Minutes of the regular meeting of the City Council of Apple Valley, Dakota County, Minnesota, held January 9th, 2003, at 8:00 o'clock p.m., at Apple Valley Municipal Center.

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

ABSENT: None.

City staff members present were: City Administrator Lawell, City Clerk Mueller, City Attorney Dougherty, City Engineer Gordon, Building Official Aden, Finance Director Ballenger, Assistant Planner Bodmer, Assistant to the Administrator Grawe, Public Works Director Heuer, Parks and Recreation Director Johnson, Police Chief Johnson, Community Development Director Kelley, Police Captain Lohse, 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.

The City Clerk administered oaths of office to Mayor Hamann-Roland and Councilmembers Bergman and Erickson who were elected November 5, 2002, for four-year terms expiring December 31, 2006.

APPROVAL OF AGENDA

MOTION: of Erickson, seconded by Grendahl, approving the agenda for tonight's meeting as amended and postponing action on appointment of members to fill vacancies on the Planning Commission and Parks and Recreation Advisory Committee until February 13, 2003. 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 was present to speak.

CONSENT AGENDA

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

CONSENT AGENDA ITEMS

MOTION: of Goodwin, seconded by Bergman, approving the minutes of the regular meeting of December 20th, 2003, as written. Ayes - 4 - Nays - 0 (Bergman Abstained).

MOTION: of Goodwin, seconded by Bergman, adopting Resolution No. 2003-1 accepting, with thanks, the donation of a 1982 Mercury Cougar automobile from Ruth Masurka, 5690 - 139th Street Court, Apple Valley, to the Fire Department for use in training. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, adopting Resolution No. 2003-2 accepting, with thanks, the donation of a 1987 GMC van from Thomas Spear, 12978 Findlay Way, Apple Valley, to the Fire Department for use in training. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, adopting Resolution No. 2003-3 accepting, with thanks, the donation of $50.00 from Grant Hughes, 8147 Bayview, Cook, Minnesota, for use by the Police Department in the DARE Program. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, adopting Resolutions No. 2003-4, 2003-5, 2003-6, 2003-7, and 2003-8 approving issuance of lawful gambling exempt permits, by the State Gambling Control Board, to Apple Valley Sons of American Legion, Squadron 1776, for use on February 8, April 12, July 4, October 11, and November 11, 2003; respectively, and waiving any waiting period for State approval. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, adopting Resolution No. 2003-9 designating Apple Valley Thisweek as the official newspaper of the City for the year 2003. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, adopting Resolution No. 2003-10 designating Anchor Bank of Apple Valley as the official depository for City funds for the year 2003 and accepting its deposit collateral. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, adopting Resolution No. 2003-11 designating as additional depositories for City funds for the year 2003: US Bancorp of Minneapolis; Hampton Bank; Wells Fargo Bank; Northland Securities, Inc.; Dain Bosworth; Edward D. Jones & Co.; The Trading Desk, Inc.; Midway National Bank of Apple Valley; Anchor Bank; Robert W. Baird & Co.; Finacorp Securities; Harvestons Securities, Inc.; and MorganStanley. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, adopting Resolution No. 2003-12 appointing Northland Securities, Inc., as the City's bond consultant for the year 2003. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, adopting Resolution No. 2003-13 setting a public hearing, at 8:00 p.m., on January 23, 2003, on the application of Los Tequilas, Inc., d/b/a El Tequila Restaurant, for On-Sale Wine and 3.2 Percent Malt Liquor Licenses, at 7538 West 149th Street. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, adopting Resolution No. 2003-14 approving the final plat and Development Agreement for Hawthorne 2nd Addition and authorizing the Mayor and City Clerk to sign the same. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, approving Change Order No. 1 to the contract with Bituminous Roadways, Inc., for Project 01-165, 2002 Street Maintenance Program, in the additional amount of $73,333.17. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, accepting Project 01-165, 2002 Street Maintenance Program, as final and authorizing final payment on the contract with Bituminous Roadways, Inc., in the amount of $90,724.15. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, adopting Resolution No. 2003-15 approving specifications for 2003 Mowing and Trimming Maintenance Services on Various Properties and authorizing advertising for receipt of bids, at 2:00 p.m., on January 30, 2003. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, adopting Resolution No. 2003-16 amending the reimbursement rates for consultant services charged in Deposit Agreements for applications for rezonings, conditional or interim use permits, licenses or variances. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, approving a Contract with Dakota County for use of Sentenced to Service Program Work Crews for 2003, as attached to the Park Maintenance Superintendent's memo dated January 9, 2003, and authorizing the Mayor and Clerk to sign the same. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, approving the appointment of 14 new volunteer firefighters, as listed in the Fire Chief's memo dated January 9, 2003. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, approving the 2003 Pay Equity Implementation Report for submittal to the Minnesota Department of Employee Relations, as attached to the Human Resources Manager's memo dated January 6, 2003, and authorizing the Mayor to sign the same. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, approving hiring the seasonal employees as listed in the Personnel Report dated January 9, 2003. Ayes - 5 - Nays - 0.

