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HomeMy WebLinkAbout08/23/1984CITY OF APPLE VALLEY Dakota County, Minnesota August 23, 1984 Minutes of the regular meeting of the City Council of Apple Valley, Dakota County, Minnesota, held August 23rd, 1984, at 8:00 o'clock p.m. at the City Hall. PRESENT: Mayor Branning; Councilmembers Goodwin, Holton, Humphrey and Savanick; Clerk Asleson. ABSENT: None. Mayor Branning called the meeting to order at 8:00 p.m. The Councilmembers and everyone in attendance took part in the pledge of allegiance to the flag. MOTION: of Savanick, seconded by Goodwin, approving the agenda for to- night's meeting as amended. Ayes - 5 - Nays - 0. APPROVE AGENDA CONSENT AGENDA RES. 1984-131 AWARD CONTRACT PROJ. 84-15 CHANGE ORDER 1 PROS. 84-1 CHANGE ORDER 1 PROJ. 84-14 RES. 1984-132 ASSESSMENT DIVISIONS HIRE PARTTIME EMPLOYEES AUG. 2, 1984 MINUTES AUG. 9, 1984 MINUTES MOTION: of Holton, seconded by Goodwin, approving ali items on the con- sent agenda with no exceptions. Ayes - 5 - Nays - 0. CONSENT AGENDA ITEMS MOTION: of Holton, seconded by Goodwin, adopting Resolution No. 1984- 131 awarding the contract for Project 84-15, Pennock Avenue Sidewalks, to Alexander Construction, the low bidder, in the amount of $26,090.00. Ayes - 5 - Nays - 0. MOTION: of Holton, seconded by Goodwin, approving Change Order No. 1 to the contract with Valley Paving, Inc., for Project 84-1, 1984 Street Maintenance, in the amount of an additional $33,266.99. Ayes - 5 - Nays - 0. MOTION: of Holton, seconded by Goodwin, approving Change Order No. 1 to the contract with Spencer Construction for Project 84-14, Forest Point Improvements, in the amount of a $6,824.00 deduction. Ayes - 5 - Nays - 0. MOTION: of Holton, seconded by Goodwin, adopting Resolution No. 1984-132 approving division of special assessments as follows: No. 15519 - Forest Park Estates 4th, No. 15521 - The Oaks of Apple Valley II, No. 15537 - Wensmann Property Section 25, No. 15556 - Sherman Heights 2nd, and No. 15599 - Pilot Knob Estates 3rd. Ayes - 5 - Nays - 0. MOTION: of Holton, seconded by Goodwin, approving hiring the parttime employees as listed in the memo from the City Administrator dated August 20, 1984. Ayes - 5 - Nays - 0. END OF CONSENT AGENDA ITEMS MOTION: of Holton, seconded by Humphrey, approving the minutes of the special meeting of August 2nd, 1984, as written. Ayes - 3 - Nays - 0 (Goodwin and Savanick Abstained). MOTION: of Holton, seconded by Goodwin, approving the minutes of the regular meeting of August 9th, 1984, as written. Ayes - 4 - Nays - 0 (Savanick Abstained). CITY OF APPLE VALLEY Dakota County, Minnesota August 23, 1984 Page 2 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. AUDIENCE DISCN. SET COUNCIL MEETINGS MOTION: of Savanick, seconded by Goodwin, setting Council meetings as follows: August 30, 1984, 8:00 p.m. - special meeting; September 20, 1984, 7:00 p.m. - informal meeting; September 28, 1984, 2:15 p.m. - special meeting; and October 4, 1984, 7:00 p.m. - special meeting and cancelling the November 1, 1984, informal meeting. Ayes - 5 - Nays - 0. Mayor Branning called the public hearing to order at 8:08 p.m. on Pro- PROJ. 84-17 ject 84-17, Emerald Point and 144th Street Improvements, and noted PUBLIC HEARING receipt of the affidavit of publication of the hearing notice. Keith Gordon reviewed the preliminary engineering report for utilities to serve Emerald Point and New Life Community Church, storm sewer and 144th Street. Internal streets in Emerald Point will be constructed by the developer. John Gretz said the church is now planning to take driveway access on the 144th Street alignment rather than from Pilot Knob Road. The Mayor asked for questions or comments from the Council and the public. There were none and the hearing was declared closed at 8:13 p.m. MOTION: of Holton, seconded by