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HomeMy WebLinkAbout07/13/2006 CITY OF APPLE VALLEY Dakota County, Minnesota July 13, 2006 Minutes of the regular meeting of the City Council of Apple Valley, Dakota County, Minnesota, held July 13, 2006, 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 Dougherty, City Engineer Manson, Finance Director Ballenger, Associate City Planner Bodmer, 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, Police Captain Rechtzigel, Human Resources Manager Strauss, Fire Chief Wassmund, and Crime Prevention Specialist Walter. Mayor Hamann-Roland called the meeting to order at 8:00 p.m. Everyone took part in the Pledge of Allegiance to the flag led by Boy Scout John Hannasch, of Troop 207. APPROVAL OF AGENDA MOTION: of Erickson, seconded by Grendahl, removing items 4.J – Adopt Resolution Setting Public Hearing for Vacation of Portion of Fontana Trail Public Right-of- Way, at the request of the petitioner, and item 5.C.7 – Resolution Awarding Contract for Project 05-305, Village at Founders Circle Utility and Street Improvements, and 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 Mayor Hamann-Roland asked if the Council or anyone in the audience wished to pull any item from the consent agenda. Councilmember Grendahl expressed concern regarding the safety conditions of some manufactured homes and asked if the request to transfer CDBG funds from the Commercial Rehabilitation Program to the Mobile Home Replacement Program addresses safety concerns. CITY OF APPLE VALLEY Dakota County, Minnesota July 13, 2006 Page 2 Mr. Lovelace stated the Dakota County Community Development Agency (CDA) administers the program on the City’s behalf. He further stated various requirements regarding the home, including the year manufactured, must be met in order to qualify for the loan. Councilmember Grendahl requested staff provide additional information in the future regarding the utilization of the Mobile Home Replacement Program. MOTION: of Grendahl, seconded by Bergman, adding item 4.T - Approve Issuance of Alimagnet Party Permit for Reddy Gottipolu on July 15, 2006, and 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 June 22, 2006, as written. Ayes - 4 - Nays - 0 - Abstain - 1 (Goodwin). Resolution No. 2006-105 MOTION: of Grendahl, seconded by Bergman, adopting accepting, with thanks, the donation of $2,000.00 from Gregory and Robert Kelley for a park bench and trees in Kelley Park. Ayes - 5 - Nays - 0. Resolution No. 2006-106 MOTION: of Grendahl, seconded by Bergman, adopting accepting, with thanks, the donation of $1,000.00 from Sam’s Club Foundation for the Police Department Canine Program. Ayes - 5 - Nays - 0. Resolution No. 2006-107 MOTION: of Grendahl, seconded by Bergman, adopting accepting, with thanks, the donation of $500.00 from Dakota Electric Association for use by the Parks and Recreation Department Safety Camp. Ayes - 5 - Nays - 0. Resolution No. 2006-108 MOTION: of Grendahl, seconded by Bergman, adopting accepting, with thanks, the donation of $437.08 from David and Julie Lee for a park tree. Ayes - 5 - Nays - 0. Resolution No. 2006-109 MOTION: of Grendahl, seconded by Bergman, adopting accepting, with thanks, the donation of $200.00 from Ann Nordness for lifeguard training equipment. Ayes - 5 - Nays - 0. Resolution No. 2006-110 MOTION: of Grendahl, seconded by Bergman, adopting accepting, with thanks, the donation of a 1987 Honda Accord, valued at $1,000.00, from Mark Jensen, 309 Walnut Lane, for use by the Fire Department in training. Ayes - 5 - Nays - 0. Resolution No. 2006-111 MOTION: of Grendahl, seconded by Bergman, adopting accepting, with thanks, the donation of a two park benches, valued at $590.00, from Jeff and Debbie Childs, for Findlay Park. Ayes - 5 - Nays - 0. CITY OF APPLE VALLEY Dakota County, Minnesota July 13, 2006 Page 3 Resolution No. 2006-112 MOTION: of Grendahl, seconded by Bergman, adopting approving issuance of a lawful gambling exempt permit, by the State Gambling Control Board, to Apple Valley Rotary Scholarship Foundation, for use on September 9, 2006, and waiving any waiting period for State approval. Ayes - 5 - Nays - 0. MOTION: of Grendahl, seconded by Bergman, setting a public hearing on August 10, 2006, at 8:00 p.m., on the application for Currency Exchange License by Sam’s West, Inc., d/b/a Sam’s Club #4736, 7500 – 145th Street W. Ayes - 5 - Nays - 0. MOTION: of Grendahl, seconded by Bergman, approving