CITY OF APPLE VALLEY
Dakota County, Minnesota
December 13, 2001

Minutes of the regular meeting of the City Council of Apple Valley, Dakota County, Minnesota, held December 13th, 2001, at 8:00 o’clock p.m., at Apple Valley Municipal Center.

PRESENT:       Mayor Hamann-Roland; Councilmembers Erickson, Goodwin, Grendahl, and Sterling.

ABSENT:            None.

City staff members present were:  City Administrator Lawell, City Clerk Mueller, City Attorney Dougherty, City Engineer Gordon, Police Captain Anglin, Finance Director Ballenger, Assistant to the City Administrator Grawe, Public Works Director Heuer, Parks and Recreation Director Johnson, Natural Resources Coordinator Kehrer, Community Development Director Kelley, City Planner Lovelace, Human Resources Manager Strauss, and Fire Chief Wassmund.

Mayor Hamann-Roland called the meeting to order at 8:00 p.m.  Everyone took part in the pledge of allegiance to the flag led by Carey Wexler of Scout Troop 205.

APPROVAL OF AGENDA

MOTION:       of Erickson, seconded by Sterling, approving the agenda for tonight’s meeting as amended.  Ayes - 5 - Nays - 0.

AUDIENCE

Mayor Hamann-Roland asked if anyone was present to address the Council, at this time, on any item not on this meeting’s agenda.  There was no one present to speak.

CONSENT AGENDA

MOTION:       of Sterling, seconded by Goodwin, approving all items on the consent agenda with no exceptions.  Ayes - 5 - Nays - 0.

CONSENT AGENDA ITEMS

MOTION:       of Sterling, seconded by Goodwin, approving the minutes of the regular meeting of November 20th, 2001, as written.  Ayes - 5 - Nays - 0.

MOTION:       of Sterling, seconded by Goodwin, adopting Resolution No. 2001-216 accepting, with thanks, the donation of $2000.00, from Apple Valley American Legion Post 1776 for use toward the Senior Citizens Holiday Party.  Ayes - 5 - Nays - 0.

MOTION:       of Sterling, seconded by Goodwin, adopting Resolutions No. 2001-217, 2001-218, and 2001-219 approving issuance of Lawful Gambling Exempt Permits, by the Minnesota Gambling Control Division, to Apple Valley American Legion Auxiliary, Unit 1776, for events on January 12, March 9, and April 13, 2002; and waiving any waiting period for State approval.  Ayes - 5 - Nays - 0.

MOTION:       of Sterling, seconded by Goodwin, approving issuance of 2001 Off-Sale 3.2 Percent Malt Liquor Licenses for Supervalu, Inc., d/b/a Cub Foods, and Kwik Trip #406 and renewal for the year 2002 of all current Off-Sale licenses as listed in the City Clerk’s memo dated December 10, 2001.  Ayes - 5 - Nays - 0.

MOTION:       of Sterling, seconded by Goodwin, approving extension of the Centrex Telephone Service Agreement with Frontier Communications, through October 15, 2006, as attached to the City Clerk’s memo dated December 10, 2001; and authorizing the Mayor and City Clerk to sign the same.  Ayes - 5 - Nays - 0.

MOTION:       of Sterling, seconded by Goodwin, approving an Automated Pawn System (APS) Service and Software License Agreement with the City of Minneapolis as attached to the Police Captain’s memo dated November 30, 2001, and authorizing the Mayor and City Clerk to sign the same.  Ayes - 5 - Nays - 0.

MOTION:       of Sterling, seconded by Goodwin, extending approval of the preliminary plat for Galles Addition to expire on December 31, 2002, as recommended in the Community Development Director’s memo dated December 6, 2001.  Ayes - 5 - Nays - 0.

MOTION:       of Sterling, seconded by Goodwin, adopting Resolution No. 2001-220 approving the final plat of Valley Business Park 2nd Addition, waiving the requirement for a subdivision agreement, and authorizing the Mayor and City Clerk to sign the same.  Ayes - 5 - Nays - 0.

