1. Call to Order. The regular meeting of the Council of the City of Rogers was called to order by Mayor Ihli on Tuesday, January 26, 2016 at 7:00 p.m. at Rogers Community Center, 21201 Memorial Drive, Rogers, MN, 55374.
Council present: Mark Eiden, Bruce Gorecki, Rick Ihli, and Darren Jakel.
Council excused: Don Hall.
Staff present: Jeff Beahen, Police Chief; Gary Buysse, Liquor Operations Manager; Sheila Cartney, City Planner; Jeff Carson, City Attorney; Brad Feist, Fire Chief; Lisa Herbert, Finance Director; Stacy Scharber, Assistant City Administrator; John Seifert, Public Works Supt.; Steve Stahmer, City Administrator; and Bret Weiss, City Engineer.
2. Open Forum
4. Approve Agenda
Mayor Ihli added item 8.01.
5. Consent Agenda
5.01 Approval of Minutes from January 12, 2016 City Council Meeting
5.02 Approval of Bills and Claims
5.03 Approval of Minnesota Lawful Gambling Exempt Permit to Conduct a Raffle for the Full Choke Ducks Unlimited on April 21, 2016 at The Wellstead (The Crown Room) Located at 20500 S. Diamond Lake Rd.
5.04 Approval of Landscape Plan for Thomas and Sons Construction
5.05 Approval of Individual Massage Therapy License Renewals (Massage Envy)
5.06 Approval of Individual Massage Therapy License Renewal and Establishment Renewal for Touch of Heaven
5.07 Approval of Conditional Use Permit for Excalibur Collision and Conversion Center for Outdoor Storage of Vehicles, Located at 14240 James Road
5.08 Approval of Resolution No. 2016-04, A Resolution Granting Site Plan Approval for Elk River School District for the Construction of a 9,750 sq.ft. Early Childhood Addition, Located at 12521 Main Street
5.09 Approval of Resolution No. 2016-05, A Resolution Approving Administrative Lot Split for Shawn and Marlon Weber
5.10 Accept Improvements and Approve Final Payment for Rogers Drive Trail Project
5.11 Approve Plans and Specifications and Authorize the Advertisement for Bids for the 2016 Brockton Lane Utility Extension Project
5.12 Approval of Updated Agreement for Animal Control Services Provided by the City of Monticello
5.13 Approval of Resolution No. 2016-06, A Resolution Extending the Final Plat Approval of French Lake Industrial Center II
Mayor Ihli pulled 5.11 for discussion; Weiss asked that it be discussed immediately preceding 7.01.
Jakel moved, Eiden seconded a motion to approve the consent agenda less 5.11. Motion carried 4-0.
6. Public Hearings
6.01 Public Hearing on the Proposed Modifications to Municipal Development District No. 1 (MDD No. 1) and Tax Increment Financing (TIF) Plans for TIF District Nos. 12, 13, 14, and 15
● Approval of Resolution No. 2016-07, A Resolution Adopting a Modification to the Development Program for Municipal Development District No. 1 and Adopting Modifications to the Tax Increment Financing Plans for Tax Increment Financing District Nos. 12, 13, 14, and 15 Therein
Finance Director Herbert read from her memo:
It has been one of the City Council’s long term plan goals to continue to look for ways to reinvigorate and enhance our Downtown. The City has undertaken a Downtown Rogers Redevelopment Master Plan to establish a vision that will help elected and appointed officials, and city staff, guide future enhancements as we continue to move forward with identified improvements through land use transitions and infrastructure investments. In the past several months the City Council has held 2 closed sessions in which a parcel of property adjacent to Downtown became available for purchase. The parcel the City Council reviewed is believed to be a piece of property that would assist with such redevelopment. The City Council has previously authorized staff to negotiate with the property owner within a set price range and allow the City Attorney to prepare a letter of intent. At the same time, the City Council is looking for financing options to make such enhancements to the Downtown. The City Council authorized Finance Director Herbert to research the use of eligible TIF funding to assist with the potential property purchase.
TIF#1 is an expired Redevelopment District established in 1985 that was decertified in 2011. This TIF District Plan was modified on December 29, 2011, to amend Appendix A, to incorporate a number of incomplete Traffic/Transportation Improvements supporting Economic Development and Other Economic Development and Redevelopment Activities including land acquisition, site improvements, utilities and streets related to specific economic development or redevelopment where the City determines that such development would not occur but for the use of the tax increment from the TIF District. The remaining tax increment in the TIF#1 Fund has been earmarked for this type of land acquisition and is an allowable use.