Goodwin, adopting Resolution No. 1984- ordering installation of Project 84-17, Emerald Point and 144th Street Improvements. Ayes - 5 - Nays - 0. RES. 1984-133 ORDER PROJ. 84-17 RES. 1984-134 PLANS & SPECS. PROJ. 84-17 MOTION: of Humphrey, seconded by Holton, adopting Resolution No. 1984- 134 directing the Engineer to prepare plans and specifications for Project 84-17. Councilmember Savanick asked if the plans will include a path or sidewalk along Pilot Knob Road? Mr. Gordon said the only sidewalk included is on 144th Street. Mr. Gretz said the policy has been not to install paths along rural sections of road, but in- clude them when the road is constructed to an urban section with curb and gutter. Vote was taken on the motion. Ayes - 5 - Nays - 0. The Council received a memo dated July 27, 1984, from Jon Gurban concerning Apple Valley Play Group's use of community facilities. MOTION: of Humphrey, seconded by Goodwin, approving the policy for Apple Valley Play Group's use of Hayes Community Center as outlined in Mr. Gurban's July 27, 1984, memo subject to the Play Group increasing its liability insurance coverage to $500,000 and naming the City as an additional insured. A.V. PLAY GROUP HAYES BLDG. USE Councilmember Savanick said she would like to include a procedure for an annual re- view of the use. Mayor Branning said the Council can review it as it deems necessary and does not need to be part of the policy. Councilmember Goodwin asked how avail- ability of the room is being publicized? Mr. Gurban said as groups inquire about space they are advised of it and information about all the buildings will be in- cluded in the winter brochure. Vote was taken on the motion. Ayes - 5 - Nays - 0. CITY OF APPLE VALLEY Dakota County, Minnesota August 23, 1986 Page 3 John Gretz introduced Mike Sobolewski, of A & S ProdUctions, who prepared STAR CITIES a slide presentation in connection with the Star Cities Program. Mr. SLIDE SHOW Gretz said the presentation is intended for use in attracting business and industry to the City. Mr. Sobolewski then gave the presentation for the Council. Councilmember Savanick asked if it could also be shown on cable television. Mr. Sobolewski said the slides could be taped for that purpose. Mr. Gretz reviewed the Planning Commission report dated August 17, 1984, on a revised grading plan and setback variances for Hallwood Highlands. He reviewed the revised plan, numbered 3, requested because of topography problems and said, by reducing the setbacks along Granada Avenue, more vegetation will be retained on the lots. MOTION: of Holton, seconded by Goodwin, approving revised grading plan, number 3, for Hallwood Highlands and granting 10-foot frontyard setback variances for Lots 9 to 19, Block 2, and Lots 4, 5 and 8 to 16, Block 3, as recommended by the Planning Commission. HALLWOOD HIGH- LANDS GRADING PLAN & VARIANCE Rollin Crawford, representing Mr. & Mrs. Hall, was present and said the revised plan is acceptable to them. Bill Pride, of Suburban Engineering, was present and agreed there should he no problem locating houses on the lots. Vote was taken on the motion. Ayes - 5 - Nays - 0. Mr. Gretz reviewed the Planning Commission report dated August 16, 1984, on the pre- liminary plat for Hunters Wood 4th Addition. This area was platted as an outlot because sanitary sewer was not available on the east and there was concern about direct access to Palomino Drive. The speed limit on Palomino Drive was recently reduced and 140th Street has been completed to County Road 11 since that time. MOTION: of Holton, seconded by Humphrey, approving the preliminary plat for Hunters Wood 4th Addition and directing Staff to prepare a development with the stipulation that driveway turnarounds are required for each lot as recommended by the Planning Commission. HUNTERS WOOD 4TH PRELIMINARY PLAT Councilmember