MOTION:       of Sterling, seconded by Goodwin, approving the Second Amendment to Restoration and Subdivision Agreement for Cobblestone Lake storm water pond EVR-P44 acquisition, as attached to the Community Development Director’s memo dated December 10, 2001, and authorizing the Mayor and City Clerk to sign the same.  Ayes - 5 - Nays - 0.

MOTION:       of Sterling, seconded by Goodwin, adopting Resolution No. 2001-221 granting a temporary waiver of platting to allow transfer of property, revising the pond shape, on a metes and bounds description basis in Cobblestone Lake from Nordic Square Limited Partnership to Cobblestone Lake Development, LLC.  Ayes - 5 - Nays - 0.

MOTION:       of Sterling, seconded by Goodwin, adopting Resolution No. 2001-222 granting a temporary waiver of platting to allow transfer of property, revising the Stage One pond area, on a metes and bounds description basis in Cobblestone Lake from Cobblestone Lake Development, LLC, to the City.  Ayes - 5 - Nays - 0.

MOTION:       of Sterling, seconded by Goodwin, adopting Resolution No. 2001-223 granting a temporary waiver of platting to allow transfer of property, no longer needed for the revised pond shape, on a metes and bounds description basis in Cobblestone Lake from the City of Apple Valley to Cobblestone Lake Development, LLC.  Ayes - 5 - Nays - 0.

MOTION:       of Sterling, seconded by Goodwin, approving reduction of subdivision financial guarantees for:  East Valley Animal Clinic NRMP, from $2,425.00 to 0; and Evermoor Apple Valley, from $245,000.00 to $150,000.00.  Ayes - 5 - Nays - 0.

MOTION:       of Sterling, seconded by Goodwin, adopting Resolution No. 2001-224 receiving the preliminary engineering report for Project 01-156, Majestic Ridge Utility and Street Improvements, and setting a public hearing on it, at 8:00 p.m., on January 10, 2002.  Ayes - 5 - Nays - 0.

MOTION:       of Sterling, seconded by Goodwin, adopting Resolution No. 2001-225 directing the City Engineer to prepare plans and specifications for Project 01-156, Majestic Ridge Utility and Street Improvements.  Ayes - 5 - Nays - 0.

MOTION:       of Sterling, seconded by Goodwin, approving Change Order No. 1 to the contract with Collins Electrical Construction Company for Project 00-146, 140th Street Traffic Signals at Garden View Drive, Hayes Road, and Pennock Avenue, in the amount of an additional $2,750.00.  Ayes - 5 - Nays - 0.

MOTION:       of Sterling, seconded by Goodwin, approving Change Order No. 32 to the contract with Shaw Lundquist, Inc., for the Municipal Center Construction Project in the amount of an additional $12,188.00.  Ayes - 5 - Nays - 0.

MOTION:       of Sterling, seconded by Goodwin, accepting Project 00-137, Lebanon Cemetery Fence, as final and authorizing final payment on the contract with FENC Co., Inc., in the amount of $16,019.37.  Ayes - 5 - Nays - 0.

MOTION:       of Sterling, seconded by Goodwin, accepting Project 01-157, Orchard Pointe 153rd Street Pathway Lighting, as final and authorizing final payment on the contract with Ridgedale Electric, Inc., in the amount of $36,329.50.  Ayes - 5 - Nays - 0.

MOTION:       of Sterling, seconded by Goodwin, approving a Certificate of Substantial Completion for the mechanical portions of the Municipal Center construction project, as attached to the Assistant to the City Administrator’s memo dated December 13, 2001, and authorizing the Mayor and City Clerk to sign the same.  Ayes - 5 - Nays - 0.

MOTION:       of Sterling, seconded by Goodwin, adopting Resolution No. 2001-226 designating the Code Enforcement Officer with authority to issue citations to enforce certain portions of City Code Chapters 5, 6, 10, 11, 12, 18, 19, 20, and 21 and Appendices A and B as provided by City Code Section 1-12.  Ayes - 5 - Nays - 0.

