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HomeMy WebLinkAbout11/26/1985CITY OF APPLE VALLEY Dakota County, Minnesota November 26, 1985 Minutes of the regular meeting of the City Council of Apple Valley, Dakota County, Minnesota, held November 26th, 1985, at 8:00 o'clock p.m. at City Hall. PRESENT: Mayor Branning; Councilmembers GoodwIn, Holton, Humphrey and Savanick; City Administrator Asleson and City Clerk Mueller. ABSENT: None. Mayor Branning called the meeting to order at 8:00 p.m. The Councitmembers and everyone in attendance took part in the pledge of allegiance to the flag. MOTION: of Holton, seconded by Humphrey, approving the agenda for to- night's meeting as amended. Ayes - 5 - Nays - O. APPROVE AGENDA CONSENT AGENDA MOTION: of Holton, seconded by Savanick, approving all items on the con- sent agenda with no exceptions. Ayes - 5 - Nays - 0. CONSENT AGENDA ITEMS MOTION: of Holton, seconded by Savanick, adopting Resolution No. 1985- RES. 1985-216 216 authorizing the installation of various stop signs in the VARIOUS STOP City and the removal of the stop sign at the intersection of SIGNS Galaxie Avenue, southbound, at 127th Street. Ayes - 5 - Nays - 0. MOTION: of Holton, seconded by Savanick, approving agreements with First BOND REGISTRAR Trust Company of st. Paul relating to paying agency, registrar AGREEMENTS and transfer agency services for $2,165,000 Improvement Bonds and $920,000 Tax Increment Bonds of 1985, Series B, and auth- orizing the Mayor and Clerk to sign the same. Ayes - 5 - Nays - 0. MOTION: of Holton, seconded.by Savanick, approvinghiring Maintenance I employees, at salaries of $8.14 per hour Mark Weimelt in For- estry effective December 2, 1985, and Dean Jacobson in Streets effective December 16, 1985. Ayes - 5 - Nays - O. HIRE MIqTC. I EMPLOYEES NOV. 14, 1985 MINUTES AUDIENCE DISCN. RES. 1985-217 MET. DEV. & INVESTMENT FRAMEWORK REV. END OF CONSENT AGENDA MOTION: of Goodwin, seconded by Holton, approving the minutes of the regular meeting of November 14th, 1985, as written. Ayes - 4 - Nays - 0 (SavanickAbstained). Mayor Branning asked if anyone was present to address the Council at this time on any item not on this meeting's agenda. There was no one present to speak. MOTION: of Holton, seconded by Goodwin, adopting Resolution No. 1985- 217 responding to the Metropolitan Development and Investment Framework working document, prepared by the Metropolitan Council, requesting revision.so the area of Apple Valley served by the Central Sanitary Sewer Trunk will continue to be within the "Metropolitan Urban Service Area". CITY OF APPLE VALLEY Dakota County, Minnesota November 26, 1985 Page 2 Mr. Gretz said he and Mr. Kelley will be meeting with Metropolitan Council staff and try to resolve this request. If the revision is not made, this resolution will be presented at the public hearing. Vote was taken on the motion. Ayes - 5 - Nays - 0. MOTION: of Goodwin, seconded by Savanick, authorizing the City Attorney to proceed with legal action concerning questions of past um- brella liability insurance coverages and the costs associated with those coverages. LEGAL ACTION UMBRELLA LIAB. INSURANCE Mr. Sheldon reviewed his letter dated October 10, 1985, concerning the insurance matter. He has been in contact with the agent and insurance company and it appears the City is entitled to the coverage, but it has not been resolved. He believes it is necessary to start a lawsuit to obtain coverage for January of 1985 and an increased amount for February through May of 1985. Councilmember Savanick asked how much the City will sue for? Mr. Sheldon said the action will be for damages to provide coverage for the time periods involved, re- instatement of coverages and damages for misrepresentation due to the fact the City paid the premium and believed it was covered. Councilmember Humphrey said if the Council intends to discuss the litigation further, he believes this should be done at a closed meeting and he would like to have such an attorney/client meeting to discuss the various types of litigation that could be pursued. Vote was taken on the motion. Ayes - 4 - Nays - 1 (Humphrey). Mayor Branning asked Mr. Sheldon if an attorney/client meeting is necessary? Mr. Sheldon said the Council has the authority to set such a meeting to discuss the litigation. He will draft the paperwork for the litigation for the Council to review. The Council received the City Administrator's memo dated November 22, CENTRAL GARAGE 1985, concerning financing the Central Garage improvements. Steve IMPROVEMENT Mattson and Steve Fenlon, of Juran & Moody, were present to discuss the FINANCING matter with the Council. Mr. Asleson said the amount being considered for the improvements is $1,700,000 which includes the Equipment Storage Facility. He distributed copies of his memo dated November 25, 1985, which corrects the amount computed as average annual rent to a total of $194,052. Of this amount, 30 percent could be considered for funding by the Utility Fund and the balance