Minutes of the regular meeting of the City Council of Apple Valley, Dakota County, Minnesota, held December 21st, 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, 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 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 Bergman, seconded by Goodwin, moving consideration of eminent domain proceedings for Project 03-233, Palomino Area Easements, to the regular agenda and approving all remaining items on the consent agenda. Ayes - 5 - Nays - 0.

CONSENT AGENDA ITEMS

MOTION: of Bergman, seconded by Goodwin, approving the minutes of the budget hearing meeting of December 6th, 2004, as written. Ayes - 5 - Nays - 0.

MOTION: of Bergman, seconded by Goodwin, approving the minutes of the regular meeting of December 9th, 2004, as written. Ayes - 5 - Nays - 0.

MOTION: of Bergman, seconded by Goodwin, adopting Resolution No. 2004-257 accepting, with thanks, the donation of $25.00 from Anchor Bank toward sponsorship of the Central Maintenance Facility Safety/Wellness Program. Ayes - 5 - Nays - 0.

MOTION: of Bergman, seconded by Goodwin, adopting Resolution No. 2004-258 accepting, with thanks, the donation of $500.00 worth of exercise from Thomas J. Adamini for use in the Workplace Wellness Program. Ayes - 5 - Nays - 0.

MOTION: of Bergman, seconded by Goodwin, adopting Resolution No. 2004-259 accepting, with thanks, the donation of $3,000.00 from Apple Valley American Legion, Post 1776, toward sponsorship of the Senior Citizen Holiday Party. Ayes - 5 - Nays - 0.

MOTION: of Bergman, seconded by Goodwin, adopting Resolution No. 2004-260 approving issuance of a Lawful Gambling Exempt Permit, by the Minnesota Gambling Control Division, to the School of Environmental Studies Education Foundation, for an event on February 12, 2005, at 12155 Johnny Cake Ridge Road; and waiving any waiting period for State approval. Ayes - 5 - Nays - 0.

MOTION: of Bergman, seconded by Goodwin, adopting Resolution No. 2004-261 approving entering into a Cooperative Agreement with the Minnesota Department of Public Safety (Grant Contract No. 2005-LLEBG-00296/9300-1351) for GIS 9-1-1 Location Mapping Software grant of $30,000.00, as attached to the Police Captain's memo dated December 2, 2004, and authorizing the Police Chief to execute the necessary documents. Ayes - 5 - Nays - 0.

MOTION: of Bergman, seconded by Goodwin, approving the Agreement with the Apple Valley Chamber of Commerce for providing Convention and Visitors Bureau services through July 31, 2006, as attached to the Assistant to the City Administrator's memo dated December 21, 2004, and authorizing the Mayor and City Clerk to sign the same. Ayes - 5 - Nays - 0.

MOTION: of Bergman, seconded by Goodwin, adopting Resolution No. 2004-262 approving transfer of $350,000.00 from the Liquor Fund to the General Fund for 2004. Ayes - 5 - Nays - 0.

MOTION: of Bergman, seconded by Goodwin, adopting Resolution No. 2004-263 approving transfer of $294,174.00 from the Police Relief Fund to the General Fund for 2004. Ayes - 5 - Nays - 0.

MOTION: of Bergman, seconded by Goodwin, adopting Resolution No. 2004-264 authorizing writing off $3,682.37 of non-sufficient funds checks and delinquent invoices against City operations for the year 2004. Ayes - 5 - Nays - 0.

MOTION: of Bergman, seconded by Goodwin, adopting Resolution No. 2004-265 approving submitting the application for Fiscal Year 2005 Dakota County Community Development Block Grant (CDBG) funding of $150,500.00 for the Housing Rehabilitation Revolving Loan Program as attached to the Community Development Director's memo dated December 12, 2004, and authorizing the Mayor and City Clerk to sign the same. Ayes - 5 - Nays - 0.

MOTION: of Bergman, seconded by Goodwin, approving release of the $2,000.00 financial guarantee for Hidden Ponds Apartments. Ayes - 5 - Nays - 0.

MOTION: of Bergman, seconded by Goodwin, adopting Resolution No. 2004-266 requesting the Minnesota Commissioner of Transportation to approve advance Municipal State Aid Street funding of $1,960,000.00 for construction of Project 01-128, Pilot Knob Road Between County Roads 42 and 46. Ayes - 5 - Nays - 0.

MOTION: of Bergman, seconded by Goodwin, adopting Resolution No. 2004-267 awarding the contract for Project 04-261, Redwood Pond Modifications/Upgrade, to Frattalone Companies, Inc., the low bidder, in the amount of $65,840.00. Ayes - 5 - Nays - 0.

MOTION: of Bergman, seconded by Goodwin, receiving the Waiver of Objection to Special Assessment from Pedersen Wensmann, LLC, for Project 03-238, Harmony Commons Utility and Street Improvements, and change orders increasing the amount to $1,025,217.32; as attached to the City Engineer's memo dated December 17, 2004. Ayes - 5 - Nays - 0.

