Minutes of the regular meeting of the City Council of Apple Valley, Dakota County, Minnesota, held November 20, 2007, 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 Gackstetter, City Attorney Hills, City Engineer Manson, Finance Director Ballenger, Assistant City Administrator Grawe, Public Works Director Heuer, Parks and Recreation Director Johnson, Police Chief Johnson, Utilities Superintendent Blommel Johnson, City Planner Lovelace, Police Captain Marben, Community Development Director Nordquist, Police Captain Rechtzigel, 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 Grendahl, seconded by Bergman, 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. There were no requests.

CONSENT AGENDA

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

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 November 8, 2007, as written. Ayes - 4 - Nays - 0 - Abstain - 1 (Goodwin).

MOTION: of Grendahl, seconded by Bergman, approving renewal of a Currency Exchange License by the Minnesota Department of Commerce Commissioner to Madison Financial Companies, Inc., for premises at 15465 Cedar Avenue, Suite 170. Ayes - 5 - Nays - 0.

MOTION: of Grendahl, seconded by Bergman, approving renewal of a Currency Exchange License by the Minnesota Department of Commerce Commissioner to Wal-Mart Stores, Inc., for premises at 7835 150th Street West. Ayes - 5 - Nays - 0.

MOTION: of Grendahl, seconded by Bergman, adopting Resolution No. 2007-204 approving the Apple Valley, Burnsville, and Eagan 2008 Joint Funding Application for community landfill abatement and recycling funds, in the amount of $185,030.00, to Dakota County and authorizing execution of the necessary documents. Ayes - 5 - Nays - 0.

MOTION: of Grendahl, seconded by Bergman, adopting Resolution No. 2007-205 authorizing submittal of an Application to Dakota County Community Development Agency (CDA) for a Redevelopment Incentive Grant in the amount of $250,000.00, as attached to the Community Development Director's memo dated November 16, 2007, and authorizing the Mayor and City Clerk to sign the same. Ayes - 5 - Nays - 0.
MOTION: of Grendahl, seconded by Bergman, adopting Resolution No. 2007-206 authorizing submittal of an Application to Dakota County Community Development Agency (CDA) for a Redevelopment Planning Grant in the amount of $15,000.00, as attached to the Community Development Director's memo dated November 16, 2007, and authorizing the Mayor and City Clerk to sign the same. Ayes - 5 - Nays - 0.
MOTION: of Grendahl, seconded by Bergman, adopting Resolution No. 2007-207 accepting the Data Conversion Plan for Fire/EMS Records Management System with ImageTrend. Ayes - 5 - Nays - 0.

MOTION: of Grendahl, seconded by Bergman, approving the Deposit Agreement with Ryan Companies US, Inc., for design costs for the traffic signal at CSAH 31 and 157th Street, in the amount of $15,000.00, as attached to the Public Works Director's memo dated November 20, 2007, and authorizing the Mayor and City Clerk to sign the same. Ayes - 5 - Nays - 0.

MOTION: of Grendahl, seconded by Bergman, approving the Consultant Engineer Agreement with Short Elliott Hendrickson, Inc., for traffic signal system design and construction inspection for signal at CSAH 31 and 157th Street, as attached to the Public Works Director's memo dated November 20, 2007, in an amount not to exceed $13,500.00, and authorizing the Mayor and City Clerk to sign the same. Ayes - 5 - Nays - 0.

MOTION: of Grendahl, seconded by Bergman, approving release of subdivision financial guarantee for Majestic Ridge, Lot 1, as listed in the Community Development Department Assistant's memo dated November 20, 2007. Ayes - 5 - Nays - 0.

MOTION: of Grendahl, seconded by Bergman, adopting Resolution No. 2007-208 directing the City Engineer to prepare plans and specifications for Project 07-379, 120th Street West Storm Water Improvements. Ayes - 5 - Nays - 0.

MOTION: of Grendahl, seconded by Bergman, adopting Resolution No. 2007-209 awarding the contract for Project 07-365, Cobblestone Lake Trails and Regional Infiltration, to Enebak Construction, the lowest responsible bidder, in the amount of $278,933.12. Ayes - 5 - Nays - 0.

MOTION: of Grendahl, seconded by Bergman, approving an Agreement for Active Workplaces Program Grant with Blue Cross and Blue Shield of Minnesota, in the amount of $46,825.00, and authorizing the Mayor and City Clerk to sign the same. Ayes - 5 - Nays - 0.

MOTION: of Grendahl, seconded by Bergman, adopting Resolution No. 2007-210 approving the L.I.F.E. Rewards Program and Policy, effective January 1, 2008. Ayes - 5 - Nays - 0.

MOTION: of Grendahl, seconded by Bergman, adopting Resolution No. 2007-211 amending the Health Reimbursement Arrangement (HRA), and authorizing execution of the necessary documents. Ayes - 5 - Nays - 0.