TIF#13 is a Renewal and Renovation District which was established in 2002 that currently has available increment which could be legally pooled for the purposes of acquiring property in the Downtown Redevelopment area by the Amendment of the TIF Plan. Pooling for this TIF District is limited to 20% outside the District. Tax increments not exceeding this 20% limitation could be used to acquire the properties currently being considered by the City Council. This District is scheduled to be decertified upon the debt service payments being defeased on 12/31/18. In order to allow consideration for the pooling from TIF#13 for the identified purposes, the Plan must be modified. A requirement of the modification is to call a Public Hearing prior to passing an amendment to the TIF Plan. Rather than identify one or two parcels that the City Council is currently interested in for Downtown redevelopment, the City has identified an area within the Downtown, that available increment in TIF#13 could be pooled to purchase if such intentions of the City Council were approved. The modification to TIF #13 (attached) is identified in Appendix A-1 with the area identified on the map shown in Appendix C-2.
Staff recommends using a combination of both District’s contribution towards potential property acquisition. At this time the negotiations and letter of intent have not been completed regarding the parcel acquisition the City Council is interested in.
Modification to the Development Program for Municipal Development District No. 1 and Tax Increment Financing District Nos. 12, 13, 14 and 15):
Municipal Development District No. 1 (MDD#1), created in 1985, was established in order to encourage development to occur and provide for employment opportunities, rehabilitation and relocation. MDD#1 is not a TIF District but a Development Program which identifies goals and objectives within a set boundary or area, to exercise the City’s authority to develop programs for improving MDD#1 with development and redevelopment. The MDD#1 states that the boundaries of MDD#1 shall be coterminous (equal to) with the corporate boundaries of the City of Rogers. The City of Rogers did not expand the boundaries of MDD#1 after the Final Annexation of Hassan Township, choosing to delay such modification until there was another purpose for a TIF Modification that would allow us to save consulting costs by completing them simultaneously. The modification to MDD#1 will incorporate the full corporate boundaries of the City since annexation of Hassan Township on 12/31/2011. The District will then be coterminous with the corporate boundaries of the City. In addition, each active TIF District is then required to be modified to reflect the amended MDD#1’s boundaries.
Herbert then provided a summation of the purposes of this evenings actions and stood for questions from the Council.
With no questions raised, Mayor Ihli opened the meeting for public comment at 7:15 p.m.
No persons addressed the Council.
Ihli moved, Jakel seconded a motion to close the public hearing at 7:16 p.m. Motion carried 4-0.
Gorecki moved, Jakel seconded a motion to adopt Resolution No. 2016-07, A Resolution Adopting a Modification to the Development Program for Municipal Development District No. 1 and Adopting Modifications to the Tax Increment Financing Plans for Tax Increment Financing District Nos. 12, 13, 14, and 15 Therein. Motion carried 4-0.
Engineer Weiss addressed the Council stating staff is requesting to add an alternate bid to the project. Weiss provided a map of the project area. The alternate bid would include a watermain crossing at Rogers Drive and Brockton Lane to serve the Dayton/Liberty project. Weiss believes the City will get better bids by combining it with the original project.
Jakel moved, Eiden seconded a motion to approve 5.11 with the addition of the bid alternate as explained by Engineer Weiss. Motion carried 4-0.
7. General Business
7.01 Authorize Preparation of Plans and Specifications and Approve a Proposal for Engineering Services for the Rogers Drive Reconstruction Project
Engineer Weiss started with a PowerPoint presentation of the 2016 pavement management projects; Rogers Drive reconstruction, 147th Ave. street improvements, and Rouillard Boulevard street improvements. Weiss also discussed Justen Circle, stating it will require subgrade improvements in addition to asphalt. Weiss stated this is a priority project for the City. Weiss explained this is the area where the utilities are being extended to serve the Lennar/Stones Throw project. Weiss stated it is not for sure that Lennar is moving forward in 2016. Weiss stated this improvement project may put us outside the $800,000 being anticipated in revenues. If the project does go forward, another method of advancing that project forward is financing it with utility fees for a year until 2017 and using future franchise fees to reimburse utilities. Weiss stated the Transportation Task Force was interested in doing multiple projects in 2016. The total of the three street improvement projects is $814,500 in franchise fees. Weiss provided a funding breakdown on bid alternates and the inclusion of Justen Circle.