END OF CONSENT AGENDA

BURLINGTON COAT FACTORY SIGN VARIANCE

Ms. Bodmer advised the Council that representatives of Burlington Coat Factory were present and have changed the signage plan for their building such that it now complies with the City Code and no variance is needed. The former K-Mart building, 7575 West 153rd Street, is now being remodeled. Mike Shanahan, of Burlington Coat Factory, was present and said plans are to open the new store in August. They will have about 120 employees at the time of opening and will have about 80 year around employees.

COBBLESTONE LAKE PHASE II

Mr. Lovelace reviewed the Planning Commission recommendation on Phase II of the Cobblestone Lake development located west of Diamond Path and north of 160th Street. The request includes rezoning to allow for three different types of townhomes in the planned development. These amendments will define uses and establish performance standards for the zones. He reviewed the public and private open space park sites included in the preliminary plat. Cobblestone Lake Parkway will be a public street continuing around the pond.

Zone 2 will include Signature Townhomes, duplexes, and single family homes; Zone 3 will include Classic and Gable Townhomes; and Zone 5 will have higher density condominium units, but no development plans have been submitted yet. He described the design concepts incorporated into the different housing products to provide garage access from the rear or interior streets. Only the Gable Townhomes will have garages facing the streets, but cantilevered decks will screen them.

Sidewalks and pathways connecting the areas provide pedestrian access throughout the development. Sidewalk was redesigned for the Gable Townhomes area to accommodate entrances and garages facing the street. These private streets will have 24-foot wide driving surfaces with three-foot wide sidewalks adjacent to the valley gutter curbs. The revised plans also show Dunbar Avenue ending in a cul de sac with a paved access from Cobblestone Lake for emergency vehicle turnarounds.

Councilmember Grendahl noted that the comments about the landscape plan made by the Natural Resources Coordinator, in his memo dated December 13, 2002, were very appropriate. She suggested they be used as newsletter articles informing residents about the problem with buckthorn and providing advice on selecting types of trees and shrubs.

MOTION: of Goodwin, seconded by Grendahl, directing preparation of an ordinance amending Planned Development Zoning Designation No. 703 by defining uses and performance standards for Zone 2, Signature Townhomes, single family, and twinhomes; Zone 3, Classic and Gable Townhomes; and Zone 5, condominium units; in Cobblestone Lake Phase II, as recommended by the Planning Commission. Ayes - 5 - Nays - 0.

MOTION: of Erickson, seconded by Grendahl, adopting Resolution No. 2003-17 approving the 59.11-acre preliminary plat of Cobblestone Lake Phase II, with conditions as recommended by the Planning Commission. Ayes - 5 - Nays - 0.

MOTION: of Bergman, seconded by Goodwin, adopting Resolution No. 2003-18 approving the site plan and authorizing issuance of building permits for Signature Townhomes (46 units) in the preliminary plat of Cobblestone Lake Phase II, with conditions as recommended by the Planning Commission. Ayes - 5 - Nays - 0.

MOTION: of Erickson, seconded by Grendahl, adopting Resolution No. 2003-19 approving the site plan and authorizing issuance of building permits for Classic Townhomes (98 units) in the preliminary plat of Cobblestone Lake Phase II, with conditions as recommended by the Planning Commission. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, adopting Resolution No. 2003-20 approving the site plan and authorizing issuance of building permits for Gable Townhomes (138 units) in the preliminary plat of Cobblestone Lake Phase II, with conditions as recommended by the Planning Commission. Ayes - 5 - Nays - 0.