MOTION: of Bergman, seconded by Goodwin, approving Change Order No. 1 to the contract with Three Rivers Construction, Inc., for Project 03-219, Diamond Gates Utility and Street Improvements, in the amount of an additional $49,936.00 for work related to Harmony Commons. Ayes - 5 - Nays - 0.

MOTION: of Bergman, seconded by Goodwin, approving Change Order No. 1 to the contract with Frontier Construction Co. for Project 03-238, Harmony Commons Utility and Street Improvements, in the amount of an additional $51,241.57. Ayes - 5 - Nays - 0.

MOTION: of Bergman, seconded by Goodwin, approving Change Order No. 1 to the contract with McNamara Contracting, Inc., for Project 03-239, Galaxie Avenue Reconstruction, in the amount of an additional $52,539.75 for work related to Harmony Commons. Ayes - 5 - Nays - 0.

MOTION: of Bergman, seconded by Goodwin, accepting Project 93-334, Galles Addition Utility and Street Improvements, as final and authorizing final payment on the contract with Heselton Construction, LLC, in the amount of $14,046.29. Ayes - 5 - Nays - 0.

MOTION: of Bergman, seconded by Goodwin, accepting Playground Equipment and Installation at Johnny Cake Ridge Park East as final and authorizing final payment on the contract with Little Tikes Commercial Play Systems, in the amount of $65,000.00. Ayes - 5 - Nays - 0.

MOTION: of Bergman, seconded by Goodwin, accepting Playground Equipment and Installation at Johnny Cake Ridge Park West as final and authorizing final payment on the contract with PlayPower LT Farmington, Inc., in the amount of $50,000.00. Ayes - 5 - Nays - 0.

MOTION: of Bergman, seconded by Goodwin, adopting Resolution No. 2004-268 setting the reimbursement rate for mileage, under the travel policy, at $.405 per mile effective January 1, 2005. Ayes - 5 - Nays - 0.

MOTION: of Bergman, seconded by Goodwin, adopting Resolution No. 2004-269 amending the employee Health Care and Dependent Day Care Expense Reimbursement Plan effective January 1, 2005, in conformance with COBRA regulations and authorizing the Mayor and City Clerk to sign the necessary documents. Ayes - 5 - Nays - 0.

MOTION: of Bergman, seconded by Goodwin, adopting Resolution No. 2004-270 approving and implementing the 2005 Employee Pay and Benefit Plan. Ayes - 5 - Nays - 0.

MOTION: of Bergman, seconded by Goodwin, approving promotion of Pamela Gackstetter to the position of City Clerk as listed in the Personnel Report dated December 21, 2004. Ayes - 5 - Nays - 0.

MOTION: of Bergman, seconded by Goodwin, approving transfer of Melissa Nelson to the full-time position of Receptionist-Cashier as listed in the Personnel Report dated December 21, 2004. Ayes - 5 - Nays - 0.

MOTION: of Bergman, seconded by Goodwin, approving hiring the seasonal employees as listed in the Personnel Report dated December 21, 2004. Ayes - 5 - Nays - 0.

END OF CONSENT AGENDA

MnDOT MERIT AWARD FOR PALOMINO DRIVE

Mr. Heuer reviewed his memo dated December 21, 2004, describing the Minnesota Department of Transportation Merit Award, received December 7, 2004, for the Palomino Drive reconstruction project. The award was presented, under the Urban State Aid Project classification, to the City; the engineers, Bonestroo, Rosene, Anderlik & Associates; and the contractor, McNamara Contracting. It recognizes the efforts of all the parties involved (the citizens, City Council, staff, engineers, and the contractor) to accept modifications and compromise to make it a successful project.

MOTION: of Erickson, seconded by Goodwin, accepting the Minnesota Department of Transportation Asphalt Paving 2004 Merit Award for Project 98-417, Palomino Drive Reconstruction. Ayes - 5 - Nays - 0.

2005-2009 CAPITAL IMPROVEMENTS PROGRAM

Mr. Grawe reviewed and gave an overview of the 2005-2009 Capital Improvements Program as attached to his memo dated December 21, 2004. It is prepared as a planning document for the City and is part of the Comprehensive Plan. It generally itemizes capital outlays that exceed $50,000. The document is divided into six sections; summary tables, projects by department, projects by funding source, projects by category, debt analysis, and a vehicle and equipment replacement schedule. The Planning Commission held a public hearing on the amendment December 15, 2004, and recommended approval.

Councilmember Grendahl questioned items listed in projects by funding source and why Valleywood Clubhouse is shown in the General Fund. Mr. Grawe said that is an example of an item that will be moved to the Future Capital Project Fund established at the last meeting. Items shown in this fund may not have another funding source identified or involve multiple departments.

