Minutes of the regular meeting of the City Council of Apple Valley, Dakota County, Minnesota, held September 28, 2006, at 8:00 o'clock p.m., at Apple Valley Municipal Center.

PRESENT: Councilmembers Bergman, Erickson, Goodwin, and Grendahl.

ABSENT: Mayor Hamann-Roland.

City staff members present were: City Administrator Lawell, City Clerk Gackstetter, City Attorney Dougherty, City Engineer Manson, Finance Director Ballenger, Associate City Planner Dykes, Assistant City Administrator Grawe, Public Works Director Heuer, Parks and Recreation Director Johnson, Police Chief Johnson, Acting Community Development Director Lovelace, Police Captain Marben, Human Resources Manager Strauss, and Police Chief Wassmund.

Acting Mayor Erickson 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 Grendahl, seconded by Bergman, approving the agenda for tonight's meeting as amended. Ayes - 4 - Nays - 0.

AUDIENCE

Acting Mayor Erickson 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

Acting Mayor Erickson asked if the Council or anyone in the audience wished to pull any item from the consent agenda. There were no requests.

MOTION: of Goodwin, seconded by Grendahl, and approving all items on the consent agenda with no exceptions. Ayes - 4 - Nays - 0.

CONSENT AGENDA ITEMS

MOTION: of Goodwin, seconded by Grendahl, approving the minutes of the regular meeting of September 14, 2006, as written. Ayes - 4 - Nays - 0.

MOTION: of Goodwin, seconded by Grendahl, approving issuance of a 2006 Christmas Tree Sales Lot license to Bill Brabec d/b/a Silver Bell Christmas Tree Farm, for use on Lot 2, Block 1, East Valley Plaza 3rd Addition (between Upper 141st and 140th Streets), as described in the City Clerk's memo dated September 25, 2006. Ayes - 4 - Nays - 0.

MOTION: of Goodwin, seconded by Grendahl, authorizing the sale of surplus City vehicles at the State of Minnesota public auction on October 28, 2006, as described in the Public Works Supervisor's memo dated September 28, 2006. Ayes - 4 - Nays - 0.

MOTION: of Goodwin, seconded by Grendahl, adopting Resolution No. 2006-158 approving 2006 Special Assessment Roll No. 545, for hearing purposes, in the total amount of $99,145.02, for delinquent utility charges, and setting the public hearing, at 8:00 p.m., on October 26, 2006. Ayes - 4 - Nays - 0.

MOTION: of Goodwin, seconded by Grendahl, adopting Resolution No. 2006-159 approving 2006 Special Assessment Rolls No. 546, for hearing purposes, in the total amount of $7,490.60, for delinquent false alarm and mowing/weed control charges, and setting the public hearing, at 8:00 p.m., on October 26, 2006. Ayes - 4 - Nays - 0.

MOTION: of Goodwin, seconded by Grendahl, adopting Resolution No. 2006-160 approving 2006 Special Assessment Rolls No. 547, 548, and 549, for hearing purposes, in the total amount of $3,012,036.00, for improvements, and setting the public hearing, at 8:00 p.m., on October 26, 2006. Ayes - 4 - Nays - 0.

MOTION: of Goodwin, seconded by Grendahl, authorizing submittal of a 2006 Clean Water Legacy Pre-Proposal Application Form in the amount of $260,000.00, for Whitney Pond construction, as attached to the Natural Resources Coordinator's memo dated September 28, 2006. Ayes - 4 - Nays - 0.

MOTION: of Goodwin, seconded by Grendahl, authorizing submittal of a 2006 Clean Water Legacy Pre-Proposal Application Form in the amount of $63,500.00, for Pond EVR-13 improvements, as attached to the Natural Resources Coordinator's memo dated September 28, 2006. Ayes - 4 - Nays - 0.

MOTION: of Goodwin, seconded by Grendahl, authorizing submittal of a 2006 Clean Water Legacy Pre-Proposal Application Form in the amount of $35,000.00, for Pond AL-8 improvements, as attached to the Natural Resources Coordinator's memo dated September 28, 2006. Ayes - 4 - Nays - 0.

MOTION: of Goodwin, seconded by Grendahl, adopting Resolution No. 2006-161 restricting parking on the west side of Lowell Drive from Baldwin Drive to Ramsdell Drive, from May through August, 5:00 p.m. to 9:00 p.m.; and authorizing installation of signage. Ayes - 4 - Nays - 0.

MOTION: of Goodwin, seconded by Grendahl, approving release of subdivision financial guarantees for Seasons on the Park and Seasons on the Park - NRMP, as listed in the Community Development Secretary's memo dated September 25, 2006. Ayes - 4 - Nays - 0.

MOTION: of Goodwin, seconded by Grendahl, adopting Resolution No. 2006-162 approving specifications for 2007 Mowing and Trimming Maintenance Services on Various Properties and authorizing advertising for receipt of bids, at 2:00 p.m., on October 19, 2006. Ayes - 4 - Nays - 0.