the Community Development Director Position Profile as attached to the City Administrator’s memo dated July 10, 2006; and approving retaining The Brimeyer Group for Phase II of the proposal dated April 21, 2006, at a cost not to exceed $8,000 plus expenses. Ayes - 5 - Nays - 0. MOTION: of Grendahl, seconded by Bergman, approving the ALF Ambulance 2007 Budget, as recommended by the ALF Ambulance Board. Ayes - 5 - Nays - 0. Resolution No. 2006-113 MOTION: of Grendahl, seconded by Bergman, adopting approving the final plat of DeVos Addition, waiving the requirement for a development agreement, and authorizing the Mayor and City Clerk to sign the same. Ayes - 5 - Nays - 0. Resolution No. 2006-114 MOTION: of Grendahl, seconded by Bergman, , adopting approving the final plat and Subdivision Agreement for Eastwood Ridge 2nd Addition, and authorizing the Mayor and City Clerk to sign the same. Ayes - 5 - Nays - 0. Resolution No. 2006-115 MOTION: of Grendahl, seconded by Bergman, adopting ordering the City Engineer to prepare a preliminary report for Project 06-331, Southeast Trunk Water Main. Ayes - 5 - Nays - 0. Resolution No. 2006-116 MOTION: of Grendahl, seconded by Bergman, adopting approving specifications for Project 06-330, Interior Coating and Exterior Cleaning of Valleywood Reservoir, and authorizing advertising for receipt of bids, at 2:00 p.m., on August 3, 2006. Ayes - 5 - Nays - 0. MOTION: of Grendahl, seconded by Bergman, approving an Agreement for Nora Flooring at Hayes Park Arena with Becker Arena Products, in the amount of $24,795.00, and authorizing the Mayor and City Clerk to sign the same. Ayes - 5 - Nays - 0. CITY OF APPLE VALLEY Dakota County, Minnesota July 13, 2006 Page 4 MOTION: of Grendahl, seconded by Bergman, approving retaining Elert & Associates for telecommunications systems consulting services, as described in the proposal dated June 26, 2006, in the amount of $18,390.00. Ayes - 5 - Nays - 0. MOTION: of Grendahl, seconded by Bergman, approving the contract with Popp.com for month-to-month long distance telephone services as attached to the Assistant City Administrator’s memo dated June 28, 2006; and authorizing the City Administrator to sign the same. Ayes - 5 - Nays - 0. MOTION: of Grendahl, seconded by Bergman, approving Change Order No. 1 to the contract with McNamara Contracting, Inc., for Project 05-307, 2006 Street Maintenance, in the amount of $22,180.60. Ayes - 5 - Nays - 0. Resolution No. 2006-117 MOTION: of Grendahl, seconded by Bergman, adopting awarding the contract for Project 04-275, Eastwood Ridge 2nd Addition Utility and Street Improvements, to Ryan Contracting Company, the low bidder, in the amount of $423,281.30. Ayes - 5 - Nays - 0. Resolution No. 2006-118 MOTION: of Grendahl, seconded by Bergman, adopting awarding the contract for Project 04-277, Well No. 19 Pumping Facility, to Rice Lake Construction Group, the low bidder, in the amount of $322,630.00. Ayes - 5 - Nays - 0. Resolution No. 2006-119 MOTION: of Grendahl, seconded by Bergman, adopting awarding the contract for Project 06-319, Southview Reservoir Site Improvements, to Wickenhauser Excavating, Inc., the low bidder, in the amount of $47,500.00. Ayes - 5 - Nays - 0. MOTION: of Grendahl, seconded by Bergman, accepting Project 02-196, Legacy Village North Utility and Street Improvements, as final and authorizing final payment on the contract with Frontier Construction Company, in the amount of $17,390.24. Ayes - 5 - Nays - 0. MOTION: of Grendahl, seconded by Bergman, approving release of the subdivision financial guarantee for Questar Educational Systems II, as listed in the Community Development Secretary’s memo dated July 10, 2006. Ayes - 5 - Nays - 0. MOTION: of Grendahl, seconded by Bergman, approving a billable rate of $42.00 per hour for off-duty police officers, as described in Police Captain Marben’s memo dated June 21, 2006. Ayes - 5 - Nays - 0. MOTION: of Grendahl, seconded by Bergman, approving hiring the part-time and seasonal employees, as listed in the Personnel Report dated July 13, 2006. Ayes - 5 - Nays - 0. CITY OF APPLE VALLEY Dakota County, Minnesota July 13, 2006 Page 5 MOTION: of Grendahl, seconded by Bergman, authorizing issuance of a party permit to Reddy Gottipolu, 4131 Oakbrook Curve, Eagan, Minnesota, for a picnic at Alimagnet Park Pursuant to City Code Section 95.03 (G)(1), valid on July 15, 2006. Ayes - 5 - Nays - 0. END OF CONSENT AGENDA HOFFARTH SUNROOM VARIANCE