Councilmember Grendahl said unless items such as swimming pools are going to be brought to the voters for approval, she will not support the plan. She also expressed concern about items being listed without preliminary discussion that are then brought forward because they have been in the plan.

Councilmember Goodwin said items are shown in the document with estimated future dates that can be moved around. He would expect the Council to prioritize the list in the next couple of months. Mr. Grawe said the document really has two parts; routine recurring items that are included for budget planning and projects for future planning. This project may involve land acquisition, such as a fourth fire station, and listing them makes everyone aware of them.

Councilmember Grendahl suggested considering sharing future fire stations and equipment with surrounding cities as discussions proceed under the High Performance Partnership program.

MOTION: of Erickson, seconded by Goodwin, adopting Resolution No. 2004-271 approving the 2005-2009 Capital Improvements Program as an amendment to the Comprehensive Guide Plan and authorizing submitting it to the Metropolitan Council for approval as recommended by the Planning Commission. Ayes - 4 - Nays - 1 (Grendahl)

ON-STREET PARKING ALONG 155TH STREET

Mr. Kelley reviewed his memo dated December 17, 2004, concerning the Minnesota Valley Transit Authority's (MVTA) need for additional parking at the park and ride lot at 155th and Cedar. It has leased 100 parking stalls from Watson's to supplement the lot, but the lease is not being renewed for 2005. It is suggested that parking be allowed along the north side of 155th Street east of Gaslight Drive to help with the problem. Parking is allowed on Garrett Drive, east of the MVTA lot, and that will be offered as an option.

Councilmember Goodwin said the overparking results from residents of other cities using the lot. When the transit lot is built on Pilot Knob Road, it will have the same problem. Mr. Kelley said the Metropolitan Council's Transportation Plan acknowledges that transit for these outlying areas is a concern and something will need to be done to bring them into the system.

Mayor Hamann-Roland asked when there might be funding for a parking deck at the transit lot? Beverly Miller, Executive Director of the MVTA was present, and said they have applied for MnDOT funding and expect an answer in 2005. They will continue to work with Watson's and may be able to regain use of some parking spaces.

MOTION: of Grendahl, seconded by Goodwin, adopting Resolution No. 2004-272 ordering removal of no parking signs along the north side of 155th Street east of its intersection with Gaslight Drive. Ayes - 5 - Nays - 0.

SET SPECIAL MEETING

MOTION: of Erickson, seconded by Grendahl, setting a special meeting on December 30, 2004, at 7:45 a.m., to complete end of the year City business. Ayes - 5 - Nays - 0.

PROJECT 03-233, PALOMINO AREA EASEMENT ACQUISITION

The Council received the Public Works Director's memo dated December 21, 2004, concerning authorizing use of eminent domain to acquire storm water ponding easements in the area north of Palomino Drive and west of Cedar Avenue. The properties are located at 315, 385, 400, and 403 Cimarron Road 104 Surrey Trail. Councilmember Bergman said he understands it has been some time since some of these property owners were contacted by the City and he would like to allow more time for negotiation before taking action.

Mr. Dougherty said three of the property owners were contacted in late August and the property owner at 403 Cimarron Road received a variance December 9, 2004, to allow for future construction. Property owners were sent letters beginning in November of 2003 and easements have been acquired except for the five properties. The eminent domain process will take four to six months for the City to take possession and a negotiated settlement can be made at any time. There is no project associated with the easements, but the purpose is to acquire the area where storm water has been ponding.

Ann Stone, 315 Cimarron Road, was present and said she received a letter January 22, 2003. She wanted to see what would happen to the drainage after grading is completed in the Galles Addition. She is concerned about how long water will stay temporarily and how much will remain as a pond and asked that the area be staked again.

Mr. Gordon said lot grading is not complete because the Galles Addition has custom lots and each lot will be graded as a house is built. Mr. Dougherty said calculations for the easements are based on run-off for the area and the grading plan. If an easement acquired is inadequate or too large, it would have to be adjusted in the future.

MOTION: of Grendahl, seconded by Bergman, tabling consideration of a resolution authorizing proceeding with eminent domain for Project 03-233, Palomino Area Easements Acquisition, for 30 days. Ayes - 5 - Nays - 0.

COMMUNICATIONS & CALENDAR

Councilmember Grendahl said she understands the light at Palomino East Apartments that affects neighboring backyards has not been modified yet and asked that it be turned off until correct deflector are installed. Mr. Kelley said he would advise the property owner.

The Council received a memo dated December 17, 2004, with a calendar listing upcoming events.

CLAIMS AND BILLS

MOTION: of Goodwin, seconded by Bergman, to pay the claims and bills, check registers dated December 15, 2004, in the amount of $20,290,776.51; and December 20, 2004, in the amount of $373,259.37. Ayes - 5 - Nays - 0.

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

The meeting was adjourned at 9:12 o'clock p.m.