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Home My WebLink About12/30/1985CITY OF APPLE VALLEY Dakota County, Minnesota December 30, 1985 Minutes of the regular meeting of the City Council of Apple Valley, Dakota County, Minnesota, held December 30th, 1985, at 8:00 o'clock p.m. at City Hall. PRESENT: Mayor Branning; Councilmembers Goodwin, Holton, Humphrey (attended at 8:11 p.m.) and Savanick; City Administrator Asleson and City Clerk Mueller. ABSENT: None. Mayor Branning called the meeting to order at 8:04 p.m. The Councilmembers and everyone in attendance took part in the pledge of allegiance to the flag. MOTION: of Savanick, seconded by Holton, approving the agenda for to- night's meeting as amended. Ayes - 4 - Nays - 0. APPROVE AGENDA MOTION: of Goodwin, seconded by Holton, approving all items on the eon- CONSENT AGENDA sent agenda with no exceptions. Ayes - 4 - Nays - 0. CONSENT AGENDA ITEMS MOTION: of Goodwin, seconded by Holton, adopting Resolution No. 1985- 234 granting a waiver of platting for part of the Northwest Quarter of Section 36, subject to restricting issuance of any building permit without further approval, as recommended by the Planning Commission. Ayes - 4 - Nays - 0. RES. 1985-234 PLAT WAIVER SEC. 36 RES. 1985-235 LIQUOR FUND TRANSFER RES. 1985-236 POLICE FUND TRANSFER RES. 1985-237 WRITE OFF CHECKS PLANNING COM. GARAGE IMPR. COMMENTS PLANNING COM. RESERVOIR LOTS SALE COMMENTS 1986 LICENSES & PERMITS MOTION: of Goodwin, seconded by Nolton, adopting Resolution No. 1985- 235 transferring $100,000 from the Liquor Fund (26) to the General Fund (01) effective December 31,1985. Ayes - 4 - Nays - 0. MOTION: of Goodwin, seconded by Holton, adopting Resolution No. 1985- 236 transferring $57,762.62 from the Police Fund (06) to the General Fund (01). effective December 31, 1985. Ayes - 4 - Nays - 0. MOTION: of Goodwin, seconded by Holton, adopting Resolution No. 1985- 237 writing off, as uncollectible, insufficient fund checks in the total amount of $738.24. Ayes - 4 - Nays - 0. MOTION: of Goodwin, seconded by Holton, receiving the Planning Com- mission's resolution dated December 18, 1985, finding that the proposed lease financing for improvements to the Public Works Garage is in conformance with the Comprehensive Plan. Ayes - 4 - Nays - 0. MOTION: of Goodwin, seconded by Holton, receiving the Planning Com- mission's resolution dated December 18, 1985, finding that the proposed sale of Lots 6 and 7, Block 13, Apple Valley Third Addition is in conformance with the Comprehensive Plan. Ayes - 4 - Nays - 0. MOTION: of Goodwin, seconded by Holton, approving various licenses and permits for 1986 as shown on the list dated December 30, 1985. Ayes - 4 - Nays - 0. CITY OF APPLE VALLEY Dakota County, Minnesota December 30, 1985 Page 2 MOTION: of Goodwin, seconded by Holton, approving hiring the parttime employees as listed in the memo from the City Administrator dated December 23, 1985. Ayes - 4 - Nays - O. HIRE PARTTIME EMPLOYEES DEC. 19, 1985 MINUTES AUDIENCE DISCN. END OF CONSENT AGENDA MOTION: of Goodwin, seconded by Savanick, approving the minutes of the special meeting of December 19th, 1985, as written. Ayes - 3 - Nays - 0 (Holton Abstained). Mayor Branning asked if any one 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. Mr. Asleson reviewed the draft ordinance amending the City's personnel plan as attached to his memo dated December 26, 1985. The amendments relate to adding Martin Luther King's birthday as a holiday, overtime payment for hours worked on holidays, pro rata payment of benefits for permanent parttime employees and providing a 24-hour waiting period, instead of the present 40 hours, for injury on duty benefits. (Councilmember Humphrey attended during this time.) MOTION; of Goodwin, seconded by Holton, passing Ordinance No. 353 amending Chapter?i6 of the City Code related to employee holi- days, vacation leave, sick leave, group insurance and injury on duty benefits. Ayes - 5 - Nays - 0. ORDINANCE 353 AMEND CHAP. 16 PERSONNEL CODE Mr. Asleson reviewed the draft resolution attached to his memo dated December 26, 1985, detailing the 1986 pay plan. It includes increasing all pay ranges by four percent for fulltime employees except members of AFSCME ahd LELS bargaining units. He noted it will likely be necessary to make amendments to the plan dur- ing the year to implement comparable worth. Mayor Branning said regardless of what changes result from comparable worth, he would like to see a performance evaluation system implemented to encourage and reward employees. MOTION: of Goodwin, seconded by Humphrey, adopting Resolution No. 1985- 238 adopting the City's 1986 Personnel and Pay Plan effective January 4, 1986, as detailed in the booklet dated December 26, 1985. Ayes - 5 - Nays - 0. RES. 1985-238 1986 PERSONNEL & PAY PLAN George Ballenger distributed a memo dated December 30, 1985, concerning insurance for the City. Only one quotation for liquor liability insurance has been re- ceived and no other quotes are.available. CNA will be submitting a quote for other insurance, but it will not be submitted until January 6, 1986. Home Insur- ance has agreed to extend current coverage through January 9, 1986, to allow the Council to consider it. The umbrella coverage, however, will not be extended and the City will be without this coverage for nine days. Mark Flaten was pre- sent to answer questions and also said his recommendation for future policies is to extend expiration dates to February 1st in future years to avoid end of the year timing problems. CITY OF APPLE VALLEY Dakota County, Minnesota December 30, 1985 Page 3 MOTION: of Goodwin, seconded by Holton, awarding the City's liquor lia- bility insurance to Transcontinental (CNA) through Apple Valley Insurance Agency effective January 1, 1986, at an annual pre- mium of $19,700. Ayes - 5 - Nays - 0. LIQUOR LIABILIT5 INSURANCE EXTEND HOME INSURANCE CONTRACT MOTION: of Humphrey, seconded by Holton, authorizing extension of the Home Insurance Company contract through 12:.01 a.m. on January 10, 1986, at current rates, conditions and terms. It was noted this policy has a $500,000 limit. The maximum tort liability under State law is $600,000 and without umbrella coverage, the City would have $100,000 exposure during thenine days. Vote was taken on the motion. Ayes - 5 - Nays - 0. MOTION: of Humphrey, seconded by Savanick, authorizing Staff to acquire up to $6,000,000 of umbrella liability insurance from any source available to provide coverage through 12:01 a.m. on January 10, 1986. Ayes - 5 - Nays - 0. PURSUE UMBRELLA INSURANCE RES. 1985-239 REIMBURSE A.V.A.E.D. RES. 1985-240 PLANS & BIDS PROJ. 85-226 MOTION: of Holton, seconded by Goodwin, adopting Resolution No. 1985- 239 authorizing payment of $5,000 to Apple Valley Area Economic Development Corporation for reimbursement of promotional work for the City. Ayes - 5 - Nays - 0. MOTION: of Holton, seconded by Goodwin, adopting Resolution No. 1985- 240 approving plans and specifications for Project 85-226, The Oaks of Apple Valley III Utilities, and authorizing advertise- ment for bids to be received at 2:00 p.m. on February 4, 1986. Ayes - 5 - Nays - 0. Mr. Asleson reviewed State law provisions related to dram shop insurance and the exclusion allowed for licensees selling only 3.2 beer. The Council reviewed the City Attorney's letter dated November 26, 1982, suggesting all 3.2 beer licensees be required to carry dram shop insurance. Councilmember Humphrey noted this was considered to fulfill the new State requirements effective March 1, 1983. Since that time the insurance market has changed and is prohibitive for small businesses. MOTION: of Humphrey, seconded by Holton, passing Ordinance No. 354 amend- ing City Code Section 3-38 by allowing licensees for nonintoxi- cating liquor an exemption from dram shop insurance provided an affidavit is filed with the City that they had sales of less than $20,000 for