Minutes of the regular meeting of the City Council of Apple Valley, Dakota County, Minnesota, held September 11th, 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 Fick, Police Captain Anglin, Finance Director Ballenger, Assistant Planner Dykes, Public Works Director Heuer, Park 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 Mayor asked everyone to observe a moment of silence to remember those lost in the terrorist attacks on September 11, 2001.

WORLD TRADE CENTER REMEMBRANCE

Fire Chief Wassmund reviewed his memo dated September 11, 2003, describing a plaque the Department received from the New York City Fire Department. He showed the piece of salvaged steel from the World Trade Center site, framed as a remembrance, and given as a token of appreciation for assistance provided after the events of 9/11.

APPROVAL OF AGENDA

MOTION: of Erickson, seconded by Grendahl, approving the agenda for tonight's meeting as presented. 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 August 28th, 2003, as written. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, adopting Resolution No. 2003-159 accepting, with thanks, the donation of a 1974 GMC pickup and a 1979 Chevrolet pickup from Russell Schroeder, for use by the Fire Department in training. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, approving a Contract with the City of Rosemount for use of its Fire Safety Smoke House on October 7, 8, and 9, 2003, as attached to the Fire Marshal's memo dated August 27, 2003, and authorizing the Mayor and City Clerk to sign the same. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, approving a Subrecipient Agreement with the Dakota County Community Development Agency to administer Community Development Block Grant (CDBG) funds received, as attached to the Community Development Director's memo dated September 5, 2003, and authorizing the City Administrator to sign the same. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, approving a Surveyor Services Contract with Probe Engineering Company, for Project 01-167, Farquar and Long Lakes Area and Ponds Easements, at a cost of $42,000.00, as attached to the Public Works Director's memo dated September 11, 2003, and authorizing the Mayor and City Clerk to sign the same. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, accepting a proposal from Bettendorf, Rohrer, Knoche, Wall, Inc., to provide appraisal and consultation services for preparing sample and value damage opinions for Project 01-167, Farquar and Long Lakes Area and Ponds Easements, at a cost of $7,500.00, as attached to the Public Works Director's memo dated September 11, 2003. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, adopting Resolution No. 2003-160 ordering preparation of a preliminary engineering feasibility report for Project 03-240, North Farquar Lake Sanitary Sewer Improvements. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, adopting Resolution No. 2003-161 awarding the contract for Project 02-202, 153rd Street (Dodd Road) Construction East of Easter Avenue, to McNamara Contracting, Inc., the low bidder, in the amount of $637,734.17. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, approving an Agreement for Engineering, Highway Construction, and Right-of-Way Acquisition with Dakota County for reconstruction of County Road 31 (Pilot Knob Road) between County Roads 42 and 46 (County Project 31-47), and construction of a transit station on the west side or Pilot Knob Road at 157th Street (County Project 31-54); as attached to the Public Works Director's memo dated September 11, 2003, and authorizing the Mayor and City Clerk to sign the same. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, approving an Agreement for Sanitary Sewer Corrosion Protection with Infratech for lining a pipe from Dunbar Avenue, in Apple Valley East to 160th Street, at a cost of $18,860.00, as attached to the Public Works Supervisor's memo dated September 11, 2003, and authorizing the Mayor and City Clerk to sign the same. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, accepting the Fire Truck, Triple Combination Pumper, Unit Number 4981, as final and authorizing final payment on the contract with Custom Fire Apparatus, Inc., in the amount of $20,000.00. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, adopting Resolution No. 2003-162 finding that the 1975 Ford Class A Pumper, Fire Unit Number 4983, is surplus property and no longer needed by the City and authorizing advertising for sale of the unit, by sealed bids, at 2:00 p.m., on November 12, 2003. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, approving the 2003 Labor Agreement with Police Sergeants, Law Enforcement Labor Services, Local No. 243, as attached to the Human Resources Manager's memo dated September 8, 2003, and authorizing execution of the documents. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, approving hiring the seasonal employees as listed in the Personnel Report dated September 11, 2003. Ayes - 5 - Nays - 0.

END OF CONSENT AGENDA

RING-AROUND-THE-ARTS FESTIVAL

Parks and Recreation Director Johnson, Recreation Supervisor Bill Bird, and Committee Chair Regina Mulder were present and described activities planned for the Ring-Around-The-Arts festival on September 20 and 21, 2003. The festival will again be held in the parking lot at the Outdoor Aquatic Center and 75 artists will be participating. They thanked the sponsors and the City for supporting the festival. They also invited everyone to attend a wine and specialty beer tasting fund-raiser being held by the Committee on September 25, 2003, from 6:30 to 9:00 p.m., at the Minnesota Zoo.

MOTION: of Grendahl, seconded by Bergman, approving activities and vendors at the Outdoor Aquatic Center in connection with the Ring-Around-The-Arts festival on September 20 and 21, 2003, as described in the Recreation Supervisor's memo dated August 29, 2003. Ayes - 5 - Nays - 0.