Savanick said she believes driveways on Palomino Drive are too dangerous and asked if there had been a stipulation about withholding action on this property until new County Road 38 was built and Palomino Drive became a City street? Mr. Gretz reviewed minutes from the Council's meeting of June~28, 1979, when the preliminary plat for the entire area was approved and several alternatives were discussed. Councilmember Savanick asked if this would set a precendent and allow additional lots on Palomino Drive? Mr. Gretz said preliminary plats have been approved on the area north of Palomino Drive and no other lots with direct access to it are shown. Vote was taken on the motion. Ayes - 4 - Nays - 1 (Savanick). MOTION: of Humphrey, seconded by Holton, appointing Tina Rankin to the Park Committee. Ayes - 5 - Nays - O. APPOINT RANKIN PARK COMMITTEE ORDINANCE 327 REZONE LOT 1, BLK 2 C.W. 3RD Councilmember Humphrey left the room at this time. MOTION: of Holton, seconded by Goodwin, passing Ordinance No. 327 rezon- lng Lot 1, Block 2, Carrollwood Village 3rd Addition from R-lC to R-2 as recommended by the Planning Commission. CITY OF APPLE VALLEY Dakota County, Minnesota August 23, 1984 Page 4 The Council reviewed the Planning Commission's recommendation and Councilmember Holton asked if the duplex was going to be sold am one or two units? Jack Ardoyno, the peti- tioner, was present and said he intends to sell it as one unit. The Council agreed to table this item temporarily until Councilmember Humphrey returned to the room. MOTION: of Savanick, seconded by Goodwin, adopting Resolution No. 1984- 135 ordering installation of Project 84-19, Timberwick 7th Addition public improvements. Ayes - 4 - Nays - 0. RES. 1984-135 ORDER PROJ. 84-19 RES. 1984-136 ORDER PROJ. 84-18 RES. 1984-137 PROJ. 84-18 PLANS & BIDS PRELIM. REPORT CEDAR KNOLLS STORM SEWER SUMMARY OF ORDINANCE 323 MOTION: of Holton, seconded by Goodwin, adopting Resolution No. 1984- 136 ordering installation of Project 84-18, Trunk Water Improve- ments for Pinecrest and Shepherd of the Valley Lutheran Church. Ayes - 4 - Nays- 0. MOTION: of Goodwin, seconded by Holton, adopting Resolution No. 1984- 137 approving plans and specifications for Project 84-18 and authorizing advertisement for bids to be received at 2:00 p.m. on September 11, 1984. Ayes - 4 - Nays - O. MOTION: of Holton, seconded by Goodwin, directing the Engineer to pre- pare a two-part preliminary report for a lift station and storm sewer line from the Cedar Knolls pond to the pond at i32nd Street and for a storm sewer from the 132nd Street pond to the Galaxie Avenue storm sewer as described in the memo from John Gretz dated August 17, 1984. Ayes - 4 - Nays - 0. Councilmember Humphrey returned to the room at this time. MOTION: of Holton, seconded by Goodwin, approving a summary of Ordin- ance No. 323, Metro Cable, Inc., Franchise, and approving publication of the summary in the official newspaper in lieu of the entire ordinance. Ayes - 5 - Nays - 0. MOTION: of Holton, seconded by Goodwin, passing Ordinance No. 327 re- zoning Lot 1, Block 2, Carrollwood Village 3rd Addition from R-lC to R-2 as recommended by the Planning Commission. Ayes - 5 - Nays - O. ORDINANCE 327 REZONE LOT 1, BLK 2, C.W. 3RD MOTION: of Holton, seconded by Goodwin, approving a Memorandum of Understanding with National Handicap Housing Institute, Inc., to conduct an audit of City facilities related to use by handi- capped persons, in compliance with Federal Revenue Sharing regulations, at a cost not to exceed $5,600 and authorizing the Mayor and Clerk to sign the agreement. Ayes - 5 - Nays - 0. HANDICAP FACILITIES COMPLIANCE AUDIT RES. 1984-138 SET VACATION HEARING - PARK AMBULANCE SERV. UPDATE MOTION: of Humphrey, seconded by Holton, adopting Resolution No. 1984- 138 setting a public hearing ati8:00p.m, September 27, 