Ms. Bodmer reviewed the Planning Commission’s recommendation on building coverage variance and a side yard setback variance, at 5949 – 126th Street W. The variances are requested in order to construct an 8- by 22-foot sunroom. Since the Planning Commission meeting, staff realized the total building area was misrepresented to the Planning Commission. The property is zoned PD- 315 which has a 20 percent maximum building coverage requirement. Staff mistakenly stated that the 20 percent requirement was for all impervious surfaces including buildings, driveways, sidewalks, etc., not for building coverage only. The Planning Commission was told that the Hoffarth property would have 40 percent total impervious surface area and 20 percent was the maximum allowed by the ordinance. Ms. Bodmer explained to the Council that the total building area including the proposed sunroom is 29 percent. The existing building area on the lot is 27 percent, 7 percent above the maximum allowed. With the sunroom addition, the total impervious surface area including all buildings, driveways, and sidewalks would be 40 percent. Although this zoning district does not identify a maximum impervious surface area, the maximum impervious surface area in a typical “R-3” district is 35 percent. The petitioner is willing to construct a rain garden which would provide enough infiltration to make up for the 9 percent building coverage area overage. Councilmember Erickson questioned how it came to pass that the existing structure exceeds the maximum building area for the planned development. Ms. Bodmer said the size of a previous addition was not calculated for the planned development. Processes have since been put into place to ensure building coverage areas are reviewed. Councilmember Erickson said the survey indicates the petitioner’s fence is 7.1 feet on the adjacent property. Ms. Bodmer said the fence location and the previous addition were completed by previous owners. Councilmember Bergman questioned the use of support posts and whether the runoff would impact the neighboring property. Ms. Bodmer stated it is not uncommon for three-season porches or similar structures to be constructed on posts. Mr. Heuer said because of the slope on this side of the home, rain will drain away from the home with or without the sunroom addition. Councilmember Grendahl asked if there have been any comments from the neighbors. Ms. Bodmer stated no public comments have been received. Mr. Mathias Hoffarth, the property owner, said his neighbors have not expressed any concerns. CITY OF APPLE VALLEY Dakota County, Minnesota July 13, 2006 Page 6 MOTION: of Goodwin, seconded by Erickson, returning to the Planning Commission for review the building coverage and side yard setback variance requests for a sunroom addition at 5949 – 126th Street, due to corrected figures regarding total building coverage. Ayes - 5 - Nays - 0. L.A. FITNESS CENTER Mr. Lovelace reviewed the revised building elevations for L.A. Fitness Center, a 45,050 square foot health club to be located at the southwest corner of 151st Street W. and Galaxie Avenue. The rezoning, preliminary plat, and site plan/building permit authorization were approved at the Council meeting of June 22, 2006. At that time, Council requested additional details regarding the proposed sports graphics depicted on the east, west, and south building elevations. Details regarding the graphic panels and photos were submitted. The sports arts graphic panels are 7- by 8-feet. The graphics are applied to the face of a glass panel, enclosed in an aluminum cabinet, and are internally lit. Councilmember Bergman said he likes the business but is not a fan of the graphic panels and does not believe they have the appropriate curb appeal. He has the most concern for the east elevation because of its high visibility on Galaxie Avenue. He is also concerned the white border of the panels may show dirt. He likes the north elevation which does not have any graphic panels. Councilmember Erickson stated he likes the graphics better after seeing the samples. Mr. Gary Collins, L.A. Fitness representative, and Eric Thom, Continental Properties Company, were present to speak. Mayor Hamann-Roland stated she would like the building to have a presence which keeps with the community and asked the applicant if they would consider duplicating the center feature as depicted on the south elevation drawing on the east side of the