MOTION:       of Sterling, seconded by Goodwin, approving hiring Jeffrey Kehrer for the position of Natural Resources Coordinator as listed in the Personnel Report dated December 13, 2001.

MOTION:       of Sterling, seconded by Goodwin, approving hiring the seasonal employees as listed in the Personnel Report and Addendum dated December 13, 2001.  Ayes - 5 - Nays - 0.

END OF CONSENT AGENDA

PROJECT 01-141, HILLCREST ACRES IMPROVEMENTS

Mayor Hamann-Roland called the public hearing to order, at 8:02 p.m., to consider Project 01-141, Hillcrest Acres Utility and Street Improvements, and noted receipt of the affidavit of publication of the hearing notice.  Mr. Gordon reviewed the preliminary engineering report dated October 24, 2001, describing project that includes Home Depot on one lot.  The utilities and streets will be installed by the developer privately and only the utility trunk charges will be assessed to the property.  The Mayor asked for questions or comments from the Council and the audience.  There were none and the hearing was declared closed at 8:06 p.m.

MOTION:       of Erickson, seconded by Sterling, adopting Resolution No. 2001-227 ordering installation of Project 01-141, Hillcrest Acres Utility and Street Improvements.  Ayes - 5 - Nays - 0.

2002 LIQUOR, WINE & BEER LICENSE RENEWALS

Mayor Hamann-Roland called the public hearing to order at 8:07 p.m. to consider renewal applications for on-sale liquor, wine and beer licenses for the year 2002 and noted receipt of the affidavit of publication of the hearing notice.  The City Clerk noted a list of the applications is attached to her memo dated December 10, 2001.  Necessary checks of police and tax records have been conducted and indicate nothing which would preclude renewing the licenses.  The Mayor asked for questions or comments from the Council and the audience.  There were none and the hearing was declared closed at 8:08 p.m.

MOTION:       of Sterling, seconded by Grendahl, approving renewal, for 2002, of on-sale liquor and wine licenses by adopting Resolutions No. 2001-228 for Apple American Limited Partnership of Minnesota, d/b/a Applebee’s Neighborhood Grill & Bar; No. 2001-229 for Rich Mgt., Inc., d/b/a Apple Place; No. 2001-230 for Blazin Wings, Inc., d/b/a Buffalo Wild Wings Grill & Bar; No. 2001-231 for H.O.C., Inc., d/b/a Rascals; No. 2001-232 for Lancer Food Service, Inc.; No. 2001-233 for LRB Restaurant Company, d/b/a Grizzly’s Grill N’ Saloon; No. 2001-234 for Minnesota Robins, Inc., d/b/a Red Robin of Apple Valley; No. 2001-235 for Wadsworth Old Chicago, Inc., d/b/a Old Chicago; No. 2001-236 for Apple Valley American Legion Post 1776; No. 2001-237 for Grand Central Station, Inc., d/b/a Broadway Station Apple Valley; No. 2001-238 for Chipotle Mexican Grill of Colorado, LLC, d/b/a Chipotle Mexican Grill; No. 2001-239 for D & D of Minnesota, Inc., d/b/a Famous Dave’s BBQ Shack; and No. 2001-240 for JI, Inc., d/b/a Jade Island Chinese Cuisine; and approving renewal of on-sale beer licenses as listed in the City Clerk’s memo dated December 10, 2001.  Ayes - 5 - Nays - 0.

PROPERTY TAX LEVY & 2002 CITY BUDGET

Mr. Ballenger reviewed the process and meetings held to consider setting the property tax levy and 2002 City budget including a public hearing on October 25, 2001.  Legislative changes in the property tax system allow the City to set a levy of $16,262,775.  The levy proposed is $15,640,104 or $622,671 less than allowed.  The budget is proposed with revenue of $35,543,014 and expenses of $37,549,248.