LEGACY PHASE I COMMERCIAL AREA

Ms. Dykes reviewed the Planning Commission recommendation concerning Legacy Phase I Commercial Area or Legacy of Apple Valley 3rd Addition. The approximately five-acre site is located east of Galaxie Avenue between 153rd Street and Founders Lane, and currently platted as Outlot A, The Legacy of Apple Valley. An amendment to Planned Development No. 716 is requested to allow for commercial uses in Zone 3 and creating Zone 4 to allow for a 275-space surface parking lot as a conditional use. Commercial uses proposed are a combination of service retail, general retail, general/professional office, and restaurant. The 3rd Addition preliminary plat shows three lots and two outlots for future buildings. Lot 1 will be used for parking; Lot 2 is proposed for a 300-seat, 11,000 square-foot, restaurant; and Lot 3 is a two-story, 14,000 square-foot, office building. Building plans are being finalized and are not included in this request.

Bill Griffith, of The Hartford Group, was present and commented on the evolving plan. The concept proposal is for one-story restaurant buildings and two-story mixed use and office buildings. If two-story restaurant buildings are constructed, the site would be short of parking.

Councilmember Goodwin questioned how the plan can work unless a parking ramp is constructed. Ms. Dykes reviewed the shared parking model with 275 surface spaces, 72 underground spaces and 26 on-street spaces providing 373 total parking spaces. Depending on combinations of uses in the parking scenarios, the potential is the site would be short on parking at the noon/1:00 p.m. time period on weekdays. The scenario uses the zoning ordinance's new restaurant parking requirements.

Glen Van Wormer, the City's traffic consultant, described the shared parking concept where needs are based on mixed uses and the times of day they utilize parking rather than requiring parking based on zoning code calculations. The goal is to share parking between daytime and evening uses. In this proposal, other studies and their range of averages for uses were used to prepare a model. Parking is tight for this site, but in the overall Central Village it may be able to be accommodated. With a ramp, there will be plenty of parking. Shared parking is contingent on a good mix of uses to maximize use.

Mr. Kelley commented on the parking ramp and said the City will know by the end of year whether it will receive a grant from the Metropolitan Council. With shared parking, there will be limitations on uses in the future L-shaped building. If a ramp is constructed, uses can be intensified on the site.

Councilmember Goodwin asked for comparisons on the size of the 300-seat restaurant and expressed concern about the limited amount of parking. He understood the site always anticipated a parking ramp. Mayor Hamann-Roland noted that part of the 300-seat restaurant proposed includes a banquet facility that would not be used everyday.

Mr. Griffith said their original concept was almost all retail, one-story, buildings. That changed when the Central Village planning grant was received to mixed uses. They believe the shared parking will work and view the ramp as not necessary for the office/retail mix. This is not the last time parking will have to be addressed for the development.

Councilmember Goodwin said he would prefer not to waive a second reading of the ordinance and consider it further at the next meeting.

Councilmember Erickson asked about uses changing once the buildings are built. Mr. Kelley said specific uses can change, but under the planned development percentages of types of uses have to remain. The second restaurant for Outlot B has not been identified yet, but would be limited to 100 seats. The 300-seat restaurant if believed to be gearing toward evening business.

Ms. Dykes offered to provide more analysis on maximum and minimum parking required. The Council accepted the first reading of the ordinance. A second reading was scheduled for September 25, 2003.

PROPOSED 2004 CITY BUDGET AND TAX LEVY

Mr. Lawell reviewed the proposed City budget and tax levy for 2004. The proposal is a preliminary levy and budget and the amount set tonight would be the maximum. At final adoption, the amount certified can be decreased but cannot be increased over the proposed amount. He described the increase in residents and growth in the City in the past year, changes in state tax law, and Local Government Aid (LGA) and Market Value Homestead Credit (MVHC) cuts. Unused property tax levy authority from last year was eliminated by the state. Strict levy limits have been imposed for 2004, however cities are allowed to levy back 60% of the state aid lost.

The proposed General Fund budget is $19,438,200.00 and is a decrease of 1.37% from 2003. Mr. Lawell reviewed proposed General Fund expenditures by department. The total proposed tax levy is $16,971,252.00 resulting in an estimated tax capacity rate of 39.518%. The 2003 City tax capacity rate was 41.578%. Due to changes in state law and phasing out of limited market value on property, it is not possible to use sample homes and make any reasonably accurate projections of 2004 taxes. With the phase-out of limited market value, most properties will see some property tax increase in 2004. Truth In Taxation hearing notices mailed by the County, in November, will contain this information.

Councilmember Goodwin commented how unusual it is to have General Fund budget reduction from one year to the next. He noted the City's State Aid cut was eight percent of total revenue. The Mayor and Council commended the City Administrator and Staff for work on the budget.

