 rate.

Callister addressed the Council and stated the equipment certificate was split into two components; a 10 year component on the fire truck and a five year on the equipment certificate.

Callister reported the true interest cost to be 1.9873%.  Callister reviewed the projected interest rates to the rates received today.  The closing is scheduled for May 26, 2011 with funds available at that time.

Callister then addressed the rating call with Moody’s which occurred last week.  The reason to be rated with Moody’s is to reduce interest rates.  In today’s economy to maintain an Aa2 rating is excellent. Callister addressed the different factors Moody’s takes into account when determining the rating.  Callister then offered to answer any questions of the Council and asked them to consider the resolution.

Bunting stated this is basically all good news.  Good job to staff and everyone involved.

Bunting moved, Bell seconded a motion approving Resolution No 2011-13, awarding the sale of $1,035,000 General Obligation Equipment Certificates, Series 2011A.  Motion carried 5-0.

7.02   Items Relating to the 129th Avenue Reconstruction Project:
           7.02.01   Consider Funding Options for Burying the Power Lines Along 129th Ave in Conjunction with the Proposed Street Project
Engineer Weiss addressed the Council on the option of burying the power lines along 129th Avenue; a difference in burying versus moving is $500,000.  Staff looked into other options to burying the lines and discussed a program called CRFS (Community Requested Facility Surcharge); similar to a franchise fee, it is a charge that goes on a property owner’s bill that can be for no longer than a three year term.  Weiss stated if the City wants to move forward with different projects, would have to go forward with this process each time.

Staff is proposing a monthly charge less than $2.00 per residential unit which would generate approximately $200,000 in income.  The transportation trunk fee would be the other funding source for this project.  Weiss provided a chart illustrating the minimum/maximum allowed charge per residential and commercial/industrial unit per month.

Weiss provided an illustration showing the other locations where staff would propose to bury lines in the future.  An estimated cost of all areas is $1,500,000 and would take 9 years with $1.95 per month with $750,000 coming from transportation trunk fees.  The Council would have to adopt each project specifically.

Weiss stated the estimated cost of this project is $450,000 with $250,000 coming from CRFS and $200,000 coming from transportation trunk fees.

If council decides to move forward, there is a process through CRFS.  Xcel Energy tracks the project on behalf of the City.

Weiss presented the following three options to Council:
• Consider burying the power lines using the CRFS program and use of $200,000 of transportation trunk funds.
• Consider burying the power lines using a different funding mechanism.
• Do not consider burying the power lines.

Grimm discussed the safety of burying the lines.  Past Councils were always in favor of burying the lines.

Bell stated he appreciates the work that staff has put into this project, but without a funding source, he has a hard time passing the cost along to residents.  He is in favor of burying the lines but not at this cost.

Stanley asked if there are other funding sources.  Wieland stated the $200,000 is there to use, but additional funding sources are not available.  Weiss stated this is not state aid eligible.

Grimm asked if this was TIF eligible.  Wieland stated TIF needs to be used for redevelopment and this is a more residential area.

Bell would rather see the monies available for something more impactful such as the stop light at John Deere Lane.  Bell thinks we should wait until money is more available in the future.  Bell stated he understands we wouldn’t realize the joint savings of doing it while under construction.

Seifert discussed the benefits of doing the project now instead of waiting.  Seifert provided the history of burying power lines in the downtown area.  Seifert also rationalized why the areas have been selected for future projects.

Bunting stated his opinion is to focus on this project and not worry about the other areas.  On Friday he talked to seven different neighbors about this proposed project.  They all agreed to have the project done using CRFS fees.  Bunting stated he is in favor of the project at $1.95.

Stanley stated there was a mention in the writing about a hardship.  Weiss stated he is not sure how those are set, but for low income residential, the cost can be up to $1.00 per month. 

Council and staff discussed the possibility of the project being paid off sooner than three years depending on the number of new households and commercial businesses coming into the community.

Bunting moved, Stanley seconded a motion to bury power lines using the CRFS and transportation trunk funds, not to exceed $1.95 for the residential customer.  Motion carried 4-1; Bell opposed.

           7.02.02   Approval of Resolution No. 2011-14, A Resolution Related to the Proposed Assessment Program for the 129th Ave. Reconstruction Project from Arthur St. to Brookside Lane
Engineer Weiss provided an overhead illustrating the estimated project costs for 129th Avenue.  The total with landscaping is between $1,880,000 and $1,920,000 depending on the landscape package chosen; bid as alternates in the bid.

Weiss reported that nine properties are proposed to be assessed and then discussed the assessments when development occurs.  Weiss stated the proposed assessment is $5225 rate per residential property developed.

Weiss stated once bids are received, staff can talk about exactly how to allocate the dollars coming from various funding sources.