The Council discussed the impact of the proposed tax levy on various valued homes in the city and noted the statements of proposed taxes mailed by the County did not contain an amount for the School District levy referendum.  Councilmember Grendahl said, for example, a home valued at $150,000 will see a tax reduction of about $80 instead of $200 to $300 previously cited.  She said the School District is being challenged about presenting misleading information in the levy referendum process and wants to be sure the City has no liability in the matter.

Councilmember Grendahl said she believes cuts could be made in the budget and disagrees with excess funds being held over.  Last year her property tax increased 18 percent and this year the City tax is going up nine percent.  Councilmember Goodwin said he is concerned about potential state aid cuts next year, possibly up to $800,000, and is not willing to reduce revenue now.

Councilmember Sterling asked whether the approximately $1,000,000 clear well upgrade could be paid from reserves and how equipment certificate items are being funded?  Mr. Ballenger said the clear well upgrade is included in the water and sewer fund and would not use property tax revenue.  Instead of issuing equipment certificates in 2002, $295,000 from cash reserve is proposed to be used for the items.

MOTION:       of Erickson, seconded by Goodwin, adopting Resolution No. 2001-241 approving setting the City tax levy collectible in 2002 at $15,640,104; 2002 budgets with total revenue of $35,543,014 and expenditures of $37,549,248; and transfer from cash reserve for a capital building fund of $2,100,000 and equipment certificate fund of $295,000.

Councilmember Goodwin commented on property tax system changes making it difficult to compare tax rates with previous years.  The result is that most homeowners will see a bottom line reduction even with the passed school levy.  Mayor Hamann-Roland said she believes the City has been conservative with its finances and maintained its bond rating.  She suggested work be done to see whether the bond rating could even be improved next year.

Councilmember Grendahl said she disagrees with the proposed budgets and believes cuts could be made.  She reviewed comparisons of liquor revenue with other cities operations and asked Staff look at what can be done to make the liquor stores more profitable.  She expressed concern about employee health insurance costs and asked Staff to look at managing those costs in the next year.

MOTION:       of Grendahl, seconded by Sterling, amending the foregoing motion reducing the City tax levy by $874,015, or setting it at $14.766,089, and using surplus funds for the budget items.

Councilmember Erickson said reserves in the budget include funding for capital improvement items.  The funds have been accrued over time for a purpose and are not surpluses.  Reserves were used to build City Hall and there a number of capital expenditures on the horizon that will need to be funded.  The Council reviewed the list of future capital projects, totaling approximately $22,000,000, of which $10,200,000 impact the general fund.  Mr. Lawell noted there are also $3,900,000 of internal fund transfers that are to be addressed in the reserves.

Councilmember Goodwin said he is concerned about losing $400,000 to $800,000 in state aid next year and will not support reducing the tax levy now.

                        Vote was taken on the amendment.  Ayes - 1 (Grendahl) - Nays - 4.

                        Vote was taken on the original motion.  Ayes - 4 - Nays - 1 (Grendahl).

MOTION:       of Goodwin, seconded by Erickson, adopting Resolution No. 2001-242 amending water and sewer utility rates effective January 1, 2002, increasing water consumption charges by three percent and sanitary sewer charges by two percent.  Ayes - 5 - Nays - 0.

Mr. Lovelace reviewed his memo dated December 10, 2001, describing a proposal to prepare a small area plan for a 65-acre portion of undeveloped land in the Galaxie Avenue/153rd Street area.  The City has received a $16,000 matching grant from the Metropolitan Council to assist with the project.  He reviewed the project goals, tasks, and final product of overall layout, building design and development characteristics.  A planning consultant will be retained to prepare the plan and work with an oversight committee.  The seven-member committee would have representatives from the City Council, Planning Commission, Economic Growth Partnership, Chamber of Commerce, directly affected property owners, and The Hartford Group who has an option on property in the area.