building. Mr. Thom described the reasons why L.A. Fitness prefers the design in the drawings presented. In addition, the east side of the building is not as long as the south side and an additional exit is being planned on the east side of the building. Councilmember Goodwin stated he likes the look of the north elevation the best. He further stated he likes the business, but does not like the sports graphic panels either. Mr. Thom identified other locations where L.A. Fitness is installing the graphic panels. He stated the graphics are intended to add interest to the façade of a very big building. Councilmember Grendahl asked the applicant if they would move forward if the Council did not accept the graphics. CITY OF APPLE VALLEY Dakota County, Minnesota July 13, 2006 Page 7 Mr. Collins said they would request the item be tabled. Mayor Hamann-Roland asked about using Spandrel glass in the middle section of the east elevation. The Council discussed various revisions to the east elevation drawing, including an aluminum paned or sectioned Spandrel glass as originally presented to the Planning Commission. Councilmember Erickson expressed concern over having a large section of unlit glass, and noted it may make the east side of the building appear dark. MOTION: of Goodwin, seconded by Grendahl, approving the revised north, south, and west building elevations for L.A. Fitness Center, located on Lots 3 and 4, Block 1, Apple Valley Ford 2nd Addition, as presented, and further approving the east building elevation provided the two sports arts graphic panels located in the middle of the building are replaced with Spandrel glass, and further allowing for installation of 7- by 8-foot sports arts graphic panels, subject to conditions. Ayes - 4 - Nays - 1 (Erickson). THE VILLAGE AT FOUNDERS CIRCLE Ms. Dykes reviewed the request by Founders Circle Development, LLC, to vacate three easements located on Outlots B and C, Harmony Commons Addition. The outlots are currently vacant. The vacations are necessary in order for the property to be platted so construction may begin on various buildings in The Village at Founders Circle development and for the construction of Founders Boulevard. The City Engineer and City Attorney have reviewed the requests. Mayor Hamann-Roland called the public hearing to order, at 9:03 p.m., to consider the vacation of three easements located on Outlots B and C, Harmony Commons Addition, and noted receipt of the affidavit of publication of the hearing notice. The Mayor asked for questions or comments from the Council and the public. There were none and the hearing was declared closed at 9:04 p.m. Resolution No. 2006-120 MOTION: of Erickson, seconded by Bergman, adopting completing vacation of the drainage and utility easements, access restriction easement, and easement on Outlots B and C, Harmony Commons Addition, and authorizing filing the Notice of Completion with Dakota County. Ayes - 5 - Nays - 0. Ms. Dykes said the next item is the resolution approving the final plat, planned development agreement, and development agreement and for Village at Founders Circle Addition. The plat consists of five lots and one outlot located southwest of 152nd Street W. and Galaxie Avenue. The developer has recently informed staff that the residential units in the building on the triangle CITY OF APPLE VALLEY Dakota County, Minnesota July 13, 2006 Page 8 piece of property will be sold as apartments and not condominiums. The exterior of the building, the plaza area, and the parking ramp will remain the same. Only the interior units will change. There will be fewer studios and more one- and two-bedroom units. The total number of bedrooms will remain the same. Councilmember Grendahl asked how many rental units will be in this building. Ms. Dykes said 197. Councilmember Grendahl stated she thought the vision for Central Village was to be owner- occupied housing. She asked if the applicant ever marketed the condos. Mr. Eric Pederson, of Pederson Ventures, was present. He said they did not market the condos. Some preliminary steps were taken, but the condo product was abandoned due to changing market conditions and the upcoming Metropolitan Council grant deadline. Up until February of this year, it was their intent to build for-sale condominiums. He said they got caught in a changing market. In order to keep the project moving forward and based on comments from lending institutions, it was decided to change to a