Minutes of the regular meeting of the City Council of Apple Valley, Dakota County, Minnesota, held February 27th, 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, Assistant City Engineer Fick, Police Captain Anglin, Finance Director Ballenger, Assistant Planner Dykes, Assistant to the Administrator Grawe, Public Works Director Heuer, Police Chief Johnson, Police Captain Lohse, City Planner Lovelace, 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.

APPROVAL OF AGENDA

MOTION: of Erickson, seconded by Grendahl, 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. 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 February 13th, 2003, as written. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, approving the minutes of the special meeting of February 20th, 2003, as written. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, appointing Councilmember Bergman to the Economic Growth Partnership Committee to fill the position of Virginia Sterling for a term expiring February 10, 2004; and reappointing Councilmembers Goodwin and Grendahl to the Economic Growth Partnership Committee for terms expiring February 10, 2006, as described in the Assistant to the City Administrator's memo dated February 27, 2003. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, approving a setback variance to allow construction of a porch addition to within 25 feet of the rear lot line on Lot 14, Block 4, Scott Highlands 4th Addition (7243 - 144th Court), as recommended by the Planning Commission. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, adopting Resolution No. 2003-40 setting a public hearing, at 8:00 p.m., on March 27, 2003, to consider vacation of drainage and utility easements and road rights-of-way in Cobblestone Lake and Cobblestone Lake 2nd Addition, in areas being replatted as Cobblestone Lake 3rd Addition. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, adopting Resolution No. 2003-41 setting a public hearing, at 8:00 p.m., on March 27, 2003, to consider vacation of drainage and utility easements upon and across Lots 1 and 2, Block 1, Hillcrest Acres, to be replatted as Hillcrest Acres 2nd Addition. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, adopting Resolution No. 2003-42 approving the final plat and Development Agreement for Legacy Square (townhomes) and authorizing the Mayor and City Clerk to sign the same. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, approving an Agreement with Target Corporation for Consent to Easement Encroachment on Lot 1, Block 1, Southport 2nd Addition, for location of an electrical transformer on the north lot line, as attached to the Assistant Planner's memo dated February 21, 2003, and authorizing the Mayor and City Clerk to sign the same. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, approving reduction of subdivision financial guarantees for Talcott Glen, from $122,000.00 to $28,250.00; and for Regatta 3rd Addition, from $661,004.00 to $27,325.00. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, adopting Resolution No. 2003-43 approving specifications for Project 03-221, Deep Well No. 18 Construction, and authorizing advertising for receipt of bids, at 2:00 p.m., on April 3, 2003. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, adopting Resolution No. 2003-44 awarding the contract for a Fire Truck, Triple Combination Pumper, to Custom Fire Apparatus, Inc., the low bidder, in the amount of $335,800.00 including Options 1 and 2. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, approving Change Order No. 8 to the contract with Arkay Construction, Inc., for Fire Stations No. 2 and 3 Additions and Remodeling Project, in the amount of an additional $6,911.00. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, approving a contract with Dun-Rite Roofing Company for Reroofing Redwood Community Center, in the amount of $17,500.00, as attached to the Park Maintenance Superintendent's memo dated February 21, 2003, and authorizing the Mayor and City Clerk to sign the same. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, approving submittal of an application for a National Pollutant Discharge Elimination System (NPDES) Phase II General Storm Water Permit for the City to the Minnesota Pollution Control Agency, as attached to the Natural Resources Coordinator's memo dated February 27, 2003. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, approving submittal of an application for a National Pollutant Discharge Elimination System (NPDES) Phase II Industrial Storm Water Permit with No Exposure Certification for the Central Maintenance Facility to the Minnesota Pollution Control Agency, as attached to the Natural Resources Coordinator's memo dated February 27, 2003; and authorizing the Public Works Director to sign the same. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, approving promotion of Donald Harmsen to the position of Building Inspector-Residential, as listed in the Personnel Report dated February 27, 2003. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, approving hiring the seasonal employees as listed in the Personnel Report dated February 27, 2003. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, adopting Resolution No. 2003-45 approving issuance of two lawful gambling exempt permits, by the State Gambling Control Board, to the Minnesota Zoo Foundation, for raffles on April 26, 2003, at 13000 Zoo Boulevard, and waiving any waiting period for State approval. Ayes - 5 - Nays - 0.