MOTION: of Grendahl, seconded by Bergman, approving Agreements with U.S. Bank, for Health Saving Account (HSA) Contribution and Automated Clearing House (ACH), as attached to the Human Resources Manager's memo dated November 16, 2007, and authorizing the Mayor and City Clerk to sign the same. Ayes - 5 - Nays - 0.

END OF CONSENT AGENDA

SALE OF GENERAL OBLIGATION BONDS

Mr. Steve Mattson, of Northland Securities, Inc., the City's fiscal consultant, said the City will be selling $10 million in bonds in 2007. The largest portion, $6,400,000 will be General Obligation Park Bonds, Series 2007A, for a portion of the bond referendum approved this fall. The remainder, or $3,600,000, will be General Obligation Improvement Bonds, Series 2007B. Keeping the total under $10 million makes the bonds bank qualified, which means banks may take a 100 percent tax deduction on the bonds. Considering banks are currently the primary purchaser of this type of bonds, that qualification is important. Mr. Mattson said the difference in basis points for a qualified bond is high right now. He estimates savings in interest costs between $218,000 and $219,000.

Mr. Mattson said he and Mr. Ballenger spoke with Moody's Investor Services about the City's rating. They affirmed the Aa1 rating. He was told many aspects of Apple Valley fit into the Aaa rating and that may be possible in another year or two with continued development and improved financing. As a result, the Northland Securities bond trader suggested Apple Valley insure its bonds. Mr. Mattson said the one-time premium on both bond issues was $47,000. He estimates a savings in excess of $100,000 with the bonds insured as Aaa.

He then reviewed details regarding both bond sales. The $6,400,000 General Obligation Park Bonds have a 25-year payback. The $3,600,000 General Obligation Improvement Bonds will fund improvements on Village at Founders Circle, Harmony Commons, Eastwood Ridge, and Wirsbo 2nd Expansion and are 100 percent assessed. The interest rates are lower because it is a 15-year bond. He reviewed the estimated cash flow and assessment information.

MOTION: of Goodwin, seconded by Erickson, adopting Resolution No. 2007-212 authorizing issuance and sale of $6,400,000 General Obligation Park Bonds, Series 2007A, to Northland Securities, Inc., at a net effective interest of 4.3046%, and levying taxes for the payment thereof. Ayes - 5 - Nays - 0.

MOTION: of Bergman, seconded by Goodwin, adopting Resolution No. 2007-213 authorizing issuance and sale of $3,600,000 General Obligation Improvement Bonds, Series 2007B, to Northland Securities, Inc., at a net effective interest rate of 4.002920%, and pledging for the security thereof with Special Assessments. Ayes - 5 - Nays - 0.

2008 ON-SALE LIQUOR AND WINE LICENSE RENEWALS

The City Clerk reviewed the list of on-sale liquor and wine license renewal applications as attached to her memo dated November 16, 2007. Police and tax records were checked and indicate nothing which would preclude renewing the licenses.

Mayor Hamann-Roland called the public hearing to order at 8:18 p.m. to consider renewal applications for on-sale liquor and wine licenses for the year 2008 and noted receipt of the affidavit of publication of the hearing notice. The Mayor asked for questions or comments from the Council and the audience. There were none and the hearing was declared closed at 8:19 p.m.

MOTION: of Grendahl, seconded by Bergman, approving renewal, for 2008, of on-sale liquor and wine licenses by adopting Resolutions No. 2007-214 for Apple American Limited Partnership of Minnesota d/b/a Applebee's Neighborhood Grill & Bar; No. 2007-215 for Blazin Wings, Inc., d/b/a Buffalo Wild Wings Grill & Bar; No. 2007-216 for E1 Azteca Apple, Inc., d/b/a El Azteca Mexican Restaurant; No. 2007-217 for H.O.C., Inc., d/b/a Rascals-Apple Valley-Bar & Grille; No. 2007-218 for Hiraku Japanese Restaurant, Inc., d/b/a Kami Japanese Restaurant; No. 2007-219 for Lancer Food Service, Inc.; No. 2007-220 for LRB Restaurant Company d/b/a Grizzly's Grill N' Saloon; No. 2007-221 for Majors Sports Café of Apple Valley, Inc., d/b/a Majors Sports Bar; No. 2007-222 for Minnesota Robins, Inc., d/b/a Red Robin of Apple Valley; No. 2007-223 for Osaka Japanese Restaurant, Inc., d/b/a Osaka Seafood & Steakhouse; No. 2007-224 for Rich Management, Inc., d/b/a Apple Place; 2007-225 for RT Minneapolis Franchise, LLC, d/b/a Ruby Tuesday; No. 2007-226 for Wadsworth Old Chicago, Inc., d/b/a Old Chicago; No. 2007-227 for Water's Edge Restaurant, LLC, d/b/a Enjoy!; No. 2007-228 for Apple Valley American Legion Post 1776; No. 2007-229 for Chipotle Mexican Grill of Colorado, LLC, d/b/a Chipotle Mexican Grill; No. 2007-230 for D & D of Minnesota, Inc., d/b/a Famous Dave's BBQ Shack; No. 2007-231 for DAGS Restaurant Holdings, LLC., d/b/a Two Guys from Italy; No. 2007-232 for Grand Central Station, Inc., d/b/a Broadway Station Apple Valley; No. 2007-233 for JI of S, Inc., d/b/a Jade Island Chinese Cuisine; No. 2007-234 for Planned Enterprises, LLC, d/b/a Joey's Only Seafood Restaurant; No. 2007-235 for Song Long, Inc., d/b/a Song Long; and No. 2007-236 for The Noodle Shop Company - Colorado, Inc., d/b/a Noodles & Company. Ayes - 5 - Nays - 0.