Resolution identifying that is the plan for assessments now and into the future.

Bell moved, Bunting seconded a motion to approve Resolution No. 2011-14, A Resolution related to the Future Special Assessments for the 129th Avenue (Arthur Street o Brookside Lane) Improvement Project.  Motion carried 5-0.

         7.02.03   Approval of Resolution No. 2011-15, to Order Project, Approve Plans and Specifications, Authorize Advertisement for Bids and Adopt Resolution No. 2011-16, A Resolution for “No Parking” on 129th Ave. during the Reconstruction Project from Arthur St. to Brookside Lane
Engineer Weiss recommended moving forward with the 129th Avenue project. Plans are complete and ready for bid with contractors.

As directed, a few things were changed with the final design.  Weiss went through the specifics of the final design with Council.

Bunting moved, Bell seconded a motion to approve Resolution No. 2011-15, to Order Project, Approve Plans and Specifications, Authorize Advertisement for Bids.  Motion carried 5-0

Bunting moved, Ihli seconded a motion to adopt Resolution No. 2011-16, A Resolution for “No Parking” on 129th Ave. during the Reconstruction Project from Arthur St. to Brookside Lane.  Motion carried 5-0.

Bunting moved, Bell seconded a motion approving plans and specifications and the authorization to advertise for bids.  Motion carried 5-0.

7.03   Approval of Resolution No. 2011-17, A Resolution Authorizing the Adoption of the Liberty Industrial Park at Diamond Lake (Formerly Hassan Business Park) Alternative Urban Areawide Review (AUAR) Update
Engineer Weiss introduced Andi Moffat of WSB who prepared the AUAR.  Ms. Moffat provided the background of the property and a previous AUAR that was conducted in 2001.  The project at that time did not move forward and the property was located in Hassan Township.  Since then the property has been annexed and the AUAR needed to be updated.

At this time the Council took a 10 minute recess to take cover as the tornado sirens sounded.

Ms. Moffat continued with her presentation of the AUAR for Liberty Industrial Park and recommended the Council approve the proposed AUAR.   Moffat stated comments were received and general concerns were expressed from other governing agencies.

Bell moved, Bunting seconded to approve the AUAR Resolution No. 2011-17, A Resolution Authorizing the Adoption of the Liberty Industrial Park at Diamond Lake (Formerly Hassan Business Park) Alternative Urban Areawide Review (AUAR) Update.  Motion carried 5-0.

7.04   Approval of Consider the Following Requests from Liberty Property Trust:
          • Adopt Ordinance No. 2011-03, Rezoning by Ordinance of 55.25 acres from agricultural to L-I, Limited Industrial
          • Approval of Resolution No. 2011-18, Preliminary Plat Approval of Liberty Industrial Park at Diamond Lake
          • Approval of Resolution No. 2011-19, Approval of a PUD Master Plan to Facilitate the Phase Construction of 3 Warehouse Buildings
Planner Lorsung addressed the Council regarding the requests from Liberty Property Trust.  Lorsung stated the Planning Commission reviewed the requested items in April and recommend approval with staff review and conditions as placed on by the Planning Commission.

Representatives from Liberty Property Trust were present to give a presentation to Council.

Rick Weiblen with Liberty Property Trust addressed the Council and introduced other members of Liberty Property Trust who were present.  Mr. Weiblen took the opportunity to thank the City staff and City consultants for their hard work to get the project ready.

Ed Farr, with Edward Farr Architects provided a presentation on the proposed project.  Farr discussed property layout, ponding, and parking on the site.  A video of the project was also presented to Council.

Bell and Council commented that the buildings and the layout look great.

Council thanked the representatives from Liberty for their presentation.

Bunting moved, Ihli seconded a motion to adopt Ordinance No. 2011-03, Rezoning by Ordinance of 55.25 acres from agricultural to L-I, Limited Industrial.  Motion carried 5-0.

Bell moved, Bunting seconded a motion approving Resolution No. 2011-18, Preliminary Plat Approval of Liberty Industrial Park at Diamond Lake.  Motion carried 5-0.

Bunting moved, Ihli seconded a motion approving Resolution No. 2011-19, Approval of a PUD Master Plan to Facilitate the Phase Construction of 3 Warehouse Buildings.  Motion carried 5-0.

8.   Other Business
None.

9.   Correspondence and Reports
 9.01 April Police Report
 9.02 Amkus Equipment (Jaws of Life) for New Engine
 9.03 (2) MDC Computers for Fire Vehicles
 9.04 Rogers Park Board Meeting Minutes April 7, 2011
 9.05 March, 2011 Financial Reports

10. ADJOURN
Bunting moved, Bell seconded a motion to adjourn at 8:23 p.m.

Respectfully submitted,
Stacy Doboszenski
Assistant City Administrator/Clerk