rental product. Councilmember Grendahl commented on the multiple delays surrounding this project and questioned why Pederson Ventures did not start marketing their product two years ago when the initial plan was presented to the City. Mr. Pederson stated the development has changed significantly in the last two years. They have a new architect and a different product. He said it is important to note approximately 40 percent of the condos would likely have been investor units or rentals as well. He further said it is Pederson Venture’s intention to convert the rentals to private ownership when the market permits. Mayor Hamann-Roland asked if they could build condominiums and rent them. Mr. Pederson said they could. The original concern was financing. However, after recent conversations with the lenders, it appears it may be possible to build condominiums and rent them now, with plans to convert them to owner-occupied units in the future. Councilmember Goodwin said he is also disappointed with the change to rental units. The Council had a vision for that area. He questioned if the change to rental units would change the types of retail businesses. He also asked why the Council did not learn of the proposed change in plans until the first week in July if the developer knew it was changing its plans in February. Mr. Pederson said he appreciated the Council’s concerns. Pederson Ventures did not intend to provide a rental product in this building. In order to meet the deadline for the Metropolitan Council grant and to secure lending, the units need to be rental. He further said they will plat the apartments as condos, using a 3-D plat. That way they will be able to sell the units in the future if the market changes. He noted other areas are identified to be owner-occupied units. CITY OF APPLE VALLEY Dakota County, Minnesota July 13, 2006 Page 9 Mayor Hamann-Roland asked if they could get a cooperative. Mr. Pederson said he did not know enough about cooperatives but doubted it was an option considering the current time constraints. Councilmember Bergman expressed dissatisfaction in being asked to tour a condo product in Stillwater last May when, based on comments made earlier this evening, the developer knew in February the market was changing and they were not going to be selling condominiums. He then said the Council is currently dealing with various rental issues, which have an impact on the City’s budget. Adding 197 more rental units means additional police officers, rental coordinators, etc. Councilmember Erickson said he shared the other councilmembers’ sentiments regarding the change to rental housing. He commented on how the building, parking ramp, and hotel are tied together. He then asked what the difference is between rented condos and apartments. Mr. Pederson said there is absolutely no difference. However, should the market improve for owner-occupied sales, converting to condominiums will be easier if they are platted as condos rather than apartments. Councilmember Grendahl said if the project is not contributing to the area like the Council wants, she does not want to move forward with it, even if it means losing the grant dollars. She asked if it was possible to proceed with just the hotel. Mr. Pederson said the hotel is contingent on the plat. The plat is contingent on the developer putting several large securities in place. The developer needs to decide whether it is willing to make that type of investment just to proceed with the hotel. Councilmember Goodwin asked for clarification on the differences between condos and rental units. Mr. Dougherty said the main difference is documentation. The facilities would operate similarly. Mr. Pederson said they were still working as late as April or May to proceed with the condos. If it were not for the grant, they would wait until next spring to proceed. Mayor Hamann-Roland asked if they could just build the parking lot. Mr. Pederson said no. Councilmember Bergman voiced concern that the whole project may end up rental. Councilmember Grendahl said she thought the rental market has been weak, and asked what has changed. Mr. Pederson said interest rates have gone up, which makes rental units more attractive. CITY OF APPLE VALLEY Dakota County, Minnesota July 13, 2006 Page 10 Councilmember Grendahl questioned whether the change in type of housing the developer is proposing would have had an impact the grant application. Mr. Lawell stated he