END OF CONSENT AGENDA

SENATOR KNUTSON, LEGISLATIVE UPDATE

State Senator David Knutson, District 37, was present to comment on the current legislative session. The Governor has proposed a budget to deal with the State deficit that includes aid reductions for all cities. The Council expressed concern that all cities be treated fairly in application of the reductions. Per capita comparison of the proposed reductions shows some cities would continue to receive a disproportionate share of aid. Apple Valley's property tax levy was less than the maximum allowed for the last two years and proposals that restrict future levies based on a dollar amount would penalize cities that did not levy the maximum.

Senator Knutson said the state aid reductions now proposed are on a percentage basis. The next step will be for the legislature to look at revising the formula used. He expressed support for local control and letting cities manage their budget decisions. He serves on the Finance, State Budget, and Crime Prevention Committees and invited anyone with concerns or questions to contact him.

The Council also thanked Senator Knutson for his efforts in implementing CrimNet in the State. The program allows law enforcement agencies to share data on individuals and the different software to communicate information to each other. Police Chief Johnson noted that, thanks to Senator Knutson, Apple Valley is one of the first departments to be linked to CrimNet. The Council invited the Senator to come back and share information with them after the session is over.

LEONARDO'S PIZZA CONDITIONAL USE PERMIT

Ms. Dykes reviewed the Planning Commission recommendation on a Conditional Use Permit for a Class II restaurant proposed in the multi-tenant retail building located south of Wal-Mart and north of County Road 42, PD-341, zone 4A. Leonardo's Take & Bake Pizza would sell pre-made pizza for customers to take home, but would also serve pizza by the slice during lunch hours. There would be no seating in the approximately 1,100 square foot restaurant.

MOTION: of Erickson, seconded by Bergman, adopting Resolution No. 2003-46 approving a Conditional Use Permit for Leonardo's Take & Bake Pizza to operate a Class II restaurant in tenant space on Lot 2, Block 1, Wal-Mart 1st Addition, in accordance with Planned Development No. 341, Subzone 4A, and conditions as recommended by the Planning Commission. Ayes - 5 - Nays - 0.

GALLES ADDITION PRELIMINARY PLAT APPROVAL

Mr. Lovelace reviewed his memo dated February 24, 2003; concerning the request for extension of preliminary plat approval for Galles Addition now set to expire February 28, 2003. The 3.48-acre site, between Cimarron Road and Pennock Avenue was approved in 1994 as one cul de sac with six single-family lots. Approval was extended eight times and this would be the ninth time. Final plat action could not be pursued until off-site storm sewer easements on the Palomino East apartment property were obtained. This was finalized, but the Minnesota Department of Transportation (MnDOT) then required detailed drainage calculations related to Cedar Avenue storm sewer. The modeling was completed by the City Engineer, sent to MnDOT on February 14, 2003, and an answer is expected in mid-March.

Mr. Galles has submitted the final plat application, Natural Resources Management Permit application, and grading plan. The information can be sent to the City Attorney next week for preparation of the development agreement. This process generally takes 30 to 45 days. The Attorney's opinion is that approval of the final plat and development agreement needed to occur by February 28th and that is the reason an extension is requested.

Councilmember Bergman asked what would happen if MnDOT stated that only four lots could be developed on the site? Mr. Dougherty said MnDOT would not look at the number of lots on a property, only how much storm water drains from it and how much can enter its system. Mr. Fick reviewed the process his firm's hydrologist used in preparing data for MnDOT. They were somewhat delayed because detailed contour maps were needed for modeling. MnDOT staff believes its review of the data can be completed early in March.

Councilmember Bergman asked at what point does a preliminary plat go back to the Planning Commission and have all easements been obtained? Mr. Lovelace said if the approval is not extended, it would have to come back as a new application. This preliminary plat was originally approved in 1989 and went back to the Planning Commission in 1994.

Mr. Lovelace noted that additional drainage and utility easements will need to be shown over the northerly parts of Lots 1 and 2 on the final plat. Mr. Gordon said there are several easements that may need to be acquired from other lots and not necessarily due to this development. There are places where water is ponding now without development. When the information is received from MnDOT, they can begin negotiation for the easements.

Councilmember Grendahl asked whether the easements could be acquired in 90 days? Mr. Gordon said the descriptions can be drafted, but they probably cannot be acquired. That would depend on negotiations with property owners involved.

MOTION: of Erickson, seconded by Goodwin, approving an extension of preliminary plat approval for Galles Addition, as recommended in the City Planner's revised memo dated February 26, 2003, for 90 days, to expire May 27, 2003.