1984, to consider vacating unused public grounds described as Park 2 and Park 3, Diamond Path 3rd Addition. Ayes - 5 - Nays - O. Mr. Asleson reported he has had continuing discussions on ambulance ser- vice and believes progress is being made in reaching some type of agreement. This will be scheduled on the September 13, 1984, meeting for further information or action. CITY OF APPLE VALLEY Dakota County, Minnesota August 23, 1984 Page 5 The Council received a copy of a memo dated August 20, 1984, from George IDB ENTITLEMENT Ballenger to Mr. Asleson concerning Industrial Development Bond entitle- ALLOCATION ment allocation. Mr. Asleson reviewed the procedures involved in retaining the City's allocation and said a potential project has been under discussion for financing. He said he would probably be making a recommendation at the August 30, 1984, special meeting to pay a deposit to retain the City's allocation. John Hanson, of Independent School District 196, distributed information ISD 196 BOND to the Council about the District's September 25,1984, bond referendum REFERENDUM and reviewed it with the Council. The Council thanked Mr. Hanson for the presentation and Mayor Branning said he would encourage all citizens to become informed about the referendum and vote on it. MOTION: of Humphrey, seconded by Goodwin, approving a salary increase SCHULTZ SALARY for Terry Schultz, Assistant Director of Parks & Recreation, to REVIEW $2,050 per month effective July 21, 1984, and a mileage allow- ance of $125 per month effective JUly 1, 1984. Ayes - 4 - Nays - 0. (Councilmember Savanick was out of the room during this time.) The Council received a memo dated August 23, 1984, from Mr. Asleson and TAX INCREMENT Mr. Gretz concerning tax increment financing. Mr. Asleson said past dis- FINANCING cussions on this financing centered around a proposal by Community State Bank for its use. The Bank has withdrawn its request and indicated it will build a new facility in the Southport area using a septic tank if sanitary sewer is not avail- able. Since the Council has indicated it would prefer to have 151st Street completed, including all utilities, Staff has pursued options to accomplish this. Mr. Asleson then reviewed detail sheets illustrating the effects of using "Option A" capturing 100 percent of the increment and "Option B" capturing 60 percent of the increment based on a $580,000 bond issue. He noted that if special assessments for the project are deferred for not more than five years, Option B can be used. If the assessments ame deferred for more than five years, Option A must be used to generate enough dollars. Richard Winkler, the primary property owner in the area, has indi- cated he would be agreeable to a five-year deferment for sanitary sewer improvements, but would only accept a ten-year deferment on the entire project. Mayor Branning noted the public hearing on Project 84-6, Southport 2nd Addition Im- provements, had been continued from August 9, 1984. He asked for questions or comments on the project itself; there were none. MOTION: of Humphrey, seconded by Goodwin, closing the public hearing on CLOSE HEARING Project 84-6, Southport 2nd Addition Improvements. Ayes - 5 - PROJ. 84-6 Nays - 0. Mr. Gretz then described a concept known as "equity sharing" or "equity participation" by which the City would finance and install improvements and defer special assessments. When the benefitted property is sold, the City wohld receive a share of the profit for use in repaying the tax increment bonds. Councilmember Humphrey asked what would happen in a ten-year deferral of special assessments if the property, or part of it, is sold before that time? Mr. Asleson CITY OF APPLE VALLEY Dakota County, Minnesota August 23, 1984 Page 6 said if the deferral is intended to be used to entice new business, it could be an advantage