Ihli stated, if Justen Circle is a bigger priority than the other ones, why can’t you move another one out and keep that one.
Weiss explained that the option for funding the asphalt portion of Justen Circle is to borrow from utility funds and pay the utility funds back if there is not sufficient funding in franchise fees.
Ihli commented on not really knowing anything until April, when the first quarter franchise fees are in. Weiss stated, possibly in February you may know what is invoiced out.
Gorecki questioned, you factored into all three of these projects that you won’t see extensive subgrade work? Weiss stated yes, except for Justen Circle.
Jakel questioned on Rogers Drive if the $540,000 includes the subgrade? Weiss stated yes.
Weiss stated that no action is necessary tonight on the list of projects being considered. Jakel appreciates getting the information early, and spoke on capturing a ripe bidding environment.
Weiss proceeded through the 2016 projects providing a map of the Rogers Drive reconstruction project area; from Minneapolis Trailer Sales to Ellingsons Car Museum. Weiss talked about the risk of the project being subgrade corrections. Weiss provided a funding breakdown on the project.
Eiden questioned if there was any indication about the condition of the subgrade. Weiss stated some soil borings have been performed. There was continued discussion on how much work is necessary to rebuild the subgrade of Rogers Drive
Gorecki asked what have the soil borings showed. Weiss stated the road is underlined with fill material; gravel and clay soils. Weiss continued to explain that the road was previously constructed as a County Road and it has held up for a number of years without experiencing complete failures.
Jakel commented on the wetland in the shoulder area of I94. Jakel also asked about where the trail connection is for that area and if a pedestrian trail should be considered with the reconstruction of the road.
Seifert stated the regional trail plan is in the south; we will see part of it come in with the Lennar project. The trail is not on the north side of I94. Seifert provided discussion on the subgrade of Rogers Drive stating no utilities have disturbed the area. Seifert stated we don’t have a funding source for subgrade correction.
Weiss proceeded with a project schedule for Rogers Drive. Weiss stated the plan with bidding these projects is to identify number of working days, and the contractor can work within their schedule. This may provide for better bids.
Gorecki moved, Jakel seconded a motion authorizing the preparation of plans and specifications, and accept the proposal for the Rogers Drive Reconstruction Project, to be prepared by WSB & Associates, Inc. at a cost not to exceed $38,600. Motion carried 4-0.
7.02 Authorize Preparation of Plans and Specifications and Approve a Proposal for Engineering Services for the Rouillard Boulevard Street Improvements Project
Weiss provided explanation of the project scope stating it is very straight forward; bituminous removed and repaved. There was a brief discussion on the bid alternate which includes the repaving of the east end of 129th Avenue.
Jakel moved, Eiden seconded a motion authorizing preparation of plans and specifications, and approve a proposal for the Rouillard Boulevard Street Improvements Project, to be prepared by WSB & Associates, Inc. at a cost not to exceed $7,800. Motion carried 4-0.
7.03 Authorize Preparation of Plans and Specifications and Approve a Proposal for Engineering Services for the 147th Avenue Street Improvements Project
Weiss provided a project location map of the 147th Avenue improvement, stating the project is 6710 feet in length; approximately James Road to Frederick Road. Weiss stated the bid alternate is to add an additional 980 feet to project extending east of Frederick Road.
Gorecki moved, Eiden seconded a motion to authorize preparation of plans and specifications and accept the proposal for the 147th Street Improvements Project, to be prepared by WSB & Associates, Inc., at a cost not to exceed $14,100. Motion carried 4-0.
8. Other Business
Mayor Ihli presented a plaque to Jeff Carson in recognition of service as the Rogers City Attorney from March 2004 to January 2016.
Attorney Carson stated it has been his privilege and honor to be here.
All Councilors individually expressed their gratitude for Attorney Carson’s service.
Administrator Stahmer also expressed his gratitude and presented Attorney Carson with an engraved baseball bat illustrating his years of service with the City.
9. Correspondence and Reports
10. Adjourn to Closed Session for Administrator’s Annual Performance Evaluation - Reconvene to Open Meeting
Mayor Ihli adjourned the meeting to closed session at 8:03 p.m.
Council reconvened to open session at 8:29 p.m.
Attorney Carson stated in the closed session City Council reviewed the performance of Administrator Stahmer and the review was a very satisfactory review.
Jakel moved, Eiden seconded a motion to adjourn at 8:30 p.m. Motion carried 4-0.
Assistant City Administrator/Clerk