DISCOUNT TIRE

Mr. Lovelace reviewed the request by Discount Tire Company for a subdivision of an existing 8.46 lot into two lots, conditional use permit to allow for service bays, and a site plan/building permit authorization to allow for construction of an 8,150 sq. ft. tire sales and installation facility. The site is located on the southeast corner of 151st Street W. and Foliage Avenue. The entrances for the lot will be slightly moved from their original location. Mr. Lovelace said access agreements for infiltration and vehicles will need to be executed prior to issuing the building permit. He then reviewed the grading plan, site plan, landscape plan, and elevation drawings. There are no outstanding issues. On November 14, 2007, the Planning Commission unanimously recommended approval.

MOTION: of Goodwin, seconded by Grendahl, adopting Resolution No. 2007-237 approving the preliminary plat of Discount Tire Company, Inc. of Hillcrest Acres Fourth, with conditions as recommended by the Planning Commission. Ayes - 5 - Nays - 0.

MOTION: of Bergman, seconded by Goodwin, adopting Resolution No. 2007-238 approving a Conditional Use Permit to allow service bays for the installation of auto accessories in conjunction with an auto accessory store on Lot 1, Block 1, Discount Tire Company, Inc. of Hillcrest Acres Fourth, with conditions as recommended by the Planning Commission. Ayes - 5 - Nays - 0.

MOTION: of Grendahl, seconded by Goodwin, adopting Resolution No. 2007-239 approving the site plan and authorizing issuance of a building permit for construction of an 8,150 square foot retail building on Lot 1, Block 1, Discount Tire Company, Inc. of Hillcrest Acres Fourth, with conditions as recommended by the Planning Commission. Ayes - 5 - Nays - 0.

Mr. Jay Siminski, of Discount Tire, thanked Council and staff for their help on this project.

WELLS FARGO BANK

Mr. Lovelace reviewed the request by HTG Architects and Wells Fargo Corporate Properties Group for a final plat and site plan/building permit authorization to allow for construction of a 5,160 sq. ft. bank with five drive-thru lanes and 40 parking spaces. The site is a 1.01 acre outlot located in the Cobblestone Lake development on the southwest corner of 155th Street W. and Embry Path. The original Cobblestone Lake Commercial site plan showed a bank at this location. Access to the site will be via a private drive. The 5 drive-thru lanes will be on the north side of the building, which is consistent with the original plans. Mr. Lovelace then reviewed the site plan, landscape plan, and colored perspective drawing. There are no outstanding issues. On November 14, 2007, the Planning Commission unanimously recommended approval.

Mayor Hamann-Roland said she knows Wells Fargo is very forward thinking on energy and inquired as to what green features are being used in this building.

Mr. Bob Seeger, Chief Architect for Wells Fargo, said this building is a relatively new design, and would fall just below minimum acceptance level for a certified LEED building, which is an industry standard for energy efficient construction. It is an extremely energy efficient building in terms of insulation, energy management systems, materials, and fixtures.

Councilmember Bergman asked if most the buildings being built in this development have a flat roof.

Mr. Lovelace said yes.

MOTION: of Grendahl, seconded by Erickson, adopting Resolution No. 2007-240 approving the final plat of Cobblestone Lake Commercial 2nd Addition, waiving the requirement for a development agreement, and authorizing the Mayor and City Clerk to sign the same. Ayes - 5 - Nays - 0.

MOTION: of Goodwin, seconded by Bergman, adopting Resolution No. 2007-241 approving the site plan and authorizing issuance of a building permit for construction of a 5,160 square foot bank with five drive-thru lanes on Lot 1, Block 1, Cobblestone Lake Commercial 2nd Addition, with conditions as recommended by the Planning Commission. Ayes - 5 - Nays - 0.