to allow it to continue. The deferral could also be scheduled so it would end with the sale or phased in during years six through 10. MOTION: of Humphrey, seconded by Holton, stipulating that all further consideration of Project 84-6, Southport 2nd Addition Improve- ments, with the use of tax increment financing, under Option A, and a ten-year deferment of special assessments is subject to reachingan agreement with the developer establishing an equity interest, on a direct ratio basis, in the property for the City. PROJ. 84-6 CONDITIONS OF FINANCING The Council discussed the desirability of maintaining a direct ratio for the City's equity interest or phasing it in to encourage earlier development of the property. MOTION: of Holton, seconded by Goodwin, amending the above motion by AMEND MOTION adding: Staff is directed to investigate a formula for equity sharing which would start at 10 percent of the direct ratio and increase to the direct ratio at the tenth year. Councilmember Savanick asked how the deferred assessments are handled when they go off deferment? Mr. Asleson said, subject to a public hearing when the assessments are levied, he would suggest a five-year term on the assessments which would be pay- able in five equal annual installments. Vote was taken on the amendment. Ayes - 3 - Nays - 2 (Humphrey and Savanick). Mr. Winkler was present and said he only wants the sanitary sewer extended at this time. Ne does not want 151st Street completed and he will not agree to any equity sharing arrangement on the property. Mayor Branning said it is not in the best in- terests of the City to continue extending improvements in the Southport area on a lot by lot basis. Mr. Winkler said he would be willing to plat the other lots with the next lot he sells. Mr. Asleson said tax increment financing can be used for the improvements now because it can be tied to the Bank property also. If the next lot that develops does not have as valuable a building, tax increment financing may not be able to be used be- cause there may not be enough increment to use. Councilmember Humphrey said it appears that if any further development beyond the Bank building is to occur in the area, all the utility improvements and 151st Street are needed. Vote was taken on the motion as amended. Ayes - 4 - Nays- 1 (Savanick). MOTION: of Holton, seconded by Goodwin, subject to the preceding motion, RES. 1984-139 adopting Resolution No. 1984-i39 ordering the installation of ORDER PROJ. Project 84-6, Southport 2nd Addition Public Improvements. 84-6 Ayes - 5 - Nays - 0. CITY OF APPLE VALLEY Dakota County, Minnesota August 23, 1984 Page 7 MOTION: of Goodwin, seconded by Holton, subject to the foregoing condi- tions, adopting Resolution No. 1984-140 directing the Engineer to prepare plans and specifications for Project,No. 84-6. Ayes - 5 - Nays - 0. RES. 1984-140 PLANS & SPECS. PROJ. 84-6 PREPARE TAX INCREMENT PLAN PURCHASE LIQ. STORE 2 SIGN FARQUHAR PARK OPENING CLAIMS & BILLS MOTION: of Holton, seconded by Goodwin, subject to the foregoing condi- tions, directing James O'Meara, bond counsel to prepare a tax increment development and financing plan for Project 84-6. Ayes - 5 - Nays - 0. MOTION: of Goodwin, seconded by Humphrey, authorizing purchase of a sign for Liquor Store No. 2 and the PDQ Store to be located on the existing framework at Essex Avenue and Pilot Knob Road. Ayes - 5 - Nays - 0. The Council received a notice that a grand opening will be held for the facilities at Farquhar Park on August 30, 1984. MOTION: of Holton, seconded by Humphrey, to pay the claims and bills, checks numbered 31063, 31065, 38947 through 39006 and 39015 through 39170, in the total amount of $1,211,405.12. Ayes - 5 - Nays - 0. MOTION: of Goodwin, seconded by Humphrey, to adjourn. Ayes - 5 - Nays - 0. The meeting was adjourned at 12:10 o'clock a.m.