Councilmember Grendahl asked Staff to work with State Officials and attempt to get a better estimate on the actual impact of the tax levy on property taxes. Mr. Lawell said they would and noted residents can contact Staff with questions as well as members of the Council.

MOTION: of Bergman, seconded by Goodwin, adopting Resolution No. 2003-163 approving proposed 2004 budgets, with total revenue of $36,146,291.00 and expenditures of $37,217,386.00, and approving the proposed tax levy collectible in 2004 of $16,971,252.00 consisting of $15,889,570.00 for general purposes and $1,081,682.00 for debt purposes. Ayes - 5 - Nays - 0.

MOTION: of Bergman, seconded by Grendahl, setting a public hearing on the proposed 2004 budgets and tax levy, at 7:00 p.m., on December 1, 2003, and a meeting for adoption, at 7:00 p.m., on December 8, 2003; both at the Municipal Center. Ayes - 5 - Nays - 0.

ORDINANCE PROVIDING FOR OPTIONAL 2:00 A.M. LIQUOR CLOSING

Ms. Mueller gave the first reading of an ordinance amending City Code Chapter 111 regulating liquor, wine, and 3.2 percent malt liquor licenses as attached to her memo dated September 8, 2003. In 2003, State legislation was passed to allow for the sale of alcoholic beverages on licensed premises until 2:00 a.m. on all days of the week. It became effective statewide and is only limited where city ordinances specified closing hours as is the case in Apple Valley. Current licensees have now submitted a letter requesting that the City amend its ordinance. If the City's ordinance is amended, licensees would be able to apply for a special 2:00 a.m. license from the State and pay a State fee, ranging from $200 to $600, based on their previous 12 months liquor receipts.

City Code Sections 111.31(B) and 111.53(B) would be amended to provide that the last sale could be made at 1:45 a.m. instead of 12:45 a.m. Everyone except employees must be out of the premises 35 minutes after the last sale. Employees must be out of the premises 75 minutes after the last sale or by 3:00 a.m.

The 2003 law also redefined premises where on-sale 3.2 percent malt liquor licenses can be granted. City Code Section 111.22(B)(5) is recommended to be amended to add bowling centers and golf courses to the places eligible for licensing. A change is also proposed for Section 111.28(G) increasing the sales volumes for wine and 3.2 percent malt liquor licensees to be exempt from providing certificates of insurance as allowed in State Law.

Councilmember Erickson said he is not necessarily in favor of extending the hours, but understands the economics when surrounding cities have already made the change. Councilmember Goodwin and Mayor Hamann-Roland expressed concern related to public safety issues both with extending liquor sales hours and people traveling to other cities that already have later hours.

Mike Lynch, of the Pickled Parrot restaurant, was present and agreed everyone is probably being dragged along to make the change by the need to compete. In general, most restaurants will likely only use the extended hours a couple of nights a week.

The Council accepted the first reading of the ordinance. The second reading will be scheduled for September 25, 2003.

ORDINANCE AMENDING PERSONNEL POLICIES

Ms. Strauss gave the first reading of an ordinance amending City Code Chapter 34, Personnel Policies as attached to her memo dated September 8, 2003. Section 34.35, now called "Use of Physical Force by Employees", would be replaced with "Workplace Violence Prevention Policy". The policy applies to all employees, including those who have a valid permit to carry a pistol, except sworn police officers performing in the line of duty. Among promotion of other safe workplace practices, it prohibits carrying or using a firearm or other dangerous weapon while working on City property or on behalf of the City.

The ordinance also adds a new Section 34.39, Tobacco Use Policy. The Tobacco Use Regulation is included in the Safety Manual and would be incorporated into the Personnel Policies. It would prohibit the use of tobacco indoors at the Central Maintenance Facility, Liquor Stores, Municipal Center and all other City buildings.

The Council accepted the first reading of the ordinance. The second reading will be scheduled for September 25, 2003.

COMMUNICATIONS & CALENDAR

Mr. Lawell said ribbon cutting ceremonies for newly remodeled Fire Stations No. 2 and No. 3 are scheduled for October 8th and 9th, 2003, respectively, both at 6:00 p.m. This will coincide with Fire Prevention Week activities taking place at the Fire Stations.

Councilmember Grendahl congratulated Brian McDaniel on his appointment to the Metropolitan Council as Representative for District 16.

The Council received a memo dated September 8, 2003, with a calendar listing upcoming events.

CLAIMS AND BILLS

MOTION: of Goodwin, seconded by Erickson, to pay the claims and bills, check registers dated September 4, 2003, in the amount of $3,454,444.98; and September 11, 2003, in the amount of $12,218,670.99. Ayes - 5 - Nays - 0.

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

The meeting was adjourned at 10:02 o'clock p.m.