Minutes of the regular meeting of the City Council of Apple Valley, Dakota County, Minnesota, held September 9th, 2004, 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, Finance Director Ballenger, Assistant to the City Administrator Grawe, Public Works Director Heuer, Parks and Recreation Director Johnson, Police Chief Johnson, Community Development Director Kelley, Police Captain Lohse, 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.

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

CONSENT AGENDA ITEMS

MOTION: of Grendahl, seconded by Bergman, approving the minutes of the regular meeting of August 26th, 2004, as written. Ayes - 5 - Nays - 0.

MOTION: of Grendahl, seconded by Bergman, adopting Resolution No. 2004-176 accepting, with thanks, the donation of $1,000.00 from Apple Valley American Legion Post 1776 for use toward sponsoring the Parks and Recreation Department Safety Camp. Ayes - 5 - Nays - 0.

MOTION: of Grendahl, seconded by Bergman, adopting Resolution No. 2004-177 accepting, with thanks, the donation of $150.00 from Kay Bergman for use toward sponsoring the Central Maintenance Facility Safety/Wellness Program. Ayes - 5 - Nays - 0.

MOTION: of Grendahl, seconded by Bergman, approving assignment of telecommunications Lease Agreements with Qwest Wireless, L.L.C., for sites at Valleywood Reservoir, Nordic Reservoir, and Chaparral Park, to Verizon Wireless (or an affiliate thereof) as described in the City Clerk's memo dated September 3, 2004, and authorizing the Mayor and City Clerk to sign the necessary documents. Ayes - 5 - Nays - 0.

MOTION: of Grendahl, seconded by Bergman, approving a Lease Agreement with Bonestroo, Rosene, Anderlik & Associates, Inc., for office space at the Municipal Center and Central Maintenance Facility, through September 30, 2005, as attached to the Public Works Director's memo dated September 9, 2004, and authorizing the Mayor and City Clerk to sign the same. Ayes - 5 - Nays - 0.

MOTION: of Grendahl, seconded by Bergman, authorizing engaging the services of a relocation company to facilitate the acquisition of property owned by David Fischer, at the northwest corner of 160th Street and Pilot Knob Road (parcel number 01-3500-041-76), for a future reservoir as described in the Community Development Director's memo dated September 3, 2004. Ayes - 5 - Nays - 0.

MOTION: of Grendahl, seconded by Bergman, approving the process to authorize rough grading and sand and gravel mining on property at the northwest corner of 160th Street and Pilot Knob Road (parcels number 01-03500-041-76 and 01-03500-013-77) preparatory to development of the future southern athletic complex as described in the Community Development Director's memo dated September 3. 2004. Ayes - 5 - Nays - 0.

MOTION: of Grendahl, seconded by Bergman, adopting Resolution No. 2004-178 directing the City Engineer to prepare plans and specifications for Project 04-269, Southview Water Reservoir. Ayes - 5 - Nays - 0.

MOTION: of Grendahl, seconded by Bergman, approving reduction of financial guarantees for: Andy's Market, from $5,500.00 to 0; and Hidden Ponds NRMP from $9,743.75 to 0. Ayes - 5 - Nays - 0.

MOTION: of Grendahl, seconded by Bergman, adopting Resolution No. 2004-179 approving specifications for Suspended Modular Tennis Flooring for Apple Valley Sports Arena, Hagemeister Park, and Wildwood Park; and authorizing advertising for receipt of bids, at 2:00 p.m., on September 29, 2004. Ayes - 5 - Nays - 0.

MOTION: of Grendahl, seconded by Bergman, authorizing the expenditure of $20,000.00 for the purchase of a used Superhoe Excavator from MacQueen Equipment, Inc., as described in the Public Works Director's memo dated September 9, 2004. Ayes - 5 - Nays - 0.

MOTION: of Grendahl, seconded by Bergman, accepting work for Reconditioning Hydrants as final and authorizing final payment on the contract with Champion Coatings, Inc., in the amount of $14,508.00. Ayes - 5 - Nays - 0.

MOTION: of Grendahl, seconded by Bergman, accepting installation of Playground Equipment at Palomino Park as final and authorizing final payment on the contract with Earl F. Andersen, Inc., in the amount of $34,992.88. Ayes - 5 - Nays - 0.

MOTION: of Grendahl, seconded by Bergman, accepting Project 01-164, Legacy of Apple Valley Utility and Street Improvements, as final and authorizing final payment on the contract with Richard Knutson, Inc., in the amount of $143,010.57. Ayes - 5 - Nays - 0.

MOTION: of Grendahl, seconded by Bergman, adopting Resolution No. 2004-180 ordering installation of stop signs at various intersections within the Legacy of Apple Valley North subdivision. Ayes - 5 - Nays - 0.

MOTION: of Grendahl, seconded by Bergman, approving an amendment to the Personnel Pay Plan and position classification for the position of City Clerk as described in the City Administrator's memo dated September 3, 2004. Ayes - 5 - Nays - 0.

MOTION: of Grendahl, seconded by Bergman, approving hiring the seasonal employees as listed in the Personnel Report and Addendum dated September 9, 2004. Ayes - 5 - Nays - 0.

END OF CONSENT AGENDA

FIREFIGHTERS' RELIEF ASSOCIATION BOOYA FUND RAISER

Fire Chief Wassmund described activities planned for the Firefighters' Relief Association 26th annual "Booya" fund raiser and invited everyone to attend on September 18, 2004, at Fire Station No. 1. This year a quilt, made by Rosemary and Barbara Engle, will also be sold in a silent auction. Serving begins at 11:00 a.m. and activities for everyone continue throughout the day.