MOTION: of Goodwin, seconded by Grendahl, adopting Resolution No. 2006-163 approving specifications for Project 06-338, Well Pump No's. 4, 13, 16 & LZP1 Maintenance; and authorizing advertising for receipt of bids, at 2:00 p.m., on October 19, 2006. Ayes - 4 - Nays - 0.

MOTION: of Goodwin, seconded by Grendahl, adopting Resolution No. 2006-164 approving plans and specifications for Project 03-237, 153rd Street Utility and Street Improvements; and authorizing advertising for receipt of bids, at 2:00 p.m., on November 2, 2006. Ayes - 4 - Nays - 0.

MOTION: of Goodwin, seconded by Grendahl, adopting Resolution No. 2006-165 awarding the contract for Kelley Park Splash Pad and Related Equipment to Landwehr Construction, Inc., the low bidder, in the amount of $234,771.14. Ayes - 4 - Nays - 0.

MOTION: of Goodwin, seconded by Grendahl, accepting Nora Flooring at Hayes Park Arena as final and authorizing final payment on the contract with Becker Arena Products, in the amount of $24,795.00. Ayes - 4 - Nays - 0.

MOTION: of Goodwin, seconded by Grendahl, adopting Resolution No. 2006-166 authorizing utilization of an Alternative Urban Areawide Review (AUAR) process for environmental review of the Seed, Fischer, and 160th Street Properties; subject to receipt of a signed deposit agreement from Fischer Sand and Aggregate, LLP, to cover incurred costs. Ayes - 4 - Nays - 0.

MOTION: of Goodwin, seconded by Grendahl, adopting Resolution No. 2006-167 approving the transfer of Police Dispatchers' unused annual and vacation leave to the Dakota Communications Center. Ayes - 4 - Nays - 0.

MOTION: of Goodwin, seconded by Grendahl, adopting Resolution No. 2006-168 setting a public hearing, at 8:00 p.m., on October 26, 2006, to consider vacating easements on Lot1, Block 1, Chateau Estates Sixth Addition (13599 Harwell Path). Ayes - 4 - Nays - 0.

MOTION: of Goodwin, seconded by Grendahl, approving hiring the full-time and part-time employees, as listed in the Personnel Report and Addendum dated September 28, 2006. Ayes - 4 - Nays - 0.

END OF CONSENT AGENDA

INTRODUCTION OF SERGEANT MARK DEMING

Police Chief Johnson introduced newly promoted Sergeant Mark Deming to the Council. Sergeant Deming started with the Apple Valley Police Department in July of 2000. Police Chief Johnson then presented him with his new badge. The Council congratulated Sergeant Deming on his promotion.

PROCLAIM FIRE PREVENTION WEEK

Fire Chief Keith Wassmund was present and reviewed activities the Fire Department will be conducting during the week of October 8th at elementary schools in the City. The 2006 theme for Fire Prevention Week is "Prevent Cooking Fires. Watch What You Heat". Public open houses will be held, from 6:00 to 9:00 p.m., at Fire Station No. 1 on October 10, at Fire Station No. 2 on October 11, and at Fire Station No. 3 on October 12, 2006, and everyone is invited.

MOTION: of Grendahl, seconded by Bergman, proclaiming October 8-14, 2006, as "Fire Prevention Week" in support of the Fire Department's public safety efforts and urging all citizens to install smoke alarms and to plan and practice fire drills. Ayes - 4 - Nays - 0.

SALE OF CITY BONDS

Mr. Steve Mattson, of Northland Securities, said the City received an Aa1 bond rating from Moody's Investor Services. A couple of weeks ago the difference in the Aa2 rating and the Aa1 rating was minimal. The market changed. With the higher bond rating, the cost savings on the larger issue the City sold today is between $30,000.00 and $33,000.00. Only seven cities in the state have a higher bond rating. Mr. Mattson then reviewed the tabulations of bids received for the two City bond issues. The bids were opened at 11:00 a.m. today at his office. There were five bidders for the $5,785,000 G.O. Improvement Bonds with interest rates ranging from 3.661559% to 3.7997819%. He recommended accepting the low bid of UBS Securities. There was only one bid received for the $860,000 G.O. Equipment Certificates at interest rates of 3.833377%. He recommended accepting the bid from UBS Securities.

Councilmember Goodwin asked how the Apple Valley might attain the Aaa rating.

Mr. Mattson described some of the key factors in improving bond ratings. He said that the City of Apple Valley has a good financial team with excellent financial management and planning.

The Council thanked the Finance Director and City Administrator for their role in receiving the higher bond rating.

MOTION: of Goodwin, seconded by Bergman, adopting Resolution No. 2006-169 providing for the issuance and sale of $5,785,000 General Obligation Improvement Bonds, Series 2006A, to UBS Securities, at an interest rate of 3.661559%, and pledging for the security thereof with special assessments. Ayes - 4 - Nays - 0.