believed the application called out the number of one-, two-, and three-bedroom units. Mayor Hamann-Roland called a recess at 9:34 p.m. Mayor Hamann-Roland resumed the meeting at 9:54 p.m. Mayor Hamann-Roland said she preferred the units being built as condominiums, so they have the potential to be sold later, rather than being built strictly as apartments. She asked if the Council could call out other buildings within the development that would be owner-occupied. Mr. Dougherty said the Council can call out which buildings are condominiums in the planned development agreement. The Council discussed requiring buildings 1, 2, 5, and 7, as shown in the master plan, to be owner-occupied condos. Mr. Pederson was open to that suggestion. Councilmember Erickson asked if the condos could be rented in buildings 1, 2, 5, and 7. Mr. Dougherty said they could not be rented if the Council required them to be owner-occupied condos. Councilmember Erickson asked if it would not be more difficult to market them if they could not be rented. Mr. Dougherty stated it is difficult to monitor whether a unit is being occupied by a renter or owner. Councilmember Bergman questioned whether the financing package would allow a certain number of units to be rentals and the remaining units to be owner occupied within the triangle. Mr. Pederson said he did not know but did not believe so. Councilmember Bergman asked what type of retail shops the developer anticipates occupying the first level. Mr. Pederson said they are looking at a bank and two restaurants to anchor the three corners, with various service shops in between. Councilmember Goodwin asked for clarification regarding platting the building as condos. Mr. Pederson said they will use a 3-D plat. Each individual unit would have its own parcel identification. CITY OF APPLE VALLEY Dakota County, Minnesota July 13, 2006 Page 11 Mr. Dougherty further described the advantages of the 3-D platting Mr. Pederson was describing. Councilmember Bergman said he still has concerns regarding the rental issue. Mr. Pederson said they understand more today regarding multi-family housing and crime prevention. They met with members of the Police Department in order to identify and mitigate some of these potential problems. He called out various things they were willing to do to help deter crime and improve safety. Ms. Dykes said those items can be a requirement of the planned development agreement. Councilmember Bergman said the information regarding multi-family housing and crime prevention should have been provided to the Council in their packets. Mr. Pederson stated Pederson Venture representatives just met with the Police Department today. Councilmember Bergman said the Council is getting this information too late. Councilmember Goodwin said contrary to what he was told earlier, there is a difference between owner-occupied condominiums and rental units. Mr. Dougherty described the differences in the two. Mr. Pederson apologized for not clarifying the ownership and operations differences between condominiums and rental units. Councilmember Grendahl asked how many rental units are going in at Tuscany. Ms. Dykes said 244 units. Councilmember Grendahl commented that Pederson Ventures was before the Council two weeks ago and did not mention the change in plans presented this evening. She said the lack of communication causes her concern. She said she feels there are too many changes to the project to consider it this evening. MOTION: of Grendahl, seconded by Bergman, tabling consideration of the resolution approving final plat, development agreement, and planned development for Village at Founders Circle Addition until the next Council. Ayes - 3 - Nays - 2 (Erickson, Hamann-Roland). COUNCIL COMMUNICATIONS Mayor Hamann-Roland reminded everyone of the water restrictions currently in place. CITY OF APPLE VALLEY Dakota County, Minnesota July 13, 2006 Page 12 Councilmember Erickson requested Council address the topic of throwing candy at the Fourth of July parade at an informal meeting. 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 July 10, 2006, 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 June 28, 2006, in the amount of $1,782,611.50; July 5, 2006, in the amount of $374,490.09, and July 13, 2006, in the amount of $2,190,002.28. Ayes - 5 - Nays - 0. MOTION: of Grendahl, seconded by Bergman, to adjourn. Ayes - 5 - Nays - 0. The meeting was adjourned at 10:26 o’clock p.m.