MOTION: of Bergman, seconded by Goodwin, authorizing issuance of model home permits for four sites in Cobblestone Lake Phase II; single family homes, twinhomes, Signature Townhomes, and Classic Townhomes; subject to final review approval by public safety staff. Ayes - 5 - Nays - 0.

ORDINANCE AMENDING BUILDING PERMIT & SAC FEES

Mr. Aden gave the first reading of an ordinance amending certain permit fees as summarized in his memo dated January 6, 2003. The changes include an increase in the mandated Metropolitan Council Environmental Services service availability charge from $1,200.00 to $1,275.00. The fee for Individual Sewage Treatment System (ISTS) permit is proposed to be amended to $150.50 to cover the subcontracted inspection and plan review costs. State law now specifies that the permit fee for replacing a residential water heater or water softener is $15.00 and that amendment is included. Finally fees for miscellaneous small building projects are amended to $39.25, the cost of a permit based on a $1,000 valuation, to cover the cost of two inspections.

The Council accepted the first reading of the ordinance. The second reading and passage will be scheduled for January 23, 2003.

ALF AMBULANCE BOARD REPRESENTATIVE

Mr. Lawell reviewed his memo dated January 6, 2003, describing the vacancy on the ALF Ambulance Board due to the retirement of Councilmember Sterling. The organization's revised Joint Powers Agreement provides for each City to appoint a primary voting member and an alternate voting member. It also created an Executive Management Committee made up of two staff members from each City. The Police Chief and City Administrator represent Apple Valley on this Committee.

MOTION: of Goodwin, seconded by Hamann-Roland, appointing Councilmember Erickson as primary voting member and Councilmember Bergman as alternate voting member on the ALF Ambulance Board representing Apple Valley. Ayes - 5 - Nays - 0.

2003 ACTING MAYOR

MOTION: of Goodwin, seconded by Bergman, adopting Resolution No. 2003-21 appointing Councilmember Erickson to serve as Acting Mayor, in the absence of the Mayor, for the year 2003. Ayes - 5 - Nays - 0.

MUNICIPAL CENTER MAGAZINE FEATURE

Mr. Lawell distributed copies of an article from the January-February 2003 issue of "Architecture Minnesota". It featured Apple Valley Municipal Center as one of nine building case studies in the article on sustainable design strategies.

COMMUNICATIONS & CALENDAR

The Council received a memo dated January 6, 2003, with a calendar listing upcoming events.

CLAIMS AND BILLS

MOTION: of Bergman, seconded by Grendahl, to pay the claims and bills, check registers dated December 27, 2002, in the amount of $4,004,965.16; December 31, 2002, in the amount of $532,482.20; January 2, 2003, in the amount of $173,908.91; and January 9, 2003, in the amount of $587,351.25. Ayes - 5 - Nays - 0.

CLOSE MEETING ATTORNEY-CLIENT MATTERS

Mr. Dougherty asked the City Council convene in a closed session, under the provisions of M.S. 471.705, to discuss the status of the Brandtjen property condemnation matter and the Gennadiy Balandin claim.

MOTION: of Goodwin, seconded by Erickson, to close the regular meeting and convene in closed session to discuss the Brandtjen property condemnation and the claim of Gennadiy Balandin with the City Attorney. Ayes - 5 - Nays - 0.

The meeting was closed at 9:18 p.m. Mayor Hamann-Roland Councilmembers Bergman, Erickson, Goodwin, and Grendahl convened in the Regent Conference Room, at 9:27 p.m., along with City Attorney Dougherty, City Administrator Lawell, City Clerk Mueller, and Public Works Director Heuer. Mr. Dougherty advised the Council that its discussion must be limited to matters for which the meeting was closed and if issues are discussed outside of this meeting the attorney-client privilege will be lost.

Mr. Dougherty discussed the Brandtjen condemnation matter with the Council and Mr. Heuer left at 9:32 p.m. Mr. Dougherty then discussed the Gennadiy Balandin matter with the Council until the Council reconvened in open session at 9:59 p.m.

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

The meeting was adjourned at 10:00 o'clock p.m.