MOTION: of Grendahl, seconded by Goodwin, adopting Resolution No. 2006-170 providing for the issuance and sale of $860,000 General Obligation Equipment Certificates, Series 2006B, to UBS Securities, at an interest rate of 3.833377%, and levying a tax for the payment thereof. Ayes - 4 - Nays - 0.

ORDINANCE AMENDING WIRELESS COMMUNICATION TOWER SETBACKS

Ms. Dykes gave the first reading of an ordinance amending Section 155.385 of the City Code regarding setbacks for communication towers and antennas. The current code requires a minimum setback of two times the fall zone from any structure and one and one-half times the fall zone from the property line. The applicant contends the current setback requirements prohibit the installation of communication towers and antennas in business and industrial zoning districts. The amendment requires wireless towers be placed a minimum of two times the fall zone from neighboring structures in commercial and industrial zoning districts. No other changes to the code are recommended. The Planning Commission held a public hearing on the amendment September 20, 2006, and did not receive any comments.

Councilmember Bergman asked if the amendment would result in towers popping up all over.

Ms. Dykes said the Telecommunications Act of 1996 requires the City allow towers in all districts. Towers may be a bit easier to place in commercial and industrial districts with the amendment, but the setback in residential districts remains the same.

MOTION: of Grendahl, seconded by Bergman, waiving the procedure for a second reading and passing Ordinance No. 796 amending City Code Section 155.385 by revising the setbacks for communication towers and antennas to two times the fall zone from structures on neighboring properties in Limited Business, Retail Business, Business Park, Institutional, General Business, Limited Industrial, and General Industrial zoning districts; as recommended by the Planning Commission. Ayes - 4 - Nays - 0.

PILOT FLEX CENTER

Mr. Lovelace reviewed the request for a preliminary plat, site plan review, and building permit authorization for construction of two 32, 212 square foot office/warehouse buildings on the west side of Energy Way, just south of Upper 147th Street West. The preliminary plat combines 23 lots into two lots, approximately two and one-half acres each. The applicant intends to construct two horseshoe shaped buildings. The town office buildings and the Pilot Flex Center developments will require 377 parking spaces, of which 58 are proof-of-parking spaces. The Planning Commission voted unanimously to recommend approval of the requests.

MOTION: of Goodwin, seconded by Grendahl, adopting Resolution No. 2006-171 approving the preliminary plat of Pilot Flex Center (west side of Energy Way, south of Upper 147th Street West) with three lots, as recommended by the Planning Commission. Ayes - 4 - Nays - 0.

MOTION: of Goodwin, seconded by Grendahl, adopting Resolution No. 2006-172 approving the site plan and authorizing issuance of a building permit for two 32,212 square foot office/warehouse buildings, on Lots 1 and 2, Block 1, Pilot Flex Center, with conditions as recommended by the Planning Commission. Ayes - 4 - Nays - 0.

ORDINANCE SETTING MAYOR AND COUNCILMEMBERS SALARIES

Mr. Lawell gave the first reading of an ordinance increasing the salaries of the Mayor and Councilmembers for 2007 and 2008 as contained in his memo dated September 25, 2006. The proposed ordinance would increase the salaries by 3 percent in both 2007 and 2008. He presented data from the League of Minnesota Cities comparing the compensation of elected officials in comparable cities. Both the Mayor's and Councilmembers' salaries are below average compared to the surveyed cities. Currently the Mayor's salary is $10,272.00 per year and the Councilmembers' salaries are $7,344.00 per year.

MOTION: of Grendahl, seconded by Goodwin, waiving the provision for a second reading and passing Ordinance No. 797 amending City Code Section 30.05 by setting the salary of the mayor at $882.00 per month and the salary of each councilmember at $630.00 per month effective January 1, 2007; and setting the salary of the mayor at $908.00 per month and the salary of each councilmember at $649.00 per month effective January 1, 2008. Ayes - 3 - Nays - 1 (Bergman).

COUNCIL COMMUNICATIONS

Councilmember Bergman said he provided staff with a copy of the Met Council's 2006 builders' guide for mitigating aircraft noise in new residential construction. He recommended the Planning Department staff take a look at the guide to determine what, if anything, can be applied to new projects.

CALENDAR OF UPCOMING EVENTS

MOTION: of Goodwin, seconded by Grendahl, approving the calendar of upcoming events as included in the City Clerk's memo dated September 28, 2006, and noting that each event listed is hereby deemed a Special Meeting of the City Council. Ayes - 4 - Nays - 0.

CLAIMS AND BILLS

MOTION: of Bergman, seconded by Goodwin, to pay the claims and bills, check registers dated September 20, 2006, in the amount of $500,325.12; and September 27, 2006, in the amount of $3,535,653.00. Ayes - 4 - Nays - 0.

MOTION: of Grendahl, seconded by Bergman, to adjourn. Ayes - 4 - Nays - 0.

The meeting was adjourned at 9:17 o'clock p.m.