would be paid by the General Fund and is subject to levy limits. Steve Mattson said lease-purchase financing is being considered for this project. This is a new concept in Minnesota, but it has been done often in other states. The legal complications in Minnesota are still being looked into particularly be- cause it is an expansion of an existing facility. Mr. Asleson said one question is the security involved because he doesn't believe the City can grant a security interest to another party in something the City already owns. Steve Fenlon said another question is whether the project would be subject to real estate taxes and they are trying to get an opinion from the County Assessor and County Attorney on it. CITY OF APPLE VALLEY Dakota County, Minnesota November 26, 1985 Page 3 Mr. Fenlon said the City could use its funds for the improvements and hold the lease money for six months or so until it becomes comfortable with the repayment schedule. Mr. Mattson said there would be a call date on the financing and pre- payment would be like any other bond issue. Another option the City has is to hold the money it has reserved for the project, invest it and use the interest to offset the lease payments, Mr. Sheldon described his understanding of the transaction which is basically a two-tiered lease. The City would lease the garage to Juran & Moody. Juran & Moody would lease it back to the City, provide the capital for improvements and the City would construct the improvements and repay Jhran & Moody. The lease establishes the City's obligation to repay the funds. Mr. Asleson said, in his opinion, if the project would be subject to real estate taxes, the City should not proceed. Mr. Fenlon agreed, but said this has been done in many other states and has not been taxable and doesn't believe this will be either. Mr. Asleson said no action is needed by the Council at this time ex- cept an indication of whether to continue working toward this lease-purchase concept. The Council generally concurred with the concept. Mr. Mattson said one concern he has is that because law changes next year are un- known, the City should probably try to proceed with the financing arrangements this year if it wants to go ahead with this method. Councilmember Savanick expressed concern about maintaining the capital reserve and asked how financing a water treatment plant fits into the picture. Mr. Asleson said it will be up to the Council to make a decision to maintain the amount or ac- knowledge that it will be used for another project. If it is, the iease payments will need to be funded by the City within levy limits. Construction of a water treatment plant will also have to be addressed and a determination made to finance it by taxes or water billings. Mr. Mattson said if improvements for the garage can be financed by lease-purchase, a water treatment plant can be done also. MOTION: of Savanick, seconded by Goodwin, approving a special use permit for Donald E. Newcomb, d/b/a Metro Tree Co., Inc., to sell Christmas Trees in the parking lot at Kmart from November 29 to December 24, 1985. Ayes - 5 - Nays - 0. MOTION: of Goodwin, seconded by Savanick, passing Ordinance No. 352 amending Chapter 10 of the City Code by readopting Article III providing for licensing and regulating of filling stations in the City. Ayes - 5 - Nays - 0. MOTION: of Savanick, seconded by Humphrey, authorizing Councilmembers Goodwin and Holton and Parks & Recreation Director, Jon Gurban, to attend the National League of Cities Convention in Seattle, Washington from December 7 to 11, 1985. Ayes - 5 - Nays - 0. MOTION: of Savanick, seconded by Goodwin, approving hiring Ty Eigner as a parttime Arena employee at a salary of $3.50 per hour. Ayes - 5 - Nays - 0. SPECIAL USE CHRISTMAS TREE SALES ORDINANCE 352 FILLING STN. LICENSING NLC CONFERENCE ATTENDANCE HIRE PARTTIME EMPLOYEE CITY OF APPLE VALLEY Dakota County, Minnesota November 26, 1985 Page 4 MOTION: of Holton, seconded by Goodwin, approving Change Order No. 1 to the contract with Balco Building Systems, Inc., for the Equipment Storage Building, in the amount of a $2,635.00 de- duction related to excavation work. Ayes - 5 - Nays~- 0. CHANGE ORDER 1 EQUIP. STORAGE BUILDING CH DEVELOPMENT P.D. RELEASE CANCEL INFORMAL MEETING CLAIMS & BILLS MOTION: of Holton, seconded by Goodwin, approving a "Release from Agreement Concerning Planned Unit Development by CH Develop- ment, Inc." related to a December 6, 1972, agreement for property in part of Section 28, and authorizing the Mayor and Clerk to sign the same. Ayes - 5 - Nays - 0. MOTION: of Savanick, seconded by Branning, cancelling the informal meeting of December 5, 1985. Ayes - 5 - Nays - 0. MOTION: of Savanick, seconded by Holton, to pay the claims and bills, checks numbered 31098, 46009 through 46012, 46014 through 46085 and 46095 through 46181, in the total amount of $6,721,270.26. Ayes - 5 - Nays - 0. MOTION: of Savanick, seconded by Holton, to adjourn. Ayes - 5 - Nays - 0. The meeting was adjourned at 9:50 o'clock p.m.