Joe Taylor, 385 Cimarron Road, said Mr. Galles has not completed the application because the plat does not show the required ponding area and a development agreement has not been prepared. He is opposed to granting another extension and read a statement asking for denial of the extension. Since the City does not know what requirements MnDOT may place on drainage, the project should go back to the Planning Commission. He cited references in M.S. 462.358 and City Code Section 153.23 that do not obligate the Council to extend the approval and support denial of the request.

Mr. Dougherty said language relating to an application does not mean everything is final when it is filed with the City, but are submitted for preparation of the final documents. Mr. Galles is aware that the City currently has easements over the property. They will have to be released before the final plat can be filed.

Councilmember Goodwin said the Council voted to rezone the Palomino East apartment site for townhomes and was not successful. If townhomes had been developed, the same amount of storm water would have been displaced, but the issue would not have been raised. The Council would not be looking at this type of storm water issue for six single-family lots.

Councilmember Erickson asked where the site drains now? Mr. Gordon said there is currently a manmade pond on the site that absorbs the water and it drains into the ground.

Councilmember Bergman asked what the probability is of having to tear up Cedar Avenue to improve drainage? Mr. Gordon said that would not be anything that would be required. The original request to MnDOT, when Cedar Avenue was constructed, was to accommodate a drainage area of 58 acres. Based on actual development that has occurred in the area, the area used in modeling has now been reduced to 45 acres. Cedar Avenue storm sewer will not be affected.

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

2003-2004 INSURANCE RENEWAL

Mr. Ballenger reviewed his memo dated February 24, 2003, describing proposed renewal of the City's insurance with the League of Minnesota Cities Insurance Trust (LMCIT) for 2003-2004. He noted that the total premium increase is just under 9.5 percent while the property covered increased by 11 percent. Cities are now being asked to specifically act annually on waiving statutory liability limits whether or not they are choosing that option. A memo from the LMCIT describing the options was attached to his memo.

Bill Velin, the City's agent with Acordia of Minnesota, was present and commented on his relationship with the City and renewal of the service contract with no increase in fees. He noted the LMCIT program has been very advantageous in providing insurance for cities and keeping rates stable and manageable.

MOTION: of Erickson, seconded by Grendahl, approving renewal of the City's property, liability, workers' compensation, and umbrella insurance coverage for March 1, 2003, through March 1, 2004, with the League of Minnesota Cities Insurance Trust at a total premium of $625,027.00 as recommended in the Finance Director's memo dated February 24, 2003. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Grendahl, approving a 2003-2004 Service Contract with Acordia of Minnesota, Agent William K. Velin, at a fee of $6,000.00, as attached to the Finance Director's memo dated February 24, 2003, and authorizing the Mayor and City Clerk to sign the same. Ayes - 5 - Nays - 0.

MOTION: of Erickson, seconded by Bergman, approving a non-waiver of statutory liability limits for the City's insurance as recommended in the Finance Director's memo dated February 24, 2003. Ayes - 5 - Nays - 0.

COMMUNICATIONS & CALENDAR

The Council received a memo dated February 24, 2003, with a calendar listing upcoming events.

Councilmember Grendahl commented on settlement of the Gennadiy Balandin lawsuit that was approved February 20, 2003. She noted this was a Federal civil rights case that went beyond the statutory tort limits. She represented the Council at the February 19th settlement hearing with a mediator who put pressure on both parties to settle. There is a fiduciary responsibility to the taxpayers who would have had to pay had a jury awarded a larger settlement. She said she had some calls from people who were upset about the settlement, but not one call indicating that the Police Officer did anything wrong.

The Council said it supported the settlement as the responsible decision to make since it could be covered by insurance and not risk the City having to make additional payment. Had the matter proceeded to jury trial, there was no way of knowing the outcome. They noted that in no way was this an admission of any wrongdoing. Councilmember Grendahl said Officer Eagle was kept informed of the process and she attended the Police Department's meeting this week to explain the process and decision to them.

CLAIMS AND BILLS

MOTION: of Goodwin, seconded by Erickson, to pay the claims and bills, check registers dated February 20, 2003, in the amount of $515,084.75; and February 27, 2003, in the amount of $16,615,026.40. Ayes - 5 - Nays - 0.

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

The meeting was adjourned at 9:29 o'clock p.m.