DANGEROUS DOG ORDINANCE AMENDMENT

Police Captain Marben gave the second reading of an ordinance amending Chapter 91 of the City Code regulating dangerous and potentially dangerous dogs. At the October 25, 2007, meeting Council directed additional changes to the ordinance. Two changes have been incorporated into the ordinance since the first reading. First, owners of potentially dangerous or dangerous dogs must obtain a certificate of liability insurance in the amount of at least $50,000.00, payable to any person injured by the dog. Second, owners of potentially dangerous or dangerous dogs must provide written proof that their insurance provider has been notified in writing of the declaration of the potentially dangerous or dangerous dog in their household. The remaining amendments presented at the first reading remain unchanged.

Mayor Hamann-Roland asked if dogs currently identified as potentially dangerous are subject to the new requirements.

Police Captain Marben said the ordinance would apply to dogs already declared potentially dangerous.

Mayor Hamann-Roland asked if owners can appeal a declaration.

Police Captain Marben said owners may appeal. He added that if the Council passes the ordinance amendment, the Police Department will notify all owners of potentially dangerous dogs of the ordinance amendment and the steps necessary to become compliant. The notification will also include information on the process for filing an appeal.

Councilmember Goodwin said it is very likely there are older dogs on the list that may no longer be potentially dangerous, and he encouraged their owners to take advantage of the appeal process.

Councilmember Bergman asked if the letters could be sent certified so the City is certain the owners received the notice.

Police Captain Marben said yes.

Councilmember Erickson asked how many potentially dangerous dogs are on the list.

Police Captain Marben stated there are 33.

MOTION: of Goodwin, seconded by Bergman, approving Ordinance No. 825 amending Chapter 91 of the City Code regulating dangerous or potentially dangerous dogs. Ayes - 5 - Nays - 0.

RESIDENTIAL RENTAL PROPERTY ORDINANCE

Police Captain Rechtzigel gave the second reading of an ordinance amending Title XI of the City Code by adding Chapter 122 regulating residential rental property. The ordinance would require registration of rental property with the City within 180 days of its adoption, and would require appointment of a rental manager as a point of contact. Any changes in the status of the registered property would be required to be recorded within 30 days. There would be no fee for the registration at this time. Two minor changes were made to the ordinance following the first reading. The first change eliminated a registration question regarding taxes. The second change was a clarification in Section 122.99. The language changed but the meaning remained the same.

Police Captain Rechtzigel said the Multi-Housing Managers Coalition is meeting at the Police Department at 11:30 a.m. on November 28, 2007. If the amendment passes, the ordinance will be reviewed with the group at that time. The on-line application for registration will be available November 26, 2007.

Councilmember Goodwin said he likes the ordinance amendment and thinks it is a logical first step in keeping properties looking nice.

MOTION: of Goodwin, seconded by Erickson, passing Ordinance No. 826 amending Title XI of the City Code regarding Business Regulations, by adding Chapter 122 entitled "Residential Rental Property". Ayes - 5 - Nays - 0.

COUNCIL COMMUNICATIONS

Mayor Hamann-Roland thanked the Apple Valley Foundation and the Parks and Recreation Department staff for a very successful "A Night to Remember" held last Saturday. It was well attended and a fun evening.

CALENDAR OF UPCOMING EVENTS

MOTION: of Grendahl, seconded by Bergman, approving the calendar of upcoming events as included in the City Clerk's memo dated November 16, 2007, and noting that each event listed is hereby deemed a Special Meeting of the City Council. Ayes - 5 - Nays - 0.

CLAIMS AND BILLS

MOTION: of Bergman, seconded by Goodwin, to pay the claims and bills, check registers dated November 14, 2007, in the amount of $1,599,398.79; and November 20, 2007, in the amount of $7,150,380.30. Ayes - 5 - Nays - 0.

CLOSE MEETING, LABOR NEGOTIATIONS

Ms. Hills reviewed exceptions to the open meeting law and advised the Council that it could hold a closed session, under the provisions of M.S. 471.705, Subd. 1a, to discuss labor negotiations.

MOTION: of Goodwin, seconded by Grendahl, to enter into a closed meeting and convene in closed session to discuss AFSCME and LELS Police Sergeants and Police Officers union labor negotiations. Ayes - 5 - Nays - 0.

The Council convened in the Regent Conference Room at 8:50 p.m. In attendance were Mayor Hamann-Roland; Councilmembers Bergman, Erickson, Goodwin, and Grendahl; City Administrator Lawell; City Clerk Gackstetter; Human Resources Manager Strauss; Human Resources Representative Haas; Police Chief Johnson; Police Captains Rechtzigel and Marben; Public Works Director Heuer; Public Works Superintendent Blommel Johnson; and the City's Labor Attorney Frank Madden. The meeting was tape recorded as required by law. The Council reconvened in open session at 9:45 p.m.

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

The meeting was adjourned at 9:46 o'clock p.m.