MOTION:       of Goodwin, seconded by Erickson, directing Staff to search for a planning consultant to be retained to prepare a small area plan for undeveloped property in the area of Galaxie Avenue and 153rd Street as described in the City Planner’s memo dated December 10, 2001.  Ayes - 5 - Nays - 0.

MOTION:       of Sterling, seconded by Goodwin, establishing an oversight committee for the Galaxie Avenue/153rd Street small area plan as described in the City Planner’s memo dated December 10, 2001, and appointing Mayor Hamann-Roland as City Council representative on the committee.  Ayes - 5 - Nays - 0.

Mr. Dougherty gave the second reading of an ordinance amending City Code Sections A1-3 and A1-58 regarding fences and establishing performance or maintenance standards for them, as attached to the memo dated November 7, 2001.  It provides for repair and maintenance of fences and limits the use of temporary fencing material to specific construction or land disturbing activities.  It will be included as part of the increased property maintenance regulation enforcement activities in the City.  The first reading was given November 20, 2001.

MOTION:       of Erickson, seconded by Sterling, passing Ordinance No. 704 amending City Code Sections A1-3 and A1-58 by clarifying allowable fencing materials in the City and establishing standards for fence maintenance; also providing that temporary fencing is not permitted for more than 30 days in a 12-month period except in connection with a development, construction, or land disturbing activity project.  Ayes - 5 - Nays - 0.

2002 CITY COUNCIL MEETING SCHEDULE

MOTION:       of Erickson, seconded by Grendahl, setting the 2002 City Council meeting schedule, in accordance with adopted policy, with regular meetings at 8:00 p.m. on the second and fourth Thursdays of each month and informal meetings at 6:30 p.m. on the second Thursday of each month as listed in the City Clerk’s memo dated December 10, 2001.

MOTION:       of Sterling, seconded by Goodwin, amending the foregoing motion by canceling the meeting of March 28, 2002.

The Council discussed meetings where some members will be absent noting Councilmember Sterling will be gone January 24th and Councilmember Goodwin will be gone March 14th.

                        Vote was taken on the amendment.  Ayes - 4 - Nays - 1 (Erickson).

                        Vote was taken on the motion as amended.  Ayes - 5 - Nays - 0.

COMMUNICATIONS & CALENDAR

The Council received a memo dated December 10, 2001, with a calendar listing upcoming events.  Mayor Hamann-Roland congratulated Rascal’s Bar & Grill for receiving the Apple Valley Chamber of Commerce’s Small Business of the Year Award.

CLAIMS AND BILLS

MOTION:       of Erickson, seconded by Goodwin, to pay the claims and bills, check registers dated November 29, 2001, in the amount of $19,732,829.89; December 5, 2001, in the amount of $1,867,800.69; and December 12, 2001, in the amount of $550,491.53.  Ayes - 5 - Nays - 0.

CLOSE MEETING AFSCME LABOR NEGOTIATIONS

Mr. Dougherty asked the City Council convene in a closed session, under the provisions of M.S. 471.705, Subd. 1a, to discuss AFSCME maintenance workers labor negotiation issues.

MOTION:       of Grendahl, seconded by Goodwin, to close the regular meeting and convene in closed session to discuss AFSCME labor negotiations.  Ayes - 5 - Nays - 0.

The meeting was closed at 10:43 p.m. and the Council convened in the Regent Conference Room, at 10:50 p.m., along with City Attorney Dougherty, City Administrator Lawell, City Clerk Mueller, Labor Consultant Madden, Public Works Director Heuer, Parks and Recreation Director Johnson, and Human Resources Manager Strauss.  The meeting was tape recorded and Mr. Dougherty advised the Council that its discussion must be limited to matters for which the meeting was closed.  The Council reconvened in open session at 11:12 p.m.

MOTION:            of Grendahl, seconded by Goodwin, to adjourn.  Ayes - 5 - Nays - 0.

The meeting was adjourned at 11:13 o’clock p.m.