off-sale licensees and less than $10,000 for on-sale licensees for the preceding year. Ayes - 4 - Nays - 1 (Savanick). ORDINANCE 354 3.2 BEER LIC. INSURANCE CANCEL INFORMAL MEETING GARAGE FACILITY FINANCING MOTION: of Holton, seconded by Humphrey, cancelling the informal meeting of January 2, 1986. Ayes - 5 - Nays - 0. Mr. Asleson distributed an outline of the financing package for the City's Garage Facility improvements and the Council actions required. CITY OF APPLE VALLEY Dakota County, Minnesota December 30, 1985 Page 4 MOTION: of Goodwin, seconded by Humphrey, receiving and accepting the ACCEPT GARAGE appraisal of Ray Connelly dated December 16, 1985, as to the APPRAISAL fair market value of the Public Works Building showing a total value of $450,000 consisting of $298,000 for the building and $152,000 for the land. Ayes - 5 - Nays - 0. Mr. Asleson distributed a payment schedule, prepared by Juran & Moody, showing the City's costs of the proposed Garage financing. He noted the City needs approxi- mately $1,700,000 for actual construction. The lease amount is projected at $2,560,000 to cover the associated issuance costs, reserve fund.and capitalized interest for 12 months. Steve Mattson said $223,000 is the average annual payment over 20 years and it is projected interest earnings will reduce this to be approximately $200,000 as previously discussed. The average interest rate is 9.26 percent. MOTION: of Humphrey, seconded by Holton, adopting Resolution No. 1985- 241 approving entering into a lease with option to purchase agreement with Juran & Moody Capital Corporation and authori- zing execution of any documents connected with the transaction. RES. 1985-241 APPROVE GARAGE LEASE/PURCHASE OPTION Jim Sheldon said notwithstanding all the documents involved, the City always retains title to the City's property during the lease. He is still waiting for a letter from the County Attorney reconfirming that the property will not be subject to real estate taxes due to the transaction. The reconfirmation is needed because of revised documents from the previous draft reviewed by the County Attorney. Mayor Branning asked about prepayment provisions. Mr. Sheldon said the City has the right to prepay beginning in 1993 with penalty until the year 2000. Councilmember Holton asked what the advantage to this method of financing is? Mr. Asleson said timing is the main consideration. It makes funds available for the Oarage improvements and keeps the City's capital available to make other im- provements if desired, such as to City Hall. Vote was taken on the motion. Ayes - 5 - Nays - 0. The Council agreed tonight's meeting should not be adjourned, but recessed until tomorrow in case additional action is needed to complete the closing transactions. Mr. Asleson said he will be attending the Association of Metropolitan Municipalities meeting to consider 1986 legislative policies on January 9, 1986. The Council reviewed the proposed policies as received in the bulletin dated December 17, 1985, and had no comments. AMMLEGISLATIVE POLICIES Councilmember Savanick said she plans to attend the NLC Legislative Conference in March and believes as many Councilmembers as possible should attend. Mayor Branning said he may be able to attend also. MOTION: of Savanick, seconded by Holton, authorizing up to three people to attend the National League of Cities Legislative Conference in Washington, D.C., in March 1986. Ayes - 5 - Nays - O. NLC CONFERENCE ATTENDANCE CITY OF APPLE VALLEY Dakota County, Minnesota December 30, 1985 Page 5 MOTION: of Humphrey, seconded by Goodwin, to pay the claims and bills, checks numbered 31100, 46515 through 46524 and 46533 through 46625, in the total amount of $2,338,770.66. Ayes - 5 - Nays - 0. MOTION: of Savanick, seconded by Humphrey, recessing this meeting to re- convene at 2:00 p.m. on December 31, 1985, at City Hall. Ayes - 5 - Nays - 0. The meeting was recessed at 10:15 o'clock p.m. CLAIMS & BILLS RECESS MEETING