RING-AROUND-THE-ARTS FESTIVAL

Parks and Recreation Director Johnson, Recreation Supervisor Bill Bird, and Executive Director Julie Burns were present and described activities planned for the Ring-Around-The-Arts festival on September 18 and 19, 2004. The festival will again be held in the parking lot at the Outdoor Aquatic Center and 66 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 30, 2004, from 6:30 to 9:00 p.m., at the Minnesota Zoo.

SALE OF CITY BONDS

Steve Mattson, of Northland Securities, distributed tabulations of bids received for two City bond issues. The bids were opened at 11:00 a.m. today at his office. The City continued to maintain its AA2 bond rating. There were seven bidders for the $4,325,000 G.O. Improvement Bonds with interest rates ranging from 3.5583% to 3.6584%. He recommended accepting the low bid of Wells Fargo Brokerage Services.

MOTION: of Erickson, seconded by Grendahl, adopting Resolution No. 2004-181 providing for the issuance and sale of $4,325,000 General Obligation Improvement Bonds of 2004 to Wells Fargo Brokerage Services, at an interest rate of 3.5583%, and pledging for the security thereof with special assessments. Ayes - 5 - Nays - 0.

Mr. Mattson reviewed the two bids received for the $160,000 G.O. Equipment Certificates at interest rates of 2.8932% and 3.2499%. He recommended accepting the low bid of Cronin & Co., Inc.

MOTION: of Grendahl, seconded by Bergman, adopting Resolution No. 2004-182 providing for the issuance and sale of $160,000 General Obligation Equipment Certificates of 2004 to Cronin & Co., Inc., at an interest rate of 2.8932%, and levying a tax for the payment thereof. Ayes - 5 - Nays - 0.

MIDWEST AUTO SALON CONDITIONAL USE PERMIT

Mr. Lovelace reviewed the Planning Commission's recommendation on a proposed conditional use permit for an automotive window tinting service bay for Midwest Auto Salon, at 7604 West 147th Street. The 17 x 21 foot bay would be used in conjunction with an auto accessory store. He reviewed the eleven conditions listed in the draft resolution that would be imposed on the business. Anthony Nguyen and Qui Bui, representing the business, were present.

Councilmember Bergman said the resolution addresses a trash container for this business and asked how containers for other tenants in the building are handled. Mr. Lovelace said this container will be required to be inside or in a separately constructed enclosure. This was the only container outside and others are handling their trash from within the building.

Councilmember Bergman said he is concerned about allowing any parking on the west side of the building. He noted this permit is for automotive window tinting only and the service bay door should have a clear glass window so activity is visible from the outside.

Councilmember Goodwin asked how the business handles installation of other parts and accessories that it sells. Mr. Nguyen said they are in the process of establishing another shop in Burnsville, in an industrial area, where vehicle will be taken to have those parts installed. The Apple Valley location is intended to be for retail sales and window tinting only.

Councilmember Bergman asked what would happen if the building to the west wanted to add garage doors for its tenants. Mr. Lovelace said they would also have to apply for a conditional use permit and appropriate conditions would be imposed.

MOTION: of Bergman, seconded by Erickson, adopting Resolution No. 2004-183 approving issuance of a Conditional Use Permit for an Automotive Window Tinting Service Bay for Midwest Auto Salon at 7604 West 147th Street (on parts of Lots 1 and 2, Block 2, Valley Commercial Park 1st Addition, with conditions as recommended by the Planning Commission and the requirement for a clear glass window in the service bay door. Ayes - 5 - Nays - 0.

PROPOSED 2005 CITY BUDGET AND TAX LEVY

Mr. Ballenger reviewed his memo dated September 9, 2004, describing the proposed City budget and tax levy for 2005. 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. The proposed General Fund budget is $20,645,145.00 and is an increase of 6.2% over 2004. The total proposed tax levy is $17,929,158.00, an increase of 5.6% over 2004.

Councilmember Goodwin commented that the proposed levy results in an estimated 4.25% tax increase on a median valued home. The City's State Aid was cut by about $1,100,000 and the budget was prepared with that loss of revenue. Had the City received that State Aid, a median valued home would see an estimated tax decrease of 3.5%.

Councilmember Grendahl said the Council will also be having meetings to further review the details of the budget before final adoption in December.

MOTION: of Goodwin, seconded by Bergman, adopting Resolution No. 2004-184 approving proposed 2005 budgets, with total revenue of $39,196,000.00 and expenditures of $36,476,539.00, and approving the proposed tax levy collectible in 2005 of $17,929,158.00 consisting of $16,804,860.00 for general purposes and $1,124,298.00 for debt purposes. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Erickson, setting a public hearing on the proposed 2005 budgets and tax levy, at 7:00 p.m., on December 6, 2004. Ayes - 5 - Nays - 0.

DEPARTMENT OF HOMELAND SECURITY FIRE ACT GRANT

Fire Chief Wassmund distributed a memo dated September 9, 2004, and informed the Council that the City has been notified that it received a Department of Homeland Security Grant through FEMA. It will provide funding for 38 new SCBA air tanks at $131,138.00. The grant requires a 10% match from the City meaning the City will receive $118,025.00 in funding. He also noted that last week he was notified the City will receive a $40,000 grant for a sprinkler trailer that will be used in fire safety education.

COMMUNICATIONS & CALENDAR

The Council received a memo dated September 9, 2004, with a calendar listing upcoming events.

CLAIMS AND BILLS

MOTION: of Bergman, seconded by Goodwin, to pay the claims and bills, check registers dated September 1, 2004, in the amount of $20,155,833.92; and September 8, 2004, in the amount of $629,465.57. Ayes - 5 - Nays - 0.

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

The meeting was adjourned at 9:06 o'clock p.m.